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Exhibit 4.2
EXECUTION COPY
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CREDIT AGREEMENT
DATED AS OF NOVEMBER 26, 1996
AMONG
XXXXXXX & XXXXX, INC.,
THE LENDERS NAMED HEREIN,
BANK ONE, DAYTON, N.A.,
AS ADMINISTRATIVE AGENT
AND
NATIONSBANK, N.A.,
AS DOCUMENTATION AND SYNDICATION AGENT
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TABLE OF CONTENTS
Article Section Page
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ARTICLE I DEFINITIONS.......................................................................................... 1
SECTION 1.01. Defined Terms........................................................................... 1
SECTION 1.02. Terms Generally......................................................................... 25
SECTION 1.03. Types of Borrowings..................................................................... 25
ARTICLE II THE CREDITS......................................................................................... 25
SECTION 2.01. Commitment to Make Loans................................................................ 25
SECTION 2.02. Loans................................................................................... 26
SECTION 2.03. Notice of Borrowings.................................................................... 28
SECTION 2.04. Notes; Repayment of Loans............................................................... 29
SECTION 2.05. Fees.................................................................................... 30
SECTION 2.06. Interest on Loans....................................................................... 31
SECTION 2.07. Default Interest........................................................................ 32
SECTION 2.08. Alternate Rate of Interest.............................................................. 33
SECTION 2.09. Termination and Reduction of Commitments; Extension of
Commitments............................................................................. 33
SECTION 2.10. Conversion and Continuation Options..................................................... 35
SECTION 2.11. Mandatory Repayments and Prepayments.................................................... 36
SECTION 2.12. Optional Prepayments.................................................................... 37
SECTION 2.13. Reserve Requirements; Change in Circumstances........................................... 37
SECTION 2.14. Change in Legality...................................................................... 39
SECTION 2.15. Indemnity............................................................................... 40
SECTION 2.16. Pro Rata Treatment...................................................................... 40
SECTION 2.17. Sharing of Setoffs...................................................................... 41
SECTION 2.18. Payments................................................................................ 41
SECTION 2.19. Taxes................................................................................... 41
SECTION 2.20. Assignment of Commitments Under Certain Circumstances;
Duty to Mitigate........................................................................ 44
SECTION 2.21. Swingline Loans......................................................................... 45
SECTION 2.22. Letters of Credit....................................................................... 47
ARTICLE III REPRESENTATIONS AND WARRANTIES..................................................................... 50
SECTION 3.01. Organization; Powers.................................................................... 50
SECTION 3.02. Authorization........................................................................... 51
SECTION 3.03. Enforceability.......................................................................... 51
SECTION 3.04. Consents and Governmental Approvals..................................................... 51
SECTION 3.05. Financial Statements; Undisclosed Liabilities........................................... 51
SECTION 3.06. No Material Adverse Change.............................................................. 52
SECTION 3.07. Title to Properties; Possession Under Leases............................................ 52
SECTION 3.08. Subsidiaries............................................................................ 52
SECTION 3.09. Litigation; Compliance with Laws........................................................ 52
SECTION 3.10. Agreements.............................................................................. 53
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SECTION 3.11. Federal Reserve Regulations............................................................. 53
SECTION 3.12. Investment Company Act; Public Utility Holding Company
Act..................................................................................... 54
SECTION 3.13. Use of Proceeds......................................................................... 54
SECTION 3.14. Tax Returns............................................................................. 54
SECTION 3.15. No Material Misstatements............................................................... 54
SECTION 3.16. Employee Benefit Plans.................................................................. 54
SECTION 3.17. Environmental and Safety Matters........................................................ 55
SECTION 3.18. Security Interests...................................................................... 55
SECTION 3.19. Solvency................................................................................ 56
SECTION 3.20. Transactions with Affiliates and Shareholders........................................... 56
SECTION 3.21. Insurance............................................................................... 57
SECTION 3.22. Labor Matters........................................................................... 57
ARTICLE IV CONDITIONS OF LENDING............................................................................... 58
SECTION 4.01. First Borrowing......................................................................... 58
SECTION 4.02. All Credit Events....................................................................... 62
ARTICLE V AFFIRMATIVE COVENANTS................................................................................ 63
SECTION 5.01. Existence; Businesses and Properties.................................................... 63
SECTION 5.02. Insurance............................................................................... 63
SECTION 5.03. Obligations and Taxes................................................................... 64
SECTION 5.04. Financial Statements, Reports, etc...................................................... 64
SECTION 5.05. Other Information....................................................................... 66
SECTION 5.06. ERISA................................................................................... 67
SECTION 5.07. Maintaining Records; Access to Properties and Inspections............................... 68
SECTION 5.08. Use of Proceeds......................................................................... 68
SECTION 5.09. Interest Rate Protection Agreements..................................................... 68
SECTION 5.10. Fiscal Year............................................................................. 68
SECTION 5.11. Compliance with Environmental Laws; Preparation of
Environmental Reports................................................................... 68
SECTION 5.12. Subsidiaries............................................................................ 69
SECTION 5.13. Further Assurances...................................................................... 69
SECTION 5.14. Certain Post-Closing Covenants.......................................................... 70
ARTICLE VI NEGATIVE COVENANTS.................................................................................. 70
SECTION 6.01. Indebtedness............................................................................ 70
SECTION 6.02. Negative Pledge......................................................................... 72
SECTION 6.03. Sale and Lease-Back Transactions........................................................ 74
SECTION 6.04. Investments, Loans and Advances......................................................... 74
SECTION 6.05. Mergers, Consolidations, Dispositions and Acquisitions.................................. 76
SECTION 6.06. Dividends, Distributions and Other Restricted Payments.................................. 78
SECTION 6.07. Impairment of Security Interests........................................................ 79
SECTION 6.08. Limitation on Restrictions on Subsidiary Dividends, etc................................. 79
SECTION 6.09. No Other Negative Pledges............................................................... 79
SECTION 6.10. Transactions with Affiliates and Shareholders........................................... 79
SECTION 6.11. Business of Borrower and Subsidiaries................................................... 80
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SECTION 6.12. Certain Amendments...................................................................... 80
SECTION 6.13. Capital Expenditures.................................................................... 80
SECTION 6.14. Financial Covenants..................................................................... 80
ARTICLE VII
EVENTS OF DEFAULT............................................................................................... 81
ARTICLE VIII THE AGENTS AND ISSUING BANK....................................................................... 85
SECTION 8.01. Appointment and Authorization........................................................... 85
SECTION 8.02. Liability of Agents..................................................................... 85
SECTION 8.03. Action by Agents........................................................................ 86
SECTION 8.04. Successor Agents........................................................................ 86
SECTION 8.05. Agent and Affiliate..................................................................... 86
SECTION 8.06. Indemnification......................................................................... 87
SECTION 8.07. Credit Decision......................................................................... 87
ARTICLE IX MISCELLANEOUS....................................................................................... 87
SECTION 9.01. Notices................................................................................. 87
SECTION 9.02. Survival of Agreement................................................................... 88
SECTION 9.03. Binding Effect.......................................................................... 89
SECTION 9.04. Successors and Assigns.................................................................. 89
SECTION 9.05. Expenses; Indemnity..................................................................... 92
SECTION 9.06. Right of Setoff......................................................................... 94
SECTION 9.07. Applicable Law.......................................................................... 94
SECTION 9.08. Waivers; Amendment...................................................................... 94
SECTION 9.09. Interest Rate Limitation................................................................ 95
SECTION 9.10. Entire Agreement........................................................................ 96
SECTION 9.11. Severability............................................................................ 96
SECTION 9.12. Counterparts............................................................................ 96
SECTION 9.13. Headings................................................................................ 96
SECTION 9.14. Remedies................................................................................ 96
SECTION 9.15. Jurisdiction; Consent to Service of Process............................................. 97
Schedules
Schedule 1.01 Restricted Subsidiaries
Schedule 2.01(a) Tranche A Revolving Credit Commitment
Schedule 2.01(b) Tranche B Revolving Credit Commitment
Schedule 3.05(b) Liabilities
Schedule 3.08 Subsidiaries
Schedule 3.09 Litigation; Compliance with Laws
Schedule 3.10 Material Contracts
Schedule 3.16 Employee Benefit Plans
Schedule 3.17 Environmental Matters
Schedule 3.18 Filings
Schedule 3.20 Transactions with Affiliates and Shareholders
Schedule 3.22 Labor Matters
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Schedule 5.14 Post Closing Matters
Schedule 6.01 Indebtedness
Schedule 6.02 Liens
Schedule 6.04 Investments
Exhibits
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Exhibit A-1 Form of Tranche A Revolving Credit Note
Exhibit A-2 Form of Tranche B Revolving Credit Note
Exhibit A-3 Form of Swingline Note
Exhibit B Form of Guarantee Agreement
Exhibit C Form of Pledge Agreement
Exhibit D Form of Intercompany Note
Exhibit E Form of Assignment and Acceptance
Exhibit F Form of Opinion of Counsel
Exhibit G Form of Compliance Certificate
Exhibit H Form of Perfection Certificate
Exhibit I Form of Supplemental Agreement
Exhibit J Form of Notice of Borrowing/Conversion
Exhibit K Form of Indemnity, Subrogation and Contribution Agreement
Exhibit L Form of Subordinated Note
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CREDIT AGREEMENT dated as of November 26, 1996, among XXXXXXX & XXXXX,
INC., an Ohio corporation, the Lenders (as defined in this Agreement), BANK ONE,
DAYTON, N.A., as Administrative Agent and Issuing Bank, and NATIONSBANK, N.A.,
as Documentation and Syndication Agent.
The Borrower (such term, and all other capitalized terms in this
paragraph, being used as defined in this Agreement below) has requested the
Lenders to extend credit to the Borrower in the aggregate principal amount of up
to $150,000,000, in the form of (a) Tranche A Revolving Loans made by the
Lenders at any time and from time to time during the Tranche A Revolving Credit
Availability Period in an aggregate principal amount at any one time outstanding
of up to $100,000,000, which shall include Swingline Loans under which the
Borrower may make short-term borrowings of up to $10,000,000 and Letters of
Credit to be issued by the Issuing Bank at any time and from time to time during
the Letter of Credit Availability Period in an aggregate amount at any time
outstanding not in excess of $25,000,000, and (b) Tranche B Revolving Loans made
by the Lenders at any time and from time to time during the Tranche B Revolving
Credit Availability Period in an aggregate principal amount at any one time
outstanding of up to $50,000,000; PROVIDED, THAT, the sum at any time of
outstanding Revolving Loans, Swingline Exposure and Letter of Credit Exposure
shall not exceed $150,000,000. The proceeds of all Borrowings are to be used,
and the Letters of Credit are to be used, as provided in Section 3.13. The
Lenders are willing to extend the described credit to the Borrower upon the
terms and subject to the conditions set forth in this Agreement. Accordingly,
the Borrower, the Lenders, the Agents, the Swingline Lender and the Issuing Bank
agree as follows:
ARTICLE I
DEFINITIONS
SECTION 1.01. DEFINED TERMS. As used in this Agreement, the following
terms shall have the meanings specified below:
"ABR BORROWING" shall mean a Borrowing comprised of ABR Loans.
"ABR LOAN" shall mean any ABR Revolving Loan or any Swingline Loan.
"ABR REVOLVING LOAN" shall mean any Revolving Loan and any Swingline
Loan bearing interest at a rate determined by reference to the Alternate Base
Rate in accordance with the provisions of Article II.
The term "ADDITIONAL AMOUNTS" shall have the meaning assigned to that
term in Section 2.19(a).
"ADJUSTED LIBO RATE" shall mean, with respect to any Eurodollar
Borrowing for any Interest Period, an interest rate per annum (rounded upwards,
if necessary, to the next 1/16 of 1%) equal to the product of (a) the LIBO Rate
in effect for that Interest Period and (b) Statutory Reserves.
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"ADMINISTRATIVE AGENT" shall mean Bank One, Dayton, N.A., in its
capacity as administrative agent for the Lenders under this Agreement, and its
successors in that capacity.
"ADMINISTRATIVE QUESTIONNAIRE" shall mean, with respect to each Lender,
the administrative questionnaire in the form submitted to that Lender by the
Administrative Agent and returned to the Administrative Agent duly completed by
the applicable Lender.
"AFFILIATE" shall mean, when used with respect to a specified person,
another person that directly, or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the person
specified.
"AGENTS" shall mean the Administrative Agent and the Syndication Agent.
"ALTERNATE BASE RATE" shall mean, for any day, a rate per annum
(rounded upwards, if necessary, to the next 1/16 of 1%) equal to the greater of
(a) the Federal Funds Effective Rate in effect on such day plus 0.50% and (b)
the Prime Rate in effect on such day. If the Administrative Agent shall have
determined (which determination shall be conclusive absent manifest error) that
it is unable to ascertain the Federal Funds Effective Rate for any reason,
including the inability or failure of the Administrative Agent to obtain
sufficient quotations in accordance with the terms of this Agreement, the
Alternate Base Rate shall be determined without regard to clause (a) of the
first sentence of this definition until the circumstances giving rise to that
inability no longer exist. Any change in the Alternate Base Rate due to a change
in the Prime Rate or the Federal Funds Effective Rate shall be effective on the
effective date of the applicable change in the Prime Rate or the Federal Funds
Effective Rate, respectively, without notice to the Borrower.
"APPLICABLE ABR MARGIN" shall mean, with respect to any Revolving Loan
or Swingline Loan outstanding on any day:
(i) 0.0%, if such day falls within a Level I Pricing Period;
(ii) 0.0%, if such day falls within a Level II Pricing Period;
(iii) 0.0%, if such day falls within a Level III Pricing Period;
(iv) 0.0%, if such day falls within a Level IV Pricing Period;
(v) .125%, if such day falls within a Level V Pricing Period; and
(vi) .25%, if such day falls within a Level VI Pricing Period.
"APPLICABLE LAWS" shall have the meaning assigned to such term in
Section 3.09(b).
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"APPLICABLE LIBOR MARGIN" shall mean, with respect to any Revolving
Loan outstanding on any day:
(i) 0.40%, if such day falls within a Level I Pricing Period;
(ii) 0.50%, if such day falls within a Level II Pricing Period;
(iii) 0.625%, if such day falls within a Level III Pricing Period;
(iv) 0.75%, if such day falls within a Level IV Pricing Period;
(v) 1.00%, if such day falls within a Level V Pricing Period; and
(vi) 1.25%, if such day falls within a Level VI Pricing Period.
"APPLICABLE TRANCHE A PERCENTAGE" of any Tranche A Lender shall mean a
fraction (expressed as a percentage) the numerator of which is such Tranche A
Lender's Tranche A Revolving Credit Commitment and the denominator of which is
the aggregate of all Tranche A Revolving Credit Commitments.
"APPLICABLE TRANCHE B PERCENTAGE" of any Tranche B Lender shall mean a
fraction (expressed as a percentage) the numerator of which is such Tranche B
Lender's Tranche B Revolving Credit Commitment and the denominator of which is
the aggregate of all Tranche B Revolving Credit Commitments.
"ACQUIRED ENTITY" shall have the meaning set forth in Section 6.04(g).
"ASSET SALE" shall mean any sale, lease, transfer, assignment,
condemnation, taking or other disposition or series of related sales, leases,
transfers, assignments or dispositions (including dispositions in the nature of
casualties, to the extent covered by insurance) of any businesses, business
units, assets (including licenses, trademarks and other intangibles and the
Capital Stock of any Subsidiary) or other properties of the Borrower or any
Subsidiary (each referred to for the purposes of this definition as a
"disposition") by the Borrower or any of its Subsidiaries (including any
disposition by means of a merger, consolidation or similar transaction) other
than (i) a disposition by a Subsidiary to the Borrower, (ii) a disposition by
the Borrower or a Subsidiary to a Wholly Owned Subsidiary that is a Qualified
Acquisition Subsidiary and (iii) a disposition permitted by Sections 6.05(a),
(b), (c), (e) and (g).
"ASSIGNMENT AND ACCEPTANCE" shall mean an assignment and acceptance
entered into by a Lender and an assignee, and accepted by the Administrative
Agent, in the form of Exhibit E or such other form as shall be approved by the
Administrative Agent.
"BOARD" shall mean the Board of Governors of the Federal Reserve System
of the United States.
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"BORROWER" shall mean Xxxxxxx & Xxxxx, Inc., an Ohio corporation, and
its successors.
"BORROWING" shall mean a group of Loans of a single Class and Type made
by the Lenders on a single date and as to which a single Interest Period is in
effect.
"BREAKAGE EVENT" shall have the meaning assigned to that term in
Section 2.15.
"BUSINESS DAY" shall mean any day (other than a Saturday, Sunday or a
day which is a legal holiday in the States of North Carolina, Ohio or New York)
on which banks are open for business in Charlotte, North Carolina, Dayton, Ohio
and New York City; PROVIDED, THAT, when used in connection with a LIBOR Loan,
the term "BUSINESS DAY" shall also exclude any day on which banks are not open
for dealings in dollar deposits in the London interbank market.
"CAPITAL EXPENDITURES" shall mean, for any period, the sum of all
expenditures (whether paid in cash or other consideration or accrued as a
liability) which would, in accordance with GAAP, be included on a consolidated
statement of cash flows of the Borrower and its Consolidated Subsidiaries for
such period as additions to property, plant and equipment, Capital Lease
Obligations or similar items; PROVIDED, THAT, the foregoing shall exclude all
such expenditures to the extent made with insurance proceeds or condemnation
awards as permitted pursuant to Section 6.05(e).
"CAPITAL LEASE OBLIGATIONS" of any person shall mean the obligations of
such person to pay rent or other amounts under any lease of (or other
arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such person under GAAP
and, for the purposes of this Agreement, the amount of such obligations at any
time shall be the capitalized amount thereof at such time determined in
accordance with GAAP.
"CAPITAL STOCK" of any person shall mean any and all shares,
partnership, limited liability company and other interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in
(however designated) the equity of such person.
"CASH EQUIVALENTS" shall mean:
(a) direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United States
of America (or by any agency thereof to the extent such obligations are
backed by the full faith and credit of the United States of America),
in each case maturing within 180 days from the date of acquisition
thereof;
(b) investments in commercial paper maturing within 180 days
from the date of acquisition thereof and having, at such date of
acquisition, the highest credit rating obtainable from Standard &
Poor's Corporation or from Xxxxx'x Investors Service, Inc.
respectively;
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(c) investments in certificates of deposit, banker's
acceptances and time deposits maturing within 180 days from the date of
acquisition thereof issued or guaranteed by or placed with, and money
market deposit accounts issued or offered by, any domestic office of
any Lender or any commercial bank organized under the laws of the
United States of America or any State thereof, which has a combined
capital and surplus and undivided profits of not less than
$300,000,000;
(d) money market funds substantially all of whose assets are
comprised of securities of the types described in (a) through (c)
above;
(e) cash deposits in any deposit account or in any cash
collateral account with any Lender; and
(f) other investment instruments approved in writing by the
Agents and offered by financial institutions which have a combined
capital and surplus and undivided profits of not less than
$300,000,000.
"CASH TAX EXPENSE" shall mean, for any period for any person, the
amount of expense for Federal, state, local and other income taxes of such
person and its Consolidated Subsidiaries, determined on a consolidated basis in
accordance with GAAP (assuming such person was deemed to be the common parent of
an affiliated group (within the meaning of Section 1504 of the Code) of which
only such person and its subsidiaries were members), for such period, but
excluding deferred income tax expense.
"CHANGE OF CONTROL" means and shall be deemed to have occurred on (a)
the date upon which a transaction or event or any series of transactions or
events occurs that is required to be reported on Schedule 13D pursuant to
Section 13(d) of the Exchange Act and the regulations promulgated thereunder,
whereby a person or group, as used for purposes of Section 13(d) of the Exchange
Act (other than M.H.M. & Co., Ltd., an Ohio limited partnership ("M.H.M.")), has
or will become the Beneficial Owner of 30% or more of the outstanding Voting
Shares or the date upon which the Borrower first learns that a person or group
(other than M.H.M.) has or will become the Beneficial Owner of 30% or more of
the outstanding Voting Shares; (b) the date of a change in the composition of
the Board of Directors of the Borrower (the "Board of Directors") such that
individuals who were members of the Board of Directors on the date two years
prior to such change (or who were subsequently elected to fill a vacancy in the
Board of Directors by the affirmative vote of at least two-thirds of the
directors then still in office who were directors at the beginning of such two
year period) no longer constitute a majority of the Board of Directors; (c) the
date either the Board of Directors or shareholders approve a merger or
consolidation of the Borrower with any other person, other than a merger or
consolidation which would result in the Voting Shares outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by
being converted into Voting Shares of the surviving entity) at least 80% of the
total voting power represented by the Voting Shares of such surviving entity
outstanding immediately after such merger or consolidation; (d) the date either
the Board of Directors or shareholders of the Borrower approve a plan of
liquidation of the Borrower or an agreement for the sale, lease, transfer or
other disposition by the Borrower of all or substantially all the Borrower's
assets, or (e) the date that members of the Xxxxx family,
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individually or collectively, no longer are the Beneficial Owners of a majority
of the Voting Stock of M.H.M. For purposes of this definition, "Beneficial
Owner" means the person or group has the power, directly or indirectly, to vote
or direct the vote of, and the power to dispose, or direct the disposition of,
Voting Shares; "Voting Shares" means the Capital Stock of the Borrower entitled
to vote generally in the election of directors of the Borrower; and "Voting
Stock" means the Capital Stock of M.H.M. entitled to vote generally on the
management and affairs of M.H.M.
"CHARGES" shall have the meaning assigned to that term in Section 9.09.
"CLASS" shall have the meaning assigned to that term in Section 1.03.
"CLOSING DATE" shall mean the date of the first Borrowing hereunder in
accordance with Sections 4.01 and 4.02.
"CODE" shall mean the Internal Revenue Code of 1986, as the same may be
amended from time to time.
"COLLATERAL" shall mean all the collateral pledged or purported to be
pledged pursuant to any of the Collateral Documents, including all Intercompany
Notes and the Capital Stock of all Restricted Subsidiaries.
"COLLATERAL DOCUMENTS" shall mean the Pledge Agreement and all other
documents and instruments executed and delivered pursuant to the terms hereof or
thereof in order to secure any Obligations or perfect any Lien granted for the
benefit of the Lenders pursuant thereto.
"COMMITMENT" shall mean, with respect to any Lender, such Lender's
Revolving Credit Commitment and, in the case of the Swingline Lender, its
Swingline Commitment and, in the case of the Issuing Bank, the Letter of Credit
Commitment.
"COMMITMENT FEE" shall have the meaning assigned to that term in
Section 2.05(a).
"COMMONLY CONTROLLED ENTITY" shall mean an entity, whether or not
incorporated, which is under common control with the Borrower within the meaning
of Section 4001 of ERISA or is part of a group which includes the Borrower and
which is treated as a single employer under Section 414 of the Code.
"CONFIDENTIAL INFORMATION MEMORANDUM" shall mean the confidential
information memorandum of the Borrower dated October, 1996.
"CONSOLIDATED EBIT" shall mean, for any period for any person,
Consolidated Net Income of such person for such period, PLUS, to the extent
deducted in computing such Consolidated Net Income for such period, (a) the sum
of (i) Consolidated Interest Expense for such period, and (ii) Cash Tax Expense
for such period, MINUS, to the extent added in computing such Consolidated Net
Income for such period, (b) the sum of (i) any interest income and (ii) any
non-cash income or non-cash gains during such period that requires
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footnote disclosure on financial statements, reports or other filings pursuant
to or in accordance with GAAP or applicable SEC regulations, all as determined
on a consolidated basis with respect to such person and its Consolidated
Subsidiaries in accordance with GAAP.
"CONSOLIDATED EBITDA" shall mean, for any period for any person,
Consolidated Net Income of such person for such period, PLUS, to the extent
deducted in computing such Consolidated Net Income for such period, (a) the sum
of (i) Consolidated Interest Expense for such period, (ii) Cash Tax Expense for
such period, and (iii) depreciation, depletion, amortization of intangibles and
other non-cash charges or non-cash losses, MINUS, to the extent added in
computing such Consolidated Net Income for such period, (b) the sum of (i) any
interest income, and (ii) any non-cash income or non-cash gains during such
period that requires footnote disclosure on financial statements, reports or
other filings pursuant to or in accordance with GAAP or applicable SEC
regulations, all as determined on a consolidated basis with respect to such
person and its Consolidated Subsidiaries in accordance with GAAP.
"CONSOLIDATED FIXED CHARGE COVERAGE RATIO" shall mean, for the Borrower
as of any date, the ratio of (a) Consolidated EBIT for the Reference Period with
respect to such date, to (b) Consolidated Interest Expense for such Reference
Period; PROVIDED, THAT, if, since the beginning of the applicable Reference
Period, (A) the Borrower or any Consolidated Subsidiary has issued or incurred
any Indebtedness that remains outstanding as of the end of such Reference Period
in connection with any Permitted Acquisition or pursuant to Sections 6.01(d),
6.01(g) or 6.01(j), Consolidated Interest Expense for such Reference Period
shall be calculated after giving effect on a pro forma basis to (I) such
Indebtedness as if such Indebtedness had been issued or incurred on the first
day of such Reference Period and (II) the discharge of any other Indebtedness
repaid, repurchased or otherwise discharged with the proceeds of such new
Indebtedness as if such discharge had occurred on the first day of such
Reference Period, (B) the Borrower or any Consolidated Subsidiary shall have
made any Asset Sale with a net book value in excess of $1,000,000, the
Consolidated EBIT for the applicable Reference Period shall be reduced by an
amount equal to the Consolidated EBIT (if positive) directly attributable to the
assets which are the subject of such Asset Sale for such Reference Period, or
increased by an amount equal to the Consolidated EBIT (if negative), directly
attributable thereto for such Reference Period and Consolidated Interest Expense
for such Reference Period shall be reduced by an amount equal to the
Consolidated Interest Expense directly attributable to any Indebtedness of the
Borrower or any Consolidated Subsidiary repaid or otherwise discharged with
respect to the Borrower and its continuing Consolidated Subsidiaries in
connection with such Asset Sale for such Reference Period (or, if the Capital
Stock of any Consolidated Subsidiary is sold, the Consolidated Interest Expense
for such Reference Period directly attributable to the Indebtedness of such
Consolidated Subsidiary to the extent the Borrower and its continuing
Consolidated Subsidiaries are no longer liable for such Indebtedness after such
sale), and (C) the Borrower or any Consolidated Subsidiary shall have made a
Permitted Acquisition, Consolidated EBIT for the applicable Reference Period
shall be calculated after giving pro forma effect thereto as if such Permitted
Acquisition occurred on the first day of such Reference Period. For purposes of
this definition, whenever pro forma effect is to be given to an acquisition of
assets, (i) the amount of income or earnings relating thereto and the amount of
Consolidated
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Interest Expense associated with any Indebtedness issued or incurred in
connection therewith, the pro forma calculations shall be determined in good
faith by a responsible Financial Officer of the Borrower and (ii) if any
Indebtedness bears a floating rate of interest and is being given pro forma
effect, the interest on such Indebtedness shall be calculated as if the rate in
effect on the date of the beginning of the applicable Reference Period had been
the applicable rate for the entire period. Whenever pro forma effect is to be
given to any event or for any Reference Period, the pro forma calculations made
shall be cumulative of all events for which pro forma effect is to be given that
have occurred within or that relate to the applicable Reference Period.
"CONSOLIDATED INTEREST EXPENSE" shall mean, for any period for any
person, the sum (without duplication) of (a) the gross amount of interest
expense, both expensed and capitalized, of such person and its Consolidated
Subsidiaries, determined on a consolidated basis in accordance with GAAP, for
such period, exclusive of any non-cash interest expense related to original
issue discount notes and pay-in-kind notes, and (b) all amounts paid (net of any
amounts received) by such person and its Consolidated Subsidiaries pursuant to
Interest Rate Protection Agreements for such period.
"CONSOLIDATED LEVERAGE RATIO" shall mean, for the Borrower as of any
date, the ratio of (a) Total Debt on such date to (b) Consolidated EBITDA for
the Reference Period applicable to such date; PROVIDED, THAT, if, since the
beginning of the applicable Reference Period, (A) the Borrower or any
Consolidated Subsidiary has issued or incurred any Indebtedness that remains
outstanding as of the end of such Reference Period in connection with any
Permitted Acquisition or pursuant to Sections 6.01(d), 6.01(g) or 6.01(j),
Consolidated Interest Expense for such Reference Period shall be calculated
after giving effect on a pro forma basis to (I) such Indebtedness as if such
Indebtedness had been issued or incurred on the first day of such Reference
Period and (II) the discharge of any other Indebtedness repaid, repurchased or
otherwise discharged with the proceeds of such new Indebtedness as if such
discharge had occurred on the first day of such Reference Period, (B) the
Borrower or any Consolidated Subsidiary shall have made any Asset Sale with a
net book value in excess of $1,000,000, the Consolidated EBITDA for such
Reference Period shall be reduced by the amount equal to Consolidated EBITDA (if
positive) directly attributable to the assets which are the subject of such
Asset Sale for such Reference Period, or increased by an amount equal to the
Consolidated EBITDA (if negative), directly attributable thereto for such
Reference Period, and Consolidated Interest Expense for such Reference Period
shall be reduced by an amount equal to the Consolidated Interest Expense
directly attributable to any Indebtedness of the Borrower or any Consolidated
Subsidiary repaid or otherwise discharged with respect to the Borrower and its
continuing Consolidated Subsidiaries in connection with such Asset Sale for such
Reference Period (or, if the Capital Stock of any Consolidated Subsidiary is
sold, the Consolidated Interest Expense for such Reference Period directly
attributable to the Indebtedness of such Consolidated Subsidiary to the extent
the Borrower and its continuing Consolidated Subsidiaries are no longer liable
for such Indebtedness after such sale), and (C) the Borrower or any Consolidated
Subsidiary shall have made a Permitted Acquisition, Consolidated EBITDA for such
Reference Period shall be calculated after giving pro forma effect thereto as if
such Permitted Acquisition occurred on the first day of such Reference Period.
For purposes of this definition, whenever pro forma effect is to be given to an
acquisition of assets, (i) the amount of income or earnings relating thereto and
the
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amount of Consolidated Interest Expense associated with any Indebtedness issued
or incurred in connection therewith, the pro forma calculations shall be
determined in good faith by a responsible Financial Officer of the Borrower and
(ii) if any Indebtedness bears a floating rate of interest and is being given
pro forma effect, the interest on such Indebtedness shall be calculated as if
the rate in effect on the date of the beginning of the applicable Reference
Period had been the applicable rate for the entire period. Whenever pro forma
effect is to be given to any event or for any Reference Period, the pro forma
calculations made shall be cumulative of all events for which pro forma effect
is to be given that have occurred within or that relate to the applicable
Reference Period.
"CONSOLIDATED NET INCOME" shall mean, for any period for any person,
net income or loss of such person and its Consolidated Subsidiaries for such
period determined on a consolidated basis in accordance with GAAP; PROVIDED,
THAT, there shall be excluded from such calculation of net income or loss (a)
the income of any person in which any other person (other than such person or
any of its subsidiaries or any director holding qualifying shares in accordance
with applicable law) has a joint interest, except to the extent of the amount of
dividends or other distributions actually paid to such person or any of its
Wholly Owned Subsidiaries by such other person during such periods, (b) the
income (or loss) of any other person accrued prior to the date it becomes a
subsidiary of such person or is merged into or consolidated with such person or
any of its subsidiaries or the date that such other person's assets are acquired
by such person or any of its subsidiaries, (c) the income of any subsidiary of
such person to the extent that the declaration or payment of dividends or
similar distributions by such subsidiary of that income is not at the time
permitted by operation of the terms of its charter or any agreement, instrument,
judgment, decree, order, statute, rule or governmental regulation applicable to
that subsidiary, except that, with respect to the Borrower and its Consolidated
Subsidiaries, the income of the German Subsidiary shall not be subject to
exclusion from the Borrower's Consolidated Net Income pursuant to this clause
(c) solely because of negative retained earnings existing as of the Closing Date
that prevent, under German law, the payment of dividends by the German
Subsidiary; (d) any after-tax gains attributable to sales of assets out of the
ordinary course of business and (e) (to the extent not included in clauses (a)
through (d) above) any non-cash extraordinary gains.
"CONSOLIDATED NET WORTH" shall mean, as of any date of determination,
the total of all amounts which would in accordance with GAAP be included on a
consolidated balance sheet of the Borrower and its Consolidated Subsidiaries as
of such date as stockholder's equity, LESS any amounts attributable to
Disqualified Stock.
"CONSOLIDATED PRICING RATIO" shall mean, for the Borrower as of any
date, the ratio of (a) Total Debt on such date, less the aggregate principal
amount of Letters of Credit outstanding on such date, to (b) Consolidated EBITDA
for the Reference Period applicable to such date; PROVIDED, THAT, if, since the
beginning of the applicable Reference Period, (A) the Borrower or any
Consolidated Subsidiary has issued or incurred any Indebtedness that remains
outstanding as of the end of such Reference Period in connection with any
Permitted Acquisition or pursuant to Sections 6.01(d), 6.01(g) or 6.01(j),
Consolidated Interest Expense for such Reference Period shall be calculated
after giving effect on a pro forma basis to (I) such Indebtedness as if such
Indebtedness had been issued or incurred on the first day of
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such Reference Period and (II) the discharge of any other Indebtedness repaid,
repurchased or otherwise discharged with the proceeds of such new Indebtedness
as if such discharge had occurred on the first day of such Reference Period, (B)
the Borrower or any Consolidated Subsidiary shall have made any Asset Sale with
a net book value in excess of $1,000,000, the Consolidated EBITDA for such
Reference Period shall be reduced by the amount equal to Consolidated EBITDA (if
positive) directly attributable to the assets which are the subject of such
Asset Sale for such Reference Period, or increased by an amount equal to the
Consolidated EBITDA (if negative), directly attributable thereto for such
Reference Period, and Consolidated Interest Expense for such Reference Period
shall be reduced by an amount equal to the Consolidated Interest Expense
directly attributable to any Indebtedness of the Borrower or any Consolidated
Subsidiary repaid or otherwise discharged with respect to the Borrower and its
continuing Consolidated Subsidiaries in connection with such Asset Sale for such
Reference Period (or, if the Capital Stock of any Consolidated Subsidiary is
sold, the Consolidated Interest Expense for such Reference Period directly
attributable to the Indebtedness of such Consolidated Subsidiary to the extent
the Borrower and its continuing Consolidated Subsidiaries are no longer liable
for such Indebtedness after such sale), and (C) the Borrower or any Consolidated
Subsidiary shall have made a Permitted Acquisition, Consolidated EBITDA for such
Reference Period shall be calculated after giving pro forma effect thereto as if
such Permitted Acquisition occurred on the first day of such Reference Period.
For purposes of this definition, whenever pro forma effect is to be given to an
acquisition of assets, (i) the amount of income or earnings relating thereto and
the amount of Consolidated Interest Expense associated with any Indebtedness
issued or incurred in connection therewith, the pro forma calculations shall be
determined in good faith by a responsible Financial Officer of the Borrower and
(ii) if any Indebtedness bears a floating rate of interest and is being given
pro forma effect, the interest on such Indebtedness shall be calculated as if
the rate in effect on the date of the beginning of the applicable Reference
Period had been the applicable rate for the entire period. Whenever pro forma
effect is to be given to any event or for any Reference Period, the pro forma
calculations made shall be cumulative of all events for which pro forma effect
is to be given that have occurred within or that relate to the applicable
Reference Period.
"CONSOLIDATED SUBSIDIARIES" shall mean, for any person, all
subsidiaries of such person that should be consolidated with such person for
financial reporting purposes in accordance with GAAP.
"CONTROL" shall mean the possession, direct or indirect, of the power
to direct or cause the direction of the management or policies of a person,
whether through the ownership of voting securities, by contract or otherwise,
and "Controlling" and "Controlled" shall have meanings correlative thereto.
"DEFAULT" shall mean any event or condition which upon notice, lapse of
time or both would constitute an Event of Default.
"DISQUALIFIED STOCK" of any person shall mean (a) any Capital Stock of
such person or any subsidiary of such person which by its terms (or by the terms
of any security into which it is convertible or for which it is exchangeable or
exercisable), upon the happening of any event or otherwise (i) matures or is
mandatorily redeemable or subject to any mandatory
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repurchase requirement, pursuant to a sinking fund obligation or otherwise, (ii)
is convertible into or exchangeable or exercisable for Indebtedness or
Disqualified Stock or (iii) is redeemable or subject to any repurchase
requirement exercisable at the option of the holder thereof, in whole or in
part, in each case on or prior to the first anniversary of the Tranche A
Revolving Credit Maturity Date (or, if earlier, the first anniversary of the
date on which all the Obligations have been indefeasibly paid in full in cash
and the Commitments have been terminated) and (b) any Preferred Stock of a
subsidiary of such person.
"DISSENTING LENDER" shall have the meaning assigned to such term in
Section 2.09(f).
"DOLLARS" or "$" shall mean lawful money of the United States of
America.
"DOMESTIC SUBSIDIARY" shall mean any Subsidiary incorporated or
organized under the laws of the United States of America, any state thereof or
the District of Columbia; PROVIDED, that, for purposes of this Agreement,
Xxxxxxx & Xxxxx International Sales Company, Inc., a U.S. Virgin Islands
Corporation, shall not be considered a Domestic Subsidiary.
"EASTERN STANDARD TIME" shall mean Eastern Standard Time or, if
applicable, Daylight Savings Time in the eastern time zone in which Dayton, Ohio
is located.
"EFFECTIVE DATE" shall mean the first date on which this Agreement
shall become effective pursuant to Section 9.03.
"ERISA" shall mean the Employee Retirement Income Security Act of 1974,
as the same may be amended from time to time.
"EURODOLLAR BORROWING" shall mean a Tranche A Eurodollar Borrowing or a
Tranche B Eurodollar Borrowing.
"EVENT OF DEFAULT" shall have the meaning assigned to such term in
Article VII.
"EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended.
"EXCLUDED TAXES" shall have the meaning assigned to such term in
Section 2.19(a).
"EXISTING DEBT" shall mean the outstanding indebtedness of the Borrower
existing immediately prior to the first Borrowing hereunder, other than
indebtedness evidenced and created by the Subordinated Notes and other
Indebtedness that is listed on Schedule 6.01.
"FACILITIES" shall mean the Tranche A Revolving Credit Facility and the
Tranche B Revolving Credit Facility provided or participated in by the Lenders
to the Borrower pursuant to this Agreement and the other Loan Documents.
"FAIR MARKET VALUE" shall mean with respect to any Permitted
Acquisition, the value that would be obtained in an arm's-length transaction
between an informed and willing seller under no compulsion to sell and an
informed and willing buyer.
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"FEDERAL FUNDS EFFECTIVE RATE" shall mean, for any day, the weighted
average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers, as published on the
next succeeding Business Day by the Federal Reserve Bank of New York, or, if
such rate is not so published for any day which is a Business Day, the average
of the quotations for the day of such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing
selected by it. Each change in the Federal Funds Effective Rate shall be
effective on the date thereof, without notice to the Borrower.
"FEE LETTER" shall have the meaning assigned to such term in Section
2.05(c).
"FEES" shall mean the Commitment Fees, the Letter of Credit Fees, the
Fronting Fees and the other fees payable pursuant to the Fee Letter.
"FINANCIAL OFFICER" of any corporation shall mean the chief financial
officer, principal accounting officer or similar officer of such corporation.
"FISCAL YEAR" shall mean, when used with respect to any year, the
Fiscal Year of the Borrower ending on August 31 of such year.
"FOREIGN SUBSIDIARY" shall mean any Subsidiary which is not a Domestic
Subsidiary (including, without limitation, Xxxxxxx & Xxxxx International Sales
Company, Inc.).
"FRONTING FEE" shall have the meaning assigned to that term in Section
2.05(b)(ii).
"GAAP" shall mean United States generally accepted accounting
principles, applied on a consistent basis.
"GERMAN SUBSIDIARY" shall mean Pfaudler-Werke GMBH, a German limited
liability company.
"GOVERNMENTAL AUTHORITY" shall mean any Federal, state, local or
foreign governmental department, commission, board, bureau, authority, agency,
court, instrumentality or judicial or regulatory body or entity.
"GUARANTEE" of or by any person shall mean any obligation, contingent
or otherwise, of such person guaranteeing or having the economic effect of
guaranteeing any Indebtedness of any other person (the "primary obligor") in any
manner, whether directly or indirectly, and including any obligation of such
person, direct or indirect, (a) to purchase or pay (or advance or supply funds
for the purchase or payment of) such Indebtedness or to purchase (or to advance
or supply funds for the purchase of) any security for the payment of such
Indebtedness, (b) to purchase property, securities or services for the purpose
of assuring the owner of such Indebtedness of the payment of such Indebtedness
or (c) to maintain working capital, equity capital or other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness; PROVIDED, THAT, the term Guarantee shall not
include endorsements for collection or deposit, in either case in the ordinary
course of business.
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"GUARANTEE AGREEMENT" shall mean the Guarantee Agreement among the
Domestic Subsidiaries and the Administrative Agent in the form attached hereto
as Exhibit B, as amended from time to time.
"GUARANTOR" shall mean any guarantor under the Guarantee Agreement.
"HAZARDOUS MATERIALS" shall have the meaning assigned to such term in
Section 3.17.
"INDEBTEDNESS" of any person shall mean, without duplication, (a) all
obligations of such person for borrowed money or with respect to deposits or
advances of any kind made with or to such person, (b) all obligations of such
person evidenced by bonds, debentures, notes or similar instruments (other than
obligations under surety bonds incurred in the ordinary course of business), (c)
all obligations of such person upon which interest charges are customarily paid,
(d) all obligations of such person under conditional sale or other title
retention agreements relating to property or assets purchased by such person,
(e) all obligations of such person issued or assumed as the deferred purchase
price of property or services, (f) all Indebtedness of others secured by (or for
which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any Lien on property owned or acquired by such
person, whether or not the obligations secured thereby have been assumed, (g)
all Guarantees by such person of Indebtedness of others, (h) all Capital Lease
Obligations of such person, (i) all obligations of such person in respect of
Interest Rate Protection Agreements, (j) all obligations of such person,
contingent or otherwise, as an account party in respect of letters of credit and
bankers' acceptances and (k) all obligations of such person to contribute money
or other property to any other person. The Indebtedness of any person shall
include, without duplication, the Indebtedness of any partnership in which such
person is a general partner and of any trust or other entity formed or utilized
in connection with a securitization of assets of such person. Notwithstanding
the foregoing, the Indebtedness of any person shall exclude all trade accounts
payable, customer advance payments, and accrued expenses determined in
accordance with GAAP and all of which arise or are incurred in the ordinary
course of business.
"INDEMNIFIED PARTY" shall have the meaning assigned to such term in
Section 9.05(b).
"INDEMNITY, SUBROGATION AND CONTRIBUTION AGREEMENT" shall mean the
Indemnity, Subrogation and Contribution Agreement, substantially in the form of
Exhibit K hereto, among the Borrower, the Domestic Subsidiaries and the
Administrative Agent, as amended from time to time.
"INDIAN AFFILIATE" shall mean Gujarat Machinery Manufacturing Co., an
Indian corporation.
"INTERCOMPANY INDEBTEDNESS" shall mean Indebtedness of the Borrower or
any Subsidiary to (a) any Wholly Owned Subsidiary that is a Domestic Subsidiary
or (b) the Borrower.
"INTERCOMPANY NOTES" shall mean the promissory notes issued as
contemplated by Sections 6.01(c) and 6.04(b), in the form attached hereto as
Exhibit D.
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"INTEREST PAYMENT DATE" shall mean, with respect to any Loan, all of
the following to the extent applicable: (a) the last day of the Interest Period
applicable to the Borrowing of which such Loan is a part, (b) if such Loan is
part of any Eurodollar Borrowing with an Interest Period of more than three
months' duration, each day that would have been an Interest Payment Date had
successive Interest Periods of three months' duration been applicable to such
Borrowing, (c) if such Loan is part of any Eurodollar Borrowing, the date of any
repayment or prepayment of the Borrowing of which such Loan is a part, (d) if
such Loan is a part of any ABR Borrowing, the date of any prepayment of the
Borrowing required pursuant to the terms of Section 2.11 and (e) any conversion
of any Eurodollar Borrowing to any ABR Borrowing.
"INTEREST PERIOD" shall mean (a) as to any Tranche A Eurodollar
Borrowing, the period commencing on the date of such Borrowing or on the last
day of the immediately preceding Interest Period applicable to such Borrowing,
as the case may be, and ending on the numerically corresponding day (or, if
there is no numerically corresponding day, on the last day) in the calendar
month that is 1, 2, 3 or 6 months thereafter, as the Borrower may elect, subject
to the availability thereof, as determined by the Administrative Agent, (b) as
to any Tranche B Eurodollar Borrowing, the period commencing on the date of such
Borrowing or on the last day of the immediately preceding Interest Period
applicable to such Borrowing, as the case may be, and ending on the numerically
corresponding day (or, if there is no numerically corresponding day, on the last
day) in the calendar month that is 1, 2 or 3 months thereafter, as the Borrower
may elect, subject to the availability thereof, as determined by the
Administrative Agent, and (c) as to any ABR Borrowing (including any ABR
Borrowing comprised of Swingline Loans), the period commencing on the date of
such Borrowing or on the last day of the immediately preceding Interest Period
applicable to such Borrowing, as the case may be, and ending on the earliest of
(i) the next succeeding March 31, June 30, September 30 or December 31, (ii) the
Tranche A Revolving Credit Maturity Date or the Tranche B Revolving Credit
Maturity Date, as applicable, and (iii) the date such Borrowing is prepaid in
accordance with Section 2.11; PROVIDED, THAT, if any Interest Period would end
on a day other than a Business Day, such Interest Period shall be extended to
the next succeeding Business Day unless, in the case of a Eurodollar Borrowing
only, such next succeeding Business Day would fall in the next calendar month,
in which case such Interest Period shall end on the next preceding Business Day.
Interest shall accrue from and including the first day of an Interest Period to,
but excluding, the last day of such Interest Period.
"INTEREST RATE PROTECTION AGREEMENT" shall mean any interest rate swap,
collar, cap or other arrangement requiring payments contingent upon interest
rates.
"ISSUING BANK" shall mean Bank One, Dayton, N.A., in its capacity as
the issuer of Letters of Credit, and its successors in such capacity.
"LENDER" shall mean each financial institution listed on the signature
pages hereof, each assignee which becomes a Lender pursuant to Section 9.04(b),
and their respective successors (including the Swingline Lender).
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"LETTERS OF CREDIT" shall mean any and all letters of credit issued
pursuant to Section 2.22 and all letters of credit issued by Bank One, Dayton,
N.A., under documents and instruments creating certain Existing Debt being
satisfied at Closing, which letters of credit, upon the satisfaction of all
conditions precedent to borrowing as set forth in Article IV hereof, shall
remain issued and outstanding and shall be deemed to have been issued pursuant
to the terms of this Agreement.
"LETTER OF CREDIT AVAILABILITY PERIOD" shall mean the period from and
including the Closing Date to but excluding the earlier of (a) the date five
Business Days prior to the Tranche A Revolving Credit Maturity Date and (b) the
termination of the Tranche A Revolving Credit Commitments of the Lenders in
accordance with the terms hereof.
"LETTER OF CREDIT COMMITMENT" shall mean the commitment of the Issuing
Bank to issue Letters of Credit pursuant to Section 2.22.
"LETTER OF CREDIT DISBURSEMENT" shall mean a payment or disbursement
made by the Issuing Bank pursuant to a Letter of Credit.
"LETTER OF CREDIT EXPOSURE" shall mean at any time an amount equal to
the sum of (a) the aggregate undrawn amount of all outstanding Letters of
Credit, PLUS (b) the aggregate amount of all Letter of Credit Disbursements not
yet reimbursed by the Borrower as provided in Section 2.22. The Letter of Credit
Exposure of any Tranche A Lender at any time shall mean its Applicable Tranche A
Percentage of the aggregate Letter of Credit Exposure at such time.
"LETTER OF CREDIT FEE" shall have the meaning assigned to that term in
Section 2.05(b)(i).
"LEVEL I PRICING PERIOD" shall mean, subject to Section 2.06(c), any
period on or after the Closing Date during which the Consolidated Pricing Ratio
is less than or equal to 1.50:1.00 and no Event of Default has occurred and is
continuing.
"LEVEL II PRICING PERIOD" shall mean, subject to Section 2.06(c), any
period on or after the Closing Date during which the Consolidated Pricing Ratio
is greater than 1.50:1.00 but less than or equal to 2.00:1.00 and no Event of
Default has occurred and is continuing.
"LEVEL III PRICING PERIOD" shall mean, subject to Section 2.06(c), any
period on or after the Closing Date during which the Consolidated Pricing Ratio
is greater than 2.00:1.00 but less than or equal to 2.50:1.00 and no Event of
Default has occurred and is continuing.
"LEVEL IV PRICING PERIOD" shall mean, subject to Section 2.06(c), any
period on or after the Closing Date during which the Consolidated Pricing Ratio
is greater than 2.50:1.00 but less than or equal to 3.00:1.00 and no Event of
Default has occurred and is continuing.
"LEVEL V PRICING PERIOD" shall mean, subject to Section 2.06(c), any
period on or after the Closing Date during which the Consolidated Pricing Ratio
is greater than 3.00:1.00 but less than or equal to 3.50:1.00 and no Event of
Default has occurred and is continuing.
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"LEVEL VI PRICING PERIOD" shall mean any period on or after the Closing
Date which is not a Level I Pricing Period, Level II Pricing Period, Level III
Pricing Period, Level IV Pricing Period or Level V Pricing Period.
"LIBO RATE" shall mean, with respect to any Eurodollar Borrowing for
any Interest Period, the rate (rounded upwards, if necessary, to the next 1/16
of 1%) per annum designated as the British Bankers' Association settlement rate,
which appears on the display on page 3750 (under the caption "USD") of the
Telerate Services, Incorporated screen (the "Telerate Screen") (or on such other
display as may replace such page on the Telerate Screen) as of 11:00 a.m.
(London time) two Business Days prior to the commencement of such Interest
Period, for a period of time comparable to such Interest Period; PROVIDED, THAT,
if no offered quotations appear on the Telerate Screen or if quotations are not
given on the Telerate Screen for the selected period, then the LIBO Rate shall
be the rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%)
appearing on Reuters Screen LIBO Page as the London interbank offered rate for
deposits in dollars at approximately 11:00 a.m. (London time) two Business Days
prior to the commencement of such Interest Period, for a term comparable to such
Interest Period; and PROVIDED, FURTHER, that if more than one rate is specified
on Reuters Screen LIBO Page, the applicable rate shall be the arithmetic mean of
all such rates.
"LIBOR LOAN" shall mean any Revolving Loan bearing interest at a rate
determined by reference to the Adjusted LIBO Rate in accordance with the
provisions of Article II.
"LIEN" shall mean, with respect to any asset, any mortgage, deed of
trust, lien, pledge, easement, restriction, restrictive covenant, lease,
sublease, option, charge, security interest or encumbrance of any kind in
respect of such asset. For purposes hereof, the Borrower or any Subsidiary shall
be deemed to own subject to a lien any asset which it has acquired or holds
subject to the interest of a vendor or a lessor under any conditional sale
agreement, capital lease or title retention agreement relating to such asset.
"LOAN DOCUMENTS" shall mean this Agreement, the Notes, the Letters of
Credit, the Guarantee Agreement, the Indemnity, Subrogation and Contribution
Agreement, the Intercompany Notes, the Collateral Documents, any Interest Rate
Protection Agreements entered into by the Borrower with any Lender or Affiliate
thereof as permitted hereunder and any Supplemental Agreements.
"LOANS" shall mean any or all of the Revolving Loans and the Swingline
Loans.
"MARGIN STOCK" shall have the meaning assigned to such term under
Regulation U.
"MATERIAL ADVERSE CHANGE" shall mean a material adverse change in the
business, assets, liabilities, financial condition, prospects or results of
operations of Borrower and the Subsidiaries, taken as a whole.
"MATERIAL ADVERSE EFFECT" shall mean (a) a materially adverse effect on
the material existing agreements and relationships, business, financial
condition or results of operations of the Borrower and the Subsidiaries, taken
as a whole, (b) a material impairment of the ability
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of the Borrower or any of the Subsidiaries to perform its material obligations
under any Loan Document to which it is or will be a party or (c) a material
impairment of the rights of or benefits available to the Lenders under any Loan
Document. In determining whether any individual event would result in a Material
Adverse Effect, notwithstanding that such event does not itself have such
effect, a Material Adverse Effect shall be deemed to have occurred if the
cumulative effect of such event and all other then existing events would result
in a Material Adverse Effect.
"MATERIAL CONTRACTS" shall have the meaning assigned to such term in
Section 3.10(a).
"MAXIMUM RATE" shall have the meaning assigned to such term in Section
9.09.
"MEXICAN SUBSIDIARY" shall mean Pfaudler S.A. de C.V., a Mexican
corporation.
"MULTIEMPLOYER PLAN" shall mean a Plan which is a multiemployer plan as
defined in Section 4001(a)(3) of ERISA.
"NCMI" shall mean NationsBanc Capital Markets, Inc.
"NET CASH PROCEEDS" shall mean, with respect to any Prepayment Event,
an amount equal to (a) the gross cash proceeds (including insurance proceeds and
condemnation awards in the case of any casualty) actually paid to or actually
received by or on behalf of the Borrower or any Subsidiary from or in respect of
such event (including cash received as proceeds from any noncash consideration
received in respect of any such event), LESS (b) the sum of (i) any expenses
reasonably incurred by the Borrower and the Subsidiaries in respect of such
Prepayment Event, including, in the case of a sale or issuance of Capital Stock,
underwriters' fees, discounts or commissions and, in the case of a disposition
of assets or properties, commissions, (ii) in the case of a disposition of
assets or properties, amounts required to be applied to repay Indebtedness
(other than Loans) associated with the assets or properties subject to such
Prepayment Event and (iii) in the case of a disposition of assets or properties,
taxes paid or payable by the Borrower and the Subsidiaries (as determined
reasonably and in good faith by a Financial Officer of the Borrower) in respect
of such Prepayment Event.
"NEW LENDING OFFICE" shall have the meaning assigned to such term in
Section 2.19(f).
"NON-U.S. LENDER" shall have the meaning assigned to such term in
Section 2.19(g).
"NOTES" shall mean the Revolving Credit Notes and the Swingline Note.
"OBLIGATIONS" shall mean (a) the Borrower's obligations in respect of
the due and punctual payment of principal of and interest (including interest
accruing after the filing of a petition initiating any proceeding referred to in
paragraph (g) or (h) of Article VII of this Agreement) on the Loans and all
amounts drawn under the Letters of Credit, when and as due, whether at maturity,
by acceleration, upon one or more dates set for prepayment or otherwise, (b) all
Fees, expenses, indemnities and expense reimbursement obligations of the
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Borrower under this Agreement, the Fee Letter, or any other Loan Document and
(c) all other obligations, monetary or otherwise, of the Borrower or any of the
Subsidiaries under any Loan Document (including any Interest Rate Protection
Agreement entered into by the Borrower after the Closing Date with any Lender or
Affiliate of a Lender as permitted under this Agreement) to which it is a party,
in each case, whether now owing or hereafter existing.
"OFFICER'S CERTIFICATE" shall mean, as to any corporation, a
certificate executed on its behalf by the Chairman of the Board of Directors (if
an officer) or its President or one of its Vice Presidents and its Treasurer, or
Controller, or one of its Assistant Treasurers or Assistant Controllers, and, as
to any partnership, a certificate executed on behalf of such partnership by its
general partner in a manner which would qualify such certificate as an Officer's
Certificate of such general partner hereunder.
"OTHER TAXES" shall have the meaning assigned to that term in Section
2.19(b).
"PBGC" shall mean the Pension Benefit Guaranty Corporation established
pursuant to Subtitle A of Title IV of ERISA or any successor thereto.
"PERFECTION CERTIFICATE" shall mean a certificate from the Borrower and
the Subsidiaries substantially in the form of Exhibit H hereto.
"PERMITTED ACQUISITION" shall have the meaning assigned to that term in
Section 6.04(g).
"PERMITTED INDEBTEDNESS" shall mean Indebtedness permitted pursuant to
Section 6.01.
A "PERSON" shall mean any natural person, corporation, business trust,
joint venture, association, company, limited liability company, partnership,
government (or any agency or political subdivision thereof) or other entity.
"PLAN" shall mean at a particular time, any employee benefit plan which
is covered by ERISA and in respect of which the Borrower or a Commonly
Controlled Entity is (or, if such plan were terminated at such time, would under
Section 4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5)
of ERISA.
"PLEDGE AGREEMENT" shall mean the Pledge and Security Agreement among
the Borrower, the Domestic Subsidiaries and the Administrative Agent in the form
attached hereto as Exhibit C, as amended from time to time.
"PREFERRED STOCK", as applied to the Capital Stock of any corporation,
shall mean Capital Stock of any class or classes (however designated) which is
preferred as to the payment of dividends, or as to the distribution of assets
upon any voluntary or involuntary liquidation or dissolution of such
corporation, over shares of Capital Stock of any other class of such
corporation.
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"PREPAYMENT EVENT" shall mean (a) the issuance or sale by the Borrower
or any of its Subsidiaries of any Capital Stock of the Borrower or any of its
Subsidiaries (other than (i) the conversion of any of the Subordinated Notes to
Capital Stock of the Borrower pursuant to the terms thereof, (ii) any such
issuance or sale solely to the Borrower or any of the Wholly Owned Subsidiaries,
and (iii) any issuance of Capital Stock pursuant to employee or director stock
plans of the Borrower or pursuant to the Borrower's Investor Stock Purchase
Plan), (b) the contribution of capital to the equity of the Borrower or any of
its Subsidiaries, whether or not Capital Stock is issued on account thereof
(except as expressly permitted by the terms of Sections 6.04(a)(ii) and
6.04(j)), or (c) any other Asset Sale. The foregoing definition shall not be
deemed to imply that any such action or event is permitted under this Agreement.
"PRIME RATE" shall mean the rate of interest per annum adopted from
time to time by the Administrative Agent as its prime rate as announced and in
effect at its principal office in Dayton, Ohio. Each change in the Prime Rate
shall be effective on the date such change is adopted, without notice to the
Borrower. The Prime Rate is a reference rate used by the Administrative Agent in
determining interest rates on certain loans and is not intended to be the lowest
rate of interest charged on any extension of credit to any debtor.
"PURCHASE MONEY INDEBTEDNESS" shall mean Indebtedness of the Borrower
or any Subsidiary in respect of which a Lien described in Section 6.02(i) is
incurred.
"QUALIFIED ACQUISITION SUBSIDIARY" shall mean (i) any Domestic
Subsidiary, (ii) any Foreign Subsidiary that is a Restricted Subsidiary as long
as the Agents shall have received an opinion of counsel in form, content and as
to counsel reasonably satisfactory to the Agents stating that the Administrative
Agent, on behalf of the Lenders, has a valid, perfected and first priority
security interest, pursuant to the Pledge Agreement, in the applicable
percentage of the Capital Stock of that Subsidiary as required by the Pledge
Agreement, (iii) the UK Subsidiary, as long as the Agents shall have received an
opinion of counsel in form, content and as to counsel reasonably satisfactory to
the Agents stating that the Administrative Agent, on behalf of the Lenders, has
a valid, perfected and first priority security interest, pursuant to the Pledge
Agreement, in the applicable percentage of the Capital Stock of the parent or
parents of the UK Subsidiary (whether directly or indirectly), as required or
contemplated by the Pledge Agreement, and (iv) the Mexican Subsidiary, as long
as the Agents shall have received an opinion of counsel in form, content and as
to counsel reasonably satisfactory to the Agents stating that the Administrative
Agent, on behalf of the Lenders, has a valid, perfected and first priority
security interest, pursuant to the Pledge Agreement, in the applicable
percentage of the Capital Stock of the parent or parents of the Mexican
Subsidiary (whether directly or indirectly), as required or contemplated by the
Pledge Agreement.
"REFERENCE PERIOD" with respect to any date shall mean the period of
four consecutive fiscal quarters of the Borrower immediately preceding such date
or, if such date is the last day of a fiscal quarter, ending on such date.
"REGISTER" shall have the meaning assigned to such term in Section
9.04(d).
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"REGULATION G" shall mean Regulation G of the Board as from time to
time in effect and all official rulings and interpretations thereunder or
thereof.
"REGULATION U" shall mean Regulation U of the Board as from time to
time in effect and all official rulings and interpretations thereunder or
thereof.
"REGULATION X" shall mean Regulation X of the Board as from time to
time in effect and all official rulings and interpretations thereunder or
thereof.
"REPORTABLE EVENT" shall mean any of the events set forth in Section
4043(c) of ERISA, other than those events as to which the PBGC has waived either
the 30-day notice period or the penalty for failure to give notice.
"REQUIRED FINANCIAL STATEMENTS" shall mean, with respect to any period,
the financial statements of the Borrower for such period required under Section
5.04.
"REQUIRED LENDERS" shall mean, at any time, Lenders holding Loans
(excluding Swingline Loans), Letter of Credit Exposure, and Swingline Exposure
and having Revolving Credit Commitments representing in the aggregate at least a
majority of the sum at such time of (a) the aggregate principal amount of the
Loans outstanding (excluding Swingline Loans), (b) the aggregate amount of
Letter of Credit Exposure, (c) the aggregate amount of Swingline Exposure and
(d) the aggregate amount of unused Revolving Credit Commitments.
"RESPONSIBLE OFFICER" of any person shall mean and include the
president, chief executive officer, chief operating officer, any financial
officer, any vice president, the general counsel or any other senior officer of
such person (or, in the case of a partnership, of a general partner thereof).
"RESTRICTED SUBSIDIARY" shall mean (i) all Domestic Subsidiaries of the
Borrower, none of the Capital Stock of which is owned by Unrestricted
Subsidiaries and (ii) all Foreign Subsidiaries of the Borrower, all of the
Capital Stock of which is owned directly by the Borrower or a Wholly Owned
Domestic Subsidiary, or any subsidiary described in clauses (i) or (ii) that is
formed or acquired after the date hereof; PROVIDED, THAT, nothing in this
definition shall be deemed to permit any such formation or acquisition of a
subsidiary. Each of such Domestic and Foreign Subsidiaries existing as of the
Closing Date are listed on Schedule 1.01.
"REVOLVING CREDIT BORROWING" shall mean a Borrowing comprised of
Revolving Loans.
"REVOLVING CREDIT COMMITMENT" of a Lender shall mean its Tranche A
Revolving Credit Commitment and its Tranche B Revolving Credit Commitment, or
either of them.
"REVOLVING CREDIT NOTES" shall mean the Tranche A Revolving Credit
Notes and the Tranche B Revolving Credit Notes.
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"REVOLVING LOANS" shall mean the Tranche A Revolving Loans or the
Tranche B Revolving Loans.
"SEC" shall mean the Securities and Exchange Commission, and any
successor thereto.
"SECURED PARTIES" shall mean (a) the Lenders and the Issuing Bank, (b)
the Administrative Agent and the Syndication Agent, in their capacities as such
under each Loan Document, (c) each Agent or Lender with which the Borrower
enters into an Interest Rate Protection Agreement pursuant to Section 5.09, in
its capacity as a party to such agreement, (d) the beneficiaries of each
indemnification obligation undertaken by the Borrower or any of the Subsidiaries
under any Loan Document and (e) the successors and assigns of the foregoing.
"SHAREHOLDER" shall mean, as of any date, any person or "group" (within
the meaning of Rule 13d-3 under the Exchange Act) (a) which beneficially owns as
of such date Capital Stock of the Borrower (or of any person Controlling the
Borrower) representing 5% or more of the aggregate ordinary voting power of all
the outstanding Capital Stock of the Borrower (or of such person Controlling the
Borrower) and (b) of which the Borrower has knowledge.
"SINGLE EMPLOYER PLAN" shall mean any Plan which is covered by Title IV
of ERISA, but which is not a Multiemployer Plan.
"SOLVENT" shall have the meaning assigned to such term in Section
3.19(a).
"STATUTORY RESERVES" shall mean a fraction (expressed as a decimal),
the numerator of which is the number one and the denominator of which is the
number one minus the aggregate of the maximum reserve percentages (including any
marginal, special, emergency or supplemental reserves) expressed as a decimal
established by the Board and any other domestic banking authority (and with
respect to any Non-U.S. Lender, any foreign banking authority) to which the
Administrative Agent or any Lender (including any branch, Affiliate or other
fronting office making or holding a Loan) is subject for Eurocurrency
Liabilities (as defined in Regulation D of the Board). Such reserve percentages
shall include those imposed pursuant to such Regulation D. LIBOR Loans shall be
deemed to constitute Eurocurrency Liabilities and to be subject to such reserve
requirements without benefit of or credit for proration, exemptions or offsets
which may be available from time to time to any Lender under such Regulation D.
Statutory Reserves shall be adjusted automatically on and as of the effective
date of any change in any reserve percentage.
"SUBORDINATED NOTES" shall mean (i) the $65,000,000 6.5% Convertible
Subordinated Notes due September 1, 2003, and all documents and instruments
pursuant to which they were issued or related in any way thereto, (ii) the
promissory notes issued or to be issued by Glasteel Parts and Services, Inc., a
Subsidiary of the Borrower, to Pharaoh Corp. (and the associated subordinated
guarantees of the Borrower with respect to each such note) pursuant to the Asset
Purchase Agreement dated as of February 28, 1995 between the Borrower and
Pharaoh Corp., and all documents and instruments pursuant to which they were
issued or related in any way thereto and (iii) the two Promissory Notes dated
February 28, 1995 in the
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original principal amount of $1,917,857 each from Pfaudler, Inc. (a Subsidiary
of the Borrower) to Xxx Xxxx and Xxx Xxxx, respectively, and the associated
Subordinated Guaranty of the Borrower with respect to each such note of even
date therewith, and all documents and instruments pursuant to which they were
issued or related in any way thereto.
The term "SUBSIDIARY" shall mean, with respect to any person (referred
to in this definition as the "parent"), any corporation, partnership,
association or other business entity (a) of which Capital Stock representing
more than 50% of the aggregate ordinary voting power or more than 50% of the
ownership interests is, at the time any determination is being made, owned,
Controlled or held, or (b) which is, at the time any determination is made,
otherwise Controlled, by (i) the parent, (ii) one or more subsidiaries of the
parent or (iii) the parent and one or more subsidiaries of the parent.
"SUBSIDIARY" shall mean the subsidiaries of the Borrower existing as of
the Closing Date and listed on Schedule 3.08 and other subsidiaries of the
Borrower that are permitted to be created or acquired hereafter pursuant to the
express terms of this Agreement.
"SUPPLEMENTAL AGREEMENT" shall mean an agreement between a Subsidiary
and the Administrative Agent in the form attached hereto as Exhibit I, as
amended from time to time.
"SWINGLINE BORROWING" shall mean a Borrowing comprised of Swingline
Loans.
"SWINGLINE COMMITMENT" shall mean the commitment of the Swingline
Lender to make loans pursuant to Section 2.01(d) and Section 2.21, as the same
may be reduced from time to time pursuant to Section 2.09.
"SWINGLINE EXPOSURE" shall mean at any time the aggregate principal
amount at such time of all outstanding Swingline Loans. The Swingline Exposure
of any Tranche A Lender at any time shall equal its Applicable Tranche A
Percentage of the aggregate Swingline Exposure at such time.
"SWINGLINE LENDER" shall mean Bank One, Dayton, N.A., and its
successors in such capacity.
"SWINGLINE LOANS" shall mean any loan made by the Swingline Lender
pursuant to Section 2.01(d) and 2.21.
"SWINGLINE NOTE" shall mean a promissory note of the Borrower,
substantially in the form of Exhibit A-3 hereto, evidencing Swingline Loans.
"SYNDICATION AGENT" shall mean NationsBank, N.A., in its capacity as
syndication agent and documentation agent for the Lenders hereunder, and its
successors in such capacity.
"TAXES" shall have the meaning assigned to such term in Section
2.19(a).
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"TOTAL DEBT" shall mean, as of any date, the aggregate amount of (a)
all Revolving Loans, Letters of Credit and Swingline Loans outstanding as of
such date and (b) all other Indebtedness (other than (i) Interest Rate
Protection Agreements permitted by Section 6.01(h), (ii) the obligations of the
German Subsidiary with respect to its unfunded German pension plan and (iii)
post retirement obligations of the Borrower and the Domestic Subsidiaries) of
the Borrower and its Consolidated Subsidiaries as of such date, determined on a
consolidated basis in accordance with GAAP, which by its terms or by the terms
of any instrument or agreement relating thereto matures more than one year from
the date of the initial creation thereof (including any current installment
thereof due within one year of the date of determination); PROVIDED, THAT, Total
Debt shall include any Indebtedness which does not otherwise come within the
foregoing definition but which is directly or indirectly renewable or extendible
at the option of the debtor to a date one year or more (including an option of
the debtor under a revolving credit or similar agreement obligating the lender
or lenders to extend credit over a period of one year or more) from the date of
the initial creation thereof.
"TRANCHE A EURODOLLAR BORROWING" shall mean a Borrowing comprised of
Tranche A Revolving Loans bearing interest at a rate based on the Adjusted LIBO
Rate.
"TRANCHE A LENDER" shall mean any Lender making Tranche A Revolving
Loans.
"TRANCHE A REVOLVING CREDIT AVAILABILITY PERIOD" shall mean the period
from and including the Closing Date to but excluding the termination of the
Tranche A Revolving Credit Commitments of the Lenders in accordance with the
terms hereof.
"TRANCHE A REVOLVING CREDIT COMMITMENT" shall mean, with respect to
each Tranche A Lender, the commitment of such Tranche A Lender to make Tranche A
Revolving Loans hereunder as set forth on Schedule 2.01(a), or in the Assignment
and Acceptance pursuant to which such Tranche A Lender assumed its Tranche A
Revolving Credit Commitment, as applicable, as the same may be (a) reduced from
time to time pursuant to Section 2.09 and (b) reduced or increased from time to
time pursuant to assignments by or to such Tranche A Lender pursuant to Section
9.04.
"TRANCHE A REVOLVING CREDIT FACILITY" shall mean the Tranche A
Revolving Loans, the Swingline Loans and the Letters of Credit provided or
participated in by the Tranche A Lenders to the Borrower pursuant to this
Agreement and the other Loan Documents.
"TRANCHE A REVOLVING CREDIT MATURITY DATE" shall mean November 26,
2001.
"TRANCHE A REVOLVING CREDIT NOTE" shall mean a promissory note of the
Borrower, substantially in the form of Exhibit A-1 hereto, evidencing Tranche A
Revolving Loans.
"TRANCHE A REVOLVING LOANS" shall mean the revolving loans made by the
Lenders to the Borrower pursuant to Section 2.01(a). Each Tranche A Revolving
Loan shall be a LIBOR Loan or an ABR Loan.
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"TRANCHE B EURODOLLAR BORROWING" shall mean a Borrowing comprised of
Tranche B Revolving Loans bearing interest at a rate based on the Adjusted LIBO
Rate.
"TRANCHE B LENDER" shall mean any Lender making Tranche B Revolving
Loans.
"TRANCHE B REVOLVING CREDIT AVAILABILITY PERIOD" shall mean the period
from and including the Closing Date to but excluding the termination of the
Tranche B Revolving Credit Commitments of the Lenders in accordance with the
terms hereof.
"TRANCHE B REVOLVING CREDIT COMMITMENT" shall mean, with respect to
each Tranche B Lender, the commitment of such Tranche B Lender to make Tranche B
Revolving Loans hereunder as set forth on Schedule 2.01(b), or in the Assignment
and Acceptance pursuant to which such Tranche B Lender assumed its Tranche B
Revolving Credit Commitment, as applicable, as the same may be (a) reduced from
time to time pursuant to Section 2.09 and (b) reduced or increased from time to
time pursuant to assignments by or to such Tranche B Lender pursuant to Section
9.04.
"TRANCHE B REVOLVING CREDIT FACILITY" shall mean the Tranche B
Revolving Loans participated in by the Tranche B Lenders to the Borrower
pursuant to this Agreement and the other Loan Documents.
"TRANCHE B REVOLVING CREDIT MATURITY DATE" shall mean November 25,
1997; PROVIDED, THAT, if the Borrower requests and obtains a 364 day extension
of the Tranche B Revolving Credit Facility pursuant to Section 2.09(f), the
Tranche B Revolving Credit Maturity Date shall mean the date that is 364 days
from the prior Tranche B Revolving Credit Maturity Date.
"TRANCHE B REVOLVING CREDIT NOTE" shall mean a promissory note of the
Borrower, substantially in the form of Exhibit A-2 hereto, evidencing Tranche B
Revolving Loans.
"TRANCHE B REVOLVING LOANS" shall mean the revolving loans made by the
Lenders to the Borrower pursuant to Section 2.01(b). Each Tranche B Revolving
Loan shall be a LIBOR Loan or an ABR Loan.
"TRANSFEREE" shall have the meaning assigned to such term in Section
2.19(a).
"TYPE" shall have the meaning assigned to such term in Section 1.03.
"UK SUBSIDIARY" shall mean Xxxxxxx & Xxxxx U.K. Limited, an English
corporation.
"UNRESTRICTED SUBSIDIARY" shall mean any Subsidiary other than a
Restricted Subsidiary.
"VOTING STOCK" shall have the meaning assigned to such term in the
definition of "Change of Control".
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"WHOLLY OWNED SUBSIDIARY" shall mean, at any time, any Subsidiary, all
of the Capital Stock of which is at such time directly or indirectly owned by
the Borrower.
SECTION 1.02. TERMS GENERALLY. The definitions in Section 1.01 shall
apply equally to both the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words "include", "includes" and
"including" shall be deemed to be followed by the phrase "without limitation".
All references herein to Articles, Sections, Exhibits and Schedules shall be
deemed references to Articles and Sections of, and Exhibits and Schedules to,
this Agreement unless the context shall otherwise require. Unless otherwise
expressly provided herein, all terms of an accounting or financial nature used
herein shall be interpreted in accordance with GAAP, as in effect from time to
time; PROVIDED, THAT, for purposes of (a) making any calculation contemplated by
the provisions of Article II and (b) determining compliance with any covenant
set forth in Article VI, such terms shall be construed in accordance with GAAP
as in effect on the date of this Agreement applied on a basis consistent with
the application used in preparing the audited financial statements of the
Borrower referred to in Section 3.05.
SECTION 1.03. TYPES OF BORROWINGS. The term "Borrowing" refers to the
portion of the aggregate principal amount of Loans of any Class outstanding
hereunder which bears interest of a specific Type and for a specific Interest
Period pursuant to a notice of Borrowing pursuant to Section 2.03. Each Lender's
ratable share of each Borrowing is referred to herein as a separate "Loan".
Borrowings and Loans hereunder are distinguished by "Class" and "Type". The
"Class" of a Loan or of a Commitment to make such a Loan or of a Borrowing
comprising such Loans refers to whether such Loan is a Tranche A Revolving Loan,
a Tranche B Revolving Loan or a Swingline Loan. The "Type" of a Loan refers to
whether such Loan is an ABR Loan or a LIBOR Loan. Borrowings and Loans may (but
need not) be identified both by Class and Type (E.G., a "LIBOR Tranche A
Revolving Loan" is a Loan which is both a Tranche A Revolving Loan and a LIBOR
Loan).
ARTICLE II
THE CREDITS
SECTION 2.01. COMMITMENT TO MAKE LOANS. (a) Subject to the terms and
conditions and relying upon the representations and warranties herein set forth,
each Tranche A Lender agrees, severally and not jointly, to make Tranche A
Revolving Loans to the Borrower, at any time and from time to time during the
Tranche A Revolving Credit Availability Period, in an aggregate principal amount
at any one time outstanding not to exceed the excess, if any, of such Lender's
Tranche A Revolving Credit Commitment set forth opposite its name on Schedule
2.01(a) (as the same may be reduced from time to time pursuant to Section 2.09
or changed from time to time pursuant to an assignment in accordance with
Section 9.04) over the sum of its Applicable Tranche A Percentage of outstanding
and unpaid Tranche A Revolving Loans at such time, PLUS its Letter of Credit
Exposure at such time PLUS its Swingline Exposure at such time.
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(b) Subject to the terms and conditions and relying upon the
representations and warranties herein set forth, each Tranche B Lender agrees,
severally and not jointly, to make Tranche B Revolving Loans to the Borrower, at
any time and from time to time during the Tranche B Revolving Credit
Availability Period, in an aggregate principal amount at any one time
outstanding not to exceed the excess, if any, of such Lender's Tranche B
Revolving Credit Commitment set forth opposite its name on Schedule 2.01(b) (as
the same may be reduced from time to time pursuant to Section 2.09 or changed
from time to time pursuant to an assignment in accordance with Section 9.04),
over its Applicable Tranche B Percentage of outstanding and unpaid Tranche B
Revolving Loans at such time.
(c) The Borrower may borrow, pay or prepay and reborrow Tranche A
Revolving Loans during the Tranche A Revolving Credit Availability Period and
Tranche B Revolving Loans during the Tranche B Revolving Credit Availability
Period, within the limits set forth in Section 2.01(a) and (b) and upon the
other terms and subject to the other conditions and limitations set forth
herein.
(d) Subject to the terms and conditions and relying on the
representations and warranties herein set forth, the Swingline Lender agrees to
make loans to the Borrower, from time to time during the Tranche A Revolving
Credit Availability Period, in an aggregate principal amount at any one time
outstanding not to exceed the lesser of (i) $10,000,000 and (ii) the excess, if
any, of the aggregate amount of all Lenders' Tranche A Revolving Credit
Commitments, as the same may be reduced from time to time pursuant to Section
2.09 or changed from time to time pursuant to an assignment in accordance with
Section 9.04, over the sum of (A) the then outstanding and unpaid Tranche A
Revolving Credit Loans, (B) the then outstanding aggregate Letter of Credit
Exposure and (C) the then outstanding aggregate Swingline Exposure. Each
Swingline Loan shall be in a principal amount that is an integral multiple of
$100,000.
SECTION 2.02. LOANS. (a) Each Loan (other than Swingline Loans) shall
be made as part of a Borrowing consisting of Loans made by the Lenders ratably
in accordance with their respective Tranche A Revolving Credit Commitments and
Tranche B Revolving Credit Commitments, as the case may be, based on their
Applicable Tranche A Percentage and Applicable Tranche B Percentage,
respectively; PROVIDED, THAT, the failure of any Lender to make any Loan shall
not in itself relieve any other Lender of its obligation to lend hereunder (it
being understood, however, that no Lender shall be responsible for the failure
of any other Lender to make any Loan required to be made by such other Lender).
The Loans comprising any Borrowing (other than a Borrowing comprised of
Swingline Loans) shall be in an aggregate principal amount which is (i) an
integral multiple of $100,000 and not less than $500,000 in the case of LIBOR
Loans and (ii) an integral multiple of $100,000 in the case of ABR Loans.
(b) A particular Borrowing (other than a Borrowing comprised of
Swingline Loans) shall consist solely of ABR Loans or LIBOR Loans as the
Borrower may request pursuant to Section 2.03; PROVIDED, THAT, if an Event of
Default or Default shall have occurred and be continuing (i) the Borrower shall
not be entitled to request any LIBOR Loans and (ii) no Loans of any Type shall
be made unless such Event of Default or Default shall have been waived in
accordance with Section 9.08(b); PROVIDED, THAT, the
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Administrative Agent shall not be deemed liable to the Lenders for disbursing
Loan proceeds received from a Lender if the Administrative Agent had no
knowledge of the existence of a Default or Event of Default. Each Lender may at
its option fulfill its Commitment with respect to any LIBOR Loan by causing any
domestic or foreign branch or Affiliate of such Lender to make such Loan;
PROVIDED, THAT, any exercise of such option shall not affect the obligation of
the Borrower to repay such Loan in accordance with the terms of this Agreement
and the applicable Note. Borrowings of more than one Type and LIBOR Loans
bearing interest for more than one specific Interest Period may be outstanding
at the same time; PROVIDED, THAT, the Borrower shall not be entitled to request
any Borrowing or any continuation or conversion thereof which, if made, would
result in an aggregate of more than ten separate LIBOR Loans of any Lender being
outstanding hereunder at any one time. For purposes of the foregoing, Loans
having different Interest Periods, regardless of whether they commence on the
same date, shall be considered separate Loans.
(c) All Swingline Loans shall be ABR Loans. No Swingline Loan shall be
a LIBOR Loan.
(d) Subject to Section 2.02(h) and Section 2.16, each Lender shall make
each Loan to be made by it hereunder on the proposed date thereof by wire
transfer of immediately available funds to the Administrative Agent in Dayton,
Ohio, not later than 4:00 p.m., Eastern Standard Time, and the Administrative
Agent shall by 6:00 p.m., Eastern Standard Time, credit or wire transfer the
amounts so received to an account in the name of the Borrower maintained with
the Administrative Agent or, if a Borrowing shall not occur on such date because
any condition precedent herein specified shall not have been met, return the
amounts so received to the respective Lenders.
(e) If the Administrative Agent has not received from the Borrower the
payment required by Section 2.22(g) by 2:00 p.m., Eastern Standard Time, on the
date of notice from the Issuing Bank that payment of a draft presented under any
Letter of Credit has been or will be made, as provided in Section 2.22(g), the
Administrative Agent will promptly notify the Issuing Bank and each Lender of
the Letter of Credit Disbursement and, in the case of each Lender, its pro rata
portion of such Letter of Credit Disbursement. Not later than 10:00 a.m.,
Eastern Standard Time, on the next Business Day, each Lender shall make
available its pro rata share (based on such Lender's Applicable Tranche A
Percentage) of such Letter of Credit Disbursement, in Federal or other funds
immediately available in Dayton, Ohio, to the Administrative Agent at its
address set forth in Section 9.01, and the Administrative Agent will promptly
make such funds available to the Issuing Bank. The Administrative Agent will
promptly remit to each Lender that shall have made such funds available its pro
rata portion (based on such Lender's Applicable Tranche A Percentage) of any
amounts subsequently received by the Administrative Agent from the Borrower in
respect of such Letter of Credit Disbursement.
(f) Unless the Administrative Agent shall have received notice from a
Lender prior to the date of any Borrowing, or prior to the time of any required
payment by any Lender in respect of a Letter of Credit Disbursement, that such
Lender will not make available to the Administrative Agent such Lender's portion
of such Borrowing or payment, the Administrative Agent may assume that such
Lender has made such portion available to
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the Administrative Agent on the date of such Borrowing or payment in accordance
with Section 2.02(a), and the Administrative Agent may, in reliance upon such
assumption, make available to the Borrower or the Issuing Bank, as the case may
be, on such date a corresponding amount. If and to the extent that such Lender
shall not have made such portion available to the Administrative Agent, such
Lender and the Borrower severally agree to repay to the Administrative Agent
forthwith on demand such corresponding amount together with interest thereon,
for each day from the date such amount is made available to the Borrower or the
Issuing Bank (or, if the Administrative Agent and the Issuing Bank are the same
person, from the date of such payment in respect of a Letter of Credit
Disbursement), as applicable, until the date such amount is repaid to the
Administrative Agent at, (i) in the case of the Borrower, the interest rate
applicable thereto pursuant to Section 2.06 or 2.22(g), as applicable, and (ii)
in the case of such Lender, the Federal Funds Effective Rate. If such Lender
shall repay to the Administrative Agent such corresponding amount in respect of
a Borrowing, such amount shall constitute such Lender's Loan as part of such
Borrowing for purposes of this Agreement.
(g) Notwithstanding any other provision of this Agreement, the Borrower
shall not be entitled to request any Eurodollar Borrowing if the Interest Period
requested with respect thereto would end after the Tranche A Revolving Credit
Maturity Date or the Tranche B Revolving Credit Maturity Date, as applicable.
Any Revolving Credit Borrowing which cannot be refinanced as a Eurodollar
Borrowing by reason of the preceding sentence shall be automatically converted
at the end of the Interest Period in effect for such Borrowing into an ABR
Borrowing.
(h) The Borrower may refinance all or any part of any Revolving Credit
Borrowing with a Revolving Credit Borrowing of the same or a different Type,
upon the terms and subject to the conditions and limitations set forth in this
Agreement. Any Revolving Credit Borrowing or part thereof so refinanced shall be
deemed for all purposes to be simultaneously repaid or prepaid in accordance
with Section 2.04 or 2.12, as applicable, with the proceeds of a new Revolving
Credit Borrowing and the proceeds of such new Revolving Credit Borrowing (to the
extent they do not exceed the principal amount of the Borrowing being
refinanced) shall not be paid by the Lenders to the Administrative Agent or by
the Administrative Agent to the Borrower pursuant to Section 2.02(d).
SECTION 2.03. NOTICE OF BORROWINGS. In order to request a Borrowing
(other than a Swingline Loan), the Borrower shall give the Administrative Agent
written or telecopy notice (or telephone notice promptly confirmed in writing or
by telecopy) (a) in the case of a Eurodollar Borrowing, not later than 12:00
noon, Eastern Standard Time, two Business Days before a proposed Borrowing and
(b) in the case of an ABR Borrowing, not later than 12:00 noon, Eastern Standard
Time, on the Business Day of a proposed Borrowing. Any such notice of Borrowing
shall be irrevocable, shall be substantially in the form of Exhibit J hereto,
and shall in each case refer to this Agreement and specify (i) whether the
Borrowing then being requested is to be a Eurodollar Borrowing or an ABR
Borrowing; (ii) the date of such Borrowing (which shall be a Business Day) and
the amount thereof; and (iii) if such Borrowing is to be a Eurodollar Borrowing,
the Interest Period with respect thereto. If no election as to the Type of
Borrowing is specified in any such notice, then the requested Borrowing shall be
an ABR Borrowing. If no Interest Period with respect to any Eurodollar
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Borrowing is specified in any such notice, then the Borrower shall be deemed to
have selected an Interest Period of one month's duration. If the Borrower shall
not have given notice in accordance with this Section 2.03 of its election to
refinance a Revolving Credit Borrowing prior to the end of the Interest Period
in effect for such Borrowing, then the Borrower shall (unless such Borrowing is
repaid at the end of such Interest Period) be deemed to have given notice of an
election to refinance such Borrowing with an ABR Borrowing. The Administrative
Agent shall, by 2:00 p.m. Eastern Standard Time, on the day it receives a notice
hereunder from the Borrower, advise the applicable Lenders of any notice given
pursuant to this Section 2.03 and of each Lender's portion of the requested
Borrowing.
SECTION 2.04. NOTES; REPAYMENT OF LOANS. (a) The Tranche A Revolving
Loans made by each Lender shall be evidenced by a Tranche A Revolving Credit
Note, duly executed and delivered on behalf of the Borrower, dated the Closing
Date, substantially in the form attached hereto as Exhibit A-1, with the blanks
appropriately filled, payable to the order of such Lender in a principal amount
equal to such Lender's Tranche A Revolving Credit Commitment. The outstanding
principal balance of each Tranche A Revolving Loan, as evidenced by each
applicable Tranche A Revolving Credit Note, shall be payable on the last day of
the Interest Period applicable to such Tranche A Revolving Loan and on the
Tranche A Revolving Credit Maturity Date, and shall bear interest from the date
of the first Borrowing hereunder on the outstanding principal balance thereof as
set forth in Section 2.06. Each Lender shall, and is hereby authorized by the
Borrower to, endorse on the schedule attached to each Tranche A Revolving Credit
Note delivered to such Lender (or on a continuation of such schedule attached to
such Tranche A Revolving Credit Note and made a part thereof), or otherwise to
record in such Lender's internal records, an appropriate notation evidencing the
date and amount of each applicable Loan from such Lender, each payment and
prepayment of principal of any such Loan, each payment of interest on any such
Loan and the other information provided for on such schedule; PROVIDED, THAT,
the failure of any Lender to make such a notation or any error therein shall not
affect the obligation of the Borrower to repay the Loans made by such Lender in
accordance with the terms of this Agreement and the applicable Tranche A
Revolving Credit Notes.
(b) The Tranche B Revolving Loans made by each Lender shall be
evidenced by a Tranche B Revolving Credit Note, duly executed and delivered on
behalf of the Borrower, dated the Closing Date, substantially in the form
attached hereto as Exhibit A-2, with the blanks appropriately filled, payable to
the order of such Lender in a principal amount equal to such Lender's Tranche B
Revolving Credit Commitment. The outstanding principal balance of each Tranche B
Revolving Loan, as evidenced by the applicable Tranche B Revolving Credit Note,
shall be payable on the last day of the Interest Period applicable to such
Tranche B Revolving Loan and on the Tranche B Revolving Credit Maturity Date,
and shall bear interest from the date of the first Borrowing hereunder on the
outstanding principal balance thereof as set forth in Section 2.06. Each Lender
shall, and is hereby authorized by the Borrower to, endorse on the schedule
attached to each Tranche B Revolving Credit Note delivered to such Lender (or on
a continuation of such schedule attached to such Tranche B Revolving Credit Note
and made a part thereof), or otherwise to record in such Lender's internal
records, an appropriate notation evidencing the date and amount of each
applicable Tranche B Revolving Loan from such Lender, each payment and
prepayment of principal of
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any such Loan, each payment of interest on any such Loan and the other
information provided for on such schedule; PROVIDED, THAT, the failure of any
Lender to make such a notation or any error therein shall not affect the
obligation of the Borrower to repay the Tranche B Revolving Loans made by such
Lender in accordance with the terms of this Agreement and the applicable Tranche
B Revolving Credit Notes.
(c) The Swingline Loans made by the Swingline Lender shall be evidenced
by a Swingline Note, duly executed and delivered on behalf of the Borrower,
substantially in the form attached hereto as Exhibit A-3, with the blanks
appropriately filled, payable to the order of the Swingline Lender in a
principal amount equal to the Swingline Commitment. The outstanding principal
balance of each Swingline Loan, as evidenced by the applicable Swingline Note,
shall be payable on the last day of the Interest Period applicable to such
Swingline Loan and on the Tranche A Revolving Credit Maturity Date. The
Swingline Note shall bear interest from the date of the first Borrowing
hereunder on the outstanding principal balance thereof as set forth in Section
2.06. The Swingline Lender shall, and is hereby authorized by the Borrower to,
endorse on the schedule attached to the Swingline Note (or on a continuation of
such schedule attached to the Swingline Note and made a part thereof), or
otherwise to record in the Swingline Lender's internal records, an appropriate
notation evidencing the date and amount of each applicable Swingline Loan from
the Swingline Lender, each payment and prepayment of principal of any Swingline
Loan, each payment of interest on any such Loan and the other information
provided for on such schedule; PROVIDED, THAT, the failure of the Swingline
Lender to make such a notation or any error therein shall not affect the
obligation of the Borrower to repay the Swingline Loans made by the Swingline
Lender in accordance with the terms of this Agreement and the Swingline Note.
SECTION 2.05. FEES. (a) The Borrower shall pay to the Administrative
Agent for the account of each Lender, on the last day of March, June, September
and December in each year and on the date on which the Revolving Credit
Commitment of such Lender shall expire or be terminated as provided herein, a
commitment fee (a "Commitment Fee") on the average daily unused amount of (x)
the Tranche A Revolving Credit Commitment (for purposes of this calculation
only, outstanding Swingline Borrowings in which the Swingline Lender has not
required the other Lenders to participate pursuant to Section 2.21(c), shall not
be considered as usage of their respective Tranche A Revolving Credit
Commitments, except that such Swingline Borrowings shall count as usage of the
Swingline Lender's Tranche A Revolving Credit Commitment) (as the same may be
reduced from time to time pursuant to Section 2.09) and (y) the Tranche B
Revolving Credit Commitment (as the same may be reduced from time to time
pursuant to Section 2.09), of such Lender (as applicable) during the preceding
quarter (or shorter period commencing with the Closing Date or ending with the
date on which the Tranche A Revolving Credit Commitment or Tranche B Revolving
Credit Commitment of such Lender, as the case may be, shall be terminated),
equal to (i) with respect to Tranche A Revolving Credit Commitments (A) during
any Level I Pricing Period, 0.125% per annum; (B) during any Level II Pricing
Period, 0.150% per annum; (C) during any Level III Pricing Period, 0.200% per
annum; (D) during any Level IV Pricing Period, 0.250% per annum; (E) during any
Level V Pricing Period, 0.300% per annum; and (F) during any Level VI Pricing
Period, 0.375% per annum; and (ii) with respect to Tranche B Revolving Credit
Commitments, (A) during any Level I Pricing Period, 0.080% per annum; (B) during
any Level II Pricing Period, 0.100% per annum; (C) during any Level III
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Pricing Period, 0.125% per annum; (D) during any Level IV Pricing Period, 0.150%
per annum; (E) during any Level V Pricing Period, 0.200% per annum; and (F)
during any Level VI Pricing Period, 0.250% per annum. All Commitment Fees shall
be computed on the basis of the actual number of days elapsed in a year of 360
days. The Commitment Fees due to each Lender shall commence to accrue on the
Closing Date and cease to accrue on the date on which the Revolving Credit
Commitment of such Lender shall be terminated as provided herein.
(b) The Borrower shall pay to the Administrative Agent (i) for the
account of each Tranche A Lender, on the last day of March, June, September and
December of each year and on the date on which the Tranche A Revolving Credit
Commitment of such Lender shall expire or be terminated as provided herein, a
letter of credit fee (a "LETTER OF CREDIT FEE") equal to (A) such Lender's
Applicable Tranche A Percentage of the aggregate Letter of Credit Exposure
(excluding the portion thereof attributable to unreimbursed Letter of Credit
Disbursements) existing as of the first day of the quarter then ended (or
shorter period commencing with the Closing Date or ending with the date on which
all Letters of Credit have been canceled or have expired and the Tranche A
Revolving Credit Commitments of all Tranche A Lenders shall have been
terminated) plus the face amount of each Letter of Credit issued during such
quarter (or shorter period commencing with the Closing Date or ending with the
date on which all Letters of Credit have been canceled or have expired and the
Tranche A Revolving Credit Commitments of all Tranche A Lenders shall have been
terminated) multiplied by (B) a per annum rate equal to the Applicable LIBOR
Margin in effect from time to time during such period, and (ii) for the account
of the Issuing Bank, on the last day of March, June, September and December of
each year, a fronting fee (a "FRONTING FEE") of 0.125% per annum on the sum of
(A) the aggregate Letter of Credit Exposure (excluding the portion thereof
attributable to unreimbursed Letter of Credit Disbursements) existing as of the
first day of the quarter then ended (or shorter period commencing with the date
hereof or ending with the Tranche A Revolving Credit Maturity Date) and (B) the
face amount of each Letter of Credit issued during such quarter and, with
respect to each Letter of Credit, any other customary fees of the Issuing Bank
agreed upon by the Borrower and Issuing Bank in connection with the issuance,
amendment or transfer of any Letter of Credit or any Letter of Credit
Disbursement. All Letter of Credit Fees and Fronting Fees shall be computed on
the basis of the actual number of days elapsed in a year of 360 days.
(c) The Borrower agrees to pay to the Agents, for their own accounts,
the fees set forth in the Fee Letter dated October 2, 1996 among NCMI, the
Agents and the Borrower and in the applicable provisions of the Commitment
Letter dated October 2, 1996 among such parties (together, the "FEE LETTER") in
the amounts and on the dates provided in the Fee Letter. Such fees shall be in
addition to reimbursement of the Agents' reasonable out-of-pocket expenses.
(d) All Fees shall be paid on the dates due, in immediately available
funds. Once paid, none of the Fees shall be refundable under any circumstances
(absent manifest error).
SECTION 2.06. INTEREST ON LOANS. (a) Subject to the provisions of
Section 2.07, each Revolving Loan and each Swingline Loan comprising an ABR
Borrowing shall bear
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interest for each day from the date such Loan is made until it becomes due
(computed on the basis of the actual number of days elapsed over a year of 365
or 366 days, as the case may be when determined by reference to the Prime Rate
and over a year of 360 days at all other times) at a rate per annum equal to the
Alternate Base Rate, plus the Applicable ABR Margin in effect from time to time
for such Class of Loan. So long as any ABR Borrowing is outstanding, the
Administrative Agent shall promptly notify the Borrower of any change in the
Prime Rate.
(b) Subject to the provisions of Section 2.07, each Revolving Loan
comprising a Eurodollar Borrowing shall bear interest for each day from the date
such Loan is made until it becomes due (computed on the basis of the actual
number of days elapsed over a year of 360 days) at a rate per annum equal to the
Adjusted LIBO Rate for the Interest Period in effect for such Borrowing, plus
the Applicable LIBOR Margin in effect from time to time for such Class of Loan.
(c) Each Level I Pricing Period, Level II Pricing Period, Level III
Pricing Period, Level IV Pricing Period, Level V Pricing Period or Level VI
Pricing Period (each a "Pricing Period") shall commence on (and include) the
date that is the first day of the third month following the end of each Fiscal
Quarter of the Borrower and shall terminate on the day before the beginning of
the next Pricing Period. Notwithstanding the foregoing, in the event the
Borrower has failed to deliver any Required Financial Statements when due in
accordance with Section 5.04, a Level VI Pricing Period shall be deemed to be in
effect beginning as of the first day of the third month following the end of the
Fiscal Quarter for which any Required Financial Statement was not timely
delivered and such Level VI Pricing Period shall remain effective until a Fiscal
Quarter in which Borrower has delivered the Required Financial Statements when
due in accordance with Section 5.04, and then the applicable Pricing Period as
determined pursuant hereto with reference to the Required Financial Statements
shall become effective on the date determined above.
(d) Interest on each Loan shall be payable on the Interest Payment
Dates applicable to such Loan, except as otherwise provided in this Agreement.
The applicable Alternate Base Rate or Adjusted LIBO Rate for each Interest
Period or day within an Interest Period, as the case may be, shall be determined
by the Administrative Agent in good faith, and such determination shall be
conclusive absent manifest error.
SECTION 2.07. DEFAULT INTEREST. If and for so long as any Event of
Default shall have occurred and be continuing, interest shall accrue, to the
extent permitted by applicable law, on the outstanding amount of all Obligations
during the period from (and including) the date of such Event of Default to (but
not including) the date of actual payment (after as well as before judgment) at
(a) in the case of principal of or interest on any Loan, the rate per annum
(computed on the basis of the actual number of days elapsed over a year of 365
or 366 days, as the case may be, when determined by reference to the Prime Rate
and over a year of 360 days at all other times) applicable to such Loan during
such period pursuant to Section 2.06, plus 2.00% or (b) in the case of any other
amount, a rate per annum (computed on the basis of the actual number of days
elapsed over a year of 365 or 366 days, as the case may be, when determined by
reference to the Prime Rate and over a year of 360 days at all other times)
equal to the rate applicable to ABR Loans during such period
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pursuant to Section 2.06, plus 2.00%. The Borrower shall pay all such accrued
but unpaid interest from time to time upon demand.
SECTION 2.08. ALTERNATE RATE OF INTEREST. In the event, and on each
occasion, that on the day two Business Days prior to the commencement of any
Interest Period for a Eurodollar Borrowing the Administrative Agent shall have
reasonably determined that dollar deposits in the principal amounts of the Loans
comprising such Borrowing are not generally available in the applicable
interbank market, or that the rates at which such dollar deposits are being
offered will not adequately and fairly reflect the cost to the Lenders of making
or maintaining LIBOR Loans during such Interest Period, or that reasonable means
do not exist for ascertaining the Adjusted LIBO Rate, the Administrative Agent
shall, as soon as practicable thereafter, give written or telecopy notice of
such determination to the Borrower and the Lenders. In the event of any such
determination, any request by the Borrower for a Eurodollar Borrowing pursuant
to Section 2.03 or 2.10 shall, until the Administrative Agent shall have advised
the Borrower and the Lenders that the circumstances giving rise to such notice
no longer exist, be deemed to be a request for an ABR Borrowing. Each
determination by the Administrative Agent hereunder shall be conclusive absent
manifest error.
SECTION 2.09. TERMINATION AND REDUCTION OF COMMITMENTS; EXTENSION OF
COMMITMENTS. (a) The Tranche A Revolving Credit Commitments and the Swingline
Commitment shall be automatically terminated at 5:00 p.m., Eastern Standard
Time, on (i) November 27, 1996, if the first Borrowing hereunder in accordance
with Article IV has not occurred by such date, and (ii) otherwise, the Tranche A
Revolving Credit Maturity Date.
(b) The Tranche B Revolving Credit Commitments shall be automatically
terminated at 5:00 p.m., Eastern Standard Time, on (i) November 27, 1996, if the
first Borrowing of any Class hereunder in accordance with Article IV has not
occurred by such date, and (ii) otherwise, the Tranche B Revolving Credit
Maturity Date.
(c) Upon at least five Business Days' prior irrevocable written or
telecopy notice to the Administrative Agent, the Borrower may at any time in
whole permanently terminate, or in part permanently reduce, the Revolving Credit
Commitments; PROVIDED, THAT, (i) each partial reduction of the Revolving Credit
Commitments shall be in a minimum aggregate principal amount which is an
integral multiple of $500,000 and not less than $1,000,000, and (ii) the
aggregate of Tranche A Revolving Credit Commitment shall not be reduced to an
amount that is less than the aggregate Letter of Credit Exposure at that time.
(d) On the date of each mandatory payment or prepayment of Loans (or
provision of cash collateral in respect of Letters of Credit) in accordance with
Sections 2.11(c) or (d), the Revolving Credit Commitments shall be permanently
reduced by an aggregate amount equal to the amount of such required payment or
prepayment (or provision of cash collateral).
(e) Each reduction in the Revolving Credit Commitments shall be made
ratably among the Lenders in accordance with their respective Revolving Credit
Commitments and
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each such reduction shall proportionately reduce the Swingline Commitment. The
Borrower shall pay to the Administrative Agent for the account of the Lenders,
on the date of each termination or reduction of the Revolving Credit
Commitments, the Commitment Fees on the amount of the Revolving Credit
Commitments so terminated or reduced accrued to the date of such termination or
reduction.
(f) The Borrower shall have the option to request an extension of the
Tranche B Revolving Credit Maturity Date by 364 days on an annual basis;
provided, that, in no event shall the Tranche B Revolving Credit Maturity Date
be extended beyond the Tranche A Revolving Credit Maturity Date. In the event
the Borrower desires to extend the maturity of the Tranche B Revolving Credit
Facility, the Borrower shall give written notice of such request to the
Administrative Agent not less than 90 days before the then scheduled termination
of the Tranche B Revolving Credit Facility. The Administrative Agent shall give
the Lenders prompt written notice of the receipt of any such request. In the
event the Administrative Agent obtains the written consent of at least 66.67% of
the Tranche B Revolving Credit Commitments, but not the unanimous consent of all
Tranche B Lenders, within 30 days after the date of the Borrower's request for
such extension (any Lender failing to give consent being referred to herein as a
"DISSENTING LENDER"), the Administrative Agent shall so notify the Borrower and
the Borrower shall have the right to replace any Dissenting Lender by causing
such Lender to transfer and assign all its interests, rights and obligations
under this Agreement to another financial institution pursuant to Section 2.20;
PROVIDED, THAT, any transfer or assignment must occur prior to 30 days before
the scheduled termination of the Tranche B Revolving Credit Facility and the
transferee must be willing to consent to the requested extension. Any request to
extend the Tranche B Revolving Credit Facility (in whole or in part as provided
below) shall be granted if, and only if, (i) no Default or Event of Default
exists (either at the time of Borrower's request for extension, or any time
subsequent thereto and prior to the then scheduled termination of the Tranche B
Revolving Credit Facility) and (ii) the Administrative Agent shall have received
the written consent of Lenders holding at least 66.67% of the Tranche B
Revolving Credit Commitments within 30 days of the Borrower's written request;
otherwise, the Tranche B Revolving Credit Maturity Date shall not be extended.
If the conditions to an extension of the Tranche B Revolving Credit Maturity
Date as set forth in clauses (i) and (ii) above are met, then (I) the Tranche B
Revolving Credit Maturity Date shall be extended as to all Tranche B Revolving
Credit Commitments of Tranche B Lenders that consented to such extension and all
Lenders that acquired Tranche B Revolving Credit Commitments of Dissenting
Lenders pursuant to the procedures set forth in this Section 2.09(f), and (II)
the Tranche B Revolving Credit Commitments shall be permanently reduced by an
amount equal to all Tranche B Revolving Credit Commitments of the Dissenting
Lenders not assigned to other financial institutions pursuant to this Section
2.09(f). It is understood and agreed that no consenting Lender shall be required
to increase its Tranche B Revolving Credit Commitment under any circumstances.
Notwithstanding the foregoing, it is further understood and agreed that at no
time shall the Tranche B Lenders be obligated to extend the Tranche B Revolving
Credit Maturity Date, unless at least an aggregate total of $33,335,000 in total
aggregate Tranche B Revolving Credit Commitments are to be extended pursuant
hereto. Each Lender shall respond in writing to the Administrative Agent within
30 days of Borrower's written request for an extension.
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SECTION 2.10. CONVERSION AND CONTINUATION OPTIONS. Except with respect
to Borrowings comprised of Swingline Loans, as to which this Section 2.10 shall
not apply, the Borrower shall have the right at any time upon prior irrevocable
notice to the Administrative Agent (a) not later than 12:00 noon, Eastern
Standard Time, on the day of conversion, to convert any Eurodollar Borrowing
into an ABR Borrowing, (b) not later than 12:00 noon, Eastern Standard Time, two
Business Days prior to conversion or continuation, to convert any ABR Borrowing
into a Eurodollar Borrowing or to continue any Eurodollar Borrowing as a
Eurodollar Borrowing for an additional Interest Period and (c) not later than
12:00 noon, Eastern Standard Time, two Business Days prior to conversion, to
convert the Interest Period with respect to any Eurodollar Borrowing to another
permissible Interest Period, subject in each case to the following:
(i) each conversion or continuation shall be made pro rata
among the Lenders in accordance with the respective principal amounts
of the Loans comprising the converted or continued Borrowing;
(ii) the aggregate principal amount of such Borrowing
converted into or continued as (A) a Eurodollar Borrowing, shall be an
integral multiple of $100,000 and not less than $500,000 or (B) an ABR
Borrowing, shall be the lesser of (I) the remaining outstanding
principal amount of such Borrowing and (II) an integral multiple of
$100,000;
(iii) each conversion or continuation shall be effected by
each Lender by applying the proceeds of the new Loan of such Lender
resulting from such conversion or continuation to the Loan (or portion
thereof) of such Lender being converted or continued;
(iv) accrued interest on a LIBOR Loan (or portion thereof)
being converted or continued shall be paid by the Borrower at the time
of conversion;
(v) if any Eurodollar Borrowing is converted or continued at a
time other than the end of the Interest Period applicable thereto, the
Borrower shall pay, upon demand, any amounts due to the Lenders
pursuant to Section 2.15;
(vi) any portion of a Borrowing maturing or required to be
repaid in less than one month may not be converted into or continued as
a Eurodollar Borrowing; and
(vii) any portion of a Eurodollar Borrowing which cannot be
converted into or continued as a Eurodollar Borrowing by reason of
clause (vi) above shall be automatically converted at the end of the
Interest Period in effect for such Borrowing into an ABR Borrowing.
Each notice pursuant to this Section 2.10 shall be irrevocable, shall
be in substantially the form of Exhibit J hereto and shall in each case refer to
this Agreement and specify (I) the principal amount, the Class, the Type and, in
the case of a Eurodollar Borrowing, the Interest Period of the Borrowing that
the Borrower requests be converted or continued,
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(II) whether such Borrowing is to be converted to or continued as a Eurodollar
Borrowing or an ABR Borrowing, (III) if such notice requests a conversion, the
date of such conversion (which shall be a Business Day) and (IV) if such
Borrowing is to be converted to or continued as a Eurodollar Borrowing, the
Interest Period with respect thereto. If no Interest Period is specified in any
such notice with respect to any conversion to or continuation as a Eurodollar
Borrowing, the Borrower shall be deemed to have selected an Interest Period of
one month's duration. The Administrative Agent shall advise the other Lenders of
any notice given pursuant to this Section 2.10 and of each Lender's portion of
any converted or continued Borrowing. If the Borrower shall not have given
notice in accordance with this Section 2.10 to continue any Borrowing into a
subsequent Interest Period (and shall not otherwise have given notice in
accordance with this Section 2.10 to convert such Borrowing), such Borrowing
shall, at the end of the Interest Period applicable thereto (unless repaid
pursuant to the terms hereof), automatically be continued into a new Interest
Period as an ABR Borrowing.
SECTION 2.11. MANDATORY REPAYMENTS AND PREPAYMENTS.
(a) On the Tranche A Maturity Date, all Tranche A Revolving Credit
Borrowings and all Swingline Borrowings shall be due and payable to the extent
not previously paid and all Letter of Credit Exposure (if any) shall be
terminated or cash collateralized in a manner satisfactory to the Agents.
(b) On the Tranche B Maturity Date, all Tranche B Revolving Credit
Borrowings shall be due and payable to the extent not previously paid.
(c) In the event and on each occasion that a Prepayment Event occurs,
the Borrower shall give to the Administrative Agent written or telecopy notice
of such event, the amount of Net Cash Proceeds expected to be received therefrom
and the expected schedule for receiving such proceeds. On the date of receipt by
the Borrower or any Subsidiary of Net Cash Proceeds from such Prepayment Event,
the Borrower shall prepay Loans in an aggregate principal amount equal to the
lesser of (x) 100% of such Net Cash Proceeds received and (y) the amount of Net
Cash Proceeds required to reduce the Commitments (as contemplated by Section
2.09(d)) to, but not below, $100,000,000; PROVIDED, THAT in the case of an Asset
Sale, (i) no such prepayment shall be required unless the aggregate amount of
Net Cash Proceeds received from such Asset Sale and all other Asset Sales
occurring during the same Fiscal Year of the Borrower equals or exceeds
$1,000,000 and (ii) any such receipt of Net Cash Proceeds that would otherwise
result in prepayment of a lesser amount under this subparagraph (c) shall
cumulate until the aggregate amount of such Net Cash Proceeds received and not
yet applied equals or exceeds $1,000,000, at which time such prepayment shall be
made.
(d) In the event and on each occasion that the sum of (i) the aggregate
outstanding principal amount of Tranche A Revolving Credit Loans, (ii) the
aggregate Letter of Credit Exposure, and (iii) the aggregate Swingline Exposure
(collectively, the "TRANCHE A EXPOSURE") exceeds the aggregate amount of the
Tranche A Revolving Credit Commitments at such time, the Borrower shall
immediately prepay Tranche A Revolving Loans such that the aggregate Tranche A
Exposure is equal to or less than the aggregate Tranche A
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Revolving Credit Commitments. Similarly, in the event and on each occasion that
the aggregate outstanding principal amount of Tranche B Revolving Loans exceeds
the aggregate amount of the Tranche B Revolving Credit Commitments at that time,
the Borrower shall immediately prepay Tranche B Revolving Loans such that the
aggregate outstanding Tranche B Revolving Loans are equal to or less than the
aggregate Tranche B Revolving Credit Commitments.
(e) All mandatory prepayments under Section 2.11(c) or (d) shall be
applied (to the extent applicable) (i) FIRST, to reduce the outstanding
principal amount of the Tranche A Revolving Credit Loans (ii) SECOND, to reduce
the Tranche B Revolving Loans and (iii) to the extent that the remaining amount
of such prepayment is greater than the aggregate principal amount of outstanding
Loans, to provide cash collateral in respect of the Letters of Credit (and
thereupon such cash shall be deemed to reduce the Letter of Credit Exposure for
purposes of this Section 2.11(e)). Subject to the foregoing provisions, any
mandatory prepayment of Loans of any Class pursuant to Section 2.11(c) or (d)
shall be applied to prepay all ABR Loans of such Class before any LIBOR Loans of
such Class are prepaid.
(f) Each payment of Borrowings pursuant to this Section 2.11 (except
partial prepayments of ABR Borrowings) shall be accompanied by accrued interest
on the principal amount paid to but excluding the date of payment. All payments
under this Section 2.11 shall be subject to Section 2.15, but otherwise shall be
without premium or penalty.
SECTION 2.12. OPTIONAL PREPAYMENTS. (a) Subject to Section 2.12(b), the
Borrower shall have the right at any time and from time to time to prepay any
LIBOR Loans, in whole or in part, upon giving prior written or telecopy notice
(or telephone notice promptly confirmed by written or telecopy notice) to the
Administrative Agent, at least three Business Days prior to the date of
prepayment; PROVIDED, THAT each partial prepayment of LIBOR Loans shall be in an
amount which is an integral multiple of $500,000 and not less than $1,000,000
and a partial prepayment of a Eurodollar Borrowing under this Section 2.12(a)
shall not be made that would result in the remaining aggregate outstanding
principal amount thereof being less than $500,000. Each notice of prepayment
shall specify the prepayment date, the Class, the Type, the Interest Period of
the Borrowing to be prepaid and the principal amount thereof to be prepaid,
shall be irrevocable and shall commit the Borrower to prepay such Borrowing by
the amount stated therein on the date stated therein.
(b) All prepayments under this Section 2.12 shall be subject to Section
2.15 but otherwise shall be without premium or penalty. All prepayments under
this Section 2.12 shall be accompanied by accrued interest on the principal
amount being prepaid to, but excluding, the date of payment.
SECTION 2.13. RESERVE REQUIREMENTS; CHANGE IN CIRCUMSTANCES. (a)
Notwithstanding any other provision of this Agreement, if after the date of this
Agreement any change in applicable law or regulation or in the interpretation or
administration thereof by any Governmental Authority charged with the
interpretation or administration thereof (whether or not having the force of
law) shall change the basis of taxation of payments to any Lender or the Issuing
Bank of the principal of or interest on any LIBOR Loan made by such Lender or
any Fees or other amounts payable hereunder (other
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than changes in respect of taxes imposed on the overall net income of such
Lender or the Issuing Bank by the jurisdiction in which such Lender or the
Issuing Bank has its principal office or by any state of the United States or by
any political subdivision or taxing authority therein), or shall impose, modify
or deem applicable any reserve, special deposit or similar requirement against
assets of, deposits with or for the account of or credit extended by any Lender
or the Issuing Bank (except any such reserve requirement that is reflected in
the Adjusted LIBO Rate) or shall impose on such Lender or the Issuing Bank or
the applicable interbank market any other condition affecting this Agreement or
LIBOR Loans made by such Lender or any Letter of Credit or participation
therein, and the result of any of the foregoing shall be to increase the cost to
such Lender or the Issuing Bank of making or maintaining any LIBOR Loan or
increase the cost to any Lender of issuing or maintaining any Letter of Credit
or purchasing or maintaining a participation therein or to reduce the amount of
any sum received or receivable by such Lender (or Affiliate or parent thereof
which fairly allocates any such increase to the Lender) or the Issuing Bank
hereunder (whether of principal, interest or otherwise) by an amount deemed by
such Lender or the Issuing Bank to be material, then the Borrower will pay to
such Lender or the Issuing Bank, as the case may be, upon demand such additional
amount or amounts as will compensate such Lender or the Issuing Bank, as the
case may be, for such additional costs actually incurred or reduction suffered.
(b) If any Lender or the Issuing Bank shall have determined that the
adoption after the date hereof of any law, rule, regulation, agreement or
guideline regarding capital adequacy, or any change after the date hereof in any
such law, rule, regulation, agreement or guideline or in the interpretation or
administration thereof by any Governmental Authority (including the National
Association of Insurance Commissioners) charged with the interpretation or
administration thereof, or compliance by any Lender (or any lending office of
such Lender) or the Issuing Bank or any Lender's or the Issuing Bank's holding
company with any request or directive regarding capital adequacy (whether or not
having the force of law) of any Governmental Authority has or would have the
effect of reducing the rate of return on such Lender's or the Issuing Bank's
capital or on the capital of such Lender's or the Issuing Bank's holding
company, if any, as a consequence of this Agreement or the Loans made or
participations in Letters of Credit purchased by such Lender pursuant hereto or
the Letters of Credit issued by the Issuing Bank pursuant hereto to a level
below that which such Lender or the Issuing Bank or such Lender's or the Issuing
Bank's holding company could have achieved but for such applicability, adoption,
change or compliance (taking into consideration such Lender's or the Issuing
Bank's policies and the policies of such Lender's or the Issuing Bank's holding
company with respect to capital adequacy) by an amount deemed by such Lender or
the Issuing Bank to be material, then, from time to time the Borrower shall pay
to such Lender or the Issuing Bank, as the case may be, such additional amount
or amounts as will compensate such Lender or the Issuing Bank or such Lender's
or the Issuing Bank's holding company for any such reduction suffered.
(c) A certificate of a Lender or the Issuing Bank setting forth the
circumstances requiring the payment of compensation, the calculations with
respect thereto, and the amount or amounts necessary to compensate such Lender
or the Issuing Bank or its holding company, as applicable, as specified in
paragraph (a) or (b) above shall be delivered to the Borrower and shall be
conclusive absent manifest error. The Borrower shall pay such
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Lender or the Issuing Bank the amount shown as due on any such certificate
delivered by it within 10 days after its receipt of the same.
(d) Failure or delay on the part of any Lender or the Issuing Bank to
demand compensation for any increased costs or reduction in amounts received or
receivable or reduction in return on capital shall not constitute a waiver of
such Lender's or the Issuing Bank's right to demand such compensation. The
protection of this Section 2.13 shall be available to each Lender and the
Issuing Bank regardless of any possible contention of the invalidity or
inapplicability of the law, rule, regulation, agreement, guideline or other
change or condition that shall have occurred or been imposed. In the event any
Lender or the Issuing Bank ever receives a refund from any applicable
Governmental Authority of any amount paid by the Borrower on account of the
provisions of this Section 2.13, the applicable Lender or Issuing Bank, as the
case may be, shall repay those refunded amounts to the Borrower.
SECTION 2.14. CHANGE IN LEGALITY. (a) Notwithstanding any other
provision of this Agreement, if after the date hereof, any change in any law or
regulation or in the interpretation thereof by any Governmental Authority
charged with the administration or interpretation thereof shall make it unlawful
for any Lender to make or maintain any LIBOR Loan or to give effect to its
obligations as contemplated hereby with respect to any LIBOR Loan, then, by
written notice to the Borrower and to the Administrative Agent, such Lender may:
(i) declare that LIBOR Loans will not thereafter (for the
duration of such unlawfulness) be made by such Lender hereunder (or be
continued for additional Interest Periods and ABR Loans will not
thereafter (for such duration) be converted into LIBOR Loans),
whereupon any request for a Eurodollar Borrowing (or to convert an ABR
Borrowing to a Eurodollar Borrowing or to continue a Eurodollar
Borrowing for an additional Interest Period) shall, as to such Lender
only, be deemed a request for an ABR Loan (or a request to continue an
ABR Loan as such for an additional Interest Period or to convert a
LIBOR Loan into an ABR Loan, as the case may be), unless such
declaration shall be subsequently withdrawn; and
(ii) require that all outstanding LIBOR Loans made by it be
converted to ABR Loans, in which event all such LIBOR Loans shall be
automatically converted to ABR Loans as of the effective date of such
notice as provided in paragraph (b) below.
In the event any Lender shall exercise its rights under (i) or (ii) above, all
payments and prepayments of principal that would otherwise have been applied to
repay the LIBOR Loans that would have been made by such Lender or the converted
LIBOR Loans of such Lender shall instead be applied to repay the ABR Loans made
by such Lender in lieu of, or resulting from the conversion of, such LIBOR
Loans.
(b) For purposes of this Section 2.14, a notice to the Borrower by any
Lender shall be effective as to each LIBOR Loan made by such Lender, if lawful,
on the last day of
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the Interest Period currently applicable to such LIBOR Loan and in all other
cases such notice shall be effective on the date of receipt by the Borrower.
SECTION 2.15. INDEMNITY. The Borrower shall indemnify each Lender
against any loss or expense that such Lender may sustain or incur as a
consequence of (a) any event, other than a default by the Agents or such Lender
in the performance of its obligations hereunder, which results in (i) such
Lender receiving or being deemed to receive any amount on account of the
principal of any LIBOR Loan prior to the end of the Interest Period in effect
therefor, (ii) the conversion of any LIBOR Loan to a Loan of another Type, or
the conversion of the Interest Period with respect to any LIBOR Loan, in each
case other than on the last day of the Interest Period in effect therefor, (iii)
any LIBOR Loan to be made by such Lender (including any LIBOR Loan to be made
pursuant to a conversion or continuation under Section 2.10) not being made
after notice of such Loan shall have been given by the Borrower hereunder (any
of the events referred to in this clause (a) being called a "BREAKAGE EVENT") or
(b) any default by the Borrower in the making of any payment or prepayment
required to be made hereunder. In the case of any Breakage Event, such loss
shall include an amount equal to the excess, as reasonably determined by such
Lender, of (i) its cost of obtaining funds for the LIBOR Loan that is the
subject of such Breakage Event for the period from the date of such Breakage
Event to the last day of the Interest Period in effect (or that would have been
in effect) for such Loan over (ii) the amount of interest likely to be realized
by such Lender in redeploying the funds released or not utilized by reason of
such Breakage Event for such period. A certificate of any Lender setting forth
any amount or amounts which such Lender is entitled to receive pursuant to this
Section 2.15 shall be delivered to the Borrower and shall be conclusive absent
manifest error. The Borrower shall pay each Lender the amount shown as due on
any such certificate delivered by it within 10 days after its receipt of the
same.
SECTION 2.16. PRO RATA TREATMENT. Except as required under Section 2.14
and as provided in this Section 2.16 with respect to Swingline Loans, each
Borrowing, each payment or prepayment of principal of any Borrowing, each
payment of interest on the Loans, each payment of the Commitment Fees, each
reduction of the Revolving Credit Commitments and each refinancing of any
Borrowing with, conversion of any Borrowing to, or continuation of any Borrowing
as, a Borrowing of any Type shall be allocated pro rata among the Lenders in
accordance with their respective applicable Commitments (or, if such Commitments
shall have expired or been terminated, in accordance with the sum of (a) the
respective principal amounts of their applicable outstanding Loans and (b) in
the case of the Tranche A Revolving Credit Commitments, the respective amounts
of their Letter of Credit Exposure). For purposes of determining the available
Tranche A Revolving Credit Commitments of the Lenders at any time, each
outstanding Swingline Loan shall be deemed to have utilized the Tranche A
Revolving Credit Commitments of the Lenders (including those Lenders which shall
not have made Swingline Loans) pro rata in accordance with such respective
Tranche A Revolving Credit Commitments. Each Lender agrees that in computing
such Lender's portion of any Borrowing to be made hereunder, the Administrative
Agent may, in its discretion, round each Lender's percentage of such Borrowing
to the next higher or lower whole dollar amount.
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SECTION 2.17. SHARING OF SETOFFS. Each Lender agrees that if it shall,
through the exercise of a right of banker's lien, setoff or counterclaim against
the Borrower, or pursuant to a secured claim under Section 506 of Title 11 of
the United States Code or other security or interest arising from, or in lieu
of, such secured claim, received by such Lender under any applicable bankruptcy,
insolvency or other similar law or otherwise or by any other means, obtain
payment (voluntary or involuntary) in respect of any Loan or Loans as a result
of which the unpaid principal portion of its Loans of any Class shall be
proportionately less than the unpaid principal portion of the Loans of such
Class of any other Lender, it shall be deemed simultaneously to have purchased
from such other Lender at face value, and shall promptly pay to such other
Lender the purchase price for, a participation in such Loans of such other
Lender, so that the aggregate unpaid principal amount of the Loans and
participations in Loans of any Class held by each Lender shall be in the same
proportion to the aggregate unpaid principal amount of all Loans of such Class
then outstanding as the principal amount of its Loans of such Class prior to
such exercise of banker's lien, setoff or counterclaim or other event was to the
principal amount of all Loans of such Class outstanding prior to such exercise
of banker's lien, setoff or counterclaim or other event; PROVIDED, HOWEVER,
that, if any such purchase or purchases or adjustments shall be made pursuant to
this Section 2.17 and the payment giving rise thereto shall thereafter be
recovered, such purchase or purchases or adjustments shall be rescinded to the
extent of such recovery and the purchase price or prices or adjustment restored
without interest. For purposes of this Section 2.17, the Tranche A Revolving
Loans of any Tranche A Lender shall include such Tranche A Lender's Letter of
Credit Exposure. The Borrower expressly consents to the foregoing arrangements
and agrees that any Lender holding a participation in a Loan deemed to have been
so purchased may exercise any and all rights of banker's lien, setoff or
counterclaim with respect to any and all moneys owing by the Borrower to such
Lender by reason thereof as fully as if such Lender had made a Loan directly to
the Borrower in the amount of such interest.
SECTION 2.18. PAYMENTS. (a) Unless expressly provided otherwise herein,
the Borrower shall make each payment (including principal of or interest on any
Borrowing or any Fees or other amounts) hereunder or under any other Loan
Document without setoff, defense or counterclaim not later than 12:00 noon,
Eastern Standard Time, on the date when due in dollars to the Administrative
Agent at its offices in Dayton, Ohio, in immediately available funds. Any such
payment received after such time on any date shall be deemed made on the next
Business Day.
(b) Whenever any payment (including principal of or interest on any
Borrowing or any Fees or other amounts) hereunder or under any other Loan
Document shall become due, or otherwise would occur, on a day that is not a
Business Day, such payment may be made on the next succeeding Business Day, and
such extension of time shall in such case be included in the computation of
interest or Fees, if applicable.
SECTION 2.19. TAXES. (a) Any and all payments by or on behalf of the
Borrower or any Subsidiary hereunder and under any other Loan Document shall be
made, in accordance with Section 2.18, free and clear of and without deduction
for any and all current or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, EXCLUDING (i) income
taxes or branch profit taxes imposed on the net income
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of any Agent, any Lender or the Issuing Bank (or any transferee or assignee
thereof, including a participation holder (any such entity a "TRANSFEREE")) and
(ii) franchise taxes imposed on the net income of any Agent, any Lender or the
Issuing Bank (or Transferee), in each case by the jurisdiction under the laws of
which any Agent, such Lender or the Issuing Bank (or Transferee) is organized or
any political subdivision thereof or the jurisdiction in which such Lender or
Transferee has its applicable lending office (all such nonexcluded taxes,
levies, imposts, deductions, charges, withholdings and liabilities, collectively
or individually, being called "TAXES" and all such excluded taxes, levies,
imposts, deductions, charges, withholdings and liabilities being called
"EXCLUDED TAXES"). Subject to the provisions of Section 2.19(f) if the Borrower
or any Subsidiary shall be required to deduct any Taxes from or in respect of
any sum payable hereunder or under any other Loan Document to any Lender or the
Issuing Bank (or any Transferee) or either Agent, (A) the sum payable shall be
increased by the amount (an "ADDITIONAL AMOUNT") necessary so that after making
all required deductions (including deductions applicable to additional sums
payable under this Section 2.19 but excluding Excluded Taxes) such Lender or the
Issuing Bank (or Transferee) or Agent, as the case may be, shall receive an
amount equal to the sum it would have received had no such deductions been made,
(B) the Borrower or such Subsidiary shall make such deductions and (C) the
Borrower or such Subsidiary shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.
(b) In addition, the Borrower agrees to pay to the relevant
Governmental Authority in accordance with applicable law, any current or future
stamp or documentary taxes or any other excise or property taxes, charges or
similar levies (including mortgage recording taxes and similar fees) that arise
from any payment made hereunder or under any other Loan Document or from the
execution, delivery or registration of, or otherwise with respect to, this
Agreement or any other Loan Document ("OTHER TAXES").
(c) The Borrower will indemnify each Lender (or Transferee), each Agent
and the Issuing Bank (or Transferee) for the full amount of Taxes and Other
Taxes paid by such Lender (or Transferee) or Agent or the Issuing Bank, as the
case may be, and any liability (excluding Excluded Taxes, but including
penalties, interest and expenses (including reasonable attorneys' fees and
expenses)) arising therefrom or with respect thereto, whether or not such Taxes
or Other Taxes were correctly or legally asserted by the relevant Governmental
Authority. A certificate as to the amount of such payment or liability and the
method of computation thereof prepared by the Administrative Agent, the
Syndication Agent, a Lender or the Issuing Bank (or Transferee) or any Agent on
its behalf, absent manifest error, shall be final, conclusive and binding for
all purposes. Such indemnification shall be made within 30 days after the date
any Agent, any Lender or the Issuing Bank (or Transferee), as the case may be,
makes written demand therefor and provides the Borrower with the certificate
described above.
(d) If any Lender (or Transferee) or Agent shall become aware that it
is entitled to claim a refund in respect of Taxes or Other Taxes as to which it
has been indemnified by the Borrower, or with respect to which the Borrower has
paid additional amounts, pursuant to this Section 2.19, it shall promptly notify
the Borrower of the availability of such refund claim and shall, within 30 days
after receipt of a request by the Borrower, make a claim to
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such Governmental Authority for such refund at the Borrower's expense. If any
Lender (or Transferee) or Agent receives a refund (including pursuant to a claim
for refund made pursuant to the preceding sentence) in respect of any Taxes or
Other Taxes as to which it has been indemnified by the Borrower, or with respect
to which the Borrower has paid additional amounts, pursuant to this Section
2.19, it shall within 30 days from the date of such receipt, so long as no Event
of Default has occurred and is continuing, pay over such refund to the Borrower
(but only to the extent of indemnity payments made, or additional amounts paid,
by the Borrower under this Section 2.19 with respect to the Taxes or Other Taxes
giving rise to such refund), net of all out-of-pocket expenses of such Lender
(or Transferee) or Agent and without interest (other than interest paid by the
relevant Governmental Authority with respect to such refund); PROVIDED, HOWEVER,
that the Borrower, upon the request of such Lender (or Transferee) or Agent,
agrees to repay the amount paid over to the Borrower (plus penalties, interest
or other charges) to such Lender (or Transferee) or Agent in the event such
Lender (or Transferee) or Agent is required to repay such refund to such
Governmental Authority.
(e) As soon as practicable after the date of any payment of Taxes or
Other Taxes by the Borrower or any Subsidiary to the relevant Governmental
Authority, the Borrower or such Subsidiary will deliver to the Administrative
Agent, at its address referred to in Section 9.01, the original or a certified
copy of a receipt issued by such Governmental Authority evidencing payment
thereof.
(f) Each Lender (or Transferee) that is organized under the laws of a
jurisdiction other than the United States, any State thereof or the District of
Columbia (a "NON-U.S. LENDER") shall deliver to the Borrower and the
Administrative Agent two copies of (i) either United States Internal Revenue
Service Form 1001 or Form 4224, or, in the case of a Non-U.S. Lender claiming
exemption from U.S. Federal withholding tax under Section 871(h) or 881(c) of
the Code with respect to payments of "portfolio interest", a Form W-8, or any
subsequent versions thereof or successors thereto (and, if such Non-U.S. Lender
delivers a Form W-8, a certificate representing that such Non-U.S. Lender is not
a bank for purposes of Section 881(c) of the Code, is not a 10-percent
shareholder (within the meaning of Section 871(h)(3)(B) of the Code) of the
Borrower and is not a controlled foreign corporation related to the Borrower
(within the meaning of Section 864(d)(4) of the Code)), properly completed and
duly executed by such Non-U.S. Lender claiming complete exemption from, or
reduced rate of, U.S. Federal withholding tax on payments by the Borrower under
this Agreement and the other Loan Documents and (ii) an Internal Revenue Service
Form W-8 or W-9 entitling such Non-U.S. Lender to receive a complete exemption
from United States backup withholding tax. Such forms shall be delivered by each
Non-U.S. Lender on or before the date it becomes a party to this Agreement (or,
in the case of a Transferee that is a participation holder, on or before the
date such participation holder becomes a Transferee hereunder) and on or before
the date, if any, such Non-U.S. Lender changes its applicable lending office by
designating a different lending office (a "NEW LENDING OFFICE"). In addition,
each Non-U.S. Lender shall deliver such forms promptly upon the obsolescence or
invalidity of any form previously delivered by such Non-U.S. Lender. If a
Non-U.S. Lender who has delivered the forms referred to above on the date it
becomes a party to this Agreement (or, in the case of a Transferee, on the date
that it becomes a Transferee hereunder) determines that it is unable
subsequently to submit to the Borrower any such
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form, or that it is required to withdraw or cancel any such form, such Non-U.S.
Lender shall promptly notify the Borrower of such fact. Notwithstanding any
other provision of this Section 2.19(g), a Non-U.S. Lender shall not be required
to deliver any form pursuant to this Section 2.19(g) that such Non-U.S. Lender
is not legally able to deliver.
(g) The Borrower shall not be required to indemnify any Non-U.S.
Lender, or to pay any additional amounts to any Non-U.S. Lender, in respect of
United States Federal withholding tax pursuant to paragraph (a) or (c) above to
the extent that (i) the obligation to pay such additional amounts would not have
arisen but for a failure by such Non-U.S. Lender to comply with Section 2.19(f)
or (ii) the obligation to withhold amounts with respect to United States Federal
withholding tax existed on the date such Non-U.S. Lender become a party to this
Agreement (or, in the case of a Transferee that is a participation holder, on
the date such participation holder became a Transferee hereunder) or, with
respect to payments to a New Lending Office, the date such Non-U.S. Lender
designated such New Lending Office with respect to a Loan; PROVIDED, HOWEVER,
that this clause (ii) shall not apply (A) to any Transferee or New Lending
Office that becomes a Transferee or New Lending Office as a result of an
assignment, participation, transfer or designation made at the request of the
Borrower and (B) to the extent the indemnity payment or additional amounts any
Transferee, or any Lender (or Transferee) acting through a New Lending Office,
would be entitled to receive (without regard to this clause (ii)) do not exceed
the indemnity payment or additional amounts that the person making the
assignment, participation or transfer to such Transferee, or Lender (or
Transferee) making the designation of such New Lending Office, would have been
entitled to receive in the absence of such assignment, participation, transfer
or designation or (ii) the obligation to pay such additional amounts would not
have arisen but for a failure by such Non-U.S. Lender to comply with the
provisions of paragraph (f) above.
(h) Nothing contained in this Section 2.19 shall require any Lender or
the Issuing Bank (or Transferee) or any Agent to make available any of its tax
returns (or any other information that it deems to be confidential or
proprietary).
(i) The provisions of this Section 2.19 shall remain operative and in
full force and effect regardless of the expiration of the term of this
Agreement, the consummation of the transactions contemplated hereby, the
repayment of any of the Loans, the invalidity or unenforceability of any term or
provision of this Agreement or any other Loan Document, or any investigation
made by or on behalf of any Agent or any Lender.
SECTION 2.20. ASSIGNMENT OF COMMITMENTS UNDER CERTAIN CIRCUMSTANCES;
DUTY TO MITIGATE. (a) In the event (i) any Lender or the Issuing Bank delivers a
certificate requesting compensation pursuant to Section 2.13, (ii) any Lender or
the Issuing Bank delivers a notice described in Section 2.14, (iii) the Borrower
is required to pay any additional amount to any Lender or the Issuing Bank or
any Governmental Authority on account of any Lender or the Issuing Bank pursuant
to Section 2.19, or (iv) any Lender elects not to consent to an extension of the
Tranche B Revolving Credit Facility upon the Borrower's request for such an
extension as provided in Section 2.09(f), the Borrower may, at its sole expense
and effort (including with respect to the processing and recordation fee
referred to in Section 9.04(b)), upon notice to such Lender, Dissenting Lender
or the Issuing Bank and the Agents, as the case may be, require such Lender,
Dissenting Lender or the
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Issuing Bank, as applicable, to transfer and assign, without recourse (in
accordance with and subject to the restrictions contained in Section 9.04), all
of its interests, rights and obligations under this Agreement to an assignee
reasonably acceptable to the Agents that shall assume such assigned obligations
(which assignee may be another Lender, if a Lender accepts such assignment),
PROVIDED, THAT (A) such assignment shall not conflict with any law, rule or
regulation or order of any court or other Governmental Authority having
jurisdiction, (B) the Borrower shall have received the prior written consent of
the Agents (and, if a Tranche A Revolving Credit Commitment is being assigned,
of the Issuing Bank and the Swingline Lender), which consent shall not
unreasonably be withheld, (C) no Event of Default shall have occurred and be
continuing and (D) the Borrower or such assignee shall have paid to the affected
Lender or the Issuing Bank in immediately available funds an amount equal to the
sum of 100% of the principal of and interest accrued to the date of such payment
on the outstanding Loans or Letter of Credit Disbursements of such Lender or the
Issuing Bank, respectively, plus all Fees and other amounts accrued for the
account of such Lender or the Issuing Bank hereunder (including any amounts
under Section 2.13 and Section 2.15); PROVIDED, FURTHER, that if prior to any
such assignment the circumstances or event that resulted in such Lender's notice
or certificate under Section 2.13 or 2.14 or demand for additional amounts under
Section 2.19, as the case may be, shall cease to exist or become inapplicable
for any reason or if such Lender shall waive its rights in respect of such
circumstances or event under Section 2.13, 2.14 or 2.19, as the case may be,
then such Lender shall not thereafter be required to make any such assignment
hereunder.
(b) If (i) any Lender or the Issuing Bank shall request compensation
under Section 2.13, (ii) any Lender or the Issuing Bank delivers a notice
described in Section 2.14 or (iii) the Borrower is required to pay any
additional amount to any Lender or the Issuing Bank or any Governmental
Authority on account of any Lender or the Issuing Bank, pursuant to Section
2.19, then such Lender or the Issuing Bank shall use reasonable efforts (which
shall not require such Lender or the Issuing Bank to incur an unreimbursed loss
or unreimbursed cost or expense or otherwise take any action inconsistent with
its internal policies or legal or regulatory restrictions or suffer any
disadvantage or burden deemed by it to be significant) (A) to file any
certificate or document reasonably requested in writing by the Borrower or (B)
to assign its rights and delegate and transfer its obligations hereunder to
another of its offices, branches or affiliates, if such filing or assignment
would reduce its claims for compensation under Section 2.13 or enable it to
withdraw its notice pursuant to Section 2.14 or would reduce amounts payable
pursuant to Section 2.19, as the case may be, in the future. The Borrower hereby
agrees to pay all reasonable costs and expenses incurred by any Lender or the
Issuing Bank in connection with any such filing or assignment, delegation and
transfer.
SECTION 2.21. SWINGLINE LOANS.
(a) SWINGLINE LOANS. The Borrower shall notify the Administrative Agent
by telecopy, or by telephone (confirmed by telecopy), not later than 12:00
(noon), Eastern Standard Time, on the day of a proposed Swingline Loan. Such
notice shall be delivered on a Business Day, shall be irrevocable and shall
refer to this Agreement and shall specify the requested date (which shall be a
Business Day) and amount of such Swingline Loan. The Administrative Agent will
promptly advise the Swingline Lender of any notice received from
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the Borrower pursuant to this paragraph (a). The Swingline Lender shall make
each Swingline Loan available to the Borrower by means of a credit to the
general deposit account of the Borrower with the Swingline Lender by 6:00 p.m.
on the date such Swingline Loan is so requested.
(b) PREPAYMENT. The Borrower shall have the right at any time and from
time to time to prepay any Swingline Loan, in whole or in part, upon giving
written or telecopy notice (or telephone notice promptly confirmed by written,
or telecopy notice) to the Swingline Lender and to the Administrative Agent
before 12:00 noon, Eastern Standard Time, on the date of prepayment at the
Swingline Lender's address for notices specified in Section 9.01.
(c) PARTICIPATIONS. The Swingline Lender may by written notice given to
the Administrative Agent not later than 1:00 p.m., Eastern Standard Time, on any
Business Day require the Tranche A Lenders to acquire participations on such
Business Day in all or a portion of the Swingline Loans outstanding. Such notice
shall specify the aggregate amount of Swingline Loans in which Tranche A Lenders
will participate. The Administrative Agent will, by 2:00 p.m., Eastern Standard
Time, on the date of receipt of such notice, give notice to each Tranche A
Lender, specifying in such notice such Lender's Applicable Tranche A Percentage
of such Swingline Loan or Loans. In furtherance of the foregoing, each Tranche A
Lender hereby absolutely and unconditionally agrees, upon receipt of notice as
provided above, to pay to the Administrative Agent by 4:00 p.m., Eastern
Standard Time, on the date such notice is received from the Swingline Lender,
for the account of the Swingline Lender, such Tranche A Lender's Applicable
Tranche A Percentage of such Swingline Loan or Loans. Each Lender acknowledges
and agrees that its obligation to acquire participations in Swingline Loans
pursuant to this paragraph is absolute and unconditional and shall not be
affected by any circumstance whatsoever, including the occurrence and
continuance of a Default or an Event of Default, and that each such payment
shall be made without any offset, abatement, withholding or reduction
whatsoever. Each Lender shall comply with its obligation under this paragraph by
wire transfer of immediately available funds, in the same manner as provided in
Section 2.02(d) with respect to Loans made by such Lender (and Section 2.02(c)
shall apply, MUTATIS MUTANDIS, to the payment obligations of the Lenders) and
the Administrative Agent shall promptly pay to the Swingline Lender the amounts
so received by it from the Lenders. The Administrative Agent shall notify the
Borrower of any participations in any Swingline Loan acquired pursuant to this
paragraph and thereafter payments in respect of such Swingline Loan shall be
made to the Administrative Agent and not to the Swingline Lender. Any amounts
received by the Swingline Lender from the Borrower (or other party on behalf of
the Borrower) in respect of a Swingline Loan after receipt by the Swingline
Lender of the proceeds of a sale of participations therein shall be promptly
remitted to the Administrative Agent; any such amounts received by the
Administrative Agent shall be promptly remitted by the Administrative Agent to
the Lenders that shall have made their payments pursuant to this paragraph and
to the Swingline Lender, as their interests may appear. The purchase of
participations in a Swingline Loan pursuant to this paragraph shall not relieve
the Borrower (or other party liable for obligations of the Borrower) of any
default in the payment thereof.
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SECTION 2.22. LETTERS OF CREDIT. (a) The Borrower may request the
issuance of Letters of Credit, in form and substance reasonably acceptable to
the Administrative Agent and the Issuing Bank, for the account of the Borrower
or any Subsidiary, at any time and from time to time during the Letter of Credit
Availability Period; PROVIDED, THAT, any Letter of Credit shall be issued only
if, and each request by the Borrower for the issuance of any Letter of Credit
shall be deemed a representation and warranty of the Borrower that, immediately
following the issuance of such Letter of Credit, (i) the aggregate Letter of
Credit Exposure hereunder shall not exceed $25,000,000 and (ii) the sum of the
aggregate Letter of Credit Exposure, the aggregate Swingline Exposure and the
aggregate principal amount of outstanding Tranche A Revolving Loans shall not
exceed the aggregate amount of the Tranche A Revolving Credit Commitments at
such time. For purposes hereof, the "issuance" of a Letter of Credit includes
the amendment, renewal or extension of a Letter of Credit.
(b) Each Letter of Credit shall expire no later than the earlier of
(i)(A) in the case of standby Letters of Credit, three years after the date of
issuance of such Letter of Credit, subject to extension (including pursuant to
an automatic renewal provision in customary form), and (B) in the case of trade
Letters of Credit, 270 days after the date of issuance of such Letter of Credit
and (ii) the fifth Business Day prior to the Tranche A Revolving Credit Maturity
Date. Each Letter of Credit shall provide for payments of drawings in dollars.
(c) Each issuance of any Letter of Credit shall be made on at least two
Business Days' prior irrevocable written or telecopy notice (such notice to be
delivered by 12:00 noon, Eastern Standard Time) from the Borrower (or such
shorter notice as shall be acceptable to the Issuing Bank) to the Administrative
Agent and the Issuing Bank specifying whether such Letter of Credit is a standby
Letter of Credit or a trade Letter of Credit, the date of issuance, the date on
which such Letter of Credit is to expire, the amount of such Letter of Credit,
the name and address of the beneficiary of such Letter of Credit, and such other
information as may be necessary or desirable to complete such Letter of Credit.
The Issuing Bank will give the Administrative Agent prompt notice of the
issuance and amount of such Letter of Credit and the expiration date of such
Letter of Credit (and the Administrative Agent shall give prompt notice thereof
to the Syndication Agent and each Lender). During the Letter of Credit
Availability Period, the Issuing Bank also will give the Administrative Agent
(i) daily notice of the amount available to be drawn under each outstanding
Letter of Credit and (ii) a quarterly summary indicating, on a daily basis
during such quarter, the issuance of any Letter of Credit and the amount
thereof, the expiration of any Letter of Credit and the amount thereof and the
payment on any draft presented under any Letter of Credit. Each Letter of Credit
issued hereunder will be subject to the Uniform Customs and Practices for
Documentary Credits, as in effect from time to time.
(d) By the issuance of a Letter of Credit and without any further
action on the part of the Issuing Bank, the Agents or the Lenders in respect
thereof, the Issuing Bank hereby grants to each Tranche A Lender, and each
Tranche A Lender hereby acquires from the Issuing Bank, a participation in such
Letter of Credit equal to such Tranche A Lender's Applicable Tranche A
Percentage of the aggregate amount available to be drawn under such Letter of
Credit, effective upon the issuance of such Letter of Credit. In consideration
and in furtherance of the foregoing, each Tranche A Lender hereby absolutely and
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unconditionally agrees to pay to the Administrative Agent, on behalf of the
Issuing Bank, in accordance with Section 2.02(d), such Tranche A Lender's
Applicable Tranche A Percentage of each Letter of Credit Disbursement made by
the Issuing Bank and not reimbursed by the Borrower when due in accordance with
Section 2.22(g).
(e) Each Tranche A Lender acknowledges and agrees that its obligation
to acquire participations pursuant to Section 2.22(d) in respect of Letters of
Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including the occurrence and continuance of a Default
or Event of Default, and that each such payment shall be made without any
offset, abatement, withholding or reduction whatsoever.
(f) The Borrower shall pay to the Administrative Agent, for the account
of the Tranche A Lenders and the Issuing Bank, as applicable, a nonrefundable
Letter of Credit Fee and Fronting Fee in accordance with Section 2.05(b). In
addition to the foregoing fees and commissions, the Borrower shall pay or
reimburse the Issuing Bank for such normal and customary costs and expenses,
including, without limitation, administrative, issuance, amendment, payment and
negotiation charges, as are incurred or charged by the Issuing Bank in issuing,
effecting payment under, amending or otherwise administering any Letter of
Credit (including any Letter of Credit issued for the account of a Subsidiary).
(g) The Borrower hereby agrees to reimburse the Issuing Bank for any
payment disbursement made by the Issuing Bank under any Letter of Credit
(including any Letter of Credit issued for the account of a Subsidiary), by
making payment in immediately available funds, to the Administrative Agent on
the same Business Day after receipt of notice of such payment or disbursement,
in an amount equal to the amount of such payment or disbursement, plus interest
on the amount so paid or disbursed by the Issuing Bank at a rate per annum equal
to the rate applicable to ABR Loans pursuant to Section 2.06; PROVIDED, THAT, if
such amount is not reimbursed prior to 2:00 p.m., Eastern Standard Time, on the
same Business Day after receipt by the Borrower of the notice of such payment or
disbursement, interest shall thereafter accrue on such unreimbursed amount at a
rate per annum equal to the rate applicable to ABR Loans during such period
pursuant to Section 2.06, plus 2.00%. The Administrative Agent shall promptly
pay any such amounts received by it to the Issuing Bank.
(h) The Borrower's obligation to reimburse Letter of Credit
Disbursements as provided in Section 2.22(g) shall be absolute, unconditional
and irrevocable and shall be performed strictly in accordance with the terms of
this Agreement under any and all circumstances whatsoever, and irrespective of:
(i) any lack of validity or enforceability of any Letter of
Credit or any other Loan Document or any term or provision therein;
(ii) the existence of any claim, setoff, defense or other
right which the Borrower, any Subsidiary or any other person may at any
time have against the beneficiary under any Letter of Credit, the
Issuing Bank, the Agents, any Lender or any other person, whether in
connection with this Agreement, any other Loan Document or any other
related or unrelated agreement or transaction;
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(iii) any draft or other document presented under a Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any
respect or failing to comply with the Uniform Customs and Practices for
Documentary Credits, as in effect from time to time, or any statement
therein being untrue or inaccurate in any respect;
(iv) payment by the Issuing Bank under a Letter of Credit
against presentation of a draft or other document which does not comply
with the terms of such Letter of Credit;
(v) any amendment, waiver or consent in respect of this
Agreement or any other Loan Document; and
(vi) any other act or omission or delay of any kind or any
other circumstance or event whatsoever, whether or not similar to any
of the foregoing and whether or not foreseeable, that might, but for
the provisions of this Section 2.22(h), constitute a legal or equitable
discharge of the Borrower's obligations hereunder.
(i) Without limiting the generality of the provisions of the foregoing
paragraph (h), it is expressly understood and agreed that the absolute and
unconditional obligation of the Borrower hereunder to reimburse Letter of Credit
Disbursements will not be excused by the gross negligence or willful misconduct
of the Issuing Bank. However, the preceding sentence and the provisions of
Section 2.22(h) shall not be construed to excuse the Issuing Bank from liability
to the Borrower to the extent of any direct damages (as opposed to consequential
damages, claims in respect of which are hereby waived by the Borrower to the
extent permitted by applicable law) suffered by the Borrower that are caused by
the Issuing Bank's bad faith, gross negligence or willful misconduct in
determining whether drafts and other documents presented under a Letter of
Credit comply with the terms thereof. It is understood that the Issuing Bank may
accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or
information to the contrary and, in making any payment under any Letter of
Credit (i) the Issuing Bank's exclusive reliance in good faith on the documents
presented to it under such Letter of Credit as to any and all matters set forth
therein, including reliance on the amount of any draft presented under such
Letter of Credit, if such document on its face appears to be in order, and
whether or not any other statement or any other document presented pursuant to
such Letter of Credit proves to be forged or invalid or any statement therein
proves to be inaccurate or untrue in any respect whatsoever and (ii) any
noncompliance in any immaterial respect of the documents presented under such
Letter of Credit with the terms thereof shall, in each case, be deemed not to
constitute bad faith, gross negligence or willful misconduct of the Issuing
Bank.
(j) The Issuing Bank shall, promptly following its receipt thereof,
examine all documents purporting to represent a demand for payment under a
Letter of Credit. The Issuing Bank shall as promptly as possible give telephonic
notification, confirmed by telex or telecopy, to the Administrative Agent and
the Borrower of such demand for payment and whether the Issuing Bank has made or
will make a Letter of Credit Disbursement thereunder; PROVIDED, THAT, the
failure to give such notice shall not relieve the Borrower of its obligation
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to reimburse any such Letter of Credit Disbursement in accordance with this
Section 2.22. The Administrative Agent shall promptly give each Lender notice
thereof.
(k) In the event that the Borrower is required pursuant to the terms of
this Agreement or any other Loan Document to provide cash collateral in respect
of the Letter of Credit Exposure, the Borrower shall deposit in an account with
the Administrative Agent, for the benefit of each Tranche A Lender, an amount in
cash equal to the Letter of Credit Exposure (or such lesser amount as shall be
required hereunder or thereunder). Such deposit shall be held by the
Administrative Agent as collateral for the payment and performance of the
Obligations to Tranche A Lenders. The Administrative Agent shall have exclusive
dominion and control, including the exclusive right of withdrawal, over such
account. Other than any interest earned on the investment of such deposits in
Cash Equivalents, which investments shall be made as directed by the Borrower
(unless such investments shall be contrary to applicable law or regulation or a
Default or Event of Default shall have occurred and be continuing, in which case
the Administrative Agent shall determine in its discretion whether to make
investments and, if so, shall determine in its discretion the Cash Equivalents
to be selected), such deposits shall not bear interest. Interest or profits, if
any, on such investments shall accumulate in such account. Moneys in such
account shall automatically be applied by the Administrative Agent to reimburse
the Issuing Bank for Letter of Credit Disbursements and, if the maturity of the
Loans has been accelerated, to satisfy the Obligations to Tranche A Lenders. If
the Borrower is required to provide an amount of cash collateral hereunder as a
result of an Event of Default, such amount (to the extent not applied as
aforesaid) shall be returned to the Borrower within three Business Days after
all Events of Default have been cured or waived. If the Borrower is required to
provide an amount of cash collateral hereunder pursuant to Section 2.11(g), such
amount (to the extent not applied as aforesaid) shall be returned to the
Borrower upon demand; PROVIDED, THAT, after giving effect to such return, (i)
the sum of the aggregate Letter of Credit Exposure, plus the aggregate
outstanding Swingline Exposure, plus the aggregate outstanding principal amount
of Tranche A Revolving Loans would not exceed the aggregate Tranche A Revolving
Credit Commitments and (ii) no Default or Event of Default shall have occurred
and be continuing.
ARTICLE III
REPRESENTATIONS AND WARRANTIES
The Borrower represents and warrants to each of the Lenders that:
SECTION 3.01. ORGANIZATION; POWERS. Each of the Borrower and the
Subsidiaries (a) is duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization, (b) has all requisite power
and authority to own its property and assets and to carry on its business as now
conducted and as proposed to be conducted, (c) is qualified to do business in
every jurisdiction where such qualification is required, except where the
failure so to qualify would not result in a Material Adverse Effect, and (d) has
the requisite power and authority to execute, deliver and perform its
obligations under each of the Loan Documents and each other agreement or
instrument contemplated thereby to which
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it is or will be a party and, in the case of the Borrower, to obtain extensions
of credit hereunder.
SECTION 3.02. AUTHORIZATION. The execution, delivery and performance by
each of the Borrower and the Subsidiaries of each of the Loan Documents to which
it is or will be a party (including the exercise of remedies thereunder) and, in
the case of the Borrower, the extensions of credit hereunder (a) have been duly
authorized by all requisite corporate or partnership and, if required,
stockholder action and (b) will not (i) violate (A) any provision of law,
statute, rule or regulation, (B) any provision of the certificate of
incorporation, partnership agreement, operating agreement or other constitutive
documents or by-laws of the Borrower and the Subsidiaries, (C) any order of any
Governmental Authority or (D) any provision of any Material Contract or other
indenture, agreement or instrument to which the Borrower or any of the
Subsidiaries is a party or by which any of them or any of their property is or
may be bound, (ii) be in conflict with, result in a breach of or constitute
(alone or with notice or lapse of time or both) a default or give rise to
increased, additional, accelerated or guaranteed rights of any person under any
Material Contract or other indenture, agreement or instrument or (iii) except
for the Liens of the Collateral Documents, result in the creation or imposition
of any Lien upon or with respect to any property or assets now owned or
hereafter acquired by the Borrower or any of the Subsidiaries.
SECTION 3.03. ENFORCEABILITY. This Agreement has been duly executed and
delivered by the Borrower and constitutes, and each other Loan Document when
executed and delivered by the Borrower or any of the Subsidiaries will
constitute, a legal, valid and binding obligation of such party enforceable
against such party in accordance with its terms, subject to the effect of
bankruptcy, insolvency, reorganization, arrangement, moratorium, fraudulent
conveyance, voidable preference or similar laws and the application of equitable
principles generally.
SECTION 3.04. CONSENTS AND GOVERNMENTAL APPROVALS. No action, consent
or approval of, registration or filing with or any other action by (a) any
Governmental Authority, (b) any creditor or shareholder of the Borrower or any
creditor, shareholder, partner or member of the Subsidiaries, (c) any
counterparty to a Material Contract or (d) except where failure to take or
obtain such action, consent or approval of, registration or filing with or such
other action could not reasonably be expected to have a Material Adverse Effect,
any other person, is or will be required in connection with the Facilities or
the performance by the Borrower or any of the Subsidiaries of the Loan Documents
to which it is or will be a party, in each case except such as have been made or
obtained and are in full force and effect.
SECTION 3.05. FINANCIAL STATEMENTS; UNDISCLOSED LIABILITIES. (a) The
Borrower has heretofore furnished to the Lenders its consolidated balance sheet
and statements of income and cash flows as of and for the 1996 Fiscal Year,
audited by and accompanied by the unqualified opinion of Ernst & Young LLP,
independent public accountants and (ii) its unaudited consolidating balance
sheet and statements of income and cash flows for the 1996 Fiscal Year. Such
financial statements present fairly the financial condition and results of
operations and cash flows of the Borrower and its Consolidated Subsidiaries as
of such dates and for such periods. Such balance sheet and the notes thereto
disclose all material
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liabilities, direct, contingent or otherwise, of the Borrower and its
Consolidated Subsidiaries as of the dates thereof for which disclosure is
required in accordance with GAAP. Such financial statements were prepared in
accordance with GAAP applied on a consistent basis, except as otherwise noted
therein.
(b) As of the Closing Date, the Borrower and the Subsidiaries do not
have any material liability, contingent or otherwise, required by GAAP to be set
forth on a consolidated balance sheet of the Borrower, except (i) as set forth
in the financial statements referred to in Section 3.05(a), (ii) for items set
forth in Schedule 3.05(b) and (iii) for liabilities and obligations incurred in
the ordinary course of business consistent with past practice.
SECTION 3.06. NO MATERIAL ADVERSE CHANGE. Since August 31, 1996, and as
of the Closing Date, there has not been any Material Adverse Change in the
business of the Borrower.
SECTION 3.07. TITLE TO PROPERTIES; POSSESSION UNDER LEASES. (a) Each of
the Borrower and the Subsidiaries has good and marketable title to, or valid
leasehold interests or licenses in, all its properties and assets (including
without limitation, real property and intellectual property interests), except
for defects in title that do not materially interfere with its ability to
conduct its business as currently conducted or to utilize such properties and
assets for their intended purposes. All such properties and assets are free and
clear of Liens, other than Liens permitted by Section 6.02.
(b) Each of the Borrower and the Subsidiaries has complied in all
material respects with all obligations under all material leases to which it is
a party and all such leases are in full force and effect. Each of the Borrower
and the Subsidiaries enjoys peaceful and undisturbed possession under all such
material leases.
SECTION 3.08. SUBSIDIARIES. Schedule 3.08 sets forth a list of all of
the Subsidiaries, the respective jurisdictions of organization thereof and the
percentage ownership interest, direct or indirect, of the Borrower therein. All
of the Subsidiaries are Consolidated Subsidiaries.
SECTION 3.09. LITIGATION; COMPLIANCE WITH LAWS. (a) As of the Closing
Date, except as set forth in Schedule 3.09 or as fully covered by third party
insurance, there are no pending or, to the knowledge of the Borrower, threatened
litigation, arbitrations or other proceedings against the Borrower or any
Subsidiary involving a claim for more than $200,000. Except as noted on Schedule
3.09, there are no lawsuits, claims, arbitrations or other proceedings which, if
adversely determined, whether individually or in the aggregate, would have a
Material Adverse Effect. As of the Closing Date, to the knowledge of the
Borrower, except as set forth in Schedule 3.09, neither the Borrower nor any
Subsidiary is a party or subject to or in default under any material judgment,
order, injunction or decree of any Governmental Authority or arbitration
tribunal. Except as set forth in Schedule 3.09, there are no actions, suits,
investigations or proceedings at law or in equity or by or before any arbitrator
or Governmental Authority now pending or, to the knowledge of the Borrower,
threatened against or affecting the Borrower, any of the Subsidiaries or any
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business, property or rights of the Borrower or any of the Subsidiaries (i)
which involve any Loan Document or (ii) as to which there is a reasonable
possibility of an adverse determination and which, if adversely determined,
could, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.
(b) Except as set forth in Schedule 3.09, the Borrower and the
Subsidiaries are in compliance with all applicable statutes, laws, ordinances,
rules, orders and regulations of any Governmental Authority ("APPLICABLE LAWS")
including those relating to the environment, taxes and occupational health and
safety, except for instances of noncompliance that, in the aggregate, could not
reasonably be expected to have a Material Adverse Effect. Except as set forth in
Schedule 3.09 and as of the Closing Date, neither the Borrower nor any
Subsidiary has received any written communication during the past three years
from a Governmental Authority that alleges that the Borrower or a Subsidiary is
not in compliance in any material respect with any Applicable Laws. Except as
set forth in Schedule 3.09 and as of the Closing Date, to the knowledge of the
Borrower, there is no pending or threatened investigation of the Borrower or a
Subsidiary by any Governmental Authority.
SECTION 3.10. AGREEMENTS. (a) Each indenture or other agreement or
instrument evidencing Indebtedness and each other material agreement, contract,
lease, license, commitment or other instrument (within the meaning of 17 C.F.R.
ss.229.601(b)(10)(1996)) to which the Borrower or any of the Subsidiaries is a
party or by which it or any of its properties or assets are or may be bound as
of the Closing Date is listed on Schedule 3.10 hereto (collectively with the
Subordinated Notes and any agreements listed on Schedule 3.20, the "MATERIAL
CONTRACTS").
(b) Except as set forth in Schedule 3.10, all the Material Contracts
are valid, binding and in full force and effect in all material respects. Except
as set forth in Schedule 3.10, the Borrower and the Subsidiaries have performed
all material obligations required to be performed by them to date under the
Material Contracts and they are not in breach or default in any material respect
thereunder and, to the knowledge of the Borrower, no other party to any of the
Material Contracts is in breach or default in any material respect thereunder.
Neither the Borrower, nor any of the Subsidiaries, nor, to the knowledge of the
Borrower, any other party to any Material Contract has given notice of
termination of, or taken any action inconsistent with the continuation of, any
Material Contract. None of such other parties has any presently exercisable
right to terminate any Material Contract nor will any such other party have any
right to terminate any Material Contract on account of the execution, delivery
or performance of the Loan Documents.
SECTION 3.11. FEDERAL RESERVE REGULATIONS. (a) Neither the Borrower nor
any of the Subsidiaries is engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of purchasing or
carrying Margin Stock.
(b) No part of the proceeds of any Loan and no Letter of Credit will be
used, whether directly or indirectly, and whether immediately, incidentally or
ultimately, for any purpose which entails a violation of, or which is
inconsistent with, the provisions of the regulations of the Board, including
Regulation G, U and X.
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SECTION 3.12. INVESTMENT COMPANY ACT; PUBLIC UTILITY HOLDING COMPANY
ACT. Neither the Borrower nor any of the Subsidiaries is (a) an "investment
company" as defined in, or subject to regulation under, the Investment Company
Act of 1940 or (b) a "holding company" as defined in, or subject to regulation
under, the Public Utility Holding Company Act of 1935 or (c) subject to
regulation as a "public utility" or a "public service corporation" or the
equivalent under any Federal or state law.
SECTION 3.13. USE OF PROCEEDS. The proceeds of all Loans will be used
solely (a) to refinance Existing Debt of the Borrower, (b) to provide for the
ongoing working capital requirements of the Borrower and the Subsidiaries and
for general corporate purposes (including working capital, Capital Expenditures
in the ordinary course of business and Permitted Acquisitions) and (c) to pay
related fees and expenses. The Letters of Credit will be issued solely to
support various financial and other performance obligations of the Borrower and
the Subsidiaries incurred in the ordinary course of business.
SECTION 3.14. TAX RETURNS. Each of the Borrower and the Subsidiaries
has filed or caused to be filed all Federal, state and local tax returns
required to have been filed by it and has paid or caused to be paid all taxes
shown to be due and payable on such returns or on any assessments received by
it, except taxes that are being contested in good faith by appropriate
proceedings diligently pursued and for which adequate reserves in accordance
with GAAP have been set aside on its financial statements.
SECTION 3.15. NO MATERIAL MISSTATEMENTS. The Confidential Information
Memorandum and the exhibits and schedules (except for forecasts and projections)
furnished by or on behalf of the Borrower to the Lenders in connection with the
negotiation of any Loan Document or included therein or delivered pursuant
thereto, when taken as a whole and evaluated in the context presented, do not
contain any material misstatement of fact or omit to state any material fact
necessary to make the statements therein not misleading in light of the
circumstances under which such information was provided. Any such exhibit or
schedule which constitutes a forecast or a projection was prepared in good
faith, was based on assumptions that the Borrower believes to be reasonable and
was based on the best information reasonably available to the Borrower. The
Borrower has no reason to believe that any such forecasts or projections are
misleading in any material respect in light of the circumstances existing at the
time of preparation thereof.
SECTION 3.16. EMPLOYEE BENEFIT PLANS. (a) Except as set forth in
Schedule 3.16, each of the Borrower and the Commonly Controlled Entities is in
compliance in all material respects with the applicable provisions of ERISA and
the regulations and published interpretations thereunder. Neither a Reportable
Event nor an "accumulated funding deficiency" (within the meaning of Section 412
of the Code or Section 302 of ERISA) has occurred within the last five years
with respect to any Plan, and each Plan has complied in all material respects
with the applicable provisions of ERISA and the Code. No termination of a Single
Employer Plan has occurred and no Lien in favor of the PBGC or a Plan has arisen
during the five years prior to the Effective Date.
(b) Except as set forth in Schedule 3.16, the present value of all
accrued benefits under each Single Employer Plan in which the Borrower or any
Commonly Controlled Entity
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is a participant (based on those assumptions used to fund the Plans) did not, as
of the last annual valuation date, exceed the value of the assets of such Plan
allocable to such accrued benefits.
(c) Neither the Borrower nor any Commonly Controlled Entity has had a
complete or partial withdrawal from any Multiemployer Plan, and neither the
Borrower nor any Commonly Controlled Entity would become subject to any
liability under ERISA if the Borrower or any such Commonly Controlled Entity
were to withdraw completely from all Multiemployer Plans as of the last
valuation date.
(d) No such Multiemployer Plan is in "reorganization" or "insolvent,"
within the meaning of such terms as used in ERISA.
(e) Except as set forth in Schedule 3.16, neither the Borrower nor any
Commonly Controlled Entity has any liability for post retirement benefits to be
provided to its current and former employees.
(f) No prohibited transaction under ERISA or the Code has occurred with
respect to any Multiemployer Plan or Single Employer Plan which could have a
Material Adverse Effect.
SECTION 3.17. ENVIRONMENTAL AND SAFETY MATTERS. As of the Closing Date,
except as set forth in Schedule 3.17, each of the Borrower and the Subsidiaries
has complied in all material respects with all applicable Federal, state, local
and other statutes, ordinances, orders, judgments, rulings and regulations
relating to protection of the environment or to employee health or safety. As of
the Closing Date, except as set forth in Schedule 3.17, neither the Borrower nor
any Subsidiary has received notice of any material failure so to comply. The
facilities of the Borrower and the Subsidiaries do not manage or contain any
hazardous wastes, hazardous substances, hazardous materials, toxic substances,
toxic pollutants or similarly denominated substances, as those terms or similar
terms are used in the Resource Conservation and Recovery Act, the Comprehensive
Environmental Response Compensation and Liability Act, the Hazardous Materials
Transportation Act, the Toxic Substance Control Act, the Clean Air Act, the
Clean Water Act or any other applicable law relating to protection of the
environment, human health or to employee health and safety (collectively,
"HAZARDOUS MATERIALS"), in violation in any material respect of any such law or
any regulations promulgated pursuant thereto. Except as set forth in Schedule
3.17, to the knowledge of the Borrowers, there are no events, conditions or
circumstances involving environmental pollution, regulation or control or
employee health or safety that are reasonably likely to result in any material
liabilities being incurred by the Borrower or any Subsidiary.
SECTION 3.18. SECURITY INTERESTS. (a) The Administrative Agent for the
benefit of the Secured Parties will at all times have the Liens provided for in
the Collateral Documents and, subject to the filing by the Administrative Agent
of continuation statements to the extent required by the Uniform Commercial Code
and the continuing possession by the Administrative Agent of the certificates
representing the securities pledged pursuant to the Pledge Agreement, the
Collateral Documents will at all times constitute a valid and
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continuing lien of record and first priority perfected security interest in all
the Collateral referred to therein. No filings or recordings are required in
order to perfect the security interests created under the Collateral Documents,
except for filings or recordings listed on Schedule 3.18. All such listed
filings and recordings will have been made on or prior to the Closing Date.
(b) All of the shares of common stock of each Subsidiary have been duly
and validly authorized and issued, are fully paid and nonassessable, and were
not issued in violation of the preemptive rights of any stockholder. The
Borrower owns, directly or indirectly, good and valid title to 100% (or such
other percentage as the Borrower does own, directly or indirectly, as noted on
Schedule 3.08) of the Capital Stock of each Subsidiary, free and clear of all
Liens, other than the Liens of the Collateral Documents, of every kind, whether
absolute, matured, contingent or otherwise. There are no existing options,
warrants, calls or commitments relating to, or any securities or rights
convertible into, exercisable for or exchangeable for, any Capital Stock of the
Subsidiaries.
SECTION 3.19. SOLVENCY. (a) After the making of each Loan made on the
Closing Date and the uses of proceeds therefrom, each of the Borrower and the
Subsidiaries will be Solvent on the Closing Date. "SOLVENT" means, with respect
to any person, that (i) the fair value of the assets of such person, at a fair
valuation, will exceed the debts and liabilities, subordinated, contingent or
otherwise, of such person; (ii) the present fair saleable value of the property
of such person will be greater than the amount that will be required to pay the
liabilities of such person on its debts and other liabilities, subordinated,
contingent or otherwise, as such debts and other liabilities become absolute and
matured; (iii) such person will be able to pay its debts and liabilities,
subordinated, contingent or otherwise, as such debts and liabilities become
absolute and matured; and (iv) such person will not have an unreasonably small
amount of capital with which to conduct the businesses in which it is engaged as
such businesses are now conducted and are proposed to be conducted. With respect
to any contingent liabilities, such liabilities shall be computed at the amount
which, in light of all the facts and circumstances existing at the time,
represents the amount which can reasonably be expected to become an actual or
matured liability.
(b) The Borrower does not intend to, or to permit any of the
Subsidiaries to, and does not believe that the Borrower or any of the
Subsidiaries will, incur debts beyond its ability to pay such debts as they
mature taking into account the timing of and amounts of cash to be received by
the Borrower or any such Subsidiary and the timing of and amounts of cash to be
payable on or in respect of indebtedness of the Borrower or any such Subsidiary.
SECTION 3.20. TRANSACTIONS WITH AFFILIATES AND SHAREHOLDERS. Except as
set forth in Schedule 3.20 and except for agreements and arrangements among the
Borrower and Wholly Owned Subsidiaries or among Wholly Owned Subsidiaries,
neither the Borrower nor any of the Subsidiaries is a party to, and none of the
properties and assets of the Borrower or any of the Subsidiaries is subject to
or bound by, any agreement or arrangement with, (a) any Affiliate of the
Borrower or any of the Subsidiaries, except in each case those agreements or
arrangements that are entered into on terms not less favorable to the Borrower
or any Subsidiary as a comparable transaction on an arm's-length basis with an
unrelated
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third party or as may be expressly permitted by Section 6.10, or (b) any
Shareholder. Except as set forth in Schedule 3.20 and except for transactions
among the Borrower and Wholly Owned Subsidiaries or among Wholly Owned
Subsidiaries, neither the Borrower nor any of the Subsidiaries is engaged in any
transaction with (i) any Affiliate of the Borrower or of any Subsidiary, except
in each case those agreements or arrangements that are entered into on terms not
less favorable to the Borrower or any Subsidiary as a comparable transaction on
an arm's-length basis with an unrelated third party or as may be expressly
permitted by Section 6.10, or (ii) any Shareholder.
SECTION 3.21. INSURANCE. The Borrower and the Subsidiaries maintain
policies of fire and casualty, liability, business interruption and other forms
of insurance in such amounts, with such deductibles and against such risks and
losses, all of which are in accordance with normal industry practices. All such
policies are in full force and effect, all premiums due and payable thereon have
been paid (other than retroactive or retrospective premium adjustments that are
not yet, but may be, required to be paid with respect to any period under
comprehensive general liability and workmen's compensation insurance policies),
and no notice of cancellation or termination has been received with respect to
any such policy which has not been replaced on substantially similar terms prior
to the date of such cancellation. The activities and operations of the Borrower
and the Subsidiaries have been conducted in a manner so as to conform in all
material respects to all applicable provisions of such insurance policies.
SECTION 3.22. LABOR MATTERS. (i) As of the Closing Date, except as set
forth in Schedule 3.22, there is no labor strike, dispute, work stoppage or
lockout pending or, to the knowledge of the Borrower, threatened against the
Borrower or a Subsidiary, (ii) to the knowledge of the Borrower, as of the
Closing Date, no union organizational campaign is in progress with respect to
the employees of the Borrower or a Subsidiary; (iii) as of the Closing Date,
there is no unfair labor practice charge or complaint against the Borrower or a
Subsidiary pending or, to the knowledge of the Borrower, threatened before the
National Labor Relations Board; (iv) there are no pending or threatened union
grievances against the Borrower or a Subsidiary as to which there is a
reasonable possibility of adverse determination and that, if so determined,
would have a Material Adverse Effect; (v) there are no pending, or, to the
knowledge of the Borrower, threatened, charges against the Borrower, a
Subsidiary or any current or former employee of the Borrower before the Equal
Employment Opportunity Commission or any state or local agency responsible for
the prevention of unlawful employment practices which individually or in the
aggregate are reasonably likely to have a Material Adverse Effect; and (vi) as
of the Closing Date, none of the Borrower and the Subsidiaries has received
written notice during the past three years of the intent of any Governmental
Authority responsible for the enforcement of labor or employment laws to conduct
an investigation of the Borrower or a Subsidiary and, to the knowledge of the
Borrower, no such investigation is in progress.
(b) No employee or agent of the Borrower or any Subsidiary that has not
signed a confidentiality and non-compete agreement is privy to any information
that, if disseminated to an unrelated third party, could have a Material Adverse
Effect.
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ARTICLE IV
CONDITIONS OF LENDING
SECTION 4.01. FIRST BORROWING. The obligations of the Lenders to make
Loans hereunder, and the obligation of the Issuing Bank to issue Letters of
Credit hereunder, are subject to the satisfaction of the conditions that on the
Closing Date:
(a) The Agents shall have received counterparts hereof signed
by each of the parties (or, in the case of any Lender as to which an
executed counterpart shall not have been received, telecopy or other
written confirmation from such party in form satisfactory to the Agents
of the execution of a counterpart hereof by such Lender).
(b) The Administrative Agent shall have received for the
account of each Lender a duly executed Note or Notes, dated the Closing
Date, complying with the provisions of Section 2.04.
(c) The Administrative Agent on behalf of the Secured Parties
shall have a security interest in the Collateral of the type and
priority described in the Collateral Documents, perfected to the extent
contemplated by Section 3.18 and the Administrative Agent shall have
received:
(i) counterparts of the Pledge Agreement, duly
executed by the Borrower and all Domestic Subsidiaries of the
Borrower, and a duly completed and executed Perfection
Certificate from the Borrower and all Domestic Subsidiaries of
the Borrower;
(ii) certificates representing 100% of all
outstanding Capital Stock of each Domestic Subsidiary (or such
other percentage as is owned by the Borrower or applicable
Domestic Subsidiary as noted on Schedule 3.08), accompanied by
stock powers endorsed in blank and Intercompany Notes, duly
executed by each Domestic Subsidiary, accompanied by
assignments executed in blank;
(iii) except for those Foreign Subsidiaries listed on
Schedule 5.14(c), certificates representing 65% of all
outstanding Capital Stock of each Foreign Subsidiary that is a
Restricted Subsidiary, accompanied by stock powers endorsed in
blank, and, except for those Foreign Subsidiaries listed on
Schedule 5.14(b), Intercompany Notes, duly executed by each
and every Wholly Owned Subsidiary that is a Foreign Subsidiary
(whether owned directly or indirectly), and each and every
non-Wholly Owned Subsidiary that is a Foreign Subsidiary that
is borrowing from a Domestic Subsidiary or the Borrower as of
the Closing Date, accompanied by assignments executed in
blank;
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(iv) an acknowledgement copy, or other evidence
satisfactory to the Agents, of the proper filing, registration
or recordation of each document (including each Uniform
Commercial Code financing statement) required by law or
reasonably requested by the Agents to be filed, registered or
recorded in each jurisdiction and to each Governmental
Authority in which or to which the filing, registration or
recordation is so required or requested in order to create in
favor of the Administrative Agent for the benefit of the
Secured Parties a valid, legal and perfected security interest
in or Lien on the Collateral that is the subject of the Pledge
Agreement;
(v) certified copies of Requests for Information or
Copies (form UCC-11), or equivalent reports from Xxxxxxxx-Xxxx
Financial Services or other independent search service
satisfactory to the Agents, listing (A) any judgment naming
the Borrower or any Subsidiary, as judgment debtor, (B) any
tax lien that names the Borrower or any Subsidiary as a
delinquent taxpayer in any of the jurisdictions referred to in
clause (iv) above and (C) any Uniform Commercial Code
financing statement that names the Borrower or any Subsidiary
as debtor filed in any jurisdiction in which a Lien could be
perfected against assets of the Borrower or any Subsidiary;
(vi) appropriate duly executed termination statements
(Form UCC-3) signed by all persons disclosed as secured
parties in the jurisdictions referred to in clauses (iv) and
(v)(C) above (other than holders of Liens permitted under
Section 6.02) in form for filing under the Uniform Commercial
Code in the applicable jurisdictions; and
(vii) any other evidence reasonably required by the
Agents to evidence that the Administrative Agent (on behalf of
the Lenders) holds a perfected, first priority Lien in all
Collateral for the Facilities, subject to no other Liens,
except for Liens permitted under Section 6.02. Such evidence
shall include, but is not limited to, evidence of registration
of the Lenders' security interest on the register or books of
certain Foreign Subsidiaries and any other action as may be
required under applicable local law to perfect the Lenders'
security interest in the Capital Stock of the Foreign
Subsidiaries (other than with respect to those Foreign
Subsidiaries listed on Schedule 5.14(c).
(d) The Agents shall have received (i) an opinion of Xxxxxxxx
Xxxx & Xxxxx LLP, counsel to the Borrower and the Subsidiaries,
substantially in the form of Exhibit F hereto dated the Closing Date
and addressed to the Agents and the Lenders, and (ii) opinions of Doser
Amereller Xxxxx, German counsel to the Borrower and the German
Subsidiary, and Xxxxxxx & Xxxxxxx, English counsel to the Borrower and
the UK Subsidiary, each in form and substance acceptable to the Agents,
dated the Closing Date and addressed to the Agents and the Lenders.
(e) The Agents shall have received counterparts of the
Guarantee Agreement duly executed by the Guarantors and the
Administrative Agent dated as of
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the Closing Date and the Indemnity, Subrogation and Contribution
Agreement duly executed by the Borrower, the Guarantors and the
Administrative Agent dated as of the Closing Date.
(f) The Agents shall have received:
(i) an Officer's Certificate, dated the Closing Date
and signed by a Responsible Officer of each of the Borrower
and the Subsidiaries confirming compliance with the conditions
precedent set forth in subparagraphs (h), (i), (j), (k) and
(l) of this Section 4.01 and in subparagraphs (b), (c) and (d)
of Section 4.02;
(ii) a copy of the long form certificate of
incorporation or other constitutive documents, including all
amendments thereto, of each of the Borrower, the Domestic
Subsidiaries and all Foreign Subsidiaries not listed on
Schedule 5.14(a), certified as of a recent date by the
Secretary of State (or comparable authority whether domestic
or foreign (where available)) of the jurisdiction of its
organization, and a certificate as to the good standing of
each such party as of a recent date, from such Secretary of
State (or other domestic or foreign authority (where
available));
(iii) a certificate of the Secretary or Assistant
Secretary of each of the Borrower, the Domestic Subsidiaries
and all Foreign Subsidiaries not listed on Schedule 5.14(b),
dated the Closing Date and certifying (A) that attached
thereto is a true and complete copy of the by-laws or
comparable governing instruments of such party as in effect on
the Closing Date and at all times since a date prior to the
date of the resolutions described in clause (B) below, (B)
that attached thereto is a true and complete copy of
resolutions duly adopted by the Board of Directors or
comparable governing body of such party (or, in the case of
any partnership, of the general partner of such party)
authorizing the execution, delivery and performance of the
Loan Documents to which such party is or will be a party, and,
in the case of the Borrower, the extensions of credit
hereunder, and that such resolutions have not been modified,
rescinded or amended and are in full force and effect, (C)
that the certificate of incorporation or other constitutive
documents of such party have not been amended since the date
of the last amendment thereto shown on the certificate of good
standing furnished pursuant to clause (ii) above, and (D) as
to the incumbency and specimen signature of each officer
executing any Loan Document or any other document delivered in
connection herewith on behalf of such party; and
(iv) such other documents, opinions, certificates and
agreements in connection with the Facilities, in form and
substance satisfactory to the Agents, as it shall reasonably
request.
(g) The Borrower shall have paid all Fees and other amounts
due and payable to the Agents or any Lender on or prior to the Closing
Date, including
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reimbursement or payment of all out-of-pocket expenses required to be
reimbursed or paid by the Borrower under the Fee Letter or any Loan
Document.
(h) The Agents shall have received evidence that the Existing
Debt has been repaid in full and all credit facilities, security
interests and other agreements related thereto have been terminated and
discharged in a manner satisfactory to the Agents, NCMI and the
Lenders, and that the Borrower and the Subsidiaries shall have no
Indebtedness or other liabilities other than Permitted Indebtedness and
liabilities disclosed on Schedule 3.05(b).
(i) No Material Adverse Change shall have occurred since
August 31, 1996.
(j) The Lenders shall have received evidence satisfactory to
each of them that the Borrower and the Subsidiaries have obtained all
governmental (whether domestic or foreign), shareholder and third party
consents and approvals and expiration of all applicable waiting or
appeal periods necessary or, in the opinion of the Lenders, appropriate
in connection with the Facilities and the pledge of the Collateral for
the Facilities without any action being taken that could restrain,
prevent or impose any material adverse condition on the Borrower, the
Subsidiaries (or any of them) or the transactions contemplated hereby
or that could seek or threaten any of the foregoing, and no law or
regulation or condition shall be applicable which in the judgment of
the Lenders could have such effect.
(k) There shall not exist any action, suit, investigation or
proceeding pending or threatened in any court or before any arbitrator
or Governmental Authority that purports to adversely affect the
Facilities or that could have a Material Adverse Effect.
(l) None of the Borrower and the Subsidiaries shall be in
violation of any law, rule or regulation, or in default with respect to
any judgment, writ, injunction or decree of any Governmental Authority,
where such violation or default could reasonably be expected to result
in a Material Adverse Effect.
(m) The Agents and the Lenders shall have received information
satisfactory to them regarding litigation, tax, tax sharing
arrangements, management arrangements, accounting, labor, insurance,
pension liabilities (actual or contingent), employee benefits
(including post-retirement benefits), real estate leases, Material
Contracts, debt agreements, intercompany agreements, property
ownership, transaction with affiliates and contingent liabilities of
the Borrower and the Subsidiaries.
(n) The Agents and the Lenders shall have received, and in
each case approved the consolidated financial statements of the
Borrower for the most recent three Fiscal Years, including balance
sheets and statements of operation and cash flows, audited by
independent public accountants of recognized national standing and
prepared in conformity with GAAP.
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(o) The Agents and the Lenders shall have completed, and shall
be satisfied with the results of, their respective due diligence
investigations of the business, assets, operations, properties,
condition (financial and otherwise), liabilities (actual and
contingent) and prospects of the Borrower and the Subsidiaries.
(p) The Agents and the Lenders shall be satisfied in all
respects with all agreements and transactions between any of the
Borrower and the Subsidiaries, on the one hand, and any of their
Affiliates and Shareholders, on the other hand, and with all other
material agreements of any of the Borrower and the Subsidiaries.
(q) The Agents and the Lenders shall be satisfied with the
corporate and legal structure and capitalization of the Borrower and
the Subsidiaries.
SECTION 4.02. ALL CREDIT EVENTS. The obligations of the Lenders to make
Loans hereunder, and the obligation of the Issuing Bank to issue Letters of
Credit hereunder, are subject to the satisfaction of the conditions that on the
date of each Borrowing and on the date of issuance of each Letter of Credit:
(a) The Agents shall have received a notice of such Borrowing
as required by Section 2.03 or Section 2.10, or a notice requesting the
issuance of such Letter of Credit as required by Section 2.22(c), or a
notice requesting a Swingline Borrowing as required by Section 2.21(a),
as applicable.
(b) The representations and warranties set forth in Article
III and the representations and warranties of the Borrower and the
Subsidiaries set forth in the other Loan Documents shall be true and
correct in all material respects on and as of the date of such
Borrowing or the date of the issuance of such Letter of Credit with the
same effect as though made on and as of such date, except to the extent
such representations and warranties expressly relate to an earlier date
(in which case such representations and warranties shall be true and
correct in all material respects on and as of such earlier date).
(c) At the time of and immediately after such Borrowing or the
issuance of such Letter of Credit, the aggregate outstanding principal
amount of the Loans of each Class, the Swingline Exposure and the
Letter of Credit Exposure shall not exceed the limitations set forth in
Sections 2.01.
(d) At the time of and immediately after such Borrowing or the
issuance of such Letter of Credit, no Default or Event of Default shall
have occurred and be continuing.
Each Borrowing hereunder and each issuance of a Letter of Credit hereunder shall
be deemed to constitute a representation and warranty by the Borrower on the
date of such Borrowing or issuance of such Letter of Credit as to the matters
specified in paragraphs (b), (c) and (d) of this Section 4.02. For purposes of
this Section 4.02, a "Borrowing" does not include a conversion or continuation
of a previously outstanding Borrowing pursuant to Section 2.10.
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ARTICLE V
AFFIRMATIVE COVENANTS
The Borrower covenants and agrees with each Lender that so long as this
Agreement shall remain in effect and until the Commitments have been terminated
and the Loans, together with interest, Fees and all other Obligations have been
paid in full, all Letters of Credit have been canceled or have expired, and all
amounts drawn thereunder have been reimbursed in full, unless the Required
Lenders shall otherwise consent in writing:
SECTION 5.01. EXISTENCE; BUSINESSES AND PROPERTIES. (a) The Borrower
will, and will cause each of the Subsidiaries to, do or cause to be done all
things necessary to preserve, renew and keep in full force and effect its legal
existence, except as otherwise expressly permitted under Sections 6.05(a) and
(b).
(b) The Borrower will, and will cause each of the Subsidiaries to, do
or cause to be done all things necessary to obtain, preserve, renew, extend and
keep in full force and effect the rights, leases, privileges, licenses, permits,
franchises, authorizations, patents, copyrights, trademarks, trade names and all
other intellectual property material to the conduct of its business; maintain
and operate such business in substantially the manner in which it is presently
conducted and operated; comply in all material respects with all applicable
laws, rules, regulations (including any zoning, building, ordinance, code or
approval or any building permits or any restrictions of record or agreements
affecting real property and excluding environmental laws, which are subject to
the provisions of Section 5.11) and judgments, writs, injunctions, decrees and
orders of any Governmental Authority, whether now in effect or hereafter
enacted; and at all times maintain and preserve all property material to the
conduct of such business and keep such property in good repair, working order
and condition (subject to ordinary wear and tear) and from time to time make, or
cause to be made, all needful and proper repairs, renewals, additions,
improvements and replacements thereto necessary in order that the business
carried on in connection therewith may be properly conducted at all times.
SECTION 5.02. INSURANCE. (a) The Borrower will, and will cause each of
the Subsidiaries to, keep its insurable properties fully insured at all times by
financially sound and reputable insurers; such insurance to include fire and
other risks insured against by extended coverage, public and product liability
insurance against claims for personal injury or death or property damage
occurring upon, in, about or in connection with the use of any properties owned,
occupied or controlled by it and business interruption insurance, and maintain
such other insurance as may be required by law and as is customary in the
industry. The Borrower shall deliver to the Administrative Agent on the Closing
Date a report from the Borrower's independent insurance consultant demonstrating
that the insurance required by this Section 5.02 is in effect.
(b) The Borrower will, and will cause each of the Subsidiaries to, on
the request of the Agents, deliver original or certified copies of all insurance
policies to the Agents.
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(c) In connection with the covenants set forth in this Section 5.02, it
is understood and agreed that:
(i) none of the Agents, the Lenders, the Issuing Bank or their
respective agents or employees shall be liable for any loss or damage
insured by the insurance policies required to be maintained under this
Section 5.02, it being understood that (A) the Borrower and the
Subsidiaries shall look solely to their insurance companies or any
other parties other than the aforesaid parties for the recovery of such
loss or damage and (B) such insurance companies shall have no rights of
subrogation against the Agents, the Lenders, the Issuing Bank or their
agents or employees;
(ii) upon the occurrence of an Event of Default, the Borrower
will permit an insurance consultant retained by the Agents, at the
expense of the Borrower, to review the insurance policies maintained by
the Borrower and the Subsidiaries; and
(iii) the designation of any form, type or amount of insurance
coverage by the Agents or the Lenders under this Section 5.02 shall in
no event be deemed a representation, warranty or advice by the Agents
or the Lenders that such insurance is adequate for the purposes of the
business of the Borrower and the Subsidiaries or the protection of
their properties.
SECTION 5.03. OBLIGATIONS AND TAXES. The Borrower will, and will cause
each of the Subsidiaries to, pay all of its Indebtedness and other obligations
promptly and in accordance with their terms and pay and discharge promptly when
due all taxes, assessments and governmental charges or levies imposed upon it or
upon its income or profits or in respect of its property, before the same shall
become delinquent or in default, as well as all lawful claims for labor,
materials and supplies or otherwise which, if unpaid, might give rise to a Lien
upon such properties or any part thereof; PROVIDED, THAT, such payment and
discharge shall not be required with respect to any such tax, assessment,
charge, levy or claim so long as the validity or amount thereof shall be
contested in good faith by appropriate proceedings diligently pursued and the
Borrower shall have set aside on its books adequate reserves in accordance with
GAAP with respect thereto and such contest operates to suspend collection of the
contested obligation, tax, assessment or charge and enforcement of a Lien.
SECTION 5.04. FINANCIAL STATEMENTS, REPORTS, ETC. The Borrower will
furnish to the Agents and each Lender:
(a) as soon as available, and in any event within 105 days
after the end of each Fiscal Year (i) its consolidated and
consolidating balance sheet and related consolidated and consolidating
statements of operations and cash flows, showing the consolidated and
consolidating financial position of the Borrower and its Consolidated
Subsidiaries as of the close of such Fiscal Year and the consolidated
and consolidating results of their operations and cash flows during
such year, in each case setting forth in comparative form the figures
for the preceding Fiscal Year, with all of the consolidated statements
having been audited by a nationally recognized independent public
accounting firm and accompanied by an opinion of such accountants
(which shall not be qualified in any material respect) to the effect
that such financial
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statements fairly present the consolidated financial position and
consolidated results of operations and cash flows of the Borrower and
its Consolidated Subsidiaries in accordance with GAAP consistently
applied and (ii) copies of its Annual Report on Form 10-K prepared in
compliance with the requirements therefor and filed with the SEC;
(b) as soon as available, and in any event within 45 days
after the end of each of the first three fiscal quarters of each Fiscal
Year (i) its consolidated balance sheet and related consolidated
statements of operations and cash flows, showing the consolidated
financial position of the Borrower and its Consolidated Subsidiaries as
of the close of such fiscal quarter, the consolidated results of their
operations and cash flows during such fiscal quarter and the then
elapsed portion of such Fiscal Year and the consolidated cash flows for
the then elapsed portion of such Fiscal Year, all certified by one of
its Financial Officers as fairly presenting the consolidated financial
position and consolidated results of operations and cash flows of the
Borrower and its Consolidated Subsidiaries in accordance with GAAP
consistently applied, subject to normal year-end audit adjustments and
(ii) copies of its Quarterly Report on form 10-Q prepared in compliance
with the requirements therefore and filed with the SEC;
(c) concurrently with any delivery of financial statements
under paragraph (a) or (b) above, an Officer's Certificate of the
Borrower certifying that no Default or Event of Default has occurred
or, if such a Default or Event of Default has occurred, specifying the
nature and extent thereof and any corrective action taken or proposed
to be taken with respect thereto;
(d) concurrently with any delivery of financial statements
under paragraph (a) or (b) above, a certificate of a Financial Officer
of the Borrower, substantially in the form of Exhibit G hereto, (i)
setting forth computations in reasonable detail satisfactory to the
Administrative Agent demonstrating compliance with the covenants
contained in Sections 6.13 and 6.14, (ii) setting forth computations in
reasonable detail satisfactory to the Administrative Agent
demonstrating the Consolidated Pricing Ratio and (iii) stating whether,
since the date of the most recent Required Financial Statements
previously delivered, there has been any material change in the
generally accepted accounting principles applied in the preparation of
the Borrower's financial statements and, if so, describing such change;
(e) promptly upon their becoming publicly available, copies of
all (i) financial statements, reports, notices and proxy statements
sent or made available by the Borrower to all of its security holders
in compliance with the Exchange Act or any comparable Federal or state
laws relating to the disclosure by any person of information to its
security holders, (ii) all regular and periodic reports and all
registration statements and prospectuses filed by the Borrower with any
securities exchange or with the SEC, and (iii) all press releases and
other statements made available by the Borrower or its Subsidiaries
concerning material developments in the business of the Borrower or any
of the Subsidiaries, as the case may be;
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(f) promptly upon completion, but in any event not later than
45 days after the commencement of each Fiscal Year, a copy of
projections by the Borrower of its consolidated balance sheet and
related consolidated statements of operations and cash flows for such
Fiscal Year (including all material assumptions to such projections)
and a budget for such Fiscal Year, all in form customarily prepared by
the Borrower's management, such projected financial statements to be
accompanied by a certificate of a Financial Officer to the effect that
such projected financial statements have been prepared in good faith,
based on assumptions that the Borrower believes to be reasonable and
based on the best information available to the Borrower and that such
Financial Officer has no reason to believe they are misleading in any
material respect in light of the circumstances existing at the time of
preparation thereof. Further, in connection with any request to extend
the Tranche B Revolving Credit Maturity Date pursuant to Section
2.09(f), the Borrower shall provide the Agents and the Lenders with
preliminary projections and budgets prepared by the Borrower's
management for the coming Fiscal Year;
(g) at least 10 but not more than 30 days prior to any
Permitted Acquisition, financial projections covering the period from
the date of such Permitted Acquisition through the Tranche A Revolving
Credit Maturity Date giving effect to such Permitted Acquisition and
demonstrating compliance by the Borrower on a pro forma basis with the
covenants in Article VI from and after the date of, and after giving
effect to such Permitted Acquisition through the Tranche A Revolving
Credit Maturity Date (such projections to be certified by a Financial
Officer of the Borrower as having been prepared in good faith on the
basis of assumptions believed by the Borrower to be reasonable);
(h) as soon as available, and in any event within 15 days of
receipt, any final management letter issued or provided by the auditors
of the Borrower or any Subsidiary; and
(i) promptly, from time to time, such other information
regarding the operations, business affairs and financial condition of
the Borrower or any Subsidiary, or compliance with the terms of any
Loan Document, as either Agent or any Lender may reasonably request.
SECTION 5.05. OTHER INFORMATION. (a) The Borrower will furnish to the
Agents prompt written notice of the following:
(i) any Default or Event of Default, specifying the nature and
extent thereof and the corrective action (if any) proposed to be taken
with respect thereto;
(ii) the filing or commencement of, or any threat or notice of
intention of any person to file or commence, any action, suit or
proceeding, whether at law or in equity or by or before any
Governmental Authority, against or affecting the Borrower or any of the
Subsidiaries (A) which, if adversely determined, could individually or
in the aggregate, reasonably be expected to have a Material Adverse
Effect or (B) which involves a claim or series of related claims
against the Borrower or any Subsidiary in
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excess of $500,000; PROVIDED, THAT, the Borrower is not required to
give written notice of claims fully covered by third party insurance;
(iii) all matters materially affecting the value,
enforceability or collectibility of any material portion of its assets,
including changes to significant contracts, schedules of equipment,
changes of significant equipment or real property, the reclamation or
repossession of, or the return to the Borrower or any of the
Subsidiaries of, a material amount of goods and material claims or
disputes asserted by any customer or other obligor, which matters could
have a Material Adverse Effect;
(iv) any material adverse change in the relationship between
any of the Borrower and the Subsidiaries, on the one hand, and any of
its respective suppliers, licensors or customers, on the other hand,
which could reasonably be expected to have a Material Adverse Effect;
(v) all proposed amendments to any material agreement relating
to Indebtedness to which the Borrower or any Subsidiary is a party; and
(vi) any development that individually or in the aggregate has
resulted in, or could reasonably be expected to have, a Material
Adverse Effect.
(b) Immediately upon receipt by the Borrower, the Borrower shall
provide the Agents and the Lenders with copies of all notices (including notices
of default), statements and financial information received from any other
creditor or lessor with respect to any item of Indebtedness which, if not paid,
could give rise to an Event of Default or the repossession of material property
from the Borrower or any of the Subsidiaries.
(c) Any notification required by this Section 5.05 shall be accompanied
by a certificate of a Financial Officer of the Borrower setting forth the
details of the specified events and the action which the Borrower proposes to
take with respect thereto.
SECTION 5.06. ERISA. (a) The Borrower will, and will cause each of the
Subsidiaries to, comply in all material respects with the applicable provisions
of ERISA and the Code.
(b) The Borrower will promptly give notice to the Agents and each
Lender of the following events, as soon as possible and in any event within 30
days after the Borrower knows or has reason to know thereof: (i) the occurrence
or expected occurrence of any Reportable Event with respect to any Plan, a
failure to make any required contribution to a Plan, any filing by the Borrower
with the PBGC of a notice of intent to terminate a Plan, any receipt by the
Borrower of notice from the PBGC of the intention of the PBGC to terminate a
Plan or appoint a trustee to administer a Plan, any Lien in favor of the PBGC or
a Plan, or any withdrawal from, or the termination, reorganization or insolvency
(within the meaning of such terms as used in ERISA) of, any Multiemployer Plan;
or (ii) the institution of proceedings or the taking of any other action by the
PBGC or the Borrower or any Commonly Controlled Entity or any Multiemployer Plan
with respect to the withdrawal
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from, or the termination, reorganization or insolvency (within the meaning of
such terms as used in ERISA) of, any Single Employer Plan or Multiemployer Plan.
SECTION 5.07. MAINTAINING RECORDS; ACCESS TO PROPERTIES AND
INSPECTIONS. The Borrower will, and will cause each of the Subsidiaries to, keep
proper books of record and account in which full, true and correct entries in
conformity with GAAP and all requirements of law are made of all dealings and
transactions in relation to its business and activities. The Borrower will, and
will cause each of the Subsidiaries to, permit any representatives designated by
either Agent or any Lender to visit and inspect the financial records and the
properties of the Borrower or any Subsidiary at reasonable times and as often as
reasonably requested, and to make extracts from and copies of such financial
records, and permit any representatives designated by either Agent or any Lender
to discuss the affairs, finances and condition of the Borrower or any Subsidiary
with the officers thereof and independent accountants therefor (with
representatives of the Borrower present unless an Event of Default or Default
has occurred and is continuing).
SECTION 5.08. USE OF PROCEEDS. The Borrower will use the proceeds of
the Loans and request the issuance of Letters of Credit only for the purposes
set forth in Section 3.13.
SECTION 5.09. INTEREST RATE PROTECTION AGREEMENTS. After the Closing
Date in the event the Borrower elects to enter into and thereafter maintain in
full force and effect Interest Rate Protection Agreements, then such Interest
Rate Protection Agreements shall be at rates and on terms reasonably
satisfactory to the Agents and the Borrower; PROVIDED, THAT, it is understood
and agreed that any Interest Rate Protection Agreement entered into with any
person other than a Lender must be unsecured. The Borrower will promptly deliver
evidence of the execution and delivery of such Interest Rate Protection
Agreements to the Administrative Agent.
SECTION 5.10. FISCAL YEAR. The Borrower will cause its Fiscal Year to
end on August 31 in each year. The Borrower will cause each Subsidiary to cause
their respective Fiscal Years to end on the date in each year that is the date
of such Subsidiaries' Fiscal Year end in effect as of the Closing Date.
SECTION 5.11. COMPLIANCE WITH ENVIRONMENTAL LAWS; PREPARATION OF
ENVIRONMENTAL REPORTS. (a) The Borrower will, and will cause each Subsidiary to,
comply, and use its best efforts to cause all lessees and other persons
occupying the properties owned or leased by the Borrower and the Subsidiaries to
comply, in all material respects with all environmental laws and environmental
permits applicable to its operations and properties except to the extent that
the failure to comply therewith could not reasonably be expected to result in
liability in excess of $500,000; obtain and renew all material environmental
permits necessary for its operations and properties; and conduct any remedial
action required under, and in accordance with, environmental laws, except to the
extent that: (i) the cost of such remedial action could not reasonably be
expected to exceed $500,000; or (ii) the necessity of any such remedial action
is being contested in good faith by appropriate proceedings timely instituted
and diligently pursued and in the manner provided by applicable law.
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(b) If a Default or Event of Default caused by reason of a breach of
Section 3.17 or 5.11(a) shall have occurred and be continuing, or if the laws of
the United States or any state in which the Borrower or any of the Subsidiaries
leases or owns property provide that a Lien upon the property of the Borrower or
any of the Subsidiaries may be obtained for the removal of Hazardous Materials
which have been released, at the request of the Required Lenders through the
Administrative Agent, the Borrower will provide to the Lenders within 45 days
after such request, at the expense of the Borrower, an environmental site
assessment report for the properties which are the subject of such Default or
Event of Default prepared by an environmental consulting firm reasonably
acceptable to the Agents and indicating the presence or absence of Hazardous
Materials and the estimated cost of any compliance or remedial action in
connection with such properties. To the extent any such Hazardous Materials are
located therein or thereunder that either (i) subjects a property to Lien or
(ii) requires removal to safeguard the health of any person, the Borrower shall,
and shall cause each of the Subsidiaries to, remove, or cause to be removed,
such Lien and such Hazardous Materials at the Borrower's expense.
SECTION 5.12. SUBSIDIARIES. The Borrower shall cause each and every
Domestic Subsidiary that is (i) existing as of the Closing Date, to execute and
deliver a Guarantee Agreement, Indemnity, Subrogation and Contribution
Agreement, Intercompany Note, Pledge Agreement and other Collateral Documents as
may be required by the Agents, and (ii) organized or acquired subsequent to the
date hereof, to execute and deliver an Intercompany Note and a Supplemental
Agreement immediately upon and contemporaneously with their organization or
acquisition. The Borrower will cause each and every Foreign Subsidiary that is
existing as of the Closing Date, or organized or is acquired subsequent thereto,
to (x) execute and deliver an Intercompany Note in accordance with the terms of
Section 5.14; PROVIDED, THAT, Foreign Subsidiaries that are not Wholly Owned
Subsidiaries shall not be required to execute an Intercompany Note unless and
until the applicable Foreign Subsidiary incurs Intercompany Indebtedness to the
Borrower or a Wholly Owned Subsidiary that is a Domestic Subsidiary, at which
time and as a condition to that borrowing, such Foreign Subsidiary shall execute
and deliver an Intercompany Note, and (y) in the event any Foreign Subsidiary
borrows funds (as permitted hereunder) in excess of $250,000 from the Borrower
or any Domestic Subsidiary, contemporaneously with such borrowing, deliver an
opinion of counsel reasonably required by the Agents regarding the
enforceability thereof and the Lender's security interest therein. Nothing in
this Section 5.12 shall be deemed to imply that any such acquisition or
organization of a Subsidiary is permitted under this Agreement.
SECTION 5.13. FURTHER ASSURANCES. Within 10 days after a request by
either of the Agents or the Required Lenders, the Borrower will, and will cause
each Subsidiary to, execute any and all further documents, financing statements,
agreements and instruments, and take all further action (including filing
Uniform Commercial Code and other financing statements that may be required
under applicable law, or that the Required Lenders or the Agents may reasonably
request), in order to effectuate the transactions contemplated by the Loan
Documents and in order to grant, maintain, preserve, protect and perfect the
validity and first priority of the security interests created or intended to be
created by the Collateral Documents. Such security interests and Liens will be
created under the Collateral Documents and other security agreements,
instruments and documents in form and substance satisfactory to the Agents, and
the Borrower shall deliver or cause to be delivered to the
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Lenders all such instruments and documents (including legal opinions and lien
searches) as the Agents shall reasonably request to evidence compliance with
this Section 5.13. The Borrower agrees to provide such evidence as the Agents
shall reasonably request as to the perfection and priority status of each such
security interest and Lien.
SECTION 5.14. CERTAIN POST-CLOSING COVENANTS. Within 30 days from the
Closing Date the Borrower agrees to (a) with respect to the Foreign Subsidiaries
listed on Schedule 5.14(a), deliver the certificates and documents (translated
into English) that are listed and described in Section 4.01(f)(ii), (b) with
respect to the Foreign Subsidiaries that are listed on Schedule 5.14(b), deliver
the documents and instruments listed and described by Section 4.01(f)(iii) and
(c) with respect to the Foreign Subsidiaries that are listed on Schedule
5.14(c), deliver certificates of Capital Stock, stock powers and other documents
and instruments described in Section 4.01(c)(iii) and/or such other evidence as
may be required pursuant to Section 4.01(c)(vii) to evidence that the
Administrative Agent (on behalf of the Lenders) holds a perfected, first
priority Lien on the Capital Stock of such Foreign Subsidiaries. With respect to
those Foreign Subsidiaries that are Wholly Owned Subsidiaries and listed on
Schedule 5.14(b), the Borrower agrees to cause such Foreign Subsidiaries to
execute and deliver to the Borrower, and then to the Administrative Agent
pursuant to the Pledge Agreement, all within 30 days from the Closing Date,
Intercompany Notes executed on behalf of such Foreign Subsidiaries. With respect
to those Foreign Subsidiaries that are Restricted Subsidiaries and listed on
Schedule 5.14(c), the Borrower agrees to deliver a letter from its counsel in
each applicable jurisdiction setting forth the steps and procedures required to
perfect a Lien on the Capital Stock of that Foreign Subsidiary pursuant to the
laws of such jurisdiction. It is understood and agreed that, with respect to any
Foreign Subsidiary listed on Schedule 5.14(a) (b) or (c), until the covenants
and requirements set forth in this Section 5.14 with respect to such Foreign
Subsidiary have been satisfied in full, in the reasonable opinion of the Agents,
such Foreign Subsidiary shall not be deemed to be a "Foreign Subsidiary" for
purposes of activities permitted pursuant to Article 6 of this Agreement (other
than Sections 6.01(k) and 6.01(l)).
ARTICLE VI
NEGATIVE COVENANTS
The Borrower covenants and agrees with each Lender that so long as this
Agreement shall remain in effect and until the Commitments have been terminated
and the Loans, together with interest, Fees and all other Obligations have been
paid in full, all Letters of Credit have been canceled or have expired and all
amounts drawn thereunder have been reimbursed in full, unless the Required
Lenders shall otherwise consent in writing:
SECTION 6.01. INDEBTEDNESS. The Borrower will not, and will not cause
or permit any of the Subsidiaries to, incur, create, issue, assume, guarantee or
permit to exist any Indebtedness or Disqualified Stock, except:
(a) Indebtedness or Disqualified Stock existing on the Closing
Date that is set forth in Schedule 6.01 (but not any extension,
renewal, increase or refinancing
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thereof, other than the refinancing of Indebtedness permitted under
Section 6.01(d) (i) if such refinancing is within the terms and limits
of Section 6.01(d)(i));
(b) Indebtedness created and evidenced by the Loan Documents;
(c) Intercompany Indebtedness existing on the Closing Date
that is set forth on Schedule 6.01, or arising thereafter; PROVIDED,
THAT (i) in the case of Intercompany Indebtedness existing on the
Closing Date, all such Indebtedness is listed on Schedule 6.01, (ii) in
the case of Intercompany Indebtedness arising after the Closing Date,
all such Indebtedness is evidenced by Intercompany Notes pledged to the
Agents and the Lenders pursuant to the Pledge Agreement and is
permitted pursuant to Section 6.04(b); PROVIDED, THAT, the aggregate
Intercompany Indebtedness of Foreign Subsidiaries to the Borrower or
any Domestic Subsidiary shall not exceed $20,000,000 at any time and,
contemporaneously with any loan or advance to a Foreign Subsidiary, if
required by the terms of Section 5.12, the Borrower shall deliver or
cause to be delivered to the Administrative Agent an opinion of counsel
to such Foreign Subsidiary, in form and substance reasonably
satisfactory to the Administrative Agent, stating that the applicable
Intercompany Note is the valid, binding and enforceable obligation of
such Foreign Subsidiary and (iii) Intercompany Indebtedness that is
created between Domestic Subsidiaries that are Wholly Owned
Subsidiaries is not required to be evidenced by Intercompany Notes;
PROVIDED, THAT, such Indebtedness (i) is incurred in good faith, in the
ordinary course of business, and for a legitimate company purpose, (ii)
is unsecured and (iii) is, by its terms, not assignable, transferrable,
sellable, or otherwise pledgeable to any third party;
(d) (i) Indebtedness for borrowed money of Foreign
Subsidiaries to unrelated third parties (including guarantees with
respect thereto by the Borrower or any other Subsidiaries, as long as
those guarantees are unsecured (except for Liens on the assets (other
than Capital Stock) of the applicable Foreign Subsidiary)) that does
not exceed $15,000,000 in an aggregate amount outstanding at any time,
(which Indebtedness includes the Indebtedness described in item 4 of
Schedule 6.01) and (ii) in the event the Borrower acquires a majority
(or more) of the total outstanding Capital Stock of the Indian
Affiliate as permitted by Section 6.04(g), then the Indebtedness for
borrowed money of the Indian Affiliate existing as of the Closing Date
that does not exceed $6,000,000;
(e) Indebtedness of the Borrower or any Wholly Owned
Subsidiary that is a Domestic Subsidiary to Foreign Subsidiaries;
PROVIDED, THAT such Indebtedness is unsecured and is created and
outstanding under an agreement or instrument pursuant to which such
Indebtedness is subordinated to the Obligations secured under the
Collateral Documents at least to the extent provided in the instrument
attached hereto as Exhibit L;
(f) Indebtedness owed to any person providing worker's
compensation, health, disability or other employee benefits, property,
casualty or liability insurance to the Borrower or any Subsidiary, so
long as such Indebtedness shall not be in excess of the amount of the
unpaid cost or estimated or negotiated amounts of, and shall be
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incurred only to defer the cost or estimated or negotiated amounts of,
such insurance for the applicable insurance period for which such
Indebtedness is incurred and such Indebtedness shall be outstanding
only during such period (which period shall not extend beyond the date
that is two years after the date on which such Indebtedness is
incurred);
(g) Indebtedness (including Capital Lease Obligations and
Purchase Money Indebtedness) issued or assumed as the deferred purchase
price of property or services (excluding trade accounts payable arising
in the ordinary course of business and paid in accordance with
customary trade terms) in a principal amount at any time outstanding
not in excess of $5,000,000 and incurred to finance Capital
Expenditures permitted by Section 6.13;
(h) Interest Rate Protection Agreements entered into in
accordance with Section 5.09;
(i) Indebtedness for advances permitted by Sections 6.04(d);
(j) Indebtedness issued to a seller or assumed as the deferred
purchase price of a person (or to which the acquired person is
subject), business or asset in connection with a Permitted Acquisition
pursuant to Section 6.04(g); PROVIDED, THAT (i) such Indebtedness is
not secured by a Lien on any assets other than assets acquired in such
Permitted Acquisition, (ii) any Indebtedness issued or assumed pursuant
to this Section 6.01(j) may not be refinanced in any manner except with
Revolving Loans and (iii) the aggregate principal amount of all such
Indebtedness outstanding at any time shall not exceed $10,000,000;
(k) Indebtedness from one Wholly Owned Foreign Subsidiary to
another Wholly Owned Foreign Subsidiary; PROVIDED, THAT, such
Indebtedness (i) is incurred in good faith, in the ordinary course of
business, and for a legitimate company purpose, (ii) is unsecured and
(iii) is, by its terms, not assignable, transferrable, sellable, or
otherwise pledgeable to any third party;
(l) Indebtedness of Foreign Subsidiaries pursuant to foreign
currency hedge contracts entered into in the ordinary course of
business; and
(m) Indebtedness of Glasteel Parts and Services, Inc. that
exists solely as a result of their general partnership interest in
Universal Glasteel Equipment, an Ohio general partnership ("UGE")
resulting from Indebtedness for borrowed money incurred by UGE for the
purpose of making a loan to Galeglass, Inc. (or an Affiliate thereof)
in an amount not to exceed $2,000,000.
SECTION 6.02. NEGATIVE PLEDGE. The Borrower will not, and will not
cause or permit any of the Subsidiaries to, create, incur, assume or permit to
exist any Lien on any property or assets (including Capital Stock or other
securities of any Subsidiary or other person) now owned or hereafter acquired by
it or on any income or revenues or rights in respect of any thereof, except:
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(a) Liens existing on the Closing Date and that are set forth
in Schedule 6.02, provided that such Liens secure only those
obligations which they secure on the Closing Date;
(b) Liens in favor of the Administrative Agent on behalf of
the Secured Parties created by the Collateral Documents;
(c) Liens for taxes not yet due or which are being contested
in compliance with Section 5.03;
(d) carriers', warehousemen's, mechanic's, materialmen's,
repairmen's or other like Liens arising in the ordinary course of
business and securing obligations that are not due or which are being
contested in compliance with Section 5.03;
(e) pledges and deposits made in the ordinary course of
business in compliance with workmen's compensation, unemployment
insurance and other social security laws or regulations;
(f) deposits to secure the performance of bids, trade
contracts (other than for Indebtedness), leases (other than Capital
Lease Obligations), statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature incurred in
the ordinary course of business;
(g) zoning restrictions, easements, rights-of-way and
restrictions on use of real property existing as of the Closing Date or
incurred in the ordinary course of business which, in the aggregate,
are not substantial in amount and do not materially detract from the
value of the property subject thereto or interfere with the ordinary
conduct of the business of the Borrower or any of the Subsidiaries;
(h) unperfected Liens arising by operation of law under
Article 2 of the Uniform Commercial Code in favor of unpaid sellers or
prepaying buyers of goods relating to amounts that are not past due in
accordance with their respective terms of sale;
(i) purchase money security interests in real property,
improvements thereto or equipment hereafter acquired (or, in the case
of improvements, constructed) by the Borrower or any Subsidiary;
PROVIDED, THAT (i) such security interests secure Indebtedness
permitted by Section 6.01(g), (ii) such security interests are
incurred, and the Indebtedness secured thereby is created, within 90
days after such acquisition (or completion of construction), (iii) the
Indebtedness secured thereby does not exceed 100% of the lesser of the
cost or the fair market value of such real property, improvements or
equipment at the time of such acquisition (or completion of
construction) and (iv) such security interests do not apply to any
other property or assets of the Borrower or any Subsidiary;
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(j) leases or subleases which are entered into in the ordinary
course of the business and which do not interfere in any material
respect with the ordinary conduct of the business of the Borrower or
its Subsidiaries;
(k) Liens existing on any asset (other than Capital Stock)
acquired in a Permitted Acquisition or on the assets (other than
Capital Stock) of any person acquired in a Permitted Acquisition;
PROVIDED, THAT, (i) the Indebtedness secured by any such Lien is
permitted under Section 6.01(j), (ii) any such Lien is created at the
time of completion of the Permitted Acquisition, (iii) the Indebtedness
secured thereby does not exceed 100% of the lesser of the cost or the
fair market value of the asset acquired at the time of the Permitted
Acquisition and (iv) such Liens are confined solely to the asset
acquired (or assets of the person acquired) and do not apply to any
other asset of the Borrower or any Subsidiary; and
(l) Liens on assets (other than Capital Stock) of Foreign
Subsidiaries securing Indebtedness or guarantees permitted under
Section 6.01(d).
SECTION 6.03. SALE AND LEASE-BACK TRANSACTIONS. The Borrower will not,
and will not cause or permit any of the Subsidiaries to, enter into any
arrangement, directly or indirectly, with any person whereby it shall sell or
transfer any property, real or personal, used or useful in its business, whether
now owned or hereafter acquired, and thereafter rent or lease such property or
other property which it intends to use for substantially the same purpose or
purposes as the property being sold or transferred; PROVIDED, THAT, the Borrower
may enter into such a transaction if, and only if, a legitimate tax purpose
exists for such transaction and the aggregate fair market value of the assets
that are the subject of such transaction or transactions does not exceed
$5,000,000 at any one time.
SECTION 6.04. INVESTMENTS, LOANS AND ADVANCES. The Borrower will not,
and will not cause or permit any of the Subsidiaries to, purchase, hold or
acquire any Capital Stock, evidences of indebtedness or other securities of,
make or permit to exist any loans, extensions of credit or advances to, make
guarantees in favor of, or make or permit to exist any other investment, capital
contribution or other interest in, any other person, except:
(a) (i) equity investments existing on the Closing Date by the
Borrower in the Subsidiaries and listed on Schedule 6.04, (ii)
contributions of equity made after the Closing Date to Wholly Owned
Subsidiaries of the Borrower that do not exceed $1,000,000 in the
aggregate during any Fiscal Year, as long as such contributions are not
made for the purpose of funding an acquisition not otherwise permitted
hereunder, and (iii) treasury stock held by the Borrower and its
Subsidiaries on the Closing Date and listed on Schedule 6.04 or
acquired by the Borrower or a Subsidiary as permitted pursuant to
Section 6.06(a);
(b) loans and advances made after the Closing Date by the
Borrower or any Wholly Owned Subsidiary that is a Domestic Subsidiary
to any Subsidiary or the Borrower; PROVIDED, THAT, any such loan or
advance (i) is evidenced by an Intercompany Note pledged and delivered
to the Administrative Agent on behalf of the Secured Parties pursuant
to the Pledge Agreement (other than as excepted in
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clause (iii) of Section 6.01(c)), and (ii) is otherwise permitted
pursuant to Section 6.01(c);
(c) trade accounts receivable (and related notes and
instruments) arising in the ordinary course of business consistent with
past practices;
(d) (i) advances to employees for home-swing loans and moving
and travel expenses in the ordinary course of business consistent with
past practices, and guarantees by the Borrower in connection with
home-swing loans of third parties to employees, that, in the aggregate,
do not exceed $1,000,000 at any one time outstanding and (ii) loans to
executive officers of the Borrower to assist in the payment of taxes
resulting from an election made under Section 83(b) of the Code which
shall not exceed $500,000 in the aggregate at any one time outstanding;
(e) Cash Equivalents;
(f) securities held by the Borrower or any of the Subsidiaries
prior to the Closing Date and listed in Schedule 6.04;
(g) one or more non-hostile acquisitions by the Borrower or
any Qualified Acquisition Subsidiary of assets or Capital Stock (other
than Margin Stock) of any other person (such assets, in the case of an
asset acquisition, or person, in the case of the acquisition of Capital
Stock, is referred to herein as the "ACQUIRED ENTITY") so long as (i)
in the case of an acquisition of assets, such assets are to be used,
and in the case of an acquisition of Capital Stock, the person so
acquired is engaged, in a business generally considered to be a part of
the fluids management industry, (ii) the Borrower shall have provided
the Lenders with the financial projections required by Section 5.04(g)
and such other information as the Lenders shall reasonably request,
(iii) on the date of such acquisition and immediately after giving
effect thereto, the representations and warranties set forth in Article
III shall be true and correct in all material respects with the same
effect as though made on and as of such date and no Default or Event of
Default shall exist, (iv) the Consolidated Leverage Ratio shall not
exceed 3.75 to 1.00 calculated on a pro forma basis, (v) the
Consolidated Fixed Charge Coverage Ratio shall not be less than 2.00 to
1.00 calculated on a pro forma basis, (vi) in the case of an
acquisition of Capital Stock of a person, then simultaneously with any
such acquisition, the Administrative Agent for the benefit of the
Secured Parties shall be granted (A) in the case of a person organized
under the laws of the United States, any State thereof or the District
of Columbia, a first priority security interest in all of such Capital
Stock acquired by the Borrower or any Qualified Acquisition Subsidiary
as part of such acquisition, and (B) in the case of a person organized
under the laws of a jurisdiction other than the United States, any
State thereof or the District of Columbia, that will be acquired
directly by the Borrower or a Domestic Subsidiary, a first priority
security interest in 65% of all of the Capital Stock of the person so
acquired, and in all cases the Borrower shall, and shall cause any
applicable Subsidiary to, execute any documents (including a
Supplemental Agreement, Intercompany Note, financing statements and
other Collateral Documents) and take all action (including filing
financing statements and
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obtaining and providing consents, and legal opinions) that may be
required under applicable law, or that the Agents may request, in order
to grant, preserve, protect and perfect such security interest, (vii)
in the case of an acquisition of Capital Stock of a person, the
Borrower acquires directly or indirectly 100% of the Capital Stock of
such person; PROVIDED, THAT, with respect to the Indian Affiliate, the
Borrower may acquire less than all but at least a majority interest in
the Indian Subsidiary for a total aggregate consideration not to exceed
$10,000,000, and (viii) the aggregate Fair Market Value of
consideration, whether payable upon consummation thereof or in the form
of earn-outs, non-competes or other deferred payment arrangements, for
all such acquisitions made during any Fiscal Year, including cash,
securities, other property and the assumption of Indebtedness (if
permitted), shall not exceed the difference between (A) the greater of
(x) $25,000,000 or (y) 20% of the Borrower's Consolidated Net Worth as
of the end of the preceding Fiscal Year, and (B) the amount of any
Indebtedness incurred as permitted pursuant to Section 6.01(j) that
remains outstanding at the time of determination (any acquisition
satisfying each of the criteria set forth in the preceding clauses (i)
through (viii) being referred to herein as a "PERMITTED ACQUISITION");
(h) loans and advances made after the Closing Date by (i) any
Foreign Subsidiaries to the Borrower or any Wholly Owned Subsidiary
that is a Domestic Subsidiary that are permitted pursuant to Section
6.01(e) and (ii) any Wholly Owned Foreign Subsidiary to another Wholly
Owned Foreign Subsidiary that are permitted pursuant to Section
6.01(k);
(i) loans to any Affiliate of the Borrower or its
Subsidiaries; PROVIDED, THAT, (i) such loans do not exceed an aggregate
amount equal to $1,000,000 at any one time outstanding, and (ii) all
such loans are evidenced by Intercompany Notes pledged to the Agents
and the Lenders pursuant to the Pledge Agreement; and
(j) a contribution of assets to the Borrower or any Wholly
Owned Subsidiary that is a Domestic Subsidiary to the extent permitted
by Section 6.05(g).
SECTION 6.05. MERGERS, CONSOLIDATIONS, DISPOSITIONS AND ACQUISITIONS.
The Borrower will not, and will not cause or permit any of the Subsidiaries to,
(i) merge into or consolidate with any other person, (ii) permit any other
person to merge into or consolidate with it, (iii) sell, transfer, lease or
otherwise dispose of (in one transaction or in a series of transactions) all or
any substantial part of its assets (whether now owned or hereafter acquired)
(iv) issue, sell, transfer, lease or otherwise dispose of any Capital Stock of
any Subsidiary to, or permit any Subsidiary to accept any capital contribution
from, any person, or (v) purchase, lease or acquire (in one transaction or a
series of transactions) all or any substantial part of the assets of any other
person, except that:
(a) any Foreign Subsidiary may be merged, liquidated or
consolidated with or into another Foreign Subsidiary if, immediately
after giving effect to such transaction, no condition or event shall
exist which constitutes a Default or Event of Default;
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(b) any Subsidiary may be merged, liquidated or consolidated
with or into the Borrower or any Domestic Subsidiary that is a Wholly
Owned Subsidiary if, immediately after giving effect to such
transaction, no condition or event shall exist which constitutes a
Default or Event of Default and the Borrower or such Domestic
Subsidiary, as applicable, is the surviving entity;
(c) the Borrower and any of the Subsidiaries may sell
inventory in the ordinary course of business for fair value and on an
arm's-length basis (and as may be permitted pursuant to Section 6.10)
and may purchase inventory in the ordinary course of business;
(d) the Borrower and any of the Subsidiaries may sell damaged,
worn out or obsolete tangible assets or scrap in the ordinary course of
business and in a commercially reasonable manner, so long as the Net
Cash Proceeds of any such disposition are applied as required by
Section 2.11(e);
(e) the foregoing shall not be deemed violated by any casualty
or condemnation affecting assets of the Borrower or any Subsidiary, so
long as (i) the Borrower or its applicable Subsidiary reinvests the Net
Cash Proceeds of any such casualty of condemnation within 270 days of
the date of such casualty or condemnation (or if the Required Lenders
agree to a longer period, such longer period) in assets of a like kind
and character to those that were destroyed or taken or (ii) if the
Borrower or its applicable Subsidiary does not reinvest the Net Cash
Proceeds of any such casualty or condemnation as provided in the
preceding clause (i) within the period provided in clause (i), the Net
Cash Proceeds thereof are immediately applied as required by Section
2.11(e);
(f) the Borrower and any of the Subsidiaries may sell, lease,
transfer, assign or dispose of assets to any other person to the extent
that the aggregate Net Cash Proceeds from such sale, lease, transfer,
assignment or other disposition to such person do not exceed $500,000,
so long as (I) the fair market value of all property disposed of
pursuant to this clause (f) does not exceed $2,000,000 in the aggregate
in any Fiscal Year and (II) the Net Cash Proceeds of any such
disposition are applied as required by Section 2.11(e);
(g) any of the Subsidiaries may transfer assets consisting of
plant, property and equipment (in accordance with GAAP) to the Borrower
or any Wholly Owned Subsidiary which is a Domestic Subsidiary;
(h) the Borrower or a Qualified Acquisition Subsidiary may
make Permitted Acquisitions to the extent permitted by Section 6.04(g);
(i) the Borrower may make equity contributions to Wholly Owned
Subsidiaries to the extent permitted by Section 6.04(a)(ii);
(j) the Borrower and the Subsidiaries may make Capital
Expenditures to the extent permitted by Section 6.13;
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(k) the Borrower and any applicable Subsidiary may acquire the
Capital Stock of the Borrower or the Subsidiaries to the extent
permitted by Section 6.06(a); and
(l) a non-Wholly owned Foreign Subsidiary may issue Capital
Stock to third parties as long as (i) the proceeds thereof are used for
working capital purposes of such Subsidiary or to finance the
acquisition of capital assets in the ordinary course of business; and
(ii) the issuer remains a majority-owned Subsidiary of the Borrower
after the issuance of such Capital Stock.
SECTION 6.06. DIVIDENDS, DISTRIBUTIONS AND OTHER RESTRICTED PAYMENTS.
(a) The Borrower will not, and will not cause or permit any of the Subsidiaries
to, (i) declare or pay, directly or indirectly, any dividend or make any other
distribution (by reduction of capital or otherwise and including any tax sharing
or indemnification payments), whether in cash, property, securities or a
combination thereof, with respect to any Capital Stock of the Borrower or any of
the Subsidiaries, (ii) except as expressly permitted pursuant to Section 6.06(b)
below and except for Capital Stock reacquired by the Borrower in connection with
the exercise of stock options granted pursuant to employee or director stock
option plans of the Borrower or in connection with withholding taxes due under
any stock plan in which employees or directors participate, directly or
indirectly redeem, purchase, retire or otherwise acquire for value, any Capital
Stock of the Borrower or any of the Subsidiaries, whether such acquisition is
made at the option of the Borrower or such Subsidiary or at the option of the
holder of such Capital Stock and whether or not such acquisition is required
under the terms and conditions applicable to such Capital Stock or set aside any
amount for any such purpose, (iii) release, cancel, compromise or forgive in
whole or in part any Indebtedness evidenced by the Intercompany Notes or (iv)
directly or indirectly redeem, purchase, prepay, retire, defease or otherwise
acquire for value any Indebtedness (other than Obligations), whether such
acquisition is made at the option of the Borrower or such Subsidiary or at the
option of the holder of such Indebtedness and whether or not such acquisition is
required under the terms and conditions applicable to such Indebtedness, or set
aside any amount for any such purpose, except for repayments of principal of any
such Indebtedness in accordance with the scheduled amortization thereof;
PROVIDED, THAT (x) any Subsidiary may declare and pay dividends or make other
distributions to the Borrower or any Wholly Owned Subsidiary and (y) as long as
no Event of Default then exists, the Borrower may pay cash dividends to the
holders of its Capital Stock and repurchase or redeem Capital Stock of the
Borrower in each Fiscal Year of the Borrower that do not exceed the greater of
(x) twenty percent (20%) of the Borrower's Consolidated Net Income for the
preceding Fiscal Year or (y) $2,500,000.
(b) In connection with a Permitted Acquisition in which Capital Stock
of the Borrower is to be issued as all or part of the consideration therefor,
the Borrower or a Restricted Subsidiary may repurchase a number of shares of the
Capital Stock of Borrower which is not greater than the number of shares of
Borrower's Capital Stock issued or to be issued in connection with the Permitted
Acquisition so long as: (i) all of such Capital Stock is repurchased during the
fiscal quarter of Borrower in which the Permitted Acquisition occurs, and (ii)
the aggregate consideration paid for the Capital Stock so repurchased, together
with all other consideration paid in such Permitted Acquisition (other than
consideration consisting
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of a number of shares of Borrower's Capital Stock not greater than the number of
shares so repurchased) does not exceed the amount permitted by Section 6.04(g);
PROVIDED, THAT, any such repurchase of Capital Stock of the Borrower in
connection with a Permitted Acquisition that is not completed must otherwise be
permitted under Section 6.06(a).
SECTION 6.07. IMPAIRMENT OF SECURITY INTERESTS. The Borrower will not,
and will not permit any of the Subsidiaries to, take or omit to take any action,
which action or omission might or would have the result of materially impairing
the security interests in favor of the Administrative Agent on behalf of the
Secured Parties with respect to the Collateral, and the Borrower will not, and
will not permit any of the Subsidiaries to, grant to any person (other than the
Administrative Agent on behalf of the Secured Parties pursuant to the Loan
Documents) any interest whatsoever in the Collateral.
SECTION 6.08. LIMITATION ON RESTRICTIONS ON SUBSIDIARY DIVIDENDS, ETC.
The Borrower will not, and will not cause or permit any of the Subsidiaries to,
directly or indirectly, create or otherwise cause or suffer to exist or become
effective any consensual encumbrance or restriction or any restriction in its
articles of incorporation (except restrictions imposed by state law), By-laws or
comparable governing instruments on the ability of any Subsidiary to (a) pay
dividends or make any other distributions on or in respect of its Capital Stock,
or pay any indebtedness owed to the Borrower or any Subsidiary, (b) make loans
or advances to the Borrower or any Subsidiary or (c) except in agreements
entered into in connection with a transaction permitted by Section 6.02(i),
transfer any of its properties or assets to the Borrower or any Subsidiary,
except for such encumbrances or restrictions existing under or by reason of (i)
customary non-assignment provisions in any lease governing a leasehold interest
or in any other contract governing a contract right which in the ordinary course
of business is not assignable or (ii) this Agreement and the Collateral
Documents.
SECTION 6.09. NO OTHER NEGATIVE PLEDGES. The Borrower will not, and
will not cause or permit any of the Subsidiaries to, directly or indirectly,
enter into any agreement prohibiting the creation or assumption of any Lien upon
the properties or assets of the Borrower or any Subsidiary, whether now owned or
hereafter acquired, or requiring an obligation to be secured if some other
obligation is secured, except for this Agreement and except in agreements
entered into in connection with a transaction permitted by Section 6.02(i).
SECTION 6.10. TRANSACTIONS WITH AFFILIATES AND SHAREHOLDERS. The
Borrower will not, and will not cause or permit any of the Subsidiaries to, sell
or transfer any property or assets to, or purchase or acquire any property or
assets from, or otherwise enter into or maintain any other transactions with,
any Affiliate of the Borrower or any of the Shareholders, except that so long as
no Default or Event of Default shall have occurred and be continuing, the
Borrower or any Subsidiary may enter into any of the foregoing transactions in
the ordinary course of business at prices and on terms and conditions that are
(i) set forth in writing and (ii) as favorable to the Borrower or such
Subsidiary as would be obtainable at the time in a comparable transaction on an
arm's-length basis from an unrelated third party. The provisions of this Section
6.10 shall not prohibit (A) any payment expressly permitted under Section 6.04
or 6.06, (B) any transaction entered into and maintained among
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the Borrower and any Restricted Subsidiaries or among Restricted Subsidiaries
and (C) payment of compensation to employees and directors in the ordinary
course of business. Notwithstanding the foregoing, (x) the Borrower and the
Subsidiaries may engage in transactions on a non-arm's-length basis in
connection with "beachhead" pricing in new markets as long as such transactions
are permitted by the rules and regulations regarding international transfer
pricing set forth in the Internal Revenue Code, and (y) except as required by
other provisions of this Agreement, permitted transactions between Subsidiaries
are not required to be in writing.
SECTION 6.11. BUSINESS OF BORROWER AND SUBSIDIARIES. (a) The Borrower
will not, and will not cause or permit any of the Subsidiaries to, engage at any
time in any business or business activity other than the businesses conducted by
it on the Closing Date, other businesses generally considered to be a part of
the fluids management industries and business activities reasonably incidental
thereto.
(b) The Borrower will not own, form or acquire any subsidiaries other
than (i) Subsidiaries existing on the Closing Date as set forth on Schedule 3.08
and (ii) subsidiaries expressly permitted to be owned, formed, or acquired by
the terms of this Agreement.
SECTION 6.12. CERTAIN AMENDMENTS. The Borrower will not, and will not
cause or permit any of the Subsidiaries to, enter into any amendment,
modification or waiver of (a) the Certificate of Incorporation or By-laws or
comparable governing instruments of the Borrower or any of the Subsidiaries as
in effect on the Closing Date, other than amendments, modifications and waivers
which are not, individually or in the aggregate, adverse in any material respect
to the rights or interests of the Lenders, or (b) the Subordinated Notes.
SECTION 6.13. CAPITAL EXPENDITURES. The Borrower will not permit the
aggregate amount of Capital Expenditures made by the Borrower and its
Subsidiaries taken as a whole in any Fiscal Year to exceed the sum of (i)
$30,000,000, plus (ii) the amount, if any, by which Capital Expenditures for the
previous Fiscal Year (other than any Fiscal Year prior to the 1997 Fiscal Year),
are less than $30,000,000.
SECTION 6.14. FINANCIAL COVENANTS.
(a) CONSOLIDATED FIXED CHARGE COVERAGE RATIO. The Borrower
will not permit the Consolidated Fixed Charge Coverage Ratio for any
Reference Period to be less than 2.00 to 1.00 at any time during the
term of this Agreement.
(b) CONSOLIDATED LEVERAGE RATIO. The Borrower will not permit
the Consolidated Leverage Ratio for any Reference Period to exceed 3.75
to 1.00 at any time during the term of this Agreement.
(c) MINIMUM CONSOLIDATED NET WORTH. The Borrower will not
permit its Consolidated Net Worth as of the last day of any fiscal
quarter of the Borrower to be less than the Minimum Compliance Level at
any time during the term of this Agreement. The "Minimum Compliance
Level" shall be $77,721,000 as of
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August 31, 1996 and shall be increased as of the last day of each
fiscal quarter of the Borrower ending after the Closing Date by an
amount equal to the sum of (a) 50% of Consolidated Net Income (if
positive) for such fiscal quarter and (b) 100% of the Net Cash Proceeds
of the issuance of any Capital Stock of the Borrower or any Subsidiary;
PROVIDED, THAT, nothing in this paragraph shall be construed to permit
the issuance of any such Capital Stock. It is understood that the first
increase in the Minimum Compliance Level pursuant to the foregoing
provisions shall be determined as of the Borrower's fiscal quarter
ending November 30, 1996. The foregoing increases in the Minimum
Compliance Level shall be fully cumulative and no reduction in the
Minimum Compliance Level shall be made to reflect negative Consolidated
Net Income for any period.
ARTICLE VII
EVENTS OF DEFAULT
In case of the happening of any of the following events (each
an "EVENT OF DEFAULT" and collectively the "EVENTS OF DEFAULT"):
(a) default shall be made in the payment of any principal of
any Loan or any reimbursement obligation in respect of a Letter of
Credit when and as the same shall become due and payable, whether at
the due date thereof or at a date fixed for prepayment thereof or by
acceleration thereof or otherwise;
(b) default shall be made in the payment of any interest on
any Loan or any Fee or any other amount (other than an amount referred
to in paragraph (a) above) due under any Loan Document, when and as the
same shall become due and payable, and such default shall continue
unremedied for a period of three Business Days;
(c) default shall be made in the due observance or performance
by the Borrower or any Subsidiary of any covenant, condition or
agreement contained in Section 5.01(a), 5.05, 5.08, 5.09, 5.10, 5.12,
5.13 or 5.14 or in Article VI;
(d) default shall be made in the due observance or performance
by the Borrower or any Subsidiary of any covenant, condition or
agreement contained herein and in any other Loan Document (other than
those specified in paragraph (a), (b) or (c) above) and such default
shall continue unremedied for a period of 30 days after such default
becomes known to a Responsible Officer of the Borrower or such
Subsidiary;
(e) any representation or warranty made or deemed made in any
Loan Document or the extensions of credit hereunder, or any
representation, warranty, statement or information contained in any
report, certificate, financial statement or other instrument furnished
in connection with or pursuant to any Loan Document,
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shall prove to have been false or misleading in any material respect
when so made, deemed made or furnished;
(f) the Borrower or any Subsidiary shall (i) fail to pay any
principal or interest, regardless of amount, due in respect of any
Indebtedness in a principal amount in excess of $500,000, when and as
the same shall become due and payable, or (ii) fail to observe or
perform any other term, covenant, condition or agreement contained in
any agreement or instrument evidencing or governing any Indebtedness in
excess of $4,000,000 if the effect of any failure referred to in this
clause (ii) is to cause, or to permit the holder or holders of such
Indebtedness or a trustee on its or their behalf to cause, with or
without the giving of notice or the lapse of time or both, such
Indebtedness to become due prior to its stated maturity;
(g) an involuntary proceeding shall be commenced or an
involuntary petition shall be filed in a court of competent
jurisdiction seeking (i) relief in respect of the Borrower or any
Subsidiary, or of a substantial part of its property or assets, under
Title 11 of the United States Code, as now constituted or hereafter
amended, or any other Federal, state or foreign bankruptcy, insolvency,
receivership or similar law, (ii) the appointment of a receiver,
trustee, custodian, sequestrator, conservator or similar official for
the Borrower or any Subsidiary, or for a substantial part of its
property or assets, or (iii) the winding-up or liquidation of the
Borrower or any Subsidiary; and such proceeding or petition shall
continue undismissed for 60 days or an order or decree approving or
ordering any of the foregoing shall be entered;
(h) the Borrower or any Subsidiary shall (i) voluntarily
commence any proceeding or file any petition seeking relief under Title
11 of the United States Code, as now constituted or hereafter amended,
or any other Federal, state or foreign bankruptcy, insolvency,
receivership or similar law, (ii) consent to the institution of, or
fail to contest in a timely and appropriate manner, any proceeding or
the filing of any petition described in paragraph (g) above, (iii)
apply for or consent to the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for such party
or for a substantial part of its property or assets, (iv) file an
answer admitting the material allegations of a petition filed against
it in any such proceeding, (v) make a general assignment for the
benefit of creditors, (vi) become unable, admit in writing its
inability or fail generally to pay its debts as they become due or
(vii) take any action for the purpose of effecting any of the
foregoing;
(i) one or more judgments or orders for the payment of money
in an aggregate amount in excess of $500,000 shall be rendered against
the Borrower or any Subsidiary or any combination thereof and the same
shall remain undischarged for a period of 30 consecutive days during
which execution shall not be effectively stayed, or any judgment
creditor shall levy upon assets or properties of the Borrower or any
Subsidiary to enforce any such judgment;
(j) (i) any person shall engage in any "prohibited
transaction" (as defined in Section 406 of ERISA or Section 4975 of the
Code) involving any Plan, (ii) any "accumulated funding deficiency" (as
defined in Section 302 of ERISA), whether or
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not waived, shall exist with respect to any Plan, or any Lien shall
arise on the assets of the Borrower or any Commonly Controlled Entity
in favor of the PBGC or a Plan, (iii) a Reportable Event shall occur
with respect to, or proceedings shall commence to have a trustee
appointed (or a trustee shall be appointed) to administer, or to
terminate, any Single Employer Plan, which Reportable Event or
commencement of proceedings or appointment of a trustee is, in the
reasonable opinion of the Required Lenders, likely to result in the
termination of such Plan for purposes of Title IV of ERISA, (iv) any
Single Employer Plan shall terminate for purposes of Title IV of ERISA,
(v) the Borrower or any Commonly Controlled Entity shall, or in the
reasonable opinion of the Required Lenders is likely to, incur any
liability in connection with a withdrawal from, or the termination,
reorganization or insolvency of (within the meaning of such terms as
used in ERISA), a Multiemployer Plan or (vi) any other event or
condition shall occur or exist with respect to a Plan; and, in each
case in clauses (i) through (vi) above, such event or condition,
together with all other such events or conditions, if any, could
reasonably be expected to result in liability of the Borrower and the
Subsidiaries in an aggregate amount exceeding $2,500,000 or require
payments by the Borrower and the Subsidiaries exceeding $1,000,000 in
any year;
(k) any Lien purported to be created by any Collateral
Document shall cease to be, or shall for any reason be asserted by the
Borrower or any Subsidiary not to be, a valid, perfected, first
priority Lien on the securities, properties or assets covered thereby,
except as priority may be affected by Liens permitted under Section
6.02 and except for releases of Collateral in accordance with all
applicable provisions of this Agreement and the Collateral Documents;
(l) any Loan Document or any material provision of any Loan
Document shall be declared by any Governmental Authority to be invalid
or unenforceable in whole or in part, or shall be asserted by the
Borrower or any Subsidiary not to be, in full force and effect and
enforceable in accordance with its terms;
(m) any adverse change in the material agreements or
relationships of the Borrower and the Subsidiaries shall occur and such
event or condition, together with all other such events or conditions,
if any, could, in light of all the then existing circumstances,
reasonably be expected to result in net losses, claims or actions
(after tax) to which the Borrower or its Subsidiaries are or may become
subject (with or without the passage of time) in an amount equal to or
greater than the greater of (i) $10,000,000 or (ii) 7% of the
Borrower's Consolidated Net Worth;
(n) any material intellectual property or any material license
relating thereto shall be invalid or unenforceable in whole or in part
or shall for any reason not be in full force and effect and enforceable
by the Borrower and the Subsidiaries or shall infringe the rights of
any other person or any other adverse change in the material
intellectual property rights of the Borrower and the Subsidiaries shall
occur and such event or condition, together with all other such events
or conditions, if any, could reasonably be expected to have a Material
Adverse Effect;
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(o) either (i) the Borrower or any Subsidiary shall be liable,
whether directly, indirectly through required indemnification of any
person or otherwise, for the costs of investigation and/or remediation
of any Hazardous Material originating from or affecting property or
properties, whether or not owned, leased or operated by the Borrower or
any Subsidiary, which liability, together with all other such
liabilities, could reasonably be expected to exceed $10,000,000 or
require payments exceeding $3,000,000 in any year or (ii) any Federal,
state, regional, local or other environmental regulatory agency or
authority shall commence an investigation or take any other action that
could reasonably be expected to be determined adversely to the Borrower
or any Subsidiary and, on the basis of such a determination, to have a
Material Adverse Effect; or
(p) there shall occur (i) any Change of Control (as defined in
this Agreement) or (ii) any change of control as contemplated by any of
the Subordinated Notes;
then, and in every such event, and at any time thereafter during the continuance
of such event, the Administrative Agent may, and at the request of the Required
Lenders shall, take one or more of the following actions, at the same or
different times: (i) by notice to the Borrower terminate the Commitments and
they shall immediately terminate; (ii) by notice to the Borrower declare the
Loans then outstanding to be forthwith due and payable (in whole or, in the sole
discretion of the Required Lenders, from time to time in part, provided that any
such partial acceleration shall be made pro rata based on the outstanding
principal amount of Loans of each Class), whereupon the principal of the Loans
so declared to be due and payable, together with accrued interest thereon and
any unpaid accrued Fees and all other liabilities of the Borrower accrued
hereunder or under any other Loan Document, shall thereupon become immediately
due and payable, without presentment, demand, protest or any other notice of any
kind, all of which are hereby expressly waived by the Borrower, anything
contained herein or in any other Loan Document to the contrary notwithstanding;
(iii) require cash collateral as contemplated by Section 2.22(k) in an amount
not exceeding the Letter of Credit Exposure; (iv) exercise any remedies
available under the Guarantee Agreement, the Collateral Documents or otherwise;
or (v) any combination of the foregoing; PROVIDED, THAT, in the case of (A) any
of the Events of Default with respect to the Borrower described in paragraph (g)
or (h) above or (B) the Event of Default specified in paragraph (p) above, the
Commitments shall automatically terminate and the principal of the Loans then
outstanding, together with accrued interest thereon and any unpaid accrued Fees
and all other liabilities of the Borrower accrued hereunder or under any other
Loan Document, shall automatically become due and payable, without presentment,
demand, protest or any other notice of any kind, all of which are hereby
expressly waived by the Borrower, anything contained herein or in any other Loan
Document to the contrary notwithstanding.
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ARTICLE VIII
THE AGENTS AND ISSUING BANK
SECTION 8.01. APPOINTMENT AND AUTHORIZATION. (a) Each of the Lenders,
and each subsequent holder of any Note by its acceptance thereof, hereby
irrevocably appoints and authorizes each of the Agents and the Issuing Bank to
take such actions as agent on behalf of such Lender or holder and to exercise
such powers as are specifically delegated to such Agent or the Issuing Bank, as
the case may be, by the terms and provisions hereof and of the other Loan
Documents, together with such actions and powers as are reasonably incidental
thereto.
(b) The Administrative Agent is hereby expressly authorized by the
Lenders, without hereby limiting any implied authority, and hereby agrees (in
the case of clause (ii) below, at the direction of the Required Lenders), (i) to
receive on behalf of the Lenders all payments of principal of and interest on
the Loans and all other amounts due to the Lenders hereunder, and promptly to
distribute to each Lender its proper share of each payment so received; (ii) to
give notice on behalf of each of the Lenders to the Borrower of any Event of
Default specified in this Agreement of which the Administrative Agent has actual
knowledge acquired in connection with its agency hereunder; (iii) to give notice
to the Lenders of any Event of Default specified in this Agreement of which the
Administrative Agent has actual knowledge acquired in connection with its agency
hereunder; and (iv) to distribute to each Lender copies of all notices,
financial statements and other materials delivered by the Borrower pursuant to
this Agreement as received by the Administrative Agent.
SECTION 8.02. LIABILITY OF AGENTS. Neither the Agents, the Issuing
Bank, nor any of their respective directors, officers, employees or agents,
shall be liable as such for any action taken or omitted to be taken by any of
them, except for such party's own gross negligence or willful misconduct, or be
responsible for any statement, warranty or representation herein or the contents
of any document delivered in connection herewith, or be required to ascertain or
to make any inquiry concerning the performance or observance by the Borrower or
any Subsidiary of any of the terms, conditions, covenants or agreements
contained in any Loan Document. Neither the Agents nor the Issuing Bank shall be
responsible to the Lenders or the holders of the Notes for the due execution,
genuineness, validity, enforceability or effectiveness of this Agreement, the
Notes or any other Loan Documents or other instruments or agreements. Each of
the Administrative Agent and the Issuing Bank may deem and treat the payee of
any Note as the owner thereof for all purposes hereof until it shall have
received from the payee of such Note notice, given as provided herein, of the
transfer thereof in compliance with Section 9.04. Each of the Agents and the
Issuing Bank shall in all cases be fully protected in acting, or refraining from
acting, in accordance with written instructions signed by the Required Lenders
and, except as otherwise specifically provided herein, such instructions and any
action or inaction pursuant thereto shall be binding on all the Lenders and each
subsequent holder of any Note. The Agents, the Issuing Bank and the Required
Lenders shall, in the absence of knowledge to the contrary, be entitled to rely
on any instrument or document believed by it in good faith to be genuine and
correct and to have been signed or sent by the proper person or persons. Neither
the Agents, the Issuing Bank nor any of their respective directors, officers,
employees or agents,
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shall have any responsibility to the Borrower on account of the failure of or
delay in performance or breach by any Lender of any of its obligations hereunder
or to any Lender on account of the failure of or delay in performance or breach
by any other Lender or the Borrower or any Subsidiary of any of their respective
obligations hereunder or under any other Loan Document or in connection herewith
or therewith. The Agents and the Issuing Bank may execute any and all duties
hereunder by or through agents or employees, shall be entitled to consult with
legal counsel, independent public accountants and other experts selected by it
with respect to all matters arising hereunder and shall not be liable for any
action taken or omitted to be taken in good faith by it in accordance with the
advice of such counsel, accountants or experts.
SECTION 8.03. ACTION BY AGENTS. The Lenders hereby acknowledge that
neither the Agents nor the Issuing Bank shall be under any duty to take any
discretionary action permitted to be taken by it pursuant to the provisions of
this Agreement unless it shall be requested in writing to do so by the Required
Lenders. The obligations of the Agents and the Issuing Bank under the Loan
Documents are only those expressly set forth herein and therein. Without
limiting the generality of the foregoing, no Agent shall be required to take any
action with respect to any Default or Event of Default, except as expressly
required pursuant to Article VII.
SECTION 8.04. SUCCESSOR AGENTS. Subject to the appointment and
acceptance of a successor Agent, the Agents and the Issuing Bank (except, in the
case of the Issuing Bank, in respect of Letters of Credit issued by it) may
resign at any time by notifying the Lenders and the Borrower. Upon any such
resignation, the Required Lenders shall have the right to appoint a successor
subject to approval by the Borrower (which shall not be unreasonably withheld).
If no successor shall have been so appointed by the Required Lenders, and shall
have accepted such appointment within 30 days after the retiring Agent or
Issuing Bank, as the case may be, gives notice of its resignation, then the
retiring Agent or Issuing Bank, as the case may be, on behalf of the Lenders,
shall appoint a successor Agent or Issuing Bank, as applicable, which shall be a
commercial bank organized or licensed under the laws of the United States of
America or of any State thereof and having a combined capital and surplus of at
least $500,000,000 or an Affiliate of any such bank. Upon the acceptance of any
appointment as an Agent or Issuing Bank, as the case may be, hereunder by a
successor bank, such successor shall succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Agent or Issuing Bank and
the retiring Agent or Issuing Bank shall be discharged from its duties and
obligations hereunder. After the resignation of an Agent or the Issuing Bank, as
the case may be, hereunder, the provisions of this Article and Section 9.05
shall continue in effect for its benefit in respect of any actions taken or
omitted to be taken by it while it was acting as an Agent or Issuing Bank.
SECTION 8.05. AGENT AND AFFILIATE. With respect to the Loans made by it
hereunder, the Letters of Credit issued by it hereunder and the Notes issued to
it, the Agents and the Issuing Bank, each in its individual capacity and not as
an Agent or the Issuing Bank, as the case may be, shall have the same rights and
powers as any other Lender and may exercise the same as though it were not an
Agent or the Issuing Bank. The Agents and the Issuing Bank (and its Affiliates)
may accept deposits from, lend money to and generally
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engage in any kind of business and transactions with the Borrower or any
Subsidiary or other Affiliate thereof as if it were not an Agent or the Issuing
Bank (or such Affiliate thereof).
SECTION 8.06. INDEMNIFICATION. Each Lender agrees (a) to reimburse each
of the Agents and the Issuing Bank, on demand, in the amount of its pro rata
share (as determined under Section 2.16) of any expenses incurred for the
benefit of the Lenders by such Agent or the Issuing Bank, as the case may be,
including counsel fees and compensation of agents and employees paid for
services rendered on behalf of the Lenders, which shall not have been reimbursed
by the Borrower and (b) to indemnify and hold harmless each of the Agents, the
Issuing Bank and any of their respective directors, officers, employees or
agents, on demand, in the amount of such pro rata share, from and against any
and all liabilities, taxes, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever which may be imposed on, incurred by or asserted against it in its
capacity as an Agent or the Issuing Bank, as the case may be, or any of them in
any way relating to or arising out of this Agreement or any other Loan Document
or any action taken or omitted by it or any of them under this Agreement or any
other such Loan Document, to the extent the same shall not have been reimbursed
by the Borrower; PROVIDED, THAT, no Lender shall be liable to any Agent or the
Issuing Bank for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements resulting
from the gross negligence or willful misconduct of such Agent, the Issuing Bank
or any of their respective directors, officers, employees or agents.
SECTION 8.07. CREDIT DECISION. Each Lender acknowledges that it has,
independently and without reliance upon the Agents, the Issuing Bank or any
other Lender and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Lender also acknowledges that it will, independently and without
reliance upon the Agents, the Issuing Bank or any other Lender and based on such
documents and information as it shall from time to time deem appropriate,
continue to make its own decisions in taking or not taking action under or based
upon this Agreement or any other Loan Document, any related agreement or any
document furnished hereunder or thereunder.
ARTICLE IX
MISCELLANEOUS
SECTION 9.01. NOTICES. Notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by telecopy as follows:
(a) if to the Borrower, to it at 0000 Xxxxxxxxx Xxxxx, Xxxxxx,
Xxxx 00000, Attention of Xx. Xxxxxx X. Xxxxx (Telecopy No. (937)
225-3354), with a copy to Xxxxxxxx Xxxx & Xxxxx LLP, 0000 Xxxxxxxxxx
Xxxxx, X.X., X.X. Xxx 0000, Xxxxxx, Xxxx 00000-0000, Attention of Xxxxx
X. Xxxxxxxx, Esq. (Telecopy No: (000) 000-0000);
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(b) if to the Administrative Agent or the Issuing Bank, to it
at Kettering Tower, 00 Xxxxx Xxxx Xxxxxx, 0xx Xxxxx, Xxxxxx, Xxxx
00000, Attention of Xx. Xxxx X. Xxxxxx (Telecopy No. (000) 000-0000),
with a copy to Banc One Corporation, Legal Department, 000 Xxxx Xxxxx
Xxxxxx, Xxxxxxxx, Xxxx 00000, Attention of Xxxxx Xxxxxxx, Esq.
(Telecopy No. (000) 000-0000);
(c) if to the Syndication Agent, to it at (i) NationsBank
Corporate Center, 000 Xxxxx Xxxxx Xxxxxx, Xxxxxxxxx, Xxxxx Xxxxxxxx
00000, Attention of Xx. Xxxxxxx X. XxXxx (Telecopy No: (000) 000-0000),
and (ii) NationsBank Corporate Center, 000 Xxxxx Xxxxx Xxxxxx,
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000, Attention of Mr. Xxxxxx Xxxxxxxxxx
(Telecopy No: (000) 000-0000), with a copy to Fennebresque, Clark,
Xxxxxxxx & Hay, at NationsBank Corporate Center, 000 Xxxxx Xxxxx
Xxxxxx, Xxxxx 0000, Xxxxxxxxx, Xxxxx Xxxxxxxx 00000-0000, Attention of
Xxxxxx X. Xxxxxx, Esq. (Telecopy No. (000) 000-0000); and
(d) if to a Lender, to it at its address (or telecopy number)
set forth in Schedule 2.01(a) or (b), as applicable, or in the
Assignment and Acceptance pursuant to which such Lender shall have
become a party hereto.
All notices and other communications given to any party hereto in accordance
with the provisions of this Agreement shall be deemed to have been given on the
date of receipt if delivered by hand or overnight courier service or sent by
telecopy or on the date three Business Days after dispatch by certified or
registered mail if mailed, in each case delivered, sent or mailed (properly
addressed) to such party as provided in this Section 9.01 or in accordance with
the latest unrevoked direction from such party given in accordance with this
Section 9.01. In all events, notice shall be deemed effective immediately upon
refusal of delivery thereof irrespective of the method of such delivery.
SECTION 9.02. SURVIVAL OF AGREEMENT. All covenants, agreements,
representations and warranties made by the Borrower herein and in the
certificates or other instruments prepared or delivered in connection with or
pursuant to this Agreement or any other Loan Document shall be considered to
have been relied upon by the Lenders, the Agents and the Issuing Bank and shall
survive the making by the Lenders of the Loans, the execution and delivery to
the Lenders of the Notes evidencing such Loans, and the issuance of the Letters
of Credit, regardless of any investigation made by the Lenders, the Agents or
the Issuing Bank or on their behalf, and shall continue in full force and effect
as long as the principal of or any accrued interest on any Loan, any Fee, any
Letter of Credit Disbursement or any other amount payable under this Agreement
or any other Loan Document is outstanding and unpaid or any Letter of Credit is
outstanding and so long as the Commitments have not been terminated. The
provisions of Section 2.13, 2.15, 2.19 and 9.05 shall remain operative and in
full force and effect regardless of the expiration of the term of this
Agreement, the consummation of the transactions contemplated hereby, the
repayment of any of the Loans, the expiration of the Commitments, the expiration
of any Letter of Credit, the invalidity or unenforceability of any term or
provision of this Agreement or any other Loan Document or any investigation made
by or on behalf of the Agent, the Issuing Bank or any Lender.
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SECTION 9.03. BINDING EFFECT. This Agreement shall become effective
when it shall have been executed by the Borrower, the Agents and the Issuing
Bank and when the Administrative Agent shall have received copies hereof which,
when taken together, bear the signatures of each Lender.
SECTION 9.04. SUCCESSORS AND ASSIGNS. (a) All covenants, promises and
agreements by or on behalf of the Borrower, the Agents, the Issuing Bank or the
Lenders that are contained in this Agreement shall be binding upon and inure to
the benefit of their respective permitted successors and assigns.
(b) Each Lender may assign to one or more assignees all or a portion of
its interests, rights and obligations under this Agreement (including all or a
portion of its Commitments, the Loans at the time owing to it, the Notes held by
it and the participations in Letters of Credit held by it) to other financial
institutions; PROVIDED, THAT, the Borrower (unless an Event of Default shall
have occurred and be continuing), the Agents and, in the case of an assignment
of a Tranche A Revolving Credit Commitment, the Issuing Bank must give their
prior written consent to such assignment (which consent shall not be
unreasonably withheld). No Lender shall assign to any financial institution
other than an existing Lender, a Commitment in an amount less than $10,000,000;
PROVIDED, THAT, a Lender may assign Commitments to a financial institution in
amounts less than $10,000,000 as long as (i) no Commitments are assigned in
amounts less than $5,000,000, (ii) any Lender desiring to assign Commitments in
amounts less that $10,000,000 shall first notify the Borrower and the Agents at
which time the Borrower shall have 30 days to identify a financial institution
of its choice willing to assume the Commitments to be assigned by such Lender
(which financial institution shall be reasonably acceptable to the Agents) and
(iii) after such assignment is made, no Lender shall hold less than $5,000,000
in total Commitments. The parties to each such assignment (including, but not
limited to, an assignment by a Lender to another Lender) shall execute and
deliver to the Administrative Agent an Assignment and Acceptance, together with
the Note or Notes subject to such assignment and a processing and recordation
fee of $3,500 and the assignee, if it shall not be a Lender or an Affiliate
thereof, shall deliver to the Administrative Agent an Administrative
Questionnaire. Upon acceptance and recording pursuant to Section 9.04(e), from
and after the effective date specified in each Assignment and Acceptance, which
effective date shall be at least five Business Days after the execution thereof
(unless the Administrative Agent shall otherwise agree), (A) the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned
by such Assignment and Acceptance, have the rights and obligations of a Lender
under this Agreement and (B) the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Acceptance, be released
from its obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Lender's rights
and obligations under this Agreement, such Lender shall cease to be a party
hereto but shall continue to be entitled to the benefits of Sections 2.13, 2.15,
2.19 and 9.05, as well as to any Fees accrued for its account to the effective
date of the Assignment and not yet paid).
(c) By executing and delivering an Assignment and Acceptance, the
assigning Lender thereunder and the assignee thereunder shall be deemed to
confirm to and agree with each other and the other parties hereto as follows:
(i) such assigning Lender warrants that it
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is the legal and beneficial owner of the interest being assigned thereby free
and clear of any adverse claim arising in respect of any action by the assigning
Lender; (ii) except as set forth in clause (i) above, such assigning Lender
makes no representation or warranty and assumes no responsibility with respect
to any statements, warranties or representations made in or in connection with
this Agreement, any other Loan Document or any other instrument or document
furnished pursuant hereto or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Agreement, any other Loan Document or
any other instrument or document furnished pursuant hereto, or the financial
condition of the Borrower or any Subsidiary or the performance or observance by
the Borrower or any Subsidiary or the performance or observance by the Borrower
or any Subsidiary of any of its obligations under this Agreement, any other Loan
Document or any other instrument or document furnished pursuant hereto; (iii)
such assignee represents and warrants that it is legally authorized to enter
into such Assignment and Acceptance; (iv) such assignee confirms that it has
received a copy of this Agreement and the other Loan Documents, together with
copies of the most recent Required Financial Statements and such other documents
and information as it has deemed appropriate to make its own credit analysis and
decision to enter into such Assignment and Acceptance; (v) such assignee will
independently, and without reliance upon the Agents, the Issuing Bank, such
assigning Lender or any other Lender and based on such documents and information
as it shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking action under this Agreement; (vi) such
assignee appoints and authorizes the Agents and the Issuing Bank to exercise
such powers under this Agreement as are delegated to such party by the terms
hereof, together with such powers as are reasonably incidental hereto; and (vii)
such assignee agrees that it will perform in accordance with their terms all the
obligations which by the terms of this Agreement are required to be performed by
it as a Lender.
(d) The Administrative Agent shall maintain at one of its offices in
Dayton, Ohio (or such other reasonable location as the Administrative Agent may
select with prompt notice to the Lenders), a copy of each Assignment and
Acceptance delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitments of, and principal amount of the
Loans owing to, each Lender pursuant to the terms hereof from time to time (the
"REGISTER"). The entries in the Register shall be conclusive in the absence of
manifest error and the Borrower, the Agents and the Lenders may treat each
person whose name is recorded in the Register pursuant to the terms hereof as a
Lender hereunder for all purposes of this Agreement. The Register shall be
available for inspection by the Borrower, the Issuing Bank and any Lender, at
any reasonable time and from time to time upon reasonable prior notice.
(e) Upon its receipt of a duly completed Assignment and Acceptance
executed by an assigning Lender and an assignee together with the Note or Notes
subject to such assignment, an Administrative Questionnaire completed in respect
of the assignee (unless the assignee shall already be a Lender hereunder or
shall be an Affiliate of a Lender), the processing and recordation fee referred
to in Section 9.04(b) and, if required, the written consent of the Borrower, the
Agents and the Issuing Bank to such assignment, the Administrative Agent shall
(i) accept such Assignment and Acceptance, (ii) record the information contained
therein in the Register and (iii) give prompt notice thereof to the Issuing
Bank, the Syndication Agent, the Lenders and the Borrower. Within five Business
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Days after receipt of notice, the Borrower, at its own expense, shall execute
and deliver to the Administrative Agent, in exchange for the surrendered Note or
Notes, a new Note or Notes payable to the order of such assignee in a principal
amount equal to the applicable portion thereof (and the corresponding
Commitment, if any) assumed by it pursuant to such Assignment and Acceptance
and, if the assigning Lender has retained any portion of such Note or Notes (and
such Commitment, if any), a new Note or Notes payable to the order of such
assigning Lender in a principal amount equal to the applicable portion of such
Note or Notes (and such Commitment, if any) retained by it. Such new Note or
Notes shall be in an aggregate principal amount equal to the aggregate principal
amount of such surrendered Note; such new Note or Notes shall be dated the date
of the surrendered Notes which they replace and shall otherwise be in
substantially the form of Exhibits X-0, X-0 and A-3 hereto, as applicable.
Canceled Notes shall be returned to the Borrower.
(f) Each Lender may, without the consent of the Borrower, the Agents or
the Issuing Bank, sell participations in all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitment,
the Loans owing to it, the Notes held by it and the participations in Letters of
Credit held by it) to one or more participants; PROVIDED, THAT, (i) such
Lender's obligations under this Agreement shall remain unchanged, (ii) the sum
of (A) the principal amount of the outstanding Loans subject to such
participation and (B) the unused amount of the Commitments of the Lender subject
to such participation shall be not less than the lesser of (I) $5,000,000 and
(II) the entire remaining amount of the outstanding Loans and unused Commitments
of such Lender, (iii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations, (iv) the participating
banks or other entities shall be entitled to the benefit of the cost protection
and indemnity provisions contained in Sections 2.13, 2.15 and 2.19 to the same
extent as if they were Lenders (except that no participant shall be entitled to
claim any amount greater than its pro rata share of the amount that could have
been claimed by the Lender from which it acquired its participation) and (v) the
Borrower, the Agents, the Issuing Bank and the other Lenders shall continue to
deal solely and directly with the Lender from which the participant acquired its
interest in connection with such Lender's rights and obligations under this
Agreement, and such Lender shall retain the sole right to enforce the
obligations of the Borrower relating to the Loans and to approve any amendment,
modification or waiver of any provision of this Agreement (other than
amendments, modifications or waivers decreasing any fees payable hereunder or
the amount of principal of or the rate at which interest is payable on the
Loans, extending any scheduled principal payment date or date fixed for the
payment of interest on the Loans or increasing or extending the Commitments).
(g) Any Lender or participant may, in connection with any assignment or
participation or proposed assignment or participation pursuant to this Section
9.04, disclose to the assignee or participant or proposed assignee or
participant any information relating to the Borrower or any of the Subsidiaries
furnished to such Lender by or on behalf of the Borrower or any of the
Subsidiaries; PROVIDED, THAT, prior to any such disclosure of non-public
information, each such assignee or participant or proposed assignee or
participant shall execute an agreement whereby such assignee or participant
shall agree (subject to customary exceptions) to preserve the confidentiality of
such information.
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(h) Assignments and participations pursuant to this Section 9.04 need
not be pro rata among the Facilities.
(i) Any Lender may at any time assign all or any portion of its rights
under this Agreement and the Notes issued to it to a Federal Reserve Bank to
secure extensions of credit by such Federal Reserve Bank to such Lender;
PROVIDED, THAT, no such assignment shall release a Lender from any of its
obligations hereunder or substitute any such Federal Reserve Bank for such
Lender as a party hereto.
(j) The Borrower shall not assign or delegate any of its rights or
duties hereunder or any interest herein (whether voluntarily, by operation of
law or otherwise). Any purported assignment or delegation in violation of the
foregoing shall be void.
SECTION 9.05. EXPENSES; INDEMNITY. (a) The Borrower agrees to pay all
reasonable out-of-pocket expenses incurred by any Agent, NCMI or the Issuing
Bank in connection with the preparation, execution and administration of this
Agreement and the other Loan Documents, the syndication or closing of the
Facilities, the administration of the Facilities or any amendment, modification
or waiver of the provisions hereof or thereof and the Borrower agrees to pay all
reasonable out-of-pocket expenses incurred by any Agent, NCMI, the Issuing Bank
or any Lender in connection with the enforcement or protection of the rights of
the Agents, the Issuing Bank and the Lenders under this Agreement and the other
Loan Documents or in connection with the Loans made, the Notes issued hereunder
or the Letters of Credit issued hereunder, including the reasonable fees,
charges and disbursements of (i) Fennebresque, Clark, Xxxxxxxx & Hay, counsel
for the Syndication Agent, and the allocated cost of in-house counsel to the
Administrative Agent, (ii) any third party consultants retained with the
Borrower's consent, which consent will not be unreasonably withheld, to assist
the Agents in analyzing any environmental, insurance, solvency-related and other
due diligence issues and (iii) in connection with any such enforcement or
protection (including any workout or restructuring or any negotiations relating
thereto), any other counsel for any Agent, the Issuing Bank or any Lender
(including the allocated internal fees and expenses of any in-house staff
counsel).
(b) The Borrower agrees to indemnify each of the Agents, NCMI, the
Issuing Bank, the Affiliates of any Agent, the Lenders, and their respective
directors, officers, employees, agents and Controlling persons (each, an
"INDEMNIFIED PARTY") from and against any and all losses, claims (whether valid
or not), damages and liabilities, joint or several, to which such Indemnified
Party may become subject, related to or arising out of (i) the Facilities, (ii)
the execution or delivery of this Agreement or any other Loan Document or any
agreement or instrument contemplated hereby or thereby, the performance by the
parties hereto or thereto of their respective obligations hereunder or
thereunder and the other transactions contemplated hereby and thereby, (iii) the
use of the Letters of Credit or the proceeds of the Loans or (iv) any claim,
litigation, investigation or proceeding relating to any of the foregoing,
whether or not any Indemnified Party is a party thereto. The Borrower further
agrees to reimburse each Indemnified Party for all expenses (including
reasonable attorneys' fees and expenses) as they are incurred in connection with
the investigation of, preparation for or defense of any pending or threatened
claim or any action or proceeding arising therefrom. Notwithstanding the
foregoing, the obligation to indemnify any
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Indemnified Party under this Section 9.05(b) shall not apply in respect of any
loss, claim, damage or liability to the extent that a court of competent
jurisdiction shall have determined by final and nonappealable judgment that such
loss, claim, damage or liability resulted from such Indemnified Party's gross
negligence or willful misconduct.
(c) The Borrower agrees to indemnify each of the Agents, NCMI, the
Issuing Bank, the Lenders and the other Indemnified Parties from and against any
and all losses, claims (whether valid or not), damages and liabilities, joint or
several, to which such Indemnified Party may become subject, related to or
arising out of (i) any Federal, state, local or other statute, ordinance, order,
judgment, ruling or regulation relating to environmental pollution, regulation
or control affecting the Borrower, any Subsidiary or its properties or assets,
(ii) any Hazardous Materials managed by the Borrower or any Subsidiary, (iii)
any event, condition or circumstance involving environmental protection,
pollution, regulation or control affecting the Borrower or any Subsidiary or its
properties or assets or (iv) any claim, litigation, investigation or proceeding
relating to any of the foregoing, whether or not any Indemnified Party is a
party thereto. The Borrower further agrees to reimburse each Indemnified Party
for all expenses (including reasonable consultants' and attorneys' fees and
expenses) as they are incurred in connection with the investigation of,
preparation for or defense of any pending or threatened claim or any action or
proceeding arising therefrom. Notwithstanding the foregoing, the obligation to
indemnify any Indemnified Party under this Section 9.05(c) shall not apply in
respect of any loss, claim, damage or liability to the extent that a court of
competent jurisdiction shall have determined by final and nonappealable judgment
that such loss, claim, damage or liability resulted from such Indemnified
Party's gross negligence or willful misconduct.
(d) In the event that the foregoing indemnity is unavailable or
insufficient to hold an Indemnified Party harmless, then the Borrower will
contribute to amounts paid or payable by such Indemnified Party in respect of
such Indemnified Party's losses, claims, damages or liabilities in such
proportions as appropriately reflect the relative benefits received by and fault
of the Borrower and such Indemnified Party in connection with the matters as to
which such losses, claims, damages or liabilities relate and other equitable
considerations.
(e) If any action, proceeding or investigation is commenced, as to
which any Indemnified Party proposes to demand such indemnification, it shall
notify the Borrower with reasonable promptness; PROVIDED, THAT, any failure by
such Indemnified Party to notify the Borrower shall not relieve the Borrower
from its obligations hereunder except to the extent the Borrower is prejudiced
thereby. The Borrower shall be entitled to assume the defense of any such
action, proceeding or investigation, including the employment of counsel and the
payment of all fees and expenses. Each Indemnified Party shall have the right to
employ separate counsel in connection with any such action, proceeding or
investigation and to participate in the defense thereof, but the fees and
expenses of such counsel shall be paid by such Indemnified Party, unless (i) the
Borrower has failed to assume the defense and employ counsel as provided herein,
(ii) the Borrower has agreed in writing to pay such fees and expenses of
separate counsel or (iii) an action, proceeding or investigation has been
commenced against such Indemnified Party and the Borrower and representation of
both the Borrower and such Indemnified Party by the same counsel would be
inappropriate because of actual or potential conflicts of interest between the
parties (in the case of any Agent or
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Lender, the existence of any such actual or potential conflict of interest to be
determined by such party, taking into account, among other things, any relevant
regulatory concerns). In the case of any circumstance described in clause (i),
(ii), or (iii) of the immediately preceding sentence, the Borrower shall be
responsible for the reasonable fees and expenses of such separate counsel;
PROVIDED, THAT, the Borrower shall not in any event be required to pay the fees
and expenses of more than one separate counsel (plus appropriate local counsel
under the direction of such separate counsel) for all Indemnified Parties,
unless representation of all Indemnified Parties by the same counsel would be
inappropriate due to actual or potential conflicting interests between such
Indemnified Parties, in which case, the Borrower shall be required to pay the
fees and expenses of such additional counsel as are necessary to prevent such
conflicting interests. The Borrower shall be liable only for settlement of any
claim against an Indemnified Party made with the Borrower's written consent.
(f) The provisions of this Section 9.05 shall remain operative and in
full force and effect regardless of the expiration of the term of this
Agreement, the consummation of the transactions contemplated hereby, the
repayment of any of the Loans, the invalidity or unenforceability of any term or
provision of this Agreement or any other Loan Document, or any investigation
made by or on behalf of any Agent or Lender. All amounts due under this Section
9.05 shall be payable on written demand therefor.
SECTION 9.06. RIGHT OF SETOFF. If an Event of Default shall have
occurred and be continuing, each Lender is hereby authorized at any time and
from time to time, to the fullest extent permitted by law, to set off and apply
any and all deposits (general or special, time or demand, provisional or final
except deposits for the payment of payroll taxes) at any time held and other
indebtedness at any time owing by such Lender to or for the credit or the
account of the Borrower against any of and all the obligations of the Borrower
now or hereafter existing under this Agreement and the other Loan Documents held
by such Lender, irrespective of whether or not such Lender shall have made any
demand under this Agreement or such other Loan Document and although such
obligations may be unmatured. The rights of each Lender under this Section 9.06
are in addition to other rights and remedies (including other rights of setoff)
which such Lender may have.
SECTION 9.07. APPLICABLE LAW. THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED
BY THE LAWS OF THE STATE OF OHIO, WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAWS.
SECTION 9.08. WAIVERS; AMENDMENT. (a) No failure or delay of any Agent,
the Issuing Bank or any Lender in exercising any power or right hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce
such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and remedies of the Agents, the
Issuing Bank and the Lenders hereunder and under the other Loan Documents are
cumulative and are not exclusive of any rights or remedies which they would
otherwise have. No waiver of any provision of this Agreement or any other Loan
Document or consent to any departure by the Borrower or any other Secured Party
therefrom
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shall in any event be effective unless the same shall be permitted by Section
9.08(b), and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. No notice or demand on the
Borrower in any case shall entitle the Borrower to any other or further notice
or demand in similar or other circumstances.
(b) None of this Agreement, the other Loan Documents and any provision
hereof or thereof may be waived, amended or modified (and no consent to the
departure by the Borrower or any other Secured Party therefrom may be
effective), except pursuant to an agreement or agreements in writing entered
into by the Borrower and the Required Lenders; PROVIDED, THAT, no such agreement
shall (i) decrease the principal amount of or extend the maturity of or date for
the payment of any interest on any Loan or any date for reimbursement of a
Letter of Credit Disbursement, or waive or excuse any such payment or any part
thereof, or decrease the rate of interest on any Loan or a Letter of Credit
Disbursement, without the prior written consent of each Lender affected thereby,
(ii) change or extend the Commitments or decrease the Fees of any Lender without
the prior written consent of such Lender, (iii) increase the aggregate
Commitments of the Lenders without the prior written consent of each Lender,
(iv) amend or modify the provisions of Section 2.16 or 9.04(j), the provisions
of this Section, the definition of the term "Required Lenders," release at one
time or serially in the aggregate all or substantially all the Guarantors or all
or substantially all the Collateral, without the prior written consent of each
Lender; (v) change the amount of, or allocation between the Tranche A Revolving
Credit Facility and the Tranche B Revolving Credit Facility or any provision
relating to any prepayment of the Loans under either of the Facilities without
the consent of Lenders holding more than 50% of the outstanding Loans (and
outstanding Letter of Credit Exposure, if applicable) under each of the
respective Facilities, (vi) waive the conditions to funding any Loan or issuance
of a Letter of Credit without the consent of Lenders holding more than 50% of
the outstanding Loans, Letter of Credit Exposure and unused Commitments under
the applicable Facility, and (vii) waive, amend or modify in a manner that, by
its terms, adversely affects a Lender's participation in a Facility differently
from those of the Lenders participating in the other Facility, shall require the
consent of such adversely affected Lenders holding more than 50% of the
outstanding Loans, Letter of Credit Exposure (if applicable) and unused
Commitments under such Facility; PROVIDED, FURTHER, that no such agreement shall
amend, modify or otherwise affect the rights or duties of any Agent, the
Swingline Lender (in its capacity as such) or the Issuing Bank hereunder or
under any other Loan Document without the prior written consent of such Agent,
the Swingline Lender or the Issuing Bank, as applicable. Each Lender and each
holder of a Note shall be bound by any waiver, amendment or modification
authorized by this Section 9.08 regardless of whether its Note shall have been
marked to make reference thereto, and any consent by any Lender or holder of a
Note pursuant to this Section 9.08 shall bind any person subsequently acquiring
a Note from it, whether or not such Note shall have been so marked.
SECTION 9.09. INTEREST RATE LIMITATION. Notwithstanding anything herein
or in the Notes to the contrary, if at any time the applicable interest rate,
together with all fees and charges which are treated as interest under
applicable law (collectively the "CHARGES"), as provided for herein or in any
other document executed in connection herewith, or otherwise contracted for,
charged, received, taken or reserved by any Lender, shall exceed the maximum
rate permitted by applicable law (the "MAXIMUM RATE") which may be contracted
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for, charged, taken, received or reserved by such Lender in accordance with
applicable law, the rate of interest payable under the affected Note held by
such Lender, together with all Charges payable to such Lender, shall be limited
to the Maximum Rate.
SECTION 9.10. ENTIRE AGREEMENT. (a) This Agreement, the other Loan
Documents and the Fee Letter constitute the entire contract among the parties
relative to the subject matter hereof and thereof. Any previous agreement among
the parties with respect to the subject matter hereof and thereof is superseded
by this Agreement, the other Loan Documents and the Fee Letter. Nothing in this
Agreement, the other Loan Documents or the Fee Letter, expressed or implied, is
intended to confer upon any party (other than the parties hereto and the other
Secured Parties) any rights, remedies, obligations or liabilities under or by
reason of this Agreement, the other Loan Documents or the Fee Letter.
(b) THIS WRITTEN AGREEMENT, THE NOTES, THE OTHER LOAN DOCUMENTS, THE
FEE LETTER AND THE DOCUMENTS EXECUTED IN CONNECTION HEREWITH REPRESENT THE FINAL
AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
SECTION 9.11. SEVERABILITY. In the event any one or more of the
provisions contained in this Agreement or in any other Loan Document should be
held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein and therein
shall not in any way be affected or impaired thereby. The parties shall endeavor
in good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions the economic effect of which comes as close as
possible to that of the invalid, illegal or unenforceable provisions.
SECTION 9.12. COUNTERPARTS. This Agreement may be executed by the
parties hereto in several counterparts and each such counterpart shall be deemed
to be an original, admissible into evidence, but all such counterparts shall
together constitute but one and the same Agreement, and shall become effective
as provided in Section 9.03. Delivery of an executed counterpart of this
Agreement by facsimile shall be equally as effective as delivery of a manually
executed counterpart of this Agreement. Any party delivering an executed
counterpart of this Agreement by facsimile shall also deliver a manually
executed counterpart of this Agreement, but the failure to deliver a manually
executed counterpart shall not affect the validity, enforceability, and binding
effect of this Agreement.
SECTION 9.13. HEADINGS. Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of this
Agreement and are not to affect the construction of, or to be taken into
consideration in interpreting, this Agreement.
SECTION 9.14. REMEDIES. In case any one or more of the covenants and/or
agreements set forth in this Agreement shall have been breached by the Borrower,
then the Administrative Agent may, on behalf of the Lenders, proceed to protect
and enforce the Lenders' rights either by suit in equity and/or by action at
law, including, but not limited to,
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an action for damages as a result of any such breach and/or an action for
specific performance of any such covenant or agreement contained in this
Agreement. Without limitation of the foregoing, the Borrower agrees that failure
to comply with any of the covenants contained herein will cause irreparable harm
and that specific performance shall be available in the event of any breach
thereof. The Agent acting pursuant to this Section 9.14, shall be indemnified
against all liability, loss or damage, together with all reasonable costs and
expenses related thereto (including reasonable legal and accounting fees and
expenses) in accordance with Section 9.05.
SECTION 9.15. JURISDICTION; CONSENT TO SERVICE OF PROCESS. (a) The
Borrower hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any Ohio State court or Federal
court of the United States of America sitting in Dayton, Ohio, and any appellate
court from any thereof, in any action or proceeding arising out of or relating
to this Agreement or the other Loan Documents, or for recognition or enforcement
of any judgment, and hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined
in such Ohio State court or, to the extent permitted by law, in such Federal
court. Each of the parties hereto agrees that a final judgment in any such
action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement shall affect any right that any Agent, the Issuing
Bank or any Lender may otherwise have to bring any action or proceeding relating
to this Agreement or the other Loan Documents against the Borrower or its
properties in the courts of any jurisdiction.
(b) The Borrower hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Agreement or the other Loan Documents in any
Ohio State court or Federal court of the United States of America sitting in
Dayton, Ohio. Each of the parties hereto hereby irrevocably waives, to the
fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.
(c) Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 9.01. Nothing in this
Agreement will affect the right of any party to this Agreement to serve process
in any other manner permitted by law.
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IN WITNESS WHEREOF, the Borrower, the Agents, the Issuing Bank and the
Lenders have caused this Agreement to be duly executed by their respective
authorized officers as of the day and year first above written.
XXXXXXX & XXXXX, INC.,
as Borrower
by_____________________________
Name:
Title:
BANK ONE, DAYTON, N.A., as Administrative
Agent, as Issuing Bank and as a Lender
by_____________________________
Name:
Title:
NATIONSBANK, N.A.,
as Syndication Agent and as a Lender
by_____________________________
Name:
Title:
ABN AMRO BANK N.V.,
as a Lender
by_____________________________
Name:
Title:
NATIONAL CITY BANK OF COLUMBUS,
as a Lender
by_____________________________
Name:
Title:
000
XXX XXXX XX XXXX XXXXXX,
as a Lender
by_____________________________
Name:
Title:
