EXHIBIT 10.1
WAIVER AND CONSENT
THIS THIRD WAIVER AND CONSENT, dated as of April 12, 2006 (this
"Waiver"), to CREDIT AGREEMENT, dated as of January 7, 2005 and amended
September 19, 2005 (as the same may be amended, restated, supplemented or
otherwise modified from time to time, the "Credit Agreement"), among NOVELIS
INC., a corporation organized under the Canada Business Corporations Act (the
"Company" or the "Canadian Borrower"), NOVELIS CORPORATION, a Texas corporation
(the "US Borrower"), NOVELIS DEUTSCHLAND GMBH, a limited liability company
(GmbH) organized under the laws of Germany (the "German Borrower"), NOVELIS UK
LIMITED, a limited company organized under the laws of England and Wales with
registered number 00279596 (the "UK Borrower"), NOVELIS AG, a stock corporation
(AG) organized under the laws of Switzerland (the "Swiss Borrower" and, together
with the Canadian Borrower, the US Borrower, the German Borrower and the UK
Borrower, the "Borrowers"), the Lenders and Issuers party thereto and CITICORP
NORTH AMERICA, INC. ("Citicorp"), as administrative agent and collateral agent
for the Lenders and the Issuers (in such capacity, the "Administrative Agent").
Capitalized terms used herein but not defined herein are used as defined in the
Credit Agreement as amended.
W I T N E S S E T H:
WHEREAS, the Company has requested a waiver of certain reporting
covenants under the Credit Agreement as herein set forth; and
WHEREAS, the Lenders signatory to a consent (an "Acknowledgment and
Consent") and the Administrative Agent have agreed to consent to such waiver on
the terms and subject to the conditions herein provided.
NOW, THEREFORE, in consideration of the foregoing, the mutual
covenants and obligations herein set forth and other good and valuable
consideration, the adequacy and receipt of which is hereby acknowledged, and in
reliance upon the representations, warranties and covenants herein contained,
the parties hereto, intending to be legally bound, hereby agree as follows:
Section 1. Waiver. As of the Effective Date, the Administrative Agent and
------
each Lender signatory to an Acknowledgment and Consent hereby (a) consent to the
delivery of the Financial Statements required by Section 6.1(a)(Quarterly
Reports) and the related Compliance Certificate required by Section
6.1(c)(Compliance Certificate) for the Fiscal Quarter ended September 30, 2005,
on or prior to May 15, 2006 (or, if earlier, the 59th day after written notice
with respect to such default is given to the Company under Section 6.01(d) of
the Indenture governing the Senior Notes) and (b) waive any Default or Event of
Default arising under Section 6.1(a)(Quarterly Reports) or Section
6.1(c)(Compliance Certificate) solely as a result of the delay in delivery of
the reports required thereunder as contemplated hereunder; provided, however,
that nothing contained in this Waiver shall be construed as a waiver of any
other Default or Event of Default, including, without limitation, any such
Default or Event of Default arising under Section 9.1(e) (Events of Default).
Section 2. Conditions Precedent. This Waiver shall become effective as of
--------------------
the date (the "Effective Date") on which each of the following conditions
precedent shall have been satisfied or duly waived:
(a) Certain Documents. The Administrative Agent shall have received each
of the following, in form and substance satisfactory to the Administrative
Agent:
(i) this Waiver, duly executed by the Company, on behalf of itself
and each Loan Party, and the Administrative Agent;
(ii) an Acknowledgment and Consent, in the form set forth hereto as
Exhibit A, duly executed by each of the Requisite Lenders;
(iii) such additional documentation as the Administrative Agent may
reasonably require.
(b) Payment of Fees Costs and Expenses. The Administrative Agent and the
Lenders shall have received payment of all fees, costs and expenses, including,
without limitation, all fees, costs and expenses of the Administrative Agent and
the Lenders (including, without limitation, the reasonable fees and
out-of-pocket expenses of counsel for the Administrative Agent) in connection
with this Waiver, the Credit Agreement and each other Loan Document, as required
by Section 4 and Section 5 hereof.
(c) Representations and Warranties. Each of the representations and
warranties contained in Section 3 below shall be true and correct.
(d) No Default or Event of Default. After giving effect to this Waiver, no
Default or Event of Default shall have occurred and be continuing.
Section 3. Representations and Warranties. The Company, on behalf of itself
------------------------------
and each Loan Party, hereby represents and warrants to the Administrative Agent
and each Lender, with respect to all Loan Parties, as follows:
(a) After giving effect to this Waiver, each of the representations and
warranties in the Credit Agreement and in the other Loan Documents are true and
correct in all material respects on and as of the date hereof as though made on
and as of such date, except to the extent that any such representation or
warranty expressly relates to an earlier date and except for changes therein
expressly permitted by the Credit Agreement.
(b) The execution, delivery and performance by the Company of this Waiver
have been duly authorized by all requisite corporate, action and will not
violate the articles of incorporation or bylaws (or other constituent documents)
of the Company.
(c) After giving effect to this Waiver, no Default or Event of Default has
occurred and is continuing as of the date hereof.
Section 4. Fees. As consideration for the execution of this Waiver, the
----
Company, on behalf of each Borrower, agrees to pay to the Administrative Agent
for the account of each Lender for which the Administrative Agent shall have
received (by facsimile or otherwise) an executed Acknowledgment and Consent (or
a release from escrow of an Acknowledgment and Consent previously delivered in
escrow) with respect to this Waiver by 12 p.m. (New York Time) on April 12, 2006
(or such later date or time as the Administrative Agent and the Borrowers may
agree), a waiver fee equal to 0.075% of such Lender's aggregate Commitments then
in effect.
2
Section 5. Costs and Expenses. As provided in Section 11.3(a) (Costs and
------------------
Expenses) of the Credit Agreement, the Company, on behalf of each Borrower,
agrees to reimburse the Administrative Agent for all reasonable fees, costs and
expenses, including the reasonable fees, costs and expenses of counsel or other
advisors for advice, assistance or other representation in connection with this
Waiver.
Section 6. Reference to and Effect on the Loan Documents.
---------------------------------------------
(a) As of the Effective Date, each reference in the Credit Agreement and
the other Loan Documents to "this Agreement," "hereunder," "hereof," "herein,"
or words of like import, and each reference in the other Loan Documents to the
Credit Agreement (including, without limitation, by means of words like
"thereunder," "thereof" and words of like import), shall mean and be a reference
to the Credit Agreement as amended and as waived hereby with respect to the
certain requirements outlined above, and this Waiver and the Credit Agreement
shall be read together and construed as a single instrument.
(b) Except as expressly amended hereby, all of the terms and provisions of
the Credit Agreement and all other Loan Documents are and shall remain in full
force and effect and are hereby ratified and confirmed.
(c) The execution, delivery and effectiveness of this Waiver shall not,
except as expressly provided herein, operate as a waiver of any right, power or
remedy of the Administrative Agent, any Lender or any Issuer under the Credit
Agreement or any Loan Document, or constitute a waiver or amendment of any other
provision of the Credit Agreement or any Loan Document except as and to the
extent expressly set forth herein.
(d) The Company, on behalf of itself and each Loan Party, hereby confirms
that the guaranties, security interests and liens granted pursuant to the Loan
Documents continue to guarantee and secure the Obligations as set forth in the
Loan Documents and that such guaranties, security interests and liens remain in
full force and effect.
Section 7. Counterparts. This Waiver may be executed in any number of
------------
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Receipt by the
Administrative Agent of a facsimile copy of an executed signature page hereof
shall constitute receipt by the Administrative Agents of an executed counterpart
of this Waiver.
Section 8. Governing Law. This Waiver and the rights and obligations of the
-------------
parties hereto shall be governed by, and construed and interpreted in accordance
with, the law of the State of New York.
Section 9. Headings. Section headings contained in this Waiver are included
--------
herein for convenience of reference only and shall not constitute a part of this
Waiver for any other purposes.
3
Section 10. Waiver of Jury Trial. EACH OF THE PARTIES HERETO IRREVOCABLY
--------------------
WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS WAIVER
OR ANY OTHER LOAN DOCUMENT.
[SIGNATURE PAGES FOLLOW]
4
IN WITNESS WHEREOF, the parties hereto have caused this Waiver to be
executed by their respective officers and members thereunto duly authorized, on
the date indicated below.
NOVELIS INC.
as Borrower and Guarantor
By: /s/ Xxxxxxx Xxxxxxx
-------------------------------
Xxxxxxx Xxxxxxx
Vice President and Treasurer
5
CITICORP NORTH AMERICA, INC.,
as Administrative Agent under the
Credit Agreement
By: /s/ Xxxxxx X. Xxxx
-------------------------------
Xxxxxx X. Xxxx
Vice President
April 12, 2006
6
