Contract
Exhibit 4.6
THIRD AMENDING AGREEMENT to the Credit Agreement dated as of February 7, 2003, entered into in
Xxxxxxx, Xxxxxxx, as amended by a First Amending Agreement dated as of December 2, 2003 and by a
Second Amending Agreement dated as of October 12, 2004, entered into as of this 17th day of
January, 2006.
AMONG:
|
SUN MEDIA CORPORATION, a corporation continued and existing under the laws of British Columbia, Canada, having its chief executive office at 000 Xxxx Xxxxxx Xxxx, in the City of Toronto, Province of Ontario (hereinafter called the “Borrower”) | |
| PARTY OF THE FIRST PART | ||
AND:
|
THE FINANCIAL INSTITUTIONS NAMED ON THE SIGNATURE PAGES HEREOF OR FROM TIME TO TIME PARTIES TO THE CREDIT AGREEMENT (the “Lenders”) | |
| PARTIES OF THE SECOND PART | ||
AND:
|
BANK OF AMERICA, N. A., AS ADMINISTRATIVE AGENT FOR THE LENDERS, a duly constituted bank, having a place of business at 0000 Xxxxxx Xxxxxx, 0xx floor, in the City of Xxx Xxxxxxxxx, Xxxxxxxxxx, 00000, and at 000 Xxxxx Xxxxxx Xxxx, Xxxxx 0000, Xxxxxxx, Xxxxxxx, X0X 0X0 (hereinafter called the “Administrative Agent”) | |
| PARTY OF THE THIRD PART |
WHEREAS the parties hereto are parties to a Credit Agreement dated as of February 7, 2003, as
amended by a First Amending Agreement dated as of December 2, 2003 and by a Second Amending
Agreement dated as of October 12, 2004 (the “Credit Agreement”);
WHEREAS the Borrower has requested certain amendments to the Credit Agreement in order to (i)
exclude certain limited charges from Consolidated EBITDA for a period of time, (ii) create a new
Term Facility C in an amount of Cdn.$40,000,000, (iii) amend the definition of Hedging Agreements
to include xxxxxx of commodities used in the Business, (iv) increase the Leverage Ratio, and (v)
remove the limitations on Permitted Distributions and Permitted Investments such that they are no
longer restricted by reference to Excess Cash Flow; and
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WHEREAS the Lenders have agreed with the Borrower to the amendments contemplated hereby, and
as such, the Lenders have complied with the provisions of Section 12.01 of the Credit Agreement, as
evidenced by the signature of each Lender on this Agreement;
NOW THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
I. INTERPRETATION
1. This Third Amending Agreement is declared to be supplemental to the Credit Agreement and is to
form part thereof and shall have the same effect as though incorporated therein. The words and
expressions starting by an upper case letter used herein, unless otherwise defined herein or unless
there is something in the subject or the context inconsistent therewith, have the same meaning as
that ascribed to them in the Credit Agreement and all of the provisions of the Credit Agreement,
except only insofar as they may be inconsistent with the express provisions hereof, shall apply to
and shall have effect in connection with this Third Amending Agreement.
2. Except as otherwise expressly amended hereby, the Credit Agreement remains unamended and in full
force and effect. The amendments set forth herein shall not constitute novation of the obligations
of the parties to the Credit Agreement and the other Credit Documents.
3. The preamble of this Third Amending Agreement shall form an integral part hereof as if recited
at length herein.
4. The division of this Third Amending Agreement into articles, sections, subsections, paragraphs
and subparagraphs and the insertion of titles are only meant to be for reference and do not affect
the meaning or the interpretation of this Third Amending Agreement.
5. This Third Amending Agreement may be executed in any number of counterparts, each of which shall
be deemed to be an original, but all such separate counterparts shall together constitute but one
and the same instrument.
6. This Third Amending Agreement and the interpretation and enforcement thereof shall be governed
by and construed in accordance with the laws of the Province of Ontario.
7. In each Section of the Credit Agreement that is amended, all modifications to the actual text of
the Credit Agreement are shown with additions double-underlined and deletions struck out. The
addition of entire sections is also indicated by double-underlining such added sections.
8. This Third Amending Agreement shall become effective on January 17, 2006.
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II. AMENDMENTS
1. Section 1.01 of the Credit Agreement is hereby amended as follows:
1.1 The definition of “Accommodations Outstanding” is amended by adding
references to the new Term Facility C. Consequently, the definition of “Accommodations
Outstanding” now reads as follows:
““Accommodations Outstanding” means, at any time, the principal amount owed to the
Lenders under the Credit Facilities, and, more specifically, (i) under Facility A,
in relation to (a) the Borrower and all Facility A Lenders, the amount of all
Accommodations outstanding thereunder at such time made to the Borrower by the
Facility A Lenders, and (b) the Borrower and each Facility A Lender, the amount of
all Accommodations outstanding at such time made by such Facility A Lender under its
Facility A Commitment; (ii) in respect of Swingline Advances, in relation to the
Borrower and the Swingline Lender, the Accommodations outstanding at such time made
to the Borrower by the Swingline Lender; (iii) in respect of Letters of Credit, in
relation to the Borrower and the Issuing Lender, the Face Amount of all Letters of
Credit outstanding at such time issued by the Issuing Lender to the Borrower; (iv)
under Term Facility B, in relation to (a) the Borrower and all Term Facility B
Lenders, the amount of all Accommodations outstanding thereunder at such time made
to the Borrower by the Term Facility B Lenders, and (b) the Borrower and each Term
Facility B Lender, the amount of all Accommodations outstanding at such time made by
such Term Lender under its Term Facility B Credit Commitment, and (v) under Term
Facility C, in relation to (a) the Borrower and all Term Facility C Lenders, the
amount of all Accommodations outstanding thereunder at such time made to the
Borrower by the Term Facility C Lenders, and (b) the Borrower and each Term Facility
C Lender, the amount of all Accommodations outstanding at such time made by such
Term Lender under its Term Facility C Credit Commitment. In determining
Accommodations Outstanding, the aggregate amount thereof shall be determined on the
basis of (i) in the case of all Credit Facilities, the aggregate principal amount of
all Advances; (ii) in the case of Facility A, an amount equal to the aggregate of
the principal amount of all Swingline Advances, the Face Amount of all Letters of
Credit for which the Facility A Lenders are contingently liable pursuant to Section
3.01(2) and Section 5.02(2), as the case may be, and the Face Amount of all
outstanding BA Instruments which any applicable Lender has purchased or arranged to
have purchased (and in respect of each Facility A Lender, a rateable part of such
amounts), and (iii) in the case of Term Facility C, an amount equal to the Face
Amount of all outstanding BA Instruments which any applicable Lender has purchased
or arranged to have purchased.”;
1.2 The definition of “Additional Distributions” is deleted.
1.3 The definition of “Advances” is amended as follows to take into account the
new Term Facility C:
““Advances” means advances of funds in Canadian Dollars made by a Facility A Lender
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under Facility A, advances in US$ by way of Libor Advances and US Prime Rate
Advances made by a Term Lender under Term Facility B, and advances in Canadian
Dollars made by a Term Lender under Term Facility C, all in accordance with Article
3, and “Advance” means any one of such advances. Advances made or to be made
available by the Swingline Lender pursuant to Article 3 are sometimes referred to as
“Swingline Advances”.”
1.4 The definition of “Agency Branch Account” is amended to contemplate the
addition of the new Term Facility C, as follows:
““Agency Branch Account” means, (a) for all of the Facility A Lenders and the Term
Facility C Lenders, the account at the branch of the Administrative Agent located at
000 Xxxxx Xxxxxx Xxxx, Xxxxx 0000, in the City of Toronto, Province of Ontario, M5V
3L2, Wiring — “DIRECT through “LVTS” to: Bank of America N. A., Canada Branch,
TRANSIT #: 56792- 241, Account #00000000, SWIFT CODE:
XXXXXXXX, Reference: Sun Media. Att’n: Loans Processing, or such other account or
address in Canada of which the Agent may notify the Borrower from time to time; and
(b) for all of the Term Facility B Lenders, the account at the Agent’s office
located at Bank of America, N. A., 0000 Xxxxxxx Xxxx., 0xx Xxxxx, XX: CA4-706-05-09,
Xxxxxxx, XX 00000, Phone: (000) 000-0000, Fax: (000) 000-0000, E-mail:
xxxxxxxx.x.xxxxxxxx@xxxxxxxxxxxxx.xxx, wiring instructions Bank of America, N. A.,
ABA #: 000-000-000, Acct. #: 37508-36479, Ref: Sun Media Corp., or such other
account or address in the U.S.A. of which the Administrative Agent may notify the
Borrower from time to time.”
1.5 The definition of “Commitment” is amended to contemplate the addition of the
new Term Facility C, as follows:
““Commitment” means, at any time, in respect of (i) Facility A, Cdn.$75,000,000 (the
“Facility A Commitment”), which includes the Swingline Advances up to an amount of
Cdn.$5,000,000 (the “Swingline Commitment”) and Letters of Credit up to an amount of
Cdn.$2,000,000; (ii) Term Facility B, US$230,000,000 (the “Term Facility B Credit
Commitment”); and (iii) Term Facility C, Cdn.$40,000,000 (the “Term Facility C
Credit Commitment” and, collectively with the Term Facility B Credit Commitment, a
“Term Credit Commitment”), in each case, as such amount may be decreased pursuant to
Article 2. A “Lender’s Facility A Commitment”, a
“Swingline Lender’s Commitment”, a “Lender’s Term Facility B Credit Commitment” and
a “Lender’s Term Facility C Credit Commitment” means, at any time, the relevant
amount designated as such and set forth opposite such Lender’s name on the signature
pages hereof.”
1.6 A new definition of “Commodities Hedging Agreements is added as follows:
““Commodities Hedging Agreements” means one or more agreements between the Borrower
and any Person evidencing the hedge of any pricing risk related to the purchase
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of commodities connected to its Business.”
1.7 The definition of “Consolidated EBITDA is amended to add back certain
Special Charges to Consolidated EBITDA, as follows:
“Consolidated EBITDA” means, for any Person, for any period and without duplication,
earnings of such Person on a consolidated basis before non-controlling interests,
extraordinary items, Consolidated Interest Charges, Special Charges (subject to the
following sentence), foreign exchange translation gains or losses not involving the
payment of cash, amortization of deferred financing costs and other non-cash
financial charges, taxes, depreciation and amortization, without taking into account
any goodwill adjustments, calculated on a consolidated basis, and otherwise
calculated in
accordance with GAAP; for greater certainty, there shall be excluded from the
calculation of Consolidated EBITDA, to the extent included in such calculation, the
amount of any income or expense relating to Back-to-Back Securities. When
calculating “Consolidated EBITDA” from time to time for the purposes of the
definitions of “Fixed Charge Coverage Ratio”, “Interest Charge Coverage Ratio” and
“Leverage Ratio”, Special Charges in an aggregate amount not to exceed up to
Cdn.$25,000,000 (incurred from January 17, 2006 until September 30, 2007) may be
added to the earnings of such Person, to the extent previously deducted from the
earnings of such Person.
1.8 The definition of “Credit Facilities” is amended to add references to Term
Facility C, as follows:
““Credit Facilities” means, collectively, Facility A, Term Facility B and Term
Facility C, and, in the singular any one of them.”
1.9 The definition of “Excess Cash Flow” is deleted.
1.10 The definition of “Excess Cash Flow Certificate” is deleted.
1.11 The definition of “Hedging Agreements” is amended as follows, to take into
account the addition of Commodities Hedging Agreements:
““Hedging Agreements” means one or more agreements between the Borrower and one or
more of the Lenders or their Affiliates evidencing (i) any interest rate hedge
(including any interest rate swap, cap or collars); (ii) any foreign exchange hedge,
as may be contemplated by the Hedging Requirements or otherwise; or (iii) any
Commodities Hedging Agreements.”
1.12 The definition of “Investments” is amended by replacing the word
“Indebtedness” on the 3rd line thereof with the word “Debt”.
1.13 The definition of “Lenders” is amended to add references to the Term
Facility C Lenders, as follows:
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“Lenders” means, collectively, the financial institutions and other Persons set
forth on the signature pages hereof as Lenders, and any Assignee thereof upon such
Assignee
executing and delivering an assignment and assumption agreement referred to in
Section 12.08(5) to the Borrower and the Administrative Agent and in the singular
any one of such Lenders. A Lender which, at any relevant time, has (i) a Lender’s
Facility A Commitment is sometimes referred to herein as a “Facility A Lender”; (ii)
a Swingline Lender’s Commitment is sometimes referred to herein as a “Swingline
Lender”; (iii) a Lender’s Term Facility B Credit Commitment is sometimes referred to
herein as a “Term Facility B Lender”; (iv) a Lender’s Term Facility C Credit
Commitment is sometimes referred to herein as a “Term Facility C Lender”, and,
collectively with a Term Facility B Lender, a “Term Lender”. When used in
connection with “Hedging Agreements”, the term “Lender” shall include any Affiliate
of a Lender. When used in connection with the Security, the term “Lender” shall
include the provider of the Overdraft Facility and any counterparty to a Hedging
Agreement, provided that the counterparty was a Lender or an Affiliate of a Lender
at the time any such Hedging Agreement was entered into. Prior to the occurrence of
any Default which is continuing or an Event of Default which has not been waived,
each Facility A Lender and each Term Facility C Lender shall not be a non-resident
of Canada within the meaning of the Income Tax Act (Canada).”
1.14 The definition of “Permitted Distribution” is amended to remove the concept
of “Additional Distributions” and references to “Excess Cash Flow”, so as to permit same
provided the Borrower conforms on a pro forma basis with all of its financial covenants
and no Default would result from such Distribution. The amended definition provides:
““Permitted Distribution” means (i) the payment of an amount of Cdn.$260,000,000 on
or about the Closing Date, directly or indirectly, to Quebecor Media Inc. by way of
loans, dividends, return of capital or share repurchases and the repayment of the
Existing Notes and any interest or premium in respect thereof and amounts owing
under the Existing Credit Agreement; and (ii) Distributions by a Guarantor to the
Borrower or by a subsidiary of the Borrower to any Guarantor or to the Borrower. In
addition, provided that no Event of Default has occurred which has not been waived
by the Lenders, “Permitted Distributions” shall also mean (a) payments on account of
regularly scheduled instalments of principal and interest on Permitted Debt
(including a premium and fees, if any, thereon), other than the Senior Notes or any
Subordinated Debt (b) regularly scheduled payments of interest on the Senior Notes
and on Subordinated Debt; (c) payments made in connection with or in respect of the
Back-to-Back Securities or the Existing Back-to-Back Securities; provided, however,
that to the extent such payments are made to any Affiliates of the Borrower that are
not Loan Parties, all corresponding payments required to be paid by such Affiliates
pursuant to the related Back-to-Back Securities or Existing Back-to-Back Securities
are received, immediately prior to,
concurrently with or immediately subsequent to any such payments, by all applicable
Loan Parties, and each such payment by a Loan Party shall be conditional upon
receipt of an equal or greater amount from such non-Loan Party Affiliate; (d) any
Tax Benefit Transaction; (e) the redemption or repayment of up to $50,000,000 of
Senior Notes (and, for
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greater certainty, no other prepayment of the Senior Notes
will be permitted, from any source (other than new Subordinated Debt), without the
consent of the Majority Lenders who have Commitments at the time of any such
proposed prepayment); (f) the payment of the proceeds of the sale of Toronto Sun
International Inc., its subsidiaries or all or substantially all of their respective
Assets (hereinafter, the “Florida Sun”), if the Disposition in question occurs
within 60 days following the Closing Date; (g) the payment of amounts required to be
paid under the joint Quebecor/Sun Media pension plan with respect to employees of
the Loan Parties alone; (h) the payment of a management fee or other similar expense
by the Borrower to its direct or indirect parent company for bona fide services
(including reimbursement for expenses incurred in connection with, or allocation of
corporate expenses in relation to, providing such services) provided to, and
directly related to the operations of, the Loan Parties, in an aggregate amount not
to exceed 1.25% of consolidated revenues (being gross revenues calculated in
accordance with GAAP less any amounts derived from subsidiaries that are not Loan
Parties, and save that any portion of such gross revenues derived from a Person that
is not a
subsidiary of the Borrower accounted for by the equity method of accounting shall be
included in such calculation only to the extent of the amount of dividends or
distributions actually paid to a Loan Party by such Person) in any twelve-month
period; and (i) any other Distribution made to any Person, provided that after
giving effect to such Distribution, no Default shall have occurred and be
continuing, no Event of Default shall have occurred and not been waived, and the
Borrower shall be in pro forma compliance with all financial covenants contained in
Section 8.03.”
1.15 The definition of “Permitted Investment” is amended as follows to remove
certain limitations on Investments consisting of an Excess Cash Flow basket and a
$50,000,000 limitation on other Investments:
““Permitted Investment” means (A) any Investment in Back-to-Back Securities or
Existing Back-to-Back Securities or in connection with Tax Benefit Transactions and
(B) any Investments (including any Acquisitions) (a “Permitted Acquisition”)
provided that after giving effect to such Investment or Acquisition and any
Accommodation made under the Credit Facilities to fund all or any part of such
Investment or the purchase price of such Acquisition, no Default shall have occurred
and be continuing, and no Event of Default shall have occurred and not been waived,
and the Borrower will be in pro forma compliance with the financial covenants set
forth in Section 8.03.”
1.16 The definitions of “Senior Notes”, “Senior Note Indenture” and
“Subordinated Debt” are amended by adding a reference to Term Facility C, as follows:
““Senior Notes” means the notes created under the Senior Note Indenture and dated as
of February 7, 2003, designated as “75/8% Senior Notes”, and maturing on
February 15, 2013, as same may be amended, modified or supplemented from time to
time, provided that no such amendment shall affect the unsecured nature of the
Senior Notes, nor shall it shorten the maturity of the Senior Notes to any period
which is less than one year following the expiry of
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the Term of the last to expire
of Facility A, Term Facility B or Term Facility C.
“Senior Note Indenture” means the trust indenture dated as of February 7, 2003
between National City Bank and the Borrower under which the Senior Notes were
issued, as same may be amended, modified or supplemented from time to time, provided
that no such amendment shall affect the unsecured nature of the Senior Notes, nor
shall it shorten the maturity of the Senior Notes to any period which is less than
one year following the expiry of the Term of the last to expire of Facility A, Term
Facility B or Term Facility C.
“Subordinated Debt” means, in respect of any Person, Debt of such Person which (i)
has covenants, events of default and redemption, repurchase and modification
provisions, in the aggregate, that are not materially less favorable to such Person
than the covenants, events of default and redemption, repurchase and modification
provisions of the Senior Notes as in effect on the Closing Date; (ii) have no
required redemption provisions and mature after the expiry of the Term of the last
to expire of Facility A, Term Facility B or Term Facility C; (iii) are unsecured;
(iv) have no payment of interest following an Event of Default which has not been
waived, and do not contemplate any payment of principal, voluntary (except out of
the proceeds of the issuance of other Subordinated Debt, and not following a Default
which has occurred and is continuing or an Event of Default which has not been
waived) or involuntary, at any time prior to the expiry of the Term of the last to
expire of Facility A, Term Facility B or Term Facility C; and (v) provides that the
Accommodations Outstanding and any other amounts payable hereunder or under any
Credit Document will have the benefit of such subordination terms.”
1.17 A new definition of “Special Charges” is added as follows:
““Special Charges” means, for the Borrower and its subsidiaries on a
consolidated basis, the sum of, without duplication, any non-recurring charge
relating to their
investment in printing facilities, including severance, pension plan curtailment
or any other special expense related thereto.”
1.18 The definition of “Term” is amended by adding a reference to Term Facility
C, as follows:
““Term” means (a) the period commencing on the Closing Date and terminating with
respect to (i) Facility A, five (5) years therefrom, and (ii) Term Facility B, six
(6) years therefrom, and (b) the period commencing on January 17, 2006 and
terminating on February 7, 2009 with respect to Term Facility C.”
1.19 A new definition of “Term Facility C” is added as follows:
““Term Facility C” means the term credit facility in an amount of Cdn.$40,000,000
made available to the Borrower in accordance with Article 2.”
2. Section 2.01(1) of the Credit Agreement is hereby amended as follows to include references to
Term
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Facility C:
“Section 2.01. Availability. (1) Each Lender individually and not
jointly and severally (or solidarily) agrees, on the terms and conditions of this
Agreement, to
make Accommodations rateably to the Borrower in accordance with such Lender’s
Facility A Commitment and / or Term Credit Commitment. Accommodations under
Facility A may be made available as (i) Prime Rate Advances and Swingline Advances,
where applicable, pursuant to Article 3; (ii) Bankers’ Acceptances pursuant to
Article 4; or Letters of Credit under Article 5. Accommodations under Term Facility
B may be made available as Libor Advances or as US Prime Rate Advances.
Accommodations under Term Facility C may be made available as (i) Prime Rate
Advances pursuant to Article 3 or (ii) Bankers’ Acceptances pursuant to Article 4.
The Swingline Lender agrees, on the terms and conditions of this Agreement, to make
Swingline Advances to the Borrower in accordance with its Swingline Commitment. The
Issuing Lender agrees, on the terms and conditions of this Agreement, to make
Letters of Credit available to the Borrower in accordance with the provisions of
Article 5.”
3. Sections 2.02(1) and 2.02(2) of the Credit Agreement are hereby amended as follows to include
references to Term Facility C:
“Section 2.02. Commitments and Facility Limits. (1) The Accommodations Outstanding
(i) to all Facility A Lenders under Facility A shall not at any time exceed the
Facility A Commitment; and (ii) to each Facility A Lender under Facility A shall not
at any time exceed such Lender’s Facility A Commitment (provided, for
greater certainty, that the Swingline Lender’s Facility A Commitment shall not be
reduced by more than its rateable portion of Swingline Advances made or to be made
by it in its capacity as Swingline Lender, and the Issuing Lender’s Facility A
Commitment shall not be reduced by more than its rateable portion of the
Accommodations Outstanding by Letter of Credit made or to be made by it in its
capacity as Issuing Lender). The principal amount of all Swingline Advances
outstanding to the Swingline Lender shall not, at any time, exceed the Swingline
Commitment, which shall itself not exceed Cdn.$5,000,000. The aggregate Face Amount
of Letters of Credit outstanding shall not at any time exceed Cdn.$2,000,000. The
Accommodations Outstanding (a) to all Term Facility B Lenders under Term Facility B
and to all Term Facility C Lenders under Term Facility C shall not at any time
exceed the Term Facility B Credit Commitment and the Term Facility C Credit
Commitment, respectively; and (b) to each Term Lender under Term Facility B and Term
Facility C shall not at any time exceed such Lender’s Term Facility B Credit
Commitment or Term Facility C Credit Commitment, respectively.”
(2) Facility A shall revolve and, except as otherwise provided herein, no payment
under Facility A shall reduce the Facility A Commitment or any Lender’s Facility A
Commitment. Term Facility B and Term Facility C shall not revolve and
any amount repaid or prepaid, as the case may be, under Term Facility B or Term
Facility C cannot be reborrowed and shall reduce the Term Facility B Credit
Commitment or the Term
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Facility C Credit Commitment, by the amount repaid or
prepaid, as the case may be.”
4. Section 2.03(1) of the Credit Agreement is hereby amended as follows to remove restrictions on
the use of proceeds:
“Section 2.03. Use of Proceeds. (1) The Borrower may use the proceeds of any
Accommodations under Facility A (i) for general corporate purposes, (ii) in respect
of an amount of not more than $5,000,000, to provide for the Defeasance of the
Existing Credit Agreement and the Existing Notes and (iii) to make Permitted
Distributions, provided that no Accommodation for such purpose shall be permitted
unless the remaining (unused) Facility A Commitment available under Facility A after
making any such Permitted Distribution would be at least $25,000,000.”
5. Section 2.03(3) of the Credit Agreement is hereby renumbered as Section 2.03(4), and a new
Section 2.03(3) is hereby added as follows:
“(3) The Borrower may use the proceeds of any Accommodations under Term Facility C,
together with other funds available to it, for general corporate purposes (including
Permitted Distributions).”
6. A new Section 2.04(3) is hereby added as follows:
“(3) Subject to Section 9.01, the Borrower shall repay the Accommodations
Outstanding under Term Facility C in quarterly installments equal to .25% of the
full amount of Term Facility C, being Cdn.$40,000,000, each such installment being
payable on the last Business Day of each of the months of April, July, October and
January of each year commencing in April 2006 until January 31, 2009, and shall
repay the balance of the Accommodations Outstanding under Term Facility C on the
last day of the Term of Term Facility C.”
7. Section 2.05 of the Credit Agreement is hereby amended as follows to contemplate Mandatory
Prepayments in respect of Term Facility C and to remove the last paragraph which is no longer
relevant:
“Section 2.05. Mandatory Prepayments. (1) Subject to subsection (5) hereof, the
Borrower agrees to make the following mandatory prepayments (“Mandatory
Prepayments”).
(2) Subject to the next following sentence, an amount equal to the Net Proceeds from
any Disposition of any Assets in excess of $10,000,000 by the Borrower or any of the
Guarantors (other than any Disposition of Assets permitted pursuant to clauses (i),
(ii), (iii) and (iv) of Section 8.02(d)) shall be applied within 365 days of receipt
to the prepayment of Accommodations Outstanding under (i) firstly, Term Facility B
and Term Facility C on a pro rata basis; and (ii) secondly, Facility A (provided
that the Facility A Commitment shall not be reduced as a result of such payment), in
each case, in accordance with
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Section 2.09 hereof, except to the extent that the Net
Proceeds from such Disposition of Assets are reinvested (other than in cash or Cash
Equivalents) in the Business within 360 days of the date of receipt of such Net
Proceeds.
(3) Subject as provided in the next following sentence, an amount equal to 75% of
the Net Proceeds of any Subordinated Debt (other than, for greater certainty,
Subordinated Debt, the Net Proceeds of which are used to repay or prepay the Senior
Notes or other Subordinated Debt within two Business Days of the date of receipt of
such Net Proceeds) by the Borrower or the Guarantors shall be applied to the
prepayment of the Accommodations Outstanding under Term Facility B and Term Facility
C on a pro rata basis, in accordance with Section 2.09 hereof. The percentage of
Net Proceeds payable pursuant to this Section 2.05(3) shall be reduced to 50% for
any Subordinated Debt if, as of the last day of the most recently completed
Financial Quarter, the Leverage Ratio is less than 2.5:1, and would not exceed 2.5:1
as a result of the incurrence of such new Subordinated Debt (as evidenced by a
Compliance Certificate delivered to the Administrative Agent and the Lenders).
(4) Subject as provided in the next following sentence, an amount equal to 75% of
the Net Proceeds from the issuance of any securities (other than the Back-to-Back
Securities, the Existing Back-to-Back Securities and Debt securities, but including
Debt securities of the nature described in clause (viii) of the definition of
“Debt”) by the Borrower or the Guarantors (other than the issuance of equity by any
Guarantor to the Borrower or another Guarantor or any capital contribution by the
Borrower or
any Guarantor in another Loan Party) shall be applied to the prepayment of the
Accommodations Outstanding under Term Facility B and Term Facility C on a pro rata
basis, in accordance with Section 2.09 hereof. The percentage of Net Proceeds
payable pursuant to this Section 2.05(4) shall be reduced to 50% for any issuance of
securities if, as of the last day of the most recently completed Financial Quarter,
the Leverage Ratio is less than 2.5:1 (as evidenced by a Compliance Certificate
delivered to the Administrative Agent and the Lenders).
(5) The Borrower shall advise the Administrative Agent of its intention to make any
such Mandatory Prepayment by notice in writing substantially in the form of Schedule
2, at least 10 and not more than 20 Business Days before the Mandatory Prepayment is
due, and shall pay the amount of such Mandatory Prepayment to the Administrative
Agent when it is due. In addition, the Borrower shall, at the same time, make a
written offer (an “Offer”) to the Term Lenders, by sending such Offer, substantially
in the form of Schedule 3, to the Administrative Agent for distribution to the Term
Lenders, setting out the entitlement of each such Lender to such Mandatory
Prepayment (other than any Unacceptable Payment, as defined below). Each Term
Lender shall irrevocably respond to the Offer, with a copy to the Administrative
Agent, at least 3 Business Days’ before the Mandatory Prepayment is due. Failure on
the part of any Term Lender to so respond shall be deemed an
acceptance of the Offer by such Term Lender. All proceeds of each
- 12 -
Mandatory
Prepayment shall be applied rateably amongst the Term Lenders to repay and
permanently reduce Term Facility B and Term Facility C, on a pro rata basis, in
inverse order of maturity. However, the Borrower shall not be obliged to make an
Offer and the Term Facility B Lenders shall not accept any Mandatory Repayment if,
as a result thereof, the Term Facility B Lenders would receive, within 5 years and
10 days from the date of the first Advance under Term Facility B, an amount that,
when added to the scheduled repayments contemplated by Section 2.04 and to all other
Mandatory Prepayments made prior to that date, would be equal to or would exceed 25%
of the amount of the initial Advance under Term Facility B (an “Unacceptable
Payment”). If any Term Facility B Lender decides not to accept any such Mandatory
Repayment, the amount of such Mandatory Repayment that would have been paid to such
Term Facility B Lender shall be paid to the Term Facility C Lenders, unless they
refuse same, in which case it will be paid to the Facility A Lenders to reduce the
Accommodations Outstanding, but not the Commitments, under Facility A; provided that
if there are no Accommodations Outstanding under Facility A at such time, such
amount may be retained by the Borrower.
No such Mandatory Prepayment may be made on a date that would require a Libor
Advance to be prepaid, except in accordance with the provisions of Section 12.06(4),
and no Bankers’ Acceptance may be prepaid, provided that the Borrower may cash
collateralize such Libor Advances and Bankers’ Acceptances in accordance with the
provisions of Section 2.10.”
8. Section 2.06(1) of the Credit Agreement is hereby amended as follows to contemplate payments in
respect of Term Facility C:
“Section 2.06. Optional Prepayments and Reductions of Commitments. (1) The Borrower
may, subject to the provisions of this Agreement, (i) prepay without penalty or
bonus Accommodations Outstanding under any Credit Facility; or (ii) reduce the
Lenders’ Facility A Commitment, and, if required as a result of such reduction, the
Accommodations Outstanding under Facility A, in each case in whole or in part,
subject to providing seven (7) Business Days’ notice to the Administrative Agent
stating the proposed date and aggregate principal amount of the prepayment or
reduction. Each partial prepayment or reduction shall be in a minimum aggregate
principal amount of US$5,000,000 in respect of Term Facility B and $1,000,000 in
respect of Facility A or Term Facility C and in an integral multiple of $1,000,000
or US$1,000,000, as the case may be.”
9. Section 2.08(4) of the Credit Agreement is hereby amended as follows to contemplate payments in
respect of Term Facility C:
“(4) All payments by the Borrower under Facility A and Term Facility C shall be in
Canadian Dollars. All payments by the Borrower under Term Facility B shall be in US
Dollars.”
- 13 -
10. Section 2.09(1) of the Credit Agreement is hereby amended as follows to contemplate payments in
respect of Term Facility C:
“Section 2.09. Application of Payments and Prepayments. (1) Subject to paragraph
(2) hereof, each prepayment pursuant to Section 2.05 and Section 2.06 in respect of
Term Facility B or Term Facility C shall be applied to the instalments pursuant to
Section 2.04 in the inverse order of their maturity, subject to paying the
applicable breakage costs (as contemplated by Section 12.06) if any Libor Advance is
prepaid.”
11. Section 3.01(3) of the Credit Agreement is amended to refer specifically to Term Facility B and
a new section (4) is added as follows, to contemplate Accommodations under Term Facility C:
“(3) Each Term Facility B Lender individually, and not jointly and severally (or
solidarily) agrees, on the terms and conditions of this Agreement, to make Libor
Advances and US Prime Rate Advances to the Borrower on any Business Day. Each
Advance shall be made rateably by the applicable Lenders. All Advances under Term
Facility B shall be in US Dollars alone. The initial Advance under Term Facility B
shall be for the full amount available thereunder and shall be made on the Closing
Date. Any portion of the Advances available to the Borrower under Term Facility B
that is not borrowed as part of such initial Advance or that is repaid shall not
again be available for borrowing, although Libor Advances may be rolled over into
new Libor Advances or converted into US Prime Rate Advances, and US Prime Rate
Advances may be converted into Libor Advances.
“(4) Each Term Facility C Lender individually, and not jointly and severally (or
solidarily) agrees, on the terms and conditions of this Agreement, to make Prime
Rate Advances to the Borrower on any Business Day. Each Advance shall be made
rateably by the applicable Term Facility C Lenders. All Advances under Term
Facility C shall be in Canadian Dollars alone. The initial Advance under Term
Facility C shall be for the full amount available thereunder and shall be made on
the effective date of the Third Amending Agreement. Any portion of the Advances
available to the Borrower under Term Facility C that is not borrowed as part of such
initial Advance or that is repaid shall not again be available for borrowing,
although Bankers’ Acceptances may be rolled over into new Bankers’ Acceptances or
converted into Prime Rate Advances, and Prime Rate Advances may be converted into
Bankers’ Acceptances.”
12. Section 3.06 of the Credit Agreement is amended to apply to Bankers’ Acceptances issued under
Term Facility C:
“Section 3.06. Limits on Libor Advances and Bankers’ Acceptances. Nothing in this
Agreement shall be interpreted as authorizing the Borrower to borrow by way of Libor
Advances for a Designated Period or Bankers’ Acceptances having a contract maturity
expiring on a date which results in a situation where Term Facility B or Term
Facility C cannot be reduced as required by this Agreement, or on a date which is
after the expiry of the
- 14 -
relevant Term.”
13. Article 4 of the Credit Agreement is amended such that it will apply to Bankers’ Acceptances
issued under Term Facility C:
“ARTICLE 4
BANKERS’ ACCEPTANCES
Section 4.01 Acceptances and Drafts. (1) Each Facility A Lender and each Term
Facility C Lender individually, and not jointly and severally (or solidarily)
agrees, on the terms and conditions of this Agreement and from time to time on any
Business Day prior to the expiry of the Term of Facility A or Term Facility C,
respectively, (i) in the case of a Facility A Lender or Term Facility C Lender which
is willing and able to accept Drafts, to create acceptances (“Bankers’ Acceptances”)
by accepting Drafts and to purchase such Bankers’ Acceptances in accordance with
Section 4.03(2), (ii) in the case of a Facility A Lender or Term Facility C Lender
which is unable to accept Drafts, to purchase completed Drafts (which have not and
will not be accepted by such Facility A Lender or any other Facility A Lender or by
such Term Facility C Lender or any other Term Facility C Lender) in accordance with
Section 4.03(2), (iii) in the case of a Facility A Lender or Term Facility C Lender
which has participated or assigned all or any part of its interest in the Credit
Facilities to a Participant which is willing and able to accept
Drafts, to arrange for the creation of Bankers’ Acceptances by such Participant and
for their purchase by such Participant, to the extent of the participation or
assignment, in accordance with Section 4.03(2), and (iv) in the case of a Facility A
Lender or Term Facility C Lender which has participated or assigned all or any part
of its interest in the Credit Facilities to a Participant which is unwilling or
unable to accept Drafts, to arrange for the purchase by the Participant of completed
Drafts (which have not and will not be accepted by such Facility A Lender or any
other Facility A Lender or by such Term Facility C Lender or any other Term Facility
C Lender), to the extent of the participation or assignment, in accordance with
Section 4.03(2).
(2) Each Drawing shall be in a minimum amount of $3,000,000 and in an integral
multiple of $1,000,000 and shall consist of the creation and purchase of Bankers’
Acceptances or the purchase of Drafts on the same day, in each case for the Drawing
Price, effected or arranged by the Facility A Lenders or by the Term Facility C
Lenders in accordance with Section 4.03 and their respective Facility A Lender’s
Commitment or Term Facility C Lender’s Commitment.
- 15 -
(3) If the Administrative Agent determines that the Bankers’ Acceptances to be
created and purchased or Drafts to be purchased on any Drawing (upon a conversion or
otherwise) will not be created and purchased rateably by the Facility A Lenders or
the Term Facility C Lenders, as the case may be (or any of their respective
Participants) in accordance with Sections 4.01(2) and 4.03, then the requested Face
Amount of Bankers’ Acceptances and Drafts shall be reduced to such lesser amount as
the Administrative Agent determines will permit rateable sharing and the amount by
which the requested Face Amount shall have been so reduced shall be converted or
continued, as the case may be, as a Prime Rate Advance under Facility A or Term
Facility C, as the case may be, to be made contemporaneously with the Drawing.
(4) The Administrative Agent is authorized by the Borrower and each Lender to
allocate amongst the Facility A Lenders or the Term Facility C Lenders, as the case
may be, the Bankers’ Acceptances to be issued and purchased in such manner and
amounts as the Administrative Agent may, in its sole discretion, but acting
reasonably, consider necessary, so as to ensure that no Lender is required to accept
and purchase a Bankers’ Acceptance for a fraction of $100,000, and in such event,
the Lenders’ respective Facility A Commitments or Term Facility C Commitments, as
the case may be, in any such Bankers’ Acceptances and
repayments thereof shall be altered accordingly. Further, the Administrative Agent
is authorized by the Borrower, each Facility A Lender and each Term Facility C
Lender to cause the proportionate share of one or more Lender’s Accommodations
(calculated based on its Commitment) to be exceeded by no more than $100,000 each as
a result of such allocations provided that the principal amount of outstanding
Accommodations, including Bankers’ Acceptances, shall not thereby exceed the maximum
amount of the respective Commitment of each Facility A Lender or Term Facility C
Lender, as the case may be.
Section 4.02. Form of Drafts. Each Draft presented by the Borrower shall (i) be in
a minimum amount of $100,000 and in an integral multiple of $100,000; (ii) be dated
the date of the Drawing, and (iii) mature and be payable by the Borrower (in common
with all other Drafts presented in connection with such Drawing) on a Business Day
which occurs (subject to availability) approximately 1, 2, 3, or 6 months after the
Drawing Date (or such other period of 10 to 180 days as may be available and
acceptable to the Administrative Agent), at the election of the Borrower, and on or
prior to the last day of the Term of Facility A or of Term Facility C, as the case
may be.
Section 4.03. Procedure for Drawing. (1) Each Drawing shall be made on notice (a
“Drawing Notice”) given by the Borrower to the Administrative Agent not later than
10:00 a.m. (Toronto time) not less than two Business Days prior to the date on which
the Drawing is to occur. Each Drawing Notice shall be in substantially the form of
Schedule 1, shall be irrevocable and binding on the Borrower and shall specify (i)
the Drawing Date; (ii) the fact that the Drawing is to be made under Facility A or
Term Facility C; (iii) the aggregate Face Amount of Drafts to be accepted and
purchased (or purchased, as the case may be); and (iv) the contract maturity date
for the Drafts.
- 16 -
(2) Not later than 1:00 p.m. (Toronto time) on an applicable Drawing Date, each
Facility A Lender shall complete one or more Drafts in accordance with the Drawing
Notice and either (i) accept the Drafts and purchase the Bankers’ Acceptances
thereby created for the Drawing Price; or (ii) purchase such Drafts for the Drawing
Price, and, in each case, pay to the Administrative Agent the Drawing Proceeds in
respect of such Bankers’ Acceptance or Draft, as the case may be. Upon receipt of
the Drawing Proceeds and upon fulfilment of the applicable conditions set forth in
Article 6, the Administrative Agent shall make funds available to the Borrower in
accordance with Article 2.
(3) The Borrower shall, at the request of any Facility A Lender or Term Facility C
Lender, issue one or more non-interest bearing promissory notes (each
a “BA
Equivalent Note”) payable on the date of maturity of the unaccepted Draft referred
to below, in such form as the Facility A Lender or Term Facility C Lender may
specify and in a principal amount equal to the Face Amount of, and in exchange for,
any unaccepted Drafts which the Facility A Lender or Term Facility C Lender has
purchased or has arranged to have purchased in accordance with Section 4.03(2).
(4) Bankers’ Acceptances purchased by a Facility A Lender, a Term Facility C Lender
or a Participant may be held by it for its own account until the contract maturity
date or sold by it at any time prior to that date in any relevant Canadian market in
such Person’s sole discretion.
Section 4.04. Signatures of Draft Forms. The Borrower hereby irrevocably appoints
each Facility A Lender and each Term Facility C Lender as its lawful attorney to
sign and endorse on its behalf, manually or by facsimile or mechanical signature,
any BA Instrument necessary to enable each Facility A Lender and each Term Facility
C Lender to make Drawings in the manner specified in this Article 4. All Bankers’
Acceptances signed or endorsed on the Borrower’s behalf and in accordance with its
instructions by a Facility A Lender or a Term Facility
C Lender shall be binding on the Borrower, all as if duly executed and issued by the
Borrower. No Facility A Lender or Term Facility C Lender shall be liable for any
Claim or Loss arising by reason of any loss or improper use of any such BA
Instruments, except arising out of the gross negligence or willful misconduct of
such Lender. Each Facility A Lender and each Term Facility C Lender shall (i)
maintain a record with respect to any BA Instrument completed in accordance
herewith, voided by it for any reason, accepted and purchased by it hereunder, and
canceled at their respective maturities; and (ii) retain such records in the manner
and for the statutory periods provided in the various provincial or federal statutes
and regulations which apply to such Facility A Lender or Term Facility C Lender. On
request by the Borrower, a Facility A Lender or a Term Facility C Lender shall
cancel all BA Instruments which have been pre-signed or pre-endorsed on behalf of
such Borrower and which are held by such Lender and are not required to make
Drawings in accordance with this Article 4.
- 17 -
Section 4.05. Payment, Conversion or Renewal of BA Instruments. (1) Upon the
maturity of a BA Instrument, the Borrower may (i) elect to issue a replacement BA
Instrument by giving a Drawing Notice in accordance with Section 4.03(1); (ii) elect
to have all or a portion of the Face Amount of the BA Instrument converted to an
Advance by giving a Accommodation Notice in accordance with Section 3.02; or (iii)
pay, on or before 10:00 a.m. (Toronto time) on the maturity date for the BA
Instrument, an amount in Canadian Dollars equal to the Face Amount of the BA
Instrument (notwithstanding that a Facility A Lender or a Term Facility C Lender may
be the holder of it at maturity). Any such payment shall satisfy the Borrower’s
obligations under the BA Instrument to which it relates and the relevant Facility A
Lender, Term Facility C Lender or Participant shall then be solely responsible for
the payment of the BA Instrument.
(2) If the Borrower fails to pay any BA Instrument when due or issue a replacement
in the Face Amount of such BA Instrument pursuant to Section 4.05(1), the unpaid
amount due and payable shall be converted to a Prime Rate Advance made by the
Facility A Lenders or the Term Facility C Lenders rateably under the applicable
Credit Facility and shall bear interest calculated and payable as provided in
Article 3. This conversion shall occur as of the due date and without any necessity
for the Borrower to give a Borrowing Notice.
Section 4.06. Circumstances Making Bankers’ Acceptances Unavailable. (1) If, by
reason of circumstances affecting the money market generally, there is no market for
Bankers’ Acceptances, (i) the right of the Borrower to request a Drawing shall be
suspended until the circumstances causing a suspension no longer exist; and (ii) any
Drawing Notice which is outstanding shall be deemed to be an Accommodation Notice
requesting an Advance comprised of Prime Rate Advances.
(2) The Administrative Agent shall promptly notify the Borrower of the suspension of
the Borrower’s right to request a Drawing and of the termination of any suspension.
Section 4.07. Depository Bills and Notes Act. Bankers’ Acceptances may be issued in
the form of a depository xxxx and deposited with a clearing house, both terms as
defined in the Depository Bills and Notes Act. The Administrative Agent and the
Borrower shall agree on the procedures to be followed, acting reasonably. The
Facility A Lenders and Term Facility C Lenders are also authorized to issue
depository bills as replacements for previously issued Bankers’ Acceptances, on the
same terms as those replaced, and deposit them with a clearing house against
cancellation of the previously issued Bankers’ Acceptances.”
14. Section 6.02(1) of the Credit Agreement is amended as follows to include Term Facility C:
“Section 6.02. Conditions Precedent to All Accommodations and Conversions. (1) The
obligation of each Lender to make Accommodations or otherwise give effect to any
Accommodation Notice hereunder in respect of Facility A, Term Facility B or Term
Facility C shall be subject to the conditions precedent that on the date of such
- 18 -
Accommodation Notice and Accommodation, and after giving effect thereto and to the
application of any proceeds therefrom, (a) the representations and warranties
contained in Article 7 are true and correct in all material respects on and as of
such date (except where expressly stated to be made at a particular date), all as
though made on and as of such date; (b) no event or condition has occurred and is
continuing, or would result from such Accommodation or giving effect to such
Accommodation Notice, which constitutes a Default or an Event of Default; and (c)
nothing has occurred which would reasonably be expected to have a Material Adverse
Effect.”
15. Section 8.01(a) of the Credit Agreement is amended as follows to amend the reporting
requirements with respect to Excess Cash Flow:
“(a) Financial Reporting Requirements. Furnish to the Administrative Agent (in
electronic and paper forms) (i) as soon as practicable, and in any event within 60
days after the end of each of the first three Financial Quarters in each Financial
Year, unaudited consolidated financial statements of the Borrower, consisting of (A)
a consolidated balance sheet as at the end of the Financial Quarter with comparative
amounts at the end of the corresponding Financial Quarter in the previous Financial
Year, (B) consolidated statements of earnings, retained earnings and cash flow for
the Financial Quarter and for the period from the end of the previous Financial Year
to the end of the Financial Quarter with comparative amounts for the corresponding
periods in the previous Financial Year; (ii) as soon as practicable, and in any
event within 90 days after the end of each Financial Year, audited consolidated
financial statements of the Borrower, consisting of (A) a consolidated balance sheet
as at the end of the Financial Year with comparative amounts at the end of the
previous Financial Year, (B) consolidated statements of earnings, retained earnings
and cash flow for the Financial Year with comparative amounts for the previous
Financial Year, (C) the audit report of the Borrower’s independent auditors on the
financial statements specified in (ii)(A) and (B); (iii) as soon as practicable, and
in any event
within 60 days after the end of each of the first three Financial Quarters in each
Financial Year, a Compliance Certificate; and (iv) as soon as practicable, and in
any event within 90 days after the end of each Financial Year, a Compliance
Certificate.”
16. Section 8.02(d) of the Credit Agreement is amended as follows to refer to the Term of Term
Facility C:
“(d) Disposal of Assets Generally. Dispose of, or permit any of the Guarantors to
Dispose of, any Assets to any Person, other than, (i) any disposition of Assets
between the Loan Parties; (ii) pursuant to a transaction consummated in accordance
with Section 8.02(c); (iii) Dispositions of inventory and other Assets in the
ordinary course of business; (iv) so long as no Default has occurred and is
continuing or would arise therefrom and no Event of Default has occurred, the
Disposition of the Florida Sun at fair market value; (v) so long as no Default has
occurred and is continuing or would arise therefrom and no Event of Default has
occurred, any other bona fide Dispositions at fair market value,
- 19 -
provided the
proceeds thereof are dealt with in accordance with Section 2.05(2) hereof to the
extent applicable, and in any event limited to an aggregate maximum amount during
the Term of Facility A, Term Facility B or Term Facility C, whichever expires last,
together with all sale and leaseback transactions referred to in clause (vii) below,
of $50,000,000;
(vi) Dispositions of Assets which are obsolete, worn out, surplus, damaged or of no
material economic value in the Business; (vii) sale and leaseback transactions,
subject to the limitations in clause (v) above, and (viii) so long as no Default has
occurred and is continuing or would arise therefrom and no Event of Default has
occurred, bona fide exchanges of similar Assets at fair market value, subject to an
aggregate amount of $50,000,000 during the last to expire of the Term of Facility A,
Term Facility B or Term Facility C.”
17. Section 8.02(h) of the Credit Agreement is amended by deleting the “(1)” before the first
paragraph, by replacing the semi-colon at the end of the first paragraph with a period, and by
deleting paragraph (2) entirely.
18. Section 8.02(i) of the Credit Agreement is amended as follows to remove certain limitations
relating to Excess Cash Flow baskets:
“(i) Loans, Investments and Acquisitions. Make any loans, Investments or
Acquisitions, (other than in connection with Capital Expenditures permitted
pursuant to Section 8.02(m)), or permit any of the Guarantors to make any such
loans, Investments or Acquisitions, except, in each case, for (i) the Hedging
Agreements in connection with the Hedging Requirements, other Hedging
Agreements, Commodity Hedging Agreements and other foreign currency
xxxxxx, interest rate swaps or similar interest rate and currency hedging
obligations or agreements, in each case incurred in the ordinary course of the
Business and not for speculative purposes; (ii) loans, Acquisitions and
Investments among the Loan Parties; and (iii) Permitted Investments.”
19. The table contained in Section 8.03(a) of the Credit Agreement setting out the applicable
Leverage Ratio is deleted and replaced by the following:
| Period | Ratio | |||
Closing Date to December 31, 2003 |
3.75:1 | |||
January 1, 2004 to December 31, 2004 |
3.50:1 | |||
January 1, 2005 to September 30, 2005 |
3.25:1 | |||
October 1, 2005 to December 31, 2007 |
3.75:1 | |||
January 1, 2008 and thereafter |
3.25:1 | |||
20. The first line of the second to last paragraph of Section 9.01, beginning with the words
“then, (A) if the Event of Default...”, is amended to replace the reference to paragraph “(k)” with a
reference to paragraph “(l)”.
21. Section 12.04 is amended as follows to add a reference to notices under Term Facility C:
- 20 -
“ Section 12.04. Notices, etc. Any notice, direction or other communication
required or permitted to be given under this Agreement shall, except as
otherwise permitted, be in writing and given by delivering it or sending it by
telecopy or other similar form of recorded communication addressed, if to the
Borrower, to it at: Sun Media Corporation, 000 Xxxx Xxxxxx Xxxx, Xxxxxxx
(Xxxxxxx), X0X 0X0, Xxxxxx, Attention: Controller, Telephone: (000) 000-0000,
Fax: (000) 000-0000, with a copy to: Treasurer, Quebecor Media Inc., Telephone:
(000) 000-0000, Fax: (000) 000-0000; if to the Administrative Agent, (I) for the
purposes of Accommodations and Repayments under (A) Facility A and Term Facility
C, to it at: 000 Xxxxx Xxxxxx Xxxx, Xxxxx 0000, Xxxxxxx, Xxxxxxx, X0X 0X0,
Attention: Xxxxxxx.Xxxxxxxx, Credit Services, Telephone: (000) 000-0000, Fax:
(000) 000-0000/4283, E-mail: Xxxxxxx.Xxxxxxxx@xxxxxxxxxxxxx.xxx; Alternate -
Xxxxx XxXxxxxx, 000-000-0000, E-mail: Xxxxx.XxXxxxxx@xxxxxxxxxxxxx.xxx; and (B)
Term Facility B, to it at: Bank of America, N. A., Agency Services, 0000 Xxxxxxx
Xxxx., 0xx Xxxxx, XX: CA4-706-05-09, Xxxxxxx, XX 00000, Phone: (000) 000-0000,
Fax:
(000) 000-0000, E-mail: xxxxxxxx.x.xxxxxxxx@xxxxxxxxxxxxx.xxx; and (II), for all
other purposes, to it at: 0000 Xxxxxx Xxxxxx, 0xx xxxxx, Xxx
Xxxxxxxxx, Xxxxxxxxxx, 00000, Attention: Xxxxxx Xxxxxxxxxxx, Vice-President,
Telephone: (000) 000-0000, Fax: (000) 000-0000, Email:
xxxxxx.x.xxxxxxxxxxx@xxxxxxxxxxxxx.xxx; and, if to the Lenders, at the addresses
shown on the signature pages. Any communication shall be deemed to have been
validly and effectively given (i) if personally delivered, on the date of such
delivery if such date is a Business Day and such delivery was made prior to 4:00
p.m. (Toronto time); (ii) if transmitted by facsimile or similar means of
recorded communication on the Business Day following the date of transmission.
Any party may change its address for service from time to time by notice given
in accordance with the foregoing and any subsequent notice shall be sent to the
party at its changed address.”
22. Sections 12.08(3) and (7) are amended as follows to add a reference to assignments under Term
Facility C:
“(3) A Lender may (i) grant participations, without notice to or consent of the
Borrower or the Administrative Agent, in all or any part of its interest in the
Credit Facilities to one or more Persons (each a “Participant”), or (ii) upon
prior written notice to the Administrative Agent and the Borrower, assign all or
any part of its interest in the Credit Facilities to one or more Persons (each
an
“Assignee”), provided that in the case of any interest which is a partial
interest (other than after the occurrence of a Default which is continuing or an
Event of Default which has not been waived, in which case no minimums will
apply), such partial interest is not less than $5,000,000 under Facility A,
US$1,000,000 under Term Facility B or $1,000,000 under Term Facility C (or such
lesser amount as agreed to by the Borrower and the Administrative Agent). An
assignment shall require (A) the consent of the Borrower, which shall not be
unreasonably withheld or delayed, prior to the occurrence of a Default which is
continuing or an Event of Default which has not been waived, and thereafter
shall not require any such consent,
- 21 -
and (B) the consent of the Administrative
Agent (and, in the case of assignments under Facility A, the Issuing Lender and
the Swingline Lender), which shall not be unreasonably withheld or delayed;
provided that the Borrower’s consent shall not be required for an assignment to
any of the following Persons: (A) a Lender; (b) an Affiliate of a Lender; or
(c) an Approved Fund, which shall not be the Borrower or any of the Borrower’s
Affiliates or subsidiaries. A Lender granting a participation shall, unless
otherwise expressly provided in this Agreement, act on behalf of all of its
Participants in all dealings with the Borrower in respect of the Credit
Facilities and no Participant shall have any voting or consent rights with
respect to any matter requiring the Lenders’ consent. In the case of an
assignment, the
Assignee shall have the same rights and benefits and be subject to the same
limitations under the Credit Documents as it would have if it was a Lender,
provided that no Assignee or Participant shall be entitled to receive any
greater payment, on a cumulative basis, pursuant to Section 12.06 or Section
12.07 than the Lender which granted the assignment or participation would have
been entitled to receive.
(7) The amounts payable by the Borrower under this Agreement shall not increase
on account of withholding taxes as a result of any such assignment or transfer
to an Assignee of a Facility A Lender or a Term Facility C Lender which is a
non-resident of Canada as defined in the Income Tax Act (Canada); provided that
an assignment which occurs after the occurrence of an Event of Default which has
not been waived shall not be subject to this provision.”
23. Section 12.09 is amended as follows to include Term Facility C Lenders:
“Section 12.09. Facility A Lender or Term Facility C Lender Becoming
Non-Resident. If a Facility A Lender or a Term Facility C Lender becomes a
non-resident of Canada as defined in the Income Tax Act (Canada), it shall
promptly notify the Administrative Agent and the Borrower, and if the Borrower
unknowingly made payments to such Facility A Lender or Term Facility C
Lender that should have been subject to withholding taxes prior to such notice,
such Facility A Lender or Term Facility C Lender shall repay the amount that
should have been so withheld to the Borrower to be paid to the appropriate
taxation authority. Following such notice, the Facility A Lender or Term
Facility C Lender in question shall have one of the following options in
connection with its Facility A Commitment and Term Facility C Commitment, as the
case may be: (a) to permit the Borrower to deduct and pay the applicable
withholding tax to the appropriate taxation authority for so long as it is such
a non-resident; or (b) to require that the Borrower replace it as a Facility A
Lender or Term Facility C Lender within 15 Business Days from such notice,
failing which its Facility A Commitment or Term Facility C Commitment, as the
case may be, will be cancelled, and the Facility A Commitment or Term Facility C
Commitment, as the case may be, hereunder will be permanently reduced by an
equal amount.”
24. Schedule 2-Notice of Repayment is amended to include repayments under Term Facility C. The
- 22 -
amended and marked Schedule 2 is annexed.
25. Schedule 3-Offer to Term Lenders is amended to include Term Facility C Lenders. The amended
and marked Schedule 3 is annexed.
26. Schedule 4 of the Credit Agreement is hereby amended as follows, by adding Applicable Margins
for the BA Drawing Fee and Prime Rate Advances under Term Facility C:
“ACCOMMODATIONS UNDER TERM FACILITY C
| BA Drawing Fee | Cdn.$ Prime Rate Advances | |
1.50%
|
0.50%” |
27. Schedule 6-Assignment and Assumption Agreement is amended to include Term Facility C Lenders.
The amended and marked Schedule 6 is annexed.
III. MISCELLANEOUS
1. The Borrower hereby represents and warrants to each Lender that no Default has occurred which is
continuing, no Event of Default has occurred which has not been waived and that it is in compliance
with the financial covenants set forth in section 8.03 of the Credit Agreement.
2. The Borrower shall pay upon demand all reasonable professional fees and disbursements incurred
from time to time by the Administrative Agent in connection with the negotiation, preparation and
delivery of this Third Amending Agreement and all other documents accessory hereto as well as any
amendments to be made to any of the foregoing at any time and from time to time.
3. This Third Amending Agreement replaces and supersedes all other verbal or written agreements
among the Administrative Agent, the Lenders or anyone thereof and the Borrower relating to the
amendments to the Credit Agreement contemplated herein or any other issues accessory to the
transactions contemplated by this Third Amending Agreement.
4. The parties acknowledge that they have required that the present agreement, as well as all
documents, notices and legal proceedings entered into, given or instituted pursuant hereto or
relating directly or indirectly hereto be drawn up in English. Les parties reconnaissent avoir
exigé la rédaction en anglais de la présente convention ainsi que de tous documents exécutés, xxxx
xxxxxx et procédures judiciaires intentées, directement ou indirectement, relativement ou à la
suite de la présente convention.
IN WITNESS WHEREOF THE PARTIES HERETO HAVE SIGNED THIS AGREEMENT ON THE DATE AND AT THE PLACE FIRST
HEREINABOVE MENTIONED.
| SUN MEDIA CORPORATION | BANK OF AMERICA, N.A., as | |||||||
| Administrative Agent | ||||||||
Per:
|
Louis St-Arnaud | Per: | Xxxxxx Xxxxxxxxxxx | |||||
| Authorized Signing Officer | Authorized Signing Officer | |||||||
| Louis St-Arnaud, Vice-President, Legal Affairs Xxxxxx Xxxxxxxxxxx, Vice President | ||||||||
Per:
|
Xxxxxxxxx Xxxxxxxx | |||||||
| Authorized Signing Officer | ||||||||
| Xxxxxxxxx Xxxxxxxx, Assistant Secretary | ||||||||
SUN MEDIA CORPORATION THIRD AMENDING AGREEMENT
SIGNATURE PAGE
[Lender] Bank of America, N.A., Canada Branch
| Per: | Xxxxxx Xxx | |||||
| Xxxxxx Xxx, Vice President | ||||||
| Per: | ||||||
[Certain Lender Signature Pages Omitted]
The undersigned acknowledge having taken cognizance of the provisions of the foregoing Third
Amending Agreement and agree that the Credit Documents executed by them (A) remain enforceable
against them in accordance with their terms, and (B) continue to guarantee or secure, as
applicable, all of the obligations of the Persons specified in such Credit Documents in connection
with the Credit Agreement, as amended by this Third Amending Agreement:
| XXXXX PUBLISHERS LIMITED | SUN MEDIA (TORONTO) CORPORATION | |||||||||
Per:
|
Louis St-Xxxxxx
|
Per: | Louis St-Xxxxxx
|
|||||||
| SMC NOMINEECO INC. | ||||||||||
Per:
|
Louis St-Xxxxxx | |||||||||
SCHEDULE
2 — NOTICE OF REPAYMENT
TO:
|
BANK OF AMERICA, N.A., as Administrative Agent | |
FROM:
|
SUN MEDIA CORPORATION | |
DATE: |
1) This notice of repayment is delivered to you pursuant to the Credit Agreement dated as of
February 7, 2003 entered into among SUN MEDIA CORPORATION and, inter alia, Bank of America, N. A.
as Administrative Agent (as in effect on the date hereof, the “Credit Agreement”). All defined
terms set forth in this notice shall have the respective meanings set forth in the Credit
Agreement.
2) We hereby advise you that we will be repaying the sum of [Cdn. / US$ on
as follows [indicate amount payable in respect of each Facility as well as the type of Advance
to be repaid].
3) As to an amount of [Cdn. / US$
,
the above-mentioned payment
should be treated as a [mandatory prepayment / voluntary prepayment] under Section [2.05 / 2.06],
which we understand will have the effect of reducing the amount of
Term Facility B by
US$ and Term
Facility C by Cdn.$ . [If the payment is a mandatory prepayment resulting from an asset sale, it
will be applied pro rata to permanently reduce Term Facility B (unless it is an Unacceptable
Payment) and Term Facility C, and in case of any excess to temporarily reduce Facility A, if there
are any Accommodations Outstanding under Facility A; any other mandatory prepayment, unless it is
an Unacceptable Payment, will permanently reduce Term Facility B and Term Facility C on a pro rata
basis; in all cases, provide details of the calculations used to determine the amounts.]
| Yours truly, | ||||||
| SUN MEDIA CORPORATION | ||||||
| Per: | ||||||
| Title: | ||||||
SCHEDULE
3 — OFFER TO TERM LENDERS
TO:
|
[Name of Term Lender] | |
FROM:
|
SUN MEDIA CORPORATION | |
DATE: |
1) This offer of repayment is delivered to you pursuant to the Credit Agreement dated as of
February 7, 2003 entered into among SUN MEDIA CORPORATION and, inter alia, Bank of America, N.A. as
Administrative Agent (as in effect on the date hereof, the “Credit Agreement”). All defined terms
set forth in this notice shall have the respective meanings set forth in the Credit Agreement.
2) We hereby advise you that on [insert date, at least 10 and not more than 20 Business Days from
the date of this offer] (the “Payment Date”), we will be making a Mandatory Repayment of Term
Facility B and Term Facility C in an amount of
US$ and
Cdn.$ , respectively, of which your
proportionate share, based on your Commitment under Term Facility B or Term Facility C, as the case
may be, is US/Cdn.$ [indicate amount payable].
3) In accordance with the provisions of the Credit Agreement, you are required to advise us in
writing, with a copy to the Administrative Agent, not less than 3 Business Days before the Payment
Date if you wish to accept the Mandatory Repayment in question, failing which you shall be deemed
to have accepted same.
| Yours truly, | ||||||
| SUN MEDIA CORPORATION | ||||||
| Per: | ||||||
| Title: | ||||||
SCHEDULE 6
MASTER
ASSIGNMENT AND ASSUMPTION AGREEMENT — TERM FACILITY B
This Master Assignment and Assumption Agreement (this “Assignment and Assumption”) dated as
of the Trade Date referred to below is entered into by and between the party identified below as
“Assignor” and each party identified on each signature page hereto as an
“Assignee”. Capitalized terms used but not defined herein shall have the meanings given to
them in the Credit Agreement identified below (as amended or modified from time to time, the
“Credit Agreement”), receipt of a copy of which is hereby acknowledged by each Assignee.
The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and
incorporated herein by reference and made a part of this Assignment and Assumption as if set forth
herein in full.
For an agreed consideration, the Assignor hereby irrevocably and ratably sells and assigns to each
Assignee, and each Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date referred to below (i) all of the Assignor’s respective rights and obligations under
the Credit Agreement and any other documents or instruments delivered pursuant thereto to the
extent related to the amount and percentage interest identified below the signature of that
Assignee of all the Assignor’s respective outstanding rights and obligations under Term Facility B
(including without limitation any guarantees and Security included in such facilities) and (ii) to
the extent permitted to be assigned under applicable law, all claims, suits, causes of action and
any other rights of the Assignor (in its capacity as a Lender) against any Person, whether known or
unknown, arising under or in connection with the Credit Agreement, any other documents or
instruments delivered pursuant thereto or the loan transactions governed thereby or in any way
based on or related to any of the foregoing, including, but not limited to, contract claims, tort
claims, malpractice claims, statutory claims and all other claims at law or in equity related to
the rights and obligations sold and assigned pursuant to clause (i) above (the rights and
obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein
collectively as to each Assignee, the “Assigned Interest”). Such sale and assignment is
without recourse to the Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by the Assignor.
1.
|
Assignor: | Bank of America, N. A. | ||
2.
|
Assignees and their Assigned Interests: | Listed on the signature pages attached hereto | ||
3.
|
Borrower: | Sun Media Corporation | ||
4.
|
Administrative Agent: | Bank of America, N. A., as the administrative agent under the Credit Agreement referred to below | ||
5.
|
Credit Agreement: | The Credit Agreement, dated as of February 7, 2003, as amended, among the Borrower named above, the Lenders parties thereto, and the Administrative Agent named above |
| 6. | Aggregate Amount of Assigned Interests in Term Facility B: | |||
| Principal Amount of Term Facility B, subject of this Assignment 1 |
||||||
| US$ | ||||||
| US$ | ||||||
7.
|
Effective Date: | As to each Assignee, as indicated on attached signature page thereof | ||
8.
|
Trade Date: | As to each Assignee, as indicated on attached signature page thereof |
The terms set forth in this Assignment are hereby agreed to:
| ASSIGNOR: | BANK OF AMERICA, N. A. | |||||
| By: | ||||||
| Title: | ||||||
| Consent and Acceptance: | BANK OF AMERICA, N. A., | |||||
| as Administrative Agent | ||||||
| By: | ||||||
| Title: | ||||||
| Consent and Acceptance:2 | SUN MEDIA CORPORATION, as Borrower | |||||
| By: | ||||||
| Title: | ||||||
| 1 | Adjust to take into account any payments or prepayments made between Trade Date and Effective Date. | |
| 2 | Obtain indicated consent(s) only if required by Credit Agreement. |
Master Assignment and Assumption Agreement for _________________
ASSIGNEE: |
||||||
| [Name of Assignee] | ||||||
| By: | ||||||
| [Entity signing on behalf of Assignee]3 | ||||||
| By: | ||||||
| Title: | ||||||
| 4Assignee is an Affiliate/Approved Fund of: | ||||||
| [Identify Lender] | ||||||
Assigned Interest to this Assignee:
| Principal Amount of Term Facility B, subject of this Assignment 5 |
||||||
| US$ | ||||||
| US$ | ||||||
Trade Date: |
||||
Effective Date:
|
6
|
| 3 | Include if a general partner or manager of the Assignee is signing on behalf of the Assignee. | |
| 4 | Include as applicable. | |
| 5 | Adjust to take into account any payments or prepayments made between Trade Date and Effective Date. | |
| 6 | Effective date to be inserted by Administrative Agent. |
Signature Page for Master Assignment and Assumption Agreement for _________________
ANNEX 1 TO ASSIGNMENT AND ASSUMPTION
STANDARD
TERMS AND CONDITIONS FOR ASSIGNMENT
AND
ASSUMPTION agreement
1. Representations and Warranties.
1.1. Assignor. The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of each Assigned Interest, (ii) each Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the Credit Agreement or any
other Credit Document, (ii) the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Credit Documents or any other instrument or document delivered pursuant
thereto, other than this Agreement, or any Collateral thereunder, (iii) the financial condition of
any Loan Party, any of its subsidiaries or Affiliates or any other Person obligated in respect of
any Loan Document or (iv) the performance or observance by any Loan Party, any of its subsidiaries
or Affiliates or any other Person of any of their respective obligations under any Loan Document.
1.2. Assignee. Each Assignee (a) represents and warrants that (i) it has full power
and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) it meets all requirements of an Eligible Assignee under the Credit
Agreement, (iii) from and after the Effective Date, it shall be bound by the provisions of the
Credit Agreement and, to the extent of the Assigned Interest, shall have the obligations of a
Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the
most recent financial statements delivered pursuant to Section 8.01 thereof, as applicable, and
such other documents and information as it has deemed appropriate to make its own credit analysis
and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on
the basis of which it has made such analysis and decision; (v) if the contemplated Assignment and
Assumption is under Facility A or Term Facility C and occurs prior to a Default which is continuing
or an Event of Default which has not been waived, it is not a non-resident of Canada within the
meaning of the Income Tax Act (Canada); and (b) agrees that (i) it will, independently and without
reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents
and information as it shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under the Credit Documents, and (ii) it will perform in accordance
with their terms all of the obligations which by the terms of the Credit Documents are required to
be performed by it as a Lender.
1.3 Assignee’s Address for Notices, Etc. Administrative Details (including credit
contact information, addresses, phone and facsimile information and account and payment
instructions) have been provided in the Administrative Questionnaire previously delivered to the
Administrative Agent.
2. Payments. From and after the Effective Date, the Administrative Agent shall make
all payments in respect of the Assigned Interest (including payments of principal, interest, fees
and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective
Date and to the Assignee for amounts which have accrued from and after the Effective Date.
3. General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This
Assignment and Assumption may be executed in any number of counterparts, which together shall
constitute one instrument. Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a manually executed
counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the law of the Province of Ontario.
Annex 1 — Page 1
Master Assignment and Assumption Agreement for _________________
Master Assignment and Assumption Agreement for _________________
SCHEDULE 6 (continued)
ASSIGNMENT AND ASSUMPTION
This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the
“Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used
but not defined herein shall have the meanings given to them in the Credit Agreement identified
below (as amended, the “Credit Agreement”), receipt of a copy of which is hereby
acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached
hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment
and Assumption as if set forth herein in full.
For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s
rights and obligations in its capacity as a Lender under the Credit Agreement, the other Credit
Documents and any other documents or instruments delivered pursuant thereto to the extent related
to the amount and percentage interest identified below of all of such outstanding rights and
obligations of the Assignor under the respective facilities identified below (including without
limitation any letters of credit, guarantees, Security and Swingline Advances included in such
facilities) and (ii) to the extent permitted to be assigned under applicable law, all claims,
suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against
any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any
other documents or instruments delivered pursuant thereto or the loan transactions governed thereby
or in any way based on or related to any of the foregoing, including, but not limited to, contract
claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity
related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights
and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein
collectively as, the “Assigned Interest”). Such sale and assignment is without recourse to
the Assignor and, except as expressly provided in this Assignment and Assumption, without
representation or warranty by the Assignor.
1.
|
Assignor: | |||||
2.
|
Assignee: | |||||
| [and is an Affiliate/Approved Fund of [identify Lender]7] | ||||||
3.
|
Borrower(s): | Sun Media Corporation | ||||
4.
|
Administrative Agent: | Bank of America, N. A., as the administrative agent under the Credit Agreement | ||||
5.
|
Credit Agreement: | The Credit Agreement dated as of February 7, 2003, as amended, among Sun Media Corporation, the Lenders parties thereto, Bank of America N.A., as Administrative Agent, and the other agents parties thereto, for an amount of US $230,000,000 and Cdn.$75,000,000. | ||||
6.
|
Assigned Interest: | |||||
| Aggregate Amount of | ||||||||||||
| Commitment/Loans | Amount of | |||||||||||
| for all | Commitment/Loans | Percentage Assigned of | ||||||||||
| Facility Assigned8 | Lenders* | Assigned* | Commitment/Loans9 | |||||||||
| $ | $ | % | ||||||||||
| $ | $ | % | ||||||||||
| 7 | Select as applicable. |
| 8 | Fill in the appropriate terminology for the types of facilities under the Credit Agreement that are being assigned under this Assignment (i.e. “Facility A Commitment”, “Term Facility B Commitment” or “Term Facility C Commitment”). |
| * | Amount to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date. |
| 9 | Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder. |
| Aggregate Amount of | ||||||||||||
| Commitment/Loans | Amount of | |||||||||||
| for all | Commitment/Loans | Percentage Assigned of | ||||||||||
| Facility Assigned8 | Lenders* | Assigned* | Commitment/Loans9 | |||||||||
| $ | $ | % | ||||||||||
[7.
|
Trade Date: | ]
|
10 |
Effective
Date: ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL
BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]
The terms set forth in this Assignment and Assumption are hereby agreed to:
| ASSIGNOR | ||||||
| [NAME OF ASSIGNOR] | ||||||
| By: | ||||||
| ASSIGNEE | ||||||
| [NAME OF ASSIGNEE] | ||||||
| By: | ||||||
| 10 | To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date. |
| Consented to and Accepted: | ||||
| BANK OF AMERICA N. A., as | ||||
| Administrative Agent | ||||
By
|
||||
| Consented to and Accepted in respect of Facility A, where applicable: | ||||
| BANK OF AMERICA, N. A., Canada Branch | ||||
| as Issuing Lender and Swingline Lender | ||||
By
|
||||
| Consented to and Accepted: | ||||
| SUN MEDIA CORPORATION, as Borrower | ||||
By
|
||||
ANNEX 1
Credit Agreement entered into among Sun Media Corporation, as Borrower,
Bank of America, N. A., as Administrative Agent,
and the Lenders party thereto dated as of February 7, 2003, as amended
Bank of America, N. A., as Administrative Agent,
and the Lenders party thereto dated as of February 7, 2003, as amended
STANDARD TERMS AND CONDITIONS FOR ASSIGNMENT AND ASSUMPTION
1. Representations and Warranties.
1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the Credit Agreement or any
other Credit Document, (ii) the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Credit Documents or any collateral thereunder, (iii) the financial
condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in
respect of any Credit Document or (iv) the performance or observance by the Borrower, any of its
Subsidiaries or Affiliates or any other Person of any of their respective obligations under any
Credit Document.
1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power
and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) it meets all requirements of an Eligible Assignee under the Credit Agreement
(subject to receipt of such consents as may be required under the Credit Agreement), (iii) from and
after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender
thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender
thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most
recent financial statements delivered pursuant to Section 8.01 thereof, as applicable, and such
other documents and information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the
basis of which it has made such analysis and decision independently and without reliance on the
Administrative Agent or any other Lender; (v) if the contemplated Assignment and Assumption is
under Facility A or Term Facility C and occurs prior to a Default which is continuing or an Event
of Default which has not been waived, it is not a non-resident of Canada within the meaning of the
Income Tax Act (Canada); and (b) agrees that (i) it will, independently and without reliance on the
Administrative Agent, the Assignor or any other Lender, and based on such documents and information
as it shall deem appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Credit Documents, and (ii) it will perform in accordance with their
terms all of the obligations which by the terms of the Credit Documents are required to be
performed by it as a Lender.
1.3 Assignee’s Address for Notices, etc. Attached hereto as Schedule 1 is all contact
information, address, account and other administrative information relating to the Assignee.
2. Payments. From and after the Effective Date, the Administrative Agent shall make
all payments in respect of the Assigned Interest (including payments of principal, interest, fees
and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective
Date and to the Assignee for amounts which have accrued from and after the Effective Date.
3. General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This
Assignment and Assumption may be executed in any number of counterparts, which together shall
constitute one instrument.
Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a manually executed
counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the law of the Province of Ontario.
