EXHIBIT 10(I)A(I)
EXECUTION COPY
364-DAY REVOLVING CREDIT AGREEMENT
DATED AS OF APRIL 8, 2002
AMONG
ACUITY BRANDS, INC.,
THE SUBSIDIARY BORROWERS
FROM TIME TO TIME PARTIES HERETO,
THE LENDERS FROM TIME TO TIME PARTIES HERETO,
BANK ONE, NA (MAIN OFFICE CHICAGO),
AS ADMINISTRATIVE AGENT
and
WACHOVIA BANK, N.A.
AS SYNDICATION AGENT
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BANC ONE CAPITAL MARKETS, INC.,
AS LEAD ARRANGER AND SOLE BOOK RUNNER
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SIDLEY XXXXXX XXXXX & XXXX
Bank One Plaza
00 Xxxxx Xxxxxxxx Xxxxxx
Xxxxxxx, Xxxxxxxx 00000
TABLE OF CONTENTS
PAGE
ARTICLE I DEFINITIONS............................................................................................1
1.1. Certain Defined Terms.......................................................................1
1.2. References.................................................................................19
1.3. Supplemental Disclosure....................................................................19
ARTICLE II THE CREDITS..........................................................................................19
2.1. Commitment.................................................................................19
2.2. [Reserved].................................................................................20
2.3. Required Payments; Termination.............................................................20
2.3.1. Required Payments.................................................................20
2.3.2. Termination.......................................................................20
2.4. Revolving Loans............................................................................20
2.5. Types of Advances..........................................................................20
2.6. Facility Fee; Utilization Fee; Reductions in Aggregate Commitment..........................20
2.6.1. Facility Fee......................................................................20
2.6.2. Utilization Fee...................................................................20
2.6.3. Reductions in Aggregate Commitment................................................21
2.7. Minimum Amount of Each Advance.............................................................21
2.8. Optional Principal Payments................................................................21
2.9. Method of Selecting Types and Interest Periods for New Advances............................21
2.9.1. Method of Selecting Types and Interest Periods for New Advances...................21
2.9.2. Method of Borrowing...............................................................21
2.10. Conversion and Continuation of Outstanding Advances; No Conversion or Continuation of
Eurodollar Advances After Default..........................................................22
2.11. Changes in Interest Rate, etc..............................................................23
2.12. Rates Applicable After Default.............................................................23
2.13. Method of Payment..........................................................................23
2.14. Noteless Agreement; Evidence of Indebtedness...............................................23
2.15. Telephonic Notices.........................................................................24
2.16. Interest Payment Dates; Interest and Fee Basis.............................................24
2.17. Notification of Advances, Interest Rates, Prepayments and Commitment Reductions............25
2.18. Lending Installations......................................................................25
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2.19. Non-Receipt of Funds by the Administrative Agent...........................................25
2.20. Replacement of Lender......................................................................26
2.21. [Reserved].................................................................................26
2.22. Subsidiary Borrowers.......................................................................26
2.23. Extension of Revolving Loan Termination Date...............................................27
2.24. Increase of Commitments....................................................................27
2.25. Interest...................................................................................30
ARTICLE III YIELD PROTECTION; TAXES.............................................................................30
3.1. Yield Protection...........................................................................30
3.2. Changes in Capital Adequacy Regulations....................................................31
3.3. Availability of Types of Advances..........................................................32
3.4. Funding Indemnification....................................................................32
3.5. Taxes......................................................................................32
3.6. Lender Statements; Survival of Indemnity...................................................35
3.7. Mitigation of Obligations..................................................................35
ARTICLE IV CONDITIONS PRECEDENT.................................................................................35
4.1. Initial Credit Extension...................................................................35
4.2. Each Credit Extension......................................................................37
4.3. Initial Advance to Each New Subsidiary Borrower............................................37
ARTICLE V REPRESENTATIONS AND WARRANTIES........................................................................38
5.1. Existence and Standing.....................................................................38
5.2. Authorization and Validity.................................................................38
5.3. No Conflict; Government Consent............................................................39
5.4. Financial Statements.......................................................................39
5.5. Material Adverse Change....................................................................39
5.6. Taxes......................................................................................39
5.7. Litigation and Contingent Obligations......................................................40
5.8. Subsidiaries...............................................................................40
5.9. Accuracy of Information....................................................................40
5.10. Regulation U...............................................................................40
5.11. Material Agreements........................................................................40
5.12. Compliance With Laws.......................................................................40
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5.13. Ownership of Properties....................................................................40
5.14. ERISA; Foreign Pension Matters.............................................................41
5.15. Plan Assets; Prohibited Transactions.......................................................41
5.16. Environmental Matters......................................................................41
5.17. Investment Company Act.....................................................................42
5.18. Public Utility Holding Company Act.........................................................42
5.19. Insurance..................................................................................42
5.20. Solvency...................................................................................42
ARTICLE VI COVENANTS............................................................................................42
6.1. Reporting..................................................................................42
6.2. Use of Proceeds............................................................................44
6.3. Notice of Default..........................................................................44
6.4. Conduct of Business........................................................................44
6.5. Taxes......................................................................................45
6.6. Insurance..................................................................................45
6.7. Compliance with Laws; Maintenance of Plans.................................................45
6.8. Maintenance of Properties..................................................................45
6.9. Inspection; Keeping of Books and Records...................................................45
6.10. Addition of Guarantors.....................................................................46
6.11. Subsidiary Indebtedness....................................................................46
6.12. Consolidations and Mergers; Permitted Acquisitions.........................................47
6.12.1. Consolidations and Mergers........................................................47
6.12.2. Permitted Acquisitions............................................................47
6.13. Liens......................................................................................49
6.14. Transactions with Affiliates...............................................................50
6.15. Financial Contracts........................................................................50
6.16. ERISA......................................................................................50
6.17. Environmental Compliance...................................................................51
6.18. Financial Covenants........................................................................51
6.18.1. Maximum Leverage Ratio............................................................51
6.18.2. Minimum Interest Expense Coverage Ratio...........................................51
ARTICLE VII DEFAULTS............................................................................................52
7.1. Breach of Representations or Warranties....................................................52
iii SIDLEY XXXXXX XXXXX & XXXX
7.2. Failure to Make Payments When Due..........................................................52
7.3. Breach of Covenants........................................................................52
7.4. Other Breaches.............................................................................52
7.5. Default as to Other Indebtedness...........................................................53
7.6. Voluntary Bankruptcy; Appointment of Receiver; Etc.........................................53
7.7. Involuntary Bankruptcy; Appointment of Receiver; Etc.......................................53
7.8. Judgments..................................................................................53
7.9. Unfunded Liabilities.......................................................................54
7.10. Other ERISA Liabilities....................................................................54
7.11. Environmental Matters......................................................................54
7.12. Change in Control..........................................................................54
7.13. Receivables Purchase Document Events.......................................................54
7.14. Guarantor Revocation.......................................................................55
ARTICLE VIII ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES.....................................................55
8.1. Acceleration...............................................................................55
8.2. Amendments.................................................................................55
8.3. Preservation of Rights.....................................................................56
ARTICLE IX JOINT AND SEVERAL OBLIGATIONS........................................................................56
9.1. Joint and Several Liability................................................................56
9.2. Primary Obligation; Waiver of Marshalling..................................................57
9.3. Financial Condition of Borrowers...........................................................57
9.4. Continuing Liability.......................................................................57
9.5. Additional Waivers.........................................................................57
9.6. Settlements or Releases....................................................................58
9.7. No Election................................................................................58
9.8. Joint Loan Account.........................................................................58
9.9. Apportionment of Proceeds of Loans.........................................................58
9.10. The Administrative Agent and Lenders Held Harmless.........................................59
9.11. Borrowers' Integrated Operations...........................................................59
ARTICLE X GENERAL PROVISIONS....................................................................................59
10.1. Survival of Representations................................................................59
10.2. Governmental Regulation....................................................................59
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10.3. Headings...................................................................................59
10.4. Entire Agreement...........................................................................59
10.5. Several Obligations; Benefits of this Agreement............................................59
10.6. Expenses; Indemnification..................................................................60
10.7. Numbers of Documents.......................................................................61
10.8. Accounting.................................................................................61
10.9. Severability of Provisions.................................................................61
10.10. Nonliability of Lenders....................................................................61
10.11. Confidentiality............................................................................62
10.12. Lenders Not Utilizing Plan Assets..........................................................62
10.13. Nonreliance................................................................................62
10.14. Disclosure.................................................................................62
10.15. Subordination of Intercompany Indebtedness.................................................62
ARTICLE XI THE AGENTS...........................................................................................63
11.1. Appointment; Nature of Relationship........................................................63
11.2. Powers.....................................................................................64
11.3. General Immunity...........................................................................64
11.4. No Responsibility for Loans, Recitals, etc.................................................64
11.5. Action on Instructions of Lenders..........................................................65
11.6. Employment of Agents and Counsel...........................................................65
11.7. Reliance on Documents; Counsel.............................................................65
11.8. Agents' Reimbursement and Indemnification..................................................65
11.9. Notice of Default..........................................................................66
11.10. Rights as a Lender.........................................................................66
11.11. Lender Credit Decision.....................................................................66
11.12. Successor Agents...........................................................................66
11.13. Agent and Arranger Fees....................................................................67
11.14. Delegation to Affiliates...................................................................67
11.15. Release of Guarantors......................................................................67
ARTICLE XII SETOFF; RATABLE PAYMENTS............................................................................68
12.1. Setoff.....................................................................................68
12.2. Ratable Payments...........................................................................68
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ARTICLE XIII BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS..................................................68
13.1. Successors and Assigns; Designated Lenders.................................................68
13.1.1. Successors and Assigns............................................................68
13.1.2. Designated Lenders................................................................69
13.2. Participations.............................................................................70
13.2.1. Permitted Participants; Effect....................................................70
13.2.2. Voting Rights.....................................................................70
13.2.3. Benefit of Setoff.................................................................70
13.3. Assignments................................................................................71
13.3.1. Permitted Assignments.............................................................71
13.3.2. Effect; Effective Date............................................................71
13.3.3. The Register......................................................................72
13.4. Dissemination of Information...............................................................72
13.5. Tax Treatment..............................................................................72
ARTICLE XIV NOTICES.............................................................................................72
14.1. Notices....................................................................................72
14.2. Change of Address..........................................................................73
ARTICLE XV COUNTERPARTS.........................................................................................73
ARTICLE XVI CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL........................................73
16.1. CHOICE OF LAW..............................................................................73
16.2. CONSENT TO JURISDICTION....................................................................73
16.3. WAIVER OF JURY TRIAL.......................................................................74
vi SIDLEY XXXXXX XXXXX & XXXX
EXHIBITS
Exhibit A - Forms of Opinions
Exhibit B - Form of Compliance Certificate
Exhibit C - Form of Assignment Agreement
Exhibit D - Form of Loan/Credit Related Money Transfer Instruction
Exhibit E - Form of Promissory Note (if requested)
Exhibit F - List of Closing Documents
Exhibit G - Form of Designation Agreement
Exhibit H - Form of Guaranty
Exhibit I - Form of Assumption Letter
Exhibit J - Form of Commitment and Acceptance
SCHEDULES
Pricing Schedule
Commitment Schedule
Schedule 1.1 - Subsidiary Borrowers
Schedule 5.5 - Certain Disclosures
Schedule 5.8 - Subsidiaries
Schedule 5.16 - Environmental Matters
Schedule 6.11 - Existing Indebtedness
Schedule 6.13 - Existing Liens
vii SIDLEY XXXXXX XXXXX & XXXX
364-DAY REVOLVING CREDIT AGREEMENT
This 364-Day Revolving Credit Agreement, dated as of April 8, 2002, is
among ACUITY BRANDS, INC., a Delaware corporation, ACUITY LIGHTING GROUP, INC.,
a Delaware corporation, ACUITY SPECIALTY PRODUCTS GROUP, INC., a Delaware
corporation, and one or more other Subsidiary Borrowers from time to time
parties hereto (whether now existing or hereafter formed), the institutions from
time to time parties hereto as Lenders (whether by execution of this Agreement
or an assignment pursuant to Section 13.3), BANK ONE, NA, a national banking
association having its principal office in Chicago, Illinois, as Administrative
Agent and WACHOVIA BANK, N.A., as Syndication Agent. The parties hereto agree as
follows:
ARTICLE I
DEFINITIONS
1.1. CERTAIN DEFINED TERMS. As used in this Agreement:
"ACCOUNTING CHANGES" is defined in Section 10.8 hereof.
"ACQUISITION" means any transaction, or any series of related
transactions, consummated on or after the Closing Date, by which the Company or
any of its Subsidiaries (i) acquires any going business or all or substantially
all of the assets of any firm, corporation or limited liability company, or
division thereof, whether through purchase of assets, merger or otherwise or
(ii) directly or indirectly acquires (in one transaction or as the most recent
transaction in a series of transactions) at least a majority (in number of
votes) of the securities of a corporation which have ordinary voting power for
the election of directors (other than securities having such power only by
reason of the happening of a contingency) or a majority (by percentage of voting
power) of the outstanding ownership interests of a partnership, limited
liability company or any Person.
"ADMINISTRATIVE AGENT" means Bank One in its capacity as contractual
representative of the Lenders pursuant to Article XI, and not in its individual
capacity as a Lender, and any successor Administrative Agent appointed pursuant
to Article XI.
"ADVANCE" means a borrowing hereunder consisting of the aggregate
amount of several Revolving Loans (i) made by some or all of the Lenders on the
same Borrowing Date, or (ii) converted or continued by the Lenders on the same
date of conversion or continuation, consisting, in either case, of the aggregate
amount of the several Revolving Loans of the same Type and, in the case of
Eurodollar Loans, for the same Interest Period.
"AFFECTED LENDER" is defined in Section 2.20.
"AFFILIATE" of any Person means any other Person directly or indirectly
controlling, controlled by or under common control with such Person. A Person
shall be deemed to control another Person if the controlling Person is the
"beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange Act
of 1934) of twenty percent (20%) or more of any class of voting securities (or
other voting interests) of the controlled Person or possesses, directly or
SIDLEY XXXXXX XXXXX & XXXX
indirectly, the power to direct or cause the direction of the management or
policies of the controlled Person, whether through ownership of voting
securities, by contract or otherwise.
"AGENT" means any of the Administrative Agent or the Syndication Agent,
as appropriate, and "Agents" means, collectively, the Administrative Agent and
the Syndication Agent.
"AGGREGATE COMMITMENT" means the aggregate of the Commitments of all
the Lenders, as may be adjusted from time to time pursuant to the terms hereof.
The initial Aggregate Commitment is One Hundred Two Million Five Hundred
Thousand and 00/100 Dollars ($102,500,000).
"AGGREGATE OUTSTANDING CREDIT EXPOSURE" means, at any time, the
aggregate of the Outstanding Credit Exposure of all the Lenders.
"AGREEMENT" means this 364-Day Revolving Credit Agreement, as it may be
amended, restated, supplemented or otherwise modified and as in effect from time
to time.
"AGREEMENT ACCOUNTING PRINCIPLES" means generally accepted accounting
principles as in effect in the United States from time to time, applied in a
manner consistent with that used in preparing the financial statements of the
Company referred to in Section 5.4; provided, however, that except as provided
in Section 10.8, with respect to the calculation of financial ratios and other
financial tests required by this Agreement, "Agreement Accounting Principles"
means generally accepted accounting principles as in effect in the United States
as of the Closing Date, applied in a manner consistent with that used in
preparing the financial statements of the Company referred to in Section 5.4
hereof.
"ALTERNATE BASE RATE" means, for any day, a fluctuating rate of
interest per annum equal to the higher of (i) the Prime Rate for such day and
(ii) the sum of (a) the Federal Funds Effective Rate for such day and (b)
one-half of one percent (0.5%) per annum.
"APPLICABLE FACILITY FEE RATE" means, at any time, the percentage rate
per annum at which Facility Fees are accruing on the Aggregate Commitment at
such time as set forth in the Pricing Schedule.
"APPLICABLE MARGIN" means, with respect to Advances of any Type at any
time, the percentage rate per annum which is applicable at such time with
respect to Advances of such Type as set forth in the Pricing Schedule.
"APPLICABLE UTILIZATION FEE RATE" means, at any time, the percentage
rate per annum at which Utilization Fees accrue on the Aggregate Outstanding
Credit Exposure at such time as set forth in the Pricing Schedule.
"ARRANGER" means Banc One Capital Markets, Inc., a Delaware
corporation, and its successors, in its capacity as Lead Arranger and Sole Book
Runner.
"ARTICLE" means an article of this Agreement unless another document is
specifically referenced.
2
"ASSIGNMENT AGREEMENT" is defined in Section 13.3.1.
"ASSUMPTION LETTER" means a letter of a Subsidiary of the Company
addressed to the Administrative Agent and the Lenders, and acknowledged by the
Administrative Agent, in substantially the form of Exhibit I hereto, pursuant to
which such Subsidiary agrees to become a "Subsidiary Borrower" and agrees to be
bound by the terms and conditions hereof.
"AUTHORIZED OFFICER" means any of the chief executive officer,
president, chief operating officer, chief financial officer, or treasurer of the
Company, acting singly.
"AVAILABLE AGGREGATE COMMITMENT" means, at any time, the Aggregate
Commitment then in effect minus the Aggregate Outstanding Credit Exposure at
such time.
"BANK ONE" means Bank One, NA, a national banking association having
its principal office in Chicago, Illinois, in its individual capacity, and its
successors.
"BORROWER" means, as applicable, any of the Company or any of the
Subsidiary Borrowers, together with their respective permitted successors and
assigns, and "BORROWERS" means, collectively, the Company and the Subsidiary
Borrowers.
"BORROWING DATE" means a date on which an Advance is made hereunder.
"BORROWING NOTICE" is defined in Section 2.9.1.
"BUSINESS DAY" means (i) with respect to any borrowing, payment or rate
selection of Eurodollar Advances, a day (other than a Saturday or Sunday) on
which banks generally are open in Chicago, Illinois for the conduct of
substantially all of their commercial lending activities, interbank wire
transfers can be made on the Fedwire system and dealings in Dollars are carried
on in the London interbank market and (ii) for all other purposes, a day (other
than a Saturday or Sunday) on which banks generally are open in Chicago,
Illinois for the conduct of substantially all of their commercial lending
activities and interbank wire transfers can be made on the Fedwire system.
"BUYING LENDER" is defined in Section 2.24.2.
"CAPITALIZED LEASE" of a Person means any lease of Property by such
Person as lessee which would be capitalized on a balance sheet of such Person
prepared in accordance with Agreement Accounting Principles.
"CAPITALIZED LEASE OBLIGATIONS" of a Person means the amount of the
obligations of such Person under Capitalized Leases which would be shown as a
liability on a balance sheet of such Person prepared in accordance with
Agreement Accounting Principles.
"CAPITAL STOCK" means (i) in the case of a corporation, corporate
stock, (ii) in the case of an association or business entity, any and all
shares, interests, participations, rights or other equivalents (however
designated) of corporate stock, (iii) in the case of a partnership, partnership
interests (whether general or limited) and (iv) any other interest or
participation that confers on a
3
Person the right to receive a share of the profits and losses of, or
distributions of assets of, the issuing Person.
"CASH EQUIVALENT INVESTMENTS" means, as to any Person, (i) securities
issued or directly and fully guaranteed or insured by the United States or any
agency or instrumentality thereof (provided that the full faith and credit of
the United States is pledged in support thereof) having maturities of not more
than one year from the date of acquisition, (ii) time deposits and certificates
of deposit of any investment grade commercial bank having, or which is the
principal banking subsidiary of an investment grade bank holding company
organized under the laws of the United States, any State thereof, the District
of Columbia or any foreign jurisdiction having capital, surplus and undivided
profits aggregating in excess of $500,000,000, with maturities of not more than
one year from the date of acquisition by such Person, (iii) repurchase
obligations with a term of not more than ninety (90) days for underlying
securities of the types described in clause (i) above entered into with any bank
meeting the qualifications specified in clause (ii) above, provided that such
repurchase obligations are secured by a first priority security interest in such
underlying securities which have, on the date of purchase thereof, a fair market
value of at least 100% of the amount of the repurchase obligations, (iv)
commercial paper issued by any Person incorporated in the United States rated at
least A-1 by S&P or P-1 by Moody's and in each case maturing not more than 270
days after the date of acquisition by such Person, (v) investments in money
market funds substantially all of the assets of which are comprised of
securities of the types described in clauses (i) through (iv) above, and (vi)
demand deposit accounts maintained in the ordinary course of business.
"CHANGE" is defined in Section 3.2.
"CHANGE IN CONTROL" means (i) the acquisition by any Person, or two or
more Persons acting in concert, of beneficial ownership (within the meaning of
Rule 13d-3 of the Securities and Exchange Commission under the Securities
Exchange Act of 1934), directly or indirectly, of thirty percent (30%) or more
of the outstanding shares of voting stock of the Company; or (ii) the majority
of the Board of Directors of the Company fails to consist of Continuing
Directors.
"CLOSING DATE" means April 8, 2002.
"CODE" means the Internal Revenue Code of 1986, as amended, reformed or
otherwise modified from time to time, and any rule or regulation issued
thereunder.
"COMBINED BALANCE SHEETS" means the audited combined balance sheets of
the Company and its Subsidiaries as of August 31, 2001, a copy of which is
attached to the Form 10.
"COMBINED COMMITMENT" means the sum of (i) the Aggregate Commitment
hereunder plus (ii) the "Aggregate Commitment" under and as defined in the
3-Year Credit Agreement.
"COMBINED UTILIZED AMOUNT" means, for any date, the sum of (i) the
Aggregate Outstanding Credit Exposure as of such date, plus (ii) the "Aggregate
Outstanding Credit Exposure" as of such date under (and as defined in) the
3-Year Credit Agreement.
"COMMITMENT" means, for each Lender, the obligation of such Lender to
make Revolving Loans to a Borrower in an aggregate amount not exceeding the
amount set forth on
4
the Commitment Schedule or in an Assignment Agreement executed pursuant to
Section 13.3, as it may be modified as a result of any assignment that has
become effective pursuant to Section 13.3.2 or as otherwise modified from time
to time pursuant to the terms hereof.
"COMMITMENT INCREASE NOTICE" is defined in Section 2.24.1.
"COMMITMENT SCHEDULE" means the Schedule identifying each Lender's
Commitment as of the Closing Date attached hereto and identified as such.
"COMMITMENT TERMINATION DATE" means the earlier to occur of (i) the
Revolving Loan Termination Date, and (ii) the date the Aggregate Commitment is
reduced to zero or otherwise terminated pursuant to the terms hereof, including,
without limitation, pursuant to Sections 2.3 and 2.6 and Article VIII hereof.
"COMPANY" means Acuity Brands, Inc., a Delaware corporation, and its
permitted successors and assigns (including, without limitation, a
debtor-in-possession on its behalf).
"CONSOLIDATED NET INCOME" means, with reference to any period, the net
after-tax income (or loss) of the Company and its Subsidiaries calculated on a
consolidated basis for such period determined in accordance with Agreement
Accounting Principles, excluding minority interests and including only dividends
actually received by the Company from any entity which is not a Subsidiary.
"CONSOLIDATED NET WORTH" means at any time the consolidated
stockholders' equity of the Company and its Subsidiaries calculated on a
consolidated basis as of such time in accordance with Agreement Accounting
Principles.
"CONSOLIDATED TOTAL ASSETS" means the total amount of all assets of the
Company and its consolidated Subsidiaries, and including amounts attributable to
minority interests in Affiliates of the Company to the extent deducted in
calculating the Consolidated Total Assets of the Company and its Subsidiaries
but only to the extent such Affiliate shall be a Guarantor hereunder, calculated
on a consolidated basis as of such time in accordance with Agreement Accounting
Principles.
"CONTINUING DIRECTOR" means, with respect to any Person as of any date
of determination, any member of the board of directors of such Person who (i)
was a member of such board of directors on the Closing Date, or (ii) was
nominated for election or elected to such board of directors with the approval
of the required majority of the Continuing Directors who were members of such
board at the time of such nomination or election; provided that any individual
who is so elected or nominated in connection with a merger, consolidation,
acquisition or similar transaction shall not be a Continuing Director unless
such individual was a Continuing Director prior thereto.
"CONTRACTUAL OBLIGATION" means, for any Person, any provision of any
security issued by such Person or of any agreement, instrument or undertaking
under which such Person is obligated or by which it or any of the property owned
by it is bound.
5
"CONTROLLED GROUP" means all members of a controlled group of
corporations or other business entities and all trades or businesses (whether or
not incorporated) under common control which, together with the Company or any
of its Subsidiaries, are treated as a single employer under Section 414 of the
Code.
"CONVERSION/CONTINUATION NOTICE" is defined in Section 2.10.
"CREDIT EXTENSION" means the making of an Advance hereunder.
"CREDIT EXTENSION DATE" means the Borrowing Date for an Advance.
"DEFAULT" means an event described in Article VII.
"DESIGNATED LENDER" means, with respect to each Designating Lender,
each Eligible Designee designated by such Designating Lender pursuant to Section
13.1.2.
"DESIGNATING LENDER" means, with respect to each Designated Lender, the
Lender that designated such Designated Lender pursuant to Section 13.1.2.
"DESIGNATION AGREEMENT" is defined in Section 13.1.2.
"DISQUALIFIED STOCK" means any Capital Stock that, by its terms (or by
the terms of any security into which it is convertible or for which it is
exchangeable), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at
the option of the holder thereof, in whole or in part, on or prior to the date
that is ninety-one (91) days after the Revolving Loan Termination Date.
"DOL" means the United States Department of Labor and any successor
department or agency.
"DOLLARS" and "$" means the lawful currency of the United States of
America.
"DOMESTIC SUBSIDIARY" means a Subsidiary of the Company organized under
the laws of a jurisdiction located in the United States of America.
"EBIT" means, for any period for the Company and its consolidated
Subsidiaries, the sum of the amounts for such period, without duplication,
calculated in each case in accordance with Agreement Accounting Principles, of
(i) Net Income, plus (ii) Interest Expense to the extent deducted in computing
Net Income, plus (iii) charges against income for foreign, federal, state and
local taxes to the extent deducted in computing Net Income, plus (iv) any other
non-recurring non-cash charges to the extent deducted in computing Net Income,
minus (v) any non-recurring non-cash credits to the extent added in computing
Net Income.
"EBITDA" means, for any period for the Company and its consolidated
Subsidiaries, the sum of the amounts for such period, without duplication,
calculated in each case in accordance with Agreement Accounting Principles, of
(i) EBIT, plus (ii) depreciation expense to the extent deducted in computing Net
Income, plus (iii) amortization expense, including, without
6
limitation, amortization of goodwill and other intangible assets to the extent
deducted in computing Net Income.
"EFFECTIVE COMMITMENT AMOUNT" is defined in Section 2.24.1.
"ELIGIBLE DESIGNEE" means a special purpose corporation, partnership,
trust, limited partnership or limited liability company that is administered by
a Lender or an Affiliate of a Lender and (i) is organized under the laws of the
United States of America or any state thereof, (ii) is engaged primarily in
making, purchasing or otherwise investing in commercial loans in the ordinary
course of its business and (iii) issues (or the parent of which issues)
commercial paper rated at least A-1 or the equivalent thereof by S&P or the
equivalent thereof by Moody's.
"ENVIRONMENTAL LAWS" means any and all federal, state, local and
foreign statutes, laws, judicial decisions, regulations, ordinances, rules,
judgments, orders, decrees, plans, injunctions, permits, concessions, grants,
franchises, licenses, agreements and other governmental restrictions relating to
(i) the protection of the environment, (ii) the effect of the environment on
human health, (iii) emissions, discharges or releases of pollutants,
contaminants, hazardous substances or wastes into surface water, ground water or
land, or (iv) the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of pollutants, contaminants, hazardous
substances or wastes or the clean-up or other remediation thereof.
"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, including (unless the context otherwise requires) any
rules or regulations promulgated thereunder.
"EURODOLLAR ADVANCE" means an Advance which, except as otherwise
provided in Section 2.12, bears interest at a Eurodollar Rate requested by a
Borrower pursuant to Sections 2.9 and 2.10.
"EURODOLLAR BASE RATE" means, with respect to a Eurodollar Advance for
the relevant Interest Period, the applicable British Bankers' Association
Interest Settlement Rate for deposits in Dollars appearing on Reuters Screen
FRBD as of 11:00 a.m. (London time) two (2) Business Days prior to the first day
of such Interest Period, and having a maturity equal to such Interest Period,
provided that, (i) if Reuters Screen FRBD is not available to the Administrative
Agent for any reason, the applicable Eurodollar Base Rate for the relevant
Interest Period shall instead be the applicable British Bankers' Association
Interest Settlement Rate for deposits in Dollars as reported as of 11:00 a.m.
(London time) two (2) Business Days prior to the first day of such Interest
Period by any other generally recognized financial information service selected
by the Administrative Agent, and having a maturity equal to such Interest
Period, and (ii) if no such British Bankers' Association Interest Settlement
Rate is available to the Administrative Agent, the applicable Eurodollar Base
Rate for the relevant Interest Period shall instead be the rate determined by
the Administrative Agent to be the rate at which Bank One or one of its
affiliate bank offers to place deposits in Dollars with first-class banks in the
London interbank market at approximately 11:00 a.m. (London time) two (2)
Business Days prior to the first day of such Interest Period, in the approximate
amount of Bank One's relevant Eurodollar Loan and having a maturity equal to
such Interest Period.
7
"EURODOLLAR LOAN" means a Revolving Loan which, except as otherwise
provided in Section 2.12, bears interest at a Eurodollar Rate requested by a
Borrower pursuant to Sections 2.9 and 2.10.
"EURODOLLAR RATE" means, with respect to a Eurodollar Advance for the
relevant Interest Period, the sum of (i) the quotient of (a) the Eurodollar Base
Rate applicable to such Interest Period, divided by (b) one minus the Reserve
Requirement (expressed as a decimal) applicable to such Interest Period, plus
(ii) the then Applicable Margin, changing as and when the Applicable Margin
changes.
"EXCLUDED TAXES" means, in the case of each Lender or applicable
Lending Installation and each Agent, taxes imposed on its overall net income,
and franchise or branch office taxes imposed on it, by (i) the jurisdiction
under the laws of which such Lender or Agent is incorporated or organized or any
political combination or subdivision or taxing authority thereof or (ii) the
jurisdiction in which such Agent's or Lender's principal executive office or
such Lender's applicable Lending Installation is located or in which, other than
as a result of the transaction evidenced by this Agreement, such Agent or Lender
otherwise is, or at any time was, engaged in business (or any political
combination or subdivision or taxing authority thereof).
"EXHIBIT" refers to an exhibit to this Agreement, unless another
document is specifically referenced.
"EXISTING CREDIT AGREEMENT" means that certain 364-Day Revolving Credit
Agreement dated as of October 3, 2001 among the Company (formerly known as L & C
Spinco, Inc.), the subsidiary borrowers parties thereto, the lenders parties
thereto, and Bank One, NA, as administrative agent, as the same has been
amended, restated, supplemented or otherwise modified from time to time.
"EXTENSION REQUEST" is defined in Section 2.23.
"FACILITY FEE" is defined in Section 2.6.1.
"FEDERAL FUNDS EFFECTIVE RATE" means, for any day, an interest rate per
annum equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published for such day (or, if such day is not a
Business Day, for the immediately preceding Business Day) by the Federal Reserve
Bank of New York, or, if such rate is not so published for any day which is a
Business Day, the average of the quotations at approximately 10:00 a.m. (Chicago
time) on such day on such transactions received by the Administrative Agent from
three Federal funds brokers of recognized standing selected by the
Administrative Agent in its sole discretion.
"FINANCIAL CONTRACT" of a Person means (i) any exchange-traded or
over-the-counter futures, forward, swap or option contract or other financial
instrument with similar characteristics or (ii) any agreements, devices or
arrangements providing for payments related to fluctuations of interest rates,
exchange rates, forward rates or commodity prices, including, but not limited
to, interest rate swap or exchange agreements, forward currency exchange
8
agreements, interest rate cap or collar protection agreements, forward rate
currency, interest rate options puts or warrants.
"FLOATING RATE" means, for any day, a rate per annum equal to the sum
of (i) Alternate Base Rate for such day, changing when and as the Alternate Base
Rate changes plus (ii) the then Applicable Margin, changing as and when the
Applicable Margin changes.
"FLOATING RATE ADVANCE" means an Advance which, except as otherwise
provided in Section 2.12, bears interest at the Floating Rate.
"FLOATING RATE LOAN" means a Revolving Loan or portion thereof, which,
except as otherwise provided in Section 2.12, bears interest at the Floating
Rate.
"FOREIGN PENSION PLAN" means any employee benefit plan as described in
Section 3(3) of ERISA for which the Company or any member of its Controlled
Group is a sponsor or administrator and which (i) is maintained or contributed
to for the benefit of employees of the Company, any of its respective
Subsidiaries or any member of its Controlled Group, (ii) is not covered by ERISA
pursuant to Section 4(b)(4) of ERISA, and (iii) under applicable local law, is
required to be funded through a trust or other funding vehicle.
"FOREIGN SUBSIDIARY" means a Subsidiary of the Company which is not a
Domestic Subsidiary.
"FORM 10" means the Form 10 General Report for Registration of
Securities Pursuant to Section 12(b) or 12(g) of the Securities Exchange Act of
1934 filed on July 3, 2001 by the Company (File No. 0001144215) with the
Commission in connection with the Spin-Off, together with all exhibits and
appendices thereto, as amended prior to the Closing Date.
"GUARANTOR" means the Company and each Material Subsidiary of the
Company (other than an SPV) that is a Domestic Subsidiary as of the Closing Date
and each other Subsidiary that has become a guarantor of the Obligations
hereunder in accordance with the terms of Section 6.10.
"GUARANTY" means that certain Guaranty (and any and all supplements
thereto) executed from time to time by each Guarantor (other than the Company)
in favor of the Administrative Agent for the benefit of itself and the Lenders,
in substantially the form of Exhibit H attached hereto, as amended, restated,
supplemented or otherwise modified from time to time.
"INDEBTEDNESS" of a Person means, without duplication, (a) Indebtedness
For Borrowed Money and (b) any other obligation or other financial accommodation
which in accordance with Agreement Accounting Principles would be shown as a
liability on the consolidated balance sheet of such Person (other than current
accounts payable arising in the ordinary course of such Person's business
payable on terms customary in the trade).
"INDEBTEDNESS FOR BORROWED MONEY" of a Person means, without
duplication, (a) the obligations of such Person (i) for borrowed money or which
has been incurred in connection with the acquisition of property or assets
(other than current accounts payable arising in the ordinary course of such
Person's business payable on terms customary in the trade), (ii) under or
9
with respect to notes payable and drafts accepted which represent extensions of
credit (whether or not representing obligations for borrowed money) to such
Person, (iii) constituting reimbursement obligations with respect to letters of
credit issued for the account of such Person or (iv) for the deferred purchase
price of property or services (other than current accounts payable arising in
the ordinary course of such Person's business payable on terms customary in the
trade), (b) the Indebtedness For Borrowed Money of others, whether or not
assumed, secured by Liens on property of such Person or payable out of the
proceeds of, or production from, property or assets now or hereafter owned or
acquired by such Person, (c) the Capitalized Lease Obligations of such Person,
(d) the obligations of such Person under guaranties by such Person of any
Indebtedness For Borrowed Money (other than obligations for borrowed money
incurred to finance the purchase of property leased to such Person pursuant to a
Capitalized Lease of such Person) of any other Person, (e) all Receivable
Facility Attributed Indebtedness of such Person, (f) all Off-Balance Sheet
Liabilities of such Person, and (g) all Disqualified Stock.
"INTEREST EXPENSE" means, for any period for any group of Persons, the
total gross interest expense of such group of Persons, whether paid or accrued,
including, without duplication, the interest component of Capitalized Leases,
commitment and letter of credit fees, the discount or implied interest component
of Off-Balance Sheet Liabilities, capitalized interest expense, pay-in-kind
interest expense, amortization of debt discount and net payments (if any)
pursuant to Financial Contracts relating to interest rate protection, all as
determined on a consolidated basis in conformity with Agreement Accounting
Principles.
"INTEREST EXPENSE COVERAGE RATIO" is defined in Section 6.18.2.
"INTEREST PERIOD" means, with respect to a Eurodollar Advance, a period
of seven days or one, two, three or six months or such other period agreed to by
the Lenders and the Borrowers, commencing on a Business Day selected by the
applicable Borrower pursuant to this Agreement. Such Interest Period shall end
on but exclude the day which corresponds numerically to such date seven days or
one, two, three or six months or such other agreed upon period thereafter,
provided, however, that if there is no such numerically corresponding day in
such seventh day or next, second, third or sixth succeeding month or such other
succeeding period, such Interest Period shall end on the last Business Day of
such seventh day or next, second, third or sixth succeeding month or such other
succeeding period. If an Interest Period would otherwise end on a day which is
not a Business Day, such Interest Period shall end on the next succeeding
Business Day, provided, however, that if said next succeeding Business Day falls
in a new calendar month, such Interest Period shall end on the immediately
preceding Business Day.
"IRS" means the United States Internal Revenue Service and any
successor agency.
"LENDERS" means the lending institutions listed on the signature pages
of this Agreement and their respective successors and assigns.
"LENDER INCREASE NOTICE" is defined in Section 2.24.1.
"LENDING INSTALLATION" means, with respect to a Lender or the Agents,
the office, branch, subsidiary or affiliate of such Lender or Agent listed on
the signature pages hereof, or on the
10
administrative information sheets provided to the Administrative Agent in
connection herewith, or on a Schedule or otherwise selected by such Lender or
Agent pursuant to Section 2.18.
"LEVERAGE RATIO" is defined in Section 6.18.1.
"LIEN" means any lien (statutory or other), mortgage, pledge,
hypothecation, assignment, deposit arrangement, encumbrance or preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever (including, without limitation, the interest of a vendor or
lessor under any conditional sale, Capitalized Lease or other title retention
agreement, and, in the case of stock, stockholders agreements, voting trust
agreements and all similar arrangements).
"LOAN DOCUMENTS" means this Agreement, the Guaranty, each Assumption
Letter executed hereunder, and all other documents, instruments, notes
(including any Notes issued pursuant to Section 2.14 (if requested)) and
agreements executed in connection herewith or therewith or contemplated hereby
or thereby, as the same may be amended, restated or otherwise modified and in
effect from time to time.
"MATERIAL ADVERSE EFFECT" means a material adverse effect on (i) the
business, financial condition, operations or properties of the Company and its
Subsidiaries taken as a whole, (ii) the ability of the Company or any of its
Subsidiaries to perform its respective obligations under the Loan Documents to
which it is a party, or (iii) the validity or enforceability of any of the Loan
Documents or the rights or remedies of the Agents or the Lenders thereunder.
"MATERIAL INDEBTEDNESS" is defined in Section 7.5.
"MATERIAL SUBSIDIARY" means each Borrower (other than the Company) and
any other Subsidiary of the Company that at any time has (i) assets with a total
book value equal to or greater than five percent (5%) of the aggregate book
value of the Consolidated Total Assets of the Company and its Subsidiaries or
(ii) Consolidated Net Worth that is equal to or greater than five percent (5%)
of the Consolidated Net Worth of the Company and its Subsidiaries, or (iii)
assets that contributed five percent (5%) or more of the Company's Consolidated
Net Income, in each case as reported in the most recent annual audited financial
statements delivered to the Lenders pursuant to Section 6.1(i) (or, prior to the
delivery of the first of such annual audited financial statements, as reported
in the Combined Balance Sheets).
"MOODY'S" means Xxxxx'x Investors Service, Inc. and any successor
thereto.
"XXXXX'X RATING" is defined in the Pricing Schedule.
"MULTIEMPLOYER PLAN" means a Plan maintained pursuant to a collective
bargaining agreement or any other arrangement to which the Company or any member
of its Controlled Group is a party to which more than one employer is obligated
to make contributions.
"NET INCOME" means, for any period for any group of Persons, the net
earnings (or loss) after taxes of such group of Persons on a consolidated basis
for such period taken as a single accounting period determined in conformity
with Agreement Accounting Principles.
11
"NON-U.S. LENDER" is defined in Section 3.5(iv).
"NOTE" is defined in Section 2.14.
"NSI" means National Service Industries, Inc., a Delaware corporation.
"OBLIGATIONS" means all Revolving Loans, advances, debts, liabilities,
obligations, covenants and duties owing by the Borrowers to any of the Agents,
any Lender, the Arranger, any affiliate of the Agents, any Lender, the Arranger,
or any indemnitee under the provisions of Section 10.6 or any other provisions
of the Loan Documents, in each case of any kind or nature, present or future,
arising under this Agreement or any other Loan Document, whether or not
evidenced by any note, guaranty or other instrument, whether or not for the
payment of money, whether arising by reason of an extension of credit, loan,
foreign exchange risk, guaranty, indemnification, or in any other manner,
whether direct or indirect (including those acquired by assignment), absolute or
contingent, due or to become due, now existing or hereafter arising and however
acquired. The term includes, without limitation, all interest, charges,
expenses, fees, attorneys' fees and disbursements, paralegals' fees (in each
case whether or not allowed), and any other sum chargeable to the Company or any
of its Subsidiaries under this Agreement or any other Loan Document.
"OFF-BALANCE SHEET LIABILITY" of a Person means (i) Receivables
Facility Attributed Indebtedness and any repurchase obligation or liability of
such Person or any of its Subsidiaries with respect to Receivables or notes
receivable sold by such Person or any of its Subsidiaries (calculated to include
the unrecovered investment of purchasers or transferees of Receivables or any
other obligation of the Company or such transferor to purchasers/transferees of
interests in Receivables or notes receivable or the agent for such
purchasers/transferees), (ii) any liability under any sale and leaseback
transaction which is not a Capitalized Lease, (iii) any liability under any
financing lease or Synthetic Lease or "tax ownership operating lease"
transaction entered into by such Person, including any Synthetic Lease
Obligations, or (iv) any obligation arising with respect to any other
transaction which is the functional equivalent of or takes the place of
borrowing but which does not constitute a liability on the consolidated balance
sheets of such Person, but excluding from this clause (iv) Operating Leases.
"OPERATING LEASE" of a Person means any lease of Property (other than a
Capitalized Lease) by such Person as lessee which has an original term
(including any required renewals and any renewals effective at the option of the
lessor) of one year or more.
"ORIGINATOR" means the Company and/or any of its Subsidiaries in their
respective capacities as parties to any Receivables Purchase Documents, as
sellers or transferors of any Receivables and Related Security in connection
with a Permitted Receivables Transfer.
"OTHER TAXES" is defined in Section 3.5(ii).
"OUTSTANDING CREDIT EXPOSURE" means, as to any Lender at any time, the
aggregate principal amount of its Revolving Loans outstanding at such time.
"PARTICIPANTS" is defined in Section 13.2.1.
12
"PAYMENT DATE" means the last day of each March, June, September and
December and the Commitment Termination Date.
"PBGC" means the Pension Benefit Guaranty Corporation, or any successor
thereto.
"PERMITTED ACQUISITION" is defined in Section 6.12.2.
"PERMITTED LIENS" means the Liens expressly permitted under clauses (i)
through (xv) of Section 6.13.
"PERMITTED RECEIVABLES TRANSFER" means (i) a sale or other transfer by
an Originator to a SPV of Receivables and Related Security for fair market value
and without recourse (except for limited recourse typical of such structured
finance transactions), and/or (ii) a sale or other transfer (including the grant
of Liens) by a SPV to (a) purchasers of, lenders on or other investors in such
Receivables and Related Security (or interests therein) or (b) any other Person
(including a SPV) in a transaction in which purchasers or other investors
purchase or are otherwise transferred such Receivables and Related Security (or
interests therein including Liens), in each case pursuant to and in accordance
with the terms of the Receivables Purchase Documents.
"PERMITTED REFINANCING INDEBTEDNESS" means any replacement, renewal,
refinancing or extension of any Indebtedness permitted by this Agreement that
(i) does not exceed the aggregate principal amount (plus accrued interest and
any applicable premium and associated fees and expenses) of the Indebtedness
being replaced, renewed, refinanced or extended, (ii) does not have a Weighted
Average Life to Maturity at the time of such replacement, renewal, refinancing
or extension that is less than the Weighted Average Life to Maturity of the
Indebtedness being replaced, renewed, refinanced or extended, and (iii) does not
rank at the time of such replacement, renewal, refinancing or extension senior
to the Indebtedness being replaced, renewed, refinanced or extended.
"PERSON" means any natural person, corporation, firm, joint venture,
partnership, limited liability company, association, enterprise, trust or other
entity or organization, or any government or political subdivision or any
agency, department or instrumentality thereof.
"PLAN" means an employee benefit plan which is covered by Title IV of
ERISA or subject to the minimum funding standards under Section 412 of the Code
as to which the Company or any member of its Controlled Group may have any
liability.
"PRICING SCHEDULE" means the Schedule identifying the Applicable
Margin, Applicable Facility Fee Rate and Applicable Utilization Rate attached
hereto identified as such.
"PRIME RATE" means a rate per annum equal to the prime rate of interest
announced from time to time by Bank One or its parent (which is not necessarily
the lowest rate charged to any customer), changing when and as said prime rate
changes.
"PROPERTY" of a Person means any and all property, whether real,
personal, tangible, intangible, or mixed, of such Person, or other assets owned,
leased or operated by such Person.
"PROPOSED NEW LENDER" is defined in Section 2.24.1.
13
"PRO RATA SHARE" means, with respect to a Lender, a portion equal to a
fraction the numerator of which is such Lender's Commitment at such time (in
each case, as adjusted from time to time in accordance with the provisions of
this Agreement) and the denominator of which is the Aggregate Commitment at such
time, or, if the Aggregate Commitment has been terminated, a fraction the
numerator of which is such Lender's Outstanding Credit Exposure at such time and
the denominator of which is the sum of the Aggregate Outstanding Credit Exposure
at such time.
"PURCHASE PRICE" means the total consideration and other amounts
payable in connection with any Acquisition, including, without limitation, any
portion of the consideration payable in cash, all Indebtedness, liabilities and
contingent obligations incurred or assumed in connection with such Acquisition
and all transaction costs and expenses incurred in connection with such
Acquisition, but exclusive of the value of any Capital Stock or other equity
interests of the Company or any Subsidiary issued as consideration for such
Acquisition.
"PURCHASERS" is defined in Section 13.3.1.
"RECEIVABLE(S)" means and includes all of applicable Originator's or
SPV's presently existing and hereafter arising or acquired accounts, accounts
receivable, and all present and future rights of such Originator or SPV, as
applicable, to payment for goods sold or leased or for services rendered (except
those evidenced by instruments or chattel paper), whether or not they have been
earned by performance, and all rights in any merchandise or goods which any of
the same may represent, and all rights, title, security, contracts, books and
records, and guaranties with respect to each of the foregoing, including,
without limitation, any right of stoppage in transit.
"RECEIVABLES AND RELATED SECURITY" means the Receivables and the
related security and collections with respect thereto which are sold or
transferred by any Originator or SPV in connection with any Permitted
Receivables Transfer.
"RECEIVABLES FACILITY ATTRIBUTED INDEBTEDNESS" means the amount of
obligations outstanding under a receivables purchase facility on any date of
determination that would be characterized as principal if such facility were
structured as a secured lending transaction rather than as a purchase.
"RECEIVABLES FACILITY FINANCING COSTS" means such portion of the cash
fees, service charges, and other costs, as well as all collections or other
amounts retained by purchasers of receivables pursuant to a receivables purchase
facility, which are in excess of amounts paid to the Company and its
consolidated Subsidiaries under any receivables purchase facility for the
purchase of receivables pursuant to such facility and are the equivalent of the
interest component of the financing if the transaction were characterized as an
on-balance sheet transaction.
"RECEIVABLES PURCHASE DOCUMENTS" means any series of receivables
purchase or sale, credit or servicing agreements generally consistent with terms
contained in comparable structured finance transactions pursuant to which an
Originator or Originators sell or transfer to SPVs all of their respective
right, title and interest in and to certain Receivables and Related Security for
further sale or transfer (or granting of Liens) to other purchasers of or
investors in
14
such assets or interests therein (and the other documents, instruments and
agreements executed in connection therewith), as any such agreements may be
amended, restated, supplemented or otherwise modified from time to time, or any
replacement or substitution therefor.
"RECEIVABLES PURCHASE FINANCING" means any financing consisting of a
securitization facility made available to the Company or any of its consolidated
Subsidiaries, whereby the Receivables and Related Security (or interests
therein) of the Originators are transferred to one or more SPVs, and thereafter
to certain investors (or are used as collateral to enable one or more SPVs to
obtain loans from certain investors), pursuant to the terms and conditions of
the Receivables Purchase Documents.
"REDEEMABLE PREFERRED STOCK" means, for any Person, any preferred stock
issued by such Person which is at any time prior to the Commitment Termination
Date either (i) mandatorily redeemable (by required sinking fund or similar
payments or otherwise) or (ii) redeemable at the option of the holder thereof.
"REGULATION D" means Regulation D of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor thereto
or other regulation or official interpretation of said Board of Governors
relating to reserve requirements applicable to member banks of the Federal
Reserve System.
"REGULATION T" means Regulation T of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by and to brokers and dealers of securities for the purpose
of purchasing or carrying margin stock (as defined therein).
"REGULATION U" means Regulation U of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by banks, non-banks and non-broker lenders for the purpose
of purchasing or carrying margin stocks applicable to member banks of the
Federal Reserve System.
"REGULATION X" means Regulation X of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by foreign lenders for the purpose of purchasing or carrying
margin stock (as defined therein).
"REPORTABLE EVENT" means a reportable event, as defined in Section 4043
of ERISA and the regulations issued under such section, with respect to a Plan,
excluding, however, such events as to which the PBGC has by regulation or
otherwise waived the requirement of Section 4043(a) of ERISA that it be notified
within thirty (30) days of the occurrence of such event, provided, however, that
a failure to meet the minimum funding standard of Section 412 of the Code and of
Section 302 of ERISA shall be a Reportable Event regardless of the issuance of
any such waiver of the notice requirement in accordance with either Section
4043(a) of ERISA or Section 412(d) of the Code.
"REQUIRED LENDERS" means Lenders in the aggregate having fifty-one
percent (51%) or more of the Aggregate Commitment or, if the Aggregate
Commitment has been terminated,
15
Lenders in the aggregate holding fifty-one percent (51%) or more of the
Aggregate Outstanding Credit Exposure.
"RESERVE REQUIREMENT" means, with respect to an Interest Period, the
maximum aggregate reserve requirement (including all basic, supplemental,
marginal and other reserves) which is imposed under Regulation D on
"Eurocurrency liabilities" (as defined in Regulation D).
"RESPONSE DATE" is defined in Section 2.23.
"REVOLVING LOAN" means, with respect to a Lender, such Lender's loan
made pursuant to its commitment to lend set forth in Section 2.1 (and any
conversion or continuation thereof).
"REVOLVING LOAN TERMINATION DATE" means April 4, 2003, or any later
date as may be specified as the Revolving Loan Termination Date in accordance
with Section 2.23.
"RISK BASED CAPITAL GUIDELINES" is defined in Section 3.2.
"S&P" means Standard and Poor's Ratings Services, a division of The
XxXxxx-Xxxx Companies, Inc. and any successor thereto.
"S&P RATING" is defined in the Pricing Schedule.
"SCHEDULE" refers to a specific schedule to this Agreement, unless
another document is specifically referenced.
"SECTION" means a numbered section of this Agreement, unless another
document is specifically referenced.
"SELLING LENDER" is defined in Section 2.24.2.
"SETTLEMENT DATE" is defined in Section 2.24.2.
"SINGLE EMPLOYER PLAN" means a Plan maintained by the Company or any
member of its Controlled Group for employees of the Company or any member of its
Controlled Group.
"SOLVENT" means, when used with respect to any Person, that at the time
of determination:
(i) the fair value of its assets (both at fair valuation and at
present fair saleable value) is equal to or in excess of the total amount of its
liabilities, including, without limitation, contingent liabilities; and
(ii) it is then able and expects to be able to pay its debts as
they mature; and
(iii) it has capital sufficient to carry on its business as
conducted and as proposed to be conducted.
With respect to contingent liabilities (such as litigation, guarantees
and pension plan liabilities), such liabilities shall be computed at the amount
which, in light of all the facts and
16
circumstances existing at the time, represent the amount which can be reasonably
be expected to become an actual or matured liability.
"SPIN-OFF" means the distribution by NSI to its stockholders in a
tax-free transaction of all of the outstanding capital stock of the Company
pursuant to which the Company became a separate publicly-held corporation owned
directly by the stockholders of NSI to whom such distribution was made.
"SPIN-OFF TRANSACTIONS" means the series of transactions contemplated
by and described in the Form 10, including, but not limited to the Spin-Off.
"SPV" means any special purpose entity established for the purpose of
purchasing receivables in connection with a Receivables Purchase Financing
permitted under the terms of this Agreement.
"STOCKHOLDERS' EQUITY" means, at any time, the shareholders' equity of
the Company and its consolidated Subsidiaries, as set forth or reflected on the
most recent consolidated balance sheet of the Company and its consolidated
Subsidiaries delivered pursuant to Section 6.1(i) and (ii), as applicable, but
excluding any Redeemable Preferred Stock of the Company or any of its
consolidated Subsidiaries.
"SUBSIDIARY" of a Person means (i) any corporation more than fifty
percent (50%) of the outstanding securities having ordinary voting power of
which shall at the time be owned or controlled, directly or indirectly, by such
Person or by one or more of its Subsidiaries or by such Person and one or more
of its Subsidiaries, or (ii) any partnership, limited liability company,
association, joint venture or similar business organization more than fifty
percent (50%) of the ownership interests having ordinary voting power of which
shall at the time be so owned or controlled. Unless otherwise expressly
provided, all references herein to a "Subsidiary" shall mean a Subsidiary of the
Company.
"SUBSIDIARY BORROWER" means each of the Company's Subsidiaries listed
on Schedule 1.1, and any other Subsidiaries of the Company duly designated by
the Company pursuant to Section 2.22 to request Credit Extensions hereunder,
which Subsidiary shall have delivered to the Administrative Agent an Assumption
Letter in accordance with Section 2.22 and such other documents as may be
required pursuant to this Agreement, in each case, together with its respective
successors and assigns, including a debtor-in-possession on behalf of such
Subsidiary Borrower.
"SUBSTANTIAL PORTION" means, with respect to the Property of the
Company and its Subsidiaries, Property which (i) represents more than twenty
percent (20%) of the consolidated assets of the Company and its Subsidiaries as
would be shown in the consolidated financial statements of the Company and its
Subsidiaries as at the end of the four fiscal quarter period ending with the
fiscal quarter immediately prior to the fiscal quarter in which such
determination is made, or (ii) is responsible for providing more than twenty
percent (20%) of the Consolidated Net Income of the Company and its Subsidiaries
as reflected in the financial statements referred to in clause (i) above.
17
"SYNDICATION AGENT" means Wachovia Bank, N.A. in its capacity as the
syndication agent for the Lenders pursuant to Article XI, and not in its
individual capacity as a Lender, and any successor Syndication Agent appointed
pursuant to Article XI.
"SYNTHETIC LEASE" means any so-called "synthetic", off-balance sheet or
tax retention lease, or any other agreement for the use or possession of
property creating obligations that are not treated as a capital lease under
Agreement Accounting Principles, but that is treated as a financing under the
Code.
"SYNTHETIC LEASE OBLIGATIONS" means, collectively, the payment
obligations of the Company or any of its Subsidiaries pursuant to a Synthetic
Lease.
"TAXES" means any and all present or future taxes, duties, levies,
imposts, deductions, charges or withholdings, and any and all liabilities with
respect to the foregoing, but excluding Excluded Taxes.
"3-YEAR CREDIT AGREEMENT" means that certain 3-Year Revolving Credit
Agreement, dated as of April 8, 2002, by and among the Company, the subsidiary
borrowers parties thereto, the lenders parties thereto, and Bank One, NA, as
administrative agent, as the same may be amended, restated, supplemented or
otherwise modified and as in effect from time to time.
"TRANSACTION DOCUMENTS" means the Loan Documents and the documents
executed and delivered by NSI, the Company or any of their respective
Subsidiaries in connection with the Spin-Off, including, without limitation, the
Form 10.
"TRANSFEREE" is defined in Section 13.4.
"TYPE" means, with respect to any Advance, its nature as a Floating
Rate Advance or a Eurodollar Advance.
"UNFUNDED LIABILITIES" means the amount (if any) by which the present
value of all vested and unvested accrued benefits under all Single Employer
Plans exceeds the fair market value of all such Plan assets allocable to such
benefits, all determined as of the then most recent valuation date for such
Plans using PBGC actuarial assumptions for single employer plan terminations.
"UNMATURED DEFAULT" means an event which but for the lapse of time or
the giving of notice, or both, would constitute a Default.
"UTILIZATION FEE" is defined in Section 2.6.2.
"WEIGHTED AVERAGE LIFE TO MATURITY" means when applied to any
Indebtedness at any date, the number of years obtained by dividing (i) the sum
of the products obtained by multiplying (a) the amount of each then remaining
installment, sinking fund, serial maturity or other required payments of
principal, including payment at final maturity, in respect thereof, by (b) the
number of years (calculated to the nearest one-twelfth) that will elapse between
such date and the making of such payment, by (ii) the then outstanding principal
amount of such Indebtedness.
18
"WHOLLY-OWNED SUBSIDIARY" of a Person means (i) any Subsidiary all of
the outstanding voting securities of which shall at the time be owned or
controlled, directly or indirectly, by such Person or one or more Wholly-Owned
Subsidiaries of such Person, or by such Person and one or more Wholly-Owned
Subsidiaries of such Person, or (ii) any partnership, limited liability company,
association, joint venture or similar business organization 100% of the
ownership interests having ordinary voting power of which shall at the time be
so owned or controlled; provided that in the case of clause (i) or (ii) above,
there shall be excluded (x) directors' qualifying shares, (y) nominal ownership
interests in Foreign Subsidiaries required to be held by third parties under the
laws of the foreign jurisdiction in which such Foreign Subsidiary is organized,
or (z) Disqualified Stock or Redeemable Preferred Stock.
The foregoing definitions shall be equally applicable to both the
singular and plural forms of the defined terms.
Any accounting terms used in this Agreement which are not specifically
defined herein shall have the meanings customarily given them in accordance with
Agreement Accounting Principles.
1.2. REFERENCES. Any references to the Company's Subsidiaries shall
not in any way be construed as consent by the Administrative Agent or any Lender
to the establishment, maintenance or acquisition of any Subsidiary, except as
may otherwise be permitted hereunder. All representations and warranties made on
and as of the Closing Date with respect to the Borrowers shall also be and be
deemed to include a reference to the Borrowers after taking into effect the
consummation of the Spin-Off.
1.3. SUPPLEMENTAL DISCLOSURE. At any time at the reasonable request
of the Administrative Agent (which shall not be done more frequently than on a
quarterly basis in the absence of a Default) and at such additional times as the
Company determines, the Company shall supplement each schedule or representation
herein or in the other Loan Documents with respect to any matter hereafter
arising which, if existing or occurring at the Closing Date, would have been
required to be set forth as an exception to such representation or which is
necessary to correct any information in such representation which has been
rendered materially inaccurate thereby. Notwithstanding that any such supplement
to such representation may disclose the existence or occurrence of events, facts
or circumstances which are either prohibited by the terms of this Agreement or
any other Loan Documents or which result in the material breach of any
representation or warranty, such supplement to such representation shall not be
deemed either an amendment thereof or a waiver of such breach unless expressly
consented to in writing by Administrative Agent and the requisite number of
Lenders under Section 8.2, and no such amendments, except as the same may be
consented to in a writing which expressly includes a waiver, shall be or be
deemed a waiver by the Administrative Agent or any Lender of any Default
disclosed therein. Any items disclosed in any such supplemental disclosures
shall be included in the calculation of any limits, baskets or similar
restrictions contained in this Agreement or any of the other Loan Documents.
19
ARTICLE II
THE CREDITS
2.1. Commitment. From and including the Closing Date and prior to
the Commitment Termination Date, upon the satisfaction of the conditions
precedent set forth in Section 4.1, 4.2 and 4.3, as applicable, each Lender
severally and not jointly agrees, on the terms and conditions set forth in this
Agreement, to make Revolving Loans to the Borrowers in Dollars from time to time
in amounts not to exceed in the aggregate at any one time outstanding of its Pro
Rata Share of the Available Aggregate Commitment; provided that at no time shall
the Aggregate Outstanding Credit Exposure hereunder exceed the Aggregate
Commitment. Subject to the terms of this Agreement, the Borrowers may borrow,
repay and reborrow Revolving Loans at any time prior to the Commitment
Termination Date. The Commitments to lend hereunder shall expire automatically
on the Commitment Termination Date.
2.2. [Reserved].
2.3. Required Payments; Termination.
2.3.1. Required Payments. This Agreement shall be effective until the
Commitment Termination Date. Any outstanding Advances and all other unpaid
Obligations shall be paid in full by the Borrowers on the Commitment Termination
Date.
2.3.2. Termination. Notwithstanding the termination of this Agreement
on the Commitment Termination Date, until all of the Obligations (other than
contingent indemnity obligations) shall have been fully paid and satisfied and
all financing arrangements among the Borrowers and the Lenders hereunder and
under the other Loan Documents shall have been terminated, all of the rights and
remedies under this Agreement and the other Loan Documents shall survive and the
Administrative Agent shall be entitled to retain its security interest in and to
all existing and future collateral (if any).
2.4. Revolving Loans. Each Advance hereunder shall consist of
Revolving Loans made from the several Lenders ratably in proportion to the ratio
that their respective Commitments bear to the Aggregate Commitment.
2.5. Types of Advances. The Advances may be Revolving Loans
consisting of Floating Rate Advances or Eurodollar Advances, or a combination
thereof, selected by the applicable Borrower in accordance with Sections 2.9 and
2.10.
2.6. Facility Fee; Utilization Fee; Reductions in Aggregate
Commitment.
2.6.1. Facility Fee. The Borrowers agree to pay to the Administrative
Agent for the account of each Lender a facility fee (the "FACILITY FEE") at a
per annum rate equal to the Applicable Facility Fee Rate on the average daily
amount of such Lender's Commitment (regardless of usage) (or, from and after the
Commitment Termination Date, such Lender's average daily Outstanding Credit
Exposure) from and including the Closing Date to and including the date on which
this Agreement is terminated in full and all Obligations hereunder
20
have been paid in full pursuant to Section 2.3, payable quarterly in arrears on
each Payment Date hereafter and until all Obligations hereunder have been paid
in full.
2.6.2. Utilization Fee. If the Combined Utilized Amount exceeds
thirty-three and one-third percent (33 1/3%) of the Combined Commitment
hereunder (or, if all or any part of the Combined Commitment has been
terminated, the Combined Commitment in effect immediately prior to such
termination), the Borrowers will pay to the Administrative Agent for the ratable
benefit of the Lenders a utilization fee (the "UTILIZATION FEE") at a per annum
rate equal to the Applicable Utilization Fee Rate on the Aggregate Outstanding
Credit Exposure on such date, payable quarterly in arrears on each Payment Date
and on the date this Agreement is terminated in full and all Obligations
hereunder have been paid in full pursuant to Section 2.3.
2.6.3. Reductions in Aggregate Commitment. The Borrowers may
permanently reduce the Aggregate Commitment in whole, or in part ratably among
the Lenders in a minimum amount of $5,000,000 (and in multiples of $1,000,000 if
in excess thereof), upon at least three (3) Business Days' prior written notice
to the Administrative Agent of such reduction, which notice shall specify the
amount of any such reduction; provided, however, that the amount of the
Aggregate Commitment may not be reduced below the Aggregate Outstanding Credit
Exposure. All accrued Facility Fees shall be payable on the effective date of
any termination of all or any part of the obligations of the Lenders to make
Credit Extensions hereunder.
2.7. Minimum Amount of Each Advance. Each Eurodollar Advance shall
be in the minimum amount of $5,000,000 (and in multiples of $1,000,000 if in
excess thereof), and each Floating Rate Advance shall be in the minimum amount
of $1,000,000 (and in multiples of $250,000 if in excess thereof), provided,
however, that any Floating Rate Advance may be in the amount of the Available
Aggregate Commitment.
2.8. Optional Principal Payments. The Borrowers may from time to
time pay, without penalty or premium, all outstanding Floating Rate Advances, or
any portion of the outstanding Floating Rate Advances, in a minimum aggregate
amount of $1,000,000 or any integral multiple of $250,000 in excess thereof,
upon prior notice to the Administrative Agent at or before 12:00 noon (Chicago
time) one (1) Business Day prior to the date of such payment. The Borrowers may
from time to time pay, subject to the payment of any funding indemnification
amounts required by Section 3.4 but without penalty or premium, all outstanding
Eurodollar Advances, or, in a minimum aggregate amount of $5,000,000 or any
integral multiple of $1,000,000 in excess thereof, any portion of the
outstanding Eurodollar Advances upon five (5) Business Days' prior notice to the
Administrative Agent.
2.9. Method of Selecting Types and Interest Periods for New
Advances.
2.9.1. Method of Selecting Types and Interest Periods for New
Advances. The applicable Borrower shall select the Type of Advance and, in the
case of each Eurodollar Advance, the Interest Period applicable thereto from
time to time; provided that there shall be no more than ten (10) Interest
Periods in effect with respect to all of the Revolving Loans at any time, unless
such limit has been waived by the Administrative Agent in its sole discretion.
The applicable Borrower shall give the Administrative Agent irrevocable notice
(a "BORROWING Notice") not later than 10:00 a.m. (Chicago time) on the Borrowing
Date of each Floating Rate
21
Advance, and three (3) Business Days before the Borrowing Date for each
Eurodollar Advance, specifying:
(i) the Borrowing Date, which shall be a Business Day, of such
Advance,
(ii) the aggregate amount of such Advance,
(iii) the Type of Advance selected, and
(iv) in the case of each Eurodollar Advance, the Interest Period
applicable thereto.
2.9.2. Method of Borrowing. On each Borrowing Date, each Lender shall
make available its Revolving Loan or Revolving Loans, if any, not later than
noon, Chicago time, in Federal or other funds immediately available to the
Administrative Agent, in Chicago, Illinois at its address specified in or
pursuant to Article XIV. Unless the Administrative Agent determines that any
applicable condition specified in Article IV has not been satisfied, the
Administrative Agent will make the funds so received from the Lenders available
to the applicable Borrower at the Administrative Agent's aforesaid address by
not later than 2:30 p.m. (Chicago time). Notwithstanding the foregoing
provisions of this Section 2.9.2, to the extent that a Revolving Loan made by a
Lender matures on the Borrowing Date of a requested Revolving Loan, such Lender
shall apply the proceeds of the Revolving Loan it is then making to the
repayment of principal of the maturing Revolving Loan.
2.10. Conversion and Continuation of Outstanding Advances; No
Conversion or Continuation of Eurodollar Advances After Default. Floating Rate
Advances shall continue as Floating Rate Advances unless and until such Floating
Rate Advances are converted into Eurodollar Advances pursuant to this Section
2.10 or are repaid in accordance with Section 2.8. Each Eurodollar Advance shall
continue as a Eurodollar Advance until the end of the then applicable Interest
Period therefor, at which time such Eurodollar Advance shall be automatically
converted into a Floating Rate Advance unless (x) such Eurodollar Advance is or
was repaid in accordance with Section 2.8 or (y) the applicable Borrower shall
have given the Administrative Agent a Conversion/Continuation Notice (as defined
below) requesting that, at the end of such Interest Period, such Eurodollar
Advance continue as a Eurodollar Advance for the same or another Interest Period
or be converted into a Floating Rate Advance. Subject to the terms of Section
2.7, the Borrowers may elect from time to time to convert all or any part of an
Advance of any Type into any other Type or Types of Advances; provided that any
conversion of any Eurodollar Advance shall be made on, and only on, the last day
of the Interest Period applicable thereto. Notwithstanding anything to the
contrary contained in this Section 2.10, no Advance may be converted or
continued as a Eurodollar Advance (except with the consent of the Required
Lenders) when any Default or Unmatured Default is continuing. The applicable
Borrower shall give the Administrative Agent irrevocable notice (a
"CONVERSION/CONTINUATION NOTICE") of each conversion of an Advance or
continuation of a Eurodollar Advance not later than 10:00 a.m. (Chicago time) at
least one (1) Business Day, in the case of a conversion into a Floating Rate
Advance, or three (3) Business Days, in the case of a conversion into or
continuation of a Eurodollar Advance, prior to the date of the requested
conversion or continuation, specifying:
22
(i) the requested date, which shall be a Business Day, of such
conversion or continuation,
(ii) the aggregate amount and Type of the Advance which is to be
converted or continued, and
(iii) the amount of such Advance which is to be converted into or
continued as a Eurodollar Advance and the duration of the
Interest Period applicable thereto.
Promptly after receipt of any Conversion/Continuation Notice, the Administrative
Agent shall provide the Lenders with notice thereof.
2.11. Changes in Interest Rate, etc. Each Floating Rate Advance
shall bear interest on the outstanding principal amount thereof, for each day
from and including the date such Advance is made or is automatically converted
from a Eurodollar Advance into a Floating Rate Advance pursuant to Section 2.10,
to but excluding the date it is paid or is converted into a Eurodollar Advance
pursuant to Section 2.10 hereof, at a rate per annum equal to the Floating Rate
for such day. Changes in the rate of interest on that portion of any Advance
maintained as a Floating Rate Advance will take effect simultaneously with each
change in the Alternate Base Rate. Each Eurodollar Advance shall bear interest
on the outstanding principal amount thereof from and including the first day of
the Interest Period applicable thereto to (but not including) the last day of
such Interest Period at the interest rate determined by the Administrative Agent
as applicable to such Eurodollar Advance based upon the applicable Borrower's
selections under Sections 2.9 and 2.10 and otherwise in accordance with the
terms hereof. No Interest Period may end after the Revolving Loan Termination
Date.
2.12. Rates Applicable After Default. During the continuance of a
Default (including the Borrowers' failure to pay any Revolving Loan at maturity)
the Required Lenders may, at their option, by notice to the Borrowers (which
notice may be revoked at the option of the Required Lenders notwithstanding any
provision of Section 8.2 requiring unanimous consent of the Lenders to changes
in interest rates), declare that the Advances, all fees or any other Obligations
hereunder shall bear interest at the Floating Rate plus 2% per annum, provided
that, during the continuance of a Default under Section 7.6 or 7.7, such
interest rate set forth above shall be applicable to all Credit Extensions,
Advances, fees and other Obligations hereunder without any election or action on
the part of the Administrative Agent or any Lender.
2.13. Method of Payment. All payments of the Obligations hereunder
shall be made, without setoff, deduction, or counterclaim, in immediately
available funds to the Administrative Agent at the Administrative Agent's
address specified pursuant to Article XIV, or at any other Lending Installation
of the Administrative Agent specified in writing by the Administrative Agent to
the Company, by 12:00 noon (Chicago time) on the date when due and shall be
applied ratably by the Administrative Agent among the Lenders. Each payment
delivered to the Administrative Agent for the account of any Lender shall be
delivered promptly by the Administrative Agent to such Lender in the same type
of funds that the Administrative Agent received at such Lender's address
specified pursuant to Article XIV or at any Lending Installation specified in a
notice received by the Administrative Agent from such Lender. The Administrative
Agent is hereby authorized to charge the account of the Borrowers maintained
23
with Bank One or any of its Affiliates for each payment of principal, interest
and fees as it becomes due hereunder.
2.14. Noteless Agreement; Evidence of Indebtedness.
(i) Each Lender shall maintain in accordance with its usual
practice an account or accounts evidencing the indebtedness of the Borrowers to
such Lender resulting from each Revolving Loan made by such Lender from time to
time, including the amounts of principal and interest payable and paid to such
Lender from time to time hereunder.
(ii) The Administrative Agent shall also maintain accounts in which
it will record (a) the date and the amount of each Revolving Loan made hereunder
and Type thereof and the Interest Period, if any, applicable thereto, (b) the
amount of any principal or interest due and payable or to become due and payable
from any Borrower to each Lender hereunder, (c) the effective date and amount of
each Assignment Agreement delivered to and accepted by it and the parties
thereto pursuant to Section 13.3, (d) the amount of any sum received by the
Administrative Agent hereunder from the Borrowers and each Lender's share
thereof, and (e) all other appropriate debits and credits as provided in this
Agreement, including, without limitation, all fees, charges, expenses and
interest.
(iii) The entries maintained in the accounts maintained pursuant to
clauses (i) and (ii) above shall be prima facie evidence of the existence and
amounts of the Obligations therein recorded in the absence of manifest error;
provided, however, that the failure of the Administrative Agent or any Lender to
maintain such accounts or any error therein shall not in any manner affect the
obligation of the Borrowers to repay the Obligations in accordance with their
terms.
(iv) Any Lender may request that its Revolving Loans be evidenced
by a promissory note representing its Revolving Loans substantially in the form
of Exhibit E (each, a "NOTE"). In such event, the Borrowers shall prepare,
execute and deliver to such Lender such Note or Notes payable to the order of
such Lender. Thereafter, the Revolving Loans evidenced by each such Note and
interest thereon shall at all times (including after any assignment pursuant to
Section 13.3) be represented by one or more Notes payable to the order of the
payee named therein or any assignee pursuant to Section 13.3, except to the
extent that any such Lender or assignee subsequently returns any such Note for
cancellation and requests that such Revolving Loans once again be evidenced as
described in clauses (i) and (ii) above.
2.15. Telephonic Notices. The Borrowers hereby authorize the Lenders
and the Administrative Agent to extend, convert or continue Advances, effect
selections of Types of Advances and transfer funds based on telephonic notices
made by any person or persons the Administrative Agent or any Lender in good
faith believes to be acting on behalf of a Borrower, it being understood that
the foregoing authorization is specifically intended to allow Borrowing Notices
and Conversion/Continuation Notices to be given telephonically. The Borrowers
agree to deliver promptly to the Administrative Agent a written confirmation,
signed by an Authorized Officer, if such confirmation is requested by the
Administrative Agent or any Lender, of each telephonic notice. If the written
confirmation differs in any material respect from the action
24
taken by the Administrative Agent and the Lenders, the records of the
Administrative Agent and the Lenders shall govern absent manifest error.
2.16. Interest Payment Dates; Interest and Fee Basis. Interest
accrued on each Floating Rate Advance shall be payable in arrears on each
Payment Date, commencing with the first such date to occur after the Closing
Date, on any date on which the Floating Rate Advance is prepaid, whether due to
acceleration or otherwise, and at maturity. Interest accrued on that portion of
the outstanding principal amount of any Floating Rate Advance converted into a
Eurodollar Advance on a day other than a Payment Date shall be payable on the
date of conversion. Interest accrued on each Eurodollar Advance shall be payable
on the last day of its applicable Interest Period, on any date on which the
Eurodollar Advance is prepaid, whether by acceleration or otherwise, and at
maturity; provided, that interest accrued on each Eurodollar Advance having an
Interest Period longer than three (3) months shall also be payable on the last
day of each three-month interval during such Interest Period. Interest on
Eurodollar Advances, Facility Fees and Utilization Fees shall be calculated for
actual days elapsed on the basis of a 360-day year; interest on Floating Rate
Advances shall be calculated for actual days elapsed on the basis of a
365/366-day year. Interest shall be payable for the day an Advance is made but
not for the day of any payment on the amount paid if payment is received prior
to 12:00 noon (Chicago time) at the place of payment. If any payment of
principal of or interest on an Advance, any fees or any other amounts payable to
any Agent or any Lender hereunder shall become due on a day which is not a
Business Day, such payment shall be made on the next succeeding Business Day
and, in the case of a principal payment, such extension of time shall be
included in computing interest, fees and commissions in connection with such
payment.
2.17. Notification of Advances, Interest Rates, Prepayments and
Commitment Reductions. Promptly after receipt thereof, the Administrative Agent
will notify each Lender of the contents of each Aggregate Commitment reduction
notice, Borrowing Notice, Conversion/Continuation Notice, and repayment notice
received by it hereunder. The Administrative Agent will notify each Lender of
the interest rate applicable to each Eurodollar Advance promptly upon
determination of such interest rate and will give each Lender prompt notice of
each change in the Alternate Base Rate.
2.18. Lending Installations. Subject to the provisions of Section
3.6, each Lender may book its Revolving Loans at any Lending Installation
selected by such Lender, and may change its Lending Installation from time to
time. All terms of this Agreement shall apply to any such Lending Installation
and the Revolving Loans and any Notes issued hereunder shall be deemed held by
each Lender for the benefit of any such Lending Installation. Subject to the
provisions of Section 3.6, each Lender may, by written notice to the
Administrative Agent and the Company in accordance with Article XIV, designate
replacement or additional Lending Installations through which Revolving Loans
will be made by it and for whose account Revolving Loan payments are to be made.
2.19. Non-Receipt of Funds by the Administrative Agent. Unless a
Borrower or a Lender, as the case may be, notifies the Administrative Agent
prior to the time on which it is scheduled to make payment to the Administrative
Agent of (i) in the case of a Lender, the proceeds of a Revolving Loan or (ii)
in the case of a Borrower, a payment of principal, interest or fees to the
Administrative Agent for the account of the Lenders, that it does not intend to
make
25
such payment, the Administrative Agent may assume that such payment has been
made. The Administrative Agent may, but shall not be obligated to, make the
amount of such payment available to the intended recipient in reliance upon such
assumption. If such Lender or Borrower, as the case may be, has not in fact made
such payment to the Administrative Agent, the recipient of such payment shall,
on demand by the Administrative Agent, repay to the Administrative Agent the
amount so made available together with interest thereon in respect of each day
during the period commencing on the date such amount was so made available by
the Administrative Agent until the date the Administrative Agent recovers such
amount at a rate per annum equal to (x) in the case of payment by a Lender, the
Federal Funds Effective Rate for such day for the first three (3) days and,
thereafter, the interest rate applicable to the relevant Revolving Loan or (y)
in the case of payment by a Borrower, the interest rate applicable to the
relevant Revolving Loan, including the interest rate applicable pursuant to
Section 2.12.
2.20. Replacement of Lender. The Borrowers shall have the right, in
their sole discretion, at any time and from time to time to terminate or replace
the Commitment of any Lender (an "AFFECTED LENDER"), in whole, upon at least
thirty (30) days' prior notice to the Administrative Agent and such Lender, (a)
if such Lender has failed or refused to make available the full amount of any
Revolving Loans as required by its Commitment hereunder, (b) if such Lender has
been merged or consolidated with, or transferred all or substantially all of its
assets to, or otherwise been acquired by any other Person, or (c) if such Lender
has demanded that the Borrowers make any additional payment to any Lender
pursuant to Section 3.1, 3.2 or 3.5, or if such Lender's obligation to make or
continue, or convert Floating Rate Advances into, Eurodollar Advances has been
suspended pursuant to Section 3.3; provided, however that no such Commitment
termination shall reduce the Aggregate Commitment by more than fifteen percent
(15%) thereof; provided further, that no Default or Unmatured Default shall have
occurred and be continuing at the time of such termination or replacement, and
that, concurrently with such termination or replacement, (i) if the Affected
Lender is being replaced, another bank or other entity which is reasonably
satisfactory to the Borrowers and the Administrative Agent shall agree, as of
such date, to purchase for cash the Advances and other Obligations due to the
Affected Lender pursuant to an Assignment Agreement substantially in the form of
Exhibit C and to become a Lender for all purposes under this Agreement and to
assume all obligations of the Affected Lender to be terminated as of such date
and to comply with the requirements of Section 13.3 applicable to assignments,
(ii) the Borrowers shall pay to such Affected Lender in immediately available
funds on the day of such replacement (A) all interest, fees and other amounts
then accrued but unpaid to such Affected Lender by the Borrowers hereunder to
and including the date of termination, including without limitation payments due
to such Affected Lender under Sections 3.1, 3.2 and 3.5, to the extent
applicable, and (B) an amount, if any, equal to the payment which would have
been due to such Lender on the day of such replacement under Section 3.4 had the
Revolving Loans of such Affected Lender been prepaid on such date rather than
sold to the replacement Lender, and (iii) if the Affected Lender is being
terminated, the Borrowers shall pay to such Affected Lender all Obligations due
to such Affected Lender (including the amounts described in the immediately
preceding clauses (i) and (ii) plus the outstanding principal balance of such
Affected Lender's Credit Extensions).
26
2.21. [Reserved].
2.22. Subsidiary Borrowers. The Company may at any time or from time
to time, add as a party to this Agreement any Wholly-Owned Subsidiary to be a
Subsidiary Borrower hereunder by the execution and delivery to the
Administrative Agent and the Lenders of (a) a duly completed Assumption Letter
by such Subsidiary, with the written consent of the Borrowers at the foot
thereof, (b) such guaranty and subordinated intercompany indebtedness documents
and, if applicable, security documents as may be reasonably required by the
Administrative Agent and such other opinions, agreements, documents,
certificates or other items as may be required by Section 4.3, such documents
with respect to any additional Subsidiaries to be substantially similar in form
and substance to the Loan Documents executed on or about the date hereof by the
Subsidiaries parties hereto as of the Closing Date. No Foreign Subsidiary may be
a Subsidiary Borrower. Upon such execution, delivery and consent such Subsidiary
shall for all purposes be a party hereto as a Subsidiary Borrower as fully as if
it had executed and delivered this Agreement. So long as the principal of and
interest on any Credit Extensions made to any Subsidiary Borrower under this
Agreement shall have been repaid or paid in full and all other Obligations
(other than contingent indemnity obligations) of such Subsidiary Borrower under
this Agreement shall have been fully performed, the Company may, by not less
than five (5) Business Days' prior notice to the Administrative Agent (which
shall promptly notify the Lenders thereof), terminate such Subsidiary Borrower's
status as a "Subsidiary Borrower" or "Borrower," and such Subsidiary Borrower
shall be released from any future liability (other than contingent indemnity
obligations) as a "Subsidiary Borrower" or "Borrower" hereunder or under the
other Loan Documents. The Administrative Agent shall give the Lenders written of
the addition of any Subsidiary Borrowers to this Agreement.
2.23. Extension of Revolving Loan Termination Date. The Company, on
behalf of all of the Borrowers, may request extensions of the Revolving Loan
Termination Date by submitting a request for an extension to the Administrative
Agent (each, an "EXTENSION REQUEST") no more than sixty (60) and no less than
forty-five (45) days prior to the then effective Revolving Loan Termination
Date, which Extension Request shall specify (i) the new Revolving Loan
Termination Date requested by the Borrowers, which new Revolving Loan
Termination Date shall be a date not later than 364 days after the then current
Revolving Loan Termination Date and (ii) the date (which must be not more than
thirty (30) days nor less than fifteen (15) days prior to the then effective
Revolving Loan Termination Date) as of which the Lenders must respond to the
Extension Request (the "RESPONSE DATE"). Promptly upon receipt of an Extension
Request, the Administrative Agent shall notify each Lender thereof and shall
request each Lender to approve the Extension Request. Each Lender approving the
Extension Request shall deliver its written consent no later than the Response
Date (and the failure to provide such written consent by such date shall be
deemed to be a decision not to extend). The Commitment of each Lender that
declines to extend with respect to the Aggregate Commitment may, at the option
of the Company, be replaced in accordance with Section 13.3 (but only to the
extent a replacement Lender is then available) or the Aggregate Commitment
reduced. All Obligations due to each Lender that declines to extend its
Commitment under this Section 2.23 shall be paid in full by the Borrowers to the
Administrative Agent for the account of each such Lender on the then effective
Revolving Loan Termination Date (without giving effect to any such requested
extension thereto). The Required Lenders and the Borrowers must agree to any
extension with respect to the Revolving Loan Termination Date for any such
extension to become effective, and
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the Administrative Agent shall promptly notify the Borrowers and each Lender of
any new Revolving Loan Termination Date.
2.24. Increase of Commitments.
(i) At any time prior to the Commitment Termination Date, the
Company may request that the Aggregate Commitment be increased; provided that,
without the prior written consent of all of the Lenders, (a) the Aggregate
Commitment shall at no time exceed $152,500,000 minus the aggregate amount of
all reductions in the Aggregate Commitment previously made pursuant to Section
2.6.3; (b) the Combined Commitment shall at no time exceed $255,000,000; and (c)
each such request shall be in a minimum amount of at least $25,000,000 and
increments of $5,000,000 in excess thereof. Such request shall be made in a
written notice given to the Administrative Agent and the Lenders by the Company
not less than twenty (20) Business Days prior to the proposed effective date of
such increase, which notice (a "COMMITMENT INCREASE NOTICE") shall specify the
amount of the proposed increase in the Aggregate Commitment and the proposed
effective date of such increase. In the event of such a Commitment Increase
Notice, each of the Lenders shall be given the opportunity to participate in the
requested increase ratably in proportions that their respective Commitments bear
to the Aggregate Commitment. No Lender shall have any obligation to increase its
Commitment pursuant to a Commitment Increase Notice. On or prior to the date
that is fifteen (15) Business Days after receipt of the Commitment Increase
Notice, each Lender shall submit to the Administrative Agent a notice indicating
the maximum amount by which it is willing to increase its Commitment in
connection with such Commitment Increase Notice (any such notice to the
Administrative Agent being herein a "LENDER INCREASE NOTICE"). Any Lender which
does not submit a Lender Increase Notice to the Administrative Agent prior to
the expiration of such fifteen (15) Business Day period shall be deemed to have
denied any increase in its Commitment. In the event that the increases of
Commitments set forth in the Lender Increase Notices exceed the amount requested
by the Company in the Commitment Increase Notice, the Administrative Agent and
the Arranger shall have the right, in consultation with the Company, to allocate
the amount of increases necessary to meet the Company's Commitment Increase
Notice. In the event that the Lender Increase Notices are less than the amount
requested by the Company, not later than three (3) Business Days prior to the
proposed effective date the Company may notify the Administrative Agent of any
financial institution that shall have agreed to become a "Lender" party hereto
(a "PROPOSED NEW LENDER") in connection with the Commitment Increase Notice. Any
Proposed New Lender shall be consented to by the Administrative Agent (which
consent shall not be unreasonably withheld). If the Company shall not have
arranged any Proposed New Lender(s) to commit to the shortfall from the Lender
Increase Notices, then the Company shall be deemed to have reduced the amount of
its Commitment Increase Notice to the aggregate amount set forth in the Lender
Increase Notices. Based upon the Lender Increase Notices, any allocations made
in connection therewith and any notice regarding any Proposed New Lender, if
applicable, the Administrative Agent shall notify the Company and the Lenders on
or before the Business Day immediately prior to the proposed effective date of
the amount of each Lender's and Proposed New Lenders' Commitment (the "EFFECTIVE
COMMITMENT AMOUNT") and the amount of the Aggregate Commitment, which amounts
shall be effective on the following Business Day. Any increase in the Aggregate
Commitment shall be subject to the following conditions precedent: (A) the
Company shall have obtained the consent thereto of each Guarantor and its
reaffirmation of the Loan Document(s)
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executed by it, which consent and reaffirmation shall be in writing and in form
and substance reasonably satisfactory to the Administrative Agent, (B) as of the
date of the Commitment Increase Notice and as of the proposed effective date of
the increase in the Aggregate Commitment all representations and warranties
shall be true and correct in all material respects as though made on such date
and no event shall have occurred and then be continuing which constitutes a
Default or Unmatured Default, (C) the Borrowers, the Administrative Agent and
each Proposed New Lender or Lender that shall have agreed to provide a
"Commitment" in support of such increase in the Aggregate Commitment shall have
executed and delivered a "Commitment and Acceptance" substantially in the form
of Exhibit J hereto, (D) counsel for the Borrowers and for the Guarantors shall
have provided to the Administrative Agent supplemental opinions in form and
substance reasonably satisfactory to the Administrative Agent and (E) the
Borrowers and the Proposed New Lender shall otherwise have executed and
delivered such other instruments and documents as may be required under Article
IV or that the Administrative Agent shall have reasonably requested in
connection with such increase. If any fee shall be charged by the Lenders in
connection with any such increase, such fee shall be in accordance with then
prevailing market conditions, which market conditions shall have been reasonably
documented by the Administrative Agent to the Company. Upon satisfaction of the
conditions precedent to any increase in the Aggregate Commitment, the
Administrative Agent shall promptly advise the Company and each Lender of the
effective date of such increase. Upon the effective date of any increase in the
Aggregate Commitment that is supported by a Proposed New Lender, such Proposed
New Lender shall be a party to this Agreement as a Lender and shall have the
rights and obligations of a Lender hereunder and thereunder. Nothing contained
herein shall constitute, or otherwise be deemed to be, a commitment on the part
of any Lender to increase its Commitment hereunder at any time.
(ii) For purposes of this clause (ii), (A) the term "Buying
Lender(s)" shall mean (1) each Lender the Effective Commitment Amount of which
is greater than its Commitment prior to the effective date of any increase in
the Aggregate Commitment, and (2) each Proposed New Lender that is allocated an
Effective Commitment Amount in connection with any Commitment Increase Notice
and (b) the term "Selling Lender(s)" shall mean each Lender whose Commitment is
not being increased from that in effect prior to such increase in the Aggregate
Commitment. Effective on the effective date of any increase in the Aggregate
Commitment pursuant to clause (i) above, each Selling Lender hereby sells,
grants, assigns and conveys to each Buying Lender, without recourse, warranty,
or representation of any kind, except as specifically provided herein, an
undivided percentage in such Selling Lender's right, title and interest in and
to its outstanding Revolving Loans in the respective dollar amounts and
percentages necessary so that, from and after such sale, each such Selling
Lender's outstanding Revolving Loans shall equal such Selling Lender's Pro Rata
Share (calculated based upon the Effective Commitment Amounts) of the
outstanding Revolving Loans. Effective on the effective date of the increase in
the Aggregate Commitment pursuant to clause (i) above, each Buying Lender hereby
purchases and accepts such grant, assignment and conveyance from the Selling
Lenders. Each Buying Lender hereby agrees that its respective purchase price for
the portion of the outstanding Revolving Loans purchased hereby shall equal the
respective dollar amount necessary so that, from and after such payments, each
Buying Lender's outstanding Revolving Loans shall equal such Buying Lender's Pro
Rata Share (calculated based upon the Effective Commitment Amounts) of the
outstanding Revolving Loans. Such amount shall be payable on the effective date
of the increase in the Aggregate Commitment by wire transfer of immediately
29
available funds to the Administrative Agent. The Administrative Agent, in turn,
shall wire transfer any such funds received to the Selling Lenders, in same day
funds, for the sole account of the Selling Lenders. Each Selling Lender hereby
represents and warrants to each Buying Lender that such Selling Lender owns the
Revolving Loans being sold and assigned hereby for its own account and has not
sold, transferred or encumbered any or all of its interest in such Revolving
Loans, except for participations which will be extinguished upon payment to
Selling Lender of an amount equal to the portion of the outstanding Revolving
Loans being sold by such Selling Lender. Each Buying Lender hereby acknowledges
and agrees that, except for each Selling Lender's representations and warranties
contained in the foregoing sentence, each such Buying Lender has entered into
its Commitment and Acceptance with respect to such increase on the basis of its
own independent investigation and has not relied upon, and will not rely upon,
any explicit or implicit written or oral representation, warranty or other
statement of the Lenders or the Administrative Agent concerning the
authorization, execution, legality, validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or the other Revolving Loan
Documents. The Borrowers hereby agree to compensate each Selling Lender for all
losses, expenses and liabilities incurred by each Lender in connection with the
sale and assignment of any Revolving Loan hereunder on the terms and in the
manner as set forth in Section 3.4.
2.25. Interest. In no event shall the amount of interest, and all
charges, amounts or fees contracted for, charged or collected pursuant to this
Agreement, the Notes or the other Loan Documents and deemed to be interest under
applicable law (collectively, "INTEREST") exceed the highest rate of interest
allowed by applicable law (the "MAXIMUM RATE"), and in the event any such
payment is inadvertently received by the Administrative Agent or any Lender then
the excess sum (the "EXCESS") shall be credited as a payment of principal,
unless the relevant Borrower shall notify the Administrative Agent in writing
that it elects to have the Excess returned forthwith. It is the express intent
hereof that no Borrower pay, and the Administrative Agent and the Lenders not
receive, directly or indirectly in any manner whatsoever, interest in excess of
that which may legally be paid by such Borrower under applicable law. The right
to accelerate maturity of any of the Obligations does not include the right to
accelerate any interest that has not otherwise accrued on the date of such
acceleration, and the Administrative Agent and the Lenders do not intend to
collect any unearned interest in the event of any such acceleration. All monies
paid to the Administrative Agent or the Lenders hereunder or under any of the
Notes or the other Loan Documents, whether at maturity or by prepayment, shall
be subject to rebate of unearned interest as and to the extent required by
applicable law. By the execution of this Agreement, each Borrower covenants, to
the fullest extent permitted by law that (i) the credit or return of any Excess
shall constitute the acceptance by such Borrower of such Excess, and (ii) such
Borrower shall not seek or pursue any other remedy, legal or equitable, against
the Administrative Agent or any Lender, based in whole or in part upon
contracting for charging or receiving any Interest in excess of the Maximum
Rate. For the purpose of determining whether or not any Excess has been
contracted for, charged or received by the Administrative Agent or any Lender,
all interest at any time contracted for, charged or received from such Borrower
in connection with this Agreement, the Notes or any of the other Loan Documents
shall, to the extent permitted by applicable law, be amortized, prorated,
allocated and spread in equal parts throughout the full term of the Commitments.
Each Borrower, the Administrative Agent and each Lender shall, to the maximum
extent permitted under applicable law, (i) characterize any non-principal
payment as an expense, fee or premium rather than as
30
Interest and (ii) exclude voluntary prepayments and the effects thereof. The
provisions of this Section shall be deemed to be incorporated into each Note and
each of the other Loan Documents (whether or not any provision of this Section
is referred to therein). All such Loan Documents and communications relating to
any Interest owed by any Borrower and all figures set forth therein shall, for
the sole purpose of computing the extent of obligations hereunder and under the
Notes and the other Loan Documents be automatically recomputed by such Borrower,
and by any court considering the same, to give effect to the adjustments or
credits required by this Section.
ARTICLE III
YIELD PROTECTION; TAXES
3.1. Yield Protection. If, on or after the Closing Date, the
adoption of any law or any governmental or quasi-governmental rule, regulation,
policy, guideline or directive (whether or not having the force of law), or any
change in any such law, rule, regulation, policy, guideline or directive or in
the interpretation or administration thereof by any governmental or
quasi-governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender or
applicable Lending Installation with any request or directive (whether or not
having the force of law) of any such authority, central bank or comparable
agency:
(i) subjects any Lender or any applicable Lending Installation to
any Taxes, or changes the basis of taxation of payments (other
than with respect to Excluded Taxes) to any Lender in respect
of its Eurodollar Loans, or
(ii) imposes or increases or deems applicable any reserve,
assessment, insurance charge, special deposit or similar
requirement against assets of, deposits with or for the
account of, or credit extended by, any Lender or any
applicable Lending Installation (other than reserves and
assessments taken into account in determining the interest
rate applicable to Eurodollar Advances), or
(iii) imposes any other condition the result of which is to increase
the cost to any Lender or any applicable Lending Installation
of making, funding or maintaining its Eurodollar Loans or
Commitment, or reduces any amount receivable by any Lender or
any applicable Lending Installation in connection with its
Eurodollar Loans or Commitment, or requires any Lender or any
applicable Lending Installation to make any payment calculated
by reference to the amount of Eurodollar Loans or Commitment
held or interest received by it, by an amount deemed material
by such Lender as the case may be,
and the result of any of the foregoing is to increase the cost to such Lender or
applicable Lending Installation, as the case may be, of making or maintaining
its Eurodollar Loans or Commitment or to reduce the return received by such
Lender or applicable Lending Installation, as the case may be, in connection
with such Eurodollar Loans or Commitment, then, within fifteen (15) days of
demand by such Lender, the Borrowers shall pay such Lender such additional
amount or amounts as will compensate such Lender for such increased cost or
reduction in amount
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received; provided, that the Borrowers shall not be required to compensate a
Lender under this Section for any increased costs or reductions incurred more
than 90 days prior to the date that such Lender notifies the Company in writing
of such increased costs or reductions and of such Lender's intention to claim
compensation therefor; provided, further, that if such adoption or such change
giving rise to such increased costs or reduction is retroactive such 90-day
period shall be extended to include the period of retroactive effect.
3.2. Changes in Capital Adequacy Regulations. If a Lender
determines the amount of capital required or expected to be maintained by such
Lender, any Lending Installation of such Lender, or any corporation controlling
such Lender, is increased as a result of a Change, then, within fifteen (15)
days of demand by such Lender, the Borrowers shall pay such Lender the amount
necessary to compensate for any shortfall in the rate of return on the portion
of such increased capital which such Lender determines is attributable to this
Agreement, its Outstanding Credit Exposure or its Commitment to make Revolving
Loans hereunder (after taking into account such Lender's policies as to capital
adequacy); provided, that the Borrowers shall not be required to pay to such
Lender such additional amounts under this Section for any amount incurred as a
result of such Change more than 90 days prior to the date that such Lender
notifies the Company in writing of such Change and of such Lender's intention to
claim compensation therefor; provided, further, that if such Change giving rise
to such amounts is retroactive such 90-day period shall be extended to include
the period of retroactive effect. "CHANGE" means (i) any change after the
Closing Date in the Risk-Based Capital Guidelines or (ii) any adoption of,
change in, or change in the interpretation or administration of any other law,
governmental or quasi-governmental rule, regulation, policy, guideline,
interpretation, or directive (whether or not having the force of law) after the
Closing Date which affects the amount of capital required or expected to be
maintained by any Lender or any Lending Installation or any corporation
controlling any Lender. "RISK-BASED CAPITAL GUIDELINES" means (i) the risk-based
capital guidelines in effect in the United States on the Closing Date, including
transition rules, and (ii) the corresponding capital regulations promulgated by
regulatory authorities outside the United States implementing the July 1988
report of the Basle Committee on Banking Regulation and Supervisory Practices
Entitled "International Convergence of Capital Measurements and Capital
Standards," including transition rules, and any amendments to such regulations
adopted prior to the Closing Date.
3.3. Availability of Types of Advances. If (x) any Lender
determines that maintenance of its Eurodollar Loans at a suitable Lending
Installation would violate any applicable law, rule, regulation or directive,
whether or not having the force of law, or (y) the Required Lenders determine
that (i) deposits of a type and maturity appropriate to match fund Eurodollar
Advances are not available or (ii) the interest rate applicable to Eurodollar
Advances does not accurately reflect the cost of making or maintaining
Eurodollar Advances, or (iii) no reasonable basis exists for determining the
Eurodollar Base Rate, then the Administrative Agent shall suspend the
availability of Eurodollar Advances and require any affected Eurodollar Advances
to be immediately repaid or converted to Floating Rate Advances, subject to the
payment of any funding indemnification amounts required by Section 3.4.
3.4. Funding Indemnification. If any payment of a Eurodollar
Advance occurs on a date which is not the last day of the applicable Interest
Period, whether because of acceleration, prepayment or otherwise, or a
Eurodollar Advance is not made or continued, or a Floating Rate
32
Advance is not converted into a Eurodollar Advance, on the date specified by any
Borrower for any reason other than default by the Lenders, or a Eurodollar
Advance is not prepaid on the date specified by the applicable Borrower for any
reason, the Borrowers will indemnify each Lender for any loss or cost incurred
by it resulting therefrom, including, without limitation, any loss or cost in
liquidating or employing deposits acquired to fund or maintain such Eurodollar
Advance.
3.5. Taxes.
(i) All payments by the Borrowers to or for the account of any
Lender or Agent hereunder or under any Note shall be made free and clear of and
without deduction for any and all Taxes. If any Borrower shall be required by
law to deduct any Taxes from or in respect of any sum payable hereunder to any
Lender or Agent, (a) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to
additional sums payable under this Section 3.5) such Lender or Agent (as the
case may be) receives an amount equal to the sum it would have received had no
such deductions been made, (b) such Borrower shall make such deductions, (c)
such Borrower shall pay the full amount deducted to the relevant authority in
accordance with applicable law and (d) such Borrower shall furnish to the
Administrative Agent the original copy of a receipt evidencing payment thereof
within thirty (30) days after such payment is made.
(ii) In addition, the Borrowers hereby agree to pay any present or
future stamp or documentary taxes and any other excise or property taxes,
charges or similar levies which arise from any payment made hereunder or under
any Note or from the execution or delivery of, or otherwise with respect to,
this Agreement or any Note ("OTHER TAXES").
(iii) The Borrowers hereby agree to indemnify the Agents and each
Lender for the full amount of Taxes or Other Taxes (including, without
limitation, any Taxes or Other Taxes imposed on amounts payable under this
Section 3.5) paid by the Agents or such Lender and any liability (including
penalties, interest and expenses) arising therefrom or with respect thereto.
Payments due under this indemnification shall be made within thirty (30) days of
the date the Agents or such Lender makes demand therefor pursuant to Section
3.6.
(iv) Each Lender that is not incorporated under the laws of the
United States of America or a state thereof (each a "NON-U.S. LENDER") agrees
that it will, not more than ten (10) Business Days after the date on which it
becomes a party to this Agreement, (i) deliver to each of the Company and the
Administrative Agent two (2) duly completed copies of United States Internal
Revenue Service Form W-8BEN or W-8ECI, certifying in either case that such
Lender is entitled to receive payments under this Agreement without deduction or
withholding of any United States federal income taxes, and (ii) deliver to each
of the Company and the Administrative Agent a United States Internal Revenue
Form W-8 or W-9, as the case may be, and certify that it is entitled to an
exemption from United States backup withholding tax. Each Non-U.S. Lender
further undertakes to deliver to each of the Company and the Administrative
Agent (x) renewals or additional copies of such form (or any successor form) on
or before the date that such form expires or becomes obsolete, and (y) after the
occurrence of any event requiring a change in the most recent forms so delivered
by it, such additional forms or amendments thereto as may be reasonably
requested by the Company or the Administrative Agent. All forms or amendments
described in the preceding sentence shall certify that such
33
Lender is entitled to receive payments under this Agreement without deduction or
withholding of any United States federal income taxes, unless an event
(including without limitation any change in treaty, law or regulation) has
occurred prior to the date on which any such delivery would otherwise be
required which renders all such forms inapplicable or which would prevent such
Lender from duly completing and delivering any such form or amendment with
respect to it and such Lender advises the Company and the Administrative Agent
in writing that it is not capable of receiving payments without any deduction or
withholding of United States federal income tax.
(v) For any period during which a Non-U.S. Lender has failed to
provide the Company with an appropriate form pursuant to clause (iv), above
(unless such failure is due to a change in treaty, law or regulation, or any
change in the interpretation or administration thereof by any governmental
authority, occurring subsequent to the date on which a form originally was
required to be provided), such Non-U.S. Lender shall not be entitled to
indemnification under this Section 3.5 with respect to Taxes imposed by the
United States, and each Borrower, if required by law to do so, shall be
permitted to withhold such Taxes and pay the same to the appropriate United
States taxing authority; provided that, should a Non-U.S. Lender which is
otherwise exempt from or subject to a reduced rate of withholding tax become
subject to Taxes because of its failure to deliver a form required under clause
(iv), above, the Borrowers shall take such steps as such Non-U.S. Lender shall
reasonably request to assist such Non-U.S. Lender to recover such Taxes.
(vi) Any Lender that is entitled to an exemption from or reduction
of withholding tax with respect to payments under this Agreement or any Note
pursuant to the law of any relevant jurisdiction or any treaty shall deliver to
the Company (with a copy to the Administrative Agent), at the time or times
prescribed by applicable law, such properly completed and executed documentation
prescribed by applicable law as will permit such payments to be made without
withholding or at a reduced rate.
(vii) If the IRS or any other governmental authority of the United
States or any other country or any political subdivision thereof asserts a claim
that the Administrative Agent did not properly withhold tax from amounts paid to
or for the account of any Lender (because the appropriate form was not delivered
or properly completed, because such Lender failed to notify the Administrative
Agent of a change in circumstances which rendered its exemption from withholding
ineffective, or for any other reason), such Lender shall indemnify the
Administrative Agent fully for all amounts paid, directly or indirectly, by the
Administrative Agent as tax, withholding therefor, or otherwise, including
penalties and interest, and including taxes imposed by any jurisdiction on
amounts payable to the Administrative Agent under this subsection, together with
all costs and expenses related thereto (including attorneys' fees and time
charges of attorneys for the Administrative Agent, which attorneys may be
employees of the Administrative Agent). The obligations of the Lenders under
this Section 3.5(vii) shall survive the payment of the Obligations and
termination of this Agreement.
(viii) Within 60 days after receipt of the written request of the
Company, each Lender and Agent shall execute and deliver such certificates,
forms or other documents, which in each such case can be reasonably furnished by
such Lender or Agent consistent with the facts and which are reasonably
necessary to assist any Borrower in applying for refunds of Taxes remitted by
such Borrower hereunder.
34
(ix) Each Lender and Agent shall also use commercially reasonable
efforts to avoid and minimize any amounts which might otherwise be payable by
any Borrower pursuant to this Section 3.5, except to the extent that such Lender
or Agent, determines that such efforts would be disadvantageous to such Lender
or Agent, as determined by such Lender or Agent and which determination, if made
in good faith, shall be binding and conclusive on all parties hereto.
(x) To the extent that the payment of any Lender's or Agent's
Taxes by any Borrower hereunder gives rise from time to time to a Tax Benefit to
such Lender or Agent in any jurisdiction other than the jurisdiction which
imposed such Taxes, such Lender or Agent shall pay to such Borrower the amount
of each such Tax Benefit so recognized or received. The amount of each Tax
Benefit and, therefore, payment to such Borrower will be determined from time to
time by the relevant Lender or Agent in its sole discretion, which determination
shall be binding and conclusive on all parties hereto. Each such payment will be
due and payable by such Lender or Agent to such Borrower within a reasonable
time after the filing of the tax return in which such Tax Benefit is recognized
or, in the case of any tax refund, after the refund is received; provided,
however, if at any time thereafter such Lender or Agent, is required to rescind
such Tax Benefit or such Tax Benefit is otherwise disallowed or nullified, the
relevant Borrower shall promptly, after notice thereof from such Lender or
Agent, repay to such Lender or Agent the amount of such Tax Benefit previously
paid to such Lender or Agent and which has been rescinded, disallowed or
nullified. For purposes hereof, the term "TAX BENEFIT" shall mean the amount by
which any Lender's or Agent's income tax liability for the taxable period in
question is reduced below what would have been payable had the relevant Borrower
not been required to pay such Lender's or Agent's Taxes hereunder.
3.6. Lender Statements; Survival of Indemnity. To the extent
reasonably possible, each Lender shall designate an alternate Lending
Installation with respect to its Eurodollar Loans to reduce any liability of the
Borrowers to such Lender under Sections 3.1, 3.2 and 3.5 or to avoid the
unavailability of Eurodollar Advances under Section 3.3, so long as such
designation is not, in the judgment of such Lender, disadvantageous to such
Lender. Each Lender shall deliver a written statement of such Lender to the
Company (with a copy to the Administrative Agent) as to the amount due, if any,
under Section 3.1, 3.2, 3.4 or 3.5. Such written statement shall set forth in
reasonable detail the calculations upon which such Lender determined such amount
and shall be final, conclusive and binding on the Borrowers in the absence of
manifest error. Determination of amounts payable under such Sections in
connection with a Eurodollar Loan shall be calculated as though each Lender
funded its Eurodollar Loan through the purchase of a deposit of the type,
currency and maturity corresponding to the deposit used as a reference in
determining the Eurodollar Rate applicable to such Revolving Loan, whether in
fact that is the case or not. Unless otherwise provided herein, the amount
specified in the written statement of any Lender shall be payable on demand
after receipt by the Company of such written statement. The obligations of the
Borrowers under Sections 3.1, 3.2, 3.4 and 3.5 shall survive payment of the
Obligations and termination of this Agreement.
3.7. Mitigation of Obligations. If any Lender requests compensation
under Section 3.2 or if any Borrower is required to pay any additional amount to
any Lender or any governmental authority for the account of any Lender pursuant
to Section 3.1, then such Lender shall use commercially reasonable efforts to
designate a different Lending Installation for funding or booking its Revolving
Loans hereunder or to assign its rights and obligations
35
hereunder to another of its offices, branches or affiliates, if, in the sole
discretion of such Lender, such designation or assignment (i) would eliminate or
reduce amounts payable under Section 3.1 or Section 3.2, as the case may be, in
the future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender. The Borrowers
hereby agree to pay all costs and expenses incurred by any Lender in connection
with such designation or assignment.
ARTICLE IV
CONDITIONS PRECEDENT
4.1. Initial Credit Extension. The Lenders shall not be required to
make the initial Credit Extension hereunder unless (a) the representations and
warranties contained in Article V are true and correct in all material respects
as of such date and (b) the Company has furnished to the Agents with sufficient
copies for the Lenders:
(i) Copies of the articles or certificates of incorporation (or
similar Constitutive Documents) of the Company and each
Guarantor (each a "LOAN PARTY"), together with all amendments
thereto, and a certificate of good standing, each certified by
the appropriate governmental officer in its jurisdiction of
incorporation.
(ii) Copies, certified by the Secretary or Assistant Secretary of
each Loan Party of its by-laws (or similar Constitutive
Documents) and of its Board of Directors' resolutions and of
resolutions or actions of any other body authorizing the
execution of the Loan Documents to which it is a party.
(iii) An incumbency certificate, executed by the Secretary or
Assistant Secretary of each Loan Party, which shall identify
by name and title and bear the signatures of the Authorized
Officers and any other officers of such Loan Party authorized
to sign the Loan Documents to which it is a party and, in the
case of the Borrowers, to request Revolving Loans hereunder,
upon which certificate the Agents and the Lenders shall be
entitled to rely until informed of any change in writing by
the applicable Loan Party.
(iv) An opening compliance certificate in substantially the form of
Exhibit B, signed by the chief financial officer or treasurer
of the Company, showing the calculations necessary to
determine compliance with this Agreement on the initial Credit
Extension Date and stating that on the initial Credit
Extension Date (a) no Default or Unmatured Default has
occurred and is continuing, (b) all of the representations and
warranties in Article V shall be true and correct in all
material respects as of such date and (c) no material adverse
change in the business, financial condition or operations of
the Company or any of its Subsidiaries has occurred since
November 30, 2001.
(v) A certificate in form and substance satisfactory to the
Administrative Agent stating that there exists no injunction
or temporary restraining order which would
36
prohibit the making of the initial Credit Extensions or any
litigation seeking such an injunction or restraining order.
(vi) A certificate of value, solvency and other appropriate factual
information in form and substance reasonably satisfactory to
the Administrative Agent and Arranger from the chief financial
officer of the Company (on behalf of the Company and the
Borrowers) in his or her representative capacity supporting
the conclusions that as of the initial funding date the
Company and its Subsidiaries on a consolidated basis are
Solvent and will be Solvent subsequent to incurring the
Indebtedness contemplated under the Transaction Documents,
will be able to pay its debts and liabilities as they become
due and will not be left with unreasonably small working
capital for general corporate purposes.
(vii) Written opinions of Xxxxxx X. Xxxxxx, General Counsel of the
Borrowers and each Guarantor, and Xxxxxxxxxx Xxxxxxxx LLP,
special counsel to the Borrowers and each Guarantor, in form
and substance satisfactory to the Agents and addressed to the
Lenders in substantially the form of Exhibit A-1 and Exhibit
A-2 respectively.
(viii) Any Notes requested by a Lender pursuant to Section 2.14
payable to the order of each such requesting Lender.
(ix) Written money transfer instructions, in substantially the form
of Exhibit D, addressed to the Administrative Agent and signed
by an Authorized Officer, together with such other related
money transfer authorizations as the Administrative Agent may
have reasonably requested.
(x) Evidence satisfactory to the Agents that the Existing Credit
Agreement shall have been or shall simultaneously on the
Closing Date be terminated (except for those provisions that
expressly survive the termination thereof) and all loans
outstanding and other amounts owed to the lenders or agents
thereunder shall have been, or shall simultaneously with the
initial Advance hereunder or the initial "Advance" under (and
as defined in) the 3-Year Credit Agreement be, paid in full.
(xi) Evidence satisfactory to the Agents that the 3-Year Credit
Agreement shall have been duly executed by all parties
thereto.
(xii) Such other documents as any Lender or its counsel may have
reasonably requested including, without limitation, each
document identified on the List of Closing Documents attached
hereto as Exhibit F.
4.2. Each Credit Extension. The Lenders shall not be required to
make any Credit Extension unless on the applicable Credit Extension Date:
(i) There exists no Default or Unmatured Default.
37
(ii) The representations and warranties contained in Article V are
true and correct in all material respects as of such Credit
Extension Date except to the extent any such representation or
warranty is stated to relate solely to an earlier date, in
which case such representation or warranty shall have been
true and correct in all material respects on and as of such
earlier date.
Each Borrowing Notice with respect to each such Credit Extension shall
constitute a representation and warranty by the Borrowers that the conditions
contained in Section 4.2(i) and (ii) have been satisfied. Any lender may require
a duly completed compliance certificate in substantially the form of Exhibit B
as a condition to making a Credit Extension.
4.3. Initial Advance to Each New Subsidiary Borrower. The Lenders
shall not be required to make a Credit Extension hereunder to a new Subsidiary
Borrower added after the Closing Date unless the Company has furnished or caused
to be furnished to the Administrative Agent with sufficient copies for the
Lenders:
(i) The Assumption Letter executed and delivered by such
Subsidiary Borrower and containing the written consent of the
Borrowers, as contemplated by Section 2.22;
(ii) Copies, certified by the Secretary, Assistant Secretary,
Director or Authorized Officer of the Subsidiary Borrower, of
its Board of Directors' resolutions (and/or resolutions of
other bodies, if any are deemed necessary by the
Administrative Agent) approving the Assumption Letter;
(iii) An incumbency certificate, executed by the Secretary,
Assistant Secretary, Director or Authorized Officer of the
Subsidiary Borrower, which shall identify by name and title
and bear the signature of the officers of such Subsidiary
Borrower authorized to sign the Assumption Letter and the
other documents to be executed and delivered by such
Subsidiary Borrower hereunder, upon which certificate the
Administrative Agent and the Lenders shall be entitled to rely
until informed of any change in writing by the Company;
(iv) An opinion of counsel to such Subsidiary Borrower,
substantially in the form of Exhibit E hereto;
(v) Guaranty documentation from such Subsidiary Borrower in form
and substance acceptable to the Administrative Agent as
required pursuant to Section 6.10;
ARTICLE V
REPRESENTATIONS AND WARRANTIES
The Company represents and warrants as follows to each Lender and the
Agents as of each of (i) the Closing Date, giving effect to the consummation of
the transactions contemplated by the Transaction Documents on the Closing Date,
(ii) the date of the initial Credit Extension hereunder (if different from the
Closing Date) and (iii) each date as required by Section 4.2:
38
5.1. Existence and Standing. The Company and each of its
Subsidiaries is a corporation, partnership or limited liability company duly and
properly incorporated or organized, as the case may be, validly existing and (to
the extent such concept applies to such entity) in good standing under the laws
of its jurisdiction of incorporation or organization and has all requisite
authority to conduct its business in each jurisdiction in which its business is
conducted, except to the extent that the failure to have such standing or
authority could not reasonably be expected to have a Material Adverse Effect.
5.2. Authorization and Validity. The Company and each of its
Subsidiaries (to the extent applicable) has the power and authority and legal
right to execute and deliver the Transaction Documents to which it is a party
and to perform its obligations thereunder, and to file the Transaction Documents
which have been filed by it as required by this Agreement. The execution and
delivery by the Company and any such Subsidiary of the Transaction Documents to
which it is a party and the performance of its obligations thereunder have been
duly authorized by proper proceedings, and the Transaction Documents to which
such entity is a party constitute legal, valid and binding obligations of such
entity enforceable against such entity in accordance with their terms, except as
enforceability may be limited by bankruptcy, insolvency or similar laws
affecting the enforcement of creditors' rights generally or by general equitable
principles.
5.3. No Conflict; Government Consent. Neither the execution and
delivery by the Company or any of its Subsidiaries of the Transaction Documents,
nor compliance with the provisions thereof will violate (i) any law, rule,
regulation, order, writ, judgment, injunction, decree or award binding on the
Company or any of its Subsidiaries or (ii) the Company's or any Subsidiary's
articles or certificate of incorporation, partnership agreement, certificate of
partnership, articles or certificate of organization, by-laws, or operating
agreement or other management agreement, as the case may be, or (iii) the
provisions of any indenture, instrument or agreement to which the Company or any
of its Subsidiaries is a party or is subject, or by which it, or its Property,
is bound, or conflict with, or constitute a default under, or result in, or
require, the creation or imposition of any Lien in, of or on the Property of the
Company or a Subsidiary pursuant to the terms of, any such indenture, instrument
or agreement. No order, consent, adjudication, approval, license, authorization,
or validation of, or filing, recording or registration with, or exemption by, or
other action in respect of any governmental or public body or authority, or any
subdivision thereof, which has not been obtained by the Company or any of its
Subsidiaries, is required to be obtained by the Company or any of its
Subsidiaries in connection with the execution and delivery of the Transaction
Documents, the borrowings under this Agreement, the payment and performance by
any Borrower of the Obligations or the legality, validity, binding effect or
enforceability of any of the Transaction Documents.
5.4. Financial Statements. The November 30, 2001 unaudited combined
financial statements of the Company and its Subsidiaries heretofore delivered to
the Arranger and the Lenders were prepared in accordance with generally accepted
accounting principles in effect on the date such statements were prepared
(except for the absence of footnotes and subject to year-end audit adjustments)
and fairly present in all material respects, the combined financial condition
and operations of the Company and its Subsidiaries at such date and the combined
results of their operations and cash flows for the three-month period then
ended.
39
5.5. Material Adverse Change. Since November 30, 2001, and except
as disclosed on Schedule 5.5, there has been no change in the business,
property, financial condition or operations of the Company and its Subsidiaries
taken as a whole, which could reasonably be expected to have a Material Adverse
Effect.
5.6. Taxes. The Company and its Subsidiaries have filed all United
States federal tax returns and all other tax returns which are required to be
filed and have paid all taxes due pursuant to said returns or pursuant to any
assessment received by the Company or any of its Subsidiaries, except (i) such
taxes, if any, as are being contested in good faith and as to which adequate
reserves have been provided in accordance with Agreement Accounting Principles
or (ii) where the failure to file such return or pay such taxes could not
reasonably be expected to have a Material Adverse Effect. No tax liens have been
filed and no claims are being asserted with respect to any such taxes. The
charges, accruals and reserves on the books of the Company and its Subsidiaries
in respect of any taxes or other governmental charges are adequate.
5.7. Litigation and Contingent Obligations. There is no litigation,
arbitration, governmental investigation, proceeding or inquiry pending or, to
the knowledge of any of their officers, threatened against or affecting the
Company or any of its Subsidiaries which could reasonably be expected to have a
Material Adverse Effect or which seeks to prevent, enjoin or delay the making of
any Credit Extensions or otherwise question the validity of any Transaction
Document. Other than any liability which could not reasonably be expected to
have a Material Adverse Effect, neither the Company nor any of its Subsidiaries
have any contingent obligations not provided for or disclosed in the financial
statements referred to in Section 5.4.
5.8. Subsidiaries. Schedule 5.8 (as supplemented from time to time
by the Company promptly after the formation or acquisition of any new Subsidiary
as permitted under this Agreement) contains an accurate list of all Subsidiaries
of the Company as of the Closing Date, setting forth their respective
jurisdictions of organization and the percentage of their respective capital
stock or other ownership interests owned by the Company or other Subsidiaries.
All of the issued and outstanding shares of capital stock or other ownership
interests of such Subsidiaries have been (to the extent such concepts are
relevant with respect to such ownership interests) duly authorized and issued
and are fully paid and non-assessable.
5.9. Accuracy of Information. No information, schedule, exhibit or
report furnished by the Company or any of its Subsidiaries to the Arranger, any
Agent or Lender (including, without limitation, the Company's Confidential
Information Memorandum dated March 2002) in connection with the negotiation of,
or compliance with, the Loan Documents contained any material misstatement of
fact or omitted to state a material fact or any fact necessary to make the
statements contained therein not misleading.
5.10. Regulation U. Neither the Company nor any of its Subsidiaries
is engaged principally, or as one of its important activities, in the business
of extending credit for the purpose, whether immediate, incidental or ultimate
of buying or carrying margin stock (within the meaning of Regulations U or X);
and after applying the proceeds of each Advance, margin stock (as defined in
Regulation U) constitutes less than twenty-five (25%) of the value of those
assets of the Company and its Subsidiaries which are subject to any limitation
on sale or pledge, or any other restriction hereunder.
40
5.11. Material Agreements. Neither the Company nor any Subsidiary is
a party to any agreement or instrument or subject to any charter or other
corporate restriction which could reasonably be expected to have a Material
Adverse Effect. Neither the Company nor any Subsidiary is in default in the
performance, observance or fulfillment of any of the obligations, covenants or
conditions contained in any agreement or instrument to which it is a party,
which default could reasonably be expected to have a Material Adverse Effect.
5.12. Compliance With Laws. The Company and its Subsidiaries have
complied in all material respects with all applicable statutes, rules,
regulations, orders and restrictions of any domestic or foreign government or
any instrumentality or agency thereof having jurisdiction over the conduct of
their respective businesses or the ownership of their respective Property.
5.13. Ownership of Properties. On the Closing Date, the Company and
its Subsidiaries will have good title, free of all Liens other than Permitted
Liens, to all of the Property and assets reflected in the Company's most recent
consolidated financial statements provided to the Arranger and the Lenders as
owned by the Company and its Subsidiaries, other than Property and assets
disposed of in the ordinary course of business.
5.14. ERISA; Foreign Pension Matters. The sum of (a) the Unfunded
Liabilities of all Plans and (b) the present value of the aggregate unfunded
liabilities to provide the accrued benefits under all Foreign Pension Plans do
not in the aggregate exceed an amount equal to ten percent (10%) of the
Company's Consolidated Net Worth as reported on the most recent audited
financial statements delivered to the Lenders pursuant to Section 6.1(i) (or,
prior to the delivery of the first such audited financial statements under
Section 6.1(i), as reported on the Combined Balance Sheets). Each Plan and each
Foreign Pension Plan complies in all material respects with all applicable
requirements of law and regulations, no Reportable Event has occurred with
respect to any Plan, neither the Company nor any other member of its Controlled
Group has withdrawn from any Multiemployer Plan or initiated steps to do so, and
no steps have been taken to terminate any Plan, except to the extent that such
non-compliance, Reportable Event, withdrawal or termination could not reasonably
be expected to result in liability of the Company or any of its Subsidiaries
individually or in the aggregate in an amount greater than ten percent (10%) of
the Company's Consolidated Net Worth as reported on the most recent audited
financial statements delivered to the Lenders pursuant to Section 6.1(i) (or,
prior to the delivery of the first such audited financial statements under
Section 6.1(i), as reported on the Combined Balance Sheets).
5.15. Plan Assets; Prohibited Transactions. No Borrower is an entity
deemed to hold "plan assets" within the meaning of 29 C.F.R. ss. 2510.3-101 of
an employee benefit plan (as defined in Section 3(3) of ERISA) which is subject
to Title I of ERISA or any plan (within the meaning of Section 4975 of the
Code), and neither the execution of this Agreement nor the making of Revolving
Loans hereunder gives rise to a prohibited transaction within the meaning of
Section 406 of ERISA or Section 4975 of the Code, except to the extent that such
event or prohibited transaction could not reasonably be expected to result in
liability of the Company or any of its Subsidiaries individually or in the
aggregate in an amount greater than ten percent (10%) of the Company's
Consolidated Net Worth as reported on the most recent audited financial
statements delivered to the Lenders pursuant to Section 6.1(i) (or, prior to the
delivery
41
of the first such audited financial statements under Section 6.1(i), as reported
on the Combined Balance Sheets).
5.16. Environmental Matters.
(a) In the ordinary course of its business, the officers of the
Company consider the effect of Environmental Laws on the business of the Company
and its Subsidiaries, in the course of which they identify and evaluate
potential risks and liabilities accruing to the Company and its Subsidiaries due
to Environmental Laws. On the basis of this consideration, the Company has
concluded that Environmental Laws cannot reasonably be expected to have a
Material Adverse Effect. Except as set forth on Schedule 5.16, neither the
Company nor any Subsidiary has received any notice to the effect that its
operations are not in compliance with any of the requirements of applicable
Environmental Laws or are the subject of any federal or state investigation
evaluating whether any remedial action is needed to respond to a release of any
toxic or hazardous waste or substance into the environment, which non-compliance
or remedial action could reasonably be expected to have a Material Adverse
Effect.
(b) The Company and each of its Subsidiaries have obtained all
necessary governmental permits, licenses and approvals which are material to the
operations conducted on their respective properties, including without
limitation, all required permits, licenses and approvals for (i) the emission of
air pollutants or contaminates, (ii) the treatment or pretreatment and discharge
of waste water or storm water, (iii) the treatment, storage, disposal or
generation of hazardous wastes, (iv) the withdrawal and usage of ground water or
surface water, and (v) the disposal of solid wastes, except where a failure to
obtain such permits, licenses and approvals would not result in a Material
Adverse Effect.
5.17. Investment Company Act. Neither the Company nor any Subsidiary
is an "investment company" or a company "controlled" by an "investment company",
within the meaning of the Investment Company Act of 1940, as amended.
5.18. Public Utility Holding Company Act. Neither the Company nor
any Subsidiary is a "holding company" or a "subsidiary company" of a "holding
company", or an "affiliate" of a "holding company" or of a "subsidiary company"
of a "holding company", within the meaning of the Public Utility Holding Company
Act of 1935, as amended.
5.19. Insurance. The Property of the Company and its Subsidiaries is
insured with financially sound and reputable insurance companies, in such
amounts, with such deductibles and covering such properties and risks as is
required under Section 6.6.
5.20. Solvency. After giving effect to (i) the Credit Extensions to
be made on the Closing Date or such other date as Credit Extensions requested
hereunder are made, (ii) the other transactions contemplated by this Agreement
and the other Transaction Documents, and (iii) the payment and accrual of all
transaction costs with respect to the foregoing, the Company and its
Subsidiaries taken as a whole are Solvent.
42
ARTICLE VI
COVENANTS
During the term of this Agreement, unless the Required Lenders shall
otherwise consent in writing:
6.1. Reporting. The Company will maintain, for itself and each
Subsidiary, a system of accounting established and administered in accordance
with generally accepted accounting principles, and furnish to the Lenders:
(i) Within ninety (90) days (or such later date as may be
permitted by the Securities and Exchange Commission) after the
close of each of its fiscal years, an audit report certified
by independent certified public accountants acceptable to the
Required lenders and with such certifications to be free of
exceptions and qualifications not acceptable to the Required
Lenders, prepared in accordance with Agreement Accounting
Principles on a consolidated basis for itself and its
Subsidiaries, including a balance sheet as of the end of such
period, related statements of income, shareholders' equity and
cash flows.
(ii) Within forty-five (45) days (or such later date as may be
permitted by the Securities and Exchange Commission) after the
close of the first three (3) quarterly periods of each of its
fiscal years, for itself and its Subsidiaries, a consolidated
unaudited balance sheet as at the close of each such period
and consolidated statements of income and cash flows for the
period from the beginning of such fiscal year to the end of
such quarter, all certified as to fairness of presentation,
compliance with Agreement Accounting Principles and
consistency by its chief financial officer, chief accounting
officer or treasurer.
(iii) Together with the financial statements required under Sections
6.1(i) and (ii), a compliance certificate in substantially the
form of Exhibit B signed by its chief financial officer, chief
accounting officer or treasurer showing the calculations
necessary to determine compliance with this Agreement and
stating that no Default or Unmatured Default exists, or if any
Default or Unmatured Default exists, stating the nature and
status thereof.
(iv) As soon as possible and in any event within ten (10) days
after the Company knows that any Reportable Event has occurred
with respect to any Plan, or any material unfunded liability
has arisen with respect to any Foreign Pension Plan, a
statement, signed by the chief financial officer or treasurer
of the Company, describing said Reportable Event or material
unfunded liability and the action which the Company proposes
to take with respect thereto, which, in any case, could
reasonably be expected to give rise to liability of more than
$1,000,000 on the part of the Company or any of its
Subsidiaries.
(v) As soon as possible and in any event within ten (10) days
after receipt by the Company, a copy of (a) any notice or
claim to the effect that the Company or any
43
of its Subsidiaries is or may be liable to any Person as a
result of the release by the Company, any of its Subsidiaries,
or any other Person of any toxic or hazardous waste or
substance into the environment, and (b) any notice alleging
any violation of any federal, state or local environmental,
health or safety law or regulation by the Company or any of
its Subsidiaries, which, in either case, could reasonably be
expected to have a Material Adverse Effect.
(vi) Promptly upon the furnishing thereof to the shareholders of
the Company, copies of all financial statements, reports and
proxy statements so furnished.
(vii) Promptly upon the filing thereof, copies of all registration
statements (other than exhibits thereto and any registration
statements on Form S-8 or its equivalent) or other regular
reports not otherwise provided pursuant to this Section 6.1
which the Company or any of its Subsidiaries files with the
Securities and Exchange Commission.
(viii) Upon the request of any Agent, prior to the execution thereof,
draft copies of the Receivables Purchase Documents and,
promptly after execution thereof, copies of such Receivables
Purchase Documents and all material amendments thereto.
(ix) Promptly upon any officer of the Company obtaining knowledge
of the institution of, or written threat of, any action, suit,
proceeding, governmental investigation or arbitration against
or affecting the Company or any of its Subsidiaries or any
property of the Company or any of its Subsidiaries, which
action, suit, proceeding, investigation or arbitration
exposes, or in the case of multiple actions, suits,
proceedings, investigations or arbitrations arising out of the
same general allegations or circumstances which expose, in the
Company's reasonable judgment, the Company or any of its
Subsidiaries to liability in an amount aggregating $25,000,000
or more, give written notice thereof to the Administrative
Agent and the Lenders and provide such other information as
may be reasonably available to the Company (without
jeopardizing any attorney-client privilege by disclosure
thereof) to enable each Lender and the Administrative Agent
and its counsel to evaluate such matters.
(x) Such other information (including non-financial information)
as any Agent or Lender may from time to time reasonably
request (except such plans and forecasts which have not been
made available by the Company to its creditors).
6.2. Use of Proceeds. The Company will, and will cause each
Subsidiary to, use the proceeds of the Credit Extensions for general corporate
purposes, including for working capital, refinancing the Indebtedness under the
Existing Credit Agreement, commercial paper liquidity support and Permitted
Acquisitions, and to pay fees and expenses incurred in connection with this
Agreement. The Borrowers shall use the proceeds of Credit Extensions in
compliance with all applicable legal and regulatory requirements and any such
use shall not result in a violation of any such requirements, including, without
limitation, Regulations T, U and X, the Securities Act of 1933 and the
Securities Exchange Act of 1934 and the regulations promulgated thereunder.
44
6.3. Notice of Default. Within five (5) Business Days after an
Authorized Officer becomes aware thereof, the Company will, and will cause each
Subsidiary to, give notice in writing to the Lenders of the occurrence of any
Default or Unmatured Default and of any other development, financial or
otherwise, which could reasonably be expected to have a Material Adverse Effect.
6.4. Conduct of Business. The Company will, and will cause each
Subsidiary to, carry on and conduct its business in substantially the same
manner and in substantially the same fields of enterprise as conducted by the
Company or its Subsidiaries as of the Closing Date, and, except as otherwise
permitted by Section 6.12, do all things necessary to remain duly incorporated
or organized, validly existing and (to the extent such concept applies to such
entity) in good standing as a corporation, partnership or limited liability
company in its jurisdiction of incorporation or organization, as the case may
be, and maintain all requisite authority to conduct its business in each
jurisdiction in which its business is conducted, except where the failure to
maintain such good standing or authority could not reasonably be expected to
have a Material Adverse Effect; provided that nothing in this Section shall
prevent the Company and its Subsidiaries from discontinuing any line of business
or liquidating, dissolving or disposing of any Subsidiary if (i) no Default or
Unmatured Default is in existence or would be caused thereby and (ii) the Board
of Directors of the Company determines in good faith that such termination,
liquidation, dissolution or disposition is in the best interest of the Company
and its Subsidiaries taken as a whole.
6.5. Taxes. The Company will, and will cause each Subsidiary to,
file on a timely basis complete and correct United States federal and material
foreign, state and local tax returns required by law and pay when due all
material taxes, assessments and governmental charges and levies upon it or its
income, profits or Property, except those which are being contested in good
faith by appropriate proceedings and with respect to which adequate reserves
have been set aside in accordance with Agreement Accounting Principles.
6.6. Insurance. The Company will, and will cause each Subsidiary
to, maintain with financially sound and reputable insurance companies insurance
on their Property in such amounts and covering such risks as is consistent with
sound business practice, and the Company will furnish to any Lender upon request
full information as to the insurance carried.
6.7. Compliance with Laws; Maintenance of Plans. The Company will,
and will cause each Subsidiary to, (i) comply with all laws, rules, regulations,
orders, writs, judgments, injunctions, decrees or awards to which it may be
subject including, without limitation, all Environmental Laws, and (ii)
establish, maintain and operate all Plans to comply in all material respects
with the provisions of ERISA and the Code, and the regulations and
interpretations thereunder, where in the case of either (i) or (ii) above the
failure to so comply could reasonably be expected to have a Material Adverse
Effect.
6.8. Maintenance of Properties. The Company will, and will cause
each Subsidiary to, do all things necessary to maintain, preserve, protect and
keep its Property material to the conduct of its business in good repair,
working order and condition, and make all necessary and proper repairs, renewals
and replacements so that its business carried on in connection therewith may be
properly conducted at all times.
45
6.9. Inspection; Keeping of Books and Records.
(i) The Company will, and will cause each Subsidiary to, permit
the Agents and the Lenders, by their respective representatives and agents, to
inspect any of the Property, books and financial records of the Company and each
Subsidiary, to examine and make copies of the books of accounts and other
financial records of the Company and each Subsidiary, and to discuss the
affairs, finances and accounts of the Company and each Subsidiary with, and to
be advised as to the same by, their respective officers at such reasonable times
and intervals as any Agent or Lender may designate. If a Default has occurred
and is continuing, the Company, upon the Administrative Agent's request, shall
turn over copies of any such records to the Administrative Agent or its
representatives. Unless a Default has occurred and is then continuing, each
Lender shall give the Company not less than three (3) Business Days' prior
written notice of its intent to conduct such visit or inspection. To the extent
that any Lender, in the course of such visit or inspection, obtains possession
of any proprietary information pertaining to the Company or any Subsidiary, such
Lender shall handle such information in accordance with the requirements of
Section 10.11.
(ii) The Company shall keep and maintain, and cause each of its
Subsidiaries to keep and maintain, in all material respects, proper books of
record and account in which entries in conformity with Agreement Accounting
Principles shall be made of all dealings and transactions in relation to their
respective businesses and activities (except that any Foreign Subsidiary may
comply with local accounting principles).
6.10. Addition of Guarantors. As promptly as possible but in any
event within thirty (30) days after any Domestic Subsidiary (other than any SPV)
becomes a Material Subsidiary of the Company, the Company shall cause each such
Material Subsidiary to deliver to the Administrative Agent a duly executed
supplement to the Guaranty pursuant to which such Material Subsidiary agrees to
be bound by the terms and provisions of the Guaranty; provided, that if at any
time (i) the aggregate amount of the book value of assets of all Domestic
Subsidiaries that are not Guarantors exceeds ten percent (10%) of the aggregate
book value of the Consolidated Total Assets of the Company and its Subsidiaries,
or (ii) the Consolidated Net Worth of all of all Domestic Subsidiaries that are
not Guarantors exceeds ten percent (10%) of the Consolidated Net Worth of the
Company and its Subsidiaries, or (iii) the assets of all Domestic Subsidiaries
that are not Guarantors contributed more than ten percent (10%) of the Company's
Consolidated Net Income, in each case as reported in the most recent annual
audited financial statements delivered to the Lenders pursuant to Section 6.1(i)
(or, prior to the delivery of the first of such annual audited financial
statements, as reported in the Combined Balance Sheets), the Company shall cause
additional Domestic Subsidiaries (other than any SPV) to become parties to the
Guaranty as Guarantors thereunder to eliminate such excess.
6.11. Subsidiary Indebtedness. The Company will not permit any
Subsidiary to create, incur or suffer to exist any Indebtedness, except:
(i) The obligation arising under the Transaction Documents.
(ii) Indebtedness existing on the Closing Date and described on
Schedule 6.11, and Permitted Refinancing Indebtedness in
respect thereof.
46
(iii) Indebtedness owed (a) to the Company or any Guarantor by any
Guarantor, (b) to any Subsidiary that is not a Guarantor by
any other Subsidiary that is not a Guarantor, and (c) to the
Company or any Guarantor by any Subsidiary that is not a
Guarantor in an aggregate amount under this clause (c) not to
exceed ten percent (10%) of the Company's Consolidated Net
Worth as reported on the most recent audited financial
statements delivered to the Lenders pursuant to Section 6.1(i)
(or, prior to the delivery of the first such audited financial
statements under Section 6.1(i), as reported on the Combined
Balance Sheets).
(iv) Receivables Facility Attributed Indebtedness in an aggregate
amount not to exceed $200,000,000.
(v) Indebtedness in an aggregate amount not to exceed $50,000,000
incurred or assumed for the purpose of financing or
refinancing all or any part of the cost of acquiring or
constructing any specific fixed asset of such Subsidiary
(including without limitation Capital Leases); provided, that
such Indebtedness (a) is incurred (1) at a time when no
Default or Unmatured Default has occurred and is continuing or
would result from such incurrence and (2) within eighteen (18)
months after the acquisition or construction of such fixed
asset, and (b) does not exceed 100% of the total cost of such
acquisition or construction (plus interest, fees and closing
costs related thereto).
(vi) Indebtedness consisting of "Obligations" and guarantee
obligations with respect to the "Obligations" under (and as
defined in) the 3-Year Credit Agreement.
(vii) Additional Indebtedness (including, without limitation,
Indebtedness secured by Liens permitted under Section
6.13(xv)) in an aggregate amount not to exceed twenty-five
percent (25%) of Stockholders' Equity as of the end of the
Company's fiscal quarter most recently ended.
6.12. Consolidations and Mergers; Permitted Acquisitions.
6.12.1. Consolidations and Mergers. Each Borrower agrees that it will
not, nor will the Company permit any Subsidiary to, consolidate or merge with or
into any other Person, provided that if, after giving effect to any of the
following, no Default will be in existence: (i) any Subsidiary may merge or
consolidate with the Company if the Company is the corporation surviving such
merger, (ii) any Borrower may merge or consolidate with any other Borrower,
(iii) any Subsidiary which is a Guarantor may merge or consolidate with any
other Subsidiary which is a Guarantor, (iv) any Subsidiary which is not a
Borrower or Guarantor may merge or consolidate with any other Subsidiary which
is not a Borrower or Guarantor, (v) any Subsidiary which is not a Borrower or a
Guarantor may merge or consolidate with any other Subsidiary which is a Borrower
or a Guarantor, if the Borrower or Guarantor, as the case may be, is the
corporation surviving such merger, and (vi) any Borrower or Subsidiary may merge
or consolidate with any other Person if (a) such Person was organized under the
laws of the United States of America or one of its States, (b) either (1) such
Borrower or Subsidiary is the corporation surviving such merger or (2) such
Person becomes a Subsidiary as a result of such merger or consolidation and
expressly assumes in writing (in form and substance reasonably
47
acceptable to the Administrative Agent) all obligations of such Borrower or
Subsidiary, as the case may be, under the Loan Documents executed by such
Borrower or Subsidiary, provided, in any merger or consolidation involving a
Domestic Subsidiary, the survivor shall be a Domestic Subsidiary, and in any
merger or consolidation involving a Foreign Subsidiary, the survivor shall be a
Foreign Subsidiary, and (c) immediately after giving effect to such merger, no
Default shall have occurred and be continuing.
6.12.2. Permitted Acquisitions. Each Borrower agrees that it will not,
nor will the Company permit any Subsidiary to, make any Acquisitions other than
Acquisitions meeting the following requirements or otherwise approved by the
Required Lenders (which approval shall not be unreasonably withheld or delayed)
(each such Acquisition constituting a "PERMITTED ACQUISITION"):
(i) as of the date of the consummation of such Acquisition, no
Default or Unmatured Default shall have occurred and be
continuing or would result from such Acquisition, and the
representation and warranty contained in Section 5.10 shall be
true both before and after giving effect to such Acquisition;
(ii) such Acquisition is consummated on a non-hostile basis
pursuant to a negotiated acquisition agreement approved by the
board of directors or other applicable governing body of the
seller or entity to be acquired, and no material challenge to
such Acquisition (excluding the exercise of appraisal rights)
shall be pending or threatened by any shareholder or director
of the seller or entity to be acquired;
(iii) the business to be acquired in such Acquisition is similar or
related to one or more of the lines of business in which the
Company and its Subsidiaries are engaged on the Closing Date;
(iv) as of the date of the consummation of such Acquisition, (x)
all material governmental and corporate approvals required in
connection therewith shall have been obtained and (y) the
Company shall be in compliance with Section 6.10;
(v) the Purchase Price for each such Acquisition (other than any
Acquisition otherwise approved by the Required Lenders)
together with the Purchase Price of all other Permitted
Acquisitions (other than any Permitted Acquisition otherwise
approved by the Required Lenders) shall not exceed an amount
equal to $50,000,000 during any period of twelve consecutive
months; and
(vi) with respect to each Permitted Acquisition with respect to
which the Purchase Price shall be greater than $25,000,000,
not less than ten (10) days prior to the consummation of such
Permitted Acquisition, the Company shall have delivered to the
Administrative Agent a pro forma consolidated balance sheet,
income statement and cash flow statement of the Company and
its Subsidiaries (the "ACQUISITION PRO FORMA"), based on the
Company's most recent financial statements delivered pursuant
to Section 6.1(i) and using historical financial statements
for the acquired entity provided by the seller(s) or which
shall be complete and shall fairly present, in all material
respects, the financial condition
48
and results of operations and cash flows of the Company and
its Subsidiaries in accordance with Agreement Accounting
Principles, but taking into account such Permitted Acquisition
and the funding of all Credit Extensions in connection
therewith, and such Acquisition Pro Forma shall reflect that,
on a pro forma basis, the Company would have been in
compliance with the financial covenants set forth in Section
6.18 for the four fiscal quarter period reflected in the
compliance certificate most recently delivered to the
Administrative Agent pursuant to Section 6.1(iii) prior to the
consummation of such Permitted Acquisition (giving effect to
such Permitted Acquisition and all Credit Extensions funded in
connection therewith as if made on the first day of such
period).
6.13. Liens. The Company will not, nor will it permit any Subsidiary
to, create, incur, or suffer to exist any Lien in, of or on the Property of the
Company or any of its Subsidiaries, except:
(i) Liens for taxes, assessments or governmental charges or levies
on its Property if the same shall not at the time be
delinquent or thereafter can be paid without penalty, or are
being contested in good faith and by appropriate proceedings
and for which adequate reserves in accordance with Agreement
Accounting Principles shall have been set aside on its books.
(ii) Liens imposed by law, such as landlords', wage earners',
carriers', warehousemen's and mechanics' liens and other
similar liens, arising in the ordinary course of business
which secure payment of obligations not more than sixty (60)
days past due or which are being contested in good faith by
appropriate proceedings and for which adequate reserves in
accordance with Agreement Accounting Principles shall have
been set aside on its books.
(iii) Liens arising out of pledges or deposits under worker's
compensation laws, unemployment insurance, old age pensions,
or other social security or retirement benefits, or similar
legislation or to secure the performance of tenders, statutory
obligations, surety or appeal bonds, bids, leases, government
contracts and other similar obligations (provided that such
Liens do not secure any Indebtedness).
(iv) Utility easements, building restrictions, zoning ordinances
and such other encumbrances or charges against real property
as are of a nature generally existing with respect to
properties of a similar character and which do not in any
material way affect the marketability of the same or interfere
with the use thereof in the business of the Company or its
Subsidiaries.
(v) Liens existing on the Closing Date and described on Schedule
6.13.
(vi) Liens, if any, securing (a) the Revolving Loans and other
Obligations hereunder and/or (b) the "Loans" and other
"Obligations" under (and as defined in) the 3-Year Credit
Agreement.
(vii) Liens arising under the Receivables Purchase Documents.
49
(viii) Liens existing on any specific fixed asset of any Subsidiary
of the Company at the time such Subsidiary becomes a
Subsidiary and not created in contemplation of such event.
(ix) Liens on any specific fixed asset securing Indebtedness
incurred or assumed for the purpose of financing or
refinancing all or any part of the cost of acquiring or
constructing such asset; provided that such Lien attaches to
such asset concurrently with or within eighteen (18) months
after the acquisition or completion or construction thereof.
(x) Liens existing on any specific fixed asset of any Subsidiary
of the Company at the time such Subsidiary is merged or
consolidated with or into the Company or any Subsidiary and
not created in contemplation of such event.
(xi) Liens existing on any specific fixed asset prior to the
acquisition thereof by the Company or any Subsidiary and not
created in contemplation thereof.
(xii) Liens arising out of the refinancing, extension, renewal or
refunding of any Indebtedness secured by any Lien permitted by
any of the foregoing clause (v) or clauses (vii) through (xi);
provided that (a) such Indebtedness is not secured by any
additional assets, and (b) the amount of such Indebtedness
secured by any such Lien is not increased.
(xiii) Inchoate Liens arising under ERISA to secure current service
pension liabilities as they are incurred under the provisions
of Plans from time to time in effect.
(xiv) Liens securing intercompany Indebtedness owing by (a) any
Guarantor to the Company or any other Guarantor and (b) any
Subsidiary that is not a Guarantor to the Company or any
Wholly-Owned Subsidiary of the Company.
(xv) Liens not otherwise permitted under this Section 6.13 securing
Indebtedness in an aggregate principal amount at any time
outstanding, together with the amount of Indebtedness
permitted under Section 6.11(vi) (but without duplication),
does not exceed twenty-five percent (25%) of Stockholders'
Equity as of the end of the Company's fiscal quarter most
recently ended.
6.14. Transactions with Affiliates. The Company will not, and will
not permit any Subsidiary to, enter into any transaction (including, without
limitation, the purchase or sale of any Property or service) with, or make any
payment or transfer to, any Affiliate (other than the Company or any Subsidiary
of the Company) except in the ordinary course of business and pursuant to the
reasonable requirements of the Company's or such Subsidiary's business and upon
fair and reasonable terms no less favorable to the Company or such Subsidiary
than the Company or such Subsidiary would obtain in a comparable arm's-length
transaction, other than Permitted Receivables Transfers.
6.15. Financial Contracts. The Company shall not and shall not
permit any of its consolidated Subsidiaries to enter into any Financial
Contract, other than Financial Contracts
50
pursuant to which the Company or such Subsidiary hedged its actual or
anticipated interest rate, foreign currency or commodity exposure existing or
anticipated at the time thereof.
6.16. ERISA. Except to the extent that such act, or failure to act
would not result singly, or in the aggregate, after taking into account all
other such acts or failures to act, in a liability of the Company or any of its
Subsidiaries which could reasonably be expected to exceed ten percent (10%) of
the Company's Consolidated Net Worth as reported on the most recent audited
financial statements delivered to the Lenders pursuant to Section 6.1(i) (or,
prior to the delivery of the first such audited financial statements under
Section 6.1(i), as reported on the Combined Balance Sheets), the Company shall
not (i) engage, or permit any Controlled Group member to engage, in any
prohibited transaction described in Sections 406 of ERISA or 4975 of the Code
for which a statutory or class exemption is not available or a private exemption
has not been previously obtained from the DOL; (ii) permit to exist any
accumulated funding deficiency (as defined in Sections 302 of ERISA and 412 of
the Code); (iii) fail, or permit any member of its Controlled Group to fail, to
pay timely required contributions or annual installments due with respect to any
waived funding deficiency of any Plan; (iv) terminate, or permit any member of
its Controlled Group to terminate, any Plan which would result in any liability
of the Company or any member of its Controlled Group under Title IV of ERISA;
(v) fail to make any contribution or payment to any Multiemployer Plan which the
Company or any member of its Controlled Group may be required to make under any
agreement relating to such Multiemployer Plan, or any law pertaining thereto;
(vi) fail, or permit any member of its Controlled Group to fail, to pay any
required installment or any other payment required under Section 412 of the Code
on or before the due date for such installment or other payment; (vii) amend, or
permit any member of its Controlled Group to amend, a Plan resulting in an
increase in current liability for the plan year such that the Company or any
member of its Controlled Group is required to provide security to such Plan
under Section 401(a)(29) of the Code.
6.17. Environmental Compliance. The Company will not become, or
permit any Subsidiary to become, subject to any liabilities or costs which could
reasonably be expected to have a Material Adverse Effect arising out of or
related to (i) the release or threatened release at any location of any
contaminant into the environment, or any remedial action in response thereto, or
(ii) any violation of any environmental, health or safety requirements of law
(including, without limitation, any Environmental Laws).
6.18. Financial Covenants.
6.18.1. Maximum Leverage Ratio. The Company shall not permit the ratio
(the "LEVERAGE RATIO") of (i) Indebtedness For Borrowed Money of the Company and
its consolidated Subsidiaries to (ii) EBITDA to be greater than (a) 3.50 to 1.00
as of February 28, 2002, (b) 3.80 to 1.00 as of May 31, 2002, (c) 3.60 to 1.00
as of Xxxxxx 00, 0000, (x) 3.50 as of each of November 30, 2002 and February 28,
2003, (e) 3.25 to 1.00 as of May 31, 2003, and (f) 3.00 to 1.00 as of the end of
each fiscal quarter thereafter. The Leverage Ratio shall be calculated as of the
last day of each fiscal quarter based upon (1) for Indebtedness For Borrowed
Money, as of the last day of each such fiscal quarter; and (2) for EBITDA, the
actual amount for the four-quarter period ending on such day, and shall be
calculated, with respect to Permitted Acquisitions, on a pro forma basis using
historical audited and reviewed unaudited financial statements obtained from the
seller(s) in such Permitted Acquisition, broken down by fiscal
51
quarter in the Company's reasonable judgement and satisfactory to the
Administrative Agent and as reported to the Administrative Agent. For purposes
of determining compliance with this covenant, the EBITDA of the Company and its
consolidated Subsidiaries for any period of four fiscal periods ending on or
prior to November 1, 2002 shall be deemed to include the EBITDA attributable to
NSI's lighting equipment and chemicals businesses for the portion of such period
that ends on November 30, 2001 (and such EBITDA shall be determined on a basis
consistent with Agreement Accounting Principles).
6.18.2. Minimum Interest Expense Coverage Ratio. The Company shall
maintain a ratio (the "INTEREST EXPENSE COVERAGE RATIO") of (i) EBIT to (ii)
Interest Expense for the applicable period of at least 2.50 to 1.00 as of the
end of each fiscal quarter ending on or after February 28, 2002. The Interest
Expense Coverage Ratio shall be calculated as of the last day of each fiscal
quarter for the actual amount of EBIT and Interest Expense for the four-quarter
period ending on such day, and shall be calculated, with respect to Permitted
Acquisitions, on a pro forma basis using historical audited and reviewed
unaudited financial statements obtained from the seller(s) in such Permitted
Acquisition, broken down by fiscal quarter in the Company's reasonable judgement
and satisfactory to the Administrative Agent. For purposes of determining
compliance with this covenant, the EBIT of the Company and its consolidated
Subsidiaries for any period of four fiscal periods ending on or prior to
November 1, 2002 shall be deemed to include the EBIT attributable to NSI's
lighting equipment and chemicals businesses for the portion of such period that
ends on November 30, 2001 (and such EBIT shall be determined on a basis
consistent with Agreement Accounting Principles).
ARTICLE VII
DEFAULTS
The occurrence of any one or more of the following events shall
constitute a Default:
7.1. Breach of Representations or Warranties. Any representation or
warranty made or deemed made by or on behalf of the Company or any of its
Subsidiaries to the Lenders or the Agents under or in connection with this
Agreement, any Credit Extension, or any certificate or information delivered in
connection with this Agreement or any other Loan Document shall be false in any
material respect on the date as of which made.
7.2. Failure to Make Payments When Due. Nonpayment of (i) principal
of any Revolving Loan when due, or (ii) interest upon any Revolving Loan or any
Facility Fee, Utilization Fee or other Obligations under any of the Loan
Documents within five (5) Business Days after such interest, fee or other
Obligation becomes due.
7.3. Breach of Covenants. The breach by any Borrower of any of the
terms or provisions of Section 6.1(iii), Sections 6.2 through 6.4, (with respect
to the Company's or any of its Subsidiaries' existence), Section 6.9(i),
Sections 6.11 through 6.13 or Section 6.18.
7.4. Other Breaches. The breach by any Borrower (other than a
breach which constitutes a Default under another Section of this Article VII) of
any of the terms or provisions of this Agreement or any other Loan Document
which is not remedied within thirty (30) days
52
after the earlier to occur of (i) written notice thereof has been given to the
Company by the Administrative Agent at the request of any Lender or (ii) an
Authorized Officer otherwise becomes aware of any such breach; provided,
however, that such cure period for such breach (other than a breach of the terms
or provisions of Section 6.10) shall be extended for a period of time, not to
exceed an additional thirty (30) days, reasonably sufficient to permit such
Borrower to cure such failure if such failure cannot be cured within the initial
30-day period but reasonably could be expected to be capable of cure within such
additional thirty (30) days, such Borrower has commenced efforts to cure such
failure during the initial 30-day period and such Borrower is diligently
pursuing such cure.
7.5. Default as to Other Indebtedness.
(i) Failure of the Company or any of its Subsidiaries to pay when
due (whether at stated maturity, by acceleration or otherwise) (a) any
Indebtedness under the 3-Year Credit Agreement (after giving effect to any
applicable grace periods) or (b) any other Indebtedness which, individually or
in the aggregate exceeds $25,000,000 (or the equivalent in currencies other than
Dollars) (such Indebtedness under the 3-Year Credit Agreement and such other
Indebtedness being referred to as "MATERIAL INDEBTEDNESS"); or
(ii) Any Material Indebtedness of the Company or any of its
Subsidiaries shall be declared to be due and payable or required to be prepaid
or repurchased (other than by a regularly scheduled payment) prior to the stated
maturity thereof; or
(iii) The Company or any of its Material Subsidiaries shall fail to
pay, or shall admit in writing its inability to pay, its debts generally as they
become due; or
(iv) The default by the Company or any of its Subsidiaries in the
performance (beyond the applicable grace period with respect thereto, if any) of
any term, provision or condition contained in any agreement under which any such
Material Indebtedness was created or is governed, or any other event shall occur
or condition exist, the effect of which default or event is to cause, or to
permit the holder or holders of such Material Indebtedness to cause such
Material Indebtedness to become due prior to its stated maturity.
7.6. Voluntary Bankruptcy; Appointment of Receiver; Etc. The
Company or any of its Material Subsidiaries shall (i) have an order for relief
entered with respect to it under the Federal bankruptcy laws as now or hereafter
in effect, (ii) make an assignment for the benefit of creditors, (iii) apply
for, seek, consent to, or acquiesce in, the appointment of a receiver,
custodian, trustee, examiner, liquidator or similar official for it or any
Substantial Portion of its Property, (iv) institute any proceeding seeking an
order for relief with respect to it under the Federal bankruptcy laws as now or
hereafter in effect or seeking to adjudicate it a bankrupt or insolvent, or
seeking dissolution, winding up, liquidation, reorganization, arrangement,
adjustment or composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors or fail to file an
answer or other pleading denying the material allegations of any such proceeding
filed against it, (v) take any corporate or partnership action to authorize or
effect any of the foregoing actions set forth in this Section 7.6, or (vi) fail
to contest in good faith any appointment or proceeding described in Section 7.7.
53
7.7. Involuntary Bankruptcy; Appointment of Receiver; Etc. Without
the application, approval or consent of the Company or any of its Material
Subsidiaries, a receiver, trustee, examiner, liquidator or similar official
shall be appointed for the Company or any of its Subsidiaries or any Substantial
Portion of its Property, or a proceeding described in Section 7.6(iv) shall be
instituted against the Company or any of its Material Subsidiaries and such
appointment continues undischarged or such proceeding continues undismissed or
unstayed for a period of sixty (60) consecutive days.
7.8. Judgments. The Company or any of its Subsidiaries shall fail
within thirty (30) days after the final entry thereof to pay, bond or otherwise
discharge one or more (i) judgments or orders for the payment of money (except
to the extent covered by independent third-party insurance as to which the
insurer has not disclaimed coverage) in the aggregate in excess of ten percent
(10%) of the Company's Consolidated Net Worth as reported in the most recent
annual audited financial statements delivered to the Lenders pursuant to Section
6.1(i), or (ii) nonmonetary judgments or orders which, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect, which
judgment(s), in any such case, is/are not stayed on appeal or otherwise being
appropriately contested in good faith.
7.9. Unfunded Liabilities. The sum of (a) the Unfunded Liabilities
of all Plans and (b) the present value of the aggregate unfunded liabilities to
provide the accrued benefits under all Foreign Pension Plans exceeds in the
aggregate an amount equal to ten percent (10%) of the Company's Consolidated Net
Worth as reported on the most recent audited financial statements delivered to
the Lenders pursuant to Section 6.1(i) (or, prior to the delivery of the first
such audited financial statements under Section 6.1(i), as reported on the
Combined Balance Sheets), or any Reportable Event shall occur in connection with
any Plan if the liability of the Company or any of its Subsidiaries resulting
from such Reportable Event exceeds in the aggregate an amount equal to ten
percent (10%) of the Company's Consolidated Net Worth as reported on the most
recent audited financial statements delivered to the Lenders pursuant to Section
6.1(i) (or, prior to the delivery of the first such audited financial statements
under Section 6.1(i), as reported on the Combined Balance Sheets).
7.10. Other ERISA Liabilities. The Company or any other member of
its Controlled Group has incurred withdrawal liability or become obligated to
make contributions to a Multiemployer Plan in an amount which, when aggregated
with all other amounts required to be paid to Multiemployer Plans by the Company
or any other member of its Controlled Group as withdrawal liability (determined
as of the date of such notification), exceeds ten percent (10%) of the Company's
Consolidated Net Worth as reported in the most recent annual audited financial
statements delivered to the Lenders pursuant to Section 6.1(i) or requires
payments per annum exceeding ten percent (10%) of the Company's Consolidated Net
Worth as reported in the most recent annual audited financial statements
delivered to the Lenders pursuant to Section 6.1(i) (or, prior to the delivery
to the Lenders of the first such financial statements, as reported on the
Combined Balance Sheets).
7.11. Environmental Matters. The Company or any of its Subsidiaries
shall (i) be the subject of any proceeding or investigation pertaining to the
release by the Company, any of its Subsidiaries or any other Person of any toxic
or hazardous waste or substance into the
54
environment, or (ii) violate any Environmental Law, which, in the case of an
event described in clause (i) or clause (ii), could reasonably be expected to
have a Material Adverse Effect.
7.12. Change in Control. Any Change in Control shall occur.
7.13. Receivables Purchase Document Events. Other than at the
request of an Affiliate of the Company party thereto (as permitted thereunder),
an event shall occur which (i) permits the investors in a Receivables Purchase
Facility to require amortization or liquidation of the facility or (ii) results
in the termination of reinvestment or re-advancing of collections or proceeds of
Receivables and Related Security shall occur under the Receivables Purchase
Documents, and, in the case of an event described in clause (i) or clause (ii),
the Company or any Subsidiary thereof (other than any SPV) has liability in
excess of ten percent (10%) of the Company's Consolidated Net Worth as reported
on the most recent audited financial statements delivered to the Lenders
pursuant to Section 6.1(i) (or, prior to the delivery of the first such audited
financial statements under Section 6.1(i), as reported on the Combined Balance
Sheets).
7.14. Guarantor Revocation. Any guarantor of the Obligations shall
deny, disaffirm, terminate or revoke any of its obligations under the applicable
Guaranty (except in accordance with Section 11.15 hereof) or breach any of the
material terms of such Guaranty.
ARTICLE VIII
ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES
8.1. Acceleration.
(i) If any Default described in Section 7.6 or 7.7 occurs with
respect to any Borrower, the obligations of the Lenders to make Revolving Loans
hereunder shall automatically terminate and the Obligations shall immediately
become due and payable without any election or action on the part of the
Administrative Agent or any Lender. If any other Default occurs, the Required
Lenders (or the Administrative Agent with the consent of the Required Lenders)
may terminate or suspend the obligations of the Lenders to make Revolving Loans
hereunder, or declare the Obligations to be due and payable, or both, whereupon
the Obligations shall become immediately due and payable, without presentment,
demand, protest or notice of any kind, all of which the Borrowers hereby
expressly waive.
(ii) If, within thirty (30) days after acceleration of the maturity
of the Obligations or termination of the obligations of the Lenders to make
Revolving Loans hereunder as a result of any Default (other than any Default as
described in Section 7.6 or 7.7 with respect to any Borrower) and before any
judgment or decree for the payment of the Obligations due shall have been
obtained or entered, the Required Lenders (in their sole discretion) shall so
direct, the Administrative Agent shall, by notice to the Borrowers, rescind and
annul such acceleration and/or termination.
8.2. Amendments. Subject to the provisions of this Article VIII,
the Required Lenders (or the Administrative Agent with the consent in writing of
the Required Lenders) and the Borrowers may enter into agreements supplemental
hereto for the purpose of adding or modifying any provisions to the Loan
Documents or changing in any manner the rights of the
55
Lenders or the Borrowers hereunder or thereunder or waiving any Default
hereunder or thereunder; provided, however, that no such supplemental agreement
shall, without the consent of each Lender affected thereby:
(i) Extend the final maturity of any Revolving Loan to a date
after the Revolving Loan Termination Date or forgive all or
any portion of the principal amount thereof, or reduce the
rate or extend the time of payment of interest or fees thereon
(other than (i) a waiver of the application of the default
rate of interest pursuant to Section 2.12 hereof and (ii)
extensions of the Revolving Loan Termination Date pursuant to
Section 2.23).
(ii) Change the percentage specified in the definition of Required
Lenders or any other percentage of Lenders specified to be the
applicable percentage in this Agreement to act on specified
matters or otherwise amend the definitions of "Required
Lenders" or "Pro Rata Share".
(iii) Extend the Revolving Loan Termination Date or the Commitment
Termination Date, or increase the amount or otherwise extend
the term of the Commitment of any Lender hereunder (other than
as expressly permitted by the terms of Section 2.23).
(iv) Permit any Borrower to assign its rights or obligations under
this Agreement.
(v) Other than pursuant to a transaction permitted by the terms of
this Agreement, release any guarantor of the Obligations or
any substantial portion of the collateral, if any, securing
the Obligations.
(vi) Amend this Section 8.2.
No amendment of any provision of this Agreement relating to any Agent shall be
effective without the written consent of such Agent. The Administrative Agent
may waive payment of the fee required under Section 13.3.2 without obtaining the
consent of any other party to this Agreement.
8.3. Preservation of Rights. No delay or omission of the Lenders or
Agents to exercise any right under the Loan Documents shall impair such right or
be construed to be a waiver of any Default or an acquiescence therein, and the
making of a Credit Extension notwithstanding the existence of a Default or
Unmatured Default or the inability of the Borrowers to satisfy the conditions
precedent to such Credit Extension shall not constitute any waiver or
acquiescence. Any single or partial exercise of any such right shall not
preclude other or further exercise thereof or the exercise of any other right,
and no waiver, amendment or other variation of the terms, conditions or
provisions of the Loan Documents whatsoever shall be valid unless in writing
signed by, or by the Administrative Agent with the consent of, the requisite
number of Lenders required pursuant to Section 8.2, and then only to the extent
in such writing specifically set forth. All remedies contained in the Loan
Documents or by law afforded shall be cumulative and all shall be available to
the Agents and the Lenders until all of the Obligations have been paid in full.
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ARTICLE IX
JOINT AND SEVERAL OBLIGATIONS
9.1. Joint and Several Liability. Each Borrower agrees that it is
jointly and severally, directly and primarily liable to the Administrative Agent
and the Lenders for payment, performance and satisfaction in full of the
Obligations and that such liability is independent of the duties, obligations,
and liabilities of the other Borrowers. The Administrative Agent and the Lenders
may jointly bring a separate action or actions on each, any, or all of the
Obligations against any Borrower, whether action is brought against the other
Borrowers or whether the other Borrowers are joined in such action. In the event
that any Borrower fails to make any payment of any Obligations on or before the
due date thereof, the other Borrowers immediately shall cause such payment to be
made or each of such Obligations to be performed, kept, observed, or fulfilled.
9.2. Primary Obligation; Waiver of Marshalling. This Agreement and
the Loan Documents to which Borrowers are a party are a primary and original
obligation of each Borrower, are not the creation of a surety relationship, and
are an absolute, unconditional, and continuing promise of payment and
performance which shall remain in full force and effect without respect to
future changes in conditions, including any change of law or any invalidity or
irregularity with respect to this Agreement or the Loan Documents to which
Borrowers are a party. Each Borrower agrees that its liability under this
Agreement and the Loan Documents to which it is a party shall be immediate and
shall not be contingent upon the exercise or enforcement by the Administrative
Agent and the Lenders of whatever remedies they may have against the other
Borrowers. Each Borrower consents and agrees that the Administrative Agent and
the Lenders shall be under no obligation to marshal any assets of any Borrower
against or in payment of any or all of the Obligations.
9.3. Financial Condition of Borrowers. Each Borrower acknowledges
that it is presently informed as to the financial condition of the other
Borrowers and of all other circumstances which a diligent inquiry would reveal
and which bear upon the risk of nonpayment of the Obligations. Each Borrower
hereby covenants that it will continue to keep informed as to the financial
condition of the other Borrowers, the status of the other Borrowers and of all
circumstances which bear upon the risk of nonpayment. Absent a written request
from any Borrower to the Administrative Agent and the Lenders for information,
each Borrower hereby waives any and all rights it may have to require the
Administrative Agent and the Lenders to disclose to such Borrower any
information which the Administrative Agent and the Lenders may now or hereafter
acquire concerning the condition or circumstances of the other Borrowers.
9.4. Continuing Liability. Subject to the provisions of Section
2.22, the liability of each Borrower under this Agreement and the Loan Documents
to which such Borrower is a party includes Obligations arising under successive
transactions continuing, compromising, extending, increasing, modifying,
releasing, or renewing the Obligations, changing the interest rate, payment
terms, or other terms and conditions thereof, or creating new or additional
Obligations after prior Obligations have been satisfied in whole or in part. To
the maximum extent permitted by law, each Borrower hereby waives any right to
revoke its liability under this Agreement and Loan Documents as to future
indebtedness.
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9.5. Additional Waivers. Each Borrower absolutely, unconditionally,
knowingly, and expressly waives (a) notice of acceptance hereof; (b) notice of
any Revolving Loans or other financial accommodations made or extended under
this Agreement and the Loan Documents to which Borrowers are a party or the
creation or existence of any Obligations; (c) notice of the amount of the
Obligations, subject, however, to each Borrower's right to make inquiry of the
Administrative Agent and the Lenders to ascertain the amount of the Obligations
at any reasonable time; (d) notice of any adverse change in the financial
condition of the other Borrowers or of any other fact that might increase such
Borrower's risk hereunder; (e) notice of presentment for payment, demand,
protest, and notice thereof as to any instruments among the Loan Documents to
which Borrowers are a party; (f) notice of any Default or Unmatured Default; (g)
all other notices (except, in each case, if such notice is specifically required
to be given to any Borrower hereunder or under the Loan Documents to which
Borrowers are a party and demands to which such Borrower might otherwise be
entitled); (h) any right of subrogation such Borrower has or may have as against
the other Borrowers with respect to the Obligations; (i) any right to proceed
against the other Borrowers or any other Person, now or hereafter, for
contribution, indemnity, reimbursement, or any other suretyship rights and
claims, whether direct or indirect, liquidated or contingent, whether arising
under express or implied contract or by operation of law, which such Borrower
may now have or hereafter have as against the other Borrowers with respect to
the Obligations; and (j) any right to proceed or seek recourse against or with
respect to any property or asset of the other Borrowers.
9.6. Settlements or Releases. Each Borrower consents and agrees
that, without notice to or by such Borrower, and without affecting or impairing
the liability of such Borrower hereunder, the Administrative Agent and the
Lenders may, by action or inaction (i) compromise, settle, extend the duration
or the time for the payment of, or discharge the performance of, or may refuse
to or otherwise not enforce this Agreement and the Loan Documents, or any part
thereof, with respect to the other Borrowers or any Guarantor; (ii) release the
other Borrowers or any Guarantor or grant other indulgences to the other
Borrowers or any Guarantor in respect thereof; or (iii) release or substitute
any Guarantor, if any, of the Obligations, or enforce, exchange, release, or
waive any security, if any, for the Obligations or any other guaranty of the
Obligations, or any portion thereof.
9.7. No Election. The Administrative Agent and the Lenders shall
have the right to seek recourse against each Borrower to the fullest extent
provided for herein, and no election by the Administrative Agent and the Lenders
to proceed in one form of action or proceeding, or against any party, or on any
obligation, shall constitute a waiver of the Administrative Agent's or any
Lenders' right to proceed in any other form of action or proceeding or against
other parties unless the Administrative Agent and the Lenders have expressly
waived such right in writing.
9.8. Joint Loan Account. At the request of Borrowers to facilitate
and expedite the administration and accounting processes and procedures of the
Revolving Loans, the Administrative Agent and the Lenders have agreed, in lieu
of maintaining separate loan accounts on the Administrative Agent's and the
Lenders' books in the name of each of the Borrowers, that the Administrative
Agent and the Lenders may maintain a single loan account under the name of all
of the Borrowers (the "Joint Loan Account"). All Revolving Loans shall be
charged to the Joint Loan Account, together with all interest and other charges
as permitted under and pursuant to this Agreement. The Joint Loan Account shall
be credited with all repayments of Obligations
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received by the Administrative Agent and the Lenders, on behalf of Borrowers,
from any Borrower pursuant to the terms of this Agreement.
9.9. Apportionment of Proceeds of Loans. Each Borrower expressly
agrees and acknowledges that the Administrative Agent and the Lenders shall have
no responsibility to inquire into the correctness of the apportionment or
allocation of or any disposition by any of Borrowers of (a) the Revolving Loans
or any other Obligation, or (b) any of the expenses and other items charged to
the Joint Loan Account pursuant to this Agreement. The Revolving Loans and the
other Obligations and such expenses and other items shall be made for the
collective, joint, and several account of Borrowers and shall be charged to the
Joint Loan Account.
9.10. The Administrative Agent and Lenders Held Harmless. Each
Borrower agrees and acknowledges that the administration of this Agreement on a
combined basis, as set forth herein, is being done as an accommodation to the
Borrowers and at their request, and that the Administrative Agent and the
Lenders shall incur no liability to any Borrower as a result thereof. To induce
the Administrative Agent and the Lenders to do so, and in consideration thereof,
each Borrower hereby agrees to indemnify and hold the Administrative Agent and
the Lenders harmless from and against any and all liability, expense, loss,
damage, claim of damage, or injury, made against the Administrative Agent and
the Lenders by Borrowers or by any other Person, arising from or incurred by
reason of such administration of the Agreement on a combined basis, except to
the extent such liability, expense, loss, damage, claim of damage, or injury
solely arises from the gross negligence or willful misconduct or breach of the
obligations under the Loan Documents of the Administrative Agent and the
Lenders, as applicable.
9.11. Borrowers' Integrated Operations. Each Borrower represents and
warrants to the Administrative Agent and the Lenders that the collective
administration of the Revolving Loans is being undertaken by the Administrative
Agent and the Lenders pursuant to this Agreement because Borrowers are
integrated in their operation and administration and require financing on a
basis permitting the availability of credit from time to time to the Borrowers.
Each Borrower will derive benefit, directly and indirectly, from such collective
administration and credit availability because the successful operation of each
Borrower is enhanced by the continued successful performance of the integrated
group.
ARTICLE X
GENERAL PROVISIONS
10.1. Survival of Representations. All representations and
warranties of the Borrowers contained in this Agreement shall survive the making
of the Credit Extensions herein contemplated.
10.2. Governmental Regulation. Anything contained in this Agreement
to the contrary notwithstanding, no Lender shall be obligated to extend credit
to the Borrowers in violation of any limitation or prohibition provided by any
applicable statute or regulation.
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10.3. Headings. Section headings in the Loan Documents are for
convenience of reference only, and shall not govern the interpretation of any of
the provisions of the Loan Documents.
10.4. Entire Agreement. The Loan Documents embody the entire
agreement and understanding among the Borrowers, the Agents and the Lenders and
supersede all prior agreements and understandings among the Borrowers, the
Agents and the Lenders relating to the subject matter thereof other than the fee
letter described in Section 11.13.
10.5. Several Obligations; Benefits of this Agreement. The
respective obligations of the Lenders hereunder are several and not joint and no
Lender shall be the partner or agent of any other (except to the extent to which
the Agents are authorized to act as such). The failure of any Lender to perform
any of its obligations hereunder shall not relieve any other Lender from any of
its obligations hereunder. This Agreement shall not be construed so as to confer
any right or benefit upon any Person other than the parties to this Agreement
and their respective successors and assigns, provided, however, that the parties
hereto expressly agree that the Arranger shall enjoy the benefits of the
provisions of Sections 9.6, 9.10, 10.11, and 10.13 to the extent specifically
set forth therein and shall have the right to enforce such provisions on its own
behalf and in its own name to the same extent as if it were a party to this
Agreement.
10.6. Expenses; Indemnification.
(i) The Borrowers shall reimburse the Administrative Agent and the
Arranger for any costs, internal charges and out-of-pocket expenses (including
reasonable attorneys' and paralegals' fees, time charges and expenses of
attorneys and paralegals for the Administrative Agent and Arranger, which
attorneys and paralegals may or may not be employees of the Administrative Agent
or the Arranger, and expenses of and fees for other advisors and professionals
engaged by the Administrative Agent or the Arranger) paid or incurred by the
Administrative Agent or the Arranger in connection with the investigation,
preparation, negotiation, documentation, execution, delivery, syndication,
distribution (including, without limitation, via the internet), review,
amendment, modification, administration and collection of the Loan Documents.
The Borrowers also agree to reimburse the Agents, the Arranger and the Lenders
for any reasonable costs, internal charges and out-of-pocket expenses (including
reasonable attorneys' and paralegals' fees, time charges and expenses of
attorneys and paralegals for the Agents, the Arranger and the Lenders, which
attorneys and paralegals may be employees of the Agents, the Arranger or the
Lenders) paid or incurred by the Agents, the Arranger or any Lender in
connection with the collection and enforcement of the Loan Documents.
Notwithstanding anything herein or in any other Loan Document to the contrary,
any and all provisions in this Agreement or in any other Loan Document that
obligates the Company or any of its Subsidiaries to pay the attorney's fees or
expenses of another Person shall be deemed to obligate the Company or such
Subsidiary (as the case may be) to pay the actual and reasonable attorney's fees
and expenses of such Person and such fees and expenses shall be calculated
without giving effect to any statutory presumptions as to the reasonableness or
the amount thereof that may apply under applicable law.
(ii) The Borrowers hereby further agree to indemnify the Agents,
the Arranger, each Lender, their respective affiliates, and each of their
directors, officers and employees against all
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losses, claims, damages, penalties, judgments, liabilities and expenses
(including, without limitation, all reasonable expenses of litigation or
preparation therefor whether or not the Agents, the Arranger, any Lender or any
affiliate is a party thereto, and all reasonable attorneys' and paralegals'
fees, time charges and expenses of attorneys and paralegals of the party seeking
indemnification, which attorneys and paralegals may or may not be employees of
such party seeking indemnification) which any of them may pay or incur arising
out of or relating to this Agreement, the other Transaction Documents, the
Spin-Off Transactions or any other transactions contemplated hereby or the
direct or indirect application or proposed application of the proceeds of any
Credit Extension hereunder, except to the extent that they are determined in a
final, non-appealable judgment by a court of competent jurisdiction to have
resulted from the gross negligence or willful misconduct of the party seeking
indemnification or by reason of such indemnified party's breach of its
obligations under the Loan Documents, or are the result of claims of any Lender
against other Lenders or against the Administrative Agent not attributable to
the Company's or any of its Subsidiary's actions and for which the Company and
its Subsidiaries otherwise have no liability. The obligations of the Borrowers
under this Section 10.6 shall survive the termination of this Agreement.
10.7. Numbers of Documents. All statements, notices, closing
documents, and requests hereunder shall be furnished to the Administrative Agent
with sufficient counterparts so that the Administrative Agent may furnish one to
each of the Lenders, to the extent that the Administrative Agent deems
necessary.
10.8. Accounting. Except as provided to the contrary herein, all
accounting terms used herein shall be interpreted and all accounting
determinations hereunder shall be made in accordance with Agreement Accounting
Principles. If any changes in generally accepted accounting principles are
hereafter required or permitted and are adopted by the Company or any of its
Subsidiaries with the agreement of its independent certified public accountants
and such changes result in a change in the method of calculation of any of the
financial covenants, tests, restrictions or standards herein or in the related
definitions or terms used therein ("ACCOUNTING CHANGES"), the parties hereto
agree, at the Company's request, to enter into negotiations, in good faith, in
order to amend such provisions in a credit neutral manner so as to reflect
equitably such changes with the desired result that the criteria for evaluating
the Company's and its Subsidiaries' financial condition shall be the same after
such changes as if such changes had not been made; provided, however, until such
provisions are amended in a manner reasonably mutually satisfactory to the
Company, the Administrative Agent and the Required Lenders, no Accounting Change
shall be given effect in such calculations and all financial statements and
reports required to be delivered hereunder shall be prepared in accordance with
Agreement Accounting Principles without taking into account such Accounting
Changes. In the event such amendment is entered into, all references in this
Agreement to Agreement Accounting Principles shall mean generally accepted
accounting principles as of the date of such amendment.
10.9. Severability of Provisions. Any provision in any Loan Document
that is held to be inoperative, unenforceable, or invalid in any jurisdiction
shall, as to that jurisdiction, be inoperative, unenforceable, or invalid
without affecting the remaining provisions in that jurisdiction or the
operation, enforceability, or validity of that provision in any other
jurisdiction, and to this end the provisions of all Loan Documents are declared
to be severable.
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10.10. Nonliability of Lenders. The relationship between the
Borrowers on the one hand and the Lenders and the Agents on the other hand shall
be solely that of borrower and lender. None of the Agents, the Arranger or any
Lender shall have any fiduciary responsibilities to the Borrowers. None of the
Agents, the Arranger or any Lender undertakes any responsibility to the
Borrowers to review or inform the Borrowers of any matter in connection with any
phase of any Borrower's business or operations. The Borrowers agree that none of
the Agents, the Arranger or any Lender shall have liability to the Borrowers
(whether sounding in tort, contract or otherwise) for losses suffered by the
Borrowers in connection with, arising out of, or in any way related to, the
transactions contemplated and the relationship established by the Loan
Documents, or any act, omission or event occurring in connection therewith,
unless it is determined in a final, non-appealable judgment by a court of
competent jurisdiction that such losses resulted from the gross negligence or
willful misconduct or breach of the obligations under the Loan Documents of the
party from which recovery is sought. None of the Agents, the Arranger or any
Lender shall have any liability with respect to, and the Borrowers hereby waive,
releases and agrees not to xxx for, any special, indirect, consequential or
punitive damages suffered by the Borrowers in connection with, arising out of,
or in any way related to the Loan Documents or the transactions contemplated
thereby.
10.11. Confidentiality. Each Lender agrees to hold any confidential
information which it may receive from any Borrower pursuant to this Agreement in
confidence, except for disclosure to the following Persons for the following
purposes (and under the terms of confidence that are substantially the same as
this Section in the case of any disclosure covered by clause (i), (ii), (vi) or
(vii) below): (i) to other Lenders and their respective Affiliates in connection
with the transactions contemplated by this Agreement, (ii) to legal counsel,
accountants, and other professional advisors to such Lender in connection with
the transactions contemplated by this Agreement or to a Transferee or
prospective Transferee in connection with the transactions contemplated by this
Agreement, (iii) to regulatory officials as required by applicable law as
determined by such Lender (which determination shall be conclusive and binding
on all parties hereto), (iv) to any Person as required by law, regulation, or
legal process as determined by such Lender (which determination shall be
conclusive and binding on all parties hereto), (v) to any Person to the extent
required in any legal proceeding to which such Lender is a party as determined
by such Lender (which determination shall be conclusive and binding on all
parties hereto), (vi) to such Lender's direct or indirect contractual
counterparties in swap agreements relating to the Revolving Loans or to legal
counsel, accountants and other professional advisors to such counterparties, and
(vii) permitted by Section 13.4.
10.12. Lenders Not Utilizing Plan Assets. None of the consideration
used by any of the Lenders or Designated Lenders to make its Credit Extensions
constitutes for any purpose of ERISA or Section 4975 of the Code assets of any
"plan" as defined in Section 3(3) of ERISA or Section 4975 of the Code and the
rights and interests of each of the Lenders and Designated Lenders in and under
the Loan Documents shall not constitute such "plan assets" under ERISA.
10.13. Nonreliance. Each Lender hereby represents that it is not
relying on or looking to any margin stock (as defined in Regulation U) as
collateral in the extension or maintenance of the credit provided for herein.
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10.14. Disclosure. The Borrowers and each Lender hereby acknowledge
and agree that Bank One and/or its respective Affiliates and certain of the
other Lenders and/or their respective Affiliates from time to time may hold
investments in, make other loans to or have other relationships with the
Borrowers and its Affiliates.
10.15. Subordination of Intercompany Indebtedness. The Borrowers
agree that any and all claims of any Borrower against any Guarantor with respect
to any "Intercompany Indebtedness" (as hereinafter defined), any endorser,
obligor or any other guarantor of all or any part of the Obligations, or against
any of its properties shall be subordinate and subject in right of payment to
the prior payment, in full and in cash, of all Obligations; provided that, and
not in contravention of the foregoing, so long as no Default is continuing the
Borrowers may make loans to and receive payments in the ordinary course with
respect to such Intercompany Indebtedness to the extent otherwise permitted
under this Agreement. Notwithstanding any right of any Borrower to ask, demand,
xxx for, take or receive any payment from any Guarantor, all rights, liens and
security interests of the Borrowers, whether now or hereafter arising and
howsoever existing, in any assets of any Guarantor (whether constituting part of
any collateral given to any Agent or any Lender to secure payment of all or any
part of the Obligations or otherwise) shall be and are subordinated to the
rights of the Agents and the Lenders in those assets. No Borrower shall have any
right to possession of any such asset or to foreclose upon any such asset,
whether by judicial action or otherwise, unless and until all of the Obligations
(other than contingent indemnity obligations) shall have been fully paid and
satisfied (in cash) and all financing arrangements pursuant to all of the Loan
Documents have been terminated. If all or any part of the assets of any
Guarantor, or the proceeds thereof, are subject to any distribution, division or
application to the creditors of any Guarantor, whether partial or complete,
voluntary or involuntary, and whether by reason of liquidation, bankruptcy,
arrangement, receivership, assignment for the benefit of creditors or any other
action or proceeding, or if the business of any Guarantor is dissolved or if
substantially all of the assets of any Guarantor are sold (other than in an
transaction permitted under this Agreement), then, and in any such event (such
events being herein referred to as an "INSOLVENCY EVENT"), any payment or
distribution of any kind or character, either in cash, securities or other
property, which shall be payable or deliverable upon or with respect to any
indebtedness of any Guarantor to any Borrower ("INTERCOMPANY INDEBTEDNESS")
shall be paid or delivered directly to the Administrative Agent for application
on any of the Obligations, due or to become due, until such Obligations (other
than contingent indemnity obligations) shall have first been fully paid and
satisfied (in cash). Should any payment, distribution, security or instrument or
proceeds thereof be received by any Borrower upon or with respect to the
Intercompany Indebtedness after any Insolvency Event and prior to the
satisfaction of all of the Obligations (other than contingent indemnity
obligations) and the termination of all financing arrangements pursuant to all
of the Loan Documents, such Borrower shall receive and hold the same in trust,
as trustee, for the benefit of the Agents and the Lenders and shall forthwith
deliver the same to the Administrative Agent, for the benefit of the Agents and
the Lenders, in precisely the form received (except for the endorsement or
assignment of such Borrower where necessary), for application to any of the
Obligations, due or not due, and, until so delivered, the same shall be held in
trust by such Borrower as the property of the Agents and the Lenders. If any
Borrower fails to make any such endorsement or assignment to the Administrative
Agent, the Administrative Agent or any of its officers or employees is
irrevocably authorized to make the same. Each Borrower agrees that until the
Obligations (other than the contingent indemnity obligations) have been paid in
full (in
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cash) and satisfied and all financing arrangements pursuant to any Loan Document
among the Borrowers and the Agents and the Lenders have been terminated, no
Borrower will assign or transfer to any Person (other than the Administrative
Agent or any other transferee that agrees to be bound by the terms of this
Agreement in writing (in form and substance acceptable to the Administrative
Agent)) any claim any Borrower has or may have against any Guarantor.
ARTICLE XI
THE AGENTS
11.1. Appointment; Nature of Relationship. Bank One, NA is hereby
appointed by each of the Lenders as the Administrative Agent hereunder and under
each other Loan Document, and each of the Lenders irrevocably authorizes the
Administrative Agent to act as the contractual representative of such Lender
with the rights and duties expressly set forth herein and in the other Loan
Documents. Wachovia Bank, N.A. is hereby appointed by each of the Lenders as the
Syndication Agent hereunder and under each other Loan Document, and each of the
Lenders irrevocably authorizes the Syndication Agent to act as the contractual
representative of such Lender with the rights and duties expressly set forth
herein and in the other Loan Documents. Each Agent agrees to act as such
contractual representative upon the express conditions contained in this Article
XI. Notwithstanding the use of the defined term "ADMINISTRATIVE AGENT" or
"SYNDICATION AGENT", it is expressly understood and agreed that no Agent shall
have any fiduciary responsibilities to any Lender by reason of this Agreement or
any other Loan Document and that each Agent is merely acting as the contractual
representative of the Lenders with only those duties as are expressly set forth
in this Agreement and the other Loan Documents. In their capacities as the
Lenders' contractual representative, the Agents (i) do not hereby assume any
fiduciary duties to any of the Lenders, (ii) are "representatives" of the
Lenders within the meaning of Section 9-102 of the Uniform Commercial Code and
(iii) are acting as independent contractors, the rights and duties of which are
limited to those expressly set forth in this Agreement and the other Loan
Documents. Each of the Lenders hereby agrees to assert no claim against any
Agent on any agency theory or any other theory of liability for breach of
fiduciary duty, all of which claims each Lender hereby waives.
11.2. Powers. Each Agent shall have and may exercise such powers
under the Loan Documents as are specifically delegated to such Agent by the
terms of each thereof, together with such powers as are reasonably incidental
thereto. The Agents shall have no implied duties or fiduciary duties to the
Lenders or any obligation to the Lenders to take any action thereunder, except
any action specifically provided by the Loan Documents to be taken by the
applicable Agents.
11.3. General Immunity. No Agent or any of its respective directors,
officers, agents or employees shall be liable to the Borrowers, the Lenders or
any Lender for any action taken or omitted to be taken by it or them hereunder
or under any other Loan Document or in connection herewith or therewith except
to the extent such action or inaction is determined in a final, non-appealable
judgment by a court of competent jurisdiction to have arisen from the gross
negligence or willful misconduct of such Person.
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11.4. No Responsibility for Loans, Recitals, etc. No Agent or any of
its respective directors, officers, agents or employees shall be responsible for
or have any duty to ascertain, inquire into, or verify (a) any statement,
warranty or representation made in connection with any Loan Document or any
borrowing hereunder; (b) the performance or observance of any of the covenants
or agreements of any obligor under any Loan Document, including, without
limitation, any agreement by an obligor to furnish information directly to each
Lender; (c) the satisfaction of any condition specified in Article IV, except
receipt of items required to be delivered solely to the Agents or any of them;
(d) the existence or possible existence of any Default or Unmatured Default; (e)
the validity, enforceability, effectiveness, sufficiency or genuineness of any
Loan Document or any other instrument or writing furnished in connection
therewith; (f) the value, sufficiency, creation, perfection or priority of any
Lien in any collateral security; or (g) the financial condition of the Borrowers
or any guarantor of any of the Obligations or of any of the Company's or any
such guarantor's respective Subsidiaries. The Agents shall have no duty to
disclose to the Lenders information that is not required to be furnished by any
Borrower to any Agent at such time, but is voluntarily furnished by any Borrower
to such Agent (either in its capacity as an Agent or in its individual
capacity).
11.5. Action on Instructions of Lenders. Each Agent shall in all
cases be fully protected in acting, or in refraining from acting, hereunder and
under any other Loan Document in accordance with written instructions signed by
the Required Lenders (or all of the Lenders in the event that and to the extent
that this Agreement expressly requires such), and such instructions and any
action taken or failure to act pursuant thereto shall be binding on all of the
Lenders. The Lenders hereby acknowledge that the Agents shall be under no duty
to take any discretionary action permitted to be taken by any of them pursuant
to the provisions of this Agreement or any other Loan Document unless they shall
be requested in writing to do so by the Required Lenders (or all of the Lenders
in the event that and to the extent that this Agreement expressly requires
such). Each Agent shall be fully justified in failing or refusing to take any
action hereunder and under any other Loan Document unless it shall first be
indemnified to its satisfaction by the Lenders pro rata against any and all
liability, cost and expense that it may incur by reason of taking or continuing
to take any such action.
11.6. Employment of Agents and Counsel. Any Agent may execute any of
its respective duties as an Agent hereunder and under any other Loan Document by
or through employees, agents, and attorneys-in-fact and shall not be answerable
to the Lenders, except as to money or securities received by it or its
authorized agents, for the default or misconduct of any such agents or
attorneys-in-fact selected by it with reasonable care. Each Agent shall be
entitled to advice of counsel concerning the contractual arrangement between
such Agent and the Lenders and all matters pertaining to such Agent's duties
hereunder and under any other Loan Document.
11.7. Reliance on Documents; Counsel. Each Agent shall be entitled
to rely upon any Note, notice, consent, certificate, affidavit, letter,
telegram, statement, paper or document believed by it to be genuine and correct
and to have been signed or sent by the proper person or persons, and, in respect
to legal matters, upon the opinion of counsel selected by such Agent, which
counsel may be employees of such Agent.
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11.8. Agents' Reimbursement and Indemnification. The Lenders agree
to reimburse and indemnify each Agent ratably in proportion to the Lenders' Pro
Rata Shares of Aggregate Commitment (or, after the Commitment Termination Date,
of the Aggregate Outstanding Credit Exposure) (i) for any amounts not reimbursed
by the Borrowers for which such Agent is entitled to reimbursement by the
Borrowers under the Loan Documents, (ii) for any other expenses incurred by such
Agent on behalf of the Lenders, in connection with the preparation, execution,
delivery, administration and enforcement of the Loan Documents (including, but
not limited to, for any expenses incurred by such Agent in connection with any
dispute between such Agent and any Lender or between two or more of the Lenders)
and (iii) for any liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind and nature
whatsoever which 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 other
document delivered in connection therewith or the transactions contemplated
thereby (including, without limitation, for any such amounts incurred by or
asserted against such Agent in connection with any dispute between such Agent
and any Lender or between two or more of the Lenders), or the enforcement of any
of the terms of the Loan Documents or of any such other documents, provided that
(i) no Lender shall be liable for any of the foregoing to the extent any of the
foregoing is found in a final, non-appealable judgment in a court of competent
jurisdiction to have resulted from the gross negligence or willful misconduct of
such Agent and (ii) any indemnification required pursuant to Section 3.5(vii)
shall, notwithstanding the provisions of this Section 11.8, be paid by the
relevant Lender in accordance with the provisions thereof. The obligations of
the Lenders under this Section 11.8 shall survive payment of the Obligations and
termination of this Agreement.
11.9. Notice of Default. No Agent shall be deemed to have knowledge
or notice of the occurrence of any Default or Unmatured Default hereunder unless
such Agent has received written notice from a Lender or the Borrowers referring
to this Agreement describing such Default or Unmatured Default and stating that
such notice is a "notice of default". In the event that any Agent receives such
a notice, such Agent shall give prompt notice thereof to the Lenders.
11.10. Rights as a Lender. In the event any Agent is a Lender, such
Agent shall have the same rights and powers hereunder and under any other Loan
Document with respect to its Commitment and its Credit Extensions as any Lender
and may exercise the same as though it were not an Agent, and the term "Lender"
or "Lenders" shall, at any time when any Agent is a Lender, unless the context
otherwise indicates, include such Agent in its individual capacity. Each Agent
and its Affiliates may accept deposits from, lend money to, and generally engage
in any kind of trust, debt, equity or other transaction, in addition to those
contemplated by this Agreement or any other Loan Document, with the Company or
any of its Subsidiaries in which the Company or such Subsidiary is not
restricted hereby from engaging with any other Person.
11.11. Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon any Agent, the Arranger or any other
Lender and based on the financial statements prepared by the Company and such
other documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement and the other Loan
Documents. Each Lender also acknowledges that it will, independently and without
reliance upon any Agent, the Arranger or any other Lender and based on such
documents
66
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 and the
other Loan Documents.
11.12. Successor Agents. Any Agent may resign at any time by giving
written notice thereof to the Lenders and the Company, such resignation to be
effective upon the appointment of a successor Agent or, if no successor Agent
has been appointed, forty-five (45) days after the retiring Agent gives notice
of its intention to resign. Any Agent may be removed at any time with or without
cause by written notice received by such Agent from the Required Lenders, such
removal to be effective on the date specified by the Required Lenders. Upon any
such resignation or removal, the Required Lenders shall have the right to
appoint, on behalf of the Borrowers and the Lenders, a successor Agent. If no
successor Agent shall have been so appointed by the Required Lenders within
thirty (30) days after the resigning Agent's giving notice of its intention to
resign, then the resigning Agent may appoint, on behalf of the Borrowers and the
Lenders, a successor Agent. Notwithstanding the previous sentence, any Agent may
at any time, without the consent of any Borrower or any Lender, appoint any of
its Affiliates which is a commercial bank as its successor Agent hereunder. If
an Agent has resigned or been removed and no successor Agent has been appointed,
the Lenders may perform all the duties of such Agent hereunder and the Borrowers
shall make all payments in respect of the Obligations to the applicable Lender
if there is no Administrative Agent and for all other purposes shall deal
directly with the Lenders. No successor Agent shall be deemed to be appointed
hereunder until such successor Agent has accepted the appointment. Any such
successor Agent shall be a commercial bank having capital and retained earnings
of at least $100,000,000. Upon the acceptance of any appointment as an Agent
hereunder by a successor Agent, such successor Agent shall thereupon succeed to
and become vested with all the rights, powers, privileges and duties of the
resigning or removed Agent. Upon the effectiveness of the resignation or removal
of an Agent, the resigning or removed Agent shall be discharged from its duties
and obligations hereunder and under the Loan Documents. After the effectiveness
of the resignation or removal of an Agent, the provisions of this Article XI
shall continue in effect for the benefit of such Agent in respect of any actions
taken or omitted to be taken by it while it was acting as an Agent hereunder and
under the other Loan Documents. In the event that there is a successor to the
Administrative Agent by merger, or the Administrative Agent assigns its duties
and obligations to an Affiliate pursuant to this Section 11.12, then (a) the
term "Prime Rate" as used in this Agreement shall mean the prime rate, base rate
or other analogous rate of the new Administrative Agent and (b) the references
to "Bank One" in the definitions of "Eurodollar Base Rate" and "Prime Rate" and
in the last sentence of Section 2.13 shall be deemed to be a reference to such
successor Administrative Agent in its individual capacity.
11.13. Agent and Arranger Fees. The Company agrees to pay to the
Administrative Agent and the Arranger, for their respective accounts, the fees
agreed to by NSI, the Administrative Agent and the Arranger pursuant to that
certain letter agreement dated on or about February 20, 2002 or as otherwise
agreed from time to time.
11.14. Delegation to Affiliates. The Borrowers and the Lenders agree
that any Agent may delegate any of its duties under this Agreement to any of its
Affiliates. Any such Affiliate (and such Affiliate's directors, officers, agents
and employees) which performs duties in connection with this Agreement shall be
entitled to the same benefits of the indemnification,
67
waiver and other protective provisions to which the applicable Agent is entitled
under Articles IX and X.
11.15. Release of Guarantors. Upon the liquidation or dissolution of
any Guarantor, or the sale of all of the Capital Stock of any Guarantor owned by
the Company and its Subsidiaries, in each case which does not violate the terms
of any Loan Document or is consented to in writing by the Required Lenders or
all of the Lenders, as applicable, such Guarantor shall be automatically
released from all obligations under the Guaranty and any other Loan Documents to
which it is a party (other than contingent indemnity obligations), and upon at
least five (5) Business Days' prior written request by the Company, the
Administrative Agent shall (and is hereby irrevocably authorized by the Lenders
to) execute such documents as may be necessary to evidence the release of the
applicable Guarantor from its obligations under the Guaranty and such other Loan
Documents; provided, however, that (i) the Administrative Agent shall not be
required to execute any such document on terms which, in the Administrative
Agent's reasonable opinion, would expose the Administrative Agent to liability
or create any obligation or entail any consequence other than the release of
such Guarantor without recourse or warranty, and (ii) such release shall not in
any manner discharge, affect or impair the Obligations of the Borrowers, any
other Guarantor's obligations under the Guaranty, or, if applicable, any
obligations of the Company or any Subsidiary in respect of the proceeds of any
such sale retained by the Company or any Subsidiary.
ARTICLE XII
SETOFF; RATABLE PAYMENTS
12.1. Setoff. In addition to, and without limitation of, any rights
of the Lenders under applicable law, if any Default occurs, any and all deposits
(including all account balances, whether provisional or final and whether or not
collected or available) and any other Indebtedness at any time held or owing by
any Lender or (to the extent permitted by applicable law) any Affiliate of any
Lender to or for the credit or account of any Borrower may be offset and applied
toward the payment of the Obligations owing to such Lender, whether or not the
Obligations, or any part thereof, shall then be due.
12.2. Ratable Payments. If any Lender, whether by setoff or
otherwise, has payment made to it upon its Outstanding Credit Exposure (other
than payments received pursuant to Section 3.1, 3.2, 3.4 or 3.5) in a greater
proportion than that received by any other Lender, such Lender agrees, promptly
upon demand, to purchase a participation in the Aggregate Outstanding Credit
Exposure held by the other Lenders so that after such purchase each Lender will
hold its Pro Rata Share of the Aggregate Outstanding Credit Exposure. If any
Lender, whether in connection with setoff or amounts which might be subject to
setoff or otherwise, receives collateral or other protection for its Obligations
or such amounts which may be subject to setoff, such Lender agrees, promptly
upon demand, to take such action necessary such that all Lenders share in the
benefits of such collateral ratably in proportion to their respective Pro Rata
Shares of the Aggregate Outstanding Credit Exposure. In case any such payment is
disturbed by legal process, or otherwise, appropriate further adjustments shall
be made.
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ARTICLE XIII
BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS
13.1. Successors and Assigns; Designated Lenders.
13.1.1. Successors and Assigns. The terms and provisions of the Loan
Documents shall be binding upon and inure to the benefit of the Borrowers, the
Agents and the Lenders and their respective successors and assigns, except that
(i) no Borrower shall have the right to assign its rights or obligations under
the Loan Documents without the consent of all of the Lenders, and any such
assignment in violation of this Section 13.1.1 shall be null and void, and (ii)
any assignment by any Lender must be made in compliance with Section 13.3. The
parties to this Agreement acknowledge that clause (ii) of this Section 13.1.1
relates only to absolute assignments and does not prohibit assignments creating
security interests, including, without limitation, (x) any pledge or assignment
by any Lender of all or any portion of its rights under this Agreement and any
Note to a Federal Reserve Bank or (y) in the case of a Lender which is a fund,
any pledge or assignment of all or any portion of its rights under this
Agreement and any Note to its trustee in support of its obligations to its
trustee; provided, however, that no such pledge or assignment creating a
security interest shall release the transferor Lender from its obligations
hereunder unless and until the parties thereto have complied with the provisions
of Section 13.3. The Administrative Agent may treat the Person which made any
Revolving Loan or which holds any Note as the owner thereof for all purposes
hereof unless and until such Person complies with Section 13.3; provided,
however, that the Administrative Agent may in its discretion (but shall not be
required to) follow instructions from the Person which made any Revolving Loan
or which holds any Note to direct payments relating to such Revolving Loan or
Note to another Person. Any assignee of the rights to any Revolving Loan or any
Note agrees by acceptance of such assignment to be bound by all the terms and
provisions of the Loan Documents. Any request, authority or consent of any
Person, who at the time of making such request or giving such authority or
consent is the owner of the rights to any Revolving Loan (whether or not a Note
has been issued in evidence thereof), shall be conclusive and binding on any
subsequent holder or assignee of the rights to such Revolving Loan.
13.1.2. Designated Lenders.
(i) Subject to the terms and conditions set forth in this Section
13.1.2, any Lender may from time to time elect to designate an Eligible Designee
to provide all or any part of the Revolving Loans to be made by such Lender
pursuant to this Agreement; provided that the designation of an Eligible
Designee by any Lender for purposes of this Section 13.1.2 shall be subject to
the approval of the Administrative Agent (which consent shall not be
unreasonably withheld or delayed). Upon the execution by the parties to each
such designation of an agreement in the form of Exhibit G hereto (a "DESIGNATION
AGREEMENT") and the acceptance thereof by the Administrative Agent, the Eligible
Designee shall become a Designated Lender for purposes of this Agreement. The
Designating Lender shall thereafter have the right to permit the Designated
Lender to provide all or a portion of the Revolving Loans to be made by the
Designating Lender pursuant to the terms of this Agreement and the making of the
Revolving Loans or portion thereof shall satisfy the obligations of the
Designating Lender to the same extent, and as if, such Revolving Loan was made
by the Designating Lender. As to any
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Revolving Loan made by it, each Designated Lender shall have all the rights a
Lender making such Revolving Loan would have under this Agreement and otherwise;
provided, (x) that all voting rights under this Agreement shall be exercised
solely by the Designating Lender, (y) each Designating Lender shall remain
solely responsible to the other parties hereto for its obligations under this
Agreement, including the obligations of a Lender in respect of Revolving Loans
made by its Designated Lender and (z) no Designated Lender shall be entitled to
reimbursement under Article III hereof for any amount which would exceed the
amount that would have been payable by any Borrower to the Lender from which the
Designated Lender obtained any interests hereunder. No additional Notes shall be
required with respect to Revolving Loans provided by a Designated Lender;
provided, however, to the extent any Designated Lender shall advance funds, the
Designating Lender shall be deemed to hold the Notes in its possession as an
agent for such Designated Lender to the extent of the Revolving Loan funded by
such Designated Lender. Such Designating Lender shall act as administrative
agent for its Designated Lender and give and receive notices and communications
hereunder. Any payments for the account of any Designated Lender shall be paid
to its Designating Lender as administrative agent for such Designated Lender and
neither the Borrowers nor the Administrative Agent shall be responsible for any
Designating Lender's application of such payments. In addition, any Designated
Lender may (1) with notice to, but without the consent of the Borrowers or the
Administrative Agent, assign all or portions of its interests in any Revolving
Loans to its Designating Lender or to any financial institution consented to by
the Administrative Agent providing liquidity and/or credit facilities to or for
the account of such Designated Lender and (2) subject to advising any such
Person that such information is to be treated as confidential in accordance with
such Person's customary practices for dealing with confidential, non-public
information, disclose on a confidential basis any non-public information
relating to its Revolving Loans to any rating agency, commercial paper dealer or
provider of any guarantee, surety or credit or liquidity enhancement to such
Designated Lender.
(ii) Each party to this Agreement hereby agrees that it shall not
institute against, or join any other Person in instituting against, any
Designated Lender any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceeding or other proceedings under any federal or state
bankruptcy or similar law for one year and a day after the payment in full of
all outstanding senior indebtedness of any Designated Lender; provided that the
Designating Lender for each Designated Lender hereby agrees to indemnify, save
and hold harmless each other party hereto for any loss, cost, damage and expense
arising out of its inability to institute any such proceeding against such
Designated Lender. This Section 13.1.2 shall survive the termination of this
Agreement.
13.2. Participations.
13.2.1. Permitted Participants; Effect. Any Lender may, in the
ordinary course of its business and in accordance with applicable law, at any
time sell to one or more banks or other entities ("PARTICIPANTS") participating
interests in any Outstanding Credit Exposure of such Lender, any Note held by
such Lender, any Commitment of such Lender or any other interest of such Lender
under the Loan Documents. In the event of any such sale by a Lender of
participating interests to a Participant, such Lender's obligations under the
Loan Documents shall remain unchanged, such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations,
such Lender shall remain the owner of its Outstanding
70
Credit Exposure and the holder of any Note issued to it in evidence thereof for
all purposes under the Loan Documents, all amounts payable by the Borrowers
under this Agreement shall be determined as if such Lender had not sold such
participating interests, and the Borrowers and the Administrative Agent shall
continue to deal solely and directly with such Lender in connection with such
Lender's rights and obligations under the Loan Documents.
13.2.2. Voting Rights. Each Lender shall retain the sole right to
approve, without the consent of any Participant, any amendment, modification or
waiver of any provision of the Loan Documents other than any amendment,
modification or waiver with respect to any Credit Extension or Commitment in
which such Participant has an interest if such amendment, modification or waiver
would otherwise require the consent of all the Lenders under Section 8.2.
13.2.3. Benefit of Setoff. The Borrowers agree that, to the maximum
extent permitted by applicable law, each Participant shall be deemed to have the
right of setoff provided in Section 12.1 in respect of its participating
interest in amounts owing under the Loan Documents to the same extent as if the
amount of its participating interest were owing directly to it as a Lender under
the Loan Documents, provided that each Lender shall retain the right of setoff
provided in Section 12.1 with respect to the amount of participating interests
sold to each Participant. The Lenders agree to share with each Participant, and
each Participant, by exercising the right of setoff provided in Section 12.1,
agrees to share with each Lender, any amount received pursuant to the exercise
of its right of setoff, such amounts to be shared in accordance with Section
12.2 as if each Participant were a Lender.
13.3. Assignments.
13.3.1. Permitted Assignments. Any Lender may, in the ordinary course
of its business and in accordance with applicable law, at any time assign to one
or more banks or other entities ("PURCHASERS") all or any part of its rights and
obligations under the Loan Documents. Such assignment shall be evidenced by an
agreement substantially in the form of Exhibit C or in such other form as may be
agreed to by the parties thereto (each such agreement, an "ASSIGNMENT
AGREEMENT"). The consent of the Company and the Administrative Agent shall be
required prior to an Assignment Agreement becoming effective with respect to a
Purchaser which is not a Lender, an Affiliate thereof or a Designated Lender,
provided, however, that if a Default has occurred and is continuing, the consent
of the Company shall not be required. Such consent shall not be unreasonably
withheld or delayed. Each such assignment with respect to a Purchaser which is
not a Lender, an Affiliate thereof or a Designated Lender shall (unless each of
the Company and the Administrative Agent otherwise consents) be in an amount not
less than the lesser of (i) $5,000,000 and integral multiples of $1,000,000 in
excess thereof or (ii) the remaining amount of the assigning Lender's Commitment
(calculated as at the date of such assignment), or, if the Commitment
Termination Date has occurred, the remaining amount of the assigning Lender's
Outstanding Credit Exposure.
13.3.2. Effect; Effective Date. Upon (i) delivery to the
Administrative Agent of an Assignment Agreement, together with any consents
required by Section 13.3.1, and (ii) payment of a $4,000 fee to the
Administrative Agent for processing such assignment (unless such fee is waived
by the Administrative Agent or unless such assignment is made to such assigning
Lender's Affiliate), such assignment shall become effective on the effective
date specified in
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such assignment. The Assignment Agreement shall contain a representation by the
Purchaser to the effect that none of the consideration used to make the purchase
of the Commitment and Outstanding Credit Exposure under the applicable
Assignment Agreement constitutes "plan assets" as defined under ERISA and that
the rights and interests of the Purchaser in and under the Loan Documents will
not be "plan assets" under ERISA. On and after the effective date of such
assignment, such Purchaser shall for all purposes be a Lender party to this
Agreement and any other Loan Document executed by or on behalf of the Lenders
and shall have all the rights and obligations of a Lender under the Loan
Documents, to the same extent as if it were an original party hereto, and no
further consent or action by any Borrower, the Lenders or the Administrative
Agent shall be required to release the transferor Lender with respect to the
percentage of the Aggregate Commitment and Outstanding Credit Exposure assigned
to such Purchaser. Upon the consummation of any assignment to a Purchaser
pursuant to this Section 13.3.2, the transferor Lender, the Administrative Agent
and the Borrowers shall, if the transferor Lender or the Purchaser desires that
its Revolving Loans be evidenced by Notes, make appropriate arrangements so that
new Notes or, as appropriate, replacement Notes are issued to such transferor
Lender and new Notes or, as appropriate, replacement Notes, are issued to such
Purchaser, in each case in principal amounts reflecting their respective
Commitments (or, if the Commitment Termination Date has occurred, their
respective Outstanding Credit Exposure), as adjusted pursuant to such
assignment.
13.3.3. The Register. Notwithstanding anything to the contrary in this
Agreement, the Borrowers hereby designate the Administrative Agent, and the
Administrative Agent, hereby accepts such designation, to serve as the
Borrowers' contractual representative solely for purposes of this Section
13.3.3. In this connection, the Administrative Agent shall maintain at its
address referred to in Section 14.1 a copy of each Assignment Agreement
delivered to and accepted by it pursuant to this Section 13.3.3 and a register
(the "REGISTER") for the recordation of the names and addresses of the Lenders
and the Commitment of, principal amount of and interest on the Revolving Loans
owing to, each Lender from time to time and whether such Lender is an original
Lender or the assignee of another Lender pursuant to an assignment under this
Section 13.3. The entries in the Register shall be conclusive and binding for
all purposes, absent manifest error, and the Company and each of its
Subsidiaries, the Administrative Agent and the Lenders may treat each Person
whose name is recorded in the Register as a Lender hereunder for all purposes of
this Agreement. The Register shall be available for inspection by the Borrowers
or any Lender at any reasonable time and from time to time upon reasonable prior
notice.
13.4. Dissemination of Information. The Borrowers authorize each
Lender to disclose to any Participant or Purchaser or any other Person acquiring
an interest in the Loan Documents by operation of law (each a "TRANSFEREE") and
any prospective Transferee any and all information in such Lender's possession
concerning the creditworthiness of the Company and its Subsidiaries, including
without limitation any information contained in any reports or other information
delivered by any Borrower pursuant to Section 6.1; provided that each Transferee
and prospective Transferee agrees to be bound by Section 10.11 of this
Agreement.
13.5. Tax Treatment. If any interest in any Loan Document is
transferred to any Transferee which is organized under the laws of any
jurisdiction other than the United States or
72
any State thereof, the transferor Lender shall cause such Transferee,
concurrently with the effectiveness of such transfer, to comply with the
provisions of Section 3.5(iv).
ARTICLE XIV
NOTICES
14.1. Notices. Except as otherwise permitted by Section 2.14 with
respect to borrowing notices, all notices, requests and other communications to
any party hereunder shall be in writing (including electronic transmission,
facsimile transmission or similar writing) and shall be given to such party: (x)
in the case of the initial Borrowers, the Agents or any Lender party hereto as
of the Closing Date, at its respective address or facsimile number set forth on
the signature pages hereof, (y) in the case of any Lender that becomes a party
hereto pursuant to Section 13.3, at its address or facsimile number set forth in
the applicable Assignment Agreement or, if none is provided therein, in its
administrative questionnaire or (z) in the case of any party, at such other
address or facsimile number as such party may hereafter specify for the purpose
by notice to the Administrative Agent and the Company in accordance with the
provisions of this Section 14.1. Each such notice, request or other
communication shall be effective (i) if given by facsimile transmission, when
transmitted to the facsimile number specified in this Section and confirmation
of receipt is received, (ii) if given by United States mail, 72 hours after such
communication is deposited in such mails with first class postage prepaid,
addressed as aforesaid, or (iii) if given by any other means, when delivered
(or, in the case of electronic transmission, received) at the address specified
in this Section; provided that notices to the Administrative Agent under Article
II shall not be effective until received. For all purposes under this Agreement
and the other Loan Documents, (A) notice to the Administrative Agent from any
Borrower shall not be deemed to be effective until actually received by the
Administrative Agent, and (B) delivery of any notice to the Company shall be
deemed to have been delivered to the Borrowers.
14.2. Change of Address. The Borrowers, the Agents and any Lender
may each change the address for service of notice upon it by a notice in writing
to the other parties hereto.
ARTICLE XV
COUNTERPARTS
This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one agreement, and any of the parties
hereto may execute this Agreement by signing any such counterpart. This
Agreement shall be effective when it has been executed by the initial Borrowers,
the Agents and the Lenders and each party has notified the Agents by facsimile
transmission or telephone that it has taken such action.
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ARTICLE XVI
CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL
16.1. CHOICE OF LAW. THE LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING
A CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE GOVERNED AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS (INCLUDING, WITHOUT LIMITATION, 735 ILCS
105/5-1 ET SEQ., BUT OTHERWISE WITHOUT REGARD TO THE CONFLICT OF LAWS
PROVISIONS) OF THE STATE OF ILLINOIS, BUT GIVING EFFECT TO FEDERAL LAWS
APPLICABLE TO NATIONAL BANKS.
16.2. CONSENT TO JURISDICTION. EACH BORROWER HEREBY IRREVOCABLY
SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR
ILLINOIS STATE COURT SITTING IN CHICAGO, ILLINOIS IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENTS AND EACH BORROWER HEREBY
IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY
BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION
IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR
PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM.
NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE AGENTS OR ANY LENDER TO BRING
PROCEEDINGS AGAINST ANY BORROWER IN THE COURTS OF ANY OTHER JURISDICTION. ANY
JUDICIAL PROCEEDING BY ANY BORROWER AGAINST THE AGENTS OR ANY LENDER OR ANY
AFFILIATE OF THE AGENTS OR ANY LENDER INVOLVING, DIRECTLY OR INDIRECTLY, ANY
MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH ANY LOAN
DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN CHICAGO, ILLINOIS OR THE CITY IN
WHICH THE PRINCIPAL OFFICE OF SUCH AGENT, LENDER OR AFFILIATE, AS THE CASE MAY
BE, IS LOCATED.
16.3. WAIVER OF JURY TRIAL. TO THE MAXIMUM EXTENT PERMITTED BY
APPLICABLE LAW, THE BORROWERS, THE AGENTS AND EACH LENDER HEREBY WAIVE TRIAL BY
JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER
(WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF,
RELATED TO, OR CONNECTED WITH ANY LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED
THEREUNDER.
[Signature Pages Follow]
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EXHIBIT 1
IN WITNESS WHEREOF, the initial Borrowers, the Lenders and the Agents
have executed this Agreement as of the date first above written.
ACUITY BRANDS, INC., as a Borrower
By: /s/ Xxxxxx X. Xxxxx
-----------------------
Name: Xxxxxx X. Xxxxx
Title: Executive President and
Chief Financial Officer
Acuity Brands, Inc.
0000 Xxxxxxxxx Xxxxxx XX
Xxxxxxx, Xxxxxxx 00000-0000
Attention: Mr. Xxx Xxxxx
Phone: 000-000-0000
Fax: 000-000-0000
E-mail: xxx.xxxxx@xxxxxxxxxxxx.xxx
with a copy to:
Acuity Brands, Inc.
0000 Xxxxxxxxx Xxxxxx XX
Xxxxxxx, Xxxxxxx 00000-0000
Attention: Mr. Xxx Xxxxxx
Phone: 000-000-0000
Fax: 000-000-0000
E-mail: xxx.xxxxxx@xxxxxxxxxxxx.xxx
ACUITY LIGHTING GROUP, INC., as a
Borrower
By: /s/ Xxxxxx X. Xxxxx
-----------------------
Name: Xxxxxx X. Xxxxx
Title: Executive Vice President and
Chief Financial Officer
Acuity Lighting Group, Inc.
0000 Xxxxxxxxx Xxxxxx XX
Xxxxxxx, Xxxxxxx 00000-0000
Attention: Mr. Xxx Xxxxx
Phone: 000-000-0000
Fax: 000-000-0000
E-mail: xxx.xxxxx@xxxxxxxxxxxx.xxx
with a copy to:
Acuity Brands, Inc.
0000 Xxxxxxxxx Xxxxxx XX
Xxxxxxx, Xxxxxxx 00000-0000
Attention: Mr. Xxx Xxxxxx
Phone: 000-000-0000
Fax: 000-000-0000
E-mail: xxx.xxxxxx@xxxxxxxxxxxx.xxx
ACUITY SPECIALTY PRODUCTS GROUP, INC.,
as a Borrower
By: /s/ Xxxxxx X. Xxxxx
-----------------------
Name: Xxxxxx X. Xxxxx
Title: Executive Vice President
and Chief Financial Officer
Acuity Specialty Products Group, Inc.
0000 Xxxxxxxxx Xxxxxx XX
Xxxxxxx, Xxxxxxx 00000-0000
Attention: Mr. Xxx Xxxxx
Phone: 000-000-0000
Fax: 000-000-0000
E-mail: xxx.xxxxx@xxxxxxxxxxxx.xxx
with a copy to:
Acuity Brands, Inc
0000 Xxxxxxxxx Xxxxxx XX
Xxxxxxx, Xxxxxxx 00000-0000
Attention: Mr. Xxx Xxxxxx
Phone: 000-000-0000
Fax: 000-000-0000
E-mail: xxx.xxxxxx@xxxxxxxxxxxx.xxx
BANK ONE, NA (Main Office Chicago),
as the Administrative
Agent and as a Lender
By: /s/ Xxxxxx X. Xxxxxxxx
-----------------------
Name: Xxxxxx X. Xxxxxxxx
Title: Associate Director
0 Xxxx Xxx Xxxxx
Xxxxxxx, XX 00000
Attention: Xxx X. Xxxx
Phone: (000) 000-0000
Fax: (000) 000-0000
E-mail: xxx_x_xxxx@xxxxxxx.xxx
WACHOVIA BANK, N.A., as the Syndication
Agent and as a Lender
By: /s/ Xxxxxx X. Xxxxxxxx
-----------------------
Name: Xxxxxx X. Xxxxxxxx
Title: Director
000 Xxxxxxxxx Xxxxxx, X.X.
00xx Xxxxx
Xxxxxxx, XX 00000
Attention: Xxxxx X. Xxxx
Phone: (000) 000-0000
Fax: (000) 000-0000
E-mail: xxxxx.xxxx@xxxxxxxx.xxx
ING CAPITAL LLC, as a Lender
By: /s/ Xxxx Xxxxxx
------------------------
Name: Xxxx Xxxxxx
Title: Director
Address: 000 Xxxxxxxx Xxxx.
Xxxxx 000
Xxxxxxx, XX 00000
Attention: Xx. Xxxx Xxxxxx
Phone: 000 000-0000
Fax: 000 000-0000
E-mail: Xxxx.Xxxxxx@xxx.xxxxxxx.xxx
THE BANK OF NEW YORK, as a Lender
By: /s/ Xxxxx X. Xxxxxx
-----------------------
Name: Xxxxx X. Xxxxxx
Title: Vice President
Address: Xxx Xxxx Xxxxxx
00xx Xxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxx Xxxxxx, VP
Phone: (000) 000-0000
Fax: (000) 000-0000
E-mail: xxxxxxx@xxxxxxxx.xxx
BANK OF AMERICA, N.A., as a Lender
By: /s/ Xxxxxxx X. Xxxxxxxx
------------------------
Name: Xxxxxxx X. Xxxxxxxx
Title: Vice President
Bank of America Corporate Center
000 X. Xxxxx Xx., 17th Floor
NCI-007-17-12
Xxxxxxxxx, XX 00000
Attention: Xxxxxxx X. Xxxxxxxx
Phone: (000) 000-0000
Fax: (000) 000-0000
E-mail: xxxxxxx.x.xxxxxxxx@xxxxxxxxxxxxx.xxx
REGIONS BANK, as a Lender
By: /s/ Xxxxxxx X. Xxx
------------------------
Name: Xxxxxxx X. Xxx
Title: Senior Vice President
Regions Bank
0000 Xxxxxxx Xxxx
Xxxxxxx, XX 00000
Attention: W. Xxxx Xxxxx
Phone: (000) 000-0000 x000
Fax: (000) 000-0000
E-mail: xxxxxxx@xxxxxxxxxxx.xxx
PRICING SCHEDULE
===================== ================== ================== ================== ================== ==================
LEVEL I STATUS LEVEL II STATUS LEVEL III STATUS LEVEL IV STATUS LEVEL V STATUS
--------------------- ------------------ ------------------ ------------------ ------------------ ------------------
Applicable Margin 0.400% 0.500% 0.725% 0.950% 1.150%
(Eurodollar Rate)
--------------------- ------------------ ------------------ ------------------ ------------------ ------------------
Applicable Margin 0.0% 0.0% 0.0% 0.0% 0.0%
(Floating Rate)
--------------------- ------------------ ------------------ ------------------ ------------------ ------------------
Applicable Facility 0.100% 0.125% 0.150% 0.175% 0.225%
Fee Rate
--------------------- ------------------ ------------------ ------------------ ------------------ ------------------
Applicable 0.125% 0.125% 0.125% 0.125% 0.125%
Utilization Fee Rate
===================== ================== ================== ================== ================== ==================
On any date that the Leverage Ratio shall equal or exceed the amount
set forth in the table below, the Applicable Margin and the Applicable Facility
Fee Rate set forth above shall be increased by an amount set forth opposite such
Leverage Ratio:
================================ ============================== ========================
LEVERAGE RATIO APPLICABLE FACILITY APPLICABLE MARGIN
FEE INCREASE INCREASE
-------------------------------- ------------------------------ ------------------------
Greater than or equal to 3.00 0.05% 0.20%
to 1.00 and less than 3.25 to
1.00
-------------------------------- ------------------------------ ------------------------
Greater than or equal to 3.25 0.10% 0.40%
to 1.00
================================ ============================== ========================
The above described adjustments to the Applicable Margin and Applicable Facility
Fee Rate shall be determined in accordance with the foregoing table based on the
Company's Leverage Ratio as reflected in the then most recent Financials.
Adjustments, if any, to the Applicable Margin or Applicable Facility Fee Rate
shall be effective as of the fifth (5th) Business Day following the date the
Administrative Agent has received the applicable Financials. If the Company
fails to deliver the Financials to the Administrative Agent at the time required
pursuant to Section 6.1(i) or 6.1(ii), as applicable, then the adjustment to the
Applicable Margin and Applicable Facility Fee Rate shall be the highest
adjustment to the Applicable Margin and Applicable Facility Fee Rate set forth
in the foregoing table until the fifth (5th) Business Day following the date
such Financials are so delivered.
Notwithstanding anything herein to the contrary, from the Closing Date
to but not including the fifth (5th) Business Day following the date the
Administrative Agent has received the Financials for the period ending February
28, 2002, the Applicable Margin and Applicable Facility Fee Rate shall be
determined based upon a Leverage Ratio greater than or equal to 3.25 to 1.00.
For the purposes of this Schedule, the following terms have the following
meanings, subject to the final paragraph of this Schedule:
"FINANCIALS" means the annual or quarterly financial statements of the
Company delivered pursuant to Section 6.1(i) or 6.1(ii), respectively.
"LEVEL I STATUS" exists at any date if, on such date, the Company's
Xxxxx'x Rating is A3 or better or the Company's S&P Rating is A- or better.
"LEVEL II STATUS" exists at any date if, on such date, (i) the Company
has not qualified for Level I Status and (ii) the Company's Xxxxx'x Rating is
Baa1 or better or the Company's S&P Rating is BBB+ or better.
"LEVEL III STATUS" exists at any date if, on such date, (i) the Company
has not qualified for Level I Status or Level II Status and (ii) the Company's
Xxxxx'x Rating is Baa2 or better or Company's S&P rating is BBB or better.
"LEVEL IV STATUS" exists at any date if, on such date, (i) the Company
has not qualified for Level I Status, Level II Status or Level III Status and
(ii) the Company's Xxxxx'x Rating is Baa3 or better and the Company's S&P Rating
is BBB- or better.
"LEVEL V STATUS" exists at any date if, on such date, the Company has
not qualified for Level I Status, Level II Status, Level III Status or Level IV
Status.
"XXXXX'X RATING" means, at any time, the rating issued by Xxxxx'x and
then in effect with respect to the Company's senior unsecured long-term debt
securities without third-party credit enhancement.
"S&P RATING" means, at any time, the rating issued by S&P and then in
effect with respect to the Company's senior unsecured long-term debt securities
without third-party credit enhancement.
"STATUS" means Level I Status, Level II Status, Level III Status, Level
IV Status or Level V Status.
The Applicable Margin, Applicable Facility Fee Rate and the Applicable
Utilization Fee Rate shall be determined in accordance with the foregoing table
based on the Company's Status as determined from its then-current Xxxxx'x Rating
and S&P Rating. The credit rating in effect on any date for the purposes of this
Schedule is that in effect at the close of business on such date. If at any time
the Company has no Xxxxx'x Rating and no S&P Rating, Level V Status shall exist.
In the event that a split occurs between the two ratings, then the
rating corresponding to the higher of the two ratings shall apply. However, if
the split is greater than one level, then the pricing shall be based upon the
rating one level below the higher of the two ratings.
2
COMMITMENT SCHEDULE
LENDER COMMITMENT
------ ----------
Bank One, NA. $ 30,000,000
Wachovia Bank, N.A. $ 27,500,000
Bank of America, N.A. $ 12,500,000
The Bank of New York $ 12,500,000
ING Capital LLC $ 12,500,000
Regions Bank $ 7,500,000
AGGREGATE COMMITMENT $102,500,000.00
3
EXHIBIT A
FORMS OF OPINIONS
[Attached]
EXHIBIT B
COMPLIANCE CERTIFICATE
To: The Lenders parties to the
Credit Agreement Described Below
This Compliance Certificate is furnished pursuant to that certain
364-Day Revolving Credit Agreement dated as of April 8, 2002 (as amended,
modified, renewed or extended from time to time, the "Agreement") among Acuity
Brands, Inc., a Delaware corporation (the "Company"), the Subsidiary Borrowers
from time to time parties thereto, the lenders party thereto, and Bank One, NA
(Main Office -- Chicago), as Administrative Agent for the Lenders. Unless
otherwise defined herein, capitalized terms used in this Compliance Certificate
have the meanings ascribed thereto in the Agreement.
THE UNDERSIGNED HEREBY CERTIFIES IN HIS OR HER REPRESENTATIVE CAPACITY
ON BEHALF OF THE COMPANY THAT:
1. I am the duly elected of the Company;
2. I have reviewed the terms of the Agreement and I have made,
or have caused to be made under my supervision, a detailed review of the
transactions and conditions of the Company and its Subsidiaries during the
accounting period covered by the attached financial statements;
3. The examinations described in paragraph 2 did not disclose,
and I have no knowledge of, the existence of any condition or event which
constitutes a Default or Unmatured Default during or at the end of the
accounting period covered by the attached financial statements or as of the
date of this Certificate, except as set forth below; and
4. Schedule I attached hereto sets forth financial data and
computations evidencing the Company's compliance with certain covenants of the
Agreement, all of which data and computations are true, complete and correct.
5. Schedule II attached hereto sets forth the various reports
and deliveries which are required at this time under the Agreement and the
other Loan Documents and the status of compliance.
Described below are the exceptions, if any, to paragraph 3 by listing,
in detail, the nature of the condition or event, the period during which it has
existed and the action which the Company has taken, is taking, or proposes to
take with respect to each such condition or event:
The foregoing certifications, together with the computations set
forth in Schedule I hereto and the financial statements delivered with this
Certificate in support hereof, are made and delivered this day of
, .
ACUITY BRANDS, INC.
By:
--------------------------------------
Name:
Title:
SCHEDULE 1 TO COMPLIANCE CERTIFICATE
Compliance as of , with
Provisions of and of
the Agreement
I. FINANCIAL COVENANTS
A. MAXIMUM leverage RATIO (Section 6.18.1)
(1) Indebtedness For Borrowed Money = $
------------
(2) EBITDA
(a) EBIT (Item B(1) below) $
------------
(b) Depreciation expense + $
------------
(c) Amortization expense + $
------------
(d) EBITDA = $
------------
(3) Leverage Ratio (Ratio of 1 to 2(d)) to 1.00
-----
(4) State whether the Leverage Ratio exceeded the ratio
permitted under Section 6.18.1 Yes/No
B. MINIMUM INTEREST EXPENSE COVERAGE RATIO
(Section 6.18.2)
(1) EBIT:
(a) Net Income $
------------
(b) Interest Expense + $
------------
(c) Taxes + $
------------
(d) Other non-recurring non-cash charges + $
------------
(e) Other non-recurring non-cash credits - $
------------
(f) EBIT = $
------------
(2) Interest Expense $
------------
(3) Fixed Charge Coverage Ratio (Ratio of 1(f) to 2) to 1.00
-----
(4) State whether the Fixed Charge Coverage Ratio was less than
the ratio permitted under Section 6.18.2 Yes/No
II. OTHER MISCELLANEOUS PROVISIONS
A. SUBSIDIARY INDEBTEDNESS (Section 6.11)
(1) Aggregate principal amount of intercompany Indebtedness from
the Company or any Guarantor to any Subsidiary that is not a
Guarantor $
------------
(2) Aggregate principal amount of Receivables Facility Attributed
Indebtedness $
[Maximum: $200,000,000] ------------
(3) Aggregate principal amount of other Indebtedness incurred by
the Company and its Subsidiaries not otherwise permitted
under Section 6.11 $
[Maximum: 25% of Stockholders' Equity] ------------
B. Guarantors (Sections 6.10)
(1) Attached hereto is a list of all Domestic Subsidiaries of the
Company, which list includes an indication of whether such
Subsidiaries are parties to the Guaranty.
SCHEDULE II TO COMPLIANCE CERTIFICATE
Reports and Deliveries Currently Due
EXHIBIT C
ASSIGNMENT AGREEMENT
This Assignment Agreement (this "Assignment Agreement") between
(the "Assignor") and (the "Assignee")
is dated as of , 20 . The parties hereto agree as follows:
1. PRELIMINARY STATEMENT. The Assignor is a party to a Credit
Agreement (which, as it may be amended, modified, renewed or
extended from time to time is herein called the "Credit
Agreement") described in Item 1 of Schedule 1 attached hereto
("Schedule 1"). Capitalized terms used herein and not
otherwise defined herein shall have the meanings attributed
to them in the Credit Agreement.
2. ASSIGNMENT AND ASSUMPTION. The Assignor hereby sells and
assigns to the Assignee, and the Assignee hereby purchases
and assumes from the Assignor, an interest in and to the
Assignor's rights and obligations under the Credit Agreement
and the other Loan Documents, such that after giving effect
to such assignment the Assignee shall have purchased pursuant
to this Assignment Agreement the percentage interest
specified in Item 3 of Schedule 1 of all outstanding rights
and obligations under the Credit Agreement and the other Loan
Documents relating to the facilities listed in Item 3 of
Schedule 1. The Commitment (or Outstanding Credit Exposure,
if the applicable Commitment has been terminated) purchased
by the Assignee hereunder is set forth in Item 4 of
Schedule 1.
3. EFFECTIVE DATE. The effective date of this Assignment
Agreement (the "Effective Date") shall be the later of the
date specified in Item 5 of Schedule 1 or two (2) Business
Days (or such shorter period agreed to by the Administrative
Agent) after this Assignment Agreement, together with any
consents required under the Credit Agreement, are delivered
to the Administrative Agent. In no event will the Effective
Date occur if the payments required to be made by the
Assignee to the Assignor on the Effective Date are not made
on the proposed Effective Date.
4. PAYMENT OBLIGATIONS. In consideration for the sale and
assignment of the Commitment and/or Outstanding Credit
Exposure hereunder, the Assignee shall pay the Assignor, on
the Effective Date, the amount agreed to by the Assignor and
the Assignee. On and after the Effective Date, the Assignee
shall be entitled to receive from the Administrative Agent
all payments of principal, interest and fees with respect to
the interest assigned hereby. The Assignee will promptly
remit to the Assignor any interest on Outstanding Credit
Exposure and fees received from the Administrative Agent
which relate to the portion of the Commitment or Outstanding
Credit Exposure assigned to the Assignee hereunder for
periods prior to the Effective Date and not previously paid
by the Assignee to the Assignor. In the event that either
party hereto receives any payment to which the other party
hereto is entitled under this Assignment Agreement, then the
party receiving such amount shall promptly remit it to the
other party hereto.
5. RECORDATION FEE. The Assignor and Assignee each agree to pay
one-half of the recordation fee required to be paid to the
Administrative Agent in connection with this Assignment
Agreement unless otherwise specified in Item 6 of Schedule 1.
6. REPRESENTATIONS OF THE ASSIGNOR; LIMITATIONS ON THE
ASSIGNOR'S LIABILITY. The Assignor represents and warrants
that (i) it is the legal and beneficial owner of the interest
being assigned by it hereunder, (ii) such interest is free
and clear of any adverse claim created by the Assignor and
(iii) the execution and delivery of this Assignment Agreement
by the Assignor is duly authorized. It is understood and
agreed that the assignment and assumption hereunder are made
without recourse to the Assignor and that the Assignor makes
no other representation or warranty of any kind to the
Assignee. Neither the Assignor nor any of its officers,
directors, employees, agents or attorneys shall be
responsible for (i) the due execution, legality, validity,
enforceability, genuineness, sufficiency or collectability of
any Loan Document, including, without limitation, documents
granting the Assignor and the other Lenders a security
interest in assets of the Borrowers or any guarantor, (ii)
any representation, warranty or statement made in or in
connection with any of the Loan Documents, (iii) the
financial condition or creditworthiness of the Borrowers or
any guarantor, (iv) the performance of or compliance with any
of the terms or provisions of any of the Loan Documents, (v)
inspecting any of the property, books or records of the
Borrowers, (vi) the validity, enforceability, perfection,
priority, condition, value or sufficiency of any collateral
securing or purporting to secure the Loans or (vii) any
mistake, error of judgment, or action taken or omitted to be
taken in connection with the Loans or the Loan Documents.
7. REPRESENTATIONS AND UNDERTAKINGS OF THE ASSIGNEE. The
Assignee (i) confirms that it has received a copy of the
Credit Agreement, together with copies of the financial
statements requested by the Assignee and such other documents
and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Assignment
Agreement, (ii) agrees that it will, independently and
without reliance upon any Agent, the Arranger, the Assignor
or any other Lender and based on such documents and
information at it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not
taking action under the Loan Documents, (iii) appoints and
authorizes each Agent to take such action as agent on its
behalf and to exercise such powers under the Loan Documents
as are delegated to such Agent by the terms thereof, together
with such powers as are reasonably incidental thereto, (iv)
confirms that the execution and delivery of this Assignment
Agreement by the Assignee is duly authorized, (v) agrees that
it will perform in accordance with their terms all of the
obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender, (vi) agrees that
its payment instructions and notice instructions are as set
forth in the attachment to Schedule 1, (vii) confirms that
none of the funds, monies, assets or other consideration
being used to make the purchase and assumption hereunder are
"plan assets" as defined under ERISA and that its rights,
benefits and interests in and under the Loan Documents will
not be "plan assets" under ERISA, (viii) agrees to indemnify
and hold the Assignor harmless against all losses, costs and
expenses (including, but not limited to, reasonable
attorneys' fees) and liabilities incurred by the Assignor in
connection with or arising in any manner from the Assignee's
non-performance of the obligations assumed under this
Assignment Agreement, and (ix)
2
if applicable, attaches the forms prescribed by the Internal
Revenue Service of the United States certifying that the
Assignee is entitled to receive payments under the Loan
Documents without deduction or withholding of any United
States federal income taxes.
8. GOVERNING LAW. This Assignment Agreement shall be governed by
the internal law, including 735 ILCS 105/5-1 et seq., but
otherwise without regard to the law of conflicts, of the
State of Illinois.
9. NOTICES. Notices shall be given under this Assignment
Agreement in the manner set forth in the Credit Agreement.
For the purpose hereof, the addresses of the parties hereto
(until notice of a change is delivered) shall be the
addresses set forth in the attachment to Schedule 1.
10. COUNTERPARTS; DELIVERY BY FACSIMILE. This Assignment
Agreement may be executed in counterparts. Transmission by
facsimile of an executed counterpart of this Assignment
Agreement shall be deemed to constitute due and sufficient
delivery of such counterpart and such facsimile shall be
deemed to be an original counterpart of this Assignment
Agreement.
IN WITNESS WHEREOF, the duly authorized officers of the parties hereto
have executed this Assignment Agreement by executing Schedule 1 hereto as of
the date first above written.
3
SCHEDULE I
to Assignment Agreement
1. Description and Date of Credit Agreement: 364-Day Revolving Credit
Agreement, dated April 8, 2002, among Acuity Brands, Inc., a Delaware
corporation (the "Company"), the Subsidiary Borrowers from time to
time parties thereto, the Lenders named therein, and Bank One, NA
(Main Office -- Chicago), as the Administrative Agent, as the same may
be amended, restated, supplemented or otherwise modified from time to
time
2. Date of Assignment Agreement: , 20
3. Amounts (As of Date of Item 2 above):
a. Assignee's percentage of
the Aggregate
Commitment (or, if the
Aggregate Commitment %
has been terminated, of the -----
Aggregate Outstanding
Credit Exposure)
purchased under the
Assignment Agreement*
b. Amount of the Aggregate
Commitment (or, if the
Aggregate Commitment $
has been terminated, of the ------
Aggregate Outstanding
Credit Exposure)
purchased under the
Assignment Agreement**
4. Assignee's Commitment (or
Outstanding Credit Exposure with
respect to terminated
Commitments) purchased
hereunder: $
------
5. Proposed Effective Date:
-------
6. Non-standard Recordation Fee
Arrangement N/A***
[Assignor/Assignee
to pay 100% of fee]
Accepted and Agreed:
[NAME OF ASSIGNOR] [NAME OF ASSIGNEE]
By: By:
---------------------------- -----------------------------
Title: Title:
2
ACCEPTED AND CONSENTED TO*** ACCEPTED AND CONSENTED TO***
BY BY
ACUITY BRANDS, INC. BANK ONE, NA (MAIN OFFICE --
CHICAGO), as Administrative Agent
By: By:
---------------------------- -----------------------------
Title: Title:
* Percentage taken to 10 decimal places
** If fee is split 50-50, pick N/A as option
*** Delete if not required by Credit Agreement
Attachment to SCHEDULE 1 to ASSIGNMENT AGREEMENT
3
ADMINISTRATIVE INFORMATION SHEET
Attach Assignor's Administrative Information
Sheet, which must include notice addresses
for the Assignor and the Assignee
(Sample form shown below)
ASSIGNOR INFORMATION
CONTACT:
Name: Telephone No.:
Fax No.: Telex No.:
Answerback:
PAYMENT INFORMATION:
Name & ABA # of Destination Bank:
Account Name & Number for Wire Transfer:
Other Instructions:
ADDRESS FOR NOTICES FOR ASSIGNOR:
ASSIGNEE INFORMATION
CREDIT CONTACT:
Name: Telephone No.:
Fax No.: Telex No.:
Answerback:
KEY OPERATIONS CONTACTS:
-----------------------
Booking Installation: Booking Installation:
Name: Name:
Telephone No.: Telephone No.:
Fax No.: Fax No.:
Telex No.: Telex No.:
Answerback: Answerback:
PAYMENT INFORMATION:
2
Name & ABA # of Destination Bank:
Account Name & Number for Wire Transfer:
Other Instructions:
ADDRESS FOR NOTICES FOR ASSIGNEE:
3
BANK ONE INFORMATION
Assignee will be called promptly upon receipt of the signed agreement.
INITIAL FUNDING CONTACT: SUBSEQUENT OPERATIONS CONTACT:
Name: Name:
Telephone No.: (312) Telephone No.: (312)
Fax No.: (312) Fax No.: (312)
Bank One Telex No.: 190201 (Answerback:
FNBC UT)
INITIAL FUNDING STANDARDS:
Libor - Fund 2 days after rates are set.
BANK ONE WIRE INSTRUCTIONS: Bank One, NA, ABA # 000000000
LS2 Incoming Account # 481152860000
Ref: Acuity Brands, Inc.
ADDRESS FOR NOTICES FOR BANK ONE: 0 Xxxx Xxx Xxxxx, Xxxxxxx, XX 00000
Attn: Agency Compliance Division,
Suite IL1-0353
Fax No. (000) 000-0000 or (000) 000-0000
4
EXHIBIT D
LOAN/CREDIT RELATED MONEY TRANSFER INSTRUCTION
To: Bank One, NA (Main Office -- Chicago),
as Administrative Agent (the "Administrative Agent") under
the Credit Agreement Described Below.
Re: 364-Day Revolving Credit Agreement, dated April 8, 2002 (as
the same may be amended, restated, supplemented or otherwise
modified, the "Credit Agreement"), among Acuity Brands, Inc.,
a Delaware corporation (the "Company"), the Subsidiary
Borrowers from time to time parties thereto, the Lenders
named therein, and the Administrative Agent.
Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned thereto in the Credit Agreement.
The Administrative Agent is specifically authorized and directed to
act upon the following standing money transfer instructions with respect to the
proceeds of Advances or other extensions of credit from time to time until
receipt by the Administrative Agent of a specific written revocation of such
instructions by the applicable Borrower, provided, however, that the
Administrative Agent may otherwise transfer funds as hereafter directed in
writing by the applicable Borrower in accordance with Section 14.1 of the
Credit Agreement or based on any telephonic notice made in accordance with
Section 2.15 of the Credit Agreement.
Facility Identification Number(s):
Customer/Account Name: Acuity Brands, Inc.
Transfer Funds To:
For Account No.:
Reference/Attention To:
Authorized Officer (Customer Representative): Date:
(Please Print): Signature
--------------------------- --------------------------
Bank Officer Name Date:
-----------------------------------------
(Please Print): Signature
--------------------------- --------------------------
(Deliver Completed Form to Credit Support Staff For Immediate Processing)
EXHIBIT E
NOTE
[Date]
[Borrowers' Names], (the "Borrowers"), jointly and severally, promise
to pay to the order of (the "Lender") the
aggregate unpaid principal amount of all Loans made by the Lender to the
Borrowers pursuant to Article II of the Agreement (as hereinafter defined), in
immediately available funds at the main office of Bank One, NA in Chicago,
Illinois, as Administrative Agent, together with interest on the unpaid
principal amount hereof at the rates and on the dates set forth in the
Agreement. The Borrowers shall pay the principal of and accrued and unpaid
interest on the Loans in full on the Commitment Termination Date.
The Lender shall, and is hereby authorized to, record on the schedule
attached hereto, or to otherwise record in accordance with its usual practice,
the date and amount of each Loan and the date and amount of each principal
payment hereunder.
This Note is one of the Notes issued pursuant to, and is entitled to
the benefits of, the 364-Day Revolving Credit Agreement dated as of April 8,
2002 (which, as it may be amended, restated, supplemented or otherwise modified
and in effect from time to time, is herein called the "Agreement"), among the
Borrowers, the lenders party thereto, including the Lender and Bank One, NA
(Main Office -- Chicago), as Administrative Agent, to which Agreement reference
is hereby made for a statement of the terms and conditions governing this Note,
including the terms and conditions under which this Note may be prepaid or its
maturity date accelerated. Capitalized terms used herein and not otherwise
defined herein are used with the meanings attributed to them in the Agreement.
The Borrowers hereby waive presentment, demand, protest and any notice
of any kind. No failure to exercise and no delay in exercising, any rights
hereunder on the part of the holder hereof shall operate as a waiver of such
rights.
This Note shall be governed by and construed in accordance with the
internal laws of the State of Illinois, but giving effect to applicable federal
laws.
[BORROWERS' NAMES]
By:
--------------------------------------
Print Name:
Title:
SCHEDULE OF LOANS AND PAYMENTS
OF PRINCIPAL TO NOTE
DATED APRIL 8, 2002
Principal Maturity Principal
Amount of of Interest Amount Unpaid
Date Loan Period Paid Balance
---- ---------- ----------- --------- --------
LIST OF CLOSING DOCUMENTS
$205,000,000
CREDIT FACILITIES
TO
ACUITY BRANDS, INC.
AND CERTAIN SUBSIDIARY BORROWERS
APRIL 8, 2002
LIST OF CLOSING DOCUMENTS(1)
A. LOAN DOCUMENTS
1. 364-Day Revolving Credit Agreement (the "364-DAY CREDIT AGREEMENT") by
and among Acuity Brands, Inc., a Delaware corporation (the "COMPANY"),
the Subsidiary Borrowers from time to time parties thereto, the
institutions from time to time parties thereto as lenders (the
"LENDERS") and Bank One, NA (Main Office -- Chicago), in its capacity
as contractual representative capacity (the "ADMINISTRATIVE AGENT"),
evidencing a $102,500,000 364-day revolving credit facility to the
Borrowers from the Lenders.
EXHIBITS
EXHIBIT A -- Forms of Opinions
EXHIBIT B -- Form of Compliance Certificate
EXHIBIT C -- Form of Assignment Agreement
EXHIBIT D -- Form of Loan/Credit Related Money Transfer Instruction
EXHIBIT E -- Form of Promissory Note (if requested)
EXHIBIT F -- List of Closing Documents
EXHIBIT G -- Form of Designation Agreement
---------------
(1) Capitalized terms used herein and not defined herein shall have the
meanings assigned to such terms in the Credit Agreement.
BOLD/ITALICIZED documents to be prepared and/or provided by the
Borrowers and/or Borrowers' counsel.
EXHIBIT H -- Form of Guaranty
EXHIBIT I -- Form of Assumption Letter
EXHIBIT J -- Form of Commitment and Acceptance
SCHEDULES
PRICING SCHEDULE
COMMITMENT SCHEDULE
SCHEDULE 1.1 SUBSIDIARY BORROWERS
SCHEDULE 5.5 CERTAIN DISCLOSURES
SCHEDULE 5.8 SUBSIDIARIES
SCHEDULE 5.14 ERISA MATTERS
SCHEDULE 5.16 ENVIRONMENTAL MATTERS
SCHEDULE 6.11 EXISTING INDEBTEDNESS
SCHEDULE 6.13 EXISTING LIENS
2. 3-Year Revolving Credit Agreement (the "3-YEAR CREDIT
AGREEMENT") by and among the Company, the Subsidiary
Borrowers from time to time parties thereto, the Lenders and
the Administrative Agent, evidencing a $102,500,000
three-year revolving credit facility to the Borrowers from
the Lenders.
EXHIBITS
EXHIBIT A -- Forms of Opinions
EXHIBIT B -- Form of Compliance Certificate
EXHIBIT C -- Form of Assignment Agreement
EXHIBIT D -- Form of Loan/Credit Related Money
Transfer Instruction
EXHIBIT E -- Form of Promissory Note (if requested)
EXHIBIT F -- List of Closing Documents
EXHIBIT G -- Form of Designation Agreement
2
EXHIBIT H -- Form of Guaranty
EXHIBIT I -- Form of Assumption Letter
SCHEDULES
PRICING SCHEDULE
COMMITMENT SCHEDULE
SCHEDULE 1.1 SUBSIDIARY BORROWERS
SCHEDULE 2.21 TRANSITIONAL LETTERS OF CREDIT
SCHEDULE 5.5 CERTAIN DISCLOSURES
SCHEDULE 5.8 SUBSIDIARIES
SCHEDULE 5.14 ERISA MATTERS
SCHEDULE 5.16 ENVIRONMENTAL MATTERS
SCHEDULE 6.11 EXISTING INDEBTEDNESS
SCHEDULE 6.13 EXISTING LIENS
3. Guaranty (the "GUARANTY") executed by each of the Domestic
Subsidiaries of the Company identified on Appendix A attached
hereto (the "INITIAL GUARANTORS"), in favor of the
Administrative Agent.
4. Notes executed by the Borrowers in favor of each of the
Lenders, if any, which has requested a note pursuant to
Section 2.14 of each of the Credit Agreements (each a
"Requesting Lender") in the aggregate principal amount of
each such Requesting Lender's Commitment under the applicable
Credit Agreement.
B. CORPORATE DOCUMENTS
5. CERTIFICATES OF THE SECRETARY OR ASSISTANT SECRETARY OF EACH
BORROWER AND EACH OF THE INITIAL GUARANTORS CERTIFYING (I)
THE ARTICLES OR CERTIFICATES OF INCORPORATION OR COMPARABLE
CHARTER DOCUMENTS (CERTIFIED BY THE APPROPRIATE GOVERNMENTAL
OFFICER IN ITS JURISDICTION OF INCORPORATION AND ATTACHED
THERETO); (II) THE BY-LAWS OR COMPARABLE GOVERNANCE DOCUMENTS
(ATTACHED THERETO) OF EACH SUCH BORROWER AND EACH SUCH
INITIAL GUARANTOR AS IN EFFECT ON THE DATE OF SUCH
CERTIFICATION, (III) RESOLUTIONS OF THE BOARD OF DIRECTORS
(OR OTHER SIMILAR GOVERNING BODY) OF EACH SUCH BORROWER AND
EACH SUCH INITIAL GUARANTOR AUTHORIZING, INTER ALIA, THE
EXECUTION, DELIVERY AND PERFORMANCE OF EACH DOCUMENT TO WHICH
IT IS A PARTY, AND (IV) THE NAMES AND TRUE SIGNATURES OF THE
INCUMBENT OFFICERS OF EACH SUCH BORROWER
3
AND EACH SUCH INITIAL GUARANTOR AUTHORIZED TO SIGN THE
DOCUMENTS TO WHICH IT IS A PARTY AND, IN THE CASE OF THE
BORROWERS, AUTHORIZED TO REQUEST ADVANCES UNDER THE CREDIT
AGREEMENTS.
6. GOOD STANDING CERTIFICATE FOR EACH BORROWER AND EACH INITIAL
GUARANTOR FROM THE OFFICE OF THE APPROPRIATE GOVERNMENTAL
OFFICER OF THEIR RESPECTIVE JURISDICTION OF INCORPORATION
AND, IF APPLICABLE, THE OFFICE OF THE SECRETARY OF STATE OF
GEORGIA.
D. OPINIONS
7. OPINIONS OF COUNSEL OF THE BORROWERS AND THE INITIAL
GUARANTORS WITH RESPECT TO THE CREDIT AGREEMENTS AND THE
GUARANTY.
F. FINANCIAL INFORMATION
8. Financial Condition Certificate delivered by the Company's
chief financial officer, WITH APPROPRIATE SUPPORTING
INFORMATION ATTACHED.
G. CLOSING CERTIFICATES AND MISCELLANEOUS
9. OPENING COMPLIANCE CERTIFICATE EXECUTED BY AN AUTHORIZED
OFFICER OF THE COMPANY, SHOWING THE CALCULATIONS NECESSARY TO
DETERMINE COMPLIANCE WITH THE CREDIT AGREEMENTS ON THE
INITIAL BORROWING DATE.
10. WRITTEN MONEY TRANSFER INSTRUCTIONS.
11. OFFICER'S CERTIFICATE OF THE COMPANY CERTIFYING THAT ON THE
CLOSING DATE AND INITIAL BORROWING DATE (I) NO DEFAULT OR
UNMATURED DEFAULT HAS OCCURRED AND IS CONTINUING, (II) AS OF
SUCH DATE THE REPRESENTATIONS AND WARRANTIES OF THE COMPANY
CONTAINED IN THE CREDIT AGREEMENTS ARE TRUE AND CORRECT IN
ALL MATERIAL RESPECTS AS OF SUCH DATE, AND (III) AS OF SUCH
DATE THERE HAS BEEN NO CHANGE IN THE BUSINESS, PROPERTY,
FINANCIAL CONDITION OR OPERATIONS OF THE COMPANY AND ITS
SUBSIDIARIES TAKEN AS A WHOLE SINCE NOVEMBER 30, 2001.
12. LETTER(S) DESIGNATING CT CORPORATION AS AGENT FOR SERVICE OF
PROCESS FOR THE COMPANY AND ITS SUBSIDIARIES IN THE STATE OF
ILLINOIS FOR PURPOSES OF THE CREDIT AGREEMENTS AND THE OTHER
LOAN DOCUMENTS.
4
APPENDIX A
INITIAL GUARANTORS
COMPANY NAME INCORPORATED
Acuity Lighting Group, Inc. Delaware
Acuity Specialty Products Group, Inc. Delaware
5
EXHIBIT G
FORM OF DESIGNATION AGREEMENT
Dated , 20
Reference is made to the 364-Day Revolving Credit Agreement dated as
of April 8, 2002 (as amended or otherwise modified from time to time, the
"Credit Agreement") among Acuity Brands, Inc., a Delaware corporation (the
"Company"), the Subsidiary Borrowers from time to time parties thereto, the
lenders from time to time party thereto (the "Lenders") and Bank One, NA
(having its principal office in Chicago, IL), as Administrative Agent. Terms
defined in the Credit Agreement are used herein as therein defined.
(the "Designating Lender"), (the "Designated
Lender"), and the Company agree as follows:
1. The Designating Lender hereby designates the Designated Lender, and
the Designated Lender hereby accepts such designation, as its
Designated Lender under the Credit Agreement.
2. The Designating Lender makes no representations or warranty and
assumes no responsibility with respect to the financial condition of
the Borrowers or the performance or observance by the Borrowers of any
of their obligations under the Credit Agreement or any other
instrument or document furnished pursuant thereto.
3. The Designated Lender (i) confirms that it has received a copy of the
Credit Agreement, together with copies of the financial statements
referred to in Article VI thereof and such other documents and
information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Designation Agreement; (ii)
agrees that it will, independently and without reliance upon the
Administrative Agent, the Designating Lender or any other Lender and
based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or
not taking any action it may be permitted to take under the Credit
Agreement; (iii) confirms that it is an Eligible Designee; (iv)
appoints and authorizes the Designating Lender as its administrative
agent and attorney-in-fact and grants the Designating Lender an
irrevocable power of attorney to receive payments made for the benefit
of the Designated Lender under the Credit Agreement and to deliver and
receive all communications and notices under the Credit Agreement, if
any, that Designated Lender is obligated to deliver or has the right
to receive thereunder; (v) acknowledges that it is subject to and
bound by the confidentiality provisions of the Credit Agreement
(except as permitted under Section 13.4 thereof); and (vi)
acknowledges that the Designating Lender retains the sole right and
responsibility to vote under the Credit Agreement, including, without
limitation, the right to approve any amendment, modification or waiver
of any provision of the Credit Agreement, and agrees that the
Designated Lender shall be bound by all such votes, approvals,
amendments, modifications and waivers and all other agreements of the
Designating Lender pursuant to or in connection with the Credit
Agreement.
4. Following the execution of this Designation Agreement by the
Designating Lender, the Designated Lender and the Company, it will be
delivered to the Administrative Agent for acceptance and recording by
the Administrative Agent. The effective date of this Designation
Agreement shall be the date of acceptance thereof by the
Administrative Agent, unless otherwise specified on the signature page
hereto (the "Effective Date").
5. Upon such acceptance and recording by the Administrative Agent, as of
the Effective Date (a) the Designated Lender shall have the right to
make Loans as a Lender pursuant to Article II of the Credit Agreement
and the rights of a Lender related thereto and (b) the making of any
such Loans by the Designated Lender shall satisfy the obligations of
the Designating Lender under the Credit Agreement to the same extent,
and as if, such Loans were made by the Designating Lender.
6. Each party to this Designation Agreement hereby agrees that it shall
not institute against, or join any other Person in instituting
against, any Designated Lender any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceeding or other proceedings
under any federal or state bankruptcy or similar law for one year and
a day after payment in full of all outstanding senior indebtedness of
any Designated Lender; provided that the Designating Lender for each
Designated Lender hereby agrees to indemnify, save and hold harmless
each other party hereto for any loss, cost, damage and expense arising
out of its inability to institute any such proceeding against such
Designated Lender. This Section 6 of the Designation Agreement shall
survive the termination of this Designation Agreement and termination
of the Credit Agreement.
7. This Designation Agreement shall be governed by, and construed in
accordance with, the internal laws (including ss. 735 ILCS 105/5-1 et
seq. but otherwise without regard to the conflicts of laws provisions)
of the State of Illinois.
2
IN WITNESS WHEREOF, the parties have caused this Designation Agreement
to be executed by their respective officers hereunto duly authorized, as of the
date first above written.
Effective Date(2):
[NAME OF DESIGNATING LENDER]
By:
--------------------------------------
Name:
------------------------------------
Title:
-----------------------------------
[NAME OF DESIGNATED LENDER]
By:
--------------------------------------
Name:
------------------------------------
Title:
-----------------------------------
ACUITY BRANDS, INC.
By:
--------------------------------------
Name:
------------------------------------
Title:
-----------------------------------
Accepted and Approved this
day of ,
BANK ONE, NA (having its principal place
of business in Chicago, IL), as Administrative
Agent
By:
-------------------------------
Title:
----------------------------
---------------
(2) This date should be no earlier than the date of acceptance by the
Administrative Agent.
3
EXHIBIT H
FORM OF GUARANTY
GUARANTY
THIS GUARANTY (this "Guaranty") is made as of the 2nd day of April,
2002, by and among Acuity Lighting Group, Inc., a Delaware corporation and
Acuity Specialty Products Group, Inc., a Delaware corporation (the "Initial
Guarantors" and along with any additional Subsidiaries of the Borrower which
become parties to this Guaranty by executing a supplement hereto in the form
attached as Annex I, the "Guarantors") in favor of the Administrative Agent,
for the ratable benefit of the Holders of Obligations (as defined below), under
the Credit Agreements referred to below.
WITNESSETH:
WHEREAS, ACUITY BRANDS, INC., a Delaware corporation ( the "Company"),
the Subsidiary Borrowers from time to time parties thereto, the institutions
from time to time parties hereto as Lenders, and BANK ONE, NA, a national
banking association having its principal office in Chicago, Illinois, in its
capacity as contractual representative (the "Administrative Agent") for itself
and the other Lenders, have entered into (i) a certain 364-Day Revolving Credit
Agreement dated as of April 8, 2002 (as the same may be amended, modified,
supplemented and/or restated, and as in effect from time to time, the "364-Day
Credit Agreement") and (ii) a certain 3-Year Revolving Credit Agreement dated
as of April 8, 2002 (as the same may be amended, restated, supplemented or
otherwise modified, and as in effect from time to time, the "3-Year Credit
Agreement", and, together with the 364-Day Credit Agreement, the "Credit
Agreements"), providing, subject to the terms and conditions thereof, for
extensions of credit and other financial accommodations to be made by the
Lenders to the Borrower;
WHEREAS, it is a condition precedent to the initial extensions of
credit by the Lenders under each of the Credit Agreements that each of the
Guarantors (constituting all of the Subsidiaries of the Borrower required to
execute this Guaranty pursuant to Section 6.10 of the Credit Agreements)
execute and deliver this Guaranty, whereby each of the Guarantors shall
guarantee the payment when due of all "Obligations" (as defined in the Credit
Agreements), including, without limitation, all principal, interest, letter of
credit reimbursement obligations and other amounts that shall be at any time
payable by the Borrower under the Credit Agreements and the other Loan
Documents; and
WHEREAS, in consideration of the direct and indirect financial and
other support that one or more of the Borrowers has provided, and such direct
and indirect financial and other support as the Borrowers may in the future
provide, to the Guarantors, and in order to induce the Lenders and the
Administrative Agent to enter into the Credit Agreements, each of the
Guarantors is willing to guarantee the obligations of the Borrowers under the
Credit Agreements and the other Loan Documents;
NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
SECTION 1. Definitions. Terms defined in the Credit Agreements and not
otherwise defined herein have, as used herein, the respective meanings provided
for therein. For purposes of this Guaranty, "Holders of Obligations" means the
holders of the Obligations from time to time and shall include (i) each Lender
and LC Issuer in respect of its Credit Extensions, (ii) the Administrative
Agent and the Lenders in respect of all other present and future obligations
and liabilities of the Borrowers of every type and description arising under or
in connection with the Credit Agreements or any other Loan Document, (iii) each
indemnified party under Section 10.6 of the Credit Agreements in respect of the
obligations and liabilities of the Borrowers to such Person hereunder and under
the other Loan Documents, and (iv) their respective successors, transferees and
assigns. "Long-Term Holders of Obligations" means all of the Lenders under the
3-Year Credit Agreement. "Short-Term Lenders" means all of the Lenders under
the 364-Day Credit Agreement. "Lenders" shall mean, collectively, all of the
Long-Term Lenders and all of the Short-Term Lenders.
SECTION 2. Representations, Warranties and Covenants. Each of the
Guarantors represents and warrants (which representations and warranties shall
be deemed to have been renewed at the time of the making, conversion or
continuation of any Loan or issuance of any Facility LC) that:
(A) It is a corporation, partnership or limited
liability company duly and properly incorporated or organized, as the
case may be, validly existing and (to the extent such concept applies
to such entity) in good standing under the laws of its jurisdiction of
incorporation or organization and has all requisite authority to
conduct its business in each jurisdiction in which its business is
conducted, except to the extent that the failure to have such standing
or authority could not reasonably be expected to have a Material
Adverse Effect.
(B) It (to the extent applicable) has the power and
authority and legal right to execute and deliver this Guaranty and to
perform its obligations hereunder. The execution and delivery by each
Guarantor of this Guaranty and the performance by each of its
obligations hereunder have been duly authorized by proper proceedings,
and this Guaranty constitutes a legal, valid and binding obligation of
each Guarantor, respectively, enforceable against such Guarantor,
respectively, in accordance with its terms, except as enforceability
may be limited by bankruptcy, insolvency or similar laws affecting the
enforcement of creditors' rights generally or by general equitable
principles.
(C) Neither the execution and delivery by it of this
Guaranty, nor the consummation of the transactions herein
contemplated, nor compliance with the provisions hereof will (i)
violate any law, rule, regulation, order, writ, judgment, injunction,
decree or award binding on it or its articles or certificate of
incorporation, limited liability company or partnership agreement,
certificate of partnership, articles or certificate of organization,
by-laws, or operating agreement or other management agreement, as the
case may be, or the provisions of any indenture, instrument or
2
agreement to which the Company or any of its Subsidiaries is a party
or is subject, or by which it, or its Property, is bound, or (ii)
conflict with, or constitute a default under, or result in, or
require, the creation or imposition of any Lien in, of or on its
Property pursuant to the terms of, any such indenture, instrument or
agreement. No order, consent, adjudication, approval, license,
authorization, or validation of, or filing, recording or registration
with, or exemption by, or other action in respect of any governmental
or public body or authority, or any subdivision thereof, which has not
been obtained by it, is required to be obtained by it in connection
with the execution, delivery and performance by it of, or the
legality, validity, binding effect or enforceability against it of,
this Guaranty.
In addition to the foregoing, each of the Guarantors
covenants that, so long as any Lender has any Commitment outstanding
under either of the Credit Agreements or any amount payable under the
Credit Agreements or any other Guaranteed Obligations shall remain
unpaid, it will, and, if necessary, will enable the Borrowers to,
fully comply with those covenants and agreements of the Borrowers
applicable to such Guarantor set forth in the Credit Agreements.
SECTION 3. The Guaranty. Each of the Guarantors hereby unconditionally
guarantees, jointly with the other Guarantors and severally, the full and
punctual payment when due (whether at stated maturity, upon acceleration or
otherwise) of the Obligations, including, without limitation, (i) the principal
of and interest on each Advance made to any of the Borrowers pursuant to the
Credit Agreements, (ii) any Reimbursement Obligations of the Borrowers, and
(iii) all other amounts payable by any of the Borrowers or any of their
Subsidiaries under the Credit Agreements and the other Loan Documents (all of
the foregoing being referred to collectively as the "Guaranteed Obligations").
Upon failure by any Borrower or any of their respective Affiliates, as
applicable, to pay punctually any such amount, each of the Guarantors agrees
that it shall forthwith on demand pay such amount at the place and in the
manner specified in the Credit Agreements or the relevant Loan Document, as the
case may be. Each of the Guarantors hereby agrees that this Guaranty is an
absolute, irrevocable and unconditional guaranty of payment and is not a
guaranty of collection.
SECTION 4. Guaranty Unconditional. The obligations of each of the
Guarantors hereunder shall be unconditional and absolute and, without limiting
the generality of the foregoing, shall not be released, discharged or otherwise
affected by:
(A) any extension, renewal, settlement, indulgence,
compromise, waiver or release of or with respect to the Guaranteed
Obligations or any part thereof or any agreement relating thereto, or
with respect to any obligation of any other guarantor of any of the
Guaranteed Obligations, whether (in any such case) by operation of law
or otherwise, or any failure or omission to enforce any right, power
or remedy with respect to the Guaranteed Obligations or any part
thereof or any agreement relating thereto, or with respect to any
obligation of any other guarantor of any of the Guaranteed
Obligations;
(B) any modification or amendment of or supplement to
either of the Credit Agreements or any other Loan Document, including,
without limitation, any such
3
amendment which may increase the amount of, or the interest rates
applicable to, any of the Obligations guaranteed hereby;
(C) any release, surrender, compromise, settlement,
waiver, subordination or modification, with or without consideration,
of any other guaranties with respect to the Guaranteed Obligations or
any part thereof, or any other obligation of any person or entity with
respect to the Guaranteed Obligations or any part thereof, or any
nonperfection or invalidity of any direct or indirect security for the
Guaranteed Obligations;
(D) any change in the corporate, partnership or other
existence, structure or ownership of any Borrower or any other
guarantor of any of the Guaranteed Obligations, or any insolvency,
bankruptcy, reorganization or other similar proceeding affecting any
Borrower or any other guarantor of the Guaranteed Obligations, or any
of their respective assets or any resulting release or discharge of
any obligation of any Borrower or any other guarantor of any of the
Guaranteed Obligations;
(E) the existence of any claim, setoff or other rights
which the Guarantors may have at any time against any Borrower, any
other guarantor of any of the Guaranteed Obligations, the
Administrative Agent, any Holder of Obligations or any other Person,
whether in connection herewith or in connection with any unrelated
transactions, provided that nothing herein shall prevent the assertion
of any such claim by separate suit or compulsory counterclaim;
(F) the enforceability or validity of the Guaranteed
Obligations or any part thereof or the genuineness, enforceability or
validity of any agreement relating thereto or with respect to any
collateral securing the Guaranteed Obligations or any part thereof, or
any other invalidity or unenforceability relating to or against an
Borrower or any other guarantor of any of the Guaranteed Obligations,
for any reason related to either of the Credit Agreements any other
Loan Document, or any provision of applicable law or regulation
purporting to prohibit the payment by any Borrower or any other
guarantor of the Guaranteed Obligations, of any of the Guaranteed
Obligations;
(G) the failure of the Administrative Agent to take any
steps to perfect and maintain any security interest in, or to preserve
any rights to, any security or collateral for the Guaranteed
Obligations, if any;
(H) the election by, or on behalf of, any one or more of
the Holders of Obligations, in any proceeding instituted under Chapter
11 of Title 11 of the United States Code (11 U.S.C. 101 et seq.) (the
"Bankruptcy Code"), of the application of Section 1111(b)(2) of the
Bankruptcy Code;
(I) any borrowing or grant of a security interest by any
Borrower, as debtor-in-possession, under Section 364 of the Bankruptcy
Code;
(J) the disallowance, under Section 502 of the
Bankruptcy Code, of all or any portion of the claims of any of the
Holders of Obligations or the Administrative Agent for repayment of
all or any part of the Guaranteed Obligations;
(K) the failure of any other Guarantor to sign or become
party to this Guaranty or any amendment, change, or reaffirmation
hereof; or
4
(L) any other act or omission to act or delay of any
kind by any Borrower, any other guarantor of the Guaranteed
Obligations, the Administrative Agent, any Holder of Obligations or
any other Person or any other circumstance whatsoever which might, but
for the provisions of this Section 4, constitute a legal or equitable
defense to, or discharge of, any Guarantor's obligations hereunder.
SECTION 5. Discharge Only Upon Payment In Full: Reinstatement In
Certain Circumstances. Each of the Guarantors' obligations hereunder shall
remain in full force and effect until all Guaranteed Obligations (other than
contingent indemnity obligations) shall have been paid in full in cash and the
Commitments and all Facility LCs issued under the 3-Year Credit Agreement shall
have terminated or expired. If at any time any payment of the principal of or
interest on any Advance, any Reimbursement Obligation or any other amount
payable by any Borrower or any other party under the Credit Agreements or any
other Loan Document is rescinded or must be otherwise restored or returned upon
the insolvency, bankruptcy or reorganization of any Borrower or otherwise, each
of the Guarantors' obligations hereunder with respect to such payment shall be
reinstated as though such payment had been due but not made at such time.
SECTION 6. General Waivers. Each of the Guarantors irrevocably waives
acceptance hereof, presentment, demand or action on delinquency, protest, the
benefit of any statutes of limitations and, to the fullest extent permitted by
law, any notice not provided for herein, as well as any requirement that at any
time any action be taken by any Person against any Borrower, any other
guarantor of the Guaranteed Obligations, or any other Person.
SECTION 7. Subordination of Subrogation; Subordination of Intercompany
Indebtedness.
(A) Subordination of Subrogation. Until the Guaranteed
Obligations have been indefeasibly paid in full in cash, the
Guarantors (i) shall have no right of subrogation with respect to such
Guaranteed Obligations and (ii) waive any right to enforce any remedy
which the Holders of Obligations, LC Issuers or the Administrative
Agent now have or may hereafter have against any Borrower, any
endorser or any guarantor of all or any part of the Guaranteed
Obligations or any other Person, and the Guarantors waive any benefit
of, and any right to participate in, any security or collateral given
to the Holders of Obligations, the LC Issuers and the Administrative
Agent to secure the payment or performance of all or any part of the
Guaranteed Obligations or any other liability of the Borrowers to the
Holders of Obligations or LC Issuers. Should any Guarantor have the
right, notwithstanding the foregoing, to exercise its subrogation
rights, each Guarantor hereby expressly and irrevocably (A)
subordinates any and all rights at law or in equity to subrogation,
reimbursement, exoneration, contribution, indemnification or set off
that the Guarantor may have to the indefeasible payment in full in
cash of the Guaranteed Obligations and (B) waives any and all defenses
available to a surety, guarantor or accommodation co-obligor until the
Guaranteed Obligations are indefeasibly paid in full in cash. Each
Guarantor acknowledges and agrees that this subordination is intended
to benefit the Administrative Agent and the Holders of Obligations and
shall not limit or otherwise affect such Guarantor's liability
hereunder or
5
the enforceability of this Guaranty, and that the Administrative
Agent, the Holders of Obligations and their respective successors and
assigns are intended third party beneficiaries of the waivers and
agreements set forth in this Section 7(a).
(B) Subordination of Intercompany Indebtedness. Each
Guarantor agrees that any and all claims of such Guarantor against
either any Borrower or any other Guarantor hereunder (each an
"Obligor") with respect to any "Intercompany Indebtedness" (as
hereinafter defined), any endorser, obligor or any other guarantor of
all or any part of the Guaranteed Obligations, or against any of its
properties shall be subordinate and subject in right of payment to the
prior payment, in full and in cash, of all Guaranteed Obligations;
provided that, and not in contravention of the foregoing, so long as
no Default is continuing the Guarantors may make loans to and receive
payments in the ordinary course with respect to such Intercompany
Indebtedness to the extent otherwise permitted under the Credit
Agreements. Notwithstanding any right of any Guarantor to ask, demand,
xxx for, take or receive any payment from any Obligor, all rights,
liens and security interests of such Guarantor, whether now or
hereafter arising and howsoever existing, in any assets of any other
Obligor shall be and are subordinated to the rights of the Holders of
Obligations and the Administrative Agent in those assets. No Guarantor
shall have any right to possession of any such asset or to foreclose
upon any such asset, whether by judicial action or otherwise, unless
and until all of the Guaranteed Obligations (other than contingent
indemnity obligations) shall have been fully paid and satisfied (in
cash) and all financing arrangements pursuant to any Loan Document
have been terminated. If all or any part of the assets of any Obligor,
or the proceeds thereof, are subject to any distribution, division or
application to the creditors of such Obligor, whether partial or
complete, voluntary or involuntary, and whether by reason of
liquidation, bankruptcy, arrangement, receivership, assignment for the
benefit of creditors or any other action or proceeding, or if the
business of any such Obligor is dissolved or if substantially all of
the assets of any such Obligor are sold (other than in an transaction
permitted under the Credit Agreements), then, and in any such event
(such events being herein referred to as an "Insolvency Event"), any
payment or distribution of any kind or character, either in cash,
securities or other property, which shall be payable or deliverable
upon or with respect to any indebtedness of any Obligor to any
Guarantor ("Intercompany Indebtedness") shall be paid or delivered
directly to the Administrative Agent for application on any of the
Guaranteed Obligations, due or to become due, until such Guaranteed
Obligations (other than contingent indemnity obligations) shall have
first been fully paid and satisfied (in cash). Should any payment,
distribution, security or instrument or proceeds thereof be received
by the applicable Guarantor upon or with respect to the Intercompany
Indebtedness after any Insolvency Event and prior to the satisfaction
of all of the Guaranteed Obligations (other than contingent indemnity
obligations) and the termination of all financing arrangements
pursuant to any Loan Document among the Borrower and the Holders of
Obligations, such Guarantor shall receive and hold the same in trust,
as trustee, for the benefit of the Holders of Obligations and shall
forthwith deliver the same to the Administrative Agent, for the
benefit of the Holders of Obligations, in precisely the form received
(except for the endorsement or assignment of the Guarantor where
necessary), for application to any of the Guaranteed Obligations, due
or not due, and, until so delivered, the same shall be held in trust
by the Guarantor as the property of the Holders of Obligations. If any
such Guarantor fails to
6
make any such endorsement or assignment to the Administrative Agent,
the Administrative Agent or any of its officers or employees is
irrevocably authorized to make the same. Each Guarantor agrees that
until the Guaranteed Obligations (other than the contingent indemnity
obligations) have been paid in full (in cash) and satisfied and all
financing arrangements pursuant to any Loan Document among the
Borrower and the Holders of Obligations have been terminated, no
Guarantor will assign or transfer to any Person (other than the
Administrative Agent or any other transferee that agrees to be bound
by the terms of this Agreement in writing (in form and substance
acceptable to the Administrative Agent)) any claim any such Guarantor
has or may have against any Obligor.
SECTION 8. Contribution with Respect to Guaranteed Obligations.
(A) To the extent that any Guarantor shall make a
payment under this Guaranty (a "Guarantor Payment") which, taking into
account all other Guarantor Payments then previously or concurrently
made by any other Guarantor, exceeds the amount which otherwise would
have been paid by or attributable to such Guarantor if each Guarantor
had paid the aggregate Guaranteed Obligations satisfied by such
Guarantor Payment in the same proportion as such Guarantor's
"Allocable Amount" (as defined below) (as determined immediately prior
to such Guarantor Payment) bore to the aggregate Allocable Amounts of
each of the Guarantors as determined immediately prior to the making
of such Guarantor Payment, then, following indefeasible payment in
full in cash of the Guaranteed Obligations and termination of the
Credit Agreements, such Guarantor shall be entitled to receive
contribution and indemnification payments from, and be reimbursed by,
each other Guarantor for the amount of such excess, pro rata based
upon their respective Allocable Amounts in effect immediately prior to
such Guarantor Payment.
(B) As of any date of determination, the "Allocable
Amount" of any Guarantor shall be equal to the maximum amount of the
claim which could then be recovered from such Guarantor under this
Guaranty without rendering such claim voidable or avoidable under
Section 548 of Chapter 11 of the Bankruptcy Code or under any
applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent
Conveyance Act or similar statute or common law.
(C) This Section 8 is intended only to define the
relative rights of the Guarantors, and nothing set forth in this
Section 8 is intended to or shall impair the obligations of the
Guarantors, jointly and severally, to pay any amounts as and when the
same shall become due and payable in accordance with the terms of this
Guaranty.
(D) The parties hereto acknowledge that the rights of
contribution and indemnification hereunder shall constitute assets of
the Guarantor to which such contribution and indemnification is owing.
(E) The rights of the indemnifying Guarantors against
other Guarantors under this Section 8 shall be exercisable upon the
full and indefeasible payment of the Guaranteed Obligations in cash
and the termination of the Credit Agreements.
7
SECTION 9. Stay of Acceleration. If acceleration of the time for
payment of any amount payable by the Borrowers under the Credit Agreements or
any other Loan Document is stayed upon the insolvency, bankruptcy or
reorganization of any Borrower, all such amounts otherwise subject to
acceleration under the terms of the Credit Agreements or any other Loan
Document shall nonetheless be payable by each of the Guarantors hereunder
forthwith on demand by the Administrative Agent.
SECTION 10. Notices. All notices, requests and other communications to
any party hereunder shall be given in the manner prescribed in Article XIV of
the Credit Agreements with respect to the Administrative Agent at its notice
address therein and with respect to any Guarantor at the address set forth
below or such other address or telecopy number as such party may hereafter
specify for such purpose by notice to the Administrative Agent in accordance
with the provisions of such Article XIV.
Notice Address for Guarantors:
c/o Acuity Brands, Inc.
0000 Xxxxxxxxx Xxxxxx XX
Xxxxxxx, Xxxxxxx 00000-0000
Attention: Mr. Xxx Xxxxx
Phone: 000-000-0000
Fax: 000-000-0000
E-mail: xxx.xxxxx@xxxxxxxxxxxx.xxx
with a copy to:
Acuity Brands, Inc
0000 Xxxxxxxxx Xxxxxx XX
Xxxxxxx, Xxxxxxx 00000-0000
Attention: Mr. Xxx Xxxxxx
Phone: 000-000-0000
Fax: 000-000-0000
E-mail: xxx.xxxxxx@xxxxxxxxxxxx.xxx
SECTION 11. No Waivers. No failure or delay by the Administrative
Agent or any Holder of Obligations in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. The rights and remedies provided in
this Guaranty, the Credit Agreements and the other Loan Documents shall be
cumulative and not exclusive of any rights or remedies provided by law.
SECTION 12. Successors and Assigns. This Guaranty is for the benefit
of the Administrative Agent and the Holders of Obligations and their respective
successors and permitted assigns, provided, that no Guarantor shall have any
right to assign its rights or obligations hereunder without the consent of all
of the Lenders, and any such assignment in violation of this Section 12 shall
be null and void; and in the event of an assignment of any
8
amounts payable under the Credit Agreement or the other Loan Documents in
accordance with the respective terms thereof, the rights hereunder, to the
extent applicable to the indebtedness so assigned, may be transferred with such
indebtedness. This Guaranty shall be binding upon each of the Guarantors and
their respective successors and assigns.
SECTION 13. Changes in Writing. Other than in connection with the
addition of additional Subsidiaries, which become parties hereto by executing a
supplement hereto in the form attached as Annex I, neither this Guaranty nor
any provision hereof may be changed, waived, discharged or terminated orally,
but only in writing signed by each of the Guarantors and the Administrative
Agent with the consent of the Required Lenders under the 3-Year Credit
Agreement (or all of the Long-Term Lenders if required pursuant to the terms of
Section 8.2 of the 3-Year Credit Agreement) and with the consent of the
Required Lenders under the 364-Day Credit Agreement (or all of the Short-Term
Lenders if required pursuant to the terms of Section 8.2 of the 364-Day Credit
Agreement).
SECTION 14. GOVERNING LAW. THIS GUARANTY SHALL BE CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS (INCLUDING, WITHOUT LIMITATION, 735 ILCS
105/5-1 ET SEQ., BUT OTHERWISE WITHOUT REGARD TO THE CONFLICT OF LAWS
PROVISIONS) OF THE STATE OF ILLINOIS, BUT GIVING EFFECT TO FEDERAL LAWS
APPLICABLE TO NATIONAL BANKS.
SECTION 15. CONSENT TO JURISDICTION; SERVICE OF PROCESS; JURY TRIAL.
(A) CONSENT TO JURISDICTION. EACH GUARANTOR HEREBY IRREVOCABLY
SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR
ILLINOIS STATE COURT SITTING IN CHICAGO, ILLINOIS IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS GUARANTY AND EACH GUARANTOR HEREBY
IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY
BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION
IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR
PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM.
NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE ADMINISTRATIVE AGENT, ANY LC ISSUER
OR ANY LENDER TO BRING PROCEEDINGS AGAINST ANY GUARANTOR IN THE COURTS OF ANY
OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY ANY GUARANTOR AGAINST THE
ADMINISTRATIVE AGENT, ANY LC ISSUER OR ANY LENDER OR ANY AFFILIATE OF THE
ADMINISTRATIVE AGENT, ANY LC ISSUER OR ANY LENDER INVOLVING, DIRECTLY OR
INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH
THIS GUARANTY OR ANY OTHER LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN
CHICAGO, ILLINOIS OR THE CITY IN WHICH THE PRINCIPAL OFFICE OF THE
ADMINISTRATIVE AGENT, LENDER OR AFFILIATE, AS THE CASE MAY BE, IS LOCATED.
9
(B) WAIVER OF JURY TRIAL. EACH GUARANTOR HEREBY WAIVES TRIAL BY JURY
IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER
(WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF,
RELATED TO, OR CONNECTED WITH THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR THE
RELATIONSHIP ESTABLISHED THEREUNDER.
SECTION 16. No Strict Construction. The parties hereto have
participated jointly in the negotiation and drafting of this Guaranty. In the
event an ambiguity or question of intent or interpretation arises, this
Guaranty shall be construed as if drafted jointly by the parties hereto and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Guaranty.
SECTION 17. Taxes, Expenses of Enforcement, etc.
(A) Taxes.
(i) All payments by any Guarantor to or for the account of
any Lender, any LC Issuer or the Administrative Agent hereunder shall be made
free and clear of and without deduction for any and all Taxes. If any Guarantor
shall be required by law to deduct any Taxes from or in respect of any sum
payable hereunder to any Lender, any LC Issuer or the Administrative Agent, (a)
the sum payable shall be increased as necessary so that after making all
required deductions (including deductions applicable to additional sums payable
under this Section 17(A)) such Lender, such LC Issuer or the Administrative
Agent (as the case may be) receives an amount equal to the sum it would have
received had no such deductions been made, (b) such Guarantor shall make such
deductions, (c) such Guarantor shall pay the full amount deducted to the
relevant authority in accordance with applicable law and (d) such Guarantor
shall furnish to the Administrative Agent the original copy of a receipt
evidencing payment thereof within thirty (30) days after such payment is made.
(ii) In addition, the Guarantors hereby agree to pay any
present or future stamp or documentary taxes and any other excise or property
taxes, charges or similar levies which arise from any payment made hereunder or
from the execution or delivery of, or otherwise with respect to, this Guaranty
("Other Taxes").
(iii) The Guarantors hereby agree to indemnify the
Administrative Agent, the LC Issuers and each Lender for the full amount of
Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes
imposed on amounts payable under this Section 17(A)) paid by the Administrative
Agent, the LC Issuers or such Lender and any liability (including penalties,
interest and expenses) arising therefrom or with respect thereto. Payments due
under this indemnification shall be made within thirty (30) days of the date
the Administrative Agent, the LC Issuers or such Lender makes demand therefor.
(iv) Each Lender that is not incorporated under the laws of
the United States of America or a state thereof (each a "Non-U.S. Lender")
agrees that it will, not more than ten (10) Business Days after the date on
which it becomes a party to the Credit Agreements, (i) deliver to each of the
Company and the Administrative Agent two (2) duly completed copies of United
10
States Internal Revenue Service Form W-8BEN or W-8ECI, certifying in either
case that such Lender is entitled to receive payments under this Guaranty
without deduction or withholding of any United States federal income taxes, and
(ii) deliver to each of the Company and the Administrative Agent a United
States Internal Revenue Form W-8 or W-9, as the case may be, and certify that
it is entitled to an exemption from United States backup withholding tax. Each
Non-U.S. Lender further undertakes to deliver to each of the Company and the
Administrative Agent (x) renewals or additional copies of such form (or any
successor form) on or before the date that such form expires or becomes
obsolete, and (y) after the occurrence of any event requiring a change in the
most recent forms so delivered by it, such additional forms or amendments
thereto as may be reasonably requested by the Company or the Administrative
Agent. All forms or amendments described in the preceding sentence shall
certify that such Lender is entitled to receive payments under this Guaranty
without deduction or withholding of any United States federal income taxes,
unless an event (including without limitation any change in treaty, law or
regulation) has occurred prior to the date on which any such delivery would
otherwise be required which renders all such forms inapplicable or which would
prevent such Lender from duly completing and delivering any such form or
amendment with respect to it and such Lender advises the Company and the
Administrative Agent in writing that it is not capable of receiving payments
without any deduction or withholding of United States federal income tax.
(v) For any period during which a Non-U.S. Lender has failed
to provide the Company with an appropriate form pursuant to clause (iv) above
(unless such failure is due to a change in treaty, law or regulation, or any
change in the interpretation or administration thereof by any governmental
authority, occurring subsequent to the date on which a form originally was
required to be provided), such Non-U.S. Lender shall not be entitled to
indemnification under this Section 17(A) with respect to Taxes imposed by the
United States, and each Guarantor, if required by law to do so, shall be
permitted to withhold such Taxes and pay the same to the appropriate United
States taxing authority; provided that, should a Non-U.S. Lender which is
otherwise exempt from or subject to a reduced rate of withholding tax become
subject to Taxes because of its failure to deliver a form required under clause
(iv), above, the Guarantors shall take such steps as such Non-U.S. Lender shall
reasonably request to assist such Non-U.S. Lender to recover such Taxes.
(vi) Any Lender that is entitled to an exemption from or
reduction of withholding tax with respect to payments under this Guaranty or
any Note pursuant to the law of any relevant jurisdiction or any treaty shall
deliver to the Company (with a copy to the Administrative Agent), at the time
or times prescribed by applicable law, such properly completed and executed
documentation prescribed by applicable law as will permit such payments to be
made without withholding or at a reduced rate.
(vii) If the IRS or any other governmental authority of the
United States or any other country or any political subdivision thereof asserts
a claim that the Administrative Agent did not properly withhold tax from
amounts paid to or for the account of any Lender (because the appropriate form
was not delivered or properly completed, because such Lender failed to notify
the Administrative Agent of a change in circumstances which rendered its
exemption from withholding ineffective, or for any other reason), such Lender
shall indemnify the Administrative Agent fully for all amounts paid, directly
or indirectly, by the Administrative Agent as tax, withholding therefor, or
otherwise, including penalties and interest, and including taxes imposed
11
by any jurisdiction on amounts payable to the Administrative Agent under this
subsection, together with all costs and expenses related thereto (including
attorneys' fees and time charges of attorneys for the Administrative Agent,
which attorneys may be employees of the Administrative Agent). The obligations
of the Lenders under this Section 17(A)(vii) shall survive the payment of the
Obligations and termination of this Guaranty.
(viii) Within 60 days after receipt of the written request of
the Company, each Lender, LC Issuer and Agent shall execute and deliver such
certificates, forms or other documents, which in each such case can be
reasonably furnished by such Lender, LC Issuer or Agent consistent with the
facts and which are reasonably necessary to assist any Guarantor in applying
for refunds of Taxes remitted by such Guarantor hereunder.
(ix) Each Lender, LC Issuer and Agent shall also use
commercially reasonable efforts to avoid and minimize any amounts which might
otherwise be payable by any Guarantor pursuant to this Section 17(A), except to
the extent that such Lender, LC Issuer or Agent, determines that such efforts
would be disadvantageous to such Lender, LC Issuer or Agent, as determined by
such Lender, LC Issuer or Agent and which determination, if made in good faith,
shall be binding and conclusive on all parties hereto.
(x) To the extent that the payment of any Lender's, LC
Issuer's or Agent's Taxes by any Guarantor hereunder gives rise from time to
time to a Tax Benefit to such Lender, LC Issuer or Agent in any jurisdiction
other than the jurisdiction which imposed such Taxes, such Lender, LC Issuer or
Agent shall pay to such Guarantor the amount of each such Tax Benefit so
recognized or received. The amount of each Tax Benefit and, therefore, payment
to such Guarantor will be determined from time to time by the relevant Lender,
LC Issuer or Agent in it sole discretion, which determination shall be binding
and conclusive on all parties hereto. Each such payment will be due and payable
by such Lender, LC Issuer or Agent to such Guarantor within a reasonable time
after the filing of the tax return in which such Tax Benefit is recognized or,
in the case of any tax refund, after the refund is received; provided, however,
if at any time thereafter such Lender, LC Issuer or Agent, is required to
rescind such Tax Benefit or such Tax Benefit is otherwise disallowed or
nullified, the relevant Guarantor shall promptly, after notice thereof from
such Lender, LC Issuer or Agent, repay to such Lender, LC Issuer or Agent the
amount of such Tax Benefit previously paid to such Lender, LC Issuer or Agent
and which has been rescinded, disallowed or nullified. For purposes hereof, the
term "Tax Benefit" shall mean the amount by which any Lender's, LC Issuer's or
Agent's income tax liability for the taxable period in question is reduced
below what would have been payable had the relevant Guarantor not been required
to pay such Lender's LC Issuer's or Agent's Taxes hereunder
(B) Expenses of Enforcement, Etc. Subject to the terms of the
Credit Agreements, during the continuance of a Default under the 3-Year Credit
Agreement, the Long-Term Lenders shall have the right at any time, and, during
the continuance of a Default under the 364-Day Credit Agreement, the Short-Term
Lenders shall have the right at any time, to direct the Administrative Agent to
commence enforcement proceedings with respect to the Guaranteed Obligations.
The Guarantors agree to reimburse the Administrative Agent and the Holders of
Obligations for any reasonable costs and out-of-pocket expenses (including
reasonable attorneys' fees and time charges of attorneys for the Administrative
Agent and the Holders of Obligations, which attorneys may be employees of the
Administrative Agent or the Holders of Obligations)
12
paid or incurred by the Administrative Agent or any Holders of Obligation in
connection with the collection and enforcement of amounts due under the Loan
Documents, including without limitation this Guaranty. The Administrative Agent
agrees to distribute payments received from any of the Guarantors hereunder to
the Holders of Obligations on a pro rata basis for application in accordance
with the terms of the respective Credit Agreements. Notwithstanding anything
herein or in any other Loan Document to the contrary, any and all provisions in
this Guaranty or in any other Loan Document that obligates any Guarantor to pay
the attorney's fees or expenses of another Person shall be deemed to obligate
such Guarantor to pay the actual and reasonable attorney's fees and expenses of
such Person and such fees and expenses shall be calculated without giving
effect to any statutory presumptions as to the reasonableness or the amount
thereof that may apply under applicable law.
SECTION 18. Setoff. During the continuation of a Default, each Holder
of Obligations and the Administrative Agent may, without notice to any
Guarantor and regardless of the acceptance of any security or collateral for
the payment hereof, appropriate and apply toward the payment of all or any part
of the Guaranteed Obligations (i) any indebtedness due or to become due from
such Holder of Obligations or the Administrative Agent to any Guarantor, and
(ii) any moneys, credits or other property belonging to any Guarantor, at any
time held by or coming into the possession of such Holder of Obligations or the
Administrative Agent or any of their respective affiliates.
SECTION 19. Financial Information. Each Guarantor hereby assumes
responsibility for keeping itself informed of the financial condition of the
Borrowers and any and all endorsers and/or other Guarantors of all or any part
of the Guaranteed Obligations, and of all other circumstances bearing upon the
risk of nonpayment of the Guaranteed Obligations, or any part thereof, that
diligent inquiry would reveal, and each Guarantor hereby agrees that none of
the Holders of Obligations or the Administrative Agent shall have any duty to
advise such Guarantor of information known to any of them regarding such
condition or any such circumstances. In the event any Holder of Obligations or
the Administrative Agent, in its sole discretion, undertakes at any time or
from time to time to provide any such information to a Guarantor, such Holder
of Obligations or the Administrative Agent shall be under no obligation (i) to
undertake any investigation not a part of its regular business routine, (ii) to
disclose any information which such Holder of Obligations or the Administrative
Agent, pursuant to accepted or reasonable commercial finance or banking
practices, wishes to maintain confidential or (iii) to make any other or future
disclosures of such information or any other information to such Guarantor.
SECTION 20. Severability. Wherever possible, each provision of this
Guaranty shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Guaranty shall be prohibited by or
invalid under such law, such provision shall be ineffective to the extent of
such prohibition or invalidity without invalidating the remainder of such
provision or the remaining provisions of this Guaranty.
SECTION 21. Merger. This Guaranty represents the final agreement of
each of the Guarantors with respect to the matters contained herein and may not
be contradicted by evidence
13
of prior or contemporaneous agreements, or subsequent oral agreements, between
the Guarantor and any Holder of Obligations or the Administrative Agent.
SECTION 22. Headings. Section headings in this Guaranty are for
convenience of reference only and shall not govern the interpretation of any
provision of this Guaranty.
SECTION 23. Release of Guarantors. Upon the liquidation or dissolution
of any Guarantor, or the sale of all of the Capital Stock of any Guarantor
owned by the Company and its Subsidiaries, in each case which does not violate
the terms of any Loan Document or is consented to in writing by the Required
Lenders or all of the Lenders, as applicable, such Guarantor shall be
automatically released from all obligations under this Guaranty and any other
Loan Documents to which it is a party (other than contingent indemnity
obligations), and upon at least five (5) Business Days' prior written request
by the Company, the Administrative Agent shall (and is hereby irrevocably
authorized by the Lenders to) execute such documents as may be necessary to
evidence the release of the applicable Guarantor from its obligations under
this Guaranty and such other Loan Documents; provided, however, that (i) the
Administrative Agent shall not be required to execute any such document on
terms which, in the Administrative Agent's reasonable opinion, would expose the
Administrative Agent to liability or create any obligation or entail any
consequence other than the release of such Guarantor without recourse or
warranty, and (ii) such release shall not in any manner discharge, affect or
impair the Obligations of the Borrowers, any other Guarantor's obligations
under this Guaranty, or, if applicable, any obligations of the Company or any
Subsidiary in respect of the proceeds of any such sale retained by the Company
or any Subsidiary.
REMAINDER OF PAGE INTENTIONALLY BLANK
14
IN WITNESS WHEREOF, the Initial Guarantors have caused this Guaranty
to be duly executed by its authorized officer as of the day and year first
above written.
ACUITY LIGHTING GROUP, INC.
By:
--------------------------------------
Its:
-------------------------------------
ACUITY SPECIALTY PRODUCTS GROUP, INC.
By:
--------------------------------------
Its:
-------------------------------------
SIGNATURE PAGE TO GUARANTY
ANNEX I TO GUARANTY
Reference is hereby made to the Guaranty (the "Guaranty") made as of
the 2nd day of April, 2002, by and among Acuity Lighting Group, Inc., a
Delaware corporation and Acuity Specialty Products Group, Inc., a Delaware
corporation (the "Initial Guarantors" and along with any additional
Subsidiaries of the Borrower, which become parties thereto and together with
the undersigned, the "Guarantors") in favor of the Administrative Agent, for
the ratable benefit of the Holders of Obligations, under the Credit Agreements.
Capitalized terms used herein and not defined herein shall have the meanings
given to them in the Guaranty. By its execution below, the undersigned [NAME OF
NEW GUARANTOR], a [ ] [corporation] [partnership] [limited
liability company], agrees to become, and does hereby become, a Guarantor under
the Guaranty and agrees to be bound by such Guaranty as if originally a party
thereto. By its execution below, the undersigned represents and warrants as to
itself that all of the representations and warranties contained in Section 2 of
the Guaranty are true and correct in all material respects as of the date
hereof.
IN WITNESS WHEREOF, [NAME OF NEW GUARANTOR], a [ ]
[corporation] [partnership] [limited liability company] has executed and
delivered this Annex I counterpart to the Guaranty as of this day of
, .
[NAME OF NEW GUARANTOR]
By:
--------------------------------------
Its:
-------------------------------------
SIGNATURE PAGE TO GUARANTY
EXHIBIT I
FORM OF ASSUMPTION LETTER
Form of Assumption Letter
, 20
To the Administrative Agent and the Lenders party to the
Credit Agreement referred
to below
Ladies and Gentlemen:
Reference is made to that certain 364-Day Revolving Credit Agreement
dated as of April 8, 2002 by and among ACUITY BRANDS, INC., the Subsidiary
Borrowers from time to time parties thereto, the financial institutions from
time to time parties thereto as lenders (the "Lenders"), and Bank One, NA
(having its principal office in Chicago, IL), as contractual representative for
itself and the other Lenders (the "Administrative Agent") (as the same may be
amended, restated, supplemented or otherwise modified from time to time, the
"Credit Agreement"). Terms defined in the Credit Agreement and used herein are
used herein as defined therein.
The undersigned, (the "Subsidiary"), a
[corporation], wishes to become a "Subsidiary Borrower" under the Credit
Agreement, and accordingly hereby agrees that from the date hereof it shall
become a "Subsidiary Borrower" under the Credit Agreement and agrees that from
the date hereof and until the payment in full of the principal of and interest
on all Advances made to it under the Credit Agreement and performance of all of
its other obligations thereunder, and termination hereunder of its status as a
"Subsidiary Borrower" as provided below, it shall perform, comply with and be
bound by each of the provisions of the Credit Agreement which are stated to
apply to a "Borrower" or a "Subsidiary Borrower." Without limiting the
generality of the foregoing, the Subsidiary hereby represents and warrants that
it has heretofore received a true and correct copy of the Credit Agreement
(including any modifications thereof or supplements or waivers thereto) as in
effect on the date hereof. In addition, the Subsidiary hereby authorizes each
of the other Borrowers to act on its behalf as and to the extent provided for
in Article II of the Credit Agreement in connection with the selection of Types
and Interest Periods for Advances and the conversion and continuation of
Advances.
The Subsidiary further represents and warrants:
(A) Existence and Standing. Such Subsidiary is a corporation,
partnership or limited liability company duly and properly
incorporated or organized, as the case may be, validly
existing and (to the extent such concept applies to such
entity) in good standing under the laws of its jurisdiction
of incorporation or organization and has all requisite
authority to conduct its business in each jurisdiction in
which its business is
conducted, except to the extent that the failure to have such standing or
authority could not reasonably be expected to have a Material Adverse Effect.
(B) Authorization and Validity. Such Subsidiary (to the extent
applicable) has the power and authority and legal right to execute and deliver
the this Assumption Letter and the other Transaction Documents to which it is a
party and to perform its obligations thereunder or which have been filed by it
as required by the Credit Agreement. The execution and delivery by such
Subsidiary of the Transaction Documents to which it is a party and the
performance of its obligations thereunder have been duly authorized by proper
proceedings, and the Transaction Documents to which such entity is a party
constitute legal, valid and binding obligations of such entity enforceable
against such entity in accordance with their terms, except as enforceability
may be limited by bankruptcy, insolvency or similar laws affecting the
enforcement of creditors' rights generally or by general equitable principles.
(C) No Conflict; Government Consent. Neither the execution and
delivery by such Subsidiary of the Transaction Documents, nor the consummation
of the other transactions therein contemplated, nor compliance with the
provisions thereof will violate (i) any law, rule, regulation, order, writ,
judgment, injunction, decree or award binding on such Subsidiary or (ii) such
Subsidiary's articles or certificate of incorporation, partnership agreement,
certificate of partnership, articles or certificate of organization, by-laws,
or operating agreement or other management agreement, as the case may be, or
(iii) the provisions of any indenture, instrument or agreement to which such
Subsidiary is a party or is subject, or by which it, or its Property, is bound,
or conflict with, or constitute a default under, or result in, or require, the
creation or imposition of any Lien in, of or on the Property of such Subsidiary
pursuant to the terms of, any such indenture, instrument or agreement. No
order, consent, adjudication, approval, license, authorization, or validation
of, or filing, recording or registration with, or exemption by, or other action
in respect of any governmental or public body or authority, or any subdivision
thereof, which has not been obtained by such Subsidiary, is required to be
obtained by such Subsidiary in connection with the execution and delivery of
the Transaction Documents, the borrowings under the Credit Agreement, the
payment and performance by such Subsidiary of the Obligations or the legality,
validity, binding effect or enforceability of any of the Transaction Documents.
So long as the principal of and interest on all Advances made to the
Subsidiary under the Credit Agreement shall have been repaid or paid in full,
all Facility LCs issued for the account of the Subsidiary have expired or been
returned and terminated and all other Obligations of the Subsidiary (other than
continent indemnity obligations) under the Credit Agreement shall have been
fully performed, the Company may, by not less than five (5) Business Days'
prior notice to the Administrative Agent (who shall promptly notify the Lenders
thereof) terminate its status as a "Subsidiary Borrower" or "Borrower", and
such Subsidiary shall be released from any future liability (other than
contingent indemnity obligations) as a "Subsidiary Borrower" or "Borrower"
under the Credit Agreement and the other Loan Documents.
CHOICE OF LAW. THIS ASSUMPTION LETTER SHALL BE CONSTRUED IN ACCORDANCE
WITH THE INTERNAL LAWS (INCLUDING 735 ILCS 105/5-1 ET SEQ. BUT OTHERWISE
WITHOUT REGARD TO CONFLICTS OF LAW PROVISIONS)
2
OF THE STATE OF ILLINOIS, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO
NATIONAL BANKS.
3
IN WITNESS WHEREOF, the Subsidiary has duly executed and delivered
this Assumption Letter as of the date and year first above written.
[Name of Subsidiary Borrower]
By:
-------------------------------------
Title:
Address for Notices under the Credit
Agreement:
Consented to:
ACUITY BRANDS, INC.
By:
-------------------------------
Name:
Title:
4
EXHIBIT J
FORM OF COMMITMENT AND ACCEPTANCE
Form of Commitment and Acceptance
Dated [ ]
Reference is made to the 364-Day Revolving Credit Agreement, dated as
of April 8, 2002 (as amended, restated, supplemented or otherwise modified from
time to time, the "Credit Agreement") among Acuity Brands, Inc., a Delaware
corporation (the "COMPANY"), the Subsidiary Borrowers from time to time parties
thereto, the institutions from time to time parties thereto as lenders (the
"LENDERS") and Bank One, NA (Main Office -- Chicago), in its capacity as
contractual representative capacity (the "ADMINISTRATIVE AGENT"). Terms defined
in the Credit Agreement are used herein with the same meaning.
Pursuant to Section 2.24 of the Credit Agreement, the Company has
requested an increase in the Aggregate Commitment from $ to
$ . Such increase in the Aggregate Commitment is to become
effective on the date (the "Effective Date") which is the later of (i)
, and (ii) the date on which the conditions precedent set forth
in Section 2.24 in respect of such increase have been satisfied. In connection
with such requested increase in the Aggregate Commitment, the Borrowers, the
Administrative Agent and (the "Accepting Bank") hereby agree
as follows:
1. Effective as of the Effective Date, [the Accepting Bank shall
become a party to the Credit Agreement as a Lender and shall have all of the
rights and obligations of a Lender thereunder and shall thereupon have a
Commitment under and for purposes of the Credit Agreement in an amount equal to
the] [the Commitment of the Accepting Bank under the Credit Agreement shall be
increased from $ to the] amount set forth opposite the Accepting
Bank's name on the signature page hereof.
2. [The Accepting Bank hereby (i) confirms that it has received a copy
of the Credit Agreement, together with copies of the financial statements and
such other documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into this Commitment and Acceptance
Agreement; (ii) agrees that it will, independently and without reliance upon
the Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Credit Agreement;
(iii) appoints and authorizes the Administrative Agent to take such action as
contractual representative on its behalf and to exercise such powers under the
Credit Agreement and the other Loan Documents as are delegated to the
Administrative Agent by the terms thereof, together with such powers as are
reasonably incidental thereto; and (iv) agrees that it will perform in
accordance with their terms all of the obligations which by the terms of the
Credit Agreement are required to be performed by it as a Lender.]
3. The Borrowers hereby represent and warrant that as of the date
hereof and as of the Effective Date, (a) all representations and warranties
shall be true and correct in all material respects as though made on such date
and (b) no event shall have occurred and then be continuing which constitutes a
Default or an Unmatured Default.
4. THIS COMMITMENT AND ACCEPTANCE AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS (INCLUDING SS. 735 ILCS 105/5-1
ET SEQ. BUT OTHERWISE WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS) OF
THE STATE OF ILLINOIS.
5. This Commitment and Acceptance Agreement may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which
taken together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Commitment and
Acceptance Agreement to be executed by their respective officers thereunto duly
authorized, as of the date first above written.
[BORROWERS]
By:
--------------------------------------
Title:
BANK ONE, NA (Main Office, Chicago), as
Administrative Agent
By:
--------------------------------------
Title:
COMMITMENT ACCEPTING BANK
$
[BANK]
By:
--------------------------------------
Title:
2
REAFFIRMATIONS OF GUARANTORS
Each of the undersigned hereby acknowledges receipt of the foregoing
Commitment and Acceptance. Capitalized terms used in this Reaffirmation and not
defined herein shall have the meanings given to them in the Credit Agreement
referred to in the foregoing Commitment and Acceptance. Without in any way
establishing a course of dealing by the Administrative Agent or any Lender, the
undersigned reaffirms the terms and conditions of the Guaranty dated as of
April 8, 2002 executed by it and acknowledges and agrees that such Guaranty and
each and every other Loan Document executed by the undersigned in connection
with the Credit Agreement remain in full force and effect and are hereby
ratified, reaffirmed and confirmed. All references to the Credit Agreement
contained in the above-referenced documents shall be a reference to the Credit
Agreement as so amended by the Commitment and Acceptance and as the same may
from time to time hereafter be amended, modified or restated. The failure of
any Guarantor to sign this Reaffirmation shall not release, discharge or
otherwise affect the obligations of any of the Guarantors hereunder or under
the Guaranty.
[GUARANTORS]
By:
--------------------------------------
Its:
-------------------------------------
3
