EXHIBIT 10.16
FIRST AMENDMENT
TO CREDIT AGREEMENT
-------------------
FIRST AMENDMENT TO CREDIT AGREEMENT (this "Amendment"), dated as of
April 23, 1998, among CORPORATE EXPRESS, INC., a Colorado corporation (the
"Parent"), CEX HOLDINGS, INC., a Colorado corporation (the "Borrower"), the
Banks party to the Credit Agreement referred to below on the date hereof and
immediately before giving effect to this Amendment (the "Existing Banks"), THE
FIRST NATIONAL BANK OF CHICAGO, as Syndication Agent (in such capacity, the
"Syndication Agent"), THE BANK OF NEW YORK and DLJ CAPITAL FUNDING, INC., as Co-
Documentation Agents (in such capacities, each a "Co-Documentation Agent" and,
collectively, the "Co-Documentation Agents") and BANKERS TRUST COMPANY, as
Administrative Agent (in such capacity, the "Administrative Agent", and together
with the Syndication Agent and the Co-Documentation Agents, the "Agents"), and
each of the lenders listed on Schedule A hereto (the "New Banks"). All
capitalized terms used herein and not otherwise defined shall have the
respective meanings provided such terms in the Credit Agreement referred to
below.
W I T N E S S E T H :
- - - - - - - - - -
WHEREAS, the Borrower, the Existing Banks and the Agents are parties
to a Credit Agreement, dated as of April 17, 1998 (the "Credit Agreement"); and
WHEREAS, the parties hereto wish to amend the Credit Agreement as
herein provided;
NOW, THEREFORE, it is agreed:
1. Each of the Existing Banks severally and not jointly hereby sells
and assigns to each of the New Banks without recourse and without representation
or warranty (other than as expressly provided herein), and each New Bank hereby
purchases and assumes from each of the Existing Banks, that interest in and to
each of such Existing Bank's rights and obligations in respect of those Tranches
set forth on Schedule B hereto under the Credit Agreement as of the date hereof
which in the aggregate represents such New Bank's pro rata share (for each such
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New Bank, its "Pro Rata Share") in such Tranches as set forth on such Schedule B
(calculated after giving effect to this Amendment), and such Pro Rata Share
represents all of the outstanding rights and obligations under the Credit
Agreement in respect of the Tranches that are being sold and assigned to each
New Bank pursuant to this Amendment, including, without limitation, in the case
of any assignment of the outstanding Term Loans and/or portion of the Total
Revolving Loan Commitment, all rights and obligations with respect to such New
Bank's Pro Rata Share of such outstanding Term Loans and/or portion of the Total
Revolving Loan Commitment, respectively. After giving effect to this Amendment,
each Bank's outstanding Term Loans and Revolving Loan Commitment will be as set
forth on Schedule C hereto.
2. In accordance with the requirements of Section 13.04(b) of the
Credit Agreement, on the First Amendment Effective Date (as defined below), (i)
the Credit Agreement shall be amended by deleting Schedule I thereto in its
entirety and by inserting in lieu thereof a new Schedule I in the form of
Schedule C hereto and (ii) the Borrower agrees that it will issue an appropriate
Term Note and Revolving Note to each Bank in conformity with the requirements of
Section 1.05 of the Credit Agreement.
3. On and after the First Amendment Effective Date, Schedule II to
the Credit Agreement shall be amended by deleting such Schedule in its entirety
and inserting in lieu thereof a new Schedule II in the form of Schedule D
hereto.
4. Each Existing Bank (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; (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 other Credit Documents or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Credit
Agreement or the other Credit Documents or any other instrument or document
furnished pursuant thereto; and (iii) makes no representation or warranty and
assumes no responsibility with respect to the financial condition of the Parent,
the Borrower or any of their respective Subsidiaries or the performance or
observance by the Parent, the Borrower or any of their respective Subsidiaries
of any of their obligations under the Credit Agreement or the other Credit
Documents to which they are a party or any other instrument or document
furnished pursuant thereto.
5. Each New Bank (i) confirms that it has received a copy of the
Credit Agreement and the other Credit Documents, together with copies of the
financial statements referred to therein and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Amendment; (ii) agrees that it will, independently
and without reliance upon any Agent or any other Bank 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 Transferee under Section
13.04(b) of the Credit Agreement; (iv) appoints and authorizes the Agents, the
Securities Intermediary and the Collateral Agent to take such action as agent on
its behalf and to exercise such powers under the Credit Agreement and the other
Credit Documents as are delegated to the Agents, the Securities Intermediary and
the Collateral Agent by the terms thereof, together with such powers as are
reasonably incidental thereto; (v) agrees that it will perform in accordance
with their terms all of the obligations which by the terms of the Credit
Agreement are required to be performed by it as a Bank; and (vi) to the extent
legally entitled to do so, agrees to promptly submit the forms described in
Section 13.04(b) of the Credit Agreement.
6. Each of the Existing Banks, the New Banks and the Agents hereby
agree that all amounts accrued with respect to the Term Loans, Revolving Loans
and the Total Revolving Loan Commitment prior to the delivery by such New Bank
of the amount referred to in clause (ii) of Section 13 of this Amendment shall
be for the account of the Existing Banks,
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respectively, and that all such amounts accrued on and after the delivery of
such amounts referred to in clause (ii) of such Section 13 shall be for the
account of such New Bank based upon its relevant Pro Rata Share.
7. In accordance with Section 13.04(b) of the Credit Agreement, on
and as of the date upon which each of the New Banks delivers the amounts
referred to in clause (ii) of Section 13 of this Amendment, each New Bank shall
become a "Bank" under, and for all purposes of, the Credit Agreement and the
other Credit Documents and, notwithstanding anything to the contrary in the
Credit Agreement, the Administrative Agent shall record the transfers
contemplated hereby in the Register.
8. Clause (iii) of the proviso to Section 13.04(b) of the Credit
Agreement is hereby amended to read in its entirety as follows: "(iii) in the
case of assignments pursuant to clause (y) above, the consent of the
Administrative Agent and each Issuing Bank shall be required in connection with
any assignment of all or any portion of Revolving Loan Commitments (which
consents shall not be unreasonably withheld or delayed),".
9. Clause (ii) to Section 13.16(a) of the Credit Agreement is hereby
amended to read in its entirety as follows: "(ii) as may be required or
reasonably appropriate in any report, statement or testimony submitted to any
municipal, state (including the National Association of Insurance Commissioners
and other similar organizations) or Federal regulatory body having or claiming
to have jurisdiction over such Bank or to the Federal Reserve Board or the
Federal Deposit Insurance Corporation or similar organizations (whether in the
United States or elsewhere) or their successors,".
10. This Amendment is limited as specified and shall not constitute a
modification, acceptance or waiver of any other provision of the Credit
Agreement or any other Credit Document.
11. This Amendment may be executed in any number of counterparts and
by the different parties hereto on separate counterparts, each of which
counterparts when executed and delivered shall be an original, but all of which
shall together constitute one and the same instrument. A complete set of
counterparts shall be lodged with the Borrower and the Administrative Agent.
12. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE
STATE OF NEW YORK.
13. Subject to Section 14 of this Amendment, this Amendment shall
become effective on the date (the "First Amendment Effective Date") when (i) the
Parent, the Borrower, each Agent, each Existing Bank and each New Bank shall
have signed a counterpart hereof (whether the same or different counterparts)
and shall have delivered (including by way of facsimile transmission) the same
to the Administrative Agent at its Notice Office and (ii) each New Bank shall
have delivered to the Administrative Agent, for the accounts of the Existing
-3-
Banks, respectively, an amount equal to such New Bank's relevant Pro Rata Share
of the outstanding Term Loans and Revolving Loans being assigned to such New
Bank.
14. Notwithstanding Section 13 of this Amendment, if for any reason
any New Bank shall not have (i) signed a counterpart hereof and delivered the
same to the Administrative Agent at its Notice Office and (ii) delivered to the
Administrative Agent an amount equal to such New Bank's relevant Pro Rata Share
of the outstanding Term Loans and Revolving Loans being assigned to such New
Bank, in each case on or prior to April 23, 1998, then, if each Existing Bank
agrees, this Amendment shall become effective notwithstanding such failure,
provided that (x) Schedule C shall be modified to delete any such New Bank and
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such New Bank's relevant Pro Rata Share shall be reallocated among the Existing
Banks in such manner as the Existing Banks shall agree and (y) the signature
pages of this Amendment shall be deemed revised to delete such New Bank's name
therefrom.
15. From and after the First Amendment Effective Date, all references
in the Credit Agreement and each of the Credit Documents to the Credit Agreement
shall be deemed to be references to the Credit Agreement as amended hereby.
* * *
-4-
IN WITNESS WHEREOF, each of the parties hereto has caused a
counterpart of this Amendment to be duly executed and delivered as of the date
first above written.
CORPORATE EXPRESS, INC.
By______________________________
Title:
CEX HOLDINGS, INC.
By______________________________
Title:
BANKERS TRUST COMPANY,
Individually and as Administrative Agent
By______________________________
Title:
THE FIRST NATIONAL BANK OF
CHICAGO,
Individually and as Syndication Agent
By______________________________
Title:
THE BANK OF NEW YORK,
Individually and as Co-Documentation Agent
By______________________________
Title:
DLJ CAPITAL FUNDING, INC.,
Individually and as Co-Documentation Agent
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By______________________________
Title:
-6-
NEW BANKS:
THE BANK OF NOVA SCOTIA
By______________________________
Title:
-7-
BANQUE PARIBAS
By______________________________
Title:
-8-
CITY NATIONAL BANK
By______________________________
Title:
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COMERICA WEST INCORPORATED
By______________________________
Title:
-00-
XXXXXXXXXXXXX XXXXXXXXX FINANCE, INC.
By______________________________
Title:
By______________________________
Title:
-00-
XXXXXXXX XXXX XX, XXX XXXX
BRANCH AND GRAND CAYMAN
BRANCH
By______________________________
Title:
By______________________________
Title:
-00-
XXX XXX-XXXX XXXXXX XXXX,
XXXXXXX, XXX XXXXXXX AGENCY
By______________________________
Title:
-13-
FLEET NATIONAL BANK
By______________________________
Title:
-00-
XXX XXXX XXXX, XXXXXXX, XXX
XXXXXXX AGENCY
By______________________________
Title:
-15-
GENERAL ELECTRIC CAPITAL
CORPORATION
By______________________________
Title:
-16-
HIBERNIA NATIONAL BANK
By______________________________
Title:
-17-
IMPERIAL BANK, A CALIFORNIA
BANKING CORPORATION
By______________________________
Title:
-00-
XXX XXXX NATIONAL ASSOCIATION
By______________________________
Title:
-19-
THE MITSUBISHI TRUST AND
BANKING CORPORATION
By______________________________
Title:
-00-
XXXXXXXX XXXX XX XXXXXX
By______________________________
Title:
By______________________________
Title:
-00-
XXXXXXXX XXXX XXXX
By______________________________
Title:
-22-
THE PRUDENTIAL INSURANCE
COMPANY OF AMERICA
By______________________________
Title:
-00-
XXXXX XXXX XX XXXXXX
By______________________________
Title:
-00-
XXXXX XXXXXXXX CREDIT CORP.
By______________________________
Title:
-25-
SOCIETE GENERALE,
SOUTHWEST AGENCY
By______________________________
Title:
-26-
TRANSAMERICA BUSINESS CREDIT
CORPORATION
By______________________________
Title:
-00-
XXXXX XXXXXXXX XXXX, N.A.
By______________________________
Title:
-00-
XXXXXXXX XXXX, N.A.
By______________________________
Title:
-29-
U.S. BANK NATIONAL ASSOCIATION
By______________________________
Title:
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ACKNOWLEDGED AND AGREED TO:
ASAP SOFTWARE EXPRESS, INC.
CORPORATE EXPRESS CALLCENTER SERVICES, INC.
SOFCO-XXXX, INC.
SQP, INC.
SOFCO OF OHIO, INC.
S&O PROPERTY, INC.
EPCO PACKAGING SERVICES, INC.
HERMANN MARKETING, INC.
DISTRIBUTION RESOURCES CO.
CORPORATE EXPRESS REAL ESTATE, INC.
CORPORATE EXPRESS OF THE EAST, INC.
CORPORATE EXPRESS OF TEXAS, INC.
FEDERAL SALES SERVICE, INC.
VIRGINIA IMPRESSIONS PRODUCTS CO., INC.
MICROMAGNETIC SYSTEMS, INC.
CORPORATE EXPRESS DELIVERY SYSTEMS, INC.
AMERICAN DELIVERY SYSTEMS, INC.
CORPORATE EXPRESS DISTRIBUTION SERVICES, INC.
NEW DELAWARE DELIVERY, INC.
RED ARROW CORPORATION
RAC, INC.
RED ARROW SPOTTING SERVICES, INC.
RED ARROW TRUCKING CO.
RED ARROW WAREHOUSING, CO.
RUSH TRUCKING, INC.
CORPORATE EXPRESS DELIVERY SYSTEMS - INTERMOUNTAIN, INC.
CORPORATE EXPRESS DELIVERY LEASING - INTERMOUNTAIN, INC.
CORPORATE EXPRESS DELIVERY SYSTEMS - MID-ATLANTIC, INC.
CORPORATE EXPRESS DELIVERY LEASING - MID-ATLANTIC, INC.
CORPORATE EXPRESS DELIVERY SYSTEMS - MID-WEST, INC.
CORPORATE EXPRESS DELIVERY LEASING - MID-WEST, INC.
CORPORATE EXPRESS DELIVERY SYSTEMS - NEW ENGLAND, INC.
CORPORATE EXPRESS DELIVERY LEASING - NEW ENGLAND, INC.
BY ____________________________
Title:
ACKNOWLEDGED AND AGREED TO:
CORPORATE EXPRESS DELIVERY SYSTEMS - NORTHEAST, INC.
CORPORATE EXPRESS DELIVERY LEASING - NORTHEAST, INC.
CORPORATE EXPRESS DELIVERY SYSTEMS - SOUTHEAST, INC.
CORPORATE EXPRESS DELIVERY LEASING - SOUTHEAST, INC.
AIR COURIER DISPATCH OF NEW JERSEY, INC.
SUNBELT COURIER, INC.
TRICOR AMERICA, INC.
MIDNITE EXPRESS INTERNATIONAL COURIER, INC.
CORPORATE EXPRESS DELIVERY SYSTEMS - SOUTHWEST, INC.
CORPORATE EXPRESS DELIVERY LEASING - SOUTHWEST, INC.
CORPORATE EXPRESS DELIVERY SYSTEMS - WEST COAST, INC.
CORPORATE EXPRESS DELIVERY LEASING - WEST COAST, INC.
CORPORATE EXPRESS DELIVERY SYSTEMS - EXPEDITED, INC.
CORPORATE EXPRESS DELIVERY LEASING - EXPEDITED, INC.
CORPORATE EXPRESS DELIVERY ADMINISTRATION, INC.
CORPORATE EXPRESS DELIVERY MANAGEMENT BUSINESS TRUST
BY _____________________________
Title:
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CREDIT AGREEMENT
among
CORPORATE EXPRESS, INC.,
CEX HOLDINGS, INC.,
VARIOUS BANKS,
THE FIRST NATIONAL BANK OF CHICAGO,
as SYNDICATION AGENT,
THE BANK OF NEW YORK,
as XX-XXXXXXXXXXXXX XXXXX,
XXX CAPITAL FUNDING, INC.,
as CO-DOCUMENTATION AGENT
and
BANKERS TRUST COMPANY,
as ADMINISTRATIVE AGENT
__________________________________
Dated as of April 17, 1998
__________________________________
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TABLE OF CONTENTS
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Page
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SECTION 1. Amount and Terms of Credit....................................................................................... 1
1.01 The Commitments.................................................................................................. 1
1.02 Minimum Amount of Each Borrowing................................................................................. 2
1.03 Notice of Borrowing.............................................................................................. 3
1.04 Disbursement of Funds............................................................................................ 3
1.05 Notes............................................................................................................ 4
1.06 Conversions...................................................................................................... 5
1.07 Pro Rata Borrowings.............................................................................................. 6
1.08 Interest......................................................................................................... 6
1.09 Interest Periods................................................................................................. 7
1.10 Increased Costs, Illegality, etc................................................................................. 8
1.11 Compensation..................................................................................................... 9
1.12 Change of Lending Office......................................................................................... 10
1.13 Replacement of Banks............................................................................................. 10
SECTION 2. Letters of Credit................................................................................................ 11
2.01 Letters of Credit................................................................................................ 11
2.02 Letter of Credit Requests........................................................................................ 12
2.03 Letter of Credit Participations.................................................................................. 13
2.04 Agreement to Repay Letter of Credit Drawings..................................................................... 14
2.05 Increased Costs.................................................................................................. 15
SECTION 3. Commitment Commission; Fees; Reductions of Commitment............................................................ 16
3.01 Fees............................................................................................................. 16
3.02 Voluntary Termination of Unutilized Commitments.................................................................. 17
3.03 Mandatory Reduction of Commitments............................................................................... 18
SECTION 4. Prepayments; Payments; Taxes..................................................................................... 18
4.01 Voluntary Prepayments............................................................................................ 18
4.02 Mandatory Repayments............................................................................................. 19
4.03 Method and Place of Payment...................................................................................... 23
4.04 Net Payments; Taxes.............................................................................................. 24
SECTION 5. Conditions Precedent to Loans on the Initial Borrowing Date...................................................... 25
5.01 Execution of Agreement; Notes.................................................................................... 25
5.02 Fees, etc........................................................................................................ 25
5.03 Opinions of Counsel.............................................................................................. 26
5.04 Corporate Documents; Proceedings; etc............................................................................ 26
5.05 Shareholders' Agreements; Debt Agreements; Tax Sharing Agreements................................................ 26
(i)
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5.06 Recapitalization Transaction - Initial Stock Repurchases......................................................... 26
5.07 Refinancing Transaction - Repayment and Termination of the Existing Credit Agreement............................. 27
5.08 Existing Indebtedness............................................................................................ 27
5.09 Subsidiaries Guaranty............................................................................................ 28
5.10 Pledge Agreement................................................................................................. 28
5.11 Security Agreement............................................................................................... 28
5.12 Mortgages; Title Insurance....................................................................................... 28
5.13 Adverse Change, etc.............................................................................................. 29
5.14 Litigation....................................................................................................... 29
5.15 Solvency Certificate; Environmental Analyses; Insurance.......................................................... 30
5.16 Notices to Holders of Certain Indebtedness....................................................................... 30
SECTION 6. Conditions Precedent to All Credit Events on and After the Initial Borrowing Date................................ 30
6.01 No Default; Representations and Warranties....................................................................... 30
6.02 Notice of Borrowing; Letter of Credit Request.................................................................... 30
6.03 Compliance with Existing Senior Subordinated Note Indenture...................................................... 31
SECTION 7. Representations, Warranties and Agreements....................................................................... 31
7.01 Corporate Existence and Standing................................................................................. 31
7.02 Authorization and Validity....................................................................................... 31
7.03 Compliance with Laws and Contracts............................................................................... 32
7.04 Governmental Consents............................................................................................ 32
7.05 Financial Statements............................................................................................. 32
7.06 Material Adverse Change.......................................................................................... 33
7.07 Taxes............................................................................................................ 33
7.08 Litigation....................................................................................................... 33
7.09 Subsidiaries..................................................................................................... 34
7.10 ERISA............................................................................................................ 34
7.11 Defaults......................................................................................................... 34
7.12 Federal Reserve Regulations...................................................................................... 34
7.13 Investment Company; Public Utility Holding Company Act........................................................... 34
7.14 Ownership of Properties.......................................................................................... 35
7.15 Material Agreements.............................................................................................. 35
7.16 Environmental Matters............................................................................................ 35
7.17 Insurance........................................................................................................ 35
7.18 Subordinated Indebtedness........................................................................................ 35
7.19 Disclosure....................................................................................................... 36
7.20 Use of Proceeds.................................................................................................. 36
7.21 The Security Documents........................................................................................... 36
7.22 Capitalization................................................................................................... 37
7.23 Indebtedness..................................................................................................... 37
SECTION 8. Affirmative Covenants............................................................................................ 37
8.01 Information Covenants............................................................................................ 38
8.02 Books, Records and Inspections................................................................................... 40
8.03 Insurance........................................................................................................ 41
(ii)
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8.04 Corporate Franchises............................................................................................. 41
8.05 Compliance with Statutes, etc.................................................................................... 41
8.06 Compliance with Environmental Laws............................................................................... 41
8.07 Use of Proceeds.................................................................................................. 42
8.08 Conduct of Business.............................................................................................. 42
8.09 Taxes............................................................................................................ 43
8.10 Compliance with Laws............................................................................................. 43
8.11 Maintenance of Properties........................................................................................ 43
8.12 End of Fiscal Years; Fiscal Quarters............................................................................. 43
8.13 Performance of Obligations....................................................................................... 43
8.14 Additional Security; Additional Guarantees; Designations of Material Subsidiaries; Further Assurances............ 43
8.15 Foreign Subsidiaries Security.................................................................................... 45
8.16 Interest Rate Protection......................................................................................... 45
8.17 Maintenance of Corporate Separateness............................................................................ 46
8.18 Margin Regulations............................................................................................... 46
8.19 DDI Notes........................................................................................................ 46
SECTION 9. Negative Covenants............................................................................................... 46
9.01 Liens............................................................................................................ 46
9.02 Consolidation, Merger, Purchase or Sale of Assets, etc........................................................... 49
9.03 Restricted Payments.............................................................................................. 51
9.04 Indebtedness..................................................................................................... 54
9.05 Advances, Investments and Loans.................................................................................. 56
9.06 Transactions with Affiliates..................................................................................... 58
9.07 Business......................................................................................................... 58
9.08 Capital Expenditures............................................................................................. 58
9.09 Consolidated Interest Coverage Ratio............................................................................. 60
9.10 Consolidated Fixed Charge Coverage Ratio......................................................................... 60
9.11 Maximum Leverage Ratio........................................................................................... 61
9.12 Limitation on Voluntary Payments and Modifications of Indebtedness; Modifications of Certificate of
Incorporation, By-Laws and Certain Other Agreements; etc......................................................... 62
9.13 Limitation on Certain Restrictions on Subsidiaries............................................................... 63
9.14 Limitation on Issuance of Capital Stock.......................................................................... 64
9.15 ERISA Compliance................................................................................................. 64
9.16 Limitation on Receivables Subsidiary and Permitted Receivables Facility.......................................... 64
SECTION 10. Events of Default................................................................................................ 64
10.01 Payments......................................................................................................... 64
10.02 Representations, etc............................................................................................. 64
10.03 Covenants........................................................................................................ 65
10.04 Default Under Other Agreements................................................................................... 65
10.05 Bankruptcy, etc.................................................................................................. 65
10.06 ERISA............................................................................................................ 65
10.07 Security Documents............................................................................................... 66
10.08 Guaranty......................................................................................................... 66
(iii)
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10.09 Judgments........................................................................................................ 66
10.10 Change of Control................................................................................................ 66
10.11 Receivables Facility............................................................................................. 66
SECTION 11. Definitions and Accounting Terms................................................................................. 67
SECTION 12. The Agents....................................................................................................... 96
12.01 Appointment...................................................................................................... 96
12.02 Nature of Duties................................................................................................. 96
12.03 Lack of Reliance on the Agents................................................................................... 97
12.04 Certain Rights of the Agents..................................................................................... 97
12.05 Reliance......................................................................................................... 97
12.06 Indemnification.................................................................................................. 97
12.07 Each Agent in its Individual Capacity............................................................................ 98
12.08 Holders.......................................................................................................... 98
12.09 Resignation by the Agents........................................................................................ 98
SECTION 13. Miscellaneous.................................................................................................... 99
13.01 Payment of Expenses, etc......................................................................................... 99
13.02 Right of Setoff.................................................................................................. 99
13.03 Notices.......................................................................................................... 100
13.04 Benefit of Agreement............................................................................................. 100
13.05 No Waiver; Remedies Cumulative................................................................................... 101
13.06 Payments Pro Rata................................................................................................ 102
13.07 Calculations; Computations....................................................................................... 102
13.08 GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL........................................... 102
13.09 Counterparts..................................................................................................... 103
13.10 Effectiveness.................................................................................................... 103
13.11 Headings Descriptive............................................................................................. 103
13.12 Amendment or Waiver; etc......................................................................................... 104
13.13 Survival......................................................................................................... 105
13.14 Domicile of Loans................................................................................................ 105
13.15 Limitation on Additional Amounts, Etc............................................................................ 105
13.16 Confidentiality.................................................................................................. 105
13.17 Register......................................................................................................... 106
13.18 Senior Debt...................................................................................................... 106
13.19 Obligation to Make Payments in Dollars........................................................................... 106
13.20 Post Closing Actions............................................................................................. 107
SECTION 14. The Parent Guaranty.............................................................................................. 108
14.01 The Parent Guaranty.............................................................................................. 108
14.02 Bankruptcy....................................................................................................... 108
14.03 Nature of Liability.............................................................................................. 108
14.04 Independent Obligation........................................................................................... 109
14.05 Authorization.................................................................................................... 109
(iv)
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14.06 Reliance......................................................................................................... 110
14.07 Subordination.................................................................................................... 110
14.08 Waiver........................................................................................................... 110
(v)
CREDIT AGREEMENT, dated as of April 17, 1998, among CORPORATE EXPRESS,
INC., a Colorado corporation (the "Parent"), CEX HOLDINGS, INC., a Colorado
corporation (the "Borrower"), the Banks party hereto from time to time, THE
FIRST NATIONAL BANK OF CHICAGO, as Syndication Agent (in such capacity, the
"Syndication Agent"), THE BANK OF NEW YORK and DLJ CAPITAL FUNDING, INC., as Co-
Documentation Agents (in such capacities, each a "Co-Documentation Agent" and,
collectively, the "Co-Documentation Agents") and BANKERS TRUST COMPANY, as
Administrative Agent (in such capacity, the "Administrative Agent") (all
capitalized terms used herein and defined in Section 11 are used herein as
therein defined).
W I T N E S S E T H :
- - - - - - - - - -
WHEREAS, subject to and upon the terms and conditions set forth
herein, the Banks are willing to make available to the Borrower the respective
credit facilities provided for herein;
NOW, THEREFORE, IT IS AGREED:
SECTION 1. Amount and Terms of Credit.
--------------------------
1.01 The Commitments. (a) Subject to and upon the terms and
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conditions set forth herein, each Bank with a Term Loan Commitment severally
agrees to make, on the Initial Borrowing Date, a term loan (each, a "Term Loan"
and, collectively, the "Term Loans") to the Borrower, which Term Loans (i) shall
be made and initially maintained as a single Borrowing of Base Rate Loans
(subject to the option to convert such Term Loans pursuant to Section 1.06) and
(ii) shall be made by each Bank in that initial aggregate principal amount as is
equal to the Term Loan Commitment of such Bank on such date (before giving
effect to any reductions thereto on such date pursuant to Section 3.03(b)).
Once repaid, Term Loans incurred hereunder may not be reborrowed.
(b) Subject to and upon the terms and conditions set forth herein,
each Bank with a Revolving Loan Commitment severally agrees, at any time and
from time to time on and after the Initial Borrowing Date and prior to the
Revolving Loan Maturity Date, to make a revolving loan or revolving loans (each,
a "Revolving Loan" and, collectively, the "Revolving Loans") to the Borrower,
which Revolving Loans (i) shall, at the option of the Borrower, be Base Rate
Loans or Eurodollar Loans, provided that (A) except as otherwise specifically
--------
provided in Section 1.10(b), all Revolving Loans comprising the same Borrowing
shall at all times be of the same Type and (B) prior to the earlier of (1) the
65th day after the Initial Borrowing Date and (2) the Syndication Date,
Revolving Loans may only be incurred as Eurodollar Loans if the respective
Interest Period applicable thereto is a one month Interest Period which begins
and ends on the same date as the Interest Period applicable to one of the two
Borrowings specified in Section 1.06(b)(x), (ii) may be repaid and reborrowed in
accordance with the provisions hereof, (iii) shall not exceed for any Bank at
any time outstanding that aggregate principal amount which, when added to the
product of (x) such Bank's Percentage and (y) the sum of (I) the aggregate
amount of all Letter of Credit Outstandings (exclusive of Unpaid Drawings which
are repaid with the proceeds of, and simultaneously with the incurrence of, the
respective incurrence of Revolving Loans) at such time and (II) the aggregate
principal amount of all Swingline Loans (exclusive of Swingline Loans which are
repaid with the proceeds of, and simultaneously with the incurrence of, the
respective incurrence of Revolving Loans) then outstanding, equals the Available
Revolving Loan Commitment of such Bank at such time and (iv) shall not exceed
for all Banks at any time outstanding that aggregate principal amount which,
when added to (I) the amount of all Letter of Credit Outstandings (exclusive of
Unpaid Drawings which are repaid with the proceeds of, and simultaneously with
the incurrence of, the respective incurrence of Revolving Loans) at such time
and (II) the aggregate principal amount of all Swingline Loans (exclusive of
Swingline Loans which are repaid with the proceeds of, and simultaneously with
the incurrence of, the respective incurrence of Revolving Loans) then
outstanding, equals the Total Available Revolving Loan Commitment at such time.
(c) Subject to and upon the terms and conditions set forth herein,
the Swingline Bank in its individual capacity agrees to make at any time and
from time to time on and after the Initial Borrowing Date and prior to the
Swingline Expiration Date, a revolving loan or revolving loans (each, a
"Swingline Loan" and, collectively, the "Swingline Loans") to the Borrower,
which Swingline Loans (i) shall be made and maintained as Base Rate Loans, (ii)
may be repaid and reborrowed in accordance with the provisions hereof, (iii)
shall not exceed in aggregate principal amount at any time outstanding, when
combined with the aggregate principal amount of all Revolving Loans then
outstanding and the Letter of Credit Outstandings at such time, an amount equal
to the Total Available Revolving Loan Commitment at such time, (iv) shall not
exceed at any time outstanding the Maximum Swingline Amount and (v) shall not be
extended if the Swingline Bank receives a written notice from any Agent or the
Required Banks that has not been rescinded that there is a Default or an Event
of Default in existence hereunder. The Swingline Bank shall not be obligated to
make any Swingline Loans at any time when a Bank Default exists unless the
Swingline Bank has entered into arrangements satisfactory to it to eliminate the
Swingline Bank's risk with respect to the Defaulting Bank's or Banks'
participation in such Swingline Loans, including by cash collateralizing such
Defaulting Bank's or Banks' Percentage of the outstanding Swingline Loans.
(d) On any Business Day, the Swingline Bank may, in its sole
discretion, give notice to the other Banks that the Swingline Bank's outstanding
Swingline Loans shall be funded with a Borrowing of Revolving Loans (provided
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that such notice shall be deemed to have been automatically given upon the
occurrence of a Default or an Event of Default under Section 10.05 or upon the
exercise of any of the remedies provided in the last paragraph of Section 10),
in which case a Borrowing of Revolving Loans constituting Base Rate Loans (each
such Borrowing, a "Mandatory Borrowing") shall be made on the immediately
succeeding Business Day by all Banks with a Revolving Loan Commitment (without
giving effect to any reductions thereto pursuant to the last paragraph of
Section 10) pro rata based on each such Bank's Percentage (determined before
--- ----
giving effect to any termination of the Revolving Loan Commitments pursuant to
the last paragraph of Section 10) and the proceeds thereof shall be applied
directly to the Swingline Bank to repay the Swingline Bank for such outstanding
Swingline Loans. Each such Bank hereby irrevocably agrees to make Revolving
Loans upon one Business Day's notice pursuant to each Mandatory Borrowing in the
amount and in the manner specified in the immediately preceding sentence and on
the date specified in writing by the Swingline Bank notwithstanding (i) the
amount of the Mandatory Borrowing may not comply with the minimum amount for
Borrowings otherwise required hereunder, (ii) whether any conditions specified
in Section 6 are then satisfied, (iii) whether a Default or an Event of Default
then exists, (iv) the date of such Mandatory Borrowing and (v) the amount of the
Total Available Revolving Loan Commitment at such time. In the event that any
Mandatory Borrowing cannot for any reason be made on the date otherwise required
above (including, without limitation, as a result of the commencement of a
proceeding under the Bankruptcy Code with respect to the Borrower), then each
such Bank hereby agrees that it shall forthwith purchase (as of the date the
Mandatory Borrowing would otherwise have occurred, but adjusted for any payments
received from the Borrower on or after such date and prior to such purchase)
from the Swingline Bank such participations in the outstanding Swingline Loans
as shall be necessary to cause such Banks to share in such Swingline Loans
ratably based upon their respective Percentages (determined before giving effect
to any termination of the Revolving Loan Commitments pursuant to the last
paragraph of Section 10), provided that (x) all interest payable on the
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Swingline Loans shall be for the account of the Swingline Bank until the date as
of which the respective participation is required to be purchased and, to the
extent attributable to the purchased participation, shall be payable to the
participant from and after such date and (y) at the time any purchase of
participations pursuant to this sentence is actually made, the purchasing Bank
shall be required to pay the Swingline Bank interest on the principal amount of
participation purchased for each day from and including the day upon which the
Mandatory Borrowing would otherwise have occurred to but excluding the date of
payment for such participation, at the overnight Federal Funds Rate for the
first three days and at the rate otherwise applicable to Revolving Loans
maintained as Base Rate Loans hereunder for each day thereafter.
1.02 Minimum Amount of Each Borrowing. The aggregate principal
--------------------------------
amount of each Borrowing of Term Loans shall not be less than $2,000,000. The
aggregate principal amount of each Borrowing of Revolving Loans shall be not
less than (x) in the case of a Borrowing of Eurodollar Loans, $2,000,000 and (y)
-2-
in the case of a Borrowing of Base Rate Loans, $1,000,000, provided that
--------
Mandatory Borrowings shall be made in the amounts required by Section 1.01(d).
The aggregate principal amount of each Borrowing of Swingline Loans shall not be
less than $100,000. More than one Borrowing may occur on the same date, but at
no time shall there be outstanding more than twelve Borrowings of Eurodollar
Loans.
1.03 Notice of Borrowing. (a) Whenever the Borrower desires to make
-------------------
a Borrowing or Borrowings hereunder (excluding Borrowings of Swingline Loans and
Mandatory Borrowings), it shall give the Administrative Agent at its Notice
Office at least one Business Day's prior written notice (or telephonic notice
promptly confirmed in writing) of each Base Rate Loan and at least three
Business Days' prior written notice (or telephonic notice promptly confirmed in
writing) of each Eurodollar Loan to be made hereunder, provided that any such
--------
notice shall be deemed to have been given on a certain day only if given before
1:30 P.M. (New York time) on such day. Each such written notice or written
confirmation of telephonic notice (each, a "Notice of Borrowing"), except as
otherwise expressly provided in Section 1.10, shall be irrevocable and shall be
given by the Borrower in the form of Exhibit A, appropriately completed to
specify the aggregate principal amount of the Loans to be made pursuant to each
such Borrowing, the date of such Borrowing (which shall be a Business Day),
whether the Loans being made pursuant to such Borrowing shall constitute Term
Loans or Revolving Loans and whether the Loans being made pursuant to such
Borrowing are to be initially maintained as Base Rate Loans or Eurodollar Loans
and, if Eurodollar Loans, the initial Interest Period to be applicable thereto.
It is understood and agreed that a Notice of Borrowing may be modified to
specify that more than one Borrowing (whether of separate Tranches or the same
Tranche) may be made on the same date, provided that all information required by
--------
the form of Exhibit A shall be furnished with respect to each Borrowing to be
made on the date specified in the respective Notice of Borrowing. The
Administrative Agent shall promptly give each Bank which is required to make
Loans of the Tranche specified in the respective Notice of Borrowing, notice of
such proposed Borrowing, of such Bank's proportionate share thereof and of the
other matters required by the immediately preceding sentence to be specified in
the Notice of Borrowing.
(b)(i) Whenever the Borrower desires to make a Borrowing of Swingline
Loans hereunder, it shall give the Swingline Bank not later than 2:00 P.M. (New
York time) on the date that a Swingline Loan is to be made, written notice or
telephonic notice promptly confirmed in writing of each Swingline Loan to be
made hereunder. Each such notice shall be irrevocable and specify in each case
(A) the date of Borrowing (which shall be a Business Day) and (B) the aggregate
principal amount of the Swingline Loans to be made pursuant to such Borrowing.
(ii) Mandatory Borrowings shall be made upon the notice specified in
Section 1.01(d), with the Borrower irrevocably agreeing, by its incurrence of
any Swingline Loan, to the making of the Mandatory Borrowings as set forth in
Section 1.01(d).
(c) Without in any way limiting the obligation of the Borrower to
confirm in writing any telephonic notice of any Borrowing of Loans, the
Administrative Agent or the Swingline Bank, as the case may be, may act without
liability upon the basis of telephonic notice of such Borrowing, believed by the
Administrative Agent or the Swingline Bank, as the case may be, in good faith to
be from the president, any vice president, the chief financial officer, the
treasurer or any assistant treasurer of the Borrower (or any other officer of
the Borrower designated in writing to the Administrative Agent and the Swingline
Bank by the president, any vice president, the chief financial officer, the
treasurer or any assistant treasurer as being authorized to give such notices
under this Agreement) prior to receipt of written confirmation. In each such
case, the Borrower hereby waives the right to dispute the Administrative Agent's
and the Swingline Bank's record of the terms of such telephonic notice of such
Borrowing of Loans.
1.04 Disbursement of Funds. Except as otherwise specifically
---------------------
provided in the immediately succeeding sentence, no later than 12:00 Noon (New
York time) on the date specified in each Notice of Borrowing (or (x) in the case
of Swingline Loans, not later than 3:30 P.M. (New York time) on the date
specified pursuant to Section 1.03(b)(i) or (y) in the case of Mandatory
Borrowings, not later than 12:00 Noon (New York time) on the
-3-
date specified in Section 1.01(d)), each Bank with a Commitment of the
respective Tranche will make available its pro rata portion of each such
--------
Borrowing requested to be made on such date (or in the case of Swingline Loans,
the Swingline Bank shall make available the full amount thereof). All such
amounts shall be made available in Dollars and in immediately available funds at
the Payment Office of the Administrative Agent, and (except in the case of
Mandatory Borrowings, where the proceeds shall be used to repay outstanding
Swingline Loans) the Administrative Agent will make available to the Borrower at
the Payment Office the aggregate of the amounts so made available by the Banks
(for Loans other than Swingline Loans, prior to 1:00 P.M. (New York time) on
such day, to the extent of funds actually received by the Administrative Agent
prior to 12:00 Noon (New York time) on such day). Notwithstanding anything to
the contrary contained above, to the extent the respective Borrowing is being
made based on telephonic notice received from the Borrower as contemplated by
Section 1.03(c), all proceeds of the respective Borrowing shall be deposited by
the Administrative Agent only in one or more bank accounts of the Borrower which
have previously been designated by the Borrower to the Administrative Agent in
writing. Unless the Administrative Agent shall have been notified by any Bank
prior to the date of Borrowing that such Bank does not intend to make available
to the Administrative Agent such Bank's portion of any Borrowing to be made on
such date, the Administrative Agent may assume that such Bank has made such
amount available to the Administrative Agent on such date of Borrowing and the
Administrative Agent may, in reliance upon such assumption, make available to
the Borrower a corresponding amount. If such corresponding amount is not in fact
made available to the Administrative Agent by such Bank, the Administrative
Agent shall be entitled to recover such corresponding amount on demand from such
Bank. If such Bank does not pay such corresponding amount forthwith upon the
Administrative Agent's demand therefor, the Administrative Agent shall promptly
notify the Borrower and the Borrower shall immediately pay such corresponding
amount to the Administrative Agent. The Administrative Agent shall also be
entitled to recover on demand from such Bank or the Borrower, as the case may
be, interest on such corresponding amount in respect of each day from the date
such corresponding amount was made available by the Administrative Agent to the
Borrower until the date such corresponding amount is recovered by the
Administrative Agent, at a rate per annum equal to (i) if recovered from such
Bank, the overnight Federal Funds Rate and (ii) if recovered from the Borrower,
the rate of interest applicable to the respective Borrowing, as determined
pursuant to Section 1.08. Nothing in this Section 1.04 shall be deemed to
relieve any Bank from its obligation to make Loans hereunder or to prejudice any
rights which the Borrower may have against any Bank as a result of any failure
by such Bank to make Loans hereunder.
1.05 Notes. (a) Subject to the provisions of following clause (f),
-----
the Borrower's obligation to pay the principal of, and interest on, the Loans
made by each Bank shall be evidenced (i) if Term Loans, by a promissory note
duly executed and delivered by the Borrower substantially in the form of Exhibit
B-1, with blanks appropriately completed in conformity herewith (each, a "Term
Note" and, collectively, the "Term Notes"), (ii) if Revolving Loans, by a
promissory note duly executed and delivered by the Borrower substantially in the
form of Exhibit B-2, with blanks appropriately completed in conformity herewith
(each, a "Revolving Note" and, collectively, the "Revolving Notes") and (iii) if
Swingline Loans, by a promissory note duly executed and delivered by the
Borrower substantially in the form of Exhibit B-3, with blanks appropriately
completed in conformity herewith (the "Swingline Note").
(b) The Term Note issued to each Bank shall (i) be executed by the
Borrower, (ii) be payable to the order of such Bank and be dated the Initial
Borrowing Date (or if issued thereafter, the date of issuance), (iii) be in a
stated principal amount equal to the Term Loan made by such Bank on the Initial
Borrowing Date (or, if issued after the Initial Borrowing Date, be in a stated
principal amount equal to the outstanding principal amount of Term Loans of such
Bank at such time) and be payable in the principal amount of Term Loans
evidenced thereby, (iv) mature on the Term Loan Maturity Date, (v) bear interest
as provided in the appropriate clause of Section 1.08 in respect of the Base
Rate Loans and Eurodollar Loans, as the case may be, evidenced thereby, (vi) be
subject to voluntary prepayment as provided in Section 4.01 and mandatory
repayment as provided in Section 4.02 and (vii) be entitled to the benefits of
this Agreement and the other Credit Documents.
(c) The Revolving Note issued to each Bank shall (i) be executed by
the Borrower, (ii) be payable to the order of such Bank and be dated the Initial
Borrowing Date (or if issued thereafter, the date of
-4-
issuance), (iii) be in a stated principal amount equal to the Revolving Loan
Commitment of such Bank (or, if issued after the termination thereof, be in a
stated principal amount equal to the outstanding Revolving Loans of such Bank at
such time) and be payable in the principal amount of the outstanding Revolving
Loans evidenced thereby from time to time, (iv) mature on the Revolving Loan
Maturity Date, (v) bear interest as provided in the appropriate clause of
Section 1.08 in respect of the Base Rate Loans and Eurodollar Loans, as the case
may be, evidenced thereby, (vi) be subject to voluntary prepayment as provided
in Section 4.01 and mandatory repayment as provided in Section 4.02 and (vii) be
entitled to the benefits of this Agreement and the other Credit Documents.
(d) The Swingline Note issued to the Swingline Bank shall (i) be
executed by the Borrower, (ii) be payable to the order of the Swingline Bank and
be dated the Initial Borrowing Date, (iii) be in a stated principal amount equal
to the Maximum Swingline Amount and be payable in the principal amount of the
outstanding Swingline Loans evidenced thereby from time to time, (iv) mature on
the Swingline Expiration Date, (v) bear interest as provided in the appropriate
clause of Section 1.08 in respect of the Base Rate Loans evidenced thereby, (vi)
be subject to voluntary prepayment as provided in Section 4.01 and mandatory
repayment as provided in Section 4.02 and (vii) be entitled to the benefits of
this Agreement and the other Credit Documents.
(e) Each Bank will note on its internal records the amount of each
Loan made by it and each payment in respect thereof and will prior to any
transfer of any of its Notes endorse on the reverse side thereof the outstanding
principal amount of Loans evidenced thereby. Failure to make any such notation
or any error in any such notation or endorsement shall not affect the Borrower's
obligations in respect of such Loans.
(f) Notwithstanding anything to the contrary contained above or
elsewhere in this Agreement, Notes shall only be delivered to Banks with Loans
of the respective Tranches which at any time specifically request the delivery
of such Notes. No failure of any Bank to request or obtain a Note evidencing
its Loans of any Tranche shall affect or in any manner impair the obligations of
the Borrower to pay the Loans (and all related Obligations) which would
otherwise be evidenced thereby in accordance with the requirements of this
Agreement, and shall not in any way affect the security or guarantees therefor
provided pursuant to the various Credit Documents. Any Bank which does not have
a Note evidencing its outstanding Loans shall in no event be required to make
notations otherwise described in preceding clause (e). At any time when any
Bank requests the delivery of a Note to evidence its Loans of any Tranche, the
Borrower shall promptly execute and deliver to the respective Bank the requested
Note or Notes in the appropriate amount or amounts to evidence such Loans.
1.06 Conversions. (a) The Borrower shall have the option to convert,
-----------
on any Business Day, all or a portion equal to at least (x) in the case of a
conversion of Term Loans, $2,000,000 and (y) in the case of a conversion of
Revolving Loans, $2,000,000 (or $1,000,000 in the case of a conversion into Base
Rate Loans), of the outstanding principal amount of Loans made pursuant to one
or more Borrowings (so long as of the same Tranche) of one or more Types of
Loans into a Borrowing (of the same Tranche) of another Type of Loan, provided
--------
that (i) if for any reason any Eurodollar Loans are converted into Base Rate
Loans on a day which is not the last day of an Interest Period applicable to the
Loans being converted, the Borrower shall pay all amounts owing in connection
therewith as required by Section 1.11, (ii) no partial conversion of Eurodollar
Loans shall reduce the outstanding principal amount of such Eurodollar Loans
made pursuant to a single Borrowing to less than $2,000,000, (iii) unless the
Required Banks otherwise specifically agree in writing, Base Rate Loans may only
be converted into Eurodollar Loans if no Specified Default and no Event of
Default is in existence on the date of the conversion, (iv) no conversion
pursuant to this Section 1.06 shall result in a greater number of Borrowings of
Eurodollar Loans than is permitted under Section 1.02, (v) prior to the 65th day
after the Initial Borrowing Date, conversions of Base Rate Loans into Eurodollar
Loans shall be subject to the additional requirements imposed pursuant to
following clause (b) and (vi) Swingline Loans may not be converted pursuant to
this Section 1.06. Each such conversion shall be effected by the Borrower by
giving the Administrative Agent at its Notice Office prior to 1:30 P.M. (New
York time) at least (x) in the case of a conversion to Eurodollar Loans, three
Business Days' prior notice and (y) in the case of a conversion to Base Rate
Loans, one Business Day's prior notice (each a "Notice of Conversion")
specifying the Loans to be so converted, the Borrowing(s) pursuant to which such
Loans were made and, if to be converted into Eurodollar Loans, the Interest
Period to be initially applicable
-5-
thereto. The Administrative Agent shall give each Bank prompt notice of any such
proposed conversion affecting any of its Loans.
(b) Unless the Syndication Date has occurred, (x) no more than two
Borrowings (for purposes of this clause (b) only, treating multiple Borrowings
under different Tranches as a single Borrowing so long as each such Borrowing
has an Interest Period which begins and ends on the same date as each other such
Borrowing) of Eurodollar Loans (the first of which Borrowings may not be made
sooner than the fifth day after the Initial Borrowing Date and must have an
Interest Period of one month, and the second of which Borrowings may only be
incurred on the last day of the first Interest Period referenced above in this
parenthetical and must also have an Interest Period of one month) may be
incurred prior to the earlier of (1) the 65th day after the Initial Borrowing
Date or, if on such 65th day a Borrowing of Eurodollar Loans remains outstanding
which has an Interest Period which extends beyond such 65th day, the last day of
such Interest Period and (2) the Syndication Date and (y) the only conversions
of Base Rate Loans into Eurodollar Loans which shall be permitted will be
conversions into Eurodollar Loans with an Interest Period of one month, which
Interest Period in each case shall begin and end on the same date as is
applicable to one of the two Interest Periods specified above in clause (x).
1.07 Pro Rata Borrowings. All Borrowings of Term Loans and Revolving
-------------------
Loans under this Agreement shall be incurred from the Banks pro rata on the
--- ----
basis of their Term Loan Commitments or Revolving Loan Commitments, as the case
may be, provided that all Borrowings of Revolving Loans made pursuant to a
--------
Mandatory Borrowing shall be incurred from the Banks pro rata on the basis of
--- ----
their Percentages. It is understood that no Bank shall be responsible for any
default by any other Bank of its obligation to make Loans hereunder and that
each Bank shall be obligated to make the Loans provided to be made by it
hereunder, regardless of the failure of any other Bank to make its Loans
hereunder.
1.08 Interest. (a) The Borrower agrees to pay interest in respect
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of the unpaid principal amount of each Base Rate Loan from the date the proceeds
thereof are made available to the Borrower until the earlier of (i) the maturity
(whether by acceleration or otherwise) of such Base Rate Loan and (ii) the
conversion of such Base Rate Loan to a Eurodollar Loan pursuant to Section 1.06,
at a rate per annum which shall be equal to the sum of the Base Rate in effect
from time to time plus the relevant Applicable Margin.
(b) The Borrower agrees to pay interest in respect of the unpaid
principal amount of each Eurodollar Loan from the date the proceeds thereof are
made available to the Borrower until the earlier of (i) the maturity (whether by
acceleration or otherwise) of such Eurodollar Loan and (ii) the conversion of
such Eurodollar Loan to a Base Rate Loan pursuant to Section 1.06 or 1.09, as
applicable, at a rate per annum which shall, during each Interest Period
applicable thereto, be equal to the sum of the Eurodollar Rate for such Interest
Period plus the relevant Applicable Margin.
(c) Overdue principal and, to the extent permitted by law, overdue
interest in respect of each Loan and any other overdue amount payable hereunder
shall, in each case, bear interest at a rate per annum equal to the greater of
(x) 2% per annum in excess of the rate otherwise applicable to Base Rate Loans
from time to time and (y) the rate which is 2% in excess of the rate then borne
by such Loans, in each case with such interest to be payable on demand.
(d) Accrued (and theretofore unpaid) interest shall be payable (i) in
respect of each Base Rate Loan, quarterly in arrears on each Quarterly Payment
Date, (ii) in respect of each Eurodollar Loan, on the last day of each Interest
Period applicable thereto and, in the case of an Interest Period in excess of
three months, on each date occurring at three month intervals after the first
day of such Interest Period and (iii) in respect of each Loan, on any repayment
or prepayment (on the amount repaid or prepaid), at maturity (whether by
acceleration or otherwise) and, after such maturity, on demand.
(e) Upon each Interest Determination Date, the Administrative Agent
shall determine the Eurodollar Rate for each Interest Period applicable to
Eurodollar Loans and shall promptly notify the Borrower
-6-
and the Banks thereof. Each such determination shall, absent manifest error, be
final and conclusive and binding on all parties hereto.
1.09 Interest Periods. At the time it gives any Notice of Borrowing
----------------
or Notice of Conversion in respect of the making of, or conversion into, any
Eurodollar Loan (in the case of the initial Interest Period applicable thereto)
or on the third Business Day prior to the expiration of an Interest Period
applicable to such Eurodollar Loan (in the case of any subsequent Interest
Period), the Borrower shall have the right to elect, by giving the
Administrative Agent notice thereof, the interest period (each an "Interest
Period") applicable to such Eurodollar Loan, which Interest Period shall, at the
option of the Borrower, be a one, two, three or six month period, provided that:
--------
(i) all Eurodollar Loans comprising a Borrowing shall at all times
have the same Interest Period;
(ii) the initial Interest Period for any Eurodollar Loan shall
commence on the date of Borrowing of such Eurodollar Loan (including the
date of any conversion thereto from a Loan of a different Type) and each
Interest Period occurring thereafter in respect of such Eurodollar Loan
shall commence on the day on which the next preceding Interest Period
applicable thereto expires;
(iii) if any Interest Period relating to a Eurodollar Loan begins on
a day for which there is no numerically corresponding day in the calendar
month at the end of such Interest Period, such Interest Period shall end on
the last Business Day of such calendar month;
(iv) if any Interest Period would otherwise expire on a day which is
not a Business Day, such Interest Period shall expire on the next
succeeding Business Day, provided, however, that if any Interest Period for
--------
a Eurodollar Loan would otherwise expire on a day which is not a Business
Day but is a day of the month after which no further Business Day occurs in
such month, such Interest Period shall expire on the next preceding
Business Day;
(v) unless the Required Banks otherwise specifically agree in
writing, no Interest Period may be selected at any time when a Specified
Default or any Event of Default is then in existence;
(vi) no Interest Period in respect of any Borrowing of any Tranche of
Loans shall be selected which extends beyond the respective Maturity Date
for such Tranche of Loans; and
(vii) no Interest Period in respect of any Borrowing of Term Loans
shall be selected which extends beyond any date upon which a mandatory
repayment of Term Loans will be required to be made under Section 4.02(b)
if the aggregate principal amount of Term Loans which have Interest Periods
which will expire after such date will be in excess of the aggregate
principal amount of Term Loans then outstanding less the aggregate amount
of such required prepayment.
If upon the expiration of any Interest Period applicable to a
Borrowing of Eurodollar Loans, the Borrower has failed to elect a new Interest
Period to be applicable to such Eurodollar Loans as provided above, the Borrower
shall be deemed to have elected a new one month Interest Period (beginning on
the last day of the expiring Interest Period applicable to the respective
Borrowing) to be applicable to the respective Borrowing upon the expiration of
the Interest Period then applicable thereto; provided that if the Borrower is
--------
not permitted to elect a new Interest Period pursuant to the foregoing
provisions of this Section 1.09, the Borrower shall deemed to have elected to
convert such Eurodollar Loans into Base Rate Loans effective as of the
expiration date of such current Interest Period.
-7-
1.10 Increased Costs, Illegality, etc. (a) In the event that any
---------------------------------
Bank shall have determined (which determination shall, absent manifest error, be
final and conclusive and binding upon all parties hereto but, with respect to
clause (i) below, may be made only by the Administrative Agent):
(i) on any Interest Determination Date that, by reason of any
changes arising after the date of this Agreement affecting the interbank
Eurodollar market, adequate and fair means do not exist for ascertaining
the applicable interest rate on the basis provided for in the definition of
Eurodollar Rate; or
(ii) at any time, that such Bank shall incur increased costs or
reductions in the amounts received or receivable hereunder with respect to
any Eurodollar Loan because of (x) any change since the date of this
Agreement in any applicable law or governmental (including for this purpose
any regulatory body with jurisdiction over such Bank) rule, regulation,
order, guideline or request (whether or not having the force of law) or in
the interpretation or administration thereof and including the introduction
of any new law or governmental rule, regulation, order, guideline or
request, such as, for example, but not limited to: (A) a change in the
basis of taxation of payment to any Bank of the principal of or interest on
such Eurodollar Loan or any other amounts payable hereunder (except for
changes in the rate of tax on, or determined by reference to, the net
income or net profits of such Bank, or any franchise tax or gross receipts
tax based on or imposed in lieu of the net income or net profits taxes, in
either case pursuant to the laws of the United States of America, the
jurisdiction in which such Bank is organized or in which its principal
office or applicable lending office is located or any subdivision thereof
or therein), but without duplication of any amounts payable in respect of
Taxes pursuant to Section 4.04(a), or (B) a change in official reserve
requirements, but, in all events, excluding reserves required under
Regulation D to the extent included in the computation of the Eurodollar
Rate and/or (y) other circumstances since the date of this Agreement
affecting such Bank or the interbank Eurodollar market or the position of
such Bank in such market; or
(iii) at any time, that the making or continuance of any Eurodollar
Loan has been made (x) unlawful by any law or governmental rule, regulation
or order, (y) impossible by compliance by any Bank in good faith with any
governmental request (whether or not having force of law) or (z)
impracticable as a result of a contingency occurring after the date of this
Agreement which materially and adversely affects the interbank Eurodollar
market;
then, and in any such event, such Bank (or the Administrative Agent, in the case
of clause (i) above) shall promptly give notice (by telephone confirmed in
writing) to the Borrower and, except in the case of clause (i) above, to the
Administrative Agent of such determination (which notice the Administrative
Agent shall promptly transmit to each of the other Banks). Thereafter (x) in
the case of clause (i) above, Eurodollar Loans shall no longer be available
until such time as the Administrative Agent notifies the Borrower and the Banks
that the circumstances giving rise to such notice by the Administrative Agent no
longer exist, and any Notice of Borrowing or Notice of Conversion given by the
Borrower with respect to Eurodollar Loans which have not yet been incurred
(including by way of conversion) shall be deemed rescinded by the Borrower or,
at the Borrower's option and upon notice to the Administrative Agent, converted
into a Borrowing of Base Rate Loans of the respective Tranche, (y) in the case
of clause (ii) above, the Borrower shall, subject to the provisions of Section
13.15 (to the extent applicable) pay to such Bank, upon written demand therefor,
such additional amounts (in the form of an increased rate of, or a different
method of calculating, interest or otherwise as such Bank in its reasonable
discretion shall determine) as shall be required to compensate such Bank for
such increased costs or reductions in amounts received or receivable hereunder
(a written notice as to the additional amounts owed to such Bank, showing in
reasonable detail the basis for and the calculation thereof, submitted to the
Borrower by such Bank in good faith shall, absent manifest error, be final and
conclusive and binding on all the parties hereto) and (z) in the case of clause
(iii) above, the Borrower shall take one of the actions specified in Section
1.10(b) as promptly as possible and, in any event, within the time period
required by law. Each of the Administrative Agent and each Bank agrees that if
it gives notice to the Borrower of any of the events described in clause (i),
(ii) or (iii) above, it shall promptly notify the Borrower and, in the case of
any such Bank, the Administrative Agent, if such
-8-
event ceases to exist. If any such event described in clause (iii) above ceases
to exist as to a Bank, the obligations of such Bank to make Eurodollar Loans and
to convert Base Rate Loans into Eurodollar Loans on the terms and conditions
contained herein shall be reinstated.
(b) At any time that any Eurodollar Loan is affected by the
circumstances described in Section 1.10(a)(ii) or (iii), the Borrower may (and
in the case of a Eurodollar Loan affected by the circumstances described in
Section 1.10(a)(iii) shall) either (x) if the affected Eurodollar Loan is then
being made initially or pursuant to a conversion, cancel the respective
Borrowing or convert such Eurodollar Loan to a Base Rate Loan by giving the
Administrative Agent telephonic notice (confirmed in writing) on the same date
that the Borrower was notified by the affected Bank or the Administrative Agent
pursuant to Section 1.10(a)(ii) or (iii) or (y) if the affected Eurodollar Loan
is then outstanding, upon at least one Business Day's written notice to the
Administrative Agent, require the affected Bank to convert such Eurodollar Loan
into a Base Rate Loan, provided that, if more than one Bank is affected at any
--------
time, then all affected Banks must be treated the same pursuant to this Section
1.10(b).
(c) If at any time after the date of this Agreement any Bank
determines that the introduction of or any change in any applicable law or
governmental (including for this purpose any regulatory body with jurisdiction
over such Bank) rule, regulation, order, guideline, directive or request
(whether or not having the force of law) concerning capital adequacy, or any
change in interpretation or administration thereof by any governmental
authority, central bank or comparable agency, in each case introduced or changed
after the date hereof, will have the effect of increasing the amount of capital
required or expected to be maintained by such Bank or any corporation
controlling such Bank based on the existence of such Bank's Commitment or
Commitments hereunder or its obligations hereunder, then the Borrower shall,
subject to the provisions of Section 13.15 (to the extent applicable), pay to
such Bank, upon its written demand therefor, such additional amounts as shall be
required to compensate such Bank or such other corporation for the increased
cost to such Bank or such other corporation or the reduction in the rate of
return to such Bank or such other corporation as a result of such increase of
capital. In determining such additional amounts, each Bank will act reasonably
and in good faith and will use averaging and attribution methods which are
reasonable, provided that such Bank's reasonable good faith determination of
--------
compensation owing under this Section 1.10(c) shall, absent manifest error, be
final and conclusive and binding on all the parties hereto. Each Bank, upon
determining that any additional amounts will be payable pursuant to this Section
1.10(c), will give prompt written notice thereof to the Borrower, which notice
shall show in reasonable detail the basis for and calculation of such additional
amounts, although the failure to give any such notice shall not release or
diminish any of the Borrower's obligations to pay additional amounts pursuant to
this Section 1.10(c) upon the subsequent receipt of such notice.
1.11 Compensation. The Borrower shall, subject to the provisions of
------------
Section 13.15 (to the extent applicable), compensate each Bank, upon its written
request (which request shall set forth in reasonable detail the basis for
requesting and the calculation of such compensation), for all reasonable losses,
expenses and liabilities (including, without limitation, any loss, expense or
liability incurred by reason of the liquidation or reemployment of deposits or
other funds required by such Bank to fund its Eurodollar Loans but excluding any
loss of anticipated profit) which such Bank may sustain: (i) if for any reason
(other than a default by such Bank or the Administrative Agent) a Borrowing of,
or conversion from or into, Eurodollar Loans does not occur on a date specified
therefor in a Notice of Borrowing or Notice of Conversion (whether or not
withdrawn by the Borrower or deemed withdrawn pursuant to Section 1.10(a)) or a
Loan is not continued as a Eurodollar Loan after an election of a new Interest
Period as provided in Section 1.09; (ii) if any repayment (including any
repayment made pursuant to Sections 4.01, 4.02 or 13.12(b), as a result of an
acceleration of the Loans pursuant to Section 10 or as a result of a replacement
of a Bank pursuant to Section 1.13, 4.01 or 13.12(b)) or conversion of any of
its Eurodollar Loans occurs on a date which is not the last day of an Interest
Period with respect thereto; (iii) if any prepayment of any of its Eurodollar
Loans is not made on any date specified in a notice of prepayment given by the
Borrower; or (iv) as a consequence of (x) any other default by the Borrower to
repay its Loans when required by the terms of this Agreement or any Note held by
such Bank or (y) any election made pursuant to Section 1.10(b). A Bank's basis
for requesting compensation pursuant to this Section 1.11 and a Bank's
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calculation of the amount thereof, shall, absent manifest error, be final and
conclusive and binding on all parties hereto.
1.12 Change of Lending Office. Each Bank agrees that on the
------------------------
occurrence of any event giving rise to the operation of Section 1.10(a)(ii) or
(iii), Section 1.10(c), Section 2.05 or Section 4.04 with respect to such Bank,
it will, if requested by the Borrower, use reasonable efforts (subject to
overall policy considerations of such Bank) to designate another lending office
for any Commitments, Loans or Letters of Credit affected by such event, provided
--------
that such designation is made on such terms that such Bank and its lending
office suffer no economic, legal or regulatory disadvantage, with the object of
avoiding the consequence of the event giving rise to the operation of such
Section. Nothing in this Section 1.12 shall affect or postpone any of the
obligations of the Borrower or the right of any Bank provided in Sections 1.10,
2.05 and 4.04.
1.13 Replacement of Banks. (x) If any Bank becomes a Defaulting
--------------------
Bank or otherwise defaults in its obligations to make Loans or fund Unpaid
Drawings, (y) upon the occurrence of any event giving rise to the operation of
Section 1.10(a)(ii) or (iii), Section 1.10(c), Section 2.05 or Section 4.04 with
respect to any Bank which results in such Bank charging to the Borrower
increased costs in excess of those being charged by any other Bank or Banks (so
long as all Banks charging the same amounts (based on their percentages of the
respective Obligations) of such increased costs are treated in the same manner
by the Borrower pursuant to this Section 1.13), or (z) as provided in Section
13.12(b) in the case of certain refusals by a Bank to consent to certain
proposed changes, waivers, discharges or terminations with respect to this
Agreement or any other Credit Document which have been approved by the Required
Banks, the Borrower shall have the right, if no Default or Event of Default will
exist immediately after giving effect to the respective replacement, to either
replace such Bank (the "Replaced Bank") with one or more other Eligible
Transferee or Transferees, none of whom shall constitute a Defaulting Bank at
the time of such replacement (collectively, the "Replacement Bank") and each of
whom shall be required to be reasonably acceptable to the Administrative Agent
or, at the option of the Borrower, to replace only (a) the Revolving Loan
Commitment (and outstandings pursuant thereto) of the Replaced Bank with an
identical Revolving Loan Commitment provided by the Replacement Bank or (b) in
the case of a replacement as provided in Section 13.12(b) where the consent of
the respective Bank is required with respect to less than all Tranches of its
Loans or Commitments, the Commitments and/or outstanding Term Loans of such Bank
in respect of each Tranche where the consent of such Bank would otherwise be
individually required, with identical Commitments and/or Loans of the respective
Tranche provided by the Replacement Bank, provided that (i) at the time of any
--------
replacement pursuant to this Section 1.13, the Replacement Bank shall enter into
one or more Assignment and Assumption Agreements pursuant to Section 13.04(b)
(and with all fees payable pursuant to said Section 13.04(b) to be paid by the
Replacement Bank) pursuant to which the Replacement Bank shall acquire all of
the Commitments and all outstanding Loans (or, in the case of the replacement of
only (a) the Revolving Loan Commitment, the Revolving Loan Commitment and
outstanding Revolving Loans or (b) the outstanding Term Loans, such outstanding
Term Loans) of, and in each case (except for the replacement of only the
outstanding Term Loans of the respective Bank) participations in Letters of
Credit by, the Replaced Bank and, in connection therewith, shall pay to (x) the
Replaced Bank in respect thereof an amount equal to the sum (without
duplication) of (A) an amount equal to the principal of, and all accrued
interest on, all outstanding Loans (or, in the case of the replacement of only
(I) the Revolving Loan Commitment, the outstanding Revolving Loans or (II) the
Term Loans, the outstanding Term Loans) of the Replaced Bank, (B) except in the
case of the replacement of only the outstanding Term Loans of the respective
Replaced Bank, an amount equal to all Unpaid Drawings that have been funded by
(and not reimbursed to) such Replaced Bank, together with all then unpaid
interest with respect thereto at such time and (c) an amount equal to all
accrued, but theretofore unpaid, Fees owing to the Replaced Bank (but only with
respect to the relevant Tranche, in the case of the replacement of less than all
Tranches of Loans then held by the respective Replaced Bank) pursuant to Section
3.01 and (y) except in the case of the replacement of only the outstanding Term
Loans of the respective Replaced Bank, the respective Issuing Bank an amount
equal to such Replaced Bank's Percentage of any Unpaid Drawing (which at such
time remains an Unpaid Drawing) to the extent such amount was not theretofore
funded by such Replaced Bank, and (ii) all obligations of the Borrower due and
owing to the Replaced Bank (other than those (a) specifically described in
clause (i) above in respect of which the assignment purchase price has been, or
is concurrently being, paid or (b)
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relating to any Tranche of Loans and/or Commitments of the respective Replaced
Bank which will remain outstanding after giving effect to the respective
replacement) shall be paid in full to such Replaced Bank concurrently with such
replacement. Upon the execution of the respective Assignment and Assumption
Agreements, the payment of amounts referred to in clauses (i) and (ii) above
and, if so requested by the Replacement Bank, delivery to the Replacement Bank
of the appropriate Note or Notes executed by the Borrower, the Replacement Bank
shall become a Bank hereunder and, unless the respective Replaced Bank continues
to have outstanding Term Loans or a Revolving Loan Commitment hereunder, the
Replaced Bank shall cease to constitute a Bank hereunder, except with respect to
indemnification provisions under this Agreement (including, without limitation,
Sections 1.10, 1.11, 2.05, 4.04, 13.01 and 13.06), which shall survive as to
such Replaced Bank. Upon the request of the Borrower, the Administrative Agent
agrees to use reasonable efforts to assist the Borrower in finding one or more
Replacement Banks in circumstances where the Borrower desires to replace one or
more Banks for the reasons specified in clauses (x), (y) and/or (z) of the first
sentence of this Section 1.13; provided that the Borrower hereby acknowledges
--------
and agrees that the Administrative Agent is not representing or undertaking that
one or more Replacement Banks will actually be found.
SECTION 2. Letters of Credit.
-----------------
2.01 Letters of Credit. (a) Subject to and upon the terms and
-----------------
conditions set forth herein, the Borrower may request that any Issuing Bank
issue, at any time and from time to time on and after the Initial Borrowing Date
and prior to the Revolving Loan Maturity Date, (x) for the account of the
Borrower and for the benefit of any holder (or any trustee, agent or other
similar representative for any such holders) of L/C Supportable Indebtedness of
the Borrower or any of its Subsidiaries, an irrevocable sight standby letter of
credit, in a form customarily used by such Issuing Bank or in such other form as
has been approved by such Issuing Bank (each such sight standby letter of
credit, a "Standby Letter of Credit") in support of such L/C Supportable
Indebtedness and (y) for the account of the Borrower and for the benefit of
sellers of goods or materials to the Parent or any of its Subsidiaries, an
irrevocable sight documentary letter of credit in a form customarily used by
such Issuing Bank or in such other form as has been approved by such Issuing
Bank (each such documentary letter of credit, a "Trade Letter of Credit", and
each such Trade Letter of Credit and each Standby Letter of Credit, together
with the letters of credit described in clause (e) below, each a "Letter of
Credit") in support of commercial transactions of the Parent and its
Subsidiaries.
(b) Subject to and upon the terms and conditions set forth herein,
the Administrative Agent hereby agrees that it will (and at the Borrower's
request each other Issuing Bank may, at its option, agree that it will), at any
time and from time to time on or after the Initial Borrowing Date and prior to
the 30th day before the Revolving Loan Maturity Date, following its receipt of
the respective Letter of Credit Request, issue for the account of the Borrower
one or more Letters of Credit (x) in the case of Standby Letters of Credit, in
support of such L/C Supportable Indebtedness of the Borrower or any of its
Subsidiaries as is permitted to remain outstanding without giving rise to a
Default or an Event of Default and (y) in the case of Trade Letters of Credit,
in support of sellers of goods or materials as referenced in Section 2.01(a),
provided that the respective Issuing Bank (including the Administrative Agent)
--------
shall be under no obligation to issue any Letter of Credit of the types
described above in Section 2.01(a) or this Section 2.01(b) if at the time of
such issuance:
(i) any order, judgment or decree of any governmental authority or
arbitrator shall purport by its terms to enjoin or restrain such Issuing
Bank from issuing such Letter of Credit or any requirement of law
applicable to such Issuing Bank or any request or directive (whether or not
having the force of law) from any governmental authority with jurisdiction
over such Issuing Bank shall prohibit, or request that such Issuing Bank
refrain from, the issuance of letters of credit generally or such Letter of
Credit in particular or shall impose upon such Issuing Bank with respect to
such Letter of Credit any restriction or reserve or capital requirement
(for which such Issuing Bank is not otherwise compensated) not in effect on
the date hereof, or any unreimbursed loss, cost or expense which was not
applicable, in effect or known to such Issuing Bank as of the date hereof
and which such Issuing Bank reasonably and in good xxxxx xxxxx material to
it;
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(ii) such Issuing Bank shall have received notice from any Bank prior
to the issuance of such Letter of Credit of the type described in the
penultimate sentence of Section 2.02(b); or
(iii) a Bank Default exists, unless such Issuing Bank has entered
into arrangements satisfactory to it and the Borrower to eliminate such
Issuing Bank's risk with respect to the Bank which is the subject of the
Bank Default, including by cash collateralizing such Bank's Percentage of
the Letter of Credit Outstandings.
(c) Letters of Credit may be issued at the request of the Borrower in
Dollars or in other currencies acceptable to the Administrative Agent and the
respective Issuing Bank. It is understood and agreed that the currencies
designated on Schedule 2.01 with respect to the Existing Letters of Credit are
acceptable for purposes of such Existing Letters of Credit.
(d) Notwithstanding the foregoing, (i) no Letter of Credit shall be
issued the Stated Amount of which, when added to the Letter of Credit
Outstandings (exclusive of Unpaid Drawings which are repaid on the date of, and
prior to the issuance of, the respective Letter of Credit) at such time would
exceed either (x) $100,000,000 or (y) when added to the aggregate principal
amount of all Revolving Loans and Swingline Loans then outstanding, an amount
equal to the Total Available Revolving Loan Commitment at such time, (ii) each
Letter of Credit shall by its terms terminate (x) in the case of Standby Letters
of Credit, on or before the earlier of (A) the date which occurs 12 months after
the date of the issuance thereof (although any Standby Letter of Credit may (1)
be extendable, and, if requested by the Borrower, shall be automatically
renewable unless the respective Issuing Bank gives at least 30 days prior
written notice to the respective beneficiary, for successive periods of up to 12
months, but not beyond the tenth Business Day prior to the Revolving Loan
Maturity Date, on terms acceptable to the Issuing Bank thereof or (2) if agreed
by the respective Issuing Bank and the Administrative Agent, have such later
termination date as may be so agreed for the respective Letter of Credit, so
long as the termination date thereof meets the requirements of following clause
(B)) and (B) the tenth Business Day prior to the Revolving Loan Maturity Date,
and (y) in the case of Trade Letters of Credit, on or before the earlier of (A)
the date which occurs 180 days after the date of the issuance thereof and (B)
the date which is 30 days prior to the Revolving Loan Maturity Date, and (iii)
the Stated Amount of each Letter of Credit upon issuance shall be not less than
$25,000 or such lesser amount as is acceptable to the respective Issuing Bank.
(e) Schedule 2.01 hereto contains a description of all letters of
credit issued pursuant to the Existing Credit Agreement and outstanding on the
Effective Date. Each such letter of credit, including any extension or renewal
thereof (each, as amended from time to time in accordance with the terms thereof
and hereof, an "Existing Letter of Credit") shall for all purposes of this
Agreement constitute a "Letter of Credit", issued, for purposes of Section
2.04(a), by the respective Issuing Bank on the Initial Borrowing Date.
(f) Upon any amendment, modification or extension of any outstanding
Letter of Credit, the respective Issuing Bank shall give notice to the
Administrative Agent of such amendment, modification or extension on the date of
effectiveness thereof (and, promptly upon receipt of such notice, the
Administrative Agent shall send a copy of such notice to the Banks) and shall
promptly send to the Administrative Agent a true and correct copy of the
documentation governing the respective amendment, modification or extension.
2.02 Letter of Credit Requests. (a) Whenever the Borrower desires
-------------------------
that a Letter of Credit be issued for its account, the Borrower shall give the
Administrative Agent and the respective Issuing Bank at least five Business
Days' (or such shorter period as is acceptable to the respective Issuing Bank)
written notice thereof. Each notice shall be in the form of Exhibit C (each, a
"Letter of Credit Request").
(b) The making of each Letter of Credit Request shall be deemed to be
a representation and warranty by the Borrower that such Letter of Credit may be
issued in accordance with, and will not violate the requirements of, Section
2.01(d). Unless the respective Issuing Bank has received notice from any Bank
before it issues a Letter of Credit that one or more of the conditions specified
in Section 5 or Section 6, as applicable, are
-12-
not then satisfied, or that the issuance of such Letter of Credit would violate
Section 2.01(d), then such Issuing Bank shall issue the requested Letter of
Credit for the account of the Borrower in accordance with such Issuing Bank's
usual and customary practices. Upon the issuance of any Letter of Credit, (x)
the respective Issuing Bank shall notify the Administrative Agent, on the date
of the issuance thereof, of such issuance and shall, on such date, cause to be
delivered to the Administrative Agent (which delivery may be by telecopier) a
copy of the Letter of Credit so issued and (y) promptly after its receipt of the
notice described in the immediately preceding clause (x), the Administrative
Agent shall notify each Bank of the respective issuance.
2.03 Letter of Credit Participations. (a) Immediately upon the
-------------------------------
issuance by any Issuing Bank of any Letter of Credit, such Issuing Bank shall be
deemed to have sold and transferred to each Bank with a Revolving Loan
Commitment, other than such Issuing Bank (each such Bank, in its capacity under
this Section 2.03, a "Participant"), and each such Participant shall be deemed
irrevocably and unconditionally to have purchased and received from such Issuing
Bank, without recourse or warranty, an undivided interest and participation, to
the extent of such Participant's Percentage, in such Letter of Credit, each
drawing made thereunder and the obligations of the Borrower under this Agreement
with respect thereto, and any security therefor or guaranty pertaining thereto.
Upon any change in the Revolving Loan Commitments or Percentages of the Banks
pursuant to Sections 1.13, 13.04 or 13.12, it is hereby agreed that, with
respect to all outstanding Letters of Credit and Unpaid Drawings, there shall be
an automatic adjustment to the participations pursuant to this Section 2.03 to
reflect the new Percentages of the assignor and assignee Bank or of all Banks
with Revolving Loan Commitments, as the case may be.
(b) In determining whether to pay under any Letter of Credit, the
respective Issuing Bank shall have no obligation relative to the other Banks
other than to confirm that any documents required to be delivered under such
Letter of Credit appear to have been delivered and that they appear to
substantially comply on their face with the requirements of such Letter of
Credit. Any action taken or omitted to be taken by any Issuing Bank under or in
connection with any Letter of Credit if taken or omitted in the absence of gross
negligence or willful misconduct, shall not create for such Issuing Bank any
resulting liability to the Borrower, the Parent, any other Subsidiary of the
Parent or any Bank.
(c) In the event that any Issuing Bank makes any payment under any
Letter of Credit and the Borrower shall not have reimbursed such amount in full
to such Issuing Bank pursuant to Section 2.04(a), such Issuing Bank shall
promptly notify the Administrative Agent, which shall promptly notify each
Participant, of such failure, and each Participant shall promptly and
unconditionally pay to such Issuing Bank the amount of such Participant's
Percentage of such unreimbursed payment in Dollars and in same day funds. If
the Administrative Agent so notifies, prior to 12:00 Noon (New York time) on any
Business Day, any Participant required to fund a payment under a Letter of
Credit, such Participant shall make available to such Issuing Bank in Dollars
such Participant's Percentage of the amount of such payment on such Business Day
(or, if notice is given after 12:00 Noon (New York time) on any Business Day, on
the next Business Day) in same day funds. If and to the extent such Participant
shall not have so made its Percentage of the amount of such payment available to
such Issuing Bank, such Participant agrees to pay to such Issuing Bank,
forthwith on demand such amount, together with interest thereon, for each day
from such date until the date such amount is paid to such Issuing Bank at the
overnight Federal Funds Rate. The failure of any Participant to make available
to such Issuing Bank its Percentage of any payment under any Letter of Credit
shall not relieve any other Participant of its obligation hereunder to make
available to such Issuing Bank its Percentage of any Letter of Credit on the
date required, as specified above, but no Participant shall be responsible for
the failure of any other Participant to make available to such Issuing Bank such
other Participant's Percentage of any such payment.
(d) Whenever any Issuing Bank receives a payment of a reimbursement
obligation as to which it has received any payments from the Participants
pursuant to clause (c) above, such Issuing Bank shall forward such payment to
the Administrative Agent, which in turn shall distribute to each Participant
which has paid its Percentage thereof, in Dollars and in same day funds, an
amount equal to such Participant's share (based upon the aggregate amount funded
by such Participant to the aggregate amount funded by all Participants) of the
principal
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amount of such reimbursement obligation and interest thereon accruing after the
purchase of the respective participations.
(e) Upon the request of any Participant, each Issuing Bank shall
furnish to such Participant copies of any Letter of Credit issued by it and such
other documentation as may reasonably be requested by such Participant. In
addition, each Issuing Bank (other than BTCo) shall deliver to the
Administrative Agent, promptly on the first Business Day of each week, by
telecopier transmission, the aggregate daily Stated Amount available to be drawn
under the outstanding Trade Letters of Credit issued by such Issuing Bank for
the previous week. The Administrative Agent shall, within 10 days after the
last day of each calendar month, deliver to each Participant a report setting
forth for such period the aggregate daily Stated Amount available to be drawn
under all outstanding Trade Letters of Credit during the preceding calendar
month.
(f) The obligations of the Participants to make payments to each
Issuing Bank with respect to Letters of Credit issued by it shall be irrevocable
and not subject to any qualification or exception whatsoever and shall be made
in accordance with the terms and conditions of this Agreement under all
circumstances, including, without limitation, any of the following
circumstances:
(i) any lack of validity or enforceability of this Agreement or any
of the other Credit Documents;
(ii) the existence of any claim, setoff, defense or other right which
the Borrower or any of its Subsidiaries may have at any time against a
beneficiary named in a Letter of Credit, any transferee of any Letter of
Credit (or any Person for whom any such transferee may be acting), the
Administrative Agent, any Bank, any Issuing Bank, any Participant, or any
other Person, whether in connection with this Agreement, any Letter of
Credit, the transactions contemplated herein or any unrelated transactions
(including any underlying transaction between the Borrower or any
Subsidiary of the Borrower and the beneficiary named in any such Letter of
Credit);
(iii) any draft, certificate or any other document presented under
any Letter of Credit proving to be forged, fraudulent, invalid or
insufficient in any respect or any statement therein being untrue or
inaccurate in any respect;
(iv) the surrender or impairment of any security for the performance
or observance of any of the terms of any of the Credit Documents; or
(v) the occurrence of any Default or Event of Default.
2.04 Agreement to Repay Letter of Credit Drawings. (a) The Borrower
--------------------------------------------
hereby agrees to reimburse the respective Issuing Bank, by making payment to the
Administrative Agent, in Dollars (in the case of any payment or disbursement
made by the respective Issuing Bank in any currency other than Dollars, in an
amount equal to the Dollar Equivalent of such payment or disbursement as
determined by the respective Issuing Bank on the date of such payment or
disbursement) and in immediately available funds at the Payment Office, for any
payment or disbursement made by it under any Letter of Credit (each such amount,
so paid until reimbursed, an "Unpaid Drawing"), no later than two Business Days
after the Administrative Agent notifies the Borrower of such payment or
disbursement, with interest on the amount so paid or disbursed by such Issuing
Bank, to the extent not reimbursed prior to 12:00 Noon (New York time) on the
date of such payment or disbursement, from and including the date paid or
disbursed to but excluding the date such Issuing Bank was reimbursed by the
Borrower therefor at a rate per annum which shall be the Base Rate in effect
from time to time plus the relevant Applicable Margin for Revolving Loans
maintained as Base Rate Loans, provided, however, that to the extent such
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amounts are not reimbursed prior to 12:00 Noon (New York time) on the second
Business Day following notice to the Borrower by the Administrative Agent of
such payment or disbursement, interest shall thereafter accrue on the amounts so
paid or disbursed by such Issuing Bank (and until reimbursed by the Borrower) at
a rate
-14-
per annum which shall be the Base Rate in effect from time to time plus the
relevant Applicable Margin for Revolving Loans maintained as Base Rate Loans
plus 2%, in each such case, with interest to be payable on demand; provided
--------
further, that it is understood and agreed, however, that the notice referred to
-------
above in this clause (a) and in the immediately preceding proviso shall not be
required to be given if a Default or an Event of Default under Section 10.05
shall have occurred and be continuing (in which case the Unpaid Drawings shall
be due and payable immediately without presentment, demand, protest or notice of
any kind (all of which are hereby waived by each Credit Party) and shall bear
interest at the rate provided in the foregoing proviso on and after the first
Business Day following the respective Drawing). The respective Issuing Bank
shall give the Borrower prompt notice of each Drawing under any Letter of
Credit, provided that the failure to give any such notice shall in no way
--------
affect, impair or diminish the Borrower's obligations hereunder.
(b) The obligations of the Borrower under this Section 2.04 to
reimburse the respective Issuing Bank with respect to drawings on Letters of
Credit (each, a "Drawing") (including, in each case, interest thereon) shall be
absolute and unconditional under any and all circumstances and irrespective of
any setoff, counterclaim or defense to payment which the Borrower may have or
have had against any Bank (including in its capacity as issuer of the Letter of
Credit or as Participant), or any nonapplication or misapplication by the
beneficiary of the proceeds of such Drawing, the respective Issuing Bank's only
obligation to the Borrower being to confirm that any documents required to be
delivered under such Letter of Credit appear to have been delivered and that
they appear to substantially comply on their face with the requirements of such
Letter of Credit. Any action taken or omitted to be taken by any Issuing Bank
under or in connection with any Letter of Credit if taken or omitted in the
absence of gross negligence or willful misconduct as determined by a court of
competent jurisdiction, shall not create for such Issuing Bank any resulting
liability to the Borrower, the Parent or any other Subsidiary of the Parent.
2.05 Increased Costs. If at any time after the date of this
---------------
Agreement, the introduction of or any change in any applicable law, rule,
regulation, order, guideline or request or in the interpretation or
administration thereof by any governmental authority charged with the
interpretation or administration thereof, or compliance by any Issuing Bank or
any Participant with any request or directive by any such authority (whether or
not having the force of law), shall either (i) impose, modify or make applicable
any reserve, deposit, capital adequacy or similar requirement against letters of
credit issued by any Issuing Bank or participated in by any Participant, or (ii)
impose on any Issuing Bank or any Participant any other conditions relating,
directly or indirectly, to this Agreement or any Letter of Credit; and the
result of any of the foregoing is to increase the cost to any Issuing Bank or
any Participant of issuing, maintaining or participating in any Letter of
Credit, or reduce the amount of any sum received or receivable by any Issuing
Bank or any Participant hereunder or reduce the rate of return on its capital
with respect to Letters of Credit (except for changes in the rate of tax on, or
determined by reference to, the net income or profits of such Issuing Bank or
such Participant, or any franchise tax or gross receipts tax based on or imposed
in lieu of the net income or net profits taxes of such Bank or Participant, in
either case pursuant to the laws of the United States of America, the
jurisdiction in which it is organized or in which its principal office or
applicable lending office is located or any subdivision thereof or therein), but
without duplication of any amounts payable in respect of Taxes pursuant to
Section 4.04(a), then, upon demand to the Borrower by such Issuing Bank or any
Participant (a copy of which demand shall be sent by such Issuing Bank or such
Participant to the Administrative Agent) and subject to the provisions of
Section 13.15 (to the extent applicable), the Borrower shall promptly pay to
such Issuing Bank or such Participant such additional amount or amounts as will
compensate such Bank promptly for such increased cost or reduction in the amount
receivable or reduction on the rate of return on its capital. Any Issuing Bank
or any Participant, upon determining that any additional amounts will be payable
pursuant to this Section 2.05, will give prompt written notice thereof to the
Borrower, which notice shall include a certificate submitted to the Borrower by
such Issuing Bank or such Participant (a copy of which certificate shall be sent
by such Issuing Bank or such Participant to the Administrative Agent), setting
forth in reasonable detail the basis for and the calculation of such additional
amount or amounts necessary to compensate such Issuing Bank or such Participant.
The certificate required to be delivered pursuant to this Section 2.05 shall, if
delivered in good faith and absent manifest error, be final and conclusive and
binding on the Borrower.
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2.06 European Monetary Union. (a) With respect to any Letter of
-----------------------
Credit issued in a currency other than Dollars, and for purposes of calculating
the Dollar Equivalent of such currency from time to time (as otherwise required
pursuant to this Agreement), if, as a result of the implementation of European
monetary union, (i) such currency ceases to be lawful currency of the nation
issuing the same and is replaced by a European single currency or (ii) such
currency and a European single currency are at the same time recognized by the
central bank or comparable authority of the nation issuing such currency as
lawful currency of such nation and the Administrative Agent or the Required
Banks shall so request in a notice delivered to the Borrower, then for purposes
of all calculations of Letter of Credit Outstandings and the Stated Amounts of
outstanding Letters of Credit, and for any other calculation of the Dollar
Equivalent of any amount denominated in the respective such currency, such
calculations shall be made on the basis of the European single currency
(translating the amount denominated in the respective local currency to such
European single currency at the exchange rate recognized by the European Central
Bank for the purpose of implementing European monetary union).
(b) The Borrower agrees, at the request of any Issuing Bank, to
compensate such Issuing Bank for any reasonable loss, cost, expense or reduction
in return that shall be incurred or sustained by such Issuing Bank (other than
as a result of such Issuing Bank's gross negligence or willful misconduct as
determined by a court of competent jurisdiction) as a result of the
implementation of European monetary union, that would not have been incurred or
sustained but for the transactions provided for herein and that, to the extent
that such loss, cost, expense or reduction is of a type generally applicable to
letters of credit similar to the Letters of Credit hereunder is generally being
requested from account parties subject to similar provisions. A certificate of
an Issuing Bank setting forth (x) the amount or amounts necessary to compensate
such Issuing Bank, (y) describing the nature of the loss or expense sustained or
incurred by such Issuing Bank as a consequence thereof and (z) setting forth a
reasonably detailed explanation of the calculation thereof shall be delivered to
the Borrower and shall be conclusive absent manifest error. The Borrower shall
pay to such Issuing Bank the amount shown as due on any such certificate within
10 days after receipt thereof.
(c) The Borrower agrees, at the request of the Administrative Agent or
the Required Banks, at the time of or at any time following the implementation
of European monetary union, to enter into an agreement amending this Agreement
(subject to obtaining the approval of the Required Banks) in such manner as the
Administrative Agent or the Required Banks shall specify in order to reflect the
implementation of such monetary union to place the parties hereto in the
position they would have been in had such monetary union not been implemented.
SECTION 3. Commitment Commission; Fees; Reductions of Commitment.
-----------------------------------------------------
3.01 Fees. (a) The Borrower agrees to pay to the Administrative
----
Agent for distribution to each Bank with a Revolving Loan Commitment a
commitment commission (the "Commitment Commission") for the period from the
Effective Date to and including the Revolving Loan Maturity Date (or such
earlier date as the Total Revolving Loan Commitment shall have been terminated),
computed at a rate per annum equal to the Applicable Commitment Commission
Percentage, as in effect from time to time, on the daily average Unutilized
Revolving Loan Commitment of such Bank. Accrued Commitment Commission shall be
due and payable quarterly in arrears on each Quarterly Payment Date and on the
Revolving Loan Maturity Date or such earlier date upon which the Total Revolving
Loan Commitment is terminated.
(b) The Borrower agrees to pay to the Administrative Agent for
distribution to each Bank with a Revolving Loan Commitment (based on their
respective Percentages) a fee in respect of each Letter of Credit issued
hereunder (the "Letter of Credit Fee"), for the period from and including the
date of issuance of such Letter of Credit to and including the termination of
such Letter of Credit, computed at a rate per annum equal to the Applicable
Margin for Revolving Loans maintained as Eurodollar Loans (as provided in the
definition of Applicable Margin) as in effect from time to time of the daily
Stated Amount of such Letter of Credit. Accrued Letter of Credit Fees shall be
due and payable quarterly in arrears on each Quarterly Payment Date and upon the
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first day on or after the termination of the Total Revolving Loan Commitment
upon which no Letters of Credit remain outstanding.
(c) The Borrower agrees to pay to each Issuing Bank, for its own
account, a facing fee in respect of each Letter of Credit issued by such Issuing
Bank for its account hereunder (the "Facing Fee") for the period from and
including the date of issuance of such Letter of Credit to and including the
termination of such Letter of Credit, computed at a rate per annum equal to 1/4
of 1% of the daily Stated Amount of such Letter of Credit; provided that in no
--------
event shall the annual Facing Fee with respect to any Letter of Credit be less
than $500, it being agreed that, on the date of issuance of any Letter of Credit
and on each anniversary thereof prior to the termination of such Letter of
Credit, $500 will be paid toward the next year's Facing Fees for such Letter of
Credit, which amount shall be credited in direct order to the Facing Fees which
would otherwise be payable with respect to such Letter of Credit in the
succeeding annual period. Accrued Facing Fees shall be due and payable
quarterly in arrears on each Quarterly Payment Date and on the date upon which
the Total Revolving Loan Commitment has been terminated and such Letter of
Credit has been terminated in accordance with its terms. Notwithstanding
anything to the contrary contained in this Agreement, to the extent that under
and pursuant to the Existing Credit Agreement the Borrower has paid advance
facing fees to any Issuing Bank with respect to any Existing Letter of Credit,
there shall be credited against the Facing Fees due to such Issuing Bank under
this Agreement the amount of such advance facing fees which related to periods
after the Initial Borrowing Date.
(d) The Borrower shall pay, upon honor of each drawing under,
issuance of, or amendment to, any Letter of Credit, such amount as shall at the
time of such event be the administrative charge which the respective Issuing
Bank is generally imposing in connection with such occurrence with respect to
letters of credit.
(e) The Borrower shall pay to each of the Agents, for their own
account, such other fees as have been agreed to in writing by the Borrower and
the Agents.
3.02 Voluntary Termination of Unutilized Commitments. (a) Upon at
-----------------------------------------------
least one Business Day's prior notice to the Administrative Agent at its Notice
Office (which notice the Administrative Agent shall promptly transmit to each of
the Banks), the Borrower shall have the right, at any time or from time to time,
without premium or penalty, to terminate the Total Unutilized Revolving Loan
Commitment, in whole or in part, in a minimum amount of $5,000,000 and in
integral multiples of $1,000,000 in excess thereof in the case of partial
reductions to the Total Revolving Loan Commitment, provided that each such
--------
reduction shall apply proportionately (based on the Percentages of the various
Banks) to permanently reduce the Revolving Loan Commitment of each Bank with
such a Commitment; provided that without regard to the minimum requirements set
--------
forth above, the Borrower may, at any time, terminate a portion of the Total
Unutilized Revolving Loan Commitment in an amount equal to the amount of the
Blocked Commitments then required pursuant to clause (A) of the definition of
Blocked Commitments.
(b) In the event of certain refusals by a Bank as provided in Section
13.12(b) to consent to certain proposed changes, waivers, discharges or
terminations with respect to this Agreement which have been approved by the
Required Banks, the Borrower may, subject to the applicable requirements of
Section 13.12(b) and upon five Business Days' written notice to the
Administrative Agent at its Notice Office (which notice the Administrative Agent
shall promptly transmit to each of the Banks), terminate all of the Revolving
Loan Commitment of such Bank so long as all Loans, together with accrued and
unpaid interest, fees and all other amounts, owing to such Bank (other than
amounts owing in respect of Term Loans maintained by such Bank, if such Term
Loans are not being repaid at such time pursuant to Sections 4.01 and 13.12(b))
are repaid concurrently with the effectiveness of such termination (at which
time Schedule I shall be deemed modified to reflect such changed amounts), and
at such time, unless the respective Bank continues to have outstanding Term
Loans hereunder, such Bank shall no longer constitute a "Bank" for purposes of
this Agreement, except with respect to indemnification provisions under this
Agreement (including, without limitation, Sections 1.10, 1.11, 2.05, 4.04, 13.01
and 13.06), which shall survive as to such repaid Bank.
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3.03 Mandatory Reduction of Commitments. (a) The Total Commitment
----------------------------------
(and the Term Loan Commitment and the Revolving Loan Commitment of each Bank)
shall terminate in its entirety on May 15, 1998 unless the Initial Borrowing
Date shall have occurred on or prior to such date.
(b) In addition to any other mandatory commitment reductions pursuant
to this Section 3.03, the Total Term Loan Commitment (and the Term Loan
Commitment of each Bank) shall terminate in its entirety on the Initial
Borrowing Date (after giving effect to the making of the Term Loans on such
date).
(c) In addition to any other mandatory commitment reductions pursuant
to this Section 3.03, the Total Revolving Loan Commitment (and the Revolving
Loan Commitment of each Bank) shall terminate in its entirety on the Revolving
Loan Maturity Date.
(d) In addition to any other mandatory commitment reductions pursuant
to this Section 3.03, on each date after the Initial Borrowing Date upon which a
mandatory prepayment of Term Loans pursuant to Section 4.02(c), (d) or (f) is
required (and exceeds in amount the aggregate principal amount of Term Loans
then outstanding) or would be required if Term Loans were then outstanding, the
Total Revolving Loan Commitment shall be permanently reduced by the amount, if
any, by which the amount required to be applied pursuant to said Section
(determined as if an unlimited amount of Term Loans were actually outstanding)
exceeds the aggregate principal amount of Term Loans then outstanding.
(e) In addition to any other mandatory commitment reductions pursuant
to this Section 3.03, on the last day of each calendar month occurring 180 or
more days after the entering into of the first Permitted Receivables Transaction
after the Initial Borrowing Date, the Total Revolving Loan Commitment shall be
permanently reduced by an amount (so long as greater than zero) equal to the
amount of the Blocked Commitment which has continued in effect for the period of
180 consecutive days immediately prior to the last day of the respective
calendar month (for this purpose, taking the lowest amount of the Blocked
Commitment during said 180 day period); provided that the amount of any
--------
reduction to the Total Revolving Loan Commitment on the last day of any calendar
month pursuant to this Section 3.03(e) shall be deemed (for purposes of making
subsequent determinations pursuant to this Section 3.03(e) only) applied to
reduce the amount of the Blocked Commitment as same was in effect from time to
time during the 180 consecutive days immediately before the last day of such
calendar month.
(f) Each reduction to the Total Term Loan Commitment and the Total
Revolving Loan Commitment pursuant to this Section 3.03 (or pursuant to Section
4.02) shall be applied proportionately to reduce the Term Loan Commitment or the
Revolving Loan Commitment, as the case may be, of each Bank with such a
Commitment.
SECTION 4. Prepayments; Payments; Taxes.
----------------------------
4.01 Voluntary Prepayments. (a) The Borrower shall have the right
---------------------
to prepay the Loans pursuant to this Section 4.01(a), and the right to allocate
such prepayments to Revolving Loans and/or Term Loans as the Borrower elects,
without premium or penalty, in whole or in part at any time and from time to
time on the following terms and conditions: (i) the Borrower shall give the
Administrative Agent prior to 1:30 P.M. (New York time) at its Notice Office at
least one Business Day's prior written notice (or telephonic notice promptly
confirmed in writing) of its intent to prepay Loans (or same day notice in the
case of Swingline Loans provided such notice is given prior to 2:00 P.M. (New
York time)), whether Term Loans, Revolving Loans or Swingline Loans shall be
prepaid, the amount of such prepayment and the Types of Loans to be prepaid and,
in the case of Eurodollar Loans, the specific Borrowing or Borrowings pursuant
to which made, which notice the Administrative Agent shall promptly transmit to
each of the Banks; (ii) each prepayment shall be in an aggregate principal
amount of at least $1,000,000 (or $100,000 in the case of Swingline Loans) or
such lesser amount of a Borrowing which is outstanding, provided that if any
--------
partial prepayment of Eurodollar Loans made pursuant to any Borrowing shall
reduce the outstanding Eurodollar Loans made pursuant to such Borrowing to an
amount
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less than (1) in the case of Term Loans, $5,000,000 and (2) in the case of
Revolving Loans, $2,000,000, then such Borrowing may not be continued as a
Borrowing of Eurodollar Loans and any election of an Interest Period with
respect thereto given by the Borrower shall have no force or effect; (iii) at
the time of any prepayment of Eurodollar Loans pursuant to this Section 4.01(a)
on any day other than the last day of an Interest Period applicable thereto, the
Borrower shall pay the amounts required pursuant to Section 1.11; and (iv)
except as provided in Section 4.01(b), each prepayment pursuant to this Section
4.01(a) in respect of any Loans made pursuant to a Borrowing shall be applied
pro rata among the Loans comprising such Borrowing; provided that at the
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Borrower's election in connection with any prepayment of Revolving Loans
pursuant to this Section 4.01(a), such prepayment shall not be applied to any
Revolving Loan of a Defaulting Bank. Each prepayment of principal of Term Loans
pursuant to this Section 4.01(a) shall be applied to reduce the then remaining
Scheduled Repayments of the Term Loans pro rata based upon the then remaining
--------
principal amounts of the Scheduled Repayments after giving effect to all prior
reductions thereto (in other words, a prepayment of 10% of the total outstanding
principal amount of Term Loans shall result in a reduction of 10% in the amount
of each remaining Scheduled Repayment); provided further that, at the time of
--------
any prepayment of Term Loans pursuant to this Section 4.01(a), the Borrower may
elect by written notice to the Administrative Agent that such payment be applied
(x) first, in direct order of maturity to any Scheduled Repayments of the Term
Loans which shall be due and payable within 12 calendar months of the date of
prepayment and (y) to the extent the amount of the respective prepayment exceeds
the amount to be applied pursuant to preceding clause (x), as otherwise provided
above by this sentence (without giving effect to this proviso, but after giving
effect to the payments applied pursuant to clause (x) of this proviso).
(b) In the event of certain refusals by a Bank as provided in Section
13.12(b) to consent to certain proposed changes, waivers, discharges or
terminations with respect to this Agreement which have been approved by the
Required Banks, the Borrower may, upon 5 Business Days' written notice to the
Administrative Agent at its Notice Office (which notice the Administrative Agent
shall promptly transmit to each of the Banks) repay all Loans, together with
accrued and unpaid interest, Fees, and other amounts (including any amounts
payable under Section 1.11) owing to such Bank (or owing to such Bank with
respect to each Tranche which gave rise to the need to obtain such Bank's
individual consent) in accordance with said Section 13.12(b) so long as (A) in
the case of the repayment of Revolving Loans of any Bank pursuant to this
Section 4.01(b) the Revolving Loan Commitment of such Bank is terminated
concurrently with such repayment pursuant to Section 3.02(b) (at which time
Schedule I shall be deemed modified to reflect the changed Revolving Loan
Commitments) and (B) the consents required by Section 13.12(b) in connection
with the repayment pursuant to this Section 4.01(b) have been obtained. Any
repayment of Term Loans pursuant to this Section 4.01(b) shall only apply to
reduce the then remaining Scheduled Repayments of such Tranche to the extent the
Term Loans so repaid are not replaced pursuant to Section 13.12(b), and with any
such reductions to reduce the then remaining Scheduled Repayments of the
respective Tranche pro rata based upon the then remaining principal amounts of
--- ----
the Scheduled Repayments of the respective Tranche after giving effect to all
prior reductions thereto unless otherwise specifically agreed to by the Required
Banks.
4.02 Mandatory Repayments. (a) On any day on which the sum of the
--------------------
aggregate outstanding principal amount of the Revolving Loans and Swingline
Loans and the Letter of Credit Outstandings (after giving effect to any
repayments thereof theretofore made on such date) exceeds the Total Available
Revolving Loan Commitment as then in effect, the Borrower shall prepay on such
day principal of Swingline Loans and, after the Swingline Loans have been repaid
in full, Revolving Loans in an amount equal to such excess. If, after giving
effect to the prepayment of all outstanding Swingline Loans and Revolving Loans,
the aggregate amount of the Letter of Credit Outstandings exceeds the Total
Available Revolving Loan Commitment as then in effect, the Borrower shall pay to
the Administrative Agent at the Payment Office on such day an amount of cash or
Cash Equivalents equal to the amount of such excess (up to a maximum amount
equal to the Letter of Credit Outstandings at such time), such cash or Cash
Equivalents to be held as security for all obligations of the Borrower to Banks
hereunder in a cash collateral account to be established by the Administrative
Agent.
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(b) In addition to any other mandatory repayments pursuant to this
Section 4.02, on each date set forth below, the Borrower shall be required to
repay that principal amount of Term Loans, to the extent then outstanding, as is
set forth opposite such date (each such repayment, as the same may be reduced as
provided in Sections 4.01 and 4.02(g), a "Scheduled Repayment," and each such
date, a "Scheduled Repayment Date"):
Scheduled Repayment Date Amount
------------------------------------------ --------------------------------------
July 25, 1998 $ 625,000
October 25, 1998 $ 625,000
January 25, 1999 $ 625,000
April 25, 1999 $ 625,000
July 25, 1999 $ 625,000
October 25, 1999 $ 625,000
January 25, 2000 $ 625,000
April 25, 2000 $ 625,000
July 25, 2000 $ 625,000
October 25, 2000 $ 625,000
January 25, 2001 $ 625,000
April 25, 2001 $ 625,000
July 25, 2001 $ 625,000
October 25, 2001 $ 625,000
January 25, 2002 $ 625,000
April 25, 2002 $ 625,000
July 25, 2002 $ 625,000
October 25, 2002 $ 625,000
January 25, 2003 $ 625,000
April 25, 2003 $ 625,000
July 25, 2003 $29,687,500
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October 25, 2003 $29,687,500
January 25, 2004 $29,687,500
April 25, 2004 $29,687,500
July 25, 2004 $29,687,500
October 25, 2004 $29,687,500
January 25, 2005 $29,687,500
The Term Loan $29,687,500
Maturity Date
(c) In addition to any other mandatory repayments pursuant to this
Section 4.02, on each date after the Initial Borrowing Date upon which the
Parent or any of its Subsidiaries receives any cash proceeds from any incurrence
by the Parent or any of its Subsidiaries of Indebtedness for borrowed money
(other than (x) Subordinated Indebtedness, (y) Indebtedness pursuant to any
Permitted Receivables Transaction and (z) Indebtedness for borrowed money
permitted to be incurred pursuant to Section 9.04 as such Section is in effect
on the Effective Date), an amount equal to the Applicable Debt Percentage of the
cash proceeds (net of underwriting discounts and commissions and other costs
associated therewith including, without limitation, legal fees and expenses) of
the respective incurrence of Indebtedness shall be applied as a mandatory
repayment of principal of outstanding Term Loans in accordance with the
requirements of Sections 4.02(g).
(d) In addition to any other mandatory repayments pursuant to this
Section 4.02, on each date after the Initial Borrowing Date upon which the
Parent or any of its Subsidiaries receives proceeds from any Asset Sale, an
amount equal to 100% of the Net Sale Proceeds therefrom shall be applied as a
mandatory repayment of principal of outstanding Term Loans in accordance with
the requirements of Section 4.02(g); provided that so long as no Default or
--------
Event of Default then exists, up to $10,000,000 in any fiscal year of the Parent
of Net Sale Proceeds of Asset Sales effected in accordance with Section 9.02
shall not be required to be so applied on the date of the receipt thereof to the
extent that such Net Sale Proceeds shall be used to effect Permitted
Acquisitions, to purchase replacement equipment and/or make additional Capital
Expenditures, in each case in accordance with the requirements of this
Agreement, within 180 days following such date; provided further, that if all or
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any portion of such Net Sale Proceeds not required to be applied pursuant to the
preceding proviso are not so utilized within 180 days after the date of the
receipt of such Net Sale Proceeds, then such remaining portion not so utilized
shall be applied on the date which is 180 days after the date of receipt of such
Net Sale Proceeds in accordance with the requirements of this Section 4.02(d)
(without regard to this, or the immediately preceding, proviso); provided
--------
further, that concurrently with each delivery of financial statements pursuant
-------
to Section 8.01(b) or (c), the Borrower shall also deliver a certificate setting
forth in reasonable detail the calculation of (x) the dates and amount of Net
Sale Proceeds for each Assets Sale which occurred during the respective fiscal
quarter or year, which Net Sale Proceeds were not applied to repay principal of
outstanding Term Loans (or to reduce the Total Revolving Loan Commitment
pursuant to Section 3.03(d)) as a result of the first proviso to this Section
4.02(d), (y) the amount of Net Sale Proceeds from Asset Sales previously
effected (identifying the date of the respective Asset Sales) applied during the
respective fiscal quarter or year pursuant to the first proviso to this Section
4.02(d) and (z) certifying any amount of Net Sale Proceeds in respect in which
the 180 day period referenced in the second proviso to this Section 4.02(d) has
lapsed during the respective fiscal quarter or year without the Net Sale
Proceeds having been applied as contemplated by the first proviso to this
Section 4.02(d).
(e) In addition to any other mandatory repayments pursuant to this
Section 4.02, on each date upon which the Parent or any of its Subsidiaries
receives Permitted Receivables Transaction Proceeds (but
-21-
excluding in any event proceeds of subsequent sales of Receivables Facility
Assets pursuant to the Permitted Receivables Transaction after the initial sale
of Receivables Facility Assets has occurred thereunder except to the extent of
the respective sale increases the Permitted Receivables Transaction Outstandings
to an amount in excess of the previous highest amount of Permitted Receivables
Transaction Outstandings theretofore in effect), the Borrower shall be required
to apply an amount equal to 100% of such Permitted Receivables Transaction
Proceeds as a mandatory repayment of principal of outstanding Revolving Loans in
accordance with the requirements of Section 4.02(g). Notwithstanding anything to
the contrary contained in the immediately preceding sentence, in cases where the
amount required to be repaid on any date pursuant to the immediately preceding
sentence would be less then $1,000,000, the Borrower may defer the respective
required repayment until the first date (if such date is after the date of the
respective receipt of proceeds pursuant to the Permitted Receivables
Transaction) upon which the aggregate amount which would be required to be
applied pursuant to Section 4.02(e) (giving effect to the receipt of proceeds on
such date, together with any such proceeds received prior to such date which
have not yet been applied pursuant to Section 4.02(e) and any receipts
thereafter) would equal or exceed $1,000,000.
(f) In addition to any other mandatory repayments pursuant to this
Section 4.02, within 10 days following each date after the Initial Borrowing
Date on which the Parent or any of its Subsidiaries receives any proceeds from
any Recovery Event, an amount equal to 100% of the proceeds of such Recovery
Event (net of reasonable costs including, without limitation, legal costs and
expenses, and taxes incurred in connection with such Recovery Event) shall be
applied as a mandatory repayment of principal of outstanding Term Loans in
accordance with the requirements of Section 4.02(g), provided that (x) the first
--------
$10,000,000 of net proceeds from Recovery Events received by the Parent and/or
its Subsidiaries during any fiscal year of the Parent shall be excluded and (y)
to the extent the net proceeds from Recovery Events received by the Parent and
its Subsidiaries during any fiscal year of the Parent exceed $10,000,000, then
so long as no Default or Event of Default then exists and to the extent that (i)
the amount of such proceeds which are in excess of $10,000,000, together with
other cash available to the Borrower and permitted to be spent by it on Capital
Expenditures during the relevant period pursuant to Section 9.08 (without regard
to Section 9.08(c)(i) in the case of such other cash), equals 100% of the cost
of replacement or restoration of the properties or assets in respect of which
such proceeds were paid as determined by the Borrower in good faith, (ii) the
Borrower has delivered to the Administrative Agent a certificate on or prior to
the date the payment would otherwise be required pursuant to this Section
4.02(f) in the form described in clause (x) above and also certifying its
determination as required by preceding clause (i), and (iii) the Borrower has
delivered to the Administrative Agent such evidence as the Administrative Agent
may reasonably request in form and substance reasonably satisfactory to the
Administrative Agent establishing that the Borrower reasonably expects to have
sufficient resources available to it from time to time, including, without
limitation, cash, revenues and insurance proceeds, such that the Borrower can
reasonably be expected to satisfy all obligations and expenses of the Borrower
and its Subsidiaries (including, without limitation, all debt service
requirements, including pursuant to this Agreement) without any unreasonable
delay or extension thereof, for the period from the date of the respective
casualty, condemnation or other event giving rise to the Recovery Event and
continuing through the completion of the replacement or restoration of
respective properties or assets, then the entire amount of the proceeds of such
Recovery Event shall either (x) be deposited with the Administrative Agent
pursuant to a cash collateral arrangement reasonably satisfactory to the
Administrative Agent and the Borrower whereby such proceeds shall be disbursed
to the Borrower or its order from time to time as needed to pay actual costs
incurred by it in connection with the replacement or restoration of the
respective properties or assets (pursuant to such reasonable certification
requirements as may be established by the Administrative Agent) or (y) at the
option of the Borrower, applied to repay principal of outstanding Revolving
Loans and to increase the amount of the Blocked Commitment pursuant to clause
(B) of the definition thereof, provided further that at any time while an Event
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of Default has occurred and is continuing, the Required Banks may direct the
Administrative Agent (in which case the Administrative Agent shall, and is
hereby authorized by the Borrower to, follow said directions) to apply any or
all proceeds then on deposit in such collateral account to the repayment of
Obligations hereunder in the same manner as proceeds would be applied pursuant
to the Security Agreement, and provided further, that if all or any portion of
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such proceeds not required to be applied to the repayment of Term Loans
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pursuant to clause (y) of the second preceding proviso are either (A) not so
used or committed to be so used within one year after the date of the respective
Recovery Event or (B) if committed to be used within one year after the date of
receipt of such Net Sale Proceeds and not so used within two years after the
date of the respective Recovery Event then, in either such case, such remaining
portion not used or committed to be used in the case of preceding clause (A) and
not used in the case of preceding clause (B) shall be applied on the date which
is the first anniversary of the date of the respective Recovery Event in the
case of clause (A) above or the date occurring two years after the date of the
respective Recovery Event in the case of clause (B) above as a mandatory
repayment of principal of outstanding Term Loans in accordance with the
requirements of Section 4.02(g).
(g) With respect to each repayment of Loans required by this Section
4.02, the Borrower may designate the Types of Loans of the respective Tranche
which are to be repaid and, in the case of Eurodollar Loans, the specific
Borrowing or Borrowings of the respective Tranche pursuant to which made,
provided that: (i) repayments of Eurodollar Loans pursuant to this Section 4.02
--------
may only be made on the last day of an Interest Period applicable thereto unless
all Eurodollar Loans of the respective Tranche with Interest Periods ending on
such date of required repayment and all Base Rate Loans of the respective
Tranche have been paid in full; (ii) if any repayment of Eurodollar Loans made
pursuant to a single Borrowing shall reduce the outstanding Eurodollar Loans
made pursuant to such Borrowing to an amount less than $2,000,000, such
Borrowing shall be converted at the end of the then current Interest Period into
a Borrowing of Base Rate Loans; and (iii) each repayment of any Loans comprising
a Borrowing shall be applied pro rata among such Loans. In the absence of a
--- ----
designation by the Borrower as described in the preceding sentence, the
Administrative Agent shall, subject to the above, make such designation in its
sole discretion with a view, but no obligation, to minimize breakage costs owing
under Section 1.11. Furthermore, each amount required to be applied to Term
Loans pursuant to Sections 4.02(c), (d) and (f) shall reduce the then remaining
Scheduled Repayments pro rata based upon the then remaining principal amounts of
--- ----
the Scheduled Repayments after giving effect to all prior reductions thereto.
Notwithstanding the foregoing provisions of this Section 4.02, if any time the
mandatory prepayment of Term Loans pursuant to Section 4.02(d) above would
result, after giving effect to the procedures set forth above, in the Borrower
incurring breakage costs under Section 1.11 as a result of Eurodollar Loans
being prepaid other than on the last day of an Interest Period applicable
thereto (the "Affected Eurodollar Loans"), then the Borrower may in its sole
discretion initially deposit a portion (up to 100%) of the amounts that
otherwise would have been paid in respect of the Affected Eurodollar Loans with
the Administrative Agent (which deposit must be equal in amount to the amount of
Affected Eurodollar Loans not immediately prepaid) to be held as security for
the obligations of the Borrower hereunder pursuant to a cash collateral
agreement to be entered into in form and substance satisfactory to the
Administrative Agent, with such cash collateral to be directly applied upon the
first occurrence (or occurrences) thereafter of the last day of an Interest
Period applicable to the relevant Term Loans that are Eurodollar Loans (or such
earlier date or dates as shall be requested by the Borrower), to repay an
aggregate principal amount of such Term Loans equal to the Affected Eurodollar
Loans not initially repaid pursuant to this sentence. Notwithstanding anything
to the contrary contained in the immediately preceding sentence, all amounts
deposited as cash collateral pursuant to the immediately preceding sentence
shall be held for the sole benefit of the Banks whose Term Loans would otherwise
have been immediately repaid with the amounts deposited and upon the taking of
any action by the Administrative Agent or the Banks pursuant to the remedial
provisions of Section 10, any amounts held as cash collateral pursuant to this
Section 4.02(g) shall, subject to the requirements of applicable law, be
immediately applied to the Term Loans.
(h) Notwithstanding anything to the contrary contained elsewhere in
this Agreement, (i) all then outstanding Swingline Loans shall be repaid in full
on the Swingline Expiration Date and (ii) all other then outstanding Loans shall
be repaid in full on the respective Maturity Date for such Loans.
4.03 Method and Place of Payment. Except as otherwise specifically
---------------------------
provided herein, all payments under this Agreement or under any Note shall be
made to the Administrative Agent for the account of the Bank or Banks entitled
thereto not later than 12:00 Noon (New York time) on the date when due and shall
be made in Dollars in immediately available funds at the Payment Office of the
Administrative Agent. Whenever any payment to be made hereunder or under any
Note shall be stated to be due on a day which is not a Business Day,
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the due date thereof shall be extended to the next succeeding Business Day and,
with respect to payments of principal, interest shall be payable at the
applicable rate during such extension.
4.04 Net Payments; Taxes. (a) All payments made by any Credit Party
-------------------
hereunder or under any Note will be made without setoff, counterclaim or other
defense. Except as provided in Section 4.04(b), all such payments will be made
free and clear of, and without deduction or withholding for, any present or
future taxes, levies, imposts, duties, fees, assessments or other charges of
whatever nature now or hereafter imposed by any jurisdiction or by any political
subdivision or taxing authority thereof or therein with respect to such payments
(but excluding, except as provided in the second succeeding sentence, any tax
imposed on or measured by the net income or net profits of a Bank or any
franchise taxes or gross receipts taxes that are imposed in lieu of net income
or net profits taxes pursuant to the laws of the jurisdiction in which it is
organized or the jurisdiction in which the principal office or applicable
lending office of such Bank is located or any subdivision thereof or therein)
and all interest, penalties or similar liabilities with respect to such non-
excluded taxes, levies, imposts, duties, fees, assessments or other charges (all
such non-excluded taxes, levies, imposts, duties, fees, assessments or other
charges being referred to collectively as "Taxes"). If any Taxes are so levied
or imposed, the Borrower agrees to pay the full amount of such Taxes, and such
additional amounts as may be necessary so that every payment of all amounts due
under this Agreement or under any Note, after withholding or deduction for or on
account of any Taxes, will not be less than the amount provided for herein or in
such Note. If any amounts are payable in respect of Taxes pursuant to the
preceding sentence, the Borrower agrees to reimburse each Bank, upon the written
request of such Bank, for taxes imposed on or measured by the net income or net
profits of such Bank pursuant to the laws of the jurisdiction in which such bank
is organized or in which the principal office or applicable lending office of
such Bank is located or under the laws of any political subdivision or taxing
authority of any such jurisdiction in which such bank is organized or in which
the principal office or applicable lending office of such Bank is located and
for any withholding or income or similar taxes as such Bank shall determine are
payable by, or withheld from, such Bank in respect of such amounts so paid to or
on behalf of such Bank pursuant to the preceding sentence and in respect of any
amounts paid to or on behalf of such Bank pursuant to this sentence. The
Borrower will furnish to the Administrative Agent within 45 days after the date
the payment of any Taxes is due pursuant to applicable law certified copies of
tax receipts evidencing such payment by the Borrower. The Borrower agrees to
indemnify and hold harmless each Bank, and reimburse such Bank upon its written
request, for the amount of any Taxes so levied or imposed and paid by such Bank.
(b) Each Bank that is not a United States person (as such term is
defined in Section 7701(a)(30) of the Code) agrees to deliver to the Borrower
and the Administrative Agent on or prior to the Effective Date, or in the case
of a Bank that is an assignee or transferee of an interest under this Agreement
pursuant to Section 1.13 or 13.04 (unless the respective Bank was already a Bank
hereunder immediately prior to such assignment or transfer), on or before the
date of such assignment or transfer to such Bank, (i) two accurate and complete
original signed copies of Internal Revenue Service Form 4224 or 1001 (or
successor forms) certifying to such Bank's entitlement to a complete exemption
from United States withholding tax with respect to payments to be made under
this Agreement and under any Note, or (ii) if the Bank is not a "bank" within
the meaning of Section 881(c)(3)(A) of the Code and cannot deliver either
Internal Revenue Service Form 1001 or 4224 pursuant to clause (i) above, (x) a
certificate substantially in the form of Exhibit D (any such certificate, a
"Section 4.04(b)(ii) Certificate") and (y) two accurate and complete original
signed copies of Internal Revenue Service Form W-8 (or successor form)
certifying to such Bank's entitlement to a complete exemption from United States
withholding tax with respect to payments of interest to be made under this
Agreement and under any Note. In addition, each Bank agrees that from time to
time after the Effective Date, when a lapse in time or change in circumstances
renders the previous certification obsolete or inaccurate in any material
respect, it will deliver to the Borrower and the Administrative Agent two new
accurate and complete original signed copies of Internal Revenue Service Form
4224 or 1001, or Form W-8 and a Section 4.04(b)(ii) Certificate, as the case may
be, and such other forms as may be required in order to confirm or establish the
entitlement of such Bank to a continued exemption from or reduction in United
States withholding tax with respect to payments under this Agreement and any
Note, or it shall immediately notify the Borrower and the Administrative Agent
of its inability to deliver any such Form or Certificate, in which case such
Bank shall not be required to deliver any such Form or Certificate
-24-
pursuant to this Section 4.04(b) until such time as such inability ceases to
exist. Notwithstanding anything to the contrary contained in Section 4.04(a),
but subject to Section 13.04(b) and the immediately succeeding sentence, (x) the
Borrower shall be entitled, to the extent it is required to do so by law, to
deduct or withhold income or similar taxes imposed by the United States (or any
political subdivision or taxing authority thereof or therein) from interest,
Fees or other amounts payable hereunder for the account of any Bank which is not
a United States person (as such term is defined in Section 7701(a)(30) of the
Code) to the extent that such Bank has not provided to the Borrower on or prior
to the date so required U.S. Internal Revenue Service Forms that establish a
complete exemption from such deduction or withholding and (y) the Borrower shall
not be obligated pursuant to Section 4.04(a) to gross-up payments to be made to
a Bank in respect of income or similar taxes imposed by the United States if (I)
such Bank has not provided to the Borrower on or prior to the date so required
the Internal Revenue Service Forms required to be provided to the Borrower
pursuant to this Section 4.04(b) or (II) in the case of a payment, other than
interest, to a Bank described in clause (ii) above, to the extent that such
Forms do not establish a complete exemption from withholding of such taxes.
Notwithstanding anything to the contrary contained in the preceding sentence or
elsewhere in this Section 4.04 and except as set forth in Section 13.04(b), the
Borrower agrees to pay additional amounts and to indemnify each Bank in the
manner set forth in Section 4.04(a) (without regard to the identity of the
jurisdiction requiring the deduction or withholding) in respect of any Taxes
deducted or withheld by it as described in the immediately preceding sentence as
a result of any changes after the Effective Date (or, if later, the date such
Bank became party to this Agreement) in any applicable law, treaty, governmental
rule, regulation, guideline or order, or in the interpretation thereof, relating
to the deducting or withholding of such Taxes.
(c) Upon the reasonable request of the Borrower, any Bank that is a
United States person (as such term is defined in Section 7701(a)(30) of the
Code) shall provide the Borrower with two accurate and complete original signed
copies of an Internal Revenue Service Form W-9, or any successor form that such
Bank is entitled to provide at such time in order to comply with United States
backup withholding tax requirements.
(d) If the Borrower pays any additional amount under this Section
4.04 to a Bank and such Bank determines in its sole discretion that it has
actually received or realized in connection therewith any refund or any
reduction of, or credit against, its Tax liabilities in or with respect to the
taxable year in which the additional amount is paid, such Bank shall pay to the
Borrower an amount that the Bank shall, in its sole discretion, determine is
equal to the net benefit, after tax, which was obtained by the Bank in such year
as a consequence of such refund, reduction or credit. The decision as to
whether a Bank claims any refund or credit or files any amended tax return shall
be in the sole discretion of such Bank. Nothing in this Section 4.04(d) shall
require a Bank to disclose or detail the basis of its calculation of the amount
of any tax benefit or any other amount to the Borrower or to any other party or
to disclose or provide a copy of any tax return.
SECTION 5. Conditions Precedent to Loans on the Initial Borrowing
------------------------------------------------------
Date. The obligation of each Bank to make Loans, and the obligation of each
----
Issuing Bank to issue Letters of Credit, on the Initial Borrowing Date, is
subject at the time of the making of such Loans or the issuance of such Letters
of Credit to the satisfaction of the following conditions:
5.01 Execution of Agreement; Notes. On or prior to the Initial
-----------------------------
Borrowing Date (i) the Effective Date shall have occurred and (ii) there shall
have been delivered to the Administrative Agent for the account of each of the
Banks which has requested Notes the appropriate Term Note and/or Revolving Note
executed by the Borrower and, if requested, to the Swingline Bank the Swingline
Note executed by the Borrower; in each case in the amount, maturity and as
otherwise provided herein.
5.02 Fees, etc. On the Initial Borrowing Date, the Borrower shall
----------
have paid to the Agents and the Banks all costs, fees and expenses (including,
without limitation, reasonable legal fees and expenses) payable to the
respective Agents and the Banks to the extent then required to be paid by the
Parent or the Borrower.
-25-
5.03 Opinions of Counsel. On the Initial Borrowing Date, the
-------------------
Administrative Agent shall have received (i) from Xxxxxx & Xxxxxxx, special
counsel to the Parent, the Borrower and their respective Subsidiaries, an
opinion addressed to each of the Agents and the Banks, dated the Initial
Borrowing Date and covering the matters set forth in Exhibit E-1, (ii) from
Ballard, Spahr, Xxxxxxx & Ingersoll, special counsel to the Parent, the Borrower
and their respective Subsidiaries, an opinion addressed to each of the Agents
and the Banks, dated the Initial Borrowing Date and covering the matters set
forth in Exhibit E-2, (iii) from Xxxxxxx X. Xxxxxxx, Esq., general counsel to
the Parent, an opinion addressed to each of the Agents and the Banks, dated the
Initial Borrowing Date and covering the matters set forth in Exhibit E-3 and
(iv) from local counsel in States where one or more Mortgaged Properties are
located, opinions addressed to each of the Agents and the Banks and dated the
Initial Borrowing Date, which opinions shall be in form and substance reasonably
satisfactory to the Agents and shall cover the perfection of the security
interests granted in respect of the portion of the Collateral located in such
respective jurisdiction pursuant to the Security Agreement and the Mortgages and
such other matters incident to the transactions contemplated herein as the
Agents may reasonably request.
5.04 Corporate Documents; Proceedings; etc. (a) On the Initial
--------------------------------------
Borrowing Date, the Administrative Agent shall have received a certificate,
dated the Initial Borrowing Date, signed by the chairman of the board, the
president, any vice president, the chief financial officer or the treasurer of
each Credit Party, and attested to by the Secretary or any Assistant Secretary
of such Credit Party, in the form of Exhibit F with appropriate insertions,
together with (in the case of the Parent, the Borrower and each First-Tier
Subsidiary of the Parent or the Borrower) copies of the certificate of
incorporation and by-laws of such Credit Party and the resolutions of such
Credit Party referred to in such certificate, and the foregoing shall be
reasonably acceptable to the Agents.
(b) All corporate and legal proceedings and all material instruments
and agreements in connection with the transactions contemplated by this
Agreement and the other Documents shall be reasonably satisfactory in form and
substance to the Agents, and the Administrative Agent shall have received all
information and copies of all documents and papers, including records of
corporate proceedings, governmental approvals, good standing certificates and
bring-down telegrams or facsimiles, if any, which the Agents reasonably may have
requested in connection therewith, such documents and papers where appropriate
to be certified by proper corporate or governmental authorities.
5.05 Shareholders' Agreements; Debt Agreements; Tax Sharing
------------------------------------------------------
Agreements. On the Initial Borrowing Date, there shall have been delivered to
----------
the Administrative Agent, true and correct copies, certified as true and
complete by an appropriate officer of the Parent, of (i) all written agreements
entered into by the Parent or any of its Subsidiaries governing the terms and
relative rights of its capital stock and any written agreements entered into by
shareholders relating to any such entity with respect to its capital stock
(collectively, the "Shareholders' Agreements"), (ii) each agreement evidencing
or relating to Indebtedness of the Parent or any of its Subsidiaries with an
aggregate principal amount outstanding (or available to be borrowed) of
$10,000,000 or more which is to remain outstanding after giving effect to the
incurrence of Loans on the Initial Borrowing Date (collectively, the "Debt
Agreements") and (iii) all tax sharing, tax allocation and other similar
agreements entered into by the Parent or any of its Subsidiaries (collectively,
the "Tax Sharing Agreements"); all of which Shareholders' Agreements, Debt
Agreements and Tax Sharing Agreements shall be in form and substance reasonably
satisfactory to the Agents and the Required Banks and shall be in full force and
effect on the Initial Borrowing Date.
5.06 Recapitalization Transaction - Initial Stock Repurchases. On
--------------------------------------------------------
the Initial Borrowing Date, (i) there shall have been delivered to the
Administrative Agent true and correct copies of all Initial Stock Repurchase
Documents, certified as such by an officer of the Parent, all of which shall be
in form and substance reasonably satisfactory to the Agents and the Required
Banks, (ii) the Initial Stock Repurchases, including all of the terms and
conditions thereof, shall have been duly approved by the board of directors of
the Parent and all Initial Stock Repurchase Documents shall have been duly
executed and delivered by the parties thereto and shall be in full force and
effect, (iii) each of the conditions precedent to the consummation of the
Initial Stock
-26-
Repurchases as set forth in the Initial Stock Repurchase Documents shall have
been satisfied, and not waived except with the consent (which shall not be
unreasonably withheld) of each Agent and the Required Banks, to the satisfaction
of each Agent and the Required Banks, (iv) the Initial Stock Repurchases shall
have been, or shall contemporaneously (and in any event on the Initial Borrowing
Date) be, consummated in all material respects in accordance with the Initial
Stock Repurchase Documents and all applicable laws, rules and regulations and
(v) the aggregate cost (for this purpose, excluding all costs, fees and expenses
incurred in connection with this Agreement, the Refinancing and expenses
incurred in connection with the Initial Stock Repurchases) of all of the Initial
Stock Repurchases shall not exceed $500,000,000.
5.07 Refinancing Transaction - Repayment and Termination of the
----------------------------------------------------------
Existing Credit Agreement. (a) On or prior to the Initial Borrowing Date, the
-------------------------
total commitments under the Existing Credit Agreement shall have been terminated
and all loans thereunder shall have been repaid in full, together with interest
thereon, all letters of credit issued under the Existing Credit Agreement shall
have been terminated or assumed as Existing Letters of Credit hereunder, and all
other amounts owing pursuant to the Existing Credit Agreement shall have been
repaid in full and the Existing Credit Agreement shall have been terminated and
be of no further force or effect, except for certain indemnity, expense or
similar provisions contained therein which by their express terms are intended
to survive such termination and as are reasonably satisfactory to the
Administrative Agent and the Required Banks, and the Administrative Agent shall
have received evidence in form, scope and substance satisfactory to it that the
matters set forth in this Section 5.07(a) have been satisfied on such date.
(b) On or prior to the Initial Borrowing Date, the creditors under
the Existing Credit Agreement shall have terminated and released all security
interests and Liens on the assets owned by the Parent or any of its Subsidiaries
granted in connection with the Existing Credit Agreement. On or prior to the
Initial Borrowing Date, the Administrative Agent shall have received such
releases of security interests in and Liens on the assets owned by such Persons
as may have been reasonably requested by the Administrative Agent, which
releases shall be in form and substance reasonably satisfactory to the
Administrative Agent. Without limiting the foregoing, there shall have been
delivered (i) proper termination statements (Form UCC-3 or the appropriate
equivalent) for filing under the UCC of each jurisdiction, if any, where a
financing statement (Form UCC-1 or the appropriate equivalent) was (or is
required to be) filed with respect to the Parent or any of its Subsidiaries in
connection with the security interests created with respect to the Existing
Credit Agreement and the documentation related thereto, (ii) terminations or
assignments of any security interest in, or Lien on, any patents, trademarks,
copyrights, or similar interests of the Parent or any of its Subsidiaries on
which filings, if any, have been made, (iii) terminations of all mortgages,
leasehold mortgages and deeds of trust, if any, created with respect to property
of the Parent or any of its Subsidiaries, in each case, to secure the
obligations under the Existing Credit Agreement, all of which shall be in form
and substance reasonably satisfactory to the Administrative Agent and (iv) all
collateral owned by the Parent or any of its Subsidiaries in the possession of
any collateral agent (whether such collateral has been delivered directly to
such collateral agent or reissued by such Person to such collateral agent so
long as no collateral remains in possession of such collateral agent), in its
capacity as collateral agent under the Existing Credit Agreement or the
collateral agent under any security document or any other agent, collateral
agent or trustee for the creditors under the Existing Credit Agreement.
5.08 Existing Indebtedness. On the Initial Borrowing Date and after
---------------------
giving effect to the consummation of the Transaction and the Loans incurred on
the Initial Borrowing Date, the Parent, the Borrower and their respective
Subsidiaries shall have no outstanding Indebtedness for borrowed money except
(i) the Loans (ii) Indebtedness of the Parent in an aggregate outstanding
principal amount not to exceed $325,000,000 represented by the Existing
Convertible Notes, (iii) Indebtedness of the Borrower (with subordinated
guarantees from the Subsidiaries of the Borrower which are Subsidiary
Guarantors) in an aggregate outstanding principal amount not to exceed
$90,000,000 represented by the Existing Senior Subordinated Notes, (iv)
unsecured guarantees given by the Parent, and existing on Initial Borrowing
Date, in connection with certain obligations of one or more Wholly-Owned
Subsidiaries of the Parent, (v) ordinary course trade payables of the Parent,
with a correlating receivable owed to the Parent from the Borrower or a
Subsidiary of the Borrower, (vi) intercompany indebtedness owing to the Borrower
on the Initial Borrowing Date and (vii) other Indebtedness listed on Schedule
-27-
5.08 in an aggregate principal amount not exceeding $135,000,000. On and as of
the Initial Borrowing Date, all Indebtedness described in the immediately
preceding sentence shall remain outstanding after giving effect to the
Transaction and the other transactions contemplated hereby without any default
or event of default (or change of control or similar event which would require
any offers to repurchase same) existing thereunder or arising as a result of the
Transaction and the other transactions contemplated hereby and there shall not
be any amendments or modifications to the Debt Agreements other than as
requested or approved by the Agents or the Required Banks. On and as of the
Initial Borrowing Date, the Agents and the Required Banks shall be satisfied
with the amount of and the terms and conditions of all Indebtedness described
above in this Section 5.08.
5.09 Subsidiaries Guaranty. On the Initial Borrowing Date, each
---------------------
Subsidiary Guarantor shall have duly authorized, executed and delivered a
Subsidiaries Guaranty in the form of Exhibit G (as modified, supplemented or
amended from time to time, the "Subsidiaries Guaranty").
5.10 Pledge Agreement. On the Initial Borrowing Date, each Credit
----------------
Party shall have duly authorized, executed and delivered a Pledge Agreement in
the form of Exhibit H (as modified, supplemented or amended from time to time,
the "Pledge Agreement") and shall have delivered to the Collateral Agent, as
Pledgee, all of the Pledged Securities that are owned by such Credit Party,
which Pledged Securities shall be (x) endorsed in blank in the case of
promissory notes constituting Pledged Securities and (y) accompanied by executed
and undated stock powers, in the case of capital stock constituting Pledged
Securities.
5.11 Security Agreement. On the Initial Borrowing Date, each Credit
------------------
Party shall have duly authorized, executed and delivered a Security Agreement in
the form of Exhibit I (as modified, supplemented or amended from time to time,
the "Security Agreement") covering all of such Credit Party's present and future
Security Agreement Collateral, in each case together with:
(a) proper Financing Statements (Form UCC-1) fully executed for
filing under the UCC or other appropriate filing offices of each
jurisdiction as may be necessary or, in the reasonable opinion of the
Collateral Agent, desirable to perfect the security interests purported to
be created by the Security Agreement;
(b) copies of Certified UCC searches, listing all effective financing
statements that name such Credit Party as debtor (or otherwise encumber any
Collateral) and that are filed in the jurisdictions referred to in clause
(a) above, together with copies of such other financing statements that
name any Credit Party as debtor (or otherwise encumber any Collateral)
(none of which shall cover the Collateral except to the extent evidencing
Permitted Liens or in respect of which the Collateral Agent shall have
received termination statements (Form UCC-3 or such other termination
statements as shall be required by local law) fully executed for filing);
(c) evidence of execution for post-closing filing and recordation of
all other recordings and filings of, or with respect to, the Security
Agreement as may be necessary or, in the reasonable opinion of the
Collateral Agent, desirable to perfect the security interests intended to
be created by the Security Agreement; and
(d) evidence that all other actions necessary or, in the reasonable
opinion of the Collateral Agent, desirable to perfect and protect the
security interests purported to be created by the Security Agreement have
been taken.
5.12 Mortgages; Title Insurance. On the Initial Borrowing Date, the
--------------------------
Collateral Agent shall have received:
(a) fully executed counterparts of mortgages or deeds to secure debt
in each case in form and substance reasonably satisfactory to the Agents
(each, a "Mortgage" and, collectively, the "Mortgages"),
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which Mortgages shall cover such of the Real Property owned or leased by
the Borrower or any Domestic Wholly-Owned Subsidiary as shall be designated
as such on Schedule 5.12 (each, a "Mortgaged Property" and, collectively,
the "Mortgaged Properties"), together with evidence that counterparts of
the Mortgages have been delivered to the title insurance company insuring
the Lien of the Mortgages for recording in all places to the extent
necessary or, in the reasonable opinion of the Collateral Agent, desirable
to effectively create a valid and enforceable first priority mortgage lien
on each Mortgaged Property in favor of the Collateral Agent (or such other
trustee as may be required or desired under local law) for the benefit of
the Secured Creditors, subject only to Permitted Liens; and
(b) with respect to the Parent's corporate headquarters located in
Broomfield, Colorado, only, a mortgagee title insurance policy on such
Mortgaged Property, issued by Chicago Title Insurance Company or such other
title insurers reasonably satisfactory to the Collateral Agent (the
"Mortgage Policy"), in an amount satisfactory to the Agents assuring the
Collateral Agent that the Mortgage on such Mortgaged Property is a valid
and enforceable first priority mortgage lien on such Mortgaged Property,
free and clear of all defects and encumbrances except Permitted
Encumbrances and such Mortgage Policy shall otherwise be in form and
substance reasonably satisfactory to the Agents and shall include, as
appropriate, an endorsement for future advances under this Agreement and
the Notes and for any other matter that the Collateral Agent in its
reasonable discretion may reasonably request, shall not include an
exception for mechanics' liens, and shall provide for affirmative insurance
and such reinsurance as the Collateral Agent in its discretion may
reasonably request.
5.13 Adverse Change, etc. (a) On the Initial Borrowing Date,
--------------------
nothing shall have occurred since March 1, 1997 (and the Banks shall have become
aware of no facts, conditions or other information not previously known), which
an Agent or the Required Banks reasonably believe could have a material adverse
effect on the rights or remedies of any Agent or the Banks, or on the ability of
the Parent, the Borrower or any of their respective Subsidiaries to perform
their respective obligations to the Agents and the Banks or which the Agents or
the Required Banks reasonably believe would have a material adverse effect on
the business, property, assets, liabilities, condition (financial or otherwise)
or prospects of the Parent, the Borrower or any such Person and its Subsidiaries
taken as a whole, in each case after giving effect to the consummation of the
Transaction.
(b) On or prior to the Initial Borrowing Date, all necessary
governmental (domestic and foreign), regulatory and third party approvals and/or
consents in connection with the Transaction, the transactions contemplated by
the Credit Documents and otherwise referred to herein or therein shall have been
obtained and remain in full force and effect and evidence thereof shall have
been provided to the Administrative Agent. Additionally, there shall not exist
any judgment, order, injunction or other restraint issued or filed or a hearing
seeking injunctive relief or other restraint pending or notified prohibiting or
imposing materially adverse conditions upon, or materially delaying, or making
economically unfeasible, the consummation of the Transaction or the transactions
contemplated by this Agreement.
(c) There shall have been no material adverse change, after March 19,
1998 and prior to the completion as determined by the Agents of the primary
syndication of the Loans, to the syndication market for credit facilities
similar in nature to the credit facilities contemplated herein, and there shall
not have occurred and be continuing during such period a material disruption of
or material adverse change in financial, banking or capital markets that would
have a material adverse effect on the primary syndication, in each case as
determined by the Agents in their reasonable discretion. The Parent and the
Borrower shall have fully cooperated in the syndication efforts, including,
without limitation, by promptly providing the Agents with all information deemed
reasonably necessary by them to successfully complete the syndication.
5.14 Litigation. On the Initial Borrowing Date, no litigation by any
----------
entity (private or governmental) shall be pending or threatened with respect to
the Transaction (or any element thereof) or this Agreement or any documentation
executed in connection therewith, or which any Agent or the Required Banks shall
determine is reasonably likely to have a materially adverse effect on the
Transaction or the business,
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property, assets, liabilities, condition (financial or otherwise) or prospects
of the Parent, the Borrower or any such Person and its Subsidiaries taken as a
whole.
5.15 Solvency Certificate; Environmental Analyses; Insurance. On or
-------------------------------------------------------
before the Initial Borrowing Date, the Borrower shall cause to be delivered to
the Administrative Agent (i) a solvency certificate from the chief financial
officer of each of the Parent and the Borrower in the form of Exhibit K hereto,
which shall be addressed to the Agents and the Banks and dated the Initial
Borrowing Date, setting forth the conclusion that, after giving effect to the
Transaction, including the incurrence of all indebtedness contemplated herein,
each of the Parent, the Parent and its Subsidiaries taken as a whole, the
Borrower and the Borrower and its Subsidiaries taken as a whole, is not
insolvent and will not be rendered insolvent by the indebtedness incurred in
connection therewith, and will not be left with unreasonably small capital with
which to engage in their business and will not have incurred debts beyond their
ability to pay such debts as they mature, (ii) environmental and Hazardous
Material disclosure schedules as set forth in Schedule 5.15 with respect to the
Parent and its Subsidiaries, which shall be in form and substance reasonably
satisfactory to the Agents and the Required Banks, and such other information
with respect to environmental matters as may have been reasonably requested by
the Agents, in form and substance satisfactory to the Agents and (iii) a summary
of all insurance policies in form and substance reasonably satisfactory to the
Agents and evidence of insurance complying with the requirements of Section 8.03
for the business and properties of the Parent and its Subsidiaries, in scope,
form and substance reasonably satisfactory to the Agents and the Required Banks
and naming the Collateral Agent as an additional insured and/or loss payee, and
stating that such insurance shall not be cancelled or revised without 30 days
prior written notice by the insurer to the Collateral Agent.
5.16 Notices to Holders of Certain Indebtedness. On the Initial
-------------------------------------------
Borrowing Date, the Borrower shall have delivered to the trustee under the
Existing Senior Subordinated Note Indenture notice to the effect that this
Agreement (and only this Agreement) constitutes the "Credit Agreement" (as
defined in such indenture) and that the Obligations hereunder and under the
other Credit Documents constitute "Senior Debt" (as defined in such indenture),
and the Borrower shall have taken such other actions as may be necessary or, in
the opinion of the Agents, desirable to ensure that the Obligations hereunder
and under the other Credit Documents are entitled to all rights and benefits
afforded "Senior Debt" under such indenture, and the Borrower shall have
delivered to the Administrative Agent evidence thereof in form, scope and
substance satisfactory to the Agents.
SECTION 6. Conditions Precedent to All Credit Events on and After the
----------------------------------------------------------
Initial Borrowing Date. The obligation of each Bank to make Loans (including
----------------------
Loans made on the Initial Borrowing Date but excluding Mandatory Borrowings made
thereafter, which shall be made as provided in Section 1.01(d)), and the
obligation of an Issuing Bank to issue any Letter of Credit, is subject, at the
time of each such Credit Event (except as hereinafter indicated), to the
satisfaction of the following conditions:
6.01 No Default; Representations and Warranties. At the time of each
------------------------------------------
such Credit Event and also after giving effect thereto (i) there shall exist no
Default or Event of Default and (ii) all representations and warranties
contained herein or in any other Credit Document shall be true and correct in
all material respects with the same effect as though such representations and
warranties had been made on the date of the making of such Credit Event (it
being understood and agreed that any representation or warranty which by its
terms is made as of a specified date shall be required to be true and correct in
all material respects only as of such specified date).
6.02 Notice of Borrowing; Letter of Credit Request. (a) Prior to
---------------------------------------------
the making of each Loan (excluding Swingline Loans and Mandatory Borrowings, and
except as otherwise provided in Section 1.10), the Administrative Agent shall
have received the notice required by Section 1.03(a). Prior to the making of
any Swingline Loan, the Swingline Bank shall have received the notice required
by Section 1.03(b)(i).
(b) Prior to the issuance of each Letter of Credit, the
Administrative Agent and the respective Issuing Bank shall have received a
Letter of Credit Request meeting the requirements of Section 2.02.
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6.03 Compliance with Existing Senior Subordinated Note Indenture. So
-----------------------------------------------------------
long as any Existing Senior Subordinated Notes remain outstanding, at the time
of each Credit Event, the Banks shall have received the certificate last
required to be delivered pursuant to Section 8.01(n), and such certificate shall
establish to the satisfaction of the Administrative Agent and Required Banks
that the amount of the requested Credit Event (x) is permitted to be incurred
without causing a violation of Section 4.11 of the Existing Senior Subordinated
Note Indenture and (y) after giving effect thereto, the Debt Incurrence Ratio
(as defined in the Existing Senior Subordinated Note Indenture) would still be
greater than 2.0:1. So long as any Existing Senior Subordinated Notes remain
outstanding, each Credit Event shall comply with the requirements of Section
4.11 of the Existing Senior Subordinated Note Indenture and, if requested by the
Administrative Agent or the Required Banks, the Banks shall have received at the
time of any Credit Event such updated information with respect to the
certificate last required to be delivered pursuant to Section 8.01(n) as may
have been reasonably requested, and any opinion of counsel (which opinion and
counsel shall be required to be reasonably satisfactory to the Administrative
Agent or Required Banks requested same) as may have been reasonably requested to
assure the Banks that the requirements of this Section 6.03 and Section 4.11 of
the Existing Senior Subordinated Note Indenture are satisfied.
The acceptance of the proceeds or benefits of each Credit Event shall
constitute a representation and warranty by the Borrower to each of the Agents
and each of the Banks that all the conditions specified in Section 5 and in this
Section 6 and applicable to such Credit Event exist as of that time (except to
the extent that any of the conditions specified in Section 5 are required to be
satisfactory to or determined by any Bank, the Required Banks and/or the Agents,
(which the Banks and the Agents, by the funding of the respective Loans,
indicate are satisfactory to the Banks and the Agents) or were previously waived
in writing by the Required Banks). All of the Notes, certificates, legal
opinions and other documents and papers referred to in Section 5 and in this
Section 6, unless otherwise specified, shall be delivered to the Administrative
Agent at the Notice Office for the account of each of the Banks and, except for
the Notes, in sufficient counterparts for each of the Banks and shall be in form
and substance reasonably satisfactory to the Agents.
SECTION 7. Representations, Warranties and Agreements. In order to
------------------------------------------
induce the Banks to enter into this Agreement and to make the Loans, and issue
(or participate in) the Letters of Credit as provided herein, each of the Parent
and the Borrower makes the following representations, warranties and agreements,
in each case after giving effect to the Transaction as consummated on the
Initial Borrowing Date, all of which shall survive the execution and delivery of
this Agreement and the Notes and the making of the Loans and issuance of the
Letters of Credit, with the occurrence of each Credit Event on or after the
Initial Borrowing Date being deemed to constitute a representation and warranty
that the matters specified in this Section 7 are true and correct in all
material respects on and as of the Initial Borrowing Date and on the date of
each such Credit Event (it being understood and agreed that any representation
or warranty which by its terms is made as of a specified date shall be required
to be true and correct in all material respects only as of such specified date).
7.01 Corporate Existence and Standing. Each Credit Party and each of
--------------------------------
its Subsidiaries is a corporation (or, in the case of any Subsidiary of the
Parent (other than the Borrower) which is not a corporation such Subsidiary is a
partnership, limited liability company or other business organization under
applicable law) duly organized, validly existing and in good standing under the
laws of its respective jurisdiction of organization and is duly qualified and in
good standing as a foreign organization and is duly authorized to conduct its
business in each jurisdiction in which its business is conducted or proposed to
be conducted excepted where the failure to be so qualified or authorized may not
reasonably be expected to have a Material Adverse Effect.
7.02 Authorization and Validity. Each Credit Party has all requisite
--------------------------
power and authority (corporate and otherwise) and legal right to execute and
deliver each of the Credit Documents to which it is a party and to perform its
obligations thereunder. The execution and delivery by each Credit Party of the
Credit Documents to which it is a party and the performance of its obligations
thereunder have been duly authorized by proper organizational proceedings and
such Credit Documents constitute legal, valid and binding obligations of
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such Credit Party enforceable against it in accordance with the terms thereof,
except as enforceability may be limited by bankruptcy, insolvency or similar
laws affecting the enforcement of creditors' rights generally.
7.03 Compliance with Laws and Contracts. Each Credit Party and each
----------------------------------
of its Subsidiaries has complied in all material respects with all applicable
statutes, rules, regulations, orders and restrictions of any domestic or foreign
government or any instrumentality or agency thereof, having jurisdiction over
the conduct of their respective businesses or the ownership of their respective
properties, except where the failure to so comply could not reasonably be
expected to have a Material Adverse Effect. Neither the execution and delivery
by any Credit Party of the Credit Documents to which it is a party, any
transaction contemplated in such Credit Documents nor compliance with the
provisions of such Credit Documents, including in the case of the Borrower the
application of the proceeds of the Loans and the Letters of Credit will, or at
the relevant time did, (a) violate any law, rule, regulation (including
Regulations T, U and X), order, writ, judgment, injunction, decree or award
binding on such Credit Party or such Subsidiary or such Credit Party's or such
Subsidiary's charter, articles or certificate of incorporation, by-laws or other
organizational documents, (b) violate the provisions of or require the approval
or consent of any party to any indenture, instrument or agreement to which such
Credit Party or such Subsidiary is a party or is subject, or by which it, or its
property, is bound, or conflict with or constitute a default thereunder, or
result in the creation or imposition of any Lien (other than Liens permitted by
the Credit Documents) in, of or on the property of such Credit Party or such
Subsidiary pursuant to the terms of any such indenture, instrument or agreement,
or (c) require any consent of the stockholders of any Person, except for any
violation of, or failure to obtain an approval or consent required under, any
such indenture, instrument or agreement so long as both (x) in cases where the
respective indenture, instrument or agreement relates to outstanding
Indebtedness, the aggregate principal amount of Indebtedness outstanding under
the respective indenture, instrument or agreement shall not exceed $10,000,000
and (y) the aggregate effect of all such violations and failures at any time
shall not be such as could reasonably be expected to have a Material Adverse
Effect. As of the Initial Borrowing Date, Schedule 7.03 contains a true and
correct list of each agreement, contract or instrument of the types described
above in clause (b) where any conflict, right of termination, cancellation or
repayment or prepayment, or any breach or default, exists or will exist after
giving effect to the consummation of the Transaction, in each case briefly
describing the nature of the respective such conflict and the actions proposed
to be taken with respect thereto.
7.04 Governmental Consents. No order, consent, approval,
---------------------
qualification, license, authorization, or validation of, or filing, recording or
registration (excluding filings of financing statements, Mortgages and other
similar filings made, or required to be made, in accordance with the
requirements of the various Security Documents, so long as such filings are made
within the time periods required by this Agreement and the relevant Security
Documents) with, or exemption by, or other action in respect of, any
governmental authority, or any subdivision thereof, any securities exchange or
other Person is or at the relevant time was required to authorize, or is or at
the relevant time was required in connection with the execution, delivery,
consummation or performance of, or the legality, validity, binding effect or
enforceability of, any of the Credit Documents.
7.05 Financial Statements. (a) The Borrower has heretofore
--------------------
furnished to each of the Banks (i) March 1, 1997 audited consolidated financial
statements of the Parent and its Subsidiaries, and (ii) the unaudited
consolidated financial statements of the Parent and its Subsidiaries through
November 29, 1997 (collectively, the "Financial Statements"). Each of the
Financial Statements was prepared in accordance with Agreement Accounting
Principles and fairly presents the consolidated financial condition and
operations of the Parent and its Subsidiaries at such dates and the consolidated
results of their operations for the respective periods then ended (except, in
the case of such unaudited statements, for normal year-end audit adjustments).
(b) (i) On and as of the Initial Borrowing Date, on a pro forma
--- -----
basis, after giving effect to the Transaction and all other transactions
contemplated by the Documents and to all Indebtedness (including the Loans)
being incurred or assumed, and Liens created by each Credit Party in connection
therewith, with respect to the Parent and the Borrower, individually, and each
such Person and its Subsidiaries taken as a whole, (x) the sum
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of the assets, at a fair valuation, of each such Person, individually, and each
such Person and its Subsidiaries taken as a whole, will exceed its or their
debts; (y) it has not incurred and does not intend to incur, nor believes that
it will incur, debts beyond its ability to pay such debts as such debts mature;
and (z) it will have sufficient capital with which to conduct its business. For
purposes of this Section 7.05(b), "debt" means any liability on a claim and
"claim" means (i) right to payment, whether or not such a right is reduced to
judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured,
disputed, undisputed, legal, equitable, secured, or unsecured or (ii) right to
an equitable remedy for breach of performance if such breach gives rise to a
payment, whether or not such right to an equitable remedy is reduced to
judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured
or unsecured.
(c) Except as fully disclosed in the financial statements delivered
pursuant to Section 7.05(a) and except for the consummation of the transactions
to be effected on the Initial Borrowing Date as contemplated by Section 5 of
this Agreement (and the financing of same with Borrowings pursuant to this
Agreement), there were as of the Initial Borrowing Date no liabilities or
obligations with respect to the Parent or any of its Subsidiaries of any nature
whatsoever (whether absolute, accrued, contingent or otherwise and whether or
not due) which, either individually or in the aggregate, would be materially
adverse to the Borrower, the Borrower and its Subsidiaries taken as a whole or
the Parent and its Subsidiaries taken as a whole. As of the Initial Borrowing
Date, none of the Credit Parties knows of any basis for the assertion against it
of any liability or obligation of any nature that is not disclosed in the
financial statements delivered pursuant to Section 7.05(a) which, either
individually or in the aggregate, could reasonably be expected to be materially
adverse to the Borrower, the Borrower and its Subsidiaries taken as a whole or
the Parent and its Subsidiaries taken as a whole.
(d) The Projections were prepared in good faith on a basis consistent
with the financial statements referred to in Section 7.05(a), and, at the time
of the preparation thereof, were based on good faith estimates and assumptions
believed by management of the Parent and the Borrower to be reasonable.
7.06 Material Adverse Change. No material adverse change in the
-----------------------
business, properties, condition (financial or otherwise), performance, prospects
or results of operations of any Credit Party and its Subsidiaries taken as a
whole has occurred since March 1, 1997, and since said date no Material Adverse
Effect has occurred.
7.07 Taxes. Each Credit Party and each of its Subsidiaries has filed
-----
or caused to be filed on a timely basis and in correct form all United States
federal and all material applicable foreign, state, local and other tax returns
which are required to be filed and has paid all material taxes due pursuant to
said returns or pursuant to any material assessment received by such Credit
Party or such Subsidiary, except such taxes, if any, as are being contested in
good faith and as to which adequate reserves have been provided in accordance
with Agreement Accounting Principles and as to which no Lien exists. As of the
date hereof, the United States income tax returns of the Parent on a
consolidated basis have been audited by the Internal Revenue Service through its
Fiscal Year ending August 31, 1994. There are no pending audits or
investigations regarding any Credit Party's or any of its Subsidiaries' federal,
foreign, state or local tax returns other than audits or investigations which in
the aggregate could not reasonably be expected to have a Material Adverse
Effect. No tax liens have been filed and no claims are being asserted with
respect to any such taxes which could reasonably be expected to have a Material
Adverse Effect. The charges, accruals and reserves on the books of each Credit
Party and each of its Subsidiaries in respect of any taxes or other governmental
charges are in accordance with Agreement Accounting Principles.
7.08 Litigation. There is no litigation, arbitration, proceeding,
----------
inquiry or governmental investigation (including, without limitation, by the
Federal Trade Commission) pending or, to the knowledge of any of their officers,
threatened against or affecting any Credit Party or any of its Subsidiaries or
any of their respective properties which could reasonably be expected to have a
Material Adverse Effect or to prevent, enjoin or unduly delay the making of the
Loans or the issuance of Letters of Credit under this Agreement.
-33-
7.09 Subsidiaries. Schedule 7.09 hereto contains an accurate list of
------------
all of the existing Subsidiaries of each Credit Party as of the date hereof
setting forth their respective jurisdiction of incorporation and the percentage
of their capital stock owned by such Credit Party or any of its Subsidiaries and
whether such Subsidiary is a Domestic Subsidiary or Foreign Subsidiary. No
Credit Party nor any of its Subsidiaries is subject to any obligation
(contingent or otherwise) to repurchase or otherwise acquire or retire any
shares of its capital stock or any convertible securities, securities rights or
securities options except as otherwise set forth on Schedule 7.09. Except as
set forth on Schedule 7.09, and except for the Existing Negotiable Securities
and Existing Investments described on Schedule 9.05, as of the date hereof no
Credit Party owns or holds, directly or indirectly, any capital stock or equity
security of, or any equity or partnership interest in any Person other than its
Subsidiaries indicated on Schedule 7.09.
7.10 ERISA. Schedule 7.10 sets forth each Plan; except as disclosed
-----
on Schedule 7.10, as of the date hereof neither the Parent, nor any Subsidiary
of the Parent nor any ERISA Affiliate maintains any Single Employer Plans, and
no Single Employer Plan has any Unfunded Liability which, when added to the
aggregate amount of Unfunded Liabilities with respect to all other Single
Employer Plans, exceeds $750,000. Except as disclosed on Schedule 7.10, neither
the Parent, nor any Subsidiary of the Parent nor any ERISA Affiliate maintains,
or is obligated to contribute to, any Multiemployer Plan or has incurred, or is
reasonably expected to incur, any withdrawal liability to any Multiemployer
Plan. Except as disclosed on Schedule 7.10, each Plan (and each related trust,
insurance contract or fund) complies in all material respects with its terms and
all applicable requirements of law and regulations. Neither the Parent, nor any
Subsidiary of the Parent nor any ERISA Affiliate has, with respect to any Plan,
failed to make any contribution or pay any amount required under Section 412 of
the Code or Section 302 of ERISA or the terms of such Plan, or has applied for
or received a waiver of an accumulated funding deficiency or an extension of any
amortization period, within the meaning of Section 412 of the Code or Section
303 or 304 of ERISA. There are no pending or, to the knowledge of the Parent or
any Subsidiary of the Parent, threatened claims, actions, investigations or
lawsuits against any Plan, any fiduciary thereof, or the Parent, any Subsidiary
of the Parent or any ERISA Affiliate with respect to a Plan. Neither the
Parent, nor any Subsidiary of the Parent nor any ERISA Affiliate has engaged in
any prohibited transaction (as defined in Section 406 of ERISA) in connection
with any Plan which would subject such Person to any material liability. Within
the last five years neither the parent, nor any Subsidiary of the Parent nor any
ERISA Affiliate has engaged in a transaction which resulted in a Single Employer
Plan with an Unfunded Liability being transferred from the Parent, any
Subsidiary of the Parent or any ERISA Affiliate. No Termination Event has
occurred or is reasonably expected to occur with respect to any Plan which is
subject to Title IV of ERISA.
7.11 Defaults. No Default or Event of Default has occurred and is
--------
continuing.
7.12 Federal Reserve Regulations. No Credit Party nor any of its
---------------------------
Subsidiaries is engaged, directly or indirectly, principally, or as one of its
important activities, in the business of extending, or arranging for the
extension of, credit for the purpose of purchasing or carrying Margin Stock. No
Letter of Credit nor any part of the proceeds of any Loan will be used in a
manner which would violate, or result in a violation of, Regulation T,
Regulation U or Regulation X. The fair market value of all Margin Stock
(excluding shares of treasury stock and the Existing Negotiable Securities)
owned by the Parent and its Subsidiaries does not exceed $5,000,000. At the
time of each Credit Event occurring on or after the Initial Borrowing Date, less
than 25% of the value (as determined by any reasonable method) of the assets of
the Parent and its Subsidiaries taken as a whole will constitute Margin Stock.
7.13 Investment Company; Public Utility Holding Company Act. No
------------------------------------------------------
Credit Party nor any of its Subsidiaries is, or after giving effect to any
Credit Event will be, an "investment company" or a company "controlled" by an
"investment company" within the meaning of the Investment Company Act of 1940,
as amended. No Credit Party nor any of its Subsidiaries is a "holding company"
or a "subsidiary company" of a "holding company" or an "affiliate" of a "holding
company" or of a "subsidiary company" of a "holding company", within the meaning
of the Public Utility Holding Company Act of 1935, as amended.
-34-
7.14 Ownership of Properties. Each Credit Party and each of its
-----------------------
Subsidiaries has a subsisting leasehold interest in, or good and marketable
title, free of all Liens, other than Permitted Liens, to all of the properties
and assets reflected in the Financial Statements as being owned by it, except
for assets sold, transferred or otherwise disposed of (x) prior to the Initial
Borrowing Date, in the ordinary course of business since the date thereof or (y)
after the Initial Borrowing Date in accordance with the terms of this Agreement.
Each Credit Party and each of its Subsidiaries owns or possesses rights to use
all licenses, patents, patent applications, copyrights, service marks,
trademarks and trade names necessary to continue to conduct its business as
heretofore conducted, and no such license, patent or trademark has been declared
invalid, been limited by order of any court or by agreement or is the subject to
any infringements, interference or similar proceeding or challenge, except for
proceedings and challenges which could not reasonably be expected to have a
Material Adverse Effect.
7.15 Material Agreements. No Credit Party nor any of its
-------------------
Subsidiaries is a party to any agreement or instrument or subject to any charter
or other corporate restriction which could reasonably be expected to have a
Material Adverse Effect. No Credit Party nor any of its Subsidiaries is in
default in the performance, observance or fulfillment of any of the obligations,
covenants or conditions contained in any agreement to which it is a party, which
default could reasonably be expected to have a Material Adverse Effect.
7.16 Environmental Matters. (a) Each Credit Party and each of its
---------------------
Subsidiaries has complied with, and on the date of each Credit Event is in
compliance with, all applicable Environmental Laws and the requirements of any
permits issued under such Environmental Laws and no such Person is liable for
any material penalties, fines or forfeitures for failure to comply with any of
the foregoing. There are no pending , past or, to the best knowledge of the
Parent and the Borrower, threatened Environmental Claims against any Credit
Party or any of its Subsidiaries or any Real Property owned or operated by any
Credit Party or any of its Subsidiaries. There are no facts, circumstances,
conditions or occurrences relating to the business or operation of any Credit
Party or any of its Subsidiaries, or any Real Property at any time owned or
operated by any Credit Party or any of its Subsidiaries or, to the best
knowledge of the Parent or the Borrower, on any property adjoining or in the
vicinity of any such Real Property, that could reasonably be expected (i) to
form the basis of an Environmental Claim against any Credit Party or any of its
Subsidiaries or any such Real Property or (ii) to cause any such currently owned
or operated Real Property to be subject to any restrictions on the ownership,
occupancy, use or transferability of such Real Property by any Credit Party or
any of its Subsidiaries under any applicable Environmental Law.
(b) Hazardous Materials have not at any time been generated, used,
treated or stored on, or transported to or from, any Real Property owned or
operated by any Credit Party or any of its Subsidiaries where such generation,
use, treatment, storage or transportation could give rise to an Environmental
Claim or has violated or could reasonably be expected to violate any
Environmental Law. Hazardous Materials have not at any time been Released on or
from any Real Property owned or operated by any Credit Party or any of its
Subsidiaries where such Release could give rise to an Environmental Claim or has
violated or could reasonably be expected to violate any applicable Environmental
Law.
(c) Notwithstanding anything to the contrary in this Section 7.16,
the representations made in this Section 7.16 shall only be untrue if the
aggregate effect of all failures, conditions, Releases, Environmental Claims and
noncompliances of the types described above could reasonably be expected to have
a Material Adverse Effect.
7.17 Insurance. Each Credit Party and each of its Subsidiaries
---------
maintains with financially sound and reputable insurance companies insurance on
their Property in such amounts and covering such risks as is consistent with
sound business practice.
7.18 Subordinated Indebtedness. The subordination of all
-------------------------
Subordinated Indebtedness will be enforceable against the holders of such
Subordinated Indebtedness by each Bank (with respect to the Obligations owed to
it) which has not effectively waived the benefits thereof. All Obligations,
including the Obligations to
-35-
pay principal of and interest on the Loans, constitute senior Indebtedness
entitled to the benefits of subordination created by the Subordinated
Indebtedness. The principal of and interest on the Notes and all other
Obligations will constitute "senior debt" as that or any similar term is or
maybe used in any other instrument evidencing or applicable to any other
Subordinated Indebtedness. All Obligations, whether now existing or hereafter
arising, are hereby designated as "Senior Debt" (as defined in the Existing
Senior Subordinated Note Indenture).
7.19 Disclosure. None of the (a) information, exhibits or reports
----------
furnished or to be furnished by any Credit Party or any of its Subsidiaries to
any Agent or to any Bank in connection with the negotiation of the Credit
Documents, or (b) representations or warranties of any Credit Party or any of
its Subsidiaries in this Agreement, the other Credit Documents or any other
document certificate or written statement furnished to any Agent or the Banks by
or on behalf of such Credit Party or such Subsidiary for use in connection with
the transactions contemplated by this Agreement contained, contains or will
contain any untrue statement of a material fact or omitted, omits or will omit
to state a material fact necessary in order to make the statements contained
herein or therein not misleading in light of the circumstances in which the same
were made. There is no fact known to any Credit Party (other than matters of a
general economic nature) that has had or could reasonably be expected to have a
Material Adverse Effect and that has not been disclosed herein or in such other
documents, certificates and statements furnished to the Banks for use in
connection with the transactions contemplated by this Agreement.
7.20 Use of Proceeds. (a) All proceeds of the Term Loans shall be
---------------
used by the Borrower (i) to effect the Transaction and (ii) to pay fees and
expenses related to the Transaction.
(b) All proceeds of all Revolving Loans and all Swingline Loans shall
be used for the Borrower's and its Subsidiaries' general corporate and working
capital purposes including (i) Permitted Acquisitions and (ii) finance the Stock
Repurchases made in accordance with the requirements of Section 9.03.
7.21 The Security Documents. (a) The provisions of the Security
----------------------
Agreement are effective to create in favor of the Collateral Agent for the
benefit of the Secured Creditors a legal, valid and enforceable security
interest in all right, title and interest of the Credit Parties in the Security
Agreement Collateral described therein, and the Security Agreement, upon the
filing of Form UCC-1 financing statements or the appropriate equivalent (which
filings, if this representation is being made more than 10 days after the
Initial Borrowing Date, have been made), create a fully perfected first lien on,
and security interest in, all right, title and interest in all of the Security
Agreement Collateral described therein, subject to no other Liens other than
Permitted Liens, to the extent a security interest in such collateral can be
perfected by the filing of a financing statement. The recordation of the
Assignment of Security Interest in U.S. Patents and Trademarks in the form
attached to the Security Agreement in the United States Patent and Trademark
Office together with filings on Form UCC-1 made pursuant to the Security
Agreement will be effective, under applicable law, to perfect the security
interest granted to the Collateral Agent in the United States trademarks and
patents listed in the Assignment of Security Interest in U.S. Patents and
Trademarks, and the recordation of the Assignment of Security Interest in U.S.
Copyrights in the form attached to the Security Agreement with the United States
Copyright Office together with filings on Form UCC-1 made pursuant to the
Security Agreement will be effective under federal law to perfect the security
interest granted to the Collateral Agent in the United States copyrights listed
in the Assignment of Security Interest in U.S. Copyrights. Each of the Credit
Parties party to the Security Agreement has good and valid title to all Security
Agreement Collateral described therein, free and clear of all Liens except those
described above in this Section 7.21(a).
(b) The security interests created in favor of the Collateral Agent,
as Pledgee, for the benefit of the Secured Creditors under the Pledge Agreement
constitute first priority perfected security interests in the Pledged Securities
described in the Pledge Agreement, subject to no security interests of any other
Person. No filings or recordings are required in order to perfect (or maintain
the perfection or priority of) the security interests created in the Pledged
Securities under the Pledge Agreements.
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(c) The Mortgages create, as security for the obligations purported
to be secured thereby, a valid and enforceable perfected security interest in
and mortgage lien on all of the Mortgaged Properties in favor of the Collateral
Agent (or such other trustee as may be required or desired under local law) for
the benefit of the Secured Creditors, superior to and prior to the rights of all
third persons (except that the security interest and mortgage lien created in
the Mortgaged Properties may be subject to the Permitted Encumbrances related
thereto) and subject to no other Liens (other than Permitted Liens). Schedule
5.12 contains a true and complete list of each material parcel of Real Property
owned or leased by the Parent and its Subsidiaries on April 17, 1998 (and the
type of interest therein held by the Parent or such Subsidiary) and the name of
the direct owner or lessee thereof. The Parent and each of its Subsidiaries
have good and indefeasible title to all fee-owned Mortgaged Properties and valid
leasehold title to all Leaseholds, in each case free and clear of all Liens
except those described in the first sentence of this Section 7.21(c).
7.22 Capitalization. (a) On the Initial Borrowing Date and after
--------------
giving effect to the Transaction, the authorized capital stock of the Parent
shall consist of (i) three hundred million (300,000,000) shares of common stock,
par value $.0002 per share ("Common Stock"), of which, as of January 31, 1998
(and without giving effect to the Transaction), 142,692,371 shares were issued
and outstanding and 24,414,801 shares were reserved for issuance upon exercise
of outstanding stock options and warrants, (ii) three million (3,000,000) shares
of non-voting common stock, par value $.0002 per share, of which none were
issued and outstanding, and (iii) twenty-five million (25,000,000) shares of
preferred stock, par value $.0001 per share, of which none were issued and
outstanding. All outstanding shares of common stock of the Parent have been
duly and validly issued, are fully paid and non-assessable and have been issued
free of preemptive rights. As of the Initial Borrowing Date, the Parent does
not have outstanding any securities convertible into or exchangeable for its
capital stock or outstanding any rights to subscribe for or to purchase, or any
options for the purchase of, or any agreement providing for the issuance
(contingent or otherwise) of, or any calls, commitments or claims of any
character relating to, its capital stock, other than (x) the Existing
Convertible Notes, (y) the options and warrants referred to in clause (i) in
this Section 7.22, and (z) the securities and agreements set forth on Schedule
7.22 hereto.
(b) On the Initial Borrowing Date and after giving effect to the
Transaction, the authorized capital stock of the Borrower shall consist of 1000
shares of common stock, $.01 par value per share. All outstanding shares of
common stock of the Borrower have been duly and validly issued, are fully paid
and nonassessable and are free of preemptive rights. As of the Initial
Borrowing Date, the Borrower does not have outstanding any securities
convertible into or exchangeable for its capital stock or outstanding any rights
to subscribe for or to purchase, or any options for the purchase of, or any
agreements providing for the issuance (contingent or otherwise) of, or any
calls, commitments or claims of any character relating to, its capital stock.
7.23 Indebtedness. Schedule 5.08 sets forth a true and complete list
------------
of all Indebtedness (excluding (i) the Obligations, (ii) Indebtedness of the
Parent in an aggregate outstanding principal amount not exceeding $325,000,000
represented by the Existing Convertible Notes, (iii) Indebtedness of the
Borrower (with subordinated guarantees from the Subsidiaries of the Borrower
which are Subsidiary Guarantors) in an aggregate outstanding principal amount
not exceeding $90,000,000 represented by the Existing Senior Subordinated Notes)
of the Parent and its Subsidiaries as of January 31, 1998 and which is to remain
outstanding after giving effect to the Transaction (the "Existing
Indebtedness"), in each case showing the aggregate principal amount thereof and
the name of the respective borrower and any other entity (to the Parent and the
Borrower's knowledge, in the case of guarantees by Persons other than the Parent
and its Subsidiaries) which directly or indirectly guaranteed such debt. On the
Initial Borrowing Date, the aggregate principal amount of DDI Notes outstanding
does not exceed $5,500,000.
SECTION 8. Affirmative Covenants. Each of the Parent and the
---------------------
Borrower hereby covenant and agree that on and after the Effective Date and
until the Total Commitments and all Letters of Credit have terminated and the
Loans, Notes and Unpaid Drawings, together with interest, Fees and all other
obligations incurred hereunder and thereunder (other than indemnity and other
similar obligations that are not then due and payable), are paid in full:
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8.01 Information Covenants. Each of the Parent and the Borrower will
---------------------
maintain, for itself and each of its Subsidiaries, a system of accounting
established and administered in accordance with Agreement Accounting Principles,
and the Borrower will furnish to the Administrative Agent (with a sufficient
number of copies for each of the Agents and Banks):
(a) Monthly Reports. Within 35 days (or 50 days in the case of the
---------------
last fiscal month of any fiscal quarter of the Parent) after the end of each
fiscal month of the Parent (other than the last fiscal month of any Fiscal
Year), preliminary flash consolidated income statement data for the Parent and
its Consolidated Subsidiaries, including line items for revenues, net sales,
gross profit, operating profit and depreciation and amortization, in each case
for the respective fiscal month, in each case setting forth comparative figures
for the related month in the previous fiscal year, all of which statements shall
be in form reasonably satisfactory to the Administrative Agent.
(b) Quarterly Financial Statements. Within 50 days after the close
------------------------------
of each of the first three quarterly accounting periods in each fiscal year of
the Parent, (i) the consolidated and consolidating balance sheet of the Parent
and its Consolidated Subsidiaries (and Unrestricted Subsidiaries to the extent
required to be consolidated with the Parent for financial reporting purposes in
accordance with Agreement Accounting Principles) as at the end of such quarterly
accounting period and the related consolidated and consolidating statements of
income and cash flows, in each case for such quarterly accounting period and for
the elapsed portion of the fiscal year ended with the last day of such quarterly
accounting period, in each case, setting forth comparative figures for the
related periods in the prior fiscal year and the projected figures for such
quarterly periods as set forth in the respective projections delivered pursuant
to Section 8.01(e) and (ii) management's discussion and analysis of the
important operational and financial developments during the fiscal quarter and
year-to-date periods; provided that for any quarterly accounting period during
--------
which the Parent is a Reporting Company under the Exchange Act, the furnishing
of (x) the Parent's Form 10-Q Report filed with the SEC for such quarterly
accounting period, (y) the consolidating financial statements required above in
this Section 8.01(b) and (z) a comparison of actual results to projected figures
as required above, shall satisfy the requirements of this Section 8.01(b) for
the respective fiscal quarter, all of which shall be certified by the chief
financial officer or treasurer of the Parent or the Borrower, subject to normal
year-end audit adjustments.
(c) Annual Financial Statements. Within 95 days after the close of
---------------------------
each fiscal year of the Parent, (i) the consolidated and consolidating balance
sheet of the Parent and its Consolidated Subsidiaries (and Unrestricted
Subsidiaries to the extent required to be consolidated with the Parent for
financial reporting purposes in accordance with Agreement Accounting Principles)
as at the end of such fiscal year and the related consolidated and consolidating
statements of income and retained earnings and of cash flows for such fiscal
year setting forth comparative figures for the preceding fiscal year and the
projected figures for such fiscal year as set forth in the respective projection
delivered pursuant to Section 8.01(e) and, in the case of the consolidated
financial statements for such fiscal year, certified (with an unqualified audit
report) by Coopers & Xxxxxxx L.L.P., one of the Big Six accounting firms (or if
such Big Six become less than six, one of the successors to such Big Six
accounting firms) or such other independent certified public accountants of
recognized national standing reasonably acceptable to the Administrative Agent,
together with a report of such accounting firm stating that in the course of its
regular audit of the financial statements of the Parent and its Subsidiaries,
which audit was conducted in accordance with generally accepted auditing
standards, such accounting firm obtained no knowledge insofar as related to
accounting matters of any Default or Event of Default which has occurred and is
continuing or, if in the opinion of such accounting firm such a Default or Event
of Default has occurred and is continuing, a statement as to the nature thereof,
and (ii) management's discussions and analysis of the important operational and
financial developments during such fiscal year; provided that for any fiscal
--------
year for which the Parent is a Reporting Company under the Exchange Act, the
furnishing of (x) the Parent's Form 10-K Report filed with the SEC for such
annual accounting period, (y) the consolidating financial statements required
above in this Section 8.01(c), and (z) a comparison of actual results to
projected figures as required above, shall satisfy the requirements of this
Section 8.01(c) for the respective fiscal year, all of which shall be certified
by the chief financial officer or treasurer of the Parent or the Borrower,
subject to normal year-end audit adjustments.
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(d) Management Letters. Promptly after the receipt thereof by the
------------------
Parent or any of its Subsidiaries, a copy of any "management letter" received by
any such Person from its certified public accountants and the management's
responses thereto.
(e) Projections. No later than (i) ten days after the completion
-----------
thereof and (ii) 95 days after the close of each Fiscal Year for the Parent and
its Subsidiaries, updated projections (from the Projections contained in the
Bank Information Memorandum) prepared on a quarterly basis for the period of
three consecutive Fiscal Years commencing at the close of the Fiscal Year
referenced above, all prepared in a manner consistent with the Projections and
which in any event shall (x) provide consolidated line items consistent with
those which will be reported in the monthly reports referenced in Section
8.01(a) and (y) contain information broken down by segment, by quarter, as is
provided in the Projections. All Projections delivered pursuant to this Section
8.01(e) shall be in form and substance satisfactory to the Administrative Agent
and with at least the same level of detail as provided in the Bank Information
Memorandum.
(f) Officer's Certificates. At the time of the delivery of the
----------------------
financial statements provided for in Sections 8.01(a), (b) and (c), a
certificate of the president, the chief financial officer or the treasurer of
the Parent or the Borrower to the effect that, to the best of such officer's
knowledge, no Default or Event of Default has occurred and is continuing or, if
any Default or Event of Default has occurred and is continuing, specifying the
nature and extent thereof, which certificate shall, in the case of any such
financial statements delivered pursuant to Sections 8.01(b) and (c) (other than
such delivery for the Fiscal Year ended in 1998), set forth the calculations
required to establish whether the Borrower was in compliance with the provisions
of Sections 4.02(c) through (f), 9.03, 9.04, 9.05 and 9.08 through 9.11,
inclusive, at the end of such fiscal quarter or year, as the case may be.
(g) Notice of Default or Litigation. Promptly, and in any event
-------------------------------
within three Business Days in the case of item (i) below or five Business Days
in the case of item (ii) below, after an officer of the Parent or the Borrower
obtains knowledge thereof, notice of (i) the occurrence of any event which
constitutes a Default or an Event of Default and (ii) any litigation or
governmental investigation or proceeding pending (x) against the Parent or any
of its Subsidiaries which could reasonably be expected to have a Material
Adverse Effect, (y) with respect to any Indebtedness which is individually in
excess of $2,500,000 of the Parent or any of its Subsidiaries taken as a whole
or (z) with respect to any Credit Document.
(h) Other Reports and Filings. Promptly, copies of all other
-------------------------
financial information, reports, proxy materials and other information, if any,
which the Parent or any of its Subsidiaries shall file with the Securities and
Exchange Commission or any successor thereto (the "SEC") or deliver to holders
of its Indebtedness (with an outstanding principal amount in excess of
$25,000,000) pursuant to the terms of the documentation governing such
Indebtedness (or any trustee, agent or other representative therefor).
(i) ERISA. As soon as possible and in any event within 10 days after
-----
the Parent or the Borrower knows that any Termination Event has occurred with
respect to any Plan, a statement, signed by the chief financial officer of the
Parent or the Borrower, describing said Termination Event and the action which
the Parent or the Borrower proposes to take with respect thereto.
(j) Environmental. As soon as possible and in any event within 10
-------------
days after any Credit Party or any of its Subsidiaries obtains knowledge of any
of the following, written notice of (i) any notice, claim, complaint or order to
the effect that any Credit Party or any of its Subsidiaries is or may be liable
to any Person as a result of any event, circumstance or occurrence under any
Environmental Law, including the Release by such Credit Party, any of its
Subsidiaries, or any other Person of any Hazardous Materials into the
environment or requiring that action be taken to respond to or clean up a
Release of Hazardous Materials into the environment, (ii) any condition or
occurrence on any Real Property owned or operated by any Credit Party or any of
its Subsidiaries that (x) results in non-compliance by any Person with any
applicable Environmental Law, (y) could reasonably be anticipated to form the
basis of an Environmental Claim against any such Person, or (z) could reasonably
be anticipated to cause such Real Property to be subject to any restrictions on
the ownership,
-39-
occupancy, use or, transferability by such Person of its interest in such Real
Property under any Environmental Law, (iii) any notice, complaint or citation
alleging any violation of any Environmental Law or any permit now or hereafter
in effect issued under any Environmental Law by such Credit Party or any of its
Subsidiaries or (iv) the taking of any removal or remedial action in response to
the actual or alleged presence of any Hazardous Materials on any Real Property
owned or operated by any Credit Party or any of its Subsidiaries.
Notwithstanding anything to the contrary contained in the immediately preceding
sentence, notices of events of the type described above shall not be required to
be given with respect to any event where the maximum liability to the Parent and
its Subsidiaries which may result from the respective event is reasonably
estimated by the Borrower to be less than $2,000,000.
(k) Material Subsidiaries. As soon as practicable and in any event
---------------------
within 45 days after the close of the second Fiscal Quarter of each Fiscal Year
and within 90 days after the close of each Fiscal Year, a list of each Material
Domestic Subsidiary existing as of the end of such applicable period.
(l) Annual Meetings with Banks. At the request of the Administrative
--------------------------
Agent, the Parent shall, within 120 days after the close of each fiscal year
(beginning with the fiscal year ending in 1999) of the Parent, hold a meeting,
at a time and place selected by the Parent and acceptable to the Administrative
Agent, with all of the Banks to review the financial results of the previous
fiscal year and the financial condition of the Parent and its Subsidiaries and
the budgets presented for the current fiscal year of the Parent and its
Subsidiaries.
(m) Notice of Commitment Reductions and Mandatory Repayments. On or
--------------------------------------------------------
prior to the date of any reduction to the Total Revolving Commitment or any
mandatory repayment of outstanding Term Loans pursuant to Section 3.03(e) or
4.02(c) through (f), inclusive, the Borrower shall provide written notice of the
amount of the respective reduction or repayment, as the case may be, to each of
the Total Revolving Commitment or the outstanding Term Loans, as applicable, and
the calculations therefor (in reasonable detail).
(n) Indenture Calculation. So long as any Existing Senior
---------------------
Subordinated Notes are outstanding, at the time of the delivery of the financial
statements provided for in Section 8.01(b) or (c), a certificate of the chief
financial officer or treasurer of the Parent or the Borrower, as the case may
be, evidencing compliance with the requirements of Section 4.11 of the Existing
Senior Subordinated Note Indenture and other applicable requirements thereunder
and showing the maximum amount of Loans which may be incurred by the Borrower
under this Agreement during the following fiscal quarter while remaining in
compliance with the Existing Senior Subordinated Note Indenture, in each case as
determined on the last day of the immediately preceding fiscal quarter.
(o) Other Information. From time to time, such other information or
-----------------
documents (financial or otherwise) with respect to the Parent or its
Subsidiaries as any Agent (whether acting on its own or at the request of any
Bank) may reasonably request in writing.
8.02 Books, Records and Inspections. Each of the Parent and the
------------------------------
Borrower will, and will cause each of its Subsidiaries to, keep proper books of
record and account in conformity with generally accepted accounting principles
and all requirements of law shall be made of all dealings and transactions in
relation to its business and activities. Each of the Parent and the Borrower
will, and will cause each of its Subsidiaries to, permit officers and designated
representatives of any of the Agents or, if an Event of Default has occurred and
is continuing, any Bank to visit and inspect, during regular business hours and
under guidance of officers of the Parent or such Subsidiary, any of the
properties of the Parent or such Subsidiary, and to examine the books of account
of the Parent or such Subsidiary and discuss the affairs, finances and accounts
of the Parent or such Subsidiary with, and be advised as to the same by, its and
their independent accountants and officers of the Parent and the Borrower, all
upon reasonable advance notice and at such reasonable times and intervals and to
such reasonable extent as such Agent or such Bank may reasonably request.
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8.03 Insurance. (a) Schedule 8.03 sets forth a true and complete
---------
listing of all casualty, liability, business interruption and other similar
types of insurance maintained by each Credit Party on and as of the Initial
Borrowing Date, with the amounts insured set forth therein. The Parent will,
and will cause each of its Subsidiaries to, (i) keep all property necessary in
its business in good working order and condition (ordinary wear and tear
excepted), (ii) maintain insurance on all its property in at least such amounts
and against at least such risks as is consistent with sound business practice
and (iii) furnish to each Bank, upon written request, full information as to the
insurance carried. In addition to the requirements of the immediately preceding
sentence, unless the Administrative Agent otherwise agrees in writing, the
Parent will at all times cause insurance of the types described in Schedule 8.03
to be maintained (with the same scope of coverage as that described in Schedule
8.03) at levels which are at least as great as the respective amount described
opposite the respective type of insurance on Schedule 8.03 under the column
headed "Amount of Coverage", provided, however, that the Parent, the Borrower or
-------- -------
such Subsidiary, as applicable, may discontinue or reduce any insurance to the
extent that it is no longer available at commercially reasonable rates and so
long as similarly situated companies are, in general, reducing or eliminating
such insurance in a manner consistent with the changes being effected by the
Credit Parties and their Subsidiaries.
(b) The Parent will, and will cause each of its Domestic Subsidiaries
to, at all times cause all their insurance policies with respect to casualty,
liability, business interruption and other similar types of insurance to (i) be
endorsed to the Collateral Agent's satisfaction for the benefit of the
Collateral Agent (including, without limitation, by naming the Collateral Agent
as loss payee or as an additional insured); provided that for any insurance
payment of $250,000 or less, such payment may be made directly to the Parent or
the respective Subsidiary entitled to such payment pursuant to the respective
insurance policy and (ii) state that such insurance policies shall not be
cancelled or materially altered without 30 days' prior written notice thereof by
the respective insurer to the Collateral Agent.
8.04 Corporate Franchises. Each of the Parent and the Borrower will,
--------------------
and will cause each of its Subsidiaries to, do or cause to be done, all things
necessary to preserve and keep in full force and effect its existence and its
material rights, franchises, licenses and patents used in its business;
provided, however, that nothing in this Section 8.04 shall prevent (i) sales of
-------- -------
assets, consolidations or mergers by or involving the Parent or any of its
Subsidiaries otherwise permitted by Section 9.02 or (ii) the withdrawal by the
Parent or any of its Subsidiaries of their qualification as a foreign
corporation in any jurisdiction where such withdrawal could not reasonably be
expected to have a Material Adverse Effect.
8.05 Compliance with Statutes, etc. Each of the Parent and the
------------------------------
Borrower will, and will cause each of its Subsidiaries to, comply with all
applicable statutes, regulations and orders of, and all applicable restrictions
imposed by, all governmental bodies, domestic or foreign, in respect of the
conduct of its business and the ownership of its property, except such
noncompliances as could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.
8.06 Compliance with Environmental Laws. (a) Each of the Parent and
----------------------------------
the Borrower will comply, and will cause each of its Subsidiaries to comply, in
all material respects with all Environmental Laws applicable to the ownership or
use of Real Property now or hereafter owned or operated by any Credit Party or
any of its Subsidiaries, and will within a reasonable time-period pay or cause
to be paid all material costs and expenses incurred in connection with such
compliance, and will keep or cause to be kept all such Real Property free and
clear of any material Liens imposed pursuant to such Environmental Laws. No
Credit Party nor any of its Subsidiaries will generate, use, treat, store,
Release or dispose of, or permit the generation, use, treatment, storage,
Release or disposal of Hazardous Materials on any Real Property now or hereafter
owned or operated by any Credit Party or any of its Subsidiaries, or transport
or permit the transportation of Hazardous Materials to or from any such Real
Property except for Hazardous Materials used, stored or Released at any such
Real Properties in material compliance with all applicable Environmental Laws.
If any Credit Party or any of its Subsidiaries, or any tenant or occupant of any
Real Property owned or operated by any Credit Party or any of its Subsidiaries,
cause or permit any intentional or unintentional act or omission resulting in
the presence or Release of any
-41-
Hazardous Material, the Borrower agrees to undertake, and/or to cause any of its
Subsidiaries, tenants or occupants to undertake, at their sole expense, any
clean up, removal, remedial or other action required pursuant to Environmental
Laws to remove and clean up any Hazardous Materials from any Real Property
except where the failure to do so would not reasonably be expected to have a
Material Adverse Effect; provided that neither the Borrower nor any of its
--------
Subsidiaries shall be required to comply with any such order or directive which
is being contested in good faith and by proper proceedings so long as it has
maintained adequate reserves with respect to such compliance to the extent
required in accordance with GAAP.
(b) At the written request of the Administrative Agent or the
Required Banks, which request shall specify in reasonable detail the basis
therefor, at any time and from time to time, the Borrower will provide, at the
Borrower's sole cost and expense, an environmental site assessment report
concerning any Real Property now or hereafter owned or operated by any Credit
Party or any of its Subsidiaries, prepared by an environmental consulting firm
approved by the Administrative Agent, indicating the presence or absence of
Hazardous Materials and the potential cost of any removal or remedial action in
connection with any Hazardous Materials on such Real Property; provided that
--------
such request may be made only if (i) there has occurred and is continuing an
Event of Default, (ii) the Administrative Agent or the Required Banks reasonably
believe that any Credit Party, any of its Subsidiaries or any such Real Property
is not in material compliance with Environmental Laws, or (iii) circumstances
exist that reasonably could be expected to form the basis of a material
Environmental Claim against any Credit Party, any of its Subsidiaries or any
such Real Property. If the Borrower fails to provide the same within 90 days
after such request was made, the Administrative Agent may order the same, and
the Parent, the Borrower and their respective Subsidiaries shall grant and
hereby grants to the Administrative Agent and the Banks and their agents access
to such Real Property and specifically grants the Administrative Agent and the
Banks an irrevocable non-exclusive license, subject to the rights of tenants, to
undertake such an assessment, all at the Borrower's expense.
8.07 Use of Proceeds. The Borrower will, and will cause each of its
---------------
Subsidiaries to, use the proceeds of the Loans for the purposes specified in
Section 7.20 and to meet the general corporate and working capital needs of the
Borrower and its Subsidiaries, including without limitation Investments made in
accordance with Section 9.05 and Permitted Acquisitions made in accordance with
Section 9.02(xix). No Credit Party will, nor will it permit any of its
Subsidiaries to, use any of the proceeds of the Loans or any Letter of Credit to
(a) purchase or carry any Margin Stock (except for purchases of the Parent's
common stock effected in accordance with the requirements of Section 9.03), (b)
finance the acquisition of any Person which has not been approved and
recommended by the board of directors (or functional equivalent thereof) of such
Person or (c) except for payments expressly permitted to be made in accordance
with Section 9.03, repay all or any portion of the principal amount of any
Indebtedness of the Parent or any Subsidiary of the Parent which is not also a
Subsidiary of the Borrower.
8.08 Conduct of Business. Each of the Parent and the Borrower will,
-------------------
and will cause each of its Subsidiaries to, carry on and conduct its business in
substantially the same manner and in substantially the same, related or, in the
Borrower's reasonable business judgment, materially synergistic fields of
enterprise as it is conducted on the Effective Date and to do all things
necessary to remain duly incorporated, validly existing and in good standing as
a corporation (or other business organization in the case of any Subsidiary of
the Parent (other than the Borrower) organized as a partnership, limited
liability company or other type of business organization) in its jurisdiction of
organization and maintain all requisite authority to conduct its business in
each jurisdiction in which its business is conducted. The Credit Parties and
their Subsidiaries may carry on and conduct their respective businesses pursuant
hereto in such jurisdictions as they shall determine; provided that the Borrower
--------
and the Material Domestic Subsidiaries shall at all times maintain income
producing assets in the United States having an aggregate fair market value of
not less than 75% of the aggregate fair market value of the income producing
assets maintained in the United States by the Borrower and the Material Domestic
Subsidiaries as of the Initial Borrowing Date.
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8.09 Taxes. Each of the Parent and the Borrower will, and will cause
-----
each of its Subsidiaries to, timely file complete and correct United States
federal and all material applicable foreign, state and local tax returns
required by applicable law and pay when due all material taxes, assessments and
governmental charges and levies upon it or its income, profits or Property,
except those which are being contested in good faith by appropriate proceedings
and with respect to which adequate reserves have been set aside in accordance
with Agreement Accounting Principles.
8.10 Compliance with Laws. Each of the Parent and the Borrower will,
--------------------
and will cause each of its Subsidiaries to, comply with all laws, rules,
regulations, orders, writs, judgments, injunctions, decrees or awards to which
it may be subject, the failure to comply with which could reasonably be expected
to have a Material Adverse Effect.
8.11 Maintenance of Properties. Each of the Parent and the Borrower
-------------------------
will, and will cause each of its Subsidiaries to, do all things necessary to
maintain, preserve, protect and keep its Property in good repair, working order
and condition, and make all necessary and proper repairs, renewals and
replacements so that its business carried on in connection therewith may be
properly conducted at all times.
8.12 End of Fiscal Years; Fiscal Quarters. The Parent will cause (i)
------------------------------------
each of its, and each of its Subsidiaries', fiscal years to end on the Saturday
on or closest to the last day of January of each year, and (ii) each of its, and
each of its Subsidiaries', fiscal quarters in each fiscal year to end in a
manner consistent therewith.
8.13 Performance of Obligations. Each of the Parent and the Borrower
--------------------------
will, and will cause each of its Subsidiaries to, perform all of its obligations
under the terms of each mortgage, indenture, security agreement and other debt
instrument by which it is bound, except such non-performances as could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.
8.14 Additional Security; Additional Guarantees; Designations of
-----------------------------------------------------------
Material Subsidiaries; Further Assurances. (a) Each of the Parent and the
-----------------------------------------
Borrower will, and will cause each other Guarantor to, grant to the Collateral
Agent security interests and mortgages (each an "Additional Mortgage") in such
fee-owned (or the equivalent) Real Property acquired by such Person after the
Initial Borrowing Date and having a Fair Market Value in excess of $2,000,000
which is not covered by the original Mortgages (each such Real Property, an
"Additional Mortgaged Property"). All such Additional Mortgages shall be
granted pursuant to documentation substantially in the form of the Mortgages
delivered to the Administrative Agent on the Initial Borrowing Date or in such
other form as is reasonably satisfactory to the Administrative Agent and shall
constitute valid and enforceable perfected Liens superior to and prior to the
rights of all third Persons and subject to no other Liens except as are
permitted by Section 9.01 at the time of perfection thereof. The Additional
Mortgages or instruments related thereto shall be duly recorded or filed in such
manner and in such places as are required by law to establish, perfect, preserve
and protect the Liens in favor of the Collateral Agent required to be granted
pursuant to the Additional Mortgages and all taxes, fees and other charges
payable in connection therewith shall be paid in full.
(b) Each of the Parent and the Borrower will, and will cause each
other Guarantor to, at the expense of the applicable Credit Party, make,
execute, endorse, acknowledge, file and/or deliver to the Collateral Agent from
time to time such vouchers, invoices, schedules, confirmatory assignments,
confirmatory conveyances, financing statements, transfer endorsements,
confirmatory powers of attorney, certificates, reports and other assurances or
confirmatory instruments and take such further steps relating to the Collateral
covered by any of the Security Documents as the Collateral Agent may reasonably
require pursuant to this Section 8.14. Furthermore, each of the Parent and the
Borrower will cause to be delivered to the Collateral Agent such opinions of
counsel and other related documents as may be reasonably requested by the
Collateral Agent to assure itself that this Section 8.14 has been complied with.
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(c) Subject to the provisions of following clauses (h) and (i), the
Parent and the Borrower shall cause each of its Subsidiaries which becomes, or
is designated as, a Material Domestic Subsidiary at any time after the Initial
Borrowing Date to join in the Subsidiaries Guaranty as a Subsidiary Guarantor
pursuant to a joinder agreement in the form attached to the Subsidiaries
Guaranty within 10 days of such Person becoming a Material Domestic Subsidiary.
The Borrower shall from time to time designate as a "Material Domestic
Subsidiary" each Domestic Subsidiary of the Parent acquired or established after
the Initial Borrowing Date which has assets with a fair market value in excess
of $5,000,000 and shall also from time to time designate as a "Material
Subsidiary" one or more Subsidiaries of the Parent (other than the Borrower)
individually having assets with a fair market value of less than $5,000,000 to
the extent necessary to assure that at all times the aggregate fair market value
of the assets of all Domestic Subsidiaries of the Parent (other than Domestic
Subsidiaries which already constitute Material Domestic Subsidiaries pursuant to
clause (a) or (b) of the definition thereof) which have not been designated as
Material Domestic Subsidiaries is less than $15,000,000. Such designations
shall be made in a writing delivered to the Administrative Agent.
(d) In addition to the requirements contained in the Pledge
Agreement, the Parent and the Borrower agree to pledge and deliver, or cause to
be pledged and delivered, all of the capital stock, owned by any Credit Party,
of each new Subsidiary (excluding that portion of the voting stock of any
Foreign Subsidiary which would be in excess of 65% of the total outstanding
voting stock of such Foreign Subsidiary) established or created after the
Initial Borrowing Date to the Collateral Agent for the benefit of the Secured
Creditors pursuant to the Pledge Agreement.
(e) Each of the Parent and the Borrower will cause each Subsidiary
which, after the Initial Borrowing Date, is required to become a Guarantor in
accordance with the requirements of preceding clause (c) to execute and deliver
counterparts of (and thereby become parties to) the Security Agreement and the
Pledge Agreement and, in connection therewith, to furnish such updated schedules
as may be requested by the Administrative Agent or the Collateral Agent.
Furthermore, each of the Parent and the Borrower will cause each Subsidiary
described in the immediately preceding sentence, at its own expense, to execute,
acknowledge and deliver, or cause the execution, acknowledgment and delivery of,
and thereafter register, file or record in any appropriate governmental office,
any document or instrument reasonably deemed by the Collateral Agent to be
necessary or desirable for the creation and perfection of the Liens on its
assets intended to be created pursuant to the Security Agreement and Pledge
Agreement. Each of the Parent and the Borrower will cause each Subsidiary
described above in this clause (e) to take all actions reasonably requested by
the Administrative Agent (including, without limitation, the filing of UCC-1's,
the furnishing of legal opinions, etc.) in connection with the granting of such
security interests.
(f) The security interests required to be granted pursuant to this
Section 8.12 shall be granted pursuant to the respective Security Documents
already executed and delivered by the Credit Parties (or other security
documentation substantially similar to such Security Documents or otherwise
satisfactory in form and substance to the Collateral Agent and the Borrower) and
shall constitute valid and enforceable perfected security interests prior to the
rights of all third Persons and subject to no other Liens except such Liens as
are permitted by Section 9.01. The Additional Security Documents and other
instruments related thereto shall be duly recorded or filed in such manner and
in such places and at such times as are required by law to establish, perfect,
preserve and protect the Liens, in favor of the Collateral Agent for the benefit
of the respective Secured Creditors, required to be granted pursuant to the
Additional Security Documents and all taxes, fees and other charges payable in
connection therewith shall be paid in full by the Borrower. At the time of the
execution and delivery of the Additional Security Documents, the Borrower will
cause to be delivered to the Collateral Agent such opinions of counsel and other
related documents as may be reasonably requested by the Agents or the Required
Banks to assure themselves that this Section 8.14 has been complied with.
(g) Each of the Parent and the Borrower agrees that each action
required above by Section 8.14(a) or (b) shall be completed as soon as possible,
but in no event later than 60 days after such action is requested to be taken by
the Administrative Agent or the Required Banks. Each of the Parent and the
Borrower
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further agrees that each action required above by Section 8.14(c), (d), (e) and
(f) with respect to a new Material Domestic Subsidiary shall be completed
contemporaneously with (or within 10 days of) the creation, acquisition or
designation of such new Material Domestic Subsidiary.
(h) Notwithstanding anything to the contrary contained in clauses (c)
through (g) above, to the extent the taking of any action as described above by
a new Material Domestic Subsidiary acquired pursuant to a Permitted Acquisition,
which is subject to Permitted Acquired Debt which at such time remains in
existence as permitted by Section 9.04(ii), then to the extent that the terms of
the respective Permitted Acquired Debt prohibit the taking of any actions which
would otherwise be required of such Material Domestic Subsidiary by this Section
8.14, then the time for taking the respective actions (to the extent prohibited
by the terms of the respective Permitted Acquired Debt) shall be extended until
ten Business Days after the earlier of (i) the date of repayment of such
Permitted Acquired Debt and (ii) the first date on which the taking of such
actions would not violate the terms of the respective issue of Permitted
Acquired Debt. To the extent the terms of any Permitted Acquired Debt prohibits
the taking of actions otherwise required by this Section 8.14, upon the request
of the Administrative Agent or the Required Banks, the Parent and the Borrower
shall, or shall cause the respective Subsidiaries to, (x) prepay any such
Permitted Acquired Debt which is permitted to be prepaid and/or (y) use
reasonable efforts to obtain such consents or approvals as are needed so that
the taking of the actions otherwise specified in this Section 8.14 would not
violate the terms of the respective issue of Permitted Acquired Debt.
(i) Notwithstanding anything to the contrary contained above, the
Receivables Subsidiary shall not be required to execute or deliver any Credit
Documents, although all Equity Interests in the Receivables Subsidiary shall be
required to be pledged pursuant to the Pledge Agreement.
8.15 Foreign Subsidiaries Security. If following a change in the
-----------------------------
relevant sections of the Code or the regulations, rules, rulings, notices or
other official pronouncements issued or promulgated thereunder, counsel for the
Borrower reasonably acceptable to the Administrative Agent does not within 30
days after a request from the Administrative Agent or the Required Banks deliver
evidence, in form and substance reasonably satisfactory to the Administrative
Agent, with respect to any Foreign Subsidiary which has not already had all of
its stock pledged pursuant to the Pledge Agreement that a pledge of 66-2/3% or
more of the total combined voting power of all classes of capital stock of such
Foreign Subsidiary entitled to vote, would cause the undistributed earnings of
such Foreign Subsidiary as determined for Federal income tax purposes to be
treated as a deemed dividend to such Foreign Subsidiary's United States parent
for Federal income tax purposes, then that portion of such Foreign Subsidiary's
outstanding capital stock not theretofore pledged pursuant to the Pledge
Agreement shall be pledged to the Collateral Agent for the benefit of the
Secured Creditors pursuant to the Pledge Agreement (or another pledge agreement
in substantially similar form, if needed), to the extent that entering into such
Pledge Agreement is permitted by the laws of the respective foreign jurisdiction
and with all documents delivered pursuant to this Section 8.15 to be in form and
substance reasonably satisfactory to the Administrative Agent and the Required
Banks. Notwithstanding anything to the contrary contained above, in the
circumstances otherwise contemplated above, the pledge of 66-2/3% or more of the
total combined voting power of all classes of capital stock of a Foreign
Subsidiary shall not be required if, following a change of the type described
above to the relevant sections of the Code or the regulations, rules, rulings,
notices or other official pronouncements issued or promulgated thereunder, the
taking of the action otherwise required above would result in other material
negative tax consequences to the Parent and/or its Subsidiaries, and so long as
the Parent or the Borrower delivers notification to the Administrative Agent to
such effect (showing in reasonable detail the material negative tax consequences
which would result therefrom).
8.16 Interest Rate Protection. No later than the 90th day after the
------------------------
Initial Borrowing Date, to the extent that less than 40% of the Consolidated
Indebtedness (for this purpose, reducing Consolidated Indebtedness by the amount
attributable to Existing Convertible Notes then outstanding which is otherwise
reflected therein) at any time constitutes Indebtedness bearing interest at a
fixed rate, the Borrower will enter into, and for a minimum of three years
thereafter maintain, Interest Rate Protection Agreements, in form and substance
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satisfactory to the Agents, establishing a fixed or maximum interest rate
reasonably acceptable to the Agents, for an amount equal to such Indebtedness.
8.17 Maintenance of Corporate Separateness. Each of the Parent and
-------------------------------------
the Borrower will, and will cause each of its Segregated Subsidiaries and
Unrestricted Subsidiaries to, satisfy customary corporate formalities, including
the holding of regular board of directors' and shareholders' meetings or action
by directors or shareholders without a meeting and the maintenance of corporate
offices and records. Neither the Parent nor any of its Subsidiaries shall make
any payment to a creditor of any Segregated Subsidiary or Unrestricted
Subsidiary in respect of any liability of any Segregated Subsidiary or
Unrestricted Subsidiary, and no bank account of any Segregated Subsidiary or
Unrestricted Subsidiary shall be commingled with any bank account of the Parent
or any of its Subsidiaries. Any financial statements distributed to any
creditors of any Segregated Subsidiary or Unrestricted Subsidiary shall clearly
establish or indicate the corporate separateness of such Segregated Subsidiary
or Unrestricted Subsidiary from the Parent and its Subsidiaries. Finally,
neither the Parent nor any of its Subsidiaries shall take any action, or conduct
its affairs in a manner, which is likely to result in the corporate existence of
the Parent, the Borrower and Segregated Subsidiary or any Unrestricted
Subsidiary being ignored, or in the assets and liabilities of the Parent or any
of its Subsidiaries being substantively consolidated with those of any other
such Person or any Unrestricted Subsidiary in a bankruptcy, reorganization or
other insolvency proceeding.
8.18 Margin Regulations. The Parent and the Borrower shall take all
------------------
actions so that at all times the fair market value of all Margin Stock (other
than treasury stock and the Existing Negotiable Securities) owned by the Parent
and its Subsidiaries shall not exceed $5,000,000. So long as the covenant
contained in the immediately preceding sentence is complied with, all Margin
Stock at any time owned by the Parent and its Subsidiaries shall not constitute
Collateral and no security interest shall be granted therein pursuant to any
Credit Document. Without excusing any violation of the first sentence of this
Section 8.18, if at any time the fair market value of all Margin Stock (other
than treasury stock and the Existing Negotiable Securities) owned by the Parent
and its Subsidiaries exceeds $5,000,000, then (x) all Margin Stock owned by the
Credit Parties shall be pledged, and delivered for pledge, pursuant to the
Pledge Agreement and (y) the Borrower shall execute and deliver to the Banks
appropriate completed forms (including, without limitation, Forms G-3 and U-1,
as appropriate) establishing compliance with the Margin Regulations. If at any
time any Margin Stock is required to be pledged as a result of the provisions of
the immediately preceding sentence, repayments of outstanding Obligations shall
be required, and subsequent Credit Events shall be permitted, only in compliance
with the applicable provisions of the Margin Regulations.
8.19 DDI Notes. Within 120 days after the Initial Borrowing Date,
---------
the Parent and the Borrower shall take all actions so that either (x) the DDI
Notes are defeased, pursuant to a Permitted Defeasance, in accordance with the
terms of Article 8 of the DDI Indenture (the "DDI Defeasance") or (y) the
requisite consents of the holders of the outstanding DDI Notes are obtained and,
in accordance with such consents, the DDI Indenture is modified to substantially
delete all covenants contained therein (and so that all actions required to be
taken pursuant to Section 13.20(c) are permitted to be taken), pursuant to an
amendment in form and substance satisfactory to the Administrative Agent.
SECTION 9. Negative Covenants. The Parent and the Borrower covenant
------------------
and agree that on and after the Effective Date and until the Total Commitments
and all Letters of Credit have terminated and the Loans, Notes and Unpaid
Drawings, together with interest, Fees and all other Obligations incurred
hereunder and thereunder (other than indemnity and other similar obligations
that are not then due and payable), are paid in full:
9.01 Liens. Each of the Parent and the Borrower will not, and will
-----
not permit any of its Subsidiaries to, create, incur, assume or suffer to exist
any Lien upon or with respect to any property or assets (real or personal,
tangible or intangible) of the Parent or any of its Subsidiaries, whether now
owned or hereafter acquired, or sell any such property or assets subject to an
understanding or agreement, contingent or otherwise, to repurchase such property
or assets (including sales of accounts receivable with recourse to the Borrower
or any of
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its Subsidiaries), or assign any right to receive income or permit the filing of
any financing statement under the UCC or any other similar notice of Lien under
any similar recording or notice statute; provided that the provisions of this
--------
Section 9.01 shall not prevent the creation, incurrence, assumption or existence
of the following (Liens described below are herein referred to as "Permitted
Liens"):
(i) Liens for taxes, assessments or governmental charges or levies
on its property if the same shall not at the time be delinquent or
thereafter can be paid without penalty, or are being contested in good
faith and by appropriate proceedings and for which adequate reserves in
accordance with Agreement Accounting Principles shall have been set aside
on its books;
(ii) Liens imposed by law, such as carriers', warehousemen's and
mechanics' liens and other similar Liens arising in the ordinary course of
business which (x) secure the payment of obligations not more than 60 days
past due, (y) are being contested in good faith by appropriate proceedings
and for which adequate reserves shall have been set aside on its books or
(z) in aggregate are immaterial;
(iii) Liens arising out of pledges or deposits under worker's
compensation laws, unemployment insurance, old age pensions, or other
social security or retirement benefits, or similar legislation;
(iv) utility easements, building restrictions and such other
encumbrances or charges against real property as are of a nature generally
existing with respect to properties of a similar character and which do not
in any material way affect the marketability of the same or interfere with
the use thereof in the business of such Credit Party or such Subsidiaries;
(v) Liens existing on the date hereof which (i) are described in
Schedule 9.01 hereto or (ii) secure Capitalized Lease Obligations described
in Schedule 9.01, to the extent consisting of lessors' rights in property
subject to Capitalized Leases, which Liens may be renewed, extended or
granted to secure refunding or refinancing Indebtedness, in each case (x)
for renewals, extensions, refundings or refinancing of Existing
Indebtedness effected pursuant to Section 9.04(ii) and (y) so long as the
principal amount of the Indebtedness secured is not increased as a result
of such renewal, extension, refunding, or refinancing and the Liens do not
extend to property or assets not originally subject to the Liens securing
the respective issue of Existing Indebtedness as originally permitted
pursuant to this clause (v);
(vi) Liens created pursuant to the Credit Documents;
(vii) Liens in or upon Receivables Facility Assets sold or otherwise
transferred pursuant to a Permitted Receivables Transaction;
(viii) licenses, leases or subleases granted to other Persons in the
ordinary course of business not materially interfering with the conduct of
the business of the Parent and its Subsidiaries taken as a whole or
materially diminishing the aggregate value of the Collateral;
(ix) Liens upon assets of the Borrower and its Subsidiaries subject
to Capitalized Lease Obligations to the extent permitted by Section
9.04(ii), provided that (x) such Liens only serve to secure the payment of
--------
Indebtedness arising under such Capitalized Lease Obligation and (y) the
Lien encumbering the asset giving rise to the Capitalized Lease Obligation
does not encumber any other asset (other than proceeds thereof) of the
Borrower or any Subsidiary of the Borrower;
(x) Liens placed upon assets (excluding Real Property which
constitutes Mortgaged Property) used in the ordinary course of business of
the Borrower or any of its Subsidiaries (A) at the time of acquisition
thereof by the Borrower or any such Subsidiary or within 120 days
thereafter in the case of property other than Real Property and (B) within
180 days after the completion of the
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construction or substantial improvements in the case of Real Property, in
each case to secure Indebtedness incurred pursuant to Section 9.04(ii) to
pay all or a portion of the purchase price thereof or the substantial
improvements thereto, provided that, in all events, the Lien encumbering
--------
the assets so acquired does not encumber any other asset (other than
proceeds thereof) of the Borrower or such Subsidiary;
(xi) Liens arising from precautionary UCC financing statement
filings regarding operating leases entered into by the Parent or any of its
Subsidiaries in the ordinary course of business;
(xii) Liens arising out of conditional sale, title retention,
consignment or similar arrangements for the sale of goods entered into by
the Borrower or any of its Subsidiaries in the ordinary course of business
in accordance with the past practices of the Borrower and its Subsidiaries
prior to the Initial Borrowing Date;
(xiii) Liens on assets of any Subsidiary of the Parent acquired as a
result of a Permitted Acquisition and securing only Permitted Acquired Debt
of such Subsidiary, so long as such Liens comply with the requirements set
forth in the definition of Permitted Acquired Debt and (other than with
respect to Segregated Subsidiaries) such Liens are discharged within 120
days of the respective Permitted Acquisition;
(xiv) Liens which may be deemed to exist as a result of the
consummation of one or more sale-leaseback transactions effected in
accordance with the requirements of Section 9.02(xx);
(xv) Liens on assets owned by one or more Foreign Subsidiaries of
the Borrower which are granted to secure Indebtedness incurred by Foreign
Subsidiaries pursuant to, and as permitted by, Section 9.04(iii);
(xvi) Liens arising out of the existence of judgments or awards not
constituting an Event of Default under Section 10.09, provided that no cash
--------
or property is deposited or delivered to secure the respective judgment or
award (or any appeal bond in respect thereof), except as permitted by
following clause (xvii);
(xvii) Liens (other than any Lien imposed by ERISA) (x) incurred or
deposits made in the ordinary course of business in connection with
workers' compensation, unemployment insurance and other types of social
security, (y) to secure the performance of tenders statutory obligations
(other than excise taxes), surety, stay, customs and appeal bonds,
statutory bonds, bids, leases, government contracts, trade contracts,
utility payments, performance and return of money bonds and other similar
obligations (exclusive of obligations for the payment of borrowed money) or
(z) arising by virtue of deposits made in the ordinary course of business
and consistent with past practice to secure the performance by the Borrower
and its Subsidiaries of obligations arising under leases of Real Property,
provided that the aggregate amount of deposits at any time pursuant to sub-
--------
clause (y) and sub-clause (z) shall not exceed $5,000,000 in the aggregate;
(xviii) Liens on cash and U.S. Government Obligations deposited in
order to effect one or more Permitted Defeasances, provided that such Liens
--------
shall secure only the respective issue of Indebtedness which is defeased
through the deposit of such amounts (with any assets subject to Liens as
provided in this clause (xviii) being herein called "Defeasance Assets");
and
(xix) Liens not otherwise permitted by the foregoing clauses (i)
through (xviii) to the extent attaching to properties and assets with an
aggregate fair value not in excess of, and securing liabilities not in
excess of, $25,000,000 in the aggregate at any time outstanding.
-48-
9.02 Consolidation, Merger, Purchase or Sale of Assets, etc. Each of
-------------------------------------------------------
the Parent and the Borrower will not, and will not permit any of its
Subsidiaries to, wind up, liquidate or dissolve its affairs or enter into any
transaction of merger or consolidation, or convey, sell, lease or otherwise
dispose of (or agree to do any of the foregoing at any future time) all or any
part of its property or assets, or enter into any sale-leaseback transactions,
or purchase or otherwise acquire (in one or a series of related transactions)
any part of the property or assets (other than purchases or other acquisitions
of inventory, materials, equipment and intangible assets in the ordinary course
of business) of any Person, except that:
(i) Capital Expenditures by the Borrower and its Subsidiaries
shall be permitted to the extent permitted by Section 9.08;
(ii) each of the Parent and its Subsidiaries may (x) in the
ordinary course of business, sell, lease or otherwise dispose of any
equipment which, in the reasonable judgment of such Person, is obsolete,
worn out or otherwise no longer used or useful in the conduct of such
Person's business and (y) sell, lease or otherwise dispose of any other
assets, provided that each such sale, lease or disposition pursuant to
--------
preceding clause (y) shall be for Fair Market Value and at least 75% of the
consideration for all assets sold, leased or otherwise disposed of pursuant
to this clause (y) in any Fiscal Year shall be in the form of cash, and
provided further, that the aggregate Net Sale Proceeds of all assets
----------------
subject to sales or other dispositions pursuant to preceding clause (y)
(for purposes of this proviso only, excluding asset sales or other
dispositions where the Net Sale Proceeds therefrom are less than $250,000)
shall not exceed $10,000,000 in the aggregate in any Fiscal Year;
(iii) Investments may be made to the extent permitted by Section
9.05;
(iv) each of the Parent and its Subsidiaries may lease (as lessee)
real or personal property in the ordinary course of business (so long as
any such lease does not create a Capitalized Lease Obligation except to the
extent permitted by Section 9.04);
(v) each of the Parent and its Subsidiaries may make sales or
transfers of inventory in the ordinary course of business;
(vi) the Parent and its Subsidiaries may sell or discount, in each
case without recourse and in the ordinary course of business, overdue
accounts receivable arising in the ordinary course of business, but only in
connection with the compromise or collection thereof consistent with
customary industry practice (and not as part of any bulk sale or financing
of receivables);
(vii) transfers of condemned property to the respective governmental
authority or agency that has condemned same (whether by deed in lieu of
condemnation or otherwise), and transfers of properties that have been
subject to a casualty to the respective insurer of such property as part of
an insurance settlement, shall be permitted;
(viii) licenses, sublicenses or transfers by the Parent and its
Subsidiaries of software, trademarks and other intellectual property which
(x) do not materially interfere with the business of the Borrower, the
Borrower and its Subsidiaries taken as a whole or the Parent and its
Subsidiaries taken as a whole and (y) could not reasonably be expected to
have a Material Adverse Effect shall be permitted;
(ix) the Transaction (including Stock Repurchases made in
accordance with Section 9.03) shall be permitted;
(x) so long as no Default or Event of Default exists at the time
of the respective transfer of assets or immediately after giving effect
thereto, (1) the Borrower or any Domestic Wholly-Owned Subsidiary of the
Borrower which is a Guarantor and is not a Segregated Subsidiary at such
time may
-49-
transfer assets or lease to or acquire or lease assets from the
Borrower or any other Domestic Wholly-Owned Subsidiary of the Borrower
which is a Guarantor and is not a Segregated Subsidiary at such time, (2)
the Parent or any of its Subsidiaries may transfer (by means of a dividend
or capital contribution) assets to the Borrower or any Domestic Wholly-
Owned Subsidiary of the Borrower which is a Guarantor and is not a
Segregated Subsidiary at such time (in each case so long as no Indebtedness
arises as a result of such transfer which would be prohibited pursuant to
Section 9.04) and (3) any Foreign Wholly-Owned Subsidiary of the Borrower
may transfer assets to any other Wholly-Owned Subsidiary of the Borrower;
(xi) (1) any Foreign Subsidiary of the Borrower which is a Wholly-
Owned Subsidiary of the Borrower and is not a Segregated Subsidiary at such
time may merge with or into any other Foreign Subsidiary of the Borrower
which is also a Wholly-Owned Subsidiary of the Borrower and is not a
Segregated Subsidiary at such time and (2) any Domestic Wholly-Owned
Subsidiary of the Parent which is a Guarantor and is not a Segregated
Subsidiary at such time may be merged into the Borrower (as long as the
Borrower is the surviving corporation of such merger as a Wholly-Owned
Subsidiary of the Parent) or any other Domestic Wholly-Owned Subsidiary of
the Borrower which is a Guarantor and is not a Segregated Subsidiary at
such time;
(xii) in addition to transfers permitted above, and so long as no
Default or Event of Default exists at the time of the respective transfer
or immediately after giving effect thereto, the Borrower and its Domestic
Wholly-Owned Subsidiaries which are Guarantors shall be permitted to
transfer assets (other than cash, Cash Equivalents and Equity Interests in
any Credit Party) to other Subsidiaries of the Borrower so long as cash in
an amount at least equal to the Fair Market Value of the assets so
transferred is received by the respective transferor;
(xiii) so long as no Default or Event of Default then exists (and
would not exist immediately after giving effect thereto), the Borrower
shall be permitted to repurchase Equity Interests in its Subsidiaries of
the Borrower on the Initial Borrowing Date which are not Wholly-Owned
Subsidiaries of the Borrower on the Initial Borrowing Date (before giving
effect to the respective purchase) at prices not to exceed the Fair Market
Value thereof, provided that, after giving effect to each purchase pursuant
--------
to this clause (xiii), each of (x) the Leverage Ratio shall not exceed the
Minimum Required Leverage Ratio and (y) the Borrower shall have Available
Liquidity after giving effect thereto of at least $75,000,000;
(xiv) inactive Subsidiaries of the Borrower or the Parent (excluding
in any event the Borrower) may be liquidated from time to time, so long as
the Parent or the Borrower, as the case may be, determines that such
liquidation is not reasonably likely to be adverse in any material respect
(including without, limitation, as a result of any assumption of
liabilities) to the Parent or the Borrower;
(xv) Subsidiaries of the Parent on the Initial Borrowing Date,
which do not constitute the Borrower or a Subsidiary thereof, may at any
time after the Initial Borrowing Date be transferred to the Borrower or a
Domestic Wholly-Owned Subsidiary thereof, in each case so long as the
Parent and the Borrower determine that such action is not reasonably likely
to be adverse to the Borrower and its Subsidiaries in any material respect;
(xvi) sales, contributions and other transfers by the Receivables
Sellers of Receivables Facility Assets to the Receivables Subsidiary and
sales and other transfers of Receivables Facility Assets by the Receivables
Subsidiary to one or more purchasers pursuant to the respective Permitted
Receivables Facility, and purchases and acquisitions of Receivables
Facility Assets by the Receivables Subsidiary, in each case pursuant to the
terms of the respective Permitted Receivables Facility, shall be permitted;
(xvii) the Identified Division Sale shall be permitted, provided that
--------
(x) same shall be for Fair Market Value, (y) at least 75% of the aggregate
consideration therefor shall be in the form of cash and (z) 100% of the Net
Sale Proceeds thereof is applied to repay Term Loans as provided in Section
4.02(d);
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(xviii) the Borrower may make sales of the Existing Negotiable
Securities, provided that (x) same shall be for Fair Market Value and (y)
--------
100% of the aggregate consideration therefor shall be in the form of cash;
(xix) so long as no Default or Event of Default then exists, and so
long as no Default or Event of Default will exist after giving effect to
the respective Permitted Acquisition, the Parent and its Wholly-Owned
Subsidiaries may from time to time make Permitted Acquisitions, so long as
the requirements contained in the definition of "Permitted Acquisition" are
satisfied and the aggregate consideration paid (including, without
limitation, the value of any noncompete, earn-out and other deferred payout
arrangements and the principal amount of Seller Debt and Permitted Acquired
Debt, but for this purpose excluding any Parent Common Stock directly
issued as a component of the purchase price) in connection with the
respective Permitted Acquisition does not, without the prior written
consent of the Required Banks, exceed $100,000,000 (or, at any time after
the Borrower shall have received aggregate Net Cash Proceeds (for this
purpose, excluding all such Net Cash Proceeds used, or which will be used,
to redeem, repay or repurchase Existing Senior Subordinated Notes as
provided in the proviso to clause (iv) of Section 9.12) of at least
$250,000,000 from one or more Permitted Subordinated Notes Issuances
effected after the Initial Borrowing Date, $200,000,000);
(xx) to the extent the Parent acquires (but not pursuant to a
Permitted Acquisition) or constructs any Real Property or acquires (but not
pursuant to a Permitted Acquisition) any equipment, in each case after the
Initial Borrowing Date, then (x) in the case of Real Property, within 180
days of the acquisition thereof (or in the case of Real Property being
constructed or upon which substantial improvements are being made, within
180 days after the completion of such construction or substantial
improvements) and (y) in the case of equipment, within 120 days of the
acquisition thereof, the Parent or the respective Subsidiary owning same
may sell the respective Real Property or equipment pursuant to a sale-
leaseback transaction so long as (x) the sale is for Fair Market Value, (y)
at least 75% of the aggregate consideration therefor shall be in the form
of cash and (z) to the extent Capitalized Lease Obligations result from the
respective sale-leaseback, such Capitalized Lease Obligations shall be
permitted pursuant to Section 9.04; and
(xxi) each of the Parent and its Subsidiaries may sell or liquidate,
in each case for cash at fair market value (as reasonably determined by the
Parent or the respective Subsidiary), Cash Equivalents.
Notwithstanding anything to the contrary contained above, in no event shall the
Parent or any of its Subsidiaries (x) sell, transfer or dispose of any Equity
Interests in the Borrower or (y) sell any Equity Interests in any other
Subsidiary of the Parent unless, in the case of this clause (y), the respective
sale or disposition meets the requirements of one or more of the clauses of
Section 9.02 set forth above and unless all Equity Interests in the respective
Subsidiary owned by Parent and its Subsidiaries are sold pursuant to the
respective sale. To the extent the Required Banks waive the provisions of this
Section 9.02 with respect to the sale of any Collateral, or any Collateral is
sold as permitted by this Section 9.02, such Collateral (unless sold to the
Parent or a Subsidiary of the Parent) shall be sold free and clear of the Liens
created by the Security Documents, and the Administrative Agent and Collateral
Agent shall be authorized to take any actions deemed appropriate in order to
effect the foregoing.
9.03 Restricted Payments. Each of the Parent and the Borrower will
-------------------
not, and will not permit any of its Subsidiaries to, authorize, declare or pay
any Dividends with respect to the Parent or any of its Subsidiaries or make any
other Restricted Payment, except that:
(i) any Subsidiary of the Borrower may pay Dividends to its
shareholders, in each case so long as the Borrower or any Subsidiary of the
Borrower which owns an Equity Interest in such Subsidiary receives a
percentage of any such Dividends which is at least equal to its percentage
Equity Interest in the respective Subsidiary paying the Dividend;
-51-
(ii) any Subsidiary of the Parent (other than the Borrower and its
Subsidiaries) any declare and pay dividends or make distributions to the
Parent or a Wholly-Owned Subsidiary of the Parent;
(iii) the Parent may (x) repurchase the Parent Common Stock and/or
options to purchase the Parent Common Stock held by or (y) make payments
pursuant to equity appreciation rights agreements to, directors, executive
officers, members of management or employees of the Parent or any of its
Subsidiaries upon the death, disability, retirement or termination of such
director, executive officers, member of management or employee, so long as
(A) no Default or Event of Default then exists or would exist after giving
effect thereto and (B) the aggregate amount of cash expended by the Parent
pursuant to this clause (iii) shall not exceed $5,000,000 in any Fiscal
Year of the Parent plus the net cash proceeds of Parent Common Stock sold
to directors, executive officers, members of management or employees of the
parent and its Subsidiaries in such fiscal year;
(iv) so long as there shall exist no Default or Event of Default
(both before and after giving effect to the payment thereof), the Borrower
may make Restricted Payments to the Parent, so long as the proceeds thereof
are promptly used by the Parent to (x) pay operating expenses (including
trade payables) in the ordinary course of business and other similar
corporate overhead costs and expenses, (y) pay required fees and expenses
in connection with the Transaction and the registration under applicable
laws and regulations of its equity securities otherwise permitted hereunder
or (z) without duplication of amounts permitted to be dividended pursuant
to the proviso to Section 9.05(xiii), make Investments permitted to be made
pursuant to Section 9.05(xiii);
(v) the Borrower may make Restricted Payments to the Parent to pay
taxes due in the ordinary course of business, provided that (x) any
--------
payments made by the Borrower to the Parent for such purpose which are not
promptly used to pay taxes shall promptly be returned by the Parent to the
Borrower and (y) any tax refunds received by the Parent shall promptly be
returned by the Parent to the Borrower;
(vi) so long as no Default or Event of Default then exists or would
exist immediately after giving effect thereto, the Borrower may make
Restricted Payments to the Parent for the purpose of enabling the Parent to
pay the amounts referred to in clause (iii) of this Section 9.03, so long
as all proceeds thereof are promptly (and in any event within five Business
Days) used by the Parent to pay such amounts;
(vii) so long as there shall exist no Default or Event of Default
(both before and after giving effect to the payment thereof), the Borrower
may make Restricted Payments to the Parent for the sole purpose of enabling
the Parent to (x) pay regularly accruing interest with respect to the
Existing Convertible Notes or other Indebtedness of the Parent outstanding
at such time as permitted pursuant to Section 9.04, in each case in
accordance with the terms of the Existing Convertible Note Indenture or the
documentation governing the other such Indebtedness, or (y) incur
Indebtedness relating to a Permitted Existing Convertible Note Refinancing,
in each case so long as each such Restricted Payment is promptly (and in
any event within two Business Days) used by the Parent for such purpose;
(viii) so long as there shall exist no Default or Event of Default
(both before and after giving effect to the payment thereof), at any time
after the Borrower has received aggregate Net Cash Proceeds (for this
purpose, excluding all such Net Cash Proceeds used, or which will be used,
or are deemed (as provided in Section 9.12) to have been used, to redeem,
repay or repurchase Existing Senior Subordinated Notes as provided in the
proviso to clause (iv) of Section 9.12) of at least $250,000,000 from one
or more Permitted Subordinated Notes Issuances effected after the Initial
Borrowing Date, then the Borrower shall be permitted to make Restricted
Payments to the Parent for the sole purpose of enabling the Parent to
redeem or repay Existing Convertible Notes at maturity, so long as (x)
after giving effect to such payments, the Borrower shall have Available
Liquidity of at least $75,000,000 and the Leverage Ratio
-52-
shall be less than or equal to the Minimum Required Leverage Ratio and (y)
each such Restricted Payment shall be promptly (and in any event within one
Business Day) used by the Parent for the purpose described above;
(ix) on, or substantially concurrently with, the Initial Borrowing
Date the Parent may effect the Initial Stock Repurchases in accordance with
the provisions of Section 5.06, and the Borrower shall be permitted to make
Restricted Payments to the Parent in the aggregate amount needed by the
Parent to effect such Initial Stock Repurchases (so long as all proceeds so
paid by the Borrower to the Parent are in fact used for such purpose);
(x) so long as there shall exist no Default or Event of Default
(both before and after giving effect to the payment thereof), to the extent
the aggregate cost of all of the Initial Stock Repurchases is less than
$500,000,000, an aggregate amount equal to such difference may be used (x)
by the Parent to make Stock Repurchases and/or to redeem, repay or
repurchase then outstanding Existing Convertible Notes from time to time
after the Initial Borrowing Date, and the Borrower may from time to time
make Restricted Payments to the Parent for the purpose of enabling the
Parent to make such payments, so long as each such Restricted Payment is
promptly (and in any event within one Business Day) used by the Parent for
such purpose and/or (y) by the Borrower to redeem, repay or repurchase any
then outstanding Existing Senior Subordinated Notes; provided that (1)
--------
after giving effect to each Restricted Payment and/or each repayment,
redemption or repurchase of Existing Senior Subordinated Notes or Existing
Convertible Notes made pursuant to this clause (x) the Borrower shall be
required to have Available Liquidity of at least $75,000,000 and the
Leverage Ratio shall be less than or equal to the Minimum Required Leverage
Ratio at such time and (2) in the circumstances, and to the extent,
provided in the proviso to clause (x) of the proviso to clause (iv) of
Section 9.12, payments originally made pursuant to clause (y) of this
Section 9.03(x) may thereafter be deemed not made pursuant to this Section
9.03(x);
(xi) so long as there shall exist no Default or Event of Default
(both before and after giving effect to the payment thereof), the Parent
may effect Stock Repurchases in addition to those permitted pursuant to
preceding clauses (ix) and (x) and the Borrower may make Restricted
Payments to the Parent for the purpose of enabling the Parent to make such
payments, so long as each such Restricted Payment is promptly (and in any
event within one Business Day) used by the Parent for such purpose;
provided that (x) the aggregate cost of all Stock Repurchases effected
--------
after the Initial Borrowing Date pursuant to this clause (xi) shall not
exceed $100,000,000, (y) prior to the making of any Restricted Payments
pursuant to this clause (xi), the Borrower shall have received Net Cash
Proceeds (for this purpose, excluding all such Net Cash Proceeds used, or
which will be used, or are deemed (as provided in Section 9.12) to have
been used, to redeem, repay or repurchase Existing Senior Subordinated
Notes as provided in the proviso to clause (iv) of Section 9.12)
aggregating at least $250,000,000 from one or more Permitted Subordinated
Notes Issuances and (z) after giving effect to each Restricted Payment
pursuant to this clause (xi) the Borrower shall have Available Liquidity of
at least $75,000,000 and the Leverage Ratio shall be less than or equal to
the Minimum Required Leverage Ratio;
(xii) at the time any Permitted Acquisition is effected in
accordance with the requirements of Section 9.02(xix) by the Parent or a
Wholly-Owned Subsidiary thereof other than the Borrower and its
Subsidiaries, then to the extent the Parent or the respective such Wholly-
Owned Subsidiary of the Parent has insufficient funds to pay the cash
portion of the consideration owing in connection therewith, the Borrower
shall be permitted (without duplication) to make Restricted Payments
(whether in the form of dividends to the Parent or loans or advances) to
the Parent and/or Investments pursuant to Section 9.05(viii) in such
amounts as may be needed by the Parent or the respective Wholly-Owned
Subsidiary of the Parent to pay such cash consideration, so long as all
amounts so paid by the Borrower are in fact so used by the Parent or the
respective Wholly-Owned Subsidiary of the Parent within five days of the
respective payment (or if not so used, are returned to the Borrower at the
end of such five day period); and
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(xiii) within 90 days after any Permitted Acquisition as described in
preceding Section 9.03(xii) is effected, if any Permitted Acquired Debt was
assumed in connection therewith or remains in existence after giving effect
thereto, then within 90 days after the respective Permitted Acquisition is
effected and to the extent the Parent or the respective such Wholly-Owned
Subsidiary of the Parent repays such Permitted Acquired Debt within said 90
day period and has insufficient funds to pay same, the Borrower shall be
permitted (without duplication) to make Restricted Payments (whether in the
form of dividends to the Parent or loans or advances) to the Parent and/or
Investments pursuant to Section 9.05(ix) in such amounts as may be needed
by the Parent or the respective Wholly-Owned Subsidiary of the Parent to
repay such Permitted Acquired Debt, so long as all amounts so paid by the
Borrower are in fact so used by the Parent or the respective Wholly-Owned
Subsidiary of the Parent within five days of the respective payment (or if
not so used, are returned to the Borrower at the end of such five day
period).
9.04 Indebtedness. Each of the Parent and the Borrower will not, and
------------
will not permit any of its Subsidiaries to, contract, create, incur, assume or
suffer to exist any Indebtedness, except:
(i) Indebtedness incurred pursuant to this Agreement and the other
Credit Documents;
(ii) Indebtedness of the Parent and its Domestic Subsidiaries
(including, without limitation, all Existing Indebtedness of such Persons
listed on Schedule 5.08, Indebtedness of such Persons evidenced by
Capitalized Lease Obligations entered into in accordance with the relevant
requirements of Section 9.08, Indebtedness of such Persons of the type
described in Section 9.01(x), Permitted Acquired Debt and Seller Debt of
such Persons and such other Indebtedness of such Persons as is incurred
pursuant to this clause (ii), but excluding unsecured guarantees by the
Parent of Indebtedness of Foreign Subsidiaries as permitted by following
clause (xvi)) shall be permitted so long as the incurrence of same does not
otherwise give rise to a Default or an Event of Default under this
Agreement and so long as (x) the only Indebtedness of Segregated
Subsidiaries incurred pursuant to this clause (ii) shall consist of
Permitted Acquired Debt incurred in connection with the acquisition of such
Segregated Subsidiary (or, in the case of DDI, Indebtedness of DDI existing
on the Initial Borrowing Date as shown in Schedule 5.08), (y) the aggregate
principal amount of Indebtedness at any time outstanding pursuant to this
clause (ii) does not exceed $125,000,000 and (z) the aggregate principal
amount of all Indebtedness at any time outstanding pursuant to this clause
(ii), when aggregated with the outstanding principal amount of all
Indebtedness then outstanding pursuant to following clause (iii), does not
exceed the Debt Basket Amount as then in effect;
(iii) Indebtedness of Foreign Subsidiaries of the Parent (including
without limitation Existing Indebtedness of such Persons described on
Schedule 5.08, Indebtedness of such Persons evidenced by Capitalized Lease
Obligations entered into in accordance with the relevant requirements of
Section 9.08, Indebtedness of such Persons of the type described in Section
9.01(x), Permitted Acquired Debt and Seller Debt of such Persons and such
other Indebtedness as may be incurred by such Persons for their general
corporate and working capital purposes) shall be permitted so long as the
incurrence of same does not otherwise give rise to a Default or an Event of
Default under this Agreement and so long as the aggregate principal amount
of all Indebtedness at any time outstanding pursuant to this clause (iii),
when aggregated with the then outstanding principal amount of Indebtedness
then outstanding pursuant to preceding clause (ii), does not exceed the
Debt Basket Amount as then in effect;
(iv) accrued expenses and current trade accounts payable incurred
in the ordinary course;
(v) Indebtedness under non-speculative Interest Rate Protection
Agreements relating to the floating rate Indebtedness otherwise permitted
to be outstanding by the provisions of this Section 9.04;
(vi) intercompany Indebtedness (w) of the Borrower and its Wholly-
Owned Subsidiaries, to the extent permitted by clauses (vi), (viii), (ix)
or (xi) of Section 9.05, (x) of one or more Subsidiaries of
-54-
the Borrower owing to the Borrower or a Domestic Wholly-Owned Subsidiary
thereof which is a Subsidiary Guarantor in each case resulting from
Investments made by the Borrower or the respective such Subsidiary
Guarantor in accordance with the requirements of Section 9.05, (y) of any
Foreign Wholly-Owned Subsidiary to any other Foreign Wholly-Owned
Subsidiary of the Borrower, resulting from Investments made pursuant to
Section 9.05 or (z) resulting from Investments permitted to be made
pursuant to Section 9.05(x);
(vii) in addition to any Indebtedness permitted by preceding clause
(vi), Indebtedness of the Parent or any Wholly-Owned Subsidiary of the
Parent to the Parent or another Wholly-Owned Subsidiary of the Parent
constituting the purchase price in respect of intercompany transfers of
goods made in the ordinary course of business to the extent not
constituting Indebtedness for borrowed money;
(viii) Indebtedness evidenced by Other Hedging Agreements entered
into pursuant to Section 9.05(v);
(ix) Indebtedness of the Borrower and its Subsidiaries under
performance bonds, letter of credit obligations to provide security for
workers' compensation claims and bank overdrafts, in each case incurred in
the ordinary course of business, provided that any obligations arising in
--------
connection with such bank overdraft Indebtedness is extinguished within
five Business Days;
(x) Indebtedness incurred by the Parent or any of its Subsidiaries
arising from agreements providing for indemnification related to sales of
goods or adjustment of purchase price or similar obligations in any case
incurred in connection with the disposition of any business, assets or
Subsidiary of the Parent;
(xi) accounts payable to vendors for goods and services obtained in
the normal course of business and under customary terms and conditions;
(xii) (x) Indebtedness of the Parent pursuant to the Existing
Convertible Notes in an aggregate principal amount not to exceed
$325,000,000 less the aggregate amount of all repayments, redemptions
(irrespective of whether at the option of the Parent or the holders
thereof) and conversions thereof and (y) Indebtedness of the Parent
pursuant to any Permitted Existing Convertible Note Refinancing so long as
the requirements contained in the definition of "Permitted Existing
Convertible Note Refinancing" are satisfied;
(xiii) Indebtedness of the Borrower, and subordinated guarantees
thereof by one or more Subsidiaries of the Borrower which constitute
Guarantors hereunder, pursuant to the Existing Senior Subordinated Notes in
an aggregate principal amount not to exceed $90,000,000 less the aggregate
amount of all repayments and redemptions thereof (irrespective of whether
at the option of the Borrower or the holders thereof);
(xiv) Indebtedness which may be deemed to exist pursuant to a
Permitted Receivables Transaction;
(xv) so long as no Default or Event of Default exists at the time
of the issuance thereof and so long as no Default or Event of Default would
exist after giving effect to the incurrence thereof, Indebtedness of the
Borrower pursuant to one or more Permitted Subordinated Notes Issuances
(which Indebtedness may, to the extent provided in the relevant Permitted
Subordinated Notes Documents approved by the Required Banks, be guaranteed
on a subordinated basis by one or more of the Guarantors); provided that
--------
the aggregate principal amount of all Indebtedness incurred after the
Initial Borrowing Date pursuant to this clause (xv) shall not exceed
$450,000,000;
-55-
(xvi) additional unsecured Indebtedness of the Parent consisting of
(x) unsecured guarantees by the Parent of obligations (which guaranteed
obligations do not themselves constitute Indebtedness) of one or more of
its Wholly-Owned Subsidiaries, (y) unsecured promissory notes issued by the
Parent to pay for Parent Common Stock repurchased from time to time
pursuant to Section 9.03(iii), so long as the aggregate principal amount of
outstanding Indebtedness pursuant to this clause (y) at no time exceeds
$5,000,000 and (z) unsecured guarantees by the Parent of Indebtedness of
Foreign Subsidiaries permitted to be incurred and remain outstanding
pursuant to Section 9.04(iii); and
(xvii) unsecured Indebtedness of the Borrower consisting of
guarantees by it of leases pursuant to which one or more of its Wholly-
Owned Domestic Subsidiaries that are Guarantors are the respective lessee.
Notwithstanding anything to the contrary contained above (x) in no event shall
the Parent or the Borrower permit any Unrestricted Subsidiary to incur any
Indebtedness or any other obligation having any element of recourse to the
Parent or any of its Subsidiaries or to any of its assets or property and (y) no
Indebtedness may be incurred pursuant to this Section 9.04 if the incurrence
thereof would be in violation of either of the Existing Indentures (so long as
same remain in effect).
9.05 Advances, Investments and Loans. Each of the Parent and the
-------------------------------
Borrower will not, and will not permit any of its Subsidiaries to, directly or
indirectly, lend money or credit or make advances to any Person, or purchase or
acquire any stock, obligations or securities of, or any other interest in, or
make any capital contribution to, any other Person, or purchase or own a futures
contract or otherwise become liable for the purchase or sale of currency or
other commodities at a future date in the nature of a futures contract, or hold
any cash or Cash Equivalents (all of the foregoing, "Investments"), except that
the following shall be permitted:
(i) the Parent and its Subsidiaries may acquire and hold accounts
receivables arising in the ordinary course of business and owing to any of
them;
(ii) the Parent and its Subsidiaries may acquire and hold cash and
Cash Equivalents;
(iii) the Borrower and its Subsidiaries may make loans and advances
in the ordinary course of business to their respective employees so long as
the aggregate principal amount thereof at any time outstanding (determined
without regard to any write-downs or write-offs of such loans and advances)
shall not exceed $5,000,000;
(iv) the Borrower may enter into Interest Rate Protection
Agreements to the extent permitted in Section 9.04(v);
(v) the Borrower and its Subsidiaries may enter into and perform
their obligations under Other Hedging Agreements entered into in the
ordinary course of business so long as any such Other Hedging Agreement is
not speculative in nature and is (x) related to income derived from foreign
sales or operations of the Borrower or any Subsidiary or otherwise related
to purchases permitted hereunder from foreign suppliers or (y) entered into
to protect the Borrower and/or its Subsidiaries against fluctuations in the
prices of raw materials used in their businesses;
(vi) any Wholly-Owned Subsidiary of the Borrower which is a
Guarantor may make intercompany loans or capital contributions to the
Borrower or any other Domestic Wholly-Owned Subsidiary of the Borrower
which is a Guarantor and is not a Segregated Subsidiary and the Borrower
may make intercompany loans and advances and capital contributions to any
Domestic Wholly-Owned Subsidiary of the Borrower which is a Guarantor and
is not a Segregated Subsidiary, provided that any promissory notes
--------
evidencing such intercompanyloans owing to the Borrower or any Domestic
Wholly-
-56-
Owned Subsidiary of the Borrower shall be pledged (and delivered) as
Collateral pursuant to the Pledge Agreement;
(vii) the Borrower and its Subsidiaries may (x) sell or transfer
assets to the extent permitted by Section 9.02, and may acquire non-cash
consideration in respect thereof to the extent permitted by Section 9.02
and (y) repurchase Equity Interests in certain of its Subsidiaries to the
extent expressly permitted pursuant to Section 9.02(xiii);
(viii) the Borrower may effect Permitted Acquisitions in accordance
with the requirements of Section 9.02(xix) and (without duplication of
amounts paid pursuant to Section 9.03(xii)), an amount equal to the cash
consideration therefor may be contributed, loaned or advanced to, or
invested in, the respective Person (which must be the Parent or a Wholly-
Owned Subsidiary thereof) making such Permitted Acquisition by the Borrower
so long as all amounts so invested are in fact used within five days of the
respective payment to pay such consideration owing in connection with the
respective Permitted Acquisition (or if not so used, are returned to the
Borrower at the end of such five day period);
(ix) within 90 days after any Permitted Acquisition as described in
preceding Section 9.05(viii) is effected, if any Permitted Acquired Debt
was assumed in connection therewith or remains in existence after giving
effect thereto, then within 90 days after the respective Permitted
Acquisition is effected and to the extent the Parent or the respective such
Wholly-Owned Subsidiary of the Parent repays such Permitted Acquired Debt
within said 90 day period and has insufficient funds to pay same, the
Borrower shall be permitted (without duplication of amounts paid pursuant
to Section 9.03(xiii)) to make contributions, loans or advances to, or
investments in, the Parent in such amounts as may be needed by the Parent
or the respective Wholly-Owned Subsidiary of the Parent to repay such
Permitted Acquired Debt, so long as all amounts so paid by the Borrower are
in fact so used by the Parent or the respective Wholly-Owned Subsidiary of
the Parent within five days of the respective payment (or if not so used,
are returned to the Borrower at the end of such five day period);
(x) any Foreign Wholly-Owned Subsidiary of the Borrower may make
intercompany loans or capital contributions to any other Foreign Wholly-
Owned Subsidiary of Borrower;
(xi) additional Investments may be made from time to time in
Segregated Subsidiaries and Foreign Subsidiaries in each case which are
Wholly-Owned Subsidiaries of the Borrower, so long as the aggregate amount
of outstanding Investments at any time pursuant to this clause (xi) (in
each case determined without regard to any write-downs or write-offs of
such Investments) shall not exceed the Segregated and Foreign Subsidiary
Basket Amount as then in effect;
(xii) Investments consisting of guarantees in existence on the
Initial Borrowing Date as disclosed in Section 5.08 or arising thereafter
as a result of guarantees permitted pursuant to Section 9.04(xvi) and
(xvii);
(xiii) so long as no Default or Event of Default then exists or would
exist after giving effect thereto, the Parent and its Subsidiaries may make
additional Investments in an aggregate amount not to exceed the Investment
Basket Amount plus the Net Cash Proceeds realized from one or more sales
after the Initial Borrowing Date of Existing Negotiable Securities;
provided that if any Investment of the type described above in this clause
--------
(xiii) is to be made by the Parent or a Subsidiary of the Parent
other than the Borrower, the Borrower and/or one or more of its
Subsidiaries may dividend, loan, advance or contribute such funds to the
respective Person which is to make the Investment (so long as the
respective Person actually utilizes such proceeds within two Business Days
after its receipt thereof for such purpose), and the amount so invested
pursuant to this proviso to enable the respective Person to make an
Investment as contemplated by this clause (xiii) shall not be double-
counted in determining the amount of Investments theretofore made pursuant
to this clause (xiii);
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(xiv) the Parent and its Subsidiaries may, in the ordinary course of
business, acquire and own investments (including debt obligations) received
in connection with the bankruptcy or reorganization of their suppliers and
customers;
(xv) in addition to Investments otherwise permitted above, the Parent
and its Subsidiaries may hold (1) their interests in their respective
Subsidiaries and (2) Investments as are in effect on the Initial Borrowing
Date which are described on Schedule 9.05; and
(xvi) Investments consisting of U.S. Government Obligations purchased
in order to effect one or more Permitted Defeasances, so long as the U.S.
Government Obligations so purchased are actually used for such purpose.
9.06 Transactions with Affiliates. Each of the Parent and the
----------------------------
Borrower will not, and will not permit any of its Subsidiaries to, enter into
any transaction or series of related transactions, with any Affiliate of the
Parent or any of its Subsidiaries, other than in the ordinary course of business
and on terms and conditions substantially as favorable to the Parent or such
Subsidiary as would reasonably be obtained by the Parent or such Subsidiary at
that time in a comparable arm's-length transaction with a Person other than an
Affiliate, except that:
(i) Restricted Payments may be paid to the extent provided in Section
9.03;
(ii) loans may be made and other transactions may be entered into
between the Borrower and its Subsidiaries to the extent expressly permitted
by Sections 9.02, 9.04 and 9.05;
(iii) customary fees may be paid to non-officer directors of the
Parent;
(iv) the Parent and its Subsidiaries may enter into employment
arrangements with respect to the procurement of services of their
respective officers and employees in the ordinary course of business,
including executive compensation arrangements; and
(v) the Parent may make capital contributions to the Borrower.
9.07 Business. (a) The Parent will engage in no business activities
--------
and shall have no assets or liabilities, other than (x) its obligations set
forth in Section 9.03(iv) and tax obligations in connection with the operations
of the Parent and its Subsidiaries and (y) its ownership of the capital stock of
the Borrower (and such other Subsidiaries as (A) may be owned by the Parent on
the Initial Borrowing Date and listed as being owned by the Parent at such time
on Schedule 7.09 or (B) may be established or acquired by the Parent after the
Initial Borrowing Date in order to effect, or as a result of, one or more
Permitted Acquisitions made by the Parent and its Wholly-Owned Subsidiaries
other than the Borrower and its Subsidiaries, in each case to the extent
permitted pursuant to the definition of Permitted Acquisition contained herein)
and liabilities incident thereto, including its liabilities pursuant to the
Pledge Agreement, the Security Agreement and its guaranty pursuant to Section
14.01.
(b) The Borrower will not, and will not permit any of its
Subsidiaries to, engage (directly or indirectly) in any business other than the
Business and reasonable extensions thereof.
9.08 Capital Expenditures. (a) Each of the Parent and the Borrower
--------------------
will not, and will not permit any of its Subsidiaries to, make any Capital
Expenditures, except that the Borrower and its Subsidiaries may make Capital
Expenditures so long as the aggregate amount of such Capital Expenditures made
under this Section 9.08(a) does not exceed in the aggregate for any fiscal year
of the Borrower the amount (as adjusted as provided in following clause (d)) set
forth below opposite such fiscal year:
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Fiscal Year Ended In Amount
-------------------- ------
1999 $110,000,000
2000 $120,000,000
2001 $130,000,000
2002 $140,000,000
2003 $150,000,000
or thereafter
(b) Notwithstanding anything to the contrary contained in clause (a)
above, to the extent that the aggregate amount of Capital Expenditures made by
the Borrower and its Subsidiaries (excluding only those Capital Expenditures
made pursuant to following clause (c)) in any fiscal year of the Borrower
(beginning with fiscal year 1998) are less than the amount permitted by Section
9.08(a) above (after giving effect to all adjustments pursuant to following
clause (d)), the amount of such difference may be carried forward and used to
make Capital Expenditures in succeeding fiscal years; provided that in no event
--------
shall such expenditures carried forward to any fiscal year exceed 25% of the
amount otherwise permitted to be spent during such fiscal year pursuant to
Section 9.08(a), without giving effect to this clause (b).
(c) In addition to the Capital Expenditures permitted pursuant to
preceding clauses (a) and (b), the Borrower and its Subsidiaries may make
additional Capital Expenditures as follows: (i) the reinvestment of proceeds of
Recovery Events that are not required to be applied to prepay the Loans pursuant
to Section 4.02(g), (ii) the reinvestment of Net Sale Proceeds from asset sales
pursuant to the first proviso to Section 4.02(d) and (iii) Permitted Acquisition
Related Capital Expenditures may be made within one year after the date upon
which the respective Permitted Acquisition (or the first step thereof) is
consummated, in each case so long as the respective Capital Expenditures were
identified prior to the consummation of the respective Permitted Acquisition (or
the first step thereof) in accordance with the definition of Permitted
Acquisition Related Capital Expenditures contained herein. Furthermore, to the
extent that Capital Expenditures for any period include amounts of consideration
paid to construct or acquire any Real Property or equipment as referenced in
Section 9.02(xx) which is subsequently sold pursuant to a sale-leaseback
transaction (which did not reduce the amount of Capital Expenditures in the
respective such period), then an amount equal to the Net Sale Proceeds from the
respective sale-leaseback transaction effected pursuant to Section 9.02(xx) may,
so long as the respective Real Property or equipment is not leased back pursuant
to a Capitalized Lease (it being understood that the amounts used to acquire or
construct the Respective Property shall not be double-counted with the
Capitalized Lease Obligations in determining compliance with this Section 9.08),
be used to make Capital Expenditures in addition to those otherwise permitted
pursuant to preceding clauses (a) and (b) and the immediately preceding
sentence.
(d) At the time any $50 Million Permitted Acquisition is consummated,
the amounts specified in the table appearing in preceding clause (a) shall be
deemed automatically adjusted on a prospective basis as follows: (i) for each
Fiscal Year which begins and ends after the date of the consummation of the
respective $50 Million Permitted Acquisition the amount specified in the table
above shall be increased by an amount equal to 110% of the Capital Expenditures
actually made by the entity being acquired pursuant to the respective $50
Million Permitted Acquisition for the last twelve months for which financial
statements are available prior to the date of the consummation of the respective
$50 Million Permitted Acquisition and (ii) for the Fiscal Year during which the
respective $50 Million Permitted Acquisition is being made, the amount set forth
in the table above shall be increased by an amount equal to the product of (x)
the amount of the increase for a given Fiscal Year beginning and ending after
the date upon which the respective $50 Million Permitted Acquisition was
consummated as provided in preceding clause (i), multiplied by (y) a fraction
the numerator of which is the
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number of days remaining in the Fiscal Year during which the respective $50
Million Permitted Acquisition was consummated and the denominator of which is
365 or 366, as the case may be.
9.09 Consolidated Interest Coverage Ratio. The Parent and the
------------------------------------
Borrower will not permit the Consolidated Interest Coverage Ratio for any Test
Period, in each case taken as one accounting period, ended on the last day of a
fiscal quarter described below to be less than the amount set forth opposite
such fiscal quarter below:
Fiscal Quarter
Ended Closest To Ratio
---------------- -----
April 30, 1998 2.25:1.00
July 31, 1998 2.25:1.00
October 31, 1998 2.25:1.00
January 31, 1999 2.25:1.00
April 30, 1999 2.25:1.00
July 31, 1999 2.25:1.00
October 31, 1999 2.25:1.00
January 31, 2000 2.50:1.00
April 30, 2000 2.50:1.00
July 31, 2000 2.50:1.00
October 31, 2000 2.50:1.00
January 31, 2001 2.75:1.00
April 30, 2001 2.75:1.00
July 31, 2001 2.75:1.00
October 31, 2001 2.75:1.00
January 31, 2002 3.00:1.00
April 30, 2002 3.00:1.00
July 31, 2002 3.00:1.00
October 31, 2002 3.00:1.00
January 31, 2003 3.25:1.00
and thereafter
9.10 Consolidated Fixed Charge Coverage Ratio. The Parent and the
----------------------------------------
Borrower will not permit the Consolidated Fixed Charge Coverage Ratio for any
Test Period, in each case taken as one accounting period, ended on the last day
of any fiscal quarter described below to be less than the amount set forth
opposite such fiscal quarter below:
Fiscal Quarter
Ended Closest To Ratio
---------------- -----
April 30, 1998 1.40:1.00
July 31, 1998 1.40:1.00
October 31, 1998 1.40:1.00
January 31, 1999 1.40:1.00
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April 30, 1999 1.50:1.00
July 31, 1999 1.50:1.00
October 31, 1999 1.50:1.00
January 31, 2000 1.50:1.00
April 30, 2000 1.65:1.00
July 31, 2000 1.65:1.00
October 31, 2000 1.65:1.00
January 31, 2001 1.65:1.00
April 30, 2001 1.85:1.00
July 31, 2001 1.85:1.00
October 31, 2001 1.85:1.00
January 31, 2002 1.85:1.00
April 30, 2002 2.00:1.00
July 31, 2002 2.00:1.00
October 31, 2002 2.00:1.00
January 31, 2003 2.00:1.00
and thereafter
9.11 Maximum Leverage Ratio. The Parent and the Borrower will not
----------------------
permit the Leverage Ratio at any time during a period described below to be
greater than the ratio set forth opposite such period below:
Period Ratio
------ -----
Initial Borrowing Date to but excluding the last day of the
Parent's fiscal quarter ended closest to April 30, 1999 5.00:1.00
last day of Parent's fiscal quarter ended closest to April
30, 1999 to but excluding the last day of the Parent's
fiscal quarter ended closest to January 31, 2000 4.75:1.00
last day of Parent's fiscal quarter ended closest to
January 31, 2000 to but excluding the last day of the
Parent's fiscal quarter ended closest to October 31, 2000 4.50:1.00
last day of Parent's fiscal quarter ended closest to
October 31, 2000 to but excluding the last day of the
Parent's fiscal quarter ended closest to April 30, 2001 4.25:1.00
last day of Parent's fiscal quarter ended closest to April
30, 2001 to but excluding the last day of the Parent's
fiscal quarter ended closest to October 31, 2001 4.00:1.00
last day of Parent's fiscal quarter ended closest to
October 31, 2001 to but excluding the last day of the
Parent's fiscal quarter ended closest to April 30, 2002 3.75:1.00
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last day of Parent's fiscal quarter ended closest to April
30, 2002 to but excluding the last day of the Parent's
fiscal quarter ended closest to October 31, 2002 3.50:1.00
last day of Parent's fiscal quarter ended closest to
October 31, 2002 to but excluding the last day of the
Parent's fiscal quarter ended closest to January 31, 2003 3.25:1.00
Thereafter 3.00:1.00
9.12 Limitation on Voluntary Payments and Modifications of
-----------------------------------------------------
Indebtedness; Modifications of Certificate of Incorporation, By-Laws and Certain
--------------------------------------------------------------------------------
Other Agreements; etc. Each of the Parent and the Borrower will not, and will
---------------------
not permit any of its Subsidiaries to, (i) amend or modify, or permit the
amendment or modification of, any provision of the Existing Indebtedness or of
any agreement (including, without limitation, any purchase agreement, indenture,
loan agreement or security agreement) relating thereto other than any amendments
or modifications to the Existing Indebtedness or of any agreement relating
thereto which do not in any way materially and adversely affect the interests of
the Banks, (ii) after the entering into the Permitted Receivables Transaction,
amend or modify, or permit the amendment or modification of, any provision of
the documentation relating thereto, except for amendments or modifications which
are not in any way adverse to the interests of the Banks or that are determined
to be immaterial by the Agents, (iii) after the occurrence of any Permitted
Subordinated Notes Issuance or Permitted Existing Convertible Note Refinancing,
amend or modify, or permit the amendment or modification of, any provision of
the documentation relating thereto, except for amendments or modifications which
are not in any way adverse to the interests of the Banks or that are determined
to be immaterial by the Agents, (iv) make (or give any notice in respect of) any
voluntary or optional payment or prepayment on or redemption or acquisition for
value of (including, without limitation, by way of depositing with the trustee
with respect thereto or any Person, money or securities before due for the
purpose of paying when due), exchange or purchase, redeem or acquire for value
(whether as a result of a change of control, the consummation of asset sales or
otherwise) any Existing Convertible Note, any Existing Senior Subordinated Note
or, after the issuance thereof, any Permitted Subordinated Note or any
Refinancing Convertible Note; provided that (x) Existing Senior Subordinated
--------
Notes may be redeemed, repaid or repurchased (and if repurchased, same shall be
cancelled) (1) with the Net Cash Proceeds of one or more Permitted Subordinated
Notes Issuances (and, to the extent such Net Cash Proceeds are so used, same
shall not be included for purposes of determining the Net Cash Proceeds
therefrom available for purposes of clauses (viii) or (xi) of Section 9.03) and
(2) in the circumstances, and in the amounts, provided in Section 9.03(x);
provided that to the extent any Existing Senior Subordinated Notes are redeemed,
--------
repaid or repurchased in accordance with the provisions of preceding clause (2)
and if the Borrower thereafter effects one or more Permitted Subordinated Notes
Issuances, then to the extent of the Net Cash Proceeds therefrom (which have not
been applied for the purposes specified in clauses (viii) and (xi) of Section
9.03) the Borrower may, by written notice to the Administrative Agent, provide
that such Existing Senior Subordinated Notes payments (or a specified portion
thereof) shall at all times thereafter be deemed to have been made pursuant to
preceding clause (1) rather than preceding clause (2), in which case the
Existing Senior Subordinated Notes payments so specified (up to the amount of
such Net Cash Proceeds of one or more Permitted Subordinated Notes Issuances not
applied pursuant to clauses (viii) and (xi) of Section 9.03) shall be deemed to
have been made under preceding clause (1) (and same shall at all times
thereafter be deemed not to have been made pursuant to preceding clause (2) or
pursuant to Section 9.03(x)) and (y) Existing Convertible Notes may be redeemed,
repaid or repurchased (and if repurchased, same shall be cancelled) (1) with the
Net Cash Proceeds of any Permitted Existing Convertible Note Refinancing and (2)
in the circumstances, and in the amounts, provided in Section 9.03(x) or (v)
amend, modify or change its certificate of incorporation (including, without
limitation, by the filing or modification of any certificate of designation) or
by-laws, or any agreement entered into by it, with respect to its capital stock
(including any Shareholders' Agreement), or enter into any new
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agreement with respect to its capital stock, other than any amendments,
modifications or changes pursuant to this clause (v) or any such new agreements
pursuant to this clause (v) which the Borrower reasonably concludes do not
adversely affect the interests of the Banks, provided that nothing in this
clause (v) shall prevent the Parent or any of its Subsidiaries from amending its
certificate of incorporation or by-laws to permit the Parent to issue such
capital stock as is provided in Section 9.14 or to permit any Permitted Existing
Convertible Note Refinancing or to permit the issuance of Qualified Preferred
Stock of the Parent.
9.13 Limitation on Certain Restrictions on Subsidiaries. Each of the
--------------------------------------------------
Parent and the Borrower will not, and will not permit any of its Subsidiaries
to, directly or indirectly, create or otherwise cause or suffer to exist or
become effective any encumbrance or restriction on the ability of any such
Subsidiary to (a) pay dividends or make any other distributions on its capital
stock or any other interest or participation in its profits owned by the
Borrower or any Subsidiary of the Borrower, or pay any Indebtedness owed to the
Borrower or a Subsidiary of the Borrower, (b) make loans or advances to the
Borrower or any of the Borrower's Subsidiaries or (c) transfer any of its
properties or assets to the Borrower or any of the Borrower's Subsidiaries,
except for such encumbrances or restrictions existing under or by reason of (i)
applicable law, (ii) this Agreement and the other Credit Documents, (iii) one or
more restrictions in effect on the Initial Borrowing Date so long as any such
restrictions are identified (and the related Indebtedness is described) on
Schedule 9.13, (iv) customary provisions restricting subletting or assignment of
any lease governing a leasehold interest of the Borrower or a Subsidiary of the
Borrower, (v) customary provisions restricting assignment of any licensing
agreement entered into by the Borrower or a Subsidiary of the Borrower in the
ordinary course of business, (vi) customary restrictions applicable to the
Receivables Subsidiary contained in the documentation approved by the
Administrative Agent and the Required Banks relating to any Permitted
Receivables Transaction, (vii) any holder of a Permitted Lien may restrict the
transfer of the asset or assets subject thereto, (viii) any Indebtedness
incurred after the Initial Borrowing Date in accordance with the provisions of
this Agreement may contain restrictions which are not more restrictive than
those contained in this Agreement, (ix) to the extent any Subsidiary acquired or
created after the Initial Borrowing Date is the obligor with respect to
Permitted Acquired Debt permitted to remain outstanding pursuant to the terms of
this Agreement, such Permitted Acquired Debt may contain restrictions of the
type otherwise described above with respect to such Subsidiary (so long as such
restrictions were not created in contemplation of such Person becoming a
Subsidiary or made more restrictive after the date of the respective
acquisition) and (x) Indebtedness of Foreign Subsidiaries owing to persons other
than the Parent and its Subsidiaries may contain restrictions of the type
otherwise prohibited above, in each case so long as the Borrower in good faith
determines that said restrictions are not likely to give rise to a violation of
the financial covenants contained in this Agreement and notifies the
Administrative Agent in writing of said restrictions not later than the last day
of the fiscal quarter of the Parent in which the respective Indebtedness is
incurred or restriction became effective (or, in the case of any such
restrictions existing on the Initial Borrowing Date, not later than the last day
of the fiscal quarter of the Parent ended closest to July 31, 1998), and so long
as the Parent and the Borrower take such restrictions into account in
determining compliance with the financial covenants contained herein.
9.14 Limitation on Issuance of Capital Stock. (a) The Parent will
---------------------------------------
not issue (i) any preferred stock, other than Qualified Preferred Stock, or (ii)
any redeemable (except at the sole option of the Parent) common stock.
(b) The Borrower will not issue, and the Parent and the Borrower
shall not permit any of their Subsidiaries to issue, any capital stock
(including by way of sales of treasury stock) or any options or warrants to
purchase, or securities convertible into, capital stock, except (i) for
transfers and replacements of then outstanding shares of capital stock, (ii) for
stock splits, stock dividends and additional issuances which do not decrease the
percentage ownership of the Parent or any of its Subsidiaries in any class of
the capital stock of the Borrower or such Subsidiary, (iii) in the case of
Foreign Subsidiaries of the Borrower, to qualify directors to the extent
required by applicable law, and (iv) Subsidiaries of the Borrower formed after
the Initial Borrowing Date may issue capital stock to the Borrower or the
respective Subsidiary of the Borrower which is to own such stock. All capital
stock issued in accordance with this Section 9.14(b) shall, to the extent
required by the Pledge Agreement, be delivered to the Collateral Agent for
pledge pursuant to the Pledge Agreement.
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9.15 ERISA Compliance. With respect to any Plan, the Parent shall
----------------
not, nor shall it permit any of its Subsidiaries or ERISA Affiliates to:
(a) engage in any "prohibited transaction" (as such term is defined
in Section 406 of ERISA or Section 4975 of the Code) for which a civil
penalty pursuant to Section 502(i) of ERISA or a tax pursuant to Section
4975 of the Code in excess of $500,000 could be imposed;
(b) incur any "accumulated funding deficiency" (as such term is
defined in Section 302 of ERISA), whether or not waived, or permit any
Unfunded Liability which, when added to the aggregate amount of all other
Unfunded Liabilities, to exceed $750,000;
(c) permit the occurrence of any Termination Event which could
result in a liability to the Parent, any Subsidiary of the Parent or any
ERISA Affiliate in excess of $500,000;
(d) except as discussed on Schedule 7.10, be an "employer" (as such
term is defined in Section 3(5) of ERISA) required to contribute to any
Multiemployer Plan or a "substantial employer" (as such term is defined in
Section 4001(a)(2) of ERISA) required to contribute to any Multiemployer
Plan; or
(e) permit the establishment or amendment of any plan or fail to
comply with the applicable provisions of ERISA and the Code with respect to
any Plan which could result in liability to the Parent, any Subsidiary of
the Parent or any ERISA Affiliate which, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.
9.16 Limitation on Receivables Subsidiary and Permitted Receivables
--------------------------------------------------------------
Facility. (a) After the establishment thereof, the Receivables Subsidiary
--------
shall engage in no business activities other than the purchase, acquisition,
sale and pledge of receivables (or interest therein) and related Receivables
Facility Assets pursuant to one or more Permitted Receivables Facilities and
borrowings thereunder and any business activities reasonably incidental thereto,
all in accordance with the terms of the respective Permitted Receivables
Facility, and shall have no assets or liabilities other than Receivables
Facility Assets, cash collections therefrom, any investments of such cash
collections and other assets and liabilities reasonably incidental to the
foregoing activities, and shall in no event purchase any receivables from any
Unrestricted Subsidiary.
(b) The Parent and its Subsidiaries shall not cause, permit or
suffer to exist (including as a result of actions taken by the respective
receivables purchasers) any termination of a Permitted Receivables Facility on
any date prior to the Term Loan Maturity Date, except in the event the Permitted
Receivables Facility is repaid, refinanced or otherwise replaced in accordance
with the terms hereof by a replacement Permitted Receivables Facility.
SECTION 10. Events of Default. Upon the occurrence of any of the
-----------------
following specified events (each an "Event of Default"):
10.01 Payments. The Borrower shall (i) default in the payment when
--------
due of any principal of any Loan or any Note or (ii) default, and such default
shall continue unremedied for three or more Business Days, in the payment when
due of any Unpaid Drawings or interest on any Loan or Note, or any Fees or any
other amounts owing hereunder or thereunder; or
10.02 Representations, etc. Any representation, warranty or
---------------------
statement made by any Credit Party herein or in any other Credit Document or in
any certificate delivered pursuant hereto or thereto shall prove to be untrue in
any material respect on the date as of which made or deemed made; or
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10.03 Covenants. The Parent or the Borrower shall (i) default in the
---------
due performance or observance by it of any term, covenant or agreement contained
in Section 8.01(g)(i), the second sentence of Section 8.08, Section 8.12,
Section 8.18, Section 8.19 or Section 9 (other than Section 9.15) or (ii)
default in the due performance or observance by it of any other term, covenant
or agreement contained in this Agreement and in the case of any default
specified in this clause (ii) such default shall continue unremedied for a
period of 30 days after written notice to the Borrower by any Agent (whether
acting on its own or at the request of the Required Banks); or
10.04 Default Under Other Agreements. (i) The Parent or any of its
------------------------------
Subsidiaries shall (x) default in any payment of any Indebtedness (other than
the Obligations) beyond the period of grace, if any, provided in the instrument
or agreement under which such Indebtedness was created or (y) default in the
observance or performance of any agreement or condition relating to any
Indebtedness (other than the Obligations) or contained in any instrument or
agreement evidencing, securing or relating thereto, or any other event shall
occur or condition exist, the effect of which default or other event or
condition is to cause, or to permit the holder or holders of such Indebtedness
(or a trustee or agent on behalf of such holder or holders) to cause (determined
without regard to whether any notice is required), any such Indebtedness to
become due prior to its stated maturity, or (ii) any Indebtedness (other than
the Obligations) of the Parent or any of its Subsidiaries shall be declared to
be due and payable, or required to be prepaid other than by a regularly
scheduled required prepayment, prior to the stated maturity thereof, provided
--------
that it shall not be a Default or an Event of Default under this Section 10.04
unless the aggregate principal amount of all Indebtedness as described in
preceding clauses (i) and (ii) is at least $7,500,000; or
10.05 Bankruptcy, etc. The Parent or any of its Subsidiaries
----------------
(excluding Insignificant Subsidiaries) shall commence a voluntary case
concerning itself under Title 11 of the United States Code entitled
"Bankruptcy," as now or hereafter in effect, or any successor thereto (the
"Bankruptcy Code"); or an involuntary case is commenced against the Parent or
any of its Subsidiaries (excluding Insignificant Subsidiaries) and the petition
is not controverted within 15 days, or is not dismissed within 60 days, after
commencement of the case; or a custodian (as defined in the Bankruptcy Code) is
appointed for, or takes charge of, all or substantially all of the property of
the Parent or any of its Subsidiaries (excluding Insignificant Subsidiaries), or
the Parent or any of its Subsidiaries (excluding Insignificant Subsidiaries)
commences any other proceeding under any reorganization, arrangement, adjustment
of debt, relief of debtors, dissolution, insolvency or liquidation or similar
law of any jurisdiction whether now or hereafter in effect relating to the
Parent or any of its Subsidiaries (excluding Insignificant Subsidiaries), or
there is commenced against the Parent or any of its Subsidiaries (excluding
Insignificant Subsidiaries) any such proceeding which remains undismissed for a
period of 60 days, or the Parent or any of its Subsidiaries (excluding
Insignificant Subsidiaries) is adjudicated insolvent or bankrupt; or any order
of relief or other order approving any such case or proceeding is entered; or
the Parent or any of its Subsidiaries (excluding Insignificant Subsidiaries)
suffers any appointment of any custodian or the like for it or any substantial
part of its property to continue undischarged or unstayed for a period of 60
days; or the Parent or any of its Subsidiaries (excluding Insignificant
Subsidiaries) makes a general assignment for the benefit of creditors; or any
corporate action is taken by the Parent or any of its Subsidiaries (excluding
Insignificant Subsidiaries) for the purpose of effecting any of the foregoing;
or
10.06 ERISA. (a) Any Plan shall fail to satisfy the minimum funding
-----
standard required for any plan year or part thereof under Section 412 of the
Code or Section 302 of ERISA or a waiver of such standard or extension of any
amortization period is sought or granted under Section 412 of the Code or
Section 303 or 304 of ERISA, a Reportable Event shall have occurred, any Plan
which is subject to Title IV of ERISA shall have had or is likely to have a
trustee appointed to administer such Plan, any Plan which is subject to Title IV
of ERISA is, shall have been or is likely to be terminated or to be the subject
of termination proceedings under ERISA, any Plan shall have an Unfunded
Liability, a contribution required to be made with respect to a Plan has not
been timely made, the Parent or any Subsidiary of the Parent or any ERISA
Affiliate has incurred or is likely to incur any liability to or on account of a
Plan under Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204
or 4212 of ERISA or Section 401(a)(29), 4971 or 4975 of the Code or on account
of a group health plan (as
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defined in Section 607(1) of ERISA or Section 4980B(g)(2) of the Code) under
Section 4980B of the Code, or the Parent or any Subsidiary of the Parent has
incurred or is likely to incur liabilities pursuant to one or more employee
welfare benefit plans (as defined in Section 3(1) of ERISA) that provide
benefits to retired employees or other former employees (other than as required
by Section 601 of ERISA) or Plans; (b) there shall result from any such event or
events the imposition of a lien, the granting of a security interest, or a
liability or a material risk of incurring a liability; and (c) such lien,
security interest or liability, individually, and/or in the aggregate, in the
opinion of the Required Banks, has had, or could reasonably be expected to have,
a Material Adverse Effect; or
10.07 Security Documents. At any time after the execution and
------------------
delivery thereof, any of the Security Documents shall cease to be in full force
and effect (except in accordance with the terms thereof), or shall cease in any
material respect to give the Collateral Agent for the benefit of the Secured
Creditors the Liens, rights, powers and privileges purported to be created
thereby (including, without limitation, a perfected security interest in, and
Lien on, all of the Collateral (excluding assets valued at up to $250,000 in the
aggregate; provided that if the Borrower is notified by the Administrative Agent
--------
of a lack of perfection with respect to any of the Collateral, the Borrower will
take such steps as are necessary or advisable to perfect the Collateral Agent's
security interest in such Collateral)), in favor of the Collateral Agent,
superior to and prior to the rights of all third Persons (except as permitted by
Section 9.01), and subject to no other Liens (except as permitted by Section
9.01), or any Credit Party shall default in the due performance or observance of
any term, covenant or agreement on its part to be performed or observed pursuant
to any of the Security Documents and such default shall continue beyond any
grace period specifically applicable thereto pursuant to the terms of such
Security Document; or
10.08 Guaranty. Any Guaranty or any provision thereof shall cease to
--------
be in full force or effect as to the relevant Guarantor (unless such Guarantor
is no longer a Subsidiary by virtue of a liquidation, sale, merger or
consolidation permitted by Section 9.02), or any Guarantor or Person acting by
or on behalf of such Guarantor shall deny or disaffirm such Guarantor's
obligations under the relevant Guaranty, or any Guarantor shall default in the
due performance or observance of any term, covenant or agreement on its part to
be performed or observed pursuant to its Guaranty; or
10.09 Judgments. One or more judgments or decrees shall be entered
---------
against the Parent or any of its Subsidiaries involving in the aggregate for the
Parent and its Subsidiaries a liability (not paid by (or on behalf of) the
Parent or any of its Subsidiaries or fully covered by a reputable and solvent
insurance company) and such judgments and decrees either shall be final and non-
appealable or shall not be vacated, discharged or stayed or bonded pending
appeal for any period of 60 consecutive days, and the aggregate amount of all
such judgments and decrees, to the extent not covered by insurance, exceeds
$7,500,000; or
10.10 Change of Control. A Change of Control shall occur; or
-----------------
10.11 Receivables Facility. Any early amortization event or event
--------------------
permitting any receivables purchaser or receivables purchasers to effect an
early termination of any Permitted Receivables Facility (or a portion thereof)
shall have occurred and be continuing (after giving effect to any legally valid
written waivers of such events adopted by the relevant receivables purchasers);
then, and in any such event, and at any time thereafter, if any Event of Default
shall then be continuing, the Administrative Agent, upon the written request of
the Required Banks, shall by written notice to the Borrower, take any or all of
the following actions, without prejudice to the rights of any Agent, any Bank or
the holder of any Note to enforce its claims against any Credit Party (provided
--------
that, if an Event of Default specified in Section 10.05 shall occur with respect
to the Borrower, the result which would occur upon the giving of written notice
by the Administrative Agent to the Borrower as specified in clauses (i) and (ii)
below shall occur automatically without the giving of any such notice): (i)
declare the Total Commitments terminated, whereupon all Commitments of each Bank
shall forthwith terminate immediately and any Commitment Commission shall
forthwith become due and payable without any other notice of any kind; (ii)
declare the principal of and any accrued interest in respect of all Loans and
the Notes and all Obligations owing hereunder and thereunder to be,
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whereupon the same shall become, forthwith due and payable without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
each Credit Party; (iii) terminate any Letter of Credit, which may be
terminated, in accordance with its terms; (iv) direct the Borrower to pay (and
the Borrower agrees that upon receipt of such notice, or upon the occurrence of
an Event of Default specified in Section 10.05 with respect to the Borrower, it
will pay) to the Collateral Agent at the Payment Office such additional amount
of cash, to be held as security by the Collateral Agent, as is equal to the
aggregate Stated Amount of all Letters of Credit issued for the account of the
Borrower and then outstanding; (v) enforce, as Collateral Agent, all of the
Liens and security interests created pursuant to the Security Documents; and
(vi) apply any cash collateral as provided in Section 4.02.
SECTION 11. Definitions and Accounting Terms.
--------------------------------
11.01 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):
"Additional Collateral" shall mean all property (whether real or
personal) in which security interests are granted (or have been purported to be
granted) (and continue to be in effect at the time of determination) pursuant to
Section 8.14.
"Additional Mortgage" shall have the meaning provided in Section
8.14(a).
"Additional Mortgaged Property" shall have the meaning provided in
Section 8.14(a).
"Additional Security Documents" shall mean all mortgages, pledge
agreements, security agreements and other security documents entered into
pursuant to Section 8.14 with respect to Additional Collateral, as each such
document may be modified, supplemented or amended from time to time.
"Administrative Agent" shall have the meaning provided in the first
paragraph of this Agreement, and any successor thereto.
"Affected Eurodollar Loans" shall have the meaning provided in Section
4.02(g).
"Affiliate" shall mean, with respect to any Person, any other Person
(including, for purposes of Section 9.06 only, all directors, officers and
partners of such Person) directly or indirectly controlling, controlled by, or
under direct or indirect common control with, such Person; provided, however,
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that for purposes of Section 9.06, an Affiliate of the Parent shall include any
Person that directly or indirectly owns more than 10% of any class of the
capital stock of the Parent and any officer or director of the Parent or the
Borrower. 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 other Person, whether through the ownership
of voting securities, by contract or otherwise.
"Agent" shall mean each of the Administrative Agent, the Syndication
Agent, each Co-Documentation Agent and the Collateral Agent.
"Agreement" shall mean this Credit Agreement, as modified,
supplemented, amended, restated, extended, renewed or replaced from time to
time.
"Agreement Accounting Principles" shall mean generally accepted
accounting principles as in effect from time to time, applied in a manner
consistent with those used in preparing the Financial Statements (with such
modifications as may be required or approved by the Parent's independent
accountants referenced in Section 8.01(c)); provided, however, for purposes of
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all computations required to be made with respect to compliance by the Parent,
the Borrower and their Subsidiaries with Sections 4.02, Section 9 and
determinations of
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the Leverage Ratio and all other financial terms, such term shall mean generally
accepted accounting principles as in effect on the date hereof, applied in a
manner consistent with those used in preparing the Financial Statements.
"Applicable Commitment Commission Percentage" and "Applicable Margin"
shall mean, from and after any Start Date to and including the corresponding End
Date, the respective percentage per annum set forth below under the respective
Type and Tranche of Loans (or under the Applicable Commitment Commission
Percentage in the case of the Applicable Commitment Commission Percentage) and
opposite the respective Level (i.e., Xxxxx 0, Xxxxx 0, Xxxxx 0, Xxxxx 0, Xxxxx
----
5, Level 6 or Level 7, as the case may be) indicated to have been achieved on
the applicable Test Date for such Start Date (as shown on the respective
officer's certificate delivered pursuant to Section 8.01(f) or the second
proviso below):
Applicable Margin Applicable Margin Applicable Margin Applicable Margin Applicable
for Term Loans for Term Loans for Revolving Loans for Revolving Loans Commitment
maintained as maintained as maintained as maintained as Commission
Level Leverage Ratio Base Rate Loans Eurodollar Loans Base Rate Loans Eurodollar Loans Percentage
----- -------------- --------------- ---------------- --------------- ---------------- ----------
1 Less than or equal 0.250% 1.500% 0% 0.750% 0.250%
to
2.00:1.00
2 Greater than 0.250% 1.500% 0% 0.875% 0.250%
2.00:1.00
but less than or
equal to 2.50:1.00
3 Greater than 0.250% 1.500% 0% 1.000% 0.275%
2.50:1.00
but less than or
equal to 3.00:1.00
4 Greater than 0.500% 1.750% 0% 1.250% 0.300%
3.00:1.00
but less than or
equal to 3.25:1.00
5 Greater than 0.500% 1.750% 0.250% 1.500% 0.350%
3.25:1.00
but less than or
equal to 3.75:1.00
6 Greater than 0.750% 2.000% 0.500% 1.750% 0.375%
3.75:1.00
but less than or
equal to 4.25:1.00
7 Greater than 1.250% 2.500% 1.000% 2.250% 0.500%
4.25:1.00
; provided, however, that if the Parent fails to deliver the financial
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statements required to be delivered pursuant to Section 8.01(b) or (c)
(accompanied by the officer's certificate required by Section 8.01(f) showing
the applicable
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Leverage Ratio on the relevant Test Date) on or prior to the respective date
required by such Sections, then Level 7 pricing shall apply until such time, if
any, as the financial statements required as set forth above and the
accompanying officer's certificate have been delivered showing the pricing for
the respective Margin Reduction Period is at a level which is less than Level 7
(it being understood that, in the case of any late delivery of the financial
statements and officer's certificate as so required, the reduced Applicable
Commitment Commission Percentage and Applicable Margin, if any, shall apply only
from and after the date of the delivery of the complying financial statements
and officers' certificates); provided further, that if at any time a $50 Million
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Permitted Acquisition is effected, any $50 Million Asset Sale is effected, any
Material Discontinuance of Operations occurs or one or more Stock Repurchases
are made as a result of which the aggregate consideration paid in connection
with all Stock Repurchases made after the last Test Date (or, if later, the last
date upon which a recalculation was done pursuant to this proviso for Stock
Repurchases) are in excess of $50,000,000, then in any such case within 2
Business Days after the date of the respective such event described above in
this proviso (with said second Business Day being herein called a "Non-Scheduled
Start Date"), the Parent shall deliver to the Administrative Agent a new
officer's certificate showing the Leverage Ratio as same was otherwise
calculated for the respective Margin Reduction Period theretofore in effect, but
adjusted on a Pro Forma Basis for all events as described above in this proviso
--- -----
(and all Indebtedness incurred in connection therewith) which occurred after the
Test Date for such Margin Reduction Period, which Leverage Ratio shall apply
until the end of the Margin Reduction Period which begins on the respective Non-
Scheduled Start Date; provided further, that Level 7 pricing shall apply at any
-------- -------
time when any Specified Default or any Event of Default is in existence.
Notwithstanding anything to the contrary contained in the immediately preceding
sentence, but subject to the last proviso thereto, Xxxxx 0 pricing shall apply
for the period from the Effective Date to but not including the date which is
the first Start Date after the Parent's fiscal quarter ended nearest April 30,
1998.
"Applicable Debt Percentage" shall mean 100%, provided that if any
--------
time after the Initial Borrowing Date (x) the Leverage Ratio shall be less than
2.00:1.00 and (y) no Default or Event of Default then exists, then the
Applicable Debt Percentage shall be reduced to 50% for so long as the conditions
specified in preceding clauses (x) and (y) continue to be satisfied.
"Applicable Margin": see definition of Applicable Commitment
Commission Percentage.
"Asset Sale" shall mean any sale, transfer or other disposition by the
Parent or any of its Subsidiaries to any Person other than the Borrower or any
Wholly-Owned Subsidiary of the Borrower of any asset or Property (including,
without limitation, any Equity Interests or other securities of another Person,
but excluding the sale by the Parent of its own capital stock) of the Parent or
such Subsidiary other than (i) sales, transfers or other dispositions of
inventory made in the ordinary course of business, (ii) sales, transfers or
other dispositions of assets pursuant to clauses (v) (inventory), (vi) (overdue
receivables), (vii) (condemned property) and (xx) (sale/leasebacks) of Section
9.02, (iii) sales or liquidations of Existing Negotiable Securities or Cash
Equivalents, (iv) sales of Receivables Facility Assets pursuant to any Permitted
Receivables Transaction and (v) any single sale of assets (or series of related
sales of assets) which generates Net Sale Proceeds of less than $250,000.
"Assignment and Assumption Agreement" shall mean the Assignment and
Assumption Agreement substantially in the form of Exhibit J (appropriately
completed).
"Available Liquidity" at any time shall mean an amount equal to the
then Total Available Revolving Loan Commitment less the sum of the aggregate
principal amount of Revolving Loans and Swingline Loans and Letter of Credit
Outstandings at such time.
"Available Revolving Loan Commitment" shall mean, for each Bank, the
Revolving Loan Commitment of such Bank as then in effect less such Bank's
Percentage of the amount of the Blocked Commitment, if any, at such time.
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"Bank" shall mean each financial institution listed on Schedule I, as
well as any Person which becomes a "Bank" hereunder pursuant to 13.04(b).
"Bank Default" shall mean (i) the refusal (which has not been
retracted) of a Bank to make available its portion of any Borrowing (including
any Mandatory Borrowing) required to be made by it pursuant to this Agreement or
to fund its portion of any unreimbursed payment under Section 2.03(c) or (ii) a
Bank having notified (which notice has not been rescinded) in writing the
Borrower and the Administrative Agent that it does not intend to comply with its
obligations under Section 1.01(b) or Section 2.
"Bank Information Memorandum" shall mean the memorandum dated March,
1998, distributed to the Banks with respect to this Agreement prior to the
Effective Date.
"Bankruptcy Code" shall have the meaning provided in Section 10.05.
"Base Rate" shall mean, for any day, a rate of interest per annum
equal to the higher of (i) the Prime Lending Rate for such day and (ii) the sum
of the Federal Funds Rate for such day plus 1/2 of 1% per annum.
"Base Rate Loan" shall mean (i) each Swingline Loan and (ii) each
other Loan designated or deemed designated as such by the Borrower at the time
of the incurrence thereof or conversion thereto.
"Blocked Commitment" shall mean on any date of determination, an
amount equal to the sum of (A) the greater of $0 or remainder of (x) the then
Permitted Receivables Transaction Outstandings less (y) the aggregate amount of
all reductions to the Total Revolving Loan Commitment theretofore effected
pursuant to Sections 3.02(a) and 3.03(e) and (B) an amount equal to all
increases to the Blocked Commitment theretofore effected pursuant to the first
proviso to Section 4.02(f), minus the amount of cash thereafter used to pay
actual costs incurred in connection with the replacement or restoration of the
respective properties or assets which gave rise to the increase to the Blocked
Commitment pursuant to this clause (B) or, in the circumstances contemplated by
the last proviso to Section 4.02(f), the amount of principal repayments of the
outstanding Term Loans made because the respective amounts which gave rise to
the increase to the Blocked Commitment were not (within the time periods set
forth in said last proviso) used to replace or restore the respective properties
or assets; provided that if the Blocked Commitment is increased in the
--------
circumstances provided above in this clause (B), the aggregate amount of
reductions thereto as a result of the replacement or restoration of the
respective properties or assets or repayments of Term Loans shall in no event
exceed the amount of the original increase to the Blocked Commitment as a result
of the respective Recovery Event pursuant to preceding clause (B).
"Borrower" shall have the meaning provided in the first paragraph of
this Agreement.
"Borrowing" shall mean the borrowing of one Type of Loan of a single
Tranche from all the Banks (other than any Bank which has not funded its share
of such borrowing in accordance with this Agreement) having Commitments of the
respective Tranche (or from the Swingline Bank in the case of Swingline Loans)
on a given date (or resulting from a conversion or conversions on such date)
having in the case of Eurodollar Loans the same Interest Period, provided that
--------
Base Rate Loans incurred pursuant to Section 1.10(b) shall be considered part of
the related Borrowing of Eurodollar Loans. It is understood that the Borrower
may at any time combine separate Borrowings of the same Tranche of Loans into a
single Borrowing of such Loans and may split a single Borrowing into separate
Borrowings, in each case subject to the terms and conditions of this Agreement
(including without limitation compliance with the applicable provisions of
Sections 1.02, 1.06 and 1.09).
"BTCo" shall mean Bankers Trust Company in its individual capacity.
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"Business" shall mean the business as conducted by the Parent and its
Subsidiaries on the Initial Borrowing Date and any logical extensions or related
ancillary businesses thereof (including business functions incidental to such
business).
"Business Day" shall mean (i) for all purposes other than as covered
by clause (ii) below, any day excluding Saturday, Sunday and any day which shall
be in the City of New York a legal holiday or a day on which banking
institutions are authorized by law or other governmental actions to close and
(ii) with respect to all notices and determinations in connection with, and
payments of principal and interest on, Eurodollar Loans, any day which is a
Business Day described in clause (i) and which is also a day for trading by and
between banks in U.S. dollar deposits in the interbank Eurodollar market.
"Capital Expenditures" shall mean, with respect to any Person, all
expenditures by such Person which should be capitalized in accordance with
generally accepted accounting principles, including all such expenditures with
respect to fixed or capital assets (including, without limitation, expenditures
for maintenance and repairs which should be capitalized in accordance with
generally accepted accounting principles) and the amount of Capitalized Lease
Obligations incurred by such Person. Notwithstanding anything to the contrary
contained above or required pursuant to Agreement Accounting Principals, Capital
Expenditures shall not include any consideration paid to effect Permitted
Acquisitions (but shall include Permitted Acquisition Related Capital
Expenditures made in connection therewith).
"Capitalized Lease" of a Person means any lease of Property by such
Person as lessee which would be capitalized on a balance sheet of such Person
prepared in accordance with Agreement Accounting Principles.
"Capitalized Lease Obligations" of any Person shall mean all rental
obligations which, under generally accepted accounting principles, are or will
be required to be capitalized on the books of such Person, in each case taken at
the amount thereof accounted for as indebtedness in accordance with such
principles.
"Cash Equivalents" shall mean, as to any Person, (i) securities issued
or directly and fully guaranteed or insured by the United States or any agency
or instrumentality thereof (provided that the full faith and credit of the
--------
United States is pledged in support thereof) having maturities of not more than
one year from the date of acquisition, (ii) time deposits and certificates of
deposit of any commercial bank having, or which is the principal banking
subsidiary of a bank holding company organized under the laws of the United
States, any State thereof, the District of Columbia or any foreign jurisdiction
having capital, surplus and undivided profits aggregating in excess of
$200,000,000, with maturities of not more than one year from the date of
acquisition by such Person, (iii) repurchase obligations with a term of not more
than 90 days for underlying securities of the types described in clause (i)
above entered into with any bank meeting the qualifications specified in clause
(ii) above, (iv) commercial paper issued by any Person incorporated in the
United States rated at least A-1 or the equivalent thereof by Standard & Poor's
Ratings Services or at least P-1 or the equivalent thereof by Xxxxx'x Investors
Service, Inc. and in each case maturing not more than one year after the date of
acquisition by such Person, (v) investments in money market funds substantially
all of whose assets are comprised of securities of the types described in
clauses (i) through (iv) above and (vi) demand deposit accounts maintained in
the ordinary course of business.
"Change of Control" shall mean (i) the Parent shall at any time cease
to own beneficially and of record, free and clear of all Liens (other than those
created pursuant to the Credit Documents), other encumbrances, or voting
agreements, restrictions or trusts of any kind, 100% of the outstanding shares
of capital stock of the Borrower on a fully diluted basis and shares
representing the right to elect a majority of the directors of the Borrower,
(ii) if any Existing Convertible Notes, Refinancing Convertible Notes or
Subordinated Indebtedness is then outstanding, at any time a "Change of Control"
under and as defined in the documentation relating thereto shall have occurred
or (iii) at any time and for any reason whatsoever, (x) any "Person" or "Group"
(as such terms are used in Section 13(d) and 14(d) of the Exchange Act) is or
shall become the
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"beneficial owner" (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange
Act), directly or indirectly, of 25% or more of any class of common or other
Voting Stock of the Parent or (y) Continuing Directors shall cease at any time
to comprise a majority of the board of directors of the Parent.
"Code" shall mean the Internal Revenue Code of 1986, as amended from
time to time, and the regulations promulgated and the rulings issued thereunder.
Section references to the Code are to the Code, as in effect at the date of this
Agreement, and to any subsequent provisions of the Code, amendatory thereof,
supplemental thereto or substituted therefor.
"Co-Documentation Agent" shall have the meaning provided in the first
paragraph of this Agreement.
"Collateral" shall mean all property (whether real or personal) with
respect to which any security interests have been granted (or purported to be
granted) pursuant to any Security Document, including, without limitation, all
Pledge Agreement Collateral, all Security Agreement Collateral, all Mortgaged
Properties, all cash and Cash Equivalents delivered as collateral pursuant to
Section 4.02 or 10 and all Additional Collateral, if any.
"Collateral Agent" shall mean the Administrative Agent acting as
collateral agent for the Secured Creditors pursuant to the Security Documents,
and any successor thereto.
"Commitment" shall mean any of the commitments of any Bank, i.e.,
----
whether the Term Loan Commitment or Revolving Loan Commitment.
"Commitment Commission" shall have the meaning provided in Section
3.01(a).
"Consolidated EBITDA" shall mean, for any applicable computation
period, Consolidated Net Income for such period from continuing operations plus,
in each case to the extent deducted in determining Consolidated Net Income for
such period, (a) income and franchise taxes accrued during such period, plus (b)
interest expense (including the interest portion of payments on Capitalized
Leases) accrued during such period, plus (c) amortization and depreciation
expenses for such period plus (d) cash expenses associated with Stock
Repurchases made in accordance with Section 9.03. Such calculation shall
exclude the effect on such Consolidated Net Income of (i) non-cash extraordinary
or non-recurring gains or losses occurring during such period, (ii) non-
recurring charges related to assimilation of Persons acquired, and the expenses
of, Permitted Acquisitions, including expenses incurred in connection with the
retirement of Indebtedness of Persons so acquired, (iii) the write-off of debt
financing fees associated with terminated credit facilities, (iv) any non-cash
pre-acquisition write-offs or similar charges incurred by a Person acquired
pursuant to a Permitted Acquisition that as the result of a pooling of interest
are included in the Parent's consolidated financial statements for the period
and (v) any non-cash write-offs or similar charges which are recorded following
a Permitted Acquisition in the Borrower's consolidated financial statements with
respect to an acquired Person's assets to the extent such amounts were accounted
for in the first twelve months following the date such acquisition was
consummated. Without duplication of amounts already included in Consolidated
EBITDA because of any requirement in a relevant covenant or defined term that
the results of such Person be included on a Pro Forma Basis, for any Permitted
--- -----
Acquisition that is not accounted for as a pooling of interests, if the Parent
provides the Administrative Agent with a certified computation of the prior four
fiscal quarters of Consolidated EBITDA (otherwise determined in accordance with
this Agreement, with necessary reference changes) relating to those operations
of the Person acquired pursuant to such Permitted Acquisition which will be
continued after such acquisition (which computation shall exclude any non-cash
charges or acquisition expenses which were incurred by the acquired Person),
then such Consolidated EBITDA of such Person shall be included in Consolidated
EBITDA on a pro forma basis for that portion of any period for which
Consolidated EBITDA is being determined which precedes the date of such
acquisition; provided that in any case where this sentence is applicable,
--------
Consolidated Interest Expense shall also be increased for such period by the
amount of interest expense which would have been incurred during such period if
the amount of Indebtedness incurred to finance the respective Permitted
Acquisition
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(including without limitation Indebtedness incurred pursuant to this Agreement)
had been incurred in the period for which Consolidated EBITDA is being
determined.
"Consolidated EBITDAR" shall mean, for any period, Consolidated EBITDA
for such period, adjusted by adding thereto the amount of all rent and lease
expense deducted in arriving at Consolidated Net Income (and not already added
back in determining Consolidated EBITDA) for such period.
"Consolidated Fixed Charge Coverage Ratio" for any period shall mean
the ratio of Consolidated EBITDAR to Consolidated Fixed Charges for such period.
"Consolidated Fixed Charges" for any period shall mean the sum,
without duplication, of (i) Consolidated Interest Expense for such period and
(ii) the amount of all rent expense of, and lease payments expensed by, the
Parent and its Subsidiaries determined on a consolidated basis for such period.
"Consolidated Indebtedness" shall mean, as at any date of
determination, the aggregate stated balance sheet amount of all Indebtedness
(including the Loans and any Capitalized Lease Obligations) of the Parent and
its Subsidiaries (excluding all Contingent Obligations other than Contingent
Obligations which are required, in accordance with Agreement Accounting
Principles, to be reflected on the consolidated balance sheet of the Parent and
its Subsidiaries) on a consolidated basis as determined in accordance with
Agreement Accounting Principles; provided that notwithstanding any contrary
--------
treatment pursuant to Agreement Accounting Principles, (w) to the extent
provided in the last sentence of the definition of Indebtedness contained
herein, Consolidated Indebtedness shall not include the amount of any
Indebtedness which has been defeased pursuant to one or more Permitted
Defeasances, (x) the aggregate amount of guarantees or letters of credit issued
in support of Indebtedness of Persons which are not Subsidiaries of the Parent
shall at all times be included as a component of Consolidated Indebtedness, (y)
the amount of Permitted Receivables Transaction Outstandings at any time shall
be included as a component of Consolidated Indebtedness and (z) the Existing
Convertible Notes and any Refinancing Convertible Notes shall be excluded from
Consolidated Indebtedness.
"Consolidated Interest Coverage Ratio" for any period shall mean the
ratio of Consolidated EBITDA to Consolidated Interest Expense for such period.
"Consolidated Interest Expense" shall mean, for any period, the total
consolidated interest expense of the Parent and its Subsidiaries for such period
(calculated without regard to any limitations on the payment thereof) plus,
without duplication, that portion of Capitalized Lease Obligations of the Parent
and its Consolidated Subsidiaries representing the interest factor for such
period, in each case net of the total consolidated cash interest income of the
Parent and its Consolidated Subsidiaries for such period, but excluding the
amortization of any deferred financing costs; provided that Consolidated
--------
Interest Expense shall not include interest expense in connection with any
Indebtedness for any period after same has been defeased pursuant to a Permitted
Defeasance which continues to meet the requirements for exclusion as
Consolidated Indebtedness pursuant to the last sentence of the definition of
Indebtedness, and cash interest income as used above in this definition shall
not include any interest income in respect of any Defeasance Assets.
Notwithstanding anything to the contrary contained above, to the extent
Consolidated Interest Expense for any period does not already include all
Receivables Facility Financing Costs for such period, the amount of such
Receivables Facility Financing Costs shall be added to (and form part of)
Consolidated Interest Expense. Notwithstanding anything to the contrary
contained above, to the extent any Test Period begins before the Initial
Borrowing Date, Consolidated Interest Expense for such period shall be deemed to
be an amount equal to the sum of (x) for the portion of such period beginning
after May 2, 1998, actual Consolidated Interest Expense as calculated above and
(y) for that portion of the respective period which occurs on or prior to May 2,
1998, an amount equal to $82,800,000 multiplied by a fraction the numerator of
which is the number of days occurring in such period on or prior to May 2, 1998
and the denominator of which is 365. In addition to the adjustments provided
above, in the circumstances contemplated by the last sentence of the definition
of Consolidated EBITDA contained herein, Consolidated Interest Expense shall be
adjusted as provided in the proviso to said last sentence.
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"Consolidated Net Income" shall mean, for any period, the consolidated
net after tax income of the Parent and its Consolidated Subsidiaries determined
in accordance with Agreement Accounting Principles; provided that (without
--------
duplication of exclusions) (i) the net income (to the extent positive) of any
Person that is not a Subsidiary of the Parent or that is accounted for by the
equity method of accounting shall be included only to the extent of the amount
of dividends or distributions paid in cash to the Parent or a Wholly-Owned
Subsidiary thereof and (ii) the net income of any Unrestricted Subsidiary shall
be excluded entirely.
"Consolidated Subsidiaries" shall mean, as to any Person, all
Subsidiaries of such Person which are consolidated with such Person for
financial reporting purposes in accordance with Agreement Accounting Principles.
Notwithstanding anything to the contrary contained in this Agreement (and except
for purposes of the definition of Unrestricted Subsidiary), an Unrestricted
Subsidiary shall be deemed not to be a Subsidiary of the Parent or any of its
Subsidiaries for purposes of this Agreement.
"Contingent Obligation" shall mean, as to any Person, any obligation
of such Person guaranteeing or intended to guarantee any Indebtedness, leases,
dividends or other obligations ("primary obligations") of any other Person (the
"primary obligor") in any manner, whether directly or indirectly, including,
without limitation, any obligation of such Person, whether or not contingent,
(i) to purchase any such primary obligation or any property constituting direct
or indirect security therefor, (ii) to advance or supply funds (x) for the
purchase or payment of any such primary obligation or (y) to maintain working
capital or equity capital of the primary obligor or otherwise to maintain the
net worth or solvency of the primary obligor, (iii) to purchase property,
securities or services primarily for the purpose of assuring the owner of any
such primary obligation of the ability of the primary obligor to make payment of
such primary obligation or (iv) otherwise to assure or hold harmless the holder
of such primary obligation against loss in respect thereof; provided, however,
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that the term Contingent Obligation shall not include (x) endorsements of
instruments for deposit or collection in the ordinary course of business and (y)
any product warranties extended in the ordinary course of business. The amount
of any Contingent Obligation shall be deemed to be an amount equal to the stated
or determinable amount of the primary obligation in respect of which such
Contingent Obligation is made (or, if less, the maximum amount of such primary
obligation for which such Person may be liable pursuant to the terms of the
instrument evidencing such Contingent Obligation) or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof
(assuming such Person is required to perform thereunder) as determined by such
Person in good faith.
"Continuing Directors" shall mean (i) the directors of the Parent on
the Initial Borrowing Date and (ii) each other director, if such director's
nomination for election to the board of directors of the Parent is recommended
by a majority of the then Continuing Directors.
"Credit Documents" shall mean this Agreement and, after the execution
and delivery thereof pursuant to the terms of this Agreement, each Note, each
Security Document and the Subsidiaries Guaranty and, after the execution and
delivery thereof, each additional guaranty or security document executed
pursuant to Section 8.14.
"Credit Event" shall mean the making of any Loan or the issuance of
any Letter of Credit.
"Credit Party" shall mean the Parent, the Borrower and each Subsidiary
Guarantor.
"DDH" shall mean Data Documents, Incorporated, a Delaware corporation,
which is Wholly-Owned Subsidiary of the Borrower.
"DDI" shall mean Data Documents, Inc., a Nebraska corporation, which
is a Wholly-Owned Subsidiary of the Borrower.
"DDI Defeasance" shall have the meaning provided in Section 8.19.
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"DDI Indenture" shall mean the Indenture, dated as of November 28,
1994, as amended, with NationsBank of Texas, N.A. as Trustee, pursuant to which
the DDI Notes were issued.
"DDI" Notes" shall mean the 13 1/2% Senior Secured Notes of DDI due
2002, which were issued pursuant to the DDI Indenture.
"Debt Agreements" shall have the meaning provided in Section 5.05.
"Debt Basket Amount" shall mean $200,000,000; provided that on each
--------
anniversary of the date of this Agreement, the Debt Basket Amount shall increase
by $20,000,000.
"Default" shall mean any event, act or condition which with notice or
lapse of time, or both, would constitute an Event of Default.
"Defaulting Bank" shall mean any Bank with respect to which a Bank
Default is in effect.
"Defeasance Assets" shall have the meaning provided in Section 9.01.
"Dividend" with respect to any Person shall mean that such Person has
declared or paid a dividend or returned any equity capital to its stockholders
or authorized or made any other distribution, payment or delivery of property
(other than common stock of such Person) or cash to its stockholders as such, or
redeemed, retired, purchased or otherwise acquired, directly or indirectly, for
a consideration any shares of any class of its capital stock outstanding on or
after the Effective Date (or any options or warrants issued by such Person with
respect to its capital stock), or set aside any funds for any of the foregoing
purposes, or shall have permitted any of its Subsidiaries to purchase or
otherwise acquire for a consideration any shares of any class of the capital
stock of such Person outstanding on or after the Effective Date (or any options
or warrants issued by such Person with respect to its capital stock). Without
limiting the foregoing, "Dividends" with respect to any Person shall also
include all payments made or required to be made by such Person with respect to
any stock appreciation rights plans, equity incentive or achievement plans or
any similar plans or setting aside of any funds for the foregoing purposes, in
each case except to the extent that the payments described in this sentence are
booked as an expense which reduces Consolidated Net Income.
"Documents" shall mean the Credit Documents, the Initial Stock
Repurchase Documents and the Refinancing Documents.
"Dollar Equivalent" shall mean, at any time for the determination
thereof, the amount of Dollars necessary to purchase such other currency
involved in such computation at the Exchange Rate.
"Dollars" and the sign "$" shall each mean lawful money of the United
States.
"Domestic Subsidiary" of any Person shall mean each Subsidiary of such
Person incorporated or organized in the United States or any State or territory
thereof.
"Domestic Wholly-Owned Subsidiary" of any Person shall mean each
Domestic Subsidiary of such Person which is a Wholly-Owned Subsidiary of such
Person.
"Drawing" shall have the meaning provided in Section 2.04(b).
"Effective Date" shall have the meaning provided in Section 13.10.
"Eligible Transferee" shall mean and include a commercial bank,
financial institution, fund or other Person which regularly purchases interests
in loans or extensions of credit of the types made pursuant to this Agreement,
any other Person which would constitute a "qualified institutional buyer" within
the meaning of Rule
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144A under the Securities Act as in effect on the Effective Date and any other
"accredited investor" (as defined in Regulation D of the Securities Act).
"End Date" shall mean, for any Margin Reduction Period, the last day
of such Margin Reduction Period.
"Environmental Claims" shall mean any and all administrative,
regulatory or judicial actions, suits, demands, demand letters, directives,
claims, liens, notices of noncompliance or violation, investigations or
proceedings relating in any way to any Environmental Law or any permit issued,
or any approval given, under any such Environmental Law (hereafter, "Claims"),
including, without limitation, (a) any and all Claims by governmental or
regulatory authorities for enforcement, cleanup, removal, response, remedial or
other actions or damages pursuant to any applicable Environmental Law and (b)
any and all Claims by any third party seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief in connection
with alleged injury or threat of injury to health, safety or the environment or
in connection with the presence or Release of Hazardous Materials.
"Environmental Law" shall mean any Federal, state, foreign or local
statute, law, rule, regulation, ordinance, code, binding and enforceable
guideline, binding and enforceable written policy, or rule of common law now or
hereafter in effect and in each case as amended, and any binding judicial or
administrative interpretation thereof (including any judicial or administrative
order, consent decree or judgment), applicable to the Parent, the Borrower or
any of their respective Subsidiaries, or relating to the environment, employee
health and safety or Hazardous Materials, including, without limitation, the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended ("CERCLA") 42 U.S.C. 9601 et. seq.; RCRA; the Federal Water Pollution
-- --
Control Act, 33 U.S.C. (S) 1251 et seq.; the Toxic Substances Control Act, 15
-- ---
U.S.C. (S) 2601 et seq.; the Clean Air Act, 42 U.S.C. (S) 7401 et seq.; the Safe
-- --- -- ---
Drinking Water Act, 42 U.S.C. (S) 3803 et seq.; the Oil Pollution Act of 1990,
-- ---
33 U.S.C. (S) 2701 et seq.; the Emergency Planning and the Community Right-to-
-- ---
Know Act of 1986, 42 U.S.C. (S) 11001 et seq., the Hazardous Material
-- ---
Transportation Act, 49 U.S.C. (S) 5101 et seq., and the Occupational Safety and
-- ---
Health Act, 29 U.S.C. (S) 651 et seq. (to the extent it regulates occupational
-- ---
exposure to Hazardous Materials); and any state and local or foreign
counterparts or equivalents, in each case as amended from time to time.
"Equity Interests" of any Person shall mean any and all shares,
interests, rights to purchase, warrants, options, participation or other
equivalents of or interest in (however designated) equity of such Person,
including any preferred stock, any limited or general partnership interest and
any limited liability company membership interest.
"ERISA" shall mean the Employee Retirement Income Security Act of
1974, as amended from time to time, and the regulations promulgated and rulings
issued thereunder. Section references to ERISA are to ERISA, as in effect at
the date of this Agreement and any subsequent provisions of ERISA, amendatory
thereof, supplemental thereto or substituted therefor.
"ERISA Affiliate" shall mean each person (as defined in Section 3(9)
of ERISA) which together with the Parent, the Borrower or any of their
Subsidiaries would be deemed to be a "single employer" (i) within the meaning of
Section 414(b), (c), (m) or (o) of the Code or (ii) as a result of the Parent,
the Borrower or any of their Subsidiaries being or having been a general partner
of such person.
"Eurodollar Loan" shall mean each Loan (excluding Swingline Loans)
designated as such by the Borrower at the time of the incurrence thereof or
conversion thereto.
"Eurodollar Rate" shall mean with respect to each Interest Period for
a Eurodollar Loan, (i) the offered quotation to first-class banks in the New
York interbank Eurodollar market by the Administrative Agent for dollar deposits
of amounts in same day funds comparable to the outstanding principal amount of
the
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Eurodollar Loan of the Administrative Agent for which an interest rate is
then being determined with maturities comparable to the Interest Period to be
applicable to such Eurodollar Loan, determined as of 10:00 A.M. (New York time)
on the date which is two Business Days prior to the commencement of such
Interest Period divided (and rounded upward to the next whole multiple of 1/16
of 1%) by (ii) a percentage equal to 100% minus the then stated maximum rate of
all reserve requirements (including without limitation any marginal, emergency,
supplemental, special or other reserves) applicable to any member bank of the
Federal Reserve System in respect of Eurocurrency liabilities as defined in
Regulation D (or any successor category of liabilities under Regulation D).
"Event of Default" shall have the meaning provided in Section 10.
"Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.
"Exchange Rate" shall mean, when converting any amount denominated in
a currency other than Dollars into Dollars, the rate determined in good faith by
the Issuing Bank at the opening of business (or close of business in the case of
determinations of reimbursement obligations with respect to Drawings) in New
York City, on the date as to which any determination thereof is to be made, as
the spot rate at which such currency is offered for sale to Issuing Bank against
delivery of Dollars by the Issuing Bank. If for any reason the Exchange Rate
for any currency cannot be calculated as provided above, the Issuing Bank shall
calculate the Exchange Rate on such basis as it reasonably deems fair and
equitable. In determining the Stated Amount of any Letter of Credit, for
purposes of Sections 1.01, 2.01, 3.01 and 4.02(a), the Dollar Equivalent shall
be calculated on the Initial Borrowing Date and on the first Business Day of
each calendar month thereafter. The Exchange Rate for all reimbursement
obligations with respect to Letters of Credit (including without limitation
pursuant to Sections 2.03 and 2.04) shall be determined by using the Dollar
Equivalent as in effect on the date the respective Unpaid Drawing was paid by
the Issuing Bank.
"Existing Convertible Note Indenture" shall mean shall mean that
certain Indenture, dated as of June 24, 1996, between the Parent and Bankers
Trust Company (as trustee), as in effect on the Effective Date and as thereafter
amended from time to time in accordance with the requirements thereof and of
this Agreement.
"Existing Convertible Notes" shall mean shall mean the Parent's 4-1/2%
Convertible Notes due July 1, 2000 issued pursuant to the Existing Convertible
Note Indenture.
"Existing Credit Agreement" shall mean that certain Amended and
Restated Credit Agreement, dated as of September 5, 1997 by and among the
Parent, the Borrower, the various lending institutions party thereto and The
First National Bank of Chicago, as agent thereunder, as in effect on the
Effective Date.
"Existing Indebtedness" shall have the meaning provided in Section
7.23.
"Existing Indentures" shall mean the Existing Convertible Note
Indenture and the Existing Senior Subordinated Note Indenture, collectively.
"Existing Letters of Credit" shall mean have the meaning provided in
Section 2.01(e).
"Existing Negotiable Securities" shall mean certain existing
investments of the Borrower in unrelated third parties or unrestricted
subsidiaries listed on Schedule 11.01A, so long as the aggregate fair market
value thereof on the Initial Borrowing Date does not exceed $30,000,000;
provided that in no event shall the term Existing Negotiable Securities include
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any stock, debt or other securities of any Subsidiaries or Joint Ventures of the
Parent, the Borrower or any of their respective Subsidiaries.
"Existing Senior Subordinated Note Indenture" shall mean that certain
Indenture, dated as of February 28, 1994, among the Parent, the guarantors named
therein and First Trust National Association (as
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trustee) (as supplemented by that certain Supplemental Indenture, dated as of
June 18, 1996, among the Parent, the Borrower and First Trust National
Association (as trustee) pursuant to which the Borrower assumed from the Parent
the Senior Subordinated Notes), as in effect on the Effective Date and as
thereafter amended from time to time in accordance with the requirements thereof
and of this Agreement.
"Existing Senior Subordinated Notes" shall mean the Borrower's 9-1/8%
Senior Subordinated Notes due March 15, 2004 issued pursuant to the Existing
Senior Subordinated Note Indenture.
"Facing Fee" shall have the meaning provided in Section 3.01(c).
"Fair Market Value" shall mean, with respect to any asset, the price
at which a willing buyer, not an Affiliate of the seller, and a willing seller
who does not have to sell, would agree to purchase and sell such asset, as
determined in good faith by the board of directors or other governing body or,
pursuant to a specific delegation of authority by such board of directors or
governing body, a designated senior executive officer, of the Parent or the
Subsidiary of the Parent selling such asset.
"Federal Funds Rate" shall mean, for any period, a fluctuating
interest rate 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 immediately preceding Business Day)
by the Federal Reserve Bank of New York or, if such rate is not so published for
any day which is a Business Day, the average of the quotations for such day on
such transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by the Administrative Agent in its sole
discretion.
"Fees" shall mean all amounts payable pursuant to or referred to in
Section 3.01.
"$50 Million Asset Sale" shall mean any Asset Sale where the aggregate
consideration (taking the Fair Market Value of any non-cash consideration)
received by the Parent and its Subsidiaries in connection therewith is equal to
or in excess of $50,000,000.
"$50 Million Permitted Acquisition" shall mean each Permitted
Acquisition where the aggregate consideration paid (or which may be paid) in
connection therewith (including, without limitation, the value of any
noncompete, earn-out (in an amount reasonably and in good faith estimated by the
Parent) and other deferred compensation arrangements and the principal amount of
Seller Debt and/or Permitted Acquired Debt and the Fair Market Value of all
Equity Interests in the Parent issued as consideration in connection therewith)
exceeds $50,000,000. Except for purposes of Section 9.08(d), the amount
specified by the Borrower at the time of, or prior to, the consummation of the
respective Permitted Acquisition as the maximum amount of Permitted Acquisition
Related Capital Expenditures to be made in connection therewith shall be added
to, and be deemed to constitute part of, the consideration paid in connection
with the Permitted Acquisition for purposes of determining whether the
requirements of the immediately preceding sentence are satisfied.
"Financial Statements" shall have the meaning provided in Section
7.05.
"First-Tier Subsidiary" shall mean, as to any Person, any other Person
which is a Subsidiary of such Person and in which such Person directly owns more
than 50% of the Equity Interests referenced in the definition of Subsidiary
contained herein.
"Fiscal Quarter" means one of the four three-month accounting periods
comprising a Fiscal Year.
"Fiscal Year" shall mean each fiscal year of the Parent, which shall
constitute the twelve-month accounting period ending on the Saturday occurring
closest to the last day of January of each year.
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"Foreign Subsidiary" of any Person shall mean each Subsidiary of such
Person that is incorporated under the laws of any jurisdiction other than the
United States of America or any State or territory thereof.
"Foreign Wholly-Owned Subsidiary" of any Person shall mean each
Foreign Subsidiary of such Person which is a Wholly-Owned Subsidiary of such
Person.
"Form 10-K Report" shall mean an annual report on form 10-K pursuant
to the Exchange Act.
"Form 10-Q Report" shall mean a quarterly report on form 10-Q pursuant
to the Exchange Act.
"GAAP" shall have the meaning provided in Section 13.07(a).
"Guaranteed Creditors" shall mean and include each of the Agents, the
Banks and each party (other than any Credit Party) to an Interest Rate
Protection Agreement or Other Hedging Agreement to the extent such party
constitutes a Secured Creditor under the Security Documents.
"Guaranteed Obligations" shall mean all obligations of the Borrower
(i) to each Agent and each Bank for the full and prompt payment when due
(whether at the stated maturity, by acceleration or otherwise) of the principal
and interest on each Note issued by the Borrower to such Bank, and Loans made,
under this Agreement and all reimbursement obligations and Unpaid Drawings with
respect to Letters of Credit, together with all the other obligations and
liabilities (including, without limitation, all indemnities, fees and interest
thereon as well as all interest accruing after the filing of a petition in a
bankruptcy or similar proceeding at the rate provided in the respective
documentation, regardless of whether or not such interest is an allowed claim in
such a bankruptcy proceeding) of the Borrower to such Agent and such Bank now
existing or hereafter incurred under, arising out of or in connection with this
Agreement or any other Credit Document and the due performance and compliance
with all the terms, conditions and agreements contained in the Credit Documents
by the Borrower and (ii) to each Bank and each Affiliate of a Bank which enters
into an Interest Rate Protection Agreement or Other Hedging Agreement with the
Borrower, which by its express terms is entitled to the benefit of the Guaranty
pursuant to Section 14 with the written consent of the Borrower, the full and
prompt payment when due (whether by acceleration or otherwise) of all
obligations of the Borrower owing under any such Interest Rate Protection
Agreement or Other Hedging Agreement, whether now in existence or hereafter
arising, and the due performance and compliance with all terms, conditions and
agreements contained therein.
"Guarantor" shall mean the Parent and each Subsidiary Guarantor.
"Guaranty" shall mean the guaranty issued by the Parent pursuant to
Section 14 hereof and each Subsidiaries Guaranty.
"Hazardous Materials" shall mean (a) any petroleum or petroleum
products, radioactive materials, friable asbestos, urea formaldehyde foam
insulation, transformers or other equipment that contain dielectric fluid
containing polychlorinated biphenyls, and radon gas; (b) any chemicals,
materials or substances defined as or included in the definition of "hazardous
substances," "hazardous wastes," "hazardous materials," "extremely hazardous
substances," "restricted hazardous waste," "toxic substances," "toxic
pollutants," "contaminants," or "pollutants," or words of similar import, under
any applicable Environmental Law; and (c) any other chemical, material or
substance, exposure to which is prohibited, limited or regulated by any
governmental authority under any Environmental Law.
"Identified Division Sale" shall mean any sale by the Borrower of the
division of the Borrower identified in writing to the Administrative Agent and
the Banks on or prior to the Effective Date (so long as such division remains in
substantially the form as same exists on the Effective Date).
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"Indebtedness" shall mean, as to any Person, without duplication, (i)
all indebtedness (including principal, interest, fees and charges) of such
Person for borrowed money or for the deferred purchase price of property or
services, (ii) the maximum amount available to be drawn under all letters of
credit issued for the account of such Person and all unpaid drawings in respect
of such letters of credit, (iii) all Indebtedness of the types described in
clause (i), (ii), (iv), (v), (vi) or (vii) of this definition secured by any
Lien on any property owned by such Person, whether or not such Indebtedness has
been assumed by such Person (to the extent of the value of the respective
property), (iv) the aggregate amount required to be capitalized under leases
under which such Person is the lessee, (v) all obligations of such person to pay
a specified purchase price for goods or services, whether or not delivered or
accepted, i.e., take-or-pay and similar obligations, (vi) all Contingent
----
Obligations of such Person and (vii) all obligations under any Interest Rate
Protection Agreement or Other Hedging Agreement or under any similar type of
agreement. In addition to the foregoing, the amount of Permitted Receivables
Transaction Outstandings from time to time shall be deemed to constitute
Indebtedness. Notwithstanding anything to the contrary contained above or
elsewhere in this Agreement, from and after the time that any issue of
Indebtedness has been completely defeased pursuant to a Permitted Defeasance,
and so long as the amount of cash and U.S. Government Obligations deposited
pursuant to the respective Permitted Defeasance remain sufficient to make all
future payments which will become owing in respect of the respective issue of
Indebtedness, such issue of Indebtedness which has been so defeased shall be
deemed not to be outstanding for purposes of Section 9.04 and shall not be
included as a component of Consolidated Indebtedness.
"Initial Borrowing Date" shall mean the date occurring on or after the
Effective Date on which the initial Borrowing of Term Loans hereunder occurs.
"Initial Stock Repurchase Documents" shall mean and include the
Initial Stock Repurchase Offer to Purchase and any other documentation entered
into in connection with the Initial Stock Repurchases.
"Initial Stock Repurchase Offer to Purchase" shall mean the Parent's
offer to purchase for cash up to 35,000,000 shares of its common stock, par
value $.0002 per share, pursuant to an Offer to Purchase dated February 6, 1998,
as same may be amended, modified or extended from time to time.
"Initial Stock Repurchases" shall mean the purchase by the Parent of
its outstanding common stock, in one or more transactions to occur on, or
substantially concurrently with, the Initial Borrowing Date (including without
limitation all such purchases made pursuant to the Initial Stock Repurchase
Offer to Purchase); provided that the aggregate consideration paid in connection
--------
with all such purchases shall not exceed $500,000,000 in the aggregate.
"Insignificant Subsidiary" shall mean any Subsidiary of the Parent
which has assets of not greater than $5,000,000 in the aggregate and which, if
aggregated with all other Subsidiaries of the Parent with respect to which an
event described under Section 10.05 has occurred and is continuing, would have
assets of not greater than $5,000,000.
"Interest Determination Date" shall mean, with respect to any
Eurodollar Loan, the second Business Day prior to the commencement of any
Interest Period relating to such Eurodollar Loan.
"Interest Period" shall have the meaning provided in Section 1.09.
"Interest Rate Protection Agreement" shall mean any interest rate swap
agreement, interest rate cap agreement, interest collar agreement, interest rate
hedging agreement, interest rate floor agreement or other similar agreement or
arrangement.
"Investment Basket Amount" shall mean $25,000,000; provided that on
--------
each anniversary of the date of this Agreement, the Investment Basket Amount
shall increase by $5,000,000.
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"Investments" shall have the meaning provided in Section 9.05.
"Issuing Bank" shall mean the Administrative Agent and any Bank which
at the request of the Borrower and with the consent of the Administrative Agent
(which shall not be unreasonably withheld) agrees, in such Bank's sole
discretion, to become an Issuing Bank for the purpose of issuing Letters of
Credit pursuant to Section 2. With respect to the Existing Letters of Credit,
it is understood and agreed that the Bank designated as the issuer thereof on
Schedule 2.01 is the Issuing Bank thereof.
"Joint Venture" shall mean any Person in which the Borrower and its
Subsidiaries own, directly or indirectly, more than 5% but 50% or less of the
equity interests.
"L/C Supportable Indebtedness" shall mean (i) obligations of the
Parent or its Subsidiaries incurred in the ordinary course of business with
respect to insurance obligations and workers' compensation, surety bonds and
other similar statutory obligations, (ii) obligations of the Parent or any of
its Subsidiaries with respect to industrial revenue or development bonds or
financings, (iii) obligations of the Parent or any of its Subsidiaries with
respect to leases, (iv) performance, payment, deposit or surety obligations of
the Parent or any of its Subsidiaries and (v) such other obligations of the
Borrower or any of its Subsidiaries as are permitted to exist pursuant to the
terms of this Agreement.
"Leaseholds" of any Person means all the right, title and interest of
such Person as lessee or licensee in, to and under leases or licenses of land,
improvements and/or fixtures.
"Letter of Credit" shall have the meaning provided in Section 2.01(a).
"Letter of Credit Fee" shall have the meaning provided in Section
3.01(b).
"Letter of Credit Outstandings" shall mean, at any time, the sum of
(i) the aggregate Stated Amount of all outstanding Letters of Credit and (ii)
the amount of all Unpaid Drawings.
"Letter of Credit Request" shall have the meaning provided in Section
2.02(a).
"Level 7" shall have the meaning set forth in the definition of
"Applicable Commitment Commission Percentage" and "Applicable Margin".
"Leverage Ratio" shall mean on any date the ratio of (i) Consolidated
Indebtedness on such date to (ii) Consolidated EBITDA for the period of four
consecutive fiscal quarters most recently ended on or prior to such date, in
each case taken as one accounting period; provided that to the extent any $50
--------
Million Permitted Acquisition, any $50 Million Asset Sale is effected or any
Material Discontinuance of Operations occurs (or any similar transaction or
transactions which require a waiver or a consent of the Required Banks pursuant
to Section 9.02) has occurred during the relevant Test Period, Consolidated
EBITDA shall be determined for the respective Test Period on a Pro Forma Basis
--- -----
for such occurrences.
"Lien" shall mean any mortgage, pledge, hypothecation, assignment,
deposit arrangement, encumbrance, lien (statutory or other), preference,
priority or other security agreement of any kind or nature whatsoever
(including, without limitation, any conditional sale or other title retention
agreement, any financing or similar statement or notice filed under the UCC or
any other similar recording or notice statute, and any lease having
substantially the same effect as any of the foregoing).
"Loan" shall mean each Term Loan, each Revolving Loan and each
Swingline Loan.
"Majority Banks" of any Tranche shall mean those Non-Defaulting Banks
which would constitute the Required Banks under, and as defined in, this
Agreement if all outstanding Obligations of the other Tranches under this
Agreement were repaid in full and all Commitments with respect thereto were
terminated.
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"Mandatory Borrowing" shall have the meaning provided in Section
1.01(d).
"Margin Reduction Period" shall mean each period which shall commence
on the date occurring after the Effective Date upon which (x) the respective
officer's certificate is delivered pursuant to Section 8.01(f) or (y) which is
the second Business Day following an occurrence of the type described in the
second proviso to the definition of "Applicable Commitment Commission
Percentage" and "Applicable Margin" contained herein and which shall end on the
earlier of (i) the date of actual delivery of the next officer's certificates
pursuant to Section 8.01(f) or the latest date on which the next officer's
certificates are required to be so delivered or (ii) the next date upon which a
Non-Scheduled Start Date shall occur.
"Margin Regulations" shall mean and include each of Regulation T,
Regulation U and Regulation X.
"Margin Stock" shall have the meaning provided in Regulation U.
"Material Adverse Effect" shall mean a material adverse effect on (a)
the business, Properties, condition (financial or otherwise), performance,
results of operations or prospects of the Parent and its Subsidiaries taken as a
whole, (b) the ability of the Parent, the Borrower or the other Credit Parties
taken as a whole to perform its or their obligations under the Credit Documents
or (c) the validity or enforceability of any of the Credit Documents or the
rights or remedies of any Agent or the Banks thereunder.
"Material Discontinuance of Operations" shall mean any discontinuance
of operations where the respective operations so discontinued accounted for 5%
or more of Consolidated EBITDA for the period of four consecutive fiscal
quarters last ended before the date of the respective discontinuance.
"Material Domestic Subsidiary" shall mean each Domestic Subsidiary of
the Parent which (a) is a Subsidiary of the Parent on the Initial Borrowing
Date, (b) has assets with a fair market value of more than $5,000,000 or (c) has
been designated a Material Domestic Subsidiary by the Borrower pursuant to
Section 8.14(c).
"Maturity Date" shall mean, with respect to any Tranche of Loans, the
Term Loan Maturity Date, the Revolving Loan Maturity Date or the Swingline
Expiration Date, as the case may be.
"Maximum Swingline Amount" shall mean $50,000,000.
"Minimum Required Leverage Ratio" at any time shall mean (i) at all
times after the Initial Borrowing Date to but excluding the last day of the
Parent's fiscal quarter ended closest to April 30, 1999, 4.50:1.00, (ii) at all
times from and including the last day of the Parent's fiscal quarter ended
closest to April 30, 1999 to but excluding the last day of the Parent's fiscal
quarter ended closest to January 31, 2000, 4.25:1.00, (iii) from and including
the last day of Parent's fiscal quarter ended closest to January 31, 2000 to but
excluding the last day of the Parent's fiscal quarter ending closest to October
31, 2001, 4.00:1.00 and (iv) at all times thereafter, the maximum Leverage Ratio
which may exist at such time without causing a violation of the requirements of
Section 9.11.
"Mortgage" shall have the meaning provided in Section 5.12 and, after
the execution and delivery thereof, shall include each Additional Mortgage.
"Mortgage Policy" shall have the meaning provided in Section 5.12.
"Mortgaged Property" shall have the meaning provided in Section 5.12
and, after the execution and delivery of any Additional Mortgage, shall include
the respective Additional Mortgaged Property.
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"Multiemployer Plan" means a Plan maintained pursuant to a collective
bargaining agreement or any other arrangement to which the Parent, any
Subsidiary of the Parent or any ERISA Affiliate is a party to which more than
one employer is obligated to make contributions.
"Net Cash Proceeds" shall mean, in the case of any issuance of
Indebtedness or any other event which generates Net Cash Proceeds, the gross
cash proceeds therefrom (less any fees, expenses and similar costs incurred in
connection therewith).
"Net Sale Proceeds" shall mean for any sale of assets, the gross cash
proceeds (including any cash received by way of deferred payment pursuant to a
promissory note, receivable or otherwise, but only as and when received)
received from such sale of assets, net of (i) reasonable transaction costs
(including, without limitation, any underwriting, brokerage or other customary
selling commissions and reasonable legal, advisory and other fees and expenses,
including title and recording expenses, associated therewith), (ii) payments of
unassumed liabilities relating to the assets sold at the time of, or within 90
days after, the date of such sale, (iii) the amount of such gross cash proceeds
required to be used to repay any Indebtedness (other than Indebtedness of the
Banks pursuant to this Agreement) which is secured by the respective assets
which were sold and (iv) the estimated marginal increase in income taxes which
will be payable by the Parent's consolidated group with respect to the fiscal
year in which the sale occurs as a result of such sale; and excluding any
portion of any such gross cash proceeds which the Parent determines in good
faith should be reserved for post-closing adjustments (to the extent the Parent
delivers to the Banks a certificate signed by its chief financial officer,
controller or chief accounting officer as to such determination, which
certificate may be included in the respective quarterly and/or annual
certificate delivered pursuant to the last proviso to Section 4.02(d)), it being
understood and agreed that on the day that all such post-closing adjustments
have been determined, (which shall not be later than six months following the
date of the respective asset sale), the amount (if any) by which the reserved
amount in respect of such sale or disposition exceeds the actual post-closing
adjustments, plus any related reasonable transaction costs, payable by the
Parent or any of its Subsidiaries shall constitute Net Sale Proceeds on such
date received by the Parent and/or any of its Subsidiaries from such sale,
lease, transfer or other disposition.
"Non-Defaulting Bank" shall mean and include each Bank other than a
Defaulting Bank.
"Non-Scheduled Start Date" shall have the meaning provided in the
definitions of "Applicable Commitment Commission Percentage" and "Applicable
Margin".
"Note" shall mean each Term Note, each Revolving Note and the
Swingline Note.
"Notice of Borrowing" shall have the meaning provided in Section 1.03.
"Notice of Conversion" shall have the meaning provided in Section
1.06.
"Notice Office" shall mean the office of the Administrative Agent
located at One Bankers Trust Plaza, 000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx
00000, Attention: Xxxxxx Xxxxxxxx, or such other office as the Administrative
Agent may hereafter designate in writing as such to the other parties hereto.
"Obligations" shall mean all amounts owing to any of the Agents or any
Bank pursuant to the terms of this Agreement or any other Credit Document.
"Other Hedging Agreement" shall mean any foreign exchange contracts,
currency swap agreements, commodity agreements or other similar agreements or
arrangements designed to protect against the fluctuations in currency or
commodity values.
"Parent" shall have the meaning provided in the first paragraph of
this Agreement.
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"Parent Common Stock" shall mean the common stock of the Parent.
"Parent Guaranty" shall mean the guaranty of the Parent pursuant to
Section 14.
"Participant" shall have the meaning provided in Section 2.03(a).
"Payment Office" shall mean the office of the Administrative Agent
located at One Bankers Trust Plaza, 000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx
00000, or such other office as the Administrative Agent may hereafter designate
in writing as such to the other parties hereto.
"PBGC" shall mean the Pension Benefit Guaranty Corporation established
pursuant to Section 4002 of ERISA, or any successor thereto.
"Percentage" of any Bank at any time shall mean a fraction (expressed
as a percentage) the numerator of which is the Revolving Loan Commitment of such
Bank at such time and the denominator of which is the Total Revolving Loan
Commitment at such time, provided that if the Percentage of any Bank is to be
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determined after the Total Revolving Loan Commitment has been terminated, then
the Percentages of the Banks shall be determined immediately prior (and without
giving effect) to such termination.
"Permitted Acquired Debt" shall mean Indebtedness of any Subsidiary of
the Parent acquired pursuant to a Permitted Acquisition, which Indebtedness
existed at the time of the consummation of such Permitted Acquisition and was
not created in contemplation thereof (and the provisions of which were not
altered in contemplation thereof), so long as (x) the Parent, the Borrower and
its other Subsidiaries have no liability with respect to any such Indebtedness
and (y) any Liens securing such Indebtedness apply only to assets of the
Subsidiary so acquired (and so long as additional assets of such Subsidiary are
not granted as security following, or in contemplation of, the respective
permitted acquisition).
"Permitted Acquisition" shall mean the acquisition by the Parent or a
Wholly-Owned Subsidiary thereof of assets constituting part of or an entire
business, division or product line of any Person not already a Subsidiary of the
Borrower or of 100% of the capital stock of any such Person, or any other
acquisition of assets (excluding equity interests in other Persons except as
provided above) related to the Business; provided that (A) the consideration
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paid by the Parent or such Wholly-Owned Subsidiary consists solely of Parent
Common Stock, cash and/or, in the case of the acquisition of a Wholly-Owned
Subsidiary, the issuance of Seller Debt and/or the assumption of Permitted
Acquired Debt in accordance with the requirements of this Agreement, (B) the
assets acquired, or the business of the Person whose stock is acquired, shall
fall within the definition of Business, (C) the respective Permitted Acquisition
shall be effected by the Borrower or a Wholly-Owned Subsidiary thereof, except
that a given Permitted Acquisition may be effected by the Parent and/or a
Wholly-Owned Subsidiary thereof other than the Borrower and its Wholly-Owned
Subsidiary if (x) the respective Permitted Acquisition is being structured in a
manner designed to provide tax-free treatment to the respective seller or
sellers and if the Parent in good faith determines that such tax-free treatment
cannot be obtained if the respective acquisition is effected by the Borrower or
a Wholly-Owned Subsidiary thereof and (y) at least 51% of the value of the
aggregate consideration for the respective Permitted Acquisition will consist of
Parent Common Stock issued as consideration therefor, (D) no Default or Event of
Default shall exist at the time of the consummation of the respective Permitted
Acquisition or immediately after giving effect thereto and, in the case of each
$50 Million Permitted Acquisition, the Borrower shall have demonstrated
compliance on a Pro Forma Basis (for this purpose, both as if any Permitted
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Acquisition Related Capital Expenditures identified by the Borrower were
actually made, at the time of the respective Permitted Acquisition, but without
increasing Consolidated EBITDA as a result thereof, and as if same were not
made) with the financial covenants in Sections 9.08 through 9.11, inclusive, (E)
after giving effect to the respective Permitted Acquisition (for this purpose,
assuming that an amount equal to the amount identified for Permitted Acquisition
Related Capital Expenditures relating to the respective Permitted Acquisition
had in fact been made on the date of the consummation of such Permitted
Acquisition, and without giving credit for any incremental Consolidated EBITDA
associated therewith) the Borrower shall have Available
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Liquidity of at least $75,000,000 and the Leverage Ratio shall not exceed the
Minimum Required Leverage Ratio, (F) the Borrower in good faith determines that
the Parent and its Subsidiaries taken as a whole are not likely to assume or
become liable for material increased contingent liabilities as a result of such
acquisition and (G) in the case of each Permitted Acquisition where the
aggregate consideration is in excess of $5,000,000, the Borrower delivers to the
Administrative Agent at the time of the consummation of the respective Permitted
Acquisition an officer's certificate in form and substance reasonably
satisfactory to the Administrative Agent certifying that the foregoing
conditions have been satisfied and showing compliance with the requirements of
clauses (C), (D) and (E) above. Notwithstanding anything to the contrary
contained above, a Permitted Acquisition may be effected by means of a Two-Step
Permitted Acquisition, so long as the aggregate consideration paid (including
without limitation, the value of any noncompete, earn-out (in an amount
reasonably and in good faith estimated by the Parent) and other deferred
compensation arrangements and the principal amount of Permitted Acquired Debt
and the fair market value of any Parent Common Stock issued in connection
therewith) in respect of Two-Step Permitted Acquisitions where the first step
has been effected but the respective entity being acquired has not yet become a
Wholly-Owned Subsidiary of the Parent or the Borrower, as the case may be, shall
not exceed $50,000,000 at any time.
"Permitted Acquisition Related Capital Expenditures" shall mean in
connection with any Permitted Acquisition, Capital Expenditures which the
Borrower identifies (which identification shall be accompanied by a written
notice of the maximum amount proposed to be spent with respect thereto) in
writing to the Administrative Agent prior to the date of the consummation of the
respective Permitted Acquisition as Capital Expenditures which the Borrower
intends to make or cause the respective entity acquired pursuant to the
respective Permitted Acquisition to make, in each case within one year of the
date of the respective Permitted Acquisition.
"Permitted Defeasance" shall mean, with respect to any issue of
outstanding Indebtedness of the Parent or any of its Subsidiaries, that the
Parent or the respective Subsidiary which is the direct obligor with respect to
such issue of Indebtedness shall have irrevocably deposited or caused to be
deposited with the trustee (or similar representative) for the respective issue
of Indebtedness as trust funds in trust for the purpose of making the following
payments, specifically pledged as security for, and dedicated solely, to the
benefit of the holders of such Indebtedness, (A) money, in United States dollars
or the respective currency in which the respective Indebtedness is denominated,
in an amount or (B) in the case of Indebtedness denominated in U.S. dollars,
U.S. Government Obligations which through the scheduled payment of principal and
interest in respect thereof in accordance with their terms will provide, not
later than one day before the due date of any payment, money in an amount, or
(C) a combination thereof, in each case sufficient, in the opinion of a
nationally recognized (in the United States) firm of independent public
accountants expressed in a written certification thereof delivered to the
Administrative Agent, to pay and discharge and which shall be applied by the
respective trustee (or other representative) to pay and discharge, (i) the
principal of (and premium, if any) and each installment of interest or other
amounts which will become due and payable with respect to such issue of
outstanding Indebtedness in accordance with the terms thereof and (ii) any
mandatory sinking fund payments or analogous payments applicable to the
outstanding Indebtedness being defeased on the due dates thereof; provided that
a defeasance shall only constitute a Permitted Defeasance if (1) no Default or
Event of Default exists at the time of the respective defeasance or immediately
after giving effect thereto, (2) the respective defeasance complies with all
requirements contained in the respective issue of Indebtedness for the complete
defeasance thereof (it being understood that the respective issue of
Indebtedness, to be defeased, must have defeasance provisions contained therein
which are in fact complied with) and (3) a Permitted Defeasance shall not be
made in respect of the Existing Senior Subordinated Notes, any Permitted
Subordinated Notes Issuance, the Existing Convertible Notes, any Permitted
Existing Convertible Note Refinancing or the Indebtedness pursuant to this
Agreement.
"Permitted Encumbrance" shall mean, with respect to any Mortgaged
Property, such exceptions to title as are set forth in the title insurance
policy or title commitment delivered with respect thereto, all of which
exceptions must be acceptable to the Agents in their reasonable discretion.
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"Permitted Existing Convertible Note Refinancing" shall mean any
issuance by the Parent of Refinancing Convertible Notes after the Initial
Borrowing Date, all terms and conditions of which (including, without
limitation, maturities, required redemptions, required offers to purchase,
principal amount, interest rates, subordination provisions, covenants and
defaults) shall be in form and substance reasonably satisfactory to the
Administrative Agent and the Required Banks. In any event, (i) the aggregate
principal amount of the Refinancing Convertible Notes shall not exceed the
aggregate principal amount of the Existing Convertible Notes being refinanced,
(ii) the Refinancing Convertible Notes shall not have any maturity or required
repayment prior to the date which occurs six months after the Term Loan Maturity
Date as same is in effect on the date of the issuance of the Permitted Existing
Convertible Note Refinancing, (iii) Credit Events from time to time pursuant to
this Agreement, in an aggregate outstanding amount at any time equal to the sum
of the Term Loans outstanding on the date of the issuance of the Refinancing
Convertible Notes and in an amount equal to the Total Revolving Loan Commitment
as then in effect shall be permitted without complying with any financial tests,
(iv) the Refinancing Convertible Notes shall not have any different obligor, or
greater guarantees or security, than the Existing Convertible Notes, (v) in no
event shall the Refinancing Convertible Notes be secured by any pledge and
security agreement (whether equally and ratably with, or junior to, the
Obligations hereunder or otherwise), and (vi) all other terms relating to the
Refinancing Convertible Notes shall in no event be more onerous with respect to
the Banks than those relating to the Existing Convertible Notes. To the extent
the foregoing provisions of this definition require that any documentation be
satisfactory to the Required Banks, such documentation shall be deemed
satisfactory and approved by the Required Banks so long as (i) the relevant
documentation (in a substantially final form which has been approved by the
Administrative Agent) is distributed to the Banks at least 5 Business Days prior
to the entering into of such documentation, (ii) the Required Banks do not
object thereto within such 5 Business Days and (iii) the Administrative Agent
approves the final form of the documentation relating thereto. Notwithstanding
anything to the contrary contained above, if the only changes to the Existing
Convertible Notes which result from a Permitted Existing Convertible Note
Refinancing are to (x) extend the maturity date thereof and (y) change the
conversion price applicable thereto, no approval by the Administrative Agent or
the Required Banks shall be required in connection therewith.
"Permitted Foreign Subsidiary Indebtedness" means Indebtedness of any
Person organized under the laws of a jurisdiction located outside of the United
States which after the date hereof becomes a foreign subsidiary pursuant to a
Permitted Acquisition, which Indebtedness (a) exists at the time of such
Permitted Acquisition, (b) is not incurred in contemplation of such Permitted
Acquisition and (c) should in the Borrower's reasonable business judgment,
remain outstanding for valid business purposes.
"Permitted Liens" shall have the meaning provided in Section 9.01.
"Permitted Receivables Facility" shall mean the facility (including
the various agreements relating thereto) pursuant to which a Permitted
Receivables Transaction is provided.
"Permitted Receivables Facility Documentation" shall mean all
documentation evidencing, or relating to, any Permitted Receivables Facility or
Permitted Receivables Transaction.
"Permitted Receivables Transaction" shall mean a transaction (or
series of transactions) evidenced by a receivables purchase agreement and
related documentation entered into after the Initial Borrowing Date and
providing for the sale or transfer of Receivables Facility Assets by one or more
Receivables Sellers to the Receivables Subsidiary, and further providing for the
sale or transfer of Receivables Facility Assets by the Receivables Subsidiary to
one or more purchasers of interests therein; provided that (i) such agreement
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and the documents and instruments entered into in connection therewith shall be
in form and substance reasonably satisfactory to the Administrative Agent and
the Required Banks and (ii) the Parent shall have provided the Administrative
Agent and the Banks with not less than 15 days' prior notice of its intent to
enter into such receivables purchase agreement. To the extent the foregoing
provisions of this definition require that any documentation be reasonably
satisfactory to the Required Banks, such documentation shall be deemed
satisfactory and approved by the Required Banks so long as (i) the relevant
documentation (in substantially final form and in
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form acceptable to the Administrative Agent) is distributed to the Banks at
least 5 Business Days prior to the entering into of such documentation, (ii) the
Required Banks do not object thereto within such 5 Business Days, (iii) the
Administrative Agent approves the final form of the documentation relating
thereto and (iv) 100% of the Permitted Receivables Transaction Proceeds received
by the Parent or any of its Subsidiaries shall be applied in accordance with
Section 4.02(e).
"Permitted Receivables Transaction Outstandings" at any time shall
mean the aggregate amount of cash theretofore paid to the Parent and/or its
Subsidiaries in respect of the Receivables Facility Assets sold or transferred
by them pursuant to one or more Permitted Receivables Transactions, in each case
to the extent the respective receivables have not yet been repaid by the
respective account debtor or repurchased by Receivables Sellers (it being the
intent of the parties that the amount of Permitted Receivables Transaction
Outstandings at any time outstanding approximate as closely as possible the
principal amount of Indebtedness which would be outstanding at such time under
the Permitted Receivables Facilities then in effect if same were structured as a
secured lending agreement rather than a purchase agreement).
"Permitted Receivables Transaction Proceeds" shall mean all proceeds
received by the Parent and its Subsidiaries from time to time as a result of
sales or transfers of Receivables Facility Assets pursuant to one or more
Permitted Receivables Transactions.
"Permitted Subordinated Notes" shall mean any subordinated notes
issued pursuant to one or more Permitted Subordinated Notes Issuances.
"Permitted Subordinated Notes Documents" shall mean any Permitted
Subordinated Notes and all other agreements (including, without limitation, any
indenture, note purchase agreement or similar agreement) entered into in
connection with any Permitted Subordinated Notes or any Permitted Subordinated
Notes Issuance.
"Permitted Subordinated Notes Issuance" shall mean any issuance by the
Borrower of subordinated notes after the Initial Borrowing Date, all terms and
conditions of which (including, without limitation, maturities, required
redemptions, required offers to purchase, interest rates, subordination
provisions, covenants and defaults) shall be in form and substance reasonably
satisfactory to the Administrative Agent and the Required Banks. In any event,
(i) no subordinated debt issued pursuant to a Permitted Subordinated Notes
Issuance shall have any maturity or required repayment (other than as a result
of change of control or asset sale provisions approved by the Required Banks)
prior to the first anniversary of the Term Loan Maturity Date as same is in
effect on the date of the issuance of the respective Permitted Subordinated
Notes, (ii) all Obligations hereunder shall constitute Senior Debt, to which all
Permitted Subordinated Notes and obligations relating thereto shall be
subordinated on terms at least as favorable to the Banks as those applicable to
the Existing Senior Subordinated Notes and (iii) Credit Events from time to time
pursuant to this Agreement, in an aggregate outstanding amount at any time equal
to the sum of the Term Loans outstanding on the date of the issuance of the
Permitted Subordinated Notes and in an amount equal to the Total Revolving Loan
Commitment as then in effect shall be permitted without complying with any
financial tests. To the extent the foregoing provisions of this definition
require that any documentation be satisfactory to the Required Banks, such
documentation shall be deemed satisfactory and approved by the Required Banks so
long as (i) the relevant documentation (in a substantially final form which has
been approved by the Administrative Agent) is distributed to the Banks at least
5 Business Days prior to the entering into of such documentation, (ii) the
Required Banks do not object thereto within such 5 Business Days and (iii) the
Administrative Agent approves the final form of the documentation relating
thereto.
"Person" shall mean any individual, partnership, joint venture,
limited liability corporation, firm, corporation, association, trust or other
enterprise or any government or political subdivision or any agency, department
or instrumentality thereof.
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"Plan" shall mean any pension plan as defined in Section 3(2) of
ERISA, which is maintained or contributed to by (or to which there is an
obligation to contribute of) the Parent or a Subsidiary of the Parent or an
ERISA Affiliate, and each such plan for the five year period immediately
following the latest date on which the Parent, or a Subsidiary of the Parent or
an ERISA Affiliate maintained, contributed to or had an obligation to contribute
to such plan.
"Pledge Agreement" shall have the meaning provided in Section 5.10.
"Pledge Agreement Collateral" shall mean all "Collateral" as defined
in each of the Pledge Agreements.
"Pledged Securities" shall mean "Pledged Securities" as defined in the
Pledge Agreement.
"Pledged Stock" shall mean "Pledged Stock" as defined in the Pledge
Agreement.
"Prime Lending Rate" shall mean the rate which BTCo announces from
time to time as its prime lending rate, the Prime Lending Rate to change when
and as such prime lending rate changes. The Prime Lending Rate is a reference
rate and does not necessarily represent the lowest or best rate actually charged
to any customer. BTCo may make commercial loans or other loans at rates of
interest at, above or below the Prime Lending Rate.
"Pro Forma Basis" shall mean, as to any Person, for any events which
--- -----
occur subsequent to the commencement of a period for which the financial effect
of such event is being calculated, and giving effect to the event for which such
calculation is being made, such calculation as will give pro forma effect to
--- -----
such event as if same had occurred at the beginning of such period of
calculation, and
(i) for purposes of the foregoing calculation, the transaction giving
rise to the need to calculate the pro forma effect to any of the following
--- -----
events shall be assumed to have occurred on the first day of the four
consecutive fiscal quarter period last ended before the occurrence of the
respective event for which such pro forma effect is being determined (the
--- -----
"Reference Period"), and
(ii) in making any determination with respect to the incurrence or
assumption of any Indebtedness during the Reference Period or subsequent to
the Reference Period and on or prior to the date of the transaction
referenced in clause (i) above (the "Transaction Date"), (x) all
Indebtedness (including Indebtedness incurred or assumed and for which the
financial effect is being calculated, whether incurred under this Agreement
or otherwise, but excluding normal fluctuations in revolving indebtedness
incurred for working capital purposes and not to finance any acquisition)
incurred or permanently repaid during the Reference Period shall be deemed
to have been incurred or repaid at the beginning of such period, (y)
Consolidated Interest Expense of such Person attributable to interest or
dividends on any Indebtedness, as the case may be, bearing floating
interest rates should be computed on a pro forma basis as if the rate in
--- -----
effect on the Transaction Date had been the applicable rate for the entire
period and (z) Consolidated Interest Expense will be increased or reduced
by the net cost (including amortization of discount) or benefit (after
giving effect to amortization of discount) associated with the Interest
Rate Protection Agreements, which will remain in effect for the twelve-
month period after the Transaction Date and which shall have the effect of
fixing the interest rate on the date of computation, and
(iii) in making any determination of Consolidated EBITDA, pro forma
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effect shall be given to any $50 Million Permitted Acquisition, any $50
Million Asset Sale, any Material Discontinuance of Operations (or any
similar transaction or transactions which require a waiver or consent of
the Required Banks pursuant to Section 9.02), in each case which occurred
during the Reference Period or subsequent to the Reference Period and prior
to the Transaction Date, as if such Permitted Acquisition, Asset Sale
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Material Discontinuance of Operations or other transaction, as the case may
be, occurred on the first day of the Reference Period.
All pro forma determinations required above shall be made, to the extent
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possible, in accordance with Regulation S-X. For purposes of this definition,
whenever pro forma effect is to be given to any occurrence or event, the pro
--- ----- ---
forma calculation shall be determined in good faith by a responsible financial
-----
or accounting officer of the Parent.
"Projections" shall mean the projected consolidated financial
statements of the Parent and its Subsidiaries contained in the Bank Information
Memorandum.
"Property" of a Person means any and all property, whether real,
personal, tangible, intangible or mixed, of such Person, or other assets owned,
leased, or operated by such Person.
"Qualified Preferred Stock" shall mean any preferred stock of the
Parent, the express terms of which shall provide that dividends thereon shall
not be required to be paid in cash at any time that such cash payment would be
prohibited by the terms of this Agreement (and refinancings, replacements or
extensions hereof) and in any case which, by its terms or upon the happening of
any event (including any event which would constitute a Change of Control),
cannot mature (excluding any maturity as the result of an optional redemption by
the Parent) and is not mandatorily redeemable pursuant to a sinking fund
obligation or otherwise, and is not redeemable, or required to be repurchased,
at the option of the holder thereof (including, without limitation upon the
occurrence of an event which would constitute a Change of Control) in whole or
in part, at any time on or prior to the second anniversary of the Term Loan
Maturity Date. Qualified Preferred Stock may only be exchangeable into Parent
Common Stock or additional Qualified Preferred Stock.
"Quarterly Payment Date" shall mean each January 25, April 25, July 25
and October 25, in each case occurring after the Initial Borrowing Date.
"RCRA" shall mean the Resource Conservation and Recovery Act, as the
same may be amended from time to time, 42 U.S.C. (S) 6901 et seq.
-- ----
"Real Property" of any Person shall mean all the right, title and
interest of such Person in and to land, improvements and fixtures, including
Leaseholds.
"Receivables Facility Assets" shall mean all accounts receivable
(whether now existing or arising in the future) of any of Receivables Sellers
(other than the Receivables Subsidiary) which are transferred to the Receivables
Subsidiary pursuant to a Permitted Receivables Transaction, and any assets
directly related thereto, including, without limitation, (i) all collateral
given by the respective account debtor or on its behalf (but not by the Parent
or any of its Subsidiaries) securing such accounts receivable, (ii) all
contracts and all guarantees (but not by the Parent or any of its Subsidiaries)
or other obligations directly related to such accounts receivable, (iii) other
related assets which are customarily transferred or in respect of which security
interests are customarily granted in connection with asset securitization
transactions involving accounts receivable, and (iv) proceeds of all of the
foregoing.
"Receivables Facility Financing Costs" shall mean, for any period, the
total consolidated interest and fee expense of the Parent and its Subsidiaries
which would have existed for such period pursuant to a Permitted Receivables
Transaction if same were structured as a secured lending arrangement rather than
as a facility for the sale of Receivables Facility Assets.
"Receivables Sellers" at any time shall mean the Parent and any of its
Subsidiaries which is, at such time, a Person which is selling or transferring
Receivables Facility Assets to the Receivables Subsidiary pursuant to a
Permitted Receivables Transaction.
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"Receivables Subsidiary" shall mean a Wholly-Owned Subsidiary of the
Borrower which engages in no activities other than in connection with the
financing of accounts receivable and which is designated (as provided below) as
the Receivables Subsidiary (a) no portion of the Indebtedness or any other
obligations (contingent or otherwise) of which (i) is guaranteed by the Parent
or any other Subsidiary of the Parent (excluding guarantees of obligations
(other than the principal of, and interest on, Indebtedness) pursuant to
Standard Securitization Undertakings), (ii) is recourse to or obligates the
Parent or any other Subsidiary of the Parent in any way other than pursuant to
Standard Securitization Undertakings or (iii) subjects any property or asset of
the Parent or any other Subsidiary of the Parent, directly or indirectly,
contingently or otherwise, to the satisfaction thereof, other than pursuant to
Standard Securitization Undertakings, (b) with which neither the Parent nor any
of its Subsidiaries has any contract, agreement, arrangement or understanding
(other than pursuant to the Permitted Receivables Transaction Documents
(including with respect to fees payable in the ordinary course of business in
connection with the servicing of accounts receivable and related assets)) on
terms less favorable to the Parent or such Subsidiary than those that might be
obtained at the time from persons that are not Affiliates of the Parent, and (c)
to which neither the Parent nor any other Subsidiary of the Parent has any
obligation to maintain or preserve such entity's financial condition or cause
such entity to achieve certain levels of operating results. Any such
designation shall be evidenced to the Administrative Agent by filing with the
Administrative Agent an officer's certificate of the Borrower certifying that,
to the best of such officer's knowledge and belief after consultation with
counsel, such designation complied with the foregoing conditions.
"Recovery Event" shall mean the receipt by the Parent or any of its
Subsidiaries of any cash insurance proceeds or condemnation award payable (i) by
reason of theft, loss, physical destruction or damage, condemnation or any other
similar event with respect to any property or assets of the Parent or any of its
Subsidiaries or (ii) under any policy of insurance required to be maintained
under Section 8.03.
"Reference Period" shall have the meaning provided in the definition
of Pro Forma Basis.
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"Refinancing" shall mean the refinancing by the Borrower of all
amounts outstanding and the termination of all commitments under the Existing
Credit Agreement and the release of any guaranties of security in connection
therewith.
"Refinancing Convertible Notes" shall mean any convertible notes
issued pursuant to any Permitted Existing Convertible Note Refinancing.
"Refinancing Documents" shall mean all documents entered into in
connection with the Refinancing.
"Register" shall have the meaning provided in Section 13.17.
"Regulation D" shall mean Regulation D of the Board of Governors of
the Federal Reserve System as from time to time in effect and any successor to
all or a portion thereof establishing reserve requirements.
"Regulation S-X" shall mean Regulation S-X promulgated by the SEC.
"Regulation T" shall mean Regulation T of the Board of Governors of
the Federal Reserve System as from time to time in effect and any successor to
all or a portion thereof.
"Regulation U" shall mean Regulation U of the Board of Governors of
the Federal Reserve System as from time to time in effect and any successor to
all or a portion thereof.
"Regulation X" shall mean Regulation X of the Board of Governors of
the Federal Reserve System as from time to time in effect and any successor to
all or a portion thereof.
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"Release" means any passive or active spilling, leaking, pumping,
pouring, emitting, emptying, discharging, injecting, escaping, leaching,
dumping, disposing or migration into the environment.
"Replaced Bank" shall have the meaning provided in Section 1.13.
"Replacement Bank" shall have the meaning provided in Section 1.13.
"Reportable Event" shall mean an event described in Section 4043(c) of
ERISA with respect to a Plan that is subject to Title IV or ERISA other than
those events as to which the 30-day notice period is waived under subsection
.22, .23, .25, .27, or .28 of PBGC Regulation Section 4043.
"Reporting Company" shall mean a company required to file Form 10-K
Reports and Form 10-Q Reports under the Exchange Act.
"Required Banks" shall mean Non-Defaulting Banks, the sum of whose
outstanding Term Loans (or, if prior to the Initial Borrowing Date, Term Loan
Commitments) and Revolving Loan Commitments (or after the termination thereof,
outstanding Revolving Loans and Percentage of Swingline Loans and Letter of
Credit Outstandings) represent an amount greater than 50% of the sum of all
outstanding Term Loans (or, if prior to the Initial Borrowing Date, Term Loan
Commitments) of Non-Defaulting Banks and the Total Revolving Loan Commitment (or
after the termination thereof, the sum of the then total outstanding Revolving
Loans of Non-Defaulting Banks and the aggregate Percentages of all Non-
Defaulting Banks of the total outstanding Swingline Loans and Letter of Credit
Outstandings at such time).
"Restricted Payment" shall mean (i) the authorization, declaration or
payment of any Dividend with respect to the Parent or any of its Subsidiaries,
(ii) the payment by the Borrower or any of its Subsidiaries of any advance or
loan made by the Parent or any of its Subsidiaries to the Parent or any of its
Subsidiaries (other than the Borrower and its Subsidiaries) and (iii) the making
of any other payment by the Borrower or any of its Subsidiaries to the Parent or
any of its Subsidiaries (other than the Borrower and its Subsidiaries).
"Revolving Loan" shall have the meaning provided in Section 1.01(b).
"Revolving Loan Commitment" shall mean, for each Bank, the amount set
forth opposite such Bank's name in Schedule I directly below the column entitled
"Revolving Loan Commitment," as same may be (x) reduced from time to time
pursuant to Sections 3.02, 3.03, 4.02 and/or 10 or (y) adjusted from time to
time as a result of assignments to or from such Bank pursuant to Section 1.13 or
13.04(b).
"Revolving Loan Maturity Date" shall mean April 25, 2003.
"Revolving Note" shall have the meaning provided in Section 1.05(a).
"Scheduled Repayment" shall have the meaning provided in Section
4.02(b).
"Scheduled Repayment Date" shall have the meaning provided in Section
4.02(b).
"SEC" shall have the meaning provided in Section 8.01(h).
"Section 4.04(b)(ii) Certificate" shall have the meaning provided in
Section 4.04(b).
"Secured Creditors" shall have the meaning assigned that term in the
Security Documents.
"Securities Act" shall mean the Securities Act of 1933, as amended.
"Security Agreement" shall have the meaning provided in Section 5.11.
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"Security Agreement Collateral" shall mean all "Collateral" as defined
in the Security Agreement.
"Security Document" shall mean the Pledge Agreement, the Security
Agreement, each Mortgage and, after the execution and delivery thereof, each
Additional Mortgage and each Additional Security Document.
"Segregated and Foreign Subsidiary Basket Amount" shall mean
$50,000,000; provided that such amount shall be increased on each anniversary of
--------
the date of this Agreement by an amount equal to $10,000,000.
"Segregated Subsidiary" means (a) a Subsidiary of the Parent which (i)
is acquired pursuant to a Permitted Acquisition effected after the Initial
Borrowing Date for consideration consisting 50% or more (based on the amount of
cash and the Fair Market Value of all non-cash consideration, including all
Parent Common Stock) of common stock of the Parent, (ii) at the time of
acquisition has outstanding Indebtedness for money borrowed which is not
callable at par, which Indebtedness remains outstanding as Permitted Acquired
Debt incurred as permitted by Section 9.04 and (iii) the assets, liabilities and
operations of which (for this purpose, including the assets, liabilities and
operations of its Subsidiaries) are kept separate from those of the Credit
Parties and their Subsidiaries which are not Segregated Subsidiaries and (b) any
Subsidiary of a Subsidiary described in part (a) of this definition; provided
--------
that a Subsidiary described in part (a) of this definition, and each of its
Subsidiaries, shall cease to be a Segregated Subsidiary at the time the
applicable Indebtedness described in part (a)(ii) above is paid in full.
Notwithstanding anything to the contrary contained above, each of DDH, DDI and
each of their Subsidiaries shall constitute Segregated Subsidiaries until such
time as the covenants contained in Section 8.19 and 13.20(c) have been fully
complied with.
"Seller Debt" shall mean Indebtedness issued as consideration in
connection with one or more Permitted Acquisitions so long as (x) no Person,
other than the respective Subsidiary acquired pursuant to the Permitted
Acquisition and/or the Parent have any liability with respect to such
Indebtedness and (y) the terms of such Indebtedness do not otherwise cause a
violation of this Agreement.
"Shareholders' Agreements" shall have the meaning provided in Section
5.05.
"Single Employer Plan" means a Plan subject to Title IV of ERISA
maintained by the Parent, any Subsidiary of the Parent or any ERISA Affiliate
for employees of the Parent, any Subsidiary of the Parent or any ERISA
Affiliate, other than a Multiemployer Plan.
"Specified Default" shall mean any Default pursuant to any of Sections
10.01 or 10.05.
"Standard Securitization Undertakings" means representations,
warranties, covenants and indemnities entered into by the Parent or any
Subsidiary thereof in connection with a Permitted Receivables Transaction which
are reasonably customary in an accounts receivable transaction.
"Standby Letter of Credit" shall have the meaning provided in Section
2.01(a).
"Start Date" shall mean, with respect to any Margin Reduction Period,
the first day of such Margin Reduction Period.
"Stated Amount" of each Letter of Credit shall, at any time, mean the
maximum amount available to be drawn thereunder (in each case determined without
regard to whether any conditions to drawing could then be met), provided that
--------
the "Stated Amount" of each Letter of Credit denominated in a currency other
than Dollars shall be, on any date of calculation, the Dollar Equivalent of the
maximum amount available to be drawn in the respective currency thereunder
(determined without regard to whether any conditions to drawing could then be
met).
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"Xxxxx Xxxxxxxxxxx" shall mean the purchase by the Parent of its
outstanding common stock, in one or more transactions (including the Initial
Stock Repurchases); provided that the aggregate consideration paid in connection
--------
with all such purchases shall not exceed $600,000,000 in the aggregate.
"Subordinated Indebtedness" of a Person means any Indebtedness of such
Person the payment of which is subordinated to the payment of the Obligations.
Subordinated Indebtedness shall include, without limitation, all indebtedness in
respect of the Existing Senior Subordinated Notes and any Permitted Subordinated
Notes from time to time issued after the Initial Borrowing Date.
"Subsidiaries Guaranty" shall have the meaning provided in Section
5.09.
"Subsidiary" shall mean, as to any Person, (i) any corporation more
than 50% of whose stock of any class or classes having by the terms thereof
ordinary voting power to elect a majority of the directors of such corporation
(irrespective of whether or not at the time stock of any class or classes of
such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by such Person and/or one or
more Subsidiaries of such Person and (ii) any partnership, association, joint
venture or other entity in which such Person and/or one or more Subsidiaries of
such Person has more than a 50% equity interest at the time. Notwithstanding
the foregoing (and except for purposes of the definition of Unrestricted
Subsidiary contained herein) an Unrestricted Subsidiary shall be deemed not to
be a Subsidiary of the Parent or any of its Subsidiaries for purposes of this
Agreement.
"Subsidiary Guarantor" shall mean each Domestic Wholly-Owned
Subsidiary of the Parent on the Initial Borrowing Date and each Subsidiary of
the Parent which executes a guarantee after the Initial Borrowing Date pursuant
to Section 8.14.
"Subsidiary Pledgor" shall mean each Domestic Wholly-Owned Subsidiary
of the Parent on the Initial Borrowing Date and each Subsidiary of the Parent
which after the Initial Borrowing Date executes a pledge agreement pursuant to
Section 8.14.
"Supermajority Banks" of any Tranche shall mean those Non-Defaulting
Banks which would constitute the Required Banks under, and as defined in, this
Agreement if (x) all outstanding Obligations of the other Tranches under this
Agreement were repaid in full and all Commitments with respect thereto were
terminated and (y) the percentage "50%" contained therein were changed to "66-
2/3%".
"Swingline Bank" shall mean BTCo and its successors and assigns.
"Swingline Expiration Date" shall mean the date which is two Business
Days prior to the Revolving Loan Maturity Date.
"Swingline Loan" shall have the meaning provided in Section 1.01(c).
"Swingline Note" shall have the meaning provided in Section 1.05(a).
"Syndication Agent" shall have the meaning provided in the first
paragraph of this Agreement.
"Syndication Date" shall mean that date upon which the Agents
determine in their sole discretion (and notify the Borrower) that the primary
syndication (and resultant addition of institutions as Banks pursuant to Section
13.04) has been completed.
"Tax Sharing Agreement" shall have the meaning provided in Section
5.05.
"Taxes" shall have the meaning provided in Section 4.04(a).
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"Term Loan" shall have the meaning provided in Section 1.01(a).
"Term Loan Commitment" shall mean, for each Bank, the amount set forth
opposite such Bank's name in Schedule I hereto directly below the column
entitled "Term Loan Commitment", as same may be (x) reduced from time to time
pursuant to Sections 3.03, 4.02 and/or 10 or (y) adjusted from time to time as a
result of assignments to or from such Bank pursuant to Section 1.13 or 13.04.
"Term Loan Maturity Date" shall mean April 25, 2005.
"Term Note" shall have the meaning provided in Section 1.05(a).
"Termination Event" means, with respect to a Plan which is subject to
Title IV of ERISA, (a) a Reportable Event, (b) the withdrawal of the Parent, any
Subsidiary of the Parent or any ERISA Affiliate from such Plan during a plan
year in which the Parent, any Subsidiary of the Parent or any ERISA Affiliate
was a "substantial employer" as defined in Section 4001(a)(2) of ERISA or was
deemed such under Section 4062(e) of ERISA, (c) the termination of such Plan,
the filing of a notice of intent to terminate such Plan or the treatment of an
amendment of such Plan as a termination under Section 4041 of ERISA, (d) the
institution by the PBGC of proceedings to terminate such Plan or (e) any event
or condition which might constitute grounds under Section 4042 of ERISA for the
termination of, or appointment of a trustee to administer, such Plan.
"Test Date" shall mean, with respect to any Margin Reduction Period,
the Fiscal Quarter of the Parent most recently ended for which financial
statements pursuant to Section 8.01(b) or (c) are available (or are required to
be available in accordance with said Sections).
"Test Period" shall mean, for any determination, the four consecutive
fiscal quarters of the Parent then last ended (taken as one accounting period).
"Total Available Revolving Loan Commitment" shall mean at any time,
the Total Revolving Loan Commitment less the Blocked Commitment, if any, at such
time.
"Total Commitments" shall mean, at any time, the sum of the
Commitments of each of the Banks.
"Total Revolving Loan Commitment" shall mean, at any time, the sum of
the Revolving Loan Commitments of each of the Banks.
"Total Term Loan Commitment" shall mean, at any time, the sum of the
Term Loan Commitments of each of the Banks.
"Total Unutilized Revolving Loan Commitment" shall mean, at any time,
an amount equal to the remainder of (x) the then Total Revolving Loan
Commitment, less (y) the sum of the aggregate principal amount of Revolving
Loans and Swingline Loans outstanding plus the then aggregate amount of Letter
of Credit Outstandings.
"Trade Letter of Credit" shall have the meaning provided in Section
2.01(a).
"Tranche" shall mean the respective facility and commitments utilized
in making Loans hereunder, with there being three separate Tranches, i.e., Term
----
Loans, Revolving Loans and Swingline Loans.
"Transaction" shall collectively mean the entering into of this
Agreement and the Credit Events to occur hereunder on the Initial Borrowing
Date, together with the consummation of the transactions described in Sections
5.06 and 5.07.
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"Transaction Date" shall have the meaning provided in the definition
of Pro Forma Basis.
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"Two-Step Permitted Acquisition" shall mean any acquisition which
would otherwise constitute a Permitted Acquisition except that the respective
acquisition is structured in a manner so that less than 100% of the Equity
Interests in the respective Person being acquired are acquired at the time the
original payments are made in connection with the respective Permitted
Acquisition; provided that a given acquisition shall qualify as a Two-Step
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Permitted Acquisition only if (i) the Parent, the Borrower or any Wholly-Owned
Subsidiary thereof, as the case may be, has the contractual and legal right to
acquire 100% of the Equity Interests in the respective Person being acquired,
(ii) the Parent, the Borrower or the respective Wholly-Owned Subsidiary thereof
actually acquires 100% of the Equity Interests in the respective Person being
acquired within two years after the date of the consummation of the first step
of the respective Two-Step Permitted Acquisition and (iii) in connection with
each Two-Step Permitted Acquisition, the requirements contained in clauses (D),
(E), (F) and (G) of the definition of Permitted Acquisition are satisfied when
the first step of the respective Permitted Acquisition is consummated and at
such time the Borrower demonstrates that such tests would be complied with if
the second step were consummated at the same time.
"Type" shall mean the type of Loan determined with regard to the
interest option applicable thereto, i.e., whether a Base Rate Loan or a
----
Eurodollar Loan.
"UCC" shall mean the Uniform Commercial Code as from time to time in
effect in the relevant jurisdiction.
"Unfunded Liability" of any Plan shall mean the amount, if any, by
which the actuarial present value of the accumulated benefits under the Plan as
of the close of its most recent plan year exceeds the fair market value of the
assets allocable thereto, each determined in accordance with Statement of
Financial Accounting Standards No. 87, based upon the actuarial assumptions used
by the Plan's actuary in the most recent annual valuation of the Plan.
"United States" and "U.S." shall each mean the United States of
America.
"Unpaid Drawing" shall have the meaning provided for in Section
2.04(a).
"Unrestricted Subsidiary" shall mean any Subsidiary of the Borrower
that, at the time of determination, shall be an Unrestricted Subsidiary (as
designated by the Borrower, as provided below) provided that such Subsidiary
--------
does not and shall not engage, to any substantial extent, in any line or lines
of business activity other than the Business. The Borrower may designate any
Person to be an Unrestricted Subsidiary if (a) no Default or Event of Default is
existing or will occur as a consequence thereof, (b) either (x) such Subsidiary,
at the time of designation thereof, has no assets (except assets which could be
invested in such Unrestricted Subsidiary at the time of designation as described
in the immediately succeeding sentence) or (y) such Subsidiary is designated an
"Unrestricted Subsidiary" at the time of the acquisition thereof by the
Borrower, in the case of Subsidiaries acquired after the Initial Borrowing Date
and (c) such Subsidiary does not own any equity interests in, or hold any Lien
on any property of, the Parent or any other Subsidiary (excluding other
Unrestricted Subsidiaries) of the Parent. Any such designation shall also be
deemed to constitute an Investment pursuant to Section 9.05(xiii) in an amount
equal to a percentage equal to the Parent's and its Subsidiaries' percentage
ownership interest of such Subsidiary of the sum of the net assets (with assets
other than cash and Cash Equivalents valued at fair market value) of such
Subsidiary at the time of the designation (which Investment must be permitted to
be made in accordance with the requirements of Section 9.05(xiii)), unless the
designation is made pursuant to clause (b)(y) of the first sentence of this
definition, in which case the amount of consideration paid by the Parent and its
Subsidiaries to effect such acquisition shall be included as such an Investment.
The Borrower may designate any Unrestricted Subsidiary to be a Subsidiary,
provided that no Default or Event of Default is existing or will occur as a
--------
consequence thereof. Each such designation shall be evidenced by filing with
the Administrative Agent a certified copy of the resolution giving effect to
such designation and an officers' certificate
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of the chairman of the board, the president, any vice president or the treasurer
of the Borrower certifying that such designation complied with the foregoing
conditions.
"Unutilized Revolving Loan Commitment" with respect to any Bank, at
any time, shall mean such Bank's Revolving Loan Commitment at such time less the
sum of (i) the aggregate outstanding principal amount of Revolving Loans made by
such Bank and (ii) such Bank's Adjusted Percentage of the Letter of Credit
Outstandings in respect of Letters of Credit issued under this Agreement.
"U.S. Government Obligations" means securities that are (x) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (y) obligations of a person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America the payment of which is unconditionally guaranteed as a full faith and
credit obligation by the United States of America, which, in either case, are
not callable or redeemable at the option of the issuer thereof, and shall also
include a depository receipt issued by a bank (as defined in Section 3(a)(2) of
the Securities Act of 1933, as amended) as custodian with respect to any such
U.S. Government Obligation or a specific payment of principal of or interest on
any such U.S. Government Obligation held by such custodian for the account of
the holder of such depository receipt, provided that (except as required by law)
--------
such custodian is not authorized to make any deduction from the amount payable
to the holder of such depository receipt from any amount received by the
custodian in respect of the U.S. Government Obligation or the specific payment
of principal of or interest on the U.S. Government Obligation evidenced by such
depository receipt.
"Voting Stock" means any class or classes of capital stock of the
Parent pursuant to which the holders thereof have the general voting power under
ordinary circumstances to elect at least a majority of the Board of Directors of
the Parent.
"Wholly-Owned Subsidiary" shall mean, as to any Person, (i) any
corporation 100% of whose capital stock (other than director's qualifying
shares) is at the time owned by such Person and/or one or more Wholly-Owned
Subsidiaries of such Person and (ii) any partnership, association, joint venture
or other entity in which such Person and/or one or more Wholly-Owned
Subsidiaries of such Person has a 100% equity interest at such time.
SECTION 12. The Agents.
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12.01 Appointment. The Banks hereby designate Bankers Trust
-----------
Company as Administrative Agent (for purposes of this Section 12, the term
"Administrative Agent" shall include Bankers Trust Company (and/or any of its
affiliates) in its capacity as Collateral Agent and Securities Intermediary
pursuant to the Security Documents) to act as specified herein and in the other
Credit Documents. The Banks hereby designate The Bank of New York as Co-
Documentation Agent, DLJ Capital Funding, Inc. as Co-Documentation Agent and The
First National Bank of Chicago as Syndication Agent, in each case to act as
specified herein and in the other Credit Documents. Each Bank hereby
irrevocably authorizes, and each holder of any Note by the acceptance of such
Note shall be deemed irrevocably to authorize, the Agents to take such action on
its behalf under the provisions of this Agreement, the other Credit Documents
and any other instruments and agreements referred to herein or therein and to
exercise such powers and to perform such duties hereunder and thereunder as are
specifically delegated to or required of the Agents by the terms hereof and
thereof and such other powers as are reasonably incidental thereto. Each of the
Agents may perform any of its duties hereunder by or through its respective
officers, directors, agents, employees or affiliates.
12.02 Nature of Duties. No Agent shall have any duties or
----------------
responsibilities except those expressly set forth in this Agreement and the
Security Documents. Neither any Agent nor any of their respective officers,
directors, agents, employees or affiliates shall be liable for any action taken
or omitted by it or them hereunder or under any other Credit Document or in
connection herewith or therewith, unless caused by its or their gross negligence
or willful misconduct. The duties of each Agent shall be mechanical and
administrative in
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nature; no Agent shall have by reason of this Agreement or any other Credit
Document a fiduciary relationship in respect of any Bank or the holder of any
Note; and nothing in this Agreement or any other Credit Document, expressed or
implied, is intended to or shall be so construed as to impose upon any Agent any
obligations in respect of this Agreement or any other Credit Document except as
expressly set forth herein or therein.
12.03 Lack of Reliance on the Agents. Independently and without
------------------------------
reliance upon any Agent, each Bank and the holder of each Note, to the extent it
deems appropriate, has made and shall continue to make (i) its own independent
investigation of the financial condition and affairs of the Parent and its
Subsidiaries in connection with the making and the continuance of the Loans and
the taking or not taking of any action in connection herewith and (ii) its own
appraisal of the creditworthiness of the Parent and its Subsidiaries and, except
as expressly provided in this Agreement, no Agent shall have any duty or
responsibility, either initially or on a continuing basis, to provide any Bank
or the holder of any Note with any credit or other information with respect
thereto, whether coming into its possession before the making of the Loans or at
any time or times thereafter. No Agent shall be responsible to any Bank or the
holder of any Note for any recitals, statements, information, representations or
warranties herein or in any document, certificate or other writing delivered in
connection herewith or for the execution, effectiveness, genuineness, validity,
enforceability, perfection, collectibility, priority or sufficiency of this
Agreement or any other Credit Document or the financial condition of the Parent
and its Subsidiaries or be required to make any inquiry concerning either the
performance or observance of any of the terms, provisions or conditions of this
Agreement or any other Credit Document, or the financial condition of the Parent
and its Subsidiaries or the existence or possible existence of any Default or
Event of Default.
12.04 Certain Rights of the Agents. If any Agent shall request
----------------------------
instructions from the Required Banks with respect to any act or action
(including failure to act) in connection with this Agreement or any other Credit
Document, such Agent shall be entitled to refrain from such act or taking such
action unless and until such Agent shall have received instructions from the
Required Banks; and such Agent shall not incur liability to any Person by reason
of so refraining. Without limiting the foregoing, no Bank or the holder of any
Note shall have any right of action whatsoever against any Agent as a result of
such Agent acting or refraining from acting hereunder or under any other Credit
Document in accordance with the instructions of the Required Banks.
12.05 Reliance. Each Agent shall be entitled to rely, and shall be
--------
fully protected in relying, upon any note, writing, resolution, notice,
statement, certificate, telex, teletype or telecopier message, cablegram,
radiogram, order or other document or telephone message signed, sent or made by
any Person that such Agent believed to be the proper Person, and, with respect
to all legal matters pertaining to this Agreement and any other Credit Document
and its duties hereunder and thereunder, upon advice of counsel selected by such
Agent.
12.06 Indemnification. (a) To the extent any Agent is not
---------------
reimbursed and indemnified by the Borrower, the Banks will reimburse and
indemnify such Agent, in proportion to their respective "percentages" as used in
determining the Required Banks (but in any event calculated as if there were no
Defaulting Banks), for and against any and all liabilities, obligations, losses,
damages, penalties, claims, actions, judgments, costs, expenses or disbursements
of whatsoever kind or nature which may be imposed on, asserted against or
incurred by such Agent in performing its respective duties hereunder or under
any other Credit Document, in any way relating to or arising out of this
Agreement or any other Credit Document; provided that no Bank shall be liable
--------
for any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting from such
Agent's gross negligence or willful misconduct.
(b) Any Agent shall be fully justified in failing or refusing to take
any action hereunder and under any other Credit Document (except actions
expressly required to be taken by it hereunder or under the Credit Documents)
unless it shall first be indemnified to its satisfaction by the Banks pro rata
--- ----
against any and all liability, cost and expense that it may incur by reason of
taking or continuing to take any such action.
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12.07 Each Agent in its Individual Capacity. With respect to its
-------------------------------------
obligation to make Loans under this Agreement, each Agent shall have the rights
and powers specified herein for a "Bank" and may exercise the same rights and
powers as though it were not performing the duties specified herein; and the
term "Banks," "Required Banks," "holders of Notes" or any similar terms shall,
unless the context clearly otherwise indicates, include each Agent in its
individual capacity. Each Agent may accept deposits from, lend money to, and
generally engage in any kind of banking, trust or other business with any Credit
Party or any Affiliate of any Credit Party as if they were not performing the
duties specified herein, and may accept fees and other consideration from the
Borrower or any other Credit Party for services in connection with this
Agreement and otherwise without having to account for the same to the Banks.
12.08 Holders. The Administrative Agent shall deem and treat the
-------
payee of any Note as the owner thereof for all purposes hereof unless and until
a written notice of the assignment, transfer or endorsement thereof, as the case
may be, shall have been filed with the Administrative Agent. Any request,
authority or consent of any Person who, at the time of making such request or
giving such authority or consent, is the holder of any Note shall be conclusive
and binding on any subsequent holder, transferee, assignee or indorsee, as the
case may be, of such Note or of any Note or Notes issued in exchange therefor.
12.09 Resignation by the Agents. (a) The Administrative Agent or
-------------------------
the Collateral Agent may resign from the performance of all its functions and
duties hereunder and/or under the other Credit Documents at any time by giving
15 Business Days' prior written notice to the Borrower and the Banks. Such
resignation shall take effect upon the appointment of a successor Administrative
Agent or Collateral Agent, as the case may be, pursuant to clauses (b) and (c)
below or, in the case of the Administrative Agent, as otherwise provided below.
Each other Agent may resign from the performance of all of its functions and
duties hereunder and/or under the other Credit Documents at any time after the
earlier of (i) the 65th day after the Initial Borrowing Date and (ii) the
Syndication Date, by giving notice to the Borrower, the Administrative Agent and
the Banks. Such resignation shall take effect upon delivery of such notice.
(b) Upon any such notice of resignation by the Administrative Agent
or Collateral Agent, as the case may be, the Required Banks shall appoint a
successor Administrative Agent or Collateral Agent, as the case may be,
hereunder or thereunder who shall be a commercial bank or trust company
reasonably acceptable to the Borrower.
(c) If a successor Administrative Agent or Collateral Agent, as the
case may be, shall not have been so appointed within such 15 Business Day
period, the Administrative Agent or Collateral Agent, as the case may be, with
the consent of the Borrower (which shall not be unreasonably withheld or
delayed), shall then appoint a commercial bank or trust company with capital and
surplus of not less than $500,000,000 as successor Administrative Agent or
Collateral Agent, as the case may be, who shall serve as Administrative Agent or
Collateral Agent, as the case may be, hereunder or thereunder until such time,
if any, as the Required Banks appoint a successor Administrative Agent or
Collateral Agent, as the case may be, as provided above.
(d) In the case of the Administrative Agent only, if no successor
Administrative Agent has been appointed pursuant to clause (b) or (c) above by
the 15th Business Day after the date such notice of resignation was given by the
Administrative Agent, the Administrative Agent's resignation shall become
effective and the Syndication Agent (if it agrees in its sole discretion without
any obligation to do so), or if there is no Syndication Agent or the Syndication
Agent does not so agree, then the Required Banks, shall thereafter perform all
the duties of the Administrative Agent hereunder and/or under any other Credit
Document until such time, if any, as the Required Banks appoint a successor
Administrative Agent as provided above.
(e) Upon a resignation of any Agent pursuant to this Section 12.09,
such Agent shall remain indemnified to the extent provided in this Agreement and
the other Credit Documents and the provisions of this Section 12 shall continue
in effect for the benefit of such Agent for all of its actions and inactions
while serving as such Agent.
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SECTION 13. Miscellaneous.
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13.01 Payment of Expenses, etc. The Borrower shall: (i) whether or
-------------------------
not the transactions herein contemplated are consummated, pay all reasonable
out-of-pocket costs and expenses of the Agents (including, without limitation,
the reasonable fees and disbursements of White & Case and local counsel) in
connection with the preparation, execution and delivery of this Agreement and
the other Credit Documents and the documents and instruments referred to herein
and therein and any amendment, waiver or consent relating hereto or thereto, of
the Agents in connection with their syndication efforts with respect to this
Agreement and of the Agents in connection with the enforcement of this Agreement
and the other Credit Documents and the documents and instruments referred to
herein and therein (including, without limitation, the reasonable fees and
disbursements of counsel for the Agents); (ii) pay and hold each of the Banks
harmless from and against any and all present and future stamp, excise and other
similar taxes with respect to the foregoing matters and save each of the Banks
harmless from and against any and all liabilities with respect to or resulting
from any delay or omission (other than to the extent attributable to such Bank)
to pay such taxes (other than any tax imposed on or measured by the net income
or profits of a Bank pursuant to the laws of the jurisdiction in which such Bank
is organized or in which the principal office or applicable lending office of
such Bank is located or any subdivision thereof or therein); and (iii) indemnify
the Agents and each Bank, and each of their respective officers, directors,
trustees, employees, representatives and agents from and hold each of them
harmless against any and all liabilities, obligations (including removal or
remedial actions), losses, damages, penalties, claims, actions, judgments,
suits, costs, expenses and disbursements (including reasonable attorneys' and
consultants' fees and disbursements) incurred by, imposed on or assessed against
any of them as a result of, or arising out of, or in any way related to, or by
reason of, (a) any investigation, litigation or other proceeding (whether or not
the Agents or any Bank is a party thereto) related to the entering into and/or
performance of this Agreement or any other Credit Document or the use of any
Letter of Credit or the proceeds of any Loans hereunder or the consummation of
any transactions contemplated herein (including, without limitation, the
Transaction), or in any other Credit Document or the exercise or enforcement of
any of their rights or remedies provided herein or in the other Credit
Documents, or (b) the actual or alleged presence of Hazardous Materials in the
air, surface water or groundwater or on the surface or subsurface of any Real
Property at any time owned or operated by any Credit Party or any of its
Subsidiaries, the generation, storage, transportation, handling or disposal of
Hazardous Materials at any location, whether or not owned or operated by any
Credit Party or any of its Subsidiaries, the non-compliance of any Real Property
with foreign, federal, state and local laws, regulations, and ordinances
(including applicable permits thereunder) applicable to any Real Property, or
any Environmental Claim in connection with or relating to any Credit Party, any
of its Subsidiaries or any of their operations or activities or any Real
Property at any time owned or operated by any Credit Party or any of its
Subsidiaries, including, in each case, without limitation, the reasonable fees
and disbursements of counsel and other consultants incurred in connection with
any such investigation, litigation or other proceeding (but excluding any
losses, liabilities, claims, damages or expenses to the extent incurred by
reason of the gross negligence or willful misconduct of the Person to be
indemnified). To the extent that the undertaking to indemnify, pay or hold
harmless the Agents or any Bank set forth in the preceding sentence may be
unenforceable because it is violative of any law or public policy, the Borrower
shall make the maximum contribution to the payment and satisfaction of each of
the indemnified liabilities which is permissible under applicable law.
13.02 Right of Setoff. In addition to any rights now or hereafter
---------------
granted under applicable law or otherwise, and not by way of limitation of any
such rights, upon the occurrence and during the continuance of an Event of
Default, each Bank is hereby authorized at any time or from time to time,
without presentment, demand, protest or other notice of any kind to the Parent
or the Borrower or to any other Person, any such notice being hereby expressly
waived, to set off and to appropriate and apply any and all deposits (general or
special) and any other Indebtedness at any time held or owing by such Bank
(including, without limitation, by branches and agencies of such Bank wherever
located) to or for the credit or the account of the Parent, the Borrower or any
Subsidiary Guarantor (but in any event excluding assets held in trust for any
other Person) against and on account of the Obligations and liabilities of the
Parent, the Borrower or such Subsidiary Guarantor, as applicable, to such Bank
under this Agreement or under any of the other Credit Documents, including,
without limitation, all interests
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in Obligations purchased by such Bank pursuant to Section 13.06(b), all
participations by any Bank in any Swingline Loans or Letters of Credit as
required pursuant to the provisions of this Agreement and all other claims of
any nature or description arising out of or connected with this Agreement or any
other Credit Document, irrespective of whether or not such Bank shall have made
any demand hereunder and although said Obligations, liabilities or claims, or
any of them, shall be contingent or unmatured. The Borrower agrees that any Bank
purchasing participations in one or more Letters of Credit or Swingline Loans as
required by the provisions of this Agreement, or purchasing participations as
required by Section 13.06(b), may, to the fullest extent permitted by law,
exercise all rights (including without limitation the right of setoff) with
respect to such participations as fully as if such Bank or a direct creditor of
the Borrower with respect to such participations in the amount thereof.
13.03 Notices. Except as otherwise expressly provided herein, all
-------
notices and other communications provided for hereunder shall be in writing
(including telex or telecopier communication) and mailed, telexed, telecopied or
delivered: if to the Parent, at the Parent's address specified opposite its
signature below; if to the Borrower, at the Borrower's address specified
opposite its signature below; if to any Bank, at its address specified opposite
its name on Schedule II; and if to the Administrative Agent, at its Notice
Office; or, as to any Credit Party or any of the Agents, at such other address
as shall be designated by such party in a written notice to the other parties
hereto and, as to each Bank, at such other address as shall be designated by
such Bank in a written notice to the Borrower and the Agents. All such notices
and communications shall, when mailed, telexed, telecopied or sent by overnight
courier, be effective when deposited in the mails or delivered to the overnight
courier, prepaid and properly addressed for delivery on such or the next
Business Day, or sent by telex or telecopier, except that notices and
communications to the Agents and the Borrower shall not be effective until
received by the Agents or the Borrower, as the case may be.
13.04 Benefit of Agreement. (a) This Agreement shall be binding
--------------------
upon and inure to the benefit of and be enforceable by the respective successors
and assigns of the parties hereto; provided, however, that, no Credit Party may
-------- -------
assign or transfer any of its rights, obligations or interest hereunder or under
any other Credit Document without the prior written consent of all of the Banks
and, provided further, that, although any Bank may grant participations in its
-------- -------
rights hereunder, such Bank shall remain a "Bank" for all purposes hereunder
(and may not otherwise transfer or assign all or any portion of its Commitments
hereunder except as provided in Section 13.04(b)) and the participant shall not
constitute a "Bank" hereunder and, provided further, that no Bank shall grant
-------- -------
any participation under which the participant shall have rights to approve any
amendment to or waiver of this Agreement or any other Credit Document except to
the extent such amendment or waiver would (i) extend the final scheduled
maturity of any Loan, Note or Letter of Credit (unless such Letter of Credit is
not extended beyond the Revolving Loan Maturity Date) in which such participant
is participating, or reduce the rate or extend the time of payment of interest
or Fees thereon (except in connection with a waiver of applicability of any
post-default increase in interest rates) or reduce the principal amount thereof,
or increase the amount of the participant's participation over the amount
thereof then in effect (it being understood that a waiver of any Default or
Event of Default or of a mandatory reduction in the Total Commitments shall not
constitute a change in the terms of such participation, and that an increase in
any Commitment or Loan shall be permitted without the consent of any participant
if the participant's participation is not increased as a result thereof), (ii)
consent to the assignment or transfer by the Borrower of any of its rights and
obligations under this Agreement or (iii) release all or substantially all of
the Collateral under all of the Security Documents (except as expressly provided
in the Credit Documents) supporting the Loans hereunder in which such
participant is participating. In the case of any such participation, the
participant shall not have any rights under this Agreement or any of the other
Credit Documents (the participant's rights against such Bank in respect of such
participation to be those set forth in the agreement executed by such Bank in
favor of the participant relating thereto) and all amounts payable by the
Borrower hereunder shall be determined as if such Bank had not sold such
participation.
(b) Notwithstanding the foregoing, any Bank (or any Bank together
with one or more other Banks) may (x) assign all or a portion of its Revolving
Loan Commitment (and related outstanding Obligations hereunder) and/or its
outstanding Term Loans (or, if prior to the Initial Borrowing Date, Term Loan
Commitment) to (i) its parent company and/or any affiliate of such Bank which is
at least 50% owned by such
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Bank or its parent company, (ii) one or more Banks or (iii) in the case of any
Bank that is a fund that invests in bank loans, any other fund that invests in
bank loans and is managed or advised by the same investment advisor of such Bank
or by an Affiliate of such investment advisor or (y) assign all, or if less than
all, a portion equal to at least $10,000,000 (or, in connection with assignments
by the Agents within 90 days of the Initial Borrowing Date, such lesser amounts
as they may determine) in the aggregate for the assigning Bank or assigning
Banks, of such Revolving Loan Commitments and/or outstanding principal amount of
Term Loans (or, if prior to the Initial Borrowing Date, Term Loan Commitment)
hereunder to one or more Eligible Transferees (treating any fund that invests in
bank loans and any other fund that invests in bank loans and is managed or
advised by the same investment advisor of such fund or by an Affiliate of such
investment advisor as a single Eligible Transferee), each of which assignees
shall become a party to this Agreement as a Bank by execution of an Assignment
and Assumption Agreement, provided that, (i) at such time Schedule I shall be
--------
deemed modified to reflect the Commitments (and/or outstanding Term Loans, as
the case may be) of such new Bank and of the existing Banks, (ii) new Notes will
be issued, at the Borrower's expense, to such new Bank and to the assigning Bank
upon the request of such new Bank or assigning Bank, such new Notes to be in
conformity with the requirements of Section 1.05 (with appropriate
modifications) to the extent needed to reflect the revised Commitments (and/or
outstanding Term Loans, as the case may be), (iii) the consent of the
Administrative Agent and each Issuing Bank shall be required in connection with
any assignment of all or any portion of Revolving Loan Commitments (which
consents shall not be unreasonably withheld or delayed), (iv) in the case of
assignments pursuant to clause (y) above, the consent of the Administrative
Agent (and, unless a Specified Default or any Event of Default is then in
existence, the consent of the Borrower) shall be required (which consents shall
not be unreasonably withheld or delayed) and (v) the Administrative Agent shall
receive at the time of each such assignment, from the assigning or assignee
Bank, the payment of a non-refundable assignment fee of $3,500. To the extent of
any assignment pursuant to this Section 13.04(b), the assigning Bank shall be
relieved of its obligations hereunder with respect to its assigned Commitments.
At the time of each assignment pursuant to this Section 13.04(b) to a Person
which is not already a Bank hereunder and which is not a United States person
(as such term is defined in Section 7701(a)(30) of the Code) for Federal income
tax purposes, the respective assignee Bank shall provide to the Borrower and the
Administrative Agent the appropriate Internal Revenue Service Forms (and, if
applicable, a Section 4.04(b)(ii) Certificate) described in Section 4.04(b). To
the extent that an assignment of all or any portion of a Bank's Commitments and
related outstanding Obligations pursuant to Section 1.13 or this Section
13.04(b) would, at the time of such assignment, result in increased costs under
Section 1.10, 1.11, 2.05 or 4.04 from those being charged by the respective
assigning Bank prior to such assignment, then the Borrower shall not be
obligated to pay such increased costs (although the Borrower shall be obligated
to pay any other increased costs of the type described above resulting from
changes after the date of the respective assignment). At the time of any such
assignment pursuant to this Section 13.04(b), the assigning Bank shall furnish
notice thereof to the Administrative Agent.
(c) Nothing in this Agreement shall prevent or prohibit any Bank from
pledging its Loans and Notes hereunder to a Federal Reserve Bank in support of
borrowings made by such Bank from such Federal Reserve Bank and, with the
consent of the Administrative Agent, any Bank which is a fund may pledge all or
any portion of its Notes or Loans to a trustee for the benefit of investors and
in support of its obligation to such investors.
13.05 No Waiver; Remedies Cumulative. No failure or delay on the
------------------------------
part of any Agent or any Bank or any holder of any Note in exercising any right,
power or privilege hereunder or under any other Credit Document and no course of
dealing between the Borrower or any other Credit Party and any Agent or any Bank
or the holder of any Note shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, power or privilege hereunder or under
any other Credit Document preclude any other or further exercise thereof or the
exercise of any other right, power or privilege hereunder or thereunder. The
rights, powers and remedies herein or in any other Credit Document expressly
provided are cumulative and not exclusive of any rights, powers or remedies
which any Agent or any Bank or the holder of any Note would otherwise have. No
notice to or demand on any Credit Party in any case shall entitle any Credit
Party to any other or further notice or demand in
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similar or other circumstances or constitute a waiver of the rights of any Agent
or any Bank or the holder of any Note to any other or further action in any
circumstances without notice or demand.
13.06 Payments Pro Rata. (a) Except as otherwise provided in this
-----------------
Agreement, the Administrative Agent agrees that promptly after its receipt of
each payment from or on behalf of the Borrower in respect of any Obligations
hereunder, it shall distribute such payment to the Banks (other than any Bank
that has consented in writing to waive its pro rata share of any such payment)
--- ----
pro rata based upon their respective shares, if any, of the Obligations with
--- ----
respect to which such payment was received.
(b) Each of the Banks agrees that, if it should receive any amount
hereunder (whether by voluntary payment, by realization upon security, by the
exercise of the right of setoff or banker's lien, by counterclaim or cross
action, by the enforcement of any right under the Credit Documents, or
otherwise), which is applicable to the payment of the principal of, or interest
on, the Loans, Unpaid Drawings, Commitment Commission or Letter of Credit Fees,
of a sum which with respect to the related sum or sums received by other Banks
is in a greater proportion than the total of such Obligation then owed and due
to such Bank bears to the total of such Obligation then owed and due to all of
the Banks immediately prior to such receipt, then such Bank receiving such
excess payment shall purchase for cash without recourse or warranty from the
other Banks an interest in the Obligations of the respective Credit Party to
such Banks in such amount as shall result in a proportional participation by all
the Banks in such amount; provided that if all or any portion of such excess
--------
amount is thereafter recovered from such Bank, such purchase shall be rescinded
and the purchase price restored to the extent of such recovery, but without
interest.
(c) Notwithstanding anything to the contrary contained herein, the
provisions of the preceding Sections 13.06(a) and (b) shall be subject to the
express provisions of this Agreement which require, or permit, differing
payments to be made to Non-Defaulting Banks as opposed to Defaulting Banks.
13.07 Calculations; Computations. (a) The financial statements to
--------------------------
be furnished to the Banks pursuant hereto shall be made and prepared in
accordance with Agreement Accounting Principles consistently applied throughout
the periods involved (except as set forth in the notes thereto or as otherwise
disclosed in writing by the Borrower to the Banks); provided that, except as
--------
otherwise specifically provided herein, all computations determining compliance
with Sections 4, 9 and the Leverage Ratio (and all other defined financial
terms) shall utilize accounting principles and policies in conformity with those
used to prepare financial statements delivered to the Banks pursuant to Section
7.05(a) (with the foregoing generally accepted accounting principles, subject to
the preceding proviso, herein called "GAAP"). Notwithstanding anything to the
contrary contained herein, all computations determining compliance with Sections
4, 9 and the Leverage Ratio (and all other defined financial terms) shall treat
Unrestricted Subsidiaries as if the same did not exist.
(b) All computations of interest, Commitment Commission and Fees
hereunder shall be made on the basis of a year of 360 days for the actual number
of days (including the first day but excluding the last day) occurring in the
period for which such interest, Commitment Commission or Fees are payable.
13.08 GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF
-----------------------------------------------------------
JURY TRIAL. (A) THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS
----------
AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL, EXCEPT AS
OTHERWISE PROVIDED IN CERTAIN OF THE MORTGAGES, BE CONSTRUED IN ACCORDANCE WITH
AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK. ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT MAY BE
BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE
SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT,
EACH OF PARENT AND THE BORROWER HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE
JURISDICTION
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OF THE AFORESAID COURTS. EACH OF PARENT AND THE BORROWER HEREBY FURTHER
IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK JURISDICTION OVER SUCH
CREDIT PARTY, AND AGREES NOT TO PLEAD OR CLAIM IN ANY LEGAL ACTION OR PROCEEDING
WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN ANY OF
THE AFORESAID COURTS, THAT ANY SUCH COURT LACKS JURISDICTION OVER SUCH CREDIT
PARTY. EACH OF PARENT AND THE BORROWER FURTHER IRREVOCABLY CONSENTS TO THE
SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR
PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL,
POSTAGE PREPAID, TO ANY SUCH CREDIT PARTY AT ITS ADDRESS SET FORTH OPPOSITE ITS
SIGNATURE BELOW, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING.
EACH OF PARENT AND THE BORROWER HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH
SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR
CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER CREDIT
DOCUMENT THAT SUCH SERVICE OF PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE.
NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE AGENTS UNDER THIS AGREEMENT, ANY
BANK OR THE HOLDER OF ANY NOTE TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY CREDIT
PARTY IN ANY OTHER JURISDICTION.
(b) EACH OF PARENT AND THE BORROWER HEREBY IRREVOCABLY WAIVES ANY
OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF
THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS
AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN
CLAUSE (A) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD
OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY
SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.
(c) EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING
OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.
13.09 Counterparts. This Agreement may be executed in any number of
------------
counterparts and by the different parties hereto on separate counterparts, each
of which when so executed and delivered shall be an original, but all of which
shall together constitute one and the same instrument. A set of counterparts
executed by all the parties hereto shall be lodged with the Borrower and the
Administrative Agent.
13.10 Effectiveness. This Agreement shall become effective on the
-------------
date (the "Effective Date") on which the Parent, the Borrower and each of the
Banks shall have signed a counterpart hereof (whether the same or different
counterparts) and shall have delivered the same to the Administrative Agent or,
in the case of the Banks, shall have given to the Administrative Agent
telephonic (confirmed in writing), written or telex notice (actually received)
at such office that the same has been signed and mailed to it. The
Administrative Agent will give the Borrower and each Bank prompt written notice
of the occurrence of the Effective Date.
13.11 Headings Descriptive. The headings of the several sections and
--------------------
subsections of this Agreement are inserted for convenience only and shall not in
any way affect the meaning or construction of any provision of this Agreement.
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13.12 Amendment or Waiver; etc. (a) Neither this Agreement nor any
-------------------------
other Credit Document nor any terms hereof or thereof may be changed, waived,
discharged or terminated unless such change, waiver, discharge or termination is
in writing signed by the respective Credit Parties party thereto and the
Required Banks, provided that no such change, waiver, discharge or termination
--------
shall, without the consent of each Bank (other than a Defaulting Bank) (with
Obligations being directly affected in the case of following clause (i)), (i)
extend the final scheduled maturity of any Loan or Note or extend the stated
maturity of any Letter of Credit beyond the Revolving Loan Maturity Date, or
reduce the rate (although the Required Banks may waive in writing the
applicability of any increase in interest rates or the rate at which Fees are
payable, which increase is predicated solely upon the existence of a Specified
Default or an Event of Default or the late payment of amounts pursuant to this
Agreement) or extend the time of payment of interest or Fees thereon, or reduce
the principal amount thereof (except to the extent repaid in cash) (it being
understood that any amendment or modification to the financial definitions in
this Agreement or to Section 13.07(a) shall not constitute a reduction in the
rate of interest for purposes of this clause (i)), (ii) release all or
substantially all of the Collateral (except as expressly provided in the Credit
Documents) under all the Security Documents, (iii) amend, modify or waive any
provision of this Section 13.12, (iv) reduce the percentage specified in the
definition of Required Banks (it being understood that, with the consent of the
Required Banks, additional extensions of credit pursuant to this Agreement may
be included in the determination of the Required Banks on substantially the same
basis as the extensions of Term Loans and the Revolving Loan Commitments are
included on the Effective Date) or (v) amend or modify the definition of
Supermajority Banks (it being understood that, with the consent of the Required
Banks, additional Obligations and Tranches may be included in the determination
of Supermajority Banks on substantially the same basis as the Obligations and
Tranches are included on the Effective Date) or (vi) consent to the assignment
or transfer by the Parent or the Borrower of any of its rights and obligations
under this Agreement; provided further, that no such change, waiver, discharge
-------- -------
or termination shall (t) increase the Commitments of any Bank over the amount
thereof then in effect without the consent of such Bank (it being understood
that waivers or modifications of conditions precedent, covenants, Defaults or
Events of Default or of a mandatory reduction in the Total Commitments shall not
constitute an increase of the Commitment of any Bank, and that an increase in
the available portion of any Commitment of any Bank shall not constitute an
increase in the Commitment of such Bank), (u) without the consent of the
Swingline Bank, alter its rights or obligations with respect to Swingline Loans,
(v) without the consent of each Issuing Bank affected thereby, amend, modify or
waive any provision of Section 2 or alter its rights or obligations with respect
to Letters of Credit, (w) without the consent of each Agent affected thereby,
amend, modify or waive any provision of Section 12 as same applies to such Agent
or any other provision as same relates to the rights or obligations of such
Agent, (x) without the consent of the Collateral Agent, amend, modify or waive
any provision relating to the rights or obligations of the Collateral Agent, (y)
without the consent of the Majority Banks of each Tranche which is being
allocated a lesser prepayment, repayment or commitment reduction as a result of
the actions described below (or without the consent of the Majority Banks of
each Tranche in the case of an amendment to the definition of Majority Banks),
amend the definition of Majority Banks or alter the required application of any
prepayments or repayments (or commitment reductions), as between the various
Tranches, pursuant to Section 4.01 or 4.02 (excluding Section 4.02(b)) (although
the Required Banks may (1) waive, in whole or in part, any such prepayment,
repayment or commitment reduction, so long as the application, as amongst the
various Tranches, of any such prepayment, repayment or commitment reduction
which is still required to be made is not altered and (2) agree to the inclusion
of additional extensions of credit made after the Initial Borrowing Date (and
not pursuant to Commitments as in effect on the Initial Borrowing Date) on
substantially the same basis as the other extensions of credit, pursuant to
Sections 4.01 and 4.02) or (z) without the consent of the Supermajority Banks of
the respective Tranche (i.e. Supermajority Banks holding Term Loans or Term Loan
----
Commitments), amend, modify or waive any Scheduled Repayment (except that, if
additional Loans are made pursuant to a given Tranche, the Scheduled Repayments
of such Tranche may be increased on a proportionate basis without the consent
otherwise required by this clause (y)).
(b) If, in connection with any proposed change, waiver, discharge or
termination to any of the provisions of this Agreement as contemplated by
clauses (i) through (vi), inclusive, of the first proviso to Section
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13.12(a), the consent of the Required Banks is obtained but the consent of one
or more of such other Banks whose consent is required is not obtained, then the
Borrower shall have the right, so long as all non-consenting Banks whose
individual consent is required are treated as described in either clauses (A) or
(B) below, to either (A) replace each such non-consenting Bank or Banks (or, at
the option of the Borrower if the respective Bank's consent is required with
respect to less than all Tranches of Loans (or related Commitments), to replace
only the respective Tranche or Tranches of Commitments and/or Loans of the
respective non-consenting Bank which gave rise to the need to obtain such Bank's
individual consent) with one or more Replacement Banks pursuant to Section 1.13
so long as at the time of such replacement, each such Replacement Bank consents
to the proposed change, waiver, discharge or termination or (B) terminate such
non-consenting Bank's Revolving Loan Commitment (if such Bank's consent is
required as a result of its Revolving Loan Commitment) and/or repay each Tranche
of outstanding Term Loans of such Bank which gave rise to the need to obtain
such Bank's consent, in accordance with Sections 3.02(b) and/or 4.01(b),
provided that, unless the Commitments terminated, and Loans repaid, pursuant to
--------
preceding clause (B) are immediately replaced in full at such time through the
addition of new Banks or the increase of the Commitments and/or outstanding
Loans of remaining Banks (who in each case must specifically consent thereto),
then in the case of any action pursuant to preceding clause (B) the Required
Banks (determined both (x) before giving effect to the proposed action and (y)
as if the Loans and Commitments being terminated (and not replaced) were not
outstanding) shall specifically consent thereto, provided further, that in any
-------- -------
event the Borrower shall not have the right to replace a Bank, terminate its
Revolving Loan Commitment or repay its Loans solely as a result of the exercise
of such Bank's rights (and the withholding of any required consent by such Bank)
pursuant to the second proviso to Section 13.12(a).
13.13 Survival. All indemnities set forth herein including, without
--------
limitation, in Sections 1.10, 1.11, 2.05, 4.04, 13.01 and 13.06 shall, subject
to Section 13.15 (to the extent applicable), survive the execution, delivery and
termination of this Agreement and the Notes and the making and repayment of the
Loans.
13.14 Domicile of Loans. Each Bank may transfer and carry its Loans
-----------------
at, to or for the account of any office, Subsidiary or Affiliate of such Bank.
Notwithstanding anything to the contrary contained herein, to the extent that a
transfer of Loans pursuant to this Section 13.14 would, at the time of such
transfer, result in increased costs under Section 1.10, 1.11, 2.05 or 4.04 from
those being charged by the respective Bank prior to such transfer, then the
Borrower shall not be obligated to pay such increased costs (although the
Borrower shall be obligated to pay any other increased costs of the type
described above resulting from changes after the date of the respective
transfer).
13.15 Limitation on Additional Amounts, Etc. Notwithstanding
--------------------------------------
anything to the contrary contained in Sections 1.10, 1.11, 2.05 or 4.04, unless
a Bank gives notice to the Borrower that it is obligated to pay an amount under
any such Section within six months after the later of (x) the date the Bank
incurs the respective increased costs, Taxes, loss, expense or liability,
reduction in amounts received or receivable or reduction in return on capital or
(y) the date such Bank has actual knowledge of its incurrence of the respective
increased costs, Taxes, loss, expense or liability, reductions in amounts
received or receivable or reduction in return on capital, then such Bank shall
only be entitled to be compensated for such amount by the Borrower pursuant to
said Section 1.10, 1.11, 2.05 or 4.04, as the case may be, to the extent the
costs, Taxes, loss, expense or liability, reduction in amounts received or
receivable or reduction in return on capital are incurred or suffered on or
after the date which occurs six months prior to such Bank giving notice to the
Borrower that it is obligated to pay the respective amounts pursuant to said
Section 1.10, 1.11, 2.05 or 4.04, as the case may be. This Section 13.15 shall
have no applicability to any Section of this Agreement other than said Sections
1.10, 1.11, 2.05 and 4.04.
13.16 Confidentiality. (a) Subject to the provisions of clause (b)
---------------
of this Section 13.16, each Bank agrees that it will treat as confidential (in
accordance with normal banking procedures) any information with respect to the
Parent or any of its Subsidiaries which is now or in the future furnished
pursuant to this Agreement or any other Credit Document; provided that any Bank
--------
may disclose any such information (i) as has become generally available to the
public other than by virtue of a breach of this Section 13.16(a) by the
respective Bank,
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(ii) as may be required or reasonably appropriate in any report, statement or
testimony submitted to any municipal, state or Federal regulatory body having or
claiming to have jurisdiction over such Bank or to the Federal Reserve Board or
the Federal Deposit Insurance Corporation or similar organizations (whether in
the United States or elsewhere) or their successors, (iii) as may be required or
reasonably appropriate in respect to any summons or subpoena or in connection
with any litigation, (iv) in order to comply with any law, order, regulation or
ruling applicable to such Bank, (v) to the Agents or the Collateral Agent, (vi)
to such Bank's Affiliates, employees, auditors, advisors or counsel or to
another Bank if the Bank or such Bank's holding or parent company in its sole
discretion determines that any such party should have access to such
information, provided such Persons shall be subject to the provisions of this
Section 13.16 to the same extent as such Bank and (vii) to any prospective or
actual transferee or participant in connection with any contemplated transfer or
participation of any of the Notes or Commitments or any interest therein by such
Bank, provided that such prospective transferee agrees to be bound by the
--------
confidentiality provisions contained in this Section 13.16. In connection with
any disclosure by a Bank pursuant to clause (iii) of the immediately preceding
sentence, such Bank agrees, to the extent practicable, to give the Parent and
the Borrower prior notice of such disclosure.
(b) Each of the Parent and the Borrower hereby acknowledges and
agrees that each Bank may share with any of its affiliates any information
related to the Parent or any of its Subsidiaries (including, without limitation,
any nonpublic customer information regarding the creditworthiness of the Parent
and its Subsidiaries, provided such Persons shall be subject to the provisions
of this Section 13.16 to the same extent as such Bank).
13.17 Register. The Borrower hereby designates the Administrative
--------
Agent to serve as the Borrower's agent, solely for purposes of this Section
13.17, to maintain a register (the "Register") on which it will record the
Commitments from time to time of each of the Banks, the Loans made by each of
the Banks and each repayment in respect of the principal amount of the Loans of
each Bank. Failure to make any such recordation, or any error in such
recordation, shall not affect the Borrower's obligations in respect of such
Loans. With respect to any Bank, the transfer of the Commitments of such Bank
and the rights to the principal of, and interest on, any Loan made pursuant to
such Commitments shall not be effective until such transfer is recorded on the
Register maintained by the Administrative Agent with respect to ownership of
such Commitments and Loans and prior to such recordation all amounts owing to
the transferor with respect to such Commitments and Loans shall remain owing to
the transferor. The registration of assignment or transfer of all or part of
any Commitments and Loans shall be recorded by the Administrative Agent on the
Register only upon the acceptance by the Administrative Agent of a properly
executed and delivered Assignment and Assumption Agreement pursuant to Section
13.04(b). Coincident with the delivery of such an Assignment and Assumption
Agreement to the Administrative Agent for acceptance and registration of
assignment or transfer of all or part of a Loan, or as soon thereafter as
practicable, the assigning or transferor Bank shall surrender the Note
evidencing such Loan, and thereupon one or more new Notes in the same aggregate
principal amount shall be issued to the assigning or transferor Bank and/or the
new Bank. The Borrower agrees to indemnify the Administrative Agent from and
against any and all losses, claims, damages and liabilities of whatsoever nature
which may be imposed on, asserted against or incurred by the Administrative
Agent in performing its duties under this Section 13.17 except to the extent
resulting from the gross negligence or willful misconduct of the Administrative
Agent.
13.18 Senior Debt. The parties hereto acknowledge and agree that all
-----------
Obligations of the Borrower pursuant to this Agreement and the other Credit
Documents, and all obligations of each other Credit Party pursuant to this
Agreement and the other Credit Documents, in each case constitute Senior Debt of
the Borrower, and of each Guarantor under, and as defined in, the Existing
Senior Subordinated Note Indenture, for all purposes of the Existing Senior
Subordinated Indenture, and all such Obligations are hereby expressly designated
as Senior Debt and made senior in right of payment to the Existing Senior
Subordinated Notes and each Guarantee (as defined in the Existing Senior
Subordinated Note Indenture) thereof.
13.19 Obligation to Make Payments in Dollars. The obligation of the
--------------------------------------
Borrower to make payment in Dollars of the principal of and interest on the
Notes and any other amounts due hereunder or under any other Credit Document to
the Payment Office of the Administrative Agent as provided in Sections 4.03 and
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4.04 shall not be discharged or satisfied by any tender, or any recovery
pursuant to any judgment, which is expressed in or converted into any currency
other than Dollars, except to the extent such tender or recovery shall result in
the actual receipt by the Administrative Agent at its Payment Office on behalf
of the Banks or holders of the Notes of the full amount of Dollars expressed to
be payable in respect of the principal of and interest on the Notes and all
other amounts due hereunder or under any other Credit Document. The obligation
of the Borrower to make payments in Dollars as aforesaid shall be enforceable as
an alternative or additional cause of action for the purpose of recovery in
Dollars of the amount, if any, by which such actual receipt shall fall short of
the full amount of Dollars expressed to be payable in respect of the principal
of and interest on the Notes and any other amounts due under any other Credit
Document, and shall not be affected by judgment being obtained for any other
sums due under this Agreement or under any other Credit Document.
13.20 Post Closing Actions. Notwithstanding anything to the contrary
--------------------
contained in this Agreement or the other Credit Documents, the parties hereto
acknowledge and agree that:
(a) Filing of Financing Statements. The Parent and its Subsidiaries
------------------------------
shall be required to cause the filing of all financing statements (on Form UCC-1
or other appropriate form) in the relevant filing offices within ten (10) days
after the Initial Borrowing Date, but shall not be required to have same filed
on the Initial Borrowing Date;
(b) Mortgages. To the extent any action required to be taken
---------
pursuant to Section 5.12 has not been taken on or before the Initial Borrowing
Date, such actions shall instead be required to be taken within 20 days after
the Initial Borrowing Date.
(c) DDH and Subsidiaries. DDH and its Subsidiaries (including
--------------------
without limitation DDI) shall not be required to become Credit Parties until the
earlier to occur (x) the date occurring 5 Business Days after the occurrence of
the DDI Defeasance in accordance with the provisions of Section 8.19 or (y) the
date occurring 120 days after the Initial Borrowing Date; provided that if DDH
--------
and its Subsidiaries do not become Credit Parties on the Initial Borrowing Date,
then on the date upon which they become Credit Parties as otherwise contemplated
by this clause (c), the Parent and the Borrower shall cause to be delivered to
the Administrative Agent all documentation with respect to DDH and its
Subsidiaries which would have been delivered with respect thereto (including
without limitation officer's certificates and legal opinions) pursuant to
Section 5 if DDH and its Subsidiaries had become Credit Parties at such time.
(d) Foreign Subsidiaries. To the extent stock of Foreign
--------------------
Subsidiaries of the Parent is required to be pledged hereunder or under the
Pledge Agreement, the Parent, the Borrower and the respective Credit Parties
shall have a period of 20 days after the Initial Borrowing Date to take all
actions which may be necessary in order to perfect the security interests
required to be granted therein.
(e) Domestic Subsidiaries. To the extent stock of (i) Midnite
---------------------
Express International Courier, Inc., a California corporation, and/or (ii) the
Domestic Subsidiaries of Sofco-Xxxx, Inc., a New York corporation, is required
to be pledged hereunder or under the Pledge Agreement, the Parent, the Borrower
and the respective Credit Parties shall have a period of 20 days after the
Initial Borrowing Date to take all actions which may be necessary in order to
perfect the security interests required to be granted therein.
(f) Notes. To the extent Notes (as defined in the Pledge Agreement)
-----
are required to be pledged hereunder or under the Pledge Agreement, the Parent,
the Borrower and the respective Credit Parties shall have a period of 20 days
after the Initial Borrowing Date to take all actions which may be necessary in
order to perfect the security interests required to be granted therein
(including without limitation the furnishing to the Collateral Agent of an
updated Annex B to the Pledge Agreement).
All conditions precedent and representations contained in this
Agreement and the other Credit Documents shall be deemed modified to the extent
necessary to effect the foregoing (and to permit the taking of
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the actions described above within the time periods required above, rather than
as elsewhere provided in the Credit Documents); provided that (x) to the extent
--------
any representation and warranty would not be true because the foregoing actions
were not taken on the Initial Borrowing Date, the respective representation and
warranty shall be required to be true and correct in all material respects at
the time the respective action is taken (or was required to be taken) in
accordance with the foregoing provisions of this Section 13.20 and (y) all
representations and warranties relating to the Security Documents shall be
required to be true immediately after the actions required to be taken by
Section 13.20 have been taken (or were required to be taken). The acceptance of
the benefits of each Credit Event shall constitute a representation, warranty
and covenant by the Borrower to each of the Banks that the actions required
pursuant to this Section 13.20 will be, or have been, taken within the relevant
time periods referred to in this Section 13.20 and that, at such time, all
representations and warranties contained in this Agreement and the other Credit
Documents shall then be true and correct without any modification pursuant to
this Section 13.20, the parties hereto acknowledge and agree that the failure to
take any of the actions required above, within the relevant time periods
required above, shall give rise to an immediate Event of Default pursuant to
this Agreement.
SECTION 14. The Parent Guaranty.
-------------------
14.01 The Parent Guaranty. In order to induce the Agents and the
-------------------
Banks to enter into this Agreement and to extend credit hereunder, to induce
Banks or any of their respective Affiliates to enter into the Interest Rate
Protection Agreements or Other Hedging Agreements, and in recognition of the
direct benefits to be received by the Parent from the proceeds of the Loans, the
issuance of the Letters of Credit, and the entering into of Interest Rate
Protection Agreements or Other Hedging Agreements, the Parent hereby agrees with
the Guaranteed Creditors as follows: the Parent hereby unconditionally and
irrevocably guarantees as primary obligor and not merely as surety the full and
prompt payment when due, whether upon maturity, acceleration or otherwise, of
any and all of the Guaranteed Obligations of the Borrower to the Guaranteed
Creditors. If any or all of the Guaranteed Obligations of the Borrower to the
Guaranteed Creditors becomes due and payable hereunder, the Parent irrevocably
and unconditionally promises to pay such indebtedness to the Guaranteed
Creditors, or order, on demand, together with any and all expenses which may be
incurred by the Guaranteed Creditors in collecting any of the Guaranteed
Obligations. This Parent Guaranty is a guaranty of payment and not of
collection. If claim is ever made upon any Guaranteed Creditor for repayment or
recovery of any amount or amounts received in payment or on account of any of
the Guaranteed Obligations and any of the aforesaid payees repays all or part of
said amount by reason of (i) any judgment, decree or order of any court or
administrative body having jurisdiction over such payee or any of its property
or (ii) any settlement or compromise of any such claim effected in good faith by
such payee with any such claimant (including the Borrower), then and in such
event the Parent agrees that any such judgment, decree, order, settlement or
compromise shall be binding upon the Parent, notwithstanding any revocation of
this Parent Guaranty or other instrument evidencing any liability of the
Borrower, and the Parent shall be and remain liable to the aforesaid payees
hereunder for the amount so repaid or recovered to the same extent as if such
amount had never originally been received by any such payee.
14.02 Bankruptcy. Additionally, the Parent unconditionally and
----------
irrevocably guarantees the payment of any and all of the Guaranteed Obligations
of the Borrower to the Guaranteed Creditors whether or not due or payable by the
Borrower upon the occurrence of an Event of Default under Section 10.05, and
unconditionally promises to pay such indebtedness to the Guaranteed Creditors,
or order, on demand, in lawful money of the United States.
14.03 Nature of Liability. The liability of the Parent hereunder is
-------------------
exclusive and independent of any security for or other guaranty of the
Guaranteed Obligations of the Borrower whether executed by the Parent, any other
guarantor or by any other party, and the liability of the Parent hereunder is
not affected or impaired by (a) any direction as to application of payment by
the Borrower or by any other party, or (b) any other continuing or other
guaranty, undertaking or maximum liability of a guarantor or of any other party
as to the Guaranteed Obligations of the Borrower, or (c) any payment
on or in reduction of any such other guaranty or undertaking, or (d) any
dissolution, termination or increase, decrease or change in personnel by the
Borrower, or (e) any payment
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made to any Guaranteed Creditor on the Guaranteed Obligations which any such
Guaranteed Creditor repays to the Borrower pursuant to court order in any
bankruptcy, reorganization, arrangement, moratorium or other debtor relief
proceeding, and the Parent waives any right to the deferral or modification of
its obligations hereunder by reason of any such proceeding, or (f) the lack of
validity or enforceability of any Credit Document or any instrument relating
thereto.
14.04 Independent Obligation. The obligations of the Parent
----------------------
hereunder are independent of the obligations of any other guarantor, any other
party or the Borrower, and a separate action or actions may be brought and
prosecuted against the Parent whether or not action is brought against any other
guarantor, any other party or the Borrower and whether or not any other
guarantor, any other party or the Borrower be joined in any such action or
actions. The Parent waives, to the full extent permitted by law, the benefit of
any statute of limitations affecting its liability hereunder or the enforcement
thereof. Any payment by the Borrower or other circumstance which operates to
toll any statute of limitations as to the Borrower shall operate to toll the
statute of limitations as to the Parent.
14.05 Authorization. The Parent authorizes the Guaranteed Creditors
-------------
without notice or demand (except as shall be required by applicable statute and
cannot be waived), and without affecting or impairing its liability hereunder,
from time to time to:
(a) change the manner, place or terms of payment of, and/or change or
extend the time of payment of, renew, increase, accelerate or alter, any of
the Guaranteed Obligations (including any increase or decrease in the rate
of interest thereon), any security therefor, or any liability incurred
directly or indirectly in respect thereof, and the Parent Guaranty herein
made shall apply to the Guaranteed Obligations as so changed, extended,
renewed or altered; provided the foregoing provisions shall not be deemed
--------
to modify the express provisions of any Credit Document to which the Parent
is a party which require the consent of the Parent to the respective
amendment or modification to such Credit Document;
(b) take and hold security for the payment of the Guaranteed
Obligations and sell, exchange, release, surrender, realize upon or
otherwise deal with in any manner and in any order any property by
whomsoever at any time pledged or mortgaged to secure, or howsoever
securing, the Guaranteed Obligations or any liabilities (including any of
those hereunder) incurred directly or indirectly in respect thereof or
hereof, and/or any offset thereagainst;
(c) exercise or refrain from exercising any rights against the
Borrower, any other Credit Party or others or otherwise act or refrain from
acting;
(d) release or substitute any one or more endorsers, guarantors, the
Borrower or other obligors;
(e) settle or compromise any of the Guaranteed Obligations, any
security therefor or any liability (including any of those hereunder)
incurred directly or indirectly in respect thereof or hereof, and may
subordinate the payment of all or any part thereof to the payment of any
liability (whether due or not) of the Borrower to its creditors other than
the Guaranteed Creditors;
(f) apply any sums by whomsoever paid or howsoever realized to any
liability or liabilities of the Borrower to the Guaranteed Creditors
regardless of what liability or liabilities of the Parent or the Borrower
remain unpaid;
(g) consent to or waive any breach of, or any act, omission or
default under, this Agreement or any of the instruments or agreements
referred to herein, or otherwise amend, modify or supplement this Agreement
or any of such other instruments or agreements;
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(h) take any other action which would, under otherwise applicable
principles of common law, give rise to a legal or equitable discharge of
the Parent from its liabilities under this the Parent Guaranty;
(i) release any collateral security for the Guaranteed Obligations;
and/or
(j) change its corporate structure.
14.06 Reliance. It is not necessary for any Guaranteed Creditor to
--------
inquire into the capacity or powers of the Borrower or the officers, directors,
partners or agents acting or purporting to act on its behalf, and any Guaranteed
Obligations made or created in reliance upon the professed exercise of such
powers shall be guaranteed hereunder.
14.07 Subordination. Any of the indebtedness of the Borrower now
-------------
or hereafter owing to the Parent is hereby subordinated to the Guaranteed
Obligations of the Borrower owing to the Guaranteed Creditors; and if the
Administrative Agent so requests at a time when an Event of Default exists, all
such indebtedness of the Borrower to the Parent shall be collected, enforced and
received by the Parent for the benefit of the Guaranteed Creditors and be paid
over to the Administrative Agent on behalf of the Guaranteed Creditors on
account of the Guaranteed Obligations of the Borrower to the Guaranteed
Creditors, but without affecting or impairing in any manner the liability of the
Parent under the other provisions of this Parent Guaranty. Prior to the
transfer by the Parent of any note or negotiable instrument evidencing any of
the indebtedness of the Borrower to the Parent, the Parent shall xxxx such note
or negotiable instrument with a legend that the same is subject to this
subordination. Without limiting the generality of the foregoing, the Parent
hereby agrees with the Guaranteed Creditors that it will not exercise any right
of subrogation which it may at any time otherwise have as a result of this
Parent Guaranty (whether contractual, under Section 509 of the Bankruptcy Code
or otherwise) until all Guaranteed Obligations have been irrevocably paid in
full in cash.
14.08 Waiver. (a) The Parent waives any right (except as shall be
------
required by applicable statute and cannot be waived) to require any Guaranteed
Creditor to (i) proceed against the Borrower, any other guarantor or any other
party, (ii) proceed against or exhaust any security held from the Borrower, any
other guarantor or any other party or (iii) pursue any other remedy in any
Guaranteed Creditor's power whatsoever. The Parent waives any defense based on
or arising out of any defense of the Borrower, any other guarantor or any other
party, other than payment in full of the Guaranteed Obligations, based on or
arising out of the disability of the Borrower, any other guarantor or any other
party, or the validity, legality or unenforceability of the Guaranteed
Obligations or any part thereof from any cause, or the cessation from any cause
of the liability of the Borrower other than payment in full of the Guaranteed
Obligations. The Guaranteed Creditors may, at their election, foreclose on any
security held by any Agent, the Collateral Agent or any other Guaranteed
Creditor by one or more judicial or nonjudicial sales, whether or not every
aspect of any such sale is commercially reasonable (to the extent such sale is
permitted by applicable law), or exercise any other right or remedy the
Guaranteed Creditors may have against the Borrower or any other party, or any
security, without affecting or impairing in any way the liability of the Parent
hereunder except to the extent the Guaranteed Obligations have been paid. The
Parent waives any defense arising out of any such election by the Guaranteed
Creditors, even though such election operates to impair or extinguish any right
of reimbursement or subrogation or other right or remedy of the Parent against
the Borrower or any other party or any security.
(b) The Parent waives all presentments, demands for performance,
protests and notices, including, without limitation, notices of nonperformance,
notices of protest, notices of dishonor, notices of acceptance of this Parent
Guaranty, and notices of the existence, creation or incurring of new or
additional Guaranteed Obligations. The Parent assumes all responsibility for
being and keeping itself informed of the Borrower's financial condition and
assets, and of all other circumstances bearing upon the risk of nonpayment of
the Guaranteed Obligations and the nature, scope and extent of the risks which
the Parent assumes and incurs hereunder, and agrees that neither the Agents nor
any Bank shall have any duty to advise the Parent of information known to them
regarding such circumstances or risks.
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IN WITNESS WHEREOF, the parties hereto have caused their duly
authorized officers to execute and deliver this Agreement as of the date first
above written.
Address:
1 Environmental Way CORPORATE EXPRESS, INC.
Xxxxxxxxxx, Xxxxxxxx 00000
Telephone No.: (000) 000-0000
Telecopier No.: (000) 000-0000 By______________________________
Attention: Xxxxxxx X. Xxxxxxx, Xx., Esq. Title:
0 Xxxxxxxxxxxxx Xxx CEX HOLDINGS, INC.
Xxxxxxxxxx, Xxxxxxxx 00000
Telephone No.: (000) 000-0000
Telecopier No.: (000) 000-0000 By______________________________
Attention: Xxxxxxx X. Xxxxxxx, Xx., Esq. Title:
BANKERS TRUST COMPANY,
Individually and as Administrative Agent
By______________________________
Title:
THE FIRST NATIONAL BANK OF
CHICAGO,
Individually and as Syndication Agent
By______________________________
Title:
THE BANK OF NEW YORK,
Individually and as Co-Documentation Agent
By______________________________
Title:
DLJ CAPITAL FUNDING, INC.,
Individually and as Co-Documentation Agent
By______________________________
Title:
SCHEDULE I
----------
COMMITMENTS
Term Revolving
Bank Loan Commitment Loan Commitment
------------------------------------------ ------------------------------ --------------------------
Bankers Trust Company $125,000,000 $375,000,000
The First National Bank of Chicago $ 62,500,000 $187,500,000
The Bank of New York $ 37,500,000 $112,500,000
DLJ Capital Funding, Inc. $ 25,000,000 $ 75,000,000
Totals $250,000,000 $750,000,000
============ ============
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SCHEDULE II
-----------
BANK ADDRESSES
Bankers Trust Company One Bankers Trust Plaza
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Telephone No.: (000) 000-0000
Telecopier No.: (000) 000-0000
Attention: Xxxxxx Xxxxxxxx
The First National Bank of Chicago Xxx Xxxxx Xxxxxxxx Xxxxx
Xxxxxxx, Xxxxxxxx 00000
Telephone No.: (000) 000-0000
Telecopier No.: (000) 000-0000
Attention: Xxxxxx Xxxxx
The Bank of New York 00000 Xxxxxxxx Xxxxxxxxx
Xxx Xxxxxxx, Xxxxxxxxxx 00000
Telephone No.: (000) 000-0000
Telecopier No.: (000) 000-0000
Attention: Xxxxxx Xxxx
DLJ Capital Funding, Inc. 000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Telephone No.: (000) 000-0000
Telecopier No.: (000) 000-0000
Attention: Xxxx Xxxxx
with a copy to:
2121 Avenue of the Stars
Xxx Xxxxxxx, Xxxxxxxxxx 00000
Telephone No.: (000) 000-0000
Telecopier No.: (000) 000-0000
Attention: Xxxxx Xxxxxx
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(v)
SCHEDULE I Commitments
SCHEDULE II Bank Addresses
SCHEDULE 2.01 Existing Letters of Credit
SCHEDULE 5.08 Exiting Indebtedness
SCHEDULE 5.12 Real Property
SCHEDULE 5.15 Environmental and Hazardous Material Disclosure Schedules
SCHEUDLE 7.03 Conflicts
SCHEDULE 7.09 Subsidiaries
SCHEDULE 7.10 ERISA
SCHEDULE 7.22 Capitalization
SCHEDULE 8.03 Insurance
SCHEDULE 9.01 Existing Liens
SCHEDULE 9.05 Existing Investments
SCHEDULE 9.13 Existing Restrictions
SCHEDULE 11.01A Investments in Third Parties or Unrestricted Subsidiaries
EXHIBIT A Notice of Borrowing
EXHIBIT B-1 Term Note
EXHIBIT B-2 Revolving Note
EXHIBIT B-3 Swingline Note
EXHIBIT C Letter of Credit Request
EXHIBIT D Section 4.04(b)(ii) Certificate
EXHIBIT E-1 Opinion of Xxxxxx & Xxxxxxx
EXHIBIT E-2 Opinion of Ballard, Spahr, Xxxxxxx & Ingersoll
EXHIBIT E-3 Opinion of General Counsel to the Parent
EXHIBIT F Officers' Certificate
EXHIBIT G Subsidiaries Guaranty
EXHIBIT H Pledge Agreement
EXHIBIT I Security Agreement
EXHIBIT J Assignment and Assumption Agreement
EXHIBIT K Solvency Certificate
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