Exhibit 10.1
364-DAY CREDIT AGREEMENT
Dated as of June 30, 2005
OMNICOM FINANCE INC., a Delaware corporation ("OFI"), OMNICOM CAPITAL
INC., a Connecticut corporation ("OCI"), and OMNICOM FINANCE PLC, a corporation
organized under the laws of England and Wales ("OFP"; OFI, OCI and OFP are each
a "Borrower" and collectively, the "Borrowers"), OMNICOM GROUP INC., a New York
corporation (the "Guarantor"), the banks, financial institutions and other
institutional lenders (the "Initial Lenders") listed on the signature pages
hereof, CITIGROUP GLOBAL MARKETS INC. and X.X. XXXXXX SECURITIES INC., as lead
arrangers and book managers, ABN AMRO BANK N.V., as syndication agent, JPMORGAN
CHASE BANK, N.A., BANK OF AMERICA, N.A. and BANCO BILBAO VIZCAYA ARGENTARIA, as
documentation agents, and CITIBANK, N.A. ("Citibank"), as administrative agent
(the "Agent") for the Lenders (as hereinafter defined), agree as follows:
ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.01. Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):
"Advance" means an advance by a Lender to a Borrower as part of a
Borrowing and refers to a Base Rate Advance or a Eurodollar Rate Advance
(each of which shall be a "Type" of Advance).
"Affiliate" means, as to any Person, any other Person (other than an
individual) that, directly or indirectly, controls, is controlled by or is
under common control with such Person; provided that, for purposes of
Section 5.01(h), an Affiliate of a Borrower shall include any Person that
(x) is a director or officer of such Person or (y) has the possession,
direct or indirect, of the power to vote 5% or more of the Voting Stock of
such Person. A Person shall be deemed to control another Person if such
Person possesses, directly or indirectly, the power to direct or cause the
direction of the management and policies of such Person, whether through
the ownership of Voting Stock, by contract or otherwise.
"Agent's Account" means the account of the Agent maintained by the
Agent at Citibank at its office at 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx
Xxxx 00000, Account No. 00000000, Attention: Bank Loan Syndications.
"Applicable Lending Office" means, with respect to each Lender, such
Lender's Domestic Lending Office in the case of a Base Rate Advance and
such Lender's Eurodollar Lending Office in the case of a Eurodollar Rate
Advance.
"Applicable Margin" means (a) for Base Rate Advances, 0% per annum
and (b) for Eurodollar Rate Advances, as of any date, a percentage per
annum determined by reference to the Public Debt Rating in effect on such
date as set forth below:
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Applicable Margin for Applicable Margin for
Eurodollar Rate Advances Eurodollar Rate Advances
Public Debt Rating Prior to the Term Loan On and After the Term Loan
S&P/Xxxxx'x Conversion Date Conversion Date
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Xxxxx 0
A+ or A1 or above 0.165% 0.625%
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Level 2
A or A2 0.275% 0.750%
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Level 3
A- or A3 0.390% 0.875%
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Xxxxx 0
BBB+ or Baa1 0.500% 1.000%
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Level 5
BBB or Baa2 0.725% 1.250%
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Xxxxx 0
Xxxxx xxxx Xxxxx 0 0.800% 1.500%
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"Applicable Percentage" means, as of any date prior to the Term Loan
Conversion Date, a percentage per annum determined by reference to the
Public Debt Rating in effect on such date as set forth below:
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Public Debt Rating Applicable
S&P/Xxxxx'x Percentage
-----------------------------------------------------
Xxxxx 0
A+ or A1 or above 0.085%
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Level 2
A or A2 0.100%
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Level 3
A- or A3 0.110%
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Xxxxx 0
BBB+ or Baa1 0.125%
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Level 5
BBB or Baa2 0.150%
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Xxxxx 0
Xxxxx xxxx Xxxxx 0 0.200%
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"Applicable Utilization Fee" means, as of any date prior to the Term
Loan Conversion Date that the aggregate Advances exceed 50% of the
aggregate Commitments, a percentage per annum determined by reference to
the Public Debt Rating in effect on such date as set forth below:
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Public Debt Rating Applicable
S&P/Xxxxx'x Utilization Fee
-----------------------------------------------------
Xxxxx 0
A+ or A1 or above 0.125%
-----------------------------------------------------
Level 2
A or A2 0.125%
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Level 3
A- or A3 0.125%
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Xxxxx 0
BBB+ or Baa1 0.125%
-----------------------------------------------------
Level 5
BBB or Baa2 0.125%
-----------------------------------------------------
Xxxxx 0
Xxxxx xxxx Xxxxx 0 0.250%
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"Assignment and Acceptance" means an assignment and acceptance
entered into by a Lender and an Eligible Assignee, and accepted by the
Agent, in substantially the form of Exhibit C hereto.
"Bankruptcy Law" means Title 11, U.S. Code, or any similar foreign,
federal or state law for the relief of debtors.
"Base Rate" means a fluctuating interest rate per annum in effect
from time to time, which rate per annum shall at all times be equal to the
highest of:
(a) the rate of interest announced publicly by Citibank in New
York, New York, from time to time, as Citibank's base rate;
(b) the sum (adjusted to the nearest 1/4 of 1% or, if there is
no nearest 1/4 of 1%, to the next higher 1/4 of 1%) of (i) 1/2 of 1%
per annum, plus (ii) the rate obtained by dividing (A) the latest
three-week moving average of secondary market morning offering rates
in the United States for three-month certificates of deposit of
major United States money market banks, such three-week moving
average (adjusted to the basis of a year of 360 days) being
determined weekly on each Monday (or, if such day is not a Business
Day, on the next succeeding Business Day) for the three-week period
ending on the previous Friday by Citibank on the basis of such rates
reported by certificate of deposit dealers to and published by the
Federal Reserve Bank of New York or, if such publication shall be
suspended or terminated, on the basis of quotations for such rates
received by Citibank from three New York certificate of deposit
dealers of recognized standing selected by Citibank, by (B) a
percentage equal to 100% minus the average of the daily percentages
specified during such three-week period by the Board of Governors of
the Federal Reserve System (or any successor) for determining the
maximum reserve requirement (including, but not limited to, any
emergency, supplemental or other marginal reserve requirement) for
Citibank with respect to liabilities consisting of or including
(among other liabilities) three-month U.S. dollar non-personal time
deposits in the United States, plus (iii) the average during such
three-week period of the annual assessment rates estimated by
Citibank for determining the then current annual assessment payable
by Citibank to the Federal Deposit Insurance Corporation (or any
successor) for insuring U.S. dollar deposits of Citibank in the
United States; and
(c) 1/2 of one percent per annum above the Federal Funds Rate.
"Base Rate Advance" means an Advance that bears interest as provided
in Section 2.06(a)(i).
"Borrowing" means (a) with respect to the making of Advances, a
borrowing consisting of simultaneous Advances of the same Type made by
each of the Lenders pursuant to Section 2.01; and (b) in other contexts
(i) that portion of the Advances comprised of all outstanding Base Rate
Advances and (ii) that portion of Advances converted into, or continued
as, Eurodollar Rate Advances having the same Interest Period.
"Business Day" means a day of the year on which banks are not
required or authorized by law to close in New York City and, if the
applicable Business Day relates to any Eurodollar Rate Advances, on which
dealings are carried on in the London interbank market.
"Commitment" means as to any Lender (a) the amount set forth
opposite such Lender's name on the signature pages hereof or (b) if such
Lender has entered into any Assignment and Acceptance, the amount set
forth for such Lender in the Register maintained by the Agent pursuant to
Section 9.07(d), as such amount may be reduced pursuant to Section 2.04.
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"Confidential Information" means information that a Loan Party
furnishes to the Agent or any Lender in a writing designated as
confidential, but does not include any such information that is or becomes
generally available to the public or that is or becomes available to the
Agent or such Lender from a source other than a Loan Party.
"Consolidated" refers to the consolidation of accounts in accordance
with GAAP.
"Convert", "Conversion" and "Converted" each refers to a conversion
of Advances of one Type into Advances of the other Type pursuant to
Section 2.07 or 2.08.
"Debt" of any Person means, without duplication, (a) all
indebtedness of such Person for borrowed money, (b) all obligations of
such Person for the deferred purchase price of property or services (other
than earn-out payment obligations of such Person in connection with the
purchase of property or services to the extent they are still contingent),
(c) all obligations of such Person evidenced by notes, bonds, debentures
or other similar instruments, (d) all obligations of such Person created
or arising under any conditional sale or other title retention agreement
with respect to property acquired by such Person (even though the rights
and remedies of the seller or lender under such agreement in the event of
default are limited to repossession or sale of such property), (e) all
obligations of such Person as lessee under leases that have been or should
be, in accordance with GAAP, recorded as capital leases, (f) all
obligations, contingent or otherwise, of such Person in respect of
acceptances, letters of credit or similar extensions of credit, (g) all
obligations of such Person in respect of Hedge Agreements, (h) all Debt of
others referred to in clauses (a) through (g) above or clause (i) below
and other payment obligations guaranteed directly or indirectly in any
manner by such Person, or in effect guaranteed directly or indirectly by
such Person through an agreement (1) to pay or purchase such Debt or to
advance or supply funds for the payment or purchase of such Debt, (2) to
purchase, sell or lease (as lessee or lessor) property, or to purchase or
sell services, primarily for the purpose of enabling the debtor to make
payment of such Debt or to assure the holder of such Debt against loss,
(3) to supply funds to or in any other manner invest in the debtor
(including any agreement to pay for property or services irrespective of
whether such property is received or such services are rendered) or (4)
otherwise to assure a creditor against loss, and (i) all Debt referred to
in clauses (a) through (h) above secured by (or for which the holder of
such Debt has an existing right, contingent or otherwise, to be secured
by) any Lien on property (including, without limitation, accounts and
contract rights) owned by such Person, even though such Person has not
assumed or become liable for the payment of such Debt.
"Debt for Borrowed Money" of any Person means all items that, in
accordance with GAAP, would be classified as indebtedness on a
Consolidated balance sheet of such Person.
"Default" means any Event of Default or any event that would
constitute an Event of Default but for the requirement that notice be
given or time elapse or both.
"Disclosed Litigation" has the meaning specified in Section 3.01(b).
"Domestic Lending Office" means, with respect to any Lender, the
office of such Lender specified as its "Domestic Lending Office" opposite
its name on Schedule I hereto or in the Assignment and Acceptance pursuant
to which it became a Lender, or such other office of such Lender as such
Lender may from time to time specify to the Borrowers and the Agent.
"EBITDA" means, for any period, net income (or net loss) plus the
sum of (a) net interest expense, (b) income tax expense, (c) depreciation
expense and (d) amortization expense, in each case determined in
accordance with GAAP for such period.
"Effective Date" has the meaning specified in Section 3.01.
"Eligible Assignee" means (i) a Lender; (ii) an Affiliate of a
Lender; and (iii) any other Person approved by the Agent and, unless an
Event of Default has occurred and is continuing at the time any
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assignment is effected in accordance with Section 9.07, the Guarantor,
such approval not to be unreasonably withheld or delayed; provided,
however, that neither the Guarantor nor an Affiliate of the Guarantor
shall qualify as an Eligible Assignee.
"Environmental Action" means any action, suit, demand, demand
letter, claim, notice of non-compliance or violation, notice of liability
or potential liability, investigation, proceeding, consent order or
consent agreement relating in any way to any Environmental Law,
Environmental Permit or hazardous materials or arising from alleged injury
or threat of injury to health, safety or the environment, including,
without limitation, (a) by any governmental or regulatory authority for
enforcement, cleanup, removal, response, remedial or other actions or
damages and (b) by any governmental or regulatory authority or any third
party for damages, contribution, indemnification, cost recovery,
compensation or injunctive relief.
"Environmental Law" means any federal, state, local or foreign
statute, law, ordinance, rule, regulation, code, order, judgment, decree
or judicial or agency interpretation, policy or guidance relating to
pollution or protection of the environment, health, safety or natural
resources, including, without limitation, those relating to the use,
handling, transportation, treatment, storage, disposal, release or
discharge of hazardous materials.
"Environmental Permit" means any permit, approval, identification
number, license or other authorization required under any Environmental
Law.
"ERISA" means the Employee Retirement Income Security Act of 1974,
as amended from time to time, and the regulations promulgated and rulings
issued thereunder.
"ERISA Affiliate" means any Person that for purposes of Title IV of
ERISA is a member of the Guarantor's controlled group, or under common
control with the Guarantor, within the meaning of Section 414 of the
Internal Revenue Code.
"ERISA Event" means (a) (i) the occurrence of a reportable event,
within the meaning of Section 4043 of ERISA, with respect to any Plan
unless the 30-day notice requirement with respect to such event has been
waived by the PBGC, or (ii) the requirements of subsection (1) of Section
4043(b) of ERISA (without regard to subsection (2) of such Section) are
met with respect to a contributing sponsor, as defined in Section
4001(a)(13) of ERISA, of a Plan, and an event described in paragraph (9),
(10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably
expected to occur with respect to such Plan within the following 30 days;
(b) the application for a minimum funding waiver with respect to a Plan;
(c) the provision by the administrator of any Plan of a notice of intent
to terminate such Plan pursuant to Section 4041(a)(2) of ERISA (including
any such notice with respect to a plan amendment referred to in Section
4041(e) of ERISA); (d) the cessation of operations at a facility of the
Guarantor or any ERISA Affiliate in the circumstances described in Section
4062(e) of ERISA; (e) the withdrawal by the Guarantor or any ERISA
Affiliate from a Multiple Employer Plan during a plan year for which it
was a substantial employer, as defined in Section 4001(a)(2) of ERISA; (f)
the conditions for the imposition of a lien under Section 302(f) of ERISA
shall have been met with respect to any Plan; (g) the adoption of an
amendment to a Plan requiring the provision of security to such Plan
pursuant to Section 307 of ERISA; or (h) the institution by the PBGC of
proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the
occurrence of any event or condition described in Section 4042 of ERISA
that constitutes grounds for the termination of, or the appointment of a
trustee to administer, a Plan.
"Eurocurrency Liabilities" has the meaning assigned to that term in
Regulation D of the Board of Governors of the Federal Reserve System, as
in effect from time to time.
"Eurodollar Lending Office" means, with respect to any Lender, the
office of such Lender specified as its "Eurodollar Lending Office"
opposite its name on Schedule I hereto or in the Assignment and Acceptance
pursuant to which it became a Lender (or, if no such office is specified,
its Domestic
5
Lending Office), or such other office of such Lender as such Lender may
from time to time specify to the Borrowers and the Agent.
"Eurodollar Rate" means, for any Interest Period for each Eurodollar
Rate Advance comprising part of the same Borrowing, an interest rate per
annum equal to the rate per annum obtained by dividing (a) the rate per
annum (rounded upward to the nearest whole multiple of 1/16 of 1% per
annum) appearing on Telerate Markets Page 3750 (or any successor page) as
the London interbank offered rate for deposits in U.S. dollars at
approximately 11:00 A.M. (London time) two Business Days prior to the
first day of such Interest Period for a term comparable to such Interest
Period or, if for any reason such rate is not available (but subject to
the provisions of Section 2.07), the average (rounded upward to the
nearest whole multiple of 1/16 of 1% per annum, if such average is not
such a multiple) of the rate per annum at which deposits in U.S. dollars
are offered by the principal office of each of the Reference Banks in
London, England to prime banks in the London interbank market at 11:00
A.M. (London time) two Business Days before the first day of such Interest
Period in an amount substantially equal to such Reference Bank's
Eurodollar Rate Advance comprising part of such Borrowing to be
outstanding during such Interest Period and for a period equal to such
Interest Period by (b) a percentage equal to 100% minus the Eurodollar
Rate Reserve Percentage for such Interest Period.
"Eurodollar Rate Advance" means an Advance that bears interest as
provided in Section 2.06(a)(ii).
"Eurodollar Rate Reserve Percentage" for any Interest Period for all
Eurodollar Rate Advances comprising part of the same Borrowing means the
reserve percentage applicable two Business Days before the first day of
such Interest Period under regulations issued from time to time by the
Board of Governors of the Federal Reserve System (or any successor) for
determining the maximum reserve requirement (including, without
limitation, any emergency, supplemental or other marginal reserve
requirement) for a member bank of the Federal Reserve System in New York
City with respect to liabilities or assets consisting of or including
Eurocurrency Liabilities (or with respect to any other category of
liabilities that includes deposits by reference to which the interest rate
on Eurodollar Rate Advances is determined) having a term equal to such
Interest Period.
"Events of Default" has the meaning specified in Section 6.01.
"Federal Funds Rate" means, for any period, a fluctuating interest
rate per annum equal for each day during such period to 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 for such day (or, if such day is not a Business Day, for the
next preceding Business Day) by the Federal Reserve Bank of New York, or,
if such rate is not so published for any day that is a Business Day, the
average of the quotations for such day on such transactions received by
the Agent from three Federal funds brokers of recognized standing selected
by it.
"GAAP" has the meaning specified in Section 1.03.
"Guaranteed Obligations" has the meaning specified in Section 7.01.
"Guaranty" means the provisions of Article VII.
"Hedge Agreements" means interest rate swap, cap or collar
agreements, interest rate future or option contracts, currency swap
agreements, currency future or option contracts and other similar
agreements.
"Information Memorandum" means the information memorandum dated
April 18, 2005 used by the Agent in connection with the syndication of the
Commitments.
6
"Interest Period" means, for each Eurodollar Rate Advance comprising
part of the same Borrowing, the period commencing on the date of such
Eurodollar Rate Advance or the date of the Conversion of any Base Rate
Advance into such Eurodollar Rate Advance and ending on the last day of
the period selected by the applicable Borrower pursuant to the provisions
below and, thereafter, with respect to Eurodollar Rate Advances, each
subsequent period commencing on the last day of the immediately preceding
Interest Period and ending on the last day of the period selected by such
Borrower pursuant to the provisions below. The duration of each such
Interest Period shall be one, two, three or six months, and subject to
clause (c) of this definition, nine months, as the applicable Borrower
may, upon notice received by the Agent not later than 11:00 A.M. (New York
City time) on the third Business Day prior to the first day of such
Interest Period, select; provided, however, that:
(a) the Borrowers may not select any Interest Period that ends
after the Termination Date or, if the Advances have been converted
to a term loan pursuant to Section 2.05 prior to such selection,
that ends after the Maturity Date;
(b) Interest Periods commencing on the same date for
Eurodollar Rate Advances comprising part of the same Borrowing shall
be of the same duration;
(c) in the case of any such Borrowing, the Borrowers shall not
be entitled to select an Interest Period having duration of nine
months unless, by 2:00 P.M. (New York City time) on the third
Business Day prior to the first day of such Interest Period, each
Lender notifies the Agent that such Lender will be providing funding
for such Borrowing with such Interest Period (the failure of any
Lender to so respond by such time being deemed for all purposes of
this Agreement as an objection by such Lender to the requested
duration of such Interest Period); provided that, if any or all of
the Lenders object to the requested duration of such Interest
Period, the duration of the Interest Period for such Borrowing shall
be one, two, three or six months, as specified by the Borrower
requesting such Borrowing in the applicable Notice of Borrowing as
the desired alternative to an Interest Period of nine months;
(d) whenever the last day of any Interest Period would
otherwise occur on a day other than a Business Day, the last day of
such Interest Period shall be extended to occur on the next
succeeding Business Day, provided, however, that, if such extension
would cause the last day of such Interest Period to occur in the
next following calendar month, the last day of such Interest Period
shall occur on the next preceding Business Day; and
(e) whenever the first day of any Interest Period occurs on a
day of an initial calendar month for which there is no numerically
corresponding day in the calendar month that succeeds such initial
calendar month by the number of months in such Interest Period, such
Interest Period shall end on the last Business Day of such
succeeding calendar month.
"Internal Revenue Code" means the Internal Revenue Code of 1986, as
amended from time to time, and the regulations promulgated and rulings
issued thereunder.
"Lenders" means the Initial Lenders and each Person that shall
become a party hereto pursuant to Section 9.07.
"Lien" means any lien, security interest or other charge or
encumbrance of any kind, or any other type of preferential arrangement
intended to provide security for the payment or performance of an
obligation, including, without limitation, the lien or retained security
title of a conditional vendor and any easement, right of way or other
encumbrance on title to real property.
"Loan Party" means each Borrower and the Guarantor.
7
"Material Adverse Change" means any material adverse change in the
business, condition (financial or otherwise), operations, performance or
properties of the Guarantor or the Guarantor and its Subsidiaries taken as
a whole.
"Material Adverse Effect" means a material adverse effect on (a) the
business, condition (financial or otherwise), operations, performance or
properties of the Guarantor or the Guarantor and its Subsidiaries taken as
a whole, (b) the rights and remedies of the Agent or any Lender under this
Agreement or any Note or (c) the ability of any Loan Party to perform its
obligations under this Agreement or any Note.
"Maturity Date" means the earlier of (a) the first anniversary of
the Termination Date and (b) the date of termination in whole of the
aggregate Commitments pursuant to Section 2.04 or 6.01.
"Xxxxx'x" means Xxxxx'x Investors Service, Inc.
"Multiemployer Plan" means a multiemployer plan, as defined in
Section 4001(a)(3) of ERISA, to which the Guarantor or any ERISA Affiliate
is making or accruing an obligation to make contributions, or has within
any of the preceding five plan years made or accrued an obligation to make
contributions.
"Multiple Employer Plan" means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the
Guarantor or any ERISA Affiliate and at least one Person other than the
Guarantor and the ERISA Affiliates or (b) was so maintained and in respect
of which the Guarantor or any ERISA Affiliate could have liability under
Section 4064 or 4069 of ERISA in the event such plan has been or were to
be terminated.
"Note" means a promissory note of a Borrower payable to the order of
any Lender, delivered pursuant to a request made under Section 2.15 in
substantially the form of Exhibit A hereto, evidencing the aggregate
indebtedness of such Borrower to such Lender resulting from the Advances
made by such Lender to such Borrower.
"Notice of Borrowing" has the meaning specified in Section 2.02(a).
"PBGC" means the Pension Benefit Guaranty Corporation (or any
successor).
"Permitted Liens" means such of the following as to which no
enforcement, collection, execution, levy or foreclosure proceeding shall
have been commenced: (a) Liens for taxes, assessments and governmental
charges or levies to the extent not required to be paid under Section
5.01(b) hereof; (b) Liens imposed by law, such as materialmen's,
mechanics', carriers', workmen's and repairmen's Liens and other similar
Liens arising in the ordinary course of business securing obligations that
are not overdue for a period of more than 30 days or that are being
contested in good faith and by appropriate proceedings that prevent the
forfeiture or sale of the assets subject to such Lien; (c) pledges or
deposits to secure obligations under workers' compensation laws or similar
legislation or to secure public or statutory obligations or, in any such
case, to secure reimbursement obligations under letters of credit or bonds
issued to support such obligations; and (d) easements, rights of way and
other encumbrances on title to real property that do not render title to
the property encumbered thereby unmarketable or materially adversely
affect the use of such property for its present purposes.
"Person" means an individual, partnership, corporation (including a
business trust), joint stock company, trust, unincorporated association,
joint venture, limited liability company or other entity, or a government
or any political subdivision or agency thereof.
"Plan" means a Single Employer Plan or a Multiple Employer Plan.
"Post-Petition Interest" has the meaning specified in Section 7.05.
8
"PTR Scheme" shall mean the Provisional Treaty Relief Scheme as
described in Inland Revenue Guidelines dated July 1999 and administered by
the Inland Revenue's Centre for Non-Residents.
"Public Debt Rating" means, as of any date, the rating that has been
most recently announced by either S&P or Xxxxx'x, as the case may be, for
any class of non-credit enhanced long-term senior unsecured debt issued by
the Guarantor or, if either such rating agency shall have issued more than
one such rating, the lowest such rating issued by such rating agency. For
purposes of the foregoing, (a) if only one of S&P and Xxxxx'x shall have
in effect a Public Debt Rating, the Applicable Margin, the Applicable
Percentage and the Applicable Utilization Fee shall be determined by
reference to the available rating; (b) if neither S&P nor Xxxxx'x shall
have in effect a Public Debt Rating, the Applicable Margin, the Applicable
Percentage and the Applicable Utilization Fee will be set in accordance
with Level 6 under the definition of "Applicable Margin", "Applicable
Percentage" or "Applicable Utilization Fee", as the case may be; (c) if
the ratings established by S&P and Xxxxx'x shall fall within different
levels, the Applicable Margin, the Applicable Percentage and the
Applicable Utilization Fee shall be based upon the higher rating unless
such rating differs by two or more levels, in which case the applicable
level will be deemed to be one level above the lower of such levels; (d)
if any rating established by S&P or Xxxxx'x shall be changed, such change
shall be effective as of the date on which such change is first announced
publicly by the rating agency making such change; and (e) if S&P or
Xxxxx'x shall change the basis on which ratings are established, each
reference to the Public Debt Rating announced by S&P or Xxxxx'x, as the
case may be, shall refer to the then equivalent rating by S&P or Xxxxx'x,
as the case may be.
"Reference Banks" means Citibank, ABN AMRO Bank N.V., JPMorgan Chase
Bank, N.A., Bank of America, N.A. and Banco Bilbao Vizcaya Argentaria.
"Register" has the meaning specified in Section 9.07(d).
"Required Lenders" means at any time Lenders owed at least a
majority in interest of the then aggregate unpaid principal amount of the
Advances owing to Lenders, or, if no such principal amount is then
outstanding, Lenders having at least a majority in interest of the
Commitments.
"S&P" means Standard & Poor's, a division of The XxXxxx-Xxxx
Companies, Inc.
"Single Employer Plan" means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the
Guarantor or any ERISA Affiliate and no Person other than the Guarantor
and the ERISA Affiliates or (b) was so maintained and in respect of which
the Guarantor or any ERISA Affiliate could have liability under Section
4069 of ERISA in the event such plan has been or were to be terminated.
"Subordinated Obligations" has the meaning specified in Section
7.05.
"Subsidiary" of any Person means any corporation, partnership, joint
venture, limited liability company, trust or estate of which (or in which)
more than 50% of (a) the issued and outstanding Voting Stock of such
Person, (b) the interest in the capital or profits of such limited
liability company, partnership or joint venture or (c) the beneficial
interest in such trust or estate is at the time directly or indirectly
owned or controlled by such Person, by such Person and one or more of its
other Subsidiaries or by one or more of such Person's other Subsidiaries.
"Term Loan Conversion Date" means the Termination Date on which all
Advances outstanding on such date are converted into a term loan pursuant
to Section 2.05.
"Term Loan Election" has the meaning specified in Section 2.05.
"Termination Date" means the earlier of (a) June 29, 2006 and (b)
the date of termination in whole of the Commitments pursuant to Section
2.04 or 6.01.
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"Voting Stock" means capital stock issued by a corporation, or
equivalent interests in any other Person, the holders of which are
ordinarily, in the absence of contingencies, entitled to vote for the
election of directors (or persons performing similar functions) of such
Person, even if the right so to vote has been suspended by the happening
of such a contingency.
SECTION 1.02. Computation of Time Periods. In this Agreement in the
computation of periods of time from a specified date to a later specified date,
the word "from" means "from and including" and the words "to" and "until" each
mean "to but excluding".
SECTION 1.03. Accounting Terms. All accounting terms not specifically
defined herein shall be construed in accordance with generally accepted
accounting principles consistent with those applied in the preparation of the
financial statements referred to in Section 4.01(e) ("GAAP").
ARTICLE II
AMOUNTS AND TERMS OF THE ADVANCES
SECTION 2.01. The Advances. Each Lender severally agrees, on the terms and
conditions hereinafter set forth, to make Advances to the Borrowers from time to
time on any Business Day during the period from the Effective Date until the
Termination Date in an aggregate amount not to exceed at any time outstanding
such Lender's Commitment. Each Borrowing shall be in an aggregate amount of
$10,000,000 or an integral multiple of $1,000,000 in excess thereof and shall
consist of Advances of the same Type made on the same day by the Lenders ratably
according to their respective Commitments. Within the limits of each Lender's
Commitment, the Borrowers may borrow under this Section 2.01, prepay pursuant to
Section 2.09 and reborrow under this Section 2.01.
SECTION 2.02. Making the Advances. (a) Each Borrowing shall be made on
notice, given not later than (x) 11:00 A.M. (New York City time) on the third
Business Day prior to the date of the proposed Borrowing in the case of a
Borrowing consisting of Eurodollar Rate Advances or (y) 11:00 A.M. (New York
City time) on the date of the proposed Borrowing in the case of a Borrowing
consisting of Base Rate Advances, by the applicable Borrower to the Agent, which
shall give to each Lender prompt notice thereof by telecopier. Each such notice
of a Borrowing (a "Notice of Borrowing") shall be by telephone, confirmed
immediately in writing, or telecopier in substantially the form of Exhibit B
hereto, specifying therein the requested (i) date of such Borrowing, (ii) Type
of Advances comprising such Borrowing, (iii) aggregate amount of such Borrowing,
and (iv) in the case of a Borrowing consisting of Eurodollar Rate Advances,
initial Interest Period for each such Advance. Each Lender shall, before 1:00
P.M. (New York City time) on the date of such Borrowing make available for the
account of its Applicable Lending Office to the Agent at the Agent's Account, in
same day funds, such Lender's ratable portion of such Borrowing. After the
Agent's receipt of such funds and upon fulfillment of the applicable conditions
set forth in Article III, the Agent will make such funds available to the
Borrower at the Agent's address referred to in Section 9.02.
(b) Anything in subsection (a) above to the contrary notwithstanding, (i)
the Borrowers may not select Eurodollar Rate Advances for any Borrowing if the
aggregate amount of such Borrowing is less than $10,000,000 or if the obligation
of the Lenders to make Eurodollar Rate Advances shall then be suspended pursuant
to Section 2.07 or 2.11 and (ii) the Eurodollar Rate Advances may not be
outstanding as part of more than six separate Borrowings.
(c) Each Notice of Borrowing shall be irrevocable and binding on the
Borrower requesting such Borrowing. In the case of any Borrowing that the
related Notice of Borrowing specifies is to be comprised of Eurodollar Rate
Advances, the applicable Borrower shall indemnify each Lender against any loss,
cost or expense incurred by such Lender as a result of any failure to fulfill on
or before the date specified in such Notice of Borrowing for such Borrowing the
applicable conditions set forth in Article III, including, without limitation,
any loss (including loss of anticipated profits), cost or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired by
such Lender to fund the Advance to be made by such Lender as part of such
Borrowing when such Advance, as a result of such failure, is not made on such
date.
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(d) Unless the Agent shall have received notice from a Lender prior to the
time of any Borrowing that such Lender will not make available to the Agent such
Lender's ratable portion of such Borrowing, the Agent may assume that such
Lender has made such portion available to the Agent on the date of such
Borrowing in accordance with subsection (a) of this Section 2.02 and the Agent
may, in reliance upon such assumption, make available to the applicable Borrower
on such date a corresponding amount. If and to the extent that such Lender shall
not have so made such ratable portion available to the Agent, such Lender and
such Borrower severally agree to repay to the Agent forthwith on demand such
corresponding amount together with interest thereon, for each day from the date
such amount is made available to such Borrower until the date such amount is
repaid to the Agent, at (i) in the case of a Borrower, the interest rate
applicable at the time to Advances comprising such Borrowing and (ii) in the
case of such Lender, the Federal Funds Rate. If such Lender shall repay to the
Agent such corresponding amount, such amount so repaid shall constitute such
Lender's Advance as part of such Borrowing for purposes of this Agreement.
(e) The failure of any Lender to make the Advance to be made by it as part
of any Borrowing shall not relieve any other Lender of its obligation, if any,
hereunder to make its Advance on the date of such Borrowing, but no Lender shall
be responsible for the failure of any other Lender to make the Advance to be
made by such other Lender on the date of any Borrowing.
SECTION 2.03. Fees. (a) Facility Fee. The Borrowers agree to pay to the
Agent for the account of each Lender a facility fee on the aggregate amount of
such Lender's Commitment from the Effective Date in the case of each Initial
Lender and from the effective date specified in the Assignment and Acceptance
pursuant to which it became a Lender in the case of each other Lender until the
Termination Date at a rate per annum equal to the Applicable Percentage in
effect from time to time, payable in arrears quarterly on the last day of each
March, June, September and December, commencing September 30, 2005, and on the
Termination Date.
(b) Agent's Fees. The Borrowers shall pay to the Agent for its own account
such fees as may from time to time be agreed between the Guarantor and the
Agent.
SECTION 2.04. Termination or Reduction of the Commitments. (a) Optional.
The Borrowers shall have the right, upon at least five Business Days' notice to
the Agent, to terminate in whole or permanently reduce ratably in part the
unused portions of the respective Commitments of the Lenders, provided that each
partial reduction shall be in the aggregate amount of $10,000,000 or an integral
multiple of $1,000,000 in excess thereof.
(b) Mandatory. On the Termination Date, if the Borrowers have made the
Term Loan Election in accordance with Section 2.05 prior to such date, and from
time to time thereafter upon each prepayment of the Advances, the Commitments of
the Lenders shall be automatically and permanently reduced on a pro rata basis
by an amount equal to the amount by which (i) the aggregate Commitments
immediately prior to such reduction exceeds (ii) the aggregate unpaid principal
amount of all Advances outstanding at such time.
SECTION 2.05. Repayment of Advances. The Borrowers shall, subject to the
next succeeding sentence, repay to the Agent for the ratable account of the
Lenders on the Termination Date the aggregate principal amount of the Advances
then outstanding. The Borrowers may, upon not less than 15 days' notice to the
Agent, elect (the "Term Loan Election") to convert all of the Advances
outstanding on the Termination Date in effect at such time into a term loan
which the Borrowers shall repay in full ratably to the Lenders on the Maturity
Date; provided that the Term Loan Election may not be exercised if a Default has
occurred and is continuing on the date of notice of the Term Loan Election or on
the date on which the Term Loan Election is to be effected. All Advances
converted into a term loan pursuant to this Section 2.05 shall continue to
constitute Advances except that the Borrowers may not reborrow pursuant to
Section 2.01 after all or any portion of such Advances have been prepaid
pursuant to Section 2.09.
SECTION 2.06. Interest on Advances. (a) Scheduled Interest. The Borrowers
shall pay interest on the unpaid principal amount of each Advance owing to each
Lender from the date of such Advance until such principal amount shall be paid
in full, at the following rates per annum:
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(i) Base Rate Advances. During such periods as such Advance is a
Base Rate Advance, a rate per annum equal at all times to the sum of (x)
the Base Rate in effect from time to time plus (y) the Applicable Margin
in effect from time to time plus (z) the Applicable Utilization Fee, if
any, in effect from time to time, payable in arrears quarterly on the last
day of each March, June, September and December during such periods and on
the date such Base Rate Advance shall be Converted or paid in full.
(ii) Eurodollar Rate Advances. During such periods as such Advance
is a Eurodollar Rate Advance, a rate per annum equal at all times during
each Interest Period for such Advance to the sum of (x) the Eurodollar
Rate for such Interest Period for such Advance plus (y) the Applicable
Margin in effect from time to time plus (z) the Applicable Utilization
Fee, if any, in effect from time to time, payable in arrears on the last
day of such Interest Period and, if such Interest Period has a duration of
more than three months, on each day that occurs during such Interest
Period every three months from the first day of such Interest Period and
on the date such Eurodollar Rate Advance shall be Converted or paid in
full.
(b) Default Interest. Upon the occurrence and during the continuance of an
Event of Default under Section 6.01(a), the Agent may, and upon the request of
the Required Lenders shall, require the Borrowers to pay interest ("Default
Interest") on (i) the unpaid principal amount of each Advance owing to each
Lender, payable in arrears on the dates referred to in clause (a)(i) or (a)(ii)
above, at a rate per annum equal at all times to 2% per annum above the rate per
annum required to be paid on such Advance pursuant to clause (a)(i) or (a)(ii)
above and (ii) to the fullest extent permitted by law, the amount of any
interest, fee or other amount payable hereunder that is not paid when due, from
the date such amount shall be due until such amount shall be paid in full,
payable in arrears on the date such amount shall be paid in full and on demand,
at a rate per annum equal at all times to 2% per annum above the rate per annum
required to be paid on Base Rate Advances pursuant to clause (a)(i) above;
provided, however, that following acceleration of the Advances pursuant to
Section 6.01, Default Interest shall accrue and be payable hereunder whether or
not previously required by the Agent.
SECTION 2.07. Interest Rate Determination. (a) Each Reference Bank agrees
to furnish to the Agent timely information for the purpose of determining each
Eurodollar Rate. If any one or more of the Reference Banks shall not furnish
such timely information to the Agent for the purpose of determining any such
interest rate, the Agent shall determine such interest rate on the basis of
timely information furnished by the remaining Reference Banks. The Agent shall
give prompt notice to the applicable Borrower and the Lenders of the applicable
interest rate determined by the Agent for purposes of Section 2.06(a)(i) or
(ii), and the rate, if any, furnished by each Reference Bank for the purpose of
determining the interest rate under Section 2.06(a)(ii).
(b) If, with respect to any Eurodollar Rate Advances, the Required Lenders
notify the Agent that the Eurodollar Rate for any Interest Period for such
Advances will not adequately reflect the cost to such Required Lenders of
making, funding or maintaining their respective Eurodollar Rate Advances for
such Interest Period, the Agent shall forthwith so notify the applicable
Borrower and the Lenders, whereupon (i) each Eurodollar Rate Advance will
automatically, on the last day of the then existing Interest Period therefor,
Convert into a Base Rate Advance, and (ii) the obligation of the Lenders to
make, or to Convert Advances into, Eurodollar Rate Advances shall be suspended
until the Agent shall notify the Borrowers and the Lenders that the
circumstances causing such suspension no longer exist.
(c) If any Borrower shall fail to select the duration of any Interest
Period for any Eurodollar Rate Advances in accordance with the provisions
contained in the definition of "Interest Period" in Section 1.01, the Agent will
forthwith so notify such Borrower and the Lenders and such Advances will
automatically, on the last day of the then existing Interest Period therefor,
Convert into Base Rate Advances.
(d) On the date on which the aggregate unpaid principal amount of
Eurodollar Rate Advances comprising any Borrowing shall be reduced, by payment
or prepayment or otherwise, to less than $10,000,000, such Advances shall
automatically Convert into Base Rate Advances.
(e) Upon the occurrence and during the continuance of any Event of Default
under Section 6.01(a), (i) each Eurodollar Rate Advance will automatically, on
the last day of the then existing Interest
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Period therefor, Convert into a Base Rate Advance and (ii) the obligation of the
Lenders to make, or to Convert Advances into, Eurodollar Rate Advances shall be
suspended.
(f) If Telerate Markets Page 3750 is unavailable and fewer than two
Reference Banks furnish timely information to the Agent for determining the
Eurodollar Rate for any Eurodollar Rate Advances,
(i) the Agent shall forthwith notify the Borrowers and the Lenders
that the interest rate cannot be determined for such Eurodollar Rate
Advances,
(ii) with respect to Eurodollar Rate Advances, each such Advance
will automatically, on the last day of the then existing Interest Period
therefor, Convert into a Base Rate Advance (or if such Advance is then a
Base Rate Advance, will continue as a Base Rate Advance), and
(iii) the obligation of the Lenders to make Eurodollar Rate Advances
or to Convert Advances into Eurodollar Rate Advances shall be suspended
until the Agent shall notify the Borrowers and the Lenders that the
circumstances causing such suspension no longer exist.
SECTION 2.08. Optional Conversion of Advances. Each Borrower may on any
Business Day, upon notice given to the Agent not later than 11:00 A.M. (New York
City time) on the third Business Day prior to the date of the proposed
Conversion and subject to the provisions of Sections 2.07 and 2.11, Convert all
or any portion of the Advances of one Type comprising the same Borrowing into
Advances of the other Type; provided, however, that any Conversion of Eurodollar
Rate Advances into Base Rate Advances shall be made only on the last day of an
Interest Period for such Eurodollar Rate Advances, any Conversion of Base Rate
Advances into Eurodollar Rate Advances shall be in an amount not less than the
minimum amount specified in Section 2.02(b) and no Conversion of any Advances
shall result in more separate Borrowings than permitted under Section 2.02(b).
Each such notice of a Conversion shall, within the restrictions specified above,
specify (i) the date of such Conversion, (ii) the Advances to be Converted, and
(iii) if such Conversion is into Eurodollar Rate Advances, the duration of the
initial Interest Period for each such Advance. Each notice of Conversion shall
be irrevocable and binding on the applicable Borrower.
SECTION 2.09. Prepayments of Advances. Each Borrower may, upon notice at
least two Business Days' prior to the date of such prepayment, in the case of
Eurodollar Rate Advances, and not later than 11:00 A.M. (New York City time) on
the date of such prepayment, in the case of Base Rate Advances, to the Agent
stating the proposed date and aggregate principal amount of the prepayment, and
if such notice is given the Borrower giving such notice shall, prepay the
outstanding principal amount of the Advances comprising part of the same
Borrowing in whole or ratably in part, together with accrued interest to the
date of such prepayment on the principal amount prepaid; provided, however, that
(x) each partial prepayment shall be in an aggregate principal amount of
$10,000,000 or an integral multiple of $1,000,000 in excess thereof and (y) in
the event of any such prepayment of a Eurodollar Rate Advance, such Borrower
shall be obligated to reimburse the Lenders in respect thereof pursuant to
Section 9.04(c).
SECTION 2.10. Increased Costs. (a) If, due to either (i) the introduction
of or any change in or in the interpretation of any law or regulation after the
date hereof, or (ii) the compliance with any guideline or request issued after
the date hereof from any central bank or other governmental authority including,
without limitation, any agency of the European Union or similar monetary or
multinational authority (whether or not having the force of law), there shall be
any increase in the cost to any Lender of agreeing to make or making, funding or
maintaining Eurodollar Rate Advances (excluding for purposes of this Section
2.10 any such increased costs resulting from (i) Taxes or Other Taxes (as to
which Section 2.13 shall govern) and (ii) changes in the basis of taxation of
overall net income or overall gross income by the United States or by the
foreign jurisdiction or state under the laws of which such Lender is organized
or has its Applicable Lending Office or any political subdivision thereof), then
the Borrowers shall from time to time, upon demand by such Lender (with a copy
of such demand to the Agent), pay to the Agent for the account of such Lender
additional amounts sufficient to compensate such Lender for such increased cost;
provided, however, that before making any such demand, each Lender agrees to use
reasonable efforts (consistent with its internal policy and legal and regulatory
restrictions) to designate a different Applicable Lending Office if the making
of such a designation would avoid the need for, or reduce the amount of,
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such increased cost and would not, in the reasonable judgment of such Lender, be
otherwise disadvantageous to such Lender. A certificate as to the amount of such
increased cost, submitted to the Borrowers and the Agent by such Lender, shall
be conclusive and binding for all purposes, absent manifest error.
(b) If any Lender determines that compliance with any law or regulation or
any guideline or request taking effect or issued after the date hereof from any
central bank or other governmental authority (whether or not having the force of
law) affects or would affect the amount of capital required or expected to be
maintained by such Lender or any corporation controlling such Lender and that
the amount of such capital is increased by or based upon the existence of such
Lender's commitment to lend hereunder and other commitments of this type, then,
upon demand by such Lender (with a copy of such demand to the Agent), the
Borrowers shall pay to the Agent for the account of such Lender, from time to
time as specified by such Lender, additional amounts sufficient to compensate
such Lender or such corporation in the light of such circumstances, to the
extent that such Lender reasonably determines such increase in capital to be
allocable to the existence of such Lender's commitment to lend hereunder. A
certificate as to such amounts submitted to the Borrowers and the Agent by such
Lender shall be conclusive and binding for all purposes, absent manifest error.
(c) Failure or delay on the part of any Lender to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender's right to
demand such compensation; provided that the Borrowers shall not be required to
compensate a Lender pursuant to this Section for any increased costs or
reductions incurred more than six months prior to the date that such Lender
notifies the Borrowers of the circumstances giving rise to such increased costs
or reductions and of such Lender's intention to claim compensation therefor;
provided further that, if the circumstances giving rise to such increased costs
or reductions cause such increased costs or reductions to be retroactive, then
the six-month period referred to above shall be extended to include the period
of retroactive effect thereof.
SECTION 2.11. Illegality. Notwithstanding any other provision of this
Agreement, if any Lender shall notify the Agent that the introduction of or any
change in or in the interpretation of any law or regulation makes it unlawful,
or any central bank or other governmental authority asserts that it is unlawful,
for any Lender or its Eurodollar Lending Office to perform its obligations
hereunder to make Eurodollar Rate Advances or to fund or maintain Eurodollar
Rate Advances hereunder, (a) each Eurodollar Rate Advance will automatically,
upon such demand, Convert into a Base Rate Advance and (b) the obligation of the
Lenders to make Eurodollar Rate Advances or to Convert Advances into Eurodollar
Rate Advances shall be suspended until the Agent shall notify the Borrowers and
the Lenders that the circumstances causing such suspension no longer exist;
provided, however, that before making any such demand, each Lender agrees to use
reasonable efforts (consistent with its internal policy and legal and regulatory
restrictions) to designate a different Eurodollar Lending Office if the making
of such a designation would allow such Lender or its Eurodollar Lending Office
to continue to perform its obligations to make Eurodollar Rate Advances or to
continue to fund or maintain Eurodollar Rate Advances and would not, in the
reasonable judgment of such Lender, be otherwise disadvantageous to such Lender.
SECTION 2.12. Payments and Computations. (a) The Borrowers shall make each
payment hereunder, irrespective of any right of counterclaim or set-off, not
later than 11:00 A.M. (New York City time) on the day when due in U.S. dollars
to the Agent at the Agent's Account in same day funds. The Agent will promptly
thereafter cause to be distributed like funds relating to the payment of
principal or interest or facility fees ratably (other than amounts payable
pursuant to Section 2.10, 2.13 or 9.04(c)) to the Lenders for the account of
their respective Applicable Lending Offices, and like funds relating to the
payment of any other amount payable to any Lender to such Lender for the account
of its Applicable Lending Office, in each case to be applied in accordance with
the terms of this Agreement. Upon its acceptance of an Assignment and Acceptance
and recording of the information contained therein in the Register pursuant to
Section 9.07(c), from and after the effective date specified in such Assignment
and Acceptance, the Agent shall make all payments hereunder and under any Notes
in respect of the interest assigned thereby to the Lender assignee thereunder,
and the parties to such Assignment and Acceptance shall make all appropriate
adjustments in such payments for periods prior to such effective date directly
between themselves.
(b) Each Borrower hereby authorizes each Lender, if and to the extent
payment owed to such Lender is not made when due hereunder or under the Note
held by such Lender, to charge from time to time against any or all of such
Borrower's accounts with such Lender any amount so due.
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(c) All computations of interest based on the Base Rate shall be made by
the Agent on the basis of a year of 365 or 366 days, as the case may be, and all
computations of interest based on the Eurodollar Rate or the Federal Funds Rate
and of fees shall be made by the Agent on the basis of a year of 360 days, in
each case for the actual number of days (including the first day but excluding
the last day) occurring in the period for which such interest or fees are
payable. Each determination by the Agent of an interest rate hereunder shall be
conclusive and binding for all purposes, absent manifest error.
(d) Whenever any payment hereunder or under the Notes shall be stated to
be due on a day other than a Business Day, such payment shall be made on the
next succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest or facility fee, as the case
may be; provided, however, that, if such extension would cause payment of
interest on or principal of Eurodollar Rate Advances to be made in the next
following calendar month, such payment shall be made on the next preceding
Business Day.
(e) Unless the Agent shall have received notice from the applicable
Borrower prior to the date on which any payment is due to the Lenders hereunder
that such Borrower will not make such payment in full, the Agent may assume that
such Borrower has made such payment in full to the Agent on such date and the
Agent may, in reliance upon such assumption, cause to be distributed to each
Lender on such due date an amount equal to the amount then due such Lender. If
and to the extent the applicable Borrower shall not have so made such payment in
full to the Agent, each Lender shall repay to the Agent forthwith on demand such
amount distributed to such Lender together with interest thereon, for each day
from the date such amount is distributed to such Lender until the date such
Lender repays such amount to the Agent, at the Federal Funds Rate.
SECTION 2.13. Taxes. (a) Any and all payments by any Loan Party to or for
the account of any Lender or the Agent hereunder or under the Notes or any other
documents to be delivered hereunder shall be made, in accordance with Section
2.12 or the applicable provisions of such other documents, free and clear of and
without deduction for any and all present or future taxes, levies, imposts,
deductions, charges or withholdings, and all liabilities with respect thereto,
excluding, in the case of each Lender and the Agent, taxes imposed on its
overall net income, and franchise taxes imposed on it in lieu of net income
taxes, by the jurisdiction under the laws of which such Lender or the Agent (as
the case may be) is organized or any political subdivision thereof and, in the
case of each Lender, taxes imposed on its overall net income, and franchise
taxes imposed on it in lieu of net income taxes, by the jurisdiction of such
Lender's Applicable Lending Office or any political subdivision thereof and
excluding such taxes imposed by the United States that are payable as of the
date such Lender or the Agent became a party to this Agreement (all such
non-excluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities in respect of payments hereunder or under the Notes being
hereinafter referred to as "Taxes"). If any Loan Party shall be required by law
to deduct any Taxes from or in respect of any sum payable hereunder or under any
Note or any other documents to be delivered hereunder to any Lender or the
Agent, (i) the sum payable shall be increased as may be necessary so that after
making all required deductions (including deductions applicable to additional
sums payable under this Section 2.13) such Lender or the Agent (as the case may
be) receives an amount equal to the sum it would have received had no such
deductions been made, (ii) such Loan Party shall make such deductions and (iii)
such Loan Party shall pay the full amount deducted to the relevant taxation
authority or other authority in accordance with applicable law.
(b) In addition, the Borrowers shall pay any present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies that arise from any payment made hereunder or under the Notes or any
other documents to be delivered hereunder or from the execution, delivery or
registration of, performing under, or otherwise with respect to, this Agreement
or the Notes or any other documents to be delivered hereunder (hereinafter
referred to as "Other Taxes").
(c) The Borrowers shall indemnify each Lender and the Agent for and hold
it harmless against the full amount of Taxes or Other Taxes (including, without
limitation, taxes of any kind imposed or asserted by any jurisdiction on amounts
payable under this Section 2.13) imposed on or paid by such Lender or the Agent
(as the case may be) and any liability (including penalties, interest and
expenses) arising therefrom or with respect thereto. This indemnification shall
be made within 30 days from the date such Lender or the Agent (as the case may
be) makes written demand therefor.
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(d) Within 45 days after the date of any payment of Taxes, the applicable
Loan Party shall furnish to the Agent, at its address referred to in Section
9.02, the original or a certified copy of a receipt evidencing such payment to
the extent such a receipt is issued therefor, or other written proof of payment
thereof that is reasonably satisfactory to the Agent. In the case of any payment
hereunder or under the Notes or any other documents to be delivered hereunder by
or on behalf of any Loan Party (other than OFP) through an account or branch
outside the United States or by or on behalf of any Loan Party (other than OFP)
by a payor that is not a United States person, if such Loan Party determines
that no Taxes are payable in respect thereof, such Loan Party shall furnish, or
shall cause such payor to furnish, to the Agent, at such address, an opinion of
counsel acceptable to the Agent stating that such payment is exempt from Taxes.
For purposes of this subsection (d) and subsection (e), the terms "United
States" and "United States person" shall have the meanings specified in Section
7701 of the Internal Revenue Code.
(e) Each Lender organized under the laws of a jurisdiction outside the
United States, on or prior to the date of its execution and delivery of this
Agreement in the case of each Initial Lender and on the date of the Assignment
and Acceptance pursuant to which it becomes a Lender in the case of each other
Lender, and from time to time thereafter as reasonably requested in writing by
OFI and OCI (but only so long as such Lender remains lawfully able to do so),
shall provide each of the Agent OFI and OCI with two original Internal Revenue
Service forms W-8BEN or W-8ECI, as appropriate, or any successor or other form
prescribed by the Internal Revenue Service, certifying that such Lender is
exempt from or entitled to a reduced rate of United States withholding tax on
payments made by OFI and OCI pursuant to this Agreement or the Notes. If the
form provided by a Lender at the time such Lender first becomes a party to this
Agreement indicates a United States interest withholding tax rate in excess of
zero, withholding tax at such rate shall be considered excluded from Taxes
unless and until such Lender provides the appropriate forms certifying that a
lesser rate applies, whereupon withholding tax at such lesser rate only shall be
considered excluded from Taxes for periods governed by such form; provided,
however, that, if at the date of the Assignment and Acceptance pursuant to which
a Lender assignee becomes a party to this Agreement, the Lender assignor was
entitled to payments under subsection (a) in respect of United States
withholding tax with respect to interest paid at such date, then, to such
extent, the term Taxes shall include (in addition to withholding taxes that may
be imposed in the future or other amounts otherwise includable in Taxes) United
States withholding tax, if any, applicable with respect to the Lender assignee
on such date. If any form or document referred to in this subsection (e)
requires the disclosure of information, other than information necessary to
compute the tax payable and information required on the date hereof by Internal
Revenue Service form W-8BEN or W-8ECI, that the Lender reasonably considers to
be confidential, the Lender shall give notice thereof to OFI and OCI and shall
not be obligated to include in such form or document such confidential
information.
(f) For any period with respect to which a Lender has failed to provide
OFI and OCI with the appropriate form, certificate or other document described
in Section 2.13(e) (other than if such failure is due to a change in law, or in
the interpretation or application thereof, occurring subsequent to the date on
which a form, certificate or other document originally was required to be
provided, or if such form, certificate or other document otherwise is not
required under subsection (e) above), such Lender shall not be entitled to
indemnification under Section 2.13(a) or (c) with respect to Taxes imposed by
the United States by reason of such failure; provided, however, that should a
Lender become subject to Taxes because of its failure to deliver a form,
certificate or other document required hereunder, the Borrowers shall take such
steps as the Lender shall reasonably request to assist the Lender to recover
such Taxes.
(g) In respect of Advances to OFP, each Lender shall designate an
Applicable Lending Office that is beneficially entitled to interest under such
Advances and that, on the date of this Agreement or (in the case of any Person
that becomes a Lender hereunder by means of an assignment) on the date such
Lender becomes a party hereto is either (i) within the charge to United Kingdom
corporation tax in respect of interest in respect of an advance by a person that
was a bank (for the purposes of Section 349 Income and Corporation Taxes Act
1988) at the time the advance was made; or (ii) resident in a country with which
the United Kingdom has a double taxation agreement which makes provision for
full exemption from United Kingdom taxation on interest payable by OFP pursuant
to this Agreement and does not carry on business in the United Kingdom through a
permanent establishment with which the payment is effectively connected (each
such Person which is so resident being hereinafter in this Section 2.13 referred
to as a "Treaty Lender"); or (iii) a company resident in the United Kingdom, or
a partnership each member of which is a company resident in the United Kingdom
for United Kingdom tax purposes; or (iv) a company not so resident in the United
Kingdom which carries on a trade in the United Kingdom
16
through a permanent establishment and which is required to bring into account
interest payable to it by OFP pursuant to this Agreement in computing its
chargeable profits for the purposes of Section 11(2) of the Income and
Corporation Taxes Xxx 0000. If any Lender does not or ceases to comply with
clause (i), (ii), (iii) or (iv) above other than by reason of any change after
the date of this Agreement in (or in the interpretation, administration or
application of) any law or double taxation agreement or any published practice
or concession of any relevant taxing authority, the Borrowers shall not be
required to compensate such Lender under Section 2.13(a) or 2.13(c) for the
amount of Taxes imposed by the United Kingdom in consequence. Any Lender to whom
clause (ii) above is relevant and OFP shall cooperate in promptly completing any
procedural formalities necessary for OFP to obtain authorization to make
interest payments without deduction for UK income tax. The Borrowers shall not
be required to compensate any Lender to whom clause (ii) above is relevant under
Section 2.13(a) or 2.13(c) for any deduction for UK income tax from interest
payments if such deduction is required as a result of the failure of such Lender
to comply with its obligations in the preceding sentence (other than a failure
that is attributable to the failure by OFP to comply with its obligations in the
preceding sentence).
(h) Each Treaty Lender irrevocably appoints the Agent to act as syndicate
manager under, and authorizes the Agent to operate, and take any action
necessary or desirable under, the PTR Scheme in connection with any Borrowing
hereunder. Each Treaty Lender shall cooperate with the Agent in completing any
procedural formalities necessary under the PTR Scheme, and shall promptly supply
to the Agent such information as the Agent may request in connection with the
operation of the PTR Scheme. Each Treaty Lender without limiting the liability
of any Borrower under this Agreement, shall, within five Business Days of
demand, indemnify the Agent for any liability or loss incurred by the Agent as a
result of the Agent acting as syndicate manager under the PTR Scheme in
connection with the Treaty Lender's participation in any Borrowing (except to
the extent that the liability or loss arises directly from the Agent's gross
negligence or willful misconduct). Each Treaty Lender shall, within five
Business Days of demand, indemnify each Borrower for any Tax which such Borrower
becomes liable to pay in respect of any payments made to such Treaty Lender
arising as a result of any incorrect information supplied by such Treaty Lender
which results in a provisional authority issued by the UK Inland Revenue under
the PTR Scheme being withdrawn. Each Borrower acknowledges that it is fully
aware of its contingent obligations under the PTR Scheme and shall (i) promptly
inform the Agent of all actions required to be performed by the Agent under the
PTR Scheme, (ii) promptly supply to the Agent such information as the Agent may
request in connection with the operation of the PTR Scheme; and (iii) act in
accordance with any provisional notice issued by the UK Inland Revenue under the
PTR Scheme. The Agent agrees to provide, as soon as reasonably practicable, a
copy of any provisional authority issued to it under the PTR Scheme in
connection with any Borrowing to those Borrowers specified in such provisional
authority. Each of the Borrowers, the Treaty Lenders and the Agent acknowledges
that the Agent: (i) is entitled to rely completely upon information provided to
it in connection with this clause; (ii) is not obliged to undertake any inquiry
into the accuracy of such information nor into the status of the Treaty Lender
or, as the case may be, Borrower providing such information; and (iii) shall
have no liability to any person for the accuracy of any information it submits
to the UK Inland Revenue in connection with this clause.
(i) Any Lender claiming any additional amounts payable pursuant to this
Section 2.13 agrees to use reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions) to change the jurisdiction of its
Eurodollar Lending Office if the making of such a change would avoid the need
for, or reduce the amount of, any such additional amounts that may thereafter
accrue and would not, in the reasonable judgment of such Lender, be otherwise
disadvantageous to such Lender.
SECTION 2.14. Sharing of Payments, Etc. If any Lender shall obtain any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) on account of the Advances owing to it (other than
pursuant to Section 2.10, 2.13 or 9.04(c)) in excess of its ratable share of
payments on account of the Advances obtained by all the Lenders, such Lender
shall forthwith purchase from the other Lenders such participations in the
Advances owing to them as shall be necessary to cause such purchasing Lender to
share the excess payment ratably with each of them; provided, however, that if
all or any portion of such excess payment is thereafter recovered from such
purchasing Lender, such purchase from each Lender shall be rescinded and such
Lender shall repay to the purchasing Lender the purchase price to the extent of
such recovery together with an amount equal to such Lender's ratable share
(according to the proportion of (i) the amount of such Lender's required
repayment to (ii) the total amount so recovered from the purchasing Lender) of
any interest or other amount paid or payable by the purchasing Lender in respect
of the total amount so recovered. Each Borrower agrees that any Lender so
purchasing a participation from another Lender pursuant to this Section 2.14
may, to the fullest extent
17
permitted by law, exercise all its rights of payment (including the right of
set-off) with respect to such participation as fully as if such Lender were the
direct creditor of such Borrower in the amount of such participation.
SECTION 2.15. Evidence of Debt. (a) Each Lender shall maintain in
accordance with its usual practice an account or accounts evidencing the
indebtedness of each Borrower to such Lender resulting from each Advance owing
to such Lender from time to time, including the amounts of principal and
interest payable and paid to such Lender from time to time hereunder in respect
of Advances made to such Borrower. The Borrowers agree that upon notice by any
Lender to the Borrowers (with a copy of such notice to the Agent) to the effect
that a Note is required or appropriate in order for such Lender to evidence
(whether for purposes of pledge, enforcement or otherwise) the Advances owing
to, or to be made by, such Lender, the Borrowers shall promptly execute and
deliver to such Lender a Note payable to the order of such Lender in a principal
amount up to the Commitment of such Lender.
(b) The Register maintained by the Agent pursuant to Section 9.07(d) shall
include a control account, and a subsidiary account for each Lender, in which
accounts (taken together) shall be recorded (i) the date and amount of each
Borrowing made hereunder, the Type of Advances comprising such Borrowing and, if
appropriate, the Interest Period applicable thereto, (ii) the terms of each
Assignment and Acceptance delivered to and accepted by it, (iii) the amount of
any principal or interest due and payable or to become due and payable from each
Borrower to each Lender hereunder and (iv) the amount of any sum received by the
Agent from each Borrower hereunder and each Lender's share thereof.
(c) Entries made in good faith by the Agent in the Register pursuant to
subsection (b) above, and by each Lender in its account or accounts pursuant to
subsection (a) above, shall be prima facie evidence of the amount of principal
and interest due and payable or to become due and payable from each Borrower to,
in the case of the Register, each Lender and, in the case of such account or
accounts, such Lender, under this Agreement, absent manifest error; provided,
however, that the failure of the Agent or such Lender to make an entry, or any
finding that an entry is incorrect, in the Register or such account or accounts
shall not limit or otherwise affect the obligations of any Borrower under this
Agreement.
SECTION 2.16. Use of Proceeds. The proceeds of the Advances shall be
available (and each Borrower agrees that it shall use such proceeds) solely for
general corporate purposes of the Borrowers and their Subsidiaries, including,
without limitation, to fund acquisitions otherwise not prohibited hereunder.
ARTICLE III
CONDITIONS TO EFFECTIVENESS AND LENDING
SECTION 3.01. Conditions Precedent to Effectiveness of Section 2.01.
Section 2.01 of this Agreement shall become effective on and as of the first
date (the "Effective Date") on which the following conditions precedent have
been satisfied:
(a) There shall have occurred no Material Adverse Change since
December 31, 2004.
(b) There shall exist no action, suit, investigation, litigation or
proceeding affecting the Guarantor or any of its Subsidiaries pending or
threatened before any court, governmental agency or arbitrator that (i)
could be reasonably likely to have a Material Adverse Effect other than
the matters described on Schedule 3.01(b) hereto (the "Disclosed
Litigation") or (ii) purports to affect the legality, validity or
enforceability of this Agreement or any Note or the consummation of the
transactions contemplated hereby, and there shall have been no adverse
change in the status, or financial effect on the Guarantor or any of its
Subsidiaries, of the Disclosed Litigation from that described on Schedule
3.01(b) hereto.
(c) Nothing shall have come to the attention of the Lenders during
the course of their due diligence investigation to lead them to believe
that the Information Memorandum was or has become misleading, incorrect or
incomplete in any material respect; without limiting the generality of the
18
foregoing, the Lenders shall have been given such access to the
management, records, books of account, contracts and properties of the
Guarantor and its Subsidiaries as they shall have requested.
(d) All governmental and third party consents and approvals
necessary in connection with the transactions contemplated hereby shall
have been obtained (without the imposition of any conditions that are not
acceptable to the Lenders) and shall remain in effect, and no law or
regulation shall be applicable in the reasonable judgment of the Lenders
that restrains, prevents or imposes materially adverse conditions upon the
transactions contemplated hereby.
(e) The Borrowers shall have notified each Lender and the Agent in
writing as to the proposed Effective Date.
(f) The Borrowers shall have paid all accrued fees and expenses of
the Agent and the Lenders (including the accrued fees and expenses of
counsel to the Agent).
(g) On the Effective Date, the following statements shall be true
and the Agent shall have received for the account of each Lender a
certificate signed by a duly authorized officer of the Guarantor, dated
the Effective Date, stating that:
(i) The representations and warranties contained in Section
4.01 are correct on and as of the Effective Date, and
(ii) No event has occurred and is continuing that constitutes
a Default.
(h) The Agent shall have received on or before the Effective Date
the following, each dated such day, in form and substance satisfactory to
the Agent and (except for the Notes) in sufficient copies for each Lender:
(i) The Notes to the order of the Lenders to the extent
requested by any Lender pursuant to Section 2.15.
(ii) Certified copies of the resolutions of the Board of
Directors of each Loan Party approving this Agreement and the Notes
to which it is a party, and of all documents evidencing other
necessary corporate action and governmental approvals, if any, with
respect to this Agreement and the Notes to which it is a party.
(iii) A certificate of the Secretary or an Assistant Secretary
of each Loan Party certifying the names and true signatures of the
officers of such Loan Party authorized to sign this Agreement and
the Notes to which it is a party and the other documents to be
delivered by it hereunder.
(iv) A favorable opinion of Xxxxx Xxxxxxxxxx LLP, New York
counsel for the Loan Parties, and MacFarlanes, English counsel for
OFP, substantially in the form of Exhibits D-1 and D-2 hereto,
respectively, and as to such other matters as any Lender through the
Agent may reasonably request.
(v) A favorable opinion of Shearman & Sterling LLP, counsel
for the Agent, in form and substance satisfactory to the Agent.
SECTION 3.02. Conditions Precedent to Each Borrowing. The obligation of
each Lender to make an Advance on the occasion of each Borrowing shall be
subject to the conditions precedent that the Effective Date shall have occurred
and on the date of such Borrowing (a) the following statements shall be true
(and each of the giving of the applicable Notice of Borrowing and the acceptance
by a Borrower of the proceeds of such
19
Borrowing shall constitute a representation and warranty by such Borrower that
on the date of such Borrowing such statements are true):
(i) the representations and warranties contained in Section 4.01
(except, in the case of a Borrowing, the representations set forth in the
last sentence of subsection (e) thereof and in subsection (f)(i) thereof)
are correct on and as of such date, before and after giving effect to such
Borrowing and to the application of the proceeds therefrom, as though made
on and as of such date, and
(ii) no event has occurred and is continuing, or would result from
such Borrowing or from the application of the proceeds therefrom, that
constitutes a Default;
and (b) the Agent shall have received such other approvals, opinions or
documents as any Lender through the Agent may reasonably request.
SECTION 3.03. Determinations Under Section 3.01. For purposes of
determining compliance with the conditions specified in Section 3.01, each
Lender shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to the Lenders unless an officer
of the Agent responsible for the transactions contemplated by this Agreement
shall have received notice from such Lender prior to the date that the
Borrowers, by notice to the Lenders, designate as the proposed Effective Date,
specifying its objection thereto. The Agent shall promptly notify the Lenders of
the occurrence of the Effective Date.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
SECTION 4.01. Representations and Warranties of the Guarantor. The
Guarantor represents and warrants as follows:
(a) Each Loan Party is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization.
(b) The execution, delivery and performance by each Loan Party of
this Agreement and the Notes to be delivered by it, and the consummation
of the transactions contemplated hereby, are within the such Loan Party's
corporate powers, have been duly authorized by all necessary corporate
action, and do not contravene (i) the such Loan Party's charter or by-laws
or other organizational documents or (ii) law or any contractual
restriction binding on or affecting any Loan Party.
(c) No authorization or approval or other action by, and no notice
to or filing with, any governmental authority or regulatory body or any
other third party is required for the due execution, delivery and
performance by the any Loan Party of this Agreement or the Notes to be
delivered by it.
(d) This Agreement has been, and each of the Notes to be delivered
by it when delivered hereunder will have been, duly executed and delivered
by each Loan Party party thereto. This Agreement is, and each of the Notes
when delivered hereunder will be, the legal, valid and binding obligation
of each Loan Party party thereto enforceable against such Loan Party in
accordance with their respective terms.
(e) The Consolidated balance sheet of the Guarantor and its
Subsidiaries as at December 31, 2004, and the related Consolidated
statements of income and cash flows of the Guarantor and its Subsidiaries
for the fiscal year then ended, accompanied by an opinion of KPMG LLP,
independent public accountants, and the Consolidated balance sheet of the
Guarantor and its Subsidiaries as at March 31, 2005, and the related
Consolidated statements of income and cash flows of the Guarantor and its
Subsidiaries for the three months then ended, duly certified by the chief
financial officer of the Guarantor, copies of which have been furnished to
each Lender, fairly present, subject, in the case of said balance sheet as
at March 31,
20
2005, and said statements of income and cash flows for the three months
then ended, to year-end audit adjustments, the Consolidated financial
condition of the Guarantor and its Subsidiaries as at such dates and the
Consolidated results of the operations of the Guarantor and its
Subsidiaries for the periods ended on such dates, all in accordance with
generally accepted accounting principles consistently applied. Since
December 31, 2004, there has been no Material Adverse Change.
(f) There is no pending or, to the knowledge of the Guarantor,
threatened action, suit, investigation, litigation or proceeding,
including, without limitation, any Environmental Action, affecting the
Guarantor or any of its Subsidiaries before any court, governmental agency
or arbitrator that (i) could be reasonably likely to have a Material
Adverse Effect (other than the Disclosed Litigation), and there has been
no adverse change in the status, or financial effect on the Guarantor or
any of its Subsidiaries, of the Disclosed Litigation from that described
on Schedule 3.01(b) hereto or (ii) purports to affect the legality,
validity or enforceability of this Agreement or any Note or the
consummation of the transactions contemplated hereby.
(g) No Loan Party is engaged in the business of extending credit for
the purpose of purchasing or carrying margin stock (within the meaning of
Regulation U issued by the Board of Governors of the Federal Reserve
System), and no proceeds of any Advance will be used to purchase or carry
any margin stock or to extend credit to others for the purpose of
purchasing or carrying any margin stock.
(h) No Loan Party is an "investment company", or a company
"controlled" by an "investment company", within the meaning of the
Investment Company Act of 1940, as amended.
(i) All factual information (taken as a whole) heretofore or
contemporaneously furnished by or on behalf of any Loan Party in writing
to any Lender (including, without limitation, all information contained in
this Agreement) for purposes of or in connection with this Agreement or
any transaction contemplated herein is, and all other such factual
information (taken as a whole) hereafter furnished by or on behalf of such
Loan Party in writing to any Lender will be, true and accurate in all
material respects on the date as of which such information is dated or
certified and does not or will not omit to state any fact necessary to
make such information (taken as a whole) not misleading in any material
respect at such time in light of the circumstances under which such
information was provided.
ARTICLE V
COVENANTS OF THE GUARANTOR
SECTION 5.01. Affirmative Covenants. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Guarantor will:
(a) Compliance with Laws, Etc. Comply, and cause each of its
Subsidiaries to comply with all applicable laws, rules, regulations and
orders, such compliance to include, without limitation, compliance with
ERISA and Environmental Laws except, in each case, to the extent that
failure to comply would not reasonably be expected to have a Material
Adverse Effect.
(b) Payment of Taxes, Etc. Pay and discharge, and cause each of its
Subsidiaries to pay and discharge, before the same shall become
delinquent, (i) all taxes, assessments and governmental charges or levies
imposed upon it or upon its property and (ii) all lawful claims that, if
unpaid, might by law become a Lien upon its property; provided, however,
that neither the Guarantor nor any of its Subsidiaries shall be required
to pay or discharge any such tax, assessment, charge or claim that is
being contested in good faith and by proper proceedings and as to which
appropriate reserves are being maintained.
21
(c) Maintenance of Insurance. Maintain, and cause each of its
Subsidiaries to maintain, insurance with responsible and reputable
insurance companies or associations in such amounts and covering such
risks as is usually carried by companies engaged in similar businesses and
owning similar properties in the same general areas in which the Guarantor
or such Subsidiary operates.
(d) Preservation of Corporate Existence, Etc. Preserve and maintain,
and cause each of its Subsidiaries to preserve and maintain, its corporate
existence, rights (charter and statutory) and franchises; provided,
however, that the Guarantor and its Subsidiaries may consummate any merger
or consolidation permitted under Section 5.02(b) and provided further that
neither the Guarantor nor any of its Subsidiaries shall be required to
preserve any right or franchise, or the existence of any Subsidiary of the
Guarantor that is not a Borrower, if the Board of Directors of the
Guarantor or the Borrower that is the corporate parent of such Subsidiary
shall determine that the preservation thereof is no longer desirable in
the conduct of the business of the Guarantor or such Borrower, as the case
may be, and that the loss thereof is not disadvantageous in any material
respect to the Guarantor, such Borrower or the Lenders.
(e) Visitation Rights. At any reasonable time and from time to time,
permit the Agent or any of the Lenders or any agents or representatives
thereof, to examine and make copies of and abstracts from the records and
books of account of, and visit the properties of, the Guarantor and any of
its Subsidiaries, and to discuss the affairs, finances and accounts of the
Guarantor and any of its Subsidiaries with any of their officers or
directors and with their independent certified public accountants.
(f) Keeping of Books. Keep, and cause each of its Subsidiaries to
keep, proper books of record and account, in which full and correct
entries shall be made of all financial transactions and the assets and
business of the Guarantor and each such Subsidiary in accordance with
generally accepted accounting principles in effect from time to time.
(g) Maintenance of Properties, Etc. Maintain and preserve, and cause
each of its Subsidiaries to maintain and preserve, all of its properties
that are used or useful in the conduct of its business in good working
order and condition, ordinary wear and tear excepted.
(h) Transactions with Affiliates. Conduct, and cause each of its
Subsidiaries to conduct, all transactions otherwise permitted under this
Agreement with any of their Affiliates on terms that are fair and
reasonable and no less favorable to the Guarantor or such Subsidiary than
it would obtain in a comparable arm's-length transaction with a Person not
an Affiliate.
(i) Reporting Requirements. Furnish to the Lenders:
(i) as soon as available and in any event within 50 days after
the end of each of the first three quarters of each fiscal year of
the Guarantor, the Consolidated balance sheet of the Guarantor and
its Subsidiaries as of the end of such quarter and Consolidated
statements of income and cash flows of the Guarantor and its
Subsidiaries for the period commencing at the end of the previous
fiscal year and ending with the end of such quarter, duly certified
(subject to year-end audit adjustments) by the chief financial
officer of the Guarantor as having been prepared in accordance with
generally accepted accounting principles and certificates of the
chief financial officer of the Guarantor as to compliance with the
terms of this Agreement and setting forth in reasonable detail the
calculations necessary to demonstrate compliance with Section 5.03,
provided that in the event of any change in generally accepted
accounting principles used in the preparation of such financial
statements, the Guarantor shall also provide, if necessary for the
determination of compliance with Section 5.03, a statement of
reconciliation conforming such financial statements to GAAP;
(ii) as soon as available and in any event within 95 days
after the end of each fiscal year of the Guarantor, a copy of the
annual audit report for such year for the Guarantor and its
Subsidiaries, containing the Consolidated balance sheet of the
Guarantor and its Subsidiaries as of
22
the end of such fiscal year and Consolidated statements of income
and cash flows of the Guarantor and its Subsidiaries for such fiscal
year, in each case accompanied by an opinion acceptable to the
Required Lenders by KPMG LLP or other independent public accountants
acceptable to the Required Lenders and certificates of the chief
financial officer of the Guarantor as to compliance with the terms
of this Agreement and setting forth in reasonable detail the
calculations necessary to demonstrate compliance with Section 5.03,
provided that in the event of any change in generally accepted
accounting principles used in the preparation of such financial
statements, the Guarantor shall also provide, if necessary for the
determination of compliance with Section 5.03, a statement of
reconciliation conforming such financial statements to GAAP;
(iii) as soon as possible and in any event within five days
after any senior officer of the Guarantor or a Borrower becomes
aware or should have become aware of the occurrence of any Default,
the occurrence of each Default continuing on the date of such
statement, a statement of the chief financial officer of the
Guarantor setting forth details of such Default and the action that
the Guarantor has taken and proposes to take with respect thereto;
(iv) promptly after the sending or filing thereof, copies of
all reports that the Guarantor sends to any of its securityholders,
and copies of all reports and registration statements that the
Guarantor or any Subsidiary files with the Securities and Exchange
Commission or any national securities exchange;
(v) promptly after the commencement thereof, notice of all
actions and proceedings before any court, governmental agency or
arbitrator affecting the Guarantor or any of its Subsidiaries of the
type described in Section 4.01(f); and
(vi) such other information respecting the Guarantor or any of
its Subsidiaries as any Lender through the Agent may from time to
time reasonably request.
Reports and financial statements required to be delivered by the
Guarantor pursuant to paragraphs (i), (ii), (iv) and (v) of this Section
5.01(i) shall be deemed to have been delivered on the date on which it
posts such reports, or reports containing such financial statements, on
its website on the Internet at xxx.xxxxxxxxxxxx.xxx or when such reports,
or reports containing such financial statements are posted on the SEC's
website at xxx.xxx.xxx; provided that it shall deliver notice that such
reports and financial statements are so available and shall deliver paper
copies of the reports and financial statements referred to in paragraphs
(i), (ii), (iv) and (v) of this Section 5.01(i) to the Agent or any Lender
who requests it to deliver such paper copies until written notice to cease
delivering paper copies is given by the Agent or such Lender.
SECTION 5.02. Negative Covenants. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Guarantor will
not:
(a) Liens, Etc. Create or suffer to exist, or permit any of its
Subsidiaries to create or suffer to exist, any Lien on or with respect to
any of its properties, whether now owned or hereafter acquired, or assign,
or permit any of its Subsidiaries to assign, any right to receive income,
other than:
(i) Permitted Liens,
(ii) purchase money Liens upon or in any real property or
equipment acquired or held by the Guarantor or any Subsidiary in the
ordinary course of business to secure the purchase price of such
property or equipment or to secure Debt incurred solely for the
purpose of financing the acquisition of such property or equipment,
or Liens existing on such property or equipment at the time of its
acquisition (other than any such Liens created in contemplation of
such acquisition that were not incurred to finance the acquisition
of such property) or extensions, renewals or replacements of any of
the foregoing for the same or a lesser amount, provided, however,
that no
23
such Lien shall extend to or cover any properties of any character
other than the real property or equipment being acquired and fixed
improvements thereon or accessions thereto, and no such extension,
renewal or replacement shall extend to or cover any properties not
theretofore subject to the Lien being extended, renewed or replaced,
(iii) the Liens existing on the Effective Date and described
on Schedule 5.02(a) hereto,
(iv) Liens on property of a Person existing at the time such
Person is merged into or consolidated with the Guarantor or any
Subsidiary of the Guarantor or becomes a Subsidiary of the
Guarantor; provided that such Liens were not created in
contemplation of such merger, consolidation or acquisition and do
not extend to any assets other than those of the Person so merged
into or consolidated with the Guarantor or such Subsidiary or
acquired by the Guarantor or such Subsidiary,
(v) Liens securing Debt permitted by Section 5.02(d)(vii),
(vi) Liens granted by Subsidiaries of the Guarantor (other
than the Borrowers) to secure Debt permitted by Section 5.02(d)(iv),
and
(vii) other Liens securing Debt, provided that the aggregate
principal amount of such secured Debt shall not exceed 15% of the
Consolidated net worth of the Guarantor and its Subsidiaries at any
time.
(b) Mergers, Etc. Merge or consolidate with or into, or convey,
transfer, lease or otherwise dispose of (whether in one transaction or in
a series of transactions) all or substantially all of its assets (whether
now owned or hereafter acquired) to, any Person, or permit any of the
Borrowers to do so.
(c) Accounting Changes. Make or permit, or permit any of its
Subsidiaries to make or permit, any change in accounting policies or
reporting practices, except as required or permitted by generally accepted
accounting principles.
(d) Subsidiary Debt. Permit any of its Subsidiaries to create or
suffer to exist, any Debt other than: (i) Debt existing on the Effective
Date and described on Schedule 5.02(d) hereto (the "Existing Debt"), and
any Debt extending the maturity of, or refunding or refinancing, in whole
or in part, the Existing Debt, provided that the principal amount of such
Existing Debt shall not be increased above the principal amount thereof
outstanding immediately prior to such extension, refunding or refinancing
plus any capitalized fees incurred in connection therewith, and the direct
and contingent obligors therefor shall not be changed (other than to
release any contingent obligor), as a result of or in connection with such
extension, refunding or refinancing,
(ii) accrued expenses and trade payables incurred in the
ordinary course of business, and obligations under trade letters of
credit incurred in the ordinary course of business, which are to be
repaid in full not more than one year after the date on which such
Debt is originally incurred to finance the purchase of goods by such
Subsidiary,
(iii) obligations under letters of credit or surety bonds
incurred in the ordinary course of business in support of
obligations incurred in connection with leases, worker's
compensation, unemployment insurance and other social security
legislation,
(iv) Debt owed to the Guarantor or to a wholly owned
Subsidiary of the Guarantor,
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(v) Debt of the Borrowers,
(vi) other Debt of Subsidiaries of the Guarantor which are not
organized under the laws of the United States of America, a State of
the United States of America or the District of Columbia and
substantially all of whose assets and business are located or
conducted outside the United States of America,
(vii) Debt of a Person existing at the time such Person is
merged into or consolidated with the Guarantor or any Subsidiary of
the Guarantor or becomes a Subsidiary of the Guarantor; provided
that such Debt was not created in contemplation of such merger,
consolidation or acquisition, provided further that the aggregate
principal amount of the Debt referred to in this clause (iv) shall
not exceed $50,000,000 at any time outstanding,
(viii) (x) Debt consisting of any guaranty made by any
Subsidiary of the Guarantor in respect of Debt of any Loan Party,
provided that such Subsidiary shall have entered into a guaranty of
the Debt of the Guarantor under this Agreement in form and substance
reasonably satisfactory to the Required Lenders and (y) Debt
constituting guaranties of the Debt of the Guarantor under this
Agreement, and
(ix) indorsement of negotiable instruments for deposit or
collection or similar transactions in the ordinary course of
business.
(e) Change in Nature of Business. Make, or permit any of its
Subsidiaries to make, any material change in the nature of its business as
carried on at the date hereof and other reasonably related businesses or
businesses reasonably incidental thereto.
(f) Payment Restrictions Affecting Subsidiaries. Directly or
indirectly, enter into or suffer to exist, or permit any of its
Subsidiaries to enter into or suffer to exist, any agreement or
arrangement limiting the ability or any of its Subsidiaries to (i) pay
dividends or make any other distributions on its capital stock or any
other interest or participation in its profits owned by the Guarantor or
any of its Subsidiaries, or pay any Debt owed to the Guarantor or any of
its Subsidiaries, (ii) make loans or advances to the Guarantor or (iii)
transfer any of its properties or assets to the Guarantor, except for such
agreements or arrangements existing under or by reason of (x) applicable
law, (y) this Agreement and (z) customary provisions restricting
subletting or assignment of any lease governing a leasehold interest of a
Subsidiary of the Guarantor.
SECTION 5.03. Financial Covenants. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Guarantor will:
(a) Leverage Ratio. Maintain a ratio of Consolidated Debt for
Borrowed Money of the Guarantor and its Subsidiaries to Consolidated
EBITDA of the Guarantor and its Subsidiaries for the four quarters most
recently ended of not greater than 3.0 to 1.
(b) Interest Coverage Ratio. Maintain a ratio of Consolidated EBITDA
of the Guarantor and its Subsidiaries for the four quarters most recently
ended to interest payable on, and amortization of debt discount in respect
of, all Debt during such period by the Guarantor and its Subsidiaries of
not less than 5.0 to 1.
ARTICLE VI
EVENTS OF DEFAULT
SECTION 6.01. Events of Default. If any of the following events ("Events
of Default") shall occur and be continuing:
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(a) Any Borrower shall fail to pay any principal of any Advance when
the same becomes due and payable; or any Borrower shall fail to pay any
interest on any Advance or make any other payment of fees or other amounts
payable under this Agreement or any Note within three Business Days after
the same becomes due and payable; or
(b) Any representation or warranty made by the Guarantor herein or
by any Loan Party (or any of its officers) in connection with this
Agreement shall prove to have been incorrect in any material respect when
made; or
(c) (i) The Guarantor shall fail to perform or observe any term,
covenant or agreement contained in Section 5.01(d), (e), (h) or (i), 5.02
or 5.03, or (ii) any Loan Party shall fail to perform or observe any other
term, covenant or agreement contained in this Agreement on its part to be
performed or observed if such failure shall remain unremedied for 30 days
after written notice thereof shall have been given to the Guarantor by the
Agent or any Lender; or
(d) The Guarantor or any of its Subsidiaries shall fail to pay any
principal of or premium or interest on any Debt that is outstanding in a
principal or notional amount of at least $100,000,000 in the aggregate
(but excluding Debt outstanding hereunder) of the Guarantor or such
Subsidiary (as the case may be), when the same becomes due and payable
(whether by scheduled maturity, required prepayment, acceleration, demand
or otherwise), and such failure shall continue after the applicable grace
period, if any, specified in the agreement or instrument relating to such
Debt; or any other event shall occur or condition shall exist under any
agreement or instrument relating to any such Debt and shall continue after
the applicable grace period, if any, specified in such agreement or
instrument, if the effect of such event or condition is to accelerate, or
to permit the acceleration of, the maturity of such Debt; or any such Debt
shall be declared to be due and payable, or required to be prepaid or
redeemed (other than by a regularly scheduled required prepayment or
redemption), purchased or defeased, or an offer to prepay, redeem,
purchase or defease such Debt shall be required to be made, in each case
prior to the stated maturity thereof; or
(e) The Guarantor or any of its Subsidiaries shall generally not pay
its debts as such debts become due, or shall admit in writing its
inability to pay its debts generally, or shall make a general assignment
for the benefit of creditors; or any proceeding shall be instituted by or
against the Guarantor or any of its Subsidiaries seeking to adjudicate it
a bankrupt or insolvent, or seeking liquidation, winding up,
reorganization, arrangement, adjustment, protection, relief, or
composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors, or seeking the entry of
an order for relief or the appointment of a receiver, trustee, custodian
or other similar official for it or for any substantial part of its
property and, in the case of any such proceeding instituted against it
(but not instituted by it), either such proceeding shall remain
undismissed or unstayed for a period of 60 days, or any of the actions
sought in such proceeding (including, without limitation, the entry of an
order for relief against, or the appointment of a receiver, trustee,
custodian or other similar official for, it or for any substantial part of
its property) shall occur; or the Guarantor or any of its Subsidiaries
shall take any corporate action to authorize any of the actions set forth
above in this subsection (e); or
(f) Judgments or orders for the payment of money in excess of
$100,000,000 in the aggregate shall be rendered against the Guarantor or
any of its Subsidiaries and either (i) enforcement proceedings shall have
been commenced by any creditor upon such judgment or order or (ii) there
shall be any period of 60 consecutive days during which a stay of
enforcement of such judgment or order, by reason of a pending appeal or
otherwise, shall not be in effect; provided, however, that any such
judgment or order shall not be an Event of Default under this Section
6.01(f) if and for so long as (i) the amount of such judgment or order is
covered by a valid and binding policy of insurance between the defendant
and the insurer covering payment thereof and (ii) such insurer, which
shall be rated at least "A" by A.M. Best Company, has been notified of,
and has not disputed the claim made for payment of, the amount of such
judgment or order; or
26
(g) (i) Any Person or two or more Persons acting in concert shall
have acquired beneficial ownership (within the meaning of Rule 13d-3 of
the Securities and Exchange Commission under the Securities Exchange Act
of 1934), directly or indirectly, of Voting Stock of the Guarantor (or
other securities convertible into such Voting Stock) representing 30% or
more of the combined voting power of all Voting Stock of the Guarantor; or
(ii) during any period of up to 12 consecutive months, commencing after
the date of this Agreement, individuals who at the beginning of such
12-month period were directors of the Guarantor shall cease for any reason
to constitute a majority of the board of directors of the Guarantor; or
(iii) the Guarantor shall cease for any reason to own, directly or
indirectly, 100% of the Voting Stock of each of the Borrowers; or
(h) Any material provision of the Guaranty shall cease to be valid
and binding on or enforceable against the Guarantor, or the Guarantor
shall so state in writing; or
(i) The Guarantor or any of its ERISA Affiliates shall incur, or
shall be reasonably likely to incur liability in excess of $100,000,000 in
the aggregate as a result of one or more of the following: (i) the
occurrence of any ERISA Event; (ii) the partial or complete withdrawal of
the Guarantor or any of its ERISA Affiliates from a Multiemployer Plan; or
(iii) the reorganization or termination of a Multiemployer Plan;
then, and in any such event, the Agent (i) shall at the request, or may with the
consent, of the Required Lenders, by notice to the Borrowers, declare the
obligation of each Lender to make Advances to be terminated, whereupon the same
shall forthwith terminate, and (ii) shall at the request, or may with the
consent, of the Required Lenders, by notice to the Borrowers, declare the
Advances, all interest thereon and all other amounts payable under this
Agreement to be forthwith due and payable, whereupon the Advances, all such
interest and all such amounts shall become and be forthwith due and payable,
without presentment, demand, protest or further notice of any kind, all of which
are hereby expressly waived by each Borrower; provided, however, that in the
event of an actual or deemed entry of an order for relief with respect to any
Loan Party under the Federal Bankruptcy Code, (A) the obligation of each Lender
to make Advances shall automatically be terminated and (B) the Advances, all
such interest and all such amounts shall automatically become and be due and
payable, without presentment, demand, protest or any notice of any kind, all of
which are hereby expressly waived by the Borrowers.
ARTICLE VII
GUARANTY
SECTION 7.01. Guaranty. The Guarantor hereby absolutely, unconditionally
and irrevocably guarantees the punctual payment when due, whether at scheduled
maturity or on any date of a required prepayment or by acceleration, demand or
otherwise, of all obligations of each other Loan Party now or hereafter existing
under or in respect of the this Agreement and the Notes (including, without
limitation, any extensions, modifications, substitutions, amendments or renewals
of any or all of the foregoing obligations), whether direct or indirect,
absolute or contingent, and whether for principal, interest, premiums, fees,
indemnities, contract causes of action, costs, expenses or otherwise (such
obligations being the "Guaranteed Obligations"), and agrees to pay any and all
expenses (including, without limitation, fees and expenses of outside counsel
and the allocated costs and expenses of in-house counsel) incurred by the Agent
or any Lender in enforcing any rights under this Agreement. Without limiting the
generality of the foregoing, the Guarantor's liability shall extend to all
amounts that constitute part of the Guaranteed Obligations and would be owed by
any other Loan Party to the Agent or any Lender under or in respect of this
Agreement and the Notes but for the fact that they are unenforceable or not
allowable due to the existence of a bankruptcy, reorganization or similar
proceeding involving such other Loan Party.
SECTION 7.02. Guaranty Absolute. The Guarantor guarantees that the
Guaranteed Obligations will be paid strictly in accordance with the terms of
this Agreement and the Notes, regardless of any law, regulation or order now or
hereafter in effect in any jurisdiction affecting any of such terms or the
rights of the Agent or any Lender with respect thereto. This Guaranty is an
absolute and unconditional guaranty of payment when due, and not of collection,
by the Guarantor of the Guaranteed Obligations. The obligations of the Guarantor
under or in respect of this Guaranty are independent of the Guaranteed
Obligations or any other obligations of any other Loan Party
27
under or in respect of this Agreement and the Notes, and a separate action or
actions may be brought and prosecuted against the Guarantor to enforce this
Guaranty, irrespective of whether any action is brought against any Borrower or
whether any Borrower is joined in any such action or actions. The liability of
the Guarantor under this Guaranty shall be irrevocable, absolute and
unconditional irrespective of, and the Guarantor hereby irrevocably waives any
defenses it may now have or hereafter acquire in any way relating to, any or all
of the following:
(a) any lack of validity or enforceability of any provision of this
Agreement or any Note or any agreement or instrument relating thereto;
(b) any change in the time, manner or place of payment of, or in any
other term of, all or any of the Guaranteed Obligations or any other
obligations of any Borrower under or in respect of this Agreement or the
Notes, or any other amendment or waiver of or any consent to departure
from this Agreement or the Notes, including, without limitation, any
increase in the Guaranteed Obligations resulting from the extension of
additional credit to any Borrower or any of its Subsidiaries or otherwise;
(c) any taking, exchange, release or non-perfection of any
collateral, or any taking, release or amendment or waiver of, or consent
to departure from, any other guaranty, for all or any of the Guaranteed
Obligations;
(d) any manner of application of collateral, or proceeds thereof, to
all or any of the Guaranteed Obligations, or any manner of sale or other
disposition of any collateral for all or any of the Guaranteed Obligations
or any other obligations of any Loan Party under this Agreement or the
Notes or any other assets of any Borrower or any of its Subsidiaries;
(e) any change, restructuring or termination of the corporate
structure or existence of any Borrower or any of its Subsidiaries;
(f) any failure of the Agent or any Lender to disclose to the
Guarantor any information relating to the business, condition (financial
or otherwise), operations, performance, properties or prospects of any
Borrower now or hereafter known to the Agent or such Lender (the Guarantor
waiving any duty on the part of the Agent and the Lenders to disclose such
information);
(g) the failure of any other Person to execute or deliver any other
guaranty or agreement or the release or reduction of liability of the
Guarantor or other guarantor or surety with respect to the Guaranteed
Obligations; or
(h) any other circumstance (including, without limitation, any
statute of limitations) or any existence of or reliance on any
representation by the Agent or any Lender that might otherwise constitute
a defense available to, or a discharge of, any Loan Party or any other
guarantor or surety.
This Guaranty shall continue to be effective or be reinstated, as the case may
be, if at any time any payment of any of the Guaranteed Obligations is rescinded
or must otherwise be returned by the Agent or any Lender or any other Person
upon the insolvency, bankruptcy or reorganization of any Borrower or otherwise,
all as though such payment had not been made.
SECTION 7.03. Waivers and Acknowledgments. (a) The Guarantor hereby
unconditionally and irrevocably waives promptness, diligence, notice of
acceptance, presentment, demand for performance, notice of nonperformance,
default, acceleration, protest or dishonor and any other notice with respect to
any of the Guaranteed Obligations and this Guaranty and any requirement that the
Agent or any Lender protect, secure, perfect or insure any Lien or any property
subject thereto or exhaust any right or take any action against any Loan Party
or any other Person or any collateral.
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(b) The Guarantor hereby unconditionally and irrevocably waives any
right to revoke this Guaranty and acknowledges that this Guaranty is
continuing in nature and applies to all Guaranteed Obligations, whether
existing now or in the future.
(c) The Guarantor hereby unconditionally and irrevocably waives (i)
any defense arising by reason of any claim or defense based upon an
election of remedies by the Agent or any Lender that in any manner
impairs, reduces, releases or otherwise adversely affects the subrogation,
reimbursement, exoneration, contribution or indemnification rights of the
Guarantor or other rights of the Guarantor to proceed against any of the
other Loan Parties, any other guarantor or any other Person or any
collateral and (ii) any defense based on any right of set-off or
counterclaim against or in respect of the obligations of the Guarantor
hereunder.
(d) The Guarantor hereby unconditionally and irrevocably waives any
duty on the part of the Agent or any Lender to disclose to the Guarantor
any matter, fact or thing relating to the business, condition (financial
or otherwise), operations, performance, properties or prospects of any
other Loan Party or any of its Subsidiaries now or hereafter known by the
Agent or such Lender.
(e) The Guarantor acknowledges that it will receive substantial
direct and indirect benefits from the financing arrangements contemplated
by this Agreement and that the waivers set forth in Section 7.02 and this
Section 7.03 are knowingly made in contemplation of such benefits.
SECTION 7.04. Subrogation. The Guarantor hereby unconditionally and
irrevocably agrees not to exercise any rights that it may now have or hereafter
acquire against any Borrower or any other insider guarantor that arise from the
existence, payment, performance or enforcement of the Guarantor's obligations
under or in respect of this Guaranty, including, without limitation, any right
of subrogation, reimbursement, exoneration, contribution or indemnification and
any right to participate in any claim or remedy of the Agent or any Lender
against any Borrower or any other insider guarantor or any collateral, whether
or not such claim, remedy or right arises in equity or under contract, statute
or common law, including, without limitation, the right to take or receive from
any Borrower or any other insider guarantor, directly or indirectly, in cash or
other property or by set-off or in any other manner, payment or security on
account of such claim, remedy or right, unless and until all of the Guaranteed
Obligations and all other amounts payable under this Guaranty shall have been
paid in full in cash and the Commitments shall have expired or been terminated.
If any amount shall be paid to the Guarantor in violation of the immediately
preceding sentence at any time prior to the later of the payment in full in cash
of the Guaranteed Obligations and all other amounts payable under this Guaranty
and the Termination Date, such amount shall be received and held in trust for
the benefit of Agent and the Lenders, shall be segregated from other property
and funds of the Guarantor and shall forthwith be paid or delivered to the Agent
in the same form as so received (with any necessary endorsement or assignment)
to be credited and applied to the Guaranteed Obligations and all other amounts
payable under this Guaranty, whether matured or unmatured, in accordance with
the terms of this Agreement, or to be held as collateral for any Guaranteed
Obligations or other amounts payable under this Guaranty thereafter arising. If
(i) the Guarantor shall make payment to the Agent or any Lender of all or any
part of the Guaranteed Obligations, (ii) all of the Guaranteed Obligations and
all other amounts payable under this Guaranty shall have been paid in full in
cash and (iii) the Termination Date shall have occurred with respect to all
Lenders, the Agent and the Lenders will, at the Guarantor's request and expense,
execute and deliver to the Guarantor appropriate documents, without recourse and
without representation or warranty, necessary to evidence the transfer by
subrogation to the Guarantor of an interest in the Guaranteed Obligations
resulting from such payment made by the Guarantor pursuant to this Guaranty.
SECTION 7.05. Subordination. The Guarantor hereby subordinates any and all
debts, liabilities and other obligations owed to the Guarantor by each other
Loan Party (the "Subordinated Obligations") to the Guaranteed Obligations to the
extent and in the manner hereinafter set forth in this Section 7.05:
(a) Prior Payment of Guaranteed Obligations. In any proceeding under
any Bankruptcy Law relating to any other Loan Party, the Guarantor agrees
that the Agent and the Lenders shall be entitled to receive payment in
full in cash of all Guaranteed Obligations (including all interest and
expenses accruing after the commencement of a proceeding under any
Bankruptcy Law, whether or not constituting an
29
allowed claim in such proceeding ("Post Petition Interest")) before the
Guarantor receives payment of any Subordinated Obligations.
(b) Turn-Over. After the occurrence and during the continuance of
any Event of Default under Section 6.01(e), the Guarantor shall, if the
Agent so requests, collect, enforce and receive payments on account of the
Subordinated Obligations as trustee for the Agent and the Lenders and
deliver such payments to the Agent on account of the Guaranteed
Obligations (including all Post Petition Interest), together with any
necessary endorsements or other instruments of transfer, but without
reducing or affecting in any manner the liability of the Guarantor under
the other provisions of this Guaranty.
(c) Agent Authorization. After the occurrence and during the
continuance of any Event of Default under Section 6.01(e), the Agent is
authorized and empowered (but without any obligation to so do), in its
discretion, (i) in the name of the Guarantor, to collect and enforce, and
to submit claims in respect of, Subordinated Obligations and to apply any
amounts received thereon to the Guaranteed Obligations (including any and
all Post Petition Interest), and (ii) to require the Guarantor (A) to
collect and enforce, and to submit claims in respect of, Subordinated
Obligations and (B) to pay any amounts received on such obligations to the
Agent for application to the Guaranteed Obligations (including any and all
Post Petition Interest).
SECTION 7.06. Continuing Guaranty; Assignments. This Guaranty is a
continuing guaranty and shall (a) remain in full force and effect until the
later of the payment in full in cash of the Guaranteed Obligations and all other
amounts payable under this Guaranty and the Termination Date, (b) be binding
upon the Guarantor, its successors and assigns and (c) inure to the benefit of
and be enforceable by the Agent and the Lenders and their successors,
transferees and assigns. Without limiting the generality of clause (c) of the
immediately preceding sentence, any Lender may assign or otherwise transfer all
or any portion of its rights and obligations under this Agreement (including,
without limitation, all or any portion of its Commitments, the Advances owing to
it and the Note or Notes held by it) to any other Person, and such other Person
shall thereupon become vested with all the benefits in respect thereof granted
to such Lender herein or otherwise, in each case as and to the extent provided
in Section 9.07. The Guarantor shall not have the right to assign its rights
hereunder or any interest herein without the prior written consent of each of
the Lenders.
ARTICLE VIII
THE AGENT
SECTION 8.01. Authorization and Action. Each Lender hereby appoints and
authorizes the Agent to take such action as agent on its behalf and to exercise
such powers and discretion under this Agreement as are delegated to the Agent by
the terms hereof, together with such powers and discretion as are reasonably
incidental thereto. As to any matters not expressly provided for by this
Agreement (including, without limitation, enforcement or collection of the
Notes), the Agent shall not be required to exercise any discretion or take any
action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the instructions of
the Required Lenders, and such instructions shall be binding upon all Lenders
and all holders of Notes; provided, however, that the Agent shall not be
required to take any action that exposes the Agent to personal liability or that
is contrary to this Agreement or applicable law. The Agent agrees to give to
each Lender prompt notice of each notice given to it by any Loan Party pursuant
to the terms of this Agreement.
SECTION 8.02. Agent's Reliance, Etc. Neither the Agent nor any of its
directors, officers, agents or employees shall be liable for any action taken or
omitted to be taken by it or them under or in connection with this Agreement,
except for its or their own gross negligence or willful misconduct. Without
limitation of the generality of the foregoing, the Agent: (i) may treat the
Lender that made any Advance as the holder of the Debt resulting therefrom until
the Agent receives and accepts an Assignment and Acceptance entered into by such
Lender, as assignor, and an Eligible Assignee, as assignee, as provided in
Section 9.07; (ii) may consult with legal counsel (including counsel for the
Loan Parties), independent public accountants and other experts selected by it
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
30
counsel, accountants or experts; (iii) makes no warranty or representation to
any Lender and shall not be responsible to any Lender for any statements,
warranties or representations (whether written or oral) made in or in connection
with this Agreement; (iv) shall not have any duty to ascertain or to inquire as
to the performance, observance or satisfaction of any of the terms, covenants or
conditions of this Agreement on the part of any Loan Party or the existence at
any time of any Default or to inspect the property (including the books and
records) of any Loan Party; (v) shall not be responsible to any Lender for the
due execution, legality, validity, enforceability, genuineness, sufficiency or
value of this Agreement or any other instrument or document furnished pursuant
hereto; and (vi) shall incur no liability under or in respect of this Agreement
by acting upon any notice, consent, certificate or other instrument or writing
(which may be by telecopier or telegram) believed by it to be genuine and signed
or sent by the proper party or parties.
SECTION 8.03. Citibank and Affiliates. With respect to its Commitment, the
Advances made by it and any Note issued to it, Citibank shall have the same
rights and powers under this Agreement as any other Lender and may exercise the
same as though it were not the Agent; and the term "Lender" or "Lenders" shall,
unless otherwise expressly indicated, include Citibank in its individual
capacity. Citibank and its Affiliates may accept deposits from, lend money to,
act as trustee under indentures of, accept investment banking engagements from
and generally engage in any kind of business with, the Guarantor, any of its
Subsidiaries and any Person who may do business with or own securities of the
Guarantor or any such Subsidiary, all as if Citibank were not the Agent and
without any duty to account therefor to the Lenders. The Agent shall have no
duty to disclose information obtained or received by it or any of its Affiliates
relating to the Guarantor or its Subsidiaries to the extent such information was
obtained or received in any capacity other than as Agent.
SECTION 8.04. Lender Credit Decision. Each Lender acknowledges that it
has, independently and without reliance upon the Agent or any other Lender and
based on the financial statements referred to in Section 4.01 and such other
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 Agent or
any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement.
SECTION 8.05. Indemnification. The Lenders agree to indemnify the Agent
(to the extent not reimbursed by the Borrowers), ratably according to the
respective principal amounts of the Advances then owed to each of them (or if no
Advances are at the time outstanding, ratably according to the respective
amounts of their Commitments), from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever that may be imposed
on, incurred by, or asserted against the Agent in any way relating to or arising
out of this Agreement or any action taken or omitted by the Agent under this
Agreement (collectively, the "Indemnified Costs"), provided that no Lender shall
be liable for any portion of the Indemnified Costs resulting from the Agent's
gross negligence or willful misconduct. Without limitation of the foregoing,
each Lender agrees to reimburse the Agent promptly upon demand for its ratable
share of any out-of-pocket expenses (including reasonable counsel fees) incurred
by the Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, this Agreement, to the extent that the Agent
is not reimbursed for such expenses by the Borrowers. In the case of any
investigation, litigation or proceeding giving rise to any Indemnified Costs,
this Section 8.05 applies whether any such investigation, litigation or
proceeding is brought by the Agent, any Lender or a third party. The Agent
agrees to return to the Lenders their respective ratable shares of any amounts
paid under this Section 8.05 that are subsequently reimbursed by the Borrowers,
together with interest to the extent recovered from the Borrowers.
SECTION 8.06. Successor Agent. The Agent may resign at any time by giving
written notice thereof to the Lenders and the Borrowers and may be removed at
any time with or without cause by the Required Lenders. Upon any such
resignation or removal, the Required Lenders shall have the right to appoint a
successor Agent from among the Lenders with the consent, so long as no Event of
Default has occurred and is continuing, of the Guarantor, which consent will not
be unreasonably withheld or delayed. If no successor Agent shall have been so
appointed by the Required Lenders, and shall have accepted such appointment,
within 30 days after the retiring Agent's giving of notice of resignation or the
Required Lenders' removal of the retiring Agent, then the retiring Agent may, on
behalf of the Lenders, appoint a successor Agent, which shall be a Lender that
is a commercial bank
31
organized 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. Upon the
acceptance of any appointment as Agent hereunder by a successor Agent, such
successor Agent shall thereupon succeed to and become vested with all the
rights, powers, discretion, privileges and duties of the retiring Agent, and the
retiring Agent shall be discharged from its duties and obligations under this
Agreement. After any retiring Agent's resignation or removal hereunder as Agent,
the provisions of this Article VIII shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Agent under this Agreement.
SECTION 8.07. Other Agents. Each Lender hereby acknowledges that none of
the syndication agent, any documentation agent nor any other Lender designated
as any "Agent" on the signature pages hereof (other than the Agent) has any
liability hereunder other than in its capacity as a Lender.
ARTICLE IX
MISCELLANEOUS
SECTION 9.01. Amendments, Etc. No amendment or waiver of any provision of
this Agreement or the Notes, nor consent to any departure by any Loan Party
therefrom, shall in any event be effective unless the same shall be in writing
and signed by the Required Lenders and (except for waivers or consents by any
Lender) each of the Loan Parties, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided, however, that no amendment, waiver or consent shall, unless in
writing and signed by all the Lenders, do any of the following: (a) waive any of
the conditions specified in Section 3.01, (b) increase the Commitments of the
Lenders, (c) reduce the principal of, or interest on, the Advances or any fees
or other amounts payable hereunder, (d) postpone any date fixed for any payment
of principal of, or interest on, the Advances or any fees or other amounts
payable hereunder, (e) change the percentage of the Commitments or of the
aggregate unpaid principal amount of the Advances, or the number of Lenders,
that shall be required for the Lenders or any of them to take any action
hereunder, (f) reduce or limit the obligations of the Guarantor under Section
7.01 or release the Guarantor or otherwise limit the Guarantor's liability with
respect to the obligations owing to the Agent and the Lenders under Article VII
or (g) amend this Section 9.01; and provided further that no amendment, waiver
or consent shall, unless in writing and signed by the Agent in addition to the
Lenders required above to take such action, affect the rights or duties of the
Agent under this Agreement or any Note.
SECTION 9.02. Notices, Etc. (a) All notices and other communications
provided for hereunder shall be either (x) in writing (including telecopier or
telegraphic communication) and mailed, telecopied, telegraphed or delivered, or
(y) as and to the extent set forth in Section 9.02(b) and (c), if to Loan
Parties, at the address of the Guarantor at Xxx Xxxx Xxxxxx Xxxxxx, Xxxxxxxxx,
Xxxxxxxxxxx 00000, Attention: Xxxx Xxxxxxx; if to any Initial Lender, at its
Domestic Lending Office specified opposite its name on Schedule I hereto; if to
any other Lender, at its Domestic Lending Office specified in the Assignment and
Acceptance pursuant to which it became a Lender; and if to the Agent, at its
address at Xxx Xxxxx Xxx, Xxx Xxxxxx, Xxxxxxxx 00000, Attention: Bank Loan
Syndications Department; or, as to any Loan Party or the Agent, at such other
address as shall be designated by such party in a written notice to the other
parties and, as to each other party, at such other address as shall be
designated by such party in a written notice to the Borrowers and the Agent,
provided that materials required to be delivered pursuant to Sections
5.01(i)(i), (ii), (iv) and (v) shall be delivered to the Agent as specified in
Section 9.02(b). All such notices and communications shall, when mailed,
telecopied or telegraphed, be effective when deposited in the mails, telecopied
or delivered to the telegraph company, respectively, except that notices and
communications to the Agent pursuant to Article II, III or VIII shall not be
effective until received by the Agent. Delivery by telecopier of an executed
counterpart of any amendment or waiver of any provision of this Agreement or the
Notes or of any Exhibit hereto to be executed and delivered hereunder shall be
effective as delivery of a manually executed counterpart thereof.
(b) So long as Citibank or any of its Affiliates is the Agent, materials
required to be delivered pursuant to Sections 5.01(i)(i), (ii), (iv) and (v) may
be delivered to the Agent in an electronic medium in a format acceptable to the
Agent and the Lenders by e-mail at xxxxxxxxxxxxxxx@xxxxxxxxx.xxx. The Guarantor
agrees that the Agent may make such materials, as well as any other written
information, documents, instruments and other material relating to the
Guarantor, any of its Subsidiaries or any other materials or matters relating to
this Agreement, the Notes or any of the transactions contemplated hereby, but
not including any notices under Article II
32
(collectively, the "Communications") available to the Lenders by posting such
notices on Intralinks or a substantially similar electronic system (the
"Platform"). The Guarantor acknowledges that (i) the distribution of material
through an electronic medium is not necessarily secure and that there are
confidentiality and other risks associated with such distribution, (ii) the
Platform is provided "as is" and "as available" and (iii) neither the Agent nor
any of its Affiliates warrants the accuracy, adequacy or completeness of the
Communications or the Platform and each expressly disclaims liability for errors
or omissions in the Communications or the Platform. No warranty of any kind,
express, implied or statutory, including, without limitation, any warranty of
merchantability, fitness for a particular purpose, non-infringement of third
party rights or freedom from viruses or other code defects, is made by the Agent
or any of its Affiliates in connection with the Platform.
(c) Each Lender agrees that notice to it (as provided in the next
sentence) (a "Notice") specifying that any Communications have been posted to
the Platform shall constitute effective delivery of such information, documents
or other materials to such Lender for purposes of this Agreement; provided that
if requested by any Lender the Agent shall deliver a copy of the Communications
to such Lender by email or telecopier. Each Lender agrees (i) to notify the
Agent in writing of such Lender's e-mail address to which a Notice may be sent
by electronic transmission (including by electronic communication) on or before
the date such Lender becomes a party to this Agreement (and from time to time
thereafter to ensure that the Agent has on record an effective e-mail address
for such Lender) and (ii) that any Notice may be sent to such e-mail address.
SECTION 9.03. No Waiver; Remedies. No failure on the part of any Lender or
the Agent to exercise, and no delay in exercising, any right hereunder or under
any Note shall operate as a waiver thereof; nor shall any single or partial
exercise of any such right preclude any other or further exercise thereof or the
exercise of any other right. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law.
SECTION 9.04. Costs and Expenses. (a) The Borrowers agree to pay on demand
all costs and expenses of the Agent in connection with the preparation,
execution, delivery, administration, modification and amendment of this
Agreement, the Notes and the other documents to be delivered hereunder,
including, without limitation, (A) all due diligence, syndication (including
printing, distribution and bank meetings), transportation, computer,
duplication, appraisal, consultant, and audit expenses and (B) the reasonable
fees and expenses of counsel for the Agent with respect thereto and with respect
to advising the Agent as to its rights and responsibilities under this
Agreement. The Borrowers further agree to pay on demand all costs and expenses
of the Agent and the Lenders, if any (including, without limitation, reasonable
fees and expenses of outside counsel and the allocated costs and expenses of
in-house counsel), in connection with the enforcement (whether through
negotiations, legal proceedings or otherwise) of this Agreement, the Notes and
the other documents to be delivered hereunder, including, without limitation,
reasonable fees and expenses of counsel for the Agent and each Lender in
connection with the enforcement of rights under this Section 9.04(a).
(b) The Borrowers agree to indemnify and hold harmless the Agent and each
Lender and each of their Affiliates and their officers, directors, employees,
agents and advisors (each, an "Indemnified Party") from and against any and all
claims, damages, losses, liabilities and expenses (including, without
limitation, reasonable fees and expenses of counsel) incurred by or asserted or
awarded against any Indemnified Party, in each case arising out of or in
connection with or by reason of (including, without limitation, in connection
with any investigation, litigation or proceeding or preparation of a defense in
connection therewith) (i) the Notes, this Agreement, any of the transactions
contemplated herein or the actual or proposed use of the proceeds of the
Advances or (ii) the actual or alleged presence of hazardous materials on any
property of the Guarantor or any of its Subsidiaries or any Environmental Action
relating in any way to the Guarantor or any of its Subsidiaries, except to the
extent such claim, damage, loss, liability or expense is found in a final,
non-appealable judgment by a court of competent jurisdiction to have resulted
from such Indemnified Party's gross negligence or willful misconduct. In the
case of an investigation, litigation or other proceeding to which the indemnity
in this Section 9.04(b) applies, such indemnity shall be effective whether or
not such investigation, litigation or proceeding is brought by any Loan Party,
its directors, equityholders or creditors or an Indemnified Party or any other
Person, whether or not any Indemnified Party is otherwise a party thereto and
whether or not the transactions contemplated hereby are consummated. The Loan
Parties also agree not to assert any claim for special, indirect, consequential
or punitive damages against the Agent, any Lender, any of their Affiliates, or
any of their respective directors, officers, employees, attorneys and agents, on
any theory of liability, arising out of or otherwise relating to the Notes, this
Agreement, any of the transactions contemplated herein or the actual or proposed
use of the proceeds of the Advances.
33
(c) If any payment of principal of, or Conversion of, any Eurodollar Rate
Advance is made by any Borrower to or for the account of a Lender (i) other than
on the last day of the Interest Period for such Advance, as a result of a
payment or Conversion pursuant to Section 2.07, 2.09 or 2.11, acceleration of
the maturity of the Notes pursuant to Section 6.01 or for any other reason, or
by an Eligible Assignee to a Lender other than on the last day of the Interest
Period for such Advance upon an assignment of rights and obligations under this
Agreement pursuant to Section 9.07 as a result of a demand by the Guarantor
pursuant to Section 9.07(a) or (ii) as a result of a payment or Conversion
pursuant to Section 2.07, 2.09 or 2.11, the Borrower of such Advance shall, upon
demand by such Lender (with a copy of such demand to the Agent), pay to the
Agent for the account of such Lender any amounts required to compensate such
Lender for any additional losses, costs or expenses that it may reasonably incur
as a result of such payment or Conversion, including, without limitation, any
loss (including loss of anticipated profits), cost or expense incurred by reason
of the liquidation or reemployment of deposits or other funds acquired by any
Lender to fund or maintain such Advance.
(d) Without prejudice to the survival of any other agreement of the
Borrowers hereunder, the agreements and obligations of the Borrowers contained
in Sections 2.10, 2.13 and 9.04 shall survive the payment in full of principal,
interest and all other amounts payable hereunder and under the Notes.
SECTION 9.05. Right of Set-off. Upon (i) the occurrence and during the
continuance of any Event of Default and (ii) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the Agent to
declare the Notes due and payable pursuant to the provisions of Section 6.01,
each Lender and each of its Affiliates is hereby authorized at any time and from
time to time, to the fullest extent permitted by law, to set off and apply any
and all deposits (general or special, time or demand, provisional or final) at
any time held and other indebtedness at any time owing by such Lender or such
Affiliate to or for the credit or the account of any Loan Party against any and
all of the obligations of such Loan Party now or hereafter existing under this
Agreement and any Note held by such Lender, whether or not such Lender shall
have made any demand under this Agreement or such Note and although such
obligations may be unmatured. Each Lender agrees promptly to notify the
applicable Loan Party after any such set-off and application, provided that the
failure to give such notice shall not affect the validity of such set-off and
application. The rights of each Lender and its Affiliates under this Section are
in addition to other rights and remedies (including, without limitation, other
rights of set-off) that such Lender and its Affiliates may have.
SECTION 9.06. Binding Effect. This Agreement shall become effective (other
than Section 2.01, which shall only become effective upon satisfaction of the
conditions precedent set forth in Section 3.01) when it shall have been executed
by each Loan Party and the Agent and when the Agent shall have been notified by
each Initial Lender that such Initial Lender has executed it and thereafter
shall be binding upon and inure to the benefit of the Loan Parties, the Agent
and each Lender and their respective successors and assigns and each Indemnified
Party, except that no Loan Party shall have the right to assign its rights
hereunder or any interest herein without the prior written consent of each of
the Lenders.
SECTION 9.07. Assignments and Participations. (a) Each Lender may and, if
demanded by the Guarantor (following a demand by such Lender pursuant to Section
2.10 or 2.13) upon at least five Business Days' notice to such Lender and the
Agent, will assign to one or more Persons all or a portion of its rights and
obligations under this Agreement (including, without limitation, all or a
portion of its Commitment, the Advances owing to it and the Note or Notes held
by it); provided, however, that (i) each such assignment shall be of a constant,
and not a varying, percentage of all rights and obligations under this
Agreement, (ii) except in the case of an assignment to a Person that,
immediately prior to such assignment, was a Lender or an assignment of all of a
Lender's rights and obligations under this Agreement, the amount of the
Commitment of the assigning Lender being assigned pursuant to each such
assignment (determined as of the date of the Assignment and Acceptance with
respect to such assignment) shall in no event be less than $10,000,000 or an
integral multiple of $1,000,000 in excess thereof unless the Guarantor and the
Agent otherwise agree, (iii) each such assignment shall be to an Eligible
Assignee, (iv) each such assignment made as a result of a demand by the
Guarantor pursuant to this Section 9.07(a) shall be arranged by the Guarantor
after consultation with the Agent and shall be either an assignment of all of
the rights and obligations of the assigning Lender under this Agreement or an
assignment of a portion of such rights and obligations made concurrently with
another such assignment or other such assignments that together cover all of the
rights and obligations of the assigning Lender under this Agreement, (v) no
Lender shall be obligated to make any such assignment as a result of a demand by
the Guarantor pursuant to this Section 9.07(a) unless and until such Lender
34
shall have received one or more payments from either the Borrowers or one or
more Eligible Assignees in an aggregate amount at least equal to the aggregate
outstanding principal amount of the Advances owing to such Lender, together with
accrued interest thereon to the date of payment of such principal amount and all
other amounts payable to such Lender under this Agreement and (vi) the parties
to each such assignment shall execute and deliver to the Agent, for its
acceptance and recording in the Register, an Assignment and Acceptance, together
with any Note subject to such assignment and a processing and recordation fee of
$3,500, payable by the parties to each such assignment, provided, however, that
in the case of each assignment made as a result of a demand by the Guarantor,
such recordation fee shall be payable by the Guarantor except that no such
recordation fee shall be payable in the case of an assignment made at the
request of the Guarantor to an Eligible Assignee that is an existing Lender.
Upon such execution, delivery, acceptance and recording, from and after the
effective date specified in each Assignment and Acceptance, (x) the assignee
thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance, have the rights and obligations of a Lender hereunder and (y) the
Lender assignor thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Assignment and Acceptance,
relinquish its rights (other than its rights under Section 2.10, 2.13 and 9.04
to the extent any claim thereunder relates to an event arising prior such
assignment) and be released from its obligations (other than its obligations
under Section 8.05 to the extent any claim thereunder relates to an event
arising prior to such assignment) 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).
(b) By executing and delivering an Assignment and Acceptance, the Lender
assignor thereunder and the assignee thereunder confirm to and agree with each
other and the other parties hereto as follows: (i) other than as provided in
such Assignment and Acceptance, 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 or
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of this Agreement or any other instrument or document furnished pursuant
hereto; (ii) such assigning Lender makes no representation or warranty and
assumes no responsibility with respect to the financial condition of any Loan
Party or the performance or observance by any Loan Party of any of its
obligations under this Agreement or any other instrument or document furnished
pursuant hereto; (iii) such assignee confirms that it has received a copy of
this Agreement, together with copies of the financial statements referred to in
Section 4.01 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; (iv) such assignee will, independently and without
reliance upon the Agent, 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; (v) such assignee confirms that it is an Eligible Assignee; (vi)
such assignee appoints and authorizes the Agent to take such action as agent on
its behalf and to exercise such powers and discretion under this Agreement as
are delegated to the Agent by the terms hereof, together with such powers and
discretion as are reasonably incidental thereto; and (vii) such assignee agrees
that it will perform in accordance with their terms all of the obligations that
by the terms of this Agreement are required to be performed by it as a Lender.
(c) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an assignee representing that it is an Eligible Assignee,
together with any Note or Notes subject to such assignment, the Agent shall, if
such Assignment and Acceptance has been completed and is in substantially the
form of Exhibit C hereto, (i) accept such Assignment and Acceptance, (ii) record
the information contained therein in the Register and (iii) give prompt notice
thereof to the Borrowers.
(d) The Agent shall maintain at its address referred to in Section 9.02 a
copy of each Assignment and Acceptance delivered to and accepted by it and a
register for the recordation of the names and addresses of the Lenders and the
Commitment of, and principal amount of the Advances owing to, each Lender from
time to time (the "Register"). The entries in the Register shall be conclusive
and binding for all purposes, absent manifest error, and each Loan Party, the
Agent and the Lenders may treat each Person whose name is recorded in the
Register as a Lender hereunder for all purposes of this Agreement. The Register
shall be available for inspection by any Loan Party or any Lender at any
reasonable time and from time to time upon reasonable prior notice.
(e) Each Lender may sell participations to one or more banks or other
entities (other than the Guarantor or any of its Affiliates) in or to all or a
portion of its rights and obligations under this Agreement
35
(including, without limitation, all or a portion of its Commitment, the Advances
owing to it and any Note or Notes held by it); provided, however, that (i) such
Lender's obligations under this Agreement (including, without limitation, its
Commitment to the Borrowers hereunder) shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance
of such obligations, (iii) such Lender shall remain the holder of any such Note
for all purposes of this Agreement, (iv) the Borrowers, the Agent and the other
Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender's rights and obligations under this Agreement and
(v) no participant under any such participation shall have any right to approve
any amendment or waiver of any provision of this Agreement or any Note, or any
consent to any departure by any Loan Party therefrom, except to the extent that
such amendment, waiver or consent would reduce the principal of, or interest on,
the Advances or any fees or other amounts payable hereunder, in each case to the
extent subject to such participation, or postpone any date fixed for any payment
of principal of, or interest on, the Advances or any fees or other amounts
payable hereunder, in each case to the extent subject to such participation, or
reduce or limit the obligations of the Guarantor under Section 7.01 or release
the Guarantor from its obligations under Article VII.
(f) Any Lender may, in connection with any assignment or participation or
proposed assignment or participation pursuant to this Section 9.07, disclose to
the assignee or participant or proposed assignee or participant, any information
relating to the Guarantor furnished to such Lender by or on behalf of the
Guarantor; provided that, prior to any such disclosure, the assignee or
participant or proposed assignee or participant shall agree to preserve the
confidentiality of any Confidential Information relating to the Guarantor
received by it from such Lender.
(g) Notwithstanding any other provision set forth in this Agreement, any
Lender may at any time create a security interest in all or any portion of its
rights under this Agreement (including, without limitation, the Advances owing
to it and any Note or Notes held by it) in favor of any Federal Reserve Bank in
accordance with Regulation A of the Board of Governors of the Federal Reserve
System.
SECTION 9.08. Confidentiality. Neither the Agent nor any Lender shall
disclose any Confidential Information to any other Person without the consent of
the Guarantor, other than (a) to the Agent's or such Lender's Affiliates and
their officers, directors, employees, agents and advisors and, as contemplated
by Section 9.07(f), to actual or prospective assignees and participants, or to
any direct, indirect, actual or prospective counterparty (and its advisor) to
any swap, derivative or securitization transaction relating to the Borrowers'
obligations hereunder, and then only on a confidential basis, (b) as required by
any law, rule or regulation or judicial process, (c) as requested or required by
any state, federal or foreign authority or examiner regulating banks or banking
and (d) in connection with the exercise of any remedies hereunder or any suit,
action or proceeding relating to this Agreement or the enforcement of rights
hereunder.
SECTION 9.09. Governing Law. This Agreement and the Notes shall be
governed by, and construed in accordance with, the laws of the State of New
York.
SECTION 9.10. Execution in Counterparts. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of a signature page to this Agreement by
telecopier shall be effective as delivery of a manually executed counterpart of
this Agreement.
SECTION 9.11. Jurisdiction, Etc. (a) Each of the parties hereto hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State court or federal court of the
United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this
Agreement or the Notes, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that
all claims in respect of any such action or proceeding may be heard and
determined in any such New York State court or, to the extent permitted by law,
in such federal court. The Loan Parties hereby agree that service of process in
any such action or proceeding brought in the any such New York State court or in
such federal court may be made upon the Guarantor at its offices at Xxx Xxxx
Xxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxxxxx 00000 Attention: General Counsel and the
Loan Parties hereby irrevocably appoint the Guarantor its authorized agent to
accept such service of process, and agrees that the failure of the Guarantor to
give any notice of any such service shall not impair or affect the validity
36
of such service or of any judgment rendered in any action or proceeding based
thereon. Each Loan Party hereby further irrevocably consents to the service of
process in any action or proceeding in such courts by the mailing thereof by any
parties hereto by registered or certified mail, postage prepaid, to such Loan
Party at its address specified pursuant to Section 9.02. 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 party may otherwise have to bring any action or proceeding
relating to this Agreement or the Notes in the courts of any jurisdiction.
(b) Each of the parties hereto irrevocably and unconditionally waives, to
the fullest extent it may legally and effectively do so, any objection that 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 Notes in any New
York State or federal court. 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.
SECTION 9.12. Judgment. (a) If for the purposes of obtaining judgment in
any court it is necessary to convert a sum due hereunder in U.S. dollars into
another currency, the parties hereto agree, to the fullest extent that they may
effectively do so, that the rate of exchange used shall be that at which in
accordance with normal banking procedures the Agent could purchase U.S. dollars
with such other currency at Citibank's principal office in London at 11:00 A.M.
(London time) on the Business Day preceding that on which final judgment is
given.
(b) The obligation of any Borrower in respect of any sum due from it in
any currency (the "Primary Currency") to any Lender or the Agent hereunder
shall, notwithstanding any judgment in any other currency, be discharged only to
the extent that on the Business Day following receipt by such Lender or the
Agent (as the case may be), of any sum adjudged to be so due in such other
currency, such Lender or the Agent (as the case may be) may in accordance with
normal banking procedures purchase the applicable Primary Currency with such
other currency; if the amount of the applicable Primary Currency so purchased is
less than such sum due to such Lender or the Agent (as the case may be) in the
applicable Primary Currency, each Borrower agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify such Lender or the Agent (as the
case may be) against such loss, and if the amount of the applicable Primary
Currency so purchased exceeds such sum due to any Lender or the Agent (as the
case may be) in the applicable Primary Currency, such Lender or the Agent (as
the case may be) agrees to remit to such Borrower such excess.
SECTION 9.13. Patriot Act. Each Lender hereby notifies the Guarantor and
each the Borrower that pursuant to the requirements of the USA Patriot Act
(Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "Act"), it
is required to obtain, verify and record information that identifies each
borrower, guarantor or grantor (the "Loan Parties"), which information includes
the name and address of each Loan Party and other information that will allow
such Lender to identify such Loan Party in accordance with the Act.
37
SECTION 9.14. Waiver of Jury Trial. Each of the Loan Parties, the Agent
and the Lenders hereby irrevocably waives all right to trial by jury in any
action, proceeding or counterclaim (whether based on contract, tort or
otherwise) arising out of or relating to this Agreement or the Notes or the
actions of the Agent or any Lender in the negotiation, administration,
performance or enforcement thereof.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.
OMNICOM FINANCE INC., as Borrower
By: /s/ Xxxxxx X. Xxxxxx
-------------------------------------
Xxxxxx X. Xxxxxx
Treasurer
OMNICOM CAPITAL INC., as Borrower
By: /s/ Xxxxxx X. Xxxxxx
-------------------------------------
Xxxxxx X. Xxxxxx
President and Chief Executive Officer
OMNICOM FINANCE PLC, as Borrower
By: /s/ Xxxxxx X. Xxxxxx
-------------------------------------
Xxxxxx X. Xxxxxx
Director
OMNICOM GROUP INC., as Guarantor
By: /s/ Xxxxxx X. Xxxxxx
-------------------------------------
Xxxxxx X. Xxxxxx
Treasurer
CITIBANK, N.A., as Agent
By: /s/ Xxxxxxx X. Xxx
-------------------------------------
Name: Xxxxxxx X. Xxx
Title: Vice President
38
Initial Lenders
Commitment
$80,000,000 CITIBANK, N.A.
By: /s/ Xxxxxxx X. Xxx
-------------------------------------
Name: Xxxxxxx X. Xxx
Title: Vice President
$80,000,000 JPMORGAN CHASE BANK, N.A.
By: /s/ Xxxxx X. Xxxxx
-------------------------------------
Name: Xxxxx X. Xxxxx
Title: Managing Director
$43,000,000 ABN AMRO BANK N.V.
By: /s/ Xxxxx Xxxxxxxxxx
-------------------------------------
Name: Xxxxx Xxxxxxxxxx
Title: Director
By: /s/ Xxxxxx Xxxxxxxxxx
-------------------------------------
Name: Xxxxxx Xxxxxxxxxx
Title: Vice President
$43,000,000 BANK OF AMERICA, N.A.
By: /s/ Xxx Xxxxx
-------------------------------------
Name: Xxx Xxxxx
Title: Vice President
$43,000,000 BANCO BILBAO VIZCAYA ARGENTARIA
By: /s/ Xxxx Xxxxxxxx
-------------------------------------
Name: Xxxx Xxxxxxxx
Title: Senior Vice President
By: /s/ Giampaolo Consigliere
-------------------------------------
Name: Giampaolo Consigliere
Title: Vice President
$43,000,000 BARCLAYS BANK PLC
By: /s/ Xxxxx Xxxxxx
-------------------------------------
Name: Xxxxx Xxxxxx
Title: Associate Director
$43,000,000 HSBC BANK USA, N.A.
By: /s/ Xxxxxx Xxxx
-------------------------------------
Name: Xxxxxx Xxxx
Title: Vice President
39
$25,000,000 ROYAL BANK OF CANADA
By: /s/ Xxxxxx Xxxxxx
-------------------------------------
Name: Xxxxxx Xxxxxx
Title: Attorney in Fact
$400,000,000 Total of the Commitments
40
SCHEDULE I
OMNICOM GROUP
364-DAY CREDIT AGREEMENT
APPLICABLE LENDING OFFICES
APPLICABLE LENDING OFFICES
--------------------------------------------------------------------------------
Name of Initial Lender Domestic Lending Office Eurodollar Lending Office
--------------------------------------------------------------------------------
ABN Amro Bank N.V. 000 X. Xxxxxxx 000 X. Xxxxxxx
Xxxxx 0000 Xxxxx 0000
Xxxxxxx, XX 00000 Xxxxxxx, XX 00000
Attn: Xxxxxxxx Xxxxxx Attn: Xxxxxxxx Xxxxxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
--------------------------------------------------------------------------------
Banco Bilbao
Vizcaya Argentaria 1345 Avenue of the Americas 1345 Avenue of the Americas
00xx Xxxxx 00xx Xxxxx
Xxx Xxxx, XX 00000 Xxx Xxxx, XX 00000
Attn: Xxxxxx Xxxxxxxx Attn: Xxxxxx Xxxxxxxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
--------------------------------------------------------------------------------
Bank of America, N.A. 0000 Xxxxxxx Xxxx., 0000 Xxxxxxx Xxxx.,
0xx Xxxxx 0xx Xxxxx
Xxxxxxx, XX Concord, CA
Attn: Xxxxx Xxxx Attn: Xxxxx Xxxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
--------------------------------------------------------------------------------
Barclays Bank PLC 000 Xxxx Xxxxxx 000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000 Xxx Xxxx, XX 00000
Attn: Xxxxxxx Xxxxxxx Attn: Xxxxxxx Xxxxxxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
--------------------------------------------------------------------------------
Citibank, N.A. Two Penns Way Xxx Xxxxx Xxx
Xxx Xxxxxx, XX 00000 Xxx Xxxxxx, XX 00000
Attn: Xxxxxxx Xxxxx Attn: Xxxxxxx Xxxxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
--------------------------------------------------------------------------------
HSBC Bank USA, N.A. One HSBC Center 26th Floor Xxx XXXX Xxxxxx 00xx Xxxxx
Xxxxxxx, XX 00000 Xxxxxxx, XX 00000
Attn: Xxxxx X. Xxxxx Attn: Xxxxx X. Xxxxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
--------------------------------------------------------------------------------
JPMorgan Chase
Bank, N.A. One Chase Manhattan Plaza Xxx Xxxxx Xxxxxxxxx Xxxxx
Xxx Xxxx, XX 00000 Xxx Xxxx, XX 00000
Attn: Xxxxx Xxxxxxxxxx Attn: Xxxxx Xxxxxxxxxx
T: 000 000-0000 T: 000 000-0000
F: 000 000-0000 F: 000 000-0000
--------------------------------------------------------------------------------
Royal Bank of Canada
--------------------------------------------------------------------------------
1
SCHEDULE 3.01(b)
DISCLOSED LITIGATION
Beginning on June 13, 2002, several proposed class actions were filed against
Omnicom Group Inc. ("OGI") and certain of OGI's senior executives in the United
States District Court for the Southern District of New York. The actions have
since been consolidated under the caption In re Omnicom Group Inc. Securities
Litigation, No. 02-CV4483 (RCC) on behalf of a proposed class of purchasers of
OGI's common stock between February 20, 2001 and June 11, 2002. The consolidated
complaint filed alleges among other things that OGI's public filings and other
public statements during that period contained false and misleading statements
or omitted to state material information relating to (1) OGI's calculation of
the organic growth component of period-to-period revenue growth, (2) OGI's
valuation of certain internet investments made by OGI's Communicade Group, which
OGI contributed to Seneca Investments LLC in 2001 (the "Seneca Transaction"),
and (3) the existence and amount of certain contingent future obligations in
respect of acquisitions. The complaint seeks an unspecified amount of
compensatory damages plus costs and attorneys' fees. Defendants moved to dismiss
the complaint and on March 28, 2005, the court issued a decision ordering the
dismissal of the claims related to organic growth calculation and related to the
contingent future obligations in respect of acquisitions. The court did not
dismiss the claim related to the Seneca Transaction and ordered the defendants
to file an answer to the complaint by April 29, 2005. The court imposed a
six-month schedule for completing all discovery which is under way.
In addition to the proceedings described above, a shareholder derivative action
was filed on June 28, 2002 in New York State Court in New York City by a
plaintiff shareholder, purportedly on OGI's behalf. The action is pending before
Justice Xxxxx Xxxxxxxxx. The complaint alleges, among other things, breaches of
fiduciary duty, disclosure failures, abuse of control and gross mismanagement in
connection with the formation of Seneca Investments LLC by certain current and
former directors of OGI. On February 18, 2005, a second shareholder derivative
action, again purportedly brought on behalf of OGI and making similar claims was
filed in New York State Court in New York City. During a status conference on
April 20, 2005, Justice Xxxxxxxxx and the parties agreed that the two derivative
actions should be consolidated and proceed before her. The parties are drafting
a proposed order that would consolidate the actions and set a schedule for
further litigation of this matter. Pursuant to the proposed schedule, plaintiffs
would file an amended consolidated compliant twenty days after the actions are
consolidated and the defendants will move to dismiss or will otherwise respond
to the amended complaint forty-five days thereafter. The defendants presently
intend to move to dismiss the amended complaint. Discovery would be stayed while
any such motion to dismiss was pending.
Management presently expects to defend these cases vigorously. Currently, OGI is
unable to determine the outcome of these cases and the effect on OGI's financial
position or results of operations. The outcome of any of these matters is
inherently uncertain and may be affected by future events.
SCHEDULES 5.02(a) AND 5.02(d)
EXISTING LIENS AND EXISTING DEBT
Amount Due Each
---------------
Subsidiary Borrower Lender(s) Lender Total Debt
------------------- --------- ------ ----------
DAS Xxxxxxxxx-Xxxxxxx Pitney Xxxxx 31,583
Avaya 6,661
SBC 2,784 41,028
DAS National In-Store USBancorp 25,615
Safeline 2,000 27,615
DAS Xxxxxx Xxxxxxx Steelcase 15,109
NEC Leasing 10,163 25,272
DAS TPG Newcourt Leasing 5,982
Copelco Capital 1,694
Citicorp 1,422 9,098
DAS TPN GMAC 26,651 26,651
Cardinia Real Estate Osprey House 16,879,463 16,879,463
---------- ----------
---------- ----------
17,009,127 17,009,127
========== ==========
Omnicom Group Inc. has three zero coupon convertible bonds outstanding maturing
in 2031, 2032 and 2033. The principal amounts outstanding for each of these
bonds are $847,031,000, $892,273,000 and $600,000,000, respectively. In
addition, Omnicom Group Inc. has a 5.20% Euro-denominated note with a principal
amount outstanding of (euro)152,449,017.
EXHIBIT A - FORM OF
PROMISSORY NOTE
U.S.$_______________ Dated: _______________, 200_
FOR VALUE RECEIVED, the undersigned, [OMNICOM FINANCE INC., a Delaware
corporation][OMNICOM CAPITAL INC., a Connecticut corporation][OMNICOM FINANCE
PLC, a corporation organized under the laws of England and Wales], (the
"Borrower"), HEREBY PROMISES TO PAY to the order of _________________________
(the "Lender") for the account of its Applicable Lending Office on the later of
the Termination Date and the date designated pursuant to Section 2.05 of the
Credit Agreement (each as defined in the Credit Agreement referred to below) the
principal sum of U.S.$[amount of the Lender's Commitment in figures] or, if
less, the aggregate principal amount of the Advances made by the Lender to the
Borrower pursuant to the 364-Day Credit Agreement dated as of June 30, 2005
among the Borrowers referred to therein (including the undersigned), the Lender
and certain other lenders parties thereto, Citigroup Global Markets Inc. and
X.X. Xxxxxx Securities Inc., as lead arrangers and book managers, ABN AMRO Bank
N.V., as syndication agent, JPMorgan Chase Bank, N.A., Bank of America, N.A. and
Banco Bilbao Vizcaya Argentaria, as documentation agents, and Citibank, N.A., as
Agent for the Lender and such other lenders (as amended or modified from time to
time, the "Credit Agreement"; the terms defined therein being used herein as
therein defined) outstanding on such date.
The Borrower promises to pay interest on the unpaid principal amount of
each Advance from the date of such Advance until such principal amount is paid
in full, at such interest rates, and at such times, as are specified in the
Credit Agreement.
Both principal and interest are payable in lawful money of the United
States of America to Citibank, as Agent, at 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx
Xxxx 00000, in same day funds. Each Advance owing to the Lender by the Borrower
pursuant to the Credit Agreement, and all payments made on account of principal
thereof, shall be recorded by the Lender and, prior to any transfer hereof,
endorsed on the grid attached hereto which is part of this Promissory Note.
This Promissory Note shall be governed by, and construed in accordance
with, the laws of the State of New York.
This Promissory Note is one of the Notes referred to in, and is entitled
to the benefits of, the Credit Agreement. The Credit Agreement, among other
things, (i) provides for the making of Advances by the Lender to the Borrower
from time to time in an aggregate amount not to exceed at any time outstanding
the U.S. dollar amount first above mentioned, the indebtedness of the Borrower
resulting from each such Advance being evidenced by this Promissory Note and
(ii) contains provisions for acceleration of the maturity hereof upon the
happening of certain stated events and also for prepayments on account of
principal hereof prior to the maturity hereof upon the terms and conditions
therein specified.
[OMNICOM FINANCE INC.]
[OMNICOM CAPITAL INC.]
[OMNICOM FINANCE PLC]
By ___________________
Title:
ADVANCES AND PAYMENTS OF PRINCIPAL
--------------------------------------------------------------------------------
Amount of
Amount of Principal Paid Unpaid Principal Notation
Date Advance or Prepaid Balance Made By
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2
EXHIBIT B - FORM OF NOTICE OF
BORROWING
Citibank, N.A., as Agent
for the Lenders parties
to the Credit Agreement
referred to below
Xxx Xxxxx Xxx
Xxx Xxxxxx, Xxxxxxxx 00000
[Date]
Attention: Bank Loan Syndications Department
Ladies and Gentlemen:
The undersigned, [Omnicom Finance Inc.][Omnicom Capital Inc.][Omnicom
Finance plc], (the "Borrower"), refers to the 364-Day Credit Agreement, dated as
of June 30, 2005 (as amended or modified from time to time, the "Credit
Agreement", the terms defined therein being used herein as therein defined),
among the Borrowers referred to therein (including the undersigned), certain
Lenders parties thereto, Citigroup Global Markets Inc. and X.X. Xxxxxx
Securities Inc., as lead arrangers and book managers, ABN AMRO Bank N.V., as
syndication agent, JPMorgan Chase Bank, N.A., Bank of America, N.A. and Banco
Bilbao Vizcaya Argentaria, as documentation agents, and Citibank, N.A., as Agent
for said Lenders, and hereby gives you notice, irrevocably, pursuant to Section
2.02 of the Credit Agreement that the undersigned hereby requests a Borrowing
under the Credit Agreement, and in that connection sets forth below the
information relating to such Borrowing (the "Proposed Borrowing") as required by
Section 2.02(a) of the Credit Agreement:
(i) The Business Day of the Proposed Borrowing is _______________,
200_.
(ii) The Type of Advances comprising the Proposed Borrowing is [Base
Rate Advances] [Eurodollar Rate Advances].
(iii) The aggregate amount of the Proposed Borrowing is
$_______________.
[(iv) The initial Interest Period for each Eurodollar Rate Advance
made as part of the Proposed Borrowing is _____ month[s]. [If nine is
selected, specify alternate Interest Period of one, two, three or six
months.]]
The undersigned hereby certifies that the following statements are true on
the date hereof, and will be true on the date of the Proposed Borrowing:
(A) the representations and warranties contained in Section 4.01 of
the Credit Agreement (except the representations set forth in the last
sentence of subsection (e) thereof and in subsection (f)(i) thereof) are
correct, before and after giving effect to the Proposed Borrowing and to
the application of the proceeds therefrom, as though made on and as of
such date; and
(B) no event has occurred and is continuing, or would result from
such Proposed Borrowing or from the application of the proceeds therefrom,
that constitutes a Default.
Very truly yours,
[OMNICOM FINANCE INC.]
[OMNICOM CAPITAL INC.]
[OMNICOM FINANCE PLC]
By ___________________
Title:
2
EXHIBIT C - FORM OF
ASSIGNMENT AND ACCEPTANCE
Reference is made to the 364-Day Credit Agreement dated as of June 30,
2005 (as amended or modified from time to time, the "Credit Agreement") among
Omnicom Finance Inc., Omnicom Capital Inc. and Omnicom Finance plc (the
"Borrowers"), Omnicom Group Inc. (the "Guarantor"), the Lenders (as defined in
the Credit Agreement), Citigroup Global Markets Inc. and X.X. Xxxxxx Securities
Inc., as lead arrangers and book managers, ABN AMRO Bank N.V., as syndication
agent, JPMorgan Chase Bank, N.A., Bank of America, N.A. and Banco Bilbao Vizcaya
Argentaria, as documentation agents, and Citibank, N.A., as agent for the
Lenders (the "Agent"). Terms defined in the Credit Agreement are used herein
with the same meaning.
The "Assignor" and the "Assignee" referred to on Schedule I hereto agree
as follows:
1. The Assignor hereby sells and assigns to the Assignee, and the Assignee
hereby purchases and assumes from the Assignor, an interest in and to the
Assignor's rights and obligations under the Credit Agreement as of the date
hereof equal to the percentage interest specified on Schedule 1 hereto of all
outstanding rights and obligations under the Credit Agreement. After giving
effect to such sale and assignment, the Assignee's Commitment and the amount of
the Advances owing to the Assignee will be as set forth on Schedule 1 hereto.
2. The Assignor (i) represents and warrants that it is the legal and
beneficial owner of the interest being assigned by it hereunder and that such
interest is free and clear of any adverse claim created by the Assignor; (ii)
makes no representation or warranty and assumes no responsibility with respect
to any statements, warranties or representations made in or in connection with
the Credit Agreement or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Agreement or any other
instrument or document furnished pursuant thereto; (iii) makes no representation
or warranty and assumes no responsibility with respect to the financial
condition of any Loan Party or the performance or observance by any Loan Party
of any of its obligations under the Credit Agreement or any other instrument or
document furnished pursuant thereto; and (iv) attaches the Note[, if any] held
by the Assignor [and requests that the Agent exchange such Note for a new Note
payable to the order of [the Assignee in an amount equal to the Commitment
assumed by the Assignee pursuant hereto or new Notes payable to the order of the
Assignee in an amount equal to the Commitment assumed by the Assignee pursuant
hereto and] the Assignor in an amount equal to the Commitment retained by the
Assignor under the Credit Agreement, [respectively,] as specified on Schedule 1
hereto.
3. The Assignee (i) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements referred to in
Section 4.01 thereof and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Acceptance; (ii) agrees that it will, independently and without
reliance upon the Agent, the Assignor 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 the Credit
Agreement; (iii) confirms that it is an Eligible Assignee; (iv) appoints and
authorizes the Agent to take such action as agent on its behalf and to exercise
such powers and discretion under the Credit Agreement as are delegated to the
Agent by the terms thereof, together with such powers and discretion as are
reasonably incidental thereto; (v) agrees that it will perform in accordance
with their terms all of the obligations that by the terms of the Credit
Agreement are required to be performed by it as a Lender; and (vi) attaches any
U.S. Internal Revenue Service or U.K. Inland Revenue forms required under
Section 2.13 of the Credit Agreement.
4. Following the execution of this Assignment and Acceptance, it will be
delivered to the Agent for acceptance and recording by the Agent. The effective
date for this Assignment and Acceptance (the "Effective Date") shall be the date
of acceptance hereof by the Agent, unless otherwise specified on Schedule 1
hereto.
5. Upon such acceptance and recording by the Agent, as of the Effective
Date, (i) the Assignee shall be a party to the Credit Agreement and, to the
extent provided in this Assignment and Acceptance,
have the rights and obligations of a Lender thereunder and (ii) the Assignor
shall, to the extent provided in this Assignment and Acceptance, relinquish its
rights and be released from its obligations under the Credit Agreement.
6. Upon such acceptance and recording by the Agent, from and after the
Effective Date, the Agent shall make all payments under the Credit Agreement and
the Notes in respect of the interest assigned hereby (including, without
limitation, all payments of principal, interest and facility fees with respect
thereto) to the Assignee. The Assignor and Assignee shall make all appropriate
adjustments in payments under the Credit Agreement and the Notes for periods
prior to the Effective Date directly between themselves.
7. This Assignment and Acceptance shall be governed by, and construed in
accordance with, the laws of the State of New York.
8. This Assignment and Acceptance may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Delivery of an executed
counterpart of Schedule 1 to this Assignment and Acceptance by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment
and Acceptance.
IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1
to this Assignment and Acceptance to be executed by their officers thereunto
duly authorized as of the date specified thereon.
2
Schedule 1
to
Assignment and Acceptance
Percentage interest assigned: _____%
Assignee's Commitment: $_____
Aggregate outstanding principal amount of Advances assigned: $_____
Principal amount of Note payable to Assignee: $_____
Principal amount of Note payable to Assignor: $_____
Effective Date*: _______________, 200_
[NAME OF ASSIGNOR], as Assignor
By __________________________
Title:
Dated: _______________, 200_
[NAME OF ASSIGNEE], as Assignee
By __________________________
Title:
Dated: _______________, 200_
Domestic Lending Office:
[Address]
Eurodollar Lending Office:
[Address]
----------
* This date should be no earlier than five Business Days after the delivery
of this Assignment and Acceptance to the Agent.
3
Accepted [and Approved]** this
__________ day of _______________, 200_
CITIBANK, N.A., as Agent
By ___________________________________
Title:
[Approved this __________ day
of _______________, 200_
OMNICOM GROUP INC.
By ___________________________________]*
Title:
----------
** Required if the Assignee is an Eligible Assignee solely by reason of
clause (iii) of the definition of "Eligible Assignee".
* Required if the Assignee is an Eligible Assignee solely by reason of
clause (iii) of the definition of "Eligible Assignee".
4
EXHIBIT D-1 - FORM OF
OPINION OF NEW YORK COUNSEL
FOR THE BORROWERS
________, 2005
To each of the Lenders parties
to the 364-Day Credit Agreement referred to below
Omnicom Finance Inc., Omnicom Capital Inc. and Omnicom Finance plc
Ladies and Gentlemen:
This opinion is furnished to you pursuant to Section 3.01(h)(iv) of the
364-Day Credit Agreement, dated as of June 30, 2005 (the "Credit Agreement"), by
and among Omnicom Finance Inc. ("OFI"), Omnicom Capital Inc. ("OCI"), and
Omnicom Finance plc ("OFP", and, collectively with OFI and OCI, the
"Borrowers"), Omnicom Group Inc. (the "Guarantor"), the banks, financial
institutions and other institutional lenders and initial issuing banks listed on
the signature pages thereof, Citigroup Global Markets Inc. and X.X. Xxxxxx
Securities Inc., as joint lead arrangers and book managers, ABN AMRO Bank N.V.,
as syndication agent, JPMorgan Chase Bank, N.A., Bank of America, N.A. and Banco
Bilbao Vizcaya Argentaria, as documentation agents, and Citibank, N.A., as
administrative agent (the "Agent") for the Lenders. Capitalized terms used
herein without definition are used as defined in the Credit Agreement.
We have acted as New York counsel for the Loan Parties in connection with
the preparation, execution and delivery of the Credit Agreement.
In connection with this opinion, we have examined originals or copies
(including conformed copies) of the following documents:
(1) The Credit Agreement.
(2) The documents furnished by the Loan Parties pursuant to Article
III of the Credit Agreement (together with the Credit Agreement, the
"Credit Documents").
(3) The Certificate of Incorporation and all amendments thereto (the
"Charter") of each of OFI, OCI and the Guarantor (collectively, the "US
Loan Parties"), as certified as of a recent date by a public official of
the state of its incorporation.
(4) The by-laws and all amendments thereto (the "By-laws") of each
US Loan Party, as certified to us by each US Loan Party.
(5) A certificate of the Secretary of State of Delaware, dated
__________, 2005, attesting to the continued corporate existence and good
standing of OFI in that State as of the date thereof.
(6) A certificate of the Secretary of State of Connecticut, dated
__________, 2005, attesting to the continued corporate existence and good
standing of OCI in that State as of the date thereof.
(7) A certificate of the Secretary of State of New York, dated
__________, 2005, attesting to the continued corporate existence and good
standing of the Guarantor in that State as of the date thereof.
In addition, we have examined originals or copies, certified or otherwise
identified to our satisfaction, of such records, instruments and other
documents, and have made such other investigations, as we have deemed relevant
and necessary as a basis for the opinions hereinafter set forth.
For the purposes hereof, we have assumed, with your permission and without
independent verification of any kind: (a) that the signatures of persons signing
all documents in connection with which this opinion is rendered are genuine; (b)
the legal capacity of all natural persons; (c) that all documents submitted to
us as originals or duplicate originals are authentic; and (d) that all documents
submitted to us as copies, whether certified or not, conform to authentic
original documents. As to questions of fact relevant to this opinion, we have
assumed, without independent investigation or verification of any kind, the
accuracy of the representations and warranties of the Loan Parties in the Credit
Agreement and have relied upon certificates and oral or written statements and
other information of public officials, and officers and representatives of the
Loan Parties. For purposes of the opinion set forth in the paragraph numbered 1
below, we have relied solely upon copies of good standing certificates as
certified by public officials as of the dates and in the jurisdictions listed on
Annex I hereto.
In rendering the opinions expressed below, we have assumed, with your
permission and without any independent investigation or verification of any
kind, that: (i) OFP has been duly organized and is validly existing and in good
standing under the laws of its jurisdiction of incorporation and is duly
qualified in each other jurisdiction in which the conduct of its business or the
ownership of its property makes such qualification necessary; (ii) OFP has full
power and authority to execute, deliver and perform the Credit Documents to
which it is a party; (iii) the execution, delivery and performance of the Credit
Documents by OFP have been duly authorized by all requisite corporate action on
the part of OFP; (iv) the Credit Documents have been duly executed and delivered
by OFP; and (v) the execution, delivery and performance of the Credit Documents
by OFP do not and will not violate the Charter, By-laws or other organizational
documents of OFP. We have further assumed, with your permission and without any
independent investigation or verification of any kind, that the Credit Agreement
constitutes the valid and legally binding obligation of each Person party
thereto (other than the US Loan Parties and OFP), enforceable against such
Person in accordance with its terms. Furthermore, in giving the opinions set
forth in paragraphs numbered 4, 5 and 6 below, we express no opinion as to state
securities or blue sky laws.
Based upon the foregoing, and subject to the limitations set forth herein,
we are of the opinion that:
1. Each US Loan Party (i) is a validly existing corporation in good
standing under the laws of the jurisdiction of its incorporation listed on Annex
I hereto and (ii) has the corporate power and authority to own its property and
assets and to transact the business in which it is engaged.
2. Each US Loan Party has the corporate power to execute, deliver and
perform the terms and provisions of the Credit Agreement and the Notes to be
delivered by it and has taken all necessary corporate action to authorize the
execution, delivery and performance of the Credit Agreement and the Notes to be
delivered by it. Each US Loan Party has duly executed and delivered the Credit
Agreement and the Notes delivered by it on the date hereof.
3. The Credit Agreement constitutes the legal, valid and binding
obligation of each Loan Party enforceable against such Loan Party in accordance
with its terms. Each Note to be delivered by a Loan Party, assuming due
execution and delivery thereof by such Loan Party, will constitute the legal,
valid and binding obligation of such Loan Party enforceable against such Loan
Party in accordance with its terms.
2
4. Neither the execution and delivery, nor the performance, by any US Loan
Party of the Credit Agreement or the Notes to be delivered by it, nor compliance
by such US Loan Party with the terms and provisions thereof, (i) will contravene
any provision of any law, statute, rule or regulation (including, without
limitation, Regulation X of the Board of Governors of the Federal Reserve
System) of the United States of America or the State of New York applicable to
such US Loan Party or (ii) will violate any provision of the Charter or By-Laws
of such US Loan Party.
5. Neither the execution and delivery, nor the performance, by OFP of the
Credit Agreement and the Notes to be delivered by it, nor compliance by it with
the terms and provisions thereof, will contravene any provision of any law,
statute, rule or regulation (including, without limitation, Regulation X of the
Board of Governors of the Federal Reserve System) of the United States of
America or the State of New York applicable to OFP.
6. No order, consent, approval, license, authorization or validation of,
or filing, recording or registration with (except as have been obtained or made
on or prior to the date hereof), or exemption by, any governmental or public
body or authority of the United States of America, or the State of New York,
applicable to any Loan Party is required to authorize, or is required in
connection with, (i) the execution, delivery and performance by any Loan Party
of the Credit Agreement and the Notes to be delivered by it or (ii) the
enforceability of the Credit Agreement and the Notes to be delivered by it in
accordance with their terms against such Loan Party.
7. The choice of New York law as the governing law of the Credit Agreement
and the Notes is, under the laws of the State of New York, a valid choice of
law.
8. The consent by each Loan Party in Section 9.11 of the Credit Agreement
to the jurisdiction of courts sitting in the State of New York is a valid
consent to the jurisdiction of such courts.
Our opinions are subject to the qualifications that:
A. The enforceability of the Credit Agreement and the Notes is subject to
and may be limited by bankruptcy, insolvency, reorganization, fraudulent
conveyance, moratorium, or other similar laws relating to or affecting the
rights of creditors generally (including such as may deny giving effect to
waivers of debtors' or guarantors' rights), and the application of general
principles of equity (regardless of whether considered in a proceeding in equity
or at law), including, without limitation, (i) the possible unavailability of
specific performance, injunctive relief or any other equitable remedy and (ii)
concepts of materiality, reasonableness, good faith and fair dealing.
Accordingly, no opinion is given herein as to (i) the availability of the right
to accelerate any obligation and certain remedies provided for in the Credit
Agreement in the event of a nonmaterial default, or (ii) the enforceability of
any provision of the Credit Agreement relating to cumulation of remedies or
waiving the remedy of specific performance, or the waiver of debtors' rights.
B. We express no opinion as to the enforceability of any contractual
provision in the Credit Agreement as to waiver of any procedural right,
including, without limitation, (i) the first sentence of Section 9.11(a) of the
Credit Agreement insofar as such sentence relates to the subject matter
jurisdiction of a federal court of the United States of America sitting in New
York City to adjudicate any controversy related to any of the Credit Documents,
and (ii) the waiver of inconvenient forum set forth in Section 9.11(b) of the
Credit Agreement with respect to proceedings in a federal court of the United
States of America sitting in New York City.
C. We express no opinion as to the enforceability of any contractual
provision in the Credit Documents relating to indemnification, including,
without limitation, with respect to the enforceability of Section 9.04 of the
Credit Agreement, to the extent that these may be limited (i) in the case of
litigation against any Loan Party which is decided adversely to the person
claiming indemnification or in a case involving a claim of indemnification for
attorneys' fees, (ii) by laws rendering unenforceable indemnification contrary
to federal or state securities laws and the public policy underlying such laws,
or (iii) by laws limiting the enforceability of provisions exculpating or
exempting a party, or requiring
3
indemnification of a party, for liability for its own action or inaction, to the
extent the action or inaction involves gross negligence, recklessness, willful
misconduct or unlawful conduct.
D. Furthermore, no opinion is given herein as to:
(i) Section 7.02 of the Credit Agreement, to the extent that it
relates to action contemplated by Section 7.02(b) of the Credit Agreement
taken without the Guarantor's consent, which may not be enforceable to the
extent that the Guaranteed Obligations are materially altered; or
(ii) Section 7.02(h) of the Credit Agreement, to the extent it
relates to any waiver of an applicable statute of limitations; or
(iii) the enforceability of the right of setoff provided for in
Section 9.05 of the Credit Agreement (A) in respect of an interest under
the Credit Agreement purchased by a Lender pursuant to Section 2.14 or
9.07 of the Credit Agreement, to the extent the relevant purchase does not
give rise to a direct obligation of any Borrower to such Lender, or (B)
insofar as that right relates to setoff of unmatured obligations under the
Credit Agreement or of obligations owed to any Loan Party by an Affiliate
of a Lender or by an Affiliate of the Agent.
We are members of the Bar of the State of New York and express no opinion
as to the laws of any jurisdiction other than those of the laws of the State of
New York, the General Corporation Law of the State of Delaware and the federal
laws of the United States of America. Our opinions set forth in paragraph
numbers 1, 2 and 4(ii) above, as they apply to OCI, are based on our review of
the Connecticut Business Corporation Act as reported by 33 Conn. Gen. Stat. Xxx.
ss. 33-600 et seq. (West 1997, 2004 supp.) to be in effect on the date of this
opinion letter.
This opinion is rendered solely to you by us as New York counsel for the
Loan Parties in connection with the transactions contemplated by the Credit
Agreement and the Notes. Each Lender (and its successors and permitted assigns)
may rely upon this opinion in connection with those transactions. This opinion
may not be relied upon in any other manner or for any other purpose, or
furnished or relied upon by any other person, without our prior written consent.
The information set forth herein is as of the date of this letter, and we
disclaim any undertaking to advise you of changes which thereafter may be
brought to our attention.
Very truly yours,
4
ANNEX I
Type and Date of
Name and Jurisdiction Certificate in Jurisdiction
of Incorporation of Incorporation
---------------------------------- ----------------------------------
Omnicom Finance Inc. (Delaware) Good Standing - __________, 2005
Omnicom Capital Inc. (Connecticut) Legal Existence - __________, 2005
Omnicom Group Inc. (New York) Subsisting - __________, 2005
EXHIBIT D-2 - FORM OF
OPINION OF ENGLISH
COUNSEL FOR OFP
To each of the Lenders parties to the Credit Agreement
referred to below and to Citibank, N.A. as Agent
Our Ref
[DATE]
Dear Sirs
Omnicom Finance plc
1 Introduction
We have acted as special English lawyers for Omnicom Finance plc, a
company incorporated and existing under the laws of England and Wales
("OFP"), in connection with its authorisation of the execution and
delivery of the following documents (together, the "Credit Documents"):
1.1 the 364-Day Credit Agreement dated as of June 30, 2005 made among
Omnicom Finance Inc., Omnicom Capital Inc. and OFP (collectively, the
"Borrowers"), Omnicom Group Inc. as Guarantor, the Initial Lenders named
therein, Citigroup Global Markets Inc. and X.X. Xxxxxx Securities Inc.,
as lead arrangers and book managers, ABN AMRO Bank N.V. as syndication
agent, X.X. Xxxxxx Xxxxx Bank, N.A., Bank of America, N.A. and Banco
Bilbao Vizcaya Argentaria, as documentation agents, and Citibank, N.A.
as Administrative Agent for the Lenders (the "Credit Agreement"); and
1.2 the Notes of OFP, if any, to be delivered pursuant to Section 2.15(a) of
the Credit Agreement.
We have been asked by OFP to give you this opinion for the purposes of
Section 3.01(h)(iv) of the Credit Agreement and we have taken
instructions in this regard solely from OFP. You should be aware that
our sole involvement with this transaction has been in giving this
opinion and we have not been involved in the negotiation of the Credit
Documents or in any other aspect of the transaction.
Terms defined in the Credit Agreement have the same meanings when used
in this opinion.
2 English law opinion
This opinion is limited to English law as applied by the English courts
as at the date of this letter and is given on the basis that it will be
governed by and construed in accordance with English law. We have made
no investigation of the laws of any jurisdiction other than those of
England and we do not express or imply any opinion as to the laws of any
jurisdiction other than those of England. The opinions given in this
letter are strictly limited to the matters stated in paragraph 6
(Opinion) and do not extend to any other matters or any matters of fact.
3 Documents examined
For the purpose of this opinion we have examined the following
documents:
3.1 a copy of the Credit Agreement (including the Exhibits thereto) bearing
a signature on behalf of OFP which is stated therein to be that of one
of the persons identified in the certificate referred to at paragraph
3.2 below as a Director of OFP;
3.2 a copy of the certificate given by OFP pursuant to Section 3.01 (h) (ii)
and (iii) of the Credit Agreement and having attached thereto, inter
alia:
3.2.1 copies of the certificate of incorporation and Memorandum and Articles
of Association of OFP, each certified as true, complete and up-to-date
as at the date hereof by a Director of OFP; and
3.2.2 certified extracts from the minutes of a meeting of the Board of
Directors of OFP held on [ May 2005], the resolutions set out in such
extracts having been certified as true, complete and still in force as
at the date hereof by a Director of OFP; and
3.3 a further certificate addressed to us from a director of OFP, a copy of
which is attached hereto (the "Certificate").
4 Enquiries made
For the purpose of giving this opinion, we have:
4.1 made an oral enquiry by telephone of the Central Registry of Winding Up
Petitions in respect of OFP on __________ 2005; and
4.2 arranged for a review of the copy documents relating to OFP available
from the Companies House website on __________ 2005.
Except for the documents listed in paragraph 3 above and the matters
referred to in this paragraph 4, we have not examined any contracts or
other documents entered into by or affecting any party to the Credit
Documents nor any corporate records of OFP and we have not made any
other enquiries or searches concerning OFP.
2
5 Assumptions
In examining the documents referred to in paragraph 3 above, in making
the enquiries referred to in paragraph 4 above and in giving this
opinion we have assumed without further enquiry:
5.1 the genuineness of all signatures and seals on documents, the conformity
to the originals of all documents supplied to us as copies and the
authenticity of the originals of such documents;
5.2 any Notes which are executed by OFP will be in the form set out in
Exhibit A to the Credit Agreement;
5.3 that the information disclosed by our oral enquiry at the Central
Registry of Winding-up Petitions was then accurate and that such enquiry
did not fail to disclose any matters which it should have disclosed and
which are relevant for the purposes of this opinion and since the time
of such enquiry there has been no alteration in the status or condition
of OFP as represented by the Clerk at the Registry;
5.4 that the file of records available for public inspection from the
website of Companies House concerning OFP was complete, accurate and
up-to-date at the time of the review referred to in paragraph 4.2 above
and that there has been no alteration in the status or condition of OFP
as represented thereby;
5.5 that OFP has not passed a voluntary winding-up resolution and that no
petition has been presented to or order made by a court for the
winding-up or dissolution of OFP or the appointment of an administrator
of OFP and that no receiver, administrative receiver, or administrator
has been appointed in respect of OFP or any of its assets which in any
such case has not been revealed by the enquiries referred to in
paragraph 4 above;
5.6 that OFP (i) is not unable to pay its debts within the meaning of
section 123 of the Insolvency Xxx 0000 at the time of its entry into the
Credit Documents, and/or (ii) will not as a consequence thereof be
unable to pay its debts within the meaning of that section;
5.7 (in relation to paragraph 6.7 only, if relevant) that each of the
parties to the Credit Documents (other than OFP) is in existence and has
full corporate capacity, right, power and authority to enter into and to
exercise its rights and perform its obligations under the Credit
Documents;
5.8 (in relation to paragraph 6.7 only, if relevant) that under the laws of
the State of New York, USA, each of the Credit Documents constitutes
valid, legally binding and enforceable obligations of the parties
thereto, including OFP;
5.9 that none of the parties to the Credit Documents (i) is subject to a
court injunction or order which affects its performance of its
obligations under the Credit Documents, or (ii) has entered into any of
the Credit Documents under duress, undue influence or as a mistake in
connection with money laundering or any other unlawful activity;
5.10 each of the parties to the Credit Documents (other than OFP) is dealing
with OFP in good faith and has no knowledge of any irregularity in the
corporate procedure followed by
3
OFP or its directors (including, without limitation, any exceeding of
the powers of, or any limitation imposed on, OFP or its directors or any
breach by such directors of their fiduciary duties);
5.11 each of the Credit Documents has been entered into for the bona fide
commercial reasons of OFP and on arm's length terms by each of the
parties thereto; and the directors of OFP have acted in good faith in
the interests of OFP in respect of the Credit Documents.
5.12 that any copies certified and all documents dated earlier than the date
of this letter on which we have expressed reliance remain accurate,
complete and in full force and effect at the date of this letter;
5.13 that there are no provisions of the laws of any applicable jurisdiction
outside England which would be contravened by the execution and delivery
of the Credit Documents and that, insofar as any obligation under the
Credit Documents is to be performed in any jurisdiction outside England,
its performance will not be illegal or contrary to public policy by
virtue of the laws of that jurisdiction;
5.14 the accuracy of the statements contained in the Certificate;
5.15 (as regards our opinions in paragraphs 6.5 and 6.6 below) that all
Advances made to OFP pursuant to the Credit Agreement will be made by
persons who are (i) authorised persons (within the meaning of the
Financial Services and Markets Act 2000) who have permission to accept
deposits or to effect or carry out contracts of insurance, or (ii)
acting in the course of carrying on a business consisting wholly or to a
significant extent of lending money, or (iii) otherwise described in
paragraph 6(1) of the Financial Services and Markets Xxx 0000 (Regulated
Activities) Order 2001; and
5.16 as regards execution of any Notes, our opinion in paragraph 6.4 below
assumes that there will not have been, after the date of the Certificate
and prior to the time of such execution, any revocation of the
resolutions set out in the Minutes referred to in paragraph 3.2.2 above
or any amendment to such resolutions or to the Memorandum or Articles of
Association of OFP which in either case is material to that opinion.
6 Opinion
Based upon and subject to the foregoing, and subject to the
qualifications and reservations mentioned below and to any matters not
disclosed to us, we are of the following opinion.
6.1 OFP (i) is duly incorporated and validly existing as a public limited
company under the laws of England and Wales; (ii) has the power and
authority to own its property and assets and to transact the business in
which it is engaged (as such property, assets and business are described
in the Certificate); and (iii) is not required to be qualified as a
"foreign corporation" in order to do business within England and Wales.
6.2 The enquiry and review referred to in paragraph 4 above did not reveal
any appointment of, or resolution or petition to appoint, a liquidator,
administrator or administrative receiver of OFP, or that OFP is
delinquent in filing its statutory annual directors' report and
accounts, or any notification by the Registrar of Companies of intention
to strike OFP's name off the Register of Companies.
4
6.3 OFP has the corporate power to execute, deliver and perform the terms
and provisions of each of the Credit Documents to which it is expressed
to be a party and to borrow under the Credit Agreement and has taken all
necessary corporate action to authorise the execution, delivery and
performance by it of each of such Credit Documents and borrowing by it
under the Credit Agreement.
6.4 OFP has validly executed the Credit Agreement. When the Notes are signed
by one of the Directors of OFP, such Notes will have been validly
executed by OFP.
6.5 The execution, delivery and performance by OFP of the Credit Documents
to which it is expressed to be a party, the compliance by it with the
terms and provisions thereof and the borrowing by it under the Credit
Agreement will not (i) contravene any provision of any law, statute,
rule or regulation of England and Wales or (ii) violate any provision of
the memorandum and articles of association of OFP as currently in force.
6.6 Under English law, no order, consent, approval, licence, authorisation
or validation of, or filing, recording or registration with, or
exemption by, any governmental or public body or authority of or in
England and Wales (except such as have been obtained or made prior to
the date hereof) is required to authorise, or is required in connection
with, (i) the execution, delivery and performance by OFP of any Credit
Document to which OFP is expressed to be a party, (ii) the borrowing by
OFP under the Credit Agreement or (iii) the enforceability of any such
Credit Document against OFP.
6.7 The English courts would recognize and give effect to the choice of the
laws of the State of New York, USA, as the governing law of the Credit
Documents.
6.8 The submission to the jurisdiction of the courts of the State of New
York, USA, by OFP in the Credit Documents is within the corporate powers
of OFP and does not contravene any law of England.
6.9 A judgment rendered by a court in the United States has no direct
operation in England but may be enforceable by a claim or counterclaim
or be recognised by the English courts as a defence to a claim or as
conclusive of an issue in an action. For a judgment rendered by a court
in the United States to be enforced by the English courts it would be
necessary to prove to the satisfaction of the English court that:-
(i) the United States court had jurisdiction; and
(ii) the judgment is final and conclusive on the merits; and
(iii) the judgment is for a debt or a fixed sum (not being a sum
payable in respect of taxes or other charges of a like nature or
in respect of a fine or other penalty).
For a defendant to such a claim to have a good defence to a claim or
counterclaim to enforce such a judgment, it would be necessary for him
to prove that:-
(1) the judgment was obtained by fraud; or
5
(2) the judgment is contrary to English public policy; or
(3) the judgment involves the enforcement of foreign public, penal
or revenue laws; or
(4) enforcement would be contrary to section 5 of the Protection of
Trading Xxxxxxxxx Xxx 0000 (which prohibits the enforcement of
(a) judgments for multiple damages; (b) judgments based on a
provision or rule of law specified by the Secretary of State as
being concerned with the prohibition or regulation of
anti-competitive arrangements or with the promotion of
competition; and (c) a judgment on a claim for a contribution in
respect of damages awarded under (a) or (b)); or
(5) the judgment was obtained in a manner opposed to the rules of
natural justice; or
(6) the judgment involves a matter previously determined by an
English court; or
(7) Recognition of the judgment is denied under section 32 of the
Civil Judgment and Jurisdiction Xxx 0000. Under section 32 a
judgment in a United States action shall not be recognised by
the English Courts if:
(a) the United States action is brought in breach of
a valid agreement under which the dispute in
question was to be settled otherwise than by
proceedings in the United States; and
(b) the United States action was not brought by or
with the agreement of, the person against whom
the judgment was given; and
(c) that person did not counterclaim in the United
States action or otherwise submit to the
jurisdiction of the United States court;
Except that section 32 does not apply where the agreement under
which the dispute in question was to be settled is illegal,
void, unenforceable or incapable of being performed for reasons
not attributable to the fault of the party bringing the action.
The question of whether enforcement of a judgment is contrary to English
public policy (see (2) above) depends on the circumstances of the
transaction as a whole and the subsequent conduct of the litigation in
the United States and English proceedings. Solely on the basis of our
examination of the documents referred to in paragraphs 3.1 to 3.3
(inclusive) above, we are not aware of any reason why
6
enforcement of a judgment to pay a sum of money due under the Credit
Agreement would be contrary to English public policy as at the date of
this letter.
7 Qualifications and reservations
Our opinion is subject to the following qualifications and reservations.
7.1 The opinions in this letter are subject to all laws relating to
winding-up, administration, bankruptcy, insolvency, liquidation,
reorganisation, moratorium or similar laws affecting creditors' rights
generally.
7.2 We express no opinion on the effectiveness or enforceability of any of
the provisions of the Credit Documents, since the Credit Documents are
governed by New York law.
7.3 The obligations of OFP under the Credit Documents will be subject to any
laws from time to time in effect relating to insolvency, administration,
bankruptcy, liquidation, reorganisation, moratorium or similar laws
affecting creditors' rights generally and we express no opinion on such
laws.
7.4 The enquiry at the Central Registry of Winding-up Petitions referred to
in paragraph 4.1 above relates only to a compulsory winding-up and is
not conclusively capable of revealing whether or not a winding-up
petition in respect of a compulsory winding-up has been presented since
details of the petition may not have been entered on the records of the
Central Registry of Winding-up Petitions immediately or, in the case of
a petition presented to a County Court, may not have been notified to
the Central Registry and entered on such records at all, and the
response to an enquiry only relates to the period of six months prior to
the date when the enquiry was made.
7.5 The search of the Companies House website referred to in paragraph 4.2
above is not conclusively capable of revealing whether or not certain
events have occurred, including the commencement of winding up or the
making of an administration order or the appointment of a receiver,
administrative receiver, administrator or liquidator, as notice of these
matters may not be filed with Companies House immediately and, when
filed, may not be available from such website immediately.
7.6 The choice of a particular law to govern an agreement or document would
not be recognised or upheld by the English Courts if the choice of law
was not bona fide and legal or if there were reasons for avoiding the
choice of law on the grounds of public policy. The choice of a
particular law would not be upheld, for example, if it was made with the
intention of evading the law of the jurisdiction with which the contract
had its most substantial connection and which, in the absence of the
chosen law, would have invalidated the contract or been inconsistent
with it. We have not made any investigation into the bona fides of the
parties to the Credit Documents; however we are not aware of any reason
for an English Court to find that the choice of New York law to govern
the Credit Documents is not bona fide or not legal, nor are we aware of
any English public policy that would be violated by the enforcement of
the Credit Documents in accordance with their respective terms.
7.7 We have not considered the particular circumstances of any party to the
Credit Documents (save OFP to the extent expressly stated herein) or the
effect of such
7
particular circumstances on the Credit Documents or the transactions
contemplated thereby.
7.8 English courts can, in their discretion, give judgments in a currency
other than sterling if they consider that it is the currency which most
fairly expresses the plaintiff's loss but the judgment may require to be
converted into sterling for enforcement purposes.
7.9 If OFP is required to deposit cash collateral into the L/C Cash Deposit
Account in accordance with Section 6.02 of the Credit Agreement, then it
may be necessary or advisable to arrange for a registration to be made
at Companies House to note the security interest in such funds.
7.10 Any undertaking or indemnity to assume liability for non-payment or
insufficiency of United Kingdom stamp duty on any instrument is void
under section 117 of the Stamp Xxx 0000.
7.11 An English court will not necessarily grant any remedy the availability
of which is subject to equitable considerations or which is otherwise in
the discretion of the court; in particular, orders for specific
performance and injunctions are, in general, discretionary remedies
under English law and neither remedy is ordinarily available where
damages are considered by the court to be an adequate alternative
remedy.
7.12 An English court has power to stay an action where it is shown that
there is some other forum, having competent jurisdiction, which is more
appropriate for the trial of the action, in other words in which the
case can be tried more suitably for the interests of all the parties and
the ends of justice, or where staying the action is not inconsistent
with the EU Council Regulation no 44/2001 on Jurisdiction and the
Enforcement of Judgments in Civil and Commercial Matters as applied by
virtue of the Civil Jurisdiction and Judgments Order 2001.
8 Reliance
This opinion may be relied on solely by the addressees and may not be
regarded as addressed to or capable of being relied on by any other
person (save the addressees' successors and assigns) without our prior
written consent. It is strictly limited to the matters stated herein and
does not extend to, and is not to be read as extending by implication
to, any other matter in connection with the Credit Documents.
Yours faithfully
Macfarlanes
8
EXECUTION COPY
U.S. $400,000,000
364-DAY CREDIT AGREEMENT
Dated as of June 30, 2005
Among
OMNICOM FINANCE INC.
OMNICOM CAPITAL INC.
and
OMNICOM FINANCE PLC
as Borrowers
OMNICOM GROUP INC.
as Guarantor
and
THE INITIAL LENDERS NAMED HEREIN
as Initial Lenders
and
CITIGROUP GLOBAL MARKETS INC.
and
X.X. XXXXXX SECURITIES INC.
as Lead Arrangers and Book Managers
ABN AMRO BANK N.V.
as Syndication Agent
JPMORGAN CHASE BANK, N.A.
BANK OF AMERICA, N.A.
and
BANCO BILBAO VIZCAYA ARGENTARIA
as Documentation Agents
and
CITIBANK, N.A.
as Administrative Agent
TABLE OF CONTENTS
ARTICLE I
SECTION 1.01. Certain Defined Terms 1
SECTION 1.02. Computation of Time Periods 10
SECTION 1.03. Accounting Terms 10
ARTICLE II
SECTION 2.01. The Advances 10
SECTION 2.02. Making the Advances 10
SECTION 2.03. Fees 11
SECTION 2.04. Termination or Reduction of the Commitments 11
SECTION 2.05. Repayment of Advances 11
SECTION 2.06. Interest on Advances 11
SECTION 2.07. Interest Rate Determination 12
SECTION 2.08. Optional Conversion of Advances 13
SECTION 2.09. Prepayments of Advances 13
SECTION 2.10. Increased Costs 13
SECTION 2.11. Illegality 14
SECTION 2.12. Payments and Computations 14
SECTION 2.13. Taxes 15
SECTION 2.14. Sharing of Payments, Etc. 17
SECTION 2.15. Evidence of Debt 18
SECTION 2.16. Use of Proceeds 18
ARTICLE III
SECTION 3.01. Conditions Precedent to Effectiveness
of Section 2.01 18
i
SECTION 3.02. Conditions Precedent to Each Borrowing. 19
SECTION 3.03. Determinations Under Section 3.01 20
ARTICLE IV
SECTION 4.01. Representations and Warranties of the Guarantor 20
ARTICLE V
SECTION 5.01. Affirmative Covenants 21
SECTION 5.02. Negative Covenants 23
SECTION 5.03. Financial Covenants 25
ARTICLE VI
SECTION 6.01. Events of Default 25
ARTICLE VII
SECTION 7.01. Guaranty 27
SECTION 7.02. Guaranty Absolute 27
SECTION 7.03. Waivers and Acknowledgements 28
SECTION 7.04. Subrogation 29
SECTION 7.05. Subordination 29
SECTION 7.06. Continuing Guaranty; Assignments 30
ARTICLE VIII
SECTION 8.01. Authorization and Action 30
SECTION 8.02. Agent's Reliance, Etc. 30
SECTION 8.03. Citibank and Affiliates 31
SECTION 8.04. Lender Credit Decision 31
SECTION 8.05. Indemnification 31
SECTION 8.06. Successor Agent 31
ii
SECTION 8.07. Other Agents. 32
ARTICLE IX
SECTION 9.01. Amendments, Etc. 32
SECTION 9.02. Notices, Etc. 32
SECTION 9.03. No Waiver; Remedies 33
SECTION 9.04. Costs and Expenses 33
SECTION 9.05. Right of Set-off 34
SECTION 9.06. Binding Effect 34
SECTION 9.07. Assignments and Participations 34
SECTION 9.08. Confidentiality 36
SECTION 9.09. Governing Law 36
SECTION 9.10. Execution in Counterparts 36
SECTION 9.11. Jurisdiction, Etc. 36
SECTION 9.12. Judgment 37
SECTION 9.13. Patriot Act 37
SECTION 9.14. Waiver of Jury Trial 38
iii
Schedules
Schedule I - List of Applicable Lending Offices
Schedule 3.01(b) - Disclosed Litigation
Schedule 5.02(a) - Existing Liens
Schedule 5.02(d) - Existing Debt
Exhibits
Exhibit A - Form of Note
Exhibit B - Form of Notice of Borrowing
Exhibit C - Form of Assignment and Acceptance
Exhibit D-1 - Form of Opinion of New York Counsel for the Loan Parties
Exhibit D-2 - Form of Opinion of English Counsel for OFP
iv
