US$1,000,000,000 FIVE-YEAR CREDIT AGREEMENT dated as of October 26, 2005 among DOVER CORPORATION The LENDERS Listed Herein The BORROWING SUBSIDIARIES Party Hereto JPMORGAN CHASE BANK, N.A., as Administrative Agent, DEUTSCHE BANK SECURITIES INC., as...
EXECUTION COPY
US$1,000,000,000
FIVE-YEAR CREDIT AGREEMENT
dated as of
October 26, 2005
among
DOVER CORPORATION
The LENDERS Listed Herein
The BORROWING SUBSIDIARIES
Party Hereto
Party Hereto
JPMORGAN CHASE BANK, N.A.,
as Administrative Agent,
as Administrative Agent,
DEUTSCHE BANK SECURITIES INC.,
as Syndication Agent,
as Syndication Agent,
and
BANK OF AMERICA, N.A.,
THE ROYAL BANK OF SCOTLAND plc and
WACHOVIA BANK, NATIONAL ASSOCIATION,
as Documentation Agents
THE ROYAL BANK OF SCOTLAND plc and
WACHOVIA BANK, NATIONAL ASSOCIATION,
as Documentation Agents
X.X. XXXXXX SECURITIES INC.,
Sole Lead Arranger and Sole Bookrunner
Sole Lead Arranger and Sole Bookrunner
TABLE OF CONTENTS
Page | ||||||
ARTICLE I | ||||||
DEFINITIONS | ||||||
SECTION 1.01.
|
Definitions | 1 | ||||
SECTION 1.02.
|
Accounting Terms and Determinations | 12 | ||||
SECTION 1.03.
|
Types of Borrowings | 13 | ||||
SECTION 1.04.
|
Exchange Rates | 13 | ||||
ARTICLE II | ||||||
THE CREDITS | ||||||
SECTION 2.01.
|
Commitments to Lend | 13 | ||||
SECTION 2.02.
|
Notice of Borrowing | 14 | ||||
SECTION 2.03.
|
Notice to Lenders; Funding of Loans | 14 | ||||
SECTION 2.04.
|
Repayment of Loans; Evidence of Debt | 15 | ||||
SECTION 2.05.
|
Maturity of Loans | 16 | ||||
SECTION 2.06.
|
Interest Rates | 16 | ||||
SECTION 2.07.
|
Interest Elections | 17 | ||||
SECTION 2.08.
|
Fees | 18 | ||||
SECTION 2.09.
|
Optional Termination or Reduction of Commitments | 19 | ||||
SECTION 2.10.
|
Mandatory Termination of Commitments | 19 | ||||
SECTION 2.11.
|
Prepayments | 19 | ||||
SECTION 2.12.
|
General Provisions as to Payments | 20 | ||||
SECTION 2.13.
|
Funding Losses | 20 | ||||
SECTION 2.14.
|
Computation of Interest and Fees | 21 | ||||
SECTION 2.15.
|
Borrowing Subsidiaries | 21 | ||||
SECTION 2.16.
|
Foreign Subsidiary Costs | 21 | ||||
SECTION 2.17.
|
Additional Reserve Costs | 22 | ||||
SECTION 2.18.
|
Increase in Commitments | 22 | ||||
SECTION 2.19.
|
No Double Payment | 23 | ||||
ARTICLE III | ||||||
REPRESENTATIONS AND WARRANTIES | ||||||
SECTION 3.01.
|
Corporate Existence and Power | 23 | ||||
SECTION 3.02.
|
Corporate and Governmental Authorization; No Contravention | 23 | ||||
SECTION 3.03.
|
Binding Effect | 24 | ||||
SECTION 3.04.
|
Financial Information | 24 | ||||
SECTION 3.05.
|
Litigation | 24 | ||||
SECTION 3.06.
|
Compliance with ERISA | 24 | ||||
SECTION 3.07.
|
Environmental Matters | 25 | ||||
SECTION 3.08.
|
Taxes | 25 | ||||
SECTION 3.09.
|
Subsidiaries | 25 |
i
Page | ||||||
SECTION 3.10.
|
Not an Investment Company | 25 | ||||
SECTION 3.11.
|
Full Disclosure | 25 | ||||
ARTICLE IV | ||||||
CONDITIONS | ||||||
SECTION 4.01.
|
Effectiveness | 26 | ||||
SECTION 4.02.
|
Each Credit Event | 26 | ||||
SECTION 4.03.
|
Initial Credit Event for each Borrowing Subsidiary | 27 | ||||
ARTICLE V | ||||||
COVENANTS | ||||||
SECTION 5.01.
|
Information | 27 | ||||
SECTION 5.02.
|
Payment of Obligations | 30 | ||||
SECTION 5.03.
|
Maintenance of Property; Insurance | 30 | ||||
SECTION 5.04.
|
Conduct of Business and Maintenance of Existence | 30 | ||||
SECTION 5.05.
|
Compliance with Laws | 30 | ||||
SECTION 5.06.
|
Inspection of Property, Books and Records | 30 | ||||
SECTION 5.07.
|
Interest Coverage and Debt Ratios | 31 | ||||
SECTION 5.08.
|
Negative Pledge | 31 | ||||
SECTION 5.09.
|
Consolidations, Mergers and Sales of Assets | 32 | ||||
SECTION 5.10.
|
Use of Proceeds | 32 | ||||
ARTICLE VI | ||||||
EVENTS OF DEFAULT | ||||||
SECTION 6.01.
|
Events of Default | 32 | ||||
SECTION 6.02.
|
Notice of Default | 34 | ||||
ARTICLE VII | ||||||
THE AGENT | ||||||
SECTION 7.01.
|
Appointment and Authorization | 34 | ||||
SECTION 7.02.
|
Agent and Affiliates | 34 | ||||
SECTION 7.03.
|
Action by Agent | 34 | ||||
SECTION 7.04.
|
Consultation with Experts | 34 | ||||
SECTION 7.05.
|
Liability of Agent | 35 | ||||
SECTION 7.06.
|
Indemnification | 35 | ||||
SECTION 7.07.
|
Credit Decision | 35 | ||||
SECTION 7.08.
|
Successor Agent | 35 | ||||
SECTION 7.09.
|
Agent’s Fee | 35 | ||||
SECTION 7.10.
|
Documentation Agents and Syndication Agent | 36 | ||||
SECTION 7.11.
|
Agent Designees | 36 |
ii
Page | ||||||
ARTICLE VIII | ||||||
CHANGE IN CIRCUMSTANCES | ||||||
SECTION 8.01.
|
Basis for Determining Interest Rate Inadequate or Unfair | 36 | ||||
SECTION 8.02.
|
Illegality | 36 | ||||
SECTION 8.03.
|
Increased Cost and Reduced Return | 37 | ||||
SECTION 8.04.
|
Taxes | 38 | ||||
SECTION 8.05.
|
Base Rate Loans Substituted for Affected Eurocurrency Loans | 39 | ||||
SECTION 8.06.
|
Substitution of Lender | 40 | ||||
ARTICLE IX | ||||||
GUARANTEE | ||||||
ARTICLE X | ||||||
MISCELLANEOUS | ||||||
SECTION 10.01.
|
Notices | 42 | ||||
SECTION 10.02.
|
No Waivers | 42 | ||||
SECTION 10.03.
|
Expenses; Indemnification | 42 | ||||
SECTION 10.04.
|
Sharing of Set-Offs | 43 | ||||
SECTION 10.05.
|
Amendments and Waivers | 43 | ||||
SECTION 10.06.
|
Successors and Assigns | 43 | ||||
SECTION 10.07.
|
Collateral | 44 | ||||
SECTION 10.08.
|
Governing Law; Submission to Jurisdiction | 44 | ||||
SECTION 10.09.
|
Counterparts; Integration; Effectiveness | 45 | ||||
SECTION 10.10.
|
WAIVER OF JURY TRIAL | 45 | ||||
SECTION 10.11.
|
Conversion of Currencies | 45 | ||||
SECTION 10.12.
|
Interest Rate Limitation | 45 | ||||
SECTION 10.13.
|
USA Patriot Act | 46 | ||||
SECTION 10.14.
|
Confidentiality | 46 |
Schedule 2.01
|
- | Commitments | ||
Exhibit A-1
|
- | Form of Borrowing Subsidiary Agreement | ||
Exhibit A-2
|
- | Form of Borrowing Subsidiary Termination | ||
Exhibit B
|
- | Assignment and Assumption Agreement | ||
Exhibit C
|
- | Additional Reserve Costs | ||
Exhibit D
|
- | Opinion of Counsel for the Company | ||
Exhibit E
|
- | Borrowing Subsidiary Opinion | ||
Exhibit F
|
- | Form of Note | ||
Exhibit G
|
- | Form of Accession Agreement |
iii
FIVE-YEAR CREDIT AGREEMENT dated as of October 26, 2005 (this
“Agreement”), among DOVER CORPORATION (the “Company”), the
BORROWING SUBSIDIARIES from time to time party hereto (together with the
Company, the “Borrowers”), the financial institutions from time to
time party hereto, initially consisting of those listed on Schedule 2.01
(the “Lenders”), DEUTSCHE BANK SECURITIES INC., as Syndication
Agent, BANK OF AMERICA, N.A., THE ROYAL BANK OF SCOTLAND plc and WACHOVIA
BANK, NATIONAL ASSOCIATION, as Documentation Agents, and JPMORGAN CHASE
BANK, N.A., as Administrative Agent.
The Company (such term, and each other capitalized term used and not otherwise defined in
these recitals having the meaning assigned to it in Article I) has requested the Lenders to extend
credit to enable the Borrowers to borrow on a revolving credit basis on and after the date hereof
and at any time and from time to time prior to the Maturity Date a principal amount not in excess
of $1,000,000,000 at any time outstanding. The proceeds of borrowings hereunder are to be used to
repay amounts outstanding, if any, under the Existing Credit Agreements and for working capital and
general corporate purposes, including, without limitation, to backstop commercial paper.
The Lenders are willing to extend such credit to the Borrowers on the terms and subject to the
conditions herein set forth.
Accordingly, the parties hereto agree as follows:
ARTICLE I
DEFINITIONS
SECTION 1.01. Definitions. The following terms, as used herein, have the following
meanings:
“ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate per annum determined by
reference to the Alternate Base Rate.
“Accession Agreement” means the agreement to be entered into by any Increasing Lender
not already party hereto, as set forth in Section 2.18 and substantially in the form attached as
Exhibit G.
“Adjusted London Interbank Offered Rate” has the meaning set forth in Section 2.06(b).
“Administrative Questionnaire” means, with respect to each Lender, an administrative
questionnaire in the form prepared by the Agent and submitted to the Agent (with a copy to the
Company) duly completed by such Lender.
“Affiliate” means, at any time, with respect to a specified Person, another Person
that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is
under common Control with the Person specified.
2
“Agent” means JPMCB in its capacity as administrative agent for the Lenders hereunder,
and its successors in such capacity.
“Agent Designee” has the meaning set forth in Section 7.11.
“Agreement Currency” has the meaning set forth in Section 10.11(b).
“Alternate Base Rate” shall mean, for any day, a rate per annum (rounded upwards, if
necessary, to the next 1/16 of 1%) equal to the greatest of (a) the Prime Rate in effect on such
day, (b) the Base CD Rate in effect on such day plus 1% and (c) the Federal Funds Effective Rate in
effect on such day plus 1/2 of 1%. For purposes hereof, “Prime Rate” shall mean the rate of
interest per annum publicly announced from time to time by the Agent as its prime rate in effect at
its principal office in New York City; each change in the Prime Rate shall be effective on the date
such change is publicly announced as being effective. “Base CD Rate” shall mean the sum of
(a) the product of (i) the Three-Month Secondary CD Rate and (ii) Statutory Reserves and (b) the
Assessment Rate. “Three-Month Secondary CD Rate” shall mean, for any day, the secondary
market rate for three-month certificates of deposit reported as being in effect on such day (or, if
such day shall not be a Business Day, the next preceding Business Day) by the Board through the
public information telephone line of the Federal Reserve Bank of New York (which rate will, under
the current practices of the Board, be published in Federal Reserve Statistical Release H.15(519)
during the week following such day), or, if such rate shall not be so reported on such day or such
next preceding Business Day, the average of the secondary market quotations for three-month
certificates of deposit of major money center banks in New York City received at approximately
10:00 a.m., New York City time, on such day (or, if such day shall not be a Business Day, on the
next preceding Business Day) by the Agent from three New York City negotiable certificate of
deposit dealers of recognized standing selected by it. “Federal Funds Effective Rate”
shall mean, for any day, the weighted average of the rates on overnight Federal funds transactions
with members of the Federal Reserve System arranged by Federal funds brokers, as published on the
next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day which is a Business Day, the average of the quotations for the day of such
transactions received by the Agent from three Federal funds brokers of recognized standing selected
by it. If for any reason the Agent shall have determined (which determination shall be conclusive
absent manifest error) that it is unable to ascertain the Base CD Rate or the Federal Funds
Effective Rate or both for any reason, including the inability or failure of the Agent to obtain
sufficient quotations in accordance with the terms thereof, the Alternate Base Rate shall be
determined without regard to clause (b) or (c), or both, of the first sentence of this definition,
as appropriate, until the circumstances giving rise to such inability no longer exist. Any change
in the Alternate Base Rate due to a change in the Prime Rate, the Three-Month Secondary CD Rate or
the Federal Funds Effective Rate shall be effective on the effective date of such change in the
Prime Rate, the Three-Month Secondary CD Rate or the Federal Funds Effective Rate, respectively.
“Applicable Creditor” has the meaning set forth in Section 10.11(b).
“Applicable Lending Office” means, with respect to any Lender, (i) in the case of its
Base Rate Loans, its Domestic Lending Office and (ii) in the case of its Eurocurrency Loans, its
Eurocurrency Lending Office.
“Applicable Rate” means, for any day, with respect to any Eurocurrency Loan, or with
respect to the facility fees and utilization fees payable hereunder, as the case may be, the
applicable rate per annum set forth below under the caption “Eurocurrency Spread”, “Facility Fee
3
Rate” or “Utilization Fee Rate”, as the case may be, based upon the ratings by S&P and
Xxxxx’x, respectively, applicable on such date to the Index Debt:
Index Debt Ratings | Eurocurrency Spread | Utilization Fee Rate | Facility Fee Rate | |||||||||
Category 1 ³Aa3/AA- |
0.125 | % | 0.05 | % | 0.050 | % | ||||||
Category 2 A1/A+ |
0.140 | % | 0.05 | % | 0.060 | % | ||||||
Category 3 A2/A |
0.180 | % | 0.05 | % | 0.070 | % | ||||||
Category 4 A3/A- |
0.220 | % | 0.05 | % | 0.080 | % | ||||||
Category 5 Baa1/BBB+ |
0.300 | % | 0.10 | % | 0.100 | % | ||||||
Category 6 £Baa2/BBB or unrated |
0.475 | % | 0.10 | % | 0.150 | % |
For purposes of the foregoing, (i) if either Xxxxx’x or S&P shall not have in effect a rating
for the Index Debt (other than by reason of the circumstances referred to in the last sentence of
this definition), then such rating agency shall be deemed to have established a rating in Category
6; (ii) if the ratings established or deemed to have been established by Xxxxx’x and S&P for the
Index Debt shall fall within different Categories, the Applicable Rate shall be based on the higher
of the two ratings unless (A) one of the two ratings is two or more Categories lower than the other
and neither rating is in Category 6, in which case the Applicable Rate shall be determined by
reference to the Category next above that of the lower of the two ratings or (B) either rating is
or is deemed to be in Category 6, in which case the Applicable Rate shall be determined by
reference to Category 6 and (iii) if the ratings established or deemed to have been established by
Xxxxx’x and S&P for the Index Debt shall be changed (other than as a result of a change in the
rating system of Xxxxx’x or S&P), such change shall be effective as of the date on which it is
first announced by the applicable rating agency. Each change in the Applicable Rate shall apply
during the period commencing on the effective date of such change and ending on the date
immediately preceding the effective date of the next such change. If the rating system of Xxxxx’x
or S&P shall change, or if either such rating agency shall cease to be in the business of rating
corporate debt obligations, the Company and the Lenders shall negotiate in good faith to amend this
definition to reflect such changed rating system or the unavailability of ratings from such rating
agency and, pending the effectiveness of any such amendment, the Applicable Rate shall be
determined by reference to the rating most recently in effect prior to such change or cessation.
“Assessment Rate” shall mean for any date the annual rate (rounded upwards, if
necessary, to the next 1/100 of 1%) most recently estimated by the Agent as the then current net
annual assessment rate that will be employed in determining amounts payable by the Agent to the
Federal Deposit Insurance Corporation (or any successor) for such date for insurance by such
Corporation (or such successor) of time deposits made in US Dollars at the Agent’s domestic
offices.
“Assignee” has the meaning set forth in Section 10.06(c).
“Assignment and Assumption Agreement” has the meaning set forth in Section 10.06(c).
4
“Base Rate Loan” means a US Dollar Loan to be made by a Lender as a Base Rate Loan in
accordance with the applicable Notice of Borrowing or pursuant to Article VIII.
“Benefit Arrangement” means at any time an employee benefit plan within the meaning of
Section 3(3) of ERISA which is not a Plan or a Multiemployer Plan and which is maintained or
otherwise contributed to by any member of the ERISA Group.
“Board” shall mean the Board of Governors of the Federal Reserve System of the United
States.
“Borrower” means the Company or any Borrowing Subsidiary.
“Borrowing” has the meaning set forth in Section 1.03.
“Borrowing Minimum” shall mean (a) in the case of a Borrowing denominated in US
Dollars, US$10,000,000 and (b) in the case of a Borrowing denominated in any Designated Foreign
Currency, the smallest amount of such Designated Foreign Currency that has a US Dollar Equivalent
of at least US$5,000,000.
“Borrowing Multiple” shall mean (a) in the case of a Borrowing denominated in US
Dollars, US$1,000,000 and (b) in the case of a Borrowing denominated in any Designated Foreign
Currency, 1,000,000 units of such currency.
“Borrowing Subsidiary” means, at any time, each Subsidiary that (a) is named on the
signature pages to this Agreement or (b) has been designated as a Borrowing Subsidiary by the
Company pursuant to Section 2.15, and that has not ceased to be a Borrowing Subsidiary as provided
in such Section.
“Borrowing Subsidiary Agreement” means a Borrowing Subsidiary Agreement substantially
in the form of Exhibit A-1.
“Borrowing Subsidiary Termination” means a Borrowing Subsidiary Termination
substantially in the form of Exhibit A-2.
“Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed;
provided, that (a) when used in connection with a Eurocurrency Loan, the term “Business
Day” shall also exclude any day on which banks are not open for dealings in deposits in the
applicable currency in the London interbank market and (b) when used in connection with a Loan
denominated in Euro, the term “Business Day” shall also exclude any day on which the TARGET payment
system is not open for the settlement of payments in Euro.
“Calculation Date” means (a) the last Business Day of each calendar quarter and (b)
with respect to a requested new Borrowing, the Business Day immediately preceding the date on which
such Borrowing is to be made, provided that the Agent may in addition designate the last
day of any other month as a Calculation Date if it reasonably determines that there has been more
than usual volatility in the applicable foreign currency markets.
“Capital Lease”, as applied to any Person, means any lease of any property (whether
real, personal or mixed) by that Person as lessee which, in accordance with GAAP, is or should be
accounted for as a capital lease on the balance sheet of that Person.
5
“Charges” has the meaning set forth in Section 10.12.
“Closing Date” means the date on or after the Effective Date on which the Agent shall
have received the documents specified in or pursuant to Section 4.01.
“Commitment” means, with respect to each Lender, the commitment of such Lender to make
Loans hereunder, denominated in US Dollars and expressed as an amount representing the maximum
aggregate amount of such Lender’s Revolving Credit Exposure hereunder, as such commitment may be
(a) reduced or increased from time to time pursuant to Section 2.09, 2.10 or 2.18 and (b) reduced
or increased from time to time pursuant to assignments by or to such Lender pursuant to Section
10.06. The initial amount of each Lender’s Commitment is set forth on Schedule 2.01, or in the
Assignment and Assumption pursuant to which such Lender shall have assumed its Commitment, as
applicable. The initial aggregate amount of the Lenders’ Commitments is US$1,000,000,000.
“Company” means Dover Corporation, a Delaware corporation, its successors and
permitted assigns in accordance with Section 10.06.
“Company’s 2004 Form 10-K” means the Company’s annual report on Form 10-K for 2004, as
filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934.
“Consolidated EBITDA” means, for any period, Consolidated Net Income for such period
plus (a) without duplication and to the extent deducted in determining such Consolidated Net
Income, the sum of (i) Consolidated Net Interest Expense for such period, (ii) consolidated income
tax expense for such period, (iii) all amounts attributable to depreciation and amortization for
such period, (iv) any extraordinary non-cash charges for such period and (v) any non-cash charges
for such period related to plant closings or other restructurings of operations or to the writedown
of assets, and minus (b) without duplication and to the extent included in determining such
Consolidated Net Income, any extraordinary gains for such period, all determined on a consolidated
basis in accordance with GAAP.
“Consolidated Net Income” means, for any period, the net income or loss of the Company
and its Consolidated Subsidiaries for such period determined on a consolidated basis in accordance
with GAAP; provided that there shall be excluded (a) the income of any Subsidiary in which
any Person (other than the Company or any Subsidiary or any director holding qualifying shares in
compliance with applicable law) owns an Equity Interest, except to the extent that the
organizational documents and indentures, agreements and other instruments binding upon such
Subsidiary do not restrict the ability of such Subsidiary to declare and pay dividends or other
distributions to the Company or any of the Subsidiaries in an amount at least equal to such income,
(b) the income or loss of any Person accrued prior to the date it becomes a Subsidiary or is merged
into or consolidated with the Company or any Subsidiary or the date that such Person’s assets are
acquired by the Company or any Subsidiary and (c) without limiting anything in Section 1.02, the
net impact of cumulative changes to GAAP.
“Consolidated Net Interest Expense” means for any period for which such amount is
being determined, total interest expense (including that properly attributable to Capital Leases in
accordance with GAAP and amortization of debt discount and debt issuance costs) of the Company and
its Consolidated Subsidiaries on a consolidated basis, including all capitalized interest, all
commissions, discounts and other fees and charges owed with respect to letters of credit and
bankers’ acceptance financings and net costs under interest rate protection agreements
6
(including amortization of discount) all as determined on a consolidated basis in accordance
with GAAP minus the total interest income of the Company and the Subsidiaries for such period
determined on a consolidated basis in accordance with GAAP.
“Consolidated Net Worth” means at any date the consolidated stockholders’ equity of
the Company and its Consolidated Subsidiaries determined as of such date.
“Consolidated Subsidiary” means at any date any Subsidiary or other entity the
accounts of which would be consolidated with those of the Company in its consolidated financial
statements if such statements were prepared as of such date.
“Control” means, for a specified Person, the possession, directly or indirectly
through one or more intermediaries, of the power to direct or cause the direction of the management
or policies of another Person, whether through the ability to exercise voting power, by contract or
otherwise. “Controlling”, “Controlled” and “Controls” have meanings
correlative thereto.
“Credit Event” has the meaning set forth in Section 4.02.
“Debt” of any Person means at any date, without duplication, (i) all obligations of
such Person for borrowed money, (ii) all obligations of such Person evidenced by bonds, debentures,
notes or other similar instruments, (iii) all obligations of such Person to pay the deferred
purchase price of property or services, except trade accounts payable arising in the ordinary
course of business, (iv) all obligations of such Person as lessee which are capitalized in
accordance with GAAP, (v) all non-contingent obligations of such Person to reimburse any bank or
other Person in respect of amounts which, at such date, have been paid under a letter of credit or
similar instrument, (vi) all Debt secured by a Lien on any asset of such Person, whether or not
such Debt is otherwise an obligation of such Person and (vii) all Debt of others Guaranteed by such
Person.
“Default” means any condition or event which constitutes an Event of Default or which
with the giving of notice or lapse of time or both would, unless cured or waived, become an Event
of Default.
“Designated Foreign Currency” means Euro and Sterling.
“Domestic Lending Office” means, as to each Lender, its office located at its address
set forth in its Administrative Questionnaire (or identified in its Administrative Questionnaire as
its Domestic Lending Office) or such other office as such Lender may hereafter designate as its
Domestic Lending office by notice to the Company and the Agent.
“Effective Date” means the date this Agreement becomes effective in accordance with
Section 10.09.
“Environmental Laws” means any and all federal, state, local and foreign governmental
(whether executive, legislative or judicial) statutes, laws, judicial decisions, regulations,
ordinances, rules, judgments, orders, decrees, plans, injunctions, permits, concessions, grants,
franchises, licenses, agreements and other governmental restrictions relating to the environment,
the effect of the environment on human health or to emissions, discharges or releases of
pollutants, contaminants, Hazardous Substances or wastes into the environment including, without
limitation, ambient air, surface water, ground water, or land, or otherwise
7
relating to 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.
“Equity Interests” means shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity ownership
interests in a Person, and any warrants, options or other rights entitling the holder thereof to
purchase or acquire any such equity interests.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, or any
successor statute.
“ERISA Group” means the Company, any Consolidated Subsidiary and all members of a
controlled group of corporations and all trades or businesses (whether or not incorporated) under
common control which, together with the Company or any Consolidated Subsidiary, are treated as a
single employer under Section 414(b) or (c) of the Internal Revenue Code.
“Euro” or “€” means the single currency of the European Union.
“Eurocurrency Lending Office” means, as to each Lender, its office, branch or
affiliate located at its address set forth in its Administrative Questionnaire (or identified in
its Administrative Questionnaire as its Eurocurrency Lending Office) or such other office, branch
or affiliate of such Lender as it may hereafter designate as its Eurocurrency Lending Office by
notice to the Company and the Agent.
“Eurocurrency Loan” means a Loan denominated in US Dollars or in a Designated Foreign
Currency to be made by a Lender as a Eurocurrency Loan in accordance with the applicable Notice of
Borrowing and at a rate per annum based on the Adjusted London Interbank Offered Rate.
“Event of Default” has the meaning set forth in Section 6.01.
“Exchange Rate” means on any day, with respect to any Designated Foreign Currency, the
rate at which such Designated Foreign Currency may be exchanged into US Dollars, as set forth at
approximately 11:00 a.m., London time, on such day on the Reuters World Currency Page for such
Designated Foreign Currency. In the event that such rate does not appear on any Reuters World
Currency Page, the Exchange Rate shall be determined by reference to such other publicly available
service for displaying exchange rates as may be agreed upon by the Agent and the Company. In the
absence of such an agreement, such Exchange Rate shall instead be the arithmetic average of the
spot rates of exchange quoted to the Agent by reference banks (which shall be comprised of any
three of the Agent, the Syndication Agent and the Documentation Agents, as shall be selected by the
Agent) in the markets where such reference banks’ foreign currency exchange operations in respect
of such Designated Foreign Currency are then being conducted, at or about 11:00 a.m., local time,
on such date for the purchase of US Dollars for delivery two Business Days later. In the event
that such arithmetic average shall be used for the determination of the Exchange Rate, the Agent
shall promptly indicate in a notice to the Company the names of the reference banks selected by it
and the calculation details of such arithmetic average; provided that if at the time of any
such determination, for any reason, no such spot rate is being quoted, the Exchange Rate shall be
the commercial market rate of exchange as determined by the Agent by any reasonable method it deems
appropriate to determine such rate
8
(and communicates to the Company), and such determination shall be conclusive absent manifest
error.
“Existing Credit Agreements” means each of (a) the Five-Year Credit Agreement dated as
of September 8, 2004, among the Company, the Borrowing Subsidiaries party thereto, the lenders
named therein, Deutsche Bank Securities Inc., as Syndication Agent, Bank of America, N.A., The
Royal Bank of Scotland plc and Wachovia Bank, National Association, as Documentation Agents, and
JPMCB, as Administrative Agent, and (b) the 364-Day Credit Agreement dated as of September 1, 2005,
among the Company, Bank of America, N.A., as Administrative Agent, and Bank of America, N.A., as
Lender.
“GAAP” means generally accepted accounting principles applied in the United States on
a consolidated basis.
“Guarantee” by any Person means any obligation, contingent or otherwise, of such
Person directly or indirectly guaranteeing any Debt of any other Person and, without limiting the
generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such
Person (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Debt
(whether arising by virtue of partnership arrangements, by agreement to keep-well, to purchase
assets, goods, securities or services, to take-or-pay, or to maintain financial statement
conditions or otherwise) or (ii) entered into for the purpose of assuring in any other manner the
obligee of such Debt of the payment thereof or to protect such obligee against loss in respect
thereof (in whole or in part), provided that the term Guarantee shall not include
endorsements for collection or deposit in the ordinary course of business. The term “Guarantee”
used as a verb has a corresponding meaning.
“Hazardous Substances” means any toxic, radioactive, caustic or otherwise hazardous
substance, including but not limited to petroleum, its derivatives and by-products.
“Hedging Agreement” means any interest rate protection agreement, foreign currency
exchange agreement, currency swap agreement, commodity price protection agreement or other interest
or currency exchange rate or commodity price hedging arrangement. The “principal amount” of any
Hedging Agreement of the Company or any Subsidiary at any time shall be deemed to be the aggregate
amount at such time of the payments that would be required to be made by the Company or such
Subsidiary in the event of any early termination at such time of such Hedging Agreement.
“Increasing Lender” has the meaning set forth in Section 2.18.
“Indemnitee” has the meaning set forth in Section 10.03(b).
“Index Debt” means senior, unsecured, long-term indebtedness for borrowed money of the
Company that is not guaranteed by any other Person or subject to any other credit enhancement.
“Interest Election Request” means a request by the relevant Borrower to convert or
continue a Borrowing in accordance with Section 2.07.
“Interest Period” means: (a) with respect to each Eurocurrency Borrowing, each period
commencing on the date of such Borrowing or on the last day of the preceding Interest Period
applicable thereto and ending one, two, three or six months thereafter, as the applicable
9
Borrower may elect in the applicable Notice of Borrowing or Interest Election Request;
provided that:
(i) any Interest Period which would otherwise end on a day which is not a Business
Day shall be extended to the next succeeding Business Day unless such Business Day falls in
another calendar month, in which case such Interest Period shall end on the next preceding
Business Day;
(ii) any Interest Period which begins on the last Business Day of a calendar month
(or on a day for which there is no numerically corresponding day in the calendar month at
the end of such Interest Period) shall, subject to clause (iii) below, end on the last
Business Day of a calendar month; and
(iii) no Interest Period shall end after the Maturity Date.
(b) with respect to each Base Rate Loan, each period commencing on the date of such Borrowing
or on the last day of the preceding Interest Period applicable thereto and ending on the last day
of the applicable fiscal quarter; provided that:
(i) any Interest Period which would otherwise end on a day which is not a Business
Day shall be extended to the next succeeding Business Day; and
(ii) any Interest Period which would otherwise end after the Maturity Date shall end
on the Maturity Date.
“Internal Revenue Code” means the Internal Revenue Code of 1986, as amended, or any
successor statute.
“JPMCB” means JPMorgan Chase Bank, N.A. (formerly JPMorgan Chase Bank).
“Judgment Currency” has the meaning set forth in Section 10.11(b).
“Lender” means each Person listed on Schedule 2.01 and any other Person that shall
have become a party hereto pursuant to an Assignment and Assumption or as provided in Section 2.18,
other than any such Person that shall have ceased to be a party hereto pursuant to Section
10.06(c), and their respective successors.
“Lien” means, with respect to any asset, any mortgage, lien, pledge, charge or
security interest, or any encumbrance or other type of preferential arrangement that has the
practical effect of creating a security interest, in respect of such asset. For the purposes of
this Agreement, the Company or any Subsidiary shall be deemed to own subject to a Lien any asset
which it has acquired or holds subject to the interest of a vendor or lessor under any conditional
sale agreement, capital lease or other title retention agreement relating to such asset.
“Loan” means a Base Rate Loan or a Eurocurrency Loan and “Loans” means Base
Rate Loans or Eurocurrency Loans or any combination of the foregoing.
“Loan Documents” means this Agreement, each Borrowing Subsidiary Agreement, each
Borrowing Subsidiary Termination, each Accession Agreement and each promissory note delivered
pursuant to this Agreement.
10
“London Interbank Offered Rate” has the meaning set forth in Section 2.06(b).
“Mandatory Costs Rate” has the meaning set forth in Exhibit C hereto.
“Material Debt” means (other than any amounts owed hereunder) Debt of the Company
and/or one or more of its Subsidiaries, arising in one or more related or unrelated transactions,
in an aggregate principal amount exceeding the US Dollar Equivalent of US$50,000,000.
“Material Plan” means at any time a Plan or Plans having aggregate Unfunded
Liabilities in excess of US$50,000,000.
“Material Subsidiary” means at any time (a) any Borrowing Subsidiary or (b) any other
Subsidiary, except Subsidiaries which, if aggregated and considered as a single subsidiary, would
not meet the definition of a “significant subsidiary” contained as of the date hereof in Regulation
S-X of the Securities and Exchange Commission.
“Maturity Date” means October 26, 2010.
“Maximum Rate” has the meaning set forth in Section 10.12.
“Moody’s” means Xxxxx’x Investors Service, Inc.
“Multiemployer Plan” means at any time a multiemployer plan within the meaning of
Section 4001(a)(3) of ERISA to which (i) any member of the ERISA Group is then making or accruing
an obligation to make contributions or (ii) at any time within the preceding five plan years, any
Person, which was at such time a member of the ERISA Group, made contributions.
“Notice of Borrowing” has the meaning set forth in Section 2.02.
“Obligations” means (a)(i) the principal of and interest (including interest accruing
during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding) on the Loans, when and as due,
whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise and
(ii) all other monetary obligations, including fees, costs, expenses and indemnities, whether
primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred
during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding), of the Company or any other
Borrower under this Agreement or any other Loan Document and (b) all obligations of the Borrowers
under each Hedging Agreement entered into with a counterparty that was a Lender or an Affiliate of
a Lender at the time such Hedging Agreement was entered into.
“Other Taxes” has the meaning set forth in Section 8.04(b).
“Parent” means, with respect to any Lender, any Person Controlling such Lender.
“Participant” has the meaning set forth in Section 10.06(b).
“PBGC” means the Pension Benefit Guaranty Corporation or any entity succeeding to any
or all of its functions under ERISA.
11
“Person” means an individual, a corporation, a limited liability company, a
partnership, an association, a trust or any other entity or organization, including a government or
political subdivision or an agency or instrumentality thereof.
“Plan” means at any time an employee pension benefit plan (other than a Multiemployer
Plan) which is covered by Title IV of ERISA or subject to the minimum funding standards under
Section 412 of the Internal Revenue Code and either (i) is maintained, or contributed to, by any
member of the ERISA Group for employees of any member of the ERISA Group or (ii) has at any time
within the preceding five years been maintained, or contributed to, by any Person which was at such
time a member of the ERISA Group for employees of any Person which was at such time a member of the
ERISA Group.
“Quotation Day” means, with respect to any Eurocurrency Borrowing and any Interest
Period, the day on which it is market practice in the relevant interbank market for prime banks to
give quotations for deposits in the currency of such Borrowing for delivery on the first day of
such Interest Period. If such quotations would normally be given by prime banks on more than one
day, the Quotation Day will be the last of such days.
“Refunding Borrowing” means a Borrowing which, after application of the proceeds
thereof, results in no net increase in the outstanding principal amount of Loans made by any
Lender.
“Register” has the meaning set forth in Section 2.04(e).
“Regulation D” means Regulation D of the Board of Governors of the Federal Reserve
System, as in effect from time to time.
“Regulation U” means Regulation U of the Board of Governors of the Federal Reserve
System, as in effect from time to time.
“Required Lenders” means at any time Lenders having more than 50% of the aggregate
amount of the Commitments, or if the Commitments have been terminated, holding Loans evidencing
more than 50% of the aggregate US Dollar Equivalents of the unpaid principal amounts of the Loans.
“Reset Date” has the meaning set forth in Section 1.04.
“Revolving Credit Period” means the period from and including the Effective Date to
but excluding the Maturity Date.
“Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of
the US Dollar Equivalents of the outstanding principal amounts of such Lender’s Loans at such time.
“S&P” means Standard & Poor’s Ratings Group, a division of The XxXxxx-Xxxx Companies.
“Statutory Reserves” shall mean a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or supplemental reserves)
expressed as a decimal established by the Board and any other banking
12
authority to which the Agent is subject for new negotiable nonpersonal time deposits in US
Dollars of over US$100,000 with maturities approximately equal to three months. Such reserve
percentages shall include those imposed pursuant to Regulation D. Statutory Reserves shall be
adjusted automatically on and as of the effective date of any change in any reserve percentage.
“Statutory Reserve Rate” has the meaning set forth in Section 2.06(b).
“Sterling” or “£” means the lawful money of the United Kingdom.
“Subsidiary” means, at any time, any corporation or other entity of which securities
or other ownership interests having ordinary voting power to elect a majority of the board of
directors or other persons performing similar functions or to manage such corporation or other
entity are at the time directly or indirectly, through one or more intermediaries, owned by the
Company.
“Taxes” has the meaning set forth in Section 8.04(a).
“Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the
Adjusted London Interbank Offered Rate or the Alternate Base Rate.
“Unfunded Liabilities” means, with respect to any Plan at any time, the amount (if
any) by which (i) the value of all benefit liabilities under such Plan, determined on a plan
termination basis using the assumptions prescribed by the PBGC for purposes of Section 4044 of
ERISA, exceeds (ii) the fair market value of all Plan assets allocable to such liabilities under
Title IV of ERISA (excluding any accrued but unpaid contributions), all determined as of the then
most recent valuation date for such Plan, but only to the extent that such excess represents a
potential liability of a member of the ERISA Group to the PBGC or any other Person under Title IV
of ERISA.
“United States” means the United States of America, including the States and the
District of Columbia, but excluding its territories and possessions.
“US Dollars” or “US$” refers to lawful money of the United States of America.
“US Dollar Equivalent” means, on any date of determination, (a) with respect to any
amount in US Dollars, such amount, and (b) with respect to any amount in any Designated Foreign
Currency, the equivalent in US Dollars of such amount, determined by the Agent pursuant to Section
1.04 using the Exchange Rate with respect to such Designated Foreign Currency at the time in effect
under the provisions of such Section.
“USA Patriot Act” means the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001.
“Wholly-Owned Consolidated Subsidiary” means any Consolidated Subsidiary all of the
shares of capital stock or other ownership interests of which (except directors’ qualifying shares)
are at the time directly or indirectly owned by the Company.
SECTION 1.02. Accounting Terms and Determinations. Unless otherwise specified herein,
all accounting terms used herein shall be interpreted, all accounting determinations hereunder
shall be made, and all financial statements required to be delivered
13
hereunder shall be prepared in accordance with GAAP as in effect from time to time, applied on
a basis consistent (except for changes concurred in by the Company’s independent public
accountants) with the most recent audited consolidated financial statements of the Company and its
consolidated Subsidiaries delivered to the Lenders; provided that, if the Company notifies
the Agent that the Company wishes to amend any covenant in Article V to eliminate the effect of any
change in GAAP on the operation of such covenant (or if the Agent notifies the Company that the
Required Lenders wish to amend Article V for such purpose), then the Company’s compliance with such
covenant shall be determined on the basis of GAAP in effect immediately before the relevant change
in GAAP became effective, until either such notice is withdrawn or such covenant is amended in a
manner satisfactory to the Company and the Required Lenders.
SECTION 1.03. Types of Borrowings. The term “Borrowing” denotes the aggregation of
Loans of one or more Lenders to be made to the Borrowers pursuant to Article II on a single date
and for a single Interest Period. Borrowings are classified for purposes of this Agreement by
reference to the currency or Type of Loans comprising such Borrowing (e.g., a “Eurocurrency
Borrowing” is a Borrowing comprised of Eurocurrency Loans).
SECTION 1.04. Exchange Rates. (a) Not later than 1:00 p.m., New York City time, on
each Calculation Date, the Agent shall (i) determine the Exchange Rate as of such Calculation Date
with respect to each Designated Foreign Currency that is represented by an outstanding Borrowing as
of such Calculation Date and (ii) give notice thereof to the Lenders and the Company. The Exchange
Rates so determined shall become effective on the first Business Day immediately following the
relevant Calculation Date (a “Reset Date”), shall remain effective until the next
succeeding Reset Date, and shall for all purposes of this Agreement (other than Section 10.11 or
any other provision expressly requiring the use of a current Exchange Rate) be the Exchange Rates
employed in converting any amounts between US Dollars and Designated Foreign Currencies.
(b) Not later than 5:00 p.m., New York City time, on each Reset Date and each date on which
Loans denominated in any Designated Foreign Currency are made, the Agent shall (i) determine the
aggregate amount of the US Dollar Equivalents of the principal amounts of the Loans denominated in
Designated Foreign Currencies then outstanding (after giving effect to any Loans denominated in
Designated Foreign Currencies made or repaid on such date) and (ii) notify the Lenders and the
Company of the results of such determination.
ARTICLE II
THE CREDITS
SECTION 2.01. Commitments to Lend. During the Revolving Credit Period each Lender
severally agrees, on the terms and conditions set forth in this Agreement, to make loans to any
Borrower in US Dollars (in the case of both ABR Loans and Eurocurrency Loans) or (in the case of
Eurocurrency Loans only) any Designated Foreign Currency, pursuant to this Section from time to
time in amounts such that (a) the Revolving Credit Exposure of such Lender at any time shall not
exceed the amount of its Commitment and (b) the aggregate Revolving Credit Exposures of the Lenders
shall not exceed the aggregate Lenders’ Commitments. Each Borrowing under this Section shall be in
an aggregate principal amount at least equal to the Borrowing Minimum and an integral multiple of
the Borrowing Multiple and shall be made from the several Lenders ratably in proportion to their
respective Commitments. Within the foregoing limits, any Borrower may borrow, repay or, to the
extent permitted by Section 2.11, prepay Loans and reborrow at any time during the Revolving Credit
Period.
14
SECTION 2.02. Notice of Borrowing. To request a Borrowing, the applicable Borrower,
or the Company on behalf of the applicable Borrowing Subsidiary, shall give the Agent notice (a
“Notice of Borrowing”) (a) in the case of a Eurocurrency Borrowing denominated in US
Dollars, not later than 12:00 noon, New York City time, three Business Days before the date of the
proposed Borrowing, (b) in the case of a Eurocurrency Borrowing denominated in a Designated Foreign
Currency, not later than 9:00 a.m., London time, three Business Days before the date of the
proposed Borrowing, or (c) in the case of an ABR Borrowing, not later than 12:00 noon, New York
City time, the Business Day of the proposed Borrowing, specifying:
(a) the Borrower requesting such Borrowing (or on which Borrowing Subsidiary’s behalf
the Company is requesting such Borrowing),
(b) the date of such Borrowing, which shall be a Business Day,
(c) the aggregate principal amount and currency of such Borrowing,
(d) whether the Loans comprising such Borrowing are to be Base Rate Loans or
Eurocurrency Loans,
(e) in the case of a Eurocurrency Borrowing, the duration of the Interest Period
applicable thereto, subject to the provisions of the definition of Interest Period, and
(f) the location and number of the Borrower’s account to which funds are to be
disbursed, which shall comply with the requirements of Section 2.03.
SECTION 2.03. Notice to Lenders; Funding of Loans.
(a) Upon receipt of a Notice of Borrowing, the Agent shall promptly notify each Lender of the
contents thereof and of such Lender’s share (if any) of such Borrowing and such Notice of Borrowing
shall not thereafter be revocable by the relevant Borrower.
(b) Not later than 1:00 pm New York City time (or, if the Notice of Borrowing is delivered or
telecopied to the Agent in London (in the case of Eurocurrency Loans only), 11:00 a.m., London
time) on the date of each Borrowing, each Lender participating therein shall (except as provided in
subsection (c) of this Section) make available its share of such Borrowing, by wire transfer of
immediately available funds, to the account of the Agent most recently designated by it for such
purpose by notice to the Lenders. Unless the Agent determines that any applicable condition
specified in Article IV has not been satisfied, the Agent will make the funds so received from the
Lenders available to the relevant Borrower at the Agent’s aforesaid address or such other location
as may be specified by the Company and consented to by the Agent (such consent not to be
unreasonably withheld) and designated by the Borrower or the Company on behalf of the relevant
Borrowing Subsidiary in the applicable Notice of Borrowing.
(c) If any Lender makes a new Loan hereunder on a day on which a Borrower is to repay all or
any part of an outstanding Loan from such Lender, such Lender shall apply the proceeds of its new
Loan to make such repayment and only an amount equal to the difference (if any) between the amount
being borrowed and the amount being repaid shall be made available by such Lender to the Agent as
provided in subsection (b), or remitted by such Borrower to the Agent as provided in Section 2.12,
as the case may be.
15
(d) Unless the Agent shall have received notice from a Lender prior to the date of any
Borrowing that such Lender will not make available to the Agent such Lender’s share of such
Borrowing, the Agent may assume that such Lender has made such share available to the Agent on the
date of such Borrowing in accordance with subsections (b) and (c) of this Section 2.03 and the
Agent may, in reliance upon such assumption, make available to the relevant Borrower on such date a
corresponding amount. If and to the extent that such Lender shall not have so made such share
available to the Agent, such Lender and such Borrower severally agree to repay to the Agent
forthwith on demand such corresponding amount together with interest thereon, for each day from the
date such amount is made available to such Borrower until the date such amount is repaid to the
Agent, at (i) in the case of such Borrower, a rate per annum equal to the interest rate applicable
thereto pursuant to Section 2.06 and (ii) in the case of such Lender, the greater of (x)(A) the
Federal Funds Effective Rate, in the case of Loans denominated in US Dollars and (B) the rate
reasonably determined by the Agent to be the cost to it of funding such amount, in the case of
Loans denominated in a Designated Foreign Currency, and (y) a rate determined by the Agent in
accordance with banking industry rules on interbank compensation. If such Lender shall repay to
the Agent such corresponding amount (prior to such Borrower’s having done so), such amount so
repaid shall constitute such Lender’s Loan included in such Borrowing for purposes of this
Agreement. For the avoidance of doubt, interest paid by any Lender under this Section 2.03(d)
shall not be included in such Lender’s Loan or be otherwise considered a Borrowing.
SECTION 2.04. Repayment of Loans; Evidence of Debt. (a) Each Borrower hereby agrees
that the outstanding principal balance of each Loan shall be payable on the Maturity Date and as
provided in Section 2.05. Each Loan shall bear interest on the outstanding principal balance
thereof as set forth in Section 2.06.
(b) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of each Borrower to the appropriate lending office of such Lender
resulting from each Loan made by such lending office of such Lender from time to time, including
the amounts of principal and interest payable and paid such lending office of such Lender from time
to time under this Agreement.
(c) The Agent shall maintain the Register pursuant to Section 2.04(e), and a subaccount for
each Lender, in which Register and accounts (taken together) shall be recorded (i) the amount and
currency of each Loan made hereunder, the Type of each Loan made and the Interest Period applicable
thereto, (ii) the amount of any principal or interest due and payable or to become due and payable
from each Borrower to each Lender hereunder and (iii) the amount of any sum received by the Agent
hereunder or under any other Loan Document for the account of the Lenders and each Lender’s share
thereof.
(d) The entries made in the Register and accounts maintained pursuant to paragraph (b) and (c)
of this Section 2.04 shall be, to the extent permitted by applicable law, prima facie evidence of
the existence and amounts of the obligations recorded therein; provided, however,
that the failure of any Lender or the Agent to maintain such account, such Register or such
subaccount, as applicable, or any error therein shall not in any manner affect the obligation of
any Borrower to repay the Loans made to such Borrower by such Lender in accordance with their
terms.
(e) The Agent, acting for this purpose as an agent of each Borrower, shall maintain at one of
its offices in The City of New York a copy of each Assignment and Assumption delivered to it and a
register for the recordation of the names and addresses of the
16
Lenders, and the Commitment of, and principal amount of the Loans owing to, each Lender
pursuant to the terms hereof from time to time (the “Register”). Absent manifest error the
entries in the Register shall be conclusive and the Borrowers, the Agent and the Lenders may treat
each person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of any Loan Document, notwithstanding notice to the contrary. The
Register shall be available for inspection by the Company, at any reasonable time and from time to
time upon reasonable prior notice.
(f) Any Lender may request that Loans made by it be evidenced by a promissory note. In such
event, each Borrower shall execute and deliver to such Lender a promissory note payable to the
order of such Lender (or, if requested by such Lender, to such Lender and its registered assigns)
and in substantially the form attached hereto as Exhibit F. Thereafter, the Loans evidenced by
such promissory note and interest thereon shall at all times (including after assignment pursuant
to Section 10.06) be represented by one or more promissory notes in such form payable to the order
of the payee named therein (or, if such promissory note is a registered note, to such payee and its
registered assigns).
SECTION 2.05. Maturity of Loans. Each Loan included in any Borrowing shall mature,
and the principal amount thereof shall be due and payable, on the Maturity Date.
SECTION 2.06. Interest Rates. (a) Each Base Rate Loan shall bear interest on the
outstanding principal amount thereof, for each day from the date such Loan is made until it becomes
due, at a rate per annum equal to the Alternate Base Rate for such day. Such interest shall be
payable for each Interest Period on the last day thereof. Any overdue principal of or interest on
any Base Rate Loan shall bear interest, payable on demand, for each day until paid at a rate per
annum equal to the sum of 2% per annum plus the rate otherwise applicable to Base Rate Loans for
such day.
(b) Each Eurocurrency Loan shall bear interest on the outstanding principal amount thereof,
for the Interest Period applicable thereto, at a rate per annum equal to the Applicable Rate plus
the applicable Adjusted London Interbank Offered Rate. Such interest shall be payable for each
Interest Period on the last day thereof and, if such Interest Period is longer than three months,
at intervals of three months after the first day thereof.
The “Adjusted London Interbank Offered Rate” applicable to any Interest Period means a
rate per annum (rounded upward, if necessary, to the next higher 1/100 of 1%) equal to (i) the
applicable London Interbank Offered Rate multiplied by (ii) the Statutory Reserve Rate;
provided that, with respect to any Eurocurrency Loan denominated in a Designated Foreign
Currency, the Adjusted London Interbank Offered Rate applicable to any Interest Period means a rate
per annum (rounded upward, if necessary, to the next higher 1/100 of 1%) equal to the applicable
London Interbank Offered Rate.
The “London Interbank Offered Rate” means, with respect to any Eurocurrency Borrowing
for any Interest Period, the rate per annum determined by the Agent as of approximately 11:00 a.m.,
London time, on the Quotation Day for such Interest Period by reference to the British Bankers’
Association Interest Settlement Rates for deposits in the currency of such Borrowing (as reflected
on the applicable Telerate screen), for a period equal to such Interest Period; provided
that, to the extent that an interest rate is not ascertainable pursuant to the foregoing provisions
of this definition, the “London Interbank Offered Rate” shall be the average (rounded upward, if
necessary, to the next 1/100 of 1%) of the respective interest rates per annum at which deposits in
the currency of such Borrowing are offered for such Interest
17
Period to major banks in the London interbank market by JPMCB at approximately 11:00 a.m.,
London time, on the Quotation Day for such Interest Period.
“Statutory Reserve Rate” means, with respect to any currency, a fraction (expressed as
a decimal), the numerator of which is the number one and the denominator of which is the number one
minus the aggregate of the maximum reserve, liquid asset or similar percentages (including any
marginal, special, emergency or supplemental reserves) expressed as a decimal established by any
Governmental Authority of the United States or of the jurisdiction of such currency or any
jurisdiction in which Loans in such currency are made to which banks in such jurisdiction are
subject for any category of deposits or liabilities customarily used to fund loans in such currency
or by reference to which interest rates applicable to Loans in such currency are determined. Such
reserve, liquid asset or similar percentages shall include those imposed pursuant to Regulation D
of the Board of Governors of the Federal Reserve System (or any successors). Eurocurrency Loans
shall be deemed to be subject to such reserve requirements without benefit of or credit for
proration, exemptions or offsets that may be available from time to time to any Lender under
Regulation D or any other applicable law, rule or regulation. The Statutory Reserve Rate shall be
adjusted automatically on and as of the effective date of any change in any reserve percentage.
(c) Any overdue principal of or interest on any Eurocurrency Loan shall bear interest, payable
on demand, for each day from and including the date payment thereof was due to but excluding the
date of actual payment, at a rate per annum equal to the sum of 2% per annum plus the rate
otherwise applicable to Eurocurrency Loans for such day.
(d) The Agent shall determine each interest rate applicable to the Loans hereunder. The Agent
shall give prompt notice to the relevant Borrowers and the participating Lenders of each rate of
interest so determined, and its determination thereof shall be conclusive in the absence of
manifest error.
SECTION 2.07. Interest Elections. (a) Each Borrowing initially shall be of the Type
indicated in the applicable Notice of Borrowing and, in the case of a Eurocurrency Borrowing, shall
have an initial Interest Period as specified in such Notice of Borrowing. Thereafter, the relevant
Borrower may elect to convert any such Borrowing denominated in US Dollars to a Borrowing of a
different Type or to continue any such Borrowing and, in the case of a Eurocurrency Borrowing, may
elect Interest Periods therefor, all as provided in this Section. A Borrower may elect different
options with respect to different portions of the affected Borrowing, in which case each such
portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing,
and the Loans comprising each such portion shall be considered a separate Borrowing.
(b) To make an election pursuant to this Section, the Company or the Borrowing Subsidiary (or
the Company on its behalf) shall notify the Agent of such election by telephone by the time that a
Notice of Borrowing would be required under Section 2.02 if such Borrower were requesting a
Borrowing of the Type resulting from such election to be made on the effective date of such
election. Each such telephonic Interest Election Request shall be irrevocable and shall be
confirmed promptly by hand delivery or telecopy to the Agent of a written Interest Election Request
in a form approved by the Agent and signed by the relevant Borrower, or by the Company on its
behalf.
(c) Each telephonic and written Interest Election Request shall specify the following
information in compliance with Section 2.01:
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(i) the Borrowing to which such Interest Election Request applies and, if different
options are being elected with respect to different portions thereof, the portions thereof
to be allocated to each resulting Borrowing (in which case the information to be specified
pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);
(ii) the effective date of the election made pursuant to such Interest Election
Request, which shall be a Business Day;
(iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurocurrency
Borrowing; and
(iv) if the resulting Borrowing is a Eurocurrency Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term “Interest Period”.
If any such Interest Election Request requests a Eurocurrency Borrowing but does not specify an
Interest Period, then the relevant Borrower shall be deemed to have selected an Interest Period of
one month’s duration.
(d) Promptly following receipt of an Interest Election Request, the Agent shall advise each
Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.
(e) If the relevant Borrower fails to deliver a timely Interest Election Request with respect
to a Eurocurrency Borrowing prior to the end of the Interest Period applicable thereto, then,
unless such Borrowing is repaid as provided herein, at the end of such Interest Period such
Borrowing shall be (i) in the case of a Borrowing denominated in US Dollars, converted to an ABR
Borrowing and (ii) in the case of a Borrowing denominated in a Designated Foreign Currency, repaid
at the end of such Interest Period. Notwithstanding any contrary provision hereof, if an Event of
Default has occurred and is continuing and the Agent, at the request of the Required Lenders, so
notifies the Company, then, so long as an Event of Default is continuing (i) no outstanding
Borrowing denominated in US Dollars may be converted to or continued as a Eurocurrency Borrowing
and (ii) unless repaid, each Eurocurrency Borrowing denominated in US Dollars shall be converted to
an ABR Borrowing at the end of the Interest Period applicable thereto.
SECTION 2.08. Fees.
(a) Facility Fees. The Company shall pay or cause the Borrowing Subsidiaries to pay
to the Agent in US Dollars, for the accounts of the Lenders, facility fees at the relevant Facility
Fee Rate specified in the definition of Applicable Rate. Such facility fees shall accrue (i) from
and including the date hereof to but excluding the date on which the Commitments are terminated in
their entirety, on the daily aggregate amount of the Commitments (whether used or unused) and (ii)
from and including the date on which the Commitments are terminated in their entirety to but
excluding the date on which the Loans shall be repaid in their entirety, on the daily aggregate
amount of the US Dollar Equivalents of the outstanding principal amounts of the Loans. Accrued
facility fees shall be payable quarterly in arrears on each March 31, June 30, September 30 and
December 31 and upon the date of termination of the Commitments in their entirety (and, if Loans
shall be outstanding thereafter, the date on which
19
the Loans shall be repaid in their entirety), provided that if any Loans shall be
outstanding after the Maturity Date, then such facility fee shall be payable on demand.
(b) Utilization Fees. The Company shall pay or cause the Borrowing Subsidiaries to
pay to the Agent in US Dollars, for the accounts of the Lenders, utilization fees at the relevant
Utilization Fee Rate specified in the definition of Applicable Rate, on the amounts of the
outstanding Loans of the Lenders for each day on which the aggregate amount of the US Dollar
Equivalents of the outstanding principal amounts of the Loans shall be greater than 50% of the
aggregate amount of the Commitments. Accrued utilization fees, if any, shall be payable quarterly
in arrears on each March 31, June 30, September 30 and December 31, on the date on which the
Commitments terminate and, if later, on the date the Loans shall be repaid in their entirety.
SECTION 2.09. Optional Termination or Reduction of Commitments. The Company may, upon
at least three Business Days’ notice to the Agent, (i) terminate the Commitments at any time, if no
Loans are outstanding at such time or (ii) ratably reduce the Commitments from time to time by an
aggregate amount at least equal to the Borrowing Minimum and an integral multiple of the Borrowing
Multiple; provided that the outstanding Loans that would exceed the reduced Commitments
must be prepaid together with any redeployment costs payable pursuant to Section 2.13. Any
termination or reduction of the Commitments under this Section 2.09 shall be permanent.
SECTION 2.10. Mandatory Termination of Commitments. Unless previously terminated, the
Commitments shall terminate on the Maturity Date. Loans outstanding on the Maturity Date (together
with accrued interest thereon) shall be due and payable on the Maturity Date.
SECTION 2.11. Prepayments. (a) Any Borrower may, upon at least three Business Days’
notice to the Agent, prepay any ABR Borrowing or Eurocurrency Borrowing in whole at any time or
from time to time in part in amounts at least equal to the Borrowing Minimum that are multiples of
the Borrowing Multiple, together with accrued interest thereon to the date of prepayment.
(b) In the event and on each occasion that the aggregate amount of the Revolving Credit
Exposures exceeds 105% of the aggregate amount of the Commitments, the Borrowers shall promptly
prepay Borrowings in an aggregate amount equal to the amount in excess of such aggregate amount of
the Commitments. The Agent shall promptly notify (a) the Company in the event it determines that
any prepayment is required under this paragraph and (b) each Lender of such Lender’s ratable share
(if any) of such prepayment. If, on any Reset Date, the aggregate Revolving Credit Exposures shall
exceed 105% of the aggregate amount of the Commitments, then the Borrowers shall prepay Borrowings
in an aggregate amount equal to the amount in excess of such aggregate amount of the Commitments
not later than the next Business Day following receipt by the Company of a notification from the
Agent of the amount payable hereunder.
(c) If prepayment of a Eurocurrency Loan occurs other than at the end of an applicable
Interest Period, then the prepayment will be subject to compensation in respect to redeployment
costs as provided in Section 2.13. Each prepayment under this Section 2.11 shall be applied to
prepay ratably the Loans of the several Lenders included in such prepaid Borrowings.
20
(d) Upon receipt of a notice of prepayment pursuant to paragraph (a), the Agent shall promptly
notify each Lender of the contents thereof and of such Lender’s ratable share (if any) of such
prepayment and such notice shall not thereafter be revocable by such Borrower.
SECTION 2.12. General Provisions as to Payments.
(a) Each Borrower shall make each payment of principal of, and interest on, the Loans and of
fees hereunder or under any other Loan Document, not later than 12:00 noon New York City time (or,
if such payment is required to be delivered or telecopied to the Agent in London, 11:00 a.m.,
London time) on the date when due, in immediately available funds, without set-off or counterclaim,
to the Agent at its address referred to in Section 10.01 or at such other offices as the Agent
shall from time to time specify in a notice delivered to the Company. The Agent will promptly
distribute to each Lender its ratable share of each such payment received by the Agent for the
account of the Lenders. Whenever any payment of principal of, or interest on, the Base Rate Loans
or of fees shall be due on a day which is not a Business Day, the date for payment thereof shall be
extended to the next succeeding Business Day. Whenever any payment of principal of, or interest
on, the Eurocurrency Loans shall be due on a day which is not a Business Day, the date for payment
thereof shall be extended to the next succeeding Business Day unless such Business Day falls in
another calendar month, in which case the date for payment thereof shall be the next preceding
Business Day. If the date for any payment of principal is extended by operation of law or
otherwise, interest thereon shall be payable for such extended time. All payments hereunder of
principal or interest in respect of any Loan (or of any breakage indemnity in respect of any Loan)
shall be made in the currency of such Loan; all other payments hereunder and under each other Loan
Document shall be made in US Dollars, except as otherwise expressly provided.
(b) Unless the Agent shall have received notice from the relevant Borrower, or from the
Company on behalf of the relevant Borrower, prior to the date on which any payment is due to the
Lenders hereunder or under any other Loan Document that such Borrower will not make such payment in
full, the Agent may assume that such Borrower has made such payment in full to the Agent on such
date and the Agent may, in reliance upon such assumption, cause to be distributed to each Lender on
such due date an amount equal to the amount then due such Lender. If and to the extent that such
Borrower shall not have so made such payment, each Lender agrees to repay to the Agent forthwith on
demand such amount distributed to such Lender together with interest thereon, for each day from the
date such amount is distributed to such Lender until the date such Lender repays such amount to the
Agent, at the greater of (i)(A) the Federal Funds Effective Rate, in the case of Loans denominated
in US Dollars and (B) the rate reasonably determined by the Agent to be the cost to it of funding
such amount, in the case of Loans denominated in a Designated Foreign Currency, and (ii) a rate
determined by the Agent in accordance with banking industry rules on interbank compensation.
(c) Any payment required to be made to any Borrower by the Agent hereunder or under any other
Loan Document shall be deemed to have been made by the time required if the Agent shall, at or
before such time, have taken the necessary steps to make such payment in accordance with the
regulations or operating procedures of the clearing or settlement system used by the Agent to make
such payment.
SECTION 2.13. Funding Losses. In the event of the payment of any amount of principal
with respect to any Eurocurrency Loan (pursuant to Article VI or VIII or otherwise) on any day
other than the last day of the Interest Period applicable thereto, or if any Borrower fails to
21
borrow any Eurocurrency Loans after notice has been given to any Lender in accordance with
Section 2.03(a), the relevant Borrower shall reimburse each Lender within 15 days after demand for
any resulting loss or expense incurred by it (or by an existing or prospective Participant in the
related Loan), including (without limitation) any loss incurred in obtaining, liquidating or
employing deposits from third parties, but excluding loss of margin for the period after any such
payment or failure to borrow, provided that such Lender shall have delivered to such
Borrower, or to the Company on its behalf, a certificate as to the amount of such loss or expense
and accompanied by a certificate of such Lender explaining in reasonable detail the method by which
such amount shall have been determined, which certificate shall be conclusive in the absence of
manifest error.
SECTION 2.14. Computation of Interest and Fees. Interest hereunder computed by
reference to the Alternative Base Rate at times when the Alternative Base Rate is based on the
Prime Rate, shall be computed on the basis of a year of 365 days and paid for the actual number of
days elapsed (including the first day but excluding the last day). All other interest and fees
shall be computed on the basis of a year of 360 days (except in the case of Loans denominated in
Sterling, for which a year of 365 or 366 days will be used for purposes of computing interest) and
paid for the actual number of days elapsed (including the first day but excluding the last day).
SECTION 2.15. Borrowing Subsidiaries. On or after the date hereof, the Company may
designate any Subsidiary as a Borrowing Subsidiary by delivery to the Agent of a Borrowing
Subsidiary Agreement executed by such Subsidiary and the Company, and upon such delivery such
Subsidiary shall for all purposes of each Loan Document be a Borrowing Subsidiary and a party to
this Agreement until the Company shall have executed and delivered to the Agent a Borrowing
Subsidiary Termination with respect to such Subsidiary, whereupon such Subsidiary shall cease to be
a Borrowing Subsidiary and a party to this Agreement. Notwithstanding the preceding sentence, no
Borrowing Subsidiary Termination will become effective as to any Borrowing Subsidiary at a time
when any principal of or interest on any Loan to such Borrowing Subsidiary shall be outstanding
hereunder, provided that such Borrowing Subsidiary Termination shall be effective to
terminate such Borrowing Subsidiary’s right to make further Borrowings under this Agreement.
Promptly following receipt of any Borrowing Subsidiary Agreement or any Borrowing Subsidiary
Termination, the Agent shall send a copy thereof to each Lender.
SECTION 2.16. Foreign Subsidiary Costs. (a) If the cost to any Lender of making or
maintaining any Loan to a Borrowing Subsidiary is increased (or the amount of any sum received or
receivable by any Lender (or its applicable lending office) is reduced) by an amount deemed in good
faith by such Lender to be material, by reason of the fact that such Borrowing Subsidiary is
incorporated in, or conducts business in, a jurisdiction outside the United States, such Borrowing
Subsidiary shall indemnify such Lender for such increased cost or reduction within 15 days after
demand by such Lender (with a copy to the Agent). A certificate of such Lender claiming
compensation under this paragraph and setting forth the additional amount or amounts to be paid to
it hereunder (and the basis for the calculation of such amount or amounts) shall be conclusive in
the absence of manifest error.
(b) Each Lender will promptly notify the Company and the Agent of any event of which it has
knowledge that will entitle such Lender to additional interest or payments pursuant to paragraph
(a) above, but in any event within 45 days after such Lender obtains actual knowledge thereof;
provided that (i) if any Lender fails to give such notice within 45 days after it obtains
actual knowledge of such an event, such Lender shall, with respect to compensation payable pursuant
to this Section 2.16 in respect of any costs resulting from such event, only be
22
entitled to payment under this Section 2.16 for costs incurred from and after the date 45 days
prior to the date that such Lender does give such notice and (ii) each Lender will, promptly after
obtaining such actual knowledge, designate a different applicable lending office, if, in the
judgment of such Lender, such designation will avoid the need for, or reduce the amount of, such
compensation and will not be otherwise disadvantageous to such Lender.
SECTION 2.17. Additional Reserve Costs. (a) If and so long as any Lender is required
to make special deposits with the Bank of England, to maintain reserve asset ratios or to pay fees,
in each case in respect of such Lender’s Eurocurrency Loans, such Lender may require the relevant
Borrower to pay, contemporaneously with each payment of interest on each of such Loans, additional
interest on such Loans at a rate per annum equal to the Mandatory Costs Rate calculated in
accordance with the formula and in the manner set forth in Exhibit C hereto.
(b) If and so long as any Lender is required to comply with reserve assets, liquidity, cash
margin or other requirements of any monetary or other authority (including any such requirement
imposed by the European Central Bank or the European System of Central Banks, but excluding
requirements reflected in the Statutory Reserve Rate or the Mandatory Costs Rate) in respect of any
of such Lender’s Eurocurrency Loans, such Lender may require the relevant Borrower to pay,
contemporaneously with each payment of interest on each of such Lender’s Eurocurrency Loans subject
to such requirements, additional interest on such Loans at a rate per annum specified by such
Lender to be the cost to such Lender of complying with such requirements in relation to such Loans.
(c) Any additional interest owed pursuant to paragraph (a) or (b) above shall be determined by
the relevant Lender, which determination shall be conclusive absent manifest error, and notified to
the Company, or, if the relevant Borrower is a Borrowing Subsidiary, the Company on behalf of such
Borrowing Subsidiary, accompanied by a certificate of such Lender explaining in reasonable detail
the method by which such amount shall have been determined (with a copy to the Agent), at least
five Business Days before each date on which interest is payable for the relevant Loan, and such
additional interest so notified to the Company (either in its own capacity or on behalf of the
relevant Borrowing Subsidiary) by such Lender shall be payable to the Agent for the account of such
Lender on each date on which interest is payable for such Loan. Any Lender which notifies the
Company (either in its own capacity or on behalf of the relevant Borrowing Subsidiary) and the
Agent under this paragraph (c) shall promptly withdraw such notice (by written certificate of
withdrawal given to the Company and the Agent) in the event such Lender shall become aware that the
circumstances giving rise to such additional interest have ceased to exist. Any Lender claiming
any indemnity payment or additional amounts payable pursuant to this Section 2.17 shall use
reasonable efforts (consistent with legal and regulatory restrictions) to file any certificate or
document reasonably requested in writing by the Company or to change the jurisdiction of its
applicable lending office if the making of such a filing or change would avoid the need for or
reduce the amount of any such indemnity payment or additional amounts that may thereafter accrue
and would not, in the sole determination of such Lender, be otherwise disadvantageous to such
Lender.
SECTION 2.18. Increase in Commitments. The Company may, by written notice to the
Agent (which shall promptly deliver a copy to the Lenders), executed by the Company and one or more
financial institutions (any such financial institution referred to in this Section being called an
“Increasing Lender”), which may include any Lender, cause Commitments to be made available
by the Increasing Lenders (or cause the Commitments of the Increasing Lenders to be increased, as
the case may be) in an amount not less than $10,000,000
and in an aggregate amount that is an integral multiple of $1,000,000 for each Increasing
Lender
23
set forth in such notice, provided, however, that (a) the aggregate amount
of all new Commitments and increases in existing Commitments pursuant to this paragraph during the
term of this Agreement shall in no event exceed $250,000,000, (b) each Increasing Lender, if not
already a Lender hereunder, shall be subject to the approval of the Agent (which approval shall not
be unreasonably withheld) and (c) each Increasing Lender, if not already a Lender hereunder, shall
become a party to this Agreement by completing and delivering to the Agent a duly executed
accession agreement substantially in the form set forth in Exhibit G (an “Accession
Agreement”). New Commitments and increases in Commitments pursuant to this Section shall
become effective on the date specified in the applicable notices delivered pursuant to this
Section. Upon the effectiveness of any Accession Agreement to which any Increasing Lender is a
party, (i) such Increasing Lender shall thereafter be deemed to be a party to this Agreement and
shall be entitled to all rights, benefits and privileges accorded a Lender hereunder and subject to
all obligations of a Lender hereunder and (ii) Schedule 2.01 shall be deemed to have been amended
to reflect the Commitment of such Increasing Lender as provided in such Accession Agreement. Upon
the effectiveness of any increase pursuant to this Section in the Commitment of a Lender already a
party hereto, Schedule 2.01 shall be deemed to have been amended to reflect the increased
Commitment of such Lender. Notwithstanding the foregoing, no increase in the aggregate Commitments
(or in the Commitment of any Lender) shall become effective under this Section unless, on the date
of such increase, the Agent shall have received a certificate, dated as of the effective date of
such increase and executed by the chief financial officer or the chief accounting officer of the
Company, to the effect that the conditions set forth in paragraphs (b), (c) and (d) of Section 4.02
shall be satisfied (with all references in such paragraphs to a Borrowing being deemed to be
references to such increase). Following any extension of a new Commitment or increase of a
Lender’s Commitment pursuant to this Section 2.18, any Loans outstanding prior to the effectiveness
of such extension or increase shall remain outstanding until the ends of the respective Interest
Periods applicable thereto, and shall then be repaid or refinanced with new Loans made pursuant to
Section 2.01 ratably in accordance with the respective Commitments of the Lenders.
SECTION 2.19. No Double Payment. The provisions of Sections 2.16, 2.17 and 8.03 shall
apply without duplication and no Lender shall be compensated more than once for a single loss, cost
or expense of the sort referred to in such Sections.
ARTICLE III
REPRESENTATIONS AND WARRANTIES
The Company represents and warrants that:
SECTION 3.01. Corporate Existence and Power. The Company and each Borrowing
Subsidiary is a corporation duly incorporated, validly existing and in good standing under the laws
of its jurisdiction of organization, and has all corporate powers and all material governmental
licenses, authorizations, consents and approvals required to carry on its business as now
conducted.
SECTION 3.02. Corporate and Governmental Authorization; No Contravention. The
execution, delivery and performance by each Borrower of this Agreement and each other Loan Document
to which it is a party are within such Borrower’s corporate powers, have been duly authorized by
all necessary corporate action, require no action by or in respect of, or filing with, any
governmental body, agency or official and do not contravene, or constitute a default
under, any provision of applicable law or regulation or of the certificate of incorporation or
by-
24
laws of the Company or any Borrowing Subsidiary or of any agreement, judgment, injunction,
order, decree or other instrument binding upon the Company or any of its Subsidiaries or result in
the creation or imposition of any Lien on any asset of the Company or any of its Subsidiaries.
SECTION 3.03. Binding Effect. This Agreement and each other Loan Document to which it
is a party constitutes a valid and binding agreement of each Borrower.
SECTION 3.04. Financial Information.
(a) The consolidated balance sheet of the Company and its Consolidated Subsidiaries as
of December 31, 2004, and the related consolidated statements of earnings and cash flows
for the fiscal year then ended, reported on by PricewaterhouseCoopers LLP and included in
the Company’s 2004 Form 10-K, a copy of which and of which balance sheet and related
statements have been delivered to each of the Lenders, fairly present, in conformity with
GAAP, the consolidated financial position of the Company and its Consolidated Subsidiaries
as of such date and their consolidated results of operations and cash flows for such fiscal
year.
(b) The unaudited consolidated balance sheet of the Company and its Consolidated
Subsidiaries as of June 30, 2005 and the related unaudited consolidated statements of
earnings and cash flows for the six months then ended, set forth in the Company’s quarterly
report for the fiscal quarter ended June 30, 2005, as filed with the Securities and
Exchange Commission on Form 10-Q, a copy of which has been delivered to each of the
Lenders, fairly present, in conformity with GAAP to the extent described in Note A thereto
applied on a basis consistent with the financial statements referred to in subsection (a)
of this Section, the consolidated financial position of the Company and its Consolidated
Subsidiaries as of such date and their consolidated results of operations and cash flows
for such six month period (subject to normal year-end adjustments).
(c) Except as reflected in the financial statements referred to in paragraph (b)
above, between December 31, 2004, and the date hereof, there has been no material adverse
change in the business, financial position, results of operations or prospects of the
Company and its Consolidated Subsidiaries, considered as a whole.
SECTION 3.05. Litigation. There is no action, suit or proceeding pending against, or
to the knowledge of the Company threatened against or affecting, the Company or any of its
Subsidiaries before any court or arbitrator or any governmental body, agency or official in which
there is a reasonable possibility of an adverse decision which could materially adversely affect
the business, consolidated financial position or consolidated results of operations of the Company
and its Consolidated Subsidiaries considered as a whole or which in any manner draws into question
the validity of this Agreement or any other Loan Document.
SECTION 3.06. Compliance with ERISA. Except to the extent that failure to so fulfill
its obligations or be in compliance could not materially adversely affect the business,
consolidated financial position or consolidated results of operations of the Company and its
Consolidated Subsidiaries, considered as a whole, each member of the ERISA Group has fulfilled its
obligations under the minimum funding standards of ERISA and the Internal Revenue Code with respect
to each Plan and is in compliance in all material respects with the presently applicable provisions
of ERISA and the Internal Revenue Code with respect to each Plan. No member of the ERISA Group has
(i) sought a waiver of the minimum funding standard under
Section 412 of the Internal Revenue Code in respect of any Plan, (ii) failed to make any
required
25
contribution or payment to any Plan or Multiemployer Plan or in respect of any Benefit
Arrangement, or made any amendment to any Plan or Benefit Arrangement, which has resulted or,
solely as a result of the passage of time, could result in the imposition of a Lien or the posting
of a bond or other security under Sections 302(f) or 307 of ERISA or Sections 412(n) or 401(a)(29)
of the Internal Revenue Code (or any successor provisions thereto) or (iii) incurred any liability
under Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA
if such action, failure or incurrence could materially adversely affect the business, consolidated
financial position or consolidated results of operations of the Company and its Consolidated
Subsidiaries, considered as a whole.
SECTION 3.07. Environmental Matters. In the ordinary course of its business, the
Company reviews, or causes its Subsidiaries to review, the effect of Environmental Laws on the
business, operations and properties of the Company and its Subsidiaries, in the course of which
they seek to identify and evaluate, in accordance with GAAP, associated liabilities and costs
(including, without limitation, any capital or operating expenditures required for clean-up or
closure of their properties, any capital or operating expenditures required to achieve or maintain
compliance with environmental protection standards imposed by law or as a condition of any license,
permit or contract, any periodic or permanent shutdown of any facility or reduction in the level of
or change in the nature of operations conducted thereat, any costs or liabilities in connection
with off-site disposal of wastes or Hazardous Substances, and any liabilities to third parties,
including employees, and any related costs and expenses). On the basis of this review, the Company
has reasonably concluded that such associated liabilities and costs, including the costs of
compliance with Environmental Laws, are unlikely to have a material adverse effect on the business,
financial condition, results of operations or prospects of the Company and its Consolidated
Subsidiaries, considered as a whole.
SECTION 3.08. Taxes. United States Federal income tax returns of the Company, which
files a consolidated domestic return, have been examined through the fiscal year ended December 31,
2002 and closed through the fiscal year ended December 31, 1997. The Company and its Subsidiaries
have filed all United States Federal income tax returns and all other material tax returns which
are required to be filed by them and have paid all taxes due pursuant to such returns or pursuant
to any assessment received by the Company or any Subsidiary, excluding assessments currently being
contested in good faith by appropriate proceedings. The charges, accruals and reserves on the
books of the Company and its Subsidiaries in respect of taxes or other governmental charges are, in
the opinion of the Company, adequate.
SECTION 3.09. Subsidiaries. Each of the Company’s corporate Material Subsidiaries is
a corporation duly incorporated, validly existing and in good standing under the laws of its
jurisdiction of incorporation, and has all corporate powers and all material governmental licenses,
authorizations, consents and approvals required to carry on its business as now conducted.
SECTION 3.10. Not an Investment Company. Neither the Company nor any of the Borrowing
Subsidiaries is an “investment company” within the meaning of the Investment Company Act of 1940,
as amended.
SECTION 3.11. Full Disclosure. All information heretofore furnished by any Borrower
to the Agent or any Lender for purposes of or in connection with the Loan Documents or any
transaction contemplated hereby is, and all such information hereafter furnished by any Borrower to
the Agent or any Lender will be, when taken as a whole, true and accurate in all
material respects on the date as of which such information is stated or certified. The
Company
26
has disclosed to the Lenders in writing any and all facts which materially and adversely
affect or may affect (to the extent the Company can now reasonably foresee), the business,
operations or financial condition of the Company and its Consolidated Subsidiaries, taken as a
whole, or the ability of any Borrower to perform its obligations under the Loan Documents.
ARTICLE IV
CONDITIONS
SECTION 4.01. Effectiveness. This Agreement shall become effective as provided in
Section 10.09, subject to the satisfaction of the following conditions:
(a) The Agent shall have received the following documents, each dated the Closing Date unless
otherwise indicated:
(i) an opinion of Xxxxxx X. Xxxxxxx, General Counsel for the Company, substantially in
the form of Exhibit D hereto and covering such additional matters relating to the
transactions contemplated hereby as the Required Lenders may reasonably request; and
(ii) all documents the Agent may reasonably request relating to the existence of the
Borrowers, the corporate authority for and the validity of each Loan Document, the
financial condition of each of the Borrowers and any other matters relevant hereto, all in
form and substance satisfactory to the Agent.
(b) The commitments under the Existing Credit Agreements shall have been or shall
simultaneously be terminated, any amounts outstanding or accrued for the accounts of the lenders
thereunder shall have been paid in full and the Agent shall have received such evidence as it shall
reasonably have requested as to the satisfaction of such conditions.
(c) The Agent shall have received all fees and other amounts due and payable hereunder on or
prior to the Closing Date, including, to the extent invoiced, reimbursement or payment of all
out-of-pocket expenses required to be reimbursed or paid by the Borrowers hereunder or under any
other Loan Document.
The Agent shall promptly notify the Company and the Lenders of the Closing Date, and such
notice shall be conclusive and binding on all parties hereto.
SECTION 4.02. Each Credit Event. The obligation of any Lender to make a Loan on the
occasion of any Borrowing (each such event being called a “Credit Event”) is subject to the
satisfaction of the following conditions:
(a) receipt by the Agent of a Notice of Borrowing as required by Section 2.02;
(b) the fact that, immediately after such Borrowing, the aggregate Revolving Credit
Exposures of the Lenders will not exceed the aggregate amount of the Commitments;
(c) the fact that, immediately before and after such Borrowing, no Default or Event of
Default shall have occurred and be continuing; and
27
(d) the fact that the representations and warranties of the Borrowers contained in
this Agreement (except, in the case of (i) any Borrowing, the representations and
warranties set forth in Section 3.04(c), and (ii) a Refunding Borrowing, the
representations and warranties set forth in Sections 3.05 and 3.07 as to any matter which
has theretofore been disclosed in writing by the Company to the Agent) or in the applicable
Borrowing Subsidiary Agreement shall be true on and as of the date of such Borrowing.
Each Borrowing hereunder shall be deemed to be a representation and warranty by the Borrowers on
the date of such Borrowing as to the facts specified in clauses (b), (c) and (d) of this Section.
SECTION 4.03. Initial Credit Event for each Borrowing Subsidiary. The obligation of
each Lender to make Loans to any Borrowing Subsidiary is subject to the satisfaction of the
following conditions:
(a) The Agent (or its counsel) shall have received such Borrowing Subsidiary’s
Borrowing Subsidiary Agreement duly executed by all parties thereto.
(b) The Agent shall have received a favorable written opinion of counsel for such
Borrowing Subsidiary reasonably satisfactory to the Agent, substantially in the form of
Exhibit E and covering such additional matters relating to such Borrowing Subsidiary, the
transactions contemplated hereby or its Borrowing Subsidiary Agreement as the Agent may
reasonably request.
(c) The Agent shall have received all documents the Agent may reasonably request
relating to the existence of such Borrowing Subsidiary, the authorization of the
transactions contemplated hereby insofar as they relate to such Borrowing Subsidiary, the
financial condition of such Borrowing Subsidiary and any other matters relevant hereto, and
any other legal matters relating to such Borrowing Subsidiary, its Borrowing Subsidiary
Agreement or such transactions, all in form and substance satisfactory to the Agent.
ARTICLE V
COVENANTS
The Company agrees that, so long as this Agreement shall remain in effect or the principal of
or interest on any Loan, any fees or any other expenses or amounts payable hereunder or under any
other Loan Document shall be unpaid:
SECTION 5.01. Information. The Company will deliver to each of the Lenders:
(a) as soon as available and in any event within 60 days after the end of each fiscal
year of the Company, a consolidated balance sheet of the Company and its Consolidated
Subsidiaries as of the end of such fiscal year and the related consolidated statements of
earnings and cash flow for such fiscal year, setting forth in each case in comparative form
the figures for the previous fiscal year (it being understood that the requirement to
deliver such information shall be satisfied by the delivery of the
Company’s annual report on Form 10-K for such fiscal year so long as such annual
report includes such information, which delivery obligation shall be deemed to have been
satisfied by the registration by the Company of each Lender in an electronic delivery
28
service and the making of such financial statement available to each Lender on such
service), all reported on in a manner acceptable to the Securities and Exchange Commission
by PricewaterhouseCoopers LLP or other independent public accountants of nationally
recognized standing;
(b) as soon as available and in any event within 40 days (or 35 days for any quarter
for which the Company’s applicable deadline for the filing of its quarterly report on Form
10-Q with the Securities and Exchange Commission is 35 days) after the end of each of the
first three quarters of each fiscal year of the Company, a consolidated balance sheet of
the Company and its Consolidated Subsidiaries as of the end of such quarter and the related
consolidated statements of earnings and cash flow for such quarter and for the portion of
the Company’s fiscal year ended at the end of such quarter, setting forth in the case of
such statements of earnings and cash flows in comparative form the figures for the
corresponding quarter and the corresponding portion of the Company’s previous fiscal year
(it being understood that the requirement to deliver such information shall be satisfied by
the delivery of the Company’s quarterly report on Form 10-Q for such fiscal quarter so long
as such quarterly report includes such information, which delivery obligation shall be
deemed to have been satisfied by the registration by the Company of each Lender in an
electronic delivery service and the making of such financial statement available to each
Lender on such service), all certified (subject to normal year-end adjustments) as to
fairness of presentation, GAAP and consistency (except to the extent certain information
and footnotes have been omitted or abbreviated as permitted by the Securities and Exchange
Commission in its regulations relating to interim financial statements) by the chief
financial officer or the chief accounting officer of the Company;
(c) within (i) 60 days of the end of each fiscal year of the Company and (ii) 40 days
(or 35 days for any quarter for which the Company’s applicable deadline for the filing of
its quarterly report on Form 10-Q with the Securities and Exchange Commission is 35 days)
of the end of each of the first three quarters of each fiscal year of the Company, a
certificate of the chief financial officer or the chief accounting officer of the Company
(x) setting forth in reasonable detail the calculations required to establish whether the
Company was in compliance with the requirements of Section 5.07 on the date of such
financial statements, (y) stating that the Company is in compliance with Section 5.08 and
setting forth in reasonable detail any appropriate calculations required to establish such
compliance, and (z) stating whether any Default or Event of Default exists on the date of
such certificate and, if any Default or Event of Default then exists, setting forth the
details thereof and the action which the Company is taking or proposes to take with respect
thereto;
(d) simultaneously with the delivery of each certificate referred to in (c) above with
respect to a completed fiscal year referred to in clause (a) above, a statement of the firm
of independent public accountants which reported on such statements (i) whether anything
has come to their attention to cause them to believe that any Default or Event of Default
existed on the date of such statements and (ii) confirming the calculations set forth in
the officer’s certificate delivered simultaneously therewith pursuant to clause (c) above;
(e) within five days after any officer of the Company obtains knowledge of any Default
or Event of Default, if such Default is then continuing, a certificate of the chief
financial officer or the chief accounting officer of the Company setting forth the
29
details
thereof and the action which the Company is taking or proposes to take with respect
thereto;
(f) promptly upon the mailing thereof to the shareholders of the Company generally,
copies of all financial statements, reports and proxy statements so mailed if not filed
with the Securities and Exchange Commission electronically;
(g) if and when any member of the ERISA Group (i) gives or is required to give notice
to the PBGC of any “reportable event” (as defined in Section 4043 of ERISA) with respect to
any Plan which might constitute grounds for a termination of such Plan under Title IV of
ERISA, or knows that the plan administrator of any Plan has given or is required to give
notice of any such reportable event, a copy of the notice of such reportable event given or
required to be given to the PBGC; (ii) receives notice of complete or partial withdrawal
liability under Title IV of ERISA or notice that any Multiemployer Plan is in
reorganization, is insolvent or has been terminated, a copy of such notice; (iii) receives
notice from the PBGC under Title IV of ERISA of an intent to terminate, impose liability
(other than for premiums under Section 4007 of ERISA) in respect of, or appoint a trustee
to administer any Plan, a copy of such notice; (iv) applies for a waiver of the minimum
funding standard under Section 412 of the Internal Revenue Code, a copy of such
application; (v) gives notice of intent to terminate any Plan under Section 4041(c) of
ERISA, a copy of such notice and other information filed with the PBGC; (vi) gives notice
of withdrawal from any Plan pursuant to Section 4063 of ERISA while such member is a
“substantial employer” (within the meaning of such Section) with respect to such Plan, a
copy of such notice; or (vii) fails to make any required payment or contribution to any
Plan or Multiemployer Plan or in respect of any Benefit Arrangement, or makes any amendment
to any Plan or Benefit Arrangement, which has resulted or, solely as a result of the
passage of time, could result in the imposition of a Lien or the posting of a bond or other
security under Sections 302(f) or 307 of ERISA or Sections 412(n) or 401(a)(29) of the
Internal Revenue Code, or any successor provisions thereto, a certificate of the chief
financial officer or the chief accounting officer of the Company setting forth details as
to such occurrence and action, if any, which the Company or applicable member of the ERISA
Group is required or proposes to take; provided, however, that such
certificate shall be required only if such occurrence or action is reasonably likely to
have a material adverse effect on the business, consolidated financial position or
consolidated results of operations of the Company and its Consolidated Subsidiaries,
considered as a whole;
(h) promptly after Xxxxx’x or S&P shall have announced a change in the rating
established or deemed to have been established for the Index Debt, written notice of such
rating change;
(i) promptly following a request therefor, all documentation and other information
that a Lender reasonably requests in order to comply with ongoing obligations under
applicable “know your customer” and anti-money laundering rules and regulations, including
the USA Patriot Act; and
(j) from time to time such additional information regarding the financial position or
business of the Company and its Subsidiaries as the Agent, at the request of any Lender,
may reasonably request.
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SECTION 5.02. Payment of Obligations. The Company will pay and discharge, and will
cause each Subsidiary to pay and discharge, at or before maturity, all their respective material
obligations and liabilities, including, without limitation, tax liabilities, except where the same
may be contested in good faith by appropriate proceedings, and will maintain, and will cause each
Subsidiary to maintain, in accordance with GAAP, appropriate reserves for the accrual of any of the
same.
SECTION 5.03. Maintenance of Property; Insurance. (a) The Company will keep, and
will cause each Subsidiary to keep, all property useful and necessary in its business in good
working order and condition, ordinary wear and tear excepted.
(b) The Company will, and will cause each of its Subsidiaries to, maintain (either in the name
of the Company or in such Subsidiary’s own name) with financially sound and responsible insurance
companies, insurance on all their respective properties in at least such amounts and against at
least such risks (and with such risk retention) as are usually insured against in the same general
area by companies of established repute engaged in the same or a similar business; and will furnish
to the Lenders, upon request from the Agent, information presented in reasonable detail as to the
insurance so carried.
SECTION 5.04. Conduct of Business and Maintenance of Existence. The Company will
continue, and will cause each Subsidiary to continue, to engage in business of the same general
type as now conducted by the Company and its Subsidiaries, and will preserve, renew and keep in
full force and effect, and will cause each Subsidiary to preserve, renew and keep in full force and
effect their respective corporate existence and their respective rights, privileges and franchises
necessary or desirable in the normal conduct of business; provided that nothing in this
Section 5.04 shall prohibit (i) the merger of a Subsidiary into the Company or the merger or
consolidation of a Subsidiary with or into another Person if the corporation surviving such
consolidation or merger is a Subsidiary and if, in each case, after giving effect thereto, no
Default shall have occurred and be continuing, (ii) the termination of the corporate existence,
rights, privileges or franchises, or a change in the business of any Subsidiary that is not a
Borrowing Subsidiary if the Company in good faith determines that such termination or change is in
the best interest of the Company and is not materially disadvantageous to the Lenders or (iii) the
termination of the corporate existence, rights, privileges or franchises, or other dissolution or
winding up of any Subsidiary, if all or substantially all of the assets of such Subsidiary are
assigned, transferred, sold, or otherwise alienated to any entity which is also a Subsidiary.
SECTION 5.05. Compliance with Laws. The Company will comply, and cause each
Subsidiary to comply, in all respects with all applicable laws, ordinances, rules, regulations, and
requirements of governmental authorities (including, without limitation, Environmental Laws and
ERISA and the rules and regulations thereunder) except where (i) the necessity of compliance
therewith is contested in good faith by appropriate proceedings or (ii) such failure does not have
a material adverse effect on the business, financial condition, results of operations or prospects
of the Company and its Consolidated Subsidiaries, taken as a whole.
SECTION 5.06. Inspection of Property, Books and Records. The Company will keep, and
will cause each Subsidiary to keep, proper books of record and account in which full, true and
correct entries shall be made of all dealings and transactions in relation to its business
and activities; and will permit representatives of any Lender at such Lender’s expense, and
will cause each Subsidiary to permit representatives of the Agent at the Agent’s expense, to visit
and inspect any of their respective properties, to examine and make abstracts from any of their
respective books and records and to discuss their respective affairs, finances and accounts with
31
their respective officers, employees and independent public accountants, all at such reasonable
times and as often as may reasonably be desired.
SECTION 5.07. Interest Coverage and Debt Ratios.
(a) The ratio of Consolidated EBITDA to Consolidated Net Interest Expense will not, for any
period of four consecutive fiscal quarters commencing before or after the date hereof and ending
after the date hereof, be less than 3.50:1.
(b) Total Debt of all Consolidated Subsidiaries (excluding (i) Debt of a Consolidated
Subsidiary to the Company or to a Wholly-Owned Consolidated Subsidiary not described in clause (ii)
and (ii) Debt of any Subsidiary the sole business of which is to facilitate financing transactions
for the Company) will not, at the end of any fiscal quarter of the Company, exceed 20% of
Consolidated Net Worth. For purposes of this subsection (b), any preferred stock of a Consolidated
Subsidiary held by a Person other than the Company or a Wholly-Owned Consolidated Subsidiary shall
be included, at the higher of its voluntary or involuntary liquidation value, in the “Debt” of such
Consolidated Subsidiary.
SECTION 5.08. Negative Pledge. Neither the Company nor any Subsidiary will create,
assume or suffer to exist any Lien on any asset now owned or hereafter acquired by it, except:
(a) Liens existing on the date of this Agreement securing Debt outstanding on the date
of this Agreement in an aggregate principal amount not exceeding the US Dollar Equivalent
of US$50,000,000;
(b) any Lien existing on any asset of any corporation or other Person at the time such
corporation or other Person becomes a Subsidiary and not created in contemplation of such
event;
(c) any Lien on any asset securing Debt incurred or assumed for the purpose of
financing all or any part of the cost of acquiring such asset, provided that such
Lien attaches to such asset concurrently with or within 90 days after the acquisition
thereof;
(d) any Lien on any asset of any corporation or other Person existing at the time such
corporation or other Person is merged or consolidated with or into the Company or a
Subsidiary and not created in contemplation of such event;
(e) any Lien existing on any asset prior to the acquisition thereof by the Company or
a Subsidiary and not created in contemplation of such acquisition;
(f) any Lien arising out of the refinancing, extension, renewal or refunding of any
Debt secured by any Lien permitted by any of the foregoing clauses of this Section,
provided that such Debt is not increased and is not secured by any additional
assets;
(g) Liens arising in the ordinary course of its business which (i) do not secure Debt,
(ii) do not secure any obligation in an amount exceeding the US Dollar Equivalent of
US$50,000,000 and (iii) do not in the aggregate materially detract from the value of its
assets or materially impair the use thereof in the operation of its business; and
32
(h) Liens not otherwise permitted by the foregoing clauses of this Section securing
Debt in an aggregate principal amount at any time outstanding not to exceed 10% of
Consolidated Net Worth.
SECTION 5.09. Consolidations, Mergers and Sales of Assets. The Company and its
Subsidiaries will not (i) consolidate or merge with or into any other Person (other than the
Company or any of its Subsidiaries) or (ii) sell, lease or otherwise transfer, directly or
indirectly, all or a substantial part of the assets (other than inventory sold in the ordinary
course of business) of the Company and its Subsidiaries, taken as a whole, other than to the
Company and its Subsidiaries. For purposes of this Section, a substantial part of the assets of
the Company and its Subsidiaries, taken as a whole, shall mean 20% or more of the consolidated
assets of the Company and its Consolidated Subsidiaries.
SECTION 5.10. Use of Proceeds. The proceeds of the Loans made under this Agreement
are to be used to repay amounts outstanding, if any, under the Existing Credit Agreements and for
working capital and general corporate purposes, including, without limitation, to backstop
commercial paper. None of such proceeds will be used, directly or indirectly, for the purpose,
whether immediate, incidental or ultimate, of buying or carrying any “margin stock” within the
meaning of Regulation U.
ARTICLE VI
EVENTS OF DEFAULT
SECTION 6.01. Events of Default. If one or more of the following events (“Events
of Default”) shall have occurred and be continuing:
(a) any Borrower shall fail to pay (i) any principal on any Loan for a period of more
than 2 Business Days after the same shall become due or (ii) interest on any Loan or any
fees or any other amount payable hereunder or under any other Loan Document for a period of
more than 5 Business Days after the same shall become due;
(b) any Borrower shall fail to observe or perform any covenant contained in Sections
5.07 to 5.10, inclusive;
(c) any Borrower shall fail to observe or perform any covenant or agreement contained
in any Loan Document (other than those covered by clause (a) or (b) above) for 10 days
after written notice thereof has been given to such Borrower, or the Company on its behalf,
by the Agent at the request of any Lender;
(d) any representation, warranty, certification or statement made (or deemed made) by
the Company in this Agreement or by any other Borrower in the applicable Borrowing
Subsidiary Agreement or in any certificate, financial statement or other document delivered
pursuant to this Agreement shall prove to have been incorrect in any material respect when
made (or deemed made);
(e) the Company or any Subsidiary shall fail to make any payment in respect of any
Material Debt when due or within any applicable grace period;
(f) any event or condition shall occur which results in the acceleration of the
maturity of any Material Debt or enables the holder of such Debt or obligor with respect
33
to
any commitment to provide such Debt or any Person acting on such holder’s or obligor’s
behalf to accelerate the maturity thereof or, because such event or condition constitutes a
default or event of default or similar event, however defined, under the instrument
governing such commitment, to terminate such commitment;
(g) the Company or any Material Subsidiary shall commence a voluntary case or other
proceeding seeking liquidation, reorganization or other relief with respect to itself or
its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect
or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar
official of it or any substantial part of its property, or shall consent to any such relief
or to the appointment of or taking possession by any such official in an involuntary case
or other proceeding commenced against it, or shall make a general assignment for the
benefit of creditors, or shall fail generally to pay its debts as they become due, or shall
take any corporate action to authorize any of the foregoing;
(h) an involuntary case or other proceeding shall be commenced against the Company or
any Material Subsidiary seeking liquidation, reorganization or other relief with respect to
it or its debts under any bankruptcy, insolvency or other similar law now or hereafter in
effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official of it or any substantial part of its property, and such involuntary case
or other proceeding shall remain undismissed and unstayed for a period of 60 days; or an
order for relief shall be entered against the Company or any Material Subsidiary under the
federal bankruptcy laws as now or hereafter in effect;
(i) any member of the ERISA Group shall fail to pay when due an amount or amounts
aggregating at any given time in excess of US$50,000,000 which it shall have become liable
to pay under Title IV of ERISA; or notice of intent to terminate a Material Plan under a
“distress termination” within the meaning of Section 4041(c) of ERISA shall be filed under
Title IV of ERISA by any member of the ERISA Group, any plan administrator or any
combination of the foregoing; or the PBGC shall institute proceedings under Title IV of
ERISA to terminate, to impose liability (other than for premiums under Section 4007 of
ERISA) in respect of, or to cause a trustee to be appointed to administer any Material
Plan; or a condition described in Section 4042(a) of ERISA or any successor provision
thereto shall exist by reason of which the PBGC would be entitled to obtain a decree
adjudicating that any Material Plan must be terminated; or there shall occur a complete or
partial withdrawal from, or a default, within the meaning of Section 4219(c)(5) of ERISA,
with respect to, one or more Multiemployer Plans which could cause one or more members of
the ERISA Group to incur a current payment obligation in excess of US$25,000,000;
(j) a judgment or order for the payment of money in excess of the US Dollar Equivalent
of US$50,000,000 shall be rendered against the Company or any Subsidiary and such judgment
or order shall continue unsatisfied and unstayed for a period of 30 days; or
(k) any person or group of persons (within the meaning of Section 13 or 14 of the
Securities Exchange Act of 1934, as amended) shall have acquired beneficial ownership
(within the meaning of Rule 13d-3 promulgated by the Securities and Exchange Commission
under said Act) of 30% or more of the outstanding shares of common stock of the Company;
or, during any period of twelve consecutive calendar
34
months, individuals who were directors
of the Company on the first day of such period shall cease to constitute a majority of the
board of directors of the Company;
then, and in every such event, the Agent shall at the request of Lenders having more than 50% in
aggregate amount of the Commitments (or if the Commitments have been terminated at the request of
Lenders holding more than 50% of the Loans then outstanding), by notice to the Company take either
or both of the following actions, at the same or different times: (i) terminate forthwith the
Commitments (if any) and (ii) declare the Loans then outstanding to be forthwith due and payable in
whole or in part, whereupon the principal of the Loans so declared to be due and payable, together
with accrued interest thereon and any unpaid accrued fees and all other liabilities of the
Borrowers accrued under all Loan Documents, shall become forthwith due and payable, without
presentment, demand, protest or any other notice of any kind, all of which are hereby expressly
waived by the each Borrower, anything contained herein to the contrary notwithstanding; and in any
event with respect to any Borrower described in paragraph (g) or (h) above, the Commitments (if
any) shall automatically terminate and the principal of the Loans then outstanding, together with
accrued interest thereon and any unpaid accrued fees and all other liabilities of the Borrowers
accrued hereunder or under any other Loan Document, shall automatically become due and payable,
without presentment, demand, protest or any other notice of any kind, all of which are hereby
expressly waived by the each Borrower, anything contained herein to the contrary notwithstanding.
SECTION 6.02. Notice of Default. The Agent shall give notice to the Company under
Section 6.01(c) promptly upon being requested to do so by any Lender and shall thereupon notify all
the Lenders thereof.
ARTICLE VII
THE AGENT
SECTION 7.01. Appointment and Authorization. Each Lender irrevocably appoints and
authorizes the Agent to take such action as agent on its behalf and to exercise such powers under
the Loan Documents as are delegated to the Agent by the terms hereof or thereof, together with all
such powers as are reasonably incidental thereto.
SECTION 7.02. Agent and Affiliates. JPMCB shall have the same rights and powers under
the Loan Documents as any other Lender and may exercise or refrain from exercising the same as
though it were not the Agent, and JPMCB and its affiliates may accept deposits from, lend money to,
and generally engage in any kind of business with the Company or any Subsidiary or affiliate of the
Company as if it were not the Agent hereunder.
SECTION 7.03. Action by Agent. The obligations of the Agent hereunder are only those
expressly set forth herein. Without limiting the generality of the foregoing, the Agent shall not
be required to take any action with respect to any Default, except as expressly provided in Article
VI.
SECTION 7.04. Consultation with Experts. The Agent may consult with legal counsel
(who may be counsel for the Company), independent public accountants and other experts selected by
it and shall not be liable for any action taken or omitted to be taken by it in good faith in
accordance with the advice of such counsel, accountants or experts.
35
SECTION 7.05. Liability of Agent. Neither the Agent nor any of its affiliates nor any
of their respective directors, officers, agents or employees shall be liable for any action taken
or not taken by it in connection herewith (i) with the consent or at the request of the Required
Lenders or (ii) in the absence of its own gross negligence or willful misconduct. Neither the
Agent nor any of its affiliates nor any of their respective directors, officers, agents or
employees shall be responsible for or have any duty to ascertain, inquire into or verify (i) any
statement, warranty or representation made in connection with any Loan Document or any borrowing
hereunder; (ii) the performance or observance of any of the covenants or agreements of any
Borrower; (iii) the satisfaction of any condition specified in Article IV, except receipt of items
required to be delivered to the Agent; or (iv) the validity, effectiveness or genuineness of any
Loan Document or any other instrument or writing furnished in connection herewith. Without
limiting the foregoing, the Agent shall have no obligation to take any action under Section 5.06.
The Agent shall not incur any liability by acting in reliance upon any notice, consent,
certificate, statement, or other writing (which may be a writing transmitted electronically)
believed by it to be genuine or to be signed by the proper party or parties.
SECTION 7.06. Indemnification. Each Lender shall, ratably in accordance with its
Commitment (or, if the Commitments shall have been terminated, ratably in accordance with the
aggregate unpaid principal amount of its Loans), indemnify the Agent and its directors, officers,
agents and employees (to the extent not reimbursed by any Borrower) against any cost, expense
(including counsel fees and disbursements), claim, demand, action, loss or liability (except such
as result from such indemnitees’ gross negligence or willful misconduct) that such indemnitees may
suffer or incur in connection with any Loan Document or any action taken or omitted by such
indemnitees under any Loan Document.
SECTION 7.07. Credit Decision. Each Lender acknowledges that it has, independently
and without reliance upon the Agent or any other Lender, and based on such documents and
information as it has deemed appropriate, made its own credit analysis and decision to enter into
this Agreement. Each Lender also acknowledges that it will, independently and without reliance
upon the 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 any
action under this Agreement.
SECTION 7.08. Successor Agent. The Agent may resign at any time by giving notice
thereof to the Lenders and the Company. Upon any such resignation, the Required Lenders shall have
the right to appoint a successor Agent. If no successor Agent shall have been so appointed by the
Required Lenders, and shall have accepted such appointment, within 30 days after the retiring Agent
gives notice of resignation, then the retiring Agent may, on behalf of the Lenders, appoint a
successor Agent, which shall be a commercial bank organized or licensed under the laws of the
United States of America or of any State thereof and having a combined capital and surplus of at
least US$500,000,000. Upon the acceptance of its appointment as Agent hereunder by a successor
Agent, such successor Agent shall thereupon succeed to and become vested with all the rights and
duties of the retiring Agent, and the retiring Agent shall be discharged from its duties and
obligations hereunder. After any retiring Agent’s resignation hereunder as Agent, the provisions
of this Article shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Agent.
SECTION 7.09. Agent’s Fee. The Company shall pay to the Agent for its own account
fees in the amounts and at the times previously agreed upon between the Company and the Agent.
36
SECTION 7.10. Documentation Agents and Syndication Agent. The Syndication Agent and
Documentation Agents shall, in their capacities as such, have no responsibilities, obligations or
liabilities under any Loan Document.
SECTION 7.11. Agent Designees. The Agent is hereby authorized to designate one of its
affiliates (the “Agent Designee”) to perform the functions of the Agent with respect to
Designated Foreign Currency Borrowings. The Agent shall designate the Agent Designee by notice to
the Company and the Lenders (and may from time to time replace the Agent Designee with any of its
affiliates by notice to the Company and the Lenders). Upon and after any such designation, (i)
copies of all Notices of Borrowing and all other notices required to be delivered hereunder with
respect to Designated Foreign Currency Borrowings shall be delivered to both the Agent and the
Agent Designee and (ii) all references hereunder to the “Agent” and “Agent in London” in the
context of Designated Foreign Currency Borrowings shall be construed as including references to the
Agent Designee. The Agent hereby designates X.X. Xxxxxx Europe Limited as the initial Agent
Designee.
ARTICLE VIII
CHANGE IN CIRCUMSTANCES
SECTION 8.01. Basis for Determining Interest Rate Inadequate or Unfair. If on or
prior to the first day of any Interest Period for any Eurocurrency Borrowing denominated in any
currency the Required Lenders advise the Agent that the Adjusted London Interbank Offered Rate as
determined by the Agent will not adequately and fairly reflect the cost to such Lenders of funding
their Eurocurrency Loans in such currency for such Interest Period, the Agent shall forthwith give
notice thereof to the Company and the Lenders, whereupon until the Agent notifies the Company that
the circumstances giving rise to such suspension no longer exist (which the Agent agrees to do
promptly upon becoming aware that such circumstances no longer exist), the obligations of the
Lenders to make Eurocurrency Loans in such currency shall be suspended.
SECTION 8.02. Illegality. If, on or after the date of this Agreement, the adoption of
any applicable law, rule or regulation, or any change in any applicable law, rule or regulation, or
any change in the interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration thereof, or compliance
by any Lender (or its Eurocurrency Lending Office) with any request or directive (whether or not
having the force of law) of any such authority, central bank or comparable agency shall make it
unlawful or impossible for any Lender (or its Eurocurrency Lending Office) to make, maintain or
fund its Eurocurrency Loans in any currency and such Lender shall so notify the Agent, the Agent
shall forthwith give notice thereof to the other Lenders and the Company, whereupon until such
Lender notifies the Company and the Agent that the circumstances giving rise to such suspension no
longer exist (which such Lender agrees to do promptly upon becoming aware that such circumstances
no longer exist), the obligation of such Lender to make Eurocurrency Loans in such currency shall
be suspended. Before giving any notice to the Agent pursuant to this Section, such Lender shall
designate a different Eurocurrency Lending Office if such designation will avoid the need for
giving such notice and will not, in the judgment of such Lender, be otherwise disadvantageous to
such Lender. If such Lender shall determine that it may not lawfully continue to maintain and fund
any of its outstanding
Eurocurrency Loans to maturity and shall so specify in such notice, the applicable Borrowers
shall immediately prepay in full the then outstanding principal amount of each such Eurocurrency
Loans, together with accrued interest thereon. Concurrently with prepaying each such Eurocurrency
Loan denominated in US Dollars, each such Borrower shall borrow a Base Rate
37
Loan in an equal
principal amount from such Lender (on which interest and principal shall be payable
contemporaneously with the related Eurocurrency Loans of the other Lenders), and such Lender shall
make such a Base Rate Loan.
SECTION 8.03. Increased Cost and Reduced Return. (a) If on or after the date hereof
the adoption of any applicable law, rule or regulation, or any change in any applicable law, rule
or regulation, or any change in the interpretation or administration thereof by any governmental
authority, central bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any Lender (or its Applicable Lending Office) with any request or
directive (whether or not having the force of law) of any such authority, central bank or
comparable agency shall impose, modify or deem applicable any reserve (including, without
limitation, any such requirement imposed by the Board of Governors of the Federal Reserve System,
but excluding with respect to any Eurocurrency Loan any such requirement included in an applicable
Statutory Reserve Rate), special deposit, insurance assessment or similar requirement against
assets of, deposits with or for the account of, or credit extended by, any Lender (or its
Applicable Lending Office) or shall impose on any Lender (or its Applicable Lending Office) or on
the United States market for certificates of deposit or the London interbank market any other
condition affecting its Eurocurrency Loans or its obligation to make Eurocurrency Loans and the
result of any of the foregoing is to increase the cost to such Lender (or its Applicable Lending
Office) of making or maintaining any Eurocurrency Loan, or to reduce the amount of any sum received
or receivable by such Lender (or its Applicable Lending Office) under any Loan Document with
respect thereto, by an amount deemed by such Lender to be material, then, within 15 days after
demand by such Lender accompanied by a certificate of such Lender explaining in reasonable detail
the method by which such amount shall have been determined (with a copy to the Agent), the relevant
Borrowers shall pay to such Lender such additional amount or amounts as will compensate such Lender
for such increased cost or reduction.
(b) If any Lender shall have determined that, after the date hereof, the adoption of any
applicable law, rule or regulation regarding capital adequacy, or any change in any such law, rule
or regulation, or any change in the interpretation or administration thereof by any governmental
authority, central bank or comparable agency charged with the interpretation or administration
thereof, or any request or directive regarding capital adequacy (whether or not having the force of
law) of any such authority, central bank or comparable agency, has or would have the effect of
reducing the rate of return on capital of such Lender (or its Parent) as a consequence of such
Lender’s obligations hereunder to a level below that which such Lender (or its Parent) could have
achieved but for such adoption, change, request or directive (taking into consideration its
policies with respect to capital adequacy) by an amount deemed by such Lender to be material, then
from time to time, within 15 days after demand by such Lender accompanied by a certificate of such
Lender explaining in reasonable detail the method by which such amount shall have been determined
(with a copy to the Agent), the relevant Borrowers shall pay to such Lender such additional amount
or amounts as will compensate such Lender (or its Parent) for such reduction. It is acknowledged
that this Agreement is being entered into by the Lenders on the understanding that the Lenders will
not be required to maintain capital against their Commitments under currently applicable laws,
regulations and regulatory guidelines. In the event the Lenders shall be advised by any
governmental authority or shall otherwise determine on the basis of pronouncements of any
government authority that such understanding is incorrect, it
is agreed that the Lenders will be entitled to make claims under this paragraph (b) based upon
market requirements prevailing on the date hereof for commitments under comparable credit
facilities against which capital is required to be maintained.
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(c) Each Lender will promptly notify the Company and the Agent of any event of which it has
knowledge, occurring after the date hereof, which will entitle such Lender to compensation pursuant
to this Section and will designate a different Applicable Lending Office if such designation will
avoid the need for, or reduce the amount of, such compensation and will not, in the judgment of
such Lender, be otherwise disadvantageous to such Lender. A certificate of any Lender claiming
compensation under this Section and setting forth the additional amount or amounts to be paid to it
hereunder shall be conclusive in the absence of manifest error. In determining such amount, such
Lender may use any reasonable averaging and attribution methods. Any such certificate shall
contain a statement as to the calculation of such amount, provided that such Lender shall
not be required to disclose any information it considers, in its sole discretion, to be
confidential.
SECTION 8.04. Taxes. (a) Any and all payments by any Borrower to or for the account
of any Lender or the Agent hereunder or under any other Loan Document shall be made free and clear
of and without deduction for any and all present or future taxes, duties, levies, imposts,
deductions, charges or withholdings, and all liabilities with respect thereto, excluding,
in the case of each Lender and the Agent, taxes imposed on its income, and franchise or similar
taxes imposed on it, by the jurisdiction under the laws of which such Lender or the Agent (as the
case may be) is organized or any political subdivision thereof and, in the case of each Lender,
taxes imposed on its income, and franchise or similar taxes imposed on it, by the jurisdiction of
such Lender’s Applicable Lending Office or any political subdivision thereof (all such non-excluded
taxes, duties, levies, imposts, deductions, charges, withholdings and liabilities being hereinafter
referred to as “Taxes”). If any Borrower shall be required by law to deduct or withhold
any Taxes from or in respect of any sum payable hereunder or under any other Loan Document to any
Lender or the Agent, (i) the sum payable shall be increased as necessary so that after making all
such required deductions (including such deductions or withholdings applicable to additional sums
payable under this Section 8.04) such Lender or the Agent (as the case may be) receives an amount
equal to the sum it would have received had no such deductions or withholdings been made, (ii) such
Borrower shall make such deductions or withholdings, (iii) such Borrower shall pay the full amount
of Taxes so deducted or withheld to the relevant taxation authority or other authority in
accordance with applicable law and (iv) such Borrower shall furnish to the Agent, at its address
referred to in Section 10.01, the original or a certified copy of a receipt (or such other
satisfactory evidence as may be available to the Company) evidencing payment thereof.
(b) In addition, each Borrower agrees to pay any present or future stamp or documentary taxes,
and any other excise or property taxes, or charges or similar levies, which arise from any payment
made under any Loan Document or from the execution or delivery of, or otherwise with respect to,
any Loan Document (hereinafter referred to as “Other Taxes”).
(c) Each Borrower agrees to indemnify each Lender and the Agent for the full amount of Taxes
or Other Taxes (including, without limitation, any Taxes or Other Taxes imposed or asserted by any
jurisdiction on amounts payable under this Section 8.04) paid by such Lender or the Agent (as the
case may be) and any liability (including penalties, interest and expenses) arising therefrom or
with respect thereto. This indemnification shall be made within 30 days from the date such Lender
or the Agent (as the case may be) makes demand therefor.
(d) Each Lender organized under the laws of a jurisdiction outside the United States shall, on
or prior to the date of its execution and delivery of this Agreement in the case of each Lender
listed on the signature pages hereof and on or prior to the date on which it becomes a Lender in
the case of each other Lender, and from time to time thereafter if requested
39
in writing by the
Company (but only so long as such Lender remains lawfully able to do so), deliver to the Company a
properly executed Internal Revenue Service form W-8BEN or W-8ECI, as appropriate, or any successor
form prescribed by the Internal Revenue Service, certifying that such Lender is entitled to
benefits under an income tax treaty to which the United States is a party which reduces the rate of
withholding tax on payments of interest (and specifying such reduced rate of withholding) or that
the income receivable pursuant to each Loan Document is effectively connected with the conduct of a
trade or business in the United States. If the form provided (or which should have been provided)
by a Lender at the time such Lender first becomes a party to this Agreement indicates (or should
have indicated) a United States interest withholding tax rate in excess of zero, withholding tax at
such rate shall be considered excluded from “Taxes” as defined in Section 8.04(a).
(e) For any period with respect to which a Lender has failed to provide the Company with the
appropriate form pursuant to Section 8.04(d) (unless such failure is due to a change in treaty, law
or regulation occurring subsequent to the date on which a form originally was required to be
provided), such Lender shall not be entitled to indemnification under Section 8.04(a) or (c) with
respect to Taxes imposed by the United States; provided, however, that should a
Lender, which is otherwise exempt from or subject to a reduced rate of withholding tax, become
subject to Taxes solely because of its failure to deliver a form required hereunder, the Borrowers
shall take such steps as such Lender shall reasonably request to assist such Lender to recover such
Taxes.
(f) If a Lender has knowledge that any Borrower would otherwise become required to pay
additional amounts to or for the account of any Lender pursuant to this Section 8.04, then such
Lender will change the jurisdiction of its Applicable Lending Office so as to eliminate or reduce
any such additional payment which may thereafter accrue if such change, in the judgment of such
Lender, is not otherwise disadvantageous to such Lender.
(g) If any Lender has knowledge of the imposition of any Taxes for which any Borrower is
required to indemnify such Lender under this Section 8.04, such Lender shall notify such Borrower
within 30 Business Days of obtaining such knowledge of such imposition. If the Lender has failed
to notify the Company as required pursuant to the preceding sentence and the Company or the
relevant Borrower does not otherwise have knowledge of the imposition of such Taxes, such Borrower
shall not be obligated to indemnify such Lender for any Taxes which accrued prior to the Company’s
or such Borrower’s obtaining such knowledge.
(h) If any Lender shall receive any net tax benefit by reason of payments of additional
amounts by any Borrower pursuant to this Section 8.04 which, in the sole judgment of such Lender,
it would not otherwise have been able to obtain, such Lender shall pay to such Borrower the amount
of such net benefit, as determined by such Lender in its sole discretion. Nothing herein shall be
construed to require any Lender to disclose any information regarding its tax affairs.
SECTION 8.05. Base Rate Loans Substituted for Affected Eurocurrency Loans. If (i) the
obligation of any Lender to make Eurocurrency Loans denominated in US Dollars has been suspended
pursuant to Section 8.02 or (ii) any Lender has demanded compensation under Section 8.03 or 8.04
with respect to its Eurocurrency Loans denominated in US Dollars and the
relevant Borrower shall, by at least five Business Days’ prior notice to such Lender through
the Agent, have elected that the provisions of this Section shall apply to such Lender, then,
unless and until such Lender notifies such Borrower that the circumstances giving rise to such
40
suspension or demand for compensation no longer exist (which such Lender agrees to do promptly upon
becoming aware that such circumstances no longer exist):
(a) all Loans denominated in US Dollars which would otherwise be made by such Lender
as Eurocurrency Loans shall be made instead as Base Rate Loans (on which interest and
principal shall be payable contemporaneously with the related Eurocurrency Loans of the
other Lenders), and
(b) after each of its Eurocurrency Loans denominated in US Dollars has been repaid,
all payments of principal which would otherwise be applied to repay such Eurocurrency Loans
shall be applied to repay its Base Rate Loans instead.
SECTION 8.06. Substitution of Lender. If (i) the obligation of any Lender to make
Eurocurrency Loans has been suspended pursuant to Section 8.02 or (ii) any Lender has demanded
compensation under Section 8.03 or 8.04, the relevant Borrower shall have the right to cause such
Lender to transfer its Commitment to a financial institution or financial institutions (which may
be one or more of the Lenders) which is reasonably acceptable to such Borrower and the Agent.
ARTICLE IX
GUARANTEE
In order to induce the Lenders to extend credit to the Borrowing Subsidiaries hereunder, the
Company hereby irrevocably and unconditionally guarantees, as a primary obligor and not merely as a
surety, the Obligations of the Borrowing Subsidiaries. The Company further agrees that the due and
punctual payment of the Obligations of the Borrowing Subsidiaries may be extended or renewed, in
whole or in part, without notice to or further assent from it, and that it will remain bound upon
its guarantee hereunder notwithstanding any such extension or renewal of any Obligation.
The Company waives presentment to, demand of payment from and protest to any Borrowing
Subsidiary of any of the Obligations, and also waives notice of acceptance of its obligations and
notice of protest for nonpayment. The obligations of the Company under this Article IX shall not
be affected by (a) the failure of any Lender to assert any claim or demand or to enforce any right
or remedy against any Borrowing Subsidiary under the provisions of this Agreement, any Borrowing
Subsidiary Agreement, any other Loan Document or otherwise; (b) any extension or renewal of any of
the Obligations of any Borrowing Subsidiary; (c) any rescission, waiver, amendment or modification
of, or release of any Borrowing Subsidiary from, any of the terms or provisions applicable to any
Borrowing Subsidiary of this Agreement, any Borrowing Subsidiary Agreement or any other Loan
Document; (d) the failure or delay of any Lender to exercise any right or remedy against any other
guarantor of the Obligations of any Borrowing Subsidiary; (e) the failure of any Lender to assert
any claim or demand or to enforce any remedy under any Loan Document or any other agreement or
instrument; (f) any default, failure or delay, wilful or otherwise, in the performance of the
Obligations of any Borrowing Subsidiary; or (g) any other act (other than payment or performance of
the Obligations of any Borrowing Subsidiary), omission or delay to do any other act which may or
might in any manner or to any extent vary the risk of the Company or otherwise operate as a
discharge of the Company
as Guarantor as a matter of law or equity or which would impair or eliminate any right of the
Company to subrogation.
41
The Company further agrees that its guarantee hereunder constitutes a promise of payment when
due (whether or not any bankruptcy or similar proceeding of any Borrowing Subsidiary shall have
stayed the accrual or collection of any of the Obligations of such Borrowing Subsidiary or operated
as a discharge thereof) and not merely of collection, and waives any right to require that any
resort be had by any Lender to any balance of any deposit account or credit on the books of any
Lender in favor of any Borrower or Subsidiary or any other Person.
The obligations of the Company under this Article IX shall not be subject to any reduction,
limitation, impairment or termination for any reason, and shall not be subject to any defense or
setoff, counterclaim, recoupment or termination whatsoever, by reason of the invalidity, illegality
or unenforceability of the Obligations of any Borrowing Subsidiary, any impossibility in the
performance of the Obligations of any Borrowing Subsidiary or otherwise.
The Company further agrees that its obligations under this Article IX shall continue to be
effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of any
Obligation of any Borrowing Subsidiary is rescinded or must otherwise be restored by any Lender
upon the bankruptcy or reorganization of any Borrower or otherwise.
In furtherance of the foregoing and not in limitation of any other right which any Lender may
have at law or in equity against the Company by virtue hereof, upon the failure of any Borrowing
Subsidiary to pay any Obligation of such Borrowing Subsidiary when and as the same shall become
due, whether at maturity, by acceleration, after notice of prepayment or otherwise, the Company
hereby promises to and will, upon receipt of written demand by the Agent, forthwith pay, or cause
to be paid, to the Agent for distribution to the Lenders in cash an amount equal to the unpaid
principal amount of such Obligation. The Company further agrees that if payment in respect of any
such Obligation shall be due in a currency other than US Dollars and/or at a place of payment other
than New York and if, by reason of any legal prohibition, disruption of currency or foreign
exchange markets, war or civil disturbance or other event, payment of such Obligation in such
currency or at such place of payment shall be impossible or, in the reasonable judgment of any
Lender, not consistent with the protection of its rights or interests, then, at the election of
such Lender, the Company shall make payment of such Obligation in US Dollars (based upon the
applicable Exchange Rate in effect on the date of payment) and/or in New York, and shall indemnify
such Lender against any losses or expenses (including losses or expenses resulting from
fluctuations in exchange rates) that it shall sustain as a result of such alternative payment.
Upon payment in full by the Company of any Obligation of any Borrowing Subsidiary, each Lender
shall, in a reasonable manner, assign to the Company the amount of such Obligation owed to such
Lender and so paid, such assignment to be pro tanto to the extent to which the Obligation in
question was discharged by the Company, or, if requested by the Company, make such disposition
thereof as the Company shall direct (all without recourse to any Lender and without any
representation or warranty by any Lender). Upon payment by the Company of any sums as provided
above, all rights of the Company against any Borrowing Subsidiary arising as a result thereof by
way of right of subrogation or otherwise shall in all respects be subordinated and junior in right
of payment to the prior indefeasible payment in full of all the Obligations owed by such Borrowing
Subsidiary to the Lenders.
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ARTICLE X
MISCELLANEOUS
SECTION 10.01. Notices. All notices, requests and other communications to any party
hereunder shall be in writing (including writings transmitted electronically) and shall be given to
such party: (i) in the case of any Borrower, at its (or, in the case of a Borrowing Subsidiary, at
the Company’s) address or facsimile number set forth on the signature pages hereof, (ii) if to the
Agent, to JPMorgan Chase Bank, N.A., 0000 Xxxxxx, Xxxxx 00, Xxxxxxx, XX 00000, Attention of Xxxxx
Xxx, (Telecopy No.: (000) 000-0000), with copies to JPMorgan Chase Bank, N.A., 000 Xxxx Xxxxxx, 0xx
Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention of Xxxxxxxx Xxxxx (Telecopy No.: (000) 000-0000), and
with respect to any Designated Foreign Currency Borrowing, to X. X. Xxxxxx Europe Limited, 000
Xxxxxx Xxxx, Xxxxx 0, Xxxxxx, XX0X0XX, Xxxxxx Xxxxxxx, Attention of Agency Department (Telecopy
No.: 44 207 7772360) or to any other Agent Designee as directed by the Agent, (iii) in the case of
any Lender, at its address or facsimile number set forth in its Administrative Questionnaire or
(iv) in the case of any party, such other address or facsimile number as such party may hereafter
specify for the purpose by notice to the Agent and the Company. Each such notice, request or other
communication shall be effective when received.
SECTION 10.02. No Waivers. No failure or delay by the Agent or any Lender in
exercising any right, power or privilege hereunder or under any other Loan Document 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
herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.
SECTION 10.03. Expenses; Indemnification. (a) The Company shall pay (i) all
reasonable out-of-pocket expenses of the Agent, including reasonable fees and disbursements of
counsel for the Agent, in connection with the preparation and administration of the Loan Documents,
any waiver or consent under any Loan Document or any amendment hereof or any Default or alleged
Default under any Loan Document and (ii) if an Event of Default occurs, all out-of-pocket expenses
incurred by the Agent and each Lender, including fees and disbursements of counsel, in connection
with such Event of Default and collection, bankruptcy, insolvency and other enforcement proceedings
resulting therefrom.
(b) The Company agrees to indemnify the Agent and each Lender, their respective affiliates and
the respective directors, officers, agents and employees of the foregoing (each an
“Indemnitee”) and hold each Indemnitee harmless from and against any and all liabilities,
losses, damages, costs and expenses of any kind, including, without limitation, the reasonable fees
and disbursements of counsel, which may be incurred by such Indemnitee in connection with any
investigative, administrative or judicial proceeding (whether or not such Indemnitee shall be
designated a party thereto) brought or threatened relating to or arising out of any Loan Document
or any actual or proposed use of proceeds of Loans hereunder; provided that no Indemnitee
shall have the right to be indemnified hereunder for any such losses, liabilities, claims, damages
or expenses to the extent incurred (i) as the result of any such Indemnitee’s gross negligence or
willful misconduct as determined by a court of competent jurisdiction, or (ii) by a Lender, its
affiliates or the respective directors, officers, agents and employees of the foregoing in
connection with a proceeding with any other Lender or any Assignee or Participant that (x) arises
in connection with an assignment, participation or other transfer pursuant to Section 10.06,
43
(y) does not relate to any action taken or failed to be taken by any Borrower and (z) does not
relate to any right or obligation of any Borrower.
SECTION 10.04. Sharing of Set-Offs. Each Lender agrees that if it shall, by
exercising any right of set-off or counterclaim or otherwise, receive payment of a proportion of
the aggregate amount of principal and interest due with respect to any Loan held by it which is
greater than the proportion received by any other Lender in respect of the aggregate amount of
principal and interest due with respect to any Loan held by such other Lender, the Lender receiving
such proportionately greater payment shall purchase such participations in the Loans held by the
other Lenders, and such other adjustments shall be made, as may be required so that all such
payments of principal and interest with respect to the Loans held by the Lenders shall be shared by
the Lenders pro rata; provided that nothing in this Section shall impair the right of any
Lender to exercise any right of set-off or counterclaim it may have and to apply the amount subject
to such exercise to the payment of indebtedness of any Borrower other than its indebtedness under
the Loans. Each Borrower agrees, to the fullest extent it may effectively do so under applicable
law, that any holder of a participation in a Loan, whether or not acquired pursuant to the
foregoing arrangements, may exercise rights of set-off or counterclaim and other rights with
respect to such participation as fully as if such holder of a participation were a direct creditor
of such Borrower in the amount of such participation.
SECTION 10.05. Amendments and Waivers. Any provision of this Agreement or any
Borrowing Subsidiary Agreement may be amended or waived if, but only if, such amendment or waiver
is in writing and is signed by the Company and the Required Lenders (and, if the rights or duties
of the Agent are affected thereby, by the Agent) (and, in the case of a Borrowing Subsidiary
Agreement, the applicable Borrowing Subsidiary); provided that no such amendment or waiver
shall, unless signed by all the Lenders, (i) increase or decrease the Commitment of any Lender
(except for a ratable decrease in the Commitments of all Lenders) or subject any Lender to any
additional obligation, (ii) reduce the principal of or rate of interest on any Loan or any fees
hereunder, (iii) extend the Maturity Date or postpone the date fixed for any payment of principal
of or interest on any Loan or any fees hereunder or for any reduction or termination of any
Commitment, (iv) change the percentage of the Commitments or of the aggregate unpaid principal
amount of the Loans, or the number of Lenders, which shall be required for the Lenders or any of
them to take any action under this section or any other provision of this Agreement, (v) amend the
definitions of “Designated Foreign Currencies”, “Exchange Rate”, Section 10.04 or this Section
10.05, (vi) change the provisions of Article IX of this Agreement or (vii) change Section 2.12 in a
manner that would alter the pro rata sharing of payments required thereby.
SECTION 10.06. Successors and Assigns. (a) The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns, except that no Borrower may assign or otherwise transfer any of its rights under this
Agreement without the prior written consent of all Lenders.
(b) Any Lender may at any time grant to one or more banks or other institutions (each a
“Participant”) participating interests in its Commitment or any or all of its Loans. In
the event of any such grant by a Lender of a participating interest to a Participant, whether or
not upon notice to the Company and the Agent, such Lender shall remain responsible for the
performance of its obligations hereunder, and the relevant Borrower and the Agent shall continue to
deal solely and directly with such Lender in connection with such Lender’s rights and obligations
under this Agreement. Any agreement pursuant to which any Lender may grant such a participating
interest shall provide that such Lender shall retain the sole right and responsibility
44
to enforce the obligations of the Borrowers hereunder including, without limitation, the right
to approve any amendment, modification or waiver of any provision of this Agreement;
provided that such participation agreement may provide that such Lender will not agree to
any modification, amendment or waiver of this Agreement described in clause (i), (ii), (iii), (iv),
(v), (vi) or (vii) of Section 10.05 without the consent of the Participant. Each Borrower agrees
that each Participant shall, to the extent provided in its participation agreement, be entitled to
the benefits of Article VIII with respect to its participating interest. An assignment or other
transfer which is not permitted by subsection (c) or (d) below shall be given effect for purposes
of this Agreement only to the extent of a participating interest granted in accordance with this
subsection (b).
(c) Any Lender may at any time assign to one or more banks or other institutions (each an
“Assignee”) all, or a proportionate part of all (such proportionate part to include a
Commitment of not less than $5,000,000), of its rights and obligations under this Agreement, and
such Assignee shall assume such rights and obligations, pursuant to an Assignment and Assumption
Agreement in substantially the form of Exhibit B hereto (an “Assignment and Assumption
Agreement”) executed by such Assignee and such transferor Lender, with (and subject to) the
subscribed consent of the Company (unless an Event of Default has occurred and is continuing) and
the Agent (such consents not to be unreasonably withheld); provided that if an Assignee is
an affiliate of such transferor Lender, no such consent shall be required. Upon execution and
delivery of such instrument and payment by such Assignee to such transferor Lender of an amount
equal to the purchase price agreed between such transferor Lender and such Assignee, such Assignee
shall be a Lender party to this Agreement and shall have all the rights and obligations of a Lender
with a Commitment as set forth in such instrument of assumption, and the transferor Lender shall be
released from its obligations hereunder to a corresponding extent, and no further consent or action
by any party shall be required. In connection with any such assignment, the transferor Lender
shall pay to the Agent an administrative fee for processing such assignment in the amount of
$3,500. If the Assignee is not incorporated under the laws of the United States of America or a
state thereof, it shall deliver to the Company and the Agent certification as to exemption from
deduction or withholding of any United States federal income taxes in accordance with Section 8.04.
(d) Any Lender may at any time assign all or any portion of its rights under this Agreement to
a Federal Reserve Bank without the consent of any other party. No such assignment shall release
the transferor Lender from its obligations hereunder.
(e) No Assignee, Participant or other transferee of any Lender’s rights shall be entitled to
receive any greater payment under Section 8.03 or 8.04 than such Lender would have been entitled to
receive with respect to the rights transferred, unless such transfer is made with the Company’s
prior written consent or by reason of the provisions of Section 8.02, 8.03 or 8.04 requiring such
Lender to designate a different Applicable Lending Office under certain circumstances.
SECTION 10.07. Collateral. Each of the Lenders represents to the Agent and each of
the other Lenders that it in good faith is not relying upon any “margin stock” (as defined in
Regulation U) as collateral in the extension or maintenance of the credit provided for in this
Agreement.
SECTION 10.08. Governing Law; Submission to Jurisdiction. This Agreement shall be
governed by and construed in accordance with the laws of the State of New York. Each Borrower
hereby submits to the nonexclusive jurisdiction of the United States District Court for
45
the Southern District of New York and of any New York State court sitting in New York City for
purposes of all legal proceedings arising out of or relating to this Agreement or the transactions
contemplated hereby. Each Borrower irrevocably waives, to the fullest extent permitted by law, any
objection which it may now or hereafter have to the laying of the venue of any such proceeding
brought in such a court and any claim that any such proceeding brought in such a court has been
brought in an inconvenient forum.
SECTION 10.09. Counterparts; Integration; Effectiveness. This Agreement may be signed
in any number of counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument. This Agreement constitutes the entire
agreement and understanding among the parties hereto and supersedes any and all prior agreements
and understandings, oral or written, relating to the subject matter hereof. This Agreement shall
become effective on the date which is the later of (i) October 15, 2005, and (ii) the date on which
the Agent has received counterparts hereof signed by each of the parties hereto (or, in the case of
any party as to which an executed counterpart shall not have been received, telegraphic or other
written confirmation from such party in form satisfactory to the Agent of the execution of a
counterpart hereof by such party), provided that the obligation of the Lenders hereunder
are subject to the satisfaction of the conditions set forth in Section 4.01.
SECTION 10.10. WAIVER OF JURY TRIAL. EACH OF THE BORROWER, THE AGENT AND THE LENDERS
HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
SECTION 10.11. Conversion of Currencies. (a) If, for the purpose of obtaining
judgment in any court, it is necessary to convert a sum owing hereunder in one currency into
another currency, each party hereto (including any Borrowing Subsidiary) agrees, to the fullest
extent that it may effectively do so, that the rate of exchange used shall be that at which in
accordance with normal banking procedures in the relevant jurisdiction the first currency could be
purchased with such other currency on the Business Day immediately preceding the day on which final
judgment is given.
(b) The obligations of each Borrower in respect of any sum due to any party hereto or any
holder of the obligations owing hereunder (the “Applicable Creditor”) shall,
notwithstanding any judgment in a currency (the “Judgment Currency”) other than the
currency in which such sum is stated to be due hereunder (the “Agreement Currency”), be
discharged only to the extent that, on the Business Day following receipt by the Applicable
Creditor of any sum adjudged to be so due in the Judgment Currency, the Applicable Creditor may in
accordance with normal banking procedures in the relevant jurisdiction purchase the Agreement
Currency with the Judgment Currency; if the amount of the Agreement Currency which may be so
purchased is less than the sum originally due to the Applicable Creditor in the Agreement Currency,
such Borrower agrees, as a separate obligation and notwithstanding any such judgment, to indemnify
the Applicable Creditor against such loss. The obligations of the Borrowers contained in this
Section 10.11 shall survive the termination of this Agreement and the payment of all other amounts
owing hereunder.
SECTION 10.12. Interest Rate Limitation. Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges
and other amounts which are treated as interest on such Loan under applicable law (collectively the
“Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be
46
contracted for, charged, taken, received or reserved by the Lender holding such Loan in
accordance with applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to
the extent lawful, the interest and Charges that would have been payable in respect of such Loan
but were not payable as a result of the operation of this Section shall be cumulated and the
interest and Charges payable to such Lender in respect of other Loans or periods shall be increased
(but not above the Maximum Rate therefor) until such cumulated amount, together with interest
thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by
such Lender.
SECTION 10.13. USA Patriot Act. Each Lender hereby notifies the Company that pursuant
to the requirements of the USA Patriot Act, it is required to obtain, verify and record information
that identifies the Borrower, which information includes the name and address of the Company and
other information that will allow such Lender to identify the Borrowers in accordance with the
requirements of the USA Patriot Act.
SECTION 10.14. Confidentiality. Each of the Agent and the Lenders agrees to maintain
the confidentiality of the Information (as defined below), except that Information may be disclosed
(a) to its and its Affiliates’ directors, officers, employees and agents, including accountants,
legal counsel and other advisors (it being understood that the Persons to whom such disclosure is
made will be informed of the confidential nature of such Information and instructed to keep such
Information confidential), (b) to the extent required by any regulatory authority, (c) to the
extent required by applicable laws or regulations or by any subpoena or similar legal process and
promptly after receipt thereof notify the Borrower of the receipt of such subpoena or other legal
process, (d) to any other party to this Agreement, (e) in connection with the exercise of any
remedies hereunder or any suit, action or proceeding relating to this Agreement or the enforcement
of rights hereunder, (f) subject to an agreement containing provisions substantially the same as
those of this Section, and upon prior notice to the Company, to (i) any assignee of or Participant
in, or any prospective assignee of or Participant in, any of its rights or obligations under this
Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Obligations, (g) with the consent of the Borrowers or (h) to
the extent such Information (i) becomes publicly available other than as a result of a breach of
this Section or (ii) becomes available to the Agent or any Lender on a nonconfidential basis from a
source other than the Borrowers. For the purposes of this Section, “Information” means all
information received from the Borrowers relating to the Borrowers or their business, other than any
such information that is available to the Agent or any Lender on a nonconfidential basis prior to
disclosure by the Borrower. Any Person required to maintain the confidentiality of Information as
provided in this Section shall be considered to have complied with its obligation to do so if such
Person has exercised the same degree of care to maintain the confidentiality of such Information as
such Person would accord to its own confidential information.
47
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.
DOVER CORPORATION, | ||||||
by | /s/ Xxxxxx X. Xxxxxxx | |||||
Name: | Xxxxxx X. Xxxxxxx | |||||
Title: | Vice President Finance Chief Financial Officer & Treasurer |
|||||
Address: | 000 Xxxx Xxxxxx Xxx Xxxx, Xxx Xxxx 00000 |
|||||
Facsimile: | 000-000-0000 | |||||
JPMORGAN CHASE BANK, N.A., in its individual capacity and as administrative agent, | ||||||
by | /s/ Xxxxxxxx Xxxxx | |||||
Name: | Xxxxxxxx Xxxxx | |||||
Title: | Vice President | |||||
Address: | ||||||
Facsimile: |
48
DEUTSCHE BANK SECURITIES INC., as syndication agent, | |||||||
by | /s/ Xxxxxxxxx X. Xxxxx | ||||||
Name: Xxxxxxxxx X. Xxxxx | |||||||
Title: Managing Director | |||||||
by | /s/ Xxxx X. Xxx | ||||||
Name: Xxxx X. Xxx | |||||||
Title: Vice President | |||||||
Address: | 00 Xxxx Xxxxxx | ||||||
Xxx Xxxx, XX 00000 | |||||||
Facsimile: | 000-000-0000 | ||||||
BANK OF AMERICA, N.A., in its individual capacity and as documentation agent, | |||||||
by | /s/ Xxxx Xxxxxxxxxx | ||||||
Name: Xxxx Xxxxxxxxxx | |||||||
Title: Vice President | |||||||
Address: | |||||||
Facsimile: | |||||||
THE ROYAL BANK OF SCOTLAND plc, in its individual capacity and as documentation agent, | |||||||
by | /s/ Xxxxxxxx Xxxxxxxxx | ||||||
Name: Xxxxxxxx Xxxxxxxxx | |||||||
Title: Managing Director | |||||||
Address: | 000 Xxxx Xxxxxx | ||||||
Xxx Xxxx, XX 00000 | |||||||
Facsimile: | (000) 000-0000 | ||||||
WACHOVIA BANK, NATIONAL ASSOCIATION, in its individual capacity and as documentation agent, | |||||||
by | /s/ Xxxxxx X. Xxxxxxx | ||||||
Name: Xxxxxx X. Xxxxxxx | |||||||
Title: Vice President | |||||||
Address: | 000 Xxxxx Xxxxxxx Xxxxxx | ||||||
Xxxxxxxxx, XX 00000-0000 | |||||||
Facsimile: | (000) 000-0000 |
49
SIGNATURE PAGE TO THE DOVER CORPORATION FIVE-YEAR CREDIT AGREEMENT |
|||
Name of Institution: | |||
Deutsche Bank AG New York Branch | |||
by | |||
/s/ Xxxxxxxxx X. Xxxxx | |||
Name: | Xxxxxxxxx X. Xxxxx | ||
Title: | Managing Director | ||
/s/ Xxxx X. Xxx | |||
Name: | Xxxx X. Xxx | ||
Title: | Vice President |
50
SIGNATURE PAGE TO THE DOVER CORPORATION FIVE-YEAR CREDIT AGREEMENT |
|||
Name of Institution: | |||
Citibank, N.A. | |||
by | |||
/s/ Xxxxxx Xxxxx | |||
Name: | Costas (Xxx) Xxxxx | ||
Title: | Vice President |
51
SIGNATURE PAGE TO THE DOVER CORPORATION FIVE-YEAR CREDIT AGREEMENT |
|||
ING Capital, LLC.: | |||
by | |||
/s/ Xxxx Xxxxxx | |||
Name: | Xxxx Xxxxxx | ||
Title: | Managing Director |
52
SIGNATURE PAGE TO THE DOVER CORPORATION FIVE-YEAR CREDIT AGREEMENT |
|||
Name of Institution: | |||
BANK OF TOKYO-MITSUBISHI TRUST COMPANY | |||
by | |||
/s/ Xxxxx Xxxxxxxxxx | |||
Name: | Xxxxx Xxxxxxxxxx | ||
Title: | Vice President |
53
SIGNATURE PAGE TO THE DOVER CORPORATION FIVE-YEAR CREDIT AGREEMENT |
|||
Xxxxxxx Street Commitment Corporation (Recourse only to assets of Xxxxxxx Street Commitment Corporation), |
|||
by | |||
/s/ X. Xxxxxx | |||
Name: | Xxxx Xxxxxx | ||
Title: | Assistant Vice President |
54
SIGNATURE PAGE TO THE DOVER CORPORATION FIVE-YEAR CREDIT AGREEMENT |
|||
Name of Institution : | |||
LCL-LE CREDIT LYONNAIS, | |||
by | /s/ XXXXXXX Xxxxx | ||
Name: | XXXXXXX Xxxxx | ||
Title: | Directeur Régional Entreprises Adjoint | ||
LCL CREDIT LYONNAIS CENTRE ENTERPRISES SERVICE CLIENTÈLE 0, xxx Xxxxxxx 00000 XXXXXXXX Tel: 00 0000 00 00 |
55
SIGNATURE PAGE TO THE DOVER CORPORATION FIVE-YEAR CREDIT AGREEMENT |
|||
Name of Institution : North Fork Bank | |||
by | |||
/s/ Xxxxxx Xxxx | |||
Name: | Xxxxxx Xxxx | ||
Title: | Senior Vice President |
56
SIGNATURE PAGE TO THE DOVER CORPORATION FIVE-YEAR CREDIT AGREEMENT |
|||
Name of Institution: | |||
Skandinaviska Enskilda Xxxxxx XX (publ) | |||
by | |||
/s/ Xxxxxxx X Xxxxx | |||
Name: | Xxxxxxx X Xxxxx | ||
/s/ Xxxxxx Xxxxxxxxx | |||
Name: | XXXXXX XXXXXXXXX |
57
SIGNATURE PAGE TO THE DOVER CORPORATION FIVE-YEAR CREDIT AGREEMENT |
|||
Name of Institution: | |||
The Bank of New York, | |||
by | |||
/s/ Xxxxx Xxxxxxxx | |||
Name: | Xxxxx Xxxxxxxx | ||
Title: | Vice President |
58
SIGNATURE PAGE TO THE DOVER CORPORATION FIVE-YEAR CREDIT AGREEMENT |
|||
Name of Institution: | |||
Xxxxx Fargo Bank, National Association, | |||
by | |||
/s/ Xxxx X. Xxxx | |||
Name: | Xxxx X. Xxxx | ||
Title: | Vice President |
59
SIGNATURE PAGE TO THE DOVER CORPORATION FIVE-YEAR CREDIT AGREEMENT |
|||
The Bank of Nova Scotia | |||
By: | |||
/s/ Xxxx X. Xxxxxx | |||
Name: | Xxxx X. Xxxxxx | ||
Title: | Managing Director |
60
SIGNATURE PAGE TO THE DOVER CORPORATION FIVE-YEAR CREDIT AGREEMENT |
|||
SUMITOMO MITSUI BANKING CORPORATION | |||
By: | /s/ Xxxxx X. Xxxx | ||
Name: | Xxxxx X. Xxxx | ||
Title: | Senior Vice President |
EXHIBIT A-1
[FORM OF]
BORROWING SUBSIDIARY AGREEMENT dated as of [ ], 20[ ],
among DOVER CORPORATION, a Delaware corporation (the “Company”), [Name of
Borrowing Subsidiary], a [ ] corporation (the “New Borrowing
Subsidiary”), and JPMorgan Chase Bank, N.A., as Administrative Agent (the
“Agent”).
Reference is made to the Five-Year Credit Agreement dated as of October 26, 2005 (as amended,
supplemented or otherwise modified from time to time, the “Five-Year Credit Agreement”), among the
Company, the Borrowing Subsidiaries from time to time party thereto, the Lenders party thereto and
the Agent. Capitalized terms used herein but not otherwise defined herein shall have the meanings
assigned to such terms in the Five-Year Credit Agreement. Under the Five-Year Credit Agreement,
the Lenders have agreed, upon the terms and subject to the conditions therein set forth, to make
Loans to the Borrowing Subsidiaries, and the Company and the New Borrowing Subsidiary desire that
the New Borrowing Subsidiary become a Borrowing Subsidiary. Each of the Company and the New
Borrowing Subsidiary represent and warrant that the representations and warranties of the Company
in the Five-Year Credit Agreement relating to the New Borrowing Subsidiary and this Agreement are
true and correct on and as of the date hereof. The Company and the New Borrowing Subsidiary
represent and warrant that there is no income, stamp, or other tax of any country, or any taxing
authority thereof or therein, in the nature of a withholding tax or otherwise, which is imposed on
any payment to be made by the New Borrowing Subsidiary pursuant to this Agreement or the Five-Year
Credit Agreement, or is imposed in respect of the execution, delivery or enforcement of this
Agreement or the Five-Year Credit Agreement or, if there is any such tax, it is subject to the
provision of Section 8.04 of the Five-Year Credit Agreement. The Company agrees that the Guarantee
of the Company contained in the Five-Year Credit Agreement will apply to the Obligations of the New
Borrowing Subsidiary. Upon execution of this Agreement by each of the Company, the New Borrowing
Subsidiary and the Agent, the New Borrowing Subsidiary shall be a party to the Five-Year Credit
Agreement and a “Borrowing Subsidiary” and a “Borrower” for all purposes thereof, and the New
Borrowing Subsidiary hereby agrees to be bound by all provisions of the Five-Year Credit Agreement.
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK.
2
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
authorized officers as of the date first appearing above.
DOVER CORPORATION, | ||||||
by | ||||||
Name: | ||||||
Title: | ||||||
[NAME OF NEW BORROWING SUBSIDIARY], |
||||||
By | ||||||
Name: | ||||||
Title: | ||||||
JPMORGAN CHASE BANK, N.A., as Administrative Agent, | ||||||
by | ||||||
Name: | ||||||
Title: |
EXHIBIT A-2
[FORM OF]
BORROWING SUBSIDIARY TERMINATION
JPMorgan Chase Bank, N.A.,
as Administrative Agent
for the Lenders referred to below
c/o JPMorgan Chase Bank, N.A.,
as Administrative Agent
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
as Administrative Agent
for the Lenders referred to below
c/o JPMorgan Chase Bank, N.A.,
as Administrative Agent
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
[Date]
Ladies and Gentlemen:
The undersigned, Dover Corporation (the “Company”), refers to the Five-Year Credit Agreement
dated as of October 26, 2005 (as amended, supplemented or otherwise modified from time to time, the
“Five-Year Credit Agreement”), among the Company, the Borrowing Subsidiaries from time to time
party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent.
Capitalized terms used and not otherwise defined herein shall have the meanings assigned to such
terms in the Five-Year Credit Agreement.
The Company hereby terminates the status of [ ] (the “Terminated
Borrowing Subsidiary”) as a Borrowing Subsidiary under the Five-Year Credit Agreement. [The
Company represents and warrants that no Loans made to the Terminated Borrowing Subsidiary are
outstanding as of the date hereof and that all amounts payable by the Terminated Borrowing
Subsidiary in respect of interest and/or fees (and, to the extent notified by the Agent or any
Lender, any other amounts payable under the Five-Year Credit Agreement) pursuant to the Five-Year
Credit Agreement have been paid in full on or prior to the date hereof.] [The Company acknowledges
that the Terminated Borrowing Subsidiary shall continue to be a Borrowing Subsidiary until such
time as all Loans made to the Terminated Borrowing Subsidiary shall have been repaid and all
amounts payable by the Terminated Borrowing Subsidiary in respect of interest and/or fees (and, to
the extent notified by the Agent or any Lender, any other amounts payable under the Five-Year
Credit Agreement) pursuant to the Five-Year Credit Agreement shall have been paid in full,
provided that the Terminated Borrowing Subsidiary shall not have the right to make further
Borrowings under the Five-Year Credit Agreement.]
THIS INSTRUMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF
NEW YORK.
EXHIBIT B
[Form of]
ASSIGNMENT AND ASSUMPTION
Reference is made to the Five-Year Credit Agreement dated as of October 26, 2005 (as amended,
supplemented or otherwise modified from time to time, the “Five-Year Credit Agreement”), among
Dover Corporation (the “Company”), the Borrowing Subsidiaries from time to time party thereto, the
Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent. Terms defined in the
Five-Year Credit Agreement are used herein with the same meanings.
1. The Assignor hereby sells and assigns, without recourse, to the Assignee, and the Assignee
hereby purchases and assumes, without recourse, from the Assignor, effective as of the Effective
Date set forth below (but not prior to the recordation of the information contained herein in the
Register pursuant to Section 2.04 of the Five-Year Credit Agreement), the interests set forth below
in the Assignor’s rights and obligations under the Five-Year Credit Agreement and the other Loan
Documents, including, without limitation, the amounts and percentages set forth below of (i) the
Commitments of the Assignor on the Effective Date and (ii) the Loans owing to the Assignor which
are outstanding on the Effective Date. From and after the Effective Date (i) the Assignee shall be
a party to and be bound by the provisions of the Five-Year Credit Agreement and, to the extent of
the interests assigned by this Assignment and Assumption, have the rights and obligations of a
Lender thereunder and under the Loan Documents and (ii) the Assignor shall, except as otherwise
provided in the Five-Year Credit Agreement, to the extent of the interests assigned by this
Assignment and Assumption, relinquish its rights and be released from its obligations under the
Five-Year Credit Agreement.
2. This Assignment and Assumption is being delivered to the Agent together with (i) if the
Assignee is organized under the laws of a jurisdiction outside the United States, the forms
specified in Section 8.04(d) of the Five-Year Credit Agreement, duly completed and executed by such
Assignee, (ii) if the Assignee is not already a Lender under the Five-Year Credit Agreement, an
Administrative Questionnaire in the form supplied by the Agent and (iii) unless otherwise agreed to
by the Agent, a processing and recordation fee of $3,500 pursuant to Section 10.06(c) of the
Five-Year Credit Agreement. The Agent shall record the information contained in this Assignment
and Assumption in the Register pursuant to Section 2.04 of the Five-Year Credit Agreement.
3. THIS ASSIGNMENT AND ASSUMPTION SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.
2
Date of Assignment:
Legal Name of Assignor:
Legal Name of Assignee:
Assignee’s Address for Notices:
Effective Date of Assignment:
Percentage Assigned of | ||||
Loan/Commitment (set | ||||
forth to at least 8 | ||||
decimals), as a percentage | ||||
of the Facility and the | ||||
Aggregate Commitments | ||||
Principal | of all | |||
Loan/Commitment | Amount Assigned | Lenders | ||
$ | % | |||
$ | % |
The terms set forth above are hereby agreed to: | Accepted */: | |||||||
[Name of Assignor], as Assignor, | JPMORGAN CHASE BANK, N.A., as Administrative Agent, | |||||||
by:
|
by: | |||||||
Name: | Name: | |||||||
Title: | Title: | |||||||
[Name of Assignee], as Assignee, | DOVER CORPORATION, | |||||||
by:
|
by: | |||||||
Name: | Name: | |||||||
Title: | Title: |
*/ | To be completed to the extent consents are required under Section 10.06(c) of the Five-Year Credit Agreement. |
EXHIBIT C
ADDITIONAL RESERVE COSTS
Reference is made to the Five-Year Credit Agreement dated as of October 26, 2005 (as amended,
supplemented or otherwise modified from time to time, the “Five-Year Credit Agreement”), among
Dover Corporation (the “Company”), the Borrowing Subsidiaries from time to time party thereto, the
Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent. Capitalized terms
used but not defined herein shall have the meanings specified in the Five-Year Credit Agreement.
1. | Definitions | |
In this Exhibit: | ||
“Act” means the Bank of England Act of 1998. | ||
The terms “Eligible Liabilities” and “Special Deposits” have the meanings ascribed to them under or pursuant to the Act or by the Bank of England (as may be appropriate), on the day of the application of the formula. | ||
“Fee Base” has the meaning ascribed to it for the purposes of, and shall be calculated in accordance with, the Fees Regulations. | ||
“Fees Regulations” means, as appropriate, either: | ||
(a) the Banking Supervision (Fees) Regulations 1998; or | ||
(b) such regulations as from time to time may be in force, relating to the payment of fees for banking supervision in respect of periods subsequent to January 1, 2000. | ||
“FSA” means the Financial Services Authority. | ||
Any reference to a provision of any statute, directive, order or regulation herein is a reference to that provision as amended or re-enacted from time to time. | ||
2. | Calculation of the Mandatory Costs Rate | |
The Mandatory Costs Rate is an addition to the interest rate on each Eurocurrency Loan or any other sum on which interest is to be calculated to compensate the Lenders for the cost attributable to such Eurocurrency Loan or such sum resulting from the imposition from time to time under or pursuant to the Act and/or by the Bank of England and/or the FSA (or other United Kingdom governmental authorities or agencies) of a requirement to place non-interest bearing or Special Deposits (whether interest bearing or not) with the Bank of England and/or pay |
2
fees to the FSA calculated by reference to the liabilities used to fund the relevant Eurocurrency Loan or such sum. | ||
The “Mandatory Costs Rate” will be the rate determined by the Agent to be equal to the rate (rounded upward, if necessary, to the next higher 1/16 of 1%) resulting from the application of the following formula: | ||
For Sterling: | ||
XL + S(X-X) + F x 0.01 100-(X+S) |
||
For other Designated Foreign Currencies: | ||
F x 0.01 300 |
||
where on the day of application of the formula |
X | is the percentage of Eligible Liabilities (in excess of any stated minimum) by reference to which JPMorgan Chase Bank, N.A. (“JPMCB”) is required under or pursuant to the Act to maintain cash ratio deposits with the Bank of England; | |
L | is the rate of interest (exclusive of Applicable Rate, the effect of the Statutory Reserve Rate and Mandatory Costs Rate) payable on that day on the related Eurocurrency Loan or unpaid sum pursuant to this Agreement; | |
F | is the rate of charge payable by JPMCB to the FSA pursuant to the Fees Regulations and expressed in pounds per £1 million of the Fee Base of JPMCB; | |
S | is the level of interest-bearing Special Deposits, expressed as a percentage of Eligible Liabilities, which JPMCB is required to maintain by the Bank of England (or other United Kingdom governmental authorities or agencies); and | |
D | is the percentage rate per annum payable by the Bank of England to JPMCB on Special Deposits. |
(X, L, S and D are to be expressed in the formula as numbers and not as percentages. A negative result obtained from subtracting D from L shall be counted as zero.) | ||
The Mandatory Costs Rate attributable to a Eurocurrency Loan or other sum for any period shall be calculated at or about 11:00 A.M. (London time) on the first day of such period for the duration of such period. |
3
The determination of Mandatory Costs Rate by the Agent in relation to any period shall, in the absence of manifest error, be conclusive and binding on all parties hereto. | ||
3. | Change of Requirements | |
If there is any change in circumstance (including the imposition of alternative or additional requirements) which in the reasonable opinion of the Agent renders or will render the above formula (or any element thereof, or any defined term used therein) inappropriate or inapplicable, the Agent shall (with the written consent of the Company, which shall not be unreasonably withheld) be entitled to vary the same. Any such variation shall, in the absence of manifest error, be conclusive and binding on all parties and shall apply from the date specified in such notice. |
EXHIBIT D
DOVER CORPORATION
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000-0000
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000-0000
October 26, 2005
To Each of the Lenders and
the Administrative Agent Party to the
Five-Year Credit Agreement Referred to Below
c/o JPMorgan Chase Bank, N.A.,
as Administrative Agent
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
the Administrative Agent Party to the
Five-Year Credit Agreement Referred to Below
c/o JPMorgan Chase Bank, N.A.,
as Administrative Agent
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Re: Five-Year Credit Agreement
Ladies and Gentlemen:
I am General Counsel of Dover Corporation, a Delaware corporation (the “Company”), and have
acted as counsel to the Company in connection with the Five-Year Credit Agreement, dated as of
October 26, 2005 (the “Five-Year Credit Agreement”), among the Company, the Borrowing Subsidiaries
from time to time party thereto, the Lenders listed on the signature pages thereof and JPMorgan
Chase Bank, N.A., as Administrative Agent. This opinion is being rendered to you pursuant to
Section 4.01(a)(i) of the Five-Year Credit Agreement. Capitalized terms used but not defined
herein have the meanings attributed to them in the Five-Year Credit Agreement.
The Company conducts substantially all of its business through its Subsidiaries. I am not the
General Counsel of any of the Subsidiaries, but the Subsidiaries report to me regularly on material
litigation and/or contingencies and review other legal matters with me from time to time.
I have examined the Five-Year Credit Agreement and the originals or copies certified or
otherwise identified to my satisfaction, of such documents, corporate records, certificates of
public officials and other instruments as I have deemed relevant and necessary as the basis for the
opinions set forth below.
In such examination, I have assumed the legal capacity of all natural persons, the genuineness
of all signatures, the authenticity of all documents submitted to me as originals, the conformity
to original documents of all documents submitted to me as certified, photostatic or facsimile
copies and the authenticity of the originals of such copies.
As to various questions of fact material to the opinions rendered herein, I have relied upon
the statements and representations in the documents which I have examined. I have assumed the due
execution and delivery, pursuant to due authorization, of the documents that I have examined by
each party thereto other than the Company,
2
that each such party has the full power, authority and legal right to enter into and perform
its obligations under each such document to which it is a party, that each such document
constitutes the valid and legally binding obligation of each such other party, enforceable against
such party in accordance with its terms, and that each such party has satisfied those legal
requirements that are applicable to it to the extent necessary to make such documents enforceable
against it.
Based upon my examination, as described above, and subject to the assumptions and
qualifications stated, I am of the opinion that:
1. The Company is a corporation duly incorporated and in good standing and has a legal
corporate existence under the laws of the State of Delaware, and is duly qualified and in good
standing in each other jurisdiction in the United States where the failure to be so qualified would
have a material adverse effect on the business, consolidated financial position or consolidated
results of operations of the Company and its Consolidated Subsidiaries, considered as a whole. The
Company has all corporate powers and all material governmental licenses, authorizations, consents
and approvals required to carry on its business as now conducted, except for any such licenses,
authorizations, consents and approvals, the failure to have which would not have a material adverse
effect on the business, consolidated financial position or consolidated results of operations of
the Company and its Consolidated Subsidiaries, considered as a whole.
2. The execution, delivery and performance by the Company of the Five-Year Credit Agreement
are within the Company’s corporate powers and have been duly authorized by all necessary corporate
action on the part of the Company. The Five-Year Credit Agreement has been duly executed and
delivered by the Company.
3. The execution, delivery and performance by the Company of the Five-Year Credit Agreement
will not (a) require the consent, approval or authorization of, or any registration, declaration or
filing with, the State of New York or the United States of America, or any of their respective
agencies, other than filings under the Securities Exchange Act of 1934, as amended, or (b) violate
any statute or regulation of the State of New York or the United States of America applicable to
the Company.
4. The execution, delivery and performance by the Company of the Five-Year Credit Agreement
will not contravene, or constitute a default under, or result in the creation or imposition of any
Lien on any asset of the Company or any of its Subsidiaries listed on Annex 1 hereto under the
certificate of incorporation or by-laws of the Company or any agreement, judgment, injunction,
order, decree or other instrument actually known to me and binding upon the Company or any of its
Subsidiaries listed on Annex 1 hereto. Based on factual information provided by the Company, the
Subsidiaries listed on Annex 1 hereto are all the Company’s Subsidiaries incorporated in any
jurisdiction within the United States which fall within the definition of a “significant
subsidiary” contained as of the date hereof in Regulation S-X of the Securities and Exchange
Commission.
3
5. The Five-Year Credit Agreement constitutes a valid and binding agreement of the Company
enforceable against the Company in accordance with its terms.
6. To my knowledge, there is no action, suit or proceeding pending against or threatened
against or affecting the Company or any of its Subsidiaries before any court or arbitrator or any
governmental body, agency or official, in which there is a reasonable possibility of an adverse
decision which could have a material adverse effect on the business, consolidated financial
position or consolidated results of operations of the Company and its Consolidated Subsidiaries,
considered as a whole, or which in any manner draws into question the validity of the Five-Year
Credit Agreement.
7. Each of the Company’s corporate Subsidiaries listed on Annex 1 hereto is a corporation
validly existing and in good standing under the laws of its jurisdiction of incorporation, and has
all corporate powers and all material governmental licenses, authorizations, consents and approvals
required to carry on its business as now conducted, except for any such licenses, authorizations,
consents and approvals, the failure to have which would not have a material adverse effect on the
business, consolidated financial position or consolidated results of operations of the Company and
its Consolidated Subsidiaries, considered as a whole.
8. The Company is not an “investment company” within the meaning of the Investment Company
Act of 1940, as amended.
In giving the opinions expressed above, I express no opinion as to the enforceability of
provisions indemnifying a party for its own wrongful or negligent acts or where the indemnification
is contrary to public policy. I also wish to point out that the enforceability of provisions in
the Five-Year Credit Agreement to the effect that terms may not be waived or modified except in
writing may be limited under certain circumstances.
My opinion with respect to the enforceability of the Five-Year Credit Agreement may be limited
or otherwise affected by (a) applicable bankruptcy, reorganization, insolvency, moratorium,
fraudulent conveyance and similar laws which relate to or affect creditors’ rights generally and
(b) general principles of equity, including (1) the possible unavailability of specific
performance, injunctive relief or any other equitable remedy and (2) concepts of materiality,
reasonableness, good faith and fair dealing.
I am a member of the Bar of the State of New York and the foregoing opinions are limited to
the laws of the State of New York, the federal laws of the United States of America and the General
Corporation Law of the State of Delaware.
4
The opinions set forth above are rendered solely to you in connection with the above matter
and may not be relied upon by you for any other purpose or relied upon by or furnished to any other
person without my prior written consent.
Very truly yours,
ANNEX 1
SUBSIDIARIES
Name of Subsidiary | Jurisdiction of Incorporation | |
Revod Corporation
|
Delaware | |
Delaware Capital Formation, Inc.
|
Delaware | |
Delaware Capital Holdings, Inc.
|
Delaware | |
DFH Corporation
|
Delaware | |
Dover Europe, Inc.
|
Delaware | |
Dover Resources, Inc.
|
Delaware | |
Dover Industries, Inc.
|
Delaware | |
Dover Diversified, Inc.
|
Delaware | |
Dover Technologies International, Inc.
|
Delaware | |
Dover Systems, Inc.
|
Delaware | |
Dover Electronics, Inc.
|
Delaware | |
Xxxxxxx Electronics Holdings, Inc.
|
Delaware |
EXHIBIT E
[Form of Borrowing Subsidiary Opinion]
[Letterhead of Counsel]
[ ], 20[ ]
Ladies and Gentlemen:
We have acted as special [SPECIFY JURISDICTION] counsel to each corporation listed on Schedule
I attached hereto (each, a “New Borrowing Subsidiary”) in connection with the following documents:
(a) Five-Year Credit Agreement dated as of October 26, 2005 (the “Five-Year Credit
Agreement”), among Dover Corporation, the Borrowing Subsidiaries from time to time party thereto,
the Lenders party thereto and JPMorgan Chase Bank, N.A., as Agent; and
(b) the Borrowing Subsidiary Agreements dated as of [ ], 20[ ] (the “Borrowing
Subsidiary Agreements”), among Dover Corporation, the Agent and each New Borrowing Subsidiary.
Capitalized terms used but not defined herein have the meanings assigned to them in the
Five-Year Credit Agreement.
In connection with this opinion, we have examined originals or copies certified or otherwise
identified to our satisfaction of the Borrowing Subsidiary Agreements and such other documents as
we have deemed necessary for purposes of this opinion.
In such examination, we have assumed the legal capacity of all natural persons, the
genuineness of all signatures, the authenticity of all documents submitted to us as originals, the
conformity to original documents of all documents submitted to us as certified, photostatic or
facsimile copies and the authenticity of the originals of such copies.
As to various questions of fact material to the opinions rendered herein, we have relied upon
the statements and representations in the documents which we have examined. We have assumed the
due execution and delivery, pursuant to due authorization, of the documents that we have examined
by each party thereto other than the New Borrowing Subsidiaries, that each such party has the full
power, authority and legal right to enter into, and perform its obligations under, each such
document to which it is a party, that each such document constitutes the valid and legally binding
obligation of each such other party, enforceable against such party in accordance with its terms,
and
2
that such party has satisfied those legal requirements that are applicable to it to the extent
necessary to make such documents enforceable against it.
Based upon the foregoing and subject to the assumptions and qualifications stated herein, it
is our opinion that:
1. Each New Borrowing Subsidiary is a corporation duly incorporated, validly existing and in
good standing under the laws of [SPECIFY JURISDICTION] and has the corporate powers, and has been
authorized by all necessary corporate action, to execute, deliver and perform its obligations under
each Borrowing Subsidiary Agreement to which it is a party. Each Borrowing Subsidiary Agreement
has been duly executed and delivered by each New Borrowing Subsidiary that is party thereto.
2. The execution, delivery and performance of the Borrowing Subsidiary Agreements by the New
Borrowing Subsidiaries will not violate any law, statute, rule or regulation of [SPECIFY
JURISDICTION] or any order of any governmental authority of [SPECIFY JURISDICTION].
3. No action, consent or approval of, registration or filing with or other action by any
governmental authority of [SPECIFY JURISDICTION] is or will be required in connection with the
execution, delivery and performance by the New Borrowing Subsidiaries of the Borrowing Subsidiary
Agreements.
4. It is not necessary under the laws of [SPECIFY JURISDICTION] that the Agent, any Agent
Designee or any Lender be licensed, qualified or entitled to do business in [SPECIFY JURISDICTION]
(a) by reason of the execution or performance of the Borrowing Subsidiary Agreements or (b) in
order to enable any of them to enforce their respective rights under any Borrowing Subsidiary
Agreements, and none of them is or will be deemed to be resident, domiciled, carrying on business
or subject to taxation in [SPECIFY JURISDICTION] solely by reason of the execution, performance or
enforcement of the Borrowing Subsidiary Agreements.]*
5. The New York governing law clauses set forth in such Borrowing Subsidiary Agreements are
valid and binding under the laws of [SPECIFY JURISDICTION].
6. Any judgment or award by the New York Courts in an action, suit or proceeding against any
New Borrowing Subsidiary arising out of any of the Loan Documents to which it is party would be
recognized and enforced in [SPECIFY JURISDICTION] and any political subdivision thereof and it
would not be necessary to commence new proceedings in [SPECIFY JURISDICTION] other than a
proceeding in which proof of such judgment or award is submitted.]*
7. No [SPECIFY JURISDICTION] ad valorem stamp duty, stamp duty reserve tax or other tax, fee
or charge is payable on the execution of the Borrowing Subsidiary Agreements.
3
We are admitted to practice in [SPECIFY JURISDICTION]. We express no opinion as to matters
under or involving the laws of any jurisdiction other than the laws of [SPECIFY JURISDICTION].
[Insert here qualifications, if any, to the above opinions, necessary or part of best practice
under local law.]
* Paragraphs 4 and 6 are required only for foreign subsidiaries.
4
This opinion letter is rendered solely to you in connection with the above matter. Without
our prior consent, it may not be relied upon for any other purpose or relied upon by or furnished
to any other person other than your successors and any person which becomes your assignee in
accordance with the Five-Year Credit Agreement.
Very truly yours,
To the Lenders
each Agent Designee
and the Administrative Agent,
referred to above,
c/o JPMorgan Chase Bank, N.A., as Administrative Agent
each Agent Designee
and the Administrative Agent,
referred to above,
c/o JPMorgan Chase Bank, N.A., as Administrative Agent
5
Schedule I
List of New Borrowing Subsidiaries
List of New Borrowing Subsidiaries
EXHIBIT F
PROMISSORY NOTE
New York, New York
[ ], 2005
[ ], 2005
For value received, [
], a corporation organized under the laws of [ ]
(the “Borrower”), promises to pay to the order of [ ] (the “Lender”) (i) the unpaid
principal amount of each Loan made by the Lender to the Borrower under the Five-Year Credit
Agreement referred to below, when and as due and payable under the terms of such Five-Year Credit
Agreement, and (ii) interest on the unpaid principal amount of each such Loan on the dates and at
the rate or rates provided for in the Five-Year Credit Agreement. All such payments of principal
and interest shall be made in the currencies and to the accounts specified in the Five-Year Credit
Agreement, in immediately available funds.
All Loans made by the Lender, and all repayments of the principal thereof, shall be recorded
by the Lender and, prior to any transfer hereof, appropriate notations to evidence the foregoing
information with respect to each such Loan then outstanding shall be endorsed by the Lender on the
schedule attached hereto, or on a continuation of such schedule attached hereto and made a part
hereof; provided that the failure of the Lender to make any such recordation or endorsement
shall not affect the obligations of the Borrower hereunder or under the Five-Year Credit Agreement.
This note is one of the promissory notes issued pursuant to the Five-Year Credit Agreement,
dated as of October 26, 2005 (as amended, supplemented or otherwise modified from time to time, the
“Five-Year Credit Agreement”), among Dover Corporation, each Borrowing Subsidiary from time to time
party thereto, the Lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent.
Terms defined in the Five-Year Credit Agreement are used herein with the same meanings. Reference
is made to the Five-Year Credit Agreement for provisions for the mandatory and optional prepayment
hereof and the acceleration of the maturity hereof.
[BORROWER], | ||||||
by | ||||||
Name: | ||||||
Title: |
2
SCHEDULE OF LOANS AND PAYMENTS OF PRINCIPAL
Five-Year Credit Agreement
Amount | Amount of | Unpaid | ||||||||||||||
of | Principal | Principal | Notations | |||||||||||||
Date | Loan | Repaid | Balance | Made By | ||||||||||||
EXHIBIT G
[FORM OF ACCESSION AGREEMENT]
ACCESSION AGREEMENT dated as of [ ], 20[ ], among [ ] (the
“Acceding Lender”), DOVER CORPORATION, a Delaware corporation (the
“Company”), and JPMORGAN CHASE BANK, N.A., as administrative agent (the
“Agent”) for the Lenders (as defined in the Five-Year Credit Agreement
referred to below).
A. Reference is made to the Five-Year Credit Agreement dated as of October 26, 2005 (as
amended, supplemented or otherwise modified from time to time, the “Five-Year Credit Agreement”),
among the Company, the Borrowing Subsidiaries from time to time party thereto, the Lenders party
thereto and JPMorgan Chase Bank, N.A., as Agent.
B. Capitalized terms used herein and not otherwise defined herein shall have the meanings
assigned to such terms in the Five-Year Credit Agreement.
C. The Company has invited, and the Acceding Lender desires, to become a party to the
Five-Year Credit Agreement and to assume the obligations of a Lender thereunder. The Acceding
Lender is entering into this Agreement in accordance with the provisions of the Five-Year Credit
Agreement in order to become a Lender thereunder.
Accordingly, the Acceding Lender, the Company and the Agent agree as follows:
SECTION 1. Accession to the Five-Year Credit Agreement. (a) The Acceding Lender, as
of the Effective Date, hereby accedes to the Five-Year Credit Agreement and shall thereafter have
the rights and obligations of a Lender thereunder with the same force and effect as if originally
named therein as a Lender.
(b) The Commitment of the Acceding Lender shall equal the amount set forth opposite its
signature hereto.
SECTION 2. Representations and Warranties, Agreements of Acceding Lender, etc. The
Acceding Lender (a) represents and warrants that it is legally authorized to enter into this
Agreement; (b) confirms that it has received a copy of the Five-Year Credit Agreement, together
with copies of the most recent financial statements delivered pursuant to Section 5.01 of the
Five-Year Credit Agreement and such other documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into this Agreement; (c) confirms that it will
independently and without reliance upon the Agent or any 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 Five-Year Credit Agreement; (d) appoints and authorizes the
Agent to take such action as agent on its behalf and to exercise such powers under the
2
Five-Year Credit Agreement as are delegated to the Agent by the terms thereof, together with
such powers as are reasonably incidental thereto; and (e) agrees that it will perform, in
accordance with the terms of the Five-Year Credit Agreement, all the obligations that by the terms
of the Five-Year Credit Agreement are required to be performed by it as a Lender.
SECTION 3. Effectiveness. (a) This Agreement shall become effective as of the date
set forth above on the date (the “Effective Date”) that the Agent shall have received counterparts
of this Agreement that, when taken together, bear the signatures of the Agent, the Company and the
Acceding Lender.
(b) Upon the effectiveness of this Agreement, the Agent shall (i) record the information
contained herein in the Register and (ii) promptly deliver a copy of this Agreement to the Lenders.
SECTION 4. Counterparts. This Agreement may be executed in multiple counterparts,
each of which shall constitute an original, but all of which, when taken together, shall constitute
but one instrument.
SECTION 5. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.
SECTION 6. Severability. In case any one or more of the provisions contained in this
Agreement should be held invalid, illegal or unenforceable in any respect, none of the parties
hereto shall be required to comply with such provision for so long as such provision is held to be
invalid, illegal or unenforceable, but the validity, legality and enforceability of the remaining
provisions contained herein and in the Five-Year Credit Agreement shall not in any way be affected
or impaired. The parties hereto shall endeavor in good-faith negotiations to replace the invalid,
illegal or unenforceable provisions with valid provisions the economic effect of which comes as
close as possible to that of the invalid, illegal or unenforceable provisions.
SECTION 7. Notices. All communications and notices hereunder shall be in writing and
given as provided in Section 10.01 of the Five-Year Credit Agreement. All communications and
notices hereunder to the Acceding Lender shall be given to it at the address set forth under its
signature hereto, which information, together with the amount of the Acceding Lender’s Commitment,
supplements Schedule 2.01 to the Five-Year Credit Agreement.
3
IN WITNESS WHEREOF, the Acceding Lender, the Company and the Agent have duly executed this
Agreement as of the day and year first above written.
Commitment | [ACCEDING LENDER], | |||||
$[ ] |
||||||
by | ||||||
Name: | ||||||
Title: | ||||||
Address: | ||||||
DOVER CORPORATION, | ||||||
by | ||||||
Name: | ||||||
Title: | ||||||
JPMORGAN CHASE BANK, N.A., as Administrative Agent, | ||||||
by | ||||||
Name: | ||||||
Title: |