EXECUTION COPY
$150,000,000
AMENDED AND RESTATED CREDIT AGREEMENT
Dated as of June 26, 2001
Among
KEY3MEDIA GROUP, INC.
as Borrower
and
THE INITIAL LENDERS NAMED HEREIN
as Initial Lenders
and
THE GUARANTORS NAMED HEREIN
as Guarantors
and
XXXXXX XXXXXXX SENIOR FUNDING, INC.
as Sole Lead Arranger and Sole Book-Runner
and
XXXXXX XXXXXXX SENIOR FUNDING, INC.
as Administrative Agent
and
XXXXXX XXXXXXX & CO. INCORPORATED
as Collateral Agent
and
THE BANK OF NEW YORK
as Syndication Agent
and
UBS WARBURG LLC
as Documentation Agent
T A B L E O F C O N T E N T S
Section Page
ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.01. Certain Defined Terms..................................................2
SECTION 1.02. Computation of Time Periods; Other Definitional Provisions............23
SECTION 1.03. Accounting Terms......................................................24
ARTICLE II
AMOUNTS AND TERMS OF THE ADVANCES AND THE LETTERS OF CREDIT
SECTION 2.01. The Advances and Letters of Credit....................................24
SECTION 2.02. Making the Advances...................................................25
SECTION 2.03. Issuance of and Drawings and Reimbursement Under Letters of Credit....26
SECTION 2.04. Repayment of Advances.................................................27
SECTION 2.05. Termination or Reduction of the Commitments...........................28
SECTION 2.06. Prepayments...........................................................28
SECTION 2.07. Interest..............................................................30
SECTION 2.08. Fees..................................................................31
SECTION 2.09. Conversion of Advances................................................31
SECTION 2.10. Increased Costs, Etc..................................................32
SECTION 2.11. Payments and Computations.............................................33
SECTION 2.12. Taxes.................................................................34
SECTION 2.13. Sharing of Payments, Etc..............................................36
SECTION 2.14. Use of Proceeds.......................................................37
SECTION 2.15. Defaulting Lenders....................................................37
SECTION 2.16. Evidence of Debt......................................................39
SECTION 2.17. Increase in the Aggregate Commitments.................................39
ARTICLE III
CONDITIONS OF LENDING
SECTION 3.01. Conditions Precedent to Initial Extension of Credit...................41
SECTION 3.02. Conditions Precedent to Each Borrowing................................44
SECTION 3.03. Determinations Under Section 3.01.....................................44
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
SECTION 4.01. Representations and Warranties of the Borrower........................44
ARTICLE V
COVENANTS OF THE BORROWER
SECTION 5.01. Affirmative Covenants.................................................49
SECTION 5.02. Negative Covenants....................................................54
SECTION 5.03. Reporting Requirements................................................59
SECTION 5.04. Financial Covenants...................................................61
i
ARTICLE VI
EVENTS OF DEFAULT
SECTION 6.01. Events of Default.....................................................62
SECTION 6.02. Actions in Respect of the Letters of Credit upon Default..............64
ARTICLE VII
GUARANTY
SECTION 7.01. Guaranty; Limitation of Liability.....................................64
SECTION 7.02. Guaranty Absolute.....................................................65
SECTION 7.03. Waivers and Acknowledgments...........................................66
SECTION 7.04. Subrogation...........................................................67
SECTION 7.05. Guaranty Supplements..................................................67
SECTION 7.06. Subordination.........................................................67
SECTION 7.07. Continuing Guaranty; Assignments......................................68
ARTICLE VIII
THE AGENTS
SECTION 8.01. Authorization and Action..............................................68
SECTION 8.02. Agents' Reliance, Etc.................................................69
SECTION 8.03. The Administrative Agent, the Syndication Agent and the
Documentation Agent and Their Respective Affiliates...................69
SECTION 8.04. Lender Credit Decision................................................69
SECTION 8.05. Indemnification.......................................................69
SECTION 8.06. Successor Agents......................................................70
SECTION 8.07. Other Agents..........................................................71
ARTICLE IX
MISCELLANEOUS
SECTION 9.01. Amendments, Etc.......................................................71
SECTION 9.02. Notices, Etc..........................................................72
SECTION 9.03. No Waiver; Remedies...................................................72
SECTION 9.04. Costs and Expenses....................................................72
SECTION 9.05. Right of Set-off......................................................74
SECTION 9.06. Binding Effect........................................................74
SECTION 9.07. Assignments and Participations........................................74
SECTION 9.08. Execution in Counterparts.............................................76
SECTION 9.09. Confidentiality.......................................................76
SECTION 9.10. No Liability of the Issuing Bank......................................77
SECTION 9.11. Release of Collateral.................................................77
SECTION 9.12. Jurisdiction, Etc.....................................................77
SECTION 9.13. Governing Law.........................................................78
SECTION 9.14. Waiver of Jury Trial..................................................78
SCHEDULES
Schedule I........ - Commitments and Applicable Lending Offices
Schedule 4.01(b).. - Subsidiaries
Schedule 4.01(d).. - Authorizations, Approvals, Actions, Notices and Filings
ii
Schedule 4.01(f) - Disclosed Litigation
Schedule 4.01(o) - Plans, Multiemployer Plans and Welfare Plans
Schedule 4.01(p) - Environmental Disclosure
Schedule 4.01(q) - Open Years; Unpaid Tax Liabilities; Adjusted Tax Bases
Schedule 4.01(r) - Existing Debt
Schedule 4.01(s) - Surviving Debt
Schedule 4.01(t) - Liens
Schedule 4.01(u) - Owned Real Property
Schedule 4.01(v) - Investments
Schedule 4.01(w) - Intellectual Property
EXHIBITS
Exhibit A - Form of Note
Exhibit B - Form of Notice of Borrowing
Exhibit C - Form of Assignment and Acceptance
Exhibit D - Form of Security Agreement
Exhibit E Intentionally Omitted
Exhibit F - Form of Solvency Certificate
Exhibit G - Form of Guaranty Supplement
Exhibit H - Form of Opinion of Xxxxxxxx & Xxxxxxxx
Exhibit I-1 Form of Standby Letter of Credit
Exhibit I-2 Form of Trade Letter of Credit
iii
AMENDED AND RESTATED CREDIT AGREEMENT
AMENDED AND RESTATED CREDIT AGREEMENT (this "Agreement") dated as of
June 26, 2001 among Key3Media Group, Inc., a Delaware corporation (the
"Borrower"), any Person who becomes a Guarantor (as herein defined) after the
date hereof, the banks, financial institutions and other institutional lenders
listed on the signature pages hereof as the Initial Lenders (the "Initial
Lenders"), the bank listed on the signature pages hereof as the Initial Issuing
Bank (the "Initial Issuing Bank"; together with the Initial Lenders, the
"Initial Lender Parties"), Xxxxxx Xxxxxxx Senior Funding, Inc. ("Xxxxxx
Xxxxxxx"), as sole lead arranger and sole book-runner (the "Lead Arranger"),
Xxxxxx Xxxxxxx & Co. Incorporated ("MS&Co."), as collateral agent (together with
any successor collateral agent appointed pursuant to Article VIII, the
"Collateral Agent") for the Lender Parties (as hereinafter defined), Xxxxxx
Xxxxxxx, as administrative agent (together with any successor administrative
agent appointed pursuant to Article VIII, the "Administrative Agent"), The Bank
of New York, as syndication agent (the "Syndication Agent"), and UBS Warburg
LLC, as documentation agent (the "Documentation Agent" and, together with the
Administrative Agent, the Collateral Agent, and the Syndication Agent, the
"Agents") for the Lender Parties.
PRELIMINARY STATEMENTS:
(1) Key3Media Events, Inc., a Delaware corporation ("Key3Media Events")
and a wholly owned subsidiary of the Borrower, entered into, as borrower, a
$380,000,000 Credit Agreement, dated as of August 3, 2000 (the "Existing Credit
Agreement"), with the lenders and guarantors named therein, Xxxxxx Xxxxxxx, as
lead arranger, sole book runner and administrative agent, and MS&Co., as
collateral agent.
(2) The Borrower issued $75,000,000 face amount of zero coupon senior
debentures (the "Senior Debentures") dated as of August 18, 2000 between the
Borrower and the holders thereof.
(3) Simultaneously with the Initial Extension of Credit, the Borrower
is issuing at least $250,000,000 aggregate principal amount of senior
subordinated unsecured debt securities (the "Subordinated Notes").
(4) The Borrower has requested that the Lenders amend and restate the
Existing Credit Agreement and lend to the Borrower up to $150,000,000 (the
"Senior Bank Financing") to be used, together with the cash proceeds from the
issuance of the Subordinated Notes and cash on the balance sheet of the Borrower
on the Effective Date (as hereinafter defined), (a) to refinance (the
"Refinancing") the Existing Credit Agreement and the Senior Debentures, (b) to
pay transaction fees and expenses in connection with the Refinancing, and (c) to
provide for the ongoing working capital and other general corporate purposes of
the Borrower and its Subsidiaries.
(5) The Lenders have indicated their willingness to amend and restate
the Existing Credit Agreement and to agree to lend up to $150,000,000 on the
terms and conditions of this Agreement.
NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements contained herein, the parties hereto hereby agree to
amend and restate the Existing Credit Agreement as follows:
ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.01. Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):
"ADMINISTRATIVE AGENT" has the meaning specified in the recital of
parties to this Agreement.
"ADMINISTRATIVE AGENT'S ACCOUNT" means the account of the
Administrative Agent as the Administrative Agent shall specify in writing
to the Lender Parties.
"ADJUSTED CONSOLIDATED NET INCOME" means, for any period, the net
income (or loss) of the Borrower and its Restricted Subsidiaries for such
period determined on a consolidated basis in conformity with GAAP; provided
that the following items shall be excluded in computing Adjusted
Consolidated Net Income (without duplication):
(1) the net income (or loss) of any Person that is not a Restricted
Subsidiary except in the case of such net income to the extent of
the aggregate amount of cash actually distributed by such Person
during such period to the Borrower or one of its Restricted
Subsidiaries as a dividend or other distribution (subject, in the
case of dividend or other distribution to one of its Restricted
Subsidiaries, to the limitations contained in (3) below);
(2) the net income (or loss) of any Person acquired by the Borrower
or any of its Subsidiaries for any period prior to such
acquisition;
(3) the net income of any Restricted Subsidiary of the Borrower to
the extent that it is not permitted at that time to declare or
pay such net income as dividend or other distributions by the
operation of the terms of its charter or any agreement,
instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to such Restricted Subsidiary;
(4) any gains or losses (on an after-tax basis) attributable to sales
of assets outside the ordinary course of business;
(5) the cumulative effect of a change in accounting principles;
(6) all extraordinary gains and extraordinary losses;
(7) any non-cash compensation charges arising from compensation paid
to the Borrower's employees;
(8) non-cash gains or losses resulting from fluctuations in currency
exchange rates; and
(9) the tax effect of any of the items listed above.
"ADVANCE" means a Revolving Credit Advance, a Letter of Credit Advance
or a Term Loan Advance, as applicable.
"AFFILIATE" means, as to any Person, any other Person that, directly
or indirectly, controls, is controlled by or is under common control with
such
2
Person or is a director or officer of such Person. For purposes of this
definition, the term "control" (including the terms "controlling",
"controlled by" and "under common control with") of a Person means the
possession, direct or indirect, of the power to vote 5% or more of the
Voting Interests of such Person or to direct or cause the direction of the
management and policies of such Person, whether through the ownership of
Voting Interests, by contract or otherwise.
"AGENTS" has the meaning specified in the recital of parties to this
Agreement.
"AGREEMENT VALUE" means, for each Hedge Agreement, on any date of
determination, an amount determined by the Administrative Agent equal to:
(a) in the case of a Hedge Agreement documented pursuant to the Master
Agreement (Multicurrency-Cross Border) published by the International Swap
and Derivatives Association, Inc. (the "MASTER AGREEMENT"), the amount, if
any, that would be payable by any Loan Party or any of its Restricted
Subsidiaries to its counterparty to such Hedge Agreement, as if (i) such
Hedge Agreement was being terminated early on such date of determination,
(ii) such Loan Party or Restricted Subsidiary was the sole "Affected
Party", and (iii) the Administrative Agent was the sole party determining
such payment amount (with the Administrative Agent making such
determination pursuant to the provisions of the form of Master Agreement);
or (b) in the case of a Hedge Agreement traded on an exchange, the
xxxx-to-market value of such Hedge Agreement, which will be the unrealized
loss on such Hedge Agreement to the Loan Party or Restricted Subsidiary of
a Loan Party party to such Hedge Agreement determined by the Administrative
Agent based on the settlement price of such Hedge Agreement on such date of
determination, or (c) in all other cases, the xxxx-to-market value of such
Hedge Agreement, which will be the unrealized loss on such Hedge Agreement
to the Loan Party or Restricted Subsidiary of a Loan Party party to such
Hedge Agreement determined by the Administrative Agent as the amount, if
any, by which (i) the present value of the future cash flows to be paid by
such Loan Party or Restricted Subsidiary exceeds (ii) the present value of
the future cash flows to be received by such Loan Party or Restricted
Subsidiary pursuant to such Hedge Agreement; capitalized terms and used and
not otherwise defined in this definition shall have the respective meanings
set forth in the above described Master Agreement.
"APPLICABLE LAW" means (a) all applicable common laws and principles
of equity and (b) all applicable provisions of all (i) constitutions,
statutes, rules, regulations and orders of governmental bodies, (ii)
Governmental Approvals and (iii) orders, decisions, judgments and decrees
of all courts (whether at law or in equity or admiralty) and arbitrators.
"APPLICABLE LENDING OFFICE" means, with respect to each Lender Party,
such Lender Party's Domestic Lending Office in the case of a Base Rate
Advance and such Lender Party's Eurodollar Lending Office in the case of a
Eurodollar Rate Advance.
"APPLICABLE MARGIN" means, at any time with respect to the Revolving
Credit Facility, (a) for the period from the date hereof to the six-month
anniversary of the Effective Date, 2.75% per annum in the case of
Eurodollar Rate Advances, and 1.75% per annum in the case of Base Rate
Advances, and (b) thereafter, a percentage per annum determined by
reference to the Leverage Ratio as set forth below:
3
---------------------------------------------------------------------------------------
EURODOLLAR RATE
LEVERAGE RATIO BASE RATE ADVANCES ADVANCES
---------------------------------------------------------------------------------------
Level I
less than 2.25: 1.0 1.00% 2.00%
---------------------------------------------------------------------------------------
Level II
greater than or equal to 2.25: 1.0 and less 1.375% 2.375%
than 2.50: 1.0
---------------------------------------------------------------------------------------
Level III
greater than or equal to 2.50: 1.0 and less 1.500% 2.500%
than 2.75: 1.0
---------------------------------------------------------------------------------------
Level IV
greater than or equal to 2.75: 1.0 and less 1.625% 2.625%
than 3:00: 1.0
---------------------------------------------------------------------------------------
Level V
greater than or equal to 3:00: 1.0 and less 1.750% 2.750%
than 3.25: 1.0
---------------------------------------------------------------------------------------
Level VI
greater than or equal to 3.25: 1.0 and less 1.875% 2.875%
than 3.50: 1.0
---------------------------------------------------------------------------------------
Level VII
greater than or equal to 3.50: 1.0 and less 2.000% 3.000%
than 3.75: 1.0
---------------------------------------------------------------------------------------
Level VIII
greater than or equal to 3.75: 1.0 and less 2.125% 3.125%
than 4.00: 1.0
---------------------------------------------------------------------------------------
Level IX
Greater than or equal to 4.00: 1.0 2.250% 3.250%
---------------------------------------------------------------------------------------
For the purposes of clause (b) above, the Applicable Margin for each
Advance shall be determined by reference to the Leverage Ratio in effect
from time to time; provided, however, that (A) no change in the Applicable
Margin shall be effective until three Business Days after the date on which
the Administrative Agent received the financial statements required to be
delivered pursuant to Section 5.03(b) or (c), as the case may be, and a
certificate of the Chief Financial Officer of the Borrower demonstrating
such Leverage Ratio and (B) the Applicable Margin shall be at Level IX for
so long as the Borrower has not submitted to the Administrative Agent the
information described in clause (A) of this proviso as and when required
under Section 5.03(b) or (c), as the case may be.
"APPLICABLE PERCENTAGE" means (a) during the period from the Effective
Date until the six-month anniversary of the Effective Date, 0.75% per annum
and (b) thereafter, a percentage per annum determined by reference to the
Leverage Ratio as set forth below:
4
--------------------------------------------------------------------------------------------------
LEVERAGE RATIO COMMITMENT FEE
--------------------------------------------------------------------------------------------------
LESS THAN 50% OF THE 50% OR MORE OF THE
REVOLVING CREDIT FACILITY REVOLVING CREDIT FACILITY
IS OUTSTANDING IS OUTSTANDING
--------------------------------------------------------------------------------------------------
Level I 0.625% 0.375%
-------
less than 2.25: 1.0
--------------------------------------------------------------------------------------------------
Level II 0.750% 0.50%
--------
greater than or equal to 2.25: 1.0
--------------------------------------------------------------------------------------------------
The Applicable Percentage shall be determined by reference to the Leverage
Ratio in effect from time to time; provided, however, that (A) no change in
the Applicable Percentage shall be effective until three Business Days
after the date on which the Administrative Agent receives the financial
statements required to be delivered pursuant to Section 5.03(b) or (c), as
the case may be, and a certificate of the Chief Financial Officer of the
Borrower demonstrating such Leverage Ratio and (B) the Applicable
Percentage shall be at Level II for so long as the Borrower has not
submitted to the Administrative Agent the information described in clause
(A) of this proviso as and when required under Section 5.03(b) or (c), as
the case may be.
"APPROPRIATE LENDER" means, at any time, with respect to (a) any of
the Term Loan Facilities or the Revolving Credit Facility, a Lender that
has a Commitment with respect to such Facility at such time and (b) the
Letter of Credit Facility, (i) the Issuing Bank and (ii) if the other
Revolving Credit Lenders have made Letter of Credit Advances pursuant to
Section 2.03(c) that are outstanding at such time, each such other
Revolving Credit Lender.
"ASSIGNMENT AND ACCEPTANCE" means an assignment and acceptance entered
into by a Lender and an Eligible Assignee, and accepted by the
Administrative Agent, in accordance with Section 9.07 and in substantially
the form of Exhibit C hereto.
"ASSUMING LENDER" has the meaning specified in Section 2.17(d).
"ASSUMPTION AGREEMENT" has the meaning specified in Section 2.17(d).
"AVAILABLE AMOUNT" of any Letter of Credit means, at any time, the
maximum amount available to be drawn under such Letter of Credit at such
time (assuming compliance at such time with all conditions to drawing).
"BANKRUPTCY LAW" means any proceeding of the type referred to in
Section 6.01(f) or Title 11, U.S. Code, or any similar foreign, federal or
state law for the relief of debtors.
"BASE RATE" means a fluctuating interest rate per annum in effect from
time to time, which rate per annum shall at all times be equal to the
higher of:
(a) the rate of interest announced publicly by Citibank, N.A. in
New York, New York, from time to time, as Citibank, N.A.'s base rate;
and
(b) 1/2 of 1% per annum above the Federal Funds Rate.
"BASE RATE ADVANCE" means an Advance that bears interest as
provided in Section 2.07(a)(i).
"BORROWER" has the meaning specified in the recital of parties to this
Agreement.
5
"BORROWER'S ACCOUNT" means the account of the Borrower as the Borrower
shall specify in writing to the Administrative Agent.
"BORROWING" means a borrowing consisting of simultaneous Advances
under the same Facility of the same Type made by the Appropriate Lenders.
"BUSINESS DAY" means a day of the year on which banks are not required
or authorized by law to close in New York City and, if the applicable
Business Day relates to any Eurodollar Rate Advances, on which dealings
are carried on in the London interbank market.
"CAPITAL EXPENDITURES" means, for any Person for any period, the sum
of, without duplication, (a) all expenditures made, directly or
indirectly, by such Person or any of its Restricted Subsidiaries during
such period for equipment, fixed assets, real property or improvements, or
for replacements or substitutions therefor or additions thereto, that have
been or should be, in accordance with GAAP, reflected as additions to
property, plant or equipment on a Consolidated balance sheet of such
Person or have a useful life of more than one year plus (b) the aggregate
principal amount of all Debt (including Obligations under Capitalized
Leases) assumed or incurred in connection with any such expenditures. For
purposes of this definition, the purchase price of equipment that is
purchased simultaneously with the trade-in of existing equipment or with
insurance proceeds shall be included in Capital Expenditures only to the
extent of the gross amount of such purchase price less the credit granted
by the seller of such equipment for the equipment being traded in at such
time or the amount of such proceeds, as the case may be.
"CAPITALIZED LEASES" means all leases that have been or should be, in
accordance with GAAP, recorded as capitalized leases.
"CASH EQUIVALENTS" means any of the following, to the extent owned by
the Borrower or any of its Restricted Subsidiaries free and clear of all
Liens other than Liens created under the Collateral Documents and having a
maturity of not greater than 180 days from the date of acquisition
thereof: (a) readily marketable direct obligations of the Government of
the United States or any agency or instrumentality thereof or obligations
unconditionally guaranteed by the full faith and credit of the Government
of the United States, (b) insured certificates of deposit of or time
deposits with any commercial bank that is a Lender or a member of the
Federal Reserve System, issues (or the parent of which issues) commercial
paper rated as described in clause (c) below, is organized under the laws
of the United States or any State thereof and has combined capital and
surplus of at least $1 billion or (c) commercial paper in an aggregate
amount of no more than $5 million per issuer outstanding at any time,
issued by any corporation organized under the laws of any State of the
United States and rated at least "Prime-1" (or the then equivalent grade)
by Xxxxx'x or "A-1" (or the then equivalent grade) by S&P.
"CERCLA" means the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended from time to time.
"CERCLIS" means the Comprehensive Environmental Response, Compensation
and Liability Information System maintained by the U.S. Environmental
Protection Agency.
"CFC" means an entity that is a controlled foreign corporation as
defined in Section 957 of the Internal Revenue Code.
"CHANGE OF CONTROL" means the occurrence of any of the following: (a)
any Person or two or more Persons acting in concert, other than Softbank,
shall have acquired beneficial ownership (within the meaning of Rule 13d-3
of the Securities and Exchange Commission under
6
the Securities Exchange Act of 1934), directly or indirectly, of Voting
Interests of the Borrower (or other securities convertible into such Voting
Interests) representing 30% or more of the combined voting power of all
Voting Interests of the Borrower; or (b) during any period of up to 24
consecutive months, commencing before or after the date of this Agreement,
individuals who at the beginning of such 24-month period were directors of
the Borrower (together with any new directors whose election by such board
of directors was approved by a majority of the directors then still in
office who were entitled to vote to elect such new directors and were
either directors at the beginning of such period or Persons whose election
as directors was previously so approved) shall cease for any reason to
constitute a majority of the board of directors of the Borrower; or (c) any
Person or two or more Persons acting in concert, other than Softbank, shall
have acquired by contract or otherwise that, upon consummation, will result
in its or their acquisition of power to exercise, directly or indirectly, a
controlling influence over the management or control over Voting Interests
of the Borrower (or other securities convertible into such Voting
Interests) representing 30% or more of the combined voting power of all
Voting Interests of the Borrower.
"COLLATERAL" means all "Collateral" referred to in the Collateral
Documents and all other property that is or is intended to be subject to
any Lien in favor of the Collateral Agent for the benefit of the Secured
Parties.
"COLLATERAL AGENT" has the meaning specified in the recital of parties
to this Agreement.
"COLLATERAL DOCUMENTS" means the Security Agreement, the Mortgages (if
any) executed after the date of this Agreement and any other agreement
that creates or purports to create a Lien in favor of the Collateral Agent
for the benefit of the Secured Parties.
"COMDEX/FALL TRADE SHOW" means each "COMDEX/Fall tradeshow", as more
particularly described in Amendment No. 4 to the Borrower's Form S 1 filed
with the Securities and Exchange Commission on August 8, 2000.
"COMMITMENT" means a commitment under a Term Loan Facility, a
Revolving Credit Commitment or a Letter of Credit Commitment, as
applicable.
"COMMITMENT DATE" has the meaning specified in Section 2.17(b).
"COMMITMENT INCREASE" has the meaning specified in Section 2.17(a).
"CONFIDENTIAL INFORMATION" means information that any Loan Party
furnishes to any Agent or any Lender Party on a confidential basis, but
does not include any such information that is or becomes generally
available to the public other than as a result of a breach by such Agent
or any Lender Party of its obligations hereunder or that is or becomes
available to such Agent or such Lender Party from a source other than the
Loan Parties that is not, to the best of such Agent's or such Lender
Party's knowledge, acting in violation of a confidential agreement with a
Loan Party.
"CONSOLIDATED" refers to the consolidation of accounts in accordance
with GAAP.
"CONSOLIDATED EBITDA" means, for any period, Adjusted Consolidated Net
Income for such period plus, to the extent any of the following amounts
were deducted in calculating such Adjusted Consolidated Net Income:
(1) Consolidated Interest Expense,
(2) income taxes,
7
(3) depreciation expense,
(4) amortization expense,
(5) all other non-cash items reducing Adjusted Consolidated Net
Income (excluding any such non-cash charge to the extent it
represents an accrual of or reserve for cash charges in any
future period), and
(6) any non-capitalized transaction costs incurred in connection with
actual, proposed or abandoned financings, acquisitions or
divestitures;
minus any non-cash items that increased such Adjusted Consolidated Net
Income (excluding any such non-cash item to the extent it represents the
reversal of an accrual or reserve for anticipated cash charges in any
prior period) and plus or minus, any Consolidated EBITDA Adjustments
applicable to such period; provided that, if any tradeshow or event which
represented (positively or negatively) 5% or more of the Consolidated
EBITDA for the prior fiscal year occurs twice in any four quarters for
which Consolidated EBITDA is being calculated, the Consolidated EBITDA
from one of those two occurrences shall be excluded from Consolidated
EBITDA, as determined by an officer of the Borrower. Notwithstanding the
foregoing, if only a portion of the net income of any Restricted
Subsidiary of the Borrower is included in Adjusted Consolidated Net
Income, then only the same portion of the items relating to that
Restricted Subsidiary that are required to be added to or subtracted from
Adjusted Net Income to determine Consolidated EBITDA shall be so added or
subtracted.
"CONSOLIDATED EBITDA ADJUSTMENT" means, with respect to any quarter
included in any four quarters for which Consolidated EBITDA is being
calculated (the "Current Quarter"), the amount of Consolidated EBITDA gain
or loss contributed by any tradeshow or event that was held in the
corresponding quarter in the prior fiscal year which represented
(positively or negatively) 5% or more of the Consolidated EBITDA for such
prior fiscal year and that did not occur during the four quarters for
which Consolidated EBITDA is being calculated but is scheduled to occur in
any of the following three quarters.
"CONSOLIDATED INTEREST EXPENSE" means, for any period, the aggregate
amount of interest in respect of Debt of the Borrower and its Restricted
Subsidiaries during such period determined in accordance with GAAP and
after giving effect to any net payments made or received by them under
Hedge Agreements, including without limitation (whether or not required by
GAAP):
(1) amortization of original issue discount on any Debt,
(2) the interest portion of any deferred payment obligation,
(3) all commissions, discounts and other fees and charges owed with
respect to letters of credit and bankers' acceptance financing,
(4) the net costs of Hedge Agreements,
(5) interest actually paid by the Borrower or any of its Restricted
Subsidiaries under any Guarantee of any Debt of any Person other
than the Borrower or any of its Restricted Subsidiaries, and
(6) the interest component of rental payments in respect of
Capitalized Lease Obligations.
8
Notwithstanding the foregoing:
(A) if only a portion of the net income of any Restricted
Subsidiary of the Borrower is included in Adjusted
Consolidated Net Income, then only the same portion of the
interest expense of the Restricted Subsidiary shall be
included in calculating Consolidated Interest Expense,
(B) any premiums, fees and expenses (and any amortization
thereof) payable in connection with the offering of the
Subordinated Notes shall be excluded from the definition of
Consolidated Interest Expense;
(C) any write-off of financing fees with respect to the Existing
Credit Agreement or any loss on the early retirement of the
Senior Debentures or any similar write-off or loss in
connection with the Refinancing shall be excluded from the
definition of Consolidated Interest Expense.
"CONTINGENT OBLIGATION" means, with respect to any Person, any
Obligation or arrangement of such Person to guarantee or intended to
guarantee any Debt, leases, dividends or other payment Obligations
("PRIMARY OBLIGATIONS") of any other Person (the "PRIMARY OBLIGOR") in any
manner, whether directly or indirectly, including, without limitation, (a)
the direct or indirect guarantee, endorsement (other than for collection
or deposit in the ordinary course of business), co-making, discounting
with recourse or sale with recourse by such Person of the Obligation of a
primary obligor, (b) the Obligation to make take-or-pay or similar
payments, if required, regardless of nonperformance by any other party or
parties to an agreement or (c) 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 (A) for the purchase or payment of any such
primary obligation or (B) 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, assets, 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. 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.
"CONTRACT" means (a) any agreement (whether bilateral or unilateral or
executing or non-executing and whether a Person entitled to rights
thereunder is so entitled directly or as a third-party beneficiary),
including an indenture, lease or license, (b) any deed or other instrument
of conveyance, (c) any certificate of incorporation or charter and (d) any
by-law.
"CONVERSION", "CONVERT" and "CONVERTED" each refer to a conversion of
Advances of one Type into Advances of the other Type pursuant to Section
2.09 or 2.10.
"CURRENT ASSETS" of any Person means all assets of such Person that
would, in accordance with GAAP, be classified as current assets of a
company conducting a business the same as or similar to that of such
Person, after deducting adequate reserves in each case in which a reserve
is proper in accordance with GAAP.
9
"CURRENT LIABILITIES" of any Person means (a) all Debt of such Person
that by its terms is payable on demand or matures within one year after
the date of determination (excluding any Debt renewable or extendible, at
the option of such Person, to a date more than one year from such date or
arising under a revolving credit or similar agreement that obligates the
lender or lenders to extend credit during a period of more than one year
from such date), (b) all amounts of Funded Debt of such Person required to
be paid or prepaid within one year after such date and (c) all other items
(including taxes accrued as estimated) that in accordance with GAAP would
be classified as current liabilities of such Person.
"DEBT" of any Person means, without duplication for purposes of
calculating financial ratios, (a) all indebtedness of such Person for
borrowed money, (b) all Obligations of such Person for the deferred
purchase price of property or services (other than trade payables not
overdue by more than 60 days incurred in the ordinary course of such
Person's business), (c) all Obligations of such Person evidenced by notes,
bonds, debentures or other similar instruments, (d) all Obligations of
such Person created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such Person (even
though the rights and remedies of the seller or lender under such
agreement in the event of default are limited to repossession or sale of
such property), (e) all Obligations of such Person as lessee under
Capitalized Leases, (f) all Obligations of such Person under acceptance,
letter of credit or similar facilities, excluding for the purposes of
Section 6.01(e) only, any Obligations of such Person under or in respect
of Trade Letters of Credit entered into in the ordinary course of business
and which are not overdue by more than 60 days, (g) all payment
Obligations of such Person to purchase, redeem, retire, defease or
otherwise make any payment in respect of any Equity Interests in such
Person or any other Person or any warrants, rights or options to acquire
such capital stock, in each case prior to the Termination Date, valued, in
the case of Redeemable Preferred Interests, at the greater of its
voluntary or involuntary liquidation preference plus accrued and unpaid
dividends, (h) all Obligations of such Person in respect of Hedge
Agreements, valued at the Agreement Value thereof, (i) all Contingent
Obligations of such Person in respect of Debt referred to in clauses (a)
through (h) above or clause (j) below of another Person and (j) all
indebtedness and other payment Obligations referred to in clauses (a)
through (i) above of another Person secured by (or for which the holder of
such Debt has an existing right, contingent or otherwise, to be secured
by) any Lien on property (including, without limitation, accounts and
contract rights) owned by such Person, even though such Person has not
assumed or become liable for the payment of such indebtedness or other
payment Obligations.
"DEBT FOR BORROWED MONEY" of any Person means all items that, in
accordance with GAAP, would be classified as indebtedness on a
Consolidated balance sheet of such Person.
"DEFAULT" means any Event of Default or any event that would
constitute an Event of Default but for the requirement that notice be
given or time elapse or both.
"DEFAULTED ADVANCE" means, with respect to any Lender Party at any
time, the portion of any Advance required to be made by such Lender Party
to the Borrower pursuant to Section 2.01 or 2.02 at or prior to such time
which has not been made by such Lender Party or by the Administrative
Agent for the account of such Lender Party pursuant to Section 2.02(d) as
of such time. In the event that a portion of a Defaulted Advance shall be
deemed made pursuant to Section 2.15(a), the remaining portion of such
Defaulted Advance shall be considered a Defaulted Advance originally
required to be made pursuant to Section 2.01 on the same date as the
Defaulted Advance so deemed made in part.
"DEFAULTED AMOUNT" means, with respect to any Lender Party at any
time, any amount required to be paid by such Lender Party to any Agent or
any other Lender Party hereunder or under any other Loan Document at or
prior to such time which has not been so paid as of such time, including,
without limitation, any amount required to be paid by such
10
Lender Party to (a) the Issuing Bank pursuant to Section 2.03(c) to
purchase a portion of a Letter of Credit Advance made by the Issuing Bank,
(b) the Administrative Agent pursuant to Section 2.02(d) to reimburse the
Administrative Agent for the amount of any Advance made by the
Administrative Agent for the account of such Lender Party, (c) any other
Lender Party pursuant to Section 2.13 to purchase any participation in
Advances owing to such other Lender Party and (d) any Agent or the Issuing
Bank pursuant to Section 8.05 to reimburse such Agent or the Issuing Bank
for such Lender Party's ratable share of any amount required to be paid by
the Lender Parties to such Agent or the Issuing Bank as provided therein.
In the event that a portion of a Defaulted Amount shall be deemed paid
pursuant to Section 2.15(b), the remaining portion of such Defaulted
Amount shall be considered a Defaulted Amount originally required to be
paid hereunder or under any other Loan Document on the same date as the
Defaulted Amount so deemed paid in part.
"DEFAULTING LENDER" means, at any time, any Lender Party that, at such
time, (a) owes a Defaulted Advance or a Defaulted Amount or (b) shall take
any action or be the subject of any action or proceeding of a type
described in Section 6.01(f).
"DISCLOSED LITIGATION" has the meaning specified in Section 3.01(d).
"DOMESTIC LENDING OFFICE" means, with respect to any Lender Party, the
office of such Lender Party specified as its "Domestic Lending Office"
opposite its name on Schedule I hereto or in the Assignment and Acceptance
pursuant to which it became a Lender Party, as the case may be, or such
other office of such Lender Party as such Lender Party may from time to
time specify to the Borrower and the Administrative Agent.
"DOMESTIC SUBSIDIARY" means any Subsidiary other than a Foreign
Subsidiary.
"EFFECTIVE DATE" means the first date on which the conditions set
forth in Article III shall have been satisfied.
"ELIGIBLE ASSIGNEE" means any commercial bank or financial institution
(including, without limitation, any fund that regularly invests in loans
similar to the Term Loan Facilities) as approved (so long as no Event of
Default has occurred and is continuing at the time of the relevant
assignment pursuant to Section 9.07) by the Borrower (such approval not to
be unreasonably withheld); provided, however, that neither any Loan Party
nor any Affiliate of a Loan Party shall qualify as an Eligible Assignee
under this definition.
"ENVIRONMENTAL ACTION" means any action, suit, demand, demand letter,
legal claim, notice of non-compliance or violation, notice of liability or
potential liability, investigation, legal proceeding, consent order or
consent agreement arising under any Environmental Law or any Environmental
Permit or relating to any Hazardous Material or arising from alleged
injury or threat to health and safety as it relates to any Hazardous
Material or the environment, including, without limitation, (a) by any
governmental or regulatory authority for enforcement, cleanup, removal,
response, remedial or other actions or damages and (b) by any governmental
or regulatory authority or third party for damages, contribution,
indemnification, cost recovery, compensation or injunctive relief.
"ENVIRONMENTAL LAW" means any Federal, state, local or foreign
statute, law, ordinance, rule, regulation, code, order, writ, judgment,
injunction, decree or judicial or legally binding agency interpretation,
policy or guidance relating to pollution or protection of the environment,
health and safety as it relates to any Hazardous Material or natural
resources, including, without limitation, those relating to the use,
handling, transportation, treatment, storage, disposal, release or
discharge of Hazardous Materials.
11
"ENVIRONMENTAL PERMIT" means any permit, approval, identification
number, license or other authorization required under any Environmental
Law.
"EQUITY INTERESTS" means, with respect to any Person, shares of
capital stock of (or other ownership or profit interests in) such Person,
warrants, options or other rights for the purchase or other acquisition
from such Person of shares of capital stock of (or other ownership or
profit interests in) such Person, securities convertible into or
exchangeable for shares of capital stock of (or other ownership or profit
interests in) such Person or warrants, rights or options for the purchase
or other acquisition from such Person of such shares (or such other
interests), and other ownership or profit interests in such Person
(including, without limitation, partnership, member or trust interests
therein), whether voting or nonvoting, and whether or not such shares,
warrants, options, rights or other interests are authorized or otherwise
existing on any date of determination.
"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the regulations promulgated and rulings
issued thereunder.
"ERISA AFFILIATE" means any Person that for purposes of Title IV of
ERISA is a member of the controlled group of any Loan Party, or under
common control with any Loan Party, within the meaning of Section 414 of
the Internal Revenue Code.
"ERISA EVENT" means (a) (i) the occurrence of a reportable event,
within the meaning of Section 4043 of ERISA, with respect to any Plan
unless the 30-day notice requirement with respect to such event has been
waived by the PBGC or (ii) the requirements of Section 4043(b) of ERISA
apply with respect to a contributing sponsor, as defined in Section
4001(a)(13) of ERISA, of a Plan, and an event described in paragraph (9),
(10), (12) or (13) of Section 4043(c) of ERISA is reasonably expected to
occur with respect to such Plan within the following 30 days; (b) the
application for a minimum funding waiver with respect to a Plan; (c) the
provision by the administrator of any Plan of a notice of intent to
terminate such Plan, pursuant to Section 4041(a)(2) of ERISA (including
any such notice with respect to a plan amendment referred to in Section
4041(e) of ERISA); (d) the cessation of operation at a facility of any
Loan Party or any ERISA Affiliate in the circumstances described in
Section 4062(e) of ERISA; (e) the withdrawal by any Loan Party or any
ERISA Affiliate from a Multiple Employer Plan during a plan year for which
it was a substantial employer, as defined in Section 4001(a)(2) of ERISA;
(f) the conditions for imposition of a lien under Section 302(f) of ERISA
shall have been met with respect to any Plan; (g) the adoption of an
amendment to a Plan requiring the provision of security to such Plan
pursuant to Section 307 of ERISA; or (h) the institution by the PBGC of
proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the
occurrence of any event or condition described in Section 4042 of ERISA
that constitutes grounds for the termination of, or the appointment of a
trustee to administer, such Plan.
"EUROCURRENCY LIABILITIES" has the meaning specified in Regulation D
of the Board of Governors of the Federal Reserve System, as in effect from
time to time.
"EURODOLLAR LENDING OFFICE" means, with respect to any Lender Party,
the office of such Lender Party specified as its "Eurodollar Lending
Office" opposite its name on Schedule I hereto or in the Assignment and
Acceptance pursuant to which it became a Lender Party (or, if no such
office is specified, its Domestic Lending Office), or such other office of
such Lender Party as such Lender Party may from time to time specify to
the Borrower and the Administrative Agent.
"EURODOLLAR RATE" means, for any Interest Period for all Eurodollar
Rate Advances comprising part of the same Borrowing, an interest rate per
annum equal to the rate per annum (rounded upwards, if necessary, to the
nearest 1/100 of 1%) appearing on Telerate Page 3750 (or any successor
page) as the London interbank offered rate for deposits in U.S. dollars at
11:00
12
A.M. (London time) two Business Days before the first day of such Interest
Period for a period equal to such Interest Period (provided that, if for
any reason such rate is not available, the term "Eurodollar Rate" shall
mean, for any Interest Period for all Eurodollar Rate Advances comprising
part of the same Borrowing, the rate per annum (rounded upwards, if
necessary, to the nearest 1/100 of 1%) appearing on Reuters Screen LIBO
Page as the London interbank offered rate for deposits in Dollars at
approximately 11:00 A.M. (London time) two Business Days prior to the
first day of such Interest Period for a term comparable to such Interest
Period; provided, however, if more than one rate is specified on Reuters
Screen LIBO Page, the applicable rate shall be the arithmetic mean of all
such rates).
"EURODOLLAR RATE ADVANCE" means an Advance that bears interest as
provided in Section 2.07(a)(ii).
"EVENTS OF DEFAULT" has the meaning specified in Section 6.01.
"EXCESS CASH FLOW" means, for any period,
(a) the sum of:
(i) Consolidated net income (or loss) of the Borrower and
its Restricted Subsidiaries for such period plus
(ii) the aggregate amount of all non-cash charges deducted
in arriving at such Consolidated net income (or loss) less
(b) the sum of:
(i) the aggregate amount of all non-cash credits included in
arriving at such Consolidated net income (or loss) plus
(ii) the aggregate amount of Capital Expenditures of the
Borrower and its Restricted Subsidiaries paid in cash during such
period to the extent permitted by this Agreement plus
(iii) the aggregate amount of all regularly scheduled
principal payments of Funded Debt made during such period.
"EXISTING CREDIT AGREEMENT" has the meaning specified in the
Preliminary Statements.
"EXISTING DEBT" means Debt of the Borrower and its Subsidiaries
outstanding immediately before the Initial Extension of Credit.
"EXTRAORDINARY RECEIPT" means any cash received by or paid to or for
the account of any Person not in the ordinary course of business,
including, without limitation, tax refunds, pension plan reversions,
proceeds of insurance (including, without limitation, any key man life
insurance but excluding proceeds of business interruption insurance to the
extent such proceeds constitute compensation for lost earnings),
condemnation awards (and payments in lieu thereof), indemnity payments and
any purchase price adjustment received in connection with any purchase
agreement; provided, however, that an Extraordinary Receipt shall not
include cash receipts received from proceeds of insurance, condemnation
awards (or payments in lieu thereof) or indemnity payments to the extent
that such proceeds, awards or payments (A) in respect of loss or damage to
equipment, fixed assets or real property are applied (or in respect of
which expenditures were previously incurred) to replace or repair the
equipment, fixed assets or real property in respect of which such proceeds
were received in accordance with the terms of the
13
Loan Documents, so long as such application is made within 6 months after
the occurrence of such damage or loss or (B) are received by any Person in
respect of any third party claim against such Person and applied to pay
(or to reimburse such Person for its prior payment of) such claim and the
costs and expenses of such Person with respect thereto.
"FACILITY" means any of the Term Loan Facilities, the Revolving Credit
Facility or the Letter of Credit Facility, as applicable.
"FEDERAL FUNDS RATE" means, for any period, a fluctuating interest
rate per annum equal for each day during such period to the weighted
average of the rates on overnight Federal funds transactions with members
of the Federal Reserve System arranged by Federal funds brokers, as
published for such day (or, if such day is not a Business Day, for the
next preceding Business Day) by the Federal Reserve Bank of New York, or,
if such rate is not so published for any day that is a Business Day, the
average of the quotations for such day for such transactions received by
the Administrative Agent from three Federal funds brokers of recognized
standing selected by it.
"FEE LETTER" means the fee letter dated June 1, 2001 between the
Borrower and Xxxxxx Xxxxxxx, as amended.
"FISCAL YEAR" means a fiscal year of the Borrower and its Consolidated
Subsidiaries ending on December 31 in any calendar year.
"FOREIGN SUBSIDIARY" means a Subsidiary organized under the laws of a
jurisdiction other than the United States or any State thereof or the
District of Columbia.
"FUNDED DEBT" of any Person means Debt in respect of the Advances, in
the case of the Borrower, and all other Debt of such Person that by its
terms matures more than one year after the date of determination or
matures within one year from such date but is renewable or extendible, at
the option of such Person, to a date more than one year after such date or
arises under a revolving credit or similar agreement that obligates the
lender or lenders to extend credit during a period of more than one year
after such date, including, without limitation, all amounts of Funded Debt
of such Person required to be paid or prepaid within one year after the
date of determination.
"GAAP" has the meaning specified in Section 1.03.
"GUARANTEED OBLIGATIONS" has the meaning specified in Section 7.01.
"GUARANTORS" means the "Guarantors" under the Existing Credit
Agreement and each other Restricted Subsidiary of the Borrower that shall
be required after the date hereof to execute and deliver a guaranty
supplement pursuant to Section 5.01(j)(i).
"GUARANTY" means the guaranty of the Guarantors set forth in Article
VII.
"GUARANTY SUPPLEMENT" has the meaning specified in Section 7.05.
"HAZARDOUS MATERIALS" means petroleum or petroleum products,
by-products or breakdown products, radioactive materials,
asbestos-containing materials, polychlorinated biphenyls, radon, gas or
any other chemicals, materials or substances designated, classified or
regulated as hazardous or toxic or as a pollutant or contaminant under any
Environmental Law.
"HEDGE AGREEMENTS" means interest rate swap, cap or collar agreements,
interest rate future or option contracts, currency swap agreements,
currency future or option contracts and other hedging agreements.
14
"HEDGE BANK" means any Lender Party or an Affiliate of a Lender Party
in its capacity as a party to a Secured Hedge Agreement.
"IMMATERIAL RESTRICTED SUBSIDIARY" at any time means a Restricted
Subsidiary that has, individually or in combination with any other
Immaterial Restricted Subsidiary:
(a) assets in an amount equal to less than 5% of the amount of
total Consolidated assets of the Borrower and its Restricted
Subsidiaries, determined as of the last day of the most recent fiscal
quarter of the Borrower at such time; or
(b) Consolidated EBITDA in an amount equal to less than 5% of the
amount of total Consolidated EBITDA of the Borrower and its Restricted
Subsidiaries for the 12-month period ending on the last day of the
most recent fiscal quarter of the Borrower at such time.
"INCREASE DATE" has the meaning specified in Section 2.17(a).
"INCREASING LENDER" has the meaning specified in Section 2.17(b).
"INDEMNIFIED PARTY" has the meaning specified in Section 9.04(b).
"INFORMATION MEMORANDUM" means the information memorandum dated June
2001 used by the Lead Arranger in connection with the syndication of the
Commitments.
"INITIAL EXTENSION OF CREDIT" means the earlier to occur of the
initial Borrowing and the initial issuance of a Letter of Credit
hereunder.
"INITIAL ISSUING BANK" has the meaning specified in the recital of
parties to this Agreement.
"INITIAL LENDERS" has the meaning specified in the recital of parties
to this Agreement.
"INITIAL LENDER PARTIES" has the meaning specified in the recital of
parties to this Agreement.
"INSUFFICIENCY" means, with respect to any Plan, the amount, if any,
of its unfunded benefit liabilities, as defined in Section 4001(a)(18) of
ERISA.
"INTEREST COVERAGE RATIO" means, at any date of determination, the
ratio of (a) Consolidated EBITDA to (b) interest payable on, and
amortization of debt discount in respect of, all Debt for Borrowed Money,
in each case, of or by the Borrower and its Restricted Subsidiaries during
the four consecutive fiscal quarters most recently ended for which
financial statements are required to be delivered to the Lenders pursuant
to Section 5.03(b) or (c), as the case may be (whether or not such
financial statements are delivered); provided, however, that clause (b)
shall be calculated after giving effect on a pro forma basis to the
Advances as if such Advances had been incurred on the first day of such
four fiscal quarter period.
"INTEREST PERIOD" means, for each Eurodollar Rate Advance comprising
part of the same Borrowing, the period commencing on the date of such
Eurodollar Rate Advance or the date of the Conversion of any Base Rate
Advance into such Eurodollar Rate Advance, and ending on the last day of
the period selected by the Borrower pursuant to the provisions below and,
thereafter, each subsequent period commencing on the last day of the
immediately preceding Interest Period and ending on the last day of the
period selected by the Borrower pursuant to the provisions below. The
duration of each such Interest Period shall be one, two, three or six
months, as the
15
Borrower may, upon notice received by the Administrative Agent not later
than 11:00 A.M. (New York City time) on the third Business Day prior to
the first day of such Interest Period, select; provided, however, that:
(a) the Borrower may not select any Interest Period with respect
to any Eurodollar Rate Advance under a Facility that ends after any
principal repayment installment date for such Facility unless, after
giving effect to such selection, the aggregate principal amount of
Base Rate Advances and of Eurodollar Rate Advances having Interest
Periods that end on or prior to such principal repayment installment
date for such Facility shall be at least equal to the aggregate
principal amount of Advances under such Facility due and payable on or
prior to such date;
(b) Interest Periods commencing on the same date for Eurodollar
Rate Advances comprising part of the same Borrowing shall be of the
same duration;
(c) whenever the last day of any Interest Period would otherwise
occur on a day other than a Business Day, the last day of such
Interest Period shall be extended to occur on the next succeeding
Business Day, provided, however, that, if such extension would cause
the last day of such Interest Period to occur in the next following
calendar month, the last day of such Interest Period shall occur on
the next preceding Business Day; and
(d) whenever the first day of any Interest Period occurs on a day
of an initial calendar month for which there is no numerically
corresponding day in the calendar month that succeeds such initial
calendar month by the number of months equal to the number of months
in such Interest Period, such Interest Period shall end on the last
Business Day of such succeeding calendar month.
"INTERNAL REVENUE CODE" means the Internal Revenue Code of 1986, as
amended from time to time, and the regulations promulgated and rulings
issued thereunder.
"INVESTMENT" in any Person means any loan or advance to such Person,
any purchase or other acquisition of any Equity Interests or Debt or the
assets comprising a division or business unit or a substantial part or all
of the business of such Person, any capital contribution to such Person or
any other direct or indirect investment in such Person, including, without
limitation, any acquisition by way of a merger or consolidation and any
arrangement pursuant to which the investor incurs Debt of the types
referred to in clause (i) or (j) of the definition of "DEBT" in respect of
such Person.
"ISSUING BANK" means the Initial Issuing Bank and any Eligible
Assignee to which the Letter of Credit Commitment hereunder has been
assigned pursuant to Section 9.07 so long as such Eligible Assignee
expressly agrees to perform in accordance with their terms all of the
obligations that by the terms of this Agreement are required to be
performed by it as the Issuing Bank and notifies the Administrative Agent
of its Applicable Lending Office and the amount of its Letter of Credit
Commitment (which information shall be recorded by the Administrative
Agent in the Register), for so long as such Initial Issuing Bank or
Eligible Assignee, as the case may be, shall have a Letter of Credit
Commitment.
"KEY3MEDIA EVENTS" has the meaning specified in the Preliminary
Statements.
"L/C COLLATERAL ACCOUNT" has the meaning specified in the Security
Agreement.
"L/C RELATED DOCUMENTS" has the meaning specified in Section
2.04(d)(ii)(A).
16
"LENDER PARTY" means any Lender or the Issuing Bank or any Assuming
Lender.
"LENDERS" means the Initial Lenders and each Person that shall become
a Lender hereunder pursuant to Section 9.07 for so long as such Initial
Lender or Person, as the case may be, shall be a party to this Agreement.
"LETTER OF CREDIT" means a Standby Letter of Credit or a Trade Letter
of Credit.
"LETTER OF CREDIT ADVANCE" means an advance made by the Issuing Bank
or any Revolving Credit Lender pursuant to Section 2.03(c).
"LETTER OF CREDIT AGREEMENT" has the meaning specified in Section
2.03(a).
"LETTER OF CREDIT COMMITMENT" means, with respect to the Issuing Bank
at any time, the amount set forth opposite the Issuing Bank's name on
Schedule I hereto under the caption "Letter of Credit Commitment" or, if
the Issuing Bank has entered into an Assignment and Acceptance, set forth
for the Issuing Bank in the Register maintained by the Administrative
Agent pursuant to Section 9.07(d) as the Issuing Bank's "Letter of Credit
Commitment", as such amount may be reduced at or prior to such time
pursuant to Section 2.05.
"LETTER OF CREDIT FACILITY" means, at any time, an amount equal to the
Issuing Bank's Letter of Credit Commitment at such time, as such amount
may be reduced at or prior to such time pursuant to Section 2.05.
"LEVERAGE RATIO" means, at any date of determination, the ratio of
Consolidated Debt for Borrowed Money of the Borrower and its Restricted
Subsidiaries as at the end of the most recently ended fiscal quarter of
the Borrower for which financial statements are required to be delivered
to the Lender Parties pursuant to Section 5.03(b) or (c) (whether or not
such financial statements have been delivered to the Lender Parties), as
the case may be, to Consolidated EBITDA of the Borrower and its Restricted
Subsidiaries for the four fiscal quarter period ended at the end of such
fiscal quarter.
"LIEN" means any lien, security interest or other charge or
encumbrance of any kind, or any other type of preferential arrangement,
including, without limitation, the lien or retained security title of a
conditional vendor and any easement, right of way or other encumbrance on
title to real property.
"LOAN DOCUMENTS" means (i) this Agreement, (ii) the Notes, (iii) the
Guaranty, (iv) the Collateral Documents, (v) the Fee Letter, (vi) each
Letter of Credit Agreement and (vii) each Secured Hedge Agreement, in each
case as amended.
"LOAN PARTIES" means the Borrower and the Guarantors.
"MARGIN STOCK" has the meaning specified in Regulation U.
"MATERIAL ADVERSE CHANGE" means any material adverse change in the
business, financial condition, operations, performance or properties of
the Borrower and its Subsidiaries, taken as a whole.
"MATERIAL ADVERSE EFFECT" means (a) a material adverse effect on the
business, financial condition, operations, performance or properties of
the Borrower and its Subsidiaries, taken as a whole, (b) a material
adverse effect on the rights and remedies of any Agent or any Lender under
the Loan Documents, or (c) a material adverse effect on the ability of the
Loan Parties to perform their respective Obligations under the Loan
Documents.
17
"MOODY'S" means Xxxxx'x Investors Service, Inc.
"XXXXXX XXXXXXX" has the meaning specified in the recital of parties
to this Agreement.
"MORTGAGE" means any deed of trust, trust deed, mortgage, leasehold
mortgage or leasehold deed of trust, in form and substance satisfactory to
the Administrative Agent, required to be executed by a Loan Party pursuant
to Section 5.01(j)(iii).
"MS&CO." has the meaning specified in the recital of parties to this
Agreement.
"MULTIEMPLOYER PLAN" means a multiemployer plan, as defined in Section
4001(a)(3) of ERISA, to which any Loan Party or any ERISA Affiliate is
making or accruing an obligation to make contributions, or has within any
of the preceding five plan years made or accrued an obligation to make
contributions.
"MULTIPLE EMPLOYER PLAN" means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any
Loan Party or any ERISA Affiliate and at least one Person other than the
Loan Parties and the ERISA Affiliates or (b) was so maintained and in
respect of which any Loan Party or any ERISA Affiliate could have
liability under Section 4064 or 4069 of ERISA in the event such plan has
been or were to be terminated.
"NET CASH PROCEEDS" means, with respect to any sale, lease, transfer
or other disposition of any asset or the incurrence or issuance of any
Debt (other than any Debt incurred in the ordinary course of business) or
the sale or issuance of any Equity Interests (including, without
limitation, any capital contribution) by any Person, or any Extraordinary
Receipt received by or paid to or for the account of any Person, the
aggregate amount of cash received from time to time (whether as initial
consideration or through payment or disposition of deferred consideration)
by or on behalf of such Person in connection with such transaction after
deducting therefrom only (without duplication) (a) reasonable and
customary brokerage commissions, underwriting fees and discounts, legal
fees, finder's fees and other similar fees and commissions and (b) the
amount of taxes payable in connection with or as a result of such
transaction, in each case to the extent, but only to the extent, that the
amounts so deducted are, at the time of receipt of such cash, actually
paid to a Person that is not an Affiliate of such Person or any Loan Party
or any Affiliate of any Loan Party and are properly attributable to such
transaction or to the asset that is the subject thereof; provided,
however, that in the case of taxes that are deductible under clause (b)
above but for the fact that, at the time of receipt of such cash, such
taxes have not been actually paid or are not then payable by a Loan Party
or a Subsidiary of a Loan Party, such Loan Party or such Subsidiary may
deduct an amount (the "RESERVED AMOUNT") equal to the amount reserved in
accordance with GAAP for such Loan Party's or such Subsidiary's reasonable
estimate of such taxes, other than taxes for which such Loan Party or such
Subsidiary is indemnified; provided further that, at the time such taxes
are paid, an amount equal to the amount, if any, by which the Reserved
Amount for such taxes exceeds the amount of such taxes actually paid shall
constitute "Net Cash Proceeds" of the type for which such taxes were
reserved for all purposes hereunder; provided further that Net Cash
Proceeds shall not include any such cash receipts arising from any sale,
lease, transfer or other disposition of any asset or any Extraordinary
Receipt to the extent such cash receipts are reinvested in the business of
the Borrower and its Subsidiaries within 6 months following the date of
receipt.
"NOTE" means a promissory note of the Borrower payable to the order of
any Lender, in substantially the form of Exhibit A hereto, evidencing the
aggregate indebtedness of the Borrower to such Lender resulting from the
Advances made by such Lender, as amended.
"NOTICE OF BORROWING" has the meaning specified in Section 2.02(a).
18
"NOTICE OF ISSUANCE" has the meaning specified in Section 2.03(a).
"NOTICE OF RENEWAL" has the meaning specified in Section 2.01(d).
"NOTICE OF TERMINATION" has the meaning specified in Section 2.01(d).
"NPL" means the National Priorities List under CERCLA.
"OBLIGATION" means, with respect to any Person, any payment,
performance or other obligation of such Person of any kind, including,
without limitation, any liability of such Person on any claim, whether or
not the right of any creditor to payment in respect of such claim is
reduced to judgment, liquidated, unliquidated, fixed, contingent, matured,
undisputed, legal, equitable, secured or unsecured, or, for the purposes
of any such claim relating to any Loan Document, disputed, and whether or
not such claim is discharged, stayed or otherwise affected by any
proceeding referred to in Section 6.01(f). Without limiting the generality
of the foregoing, the Obligations of any Loan Party under the Loan
Documents include (a) the obligation to pay principal, interest, Letter of
Credit commissions, charges, expenses, fees, attorneys' fees and
disbursements, indemnities and other amounts payable by such Loan Party
under any Loan Document and (b) the obligation of such Loan Party to
reimburse any amount in respect of any of the foregoing that any Lender
Party, in its sole discretion, may elect to pay or advance on behalf of
such Loan Party in accordance with the terms of the Loan Documents.
"OECD" means the Organization for Economic Cooperation and
Development.
"OPEN YEAR" has the meaning specified in Section 4.01(r)(iii).
"OTHER TAXES" has the meaning specified in Section 2.11(b).
"PBGC" means the Pension Benefit Guaranty Corporation (or any
successor).
"PERMITTED ENCUMBRANCES" has the meaning specified in the Mortgages.
"PERMITTED LIENS" means such of the following as to which no
enforcement, collection, execution, levy or foreclosure proceeding shall
have been commenced: (a) Liens for taxes, assessments and governmental
charges or levies to the extent not required to be paid under Section
5.01(b); (b) Liens imposed by law, such as materialmen's, mechanics',
carriers', workmen's and repairmen's Liens and other similar Liens arising
in the ordinary course of business securing obligations that (i) are not
overdue for a period of more than 30 days and (ii) individually or
together with all other Permitted Liens outstanding on any date of
determination do not materially adversely affect the use of the property
to which they relate; (c) pledges or deposits to secure obligations under
workers' compensation laws or similar legislation or to secure public or
statutory obligations; and (d) easements, rights of way and other
encumbrances on title to real property that do not render title to the
property encumbered thereby unmarketable or materially adversely affect
the use of such property for its present purpose.
"PERSON" means an individual, partnership, corporation (including a
business trust), limited liability company, joint stock company, trust,
unincorporated association, joint venture or other entity, or a government
or any political subdivision or agency thereof.
"PLAN" means a Single Employer Plan or a Multiple Employer Plan.
"PLEDGED DEBT" has the meaning specified in the Security Agreement.
"POST-PETITION INTEREST" has the meaning specified in Section 7.06.
19
"PREFERRED INTERESTS" means, with respect to any Person, Equity
Interests issued by such Person that are entitled to a preference or
priority over any other Equity Interests issued by such Person upon any
distribution of such Person's property and assets, whether by dividend or
upon liquidation.
"PRO RATA SHARE" of any amount means, with respect to any Lender at
any time, the product of such amount times a fraction the numerator of
which is the amount of such Lender's Revolving Credit Commitment at such
time (or, if the Commitments shall have been terminated pursuant to
Section 2.04 or 6.01, such Lender's Revolving Credit Commitment as in
effect immediately prior to such termination) and the denominator of which
is the Revolving Credit Facility at such time (or, if the Commitments
shall have been terminated pursuant to Section 2.04 or 6.01, the Revolving
Credit Facility as in effect immediately prior to such termination).
"REDEEMABLE" means, with respect to any Equity Interest, any Debt or
any other right or Obligation, any such Equity Interest, Debt, right or
Obligation that (a) the issuer has undertaken to redeem at a fixed or
determinable date or dates, whether by operation of a sinking fund or
otherwise, or upon the occurrence of a condition not solely within the
control of the issuer or (b) is redeemable at the option of the holder.
"REDUCTION AMOUNT" has the meaning specified in Section 2.06(b)(vi).
"REFINANCING" has the meaning specified in the Preliminary Statements.
"REFINANCING DOCUMENTS" means the documents effecting the Refinancing
and the issuance of the Subordinated Notes.
"REGISTER" has the meaning specified in Section 9.07(d).
"REGULATION U" means Regulation U of the Board of Governors of the
Federal Reserve System, as in effect from time to time.
"REQUIRED LENDERS" means, at any time, Lenders owed or holding at
least a majority in interest of the sum of (a) the aggregate principal
amount of the Advances outstanding at such time, (b) the aggregate
Available Amount of all Letters of Credit outstanding at such time, and
(c) the aggregate Unused Revolving Credit Commitments at such time;
provided, however, that if any Lender shall be a Defaulting Lender at such
time, there shall be excluded from the determination of Required Lenders
at such time (A) the aggregate principal amount of the Advances owing to
such Lender (in its capacity as a Lender) and outstanding at such time,
(B) such Lender's Pro Rata Share of the aggregate Available Amount of all
Letters of Credit outstanding at such time, and (C) the Unused Revolving
Credit Commitment of such Lender at such time. For purposes of this
definition, the aggregate principal amount of Letter of Credit Advances
owing to any Issuing Bank and the Available Amount of each Letter of
Credit shall be considered to be owed to the Revolving Credit Lenders
ratably in accordance with their respective Revolving Credit Commitments.
"RESPONSIBLE OFFICER" means the Chairman, President, Chief Financial
Officer or General Counsel of any Loan Party or any of its Subsidiaries.
"RESTRICTED SUBSIDIARY" means any Subsidiary of the Borrower other
than a Subsidiary that is an Unrestricted Subsidiary.
"REVOLVING CREDIT ADVANCE" has the meaning specified in Section
2.01(c).
20
"REVOLVING CREDIT COMMITMENT" means, with respect to any Revolving
Credit Lender at any time, the amount set forth opposite such Lender's
name on Schedule I hereto under the caption "Revolving Credit Commitment"
or, if such Lender has entered into one or more Assignment and
Acceptances, set forth for such Lender in the Register maintained by the
Administrative Agent pursuant to Section 9.07(d) as such Lender's
"Revolving Credit Commitment", as such amount may be reduced at or prior
to such time pursuant to Section 2.05.
"REVOLVING CREDIT FACILITY" means, at any time, the aggregate amount
of the Revolving Credit Lenders' Revolving Credit Commitments at such
time.
"REVOLVING CREDIT LENDER" means any Lender that has a Revolving Credit
Commitment.
"S&P" means Standard & Poors Ratings Services, a division of the
XxXxxx-Xxxx Companies, Inc.
"SECURED HEDGE AGREEMENT" means any Hedge Agreement required or
permitted under Article V that is entered into by and between the Borrower
and any Hedge Bank.
"SECURED OBLIGATIONS" has the meaning specified in Section 2 of the
Security Agreement.
"SECURED PARTIES" means the Agents, the Lender Parties and the Hedge
Banks.
"SECURITY AGREEMENT" has the meaning specified in Section 3.01(a)(ii).
"SECURITY AGREEMENT SUPPLEMENT" has the meaning specified in the
Security Agreement.
"SENIOR BANK FINANCING" has the meaning specified in the Preliminary
Statements.
"SENIOR DEBENTURES" has the meaning specified in the Preliminary
Statements.
"SENIOR DEBT FOR BORROWED MONEY" means, at any date of determination,
the sum of the Advances outstanding on such date and any other Debt for
Borrowed Money that is not Subordinated Debt.
"SENIOR LEVERAGE RATIO" means, at any date of determination, the ratio
of Consolidated Senior Debt for Borrowed Money of the Borrower and its
Restricted Subsidiaries as at the end of the most recently ended fiscal
quarter of the Borrower for which financial statements are required to be
delivered to the Lender Parties pursuant to Section 5.03(b) or (c)
(whether or not such financial statements have been delivered to the
Lender Parties), as the case may be, to Consolidated EBITDA of the
Borrower and its Restricted Subsidiaries for the four fiscal quarter
period ended at the end of such fiscal quarter.
"SINGLE EMPLOYER PLAN" means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any
Loan Party or any ERISA Affiliate and no Person other than the Loan
Parties and the ERISA Affiliates or (b) was so maintained and in respect
of which any Loan Party or any ERISA Affiliate could have liability under
Section 4069 of ERISA in the event such plan has been or were to be
terminated.
"SOFTBANK" means Softbank Corp., a corporation incorporated in Japan,
and its Affiliates (other than any Loan Party).
"SOLVENT" and "SOLVENCY" mean, with respect to any Person on a
particular date, that on such date (a) the fair value of the property of
such Person is greater than the total amount of liabilities, including,
without limitation, contingent liabilities, of such Person, (b) the
present fair
21
saleable value of the assets of such Person is not less than the amount
that will be required to pay the probable liability of such Person on its
debts as they become absolute and matured, (c) such Person does not intend
to, and does not believe that it will, incur debts or liabilities beyond
such Person's ability to pay such debts and liabilities as they mature and
(d) such Person is not engaged in business or a transaction, and is not
about to engage in business or a transaction, for which such Person's
property would constitute an unreasonably small capital. The amount of
contingent liabilities at any time shall be computed as the amount that,
in the light of all the facts and circumstances existing at such time,
represents the amount that can reasonably be expected to become an actual
or matured liability.
"STANDBY LETTER OF CREDIT" means a letter of credit issued under the
Letter of Credit Facility (other than a Trade Letter of Credit), in
substantially the form of Exhibit I-1 hereto, with such changes as the
Borrower and the Issuing Bank shall agree.
"SUBORDINATED DEBT" means any Debt of any Loan Party that is
subordinated to the Obligations of such Loan Party under the Loan
Documents on, and that otherwise contains, terms and conditions
satisfactory to the Required Lenders.
"SUBORDINATED DEBT DOCUMENTS" means all agreements, indentures and
instruments pursuant to which Subordinated Debt is issued, in each case as
amended, to the extent permitted under the Loan Documents.
"SUBORDINATED NOTES" has the meaning specified in the Preliminary
Statements.
"SUBORDINATED OBLIGATIONS" has the meaning specified in Section 7.06.
"SUBSIDIARY" of any Person means any corporation, partnership, joint
venture, limited liability company, trust or estate of which (or in which)
more than 50% of (a) the issued and outstanding capital stock having
ordinary voting power to elect a majority of the Board of Directors of
such corporation (irrespective of whether at the time capital stock of any
other class or classes of such corporation shall or might have voting
power upon the occurrence of any contingency), (b) the interest in the
capital or profits of such partnership, joint venture or limited liability
company or (c) the beneficial interest in such trust or estate is at the
time directly or indirectly owned or controlled by such Person, by such
Person and one or more of its other Subsidiaries or by one or more of such
Person's other Subsidiaries.
"SURVIVING DEBT" means Debt of each Loan Party outstanding immediately
before and after giving effect to the Transaction.
"TAXES" has the meaning specified in Section 2.12(a).
"TERM LOAN ADVANCE" means an advance made by a Term Loan Lender
pursuant to the provisions of Section 2.17.
"TERM LOAN FACILITY" has the meaning specified in Section 2.17(a).
"TERM LOAN LENDER" means any Lender that has a Commitment in respect
of a Term Loan Facility.
"TERMINATION DATE" means, in respect of the Revolving Credit Facility
and the Letter of Credit Facility, the earlier of (a) the date of
termination in whole of the Revolving Credit Commitments and the Letter of
Credit Commitments pursuant to Section 2.05 or 6.01 and (b) June 26, 2004;
provided, however, that if the Effective Date shall not have occurred
before July 15, 2001, the Termination Date shall be July 15, 2001.
22
"TRADE LETTER OF CREDIT" means a letter of credit that is issued under
the Letter of Credit Facility, in substantially the form of Exhibit I-2
hereto, with such changes as the Borrower and the Issuing Bank shall
agree, for the benefit of a supplier of equipment to the Borrower or any
of its Subsidiaries to effect payment for such equipment, the conditions
to drawing under which include the presentation to the Issuing Bank that
issued such Letter of Credit of negotiable bills of lading, invoices and
related documents sufficient, in the judgment of such Issuing Bank, to
create a valid and perfected lien on or security interest in such
equipment, bills of lading, invoices and related documents in favor of
such Issuing Bank.
"TRANSACTION" means the Refinancing, the issuance of the Subordinated
Notes and the other transactions contemplated by the Loan Documents.
"TYPE" refers to the distinction between Advances bearing interest at
the Base Rate and Advances bearing interest at the Eurodollar Rate.
"UNUSED REVOLVING CREDIT COMMITMENT" means, with respect to any Lender
at any time, (a) such Lender's Revolving Credit Commitment at such time
minus (b) the sum of (i) the aggregate principal amount of all Revolving
Credit Advances and Letter of Credit Advances made by such Lender (in its
capacity as a Lender) and outstanding at such time plus (ii) such Lender's
Pro Rata Share of (A) the aggregate Available Amount of all Letters of
Credit outstanding at such time and (B) the aggregate principal amount of
all Letter of Credit Advances made by the Issuing Bank pursuant to Section
2.03(c) and outstanding at such time.
"UNRESTRICTED SUBSIDIARY" means (a) any Subsidiary of the Borrower
that at the time of determination shall be designated an Unrestricted
Subsidiary by the Board of Directors of the Borrower in the manner
provided below and (b) any Subsidiary of an Unrestricted Subsidiary. The
Board of Directors of the Borrower may designate any Restricted Subsidiary
(including any newly acquired or newly formed Subsidiary of the Borrower)
to be an Unrestricted Subsidiary unless such Subsidiary owns any Equity
Interests of, or owns or holds any Lien on any property of, the Borrower
or any Restricted Subsidiary. The Board of Directors of the Borrower may
designate any Unrestricted Subsidiary to be a Restricted Subsidiary,
provided that no Event of Default shall have occurred and be continuing at
the time of or after giving effect to such designation.
"VOTING INTERESTS" means shares of capital stock issued by a
corporation, or equivalent Equity Interests in any other Person, the
holders of which are ordinarily, in the absence of contingencies, entitled
to vote for the election of directors (or persons performing similar
functions) of such Person, even if the right so to vote has been suspended
by the happening of such a contingency.
"WELFARE PLAN" means a welfare plan, as defined in Section 3(1) of
ERISA, that is maintained for employees of any Loan Party or in respect of
which any Loan Party could have liability.
"WITHDRAWAL LIABILITY" has the meaning specified in Part I of Subtitle
E of Title IV of ERISA.
SECTION 1.02. Computation of Time Periods; Other Definitional
Provisions. In this Agreement and the other Loan Documents in the computation of
periods of time from a specified date to a later specified date, the word "FROM"
means "from and including" and the words "TO" and "UNTIL" each mean "to but
excluding". References in the Loan Documents to any agreement or contract "AS
AMENDED" shall mean and be a reference to such agreement or contract as amended,
amended and restated, supplemented or otherwise modified from time to time in
accordance with its terms.
23
SECTION 1.03. Accounting Terms. All accounting terms not specifically
defined herein shall be construed in accordance with generally accepted
accounting principles consistent with those applied in the preparation of the
financial statements referred to in Section 4.01(g) ("GAAP").
ARTICLE II
AMOUNTS AND TERMS OF THE ADVANCES AND THE LETTERS OF CREDIT
SECTION 2.01. The Advances and Letters of Credit. (a) The Revolving
Credit Advances. Each Revolving Credit Lender severally agrees, on the terms and
conditions hereinafter set forth, to make advances (each a "REVOLVING CREDIT
ADVANCE") to the Borrower from time to time on any Business Day during the
period from the Effective Date until the Termination Date in an amount for each
such Advance not to exceed such Lender's Unused Revolving Credit Commitment at
such time. Each Revolving Credit Advance shall be in an aggregate amount of
$5,000,000 or an integral multiple of $1,000,000 in excess thereof (other than a
Borrowing the proceeds of which shall be used solely to repay or prepay in full
outstanding Letter of Credit Advances) and shall consist of Revolving Credit
Advances made simultaneously by the Revolving Credit Lenders ratably according
to their Revolving Credit Commitments. Within the limits of each Revolving
Credit Lender's Unused Revolving Credit Commitment in effect from time to time,
the Borrower may borrow under this Section 2.01(a), prepay pursuant to Section
2.06(a) and reborrow under this Section 2.01(a).
(b) Letters of Credit. The Issuing Bank agrees, on the terms and
conditions hereinafter set forth, to issue Letters of Credit for the account of
the Borrower from time to time on any Business Day during the period from the
date hereof until 15 days before the Termination Date in an aggregate Available
Amount (i) for all Letters of Credit issued by such Issuing Bank not to exceed
at any time the Letter of Credit Facility at such time and (ii) for each such
Letter of Credit not to exceed the Unused Revolving Credit Commitments of the
Revolving Credit Lenders at such time. No Letter of Credit shall have an
expiration date (including all rights of the Borrower or the beneficiary to
require renewal) later than the earlier of 15 days before the Termination Date
and (A) in the case of a Standby Letter of Credit, one year after the date of
issuance thereof, but may by its terms be renewable annually upon notice (a
"NOTICE OF RENEWAL") given to the Issuing Bank and the Administrative Agent on
or prior to any date for notice of renewal set forth in such Letter of Credit
but in any event at least three Business Days prior to the date of the proposed
renewal of such Standby Letter of Credit and upon fulfillment of the applicable
conditions set forth in Article III unless the Issuing Bank has notified the
Borrower (with a copy to the Administrative Agent) on or prior to the date for
notice of termination set forth in such Letter of Credit but in any event at
least 30 Business Days prior to the date of automatic renewal of its election
not to renew such Standby Letter of Credit (a "NOTICE OF TERMINATION") and (B)
in the case of a Trade Letter of Credit, 60 days after the date of issuance
thereof; provided that the terms of each Standby Letter of Credit that is
automatically renewable annually shall (x) require the Issuing Bank to give the
beneficiary named in such Standby Letter of Credit notice of any Notice of
Termination, (y) permit such beneficiary, upon receipt of such notice, to draw
under such Standby Letter of Credit prior to the date such Standby Letter of
Credit otherwise would have been automatically renewed and (z) not permit the
expiration date (after giving effect to any renewal) of such Standby Letter of
Credit in any event to be extended to a date later than 15 days before the
Termination Date. If either a Notice or Renewal is not given by the Borrower or
a Notice of Termination is given by the relevant Issuing Bank pursuant to the
immediately preceding sentence, such Standby Letter of Credit shall expire on
the date on which it otherwise would have been automatically renewed; provided,
however, that even in the absence of receipt of a Notice of Renewal, the Issuing
Bank may in its discretion, unless instructed to the contrary by the
Administrative Agent or the Borrower, deem that a Notice of Renewal had been
timely delivered and in such case, a Notice or Renewal shall be deemed to have
been so delivered for all purposes under this Agreement. Within the limits of
the Letter of Credit Facility, and subject to the limits referred to above, the
Borrower may request the issuance of Letters of Credit under this Section
2.01(b), repay any Letter of Credit Advances
24
resulting from drawings thereunder pursuant to Section 2.03(c) and request the
issuance of additional Letters of Credit under this Section 2.01(b).
SECTION 2.02. Making the Advances. (a) Except as otherwise provided in
Section 2.03, each Borrowing shall be made on notice, given not later than 11:00
A.M. (New York City time) on the third Business Day prior to the date of the
proposed Borrowing in the case of a Borrowing consisting of Eurodollar Rate
Advances, or the first Business Day prior to the date of the proposed Borrowing
in the case of a Borrowing consisting of Base Rate Advances, by the Borrower to
the Administrative Agent, which shall give to each Appropriate Lender prompt
notice thereof by telecopier. Each such notice of a Borrowing (a "NOTICE OF
BORROWING") shall be by telephone, confirmed immediately in writing, or
telecopier, in substantially the form of Exhibit B hereto, specifying therein
the requested (i) date of such Borrowing, (ii) Type of Advances comprising such
Borrowing, (iii) aggregate amount of such Borrowing and (iv) in the case of a
Borrowing consisting of Eurodollar Rate Advances, initial Interest Period for
each such Advance. Each Appropriate Lender shall, before 11:00 A.M. (New York
City time) on the date of such Borrowing, make available for the account of its
Applicable Lending Office to the Administrative Agent at the Administrative
Agent's Account, in same day funds, such Lender's ratable portion of such
Borrowing in accordance with the respective Commitments of such Lender and the
other Appropriate Lenders. After the Administrative Agent's receipt of such
funds and upon fulfillment of the applicable conditions set forth in Article
III, the Administrative Agent will make such funds available to the Borrower by
crediting the Borrower's Account; provided, however, that in the case of any
Borrowing under the Revolving Credit Facility, the Administrative Agent shall
first make a portion of such funds equal to the aggregate principal amount of
any Letter of Credit Advances made by Issuing Bank and by any other Revolving
Credit Lender and outstanding on the date of such Borrowing, plus interest
accrued and unpaid thereon to and as of such date, available to the Issuing Bank
and such other Revolving Credit Lender for repayment of such Letter of Credit
Advances.
(b) Anything in subsection (a) above to the contrary notwithstanding,
the Borrower may not select Eurodollar Rate Advances (i) for the initial
Borrowing hereunder, (ii) for any Borrowing if the aggregate amount of such
Borrowing is less than $5,000,000 or (iii) if the obligation of the Appropriate
Lenders to make Eurodollar Rate Advances shall then be suspended pursuant to
Section 2.09 or 2.10; provided, however, that if the syndication under this
Agreement has not been completed on or prior to the Effective Date, then the
Borrower may only select Eurodollar Rate Advances with one month Interest Period
until the earlier of (i) the date which is one month after the Effective Date
and (ii) the date the syndication has been completed as shall be notified by the
Administrative Agent in a notice to the Borrower. In addition, the Revolving
Credit Advances may not be outstanding as part of more than ten separate
Borrowings.
(c) Each Notice of Borrowing shall be irrevocable and binding on the
Borrower. In the case of any Borrowing that the related Notice of Borrowing
specifies is to be comprised of Eurodollar Rate Advances, the Borrower shall
indemnify each Appropriate Lender against any loss, cost or expense incurred by
such Lender as a result of any failure to fulfill on or before the date
specified in such Notice of Borrowing for such Borrowing the applicable
conditions set forth in Article III, including, without limitation, any loss
(excluding loss of anticipated profits), cost or expense incurred by reason of
the liquidation or reemployment of deposits or other funds acquired by such
Lender to fund the Advance to be made by such Lender as part of such Borrowing
when such Advance, as a result of such failure, is not made on such date.
(d) Unless the Administrative Agent shall have received notice from an
Appropriate Lender prior to the date of any Borrowing that such Lender will not
make available to the Administrative Agent such Lender's ratable portion of such
Borrowing, the Administrative Agent may assume that such Lender has made such
portion available to the Administrative Agent on the date of such Borrowing in
accordance with subsection (a) of this Section 2.02 and the Administrative Agent
may, in reliance upon such assumption, make available to the Borrower on such
date a corresponding amount. If and to the
25
extent that such Lender shall not have so made such ratable portion available to
the Administrative Agent, such Lender and the Borrower severally agree to repay
or pay to the Administrative Agent forthwith on demand such corresponding amount
and to pay interest thereon, for each day from the date such amount is made
available to the Borrower until the date such amount is repaid or paid to the
Administrative Agent, at (i) in the case of the Borrower, the interest rate
applicable at such time under Section 2.07 to Advances comprising such Borrowing
and (ii) in the case of such Lender, the Federal Funds Rate. If such Lender
shall pay to the Administrative Agent such corresponding amount, such amount so
paid shall constitute such Lender's Advance as part of such Borrowing for all
purposes.
(e) The failure of any Lender to make the Advance to be made by it as
part of any Borrowing shall not relieve any other Lender of its obligation, if
any, hereunder to make its Advance on the date of such Borrowing, but no Lender
shall be responsible for the failure of any other Lender to make the Advance to
be made by such other Lender on the date of any Borrowing.
SECTION 2.03. Issuance of and Drawings and Reimbursement Under Letters
of Credit. (a) Request for Issuance. Each Letter of Credit shall be issued upon
notice, given not later than 11:00 A.M. (New York City time) on the fifth
Business Day prior to the date of the proposed issuance of such Letter of
Credit, by the Borrower to the Issuing Bank, which shall give to the
Administrative Agent and each Revolving Credit Lender prompt notice thereof by
telecopier. Each such notice of issuance of a Letter of Credit (a "NOTICE OF
ISSUANCE") shall be by telephone, confirmed immediately in writing, or
telecopier, specifying therein the requested (A) date of such issuance (which
shall be a Business Day), (B) Available Amount of such Letter of Credit, (C)
expiration date of such Letter of Credit and (D) name and address of the
beneficiary of such Letter of Credit, and shall be accompanied by such
application and agreement for letter of credit as the Issuing Bank may specify
to the Borrower for use in connection with such requested Letter of Credit (a
"LETTER OF CREDIT AGREEMENT"). The Borrower and Issuing Bank shall negotiate in
good faith to agree any changes to the form of such Letter of Credit set forth
in Exhibit I-1 or I-2, as applicable, hereto. Upon agreement by the Borrower and
the Issuing Bank on the form of such Letter of Credit and provided the Issuing
Bank has not received notice of objection to such issuance from Lenders holding
at least 50% of the Revolving Credit Commitments, the Issuing Bank will, upon
fulfillment of the applicable conditions set forth in Article III, make such
Letter of Credit available to the Borrower at its office referred to in Section
8.02 or as otherwise agreed with the Borrower in connection with such issuance.
In the event and to the extent that the provisions of any Letter of Credit
Agreement shall conflict with this Agreement, the provisions of this Agreement
shall govern.
(b) Letter of Credit Reports. The Issuing Bank shall furnish (A) to the
Administrative Agent on the first Business Day of each week a written report
summarizing issuance and expiration dates of Letters of Credit during the
previous week and drawings during such week under all Letters of Credit, (B) to
each Lender on the first Business Day of each month a written report summarizing
issuance and expiration dates of Letters of Credit and (C) to the Administrative
Agent and each Lender on the first Business Day of each calendar quarter a
written report setting forth the average daily aggregate Available Amount during
the preceding calendar quarter of all Letters of Credit.
(c) Drawings and Reimbursement. The payment by the Issuing Bank of a
draft drawn under any Letter of Credit shall constitute for all purposes of this
Agreement the making by the Issuing Bank of a Letter of Credit Advance, which
shall be a Base Rate Advance, in the amount of such draft. Upon written demand
by the Issuing Bank, with a copy of such demand to the Administrative Agent,
each Revolving Credit Lender shall purchase from the Issuing Bank, and the
Issuing Bank shall sell and assign to each such Revolving Credit Lender, such
Lender's Pro Rata share of such outstanding Letter of Credit Advance as of the
date of such purchase, by making available for the account of its Applicable
Lending Office to the Administrative Agent for the account of the Issuing Bank,
or by deposit to the Administrative Agent's Account, in same day funds, an
amount equal to the portion of the outstanding principal amount of such Letter
of Credit Advance to be purchased by such Lender. Promptly after receiving
thereof, the Administrative Agent shall transfer such funds to the Issuing Bank.
The Borrower
26
hereby agrees to each such sale and assignment. Each Revolving Credit Lender
agrees to purchase its Pro Rata Share of an outstanding Letter of Credit Advance
on (i) the Business Day on which demand therefor is made by the Issuing Bank,
provided that notice of such demand is given not later than 11:00 A.M. (New York
City time) on such Business Day, or (ii) the first Business Day next succeeding
such demand if notice of such demand is given after such time. Upon any such
assignment by the Issuing Bank to any Revolving Credit Lender of a portion of a
Letter of Credit Advance, the Issuing Bank represents and warrants to such other
Lender that the Issuing Bank is the legal and beneficial owner of such interest
being assigned by it, free and clear of any liens, but makes no other
representation or warranty and assumes no responsibility with respect to such
Letter of Credit Advance, the Loan Documents or any Loan Party. If and to the
extent that any Revolving Credit Lender shall not have so made the amount of
such Letter of Credit Advance available to the Administrative Agent, such
Revolving Credit Lender agrees to pay to the Administrative Agent forthwith on
demand such amount together with interest thereon, for each day from the date of
demand by the Issuing Bank until the date such amount is paid to the
Administrative Agent, at the Federal Funds Rate for its account or the account
of the Issuing Bank, as applicable. If such Lender shall pay to the
Administrative Agent such amount for the account of the Issuing Bank on any
Business Day, such amount so paid in respect of principal shall constitute a
Letter of Credit Advance made by such Lender on such Business Day for purposes
of this Agreement, and the outstanding principal amount of the Letter of Credit
Advance made by the Issuing Bank shall be reduced by such amount on such
Business Day.
(d) Failure to Make Letter of Credit Advances. The failure of any
Lender to make the Letter of Credit Advance to be made by it on the date
specified in Section 2.03(c) shall not relieve any other Lender of its
obligation hereunder to make its Letter of Credit Advance on such date, but no
Lender shall be responsible for the failure of any other Lender to make the
Letter of Credit Advance to be made by such other Lender on such date.
SECTION 2.04. Repayment of Advances. (a) Revolving Credit Advances. The
Borrower shall repay to the Administrative Agent for the ratable account of the
Revolving Credit Lenders on the Termination Date the aggregate outstanding
principal amount of the Revolving Credit Advances then outstanding.
(b) Letter of Credit Advances. (i) The Borrower shall repay to the
Administrative Agent for the account of the Issuing Bank and each other
Revolving Credit Lender that has made a Letter of Credit Advance on the earlier
of demand and the Termination Date the outstanding principal amount of each
Letter of Credit Advance made by each of them.
(ii) The Obligations of the Borrower under this Agreement, any Letter
of Credit Agreement and any other agreement or instrument relating to any Letter
of Credit shall be unconditional and irrevocable, and shall be paid strictly in
accordance with the terms of this Agreement, such Letter of Credit Agreement and
such other agreement or instrument under all circumstances, including, without
limitation, the following circumstances (it being understood that any such
payment by the Borrower is without prejudice to, and does not constitute a
waiver of, any rights the Borrower might have or might acquire as a result of
the payment by the Issuing Bank of any draft or the reimbursement by the
Borrower thereof):
(A) any lack of validity or enforceability of any Loan Document,
any Letter of Credit Agreement, any Letter of Credit or any other
agreement or instrument relating thereto (all of the foregoing being,
collectively, the "L/C RELATED DOCUMENTS");
(B) any change in the time, manner or place of payment of, or in
any other term of, all or any of the Obligations of the Borrower in
respect of any L/C Related Document or any other amendment or waiver
or any consent to departure from all or any of the L/C Related
Documents;
27
(C) the existence of any claim, set-off, defense or other right
that the Borrower may have at any time against any beneficiary or any
transferee of a Letter of Credit (or any Persons for whom any such
beneficiary or any such transferee may be acting), the Issuing Bank or
any other Person, whether in connection with the transactions
contemplated by the L/C Related Documents or any unrelated
transaction;
(D) any statement or any other document presented under a 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;
(E) payment by any Issuing Bank under a Letter of Credit against
presentation of a draft or certificate or other document that does not
strictly comply with the terms of such Letter of Credit, except where
such payment results from the gross negligence or willful misconduct
of the Issuing Bank;
(F) any exchange, release or non-perfection of any Collateral or
other collateral, or any release or amendment or waiver of or consent
to departure from the Guaranty or any other guarantee, for all or any
of the Obligations of the Borrower in respect of the L/C Related
Documents; or
(G) any other circumstance or happening whatsoever, whether or
not similar to any of the foregoing, including, without limitation,
any other circumstance that might otherwise constitute a defense
available to, or a discharge of, the Borrower or a guarantor, except
to the extent caused by the gross negligence or willful misconduct of
the Issuing Bank.
SECTION 2.05. Termination or Reduction of the Commitments. (a)
Optional. The Borrower may, upon at least five Business Days' notice to the
Administrative Agent, terminate in whole or reduce in part the Unused Revolving
Credit Commitments; provided, however, that each partial reduction (i) shall be
in an aggregate amount of $5,000,000 or an integral multiple of $1,000,000 in
excess thereof and (ii) shall be made ratably among the Appropriate Lenders in
accordance with their Commitments.
(b) Mandatory. (i) On the date of each repayment or prepayment of the
Term Loan Facilities pursuant to Section 2.06(b)(i)(A) or (B) or Section
2.06(b)(ii), the aggregate Commitments of such Term Loan Facilities shall be
automatically and permanently reduced, on a pro rata basis, by an amount equal
to the amount by which the aggregate Commitments immediately prior to such
reduction exceed the aggregate unpaid principal amount of the advances under the
Term Loan Facilities, then outstanding. To the extent there are no Term Loan
Facilities then outstanding, the Revolving Credit Facility shall be
automatically and permanently reduced on each date on which the prepayment of
Revolving Credit Advances outstanding thereunder is required to be made pursuant
to Section 2.06(b)(i)(A) or (B) by an amount equal to the applicable Reduction
Amount, provided that each such reduction of the Revolving Credit Facility shall
be made ratably among the Revolving Credit Lenders in accordance with their
Revolving Credit Commitments; provided further, however, that notwithstanding
the foregoing and Section 2.06(b)(v), in no event shall the Revolving Credit
Facility be reduced pursuant to this Section 2.05(b)(i) to less than
$50,000,000.
(ii) The Letter of Credit Facility shall be permanently reduced from
time to time on the date of each reduction in the Revolving Credit Facility by
the amount, if any, by which the amount of the Letter of Credit Facility exceeds
the Revolving Credit Facility after giving effect to such reduction of the
Revolving Credit Facility.
SECTION 2.06. Prepayments. (a) Optional. The Borrower may, upon at
least one Business Day's notice in the case of Base Rate Advances and three
Business Days' notice in the case of
28
Eurodollar Rate Advances, in each case to the Administrative Agent stating the
proposed date and aggregate principal amount of the prepayment, and if such
notice is given the Borrower shall, prepay the outstanding aggregate principal
amount of the Advances comprising part of the same Borrowing in whole or ratably
in part, together with accrued interest to the date of such prepayment on the
aggregate principal amount prepaid; provided, however, that (x) each partial
prepayment shall be in an aggregate principal amount of $3,000,000 or an
integral multiple of $500,000 in excess thereof, (y) if any prepayment of a
Eurodollar Rate Advance is made on a date other than the last day of an Interest
Period for such Advance, the Borrower shall also pay any amounts owing pursuant
to Section 9.04(c), and (z) if one or more Term Loan Facilities are outstanding
on such date, any prepayment of a Term Loan Facility shall be applied to each of
the Term Loan Facilities on a pro rata basis.
(b) Mandatory. (i) The Borrower shall, on the date of receipt of the
Net Cash Proceeds by the Borrower or any of its Restricted Subsidiaries from (A)
the sale, lease, transfer or other disposition of any assets of the Borrower or
any of its Restricted Subsidiaries (other than any sale, lease, transfer or
other disposition of assets pursuant to clause (i) of Section 5.02(e) or to the
extent such Net Cash Proceeds are being reinvested in the business of the
Borrower and its Subsidiaries within 6 months from receipt of such Net Cash
Proceeds), (B) the incurrence or issuance by the Borrower or any of its
Restricted Subsidiaries of any Debt (other than any Debt incurred under any Term
Loan Facility pursuant to Section 2.17 or permitted by Section 5.02(b)), and (C)
any Extraordinary Receipt received by or paid to or for the account of the
Borrower or any of its Restricted Subsidiaries and not otherwise included in
clause (A) or (B) above, prepay an aggregate principal amount of the Advances
comprising part of the same Borrowing in an amount equal to the amount of such
Net Cash Proceeds. If one or more Term Loan Facilities are outstanding on such
date, each such prepayment shall be applied ratably to each of the Term Loan
Facilities and the Revolving Credit Facility (as set forth in clause (v) below).
Any such prepayment of a Term Loan Facility shall be applied to the installments
thereof on a pro rata basis.
(ii) The Borrower shall, on the 90th day following the end of each
Fiscal Year, prepay an aggregate principal amount of the Term Loan Advances
comprising part of the same Borrowings in an amount equal to the excess of (A)
50% of Excess Cash Flow over (B) the aggregate principal amount of all optional
prepayments made under the Term Loan Facilities, if any, during such Fiscal Year
under Section 2.06(a), until such time as the Leverage Ratio is less than 2.0:1
and, thereafter, so long as no Default shall have occurred and be continuing, 0%
of Excess Cash Flow. For the purposes of this Section 2.06(b)(ii) only, Excess
Cash Flow for the year ended December 31, 2001 shall be calculated for the
period from the Effective Date through December 31, 2001. If one or more Term
Loan Facilities are outstanding on such date, each such prepayment shall be
applied to each of the Term Loan Facilities on a pro rata basis and to the
installments thereof on a pro rata basis.
(iii) The Borrower shall, on each Business Day, prepay an aggregate
principal amount of the Revolving Credit Advances comprising part of the same
Borrowings and the Letter of Credit Advances and deposit in the L/C Collateral
Account an amount equal to the amount by which (A) the sum of the aggregate
principal amount of (x) the Revolving Credit Advances and (y) the Letter of
Credit Advances then outstanding plus the aggregate Available Amount of all
Letters of Credit then outstanding exceeds (B) the Revolving Credit Facility on
such Business Day.
(iv) The Borrower shall, on each Business Day, pay to the
Administrative Agent for deposit in the L/C Collateral Account an amount
sufficient to cause the aggregate amount on deposit in such Account to equal the
amount by which the aggregate Available Amount of all Letters of Credit then
outstanding exceeds the Letter of Credit Facility on such Business Day.
(v) Prepayments of the Revolving Credit Facility made pursuant to
clause (i) or (iii) above of this Section 2.06 shall be first applied to prepay
Letter of Credit Advances then outstanding until such Advances are paid in full,
second applied to prepay Revolving Credit Advances then outstanding comprising
part of the same Borrowings until such Advances are paid in full and third
deposited in the
29
L/C Collateral Account to cash collateralize 100% of the Available Amount of the
Letters of Credit then outstanding; and in the case of prepayments of the
Revolving Credit Facility required pursuant to clause (i) or (ii) above, the
amount remaining (if any) after the prepayment in full of the Revolving Credit
Advances then outstanding and the 100% cash collateralization of the aggregate
Available Amount of Letters of Credit then outstanding (the sum of such
prepayment amounts, cash collateralization amounts and remaining amount being,
collectively, the "REDUCTION AMOUNT") may be retained by the Borrower and the
Revolving Credit Facility shall be permanently reduced as set forth in Section
2.05(b)(i). Upon the drawing of any Letter of Credit for which funds are on
deposit in the L/C Collateral Account, such funds shall be applied to reimburse
the Issuing Bank or Revolving Credit Lenders, as applicable.
(vi) All prepayments under this subsection (b) shall be made together
with accrued interest to the date of such prepayment on the principal amount
prepaid. If any payment of Eurodollar Rate Advances otherwise required to be
made under this Section 2.06(b) would be made on a day other than the last day
of the applicable Interest Period therefor, the Borrower may direct the
Administrative Agent to (and if so directed the Administrative Agent shall)
deposit such payment in the L/C Collateral Account until the last day of the
applicable Interest Period at which time the Administrative Agent shall apply
the amount of such payment to the prepayment of such Advances; provided,
however, that such Advances shall continue to bear interest as set forth in
Section 2.07 until the last day of the applicable Interest Period therefor.
SECTION 2.07. Interest. (a) Scheduled Interest. The Borrower shall pay
interest on the unpaid principal amount of each Advance owing to each Lender
from the date of such Advance until such principal amount shall be paid in full,
at the following rates per annum:
(i) Base Rate Advances. During such periods as such Advance is a
Base Rate Advance, a rate per annum equal at all times to the sum of
(A) the Base Rate in effect from time to time plus (B) the Applicable
Margin in effect from time to time, payable in arrears quarterly on
the last Business Day of each March, June, September and December
during such periods and on the date such Base Rate Advance shall be
Converted or paid in full.
(ii) Eurodollar Rate Advances. During such periods as such
Advance is a Eurodollar Rate Advance, a rate per annum equal at all
times during each Interest Period for such Advance to the sum of (A)
the Eurodollar Rate for such Interest Period for such Advance plus (B)
the Applicable Margin in effect from time to time, payable in arrears
on the last day of such Interest Period and, if such Interest Period
has a duration of more than three months, on each day that occurs
during such Interest Period every three months from the first day of
such Interest Period and on the date such Eurodollar Rate Advance
shall be Converted or paid in full.
(b) Default Interest. Upon the occurrence and during the continuance of
an Event of Default under Section 6.01(a), the Borrower shall pay interest on
(i) the unpaid principal amount of each Advance owing to each Lender, payable in
arrears on the dates referred to in clause (a)(i) or (a)(ii) above and on
demand, at a rate per annum equal at all times to 2% per annum above the rate
per annum required to be paid on such Advance pursuant to clause (a)(i) or
(a)(ii) above and (ii) to the fullest extent permitted by law, the amount of any
interest, fee or other amount payable under the Loan Documents that is not paid
when due, from the date such amount shall be due until such amount shall be paid
in full, payable in arrears on the date such amount shall be paid in full and on
demand, at a rate per annum equal at all times to 2% per annum above the rate
per annum required to be paid, in the case of interest, on the Type of Advance
on which such interest has accrued pursuant to clause (a)(i) or (a)(ii) above
and, in all other cases, on Base Rate Advances pursuant to clause (a)(i) above.
(c) Notice of Interest Period and Interest Rate. Promptly after receipt
of a Notice of Borrowing pursuant to Section 2.02(a), a notice of Conversion
pursuant to Section 2.09 or a notice of selection of an Interest Period pursuant
to the terms of the definition of "Interest Period", the
30
Administrative Agent shall give notice to the Borrower and each Lender of the
applicable Interest Period and the applicable interest rate determined by the
Administrative Agent for purposes of clause (a)(i) or (a)(ii) above.
SECTION 2.08. Fees. (a) Commitment Fee. With respect to the Revolving
Credit Facility, the Borrower shall pay to the Administrative Agent for the
account of the Lenders a commitment fee, from the date of this Agreement in the
case of each Initial Lender and from the effective date specified in the
Assignment and Acceptance pursuant to which it became a Lender in the case of
each other Lender until the Termination Date, payable quarterly in arrears on
the last day of each March, June, September and December, commencing September
30, 2001, and on the Termination Date, at a rate equal to the Applicable
Percentage then in effect on the average daily Unused Revolving Credit
Commitment of such Lender during such quarter; provided, however, that any
commitment fee accrued with respect to the Revolving Credit Commitment of a
Defaulting Lender during the period prior to the time such Lender became a
Defaulting Lender and unpaid at such time shall not be payable by the Borrower
so long as such Lender shall be a Defaulting Lender except to the extent that
such commitment fee shall otherwise have been due and payable prior to such
time; and provided further that no commitment fee shall accrue on the Revolving
Credit Commitment of a Defaulting Lender so long as such Lender shall be a
Defaulting Lender.
(b) Letter of Credit Fee, Etc. (i) The Borrower shall pay to the
Administrative Agent for the account of each Lender a commission, payable in
arrears quarterly on the last day of each March, June, September and December,
commencing September 30, 2001, and on the earliest to occur of the full drawing,
expiration, termination or cancellation of any Letter of Credit and on the
Termination Date, on such Lender's Pro Rata Share of the actual daily aggregate
Available Amount during such quarter of all Letters of Credit outstanding from
time to time at the rate per annum equal to the Applicable Margin then in effect
for Revolving Credit Advances that are Eurodollar Rate Advances (including
default interest, if any).
(ii) The Borrower shall pay to the Issuing Bank, for its own account,
(A) an issuance fee for each Letter of Credit in an amount equal to 0.25% of the
Available Amount of such Letter of Credit on the date of issuance of such Letter
of Credit, payable on such date and (B) such other commissions, transfer fees
and other fees and charges in connection with the issuance or administration of
each Letter of Credit as the Borrower and the Issuing Bank shall agree.
(c) Agents' Fees. The Borrower shall pay to each Agent for its own
account such fees as may from time to time be agreed between the Borrower and
such Agent.
SECTION 2.09. Conversion of Advances. (a) Optional. The Borrower may on
any Business Day, upon notice given to the Administrative Agent not later than
11:00 A.M. (New York City time) on the third Business Day prior to the date of
the proposed Conversion and subject to the provisions of Sections 2.06 and 2.09,
Convert all or any portion of the Advances of one Type comprising the same
Borrowing into Advances of the other Type; provided, however, that (i) if any
Conversion of Eurodollar Rate Advances into Base Rate Advances shall be made on
a date other than the last day of an Interest Period for such Eurodollar Rate
Advances, the Borrower shall also pay amounts owing pursuant to Section 9.04(c),
(ii) any Conversion of Base Rate Advances into Eurodollar Rate Advances shall be
in an amount not less than the minimum amount specified in Section 2.02(b),
(iii) no Conversion of any Advances shall result in more separate Borrowings
than permitted under Section 2.02(b) and (iv) each Conversion of Advances
comprising part of the same Borrowing shall be made ratably among the Lenders in
accordance with their Commitments. Each such notice of Conversion shall, within
the restrictions specified above, specify (i) the date of such Conversion, (ii)
the Advances to be Converted and (iii) if such Conversion is into Eurodollar
Rate Advances, the duration of the initial Interest Period for such Advances.
Each notice of Conversion shall be irrevocable and binding on the Borrower.
31
(b) Mandatory. (i) On the date on which the aggregate unpaid principal
amount of Eurodollar Rate Advances shall be reduced, by payment or prepayment or
otherwise, to less than $5,000,000, such Advances shall automatically Convert
into Base Rate Advances.
(ii) If the Borrower shall fail to select the duration of any Interest
Period for any Eurodollar Rate Advances in accordance with the provisions
contained in the definition of "Interest Period" in Section 1.01, the
Administrative Agent will forthwith so notify the Borrower and the Lenders,
whereupon each such Eurodollar Rate Advance will automatically, on the last day
of the then existing Interest Period therefor, Convert into a Base Rate Advance.
(iii) Upon the occurrence and during the continuance of any Event of
Default, (x) each Eurodollar Rate Advance will automatically, on the last day of
the then existing Interest Period therefor, Convert into a Base Rate Advance and
(y) the obligation of the Lenders to make, or to Advances into, Eurodollar Rate
Advances shall be suspended.
SECTION 2.10. Increased Costs, Etc. (a) If, due to either (i) the
introduction of or any change in or in the interpretation of any law or
regulation or (ii) the compliance with any guideline or request from any central
bank or other governmental authority (whether or not having the force of law),
there shall be any increase in the cost to any Lender Party of agreeing to make
or of making, funding or maintaining Eurodollar Rate Advances or of agreeing to
make or of making or maintaining Letter of Credit Advances (excluding, for
purposes of this Section 2.10, any such increased costs resulting from (x) Taxes
or Other Taxes (as to which Section 2.12 shall govern) and (y) changes in the
basis of taxation of overall net income or overall gross income by the United
States or by the foreign jurisdiction or state under the laws of which such
Lender Party is organized or has its Applicable Lending Office or any political
subdivision thereof), then the Borrower shall from time to time, upon demand by
such Lender Party (with a copy of such demand to the Administrative Agent), pay
to the Administrative Agent for the account of such Lender Party additional
amounts sufficient to compensate such Lender Party for such increased cost;
provided, however, that a Lender Party claiming additional amounts under this
Section 2.10(a) agrees to use reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions) to designate a different
Applicable Lending Office if the making of such a designation would avoid the
need for, or reduce the amount of, such increased cost that may thereafter
accrue and would not, in the reasonable judgment of such Lender Party, be
otherwise disadvantageous to such Lender Party. A certificate as to the amount
of such increased cost, submitted to the Borrower by such Lender Party, shall be
conclusive and binding for all purposes, absent manifest error.
(b) If, due to either (i) the introduction of or any change in or in
the interpretation of any law or regulation or (ii) the compliance with any
guideline or request from any central bank or other governmental authority
(whether or not having the force of law), there shall be any increase in the
amount of capital required or expected to be maintained by any Lender Party or
any corporation controlling such Lender Party as a result of or based upon the
existence of such Lender Party's commitment to lend or to issue or participate
in Letters of Credit hereunder and other commitments of such type or the
issuance or maintenance of or participation in the Letters of Credit (or similar
contingent obligations), then, upon demand by such Lender Party or such
corporation (with a copy of such demand to the Administrative Agent), the
Borrower shall pay to the Administrative Agent for the account of such Lender
Party, from time to time as specified by such Lender Party, additional amounts
sufficient to compensate such Lender Party in the light of such circumstances,
to the extent that such Lender Party reasonably determines such increase in
capital to be allocable to the existence of such Lender Party's commitment to
lend or to issue or participate in Letters of Credit hereunder or the issuance
or maintenance of or participation in the Letters of credit (or similar
contingent obligations). A certificate as to such amounts submitted to the
Borrower by such Lender Party shall be conclusive and binding for all purposes,
absent manifest error.
(c) If, with respect to any Eurodollar Rate Advances, Lenders owed a
majority of the then aggregate unpaid principal amount of such Advances notify
the Administrative Agent that the
32
Eurodollar Rate for any Interest Period for such Advances will not adequately
reflect the cost to such Lenders of making, funding or maintaining their
Eurodollar Rate Advances for such Interest Period, the Administrative Agent
shall forthwith so notify the Borrower and the Appropriate Lenders, whereupon
(i) each such Eurodollar Rate Advance will automatically, on the last day of the
then existing Interest Period therefor, Convert into a Base Rate Advance and
(ii) the obligation of the Appropriate Lenders to make, or to Convert Advances
into, Eurodollar Rate Advances shall be suspended until the Administrative Agent
shall notify the Borrower that such Lenders have determined that the
circumstances causing such suspension no longer exist.
(d) Notwithstanding any other provision of this Agreement, if the
introduction of or any change in or in the interpretation of any law or
regulation shall make it unlawful, or any central bank or other governmental
authority shall assert that it is unlawful, for any Lender or its Eurodollar
Lending Office to perform its obligations hereunder to make Eurodollar Rate
Advances or to continue to fund or maintain Eurodollar Rate Advances hereunder,
then, on notice thereof and demand therefor by such Lender to the Borrower
through the Administrative Agent, (i) each Eurodollar Rate Advance will
automatically, upon such demand, Convert into a Base Rate Advance and (ii) the
obligation of the Appropriate Lenders to make, or to Convert Advances into,
Eurodollar Rate Advances shall be suspended until the Administrative Agent shall
notify the Borrower that such Lender has determined that the circumstances
causing such suspension no longer exist; provided, however, that, before making
any such demand, such Lender agrees to use reasonable efforts (consistent with
its internal policy and legal and regulatory restrictions) to designate a
different Eurodollar Lending Office if the making of such a designation would
allow such Lender or its Eurodollar Lending Office to continue to perform its
obligations to make Eurodollar Rate Advances or to continue to fund or maintain
Eurodollar Rate Advances and would not, in the judgment of such Lender, be
otherwise disadvantageous to such Lender.
SECTION 2.11. Payments and Computations. (a) The Borrower shall make
each payment hereunder and under the Notes, irrespective of any right of
counterclaim or set-off (except as otherwise provided in Section 2.15), not
later than 11:00 A.M. (New York City time) on the day when due in U.S. dollars
to the Administrative Agent at the Administrative Agent's Account in same day
funds, with payments being received by the Administrative Agent after such time
being deemed to have been received on the next succeeding Business Day. The
Administrative Agent will promptly thereafter cause like funds to be distributed
(i) if such payment by the Borrower is in respect of principal, interest,
commitment fees or any other Obligation then payable hereunder and under the
Notes to more than one Lender Party, to such Lender Parties for the account of
their respective Applicable Lending Offices ratably in accordance with the
amounts of such respective Obligations then payable to such Lender Parties and
(ii) if such payment by the Borrower is in respect of any Obligation then
payable hereunder to one Lender Party, to such Lender Party for the account of
its Applicable Lending Office, in each case to be applied in accordance with the
terms of this Agreement. Upon its acceptance of an Assignment and Acceptance and
recording of the information contained therein in the Register pursuant to
Section 9.07(d), from and after the effective date of such Assignment and
Acceptance, the Administrative Agent shall make all payments hereunder and under
the Notes in respect of the interest assigned thereby to the Lender Party
assignee thereunder, and the parties to such Assignment and Acceptance shall
make all appropriate adjustments in such payments for periods prior to such
effective date directly between themselves.
(b) The Borrower hereby authorizes each Lender Party, if and to the
extent payment owed to such Lender Party is not made when due hereunder or, in
the case of a Lender Party, under any Note held by such Lender Party, to charge
from time to time, to the fullest extent permitted by law, against any or all of
the Borrower's accounts with such Lender Party any amount so due. Each such
Lender Party agrees promptly to notify the Borrower after making any such
charge; provided, however, that the failure to give such notice shall not affect
the validity of such charge.
33
(c) All computations of interest based on the Base Rate shall be made
by the Administrative Agent on the basis of a year of 365 or 366 days, as the
case may be, and all computations of interest based on the Eurodollar Rate or
the Federal Funds Rate and of fees and Letter of Credit commissions shall be
made by the Administrative agent on the basis of a year of 360 days, in each
case for the actual number of days (including the first day but excluding the
last day) occurring in the period for which such interest, fees or commissions
are payable. Each determination by the Administrative Agent of an interest rate,
fee or commission hereunder shall be conclusive and binding for all purposes,
absent manifest error.
(d) Whenever any payment hereunder or under the Notes shall be stated
to be due on a day other than a Business Day, such payment shall be made on the
next succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest, commitment fee or Letter of
Credit fee, as the case may be; provided, however, that, if such extension would
cause payment of interest on or principal of Eurodollar Rate Advances to be made
in the next following calendar month, such payment shall be made on the next
preceding Business Day.
(e) Unless the Administrative Agent shall have received notice from the
Borrower prior to the date on which any payment is due to any Lender Party
hereunder that the Borrower will not make such payment in full, the
Administrative Agent may assume that the Borrower has made such payment in full
to the Administrative Agent on such date and the Administrative Agent may, in
reliance upon such assumption, cause to be distributed to each such Lender Party
on such due date an amount equal to the amount then due such Lender Party. If
and to the extent the Borrower shall not have so made such payment in full to
the Administrative Agent, each such Lender Party shall repay to the
Administrative Agent forthwith on demand such amount distributed to such Lender
Party together with interest thereon, for each day from the date such amount is
distributed to such Lender Party until the date such Lender Party repays such
amount to the Administrative Agent, at the Federal Funds Rate.
(f) If the Administrative Agent receives funds for application to the
Obligations under the Loan Documents under circumstances for which the Loan
Documents do not specify the Advances or the Facility to which, or the manner in
which, such funds are to be applied, the Administrative Agent may, but shall not
be obligated to, elect to distribute such funds to each Lender Party ratably in
accordance with such Lender Party's proportionate share of the principal amount
of all outstanding Advances and the Available Amount of all Letters of Credit
then outstanding, in repayment or prepayment of such of the outstanding Advances
or other Obligations owed to such Lender Party, and for application to such
principal installments, as the Administrative Agent shall direct.
SECTION 2.12. Taxes. (a) Except as required by law, any and all
payments by or for the account of any Loan Party hereunder, or in respect of the
Notes or any other Loan Document, shall be made, in accordance with Section
2.10, free and clear of and without deduction for any and all present or future
taxes, levies, imposts, deductions, charges or withholdings, and all liabilities
with respect thereto, excluding, in the case of each Lender Party and each
Agent, taxes that are imposed on its overall net income by the United States and
taxes that are imposed on its overall net income (and franchise taxes imposed in
lieu thereof) by the state or foreign jurisdiction under the laws of which such
Lender Party or such Agent, as the case may be, is organized or any political
subdivision thereof and, in the case of each Lender Party, taxes that are
imposed on its overall net income (and franchise taxes imposed in lieu thereof)
by the state or foreign jurisdiction of such Lender Party's Applicable Lending
Office or any political subdivision thereof (all such non-excluded taxes,
levies, imposts, deductions, charges, withholdings and liabilities in respect of
payments hereunder or under the Notes being hereinafter referred to as "TAXES").
If a Loan Party shall be required by law to deduct any Taxes from or in respect
of any sum payable hereunder or under any Note or other Loan Documents to any
Lender Party or any Agent, (i) the sum payable by such Loan Party shall be
increased as may be necessary so that after such Loan Party and the
Administrative Agent have made all required deductions (including deductions
applicable to additional sums payable under this Section 2.12) such Lender Party
or such Agent, as the case may be,
34
receives an amount equal to the sum it would have received had no such
deductions been made, (ii) such Loan Party shall make all such deductions and
(iii) such Loan Party shall pay the full amount deducted to the relevant
taxation authority or other authority in accordance with applicable law.
(b) In addition, each Loan Party shall pay any present or future stamp,
documentary, excise, property or similar taxes, charges or levies that arise
from any payment made hereunder or under the Notes or other Loan Documents or
from the execution, delivery or registration of, performance under, or otherwise
with respect to, this Agreement, the Notes or any other Loan Document
(hereinafter referred to as "OTHER TAXES").
(c) Each Loan Party shall indemnify each Lender Party and each Agent
for and hold them harmless against the full amount of Taxes and Other Taxes, and
for the full amount of taxes of any kind imposed by any jurisdiction on amounts
payable under this Section 2.12, imposed on or paid by such Lender Party or such
Agent (as the case may be) and any liability (including penalties, additions to
tax, interest and expenses) arising therefrom or with respect thereto. This
indemnification shall be made within 30 days from the date such Lender Party or
such Agent (as the case may be) makes written demand therefor.
(d) Within 45 days after the date of any payment of Taxes, the relevant
Loan Party shall furnish to the Administrative Agent, at its address referred to
in Section 9.02, the original or a certified copy of a receipt evidencing such
payment. In the case of any payment hereunder or under the Notes or other Loan
Documents by or on behalf of such Loan Party through an account or branch
outside the United States or by or on behalf of such Loan Party by a payor that
is not a United States person, if such Loan Party determines that no Taxes are
payable in respect thereof, such Loan Party shall furnish, or shall cause such
payor to furnish, to the Administrative Agent, at such address, an opinion of
counsel acceptable to the Administrative Agent stating that such payment is
exempt from Taxes. For purposes of subsections (d) and (e) of this Section 2.12,
the terms "UNITED STATES" and "UNITED STATES PERSON" shall have the meanings
specified in Section 7701 of the Internal Revenue Code.
(e) Each Lender Party that is not a "United States person", as such
term is defined in Section 7701(c)(30) of the Code, shall, on or prior to the
date of its execution and delivery of this Agreement in the case of each Initial
Lender or Initial Issuing Bank and on the date of the Assignment and Acceptance
pursuant to which it becomes a Lender Party in the case of each other Lender
Party, and from time to time thereafter as requested in writing by the relevant
Loan Party (but only so long thereafter as such Lender Party remains lawfully
able to do so), provide each of the Administrative Agent and each Loan Party
with two original Internal Revenue Service forms 1001 or 4224, W-8ECI, W-8 or
W-8BEN (and if such Lender Party delivers a form W-8 or W8-BEN in connection
with Section 871(h) or 881(e) of the Code, a certificate representing that such
Lender Party is not a "bank" for purposes of Section 881(c) of the Internal
Revenue Code, is not a 10-percent shareholder, within the meaning of Section
871(h)(3)(B) of the Internal Revenue Code, of the Loan Party and is not a
controlled foreign corporation related to the Loan Party, within the meaning of
Section 864(d)(4) of the Internal Revenue Code), as appropriate, or any
successor or other form prescribed by the Internal Revenue Service, certifying
that such Lender Party is exempt from or entitled to a reduced rate of United
States withholding tax on payments pursuant to this Agreement or the Notes or,
in the case of a Lender Party providing a form W-8 or W-8BEN, certifying that
such Lender Party is a foreign corporation, partnership, estate or trust. If the
forms provided by a Lender Party at the time such Lender Party first becomes a
party to this Agreement indicate a United States interest withholding tax rate
in excess of zero, withholding tax at such rate shall be considered excluded
from Taxes unless and until such Lender Party provides the appropriate forms
certifying that a lesser rate applies, whereupon withholding tax at such lesser
rate only shall be considered excluded from Taxes for periods governed by such
forms; provided, however, that if, at the effective date of the Assignment and
Acceptance pursuant to which a Lender Party becomes a party to this Agreement,
the Lender Party assignor was entitled to payments under subsection (a) of this
Section 2.12 in respect of United States withholding tax with respect to
interest paid at such date, then, to such extent and only to
35
such extent, the term Taxes shall include (in addition to withholding taxes that
may be imposed in the future or other amounts otherwise includable in Taxes)
United States withholding tax, if any, applicable with respect to the Lender
Party assignee on such date. If any form or document referred to in this
subsection (e) requires the disclosure of information, other than information
necessary to compute the tax payable and information required on the date hereof
by Internal Revenue Service form 1001, 0000, X-0, X-0XXX or W-8ECI (or the
related certificate described above), that the applicable Lender Party
reasonably considers to be confidential, such Lender Party shall give notice
thereof to the Loan Party and shall not be obligated to include in such form or
document such confidential information.
(f) For any period with respect to which a Lender Party has failed to
provide the relevant Loan Party with the appropriate form described in
subsection (e) above (other than if such failure is due to a change in law
occurring after the date on which a form originally was required to be provided
or if such form otherwise is not required under subsection (e) above), such
Lender Party shall not be entitled to indemnification under subsection (a) or
(c) of this Section 2.12 with respect to Taxes imposed by the United States by
reason of such failure; provided, however, that should a Lender Party become
subject to Taxes because of its failure to deliver a form required hereunder,
the relevant Loan Party shall take such steps as such Lender Party shall
reasonably request to assist such Lender Party to recover such Taxes.
(g) In the event that an additional payment is made under Section 2.12
for the account of any Lender Party and such Lender Party, in its sole opinion,
determines that it has finally and irrevocably received or been granted a refund
in respect of any Taxes paid pursuant to this Section 2.12, such Lender Party
shall promptly remit such refund to the Borrower, net of all out-of-pocket
expenses of such Lender Party; provided, however, that the Borrower upon the
request of such Lender Party, agrees to promptly return such refund to such
Lender Party in the event such Lender Party is required to repay such refund to
the relevant taxing authority. Nothing contained herein shall interfere with the
right of a Lender Party to arrange its tax affairs in whatever manner it thinks
fit nor oblige any Lender Party to apply for any refund or to disclose any
information relating to its tax affairs or any computations in respect thereof.
SECTION 2.13. Sharing of Payments, Etc. If any Lender Party shall
obtain at any time any payment (whether voluntary, involuntary, through the
exercise of any right of set-off, or otherwise, other than as a result of an
assignment pursuant to Section 9.07) (a) on account of Obligations due and
payable to such Lender Party hereunder and under the Notes at such time in
excess of its ratable share (according to the proportion of (i) the amount of
such Obligations due and payable to such Lender Party at such time to (ii) the
aggregate amount of the Obligations due and payable to all Lender Parties
hereunder and under the Notes at such time) of payments on account of the
Obligations due and payable to all Lender Parties hereunder and under the Notes
at such time obtained by all the Lender Parties at such time or (b) on account
of Obligations owing (but not due and payable) to such Lender Party hereunder
and under the Notes at such time in excess of its ratable share (according to
the proportion of (i) the amount of such Obligations owing to such Lender Party
at such time to (ii) the aggregate amount of the Obligations owing (but not due
and payable) to all Lender Parties hereunder and under the Notes at such time)
of payments on account of the Obligations owing (but not due and payable) to all
Lender Parties hereunder and under the Notes at such time obtained by all of the
Lender Parties at such time, such Lender Party shall forthwith purchase from the
other Lender Parties such interests or participating interests in the
Obligations due and payable or owing to them, as the case may be, as shall be
necessary to cause such purchasing Lender Party to share the excess payment
ratably with each of them; provided, however, that if all or any portion of such
excess payment is thereafter recovered from such purchasing Lender Party, such
purchase from each other Lender Party shall be rescinded and such other Lender
Party shall repay to the purchasing Lender Party the purchase price to the
extent of such Lender Party's ratable share (according to the proportion of (i)
the purchase price paid to such Lender Party to (ii) the aggregate purchase
price paid to all Lender Parties) of such recovery together with an amount equal
to such Lender Party's ratable share (according to the proportion of (i) the
amount of such other Lender Party's required repayment to (ii) the total amount
so recovered from the purchasing Lender Party) of any interest or other amount
paid or payable by the purchasing Lender Party in respect of the total amount so
recovered;
36
provided further that, so long as the Obligations under the Loan Documents shall
not have been accelerated, any excess payment received by any Appropriate Lender
shall be shared on a pro rata basis only with other Appropriate Lenders. The
Borrower agrees that any Lender Party so purchasing an interest or participating
interest from another Lender Party pursuant to this Section 2.13 may, to the
fullest extent permitted by law, exercise all its rights of payment (including
the right of set-off), except as limited hereby, with respect to such interest
or participating interest, as the case may be, as fully as if such Lender Party
were the direct creditor of the Borrower in the amount of such interest or
participating interest, as the case may be.
SECTION 2.14. Use of Proceeds. The Revolving Credit Advances shall be
available (and the Borrower agrees that it shall use such proceeds) solely to
provide working capital for the Borrower and its Subsidiaries and for other
general corporate purposes of the Borrower and its Subsidiaries. The proceeds of
advances made under the Term Loan Facilities, if any, shall be available for
purposes to be agreed upon by the Borrower and the Administrative Agent;
provided, however, that such proceeds may be used in connection with
acquisitions by the Borrower.
SECTION 2.15. Defaulting Lenders. (a) In the event that, at any one
time, (i) any Lender Party shall be a Defaulting Lender, (ii) such Defaulting
Lender shall owe a Defaulted Advance to the Borrower and (iii) the Borrower
shall be required to make any payment hereunder or under any other Loan Document
to or for the account of such Defaulting Lender, then the Borrower may, so long
as no Default shall occur or be continuing at such time and to the fullest
extent permitted by applicable law, set off and otherwise apply the Obligation
of the Borrower to make such payment to or for the account of such Defaulting
Lender against the obligation of such Defaulting Lender to make such Defaulted
Advance. In the event that, on any date, the Borrower shall so set off and
otherwise apply its obligation to make any such payment against the obligation
of such Defaulting Lender to make any such Defaulted Advance on or prior to such
date, the amount so set off and otherwise applied by the Borrower shall
constitute for all purposes of this Agreement and the other Loan Documents an
Advance by such Defaulting Lender made on the date of such setoff under the
Facility pursuant to which such Defaulted Advance was originally required to
have been made pursuant to Section 2.01. Such Advance shall be considered, for
all purposes of this Agreement, to comprise part of the Borrowing in connection
with which such Defaulted Advance was originally required to have been made
pursuant to Section 2.01, even if the other Advances comprising such Borrowing
shall be Eurodollar Rate Advances on the date such Advance is deemed to be made
pursuant to this subsection (a). The Borrower shall notify the Administrative
Agent at any time the Borrower exercises its right of set-off pursuant to this
subsection (a) and shall set forth in such notice (A) the name of the Defaulting
Lender and the Defaulted Advance required to be made by such Defaulting Lender
and (B) the amount set off and otherwise applied in respect of such Defaulted
Advance pursuant to this subsection (a). Any portion of such payment otherwise
required to be made by the Borrower to or for the account of such Defaulting
Lender which is paid by the Borrower, after giving effect to the amount set off
and otherwise applied by the Borrower pursuant to this subsection (a), shall be
applied by the Administrative Agent as specified in subsection (b) or (c) of
this Section 2.15.
(b) In the event that, at any one time, (i) any Lender Party shall be a
Defaulting Lender, (ii) such Defaulting Lender shall owe a Defaulted Amount to
any Agent or any of the other Lender Parties and (iii) the Borrower shall make
any payment hereunder or under any other Loan Document to the Administrative
Agent for the account of such Defaulting Lender, then the Administrative Agent
may, on its behalf or on behalf of such other Agents or such other Lender
Parties and to the fullest extent permitted by applicable law, apply at such
time the amount so paid by the Borrower to or for the account of such Defaulting
Lender to the payment of each such Defaulted Amount to the extent required to
pay such Defaulted Amount. In the event that the Administrative Agent shall so
apply any such amount to the payment of any such Defaulted Amount on any date,
the amount so applied by the Administrative Agent shall constitute for all
purposes of this Agreement and the other Loan Documents payment, to such extent,
of such Defaulted Amount on such date. Any such amount so
37
applied by the Administrative Agent shall be retained by the Administrative
Agent or distributed by the Administrative Agent to such other Agents or such
other Lender Parties, ratably in accordance with the respective portions of such
Defaulted Amounts payable at such time to the Administrative Agent, such other
Agents and such other Lender Parties and, if the amount of such payment made by
the Borrower shall at such time be insufficient to pay all Defaulted Amounts
owing at such time to the Administrative Agent, such other Agents and such other
Lender Parties, in the following order of priority:
(i) first, to the Agents for any Defaulted Amounts then owing to them,
in their capacities as such, ratably in accordance with such respective
Defaulted Amounts then owing to the Agents;
(ii) second, to the Issuing Bank for any Defaulted Amounts then owing
to it, in its capacity as such; and
(iii) third, to any other Lender Parties for any Defaulted Amounts
then owing to such other Lender Parties, ratably in accordance with such
respective Defaulted Amounts then owing to such other Lender Parties.
Any portion of such amount paid by the Borrower for the account of such
Defaulting Lender remaining, after giving effect to the amount applied by the
Administrative Agent pursuant to this subsection (b), shall be applied by the
Administrative Agent as specified in subsection (c) of this Section 2.15.
(c) In the event that, at any one time, (i) any Lender Party shall be a
Defaulting Lender, (ii) such Defaulting Lender shall not owe a Defaulted Advance
or a Defaulted Amount and (iii) the Borrower, any Agent or any other Lender
Party shall be required to pay or distribute any amount hereunder or under any
other Loan Document to or for the account of such Defaulting Lender, then the
Borrower or such Agent or such other Lender Party shall pay such amount to the
Administrative Agent to be held by the Administrative Agent, to the fullest
extent permitted by applicable law, in escrow or the Administrative Agent shall,
to the fullest extent permitted by applicable law, hold in escrow such amount
otherwise held by it. Any funds held by the Administrative Agent in escrow under
this subsection (c) shall be deposited by the Administrative Agent in an account
with MS&Co., in the name and under the control of the Administrative Agent, but
subject to the provisions of this subsection (c). The terms applicable to such
account, including the rate of interest payable with respect to the credit
balance of such account from time to time, shall be MS&Co.'s standard terms
applicable to escrow accounts maintained with it. Any interest credited to such
account from time to time shall be held by the Administrative Agent in escrow
under, and applied by the Administrative Agent from time to time in accordance
with the provisions of, this subsection (c). The Administrative Agent shall, to
the fullest extent permitted by applicable law, apply all funds so held in
escrow from time to time to the extent necessary to make any Advances required
to be made by such Defaulting Lender and to pay any amount payable by such
Defaulting Lender Party hereunder and under the other Loan Documents to the
Administrative Agent or any other Lender Party, as and when such Advances or
amounts are required to be made or paid and, if the amount so held in escrow
shall at any time be insufficient to make and pay all such Advances and amounts
required to be made or paid at such time, in the following order of priority:
(i) first, to the Agents for any amounts then due and payable by such
Defaulting Lender to them hereunder, in their capacities as such, ratably
in accordance with such respective amounts then due and payable to the
Agents;
(ii) second, to the Issuing Banks for any amounts then due and payable
to it hereunder, in its capacity as such, by such Defaulting Lender;
38
(iii) third, to any other Lender Parties for any amount then due and
payable by such Defaulting Lender to such other Lender Parties hereunder,
ratably in accordance with such respective amounts then due and payable to
such other Lender Parties; and
(iv) fourth, to the Borrower for any Advance then required to be made
by such Defaulting Lender pursuant to a Commitment of such Defaulting
Lender.
In the event that any Lender Party that is a Defaulting Lender shall, at any
time, cease to be a Defaulting Lender, any funds held by the Administrative
Agent in escrow at such time with respect to such Lender Party shall be
distributed by the Administrative Agent to such Lender Party and applied by such
Lender Party to the Obligations owing to such Lender Party at such time under
this Agreement and the other Loan Documents ratably in accordance with the
respective amounts of such Obligations outstanding at such time.
(d) The rights and remedies against a Defaulting Lender under this
Section 2.15 are in addition to other rights and remedies that the Borrower may
have against such Defaulting Lender with respect to any Defaulted Advance and
that any Agent or any Lender Party may have against such Defaulting Lender with
respect to any Defaulted Amount.
SECTION 2.16. Evidence of Debt. (a) Each Lender Party shall maintain in
accordance with its usual practice an account or accounts evidencing the
indebtedness of the Borrower to such Lender resulting from each Advance owing to
such Lender Party from time to time, including the amounts of principal and
interest payable and paid to such Lender from time to time hereunder. The
Borrower agrees that upon notice by any Lender Party to the Borrower (with a
copy of such notice to the Administrative Agent) to the effect that a promissory
note or other evidence of indebtedness is required or appropriate in order for
such Lender Party to evidence (whether for purposes of pledge, enforcement or
otherwise) the Advances owing to, or to be made by, such Lender Party, the
Borrower shall promptly execute and deliver to such Lender Party, with a copy to
the Administrative Agent, a Note payable to the order of such Lender Party in a
principal amount equal to the Revolving Credit Commitment of such Lender Party.
All references to Notes in the Loan Documents shall mean Notes, if any, to the
extent issued hereunder.
(b) The Register maintained by the Administrative Agent pursuant to
Section 9.07(d) shall include a control account, and a subsidiary account for
each Lender Party, in which accounts (taken together) shall be recorded (i) the
date and amount of each Borrowing made hereunder, the Type of Advances
comprising such Borrowing and, if appropriate, the Interest Period applicable
thereto, (ii) the terms of each Assignment and Acceptance delivered to and
accepted by it, (iii) the amount of any principal or interest due and payable or
to become due and payable from the Borrower to each Lender Party hereunder, and
(iv) the amount of any sum received by the Administrative Agent from the
Borrower hereunder and each Lender Party's share thereof.
(c) Entries made in good faith by the Administrative Agent in the
Register pursuant to subsection (b) above, and by each Lender Party in its
account or accounts pursuant to subsection (a) above, shall be prima facie
evidence of the amount of principal and interest due and payable or to become
due and payable from the Borrower to, in the case of the Register, each Lender
Party and, in the case of such account or accounts, such Lender Party, under
this Agreement, absent manifest error; provided, however, that the failure of
the Administrative Agent or such Lender Party to make an entry, or any finding
that an entry is incorrect, in the Register or such account or accounts shall
not limit or otherwise affect the obligations of the Borrower under this
Agreement.
SECTION 2.17. Increase in the Aggregate Commitments. (a) The Borrower
may, at any time prior to the Termination Date, by notice to the Administrative
Agent, request the addition of one or more term loan facilities (each, a "TERM
LOAN FACILITY" and, collectively, "TERM LOAN FACILITIES") pursuant to an
increase in the Commitments (each, a "COMMITMENT INCREASE") equal to at least
39
$25,000,000 (or an integral multiple of $5,000,000 in excess thereof) to be
effective as of a date that is at least 90 days prior to the scheduled
Termination Date then in effect (the "INCREASE DATE") as specified in the
related notice to the Administrative Agent; provided, however, that (i) in no
event shall the aggregate amount of all of the Commitment Increases exceed
$200,000,000, (ii) on the date of any request by the Borrower for a Commitment
Increase and on the related Increase Date, (x) no Event of Default on a pro
forma basis shall have occurred and be continuing, and (y) the applicable
conditions set forth in clause (d) of this Section 2.17 shall be satisfied,
(iii) the final maturity of advances and commitments under any Term Loan
Facility shall be no shorter than one year after the final maturity of the
Revolving Credit Facility, and (iv) each such Term Loan Facility shall contain
other terms as may be agreed upon by the Borrower and the Administrative Agent.
(b) The Administrative Agent shall promptly notify the Lenders of a
request by the Borrower for a Commitment Increase, which notice shall include
(i) the proposed amount of such requested Commitment Increase, (ii) the proposed
Increase Date, and (iii) the date by which Lenders wishing to participate in the
Commitment Increase must commit to an increase in the amount of their respective
Commitments (the "COMMITMENT DATE") which date shall be no later than 10
Business Days following the date of such notice. Each Lender that is willing to
participate in the requested Commitment Increase (each, an "INCREASING LENDER")
shall, in its sole discretion, give written notice to the Administrative Agent
on or prior to the Commitment Date of the amount by which it is willing to
increase its Commitment. If the Lenders notify the Administrative Agent that
they are willing to increase the amount of their respective Commitments by an
aggregate amount that exceeds the amount of the requested Commitment Increase,
the requested Commitment Increase shall be allocated among the Lenders willing
to participate therein ratably in accordance with their respective Commitments
hereunder.
(c) Promptly following the Commitment Date, the Administrative Agent
shall notify the Borrower as to the amount, if any, by which the Lenders are
willing to participate in the requested Commitment Increase. If the aggregate
amount by which the Lenders are willing to participate in the requested
Commitment Increase on any such Commitment Date is less than the requested
Commitment Increase, then the Borrower may extend offers to one or more Eligible
Assignees to participate in any portion of the requested Commitment Increase
that has not been committed to by the Lenders as of the Commitment Date;
provided, however, that the Commitment of each such Eligible Assignee shall be
in an amount of $1,000,000 or an integral multiple of $1,000,000 in excess
thereof.
(d) On the Increase Date, each Eligible Assignee that accepts an offer
to participate in a requested Commitment Increase in accordance with Section
2.17(c) (each such Eligible Assignee, an "ASSUMING LENDER") shall become a
Lender party to this Agreement as of the Increase Date and the Commitment of
each Increasing Lender for such Commitment Increase shall be so increased by
such amount (or by the amount allocated to such Lender pursuant to the last
sentence of Section 2.17(b)) as of the Increase Date; provided, however, that
the Administrative Agent shall have received on or before the Increase Date the
following, each dated such date:
(i) (A) certified copies of resolutions of the Board of Directors of
the Borrower approving the Commitment Increase and the corresponding
modifications to this Agreement and (B) an opinion of counsel for the
Borrower (which may be in-house counsel), in a form reasonably satisfactory
to the Administrative Agent;
(ii) an assumption agreement from each Assuming Lender, if any, in
form and substance satisfactory to the Borrower and the Administrative
Agent (each, an "ASSUMPTION AGREEMENT"), duly executed by such Eligible
Assignee, the Administrative Agent and the Borrower; and
(iii) confirmation from each Increasing Lender of the increase in the
amount of its Commitment in a writing satisfactory to the Borrower and the
Administrative Agent.
40
On the Increase Date, upon fulfillment of the conditions set forth in the
immediately preceding sentence of this Section 2.17(d), the Administrative Agent
shall notify the Lenders (including, without limitation, each Assuming Lender)
and the Borrower, on or before 1:00 P.M. (New York City time), by telecopier or
telex, of the occurrence of the Commitment Increase to be effected on the
Increase Date and shall record in the Register the relevant information with
respect to each Increasing Lender and each Assuming Lender on such date.
(e) It is agreed and understood that to the extent that Lenders have
not committed to the requested Commitment Increase as of the Commitment Date,
the Borrower may extend the offer to one or more Eligible Assignees to
participate in any portion of the Commitment Increase.
ARTICLE III
CONDITIONS OF LENDING
SECTION 3.01. Conditions Precedent to Initial Extension of Credit. The
obligation of each Lender Party to make an Advance or of any Issuing Bank to
issue a Letter of Credit on the occasion of the Initial Extension of Credit
hereunder is subject to the satisfaction of the following conditions precedent
before or concurrently with the Initial Extension of Credit:
(a) The Administrative Agent shall have received on or before the day
of the Initial Extension of Credit the following, each dated such day
(unless otherwise specified), in form and substance satisfactory to the
Administrative Agent (unless otherwise specified) and (except for the
Notes) in sufficient copies for each Lender Party:
(i) If requested by a Lender, a Note payable to the order of such
Lender.
(ii) A security agreement in substantially the form of Exhibit D
hereto (together with each other security agreement and security
agreement supplement delivered pursuant to Section 5.01(j), in each
case as amended, the "SECURITY AGREEMENT"), duly executed by the Loan
Parties, together with:
(A) certificates representing the Pledged Shares referred to
therein accompanied by undated stock powers executed in blank and
instruments evidencing the Pledged Debt (if any) indorsed in
blank,
(B) executed copies of proper financing statements for
filing under the Uniform Commercial Code of all jurisdictions
that the Collateral Agent may deem necessary or desirable in
order to perfect and protect the first priority liens and
security interests created under the Security Agreement, covering
the Collateral described in the Security Agreement,
(C) completed requests for information, dated on or before
the date of the Initial Extension of Credit, listing the
financing statements referred to in clause (B) above and all
other effective financing statements filed in the jurisdictions
referred to in clause (B) above that name the Borrower as debtor,
together with copies of such other financing statements,
(D) evidence of the insurance (if any) required by the terms
of the Security Agreement, and
(E) evidence that all other action that the Collateral Agent
may reasonably deem necessary in order to perfect and protect the
first priority liens and security interests created under the
Security Agreement has been taken
41
(including, without limitation, receipt of duly executed payoff
letters, UCC-3 termination statements and landlords' and bailees'
waiver and consent agreements).
(iii) Certified copies of the resolutions of the Board of
Directors of the Borrower approving the Transaction and each Loan
Document to which it is or is to be a party, and of all documents
evidencing other necessary corporate action and governmental and other
third party approvals and consents, if any, with respect to the
Transaction and each Loan Document to which it is or is to be a party.
(iv) A copy of a certificate of the Secretary of State (or
equivalent governmental authority) of the jurisdiction of
incorporation of the Borrower, dated reasonably near the date of the
Initial Extension of Credit, certifying (A) as to a true and correct
copy of the charter of the Borrower and each amendment thereto on file
in the office of such Secretary of State (or such governmental
authority) and (B) that (1) such amendments are the only amendments to
the Borrower's charter on file in its office, (2) the Borrower has
paid all franchise taxes (or the equivalent thereof) to the date of
such certificate and (C) the Borrower is duly incorporated and in good
standing or presently subsisting under the laws of the State of the
jurisdiction of its incorporation.
(v) A copy of a certificate of the Secretary of State (or
equivalent governmental authority) of each jurisdiction in which the
Borrower is qualified or licensed as a foreign corporation, dated
reasonably near the date of the Initial Extension of Credit, stating
that the Borrower is duly qualified and in good standing as a foreign
corporation in such State and has filed all annual reports required to
be filed to the date of such certificate.
(vi) A certificate of the Borrower, signed on behalf of the
Borrower by its President or a Vice President and its Secretary or any
Assistant Secretary, dated the date of the Initial Extension of Credit
(the statements made in which certificate shall be true on and as of
the date of the Initial Extension of Credit), certifying as to (A) the
absence of any amendments to the charter (or similar constitutive
document) of the Borrower since the date of the Secretary of State's
certificate referred to in Section 3.01(a)(iv), (B) a true and correct
copy of the bylaws of the Borrower as in effect on the date on which
the resolutions referred to in Section 3.01(a)(iii) were adopted and
on the date of the Initial Extension of Credit, (C) the due
incorporation and good standing or valid existence of the Borrower as
a corporation organized under the laws of the jurisdiction of its
incorporation, and the absence of any proceeding for the dissolution
or liquidation of the Borrower, (D) the truth of the representations
and warranties contained in the Loan Documents as though made on and
as of the date of the Initial Extension of Credit and (E) the absence
of any event occurring and continuing, or resulting from the Initial
Extension of Credit, that constitutes a Default.
(vii) A certificate of the Secretary or an Assistant Secretary of
the Borrower certifying the names and true signatures of the officers
of the Borrower authorized to sign each Loan Document to which it is
or is to be a party and the other documents to be delivered hereunder
and thereunder.
(viii) A certificate, in substantially the form of Exhibit F,
attesting to the Solvency of the Borrower, individually and together
with its Subsidiaries, taken as a whole, immediately before and
immediately after giving effect to the Transaction, from its Chief
Financial Officer.
42
(ix) Such financial, business and other information regarding the
Borrower and its Subsidiaries as the Lender Parties shall have
reasonably requested, including, without limitation, interim financial
statements dated the end of the most recent fiscal quarter for which
financial statements are available.
(x) A Notice of Borrowing relating to the Initial Extension of
Credit.
(xi) A certified copy of each of the Refinancing Documents, duly
executed by the parties thereto and in the form and substance
satisfactory to the Lender Parties, together with all agreements,
instruments and other documents delivered in connection therewith as
the Administrative Agent shall reasonably request.
(xii) A favorable opinion of Xxxxxxxx & Xxxxxxxx, counsel for the
Loan Parties, in substantially the form of Exhibit H hereto and as to
such other matters as any Lender Party through the Administrative
Agent may reasonably request.
(b) The Lender Parties shall be satisfied that all Existing Debt,
other than Surviving Debt, has been prepaid, redeemed or defeased in full
or otherwise satisfied and extinguished and that all Surviving Debt shall
be on terms and conditions satisfactory to the Lender Parties.
(c) Before giving effect to the Transaction, there shall have occurred
no Material Adverse Change since December 31, 2000.
(d) There shall exist no action, suit, investigation, litigation or
proceeding affecting the Borrower or any of its Subsidiaries pending or
threatened before any court, governmental agency or arbitrator that (i)
could reasonably be expected to have a Material Adverse Effect other than
the matters described on Schedule 4.01(f) hereto (the "DISCLOSED
LITIGATION") or (ii) purports to affect the legality, validity or
enforceability of any Loan Document or the consummation of the Transaction
and there shall have been no material adverse change in the status, or
financial effect on, the Borrower or any of its Subsidiaries, of the
Disclosed Litigation from that described on Schedule 4.01(f) hereto.
(e) All governmental and third party consents and approvals necessary
in connection with the Transaction shall have been obtained (without the
imposition of any conditions that are not acceptable to the Lender Parties)
and shall remain in effect (other than any such consents or approvals the
absence of which, either individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Effect); all applicable
waiting periods in connection with the Transaction shall have expired
without any action being taken by any competent authority, and no law or
regulation shall be applicable in the judgment of the Lender Parties, in
each case that restrains, prevents or imposes materially adverse conditions
upon the Transaction or the rights of the Borrower or its Subsidiaries
freely to transfer or otherwise dispose of, or to create any Lien on, any
properties now owned or hereafter acquired by any of them.
(f) The Lender Parties shall be satisfied with the terms and
conditions of the Subordinated Notes. On the Effective Date, the Borrower
shall have received at least $250,000,000 in cash proceeds from the
issuance of the Subordinated Notes. The Borrower shall have used the
proceeds of the Subordinated Notes, together with any cash on the balance
sheet of the Borrower, or shall use all such amounts simultaneously with
the Initial Extension of Credit under the Loan Documents to finance, in
part, the Refinancing and related costs and expenses.
(g) The Borrower shall have paid or caused to be paid all accrued fees
and expenses of the Administrative Agent, the Lead Arranger and the Lender
Parties (including the accrued fees and reasonable expenses of counsel to
the Administrative Agent and the Lead Arranger).
43
(h) All of the Equity Interests of each of the Borrower's Subsidiaries
shall be owned by the Borrower or one or more of the Borrower's
Subsidiaries (except to the extent such Equity Interests are required by
the laws of the jurisdiction of incorporation of such Subsidiary to be held
by any third party solely for the purpose of complying with the laws for
the incorporation or formation of such Subsidiary), in each case free and
clear of any Lien, other than the Liens created under the Loan Documents;
the Lenders shall have a valid and perfected first priority Lien and
security interest in such Equity Interests (or 65% of such Equity Interests
in a subsidiary that is a CFC) and in the other Collateral to the extent
contemplated by the Loan Documents; all filings, recordations and searches
necessary or desirable in connection with such Liens and security interests
shall have been duly made; and all filing and recording fees and taxes
shall have been duly paid.
SECTION 3.02. Conditions Precedent to Each Borrowing. The obligation of
each Appropriate Lender to make an Advance (other than a Letter of Credit
Advance) on the occasion of each Borrowing (including the initial Borrowing) and
the obligation of each Issuing Bank to issue a Letter of Credit (including the
initial issuance) or renew a Letter of Credit shall be subject to the further
conditions precedent that, on the date of such Borrowing, issuance or renewal,
(a) the following statements shall be true and the Administrative Agent shall
have received for the account of such Lender or Issuing Bank a certificate
signed by a duly authorized officer of the Borrower, dated the date of such
Borrowing, issuance or renewal, stating that:
(i) the representations and warranties contained in each Loan Document
are correct in all material respects on and as of such date, before and
after giving effect to such Borrowing, issuance or renewal and to the
application of the proceeds therefrom, as though made on and as of such
date, other than any such representations or warranties that, by their
terms, refer to a specific date other than the date of such Borrowing,
issuance or renewal, in which case as of such specific date; and
(ii) no Default has occurred and is continuing, or would result from
such Borrowing, issuance or renewal or from the application of the proceeds
therefrom;
and (b) the Administrative Agent shall have received such other approvals,
opinions or documents as any Appropriate Lender Party through the Administrative
Agent may reasonably request.
SECTION 3.03. Determinations Under Section 3.01. For purposes of
determining compliance with the conditions specified in Section 3.01, each
Lender Party shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to the Lender Parties unless an
officer of the Administrative Agent responsible for the transactions
contemplated by the Loan Documents shall have received notice from such Lender
Party prior to the Initial Extension of Credit specifying its objection thereto
and, if the Initial Extension of Credit consists of a Borrowing, such Lender
Party shall not have made available to the Administrative Agent such Lender
Party's ratable portion of such Borrowing.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
SECTION 4.01. Representations and Warranties of the Borrower. The
Borrower represents and warrants as of the Effective Date and each date referred
to in Section 3.02 as follows:
(a) Each Loan Party and each of its Subsidiaries (i) is a corporation
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation, (ii) is
44
duly qualified and in good standing as a foreign corporation in each other
jurisdiction in which it owns or leases property or in which the conduct of
its business requires it to so qualify or be licensed except where the
failure to so qualify or be licensed could not be reasonably expected to
have a Material Adverse Effect and (iii) has all requisite corporate power
and authority (including, without limitation, all governmental licenses,
permits and other approvals) to own or lease and operate its properties and
to carry on its business as now conducted and as proposed to be conducted.
(b) Set forth on Schedule 4.01(b) hereto is a complete and accurate
list of all Subsidiaries of each Loan Party, showing as of the Effective
Date (as to each such Subsidiary) the jurisdiction of its incorporation,
the number of shares of each class of its Equity Interests authorized, and
the number outstanding, on the Effective Date and the percentage of each
such class of its Equity Interests owned (directly or indirectly) by such
Loan Party and the number of shares covered by all outstanding options,
warrants, rights of conversion or purchase and similar rights at the
Effective Date. All of the outstanding Equity Interests in each Loan
Party's Subsidiaries has been validly issued, are fully paid and
non-assessable and are owned by such Loan Party or one or more of its
Subsidiaries (except to the extent such Equity Interests are required by
the laws of the jurisdiction of incorporation of such Loan Party or
Subsidiary, as applicable, to be held by any third party solely for the
purpose of complying with the laws for the incorporation or formation of
such Loan Party or Subsidiary, as applicable) free and clear of all Liens,
except those created under the Collateral Documents.
(c) The execution, delivery and performance by each Loan Party of each
Loan Document to which it is or is to be a party, and the consummation of
the Transaction, are within such Loan Party's corporate powers, have been
duly authorized by all necessary corporate action, and do not (i)
contravene such Loan Party's charter or bylaws, (ii) violate any law, rule,
regulation (including, without limitation, Regulation X of the Board of
Governors of the Federal Reserve System), order, writ, judgment,
injunction, decree, determination or award, (iii) conflict with or result
in the breach of, or constitute a default or require any payment to be made
under, any contract, loan agreement, indenture, mortgage, deed of trust,
lease or other instrument binding on or affecting any Loan Party, any of
its Subsidiaries or any of its properties, except for any such conflict,
breach or default that could not reasonably be expected to have a Material
Adverse Effect or (iv) except for the Liens created under the Loan
Documents, result in or require the creation or imposition of any Lien upon
or with respect to any of the properties of any Loan Party or any of its
Subsidiaries. No Loan Party or any of its Subsidiaries is in violation of
any such law, rule, regulation, order, writ, judgment, injunction, decree,
determination or award or in breach of any such contract, loan agreement,
indenture, mortgage, deed of trust, lease or other instrument, the
violation or breach of which could be reasonably expected to have a
Material Adverse Effect.
(d) No authorization or approval or other action by, and no notice to
or filing with, any governmental authority or regulatory body or any other
third party is required for (i) the due execution, delivery, recordation,
filing or performance by any Loan Party of any Loan Document to which it is
or is to be a party, or for the consummation of the Transaction, (ii) the
grant by any Loan Party of the Liens granted by it pursuant to the
Collateral Documents, (iii) the perfection or maintenance of the Liens
created under the Collateral Documents (including the first priority nature
thereof) or (iv) the exercise by any Agent or any Lender Party of its
rights under the Loan Documents or the remedies in respect of the
Collateral pursuant to the Collateral Documents, except for the
authorizations, approvals, actions, notices and filings listed on Schedule
4.01(d) hereto, all of which have been duly obtained, taken, given or made
and are in full force and effect. All applicable waiting periods in
connection with the Transaction have expired without any action having been
taken by any competent authority restraining, preventing or imposing
materially adverse conditions upon the Transaction or the rights of the
Loan Parties or their
45
Subsidiaries freely to transfer or otherwise dispose of, or to create any
Lien on, any properties now owned or hereafter acquired by any of them.
(e) This Agreement has been, and each other Loan Document when
delivered hereunder will have been, duly executed and delivered by each
Loan Party party thereto. This Agreement is, and each other Loan Document
when delivered hereunder will be, the legal, valid and binding obligation
of each Loan Party party thereto, enforceable against such Loan Party in
accordance with its terms.
(f) There is no action, suit, investigation, litigation or proceeding
affecting any Loan Party or any of its Subsidiaries, including any
Environmental Action, pending or threatened before any court, governmental
agency or arbitrator that (i) could be reasonably expected to have a
Material Adverse Effect (other than the Disclosed Litigation) or (ii)
purports to affect the legality, validity or enforceability of any Loan
Document or the consummation of the Transaction, and there has been no
material adverse change in the status, or financial effect on any Loan
Party or any of its Subsidiaries, of the Disclosed Litigation from that
described on Schedule 4.01(f) hereto.
(g) The Consolidated balance sheet of the Borrower and its
Subsidiaries as at December 31, 2000, and the related Consolidated
statement of income and Consolidated statement of cash flows of the
Borrower and its Subsidiaries for the fiscal year then ended, accompanied
by an unqualified opinion of Ernst & Young LLP, independent public
accountants, copies of which have been furnished to each Lender Party,
fairly present the Consolidated financial condition of the Borrower and its
Subsidiaries as at such date and the Consolidated results of operations of
the Borrower and its Subsidiaries for the period ended on such date, all in
accordance with generally accepted accounting principles applied on a
consistent basis, and since December 31, 2000, there has been no Material
Adverse Change.
(h) The Consolidated pro forma estimated balance sheet of the Borrower
and its Restricted Subsidiaries as at June 30, 2001, and the related
Consolidated pro forma estimated statements of income and cash flows of the
Borrower and its Restricted Subsidiaries for the six months then ended,
certified by the Chief Financial Officer of the Borrower, copies of which
have been furnished to each Lender Party, were prepared in good faith on
the basis of the assumptions stated therein, which assumptions were fair in
light of the conditions existing at the time of delivery thereof, and
represented, at the time of delivery, the Borrower's best estimate of the
Consolidated pro forma financial condition of the Borrower and its
Restricted Subsidiaries as at such date (subject to usual year-end
adjustments) and the Consolidated pro forma results of operations of the
Borrower and its Restricted Subsidiaries for the period ended on such date,
in each case giving effect to the Transaction, all in accordance with GAAP.
(i) The Consolidated forecasted balance sheet, statement of income and
statement of cash flows of the Borrower and its Restricted Subsidiaries
delivered to the Lender Parties pursuant to Section 3.01(a)(xi) or 5.03
were prepared in good faith on the basis of the assumptions stated therein,
which assumptions were fair in light of the conditions existing at the time
of delivery of such forecasts, and represented, at the time of delivery,
the Borrower's best estimate of its future financial performance.
(j) Neither the Information Memorandum nor any other information,
exhibit or report furnished by or on behalf of any Loan Party to any Agent
or any Lender Party in connection with the negotiation and syndication of
the Loan Documents or pursuant to the terms of the Loan Documents contained
any untrue statement of a material fact or omitted to state a material fact
necessary to make the statements made therein not misleading.
46
(k) The Borrower is not engaged in the business of extending credit
for the purpose of purchasing or carrying Margin Stock, and no proceeds of
any Advance or drawings under any Letter of Credit will be used to purchase
or carry any Margin Stock or to extend credit to others for the purpose of
purchasing or carrying any Margin Stock.
(l) Neither any Loan Party nor any of its Subsidiaries is an
"investment company", or an "affiliated person" of, or "promoter" or
"principal underwriter" for, an "investment company", as such terms are
defined in the Investment Company Act of 1940, as amended. Neither any Loan
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", as such terms are
defined in the Public Utility Holding Company Act of 1935, as amended.
(m) Neither the making of any Advances, nor the issuance or renewal of
any Letters of Credit, nor the application of the proceeds or repayment
thereof by the Borrower, nor the consummation of the other transactions
contemplated by the Loan Documents, will violate any provision of any Act
referred to in Section 4.01(l) above or any rule, regulation or order of
the Securities and Exchange Commission thereunder.
(n) Each Loan Party (other than any Immaterial Restricted Subsidiary)
is, individually and together with its Subsidiaries (other than any
Immaterial Restricted Subsidiary), Solvent.
(o) (i) Set forth on Schedule 4.01(o) hereto is a complete and
accurate list of all Plans, Multiemployer Plans and Welfare Plans.
(ii) No ERISA Event has occurred or is reasonably expected to occur
with respect to any Plan that has resulted in or is reasonably expected to
result in a material liability of any Loan Party or any ERISA Affiliate.
(iii) Schedule B (Actuarial Information) to the most recent annual
report (Form 5500 Series) for each Plan, copies of which have been filed
with the Internal Revenue Service and furnished to the Lender Parties, is
complete and accurate and fairly presents the funding status of such Plan,
and since the date of such Schedule B there has been no material adverse
change in such funding status.
(iv) Neither any Loan Party nor any ERISA Affiliate has incurred or is
reasonably expected to incur any Withdrawal Liability to any Multiemployer
Plan.
(v) Neither any Loan Party nor any ERISA Affiliate has been notified
by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in
reorganization or has been terminated, within the meaning of Title IV of
ERISA, and no such Multiemployer Plan is reasonably expected to be in
reorganization or to be terminated, within the meaning of Title IV of
ERISA.
(p) (i) Except as otherwise set forth on Part I of Schedule 4.01(p)
hereto, the operations and properties of each Loan Party and each of its
Subsidiaries comply in all material respects with all applicable
Environmental Laws and Environmental Permits, all past non-compliance with
such Environmental Laws and Environmental Permits has been resolved without
ongoing obligations or costs, and no circumstances exist that could be
reasonably expected to (A) form the basis of an Environmental Action
against any Loan Party or any of its Subsidiaries or any of their
properties that could be expected to have a Material Adverse Effect or (B)
cause any such property to be subject to any restrictions on ownership,
occupancy, use or transferability under any Environmental Law.
47
(ii) Except as otherwise set forth on Part II of Schedule 4.01(p)
hereto, none of the properties currently or formerly owned or operated by
any Loan Party or any of its Subsidiaries is listed or proposed for listing
on the NPL or on the CERCLIS or any analogous foreign, state or local list;
there are no surface impoundments, septic tanks, pits, sumps or lagoons in
which Hazardous Materials are being or have been treated, stored or
disposed on any property currently owned or operated by any Loan Party or
any of its Subsidiaries or, to the best of its knowledge, on any property
formerly owned or operated by any Loan Party or any of its Subsidiaries;
and Hazardous Materials have not been released, discharged or disposed of
on any property currently or formerly owned or operated by any Loan Party
or any of its Subsidiaries requiring remediation under any Environmental
Law.
(iii) Except as otherwise set forth on Part III of Schedule 4.01(p)
hereto, neither any Loan Party nor any of its Subsidiaries is undertaking,
and has not completed, either individually or together with other
potentially responsible parties, any investigation or assessment or
remedial or response action relating to any actual or threatened release,
discharge or disposal of Hazardous Materials at any site, location or
operation, either voluntarily or pursuant to the order of any governmental
or regulatory authority or the requirements of any Environmental Law; and
all Hazardous Materials generated, used, treated, handled or stored at, or
transported to or from, any property currently or to their knowledge
formerly owned or operated by any Loan Party or any of its Subsidiaries
have been disposed of in a manner not reasonably expected to result in
material liability to any Loan Party or any of its Subsidiaries.
(q) (i) Neither any Loan Party nor any of its Subsidiaries is party to
any tax sharing agreement other than a tax sharing agreement in form and
substance satisfactory to the Administrative Agent.
(ii) Each Loan Party and each of its Subsidiaries and Affiliates has
filed, has caused to be filed or has been included in all tax returns
(Federal, state, local and foreign) required to be filed and has paid all
taxes shown thereon to be due, together with applicable interest and
penalties, except to the extent that in the aggregate the failure to so
file or to pay such taxes could not be reasonably expected to have a
Material Adverse Effect.
(iii) Set forth on Part I of Schedule 4.01(q) hereto is a complete and
accurate list, as of the Effective Date, of each taxable year of each Loan
Party and each of its Subsidiaries and Affiliates for which Federal income
tax returns have been filed and for which the expiration of the applicable
statute of limitations for assessment or collection has not occurred by
reason of extension or otherwise (an "OPEN YEAR").
(iv) As of the Effective Date, there are no unpaid adjustments to the
Federal income tax liability of the Loan Parties and their Subsidiaries and
Affiliates proposed by the Internal Revenue Service with respect to Open
Years that in the aggregate could be reasonably expected to have a Material
Adverse Effect. No issues have been raised by the Internal Revenue Service
in respect of Open Years that, in the aggregate, could be reasonably
expected to have a Material Adverse Effect.
(v) As of the Effective Date, there are no unpaid adjustments to the
state, local and foreign tax liability of the Loan Parties and their
Subsidiaries and Affiliates proposed by all state, local and foreign taxing
authorities (other than amounts arising from adjustments to Federal income
tax returns) that in the aggregate could be reasonably expected to have a
Material Adverse Effect. No issues have been raised by such taxing
authorities that, in the aggregate, could be reasonably expected to have a
Material Adverse Effect.
48
(r) Set forth on Schedule 4.01(r) hereto is a complete and accurate
list of all Existing Debt as of the Effective Date (other than Surviving
Debt), showing as of the Effective Date the obligor and the principal
amount outstanding thereunder.
(s) Set forth on Schedule 4.01(s) hereto is a complete and accurate
list of all Surviving Debt, showing as of the Effective Date the obligor
and the principal amount outstanding thereunder, the maturity date thereof
and the amortization schedule therefor.
(t) Set forth on Schedule 4.01(t) hereto is a complete and accurate
list of all Liens (other than Permitted Liens and any other Liens, both
individually and in the aggregate, that are immaterial in nature) as of the
Effective Date on the property or assets of any Loan Party or any of its
Subsidiaries, showing as of the Effective Date the lienholder thereof, the
principal amount of the obligations secured thereby and the property or
assets of such Loan Party or such Subsidiaries subject thereto.
(u) Set forth on Schedule 4.01(u) hereto is a complete and accurate
list of all real property, the aggregate fair market value of which exceeds
$1,000,000, owned by any Loan Party or any of its Domestic Subsidiaries as
of the Effective Date, showing as of the Effective Date the street address,
county or other relevant jurisdiction, state, record owner and book and
estimated fair market value thereof. Each Loan Party or such Subsidiary has
good, marketable and insurable fee simple title to such real property, free
and clear of all Liens, other than Liens created or permitted by the Loan
Documents.
(v) Set forth on Schedule 4.01(v) hereto is a complete and accurate
list of all Investments held by any Loan Party or any of its Subsidiaries
on the Effective Date, showing as of the Effective Date the amount, obligor
or issuer and maturity, if any, thereof.
(w) Set forth on Schedule 4.01(w) hereto is a complete and accurate
list as of the Effective Date of all patents, registered trademarks, trade
names, registered service marks and registered copyrights, and all
applications therefor and licenses thereof, of each Loan Party or any of
its Subsidiaries, in each case, the subject of the Security Agreement,
showing as of the Effective Date the jurisdiction in which registered, the
registration number and the date of registration.
ARTICLE V
COVENANTS OF THE BORROWER
SECTION 5.01. Affirmative Covenants So long as any Advance or any other
Obligation of any Loan Party under any Loan Document shall remain unpaid, any
Letter of Credit shall be outstanding or any Lender Party shall have any
Commitment hereunder, the Borrower will:
(a) Compliance with Laws, Etc. Comply, and cause each of its
Restricted Subsidiaries to comply with all applicable laws, rules,
regulations and orders, such compliance to include, without limitation,
compliance with ERISA and the Racketeer Influenced and Corrupt
Organizations Chapter of the Organized Crime Control Act of 1970, except
where a failure to comply could not reasonably be expected to have a
Material Adverse Effect.
(b) Payment of Taxes, Etc. Pay and discharge, and cause each of its
Restricted Subsidiaries to pay and discharge, before the same shall become
delinquent, (i) all taxes, assessments and governmental charges or levies
imposed upon it or upon its property and (ii) all lawful claims that, if
unpaid, might by law become a Lien upon its property; provided, however,
that neither the Borrower nor any of its Restricted Subsidiaries shall be
required to pay or
49
discharge any such tax, assessment, charge or claim that is being contested
in good faith and by proper proceedings and as to which appropriate
reserves are being maintained, unless and until any Lien resulting
therefrom attaches to its property and the creditor in respect thereof
becomes entitled to enforce such Lien against such property.
(c) Compliance with Environmental Laws. Comply, and cause each of its
Restricted Subsidiaries and all lessees and other Persons operating or
occupying its properties to comply, in all material respects, with all
applicable Environmental Laws and Environmental Permits; obtain and renew,
and cause each of its Restricted Subsidiaries to obtain and renew, all
Environmental Permits necessary for its operations and properties; and
conduct and cause each of its Restricted Subsidiaries to conduct to the
extent required by any Environmental Law, any investigation, study,
sampling, testing, cleanup, removal, remedial or other action necessary to
remove and clean up all Hazardous Materials from any of its properties, in
accordance with the requirements of all Environmental Laws; provided,
however, that neither the Borrower nor any of its Restricted Subsidiaries
shall be required to undertake any such cleanup, removal, remedial or other
action to the extent that its obligation to do so is being contested in
good faith and by proper proceedings and appropriate reserves are being
maintained with respect to such circumstances.
(d) Maintenance of Insurance. Maintain, and cause each of its
Restricted Subsidiaries to maintain, insurance with responsible and
reputable insurance companies or associations in such amounts and covering
such risks as is usually carried by companies engaged in similar businesses
and owning similar properties in the same general areas in which the
Borrower or such Restricted Subsidiary operates.
(e) Preservation of Corporate Existence, Etc. Preserve and maintain,
and cause each of its Restricted Subsidiaries to preserve and maintain, its
existence, legal structure, legal name, rights (charter and statutory),
permits, licenses, approvals, privileges and franchises; provided, however,
that the Borrower and each of its Restricted Subsidiaries may consummate
any merger or consolidation permitted under Section 5.02(d); and provided
further that neither the Borrower nor any of its Restricted Subsidiaries
shall be required to preserve any right, permit, license, approval,
privilege or franchise if the Board of Directors of the Borrower or such
Restricted Subsidiary shall determine that the preservation thereof is no
longer desirable in the conduct of the business of the Borrower or such
Restricted Subsidiary, as the case may be, and that the loss thereof is not
disadvantageous in any material respect to the Borrower, such Restricted
Subsidiary or the Lender Parties.
(f) Visitation Rights. At any reasonable time and from time to time
upon reasonable prior notice to the Borrower, permit any of the Agents or
any of the Lender Parties, or any agents or representatives thereof, to
examine and make copies of and abstracts from the records and books of
account of, and visit the properties of, the Borrower and any of its
Restricted Subsidiaries, and to discuss the affairs, finances and accounts
of the Borrower and any of its Restricted Subsidiaries with any of their
officers or directors and, with the prior consent of the Borrower (not to
be unreasonably withheld), with their independent certified public
accountants; provided, however, that so long as no Default shall have
occurred and be continuing, no Lender Party may make more than two such
requests in any calendar year.
(g) Keeping of Books. Keep, and cause each of its Restricted
Subsidiaries to keep, proper books of record and account, in which full and
correct entries shall be made of all financial transactions and the assets
and business of the Borrower and each of its Restricted Subsidiaries in
accordance with generally accepted accounting principles in effect from
time to time.
50
(h) Maintenance of Properties, Etc. Maintain and preserve, and cause
each of its Restricted Subsidiaries to maintain and preserve, all of its
properties that are used or useful in the conduct of its business in good
working order and condition, ordinary wear and tear excepted.
(i) Transactions with Affiliates. Conduct, and cause each of its
Restricted Subsidiaries to conduct, all transactions otherwise permitted
under the Loan Documents with any of their Affiliates on terms that are
fair and reasonable and no less favorable to the Borrower or such
Restricted Subsidiary than it could reasonably be expected to obtain in a
comparable arm's-length transaction with a Person not an Affiliate.
(j) Covenant to Guarantee Obligations and Give Security. Upon (x) the
reasonable request of the Administrative Agent following the occurrence and
during the continuance of a Default, (y) the formation or acquisition of
any new direct or indirect Subsidiaries by the Borrower (other than (1) any
Subsidiary that is a CFC or (2) a Subsidiary (other than a Domestic
Subsidiary) that is held directly or indirectly by a CFC or (3) an
Unrestricted Subsidiary or (4) Softbank) or (z) the acquisition of any
property (excluding, however, any real property owned with a fair market
value together with the fair market value of all other real property owned
by the Borrower and its Domestic Subsidiaries at such time of less than
$1,000,000) by any Loan Party, and such property, in the judgment of the
Collateral Agent, shall not already be subject to a perfected first
priority security interest in favor of the Collateral Agent for the benefit
of the Secured Parties, then the Borrower shall, in each case at the
Borrower's expense:
(i) in connection with the formation or acquisition of a
Subsidiary that is not (A) a CFC or (B) a Subsidiary (other than a
Domestic Subsidiary) that is held, directly or indirectly by a CFC or
(C) an Unrestricted Subsidiary, within 10 days after such formation or
acquisition, cause each such Subsidiary, and cause each direct and
indirect parent (not being a person of the kind described in sub
clauses (A), (B) or (C) above) of such Subsidiary (if it has not
already done so), to duly execute and deliver to the Administrative
Agent a guaranty supplement in substantially the form of Exhibit G,
guaranteeing the other Loan Parties' obligations under the Loan
Documents,
(ii) within 10 days after such request, formation or acquisition,
furnish to the Collateral Agent a description of the real and personal
properties of the Loan Parties in detail reasonably satisfactory to
the Collateral Agent,
(iii) within 15 days after such request, formation or
acquisition, duly execute and deliver, and cause each such Subsidiary
and each such parent (if it has not already done so) to duly execute
and deliver, to the Administrative Agent mortgages, pledges,
assignments, security agreement supplements and other security
agreements, as specified by and in form and substance reasonably
satisfactory to the Administrative Agent, securing payment of all the
Obligations of the applicable Loan Party, such Subsidiary or such
parent, as the case may be, under the Loan Documents and constituting
Liens on all such properties (but excluding any real property owned by
such Subsidiary with a fair market value together with the fair market
value of all other real property owned by the Borrower and its
Domestic Subsidiaries of less than $1,000,000); provided, however,
that in the case of (A) clause (y) above, the stock of any Domestic
Subsidiary held by a CFC shall not be pledged and (B) clause (z)
above, if such new property is Equity Interests in a CFC, only 65% of
such Equity Interests shall be pledged in favor of the Secured
Parties,
(iv) within 30 days after such request, formation or acquisition,
take, and cause such Subsidiary or such parent to take, whatever
action (including, without limitation, the recording of mortgages, the
filing of Uniform Commercial Code financing statements, the giving of
notices and the endorsement of notices on title documents) may
51
be reasonably necessary or advisable in the opinion of the
Administrative Agent to vest in the Collateral Agent (or in any
representative of the Collateral Agent designated by it) valid and
subsisting Liens on the properties purported to be subject to the
mortgages, pledges, assignments, security agreement supplements and
security agreements delivered pursuant to this Section 5.01(j),
enforceable against all third parties in accordance with their terms,
(v) within 60 days after such request, formation or acquisition,
deliver to the Administrative Agent, upon the reasonable request of
the Administrative Agent in its sole discretion, a signed copy of a
favorable opinion, addressed to the Administrative Agent and the other
Secured Parties, of counsel for the Loan Parties acceptable to the
Administrative Agent as to the matters contained in clauses (i), (iii)
and (iv) above, as to such guaranties, guaranty supplements,
mortgages, pledges, assignments, security agreement supplements and
security agreements being legal, valid and binding obligations of each
Loan Party party thereto enforceable in accordance with their terms,
as to the matters contained in clause (iv) above, as to such
recordings, filings, notices, endorsements and other actions being
sufficient to create valid perfected Liens on such properties, and as
to such other matters as the Administrative Agent may reasonably
request (provided that any such opinion shall only be required to be
delivered in respect of material assets or any material Subsidiary),
(vi) as soon as reasonably practicable after such request,
formation or acquisition, deliver, upon the request of the Collateral
Agent in its sole discretion, to the Collateral Agent with respect to
each parcel of real property owned by the entity and that is the
subject of a Mortgage required to be provided pursuant to clause (iii)
above and that is the subject of such request, formation or
acquisition title reports, surveys and engineering, soils and other
reports, and environmental assessment reports, each in scope, form and
substance satisfactory to the Collateral Agent, provided, however,
that to the extent that any Loan Party shall have otherwise received
any of the foregoing items with respect to such real property, such
items shall, promptly after the receipt thereof, be delivered to the
Collateral Agent, and
(vii) at any time and from time to time, as soon as reasonably
practicable, execute and deliver any and all further instruments and
documents and take all such other action as the Administrative Agent
may reasonably deem necessary in obtaining the full benefits of, or in
perfecting and preserving the Liens of, such guaranties, mortgages,
pledges, assignments, security agreement supplements and security
agreements.
(k) Further Assurances. (i) Promptly upon request by any Agent, or any
Lender Party through the Administrative Agent, correct, and cause each of
its Restricted Subsidiaries promptly to correct, any material defect or
error that may be discovered in any Loan Document or in the execution,
acknowledgment, filing or recordation thereof, and
(ii) Promptly upon request by any Agent, or any Lender Party through
the Administrative Agent, do, execute, acknowledge, deliver, record,
re-record, file, re-file, register and re-register any and all such further
acts, deeds, conveyances, pledge agreements, mortgages, deeds of trust,
trust deeds, assignments, financing statements and continuations thereof,
termination statements, notices of assignment, transfers, certificates,
assurances and other instruments as any Agent, or any Lender Party through
the Administrative Agent, may reasonably require from time to time in order
to (A) carry out more effectively the purposes of the Loan Documents, (B)
to the fullest extent permitted by applicable law, subject any Loan Party's
or any Restricted Subsidiaries' properties, assets, rights or interests to
the Liens now or hereafter intended to be covered by any of the Collateral
Documents, (C) perfect and maintain the validity,
52
effectiveness and priority of any of the Collateral Documents and any of
the Liens intended to be created thereunder and (D) assure, convey, grant,
assign, transfer, preserve, protect and confirm more effectively unto the
Secured Parties the rights granted or now or hereafter intended to be
granted to the Secured Parties under any Loan Document or under any other
instrument executed in connection with any Loan Document to which any Loan
Party or any Restricted Subsidiaries is or is to be a party, and cause each
of its Restricted Subsidiaries to do so.
(l) Intentionally Omitted.
(m) Compliance with Terms of Leaseholds. Make all payments and
otherwise perform all obligations in respect of all leases of real property
to which the Borrower or any of its Restricted Subsidiaries is a party,
keep such leases in full force and effect and not allow such leases to
lapse or be terminated or any rights to renew such leases to be forfeited
or cancelled, notify the Administrative Agent of any default by any party
with respect to such leases and cooperate with the Administrative Agent in
all respects to cure any such default, and cause each of its Restricted
Subsidiaries to do so, except, in any case, where the failure to do so,
either individually or in the aggregate, could not be reasonably expected
to have a Material Adverse Effect.
(n) Trade Show Space. Procure that, in respect of each COMDEX/Fall
Trade Show to be organized by the Borrower or any of its Subsidiaries, that
the Borrower or such Subsidiary, as the case may be, has at least one year
prior to the scheduled date of such trade show, an executed written
commitment for sufficient space to hold such trade show in a venue that is,
in light of the nature of such trade show, suitable for the holding of such
trade show. The Borrower shall, upon request by the Agent, provide the
Agent with a copy of such written commitment.
(o) Conditions Subsequent.
(i) Within 60 days after the Initial Extension of Credit, deliver
to the Administrative Agent the following:
(A) a pledge agreement executed by Key3Media Events in form
and substance satisfactory to the Administrative Agent pledging
to the Collateral Agent for the benefit of the Secured Parties
the Pledged Shares referred to therein of SOFTBANK Forums Japan,
Inc., together with certificates representing such Pledged Shares
accompanied by undated stock powers executed in blank; and
(B) an amended and restated pledge agreement executed by
Key3Media Events in form and substance satisfactory to the
Administrative Agent pledging to the Collateral Agent for the
benefit of the Secured Parties the Pledged Shares referred to
therein of Key3Media S.A. together with (1) certificates
representing such Pledged Shares accompanied by undated stock
powers in blank and (2) a favorable opinion of Xxxx & Associates
in form and substance satisfactory to the Administrative Agent
with respect to such pledge and as to such other matters as the
Administrative Agent may request related thereto.
(ii) If requested by the Administrative Agent, deliver to the
Administrative Agent a favorable opinion of Xxxxxxxx & Xxxxxxxx
supplementing the opinion delivered pursuant to Section 3.01(xii) as
to the perfection of certain security interest granted under the
Security Agreement and as to such other matters as the Administrative
Agent may request.
53
(iii) Promptly after the Initial Extension of Credit, each of
Key3 Media Advertising, Inc. and Key3Media Art Events, Inc. (the
"ADDITIONAL GUARANTORS") shall execute and deliver to the
Administrative Agent a Guaranty Supplement and a Security Agreement
Supplement, together with the documents set forth in Sections
3.01(a)(iii), (iv), (v), (vi) and (vii) with respect to each
Additional Guarantor and the transaction hereunder and such other
documents and instruments as may be requested by the Administrative
Agent.
SECTION 5.02. Negative Covenants. So long as any Advance or any other
Obligation of any Loan Party under any Loan Document shall remain unpaid, any
Letter of Credit shall be outstanding or any Lender shall have any Commitment
hereunder, the Borrower will not, at any time:
(a) Liens, Etc. Create, incur, assume or suffer to exist, or
permit any of its Restricted Subsidiaries to create, incur, assume or
suffer to exist, any Lien on or with respect to any of its properties
of any character (including, without limitation, accounts) whether now
owned or hereafter acquired, or sign or file or suffer to exist, or
permit any of its Restricted Subsidiaries to sign or file or suffer to
exist, under the Uniform Commercial Code of any jurisdiction, a
financing statement that names the Borrower or any of its Restricted
Subsidiaries as debtor, or sign or suffer to exist, or permit any of
its Restricted Subsidiaries to sign or suffer to exist, any security
agreement authorizing any secured party thereunder to file such
financing statement, or assign, or permit any of its Restricted
Subsidiaries to assign, any accounts or other right to receive income,
except:
(i) Liens created under the Loan Documents;
(ii) Permitted Liens;
(iii) Liens existing on the date hereof and described on
Schedule 4.01(t) hereto;
(iv) purchase money Liens upon or in real property or
equipment acquired or held by the Borrower or any of its
Restricted Subsidiaries in the ordinary course of business to
secure the purchase price of such property or equipment or to
secure Debt incurred solely for the purpose of financing the
acquisition, construction or improvement of any such property or
equipment to be subject to such Liens, or Liens existing on any
such property or equipment at the time of acquisition (other than
any such Liens created in contemplation of such acquisition that
do not secure the purchase price), or extensions, renewals or
replacements of any of the foregoing for the same or a lesser
amount; provided, however, that no such Lien shall extend to or
cover any property other than the property or equipment being
acquired, constructed or improved, and no such extension, renewal
or replacement shall extend to or cover any property not
theretofore subject to the Lien being extended, renewed or
replaced; and provided further that the aggregate principal
amount of the Debt secured by Liens permitted by this clause (iv)
shall not exceed the amount permitted under Section 5.02(b)(ii)
at any time outstanding;
(v) Liens arising in connection with Capitalized Leases
permitted under Section 5.02(b)(iii); provided that no such Lien
shall extend to or cover any Collateral or assets other than the
assets subject to such Capitalized Leases;
(vi) other Liens affecting property with an aggregate fair
value not to exceed $10,000,000, provided that no such Lien shall
extend to cover any Collateral; and
54
(vii) the replacement, extension or renewal of any Lien
permitted by clause (iii) above upon or in the same property
theretofore subject thereto or the replacement, extension or
renewal (without increase in the amount or Change in any direct
or contingent obligor) of the Debt secured thereby.
(b) Debt. Create, incur, assume or suffer to exist, or permit any
of its Restricted Subsidiaries to create, incur, assume or suffer to
exist, any Debt, except:
(i) in the case of the Borrower and its Restricted
Subsidiaries, Debt under the Loan Documents, including, without
limitation, Debt permitted under Section 2.17,
(ii) in the case of the Borrower, Debt secured by Liens
permitted by Section 5.02(a)(iv) not to exceed in the aggregate
$20,000,000 at any time outstanding,
(iii) in the case of the Borrower, Capitalized Leases not to
exceed in the aggregate $10,000,000 at any time outstanding,
(iv) in the case of the Borrower and its Restricted
Subsidiaries, the Surviving Debt,
(v) in the case of the Borrower and its Restricted
Subsidiaries, Debt owed to the Borrower or any other Loan Party
that constitutes Pledged Debt,
(vi) in the case of the Borrower, the Subordinated Notes to
be issued simultaneously with the Initial Extension of Credit,
(vii) in the case of the Borrower, Subordinated Debt in an
aggregate amount not to exceed $300,000,000, and
(viii) in the case of the Borrower, unsecured Debt incurred
in the ordinary course of business for the deferred purchase
price of property or services, maturing within one year from the
date created, and aggregating, on a Consolidated basis, not more
than $5,000,000 at any one time outstanding.
(c) Change in Nature of Business. Make, or permit any of its
Restricted Subsidiaries to make, any material change in the nature of
its business as carried on by the Borrower and its Restricted
Subsidiaries as at the date hereof, namely trade shows and activities
related thereto.
(d) Mergers, Etc. Merge into or consolidate with any Person or
permit any Person to merge into it, or permit any of its Restricted
Subsidiaries to do so, except that:
(i) any Restricted Subsidiary of the Borrower may merge into
or consolidate with any other Restricted Subsidiary, provided
that, in the case of any such merger or consolidation, the
Borrower shall not own, either directly or indirectly, Equity
Interests in the Person formed by such merger or consolidation in
an amount (expressed as a percentage of the total Equity
Interests of such Person) that is less than the higher amount
(expressed as a percentage) of Equity Interests owned, directly
or indirectly, by the Borrower in each such Restricted Subsidiary
immediately prior to such merger or consolidation, provided
further that, in the case of any such merger or consolidation to
which a Guarantor is a party, the Person formed by such merger or
consolidation shall be a Guarantor;
(ii) in connection with any sale or other disposition
permitted under Section 5.02(e) (other than clause (i) thereof),
any Restricted Subsidiary of the Borrower may
55
merge into or consolidate with any other Person or permit any
other Person to merge into or consolidate with it; and
(iii) in connection with any acquisition permitted under
Section 5.02(f)(viii), any Restricted Subsidiary of the Borrower
may merge into or Consolidate with any other Person or permit any
other Person to merge into or consolidate with it; provided that
the Person surviving such merger shall be a wholly owned
Restricted Subsidiary and a Guarantor;
provided, however, that in each case, immediately after giving effect
thereto, no event shall occur and be continuing that constitutes a
Default.
(e) Sales, Etc., of Assets. Sell, lease, transfer or otherwise
dispose of, or permit any of its Restricted Subsidiaries to sell,
lease, transfer or otherwise dispose of, any assets, or grant any
option or other right to purchase, lease or otherwise acquire any
assets other than inventory to be sold in the ordinary course of its
business, except:
(i) in a transaction authorized by Section 5.02(d) (other
than subsection (ii) thereof); and
(ii) sales of assets for cash and for fair value in an
aggregate amount not to exceed $5,000,000 in any Fiscal Year,
provided that in the case of sales of assets pursuant to clause (ii)
above, the Borrower shall, on the date of receipt by the Borrower or
any of its Restricted Subsidiaries of the Net Cash Proceeds from such
sale, prepay the Advances pursuant to Section 2.06(b), as specified
therein.
(f) Investments in Other Persons. Make or hold, or permit any of
its Restricted Subsidiaries to make or hold, any Investment in any
Person, except:
(i) equity Investments by the Borrower and its Restricted
Subsidiaries outstanding on the date hereof and additional future
investments in Loan Parties;
(ii) loans and advances to employees in the ordinary course
of the business of the Borrower and its Restricted Subsidiaries
as presently conducted in an aggregate principal amount not to
exceed $2,500,000 at any time outstanding;
(iii) Investments by the Borrower and its Restricted
Subsidiaries in Cash Equivalents;
(iv) Investments existing on the date hereof and described
on Schedule 4.01(v) hereto;
(v) Investments consisting of intercompany Debt permitted
under Section 5.02(b)(iv);
(vi) Investments consisting of Equity Interests in
"start-up" companies received by the Borrower and its Restricted
Subsidiaries in exchange for floor space or show promotion and
sponsorship activities at shows or related to shows of the
Borrower and its Restricted Subsidiaries;
(vii) Investments by the Borrower in Hedge Agreements;
56
(viii) equity Investments by the Borrower or any Restricted
Subsidiary of the Borrower in any newly organized or acquired
Subsidiary in an aggregate amount not exceeding $350,000,000,
provided that with respect to Investments made under this clause
(viii) (1) immediately before and after giving effect thereto, no
Default shall have occurred and be continuing or would result
therefrom, (2) any company or business acquired or invested in
pursuant to this clause (viii) shall be in the same line of
business as the business of the Borrower or any of the
Subsidiaries (namely, trade shows and activities related thereto)
and (3) immediately after giving effect to the acquisition of a
company or business pursuant to this clause (viii), the Borrower
shall be in pro forma compliance with the covenants contained in
Section 5.04, calculated based on the financial statements most
recently delivered to the Lenders pursuant to Section 5.03 and as
though such acquisition had occurred at the beginning of the
four-quarter period covered thereby, as evidenced by a
certificate of the Chief Financial Officer of the Borrower
delivered to the Lenders demonstrating such compliance; and
(ix) Investments in Unrestricted Subsidiaries, joint
ventures and minority interests; provided, however, that the
aggregate amount of such Investments, together with the aggregate
amount of cash dividends and distributions made pursuant to
Section 5.02(g)(iii), shall not exceed the sum of (x) $20,000,000
and (y) the Net Cash Proceeds from the issuance of Equity
Interests by the Borrower and the Restricted Subsidiaries to any
Person.
(g) Restricted Payments. Declare or pay any dividends, purchase,
redeem, retire, defease or otherwise acquire for value any of its Equity
Interests now or hereafter outstanding, return any capital to its
stockholders, partners or members (or the equivalent Persons thereof) as
such, make any distribution of assets, Equity Interests, obligations or
securities to its stockholders, partners or members (or the equivalent
Persons thereof) as such or issue or sell any Equity Interests or accept
any capital contributions, or permit any of its Restricted Subsidiaries to
do any of the foregoing, or permit any of its Restricted Subsidiaries to
purchase, redeem, retire, defease or otherwise acquire for value any Equity
Interests in the Borrower or to issue or sell any Equity Interests therein,
except that, so long as no Default shall have occurred and be continuing at
the time of any action described in clause (i) or (ii) below or would
result therefrom:
(i) the Borrower may declare and pay dividends and distributions
payable only in common stock of the Borrower, and
(ii) any Restricted Subsidiary of the Borrower may (A) declare
and pay cash dividends to the Borrower, (B) declare and pay cash
dividends to any other Loan Party of which it is a Restricted
Subsidiary and (C) accept capital contributions from its parent to the
extent permitted under Section 5.02(f)(i).
(h) Lease Obligations. Create, incur, assume or suffer to exist, or
permit any of its Restricted Subsidiaries to create, incur, assume or
suffer to exist, any obligations as lessee (i) for the rental or hire of
real or personal property in connection with any sale and leaseback
transaction, or (ii) for the rental or hire of other real or personal
property of any kind under leases or agreements to lease (excluding,
however, Capitalized Leases) having an original term of one year or more
that would cause the direct and contingent liabilities of the Borrower and
its Restricted Subsidiaries, on a Consolidated basis, in respect of all
such obligations to exceed $15,000,000 payable in any period of 12
consecutive months.
(i) Amendments of Constitutive Documents. Amend, or permit any of its
Restricted Subsidiaries to amend, its certificate of incorporation or
bylaws or other constitutive documents,
57
other than any amendment that would not reasonably be expected to have a
Material Adverse Effect.
(j) Accounting Changes. Make or permit, or permit any of its
Restricted Subsidiaries to make or permit, any change in (i) accounting
policies or reporting practices, except as required by generally accepted
accounting principles, or (ii) Fiscal Year.
(k) Prepayments, Etc., of Debt. Prepay, redeem, purchase, defease or
otherwise satisfy prior to the scheduled maturity thereof in any manner, or
make any payment in violation of any subordination terms of, any Debt,
except (i) the prepayment of the Advances in accordance with the terms of
this Agreement, and (ii) regularly scheduled or required repayments or
redemptions of Surviving Debt, or amend, modify or change in any manner any
term or condition of any Surviving Debt that would reasonably be expected
to have a Material Adverse Effect, or permit any of its Restricted
Subsidiaries to do any of the foregoing other than to prepay any Debt
payable to the Borrower.
(l) Intentionally Omitted.
(m) Negative Pledges. Enter into or suffer to exist, or permit any of
its Restricted Subsidiaries to enter into or suffer to exist, any agreement
prohibiting or conditioning the creation or assumption of any Lien upon any
of its property or assets except (i) if Liens are permitted in favor of the
Secured Parties or (ii) in connection with (A) any Surviving Debt, (B) any
purchase money Debt permitted by Section 5.02(b)(ii) solely to the extent
that the agreement or instrument governing such Debt prohibits a Lien on
the property acquired with the proceeds of such Debt, or (C) any
Capitalized Lease permitted by Section 5.02(b)(iii) solely to the extent
that such Capitalized Lease prohibits a Lien on the property subject
thereto.
(n) Partnerships, Etc. Become a general partner in any general or
limited partnership or joint venture, or permit any of its Restricted
Subsidiaries to do so, other than any Restricted Subsidiary of the Borrower
the sole assets of which consist of its interest in such partnership or
joint venture.
(o) Speculative Transactions. Engage, or permit any of its Restricted
Subsidiaries to engage, in any transaction involving commodity options or
futures contracts or any similar speculative transactions.
(p) Capital Expenditures. Make, or permit any of its Restricted
Subsidiaries to make, any Capital Expenditures that would cause the
aggregate amount of all such Capital Expenditures made by the Borrower and
its Restricted Subsidiaries to exceed (x) in the Fiscal Year ended December
31, 2001, $20,000,000 and (y) in each Fiscal Year thereafter, $15,000,000.
(q) Formation of Subsidiaries. Organize or invest, or permit any of
its Restricted Subsidiaries to organize or invest, in any new Subsidiary
except as permitted under Section 5.02(f).
(r) Payment Restrictions Affecting Subsidiaries. Directly or
indirectly, enter into or suffer to exist, or permit any of its Restricted
Subsidiaries to enter into or suffer to exist, any agreement or arrangement
limiting the ability of any of its Restricted Subsidiaries to declare or
pay dividends or other distributions in respect of its Equity Interests or
repay or prepay any Debt owed to, make loans or advances to, or otherwise
transfer assets to or invest in, the Borrower or any Restricted Subsidiary
of the Borrower (whether through a covenant restricting dividends, loans,
asset transfers or investments, a financial covenant or otherwise), except
(i) the Loan Documents and (ii) any agreement or instrument evidencing
Surviving Debt.
58
SECTION 5.03. Reporting Requirements. So long as any Advance or any
other Obligation of any Loan Party under any Loan Document shall remain unpaid,
any Letter of Credit shall be outstanding or any Lender shall have any
Commitment hereunder, the Borrower will furnish to the Agents and the Lender
Parties:
(a) Default Notice. As soon as possible and in any event within two
Business Days after becoming aware of the occurrence of each Default, a
statement of a Responsible Officer of the Borrower setting forth details of
such Default and the action that the Borrower has taken and proposes to
take with respect thereto.
(b) Annual Financials. As soon as available and in any event within 90
days after the end of each Fiscal Year, a copy of the annual audit report
for such year for the Borrower and its Restricted Subsidiaries, including
therein a Consolidated balance sheet of the Borrower and its Restricted
Subsidiaries as of the end of such Fiscal Year, and a Consolidated
statement of income and a Consolidated statement of cash flows of the
Borrower and its Restricted Subsidiaries for such Fiscal Year accompanied
by an opinion acceptable to the Required Lenders of independent public
accountants of recognized standing acceptable to the Required Lenders,
together with (i) a certificate of such accounting firm to the Lender
Parties stating that in the course of the regular audit of the business of
the Borrower and its Restricted Subsidiaries, which audit was conducted by
such accounting firm in accordance with generally accepted auditing
standards, such accounting firm has obtained no knowledge that a Default
has occurred and is continuing, or if, in the opinion of such accounting
firm, a Default has occurred and is continuing, a statement as to the
nature thereof, (ii) a schedule in form satisfactory to the Administrative
Agent of the computations used by such accountants in determining, as of
the end of such Fiscal Year, compliance with the covenants contained in
Section 5.04, provided that in the event of any change in GAAP used in the
preparation of such financial statements, the Borrower shall also provide,
if necessary for the determination of compliance with Section 5.04, a
statement of reconciliation conforming such financial statements to GAAP,
(iii) a certificate of the Chief Financial Officer of the Borrower stating
that no Default has occurred and is continuing or, if a default has
occurred and is continuing, a statement as to the nature thereof and the
action that the Borrower has taken and proposes to take with respect
thereto and (iv) a copy of the annual management letter prepared by such
independent public accountants.
(c) Quarterly Financials. As soon as available and in any event within
45 days after the end of each of the first three quarters of each Fiscal
Year, a Consolidated balance sheet of the Borrower and its Restricted
Subsidiaries as of the end of such quarter and a Consolidated statement of
income and a Consolidated statement of cash flows of the Borrower and its
Restricted Subsidiaries for the period commencing at the end of the
previous fiscal quarter and ending with the end of such fiscal quarter and
a Consolidated statement of income and a Consolidated statement of cash
flows of the Borrower and its Restricted Subsidiaries for the period
commencing at the end of the previous Fiscal Year and ending with the end
of such quarter, setting forth in comparative form the corresponding
figures for the corresponding date or period of the preceding Fiscal Year,
all in reasonable detail and duly certified (subject to normal year-end
audit adjustments) by the Chief Financial Officer of the Borrower as having
been prepared in accordance with GAAP, together with (i) a certificate of
said officer stating that no Default has occurred and is continuing or, if
a Default has occurred and is continuing, a statement as to the nature
thereof and the action that the Borrower has taken and proposes to take
with respect thereto and (ii) a schedule in form satisfactory to the
Administrative Agent of the computations used by the Borrower in
determining compliance with the covenants contained in Section 5.04,
provided that in the event of any change in GAAP used in the preparation of
such financial statements, the Borrower shall also provide, if necessary
for the determination of compliance with Section 5.04, a statement of
reconciliation conforming such financial statements to GAAP.
59
(d) Annual Forecasts. As soon as available and in any event no later
than 30 days after the end of each Fiscal Year, forecasts prepared by
management of the Borrower, in form satisfactory to the Administrative
Agent, of balance sheets and income statements on a quarterly basis for the
Fiscal Year following such Fiscal Year and on an annual basis for each
Fiscal Year thereafter until the Termination Date.
(e) Litigation. Promptly after the commencement thereof, notice of all
actions, suits, investigations, litigation and proceedings before any court
or governmental department, commission, board, bureau, agency or
instrumentality, domestic or foreign, affecting any Loan Party or any
Restricted Subsidiaries of the type described in Section 4.01(f), and
promptly after the occurrence thereof, notice of any material adverse
change in the status or the financial effect on any Loan Party or any
Restricted Subsidiaries of the Litigation from that described on Schedule
4.01(f) hereto.
(f) Securities Reports. Promptly after the sending or filing thereof,
copies of all proxy statements, financial statements and reports that any
Loan Party or any of its Restricted Subsidiaries sends to its stockholders,
and copies of all regular, periodic and special reports, and all
registration statements, that any Loan Party or any Restricted Subsidiaries
files with the Securities and Exchange Commission or any governmental
authority that may be substituted therefor, or with any national securities
exchange.
(g) Revenue Agent Reports. Within 30 days after receipt, copies of all
Revenue Agent Reports (Internal Revenue Service Form 886), or other written
proposals of the Internal Revenue Service, that propose, determine or
otherwise set forth positive adjustments to the Federal income tax
liability of the affiliated group (within the meaning of Section 1504(a)(1)
of the Internal Revenue Code) of which the Borrower is a member aggregating
$2,500,000 or more.
(h) ERISA. (i) ERISA Events and ERISA Reports. (A) Promptly and in any
event within 10 days after any Loan Party or any ERISA Affiliate knows or
has reason to know that any ERISA Event has occurred, a statement of the
Chief Financial Officer of the Borrower describing such ERISA Event and the
action, if any, that such Loan Party or such ERISA Affiliate has taken and
proposes to take with respect thereto and (B) on the date any records,
documents or other information must be furnished to the PBGC with respect
to any Plan pursuant to Section 4010 of ERISA, a copy of such records,
documents and information.
(ii) Plan Terminations. Promptly and in any event within two Business
Days after receipt thereof by any Loan Party or any ERISA Affiliate, copies
of each notice from the PBGC stating its intention to terminate any Plan or
to have a trustee appointed to administer any Plan.
(iii) Plan Annual Reports. Promptly and in any event within 30 days
after the filing thereof with the Internal Revenue Service, copies of each
Schedule B (Actuarial Information) to the annual report (Form 5500 Series)
with respect to each Plan.
(iv) Multiemployer Plan Notices. Promptly and in any event within five
Business Days after receipt thereof by any Loan Party or any ERISA
Affiliate from the sponsor of a Multiemployer Plan, copies of each notice
concerning (A) the imposition of Withdrawal Liability by any such
Multiemployer Plan, (B) the reorganization or termination, within the
meaning of Title IV of ERISA, of any such Multiemployer Plan or (C) the
amount of liability incurred, or that may be incurred, by such Loan Party
or any ERISA Affiliate in connection with any event described in clause (A)
or (B).
(i) Environmental Conditions. Promptly after the assertion or
occurrence thereof, notice of any Environmental Action against or of any
noncompliance by any Loan Party or any of its
60
Restricted Subsidiaries with any Environmental Law or Environmental Permit
that could (i) reasonably be expected to have a Material Adverse Effect or
(ii) cause any property described in the Mortgages to be subject to any
restrictions on ownership, occupancy, use or transferability under any
Environmental Law.
(j) Real Property. As soon as available and in any event within 30
days after the end of each Fiscal Year, a report supplementing Schedule
4.01(u) hereto, including an identification of all owned real property
disposed of by the Borrower or any of its Domestic Subsidiaries during such
Fiscal Year, a list and description (including the street address, county
or other relevant jurisdiction, state, record owner, book value and fair
market value thereof) of all real property acquired during such Fiscal Year
and a description of such other changes in the information included in such
Schedule as may be necessary for such Schedule to be accurate and complete;
provided, however, that the Borrower shall only be required to provide the
information under this Section 5.03(j) if, as at the end of such Fiscal
Year, the aggregate fair market value of all real property owned by the
Borrower and its Domestic Subsidiaries exceeds $1,000,000.
(k) Other Information. Such other information respecting the business,
condition (financial or otherwise), operations, performance or properties
of any Loan Party or any of its Subsidiaries as any Agent, or any Lender
through the Administrative Agent, may from time to time reasonably request.
SECTION 5.04. Financial Covenants. So long as any Revolving Credit
Advance or any other Obligation of any Loan Party under any Loan Document shall
remain unpaid, any Letter of Credit shall be outstanding or any Lender Party,
shall have any Commitment hereunder, the Borrower will:
(a) Leverage Ratio. Maintain at all times a Leverage Ratio not to
exceed 4.90:1.
(b) Senior Leverage Ratio. Maintain at all times a Senior Leverage
Ratio not to exceed 3.75:1.
(c) Interest Coverage Ratio. Maintain at the end of each fiscal
quarter of the Borrower an Interest Coverage Ratio of not less than the
ratio set forth below for such quarter:
QUARTER ENDING RATIO
September 30, 2001 2.00:1
December 31, 2001 2.00:1
March 31, 2002 2.00:1
June 30, 2002 2.00:1
September 30, 2002 2.25:1
December 31, 2002 2.25:1
March 31, 2003 2.25:1
June 30, 2003 2.25:1
September 30, 2003 2.25:1
December 31, 2003 2.25:1
March 31, 2004 2.25:1
June 30, 2004 2.25:1
61
ARTICLE VI
EVENTS OF DEFAULT
SECTION 6.01. Events of Default. If any of the following events
("EVENTS OF DEFAULT") shall occur and be continuing:
(a) (i) the Borrower shall fail to pay any principal of any Advance
when the same shall become due and payable or (ii) the Borrower shall fail
to pay any interest on any Advance, or any Loan Party shall fail to make
any other payment under any Loan Document, in each case under this clause
(ii) within two (2) Business Days after the same becomes due and payable;
or
(b) any representation or warranty made by any Loan Party (or any of
its officers) under or in connection with any Loan Document shall prove to
have been incorrect in any material respect when made; or
(c) the Borrower shall fail to perform or observe any term, covenant
or agreement contained in Section 2.14, 5.01(e), (i) or (j), 5.02, 5.03 or
5.04; or
(d) any Loan Party shall fail to perform or observe any other term,
covenant or agreement contained in any Loan Document on its part to be
performed or observed if such failure shall remain unremedied for 30 days
after the earlier of the date on which (i) a Responsible Officer becomes
aware of such failure or (ii) written notice thereof shall have been given
to the Borrower by any Agent or any Lender Party; or
(e) any Loan Party or any Restricted Subsidiary shall fail to pay any
principal of, premium or interest on or any other amount payable in respect
of any Debt of such Loan Party or such Restricted Subsidiary (as the case
may be) that is outstanding in a principal amount of at least $5,000,000
either individually or in the aggregate (but excluding Debt outstanding
hereunder), when the same becomes due and payable (whether by scheduled
maturity, required prepayment, acceleration, demand or otherwise), and such
failure shall continue after the applicable grace period, if any, specified
in the agreement or instrument relating to such Debt; or any other event
shall occur or condition shall exist under any agreement or instrument
relating to any such Debt and shall continue after the applicable grace
period, if any, specified in such agreement or instrument, if the effect of
such event or condition is to accelerate, or to permit the acceleration of,
the maturity of such Debt or otherwise to cause, or to permit the holder
thereof to cause, such Debt to mature; or any such Debt shall be declared
to be due and payable or required to be prepaid or redeemed (other than by
a regularly scheduled required prepayment or redemption), purchased or
defeased, or an offer to prepay, redeem, purchase or defease such Debt
shall be required to be made, in each case prior to the stated maturity
thereof; or
(f) any Loan Party or any Restricted Subsidiary (other than any
Immaterial Restricted Subsidiary) shall generally not pay its debts as such
debts become due, or shall admit in writing its inability to pay its debts
generally, or shall make a general assignment for the benefit of creditors;
or any proceeding shall be instituted by or against Holdings, any Loan
Party or any Restricted Subsidiary (other than any Immaterial Restricted
Subsidiary) seeking to adjudicate it a bankrupt or insolvent, or seeking
liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief, or composition of it or its debts under any law
relating to bankruptcy, insolvency or reorganization or relief of debtors,
or seeking the entry of an order for relief or the appointment of a
receiver, trustee or other similar official for it or for any substantial
part of its property and, in the case of any such proceeding instituted
against it (but not instituted by it) that is being diligently contested by
it in good faith, either such proceeding shall remain undismissed or
unstayed for a period of 60 days or any of the actions sought in such
proceeding
62
(including, without limitation, the entry of an order for relief against,
or the appointment of a receiver, trustee, custodian or other similar
official for, it or any substantial part of its property) shall occur; or
any Loan Party or any Restricted Subsidiary (other than any Immaterial
Restricted Subsidiary) shall take any corporate action to authorize any of
the actions set forth above in this subsection (f); or
(g) any judgments or orders, either individually or in the aggregate,
for the payment of money in excess of $5,000,000 shall be rendered against
any Loan Party or any Restricted Subsidiary (other than any Immaterial
Restricted Subsidiary) and such judgment is not paid within 10 Business
Days either (i) enforcement proceedings shall have been commenced by any
creditor upon such judgment or order or (ii) there shall be any period of
30 consecutive days during which a stay of enforcement of such judgment or
order, by reason of a pending appeal or otherwise, shall not be in effect;
or
(h) any non-monetary judgment or order shall be rendered against any
Loan Party or any Restricted Subsidiary (other than any Immaterial
Restricted Subsidiary) that could be reasonably expected to have a Material
Adverse Effect, and there shall be any period of 30 consecutive days during
which a stay of enforcement of such judgment or order, by reason of a
pending appeal or otherwise, shall not be in effect; or
(i) any material provision of any Loan Document after delivery thereof
pursuant to Section 3.01 or 5.01(j) shall for any reason cease to be valid
and binding on or enforceable against any Loan Party party to it, or any
such Loan Party shall so state in writing; or
(j) any Collateral Document or financing statement after delivery
thereof pursuant to Section 3.01 or 5.01(j) shall for any reason (other
than pursuant to the terms thereof) cease to create a valid and perfected
first priority lien on and security interest in the Collateral purported to
be covered thereby, except for any such cessation as shall not, in the
reasonable opinion of any Agent or any Lender, have a material adverse
effect on the rights or remedies of any Agent or Lender in respect of any
material part of the Collateral; or
(k) a Change of Control shall occur; or
(l) any ERISA Event shall have occurred with respect to a Plan and the
sum (determined as of the date of occurrence of such ERISA Event) of the
Insufficiency of such Plan and the Insufficiency of any and all other Plans
with respect to which an ERISA Event shall have occurred and then exist (or
the liability of the Loan Parties and the ERISA Affiliates related to such
ERISA Event) exceeds $5,000,000; or
(m) any Loan Party or any ERISA Affiliate shall have been notified by
the sponsor of a Multiemployer Plan that it has incurred Withdrawal
Liability to such Multiemployer Plan in an amount that, when aggregated
with all other amounts required to be paid to Multiemployer Plans by the
Loan Parties and the ERISA Affiliates as Withdrawal Liability (determined
as of the date of such notification), exceeds $5,000,000 or requires
payments exceeding $1,000,000 per annum; or
(n) any Loan Party or any ERISA Affiliate shall have been notified by
the sponsor of a Multiemployer Plan that such Multiemployer Plan is in
reorganization or is being terminated, within the meaning of Title IV of
ERISA, and as a result of such reorganization or termination the aggregate
annual contributions of the Loan Parties and the ERISA Affiliates to all
Multiemployer Plans that are then in reorganization or being terminated
have been or will be increased over the amounts contributed to such
Multiemployer Plans for the plan years of such Multiemployer Plans
63
immediately preceding the plan year in which such reorganization or
termination occurs by an amount exceeding $1,000,000; or
(o) an "Event of Default" (as defined in any Mortgage) shall have
occurred and be continuing,
then, and in any such event, the Administrative Agent (i) shall at the request,
or may with the consent, of the Required Lenders, by notice to the Borrower,
declare the Commitments of each Lender Party and the obligation of each Lender
Party to make Advances (other than Letter of Credit Advances pursuant to Section
2.03(c)) and of the Issuing Bank to issue Letters of Credit to be terminated,
whereupon the same shall forthwith terminate, and (ii) shall at the request, or
may with the consent, of the Required Lenders, by notice to the Borrower,
declare the Notes, all interest thereon and all other amounts payable under this
Agreement and the other Loan Documents to be forthwith due and payable,
whereupon the Notes, all such interest and all such amounts shall become and be
forthwith due and payable, without presentment, demand, protest or further
notice of any kind, all of which are hereby expressly waived by the Borrower;
provided, however, that in the event of an actual or deemed entry of an order
for relief with respect to the Borrower under the Federal Bankruptcy Code, (x)
the Commitments of each Lender Party and the obligation of each Lender Party to
make Advances (other than Letter of Credit Advances pursuant to Section 2.03(c))
and of the Issuing Bank to issue Letters of Credit shall automatically be
terminated and (y) the Notes, all such interest and all such amounts shall
automatically become and be due and payable, without presentment, demand,
protest or any notice of any kind, all of which are hereby expressly waived by
the Borrower.
SECTION 6.02. Actions in Respect of the Letters of Credit upon Default.
If any Event of Default shall have occurred and be continuing, the
Administrative Agent may, or shall at the request of the Required Lenders,
irrespective of whether it is taking any of the actions described in Section
6.01 or otherwise, make demand upon the Borrower to, and forthwith upon such
demand the Borrower will, pay to the Collateral Agent on behalf of the Lender
Parties in same day funds at the Collateral Agent's office designated in such
demand, for deposit in the L/C Collateral Account, an amount equal to the
aggregate Available Amount of all Letters of Credit then outstanding. If at any
time the Administrative Agent or the Collateral Agent determines that any funds
held in the L/C Collateral Account are subject to any right or claim of any
Person other than the Agents and the Lender Parties or that the total amount of
such funds is less than the aggregate Available Amount of all Letters of Credit,
the Borrower will, forthwith upon demand by the Administrative Agent or the
Collateral Agent, pay to the Collateral Agent, as additional funds to be
deposited and held in the L/C Collateral Account, an amount equal to the excess
of (a) such aggregate Available Amount over (b) the total amount of funds, if
any, then held in the L/C Collateral Account that the Administrative Agent or
the Collateral Agent, as the case may be, determines to be free and clear of any
such right and claim. Upon the drawing of any Letter of Credit for which funds
are on deposit in the L/C Collateral Account, such funds shall be applied to
reimburse the Issuing Bank or Revolving Credit Lenders, as applicable, to the
extent permitted by applicable law.
ARTICLE VII
GUARANTY
SECTION 7.01. Guaranty; Limitation of Liability. (a) Each Guarantor,
jointly and severally, hereby absolutely, unconditionally and irrevocably
guarantees the punctual payment when due, whether at scheduled maturity or on
any date of a required prepayment or by acceleration, demand or otherwise, of
all Obligations of each other Loan Party now or hereafter existing under or in
respect of the Loan Documents (including, without limitation, any extensions,
modifications, substitutions, amendments or renewals of any or all of the
foregoing Obligations), whether direct or indirect, absolute or contingent, and
whether for principal, interest, premiums, fees, indemnities, contract causes of
action, costs, expenses or otherwise (such Obligations being the "GUARANTEED
OBLIGATIONS"), and agrees to pay any and all
64
expenses (including, without limitation, reasonable fees and expenses of
counsel) incurred by the Administrative Agent or any other Secured Party in
enforcing any rights under this Guaranty or any other Loan Document. Without
limiting the generality of the foregoing, each Guarantor's liability shall
extend to all amounts that constitute part of the Guaranteed Obligations and
would be owed by any other Loan Party to any Secured Party under or in respect
of the Loan Documents but for the fact that they are unenforceable or not
allowable due to the existence of a bankruptcy, reorganization or similar
proceeding involving such other Loan Party.
(b) Each Guarantor, and by its acceptance of this Guaranty, the
Administrative Agent and each other Secured Party, hereby confirms that it is
the intention of all such Persons that this Guaranty and the Obligations of each
Guarantor hereunder not constitute a fraudulent transfer or conveyance for
purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act or any similar foreign, federal or state law to the
extent applicable to this Guaranty and the Obligations of each Guarantor
hereunder. To effectuate the foregoing intention, the Administrative Agent, the
other Secured Parties and the Guarantors hereby irrevocably agree that the
Obligations of each Guarantor under this Guaranty at any time shall be limited
to the maximum amount as will result in the Obligations of such Guarantor under
this Guaranty not constituting a fraudulent transfer or conveyance.
(c) Each Guarantor hereby unconditionally and irrevocably agrees that
in the event any payment shall be required to be made to any Secured Party under
this Guaranty or any other guaranty, such Guarantor will contribute, to the
maximum extent permitted by law, such amounts to each other Guarantor and each
other guarantor so as to maximize the aggregate amount paid to the Secured
Parties under or in respect of the Loan Documents.
SECTION 7.02. Guaranty Absolute. Each Guarantor guarantees that the
Guaranteed Obligations will be paid strictly in accordance with the terms of the
Loan Documents, regardless of any law, regulation or order now or hereafter in
effect in any jurisdiction affecting any of such terms or the rights of any
Secured Party with respect thereto. The Obligations of each Guarantor under or
in respect of this Guaranty are independent of the Guaranteed Obligations or any
other Obligations of any other Loan Party under or in respect of the Loan
Documents, and a separate action or actions may be brought and prosecuted
against each Guarantor to enforce this Guaranty, irrespective of whether any
action is brought against the Borrower or any other Loan Party or whether the
Borrower or any other Loan Party is joined in any such action or actions. The
liability of each Guarantor under this Guaranty shall be irrevocable, absolute
and unconditional irrespective of, and each Guarantor hereby irrevocably waives
any defenses it may now have or hereafter acquire in any way relating to, any or
all of the following:
(a) any lack of validity or enforceability of any Loan Document or any
agreement or instrument relating thereto;
(b) any change in the time, manner or place of payment of, or in any
other term of, all or any of the Guaranteed Obligations or any other
Obligations of any other Loan Party under or in respect of the Loan
Documents, or any other amendment or waiver of or any consent to departure
from any Loan Document, including, without limitation, any increase in the
Guaranteed Obligations resulting from the extension of additional credit to
any Loan Party or any of its Restricted Subsidiaries or otherwise;
(c) any taking, exchange, release or non-perfection of any Collateral
or any other collateral, or any taking, release or amendment or waiver of,
or consent to departure from, any other guaranty, for all or any of the
Guaranteed Obligations;
(d) any manner of application of Collateral or any other collateral,
or proceeds thereof, to all or any of the Guaranteed Obligations, or any
manner of sale or other disposition of any
65
Collateral or any other collateral for all or any of the Guaranteed
Obligations or any other Obligations of any Loan Party under the Loan
Documents or any other assets of any Loan Party or any of its Restricted
Subsidiaries;
(e) any change, restructuring or termination of the corporate
structure or existence of any Loan Party or any of its Restricted
Subsidiaries;
(f) any failure of any Secured Party to disclose to any Loan Party any
information relating to the business, condition (financial or otherwise),
operations, performance, properties or prospects of any other Loan Party
now or hereafter known to such Secured Party (each Guarantor waiving any
duty on the part of the Secured Parties to disclose such information);
(g) the failure of any other Person to execute or deliver this
Guaranty, any Guaranty Supplement or any other guaranty or agreement or the
release or reduction of liability of any Guarantor or other guarantor or
surety with respect to the Guaranteed Obligations; or
(h) any other circumstance (including, without limitation, any statute
of limitations) or any existence of or reliance on any representation by
any Secured Party that might otherwise constitute a defense available to,
or a discharge of, any Loan Party or any other guarantor or surety.
This Guaranty shall continue to be effective or be reinstated, as the case may
be, if at any time any payment of any of the Guaranteed Obligations is rescinded
or must otherwise be returned by any Secured Party or any other Person upon the
insolvency, bankruptcy or reorganization of the Borrower or any other Loan Party
or otherwise, all as though such payment had not been made.
SECTION 7.03. Waivers and Acknowledgments. (a) Each Guarantor hereby
unconditionally and irrevocably waives promptness, diligence, notice of
acceptance, presentment, demand for performance, notice of nonperformance,
default, acceleration, protest or dishonor and any other notice with respect to
any of the Guaranteed Obligations and this Guaranty and any requirement that any
Secured Party protect, secure, perfect or insure any Lien or any property
subject thereto or exhaust any right or take any action against any Loan Party
or any other Person or any Collateral.
(b) Each Guarantor hereby unconditionally and irrevocably waives any
right to revoke this Guaranty and acknowledges that this Guaranty is continuing
in nature and applies to all Guaranteed Obligations, whether existing now or in
the future.
(c) Each Guarantor hereby unconditionally and irrevocably waives to the
extent permitted by law (i) any defense arising by reason of any claim or
defense based upon an election of remedies by any Secured Party that in any
manner impairs, reduces, releases or otherwise adversely affects the
subrogation, reimbursement, exoneration, contribution or indemnification rights
of such Guarantor or other rights of such Guarantor to proceed against any of
the other Loan Parties, any other guarantor or any other Person or any
Collateral and (ii) any defense based on any right of set-off or counterclaim
against or in respect of the Obligations of such Guarantor hereunder.
(d) Each Guarantor acknowledges that the Administrative Agent may,
without notice to or demand upon such Guarantor and without affecting the
liability of such Guarantor under this Guaranty, foreclose under any mortgage by
nonjudicial sale, and each Guarantor hereby waives any defense to the recovery
by the Administrative Agent and the other Secured Parties against such Guarantor
of any deficiency after such nonjudicial sale and any defense or benefits that
may be afforded by applicable law.
(e) Each Guarantor hereby unconditionally and irrevocably waives any
duty on the part of any Secured Party to disclose to such Guarantor any matter,
fact or thing relating to the business,
66
condition (financial or otherwise), operations, performance, properties or
prospects of any other Loan Party or any of its Subsidiaries now or hereafter
known by such Secured Party.
(f) Each Guarantor acknowledges that it will receive substantial direct
and indirect benefits from the financing arrangements contemplated by the Loan
Documents and that the waivers set forth in Section 7.02 and this Section 7.03
are knowingly made in contemplation of such benefits.
SECTION 7.04. Subrogation. Each Guarantor hereby unconditionally and
irrevocably agrees not to exercise any rights that it may now have or hereafter
acquire against the Borrower, any other Loan Party or any other insider
guarantor that arise from the existence, payment, performance or enforcement of
such Guarantor's Obligations under or in respect of this Guaranty or any other
Loan Document, including, without limitation, any right of subrogation,
reimbursement, exoneration, contribution or indemnification and any right to
participate in any claim or remedy of any Secured Party against the Borrower,
any other Loan Party or any other insider guarantor or any Collateral, whether
or not such claim, remedy or right arises in equity or under contract, statute
or common law, including, without limitation, the right to take or receive from
the Borrower, any other Loan Party or any other insider guarantor, directly or
indirectly, in cash or other property or by set-off or in any other manner,
payment or security on account of such claim, remedy or right, unless and until
all of the Guaranteed Obligations and all other amounts payable under this
Guaranty shall have been paid in full in cash and the Commitments shall have
expired or been terminated. If any amount shall be paid to any Guarantor in
violation of the immediately preceding sentence at any time prior to the latest
of (a) the payment in full in cash of the Guaranteed Obligations and all other
amounts payable under this Guaranty and (b) the Termination Date, such amount
shall be received and held in trust for the benefit of the Secured Parties,
shall be segregated from other property and funds of such Guarantor and shall
forthwith be paid or delivered to the Administrative Agent in the same form as
so received (with any necessary endorsement or assignment) to be credited and
applied to the Guaranteed Obligations and all other amounts payable under this
Guaranty, whether matured or unmatured, in accordance with the terms of the Loan
Documents, or to be held as Collateral for any Guaranteed Obligations or other
amounts payable under this Guaranty thereafter arising. If (i) any Guarantor
shall make payment to any Secured Party of all or any part of the Guaranteed
Obligations, (ii) all of the Guaranteed Obligations and all other amounts
payable under this Guaranty shall have been paid in full in cash and (iii) the
Termination Date shall have occurred, the Secured Parties will, at such
Guarantor's request and expense, execute and deliver to such Guarantor
appropriate documents, without recourse and without representation or warranty,
necessary to evidence the transfer by subrogation to such Guarantor of an
interest in the Guaranteed Obligations resulting from such payment made by such
Guarantor pursuant to this Guaranty.
SECTION 7.05. Guaranty Supplements. Upon the execution and delivery by
any Person of a guaranty supplement in substantially the form of Exhibit G
hereto (each, a "GUARANTY SUPPLEMENT"), (a) such Person shall be referred to as
an "ADDITIONAL GUARANTOR" and shall become and be a Guarantor hereunder, and
each reference in this Guaranty to a "GUARANTOR" shall also mean and be a
reference to such Additional Guarantor, and each reference in any other Loan
Document to a "GUARANTOR" shall also mean and be a reference to such Additional
Guarantor, and (b) each reference herein to "THIS GUARANTY", "HEREUNDER",
"HEREOF" or words of like import referring to this Guaranty, and each reference
in any other Loan Document to the "GUARANTY", "THEREUNDER", "THEREOF" or words
of like import referring to this Guaranty, shall mean and be a reference to this
Guaranty as supplemented by such Guaranty Supplement.
SECTION 7.06. Subordination. Each Guarantor hereby subordinates any and
all debts, liabilities and other Obligations owed to such Guarantor by each
other Loan Party (the "SUBORDINATED OBLIGATIONS") to the Guaranteed Obligations
to the extent and in the manner hereinafter set forth in this Section 7.06:
(a) Prohibited Payments, Etc. Except during the continuance of any
Event of Default (including the commencement and continuation of any
proceeding under any Bankruptcy Law
67
relating to any other Loan Party), each Guarantor may receive regularly
scheduled payments from any other Loan Party on account of the Subordinated
Obligations. After the occurrence and during the continuance of any Event
of Default (including the commencement and continuation of any proceeding
under any Bankruptcy Law relating to any other Loan Party), however, unless
the Required Lenders otherwise agree, no Guarantor shall demand, accept or
take any action to collect any payment on account of the Subordinated
Obligations.
(b) Prior Payment of Guaranteed Obligations. In any proceeding under
any Bankruptcy Law relating to any other Loan Party, each Guarantor agrees
that the Secured Parties shall be entitled to receive payment in full in
cash of all Guaranteed Obligations (including all interest and expenses
accruing after the commencement of a proceeding under any Bankruptcy Law,
whether or not constituting an allowed claim in such proceeding ("POST
PETITION INTEREST")) before such Guarantor receives payment of any
Subordinated Obligations.
(c) Turn-Over. After the occurrence and during the continuance of any
Event of Default (including the commencement and continuation of any
proceeding under any Bankruptcy Law relating to any other Loan Party), each
Guarantor shall, if the Administrative Agent so requests, collect, enforce
and receive payments on account of the Subordinated Obligations as trustee
for the Secured Parties and deliver such payments to the Administrative
Agent on account of the Guaranteed Obligations (including all Post Petition
Interest), together with any necessary endorsements or other instruments of
transfer, but without reducing or affecting in any manner the liability of
such Guarantor under the other provisions of this Guaranty.
SECTION 7.07. Continuing Guaranty; Assignments. This Guaranty is a
continuing guaranty and shall (a) remain in full force and effect until the
latest of (i) the payment in full in cash of the Guaranteed Obligations and all
other amounts payable under this Guaranty and (ii) the Termination Date, (b) be
binding upon each Guarantor, its successors and assigns and (c) inure to the
benefit of and be enforceable by the Secured Parties and their successors,
transferees and assigns. Without limiting the generality of clause (c) of the
immediately preceding sentence, any Secured Party may assign or otherwise
transfer all or any portion of its rights and obligations under this Agreement
(including, without limitation, all or any portion of its Commitments, the
Advances owing to it and the Note or Notes held by it) to any other Person, and
such other Person shall thereupon become vested with all the benefits in respect
thereof granted to such Secured Party herein or otherwise, in each case as and
to the extent provided in Section 9.07. No Guarantor shall have the right to
assign its rights hereunder or any interest herein without the prior written
consent of the Secured Parties.
ARTICLE VIII
THE AGENTS
SECTION 8.01. Authorization and Action. Each Lender Party (in its
capacity as a Lender or the Issuing bank) hereby appoints and authorizes each
Agent to take such action as agent on its behalf and to exercise such powers and
discretion under this Agreement and the other Loan Documents as are delegated to
such Agent by the terms hereof and thereof, together with such powers and
discretion as are reasonably incidental thereto. As to any matters not expressly
provided for by the Loan Documents (including, without limitation, enforcement
or collection of the Notes), no Agent shall be required to exercise any
discretion or take any action, but shall be required to act or to refrain from
acting (and shall be fully protected in so acting or refraining from acting)
upon the instructions of the Required Lenders, and such instructions shall be
binding upon all Lenders and all holders of Notes; provided, however, that no
Agent shall be required to take any action that exposes such Agent to personal
liability or that is contrary to this Agreement or applicable law. Each Agent
agrees to give to each Lender Party prompt notice of each notice given to it by
the Borrower pursuant to the terms of this Agreement.
68
SECTION 8.02. Agents' Reliance, Etc. Neither any Agent nor any of their
respective directors, officers, agents or employees shall be liable for any
action taken or omitted to be taken by it or them under or in connection with
the Loan Documents, except for its or their own gross negligence or willful
misconduct. Without limitation of the generality of the foregoing, each Agent:
(a) may treat the payee of any Note as the holder thereof until, in the case of
the Administrative Agent, the Administrative Agent receives and accepts an
Assignment and Acceptance entered into by the Lender Party that is the payee of
such Note, as assignor, and an Eligible Assignee, as assignee, or, in the case
of any other Agent, such Agent has received notice from the Administrative Agent
that it has received and accepted such Assignment and Acceptance, in each case
as provided in Section 9.07; (b) may consult with legal counsel (including
counsel for any Loan Party), independent public accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be
taken in good faith by it in accordance with the advice of such counsel,
accountants or experts; (c) makes no warranty or representation to any Lender
Party and shall not be responsible to any Lender Party for any statements,
warranties or representations (whether written or oral) made in or in connection
with the Loan Documents; (d) shall not have any duty to ascertain or to inquire
as to the performance or observance of any of the terms, covenants or conditions
of any Loan Document on the part of any Loan Party or to inspect the property
(including the books and records) of any Loan Party; (e) shall not be
responsible to any Lender Party for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of, or the perfection or
priority of any lien or security interest created or purported to be created
under or in connection with, any Loan Document or any other instrument or
document furnished pursuant thereto; and (f) shall incur no liability under or
in respect of any Loan Document by acting upon any notice, consent, certificate
or other instrument or writing (which may be by telegram or telecopy) believed
by it to be genuine and signed or sent by the proper party or parties.
SECTION 8.03. The Administrative Agent, the Syndication Agent and the
Documentation Agent and Their Respective Affiliates. With respect to its
Commitments, the Advances made by it and the Notes issued to it and any Letters
of Credit issued by it, Xxxxxx Xxxxxxx, The Bank of New York and UBS AG,
Stamford Branch shall have the same rights and powers under the Loan Documents
as any other Lender Party and may exercise the same as though it (or its
affiliates) were not an Agent; and the term "Lender Party" or "Lender Parties"
shall, unless otherwise expressly indicated, include Xxxxxx Xxxxxxx, The Bank of
New York, UBS Warburg LLC and UBS AG, Stamford Branch in their respective
individual capacity. Xxxxxx Xxxxxxx, The Bank of New York and UBS Warburg LLC
and their respective affiliates may accept deposits from, lend money to, act as
trustee under indentures of, accept investment banking engagements from and
generally engage in any kind of business with, any Loan Party, any of its
Subsidiaries and any Person that may do business with or own securities of any
Loan Party or any such Subsidiary, all as if Xxxxxx Xxxxxxx, The Bank of New
York and UBS Warburg LLC were not Agents and without any duty to account
therefor to the Lenders.
SECTION 8.04. Lender Credit Decision. Each Lender Party acknowledges
that it has, independently and without reliance upon any Agent or any other
Lender Party and based on the financial statements referred to in Section 4.01
and such other documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement. Each Lender Party
also acknowledges that it will, independently and without reliance upon any
Agent or any other Lender Party and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under this Agreement.
SECTION 8.05. Indemnification. (a) Each Lender Party severally agrees
to indemnify each Agent (to the extent not promptly reimbursed by the Borrower)
from and against such Lender Party's ratable share (determined as provided
below) of any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever that may be imposed on, incurred by, or asserted against such
Agent in any way relating to or arising out of the Loan Documents or any action
taken or omitted by such Agent under the Loan Documents (collectively, the
"INDEMNIFIED COSTS"); provided, however, that no Lender Party shall be
69
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 as found in a final,
non-appealable judgment by a court of competent jurisdiction. Without limitation
of the foregoing, each Lender Party agrees to reimburse each Agent promptly upon
demand for its ratable share of any costs and expenses (including, without
limitation, fees and expenses of counsel) payable by the Borrower under Section
9.04, to the extent that such Agent is not promptly reimbursed for such costs
and expenses by the Borrower. In the case of any investigation, litigation or
proceeding giving rise to any Indemnified Costs, this Section 8.05 applies
whether any such investigation, litigation or proceeding is brought by any
Lender Party or any other Person.
(b) Each Lender Party severally agrees to indemnify the Issuing Bank
(to the extent not promptly reimbursed by the Borrower) from and against such
Lender Party's ratable share (determined as provided below) of any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever that may be
imposed on, incurred by, or asserted against the Issuing Bank in any way
relating to or arising out of the Loan Documents or any action taken or omitted
by the Issuing Bank under the Loan Documents; provided, however, that no Lender
Party shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from the Issuing Bank's gross negligence or willful misconduct as
found in a final, non-appealable judgment by a court of competent jurisdiction.
Without limitation of the foregoing, each Lender Party agrees to reimburse the
Issuing Bank promptly upon demand for its ratable share of any costs and
expenses (including, without limitation, fees and expenses of counsel) payable
by the Borrower under Section 8.04, to the extent that the Issuing Bank is not
promptly reimbursed for such costs and expenses by the Borrower.
(c) For purposes of this Section 8.05, the Lender Parties' respective
ratable shares of any amount shall be determined, at any time, according to the
sum of (i) the aggregate principal amount of the Advances outstanding at such
time and owing to the respective Lender Parties, (ii) their respective Pro Rata
Shares of the aggregate Available Amount of all Letters of Credit outstanding at
such time, and (iii) their respective Unused Revolving Credit Commitments at
such time; provided that the aggregate principal amount of Letter of Credit
Advances owing to the Issuing Bank shall be considered to be owed to the Lenders
ratably in accordance with their respective Revolving Credit Commitments. The
failure of any Lender Party to reimburse any Agent or the Issuing Bank, as the
case may be, promptly upon demand for its ratable share of any amount required
to be paid by the Lender Parties to such Agent or the Issuing Bank, as the case
may be, as provided herein shall not relieve any other Lender Party of its
obligation hereunder to reimburse such Agent or the Issuing Bank, as the case
may be, for its ratable share of such amount, but no Lender Party shall be
responsible for the failure of any other Lender Party to reimburse such Agent or
the Issuing Bank, as the case may be, for such other Lender Party's ratable
share of such amount. Without prejudice to the survival of any other agreement
of any Lender Party hereunder, the agreement and obligations of each Lender
Party contained in this Section 8.05 shall survive the payment in full of
principal, interest and all other amounts payable hereunder and under the other
Loan Documents.
SECTION 8.06. Successor Agents. Any Agent may resign as to either or
both of the Facilities at any time by giving written notice thereof to the
Lender Parties and the Borrower and may be removed as to both Facilities at any
time with or without cause by the Required Lenders. Upon any such resignation or
removal, the Required Lenders shall have the right to appoint a successor Agent
as to such of the Facilities as to which such Agent has resigned or been
removed. If no successor Agent shall have been so appointed by the Required
Lenders, and shall have accepted such appointment, within 30 days after the
retiring Agent's giving of notice of resignation or the Required Lenders'
removal of the retiring Agent, then the retiring Agent may, on behalf of the
Lender Parties, appoint a successor Agent as to either of the Facilities, which
shall be a commercial bank organized under the laws of the United States or of
any State thereof and having a combined capital and surplus of at least
$250,000,000. Upon the acceptance of any appointment as Agent hereunder by a
successor Agent as to both Facilities and, in the
70
case of a successor Collateral Agent, upon the execution and filing or recording
of such financing statements, or amendments thereto, and such other instruments
or notices, as may be necessary or desirable, or as the Required Lenders may
request, in order to continue the perfection of the Liens granted or purported
to be granted by the Collateral Documents, such successor Agent shall succeed to
and become vested with all the rights, powers, discretion, privileges and duties
of the retiring Agent, and the retiring Agent shall be discharged from its
duties and obligations under the Loan Documents. Upon the acceptance of any
appointment as Agent hereunder by a successor Agent as to either of the
Facilities and, in the case of a successor Collateral Agent, upon the execution
and filing or recording of such financing statements, or amendments thereto, and
such other instruments or notices, as may be necessary or desirable or as the
Required Lenders may request, in order to continue the perfection of the Liens
granted or purported to be granted by the Collateral Documents, such Successor
Agent shall succeed to and become vested with all the rights, powers,
discretion, privileges and duties of the retiring Agent as to such Facility,
other than with respect to funds transfers and other similar aspects of the
administration of Borrowings under such Facilities, issuances of Letters of
Credit (notwithstanding any resignation as Agent with respect to the Letter of
Credit Facility) and payments by the Borrower in respect of such Facilities, and
the retiring Administrative Agent shall be discharged from its duties and
obligations under this Agreement as to such Facility, other than as aforesaid.
If within 45 days after written notice is given of the retiring Agent's
resignation or removal under this Section 8.06 no successor Agent shall have
been appointed and shall have accepted such appointment, then on such 45th day
(a) the retiring Agent's resignation or removal shall become effective, (b) the
retiring Agent shall thereupon be discharged from its duties and obligations
under the Loan Documents and (c) the Required Lenders shall thereafter perform
all duties of the retiring Agent under the Loan Documents until such time, if
any, as the Required Lenders appoint a successor Agent as provided above. After
any retiring Agent's resignation or removal hereunder as Agent as to either or
both Facilities shall have become effective, the provisions of this Article VIII
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Agent as to such Facilities under this Agreement.
SECTION 8.07. Other Agents. Each Lender Party hereby acknowledges that
neither the Documentation Agent, Syndication Agent nor any other Lender Party
designated as any "Agent" on the signature pages hereof has any responsibilities
or liability hereunder other than in its capacity as a Lender, the titles
Documentation Agent and Syndication Agent being purely honorary in nature.
ARTICLE IX
MISCELLANEOUS
SECTION 9.01. Amendments, Etc. No amendment or waiver of any provision
of this Agreement or the Notes or any other Loan Document, nor consent to any
departure by any Loan Party therefrom, shall in any event be effective unless
the same shall be in writing and signed (or, in the case of the Collateral
Documents, consented to) by the Required Lenders, and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that (a) no amendment, waiver or
consent shall, unless in writing and signed by all of the Lender Parties (other
than any Lender Party that is, at such time, a Defaulting Lender), do any of the
following at any time: (i) waive any of the conditions specified in Section 3.01
or, in the case of the Initial Extension of Credit, Section 3.02, (ii) change
the number of Lender Parties or the percentage of (x) the Commitments, (y) the
aggregate unpaid principal amount of the Advances or (z) the aggregate Available
Amount of outstanding Letters of Credit that, in each case, shall be required
for the Lender Parties or any of them to take any action hereunder, (iii) reduce
or limit the obligations of all or substantially all of the Guarantors under
Section 7.01 or release such Guarantors or otherwise limit such Guarantors'
liability with respect to the Obligations owing to the Agents and the Lenders,
(iv) release all or substantially all of the Collateral in any transaction or
series of related transactions or permit the creation, incurrence, assumption or
existence of any Lien on all or substantially all of the Collateral in any
transaction or series of related transactions to secure any Obligations other
than Obligations owing to the Secured Parties under the Loan
71
Documents, (v) amend Section 2.13 or this Section 9.01, or (vi) limit the
liability of any Loan Party under any of the Loan Documents and (b) no
amendment, waiver or consent shall, unless in writing and signed by the Required
Lenders and each Lender (other than any Lender that is, at such time a
Defaulting Lender) that has a Commitment under the Revolving Credit Facility if
such Lender is directly affected by such amendment, waiver or consent, (i)
increase the commitments of such Lender, (ii) reduce the principal of, or
interest on, the Notes held by such Lender or any fees or other amounts payable
hereunder to such Lender, (iii) postpone any date fixed for any payment of
principal of, or interest on, the Notes held by such Lender pursuant to Section
2.03 or 2.07 or any fees or other amounts payable hereunder to such Lender, or
(iv) change the order of application of any prepayment set forth in Section 2.06
in any manner that materially affects such Lender; provided further that no
amendment, waiver or consent shall, unless in writing and signed by the Issuing
Bank, in addition to the Lenders required above to take such action, affect the
rights or obligations of the Issuing Bank under this Agreement; and provided
further that no amendment, waiver or consent shall, unless in writing and signed
by an Agent in addition to the Lender Parties required above to take such
action, affect the rights or duties of such Agent under this Agreement or the
other Loan Documents.
SECTION 9.02. Notices, Etc. All notices and other communications
provided for hereunder shall be in writing (including telegraphic or telecopy
communication) and mailed, telegraphed, telecopied or delivered, if to the
Borrower, at its address at 0000 Xxxxxxxx Xxxx., Xxxxx 000, Xxx Xxxxxxx,
Xxxxxxxxxx, 00000, Attention: Xxxxx Xxxxxxx, with a copy to Xxx Xxxxxxxxx at the
same address and a copy to Xxxxxx XxXxxxxxx at Xxxxxxxx & Xxxxxxxx, 000 Xxxxx
Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000; if to any Initial Lender or Initial Issuing
Bank, at its Domestic Lending Office specified opposite its name on Schedule I
hereto; if to any other Lender Party, at its Domestic Lending Office specified
in the Assignment and Acceptance pursuant to which it became a Lender Party; and
if to the Administrative Agent, at its address at 0000 Xxxxxxxx, Xxx Xxxx, Xxx
Xxxx 00000, Attention: Xxxxx Xxxxxx or, as to the Borrower or the Administrative
Agent, at such other address as shall be designated by such party in a written
notice to the other parties and, as to each other party, at such other address
as shall be designated by such party in a written notice to the Borrower and the
Administrative Agent. All such notices and other communications shall, when
mailed, telegraphed or telecopied, be effective when deposited in the mails,
delivered to the telegraph company or transmitted by telecopier, respectively,
except that notices and communications to any Agent pursuant to Article II, III
or VII shall not be effective until received by such Agent. Delivery by
telecopier of an executed counterpart of any amendment or waiver of any
provision of this Agreement or any Note or of any Exhibit hereto to be executed
and delivered hereunder shall be effective as delivery of an original executed
counterpart thereof.
SECTION 9.03. No Waiver; Remedies. No failure on the part of any Lender
Party or any Agent to exercise, and no delay in exercising, any right hereunder
or under any Note shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.
SECTION 9.04. Costs and Expenses. (a) The Borrower agrees to pay on
demand (i) all costs and expenses of the Agents in connection with the
preparation, execution, delivery, administration, modification and amendment of
the Loan Documents (including, without limitation, (A) all due diligence,
collateral review, syndication, transportation, computer, duplication,
appraisal, audit, insurance, consultant, search, filing and recording fees and
expenses and (B) the reasonable fees and expenses of one external counsel for
the Agents with respect thereto, with respect to advising the Agents as to their
rights and responsibilities, or the perfection, protection or preservation of
rights or interests, under the Loan Documents, with respect to negotiations with
any Loan Party or with other creditors of any Loan Party or any of its
Subsidiaries arising out of any Default or any events or circumstances that may
give rise to a Default and with respect to presenting claims in or otherwise
participating in or monitoring any bankruptcy, insolvency or other similar
proceeding involving creditors' rights generally and any proceeding ancillary
thereto) and (ii) all costs and expenses of the Agents and each Lender Party in
72
connection with the enforcement of the Loan Documents, whether in any action,
suit or litigation, or any bankruptcy, insolvency or other similar proceeding
affecting creditors' rights generally (including, without limitation, the
reasonable fees and expenses of counsel for the Administrative Agent and each
Lender Party with respect thereto).
(b) The Borrower agrees to indemnify, defend and save and hold harmless
each Agent, each Lender Party and each of their Affiliates and their respective
officers, directors, employees, agents and advisors (each, an "INDEMNIFIED
PARTY") from and against, and shall pay on demand, any and all claims, damages,
losses, liabilities and expenses (including, without limitation, reasonable fees
and expenses of counsel) that may be incurred by or asserted or awarded against
any Indemnified Party, in each case arising out of or in connection with or by
reason of (including, without limitation, in connection with any investigation,
litigation or proceeding or preparation of a defense in connection therewith)
(i) the Facilities, the actual or proposed use of the proceeds of the Advances
or the Letters of Credit, the Loan Documents or any of the transactions
contemplated thereby or (ii) the actual or alleged presence of Hazardous
Materials in violation of any Environmental Law on any property of any Loan
Party or any Restricted Subsidiary or any Environmental Action relating in any
way to any Loan Party or any Restricted Subsidiary, except to the extent such
claim, damage, loss, liability or expense is found in a final, non-appealable
judgment by a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of such Indemnified Party or such Indemnified
Party's officers, directors, employees, agents or advisors. In the case of an
investigation, litigation or other proceeding to which the indemnity in this
Section 9.04(b) applies, such indemnity shall be effective whether or not such
investigation, litigation or proceeding is brought by any Loan Party, its
directors, shareholders or creditors or an Indemnified Party, whether or not any
Indemnified Party is otherwise a party thereto and whether or not the
Transaction is consummated.
(c) If any payment of principal of, or Conversion of, any Eurodollar
Rate Advance is made by the Borrower to or for the account of a Lender Party
other than on the last day of the Interest Period for such Advance, as a result
of a payment or Conversion pursuant to Section 2.06, 2.09(b)(i) or 2.10(d),
acceleration of the maturity of any Notes pursuant to Section 6.01 or for any
other reason, or by an Eligible Assignee to a Lender other than on the last day
of the Interest Period for such Advance upon an assignment of rights and
obligations under this Agreement pursuant to Section 9.07 as a result of a
demand by the Borrower pursuant to Section 9.07(a) or during the syndication
period referred to in Section 2.02(b), or if the Borrower fails to make any
payment or prepayment of an Advance for which a notice of prepayment has been
given or that is otherwise required to be made, whether pursuant to Section
2.04, 2.06 or 6.01 or otherwise, the Borrower shall, upon demand by such Lender
Party (with a copy of such demand to the Administrative Agent), pay to the
Administrative Agent for the account of such Lender Party any amounts required
to compensate such Lender Party for any additional losses, costs or expenses
that it may reasonably incur as a result of such payment or Conversion or such
failure to pay or prepay, as the case may be, including, without limitation, any
loss (excluding loss of anticipated profits), cost or expense incurred by reason
of the liquidation or reemployment of deposits or other funds acquired by any
Lender Party to fund or maintain such Advance.
(d) If any Loan Party fails to pay when due any costs, expenses or
other amounts payable by it under any Loan Document, including, without
limitation, fees and expenses of counsel and indemnities, such amount may be
paid on behalf of such Loan Party by the Administrative Agent or any Lender
Party, in its sole discretion.
(e) Without prejudice to the survival of any other agreement of any
Loan Party hereunder or under any other Loan Document, the agreements and
obligations of the Borrower contained in Sections 2.10 and 2.12 and this Section
9.04 shall survive the payment in full of principal, interest and all other
amounts payable hereunder and under any of the other Loan Documents.
73
SECTION 9.05. Right of Set-off. Upon (a) the occurrence and during the
continuance of any Event of Default and (b) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the
Administrative Agent to declare any Notes due and payable pursuant to the
provisions of Section 6.01, each Agent and each Lender Party and each of their
respective Affiliates is hereby authorized at any time and from time to time, to
the fullest extent permitted by law, to set off and otherwise apply any and all
deposits (general or special, time or demand, provisional or final) at any time
held and other indebtedness at any time owing by such Agent, such Lender Party
or such Affiliate to or for the credit or the account of the Borrower against
any and all of the Obligations of the Borrower now or hereafter existing under
the Loan Documents, irrespective of whether such Agent or such Lender Party
shall have made any demand under this Agreement or such Note or Notes and
although such Obligations may be unmatured. Each Agent and each Lender Party
agrees promptly to notify the Borrower after any such set-off and application;
provided, however, that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of each Agent and each
Lender Party and their respective Affiliates under this Section are in addition
to other rights and remedies (including, without limitation, other rights of
set-off) that such Agent, such Lender Party and their respective Affiliates may
have.
SECTION 9.06. Binding Effect. This Agreement shall become effective
when it shall have been executed by the Borrower and each Agent and the
Administrative Agent shall have been notified by each Initial Lender and each
Initial Issuing Bank that such Initial Lender and such Initial Issuing Bank has
executed it and thereafter shall be binding upon and inure to the benefit of the
Borrower, each Agent and each Lender Party and their respective successors and
assigns, except that the Borrower shall not have the right to assign its rights
hereunder or any interest herein without the prior written consent of the Lender
Parties.
SECTION 9.07. Assignments and Participations. (a) Each Lender Party may
assign (and, if demanded by the Borrower (following a demand by such Lender
pursuant to Section 2.10 or following the incurrence by the Borrower of any
liability under Section 2.12 with respect to such Lender) upon at least 5
Business Days' notice to such Lender and the Agent, will assign) to one or more
Eligible Assignees all or a portion of its rights and obligations under this
Agreement (including, without limitation, all or a portion of its Commitment or
Commitments, the Advances owing to it and any Note or Notes held by it);
provided, however, that (i) each such assignment shall be of a uniform, and not
a varying, percentage of all rights and obligations under and in respect of
either or both Facilities, provided, however, that nothing in this clause (i)
shall prevent a Lender Party from assigning an interest in either Facility if
such Lender Party has an interest in both Facilities, (ii) except in the case of
an assignment to a Person that, immediately prior to such assignment, was a
Lender Party or an Affiliate of any Lender Party or an assignment of all of a
Lender Party's rights and obligations under this Agreement, the aggregate amount
of the Commitments being assigned to such Eligible Assignee pursuant to such
assignment (determined as of the date of the Assignment and Acceptance with
respect to such assignment) shall in no event be less than $1,000,000 under each
Facility for which a Commitment is being assigned, (iii) each such assignment
shall be to an Eligible Assignee, (iv) each such assignment made as a result of
a demand by the Borrower pursuant to this Section 9.07(a) shall be arranged by
the Borrower after consultation with the Agent and shall be either an assignment
of all of the rights and obligations of the assigning Lender under this
Agreement or an assignment of a portion of such rights and obligations made
concurrently with another such assignment or other such assignments that
together cover all of the rights and obligations of the assigning Lender under
this Agreement, (v) no Lender shall be obligated to make any such assignment as
a result of demand by the Borrower pursuant to this Section 9.07(a) unless and
until such Lender shall have received one or more payments from either the
Borrower or one or more Eligible Assignees in an aggregate amount at least equal
to the aggregate outstanding principal amount of the Advances owing to such
Lender, together with accrued interest thereon to the date of payment of such
principal amount and all other amounts payable to such Lender under this
Agreement and (vi) the parties to each such assignment shall execute and deliver
to the Administrative Agent, for its acceptance and recording in the Register,
an Assignment and Acceptance, together with any Note or Notes.
74
(b) Upon such execution, delivery, acceptance and recording, from and
after the effective date specified in such Assignment and Acceptance, (i) the
assignee thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance, have the rights and obligations of a Lender Party hereunder and (ii)
the Lender Party assignor thereunder shall, to the extent that rights and
obligations hereunder have been assigned by it pursuant to such Assignment and
Acceptance, relinquish its rights (other than its rights under Sections 2.10,
2.12 and 9.04 to the extent any claim thereunder relates to an event arising
prior to such assignment) and be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all of the
remaining portion of an assigning Lender Party's rights and obligations under
this Agreement, such Lender Party shall cease to be a party hereto).
(c) By executing and delivering an Assignment and Acceptance, each
Lender Party assignor thereunder and each assignee thereunder confirm to and
agree with each other and the other parties thereto and hereto as follows: (i)
other than as provided in such Assignment and Acceptance, such assigning Lender
Party makes no representation or warranty and assumes no responsibility with
respect to any statements, warranties or representations made in or in
connection with any Loan Document or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of, or the perfection or
priority of any lien or security interest created or purported to be created
under or in connection with, any Loan Document or any other instrument or
document furnished pursuant thereto; (ii) such assigning Lender Party makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of any Loan Party or the performance or observance by any
Loan Party of any of its obligations under any Loan Document or any other
instrument or document furnished pursuant thereto; (iii) such assignee confirms
that it has received a copy of this Agreement, together with copies of the
financial statements referred to in Section 4.01 and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into such Assignment and Acceptance; (iv) such assignee will,
independently and without reliance upon any Agent, such assigning Lender Party
or any other Lender Party and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under this Agreement; (v) such assignee confirms
that it is an Eligible Assignee; (vi) such assignee appoints and authorizes each
Agent to take such action as agent on its behalf and to exercise such powers and
discretion under the Loan Documents as are delegated to such Agent by the terms
hereof and thereof, together with such powers and discretion as are reasonably
incidental thereto; and (vii) such assignee agrees that it will perform in
accordance with their terms all of the obligations that by the terms of this
Agreement are required to be performed by it as a Lender Party.
(d) The Administrative Agent, acting for this purpose (but only for
this purpose) as the agent of the Burrower, shall maintain at its address
referred to in Section 9.02 a copy of each Assignment and Acceptance delivered
to and accepted by it and a register for the recordation of the names and
addresses of the Lender Parties and the Commitment under each Facility of, and
principal amount of the Advances owing under each Facility to, each Lender from
time to time (the "REGISTER"). The entries in the Register shall be conclusive
and binding for all purposes, absent manifest error, and the Borrower, the
Agents and the Lender Parties shall treat each Person whose name is recorded in
the Register as a Lender Party hereunder for all purposes of this Agreement. The
Register shall be available for inspection by the Borrower or any Agent or any
Lender Party at any reasonable time and from time to time upon reasonable prior
notice.
(e) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender Party and an assignee, together with any Note subject to such
assignment, the Administrative Agent shall, if such Assignment and Acceptance
has been completed and is in substantially the form of Exhibit C hereto, (i)
accept such Assignment and Acceptance, (ii) record the information contained
therein in the Register and (iii) give prompt notice thereof to the Borrower and
each other Agent. If an assignee requests, the Borrower shall promptly execute
and deliver to the Administrative Agent in accordance with Section 2.16 a Note
to the order of such assignee in an amount equal to the Commitment assumed by
such
75
assignee under each Facility pursuant to such Assignment and Acceptance and, if
any assigning Lender has retained a Commitment hereunder under such Facility and
if such assigning Lender requests, a new Note to the order of such assigning
Lender in an amount equal to the Commitment retained by it hereunder. Such new
Note shall be dated the effective date of such Assignment and Acceptance and
shall otherwise be in substantially the form of Exhibit A hereto.
(f) Each Issuing Bank may assign to an Eligible Assignee all of its
rights and obligations under the undrawn portion of its Letter of Credit
Commitment at any time; provided, however, that (i) each such assignment shall
be to an Eligible Assignee and (ii) the parties to each such assignment shall
execute and deliver to the Administrative Agent, for its acceptance and
recording in the Register, an Assignment and Acceptance.
(g) Each Lender Party may sell participations to one or more Persons
(other than any Loan Party or any of its Affiliates) in or to all or a portion
of its rights and obligations under this Agreement (including, without
limitation, all or a portion of its Commitments, the Advances owing to it and
the Note (if any) held by it); provided, however, that (i) such Lender Party's
obligations under this Agreement (including, without limitation, its
Commitments) shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations,
(iii) such Lender Party shall remain the holder of such Note for all purposes of
this Agreement, (iv) the Borrower, the Agents and the other Lender Parties shall
continue to deal solely and directly with such Lender Party in connection with
such Lender Party's rights and obligations under this Agreement and (v) no
participant under any such participation shall have any right to approve any
amendment or waiver of any provision of any Loan Document, or any consent to any
departure by any Loan Party therefrom, except to the extent that such amendment,
waiver or consent would reduce the principal of, or interest on, the Note or any
fees or other amounts payable hereunder, in each case to the extent subject to
such participation, postpone any date fixed for any payment of principal of, or
interest on, the Note or any fees or other amounts payable hereunder, in each
case to the extent subject to such participation, or release all or
substantially all of the Collateral.
(h) Any Lender Party may, in connection with any assignment or
participation or proposed assignment or participation pursuant to this Section
9.07, disclose to the assignee or participant or proposed assignee or
participant any information relating to the Borrower furnished to such Lender
Party by or on behalf of the Borrower; provided, however, that, prior to any
such disclosure, the assignee or participant or proposed assignee or participant
shall agree to preserve the confidentiality of any Confidential Information
received by it from such Lender Party in accordance with Section 9.09.
(i) Notwithstanding any other provision set forth in this Agreement,
any Lender Party may at any time create a security interest in all or any
portion of its rights under this Agreement (including, without limitation, the
Advances owing to it and the Note held by it) in favor of any Federal Reserve
Bank in accordance with Regulation A of the Board of Governors of the Federal
Reserve System.
SECTION 9.08. Execution in Counterparts. This Agreement may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of a signature page to this Agreement by
telecopier shall be effective as delivery of an original executed counterpart of
this Agreement.
SECTION 9.09. Confidentiality. Neither any Agent nor any Lender Party
shall disclose any Confidential Information to any Person without the consent of
the Borrower, other than (a) to such Agent's or such Lender's Affiliates and
their officers, directors, employees, agents and advisors and to actual or
prospective Eligible Assignees and participants, and then only on a confidential
basis, (b) as required by any law, rule or regulation or judicial process, (c)
as requested or required by any state, Federal or foreign authority or examiner
regulating such Lender Party and (d) to any rating agency when
76
required by it, provided that, prior to any such disclosure, such rating agency
shall undertake to preserve the confidentiality of any Confidential Information
relating to the Loan Parties received by it from such Lender Party substantially
in accordance with this Section 9.09.
SECTION 9.10. No Liability of the Issuing Bank. The Borrower assumes
all risks of the acts or omissions of any beneficiary or transferee of any
Letter of Credit with respect to its use of such Letter of Credit. Neither the
Issuing Bank nor any of its officers or directors shall be liable or responsible
for: (a) the use that may be made of any Letter of Credit or any acts or
omissions of any beneficiary or transferee in connection therewith; (b) the
validity, sufficiency or genuineness of documents, or of any endorsement
thereon, even if such documents should prove to be in any or all respects
invalid, insufficient, fraudulent or forged; (c) payment by the Issuing Bank
against presentation of documents that do not comply with the terms of a Letter
of Credit, including failure of any documents to bear any reference or adequate
reference to the Letter of Credit; or (d) any other circumstances whatsoever in
making or failing to make payment under any Letter of Credit, except that the
Borrower shall have a claim against the Issuing Bank, and the Issuing Bank shall
be liable to the Borrower, to the extent of any direct, but not consequential,
damages suffered by the Borrower that the Borrower proves were caused by (i) the
Issuing Bank's willful misconduct or gross negligence as determined in a final,
non-appealable judgment by a court of competent jurisdiction in determining
whether documents presented under any Letter of Credit comply with the terms of
the Letter of Credit or (ii) the Issuing Bank's willful failure to make lawful
payment under a Letter of Credit after the presentation to it of a draft and
certificates strictly complying with the terms and conditions of the Letter of
Credit. In furtherance and not in limitation of the foregoing, the Issuing Bank
may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or
information to the contrary.
SECTION 9.11. Release of Collateral Upon the sale, lease, transfer or
other disposition of any item of Collateral of any Loan Party (including,
without limitation, as a result of the sale, in accordance with the terms of the
Loan Documents, of the Loan Party that owns such Collateral) in accordance with
the terms of the Loan Documents, the Administrative Agent will, at the
Borrower's expense, execute and deliver to such Loan Party such documents as
such Loan Party may reasonably request to evidence the release of such item of
Collateral from the assignment and security interest granted under the
Collateral Documents in accordance with the terms of the Loan Documents.
SECTION 9.12. Jurisdiction, Etc. (a) Each of the parties hereto hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State court or Federal court of the
United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this
Agreement or any of the other Loan Documents to which it is a party, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in any such New York State
court or, to the fullest extent permitted by law, in such Federal court. Each of
the parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement shall
affect any right that any party may otherwise have to bring any action or
proceeding relating to this Agreement or any of the other Loan Documents in the
courts of any jurisdiction.
(b) Each of the parties hereto irrevocably and unconditionally waives,
to the fullest extent it may legally and effectively do so, any objection that
it may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or any of the other Loan
Documents to which it is a party in any New York State or Federal court. Each of
the parties hereto hereby irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.
77
SECTION 9.13. Governing Law. This Agreement and the Notes shall be
governed by, and construed in accordance with, the laws of the State of New
York.
SECTION 9.14. Waiver of Jury Trial. Each of the Borrower, the Agents
and the Lender Parties irrevocably waives all right to trial by jury in any
action, proceeding or counterclaim (whether based on contract, tort or
otherwise) arising out of or relating to any of the Loan Documents, the
Advances, the Letters of Credit or the actions of any Agent or any Lender Party
in the negotiation, administration, performance or enforcement thereof.
78
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.
KEY3MEDIA GROUP, INC.
By
----------------------------------
Name:
Title:
KEY3MEDIA EVENTS, INC.,
as Guarantor
By
----------------------------------
Name:
Title:
XXXXXX XXXXXXX SENIOR
FUNDING, INC.,
as Administrative Agent
By
----------------------------------
Name:
Title:
XXXXXX XXXXXXX & CO.
INCORPORATED,
as Collateral Agent
By
----------------------------------
Name:
Title:
THE BANK OF NEW YORK,
as Syndication Agent
By
----------------------------------
Name:
Title:
UBS WARBURG LLC,
as Documentation Agent
By
----------------------------------
Name:
Title:
INITIAL LENDERS
XXXXXX XXXXXXX SENIOR
FUNDING, INC.
By
----------------------------------
Name:
Title:
THE BANK OF NEW YORK
By
----------------------------------
Name:
Title:
UBS AG, STAMFORD BRANCH
By
----------------------------------
Name:
Title:
INITIAL ISSUING BANK
XXXXXX XXXXXXX SENIOR
FUNDING, INC.
By
----------------------------------
Name:
Title:
SCHEDULE I
COMMITMENTS AND APPLICABLE LENDING OFFICES
-------------------------------------------------------------------------------------------------------------------
REVOLVING DOMESTIC EURODOLLAR
CREDIT LETTER OF CREDIT LENDING LENDING
NAME OF INITIAL LENDER COMMITMENT COMMITMENT OFFICE OFFICE
-------------------------------------------------------------------------------------------------------------------
Xxxxxx Xxxxxxx Senior $78,750,000 $50,000,000 0000 Xxxxxxxx 0000 Xxxxxxxx
Funding, Inc. Xxx Xxxx, XX 00000 Xxx Xxxx, XX 00000
-------------------------------------------------------------------------------------------------------------------
The Bank of New York $30,000,000
-------------------------------------------------------------------------------------------------------------------
UBS AG, Stamford Branch $41,250,000 000 Xxxxxxxxxx Xxxx. 000 Xxxxxxxxxx Xxxx.
Xxxxxxxx, XX 00000 Xxxxxxxx, XX 00000
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
