Acuson Corporation Exhibit 10.1
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EXECUTION VERSION
SECOND AMENDMENT TO CREDIT AGREEMENT
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THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this "Amendment"), dated as of
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March 17, 2000 is entered into by and among:
(1) ACUSON CORPORATION, a Delaware corporation ("Borrower");
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(2) Each of the financial institutions from time to time listed in
Schedule I to the Credit Agreement referred to in Recital A below
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(collectively, the "Lenders"); and
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(3) ABN AMRO BANK N.V., acting through its San Francisco
Representative Office, as agent for the Lenders (in such capacity,
"Agent").
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RECITALS
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A. Borrower, the Lenders and Agent are parties to that certain Credit
Agreement dated as of April 9, 1999, as amended by that certain First Amendment
to Credit Agreement dated as of December 16, 1999 (as amended, the "Credit
------
Agreement").
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B. Borrower has requested that the Lenders and Agent amend the Credit
Agreement in certain respects.
C. The Lenders and Agent are so willing to amend the Credit Agreement upon
the terms and subject to the conditions set forth below.
AGREEMENT
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NOW, THEREFORE, in consideration of the above recitals and for other good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Borrower, the Lenders and Agent hereby agree as follows:
1. Definitions, Interpretation. All capitalized terms defined above and
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elsewhere in this Amendment shall be used herein as so defined. Unless
otherwise defined herein, all other capitalized terms used herein shall have the
respective meanings given to those terms in the Credit Agreement, as amended by
this Amendment. The rules of construction set forth in Section I of the Credit
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Agreement shall, to the extent not inconsistent with the terms of this
---------
Amendment, apply to this Amendment and are hereby incorporated by reference.
2. Amendments to Credit Agreement. Subject to the satisfaction of the
------------------------------
conditions set forth in Paragraph 4 below, the Credit Agreement is hereby
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amended so as to incorporate all of the changes set forth in the marked version
of the Credit Agreement attached hereto as Attachment A.
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Acuson Corporation Exhibit 10.1
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3. Representations and Warranties. Borrower hereby represents and
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warrants to Agent and the Lenders that the following are true and correct on the
date of this Amendment and that, after giving effect to the amendments set forth
in Paragraph 2 above, the following will be true and correct on the Effective
-----------
Date (as defined below):
(a) The representations and warranties of Borrower and its
Subsidiaries set forth in Paragraph 4.01 of the Credit Agreement and in the
--------------------------------------
other Credit Documents are true and correct in all material respects
(except with respect to representations and warranties that speak as of a
particular date, which shall be true and correct as of such date);
(b) No Default or Event of Default has occurred and is continuing; and
(c) Each of the Credit Documents is in full force and effect.
(Without limiting the scope of the term "Credit Documents," Borrower expressly
acknowledges in making the representations and warranties set forth in this
Paragraph 3 that, on and after the date hereof, such term includes this
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Amendment.)
4. Effective Date. The amendments set forth in Paragraph 2 above, shall
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become effective on March 17, 2000 (the "Effective Date"), subject to receipt by
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Agent and the Lenders on or prior to the Effective Date of the following, each
in form and substance satisfactory to Agent, the Lenders and their respective
counsel:
(a) This Amendment duly executed by Borrower, the Lenders and Agent;
(b) A new Revolving Loan Note payable to each Lender, each duly
executed by Borrower;
(c) A Certificate of the Secretary of Borrower in the form attached
hereto as Attachment B, dated the Effective Date, certifying (i) that the
------------
Certificate of Incorporation, Bylaws and resolutions of Borrower, in the
form delivered to Agent on the Closing Date, are in full force and effect
and have not been amended, supplemented, revoked or repealed since such
date, and (ii) the incumbency, signatures and authority of the officers of
Borrower authorized to execute, deliver and perform this Amendment, and all
other documents, instruments or agreements related thereto executed or to
be executed by Borrower; and
(d) A new Agent's Fee Letter in form and substance satisfactory to
Agent and duly executed by Borrower;
(e) Payment of a one-time, nonrefundable participation fee equal to
.125% to be paid to each Lender;
2
Acuson Corporation Exhibit 10.1
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(f) Payment of all other fees and expenses payable to Agent and the
Lenders on or prior to the Effective Date (including all fees payable to
Agent pursuant to the new Agent's Fee Letter);
(g) Payment of all fees and expenses of Agent's counsel billed through
the Effective Date; and
(h) Such other evidence as Agent or any Lender may reasonably request
to establish the accuracy and completeness of the representations and
warranties and the compliance with the terms and conditions contained in
this Amendment and the other Credit Documents.
5. Effect of this Amendment. On and after the Effective Date, each
------------------------
reference in the Credit Agreement and the other Credit Documents to the Credit
Agreement shall mean the Credit Agreement as amended hereby. Except as
specifically amended above, (a) the Credit Agreement and the other Credit
Documents shall remain in full force and effect and are hereby ratified and
confirmed and (b) the execution, delivery and effectiveness of this Amendment
shall not, except as expressly provided herein, operate as a waiver of any
right, power, or remedy of the Lenders or Agent, nor constitute a waiver of any
provision of the Credit Agreement or any other Credit Document.
6. Miscellaneous.
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(a) Counterparts. This Amendment may be executed in any number of
------------
identical counterparts, any set of which signed by all the parties hereto
shall be deemed to constitute a complete, executed original for all
purposes.
(b) Headings. Headings in this Amendment are for convenience of
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reference only and are not part of the substance hereof.
(c) Governing Law. This Amendment shall be governed by and construed
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in accordance with the laws of the State of California without reference to
conflicts of law rules.
[signature page follows]
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Acuson Corporation Exhibit 10.1
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IN WITNESS WHEREOF, Borrower, Agent and the Lenders have caused this
Amendment to be executed as of the day and year first above written.
BORROWER: ACUSON CORPORATION, a Delaware corporation
By: /s/ Xxxxx Xxxxxxxxxxx
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Name: Xxxxx Xxxxxxxxxxx
Title: Vice President, CFO
AGENT: ABN AMRO BANK N.V., as Agent
By: /s/ Xxxx X. Xxxxxxxxx
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Name: Xxxx X. Xxxxxxxxx
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Title: Group Vice President
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By: /s/ Xxxxxx Xxx
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Name: Xxxxxx Xxx
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Title: Vice President
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LENDERS: ABN AMRO BANK N.V., as a Lender
By: /s/ Xxxx X. Xxxxxxxxx
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Name: Xxxx X. Xxxxxxxxx
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Title: Group Vice President
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By: /s/ Xxxxxx Xxx
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Name: Xxxxxx Xxx
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Title: Vice President
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BANQUE NATIONALE DE PARIS, as a Lender
By: /s/ Xxxxxxxxx Xxxxx
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Name: Xxxxxxxxx Xxxxx
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Title: Vice President
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By: /s/ Xxxxxx X. Xxxxxxx
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Name: Xxxxxx X. Xxxxxxx
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Title: Assistant Vice President
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4
Acuson Corporation Exhibit 10.1
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ATTACHMENT A
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Comparerite Version of Credit Agreement
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See Attachment.
Acuson Corporation Exhibit 10.1
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ATTACHMENT B
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Form of Secretary's Certificate
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ACUSON CORPORATION
SECRETARY'S CERTIFICATE
Reference is made to that certain Credit Agreement, dated as of April 9,
1999 (as amended, the "Credit Agreement"), by and among Acuson Corporation, a
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Delaware corporation (the "Company"), each of the financial institutions listed
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in Schedule I to the Credit Agreement (collectively, the "Lenders"), and ABN
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AMRO Bank N.V., acting through its San Francisco Representative Office, as agent
for the Lenders (in such capacity, "Agent"). This Certificate is delivered
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pursuant to Subparagraph 4(c) of that certain Second Amendment to Credit
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Agreement dated as of March 17, 2000 (the "Second Amendment") with the intention
----------------
that the Lenders and Agent shall rely hereon in connection with the execution
and delivery of the Second Amendment. Capitalized terms used herein without
definition shall have the meanings given to such terms in the Second Amendment.
I, Xxxxxxx Xxxxxxxx, do hereby certify that I am the duly elected,
qualified and acting Secretary of the Company, and that, as such, I am
authorized to execute this Certificate on behalf of the Company, and I further
certify that:
(a) The following persons have been duly elected or appointed to, are
duly qualified for, and on the date hereof do hold, the offices of the Company
set forth opposite their respective names below, and as such, are authorized to
execute and deliver on behalf of the Company the Second Amendment, and all other
documents, instruments, or agreements related thereto executed or to be executed
by the Company, and that the signatures appearing below, opposite the name of
such persons are the authentic signature or facsimile thereof, respectively, of
such persons:
Name Office Signature
---- ------ ---------
____________________ ____________________ ______________________________
____________________ ____________________ ______________________________
____________________ ____________________ ______________________________
____________________ ____________________ ______________________________
Acuson Corporation Exhibit 10.1
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(b) Each of the Company's (i) Certificate of Incorporation and Bylaws
in the form delivered to Agent on the Closing Date, and (ii) resolutions dated
December 3, 1999 authorizing the transactions contemplated pursuant to the
Credit Agreement and the other Credit Documents, delivered to Agent on December
16, 1999, are in full force and effect and have not been amended, supplemented,
revoked or repealed since such date.
IN WITNESS WHEREOF, I have executed this Certificate on and as of this 17
day of March, 2000.
____________________________________
Name: Xxxxxxx Xxxxxxxx
Title: Secretary
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CONFORMED COPY THROUGH
SECOND AMENDMENT
ATTACHMENT A
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CREDIT AGREEMENT
among
ACUSON CORPORATION
and
THE LENDERS NAMED HEREIN
and
ABN AMRO BANK N.V.,
as Agent for the Lenders
April 9, 1999
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TABLE OF CONTENTS
Page
----
SECTION I. INTERPRETATION........................................ 1
1.01. Definitions............................................... 1
1.02. GAAP...................................................... 18
1.03. Headings.................................................. 19
1.04. Plural Terms.............................................. 19
1.05. Time...................................................... 19
1.06. Governing Law............................................. 19
1.07. Construction.............................................. 19
1.08. Entire Agreement.......................................... 19
1.09. Calculation of Interest and Fees.......................... 19
1.10. Other Interpretive Provisions............................. 19
SECTION II. CREDIT FACILITIES..................................... 20
2.01. Revolving Loan Facility................................... 20
2.02. Term Loan Facility........................................ 24
2.03. Commitment Reductions, Etc................................ 27
2.04. Fees...................................................... 27
2.05. Prepayments............................................... 28
2.06. Other Payment Terms....................................... 28
2.07. Notes and Interest Account................................ 29
2.08. Loan Funding.............................................. 30
2.09. Pro Rata Treatment........................................ 31
2.10. Change of Circumstances................................... 32
2.11. Taxes on Payments......................................... 34
2.12. Funding Loss Indemnification.............................. 37
2.13. Replacement of Lenders.................................... 37
SECTION III. CONDITIONS PRECEDENT.................................. 38
3.01. Initial Conditions Precedent.............................. 38
3.02. Conditions Precedent to Term Loan Borrowing............... 38
3.03. Conditions Precedent to Each Credit Event................. 38
3.04. Covenant to Deliver....................................... 38
SECTION IV. REPRESENTATIONS AND WARRANTIES........................ 39
-i-
TABLE OF CONTENTS
(continued)
Page
4.01. Borrower's Representations and Warranties................. 39
4.02. Reaffirmation............................................. 43
SECTION V. COVENANTS............................................. 43
5.01. Affirmative Covenants..................................... 43
5.02. Negative Covenants........................................ 46
5.03. Financial Covenants....................................... 53
SECTION VI. DEFAULT............................................... 54
6.01. Events of Default......................................... 54
6.02. Remedies.................................................. 56
SECTION VII. THE AGENT AND RELATIONS AMONG LENDERS................. 56
7.01. Appointment, Powers and Immunities........................ 56
7.02. Reliance by Agent......................................... 57
7.03. Defaults.................................................. 57
7.04. Indemnification........................................... 57
7.05. Non-Reliance.............................................. 57
7.06. Resignation or Removal of Agent........................... 58
7.07. Authorization............................................. 58
7.08. Agent in its Individual Capacity.......................... 58
SECTION VIII. MISCELLANEOUS......................................... 59
8.01. Notices................................................... 59
8.02. Expenses.................................................. 60
8.03. Indemnification........................................... 61
8.04. Waivers; Amendments....................................... 61
8.05. Successors and Assigns.................................... 62
8.06. Setoff; Security Interest................................. 65
8.07. No Third Party Rights..................................... 65
8.08. Partial Invalidity........................................ 65
8.09. Jury Trial................................................ 65
8.10. Counterparts.............................................. 66
8.11. Confidentiality........................................... 66
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TABLE OF CONTENTS
(continued)
Page
SCHEDULES
I Lenders
1.01 Pricing Grid
3.01 Initial Conditions Precedent
4.01(p) Borrower's Subsidiaries
5.02(a) Existing Indebtedness
5.02(b) Existing Liens
5.02(e) Existing Investments
EXHIBITS
A-1 Notice of Revolving Loan Borrowing
A-2 Notice of Term Loan Borrowing
B-1 Notice of Revolving Loan Conversion
B-2 Notice of Term Loan Conversion
C-1 Notice of Revolving Loan Interest Period Selection
C-2 Notice of Term Loan Interest Period Selection
D-1 Revolving Loan Note
D-2 Term Loan Note
E Investment Policy
F Assignment Agreement
G Confidentiality Letter
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CREDIT AGREEMENT
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THIS CREDIT AGREEMENT, dated as of April 9, 1999, is entered into by and
among:
(1) ACUSON CORPORATION, a Delaware corporation ("Borrower");
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(2) Each of the financial institutions from time to time listed in
Schedule I hereto, as amended from time to time (such financial
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institutions to be referred to herein collectively as the "Lenders"); and
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(3) ABN AMRO BANK N.V., acting through its San Francisco International
Branch, as agent for the Lenders (in such capacity, "Agent").
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RECITALS
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A. Borrower has requested the Lenders to provide certain credit
facilities to Borrower.
B. The Lenders are willing to provide such credit facilities upon the
terms and subject to the conditions set forth herein.
AGREEMENT
---------
NOW, THEREFORE, in consideration of the above Recitals and the mutual
covenants herein contained, the parties hereto hereby agree as follows:
SECTION I. INTERPRETATION
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1.01. Definitions. Unless otherwise indicated in this Agreement or any
-----------
other Credit Document, each term set forth below, when used in this Agreement or
any other Credit Document, shall have the respective meaning given to that term
below or in the provision of this Agreement or other document, instrument or
agreement referenced below.
"Affiliate" shall mean, with respect to any Person, (a) each Person
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that, directly or indirectly, owns or controls, whether beneficially or as
a trustee, guardian or other fiduciary, five percent (5%) or more of any
class of Equity Securities of such Person, (b) each Person that controls,
is controlled by or is under common control with such Person or any
Affiliate of such Person or (c) each of such Person's officers, directors,
joint venturers and partners; provided, however, that in no case shall
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Agent or any Lender be deemed to be an Affiliate of Borrower or any of its
Subsidiaries for purposes of this Agreement. For the purpose of this
definition, "control" of a Person shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of its
management or policies, whether through the ownership of voting securities,
by contract or otherwise.
"Agent" shall have the meaning given to that term in clause (3) of the
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introductory paragraph hereof.
----------------------
"Agent's Fee Letter" shall mean the letter agreement dated as of March
------------------
[A], 2000, between Borrower and Agent.
"Agreement" shall mean this Credit Agreement.
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"Applicable Lending Office" shall mean, with respect to any Lender,
-------------------------
(a) initially, its office designated as such in Schedule I (or, in the case
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of any Lender which becomes a Lender by an assignment pursuant to
Subparagraph 8.05(c), its office designated as such in the applicable
--------------------
Assignment Agreement) and (b) subsequently, such other office or offices as
such Lender may designate to Agent as the office at which such Lender's
Loans or Portions will thereafter be maintained and for the account of
which all payments of principal of, and interest on, such Lender's Loans or
Portions will thereafter be made.
"Applicable Margin" shall mean:
-----------------
(a) With respect to any Base Rate Loan or Base Rate Portion, zero
percent (0%); and
(b) With respect to any LIBOR Loan or LIBOR Portion at any time,
the per annum margin which is determined pursuant to the Pricing Grid
and added to the LIBO Rate for such Loan or Portion;
provided, however, that each Applicable Margin set forth in subparagraphs
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(a) and (b) of this definition shall be increased by two percent (2.0%)
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immediately upon the occurrence of any Event of Default described in
Subparagraph 6.01(a), 6.01(e), 6.01(f), 6.01(g) or 6.01(k) or upon receipt
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of written notice from Agent after the occurrence of any other Event of
Default and shall continue at such increased rate unless and until such
Event of Default is waived in accordance with this Agreement.
"Assignee Lender" shall have the meaning given to that term in
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Subparagraph 8.05(c).
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"Assignment" shall have the meaning given to that term in Subparagraph
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8.05(c).
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"Assignment Agreement" shall have the meaning given to that term in
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Subparagraph 8.05(c).
--------------------
"Assignment Effective Date" shall have, with respect to each
-------------------------
Assignment Agreement, the meaning set forth therein.
2
"Assignor Lender" shall have the meaning given to that term in
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Subparagraph 8.05(c).
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"Base Rate" shall mean, on any day, the greater of (a) the Prime Rate
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in effect on such date and (b) the Federal Funds Rate for such day plus
one-half percent (0.50%).
"Base Rate Loan" shall mean, at any time, a Revolving Loan which then
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bears interest as provided in clause (i) of Subparagraph 2.01(c).
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"Base Rate Portion" shall mean, at any time, a Portion of the Term
-----------------
Loan Borrowing or a Term Loan, as the case may be, which then bears
interest at a rate specified in clause (i) of Subparagraph 2.02(c).
"Borrower" shall have the meaning given to that term in clause (1) of
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the introductory paragraph hereof.
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"Borrowing" shall mean a Revolving Loan Borrowing or the Term Loan
---------
Borrowing.
"Business Day" shall mean any day on which (a) commercial banks are
------------
not authorized or required to close in San Francisco, California or New
York, New York and (b) if such Business Day is related to a LIBOR Loan or a
LIBOR Portion, dealings in Dollar deposits are carried out in the London
interbank market.
"Capital Adequacy Requirement" shall have the meaning given to that
----------------------------
term in Subparagraph 2.10(d).
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"Capital Leases" shall mean any and all lease obligations that, in
--------------
accordance with GAAP, are required to be capitalized on the books of a
lessee.
"Cash Equivalents" shall mean:
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(a) Direct obligations of, or obligations the principal and
interest on which are unconditionally guaranteed by, the United States
of America or obligations of any agency of the United States of
America to the extent such obligations are backed by the full faith
and credit of the United States of America, in each case maturing
within one year from the date of acquisition thereof;
(b) Certificates of deposit maturing within one year from the
date of acquisition thereof issued by a commercial bank or trust
company organized under the laws of the United States of America or a
state thereof or that is a Lender, provided that (A) such deposits are
denominated in Dollars, (B) such bank or trust company has capital,
surplus and undivided profits of not less than $100,000,000
3
and (C) such bank or trust company has certificates of deposit or
other debt obligations rated at least A-1 (or its equivalent) by
Standard and Poor's Ratings Group or P-1 (or its equivalent) by
Xxxxx'x Investors Service, Inc.;
(c) Open market commercial paper maturing within 270 days from
the date of acquisition thereof issued by a corporation organized
under the laws of the United States of America or a state thereof,
provided such commercial paper is rated at least A-1 (or its
equivalent) by Standard and Poor's Ratings Group or P-1 (or its
equivalent) by Xxxxx'x Investors Service, Inc.; and
(d) Any repurchase agreement entered into with a commercial bank
or trust company organized under the laws of the United States of
America or a state thereof or that is a Lender, provided that (A) such
bank or trust company has capital, surplus and undivided profits of
not less than $100,000,000, (B) such bank or trust company has
certificates of deposit or other debt obligations rated at least A-1
(or its equivalent) by Standard and Poor's Ratings Group or P-1 (or
its equivalent) by Xxxxx'x Investors Service, Inc., (C) the repurchase
obligations of such bank or trust company under such repurchase
agreement are fully secured by a perfected security interest in a
security or instrument of the type described in clause (a), (b) or (c)
----------------------
above and (D) such security or instrument so securing the repurchase
obligations has a fair market value at the time such repurchase
agreement is entered into of not less than 100% of such repurchase
obligations.
"Change of Control" shall mean, with respect to Borrower, the
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acquisition by any person or group of persons (within the meaning of
Section 13 or 14 of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), but exclusive of the holdings of any person who is a
director of Borrower on the date of this Agreement and exclusive of the
holdings of any person or group of persons which has reported or may report
on Schedule 13G under the Exchange Act and has not ceased to be eligible to
report on Schedule 13G pursuant to Rule 13d-1 of the Exchange Act) of (i)
beneficial ownership (within the meaning of Rule 13d-3 promulgated by the
Securities and Exchange Commission under the Exchange Act) of twenty-five
percent (25%) or more of the outstanding Equity Securities of Borrower
entitled to vote for members of the board of directors, or (ii) all or
substantially all of the assets of Borrower and its Subsidiaries taken as a
whole.
"Change of Law" shall have the meaning given to that term in
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Subparagraph 2.10(b).
--------------------
"Closing Date" shall mean the date, not later than April 9, 1999,
------------
designated by Borrower in the initial Notice of Revolving Loan Borrowing as
the date for the initial Borrowing hereunder.
"Commitment" shall mean, with respect to any Lender at any time, such
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Lender's Proportionate Share at such time of the Total Commitment at such
time.
4
"Commitment Fee Percentage" shall mean, with respect to the Unused
-------------------------
Commitment at any time, the per annum rate which is determined pursuant to
the Pricing Grid and used to calculate the Commitment Fees.
"Commitment Fees" shall have the meaning given to that term in
---------------
Subparagraph 2.04(c).
--------------------
"Compliance Certificate" shall have the meaning given to that term in
----------------------
Subparagraph 5.01(a).
--------------------
"Contingent Obligation" shall mean, with respect to any Person, (a)
---------------------
any Guaranty Obligation of that Person; and (b) any direct or indirect
obligation or liability, contingent or otherwise, of that Person (i) in
respect of any Surety Instrument issued for the account of that Person or
as to which that Person is otherwise liable for reimbursement of drawings
or payments, (ii) as a partner or joint venturer in any partnership or
joint venture, (iii) to purchase any materials, supplies or other property
from, or to obtain the services of, another Person if the relevant contract
or other related document or obligation requires that payment for such
materials, supplies or other property, or for such services, shall be made
regardless of whether delivery of such materials, supplies or other
property is ever made or tendered, or such services are ever performed or
tendered, or (iv) in respect to any Rate Contract that is not entered into
in connection with a bona fide hedging operation that provides offsetting
benefits to such Person. The amount of any Contingent Obligation shall
(subject, in the case of Guaranty Obligations, to the last sentence of the
definition of "Guaranty Obligation") be deemed equal to the maximum
reasonably anticipated liability in respect thereof, and shall, with
respect to item (b)(iv) of this definition be marked to market on a current
------------
basis.
"Contractual Obligation" of any Person shall mean, any indenture,
----------------------
note, lease, loan agreement, security, deed of trust, mortgage, security
agreement, guaranty, instrument, contract, agreement or other form of
contractual obligation or undertaking to which such Person is a party or by
which such Person or any of its property is bound.
"Credit Documents" shall mean and include this Agreement, the Notes
----------------
and the Agent's Fee Letter; all other documents, instruments and agreements
delivered to Agent or any Lender pursuant to Paragraph 3.01; and all other
--------------
documents, instruments and agreements delivered by Borrower or any of its
Subsidiaries to Agent or any Lender in connection with this Agreement on or
after the date of this Agreement.
"Credit Event" shall mean the making of any Loan; the conversion of
------------
any Loan or Portion into a LIBOR Loan or LIBOR Portion; or the selection of
a new Interest Period for any LIBOR Loan or LIBOR Portion.
"Current Ratio" shall mean, with respect to Borrower at any time, the
-------------
ratio, determined on a consolidated basis in accordance with GAAP, of:
5
(a) The current assets of Borrower and its Subsidiaries at such
time;
to
--
(b) The sum (without duplication) of (i) the current liabilities
of Borrower and its Subsidiaries at such time plus (ii) the
outstanding principal amount of the Loans at such time.
"Default" shall mean an Event of Default or any event or circumstance
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not yet constituting an Event of Default which, with the giving of any
notice or the lapse of any period of time or both, would become an Event of
Default.
"Defaulting Lender" shall mean (a) a Lender which has failed to fund
-----------------
its portion of any Borrowing which it is required to fund under this
Agreement and has continued in such failure for three (3) Business Days
after written notice from Agent or (b) a Lender for which a receiver or
conservator has been appointed.
"Disclosure Letter" shall mean the letter designated as such dated
-----------------
April 9, 1999 from Borrower to Agent.
"Dollars" and "$" shall mean the lawful currency of the United States
------- -
of America and, in relation to any payment under this Agreement, same day
or immediately available funds.
"Xxxxx Acquisition" shall mean the proposed acquisition by Borrower of
-----------------
Xxxxx, Inc., a Pennsylvania corporation, in accordance with that certain
Plan of Merger and Reorganization, dated as of September 15, 1999, pursuant
to which the parties thereto will effect a tax-free reorganization within
the meaning of Section 368(a) of the IRC.
"Xxxxx Acquisition Charge" shall mean the non-recurring charge, not to
------------------------
exceed $20,000,000 (pre-tax) in the aggregate, taken by Borrower through
Borrower's fiscal year 2002 as a result of write-offs of in process
research and development expenses and other non-cash charges incurred in
connection with the consummation of the Xxxxx Acquisition.
"EBIRT" shall mean, with respect to Borrower for any period, the sum,
-----
determined on a consolidated basis in accordance with GAAP, of the
following:
(a) The net income or net loss of Borrower and its Subsidiaries
for such period before provision for income taxes;
plus
----
6
(b) The sum (to the extent deducted in calculating net income or
loss in clause (a) above and without duplication) of (i) all Interest
----------
Expenses of Borrower and its Subsidiaries accruing during such period
and (ii) all operating lease and "synthetic" lease payments of
Borrower and its Subsidiaries accruing during such period;
plus
----
(c) To the extent deducted in calculating such net income or net
loss for such period under clause (a) above, an amount equal to the
----------
pre-tax sum of any Xxxxx Acquisition Charge taken by Borrower during
such period.
"EBITDA" shall mean, with respect to Borrower for any period, the sum,
------
determined on a consolidated basis in accordance with GAAP, of the
following:
(a) The net income or net loss of Borrower and its Subsidiaries
for such period before provision for income taxes;
plus
----
(b) The sum (to the extent deducted in calculating net income or
loss in clause (a) above) of (i) all Interest Expenses of Borrower and
----------
its Subsidiaries accruing during such period and (ii) all depreciation
and amortization expenses of Borrower and its Subsidiaries accruing
during such period.
plus
----
(c) To the extent deducted in calculating such net income or net
loss for such period under clause (a) above, an amount equal to the
----------
pre-tax sum of any Xxxxx Acquisition Charge taken by Borrower during
such period.
"Eligible Assignee" shall mean (a) a commercial bank organized under
-----------------
the laws of the United States, or any state thereof, and having a combined
capital and surplus of at least $100,000,000; (b) a commercial bank
organized under the laws of any other country which is a member of the
Organization for Economic Cooperation and Development (the "OECD"), or a
political subdivision of any such country, and having a combined capital
and surplus of at least $100,000,000, provided that such bank is acting
through a branch or agency located in the United States; or (c) a Person
that is primarily engaged in the business of commercial banking and that is
(i) a Subsidiary of a Lender, (ii) a Subsidiary of a Person of which a
Lender is a Subsidiary, or (iii) a Person of which a Lender is a
Subsidiary.
"Employee Benefit Plan" shall mean any employee benefit plan within
---------------------
the meaning of section 3(3) of ERISA maintained or contributed to by
Borrower or any ERISA Affiliate, other than a Multiemployer Plan.
7
"Environmental Laws" shall mean the Clean Air Act, 42 U.S.C. Section
------------------
7401 et seq.; the Federal Water Pollution Control Act, 33 U.S.C. Section
------
1251 et seq.; the Resource Conservation and Recovery Act of 1976, 42 U.S.C.
------
Section 6901 et seq.; the Comprehensive Environment Response, Compensation
------
and Liability Act of 1980 (including the Superfund Amendments and
Reauthorization Act of 1986, "CERCLA"), 42 U.S.C. Section 9601 et seq.; the
------
Toxic Substances Control Act, 15 U.S.C. Section 2601 et seq.; the
------
Occupational Safety and Health Act, 29 U.S.C. Section 651; the Emergency
Planning and Community Right-to-Know Act of 1986, 42 U.S.C. Section 11001
et seq.; the Mine Safety and Health Act of 1977, 30 U.S.C. Section 801 et
------ --
seq.; the Safe Drinking Water Act, 42 U.S.C. Section 300f et seq.; and all
--- ------
other Governmental Rules relating to the protection of human health and the
environment, including all Governmental Rules pertaining to reporting,
licensing, permitting, transportation, storage, disposal, investigation,
and remediation of emissions, discharges, releases, or threatened releases
of Hazardous Materials into the air, surface water, groundwater, or land,
or relating to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport, or handling of Hazardous Materials.
"Equity Securities" of any Person shall mean (a) all common stock,
-----------------
preferred stock, participations, shares, partnership interests or other
equity interests in and of such Person (regardless of how designated and
whether or not voting or non-voting) and (b) all warrants, options and
other rights to acquire any of the foregoing.
"ERISA" shall mean the Employee Retirement Income Security Act of
-----
1974, as the same may from time to time be amended or supplemented,
including any rules or regulations issued in connection therewith.
"ERISA Affiliate" shall mean any Person which is treated as a single
---------------
employer with Borrower under Section 414 of the IRC.
"Event of Default" shall have the meaning given to that term in
----------------
Paragraph 6.01.
--------------
"Federal Funds Rate" shall mean, for any day, the rate per annum set
------------------
forth in the weekly statistical release designated as H.15(519), or any
successor publication, published by the Federal Reserve Board (including
any such successor publication, "H.15 (519)") for such day opposite the
caption "Federal Funds (Effective)". If on any relevant day, such rate is
not yet published in H.15 (519), the rate for such day shall be the rate
set forth in the daily statistical release designated as the Composite 3:30
p.m. Quotations for U.S. Government Securities, or any successor
publication, published by the Federal Reserve Bank of New York (including
any such successor publication, the "Composite 3:30 p.m. Quotations") for
such day under the caption "Federal Funds Effective Rate". If on any
relevant day, such rate is not yet published in either H.15 (519) or the
Composite 3:30 p.m. Quotations, the rate for such day shall be the
arithmetic means, as determined by Agent, of the rates quoted to Agent for
such day by three (3) Federal funds brokers of recognized standing selected
by Agent.
8
"Federal Reserve Board" shall mean the Board of Governors of the
---------------------
Federal Reserve System.
"Financial Statements" shall mean, with respect to any accounting
--------------------
period for any Person, statements of income and cash flows of such Person
for such period, and a balance sheet of such Person as of the end of such
period, setting forth in each case in comparative form figures for the
corresponding period in the preceding fiscal year if such period is less
than a full fiscal year or, if such period is a full fiscal year,
corresponding figures from the preceding annual audit, all prepared in
reasonable detail and in accordance with GAAP.
"Fixed Charge Coverage Ratio" shall mean, with respect to Borrower for
---------------------------
any date of determination, the ratio, determined on a consolidated basis in
accordance with GAAP, of (a) EBIRT of Borrower and its Subsidiaries for
such period to (b) the Fixed Charges of Borrower and its Subsidiaries for
such period.
"Fixed Charges" shall mean with respect to Borrower, the sum (without
-------------
duplication), determined on a consolidated basis in accordance with GAAP,
of (a) all interest payments on all Funded Indebtedness paid or scheduled
to be paid by Borrower and its Subsidiaries during the four fiscal-quarter
period next preceding the date of determination, plus (b) all principal on
----
Funded Indebtedness scheduled to be repaid during the next succeeding four
fiscal-quarter period by Borrower and its Subsidiaries, plus (c) all
----
payments on operating leases and "synthetic" leases paid or scheduled to be
paid by such Person and its Subsidiaries during the four fiscal-quarter
period next preceding the date of determination.
"Funded Indebtedness" of any Person shall mean, without duplication:
-------------------
(a) All obligations of such Person evidenced by notes, bonds,
debentures or other similar instruments and all other obligations of
such Person for borrowed money (including obligations to repurchase
receivables and other assets sold with recourse);
(b) All obligations of such Person for the deferred purchase
price of property or services (including obligations under letters of
credit and other credit facilities which secure or finance such
purchase price and obligations under "synthetic" leases), other than
trade payables incurred by such Person in the ordinary course of its
business on ordinary terms and not overdue;
(c) All obligations of such Person under conditional sale or
other title retention agreements with respect to property acquired by
such Person (to the extent of the value of such property if the rights
and remedies of the seller or lender under such agreement in the event
of default are limited solely to repossession or sale of such
property); and
9
(d) All obligations of such Person as lessee under or with
respect to Capital Leases.
"Funded Indebtedness/EBITDA Ratio" shall mean, with respect to
--------------------------------
Borrower for any date of determination, the ratio, determined on a
consolidated basis in accordance with GAAP, of (a) the Funded Indebtedness
of Borrower and its Subsidiaries as of such date to (b) the EBITDA of
Borrower and its Subsidiaries for the four fiscal-quarter period next
preceding such date.
"GAAP" shall mean generally accepted accounting principles and
----
practices as in effect in the United States of America from time to time,
consistently applied.
"Governmental Authority" shall mean any domestic or foreign national,
----------------------
state or local government, any political subdivision thereof, any
department, agency, authority or bureau of any of the foregoing, or any
other entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government, including, without
limitation, the Federal Deposit Insurance Corporation, the Federal Reserve
Board, the Comptroller of the Currency, any central bank or any comparable
authority.
"Governmental Charges" shall mean, with respect to any Person, all
--------------------
levies, assessments, fees, claims or other charges imposed by any
Governmental Authority upon such Person or any of its property or otherwise
payable by such Person.
"Governmental Rule" shall mean any law, rule, regulation, ordinance,
-----------------
order, code interpretation, judgment, decree, directive, guidelines, policy
or similar form of decision of any Governmental Authority.
"Guaranty Obligation" shall mean, with respect to any Person, any
-------------------
direct or indirect liability of that Person with respect to any
indebtedness, lease, dividend, letter of credit or other obligation (the
"primary obligations") of another Person (the "primary obligor"), including
any obligation of that Person, whether or not contingent, (a) to purchase,
repurchase or otherwise acquire such primary obligations or any property
constituting direct or indirect security therefor, or (b) to advance or
provide funds (i) for the payment or discharge of any such primary
obligation, or (ii) to maintain working capital or equity capital of the
primary obligor or otherwise to maintain the net worth or solvency or any
balance sheet item, level of income or financial condition of the primary
obligor, or (c) to purchase property, securities or services primarily for
the purpose of assuring the owner of any such primary obligation of the
ability of the primary obligor to make payment of such primary obligation,
or (d) otherwise to assure or hold harmless the holder of any such primary
obligation against loss in respect thereof. The amount of any Guaranty
Obligation shall be deemed equal to the stated or determinable amount of
the primary obligation in respect of which such Guaranty Obligation is made
or, if not stated or if indeterminable, the maximum reasonably anticipated
liability in respect thereof.
10
"Hazardous Materials" shall mean all materials, substances and wastes
-------------------
which are classified or regulated as "hazardous," "toxic" or similar
descriptions under any Environmental Law or which are hazardous, toxic,
harmful or dangerous to human health.
"Indebtedness" of any Person shall mean, without duplication:
------------
(a) All obligations of such Person evidenced by notes, bonds,
debentures or other similar instruments and all other obligations of
such Person for borrowed money (including obligations to repurchase
receivables and other assets sold with recourse);
(b) All obligations of such Person for the deferred purchase
price of property or services (including obligations under letters of
credit and other credit facilities which secure or finance such
purchase price and obligations under "synthetic" leases);
(c) All obligations of such Person under conditional sale or
other title retention agreements with respect to property acquired by
such Person (to the extent of the value of such property if the rights
and remedies of the seller or lender under such agreement in the event
of default are limited solely to repossession or sale of such
property);
(d) All obligations of such Person as lessee under or with
respect to Capital Leases;
(e) All non-contingent payment or reimbursement obligations of
such Person under or with respect to Surety Instruments;
(f) All net obligations of such Person, contingent or otherwise,
under or with respect to Rate Contracts;
(g) All Guaranty Obligations of such Person with respect to the
obligations of other Persons of the types described in clauses (a) -
-------------
(f) above and all other Contingent Obligations of such Person; and
---
(h) All obligations of other Persons of the types described in
clauses (a) - (f) above to the extent secured by (or for which any
-----------------
holder of such obligations has an existing right, contingent or
otherwise, to be secured by) any Lien in any property (including
accounts and contract rights) of such Person, even though such Person
has not assumed or become liable for the payment of such obligations.
"Indemnitee" shall have the meaning given to that term in Paragraph
---------- ---------
8.03.
----
11
"Interest Account" shall have the meaning given to that term in
----------------
Subparagraph 2.07(b).
"Interest Expenses" shall mean, with respect to any Person for any
-----------------
period, the sum, determined on a consolidated basis in accordance with
GAAP, of (a) all interest accruing on the Indebtedness of such Person
during such period (including, without limitation, interest attributable to
Capital Leases) plus (b) all letter of credit fees payable by such Person
----
accruing during such period.
"Interest Period" shall mean, with respect to any LIBOR Loan or LIBOR
---------------
Portion, the time period selected by Borrower pursuant to Subparagraph
2.01(b), Subparagraph 2.01(d), Subparagraph 2.02(b) or Subparagraph 2.02(d)
which commences on the first day of such Loan or Portion or the effective
date of any conversion and ends on the last day of such time period, and
thereafter, each subsequent time period selected by Borrower pursuant to
Subparagraph 2.01(e) or Subparagraph 2.02(e) which commences on the last
day of the immediately preceding time period and ends on the last day of
that time period.
"Investment" of any Person shall mean any loan or advance of funds by
----------
such Person to any other Person (other than advances to employees of such
Person for moving and travel expenses, drawing accounts and similar
expenditures in the ordinary course of business), any purchase or other
acquisition of any Equity Securities or Indebtedness of any other Person,
any capital contribution by such Person to or any other investment by such
Person in any other Person (including any Guaranty Obligations of such
Person and any indebtedness of such Person of the type described in clause
------
(h) of the definition of "Indebtedness" on behalf of any other Person);
---
provided, however, that Investments shall not include (a) accounts
-------- -------
receivable or other indebtedness owed by customers of such Person which are
current assets and arose from sales of inventory and the rendering of
services in the ordinary course of such Person's business or (b) prepaid
expenses of such Person incurred and prepaid in the ordinary course of
business.
"IRC" shall mean the Internal Revenue Code of 1986, as amended from
---
time to time.
"Lenders" shall have the meaning given to that term in clause (2) of
-------
the introductory paragraph hereof.
"LIBO Rate" shall mean, with respect to any Interest Period for the
---------
LIBOR Loans in any Revolving Loan Borrowing consisting of LIBOR Loans or
any LIBOR Portion of the Term Loan Borrowing, a rate per annum equal to the
quotient of (a) the arithmetic mean (rounded upward if necessary to the
nearest 1/16 of one percent) of the rates per annum appearing on Telerate
Page 3750 (or any successor publication) on the second Business Day prior
to the first day of such Interest Period at or about 11:00 a.m. (London
time) (for delivery on the first day of such Interest Period) for a term
comparable to such Interest Period, divided by (b) one minus the Reserve
----------
Requirement for such Loans
12
or Portions in effect from time to time. If for any reason rates are not
available as provided in clause (a) of the preceding sentence, the rate to
----------
be used in clause (a) shall be, at the Agent's discretion, (i) the rate per
----------
annum at which Dollar deposits are offered to Agent in the London interbank
eurodollar currency market or (ii) the rate at which Dollar deposits are
offered to Agent in, or by Agent to major banks in, any offshore interbank
eurodollar market selected by Agent, in each case on the second Business
Day prior to the commencement of such Interest Period at or about 10:00
a.m. (New York time) (for delivery on the first day of such Interest
Period) for a term comparable to such Interest Period and in an amount
approximately equal to the amount of the Loan or Portion to be made or
funded by Agent as part of such Borrowing. The LIBO Rate shall be adjusted
automatically as to all LIBOR Loans and LIBOR Portions then outstanding as
of the effective date of any change in the Reserve Requirement.
"LIBOR Loan" shall mean, at any time, a Revolving Loan which then
----------
bears interest as provided in clause (ii) of Subparagraph 2.01(c).
"LIBOR Portion" shall mean, at any time, a Portion of the Term Loan
Borrowing or a Term Loan, as the case may be, which then bears interest at
a rate specified in clause (ii) of Subparagraph 2.02(c).
"Lien" shall mean, with respect to any property, any security
----
interest, mortgage, pledge, lien, charge or other encumbrance in, of, or on
such property or the income therefrom, including, without limitation, the
interest of a vendor or lessor under a conditional sale agreement, Capital
Lease or other title retention agreement, or any agreement to provide any
of the foregoing, and the filing of any financing statement or similar
instrument under the Uniform Commercial Code or comparable law of any
jurisdiction (other than the filing of a cautionary lessor financing
statement against a lessee covering the property subject to a true lease).
"Loan" shall mean a Revolving Loan or a Term Loan.
----
"Margin Period" shall mean (a) the period commencing on the date of
-------------
this Agreement and ending on May 31, 1999, (b) the three-calendar month
period commencing June 1, 1999 and ending August 31, 1999 and (c) each
consecutive three-calendar month period thereafter which commences on the
day following the last day of the immediately preceding three-calendar
month period and ends on the last day of that time period.
"Margin Stock" shall have the meaning given to that term in Regulation
------------
U issued by the Federal Reserve Board, as amended from time to time, and
any successor regulation thereto.
"Material Adverse Effect" shall mean a material adverse effect on (a)
-----------------------
the business, assets, operations or financial or other condition of
Borrower and its
13
Subsidiaries, taken as a whole; (b) the ability of Borrower to pay or
perform the Obligations in accordance with the terms of this Agreement and
the other Credit Documents; or (c) the rights and remedies of Agent or any
Lender under this Agreement, the other Credit Documents or any related
document, instrument or agreement.
"maturity" shall mean, with respect to any Loan, interest, fee or
--------
other amount payable by Borrower under this Agreement or the other Credit
Documents, the date such Loan, interest, fee or other amount becomes due,
whether upon the stated maturity or due date, upon acceleration or
otherwise.
"Multiemployer Plan" shall mean any multiemployer plan within the
------------------
meaning of section 3(37) of ERISA maintained or contributed to by Borrower
or any ERISA Affiliate.
"Net Proceeds" shall mean, with respect to any sale or issuance of any
------------
Equity Security by any Person, the aggregate consideration received by such
Person from such sale or issuance less the sum of the actual amount of the
----
reasonable fees and commissions payable to Persons other than such Person
or any Affiliate of such Person, the reasonable
legal expenses and the other reasonable costs and expenses directly related
to such sale or issuance that are to be paid by such Person.
"Note" shall mean a Revolving Loan Note or a Term Loan Note.
----
"Note Purchase Agreement" shall mean that certain Note Purchase
-----------------------
Agreement, dated as of April 9, 1999, between Borrower and each of the
Purchasers (as set forth and defined therein), as amended, restated or
otherwise modified from time to time.
"Notice of Borrowing" shall mean a Notice of Revolving Loan Borrowing
or the Notice of Term Loan Borrowing.
"Notice of Conversion" shall mean a Notice of Revolving Loan
Conversion or Notice of Term Loan Conversion.
"Notice of Interest Period Selection" shall mean a Notice of Revolving
Loan Interest Period Selection or Notice of Term Loan Interest Period
Selection.
"Notice of Revolving Loan Borrowing" shall have the meaning given to
that term in Subparagraph 2.01(b).
"Notice of Revolving Loan Conversion" shall have the meaning given to
that term in Subparagraph 2.01(d).
14
"Notice of Revolving Loan Interest Period Selection" shall have the
meaning given to that term in Subparagraph 2.01(e).
"Notice of Term Loan Borrowing" shall have the meaning given to that
term in Subparagraph 2.02(b).
"Notice of Term Loan Conversion" shall have the meaning given to that
term in Subparagraph 2.02(d).
"Notice of Term Loan Interest Period Selection" shall have the meaning
given to that term in Subparagraph 2.02(e).
"Obligations" shall mean and include, with respect to Borrower, all
-----------
loans, advances, debts, liabilities, and obligations, howsoever arising,
owed by Borrower to Agent or any Lender of every kind and description
(whether or not evidenced by any note or instrument and whether or not for
the payment of money), direct or indirect, absolute or contingent, due or
to become due, now existing or hereafter arising pursuant to the terms of
this Agreement or any of the other Credit Documents, including all
interest, fees, charges, expenses, attorneys' fees and accountants' fees
chargeable to Borrower or payable by Borrower hereunder or thereunder.
"Participant" shall have the meaning given to that term in
-----------
Subparagraph 8.05(b).
--------------------
"Participation Fees" shall have the meaning given to that term in
------------------
Subparagraph 2.04(b)
---------------------
"PBGC" shall mean the Pension Benefit Guaranty Corporation, or any
----
successor thereto.
"Permitted Indebtedness" shall have the meaning given to that term in
----------------------
Subparagraph 5.02(a).
--------------------
"Permitted Liens" shall have the meaning given to that term in
---------------
Subparagraph 5.02(b).
--------------------
"Person" shall mean and include an individual, a partnership, a
------
corporation (including a business trust), a joint stock company, an
unincorporated association, a limited liability company, a joint venture, a
trust or other entity or a Governmental Authority.
"Portion" shall mean a portion of the principal amount of the Term
Loan Borrowing or a Term Loan. The Term Loan Borrowing shall consist of
one or more Portions, and each Term Loan comprising the Term Loan Borrowing
shall consist of the same number of Portions, with each such Term Loan
Portion corresponding pro rata to a Term Loan Borrowing Portion. Any
reference to a Portion of the Term
15
Loan Borrowing shall include the corresponding Portion of each Term Loan
comprising the Term Loan Borrowing.
"Pricing Grid" shall mean Schedule 1.01.
------------ -------------
"Prime Rate" shall mean the per annum rate publicly announced by Agent
----------
from time to time at its Chicago office as its prime rate. The Prime Rate
is determined by Agent from time to time as a means of pricing credit
extensions to some customers and is neither directly tied to any external
rate of interest or index nor necessarily the lowest rate of interest
charged by Agent at any given time for any particular class of customers or
credit extensions. Any change in the Base Rate resulting from a change in
the Prime Rate shall become effective on the Business Day on which each
change in the Prime Rate occurs.
"Prior Credit Agreement" shall have the meaning given to that term in
----------------------
Subparagraph 2.01(g).
---------------------
"Private Placement Notes" shall mean collectively (a) those certain
-----------------------
promissory notes issued by Borrower on April 9, 1999 pursuant to the Note
Purchase Agreement in an aggregate amount of $75,000,000 which have a final
maturity date (subject to amortization) of April 9, 2006 and a blended per
annum interest rate of 6.58%, and (b) those certain promissory notes
issued by Borrower on December 13, 1999 pursuant to the Note Purchase
Agreement in an aggregate amount of $12,500,000 which have a final
maturity date (subject to amortization) of December 12, 2006 and a blended
per annum interest rate of 7.70%.
"Proportionate Share" shall mean, with respect to each Lender, the
-------------------
percentage set forth under the caption "Proportionate Share" opposite such
Lender's name on Schedule I, or, if changed, such percentage as may be set
----------
forth for such Lender in the Register.
"Rate Contracts" shall mean swap agreements (as that term is defined
--------------
in Section 101 of the Federal Bankruptcy Reform Act of 1978, as amended)
and any other agreements or arrangements designed to provide protection
against fluctuations in interest or currency exchange rates.
"Register" shall have the meaning given to that term in Subparagraph
-------- ------------
8.05(d).
-------
"Reportable Event" shall have the meaning given to that term in ERISA
----------------
and applicable regulations thereunder.
16
"Required Lenders" shall mean (a) at any time Loans are outstanding,
----------------
Lenders holding more than sixty percent (60%) of the aggregate principal
amount of such Loans and (b) at any time no Loans are outstanding, Lenders
whose Proportionate Shares exceed sixty percent (60%).
"Requirement of Law" applicable to any Person shall mean (a) the
------------------
Articles or Certificate of Incorporation and By-laws, Partnership Agreement
or other organizational or governing documents of such Person, (b) any
Governmental Rule applicable to such Person, (c) any license, permit,
approval or other authorization granted by any Governmental Authority to or
for the benefit of such Person or (d) any judgment, decision or
determination of any Governmental Authority or arbitrator, in each case
applicable to or binding upon such Person or any of its property or to
which such Person or any of its property is subject.
"Reserve Requirement" shall mean, with respect to any day in an
-------------------
Interest Period for a LIBOR Loan or LIBOR Portion, the aggregate of the
reserve requirement rates (expressed as a decimal) in effect on such day
for eurocurrency funding (currently referred to as "Eurocurrency
liabilities" in Regulation D of the Federal Reserve Board) maintained by a
member bank of the Federal Reserve System. As used herein, the term
"reserve requirement" shall include, without limitation, any basic,
supplemental or emergency reserve requirements imposed on Lender by any
Governmental Authority.
"Revolving Loan" shall have the meaning given to that term in
Subparagraph 2.01(a).
"Revolving Loan Borrowing" shall mean a borrowing by Borrower
consisting of the Revolving Loans made by each of Lenders on the same date
and of the same Type pursuant to a single Notice of Revolving Loan
Borrowing.
"Revolving Loan Maturity Date" shall mean March 16, 2001 or, if such
date is extended from time to time pursuant to Subparagraph 2.01(h), any
later date to which so extended.
"Revolving Loan Note" shall have the meaning given to that term in
Subparagraph 2.07(a).
"Solvent" shall mean, with respect to any Person on any date, that on
-------
such date (a) the fair value of the property of such Person is greater than
the fair value of the liabilities (including, without limitation,
contingent liabilities) of such Person, (b) the present fair saleable value
of the assets of such Person is not less than the amount that will be
required to pay the probable liability of such Person on its debts as they
become absolute and matured, (c) such Person does not intend to, and does
not believe that it will, incur debts or liabilities beyond such Person's
ability to pay as such debts and liabilities mature and (d) such Person is
not engaged in business or a transaction, and is not about to engage
17
in business or a transaction, for which such Person's property would
constitute an unreasonably small capital.
"Subsidiary" of any Person shall mean (a) any corporation of which
----------
more than 50% of the issued and outstanding Equity Securities having
ordinary voting power to elect a majority of the Board of Directors of such
corporation (irrespective of whether at the time capital stock of any other
class or classes of such corporation shall or might have voting power upon
the occurrence of any contingency) is at the time directly or indirectly
owned or controlled by such Person, by such Person and one or more of its
other Subsidiaries or by one or more of such Person's other Subsidiaries,
(b) any partnership, joint venture, or other association of which more than
50% of the equity interest having the power to vote, direct or control the
management of such partnership, joint venture or other association is at
the time owned and controlled by such Person, by such Person and one or
more of the other Subsidiaries or by one or more of such Person's other
Subsidiaries or (c) any other Person included in the Financial Statements
of such Person on a consolidated basis.
"Surety Instruments" shall mean all letters of credit (including
------------------
standby and commercial), banker's acceptances, bank guaranties, shipside
bonds, surety bonds and similar instruments.
"Tangible Net Worth" shall mean, with respect to any Person at any
------------------
time, the remainder at such time, determined on a consolidated basis in
accordance with GAAP, of (a) the total assets of such Person and its
Subsidiaries, minus (b) the sum (without limitation and without duplication
of deductions) of (i) the total liabilities of such Person and its
Subsidiaries, (ii) all reserves established by such Person and its
Subsidiaries for anticipated losses and expenses (to the extent not
deducted in calculating total assets in clause (a) above) and (iii) all
----------
intangible assets of such Person and its Subsidiaries (to the extent
included in calculating total assets in clause (a) above), including,
----------
without limitation, goodwill (including any amounts, however designated on
the balance sheet, representing the cost of acquisition of businesses and
investments in excess of underlying tangible assets), trademarks, trademark
rights, trade name rights, copyrights, patents, patent rights, licenses,
unamortized debt discount, marketing expenses, organizational expenses,
non-compete agreements and deferred research and development.
"Taxes" shall have the meaning given to such term in Subparagraph
----- -------------
2.11(a).
--------
"Term Loan" shall have the meaning given to that term in Subparagraph
2.02(a).
"Term Loan Borrowing" shall mean the borrowing by Borrower consisting
of the Term Loans made by each of Lenders.
18
"Term Loan Installment Date" shall have the meaning given to that term
in Subparagraph 2.02(f).
"Term Loan Maturity Date" shall mean the first anniversary after the
Revolving Loan Maturity Date.
"Term Loan Note" shall have the meaning given to that term in
Subparagraph 2.07(b).
"Total Commitment" shall mean, at any time, Forty Million Dollars
----------------
($40,000,000) or, if such amount is reduced pursuant to Subparagraph
-------------
2.03(a), the amount to which so reduced and in effect at such time.
-------
"Type" shall mean, with respect to any Loan, Borrowing or Portion at
----
any time, the classification of such Loan, Borrowing or Portion by the type
of interest rate it then bears, whether an interest rate based upon the
Base Rate or the LIBO Rate.
"Unused Commitment" shall mean, at any time, the remainder of (a) the
-----------------
Total Commitment at such time minus (b) the aggregate principal amount of
all Loans outstanding at such time.
1.02. GAAP. Unless otherwise indicated in this Agreement or any other
----
Credit Document, all accounting terms used in this Agreement or any other Credit
Document shall be construed, and all accounting and financial computations
hereunder or thereunder shall be computed, in accordance with GAAP. If GAAP
changes during the term of this Agreement such that any covenants contained
herein would then be calculated in a different manner or with different
components, Borrower, the Lenders and Agent agree to negotiate in good faith to
amend this Agreement in such respects as are necessary to conform those
covenants as criteria for evaluating Borrower's financial condition to
substantially the same criteria as were effective prior to such change in GAAP;
provided, however, that, until Borrower, the Lenders and Agent so amend this
-------- -------
Agreement, all such covenants shall be calculated in accordance with GAAP as in
effect immediately prior to such change.
1.03. Headings. Headings in this Agreement and each of the other
--------
Credit Documents are for convenience of reference only and are not part of the
substance hereof or thereof.
1.04. Plural Terms. All terms defined in this Agreement or any other
------------
Credit Document in the singular form shall have comparable meanings when used in
the plural form and vice versa.
1.05. Time. All references in this Agreement and each of the other
----
Credit Documents to a time of day shall mean New York, New York time, unless
otherwise indicated.
19
1.06. Governing Law. This Agreement and each of the other Credit
-------------
Documents (unless otherwise provided in such other Credit Documents) shall be
governed by and construed in accordance with the laws of the State of California
without reference to conflicts of law rules.
1.07. Construction. This Agreement is the result of negotiations
------------
among, and has been reviewed by, Borrower, each Lender, Agent and their
respective counsel. Accordingly, this Agreement shall be deemed to be the
product of all parties hereto, and no ambiguity shall be construed in favor of
or against Borrower, any Lender or Agent.
1.08. Entire Agreement. This Agreement and each of the other Credit
----------------
Documents, taken together, constitute and contain the entire agreement of
Borrower, the Lenders and Agent and supersede any and all prior agreements,
negotiations, correspondence, understandings and communications among the
parties, whether written or oral, respecting the subject matter hereof
(including the commitment letter dated as of March 16, 1999 between Borrower and
ABN AMRO Bank N.V.).
1.09. Calculation of Interest and Fees. All calculations of interest
--------------------------------
and fees under this Agreement and the other Credit Documents for any period (a)
shall include the first day of such period and exclude the last day of such
period and (b) shall be calculated on the basis of a year of 360 days for actual
days elapsed, except that during any period any Loan or Portion bears interest
based upon the Prime Rate, such interest shall be calculated on the basis of a
year of 365 or 366 days, as appropriate, for actual days elapsed.
1.10. Other Interpretive Provisions. References in this Agreement to
-----------------------------
"Recitals," "Sections," "Paragraphs," "Subparagraphs," "Exhibits" and
"Schedules" are to recitals, sections, paragraphs, subparagraphs, exhibits and
schedules herein and hereto unless otherwise indicated. References in this
Agreement and each of the other Credit Documents to any document, instrument or
agreement (a) shall include all exhibits, schedules and other attachments
thereto, (b) shall include all documents, instruments or agreements issued or
executed in replacement thereof, and (c) shall mean such document, instrument or
agreement, or replacement or predecessor thereto, as amended, modified and
supplemented from time to time and in effect at any given time. References in
this Agreement and each of the other Credit Documents to any statue or other law
(i) shall include any successor statue or law, (ii) shall include all rules and
regulations promulgated under such statue or law (or any successor statue or
law), and (iii) shall mean such statue or law (or successor statue or law) and
such rules and regulations, as amended, modified, codified or reenacted from
time to time and in effect at any given time. The words "hereof," "herein" and
"hereunder" and words of similar import when used in this Agreement or
any other Credit Document shall refer to this Agreement or such other Credit
Document, as the case may be, as a whole and not to any particular provision of
this Agreement or such other Credit Document, as the case may be. The words
"include" and "including" and words of similar import when used in this
Agreement or any other Credit Document shall not be construed to be limiting or
exclusive. In the event of any inconsistency between the terms of this
Agreement and the terms of any other Credit Document, the terms of this
Agreement shall govern.
20
SECTION II. CREDIT FACILITIES.
2.01. Revolving Loan Facility.
(a) Revolving Loan Availability. Subject to the terms and conditions
of this Agreement, each Lender severally agrees to advance to Borrower from
time to time during the period beginning on the Closing Date and ending on
the Revolving Loan Maturity Date such loans as Borrower may request under
this Section II (individually, a "Revolving Loan"); provided, however, that
---------- -------- -------
(i) the aggregate principal amount of all Revolving Loans made by such
Lender at any time outstanding shall not exceed such Lender's Commitment at
such time and (ii) the aggregate principal amount of all Revolving Loans
made by all Lenders at any time outstanding shall not exceed the Total
Revolving Loan Commitment at such time. All Revolving Loans shall be made
on a pro rata basis by the Lenders in accordance with their respective
Proportionate Shares, with each Revolving Loan Borrowing to be comprised of
a Revolving Loan by each Lender equal to such Lender's Proportionate Share
of such Revolving Loan Borrowing. Except as otherwise provided herein,
Borrower may borrow, repay and reborrow Revolving Loans until the Revolving
Loan Maturity Date.
(b) Notice of Revolving Loan Borrowing. Borrower shall request each
Revolving Loan Borrowing by delivering to Agent an irrevocable written
notice in the form of Exhibit A-1, appropriately completed (a "Notice of
-----------
Revolving Loan Borrowing"), which specifies, among other things:
(i) Amount. The principal amount of the requested Revolving
------
Loan Borrowing, which shall be in the amount of (A) $1,000,000 or an
integral multiple of $100,000 in excess thereof in the case of a
Revolving Loan Borrowing consisting of Base Rate Loans; or (B)
$2,000,000 or an integral multiple of $1,000,000 in excess thereof in
the case of a Revolving Loan Borrowing consisting of LIBOR Loans;
(ii) Type. Whether the requested Revolving Loan Borrowing is to
----
consist of Base Rate Loans or LIBOR Loans;
(iii) Interest Period. If the requested Revolving Loan
---------------
Borrowing is to consist of LIBOR Loans, the initial Interest Period
selected by Borrower for such Loans in accordance with Subparagraph
2.01(e); and
(iv) Date. The date of the requested Revolving Loan Borrowing,
----
which shall be a Business Day.
Borrower shall give each Notice of Revolving Loan Borrowing to Agent at
least three (3) Business Days before the date of the requested Revolving
Loan Borrowing in the case of a Revolving Loan Borrowing consisting of
LIBOR Loans and at least one (1) Business Day before the date of the
requested Revolving Loan Borrowing in the case of a
21
Revolving Loan Borrowing consisting of Base Rate Loans. Each Notice of
Revolving Loan Borrowing shall be delivered by first-class mail or
facsimile to Agent at the office or facsimile number and during the hours
specified in Paragraph 8.01; provided, however, that Borrower shall
-------------- -------- -------
promptly deliver to Agent the original of any Notice of Revolving Loan
Borrowing initially delivered by facsimile. Agent shall promptly notify
each Lender of the contents of each Notice of Revolving Loan Borrowing and
of the amount and Type of (and, if applicable, the Interest Period for)
each Revolving Loan to be made by such Lender as part of the requested
Revolving Loan Borrowing.
(c) Revolving Loan Interest Rates. Borrower shall pay interest on
the unpaid principal amount of each Revolving Loan from the date of such
Revolving Loan until the maturity thereof, at one of the following rates
per annum:
(i) Base Rate Loans. During such periods as such Revolving
---------------
Loan is a Base Rate Loan, at a rate per annum equal to the Base Rate
plus the Applicable Margin therefor, such rate to change from time to
----
time as the Applicable Margin or Base Rate shall change; and
(ii) LIBOR Loans. During such periods as such Revolving Loan is
-----------
a LIBOR Loan, at a rate per annum equal at all times during each
Interest Period for such LIBOR Loan to the LIBO Rate for such Interest
Period plus the Applicable Margin for such Revolving Loan (or in the
----
case of any LIBOR Loan having an Interest Period of less than one (1)
month, the then applicable Rate for one (1) month LIBOR Loans
available on such date plus the Applicable Margin for such Revolving
Loan), such rate to change from time to time during such Interest
Period as the Applicable Margin shall change. (The Applicable Margins
for LIBOR Loans shall be determined as provided in the Pricing Grid
and may change for each Margin Period.)
All Revolving Loans in each Revolving Loan Borrowing shall, at any given
time prior to maturity, bear interest at one, and only one, of the above
rates. The number of Revolving Loan Borrowings consisting of LIBOR Loans
shall not exceed five (5) at any time.
(d) Conversion of Revolving Loans. Borrower may convert any
Revolving Loan Borrowing from one Type of Revolving Loan Borrowing to the
other Type; provided, however, that any conversion of a Revolving Loan
Borrowing consisting of LIBOR Loans into a Revolving Loan Borrowing
consisting of Base Rate Loans shall be made on, and only on, the last day
of an Interest Period for such LIBOR Loans. Borrower shall request such a
conversion by an irrevocable written notice to Agent in the form of Exhibit
B-1, appropriately completed (a "Notice of Revolving Loan Conversion"),
which specifies, among other things:
(i) The Revolving Loan Borrowing which is to be converted;
22
(ii) The Type of Revolving Loan Borrowing into which such
Revolving Loan Borrowing is to be converted;
(iii) If such Revolving Loan Borrowing is to be converted into a
Revolving Loan Borrowing consisting of LIBOR Loans, the initial
Interest Period selected by Borrower for such LIBOR Loans in
accordance with Subparagraph 2.01(e); and
(iv) The date of the requested conversion, which shall be a
Business Day.
Borrower shall give each Notice of Revolving Loan Conversion to Agent at
least three (3) Business Days in the case of a conversion to a LIBOR Loan
or one (1) Business Day in the case of a conversion to a Base Rate Loan
before the date of the requested conversion. Each Notice of Revolving Loan
Conversion shall be delivered by first-class mail or facsimile to Agent at
the office or to the facsimile number and during the hours specified in
Paragraph 8.01; provided, however, that Borrower shall promptly deliver to
Agent the original of any Notice of Revolving Loan Conversion initially
delivered by facsimile. Agent shall promptly notify each Lender of the
contents of each Notice of Revolving Loan Conversion.
(e) LIBOR Loan Interest Periods.
(i) The initial and each subsequent Interest Period selected by
Borrower for a LIBOR Loan shall be one (1), two (2), three (3) or six
(6) months (or with the consent of each Lender from time to time, any
period of days seven (7) or greater but less than one (1) month);
provided, however, 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 next Business Day falls in another
calendar month, in which case such Interest Period shall end on the
immediately preceding Business Day; (ii) any Interest Period (other
than an Interest Period which is less than one (1) month) 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 end on the last Business Day of a
calendar month; and (iii) no Interest Period shall end after the
Revolving Loan Maturity Date.
(ii) Borrower shall notify Agent by an irrevocable written
notice in the form of Exhibit C-1, appropriately completed (a "Notice
-----------
of Revolving Loan Interest Period Selection"), at least three (3)
Business Days prior to the last day of each Interest Period for a
Revolving Loan Borrowing consisting of LIBOR Loans of the Interest
Period selected by Borrower for the next succeeding Interest Period
for such LIBOR Loans. Each Notice of Revolving Loan Interest Period
Selection shall be given by first-class mail or facsimile to the
office or the facsimile number and during the hours specified in
Paragraph 8.01; provided, however, that Borrower shall promptly
-------------- -------- -------
23
deliver to Agent the original of any Notice of Revolving Loan Interest
Period Selection initially delivered by facsimile. If Borrower fails
to notify Agent of the next Interest Period for a Revolving Loan
Borrowing consisting of LIBOR Loans in accordance with this
Subparagraph 2.01(e), such LIBOR Loans shall automatically convert to
Base Rate Loans on the last day of the current Interest Period
therefor.
(f) Scheduled Revolving Loan Payments. Borrower shall repay the
principal amount of the Revolving Loans on the Revolving Loan Maturity
Date; provided, however, that Borrower may repay the Revolving Loans from
the proceeds of the Term Loans made to Borrower on the Revolving Loan
Maturity Date. Borrower shall pay accrued interest on the unpaid
principal amount of each Revolving Loan in arrears (i) in the case of a
Base Rate Loan, on the last day in each calendar quarter, (ii) in the case
of a LIBOR Loan, on the last day of each Interest Period therefor (and, (A)
if any such Interest Period is longer than three (3) months, every three
(3) months, or (B) if any such Interest Period is shorter than one (1)
month, every month); and (iii) in the case of all Revolving Loans, upon
prepayment (to the extent thereof) and at maturity.
(g) Purpose. Borrower shall use the proceeds of the Revolving Loans,
first, to repay on the Closing Date all Indebtedness outstanding under the
Credit Agreement dated as of March 28, 1997 among Borrower, the lending
institutions party thereto and ABN AMRO Bank N.V. as agent for such lending
institutions (as amended from time to time, the "Prior Credit Agreement")
----------------------
and, thereafter, for Borrower's general corporate needs.
(h) Revolving Loan Maturity Date Extensions. On or before sixty (60)
days prior to the Revolving Loan Maturity Date (or the first Business Day
thereafter if such day is not a Business Day), Borrower may request the
Lenders to extend the Revolving Loan Maturity Date then in effect for an
additional 364-day period by delivering a written request to Agent (each
such written request, an "Extension Request"). Agent shall promptly
deliver to each Lender a copy of any such Extension Request received by
Agent. If a Lender, in its sole and absolute discretion, consents to any
Extension Request, such Lender shall so notify Agent in writing not later
than thirty-five (35) days prior to the Revolving Loan Maturity Date. Any
failure by any Lender so to notify Agent shall be deemed a denial thereof.
(Borrower acknowledges and agrees that no Lender has promised, either
expressly or impliedly, or has any obligation or commitment, to consent to
such an Extension Request at any time.) If all Lenders consent to an
Extension Request, Agent shall so notify Borrower and the Lenders and shall
prepare an amendment to reflect the requested extension. If no Lender or
less than all Lenders shall consent to an Extension Request, Agent shall so
notify Borrower and the Lenders, and the Revolving Loan Maturity Date then
in effect shall remain in effect.
24
2.02. Term Loan Facility.
(a) Term Loan Availability. Subject to the terms and conditions of
this Agreement, each Lender severally agrees to advance to Borrower on the
Revolving Loan Maturity Date a term loan in such amount as Borrower may
request under this Paragraph 2.02 (individually, a "Term Loan"); provided,
however, that the aggregate principal amount of the Term Loan made by such
Lender shall not exceed the lesser of (i) such Lender's Commitment at such
time and (ii) the aggregate principal amount of all Revolving Loans payable
to such Lender on such date. The Term Loans shall be made on a pro rata
basis by the Lenders in accordance with their respective Proportionate
Shares, with the Term Loan Borrowing to be comprised of a Term Loan by each
Lender equal to such Lender's Proportionate Share of the Term Loan
Borrowing. Borrower may not reborrow the principal amount of a Term Loan
after repayment or prepayment thereof.
(b) Notice of Term Loan Borrowing. Borrower shall request the Term
Loan Borrowing by delivering to Agent an irrevocable written notice in the
form of Exhibit A-2, appropriately completed (a "Notice of Term Loan
Borrowing"), which specifies, among other things:
(i) Amount. The principal amount of the Term Loan Borrowing,
which shall be in a minimum amount equal to all of the Revolving Loans
outstanding on the Revolving Loan Maturity Date;
(ii) Type. (A) The principal portion of the Term Loan Borrowing
which is to be a Base Rate Portion and (B) the principal portion(s) of
the Term Loan Borrowing which is (are) to be a LIBOR Portion(s); and
(iii) Interest Period. If any Portion of the Term Loan Borrowing
is initially to be a LIBOR Portion, the initial Interest Period
selected by Borrower for each such Portion in accordance with
Subparagraph 2.02(e).
Borrower shall give the Notice of Term Loan Borrowing to Agent not later
than the thirty (30) days prior to the Revolving Loan Maturity Date. The
Notice of Term Loan Borrowing shall be delivered by first-class mail or
facsimile to Agent at the office or facsimile number and during the hours
specified in Paragraph 8.01; provided, however, that Borrower shall
promptly deliver to Agent the original of the Notice of Term Loan Borrowing
if initially delivered by facsimile. Agent shall promptly notify each
Lender of the contents of the Notice of Term Loan Borrowing.
(c) Term Loan Interest Rates. Borrower shall pay interest on the
unpaid principal amount of each Term Loan from the date of such Term Loan
until the maturity thereof, at the following rates per annum:
(i) Base Rate Portions. During such periods as any Portion of
such Term Loan is a Base Rate Portion, at a rate per annum on such
Portion
25
equal to the Base Rate plus the Applicable Margin therefor, such rate
to change from time to time as the Applicable Margin or Base Rate
shall change; and
(ii) LIBOR Portions. During such periods as any Portion of such
Term Loan is a LIBOR Portion, at a rate per annum on such Portion
equal at all times during each Interest Period for such Portion to the
LIBO Rate for such Interest Period plus the Applicable Margin (or in
the case of any LIBOR Portion having an Interest Period of less than
one (1) month, the then applicable Rate for one (1) month LIBOR
Portions available on such date plus the Applicable Margin for such
Portion), such rate to change from time to time during such Interest
Period as the Applicable Margin shall change. (The Applicable Margins
for LIBOR Portions shall be determined as provided in the Pricing Grid
and may change for each Margin Period.)
Each LIBOR Portion of the Term Loan Borrowing shall be in a minimum amount
of $500,000 or an integral multiple of $250,000 in excess thereof. The
number of LIBOR Portions of the Term Loan Borrowing shall not exceed five
(5) at any time.
(d) Conversion of Term Loan Portions. Borrower may convert any
Portion of the Term Loan Borrowing from one Type of Portion to another
Type; provided, however, that any conversion of a LIBOR Portion into
another LIBOR Portion or a Base Rate Portion shall be made on, and only on,
the last day of an Interest Period for such LIBOR Portion. Borrower shall
request such a conversion by an irrevocable written notice to Agent in the
form of Exhibit B-2, appropriately completed (a "Notice of Term Loan
Conversion"), which specifies, among other things:
(i) The Portion of the Term Loan Borrowing which is to be
converted;
(ii) The amount and Type of each Portion of the Term Loan
Borrowing into which it is to be converted;
(iii) If any Portion of the Term Loan Borrowing is to be
converted into a LIBOR Portion, the initial Interest Period selected
by Borrower for such Portion in accordance with Subparagraph 2.02(e);
and
(iv) The date of the requested conversion, which shall be a
Business Day.
Borrower shall give each Notice of Term Loan Conversion to Agent at least
three (3) Business Days in the case of a conversion to a LIBOR Portion and
one (1) Business Day in the case of a conversion to a Base Rate Portion
before the date of the requested conversion. Each Notice of Term Loan
Conversion shall be delivered by first-class mail or facsimile to Agent at
the office or to the facsimile number and
26
during the hours specified in Paragraph 8.01; provided, however, that
Borrower shall promptly deliver to Agent the original of any Notice of Term
Loan Conversion initially delivered by facsimile. Agent shall promptly
notify each Lender of the contents of each Notice of Term Loan Conversion.
(e) LIBOR Portion Interest Periods.
(i) The initial and each subsequent Interest Period selected by
Borrower for a LIBOR Portion of the Term Loan Borrowing shall be one
(1), two (2), three (3) or six (6) months (or with the consent of each
Lender from time to time, any period of days seven (7) or greater but
less than one (1) month); provided, however, that (A) 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 next
Business Day falls in another calendar month, in which case such
Interest Period shall end on the immediately preceding Business Day;
(B) any Interest Period (other than an Interest Period which is less
than one (1) month) 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 end on the last Business Day of a calendar month; (C) no
Interest Period shall end after a Term Loan Installment Date unless,
after giving effect to such Interest Period, the aggregate principal
amount of all Base Rate Portions and all LIBOR Portions having
Interest Periods ending on or prior to such Term Loan Installment Date
equals or exceeds the principal payment due on such Term Loan
Installment Date; and (D) no Interest Period shall end after the Term
Loan Maturity Date.
(ii) Borrower shall notify Agent by an irrevocable written notice
in the form of Exhibit C-2, appropriately completed (a "Notice of Term
Loan Interest Period Selection"), at least three (3) Business Days
prior to the last day of each Interest Period for a LIBOR Portion of
the Term Loan Borrowing of the Interest Period selected by Borrower
for the next succeeding Interest Period for such Portion. Each Notice
of Term Loan Interest Period Selection shall be given by first-class
mail or facsimile to the office or the facsimile number and during the
hours specified in Paragraph 8.01; provided, however, that Borrower
shall promptly deliver to Agent the original of any Notice of Term
Loan Interest Period Selection initially delivered by facsimile. If
Borrower fails to notify Agent of the next Interest Period for a LIBOR
Portion of the Term Loan Borrowing in accordance with this
Subparagraph 2.03(e), such Portion shall automatically convert to a
Base Rate Portion on the last day of the current Interest Period
therefor.
(f) Scheduled Term Loan Payments. Borrower shall repay the principal
amount of the Term Loans in four equal quarterly installments, payable on
the last Business Day of each March, June, September and December, as
applicable (commencing on the first such day to occur after the Revolving
Loan Maturity Date
27
and ending on the Term Loan Maturity Date) (each such date to be referred
to herein as a "Term Loan Installment Date"); provided, however, that the
principal payment due on the Term Loan Maturity Date shall be in the amount
necessary to pay all remaining unpaid principal on the Term Loans. Borrower
shall pay accrued interest on the unpaid principal amount of each Term Loan
in arrears (i) in the case of a Base Rate Portion, on the last Business Day
in each quarter, as applicable, (ii) in the case of a LIBOR Portion, on the
last day of each Interest Period (and (A) if any such Interest Period is
equal to or longer than three (3) months, every three (3) months, or (B) if
any such Interest Period is shorter than one (1) month, every month); and
(iii) in the case of all Term Loans, upon prepayment (to the extent
thereof) and at maturity.
(g) Purpose. Borrower shall use the proceeds of the Term Loans first
to repay the Revolving Loans and, thereafter, for Borrower's general
corporate needs.
2.03. Commitment Reductions, Etc.
--------------------------
(a) Reduction or Cancellation of Commitments. Borrower may, upon
----------------------------------------
three (3) Business Days written notice to Agent, permanently reduce the
Total Commitment by the amount of five million Dollars ($5,000,000) or an
integral multiple of one million Dollars ($1,000,000) in excess thereof or
cancel the Total Commitment in its entirety; provided, however, that:
-------- --------
(i) Borrower may not reduce the Total Commitment prior to the
Revolving Loan Maturity Date, if, after giving effect to such
reduction, the aggregate principal amount of all Loans then
outstanding would exceed the Total Commitment; and
(ii) Borrower may not cancel the Total Commitment prior to the
Revolving Loan Maturity Date, if, after giving effect to such
cancellation, any Loan would then remain outstanding.
(b) Effect of Commitment Reductions. From the effective date of any
-------------------------------
reduction of the Total Commitment, the Commitment Fees payable pursuant to
Subparagraph 2.04(c) shall be computed on the basis of the Total
---------------------
Commitment as so reduced. Once reduced or cancelled, the Total Commitment
may not be increased or reinstated without the prior written consent of all
Lenders. Any reduction of the Total Commitment pursuant to Subparagraph
-------------
2.03(a) shall be applied ratably to reduce each Lender's Commitment in
-------
accordance with clause (i) of Subparagraph 2.09(a).
-----------------------------------
2.04. Fees.
----
(a) Agent's Fee. Borrower shall pay to Agent, for its own account,
-----------
agent's fees and other compensation in the amounts and at the times set
forth in the Agent's Fee Letter.
28
(b) Participation Fees. Borrower shall pay to Agent, for the ratable
------------------
benefit of the Lenders as provided in this Subparagraph 2.04(b),
--------------------
nonrefundable participation fees (the "Participation Fees") in amounts
------------------
equal to five one hundredths of one percent (.05%) of such Lender's
Proportionate Share of the Total Commitment on the Closing Date.
(c) Commitment Fees. Borrower shall pay to Agent, for the ratable
---------------
benefit of the Lenders as provided in clause (iv) of Subparagraph 2.09(a),
commitment fees (the "Commitment Fees") equal to the Commitment Fee
---------------
Percentage on the daily average Unused Commitment for the period beginning
on the date of this Agreement and ending on the Revolving Loan Maturity
Date. (The Commitment Fee Percentage shall be determined as provided in the
Pricing Grid and may change for each Margin Period.) Borrower shall pay the
Commitment Fees in arrears on the last day in each March, June, September
and December (commencing June 30, 1999) and on the Revolving Loan Maturity
Date (or if the Total Commitment is cancelled on a date prior to the
Revolving Loan Maturity Date, on such prior date).
2.05. Prepayments.
-----------
(a) Terms of all Prepayments. Upon the prepayment of any Loan
------------------------
(whether such prepayment is an optional prepayment under Subparagraph
2.05(b), a mandatory prepayment required by Subparagraph 2.05(c) or a
mandatory prepayment required by any other provision of this Agreement or
the other Credit Documents, including, without limitation, a prepayment
upon acceleration), Borrower shall pay to the Lender which made such Loan
(i) all accrued interest to the date of such prepayment on the amount
prepaid and (ii) if such prepayment is the prepayment of a LIBOR Loan or
LIBOR Portion on a day other than the last day of an Interest Period for
such LIBOR Loan or LIBOR Portion, all amounts payable to such Lender
pursuant to Paragraph 2.12.
(b) Optional Prepayments. At its option, Borrower may, upon three
--------------------
(3) Business Days notice to Agent, prepay the Loans in any Borrowing in
part, in an aggregate principal amount of $2,000,000 or more, or in whole.
(c) Mandatory Prepayments. If, at any time, the aggregate principal
---------------------
amount of all Loans then outstanding exceeds the Total Commitment at such
time, Borrower shall immediately prepay Loans in an aggregate principal
amount equal to such excess.
(d) Application of Term Loan Prepayments. All prepayments which are
applied to reduce the principal amount of the Term Loans shall reduce the
aggregate principal amount payable by Borrower on the then remaining Term
Loan Installment Dates in inverse order commencing with the Term Loan
Maturity Date. Without modifying the order of application of Term Loan
prepayments set forth in the preceding sentence, all such prepayments
shall, to the extent possible, be first
29
applied to prepay Base Rate Portions and then if any funds remain, to
prepay LIBOR Portions.
2.06. Other Payment Terms.
-------------------
(a) Place and Manner. Borrower shall make all payments due to each
----------------
Lender or Agent hereunder by payments to Agent at Agent's office located at
the address specified in Paragraph 8.01, with each payment due to a Lender
--------------
to be for the account of such Lender and such Lender's Applicable Lending
Office. Borrower shall make all payments hereunder in lawful money of the
United States and in same day or immediately available funds not later than
2:00 p.m. on the date due. Agent shall promptly disburse to each Lender
each payment received by Agent for the account of such Lender.
(b) Date. Whenever any payment due hereunder shall fall due on a day
----
other than a Business Day, such payment shall be made on the next
succeeding Business Day, and such extension of time shall be included in
the computation of interest or fees, as the case may be.
(c) Late Payments. If any amounts required to be paid by Borrower
-------------
under this Agreement or the other Credit Documents (including, without
limitation, principal or interest payable on any Loan, any fees or other
amounts) remain unpaid after such amounts are due, Borrower shall pay
interest on the aggregate, outstanding balance of such amounts from the
date due until those amounts are paid in full at a per annum rate equal to
the Base Rate plus two percent (2.0%), such rate to change from time to
time as the Base Rate shall change.
(d) Application of Payments. All payments hereunder shall be applied
-----------------------
first to unpaid fees, costs and expenses then due and payable under this
Agreement or the other Credit Documents, second to accrued interest then
due and payable under this Agreement or the other Credit Documents and
finally to reduce the principal amount of outstanding Loans.
(e) Failure to Pay Agent. Unless Agent shall have received notice
--------------------
from Borrower at least one (1) Business Day prior to the date on which any
payment is due to the Lenders hereunder that Borrower will not make such
payment in full, Agent shall be entitled to assume that Borrower has made
or will make such payment in full to Agent on such date and Agent may, in
reliance upon such assumption, cause to be paid to the Lenders on such due
date an amount equal to the amount then due such Lenders. If and to the
extent Borrower shall not have so made such payment in full to Agent, each
such Lender shall repay to 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 Agent, at (i) the Federal Funds Rate for the
first three (3) days and (ii) the per annum rate applicable to Base Rate
Loans thereafter. A certificate of Agent submitted to any Lender with
respect to any
30
amounts owing by such Lender under this Subparagraph 2.10(e) shall be
--------------------
conclusive absent manifest error.
2.07. Notes and Interest Account.
--------------------------
(a) Revolving Loan Notes. The obligation of Borrower to repay the
--------------------
Revolving Loans made by each Lender and to pay interest thereon at the
rates provided herein shall be evidenced by a promissory note in the form
of Exhibit D-1 (individually, a "Revolving Loan Note") which Revolving
----------- -------------------
Loan Note shall be (i) payable to the order of such Lender, (ii) in the
amount of such Lender's Commitment, (iii) dated the Closing Date and (iv)
otherwise appropriately completed. Borrower authorizes each Lender to
record on the schedule annexed to such Lender's Revolving Loan Note the
date and amount of each Revolving Loan made by such Lender and of each
payment or prepayment of principal thereon made by Borrower, and agrees
that all such notations shall constitute prima facie evidence of the
matters noted; provided, however, that any failure by a Lender to make any
-------- --------
such notation shall not affect the Obligations. Borrower further authorizes
each Lender to attach to and make a part of such Lender's Revolving Loan
Note continuations of the schedule attached thereto as necessary.
(b) Term Loan Notes. The obligation of Borrower to repay the Term
---------------
Loans shall be evidenced by a promissory note in the form of Exhibit D-2
-----------
(individually, a "Term Loan Note") which note shall be (i) payable to the
--------------
order of such Lender, (ii) in the amount of such Lender's Term Loan, (iii)
dated the date of the Term Loan Borrowing and (iv) otherwise appropriately
completed.
(c) Interest Account. Borrower authorizes Agent to record in an
----------------
account or accounts maintained by Agent on its books (the "Interest
--------
Account") (i) the interest rates applicable to all Loans and the effective
-------
dates of all changes thereto, (ii) the Interest Period for each LIBOR Loan,
(iii) the date and amount of each principal and interest payment on each
Loan and (iv) such other information as Agent may determine is necessary
for the computation of interest payable by Borrower hereunder.
2.08. Loan Funding.
------------
(a) Lender Funding and Disbursement to Borrower. Each Lender
------------------------------------------
shall, before 2:00 p.m. on the date of each Borrowing, make available to
Agent at Agent's office specified in Paragraph 8.01, in same day or
--------------
immediately available funds, such Lender's Proportionate Share of such
Borrowing. After Agent's receipt of such funds and upon satisfaction of the
applicable conditions set forth in Section III, Agent shall promptly
-----------
disburse such funds to Borrower in same day or immediately available funds.
Unless otherwise directed by Borrower, Agent shall disburse the proceeds of
each Borrowing by disbursement to the account or accounts specified in the
applicable Notice of Borrowing. The proceeds of the Term Loan Borrowing
shall be applied to repay the Revolving Loans and shall be disbursed
directly to the Lenders.
31
(b) Lender Failure to Fund. Unless Agent shall have received
----------------------
notice from a Lender prior to the date of any Borrowing that such Lender
will not make available to Agent such Lender's Proportionate Share of such
Borrowing, Agent shall be entitled to assume that such Lender has made or
will make such portion available to Agent on the date of such Borrowing in
accordance with Subparagraph 2.08(a), and Agent may on such date, in
--------------------
reliance upon such assumption, disburse or otherwise credit to Borrower a
corresponding amount. If any Lender does not make the amount of its
Proportionate Share of any Borrowing available to Agent on or prior to the
date of such Borrowing, such Lender shall pay to Agent, on demand, interest
which shall accrue on such amount from the date of such Borrowing until
such amount is paid to Agent at rates equal to (i) the daily Federal Funds
Rate during the period from the date of such Borrowing through the third
Business Day thereafter and (ii) the rate applicable to Base Rate Loans
thereafter. A certificate of Agent submitted to any Lender with respect to
any amounts owing under this Subparagraph 2.08(b) shall be conclusive
--------------------
absent manifest error. If the amount of any Lender's Proportionate Share of
any Borrowing is not paid to Agent by such Lender within three (3) Business
Days after the date of such Borrowing, Borrower shall repay such amount to
Agent, on demand, together with interest thereon, for each day from the
date such amount was disbursed to Borrower until the date such amount is
repaid to Agent, at the interest rate applicable at the time to the Loans
comprising such Borrowing.
(c) Lenders' Obligations Several. The failure of any Lender to
----------------------------
make the Loan to be made by it as part of any Borrowing shall not relieve
any other Lender of its obligation hereunder to make its Loan on the date
of such Borrowing, but no Lender shall be obligated in any way to make any
Loan which another Lender has failed or refused to make or otherwise be in
any way responsible for the failure or refusal of any other Lender to make
any Loan required to be made by such other Lender on the date of any
Borrowing.
2.09. Pro Rata Treatment.
------------------
(a) Borrowings, Commitment Reductions, Etc. Except as otherwise
---------------------------------------
provided herein:
(i) Each Borrowing and reduction of the Total Commitment
shall be made or shared among the Lenders pro rata according to
their respective Proportionate Shares;
(ii) Each payment of principal of Loans in any Borrowing
shall be shared among the Lenders which made or funded the Loans in
such Borrowing pro rata according to the respective unpaid principal
amounts of such Loans so made or funded by such Lenders;
32
(iii) Each payment of interest on Loans in any Borrowing
shall be shared among the Lenders which made or funded the Loans in
such Borrowing pro rata according to (A) the respective unpaid
principal amounts of such Loans so made or funded by such Lenders
and (B) the dates on which such Lenders so made or funded such
Loans;
(iv) Each payment of Commitment Fees shall be shared among
the Lenders (except for Defaulting Lenders) pro rata according to
(A) their respective Proportionate Shares and (B) in the case of
each Lender which becomes a Lender hereunder after the date hereof,
the date upon which such Lender so became a Lender;
(v) Each payment of interest (other than interest on Loans)
shall be shared among the Lenders and Agent owed the amount upon
which such interest accrues pro rata according to (A) the respective
amounts so owed such Lenders and Agent and (B) the dates on which
such amounts became owing to such Lenders and Agent; and
(vi) All other payments under this Agreement and the other
Credit Documents shall be for the benefit of the Person or Persons
specified.
(b) Sharing of Payments, Etc. If any Lender shall obtain any
------------------------
payment (whether voluntary, involuntary, through the exercise of any right
of setoff, or otherwise) on account of Loans owed to it in excess of its
ratable share of payments on account of such Loans obtained by all Lenders
entitled to such payments, such Lender shall forthwith purchase from the
other Lenders such participations in the Loans as shall be necessary to
cause such purchasing Lender to share the excess payment ratably with each
of them; provided, however, that if all or any portion of such excess
-------- -------
payment is thereafter recovered from such purchasing Lender, such purchase
shall be rescinded and each other Lender shall repay to the purchasing
Lender the purchase price to the extent of such recovery together with an
amount equal to such other Lender's ratable share (according to the
proportion of (i) the amount of such other Lender's required repayment to
(ii) the total amount so recovered from the purchasing Lender) of any
interest or other amount paid or payable by the purchasing Lender in
respect of the total amount so recovered. Borrower agrees that any Lender
so purchasing a participation from another Lender pursuant to this
Subparagraph 2.09(b) may, to the fullest extent permitted by law, exercise
--------------------
all its rights of payment (including the right of setoff) with respect to
such participation as fully as if such Lender were the direct creditor of
Borrower in the amount of such participation.
2.10. Change of Circumstances.
-----------------------
(a) Inability to Determine Rates. If, on or before the first day
----------------------------
of any Interest Period for any LIBOR Loan or LIBOR Portion, Agent shall
determine that (i) the LIBO Rate for such Interest Period cannot be
adequately and reasonably determined due to the unavailability of funds in
or other circumstances affecting the London interbank market
33
or (ii) the rate of interest for such LIBOR Loan or LIBOR Portion, as the
case may be, does not adequately and fairly reflect the cost to any Lender
of making or maintaining such LIBOR Loan or LIBOR Portion, Agent shall
immediately give notice of such condition to Borrower and the other
Lenders. After the giving of any such notice and until Agent shall
otherwise notify Borrower that the circumstances giving rise to such
condition no longer exist, Borrower's right to request the making of,
conversion to or a new Interest Period for LIBOR Loans or LIBOR Portions
shall be suspended. Any LIBOR Loans or LIBOR Portions outstanding at the
commencement of any such suspension shall be converted at the end of the
then current Interest Period for such LIBOR Loans or LIBOR Portions into
Base Rate Loans or Base Rate Portions, as the case may be, unless such
suspension has then ended.
(b) Illegality. If, after the date of this Agreement, the adoption
----------
of any Governmental Rule, any change in any Governmental Rule or the
application or requirements thereof (whether such change occurs in
accordance with the terms of such Governmental Rule as enacted, as a result
of amendment or otherwise), any change in the interpretation or
administration of any Governmental Rule by any Governmental Authority, or
compliance by any Lender with any request or directive (whether or not
having the force of law) of any Governmental Authority (a "Change of Law")
-------------
shall make it unlawful or impossible for any Lender to make or maintain any
LIBOR Loan or LIBOR Portion, such Lender shall immediately notify Agent and
Borrower of such Change of Law. Upon receipt of such notice, (i) Borrower's
right to request the making of, conversion to or a new Interest Period for
LIBOR Loans or LIBOR Portions shall be terminated, and (ii) Borrower shall,
at the request of such Lender, either (A) repay any such then outstanding
LIBOR Loans or LIBOR Portions at the end of the current Interest Period for
such LIBOR Loans or LIBOR Portions or (B) immediately repay any such LIBOR
Loans or LIBOR Portions if such Lender shall notify Borrower that such
Lender may not lawfully continue to fund and maintain such LIBOR Loans or
LIBOR Portions. Any prepayment of LIBOR Loans or LIBOR Portions made
pursuant to the preceding sentence prior to the last day of an Interest
Period for such LIBOR Loans or LIBOR Portions shall be deemed a prepayment
thereof for purposes of Paragraph 2.12. After any Lender notifies Agent and
--------------
Borrower of such a Change of Law and until such Lender notifies Agent and
Borrower that it is no longer unlawful or impossible for such Lender to
make or maintain a LIBOR Loan or LIBOR Portion, all Revolving Loans and all
Portions of the Term Loan of such Lender shall be Base Rate Loans and Base
Rate Portions, respectively.
(c) Increased Costs. If, after the date of this Agreement, any
---------------
Change of Law:
(i) Shall subject any Lender to any tax, duty or other
charge with respect to any LIBOR Loan or LIBOR Portion, or shall
change the basis of taxation of payments by Borrower to any Lender
on such a LIBOR Loan or LIBOR Portion or in respect to such a LIBOR
Loan or LIBOR Portion under
34
this Agreement (except for changes in the rate of taxation on the
overall net income of any Lender imposed by its jurisdiction of
incorporation or the jurisdiction in which its principal executive
office is located); or
(ii) Shall impose, modify or hold applicable any reserve
(excluding any Reserve Requirement or other reserve to the extent
included in the calculation of the LIBO Rate for any Loans or
Portions), special deposit or similar requirement against assets
held by, deposits or other liabilities in or for the account of,
advances or loans by, or any other acquisition of funds by any
Lender for any LIBOR Loan or LIBOR Portion; or
(iii) Shall impose on any Lender any other condition related
to any LIBOR Loan or LIBOR Portion or such Lender's Commitment;
And the effect of any of the foregoing is to increase the cost to such
Lender of making, renewing, or maintaining any such LIBOR Loan or LIBOR
Portion or its Commitment or to reduce any amount receivable by such Lender
hereunder; then Borrower shall from time to time, within five (5) Business
Days after demand by such Lender, pay to such Lender additional amounts
sufficient to reimburse such Lender for such increased costs or to
compensate such Lender for such reduced amounts. A certificate as to the
amount of such increased costs or reduced amounts, submitted by such Lender
to Borrower shall, in the absence of manifest error, be conclusive and
binding on Borrower for all purposes. The obligations of Borrower under
this Subparagraph 2.10(c) shall survive the payment and performance of the
--------------------
Obligations and the termination of this Agreement.
(d) Capital Requirements. If, after the date of this Agreement,
--------------------
any Lender determines that (i) any Change of Law affects the amount of
capital required or expected to be maintained by such Lender or any Person
controlling such Lender (a "Capital Adequacy Requirement") and (ii) the
----------------------------
amount of capital maintained by such Lender or such Person which is
attributable to or based upon the Loans, the Commitments or this Agreement
must be increased as a result of such Capital Adequacy Requirement (taking
into account such Lender's or such Person's policies with respect to
capital adequacy), Borrower shall pay to such Lender or such Person, within
five (5) Business Days after demand by such Lender, such amounts as such
Lender or such Person shall determine are necessary to compensate such
Lender or such Person for the increased costs to such Lender or such Person
of such increased capital. A certificate of any Lender setting forth in
reasonable detail the computation of any such increased costs, delivered by
such Lender to Borrower shall, in the absence of manifest error, be
conclusive and binding on Borrower for all purposes. The obligations of
Borrower under this Subparagraph 2.10(d) shall survive the payment and
--------------------
performance of the Obligations and the termination of this Agreement
(e) Mitigation. Any Lender which becomes aware of (i) any Change
----------
of Law which will make it unlawful or impossible for such Lender to make or
maintain any LIBOR Loan or LIBOR Portion or (ii) any Change of Law or other
event or condition
35
which will obligate Borrower to pay any amount pursuant to Subparagraph
------------
2.10(c) or Subparagraph 2.10(d) shall notify Borrower and Agent thereof as
------- --------------------
promptly as practical. If any Lender has given notice of any such Change of
Law or other event or condition and thereafter becomes aware that such
Change of Law or other event or condition has ceased to exist, such Lender
shall notify Borrower and Agent thereof as promptly as practical. Each
Lender affected by any Change of Law which makes it unlawful or impossible
for such Lender to make or maintain any LIBOR Loan or LIBOR Portion or to
which Borrower is obligated to pay any amount pursuant to Subparagraph
------------
2.10(c) or Subparagraph 2.10(d) shall use reasonable commercial efforts
------- --------------------
(including changing the jurisdiction of its Applicable Lending Office) to
avoid the effect of such Change of Law or to avoid or materially reduce any
amounts which Borrower is obligated to pay pursuant to Subparagraph 2.10(c)
--------------------
or Subparagraph 2.10(d) if, in the
--------------------
reasonable opinion of such Lender, such efforts would not be
disadvantageous to such Lender or contrary to such Lender's normal banking
practices.
2.11. Taxes on Payments.
-----------------
(a) Payments Free of Taxes. All payments made by Borrower under
----------------------
this Agreement and the other Credit Documents shall be made free and clear
of, and without deduction or withholding for or on account of, any present
or future income, stamp or other taxes, levies, imposts, duties, charges,
fees, deductions or withholdings, now or hereafter imposed, levied,
collected, withheld or assessed by any Governmental Authority (except net
income taxes and franchise taxes in lieu of net income taxes imposed on
Agent or any Lender by its jurisdiction of incorporation or the
jurisdiction in which its Applicable Lending Office is located) (all such
non-excluded taxes, levies, imposts, duties, charges, fees, deductions and
withholdings being hereinafter called "Taxes"). Subject to Subparagraphs
-------------
2.11(c) and 2.11(d), if any Taxes are required to be withheld from any
-------------------
amounts payable to Agent or any Lender hereunder or under the other Credit
Documents, the amounts so payable to Agent or such Lender shall be
increased to the extent necessary to yield to Agent or such Lender (after
payment of all Taxes) interest or any such other amounts payable hereunder
at the rates or in the amounts specified in this Agreement and the other
Credit Documents. Whenever any Taxes are payable by Borrower, as promptly
as possible thereafter, Borrower shall send to Agent for its own account or
for the account of such Lender, as the case may be, a certified copy of an
original official receipt received by Borrower showing payment thereof. If
Borrower fails to pay any Taxes when due to the appropriate taxing
authority or fails to remit to Agent the required receipts or other
required documentary evidence, Borrower shall indemnify Agent and the
Lenders for any incremental taxes, interest or penalties that may become
payable by Agent or any Lender as a result of any such failure. The
obligations of Borrower under this Subparagraph 2.11(a) shall survive the
--------------------
payment and performance of the Obligations and the termination of this
Agreement.
(b) Withholding Exemption Certificates, Etc. If Agent or any
---------------------------------------
Lender is not organized under the laws of the United States of America or a
state thereof, such Person agrees as set forth below in this Subparagraph
------------
2.11(b).
-------
36
(i) If any such Person is a "bank" within the meaning of
Section 881(c)(3)(A) of the IRC, it shall, no later than the Closing
Date (or, in the case of a Lender which becomes a Lender hereunder
pursuant to Subparagraph 8.05(c) after the Closing Date, the date
--------------------
upon which such Lender so becomes a Lender hereunder) deliver to
Borrower and Agent two (2) accurate and complete signed originals of
IRS Form 4224 or any successor thereto ("Form 4224"), or two
accurate and complete signed originals of IRS Form 1001 or any
successor thereto ("Form 1001"), as appropriate, in each case
indicating that such Person is, on the date of delivery thereof,
entitled to receive payments of principal, interest and fees under
this Agreement free from withholding of United States Federal income
tax. If at any time such Person makes any changes necessitating a
new Form 4224 or Form 1001, it shall, within thirty (30) days after
such change becomes effective, deliver to Borrower and Agent in
replacement for, or in addition to, the forms previously delivered
by it hereunder, two accurate and complete signed originals of Form
4224, or two accurate and complete signed originals of Form 1001, as
appropriate, in each case indicating that such Person is, on the
date of delivery thereof, entitled to receive payments of principal,
interest and fees under this Agreement free from withholding of
United States Federal income tax.
(ii) If any such Person is not a "bank" within the meaning
of Section 881(c)(3)(A) of the IRC, it shall, no later than the
Closing Date (or, in the case of a Lender which becomes a Lender
hereunder pursuant to Subparagraph 8.05(c) after the Closing Date,
--------------------
the date upon which such Lender so becomes a Lender hereunder)
deliver to Borrower and Agent two (2) accurate and complete signed
originals of IRS Form W-8 or any successor thereto ("Form W-8")
certifying to such Person's legal entitlement (assuming compliance
by Borrower with the terms of this Agreement) to an exemption
whereby such Person is on the date of delivery thereof entitled to
receive payments of principal, interest and fees under this
Agreement free from withholding of United States Federal income tax.
If at any time any such Person makes any changes necessitating a new
Form W-8, it shall, within thirty (30) days after such change
becomes effective, deliver to Borrower and Agent in replacement for,
or in addition to, the forms previously delivered by it hereunder,
two accurate and complete signed originals of Form W-8 certifying to
such Person's legal entitlement (assuming compliance by Borrower
with the terms of this Agreement) to an exemption whereby such
Person is on the date of delivery thereof entitled to receive
payments of principal, interest and fees under this Agreement free
from withholding of United States Federal income tax.
(iii) Each such Person shall, before or within thirty (30)
days after the occurrence of any event (including the passing of
time but excluding any event mentioned in clause (i) or (ii) above)
requiring a change in or renewal of the most recent Form 4224, Form
1001 or Form W-8 previously delivered by such Person, deliver to
Borrower and Agent two accurate and complete original signed copies
37
of Form 4224, Form 1001 or Form W-8 in replacement for the forms
previously delivered by such Person.
(iv) Each such Person shall, promptly upon the reasonable
request of Agent, deliver to Agent such other forms or similar
documentation as may be required from time to time by any applicable
Governmental Rule in order to establish such Lender's tax status for
withholding purposes.
(c) Non-Compliance, Etc. Borrower will not be required to pay any
-------------------
additional amounts in respect of United States Federal income tax pursuant
to Subparagraph 2.11(a) to Agent or any Lender subject to Subparagraph
-------------------- ------------
2.11(b) if:
-------
(i) The obligation to pay such additional amounts would not
have arisen but for a failure by such Person to comply with its
obligations under Subparagraph 2.11(b); or
--------------------
(ii) Such Person is not entitled to exemption from deduction
or withholding of United States Federal income tax for payments by
Borrower to such Person hereunder for the account of its Applicable
Lending Office for any reason other than a Change of Law after the
date of delivery by such Person of Form 4224, Form 1001 or Form W-8,
as the case may be.
(d) Mitigation. If Agent or any Lender claims any additional
----------
amounts to be payable to it pursuant to this Paragraph 2.11, such Person
--------------
shall use reasonable commercial efforts to file any certificate or document
requested in writing by Borrower (including without limitation copies of
Internal Revenue Service Form 1001 (or successor forms) reflecting a
reduced rate of withholding) or to change the jurisdiction of its
Applicable Lending Office if the making of such a filing or such change in
the jurisdiction of its Applicable Lending Office would avoid the need for
or materially reduce the amount of any such additional amounts which may
thereafter accrue and if, in the reasonable opinion of such Person, in the
case of a change in the jurisdiction of its Applicable Lending Office, such
change would not be disadvantageous to such Person or contrary to such
Person's normal banking practices.
(e) Tax Returns. Nothing contained in this Paragraph 2.11 shall
----------- --------------
require Agent or any Lender to make available any of its tax returns (or
any other information relating to its taxes which it deems to be
confidential).
2.12. Funding Loss Indemnification. If Borrower shall (a) repay, prepay or
----------------------------
convert any LIBOR Loan or LIBOR Portion on any day other than the last day of an
Interest Period therefor (whether a scheduled payment, an optional prepayment or
conversion, a mandatory prepayment or a payment upon acceleration or otherwise);
(b) fail to borrow any LIBOR Loan or LIBOR Portion for which a Notice of
Borrowing has been delivered to Agent (whether as a result of the failure to
satisfy any applicable conditions or otherwise); or (c) fail to convert any
Revolving Loans into LIBOR Loans or any Portion of the Term Loan
38
Borrowing into a LIBOR Portion in accordance with a Notice of Conversion
delivered to Agent (whether as a result of the failure to satisfy any applicable
conditions or otherwise), Borrower shall, upon demand by any Lender, reimburse
such Lender for and hold such Lender harmless from all costs and losses incurred
by such Lender as a result of such repayment, prepayment, conversion or failure.
Borrower understands that such costs and losses may include losses incurred by a
Lender as a result of funding and other contracts entered into by such Lender to
fund a LIBOR Loan or LIBOR Portion. Each Lender demanding payment under this
Paragraph 2.12 shall deliver to Borrower, with a copy to Agent, a certificate
--------------
setting forth the amount of costs and losses for which demand is made, which
certificate shall set forth in reasonable detail the calculation of the amount
demanded. Such a certificate so delivered to Borrower shall constitute prima
facie evidence of such costs and losses. The obligations of Borrower under this
Paragraph 2.12 shall survive the payment and performance of the Obligations and
--------------
the termination of this Agreement.
2.13. Replacement of Lenders. If any Lender shall (a) become a Defaulting
----------------------
Lender, (b) suspend its obligation to make or maintain LIBOR Loans or LIBOR
Portions pursuant to Subparagraph 2.10(b) for a reason which is not applicable
--------------------
to any other Lender or (c) demand any payment under Subparagraph 2.10(c),
--------------------
2.10(d) or 2.11(a) for a reason which is not applicable to any other Lender,
------------------
then Agent may (or shall, upon the written request of Borrower if no Event of
Default has occurred and is continuing) replace such Lender (the "affected
Lender"), or cause such affected Lender to be replaced, with another lender (the
"replacement Lender") satisfying the requirements of an Assignee Lender under
Subparagraph 8.05(c), by having the affected Lender sell and assign all of its
--------------------
rights and obligations under this Agreement and the other Credit Documents to
the replacement Lender pursuant to Subparagraph 8.05(c); provided, however, that
-------------------- -------- -------
if Borrower seeks to exercise such right, it must give Agent written notice of
its intent to do so within thirty (30) days after it first knows or should have
known of the occurrence of the event or events giving rise to such right and
must effect such replacement within sixty (60) days of giving such notice.
Neither Agent nor any Lender shall have any obligation to identify or locate a
replacement Lender for Borrower. Upon receipt by any affected Lender of a
written notice from Agent stating that Agent is exercising the replacement right
set forth in this Paragraph 2.13, such affected Lender shall sell and assign all
--------------
of its rights and obligations under this Agreement and the other Credit
Documents to the replacement Lender pursuant to an Assignment Agreement and
Subparagraph 8.05(c) for a purchase price equal to the sum of the principal
--------------------
amount of the affected Lender's Loans so sold and assigned, all accrued and
unpaid interest thereon and its ratable share of all fees to which it is
entitled.
39
SECTION III. CONDITIONS PRECEDENT.
3.01. Initial Conditions Precedent. The obligations of the Lenders to
make the Revolving Loans comprising the initial Borrowing are subject to receipt
by Agent, on or prior to the Closing Date, of each item listed in Schedule 3.01,
-------------
each in form and substance satisfactory to Agent and each Lender, and with
sufficient copies for, Agent and each Lender. Agent shall notify Borrower and
Lenders upon Agent's receipt of such items.
3.02. Conditions Precedent to Term Loan Borrowing. The obligations of
-------------------------------------------
Lenders to make the Term Loans comprising the Term Loan Borrowing are subject to
receipt by Agent, on or prior to the Revolving Loan Maturity Date, of a Term
Loan Note for each Lender, duly executed by Borrower.
3.03. Conditions Precedent to Each Credit Event. The occurrence of each
-----------------------------------------
Credit Event (including the initial Borrowing) is subject to the further
conditions that:
(a) Borrower shall have delivered to Agent the Notice of
Borrowing, Notice of Conversion or Notice of Interest Period Selection, as
the case may be, for such Credit Event in accordance with this Agreement;
and
(b) On the date such Credit Event is to occur and after giving
effect to such Credit Event, the following shall be true and correct:
(i) The representations and warranties of Borrower and its
Subsidiaries set forth in Paragraph 4.01 and in the other Credit
--------------
Documents are true and correct in all material respects as if made
on such date (except for representations and warranties expressly
made as of a specified date, which shall be true as of such date);
(ii) No Default has occurred and is continuing or will
result from such Credit Event; and
(iii) All of the Credit Documents are in full force and
effect.
The submission by Borrower to Agent of each Notice of Borrowing, each
Notice of Conversion and each Notice of Interest Period Selection shall be
deemed to be a
40
representation and warranty by Borrower that each of the statements set
forth above in this Subparagraph 3.03(b) is true and correct as of the date
--------------------
of such notice.
3.04. Covenant to Deliver. Borrower agrees (not as a condition but as
-------------------
a covenant) to deliver to Agent each item required to be delivered to Agent as a
condition to the occurrence of any Credit Event if such Credit Event occurs.
Borrower expressly agrees that the occurrence of any such Credit Event prior to
the receipt by Agent of any such item shall not constitute a waiver by Agent or
any Lender of Borrower's obligation to deliver such item.
SECTION IV. REPRESENTATIONS AND WARRANTIES.
------------------------------
4.01. Borrower's Representations and Warranties. In order to induce
-----------------------------------------
Agent and the Lenders to enter into this Agreement, Borrower hereby represents
and warranties to Agent and the Lenders as follows:
(a) Due Incorporation, Qualification, etc. Each of Borrower and
-------------------------------------
Borrower's Subsidiaries (i) is a corporation duly organized, validly
existing and in good standing under the laws of its jurisdiction of
organization; (ii) has the power and authority to own, lease and operate
its properties and carry on its business as now conducted; and (iii) is
duly qualified, licensed to do business and in good standing as a foreign
corporation in each jurisdiction where the failure to be so qualified or
licensed is reasonably likely to have a Material Adverse Effect.
(b) Authority. The execution, delivery and performance by Borrower
---------
of each Credit Document executed, or to be executed, by Borrower and the
consummation of the transactions contemplated thereby (i) are within the
power of Borrower and (ii) have been duly authorized by all necessary
actions on the part of Borrower.
(c) Enforceability. Each Credit Document executed, or to be
--------------
executed, by Borrower has been, or will be, duly executed and delivered by
Borrower and constitutes, or will constitute, a legal, valid and binding
obligation of Borrower, enforceable against Borrower in accordance with its
terms, except as limited by bankruptcy, insolvency or other laws of general
application relating to or affecting the enforcement of creditors' rights
generally and general principles of equity.
(d) Non-Contravention. The execution and delivery by Borrower of the
-----------------
Credit Documents executed by Borrower and the performance and consummation
of the transactions contemplated thereby do not (i) violate any Requirement
of Law applicable to Borrower; (ii) violate any provision of, or result in
the breach or the acceleration of, or entitle any other Person to
accelerate (whether after the giving of notice or lapse of time or both),
any Contractual Obligation of Borrower; or (iii) result in the creation or
imposition of any Lien (or the obligation to create or impose any Lien)
upon any property, asset or revenue of Borrower (except such Liens as may
be created in favor of Agent pursuant to this Agreement or the other Credit
Documents).
41
(e) Approvals. No consent, approval, order or authorization of, or
---------
registration, declaration or filing with, any Governmental Authority or
other Person (including, without limitation, the shareholders of any
Person) is required in connection with the execution and delivery of the
Credit Documents executed by Borrower and the performance and consummation
of the transactions contemplated thereby.
(f) No Violation or Default. Neither Borrower nor any of its
-----------------------
Subsidiaries is in violation of or in default with respect to (i) any
Requirement of Law applicable to such Person; (ii) any Contractual
Obligation of such Person (nor is there any waiver in effect which, if not
in effect, would result in such a violation or default), where, in each
case, such violation or default is reasonably likely to have a Material
Adverse Effect. Without limiting the generality of the foregoing, except
as set forth in the Disclosure Letter, neither Borrower nor any of its
Subsidiaries (A) has violated any Environmental Laws, (B) has any liability
under any Environmental Laws or (C) has received notice or other
communication of an investigation or is under investigation by any
Governmental Authority having authority to enforce Environmental Laws,
where such violation, liability or investigation is reasonably likely to
have a Material Adverse Effect. No Default has occurred and is continuing.
(g) Litigation. Except as set forth in the Disclosure Letter, no
----------
actions (including, without limitation, derivative actions), suits,
proceedings or investigations are pending or, to the knowledge of Borrower,
threatened against Borrower or any of its Subsidiaries at law or in equity
in any court or before any other Governmental Authority which (i) is
reasonably likely (alone or in the aggregate) to have a Material Adverse
Effect or (ii) seeks to enjoin, either directly or indirectly, the
execution, delivery or performance by Borrower of the Credit Documents or
the transactions contemplated thereby.
(h) Title, Possession under Leases. Borrower and its Subsidiaries
------------------------------
own and have good and marketable title, or a valid leasehold interest in,
all their respective properties and assets as reflected in the most recent
Financial Statements delivered to Agent (except those assets and properties
disposed of in the ordinary course of business or otherwise in compliance
with this Agreement since the date of such Financial Statements) and all
respective assets and properties acquired by Borrower and its Subsidiaries
since such date (except those disposed of in the ordinary course of
business or otherwise in compliance with this Agreement). Such assets and
properties are subject to no Lien, except for Permitted Liens. Each of
Borrower and its Subsidiaries has complied with all material obligations
under all material leases to which it is a party and all such leases are in
full force and effect. Each of Borrower and its Subsidiaries enjoys
peaceful and undisturbed possession under such leases, except where any
failure to enjoy such possession (alone or in the aggregate with other such
failures) is not reasonably likely to have a Material Adverse Effect.
(i) Financial Statements. The Financial Statements of Borrower and
--------------------
its Subsidiaries which have been delivered to Agent, (i) are in accordance
with the books and
42
records of Borrower and its Subsidiaries, which have been maintained in
accordance with good business practice; (ii) have been prepared in
conformity with GAAP; and (iii) fairly present the financial conditions and
results of operations of Borrower and its Subsidiaries as of the date
thereof and for the period covered thereby. As of the date of, and except
as disclosed in the audited Financial Statements dated December 31, 1998
furnished by Borrower to Agent prior to the date hereof and in the
Financial Statements delivered to Agent pursuant to clause (i) or (ii) of
---------------------
Subparagraph 5.01(a), neither Borrower nor any of its Subsidiaries has any
--------------------
Contingent Obligations, liability for taxes or other outstanding
obligations which are material in the aggregate.
(j) No Agreements to Sell Assets. Neither Borrower nor any of its
----------------------------
Subsidiaries has any legal obligation, absolute or contingent, to any
Person to sell the assets of Borrower or any of its Subsidiaries (other
than sales in the ordinary course of business), or to effect any merger,
consolidation or other reorganization of Borrower or any of its
Subsidiaries or to enter into any agreement with respect thereto.
(k) Employee Benefit Plans.
----------------------
(i) Based on the latest valuation of each Employee Benefit Plan
that either Borrower or any ERISA Affiliate maintains or contributes
to, or has any obligation under (which valuation occurred within
twelve months of the date of this representation), the aggregate
benefit liabilities of such plan within the meaning of (S) 4001 of
ERISA did not exceed the aggregate value of the assets of such plan.
Neither Borrower nor any ERISA Affiliate has any liability with
respect to any post-retirement benefit under any Employee Benefit Plan
which is a welfare plan (as defined in section 3(1) of ERISA), other
than liability for health plan continuation coverage described in Part
6 of Title I(B) of ERISA, which liability for health plan contribution
coverage is not reasonably likely to have a Material Adverse Effect.
(ii) Each Employee Benefit Plan complies, in both form and
operation, in all material respects, with its terms, ERISA and the
IRC, and no condition exists or event has occurred with respect to any
such plan which, individually or in the aggregate, is reasonably
likely to have a Material Adverse Effect. Each Employee Benefit Plan,
related trust agreement, arrangement and commitment of Borrower or any
ERISA Affiliate is legally valid and binding and in full force and
effect. No Employee Benefit Plan is being audited or investigated by
any government agency or is subject to any pending or threatened claim
or suit (other than routine benefits claims). Neither Borrower nor
any ERISA Affiliate nor any fiduciary of any Employee Benefit Plan has
engaged in a prohibited transaction under section 406 of ERISA or
section 4975 of the IRC which, individually or in the aggregate, is
reasonably likely to have a Material Adverse Effect.
(iii) Neither Borrower nor any ERISA Affiliate contributes to or
has any material contingent obligations to any Multiemployer Plan.
Neither Borrower
43
nor any ERISA Affiliate has incurred any material liability (including
secondary liability) to any Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan under
Section 4201 of ERISA or as a result of a sale of assets described in
Section 4204 of ERISA. Neither Borrower nor any ERISA Affiliate has
been notified that any Multiemployer Plan is in reorganization or
insolvent under and within the meaning of Section 4241 or Section 4245
of ERISA or that any Multiemployer Plan intends to terminate or has
been terminated under Section 4041A of ERISA.
(l) Other Regulations. Borrower is not subject to regulation under
-----------------
the Investment Company Act of 1940, the Public Utility Holding Company Act
of 1935, the Federal Power Act, any state public utilities code or to any
other Governmental Rule limiting its ability to incur indebtedness.
(m) Patent and Other Rights. Except as set forth in the Disclosure
-----------------------
Letter, Borrower and its Subsidiaries own or license under validly existing
agreements, and have the full right to license without the consent of any
other Person, all patents, licenses, trademarks, trade names, trade
secrets, service marks, copyrights and all rights with respect thereto,
which are required to conduct their businesses as now conducted, except
where any failure so to own, license or have the right to license without
consent (alone or in the aggregate with other such failures) is not
reasonably likely to have a Material Adverse Effect.
(n) Governmental Charges. Borrower and its Subsidiaries have filed or
--------------------
caused to be filed all tax returns which are required to be filed by them.
Borrower and its Subsidiaries have paid, or made provision for the payment
of, all taxes and other Governmental Charges which have or may have become
due pursuant to said returns or otherwise and all other indebtedness,
except such Governmental Charges or indebtedness, if any, which are being
contested in good faith and as to which adequate reserves (determined in
accordance with GAAP) have been provided or which are not reasonably likely
to have a Material Adverse Effect if unpaid.
(o) Margin Stock. Borrower owns no Margin Stock which, in the
------------
aggregate, would constitute a substantial part of the assets of Borrower,
and no proceeds of any Loan will be used to purchase or carry, directly or
indirectly, any Margin Stock or to extend credit, directly or indirectly,
to any Person for the purpose of purchasing or carrying any Margin Stock.
(p) Subsidiaries, etc. Set forth in Schedule 4.01(p) (as supplemented
----------------- ----------------
by Borrower from time to time in a written notice to Agent) is a complete
list of all of Borrower's Subsidiaries, the jurisdiction of incorporation
of each, the classes of Equity Securities of each and the percentages of
shares of each such class owned directly or indirectly by Borrower. Except
for such Subsidiaries, Borrower has no other Subsidiaries, is not a partner
in any partnership or a joint venturer in any joint venture.
44
(q) Solvency, Etc. Borrower is Solvent and, after the execution and
-------------
delivery of the Credit Documents and the consummation of the transactions
contemplated thereby, will be Solvent.
(r) Catastrophic Events. Neither Borrower nor any of its Subsidiaries
-------------------
and none of their respective properties is affected by any fire, explosion,
accident, strike, lockout or other labor dispute, drought, storm, hail,
earthquake, embargo, act of God or other casualty that is reasonably likely
to have a Material Adverse Effect. There are no disputes presently subject
to grievance procedure, arbitration or litigation under any of the
collective bargaining agreements, employment contracts or employee welfare
or incentive plans to which Borrower or any of its Subsidiaries is a party,
and there are no strikes, lockouts, work stoppages or slowdowns, or, to the
best knowledge of Borrower, jurisdictional disputes or organizing
activities occurring or threatened which alone or in the aggregate are
reasonably likely to have a Material Adverse Effect.
(s) No Material Adverse Effect. No event has occurred and no
--------------------------
condition exists which is reasonably likely to have a Material Adverse
Effect.
(t) Accuracy of Information Furnished. None of the Credit Documents
---------------------------------
and none of the other certificates, statements or information furnished to
Agent or any Lender by or on behalf of Borrower or any of its Subsidiaries
in connection with the Credit Documents or the transactions contemplated
thereby contains or will contain any untrue statement of a material fact or
omits or will omit to state a material fact necessary to make the
statements therein, in light of the circumstances under which they were
made, not misleading.
4.02. Reaffirmation. Borrower shall be deemed to have reaffirmed, for
-------------
the benefit of the Lenders and Agent, each representation and warranty contained
in Paragraph 4.01 on and as of the date of each Credit Event (except for
representations and warranties expressly made as of a specified date, which
shall be true as of such date).
SECTION V. COVENANTS.
---------
5.01. Affirmative Covenants. Until the termination of this Agreement
---------------------
and the satisfaction in full by Borrower of all Obligations, Borrower will
comply, and will cause compliance, with the following affirmative covenants,
unless Required Lenders shall otherwise consent in writing:
45
(a) Financial Statements, Reports, etc. Borrower shall furnish to
----------------------------------
Agent, with sufficient copies for each Lender, the following, each in such
form and such detail as Agent or the Required Lenders shall reasonably
request:
(i) As soon as available and in no event later than fifty-five
(55) days after the last day of each fiscal quarter of Borrower, a
copy of the Financial Statements of Borrower and its Subsidiaries
(prepared on a consolidated basis) for such fiscal quarter and for the
fiscal year to date, certified by the chief financial officer or
treasurer of Borrower to present fairly the financial condition,
results of operations and other information reflected therein and to
have been prepared in accordance with GAAP (subject to normal year-end
audit adjustments);
(ii) As soon as available and in no event later than one hundred
(100) days after the close of each fiscal year of Borrower, (A) copies
of the audited Financial Statements of Borrower and its Subsidiaries
(prepared on a consolidated basis) for such fiscal year, prepared by
independent certified public accountants of recognized national
standing acceptable to Agent and (B) copies of the unqualified
opinions (or qualified opinions reasonably acceptable to Required
Lenders) and management letters delivered by such accountants in
connection with all such Financial Statements;
(iii) Contemporaneously with the quarterly and year-end
Financial Statements required by the foregoing clauses (i) and (ii), a
--------------------
compliance certificate of the chief financial officer or treasurer of
Borrower (a "Compliance Certificate") which (A) states that no Default
----------------------
has occurred and is continuing, or, if any such Default has occurred
and is continuing, a statement as to the nature thereof and what
action Borrower proposes to take with respect thereto; and (B) sets
---
forth, for the four-fiscal quarter period ending on the last day of
the fiscal quarter or fiscal year covered by such Financial Statements
or as of the last day of such fiscal quarter or fiscal year (as the
case may be), the calculation of the financial ratios and tests
provided in Paragraph 5.03;
--------------
(iv) As soon as possible and in no event later than ten (10)
Business Days after any officer of Borrower knows of the occurrence or
existence of (A) any Reportable Event under any Employee Benefit Plan
or Multiemployer Plan; (B) any actual or threatened litigation, suits,
claims or disputes against Borrower or any of its Subsidiaries
involving potential monetary damages payable by Borrower or its
Subsidiaries of $3,000,000 or more (alone or in the aggregate); (C)
any other event or condition which is reasonably likely to have a
Material Adverse Effect; or (D) any Default; the statement of the
chief financial officer or
46
treasurer of Borrower setting forth details of such event, condition
or Default and the action which Borrower proposes to take with respect
thereto;
(v) As soon as available and in no event later than five (5)
Business Days after they are sent, made available or filed, copies of
(A) all registration statements and reports filed by Borrower or any
of its Subsidiaries with any securities exchange or the Securities and
Exchange Commission (including, without limitation, all 10-Q, 10-K and
8-Q reports); and (B) all reports, proxy statements and financial
statements sent or made available by Borrower or any of its
Subsidiaries to its security holders;
(vi) As soon as available and in no event later than fifty-five
(55) days after the last day of each fiscal quarter, a certificate
which sets forth the calculation of the Funded Indebtedness/EBITDA
Ratio for the consecutive four-fiscal quarter period ending on the
last day of such quarter, certified by the chief financial officer or
treasurer of Borrower; and
(vii) Such other instruments, agreements, certificates,
opinions, statements, documents and information relating to the
operations or condition (financial or otherwise) of Borrower or its
Subsidiaries, and compliance by Borrower with the terms of this
Agreement and the other Credit Documents as Agent may from time to
time reasonably request.
(b) Books and Records. Borrower and its Subsidiaries shall at all
-----------------
times keep proper books of record and account in which full, true and
correct entries will be made of their transactions in accordance with GAAP.
(c) Inspections. Borrower and its Subsidiaries shall permit any
-----------
Person designated by any Lender, upon reasonable notice and during normal
business hours, to visit and inspect any of the properties and offices of
Borrower and its Subsidiaries, to examine the books and records of Borrower
and its Subsidiaries and make copies thereof and to discus the affairs,
finances and business of Borrower and its Subsidiaries with, and to be
advised as to the same by, their officers, auditors and accountants, all at
such times and intervals as any Lender may reasonably request.
(d) Insurance. Borrower and its Subsidiaries shall carry and maintain
---------
insurance of the types and in the amounts customarily carried from time to
time during the term of this Agreement by others engaged in substantially
the same business as such Person and operating in the same geographic area
as such Person, including, but not limited to, fire, public liability,
property damage and worker's compensation.
(e) Governmental Charges. Borrower and its Subsidiaries shall
--------------------
promptly pay and discharge when due all taxes and other Governmental
Charges prior to the date upon which penalties accrue thereon, except such
taxes and other Governmental Charges as may in good faith be contested or
disputed, or for which arrangements for deferred
47
payment have been made, provided that in each such case appropriate
reserves are maintained in accordance with GAAP.
(f) Use of Proceeds. Borrower shall use the proceeds of the Loans
---------------
only for the respective purposes set forth in Subparagraph 2.01(g) and
-------------------------
Subparagraph 2.02(g). Borrower shall not use any part of the proceeds of
--------------------
any Loan, directly or indirectly, for the purpose of purchasing or carrying
any Margin Stock or for the purpose of purchasing or carrying or trading in
any securities under such circumstances as to involve Borrower, any Lender
or Agent in a violation of Regulations T, U or X issued by the Federal
Reserve Board.
(g) General Business Operations. Each of Borrower and its
---------------------------
Subsidiaries shall (i) preserve and maintain its corporate existence and
all of its rights, privileges and franchises reasonably necessary to the
conduct of its business, (ii) conduct its business activities in compliance
with all Requirements of Law and Contractual Obligations applicable to such
Person, the violation of which is reasonably likely to have a Material
Adverse Effect and (iii) keep all property useful and necessary in its
business in good working order and condition, ordinary wear and tear
excepted. Borrower shall maintain its chief executive office and principal
place of business in the United States and shall not relocate its chief
executive office or principal place of business outside of California
except upon not less than thirty (30) days prior written notice to Agent.
(h) Pari Passu Ranking. Borrower shall take, or cause to be taken,
------------------
all actions necessary to ensure that the Obligations of Borrower are and
continue to rank at least pari passu in right of payment with all other
----------
unsecured Indebtedness of Borrower (including, without limitation,
Indebtedness evidenced by the Private Placement Notes).
5.02. Negative Covenants. Until the termination of this Agreement and
------------------
the satisfaction in full by Borrower of all Obligations, Borrower will comply,
and will cause compliance, with the following negative covenants, unless
Required Lenders shall otherwise consent in writing:
(a) Indebtedness. Neither Borrower nor any of its Subsidiaries shall
------------
create, incur, assume or permit to exist any Indebtedness, except for the
following ("Permitted Indebtedness"):
----------------------
(i) The Obligations of Borrower under the Credit Documents;
48
(ii) Indebtedness of Borrower and its Subsidiaries existing on
the date of this Agreement; provided that (A) such Indebtedness is
reflected in the audited Financial Statements of Borrower for the year
ended December 31, 1998 delivered to Agent pursuant to Paragraph 3.01
--------------
and (B) each item of such Indebtedness of $1,000,000 or more is listed
in Schedule 5.02(a);
----------------
(iii) Indebtedness of Borrower and its Subsidiaries arising from
the endorsement of instruments for collection in the ordinary course
of Borrower's or a Subsidiary's business;
(iv) Indebtedness of Borrower and its Subsidiaries for trade
accounts payable, provided that (A) such accounts arise in the
ordinary course of business and (B) no material part of any such
account is more than ninety (90) days past due (unless subject to a
bona fide dispute and for which adequate reserves have been
established);
(v) Indebtedness of Borrower and its Subsidiaries under Rate
Contracts, provided that all such Rate Contracts are entered into in
connection with bona fide hedging operations and not for speculation;
(vi) Indebtedness of Borrower and its Subsidiaries under
purchase money loans and Capital Leases incurred by Borrower or any of
its Subsidiaries to finance the acquisition by such Person of real
property, fixtures, equipment or Borrower's demonstration systems,
provided that (A) in each case involving real property, fixtures and
equipment, such Indebtedness is incurred by such Person at the time
of, or not later than thirty (30) days after, the acquisition by such
Person of the property so financed, (B) in each case, such
Indebtedness does not exceed the purchase price of the property so
financed and (C) the aggregate amount of such Indebtedness outstanding
at any time does not exceed $15,000,000;
(vii) Indebtedness of Borrower and its Subsidiaries under
initial or successive refinancings of any Indebtedness permitted by
clause (ii) above, provided that (A) the principal amount of any such
-----------
refinancing does not exceed the principal amount of the Indebtedness
being refinanced and (B) the material terms and provisions of any such
refinancing taken as a whole (including maturity, redemption,
prepayment, default and subordination provisions) are no less
favorable to the Lenders than the Indebtedness being refinanced;
(viii) Indebtedness of Borrower and its Subsidiaries with
respect to surety, appeal, indemnity, performance or other similar
bonds in the ordinary course of business;
(ix) Guaranty Obligations of Borrower in respect of Permitted
Indebtedness of its Subsidiaries;
49
(x) Indebtedness of Borrower to any of its Subsidiaries,
Indebtedness of any of Borrower's Subsidiaries to Borrower or
Indebtedness of any of Borrower's Subsidiaries to any of Borrower's
other Subsidiaries;
(xi) Indebtedness evidenced by the Private Placement Notes,
provided that (A) the Indebtedness arising under this Agreement shall
at all times rank at least pari passu in right of payment with the
---- -----
Indebtedness evidenced by such Private Placement Notes, (B) except as
required pursuant to Section 5.1 of the Note Purchase Agreement, no
principal payable in connection with the Indebtedness evidenced by
such Private Placement Notes is scheduled for payment on or prior to
the Term Loan Maturity Date, and (C) the aggregate principal amount of
---------
all such Indebtedness evidenced by the Private Placement Notes
outstanding at any time (measured at the time of the issuance of such
Private Placement Notes) does not exceed One Hundred Million Dollars
($100,000,000);
(xii) Indebtedness of Borrower under a "synthetic" lease
transaction involving the acquisition and construction of a new
headquarters facility; and
(xiii) Other Indebtedness of Borrower and its Subsidiaries
(whether or not of a type listed in clauses (i) through (xii) above),
-------------------------
provided that the aggregate principal amount of all such other
Indebtedness does not exceed $30,000,000 at any time.
(b) Liens. Neither Borrower nor any of its Subsidiaries shall create,
-----
incur, assume or permit to exist any Lien on or with respect to any of its
assets or property of any character, whether now owned or hereafter
acquired, except for the following ("Permitted Liens"):
---------------
(i) Liens in favor of Agent or any Lender securing the
Obligations;
(ii) Liens of Borrower and its Subsidiaries existing on the date
of this Agreement; provided that each Lien securing Indebtedness of
$100,000 or more is listed in Schedule 5.02(b);
----------------
(iii) Liens for taxes or other Governmental Charges not at the
time delinquent or thereafter payable without penalty or being
contested in good faith, provided that adequate reserves for the
payment thereof have been established in accordance with GAAP;
(iv) Liens of carriers, warehousemen, mechanics, materialmen,
vendors, and landlords and other similar Liens imposed by law incurred in
the ordinary course of business for sums not overdue or being contested in
good faith, provided that adequate reserves for the payment thereof have
been established in accordance with GAAP;
50
(v) Deposits under workers' compensation, employment insurance
and social security laws in the ordinary course of business;
(vi) Deposits to secure the performance of bids, tenders,
contracts (other than for the repayment of borrowed money) or leases or to
secure indemnity, performance or other similar bonds in the ordinary course
of business;
(vii) Deposits to secure, or in lieu of, surety, appeal or
customs bonds in proceedings involving Borrower or any of its Subsidiaries;
(viii) Zoning restrictions, easements, rights-of-way, title
irregularities and other similar encumbrances, which alone or in the
aggregate are not substantial in amount and do not materially detract from
the value of the property subject thereto or interfere with the ordinary
conduct of the business of Borrower or any of its Subsidiaries;
(ix) Banker's Liens and similar Liens (including set-off
rights) in respect of bank deposits;
(x) Liens on property or assets acquired by Borrower or any of
its Subsidiaries after the date of this Agreement or on property or assets
of any corporation which becomes a Subsidiary of Borrower after the date of
this Agreement, provided that (A) such Liens exist at the time such
property or assets or the stock of such corporation is acquired by Borrower
and (B) such Liens were not created in contemplation of such acquisition by
Borrower;
(xi) Judgement Liens, provided that such Liens do not
constitute an Event of Default under Subparagraph 6.01(h);
--------------------
(xii) Rights of vendors or lessors under conditional sale
agreements, Capital Leases or other title retention agreements, provided
that, in each case, (A) such rights secure or otherwise relate to Permitted
Indebtedness, (B) such rights do not extend to any property other than
property acquired with the proceeds of such Permitted Indebtedness and (C)
such rights do not secure any Indebtedness other than such Permitted
Indebtedness;
(xiii) Liens in favor of customs and revenue authorities arising
as a matter of law to secure payment of customs duties and in connection
with the importation of goods in the ordinary course of Borrower's and its
Subsidiaries' businesses;
(xiv) Liens securing Indebtedness which constitutes Permitted
Indebtedness under clause (vi) of Subparagraph 5.02(a) provided that, in
-----------------------------------
each case, such Lien (A) covers only those assets, the acquisition of which
was
51
financed by such Permitted Indebtedness, and (B) secures only such
Permitted Indebtedness;
(xv) Liens on the property or assets of any Subsidiary of Borrower
in favor of Borrower or any other Subsidiary of Borrower;
(xvi) Liens incurred in connection with the extension, renewal or
refinancing of the Indebtedness secured by the Liens described in clause
------
(ii) or (xiv) above, provided that any extension, renewal or replacement
-------------
Lien (A) is limited to the property covered by the existing Lien and (B)
secures Indebtedness which is no greater in amount and has material terms
no less favorable to the Lenders than the Indebtedness secured by the
existing Lien;
(xvii) Liens in the property that is the subject of the "synthetic"
lease referred in clause (xii) of Subparagraph 5.02(a) and in any related
------------------------------------
property; and
(xviii) Liens on insurance proceeds in favor of insurance companies
with respect to the financing of insurance premiums.
(c) Asset Dispositions. Neither Borrower nor any of its Subsidiaries
------------------
shall sell, lease, transfer or otherwise dispose of any of its assets or
property, whether now owned or hereafter acquired, except for the
following:
(i) Sales of inventory by Borrower and its Subsidiaries in the
ordinary course of their businesses;
(ii) Sales of surplus, damaged, worn or obsolete equipment or
inventory for not less than fair market value;
(iii) Sales or other dispositions of Investments permitted by
clauses (i), (ii), (iii) and (iv) of Subparagraph 5.02(e) for not less than
---------------------------------------------------------
fair market value;
(iv) Sales or assignments of defaulted receivables to a collection
agency in the ordinary course of business;
(v) Sales of lease receivables, provided that (A) no Default has
occurred and is continuing at the time of, or will arise as a result of,
any such sale and (B) each such sale is for not less than fair market
value;
(vi) Sales or other dispositions of assets and property by
Borrower to any of Borrower's Subsidiaries or by any of Borrower's
Subsidiaries to Borrower or any of its other Subsidiaries;
(vii) Sales, leases, transfers or other disposition of the property
that is the subject of the "synthetic" lease transaction referred in clause
------
(xii) of
--------
52
Subparagraph 5.02(a) and in any related property solely in connection with
--------------------
such "synthetic" lease transaction; and
(viii) Other sales, leases, transfers and disposals of assets and
property, provided that the aggregate value of all such assets and property
(based upon the greater of the fair market or book value of such assets and
property) so sold, leased, transferred or otherwise disposed of in any
fiscal year does not exceed $10,000,000.
(d) Mergers, Acquisitions, Etc. Neither Borrower nor any of its
--------------------------
Subsidiaries shall consolidate with or merge into any other Person or permit any
other Person to merge into it, acquire any Person as a new Subsidiary or acquire
all or substantially all of the assets of any other Person, except for the
following:
(i) Any wholly-owned Subsidiary of Borrower may merge into Borrower
or any other wholly-owned Subsidiary of Borrower; and
(ii) Borrower or any of its Subsidiaries may acquire other Persons
and all or substantially all of the assets of other Persons, provided that
(A) no Default has occurred and is continuing at the time of, or will arise
as a result of any such acquisition and (B) the aggregate cost to Borrower
and its Subsidiaries of all such acquisitions in any fiscal year does not
exceed 7.5% of Borrower's Tangible Net Worth on the last day of the
immediately preceding fiscal year.
(e) Investments. Neither Borrower nor any of its Subsidiaries shall
-----------
make any Investment except for Investments in the following:
(i) Investments of Borrower and its Subsidiaries in Cash
Equivalents;
(ii) Investments permitted by the investment policy attached hereto
as Exhibit D, provided that such policy has been approved by the Board of
---------
Directors of Borrower;
(iii) Investments of Borrower and its Subsidiaries existing on the
date of this Agreement; provided that (A) such Investments are reflected in
the audited Financial Statements of Borrower for the year ended December
31, 1998 delivered to Agent pursuant to Paragraph 3.01 and (B) each
--------------
Investment of $1,000,000 or more, is listed in Schedule 5.02(e);
----------------
(iv) Investments received by Borrower and its Subsidiaries in
connection with the bankruptcy or reorganization of customers and suppliers
and in settlement of delinquent obligations of, and other disputes with,
customers and suppliers arising in the ordinary course of business;
53
(v) Investments arising from rights received by Borrower and its
Subsidiaries upon the required payment of any permitted Contingent
Obligations of Borrower and its Subsidiaries;
(vi) Investments by Borrower and its Subsidiaries in Subsidiaries of
Borrower and Investments by Borrower's Subsidiaries in Borrower;
(vii) Investments consisting of loans to employees, officers and
directors, the proceeds of which shall be used to purchase equity
securities of Borrower or its Subsidiaries and other loans or advances of
funds to employees, officers and directors;
(viii) Investments in receivables arising from the sale of goods in
international markets in the ordinary course of business;
(ix) Investments permitted by Subparagraph 5.02(a) or Subparagraph
-------------------- ------------
5.02(d); and
-------
(x) Other Investments, provided that the aggregate amount of such
other Investments incurred in any fiscal year does not exceed $25,000,000.
(f) Dividends, Redemptions, Etc. Neither Borrower nor any of its
---------------------------
Subsidiaries shall pay any dividends or make any distributions on its
Equity Securities; purchase, redeem, retire, defease or otherwise acquire
for value any of its Equity Securities; return any capital to any holder of
its Equity Securities as such; make any distribution of assets, Equity
Securities, obligations or securities to any holder of its Equity
Securities as such; or set apart any sum for any such purpose; except as
follows:
(i) Either Borrower or any of its Subsidiaries may pay dividends on
its capital stock payable solely in such Person's own capital stock;
(ii) Any Subsidiary of Borrower may pay dividends to Borrower; and
(iii) Borrower may repurchase shares of its outstanding common stock,
provided that (A) no Default has occurred and is continuing at the time of,
or will arise as a result of, any such repurchase; (B) the Borrower's
Funded Indebtedness/EBITDA Ratio for the four-fiscal quarter period most
recently ended prior to the date of such purchase, as reflected in the most
recent Compliance Certificate delivered to Agent pursuant to clause (iii)
------------
of Subparagraph 5.01(a), is less than 2.00 to 1.00; and (C) the aggregate
-----------------------
cost of all such repurchases after the date of this Agreement does not
exceed $45,000,000.
(g) Change in Business. Neither Borrower nor any of its Subsidiaries
------------------
shall engage, either directly or indirectly through Affiliates, in any
business substantially different from its present business.
54
(h) ERISA. Neither Borrower nor any ERISA Affiliate shall (i) adopt
-----
or institute any Employee Benefit Plan that is an employee pension benefit
plan within the meaning of Section 3(2) of ERISA, (ii) take any action
which will result in the partial or complete withdrawal, within the
meanings of sections 4203 and 4205 of ERISA, from a Multiemployer Plan,
(iii) engage or permit any Person to engage in any transaction prohibited
by section 406 of ERISA or section 4975 of the IRC involving any Employee
Benefit Plan or Multiemployer Plan which would subject either Borrower or
any ERISA Affiliate to any tax, penalty or other liability including a
liability to indemnify, (iv) incur or allow to exist any accumulated
funding deficiency (within the meaning of section 412 of the IRC or section
302 of ERISA), (v) fail to make full payment when due of all amounts due as
contributions to any Employee Benefit Plan or Multiemployer Plan, (vi) fail
to comply with the requirements of section 4980B of the IRC or Part 6 of
Title I(B) of ERISA, or (vii) adopt any amendment to any Employee Benefit
Plan which would require the posting of security pursuant to section
401(a)(29) of the IRC, where, singly or cumulatively, any such actions
described above would have a Material Adverse Effect.
(i) Transactions With Affiliates. Neither Borrower nor any of its
----------------------------
Subsidiaries shall enter into any Contractual Obligation with any Affiliate
or engage in any other transaction with any Affiliate except upon terms at
least as favorable to Borrower or such Subsidiary as such terms in an arms-
length transaction with unaffiliated Persons.
(j) Accounting Changes. Neither Borrower nor any of its Subsidiaries
------------------
shall change (i) its fiscal year (currently January 1 through December 31)
or (ii) its accounting practices except as required by GAAP.
(k) Indebtedness Payments, Etc. Neither Borrower nor any of its
---------------------------
Subsidiaries shall (i) except as required pursuant to Section 5.1 of the
Note Purchase Agreement, prepay, redeem, purchase, defease or otherwise
satisfy in any manner prior to the scheduled payment thereof any
Indebtedness evidenced by the Private Placement Notes; (ii) cause or permit
to occur any event or condition that would grant to the holders of the
Private Placement Notes the right to require Borrower or any of its
Subsidiaries to prepay, redeem, purchase, defease or otherwise satisfy in
any manner prior to the scheduled payment thereof any Indebtedness
evidenced by the Private Placement Notes, unless such prepayment,
redemption, purchase, defeasance or other satisfaction would be permitted
by clause (i) above; or (iii) amend, modify or otherwise change any of the
----------
provisions of the Private Placement Notes or any document, instrument or
agreement related to the Private Placement Notes in a manner which
adversely affects the material rights of Agent or the Lenders.
5.03. Financial Covenants. Until the termination of this Agreement and
-------------------
the satisfaction in full by Borrower of all Obligations, Borrower will comply,
and will cause compliance, with the following financial covenants, unless
Required Lenders shall otherwise consent in writing:
55
(a) Current Ratio. Borrower shall not permit its Current Ratio to be
-------------
less than 1.25 to 1.00 on the last day of any fiscal quarter.
(b) Funded Indebtedness/EBITDA Ratio. Borrower shall not permit its
--------------------------------
Funded Indebtedness/EBITDA Ratio to be greater than 2.50 to 1.00;
provided, however, that if Borrower enters into a "synthetic" lease
-------- -------
transaction of the type described in clause (xii) of Subparagraph 5.02(a),
------------------------------------
then on and after the effective date of such "synthetic" lease transaction
Borrower shall not permit its Funded Indebtedness/EBITDA Ratio to be
greater than 3.00 to 1.00.
(c) Fixed Charge Coverage Ratio. Borrower shall not permit its Fixed
---------------------------
Charge Coverage Ratio for any consecutive four-fiscal quarter period ending
on the date of each quarter to be less than the ratio set forth opposite
such period below:
Quarters ending on June 30, 1999,
September 30, 1999, December 31,
1999 and March 31, 2000 2.00 to 1.00;
Quarters ending on June 30, 2000 and
September 30, 2000 1.85 to 1.00;
Each quarter thereafter 2.00 to 1.00.
-----------------------
(d) Tangible Net Worth. Borrower shall not permit its Tangible Net
------------------
Worth on the last day of any fiscal quarter (such date to be referred to
herein as a "determination date") which occurs after December 31, 1998
(such date to be referred to herein as the "base date") to be less than the
sum on such determination date of the following:
(i) One Hundred Eighty Three Million Dollars ($183,000,000);
plus
----
(ii) Eighty percent (80%) of the sum of Borrower's consolidated
quarterly net income (ignoring any quarterly losses) for each fiscal
quarter after the base date through and including the fiscal quarter ending
immediately prior to the determination date;
plus
----
(iii) One hundred percent (100%) of the Net Proceeds of all
Equity Securities issued by Borrower and its Subsidiaries (to Persons other
than Borrower or its Subsidiaries) during the period commencing on the base
date and ending on the determination date;
minus
-----
56
(iv) The aggregate cost to Borrower of repurchasing its common stock
to the extent permitted by clause (iii) of Subparagraph 5.02(f).
------------------------------------
SECTION VI. DEFAULT.
-------
6.01. Events of Default. The occurrence or existence of any one or
-----------------
more of the following shall constitute an "Event of Default" hereunder:
----------------
(a) Non-Payment. Borrower shall (i) fail to pay when due any principal
-----------
of any Loan, (ii) fail to pay within two (2) Business Days after the same
becomes due, any interest or fees required under the terms of this
Agreement or any of the other Credit Documents, or (iii) fail to pay within
three (3) Business Days after the same becomes due, any other amount
required under the terms of this Agreement or any of the other Credit
Documents; or
(b) Specific Defaults. Borrower or any of its Subsidiaries shall fail
-----------------
to observe or perform any covenant, obligation, condition or agreement set
forth in Subparagraph 5.01(d), Paragraph 5.02 or Paragraph 5.03; or
------------------------------------------------------
(c) Other Defaults. Borrower or any of its Subsidiaries shall fail to
--------------
observe or perform any other covenant, obligation, condition or agreement
contained in this Agreement or the other Credit Documents and such failure
shall continue for fifteen (15) days after Borrower first knows (whether
through a notice from Agent or otherwise) or should have known of such
failure; or
(d) Representations and Warranties. Any representation, warranty,
------------------------------
certificate, information or other statement (financial or otherwise) made
or furnished by or on behalf of Borrower or any of its Subsidiaries to
Agent or any Lender in or in connection with this Agreement or any of the
other Credit Documents, or as an inducement to Agent or any Lender to enter
into this Agreement, shall be false, incorrect, incomplete or misleading in
any material respect when made or furnished; or
(e) Cross-Default. (i) Borrower or any of its Subsidiaries shall fail
-------------
to make any payment when due on account of any Indebtedness of such Person
(other than the Obligations) and such failure shall continue beyond any
period of grace provided with respect thereto, if the amount of such
Indebtedness exceeds $3,000,000 or the effect of such failure is to cause,
or permit the holder or holders thereof to cause, Indebtedness of Borrower
and its Subsidiaries (other than the Obligations) in an aggregate amount
exceeding $3,000,000 to become due or (ii) Borrower or any of its
Subsidiaries shall otherwise fail to observe or perform any agreement, term
or condition contained in any agreement or instrument relating to any
Indebtedness of such Person (other than the Obligations), or any other
event shall occur or condition shall exist, if the effect of such failure,
event or condition is to cause, or permit the holder or holders thereof to
cause,
57
Indebtedness of Borrower and its Subsidiaries (other than the Obligations)
in an aggregate amount exceeding $3,000,000 to become due (and/or to be
secured by cash collateral); or
(f) Insolvency, Voluntary Proceedings. Borrower or any of its
---------------------------------
Subsidiaries shall (i) apply for or consent to the appointment of a
receiver, trustee, liquidator or custodian of itself or of all or a
substantial part of its property, (ii) be unable, or admit in writing its
inability, to pay its debts generally as they mature, (iii) make a general
assignment for the benefit of its or any of its creditors, (iv) be
dissolved or liquidated in full or in part, (v) become insolvent (as such
term may be defined or interpreted under any applicable statue), (vi)
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 consent to any such relief or to the appointment of or taking possession
of its property by any official in an involuntary case or other proceeding
commenced against it, or (vi) take any action for the purpose of effecting
any of the foregoing; or
(g) Involuntary Proceedings. Proceedings for the appointment of a
-----------------------
receiver, trustee, liquidator or custodian of Borrower or any of its
Subsidiaries or of all or a substantial part of the property thereof, or an
involuntary case or other proceedings seeking liquidation, reorganization
or other relief with respect to Borrower or any of its Subsidiaries or the
debts thereof under any bankruptcy, insolvency or other similar law now or
hereafter in effect shall be commenced and an order for relief entered or
such proceeding shall not be dismissed or discharged within sixty (60) days
of commencement; or
(h) Judgments. (i) One or more judgments, orders, decrees or
---------
arbitration awards requiring Borrower and/or its Subsidiaries to pay an
aggregate amount of $3,000,000 or more shall be rendered against Borrower
and/or any of its Subsidiaries in connection with any single or related
series of transactions, incidents or circumstances and the same shall not
be vacated or stayed for a period of thirty (30) consecutive days; (ii) any
judgment, writ, assessment, warrant of attachment, tax lien or execution or
similar process shall be issued or levied against a substantial part of the
property of Borrower or any of its Subsidiaries and the same shall not be
released, stayed, vacated or otherwise dismissed within thirty (30) days
after issue or levy; or (iii) any other judgments, orders, decrees,
arbitration awards, writs, assessments, warrants of attachment, tax liens
or executions or similar processes which, alone or in the aggregate, are
reasonably likely to have a Material Adverse Effect are rendered, issued or
levied; or
(i) Credit Documents. Any Credit Document or any material term
----------------
thereof shall cease to be, or be asserted by Borrower or any of its
Subsidiaries not to be, a legal, valid and binding obligation of Borrower
or any of its Subsidiaries enforceable in accordance with its terms; or
(j) ERISA. Any Reportable Event which constitutes grounds for the
-----
termination of any Employee Benefit Plan by the PBGC or for the appointment
of a
58
trustee by the PBGC to administer any Employee Benefit Plan shall occur, or
any Employee Benefit Plan shall be terminated within the meaning of Title
IV of ERISA or a trustee shall be appointed by the PBGC to administer any
Employee Benefit Plan; or
(k) Change of Control. Any Change of Control shall occur.
-----------------
6.02. Remedies. At any time after the occurrence and during the
--------
continuance of any Event of Default (other than an Event of Default referred to
in Subparagraph 6.01(f) or 6.01(g)), Agent may, with the consent of the Required
--------------------------------
Lenders, or shall, upon instructions from the Required Lenders, by written
notice to Borrower, (a) terminate the Commitments and the obligations of the
Lenders to make Loans and/or (b) declare all outstanding Obligations payable by
Borrower to be immediately due and payable without presentment, demand, protest
or any other notice of any kind, all of which are hereby expressly waived,
anything contained herein or in the Notes to the contrary notwithstanding. Upon
the occurrence or existence of any Event of Default described in Subparagraph
------------
6.01(f) or 6.01(g), immediately and without notice, (1) the Commitments and the
------------------
obligations of the Lenders to make Loans shall automatically terminate and (2)
all outstanding Obligations payable by Borrower hereunder shall automatically
become immediately due and payable, without presentment, demand, protest or any
other notice of any kind, all of which are hereby expressly waived, anything
contained herein or in the Notes to the contrary notwithstanding. In addition to
the foregoing remedies, upon the occurrence or existence of any Event of
Default, Agent may exercise any other right, power or remedy available to it
under any of the Credit Documents or otherwise by law, either by suit in equity
or by action at law, or both.
SECTION VII. THE AGENT AND RELATIONS AMONG LENDERS.
-------------------------------------
7.01. Appointment, Powers and Immunities. Each Lender hereby appoints
----------------------------------
and authorizes Agent to act as its agent hereunder and under the other Credit
Documents with such powers as are expressly delegated to Agent by the terms of
this Agreement and the other Credit Documents, together with such other powers
as are reasonably incidental thereto. Agent shall not have any duties or
responsibilities except those expressly set forth in this Agreement or in any
other Credit Document, be a trustee for any Lender or have any fiduciary duty to
any Lender. Notwithstanding anything to the contrary contained herein Agent
shall not be required to take any action which is contrary to this Agreement or
any other Credit Document or any applicable Governmental Rule. Neither Agent
nor any Lender shall be responsible to any other Lender for any recitals,
statements, representations or warranties made by Borrower or any of its
Subsidiaries contained in this Agreement or in any other Credit Document, for
the value, validity, effectiveness, genuineness, enforceability or sufficiency
of this Agreement or any other Credit Document or for any failure by Borrower or
any of its Subsidiaries to perform their respective obligations hereunder or
thereunder. Agent may employ agents and attorneys-in-fact and shall not be
responsible to any Lender for the negligence or misconduct of any such agents or
attorneys-in-fact selected by it with reasonable care. Neither Agent nor any of
its directors, officers, employees, agents or advisors shall be responsible to
any Lender for any action taken or omitted to be taken by it or them hereunder
or under any other Credit Document or in connection herewith or therewith,
except for its or their own gross negligence or willful misconduct. Except
59
as otherwise provided under this Agreement, Agent shall take such action with
respect to the Credit Documents as shall be directed by the Required Lenders.
7.02. Reliance by Agent. Agent shall be entitled to rely upon any
-----------------
certificate, notice or other document (including any cable, telegram, facsimile
or telex) believed by it in good faith to be genuine and correct and to have
been signed or sent by or on behalf of the proper Person or Persons, and upon
advice and statements of legal counsel, independent accountants and other
experts selected by Agent with reasonable care. As to any other matters not
expressly provided for by this Agreement, Agent shall not be required to take
any action or exercise any discretion, but shall be required to act or to
refrain from acting upon instructions of the Required Lenders and shall in all
cases be fully protected by the Lenders in acting, or in refraining from acting,
hereunder or under any other Credit Document in accordance with the instructions
of the Required Lenders, and such instructions of the Required Lenders and any
action taken or failure to act pursuant thereto shall be binding on all of the
Lenders.
7.03. Defaults. Agent shall not be deemed to have knowledge or notice
--------
of the occurrence of any Default unless Agent has received a written notice from
a Lender or Borrower, referring to this Agreement, describing such Default and
stating that such notice is a "Notice of Default". If Agent receives such a
notice of the occurrence of a Default, Agent shall give prompt notice thereof to
the Lenders. Agent shall take such action with respect to such Default as shall
be reasonably directed by the Required Lenders; provided, however, that until
-------- -------
Agent shall have received such directions, Agent may (but shall not be obligated
to) take such action, or refrain from taking such action, with respect to such
Default as it shall deem advisable in the best interest of the Lenders.
7.04. Indemnification. Without limiting the Obligations of Borrower
---------------
hereunder, each Lender agrees to indemnify Agent, ratably in accordance with
their Proportionate Shares, for any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever which may at any time be imposed on, incurred
by or asserted against Agent in any way relating to or arising out of this
Agreement or any documents contemplated by or referred to herein or therein or
the transactions contemplated hereby or thereby or the enforcement of any of the
terms hereof or thereof; provided, however, that no Lender shall be liable for
-------- -------
any of the foregoing to the extent they arise from Agent's gross negligence or
willful misconduct. Agent shall be fully justified in refusing to take or in
continuing to take any action hereunder unless it shall first be indemnified to
its satisfaction by the Lenders against any and all liability and expense which
may be incurred by it by reason of taking or continuing to take any such action.
The obligations of each Lender under this Paragraph 7.04 shall survive the
--------------
payment and performance of the Obligations, the termination of this Agreement
and any Lender ceasing to be a party to this Agreement (with respect to events
which occurred prior to the time such Lender ceased to be a Lender hereunder).
7.05. Non-Reliance. Each Lender represents that it has, independently
------------
and without reliance on Agent, or any other Lender, and based on such documents
and information as it has deemed appropriate, made its own appraisal of the
business, prospects, management, financial condition and affairs of Borrower and
the Subsidiaries and its own decision to enter into this Agreement and agrees
that it will, independently and without reliance upon Agent or any
60
other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own appraisals and decisions in
taking or not taking action under this Agreement. Neither Agent nor any of its
affiliates nor any of their respective directors, officers, employees, agents or
advisors shall (a) be required to keep any Lender informed as to the performance
or observance by Borrower or any of its Subsidiaries of the obligations under
this Agreement or any other document referred to or provided for herein or to
make inquiry of, or to inspect the properties or books of Borrower or any of its
Subsidiaries; (b) have any duty or responsibility to provide any Lender with any
credit or other information concerning Borrower or any of its Subsidiaries which
may come into the possession of Agent, except for notices, reports and other
documents and information expressly required to be furnished to the Lenders by
Agent hereunder; or (c) be responsible to any Lender for (i) any recital,
statement, representation or warranty made by Borrower or any officer, employee
or agent of Borrower in this Agreement or in any of the other Credit Documents,
(ii) the value, validity, effectiveness, genuineness, enforceability or
sufficiency of this Agreement or any Credit Document, (iii) the value or
sufficiency of any collateral or the validity or perfection of any of the liens
or security interests intended to be created by the Credit Documents, or (iv)
any failure by Borrower to perform its obligations under this Agreement or any
other Credit Document.
7.06. Resignation or Removal of Agent. Agent may resign at any time by
-------------------------------
giving thirty (30) days prior written notice thereof to Borrower and the
Lenders, and Agent may be removed at any time with or without cause by the
Required Lenders. Upon any such resignation or removal, the Required Lenders
shall have the right to appoint a successor Agent, which Agent, if not a Lender,
shall be reasonably acceptable to Borrower; provided, however, that Borrower
-------- -------
shall have no right to approve a successor Agent if a Default has occurred and
is continuing. Upon the acceptance of any appointment as Agent hereunder by a
successor Agent, such successor Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring Agent,
and the retiring Agent shall be discharged from the duties and obligations
thereafter arising hereunder. After any retiring Agent's resignation or removal
hereunder as Agent, the provisions of this Section VII shall continue in effect
-----------
for its benefit in respect of any actions taken or omitted to be taken by it
while it was acting as Agent.
7.07. Authorization. Agent is hereby authorized by the Lenders to
-------------
execute, deliver and perform, each of the Credit Documents to which Agent is or
is intended to be a party and each Lender agrees to be bound by all of the
agreements of Agent contained in the Credit Documents.
7.08. Agent in its Individual Capacity. Agent and its affiliates may
--------------------------------
make loans to, accept deposits from and generally engage in any kind of banking
or other business with Borrower and its Subsidiaries and affiliates as though
Agent were not Agent hereunder. With respect to Loans, if any, made by Agent in
its capacity as a Lender, Agent in its capacity as a Lender shall have the same
rights and powers under this Agreement and the other Credit Documents as any
other Lender and may exercise the same as though it were not Agent, and the
terms "Lender" or "Lenders" shall include Agent in its capacity as a Lender.
61
SECTION VIII. MISCELLANEOUS.
-------------
8.01. Notices. Except as otherwise provided herein, all notices,
-------
requests, demands, consents, instructions or other communications to or upon
Borrower, any Lender or Agent under this Agreement or the other Credit Documents
shall be in writing and faxed, mailed or delivered, if to Borrower or Agent, at
its respective facsimile number or address set forth below or, if to any Lender,
at the address or facsimile number specified beneath the heading "Address for
Notices" under the name of such Lender in Schedule I (or to such other facsimile
----------
number or address for any party as indicated in any notice given by that party
to the other parties). All such notices and communications shall be effective
(a) when sent by Federal Express or other overnight courier of recognized
standing, on the Business Day following the deposit with such service; (b) when
mailed, first class postage prepaid and addressed as aforesaid through the
United States Postal Service, upon receipt; (c) when delivered by hand, upon
delivery; and (d) when faxed, upon confirmation of receipt; provided, however,
-------- -------
that any notice delivered to Agent under Section II shall not be effective until
----------
received by Agent.
Agent: ABN AMRO Bank N.V.
Capital Markets-Syndications Group
0000 Xxxxxx xx xxx Xxxxxxxx, 0xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxx Xxxxxxxx
Telephone: (000) 000-0000
Fax: (000) 000-0000
With a copy to:
ABN AMRO Bank N.V.
000 Xxxxxxxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxxxx, XX 00000-0000
Attn: Xxxx Xxxxxxxxx
Telephone: (000) 000-0000
Fax: (000) 000-0000
62
and
ABN AMRO Bank N.V.
000 Xxxxx XxXxxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, XX 00000-0000
Attn: Xxxxxx Xxxxxxx, Credit Administration
Telephone: (000) 000-0000
Fax: (000) 000-0000
Borrower: If by courier:
Acuson Corporation
0000 Xxxxxxxxxx Xxxx
Xxxxxxxx Xxxx, XX 00000
Attn: Treasurer
If by mail:
Acuson Corporation
X.X. Xxx 0000
Xxxxxxxx Xxxx, XX 00000-0000
Attn: Treasurer
Telephone: (000) 000-0000
Fax: (000) 000-0000
With a copy to:
Xxxxxx Godward LLP
Xxx Xxxxxxxx Xxxxx, 00xx Xxxxx
Xxx Xxxxxxxxx, XX 00000-0000
Attn: Xxxxxx X. Xxxxxxx, Esq.
Telephone: (000) 000-0000
Fax: (000) 000-0000
Each Notice of Borrowing, Notice of Conversion and Notice of Interest Period
Selection shall be given by Borrower to Agent's office located at the address
referred to above during Agent's normal business hours; provided, however, that
-------- -------
any such notice received by Agent after 1:00 p.m. on any Business Day shall be
deemed received by Agent on the next Business Day. In any case where this
Agreement authorizes notices, requests, demands or other communications by
Borrower to Agent or any Lender to be made by telephone or facsimile, Agent or
any Lender may conclusively presume that anyone purporting to be a person
designated in any incumbency certificate or other similar document received by
Agent or a Lender is such a person.
8.02. Expenses. Borrower shall pay on demand, whether or not any Loan
--------
is made hereunder, (a) all reasonable out-of-
63
pocket fees and expenses, including reasonable out-of-pocket attorneys' fees and
expenses, incurred by Agent in connection with the preparation, negotiation,
execution and delivery of, and the exercise of its duties under, this Agreement
and the other Credit Documents, and the preparation, negotiation, execution and
delivery of amendments and waivers hereunder and thereunder and (b) all
reasonable out-of-pocket fees and expenses, including reasonable out-of-pocket
attorneys' fees and expenses, incurred by Agent and the Lenders in the
enforcement or attempted enforcement of any of the Obligations or in preserving
any of Agent's or the Lenders' rights and remedies (including, without
limitation, all such fees and expenses incurred in connection with any "workout"
or restructuring affecting the Credit Documents or the Obligations or any
bankruptcy or similar proceeding involving Borrower or any of its Subsidiaries).
The obligations of Borrower under this Paragraph 8.02 shall survive the payment
--------------
and performance of the Obligations and the termination of this Agreement.
8.03. Indemnification. To the fullest extent permitted by law,
---------------
Borrower agrees to protect, indemnify, defend and hold harmless Agent, the
Lenders and their Affiliates and their respective directors, officers,
employees, agents and advisors ("Indemnitee") from and against any and all
----------
liabilities, losses, damages or expenses of any kind or nature and from any
suits, claims or demands (including in respect of or for reasonable attorney's
fees and other expenses) arising on account of or in connection with any matter
or thing or action or failure to act by Indemnitee, or any of them, arising out
of or relating to the Credit Documents or any transaction contemplated thereby,
including without limitation any use by Borrower of any proceeds of the Loans,
except to the extent such liability arises from the willful misconduct or gross
negligence of such Indemnitee. Upon receiving knowledge of any suit, claim or
demand asserted by a third party that Agent or any Lender believes is covered by
this indemnity, Agent or such Lender shall give Borrower notice of the matter
and an opportunity to defend it, at Borrower's sole cost and expense, with legal
counsel satisfactory to Agent or such Lender, as the case may be. Agent or such
Lender may also require Borrower to defend the matter. Any failure or delay of
Agent or any Lender to notify Borrower of any such suit, claim or demand shall
not relieve Borrower of its obligations under this Paragraph 8.03 but shall
--------------
reduce such obligations to the extent of any increase in those obligations
caused solely by any such failure or delay which is unreasonable. The
obligations of Borrower under this Paragraph 8.03 shall survive the payment and
--------------
performance of the Obligations and the termination of this Agreement.
8.04. Waivers; Amendments. Any term, covenant, agreement or condition
-------------------
of this Agreement or any other Credit Document may be amended or waived, and any
consent under this Agreement or any other Credit Document may be given, if such
amendment, waiver or consent is in writing and is signed by Borrower and the
Required Lenders (or Agent on behalf of the Required Lenders with the written
approval of the Required Lenders); provided, however that:
-------- -------
(a) Any amendment, waiver or consent which would (i) increase the
Total Commitment, (ii) extend the Revolving Loan Maturity Date (other than
as provided in Subparagraph 2.01(h)) or the Term Loan Maturity Date, (iii)
reduce the principal of or interest on any Loan or any fees or other
amounts payable for the account of the Lenders hereunder, (iv) extend any
scheduled principal, interest or fee payment date, (v)
64
amend this Paragraph 8.04, or (vi) amend the definition of Required
--------------
Lenders, must be in writing and signed or approved in writing by all
Lenders;
(b) Any amendment, waiver or consent which increases or decreases the
Proportionate Share of any Lender must be in writing and signed by such
Lender; and
(c) Any amendment, waiver or consent which affects the rights or
obligations of Agent must be in writing and signed by Agent.
No failure or delay by Agent or any Lender in exercising any right under this
Agreement or any other Credit Document shall operate as a waiver thereof or of
any other right hereunder or thereunder nor shall any single or partial exercise
of any such right preclude any other further exercise thereof or of any other
right hereunder or thereunder. Unless otherwise specified in such waiver or
consent, a waiver or consent given hereunder shall be effective only in the
specific instance and for the specific purpose for which given.
8.05. Successors and Assigns.
----------------------
(a) Binding Effect. This Agreement and the other Credit Documents
--------------
shall be binding upon and inure to the benefit of Borrower, the Lenders,
Agent, all future holders of the Notes and their respective successors and
permitted assigns, except that Borrower may not assign or transfer any of
its rights or obligations under any Credit Document without the prior
written consent of Agent and each Lender. All references in this Agreement
to any Person shall be deemed to include all successors and assigns of such
Person.
(b) Participations. Any Lender may at any time sell to one or more
--------------
banks or other financial institutions ("Participants") participating
------------
interests in any Loan owing to such Lender, any Note held by such Lender,
any Commitment of such Lender or any other interest of such Lender under
this Agreement and the other Credit Documents. In the event of any such
sale by a Lender of participating interests, such Lender's obligations
under this Agreement shall remain unchanged, such Lender shall remain
solely responsible for the performance thereof, such Lender shall remain
the holder of its Notes for all purposes under this Agreement and Borrower
and 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 such sale is effected may require the
selling Lender to obtain the consent of the Participant in order for such
Lender to agree in writing to any amendment, waiver or consent of a type
specified in clause (i), (ii), (iii) or (iv) of Subparagraph 8.04(a) but
-------------------------------------------------------
may not otherwise require the selling Lender to obtain the consent of such
Participant to any other amendment, waiver or consent hereunder. Borrower
agrees that if amounts outstanding under this Agreement and the other
Credit Documents are not paid when due (whether upon acceleration or
otherwise), each Participant shall, to the fullest extent permitted by law,
be deemed to have the right of setoff in respect of its participating
interest in amounts owing under this Agreement and any other Credit
Documents to the same extent
65
as if the amount of its participating interest were owing directly to it as
a Lender under this Agreement or any other Credit Documents; provided,
--------
however, that (i) no Participant shall exercise any rights under this
-------
sentence without the consent of Agent, (ii) no Participant shall have any
rights under this sentence which are greater than those of the selling
Lender and (iii) such rights of setoff shall be subject to the obligation
of such Participant to share the payment so obtained with all of the
Lenders as provided in Subparagraph 2.09(b). Borrower also agrees that any
--------------------
Lender which has transferred any participating interest in its Commitment
or Loans shall, notwithstanding any such transfer, be entitled to the full
benefits accorded such Lender under Paragraph 2.10, Paragraph 2.11, and
-----------------------------------
Paragraph 2.12, as if such Lender had not made such transfer.
--------------
(c) Assignments. Any Lender may, at any time, sell and assign to any
-----------
Lender or any Eligible Assignee (individually, an "Assignee Lender") all or
---------------
a portion of its rights and obligations under this Agreement and the other
Credit Documents (such a sale and assignment to be referred to herein as an
"Assignment") pursuant to an assignment agreement in the form of Exhibit E
---------- ---------
(an "Assignment Agreement"), executed by each Assignee Lender and such
--------------------
assignor Lender (an "Assignor Lender") and delivered to Agent for its
---------------
acceptance and recording in the Register; provided, however, that:
-------- -------
(i) Without the written consent of Agent and, if no Default has
occurred and is continuing, Borrower (which consent of Agent and Borrower
shall not be unreasonably withheld), no Lender may make any Assignment to
any Assignee Lender which is not, immediately prior to such Assignment, a
Lender hereunder or an Affiliate thereof; or
(ii) Without the written consent of Agent and, if no Default has
occurred and is continuing, Borrower (which consent of Agent and Borrower
shall not be unreasonably withheld), no Lender may make any Assignment to
any Assignee Lender if, after giving effect to such Assignment, the
Commitment of such Lender or such Assignee Lender would be less than Ten
Million Dollars ($10,000,000) (except that a Lender may make an Assignment
which reduces its Commitment to zero without the written consent of
Borrower and Agent); or
(iii) Without the written consent of Agent and, if no Default has
occurred and is continuing, Borrower (which consent of Agent and Borrower
shall not be unreasonably withheld), no Lender may make any Assignment
which does not assign and delegate an equal pro rata interest in such
Lender's Revolving Loans, Term Loan, Commitment and all other rights,
duties and obligations of such Lender under this Agreement and the other
Credit Documents.
Upon such execution, delivery, acceptance and recording of each Assignment
Agreement, from and after the Assignment Effective Date determined pursuant
to such Assignment Agreement, (A) each Assignee Lender thereunder shall be
a Lender hereunder with a Proportionate Share as set forth on Attachment 1
------------
to such Assignment Agreement (under
----------------------------
66
the caption "Proportionate Share After Assignment") and shall have the
rights, duties and obligations of such a Lender under this Agreement and
the other Credit Documents, and (B) the Assignor Lender thereunder shall be
a Lender with a Proportionate Share as set forth on Attachment 1 to such
--------------------
Assignment Agreement (under the caption "Proportionate Share After
--------------------
Assignment"), or, if the Proportionate Share of the Assignor Lender has
been reduced to 0%, the Assignor Lender shall cease to be a Lender and to
have any obligation to make any Loan; provided, however, that any such
-------- -------
Assignor Lender which ceases to be a Lender shall continue to be entitled
to the benefits of any provision of this Agreement which by its terms
survives the termination of this Agreement. Each Assignment Agreement shall
be deemed to amend Schedule I to the extent, and only to the extent,
----------
necessary to reflect the addition of each Assignee Lender, the deletion of
each Assignor Lender which reduces its Proportionate Share to 0% and the
resulting adjustment of Proportionate Shares arising from the purchase by
each Assignee Lender of all or a portion of the rights and obligations of
an Assignor Lender under this Agreement and the other Credit Documents. On
or prior to the Assignment Effective Date determined pursuant to each
Assignment Agreement, Borrower, at its own expense, shall execute and
deliver to Agent, in exchange for the surrendered Revolving Loan Note or
Term Loan Note of the Assignor Lender thereunder, a new Revolving Loan Note
or Term Loan Note to the order of each Assignee Lender thereunder (with
each new Revolving Loan Note or Term Loan Note to be in an amount equal to
the Commitment assumed by such Assignee Lender) and, if the Assignor Lender
is continuing as a Lender hereunder, a new Revolving Loan Note or Term Loan
Note to the order of the Assignor Lender (with the new Revolving Loan Note
or Term Loan Note to be in an amount equal to the Commitment retained by
it). Each such new Revolving Loan Note or Term Loan Note shall be dated the
Closing Date or the date of the Term Loan Borrowing (as applicable), and
each such new Note shall otherwise be in the form of the Note replaced
thereby. The Notes surrendered by the Assignor Lender shall be returned by
Agent to Borrower marked "replaced". Each Assignee Lender which was not
previously a Lender hereunder and which is not incorporated under the laws
of the United States of America or a state thereof shall, within three (3)
Business Days of becoming a Lender, deliver to Borrower and Agent two duly
completed copies of United States Internal Revenue Service Form 1001 or
4224 (or successor applicable form), as the case may be, certifying in each
case that such Lender is entitled to receive payments under this Agreement
without deduction or withholding of any United States federal income taxes.
(d) Register. Agent shall maintain at its address referred to in
--------
Paragraph 8.01 a copy of each Assignment Agreement delivered to it and a
--------------
register (the "Register") for the recordation of the names and addresses of
--------
the Lenders and the Proportionate Shares of each Lender from time to time.
The entries in the Register shall be conclusive in the absence of manifest
error, and Borrower, Agent and the Lenders may treat each Person whose name
is recorded in the Register as the owner of the Loans recorded therein for
all proposes of this Agreement. The Register shall be available for
inspection by Borrower or any Lender at any reasonable time and from time
to time upon reasonable prior notice.
67
(e) Registration. Upon its receipt of an Assignment Agreement
------------
executed by an Assignor Lender and an Assignee Lender (and, to the extent
required by Subparagraph 8.05(c), by Borrower and Agent) together with
--------------------
payment to Agent by Assignor Lender of a registration and processing fee of
$4,000, Agent shall (i) promptly accept such Assignment Agreement and (ii)
on the "Assignment Effective Date" determined pursuant thereto record the
information contained therein in the Register and give notice of such
acceptance and recordation to the Lenders and Borrower. Agent may, from
time to time at its election, prepare and deliver to the Lenders and
Borrower a revised Schedule I
----------
reflecting the names, addresses and respective Proportionate Shares of all
Lenders then parties hereto.
(f) Confidentiality. Agent and the Lenders may disclose the Credit
---------------
Documents and any financial or other information relating to Borrower or
any Subsidiary to each other or to any potential Participant or Assignee
Lender that has executed a confidentiality letter in the form of Exhibit F.
---------
8.06. Setoff; Security Interest.
-------------------------
(a) Setoff. In addition to any rights and remedies of the Lenders
------
provided by law, each Lender shall have the right, with the prior consent
of Agent but without prior notice to or consent of Borrower, any such
notice and consent being expressly waived by Borrower to the extent
permitted by applicable law, upon the occurrence and during the continuance
of an Event of Default, to setoff and apply against the Obligations any
amount owing from such Lender to Borrower. The aforesaid right of set-off
may be exercised by such Lender against Borrower or against any trustee in
bankruptcy, debtor in possession, assignee for the benefit of creditors,
receiver or execution, judgment or attachment creditor of Borrower or
against anyone else claiming through or against Borrower or such trustee in
bankruptcy, debtor in possession, assignee for the benefit of creditors,
receiver, or execution, judgment or attachment creditor, notwithstanding
the fact that such right of set-off may not have been exercised by such
Lender at any prior time. Each Lender agrees promptly to notify Borrower
after any such set-off and application made by such Lender, provided that
--------
the failure to give such notice shall not affect the validity of such set-
off and application.
(b) Security Interest. As security for the Obligations, Borrower
-----------------
hereby grants to Agent and each Lender, for the benefit of all Lenders, a
continuing security interest in any and all deposit accounts or moneys of
Borrower now or hereafter maintained with such Lender. Each Lender shall
have all of the rights of a secured party with respect to such security
interest.
8.07. No Third Party Rights. Nothing expressed in or to be implied
---------------------
from this Agreement is intended to give, or shall be construed to give, any
Person, other than the parties hereto and their permitted successors and assigns
hereunder, any benefit or legal or equitable right, remedy or claim under or by
virtue of this Agreement or under or by virtue of any provision herein.
68
8.08. Partial Invalidity. If at any time any provision of this
------------------
Agreement is or becomes illegal, invalid or unenforceable in any respect under
the law or any jurisdiction, neither the legality, validity or enforceability of
the remaining provisions of this Agreement nor the legality, validity or
enforceability of such provision under the law of any other jurisdiction shall
in any way be affected or impaired thereby.
8.09. Jury Trial. EACH OF BORROWER, THE LENDERS AND AGENT, TO THE
----------
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES ALL RIGHT
TO TRIAL BY JURY AS TO ANY ISSUE RELATING HERETO IN ANY ACTION, PROCEEDING, OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO ANY CREDIT DOCUMENT.
8.10. Counterparts. This Agreement may be executed in any number of
------------
identical counterparts, any set of which signed by all the parties hereto shall
be deemed to constitute a complete, executed original for all proposes.
8.11. Confidentiality. Each Lender shall, at or prior to the time it
---------------
becomes a party to this Agreement, execute and deliver to Agent and Borrower a
confidentiality letter in the form of Exhibit F. Any disclosure made by any
---------
Lender in violation of any such confidentiality letter may entitle Borrower to
damages or injunctive relief but shall not affect the obligations of Borrower
and its Subsidiaries under this Agreement and the other Credit Documents.
[The first signature page follows.]
69
IN WITNESS WHEREOF, Borrower, the Lenders and Agent have caused this
Agreement to be executed as of the day and year first above written.
BORROWER: ACUSON CORPORATION
--------
By:__________________________________________
Name:_____________________________________
Title:____________________________________
AGENT: ABN AMRO BANK N.V.
-----
By:__________________________________________
Name:_____________________________________
Title:____________________________________
By:__________________________________________
Name:_____________________________________
Title:____________________________________
LENDERS: ABN AMRO BANK N.V.
-------
By:__________________________________________
Name:_____________________________________
Title:____________________________________
By:__________________________________________
Name:_____________________________________
Title:____________________________________
BANQUE NATIONALE DE PARIS
By:__________________________________________
Name:_____________________________________
Title:____________________________________
By:__________________________________________
Name:_____________________________________
Title:____________________________________
70
SCHEDULE I
----------
LENDERS
-------
PROPORTIONATE
LENDER SHARE*
------ --------------
ABN AMRO BANK N.V. 55.00000000%
------------------
Applicable Lending Office:
ABN AMRO Bank N.V.
San Francisco International Branch
000 Xxxxxxxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxxxx, XX 00000
Address for Borrowing Notices and all other notices:
ABN AMRO Bank North America, Inc.
Capital Markets-Syndications Group
0000 Xxxxxx xx xxx Xxxxxxxx, 0xx Xxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxx Xxxxxxxx
Telephone: (000) 000-0000
Fax: (000) 000-0000
Address for all other notices:
ABN AMRO Bank N.V.
San Francisco International Branch
000 Xxxxxxxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxxxx, XX 00000
Attention: Xxxx X. Xxxxxxxxx
Telephone: (000) 000-0000
Fax: (000) 000-0000
ABN AMRO Bank N.V.
000 Xxxxx XxXxxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, XX 00000-0000
Attn: Xxxxxx Xxxxxxx, Credit Administration
Telephone: (000) 000-0000
Fax: (000) 000-0000
I-1
Wiring Instructions:
ABN AMRO Bank N.V.
New York, New York
RT/ABA No.: 000000000
Account Name: ABN AMRO San Francisco
Account No.: 6510010545-41
Reference: Acuson Corporation
* To be expressed as a percentage rounded to the seventh digit to the right of
the decimal point
I-2
PROPORTIONATE
LENDER SHARE*
------ -------------
BANQUE NATIONALE DE PARIS 45.00000000%
-------------------------
Applicable Lending Office:
Banque Nationale de Paris
000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxxxx, XX 00000
Address for Notices:
Banque Nationale de Paris
000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxxxx, XX 00000
Attention: Xxxxxxxxx Xxxxx
Telephone: (000) 000-0000
Fax: (000) 000-0000
Wiring Instructions:
Federal Reserve Bank of San Francisco
RT/ABA No.: 000000000
Account Name: Banque Nationale de Paris
San Xxxxxxxxx Xxxxxx
Reference: Acuson Corp
* To be expressed as a percentage rounded to the seventh digit to the right of
the decimal point
I-3
SCHEDULE 1.01
-------------
PRICING GRID
------------
LIBOR Loan Commitment
or LIBOR
Portion
Funded Indebtedness/ Applicable Fee
Level EBITDA Ratio Margin Percentage
------- -----------------------------------------------
1 **1.5 to 1.0 1.125% 0.300%
2 ***1.5 to 1.0 and 1.250% 0.350%
*2.0 to 1.0
3 ****2.0 to 1.0 and 1.500% 0.400%
**2.5 to 1.0
4 ***2.5 to 1.0 1.750% 0.450%
* less than
** less than or equal to
*** greater than
**** greater than or equal to
EXPLANATION
-----------
1. The Applicable Margin for each LIBOR Loan, LIBOR Portion and the Commitment
Fee Percentage will be set for each Margin Period and will vary depending
upon whether such period is a Level 1 Period, a Level 2 Period, a Level 3
Period or a Level 4 Period.
2. The first Margin Period, which commences on the date of this Agreement and
ends on May 31, 1999 will be a Level 1 Period.
3. Each Margin Period thereafter will be a Level 1 Period, a Level 2 Period, a
Level 3 Period or a Level 4 Period depending upon Borrower's Funded
Indebtedness/EBITDA Ratio for the most recent consecutive four-fiscal
quarter period ending prior to the first day of such Margin Period.
4. Examples:
(a) Borrower's Funded Indebtedness/EBITDA Ratio is 2.50 for the
consecutive four-fiscal quarter period ending on or about March 31,
1999. The Margin Period of June 1, 1999 - August 31, 1999 will be a
Level 2 Period.
1.01-1
(b) Borrower's Funded Indebtedness/EBITDA Ratio is 3.00 for the
consecutive four-fiscal quarter period ending on or about June 30,
1999. The Margin Period of September 1, 1999 - November 30, 1999 will
be a Level 3 Period.
I-2
SCHEDULE 3.01
-------------
INITIAL CONDITIONS PRECEDENT
----------------------------
A. Principal Credit Documents.
--------------------------
(1) The Credit Agreement, duly executed by Borrower, each Lender and
each Agent; and
(2) A Revolving Loan Note payable to each Lender, each duly executed
--------------
by Borrower.
B. Borrower Corporate Documents.
----------------------------
(1) The Certificate or Articles of Incorporation of Borrower,
certified as of a recent date prior to the Closing Date by the Secretary of
State (or comparable official) of its jurisdiction of incorporation;
(2) A Certificate of Good Standing (or comparable certificate) for
Borrower, certified as of a recent date prior to the Closing Date by the
Secretary of State (or comparable official) of its jurisdiction of
incorporation;
(3) A certificate of the Secretary or an Assistant Secretary of
Borrower, dated the Closing Date, certifying (a) that attached thereto is a
true and correct copy of the Bylaws of Borrower as in effect on the Closing
Date; (b) that attached thereto are true and correct copies of resolutions
duly adopted by the Board of Directors of Borrower and continuing in
effect, which authorize the execution, delivery and performance by Borrower
of this Agreement and the other Credit Documents executed or to be executed
by Borrower and the consummation of the transactions contemplated hereby
and thereby; and (c) that there are no proceedings for the dissolution or
liquidation of Borrower;
(4) A certificate of the Secretary or an Assistant Secretary of
Borrower, dated the Closing Date, certifying the incumbency, signatures and
authority of the officers of Borrower authorized to execute, deliver and
perform this Agreement, the other Credit Documents and all other documents,
instruments or agreements related thereto executed or to be executed by
Borrower; and
(5) A Certificate of Good Standing for Borrower, certified as of a
recent date prior to the Closing Date by the Secretary of State of
California.
C. Financial Statements, Financial Condition, Etc.
-----------------------------------------------
(1) A copy of the audited consolidated Financial Statements of
Borrower for the fiscal year ended December 31, 1998, prepared by Xxxxxx
Xxxxxxxx LLP and a copy
3.01-1
of the unqualified opinion delivered by such accountants in connection with
such Financial Statements;
(2) A copy of the 10-K report filed by Borrower with the Securities
and Exchange Commission for the fiscal year ended December 31, 1998;
(3) Such other financial, business and other information regarding
Borrower, or any of its Subsidiaries as Agent or any Lender may reasonably
request, including information as to possible contingent liabilities, tax
matters, environmental matters and obligations for employee benefits and
compensation.
D. Opinions. A favorable written opinion from Xxxxxx Godward LLP, outside
--------
counsel to Borrower, dated the Closing Date, addressed to Agent for the benefit
of Agent and the Lenders, covering such legal matters as Agent or Lenders may
reasonably request and otherwise in form and substance satisfactory to Agent.
E. Other Items.
-----------
(1) A duly completed and timely delivered Notice of Revolving Loan
--------------
Borrowing;
(2) The Disclosure Letter;
(3) Evidence that (a) the proceeds of the initial Loan will be used
to repay on the Closing Date all Indebtedness outstanding under the Prior
Credit Agreement and (b) the Prior Credit Agreement has been terminated;
(4) A copy of the Note Purchase Agreement as in effect on the Closing
Date, certified by the chief financial officer of Borrower;
(5) A certificate of the chief financial officer of Borrower,
addressed to Agent and dated the Closing Date, certifying that:
(a) The representations and warranties set forth in Paragraph
---------
4.01 and in the other Credit Documents are true and correct in all
----
material respects as of such date (except for such representations and
warranties made as of a specified date, which shall be true as of such
date); and
(b) No Default has occurred and is continuing as of such date;
(6) All fees and expenses payable to Agent and the Lenders on or
prior to the Closing Date (including all fees payable to Agent pursuant to
the Agent's Fee Letter and the Participation Fees);
(7) All fees and expenses of Agent's counsel billed through the
Closing Date; and
3.01-2
(8) Such other evidence as Agent or any Lender may reasonably request
to establish the accuracy and completeness of the representations and
warranties and the compliance with the terms and conditions contained in
this Agreement and the other Credit Documents.
3.01-3
SCHEDULE 4.01(p)
----------------
BORROWER'S SUBSIDIARIES
-----------------------
Subsidiary** Jurisdiction Percent Ownership
---------- ------------ -----------------
Acuson Pty. Ltd. Australia 100%*
Acuson Austria GesmbH Austria 100%*
Acuson Belgium SA/NV Belgium 100%*
Acuson Canada Ltd. Canada 100%*
Acuson A/S Denmark 100%*
Acuson OY Finland 100%*
Acuson SARL France 100%*
Acuson GmbH Germany 100%*
Acuson Hong Kong Ltd Hong Kong 100%*
Acuson SpA Italy 100%*
Acuson Nippon KK Japan 100%*
Acuson BV The Netherlands 100%*
Acuson New Zealand New Zealand 100%*
Acuson A/S Norway 100%*
Acuson Singapore Pte. Ltd. Singapore 100%*
Acuson Iberica SA Spain 100%*
Acuson AB Sweden 100%*
Acuson Ltd. United Kingdom 100%*
Acuson Foreign Sales Corporation Virgin Islands 100%
Acuson International Sales Corporation California 100%
Acuson Worldwide Sales Ltd. California 100%
Sound Technology, Inc. Pennsylvania 100%
* A small number of shares may have been issued to local individuals for the
purpose of establishing and qualifying one or more of such subsidiaries in
the applicable foreign jurisdiction.
** Each of the above listed subsidiaries is directly owned by Borrower.
4.01(p)-1
SCHEDULE 5.02(a)
----------------
EXISTING INDEBTEDNESS
---------------------
As of March 1, 2000, Borrower has outstanding the aggregate principal amount of
eighty-seven million five hundred thousand dollars ($87,500,000). This
represents the proceeds from Borrower's issuance of its Series A Notes , Series
B Notes, Series C Notes and Series D Notes pursuant to the Note Purchase
Agreement and the Supplemental Note Purchase Agreement.
5.02(a)-1
SCHEDULE 5.02(b)
----------------
EXISTING LIENS
--------------
None
5.02(b)-1
SCHEDULE 5.02(e)
----------------
EXISTING INVESTMENTS
--------------------
None
5.02(e)-1
EXHIBIT A-1
-----------
NOTICE OF REVOLVING LOAN BORROWING
----------------------------------
[Date]
ABN AMRO Bank N.V.
as Agent
Capital Markets-Syndications Group
0000 Xxxxxx xx xxx Xxxxxxxx, 0xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxx Xxxxxxxx
1. Reference is made to that certain Credit Agreement, dated as of April
9, 1999 (as amended, the "Credit Agreement"), among Acuson Corporation
----------------
("Borrower"), the financial institutions listed in Schedule I to the Credit
-------- ----------
Agreement (the "Lenders") and ABN AMRO Bank N.V., as agent for the Lenders (in
-------
such capacity, "Agent"). Unless otherwise indicated, all terms defined in the
-----
Credit Agreement have the same respective meanings when used herein.
2. Pursuant to Subparagraph 2.01(b) of the Credit Agreement, Borrower
hereby irrevocably requests a Revolving Loan Borrowing upon the following terms:
(a) The principal amount of the requested Revolving Loan Borrowing is
to be $__________;
(b) The requested Revolving Loan Borrowing is to consist of ["Base
Rate" or "LIBOR"] Loans;
(c) If the requested Revolving Loan Borrowing is to consist of LIBOR
Loans, the initial Interest Period for such Revolving Loans will be
__________ [days (not less than seven (7))] [months]; and
(d) The date of the requested Revolving Loan Borrowing is to be
__________, ____.
3. Borrower hereby certifies to Agent and the Lenders that, on the date
of this Notice of Revolving Loan Borrowing and after giving effect to the
requested Revolving Loan Borrowing:
(a) The representations and warranties of Borrower set forth in
Paragraph 4.01 of the Credit Agreement and in the other Credit Documents
--------------
are true and correct in all material respects as if made on such date
(except for representations and warranties expressly made as of a specified
date, which shall be true as of such date);
(b) No Default has occurred and is continuing; and
B[2]-1
(c) All of the Credit Documents are in full force and effect.
4. Please disburse the proceeds of the requested Revolving Loan Borrowing
to __________________________________________________________.
IN WITNESS WHEREOF, Borrower has executed this Notice of Revolving Loan
Borrowing on the date set forth above.
ACUSON CORPORATION
By:_______________________
Name:_____________________
Title:____________________
B[2]-2
EXHIBIT A-2
NOTICE OF TERM LOAN BORROWING
[Date]
ABN AMRO Bank N.V.
as Agent
Capital Markets-Syndications Group
0000 Xxxxxx xx xxx Xxxxxxxx, 0xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxx Xxxxxxxx
1. Reference is made to that certain Credit Agreement, dated as of April
9, 1999 (as amended, the "Credit Agreement"), among Acuson Corporation
----------------
("Borrower"), the financial institutions listed in Schedule I to the Credit
-------- ----------
Agreement (the "Lenders") and ABN AMRO Bank N.V., as agent for the Lenders (in
-------
such capacity, "Agent"). Unless otherwise indicated, all terms defined in the
-----
Credit Agreement have the same respective meanings when used herein.
2. Pursuant to Subparagraph 2.02(b) of the Credit Agreement, Borrower
--------------------------------------------
hereby irrevocably requests the Lenders to make the Term Loan Borrowing on the
Revolving Loan Maturity Date upon the following terms:
(a) The principal amount of the Term Loan Borrowing is to be
$___________; and
(b) The Term Loan Borrowing initially shall consist of [a] Portion(s)
of [a] Type(s), in [an] amount(s), and, if such Portion(s) is [are] to
include a LIBOR Portion(s), with Interest Period(s) as follows:
Type Amount Interest Period
------ ------ ---------------
$ ;
------ ------ ---------------
$ ;
------ ------ ---------------
$ ;
------ ------ ---------------
$ ;
------ ------ ---------------
B[2]-1
3. Borrower hereby certifies to Agent and Lenders that, on the date of
this Notice of Term Loan Borrowing and after giving effect to the Term Loan
Borrowing:
(a) The representations and warranties of Borrower set forth in
Paragraph 4.01 of the Credit Agreement and in the other Credit Documents
--------------------------------------
are true and correct in all material respects as if made on such date
(except for representations and warranties expressly made as of a specified
date, which shall be true as of such date);
(b) No Default has occurred and is continuing; and
(c) All of the Credit Documents are in full force and effect.
4. Please disburse the proceeds of the Term Loan Borrowing to repay the
outstanding principal amount of the Revolving Loans.
IN WITNESS WHEREOF, Borrower has executed this Notice of Term Loan
Borrowing on the date set forth above.
ACUSON CORPORATION
By:____________________________________
Name:______________________________
Title:_____________________________
B[2]-2
EXHIBIT B-1
NOTICE OF REVOLVING LOAN CONVERSION
[Date]
ABN AMRO Bank N.V.
as Agent
Capital Markets-Syndications Group
0000 Xxxxxx xx xxx Xxxxxxxx, 0xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxx Xxxxxxxx
1. Reference is made to that certain Credit Agreement, dated as of April
9, 1999 (as amended, the "Credit Agreement"), among Acuson Corporation
----------------
("Borrower"), the financial institutions listed in Schedule I to the Credit
--------
Agreement (the "Lenders") and ABN AMRO Bank N.V., as agent for the Lenders (in
-------
such capacity, "Agent"). Unless otherwise indicated, all terms defined in the
-----
Credit Agreement have the same respective meanings when used herein.
2. Pursuant to Subparagraph 2.01(d) of the Credit Agreement, Borrower
--------------------------------------------
hereby irrevocably requests to convert a Revolving Loan Borrowing as follows:
(a) The Revolving Loan Borrowing to be converted consists of ["Base
Rate" or "LIBOR"] Loans in the aggregate principal amount of $__________
which were initially advanced to Borrower on __________, ____;
(b) The Revolving Loans in the Revolving Loan Borrowing are to be
converted into ["Base Rate" or "LIBOR"] Loans;
(c) If such Revolving Loans are to be converted into LIBOR Loans, the
initial Interest Period for such Revolving Loans commencing upon conversion
will be __________ [days (not less than seven (7))] [months]; and
(d) The date of the requested conversion is to be __________, ____.
3. Borrower hereby certifies to Agent and Lenders that, on the date of
this Notice of Revolving Loan Conversion, and after giving effect to the
requested conversion:
(a) The representations and warranties of Borrower set forth in
Paragraph 4.01 of the Credit Agreement and in the other Credit Documents
--------------------------------------
are true and correct in all material respects as if made on such date
(except for representations and warranties expressly made as of a specified
date, which shall be true as of such date);
(b) No Default has occurred and is continuing; and
B[2]-1
(c) All of the Credit Documents are in full force and effect.
IN WITNESS WHEREOF, Borrower has executed this Notice of Revolving Loan
Conversion on the date set forth above.
ACUSON CORPORATION
By:_______________________________
Name:__________________________
Title:_________________________
B[2]-2
EXHIBIT B-2
NOTICE OF TERM LOAN CONVERSION
[Date]
ABN AMRO Bank N.V.
as Agent
Capital Markets-Syndications Group
0000 Xxxxxx xx xxx Xxxxxxxx, 0xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxx Xxxxxxxx
1. Reference is made to that certain Credit Agreement, dated as of April
9, 1999 (as amended, the "Credit Agreement"), among Acuson Corporation
----------------
("Borrower"), the financial institutions listed in Schedule I to the Credit
--------
Agreement (the "Lenders") and ABN AMRO Bank N.V., as agent for the Lenders (in
-------
such capacity, "Agent"). Unless otherwise indicated, all terms defined in the
-----
Credit Agreement have the same respective meanings when used herein.
2. Pursuant to Subparagraph 2.02(d) of the Credit Agreement, Borrower
--------------------------------------------
hereby irrevocably requests to convert a Portion of the Term Loan Borrowing as
follows:
(a) The Portion of the Term Loan Borrowing to be converted is the
Term ["Base Rate" or "LIBOR"] Borrowing Portion in the aggregate principal
amount of $__________ [which has a current Interest Period of ____ month[s]
expiring on __________, ____];
(b) The Portion to be converted is to be converted into [a]
Portion(s) of [a] Type(s), in [an] amount(s), and, if such Portion(s) is
[are] to include a Term LIBOR Borrowing Portion(s), the Interest Period(s)
therefor is [are] as follows:
Type Amount Interest Period
------ ------ ---------------
$ ;
------ ------ ---------------
$ ;
------ ------ ---------------
$ ;
------ ------ ---------------
$ ; and
------ ------ ---------------
(c) The date of the requested conversion is to be __________, ____.
3. Borrower hereby certifies to Agent and Lenders that, on the date of
this Notice of Term Loan Conversion, and after giving effect to the requested
conversion:
B[2]-1
(a) The representations and warranties of Borrower set forth in
Paragraph 4.01 of the Credit Agreement and in the other Credit Documents
--------------------------------------
are true and correct in all material respects as if made on such date
(except for representations and warranties expressly made as of a specified
date, which shall be true as of such date);
(b) No Default has occurred and is continuing; and
(c) All of the Credit Documents are in full force and effect.
IN WITNESS WHEREOF, Borrower has executed this Notice of Term Loan
Conversion on the date set forth above.
ACUSON CORPORATION
By: _________________________________
Name: ___________________________
Title: __________________________
B[2]-2
EXHIBIT C-1
NOTICE OF REVOLVING LOAN INTEREST PERIOD SELECTION
[Date]
ABN AMRO Bank N.V.
as Agent
Capital Markets-Syndications Group
0000 Xxxxxx xx xxx Xxxxxxxx, 0xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxx Xxxxxxxx
1. Reference is made to that certain Credit Agreement, dated as of April
9, 1999 (as amended, the "Credit Agreement"), among Acuson Corporation
----------------
("Borrower"), the financial institutions listed in Schedule I to the Credit
--------
Agreement (the "Lenders") and ABN AMRO Bank N.V., as agent for the Lenders (in
-------
such capacity, "Agent"). Unless otherwise indicated, all terms defined in the
-----
Credit Agreement have the same respective meanings when used herein.
2. Pursuant to Subparagraph 2.01(e) of the Credit Agreement, Borrower
--------------------------------------------
hereby irrevocably selects a new Interest Period for a Revolving Loan Borrowing
as follows:
(a) The Revolving Loan Borrowing for which a new Interest Period is
to be selected consists of LIBOR Loans in the aggregate principal amount of
$__________ which were initially advanced to Borrower on __________, ____;
(b) The last day of the current Interest Period for such LIBOR Loans
is ___________, ____; and
(c) The next Interest Period for such LIBOR Loans commencing upon the
last day of the current Interest Period is to be _________ [days (not less
than seven (7))] [months].
3. Borrower hereby certifies to Agent and the Lenders that, on the date
of this Notice of Revolving Loan Interest Period Selection, and after giving
effect to the requested selection:
(a) The representations and warranties of Borrower set forth in
Paragraph 4.01 of the Credit Agreement and in the other Credit Documents
--------------------------------------
are true and correct in all material respects as if made on such date
(except for representations and warranties expressly made as of a specified
date, which shall be true as of such date);
C[2]-1
(b) No Default has occurred and is continuing; and
(c) All of the Credit Documents are in full force and effect.
C[2]-2
IN WITNESS WHEREOF, Borrower has executed this Notice of Revolving Loan
Interest Period Selection on the date set forth above.
ACUSON CORPORATION
By:__________________________________
Name:_____________________________
Title:____________________________
C[2]-3
EXHIBIT C-2
NOTICE OF TERM LOAN INTEREST PERIOD SELECTION
[Date]
ABN AMRO Bank N.V.
as Agent
Capital Markets-Syndications Group
0000 Xxxxxx xx xxx Xxxxxxxx, 0xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxx Xxxxxxxx
1. Reference is made to that certain Credit Agreement, dated as of April
9, 1999 (as amended, the "Credit Agreement"), among Acuson Corporation
("Borrower"), the financial institutions listed in Schedule I to the Credit
Agreement (the "Lenders") and ABN AMRO Bank N.V., as agent for the Lenders (in
such capacity, "Agent"). Unless otherwise indicated, all terms defined in the
Credit Agreement have the same respective meanings when used herein.
2. Pursuant to Subparagraph 2.02(e) of the Credit Agreement, Borrower
hereby irrevocably selects a new Interest Period for a Portion of the Term Loan
Borrowing as follows:
(a) The Portion of the Term Loan Borrowing for which a new Interest
Period is to be selected consists of LIBOR Portions in the aggregate
principal amount of $__________ which were initially [advanced to]
[converted by] Borrower on __________, ____;
(b) The last day of the current Interest Period for such Portion of
the Term Loan Borrowing is __________, ____; and
(c) The next Interest Period for such Portion of the Term Loan
Borrowing commencing upon the last day of the current Interest Period is to
be __________ months.
3. Borrower hereby certifies to Agents and Lenders that, on the date of
this Notice of Term Loan Interest Period Selection, and after giving effect to
the requested selection:
(a) The representations and warranties of Borrower set forth in
Paragraph 4.01 of the Credit Agreement and in the other Credit Documents
are true and correct in all material respects as if made on such date
(except for representations and warranties expressly made as of a specified
date, which shall be true as of such date);
C[2]-1
(b) No Default has occurred and is continuing; and
(c) All of the Credit Documents are in full force and effect.
C[2]-2
IN WITNESS WHEREOF, Borrower has executed this Notice of Term Loan Interest
Period Selection on the date set forth above.
ACUSON CORPORATION
By:________________________________
Name:___________________________
Title:__________________________
C[2]-3
EXHIBIT D-1
REVOLVING LOAN NOTE
$______________ ____________________, __________
________________, ____
FOR VALUE RECEIVED, ACUSON CORPORATION, a Delaware corporation
("Borrower"), hereby promises to pay to the order of _______________________, a
--------
_________________ ("Lender"), the principal sum of ____________________ DOLLARS
------
($__________) or such lesser amount as shall equal the aggregate outstanding
principal balance of the Revolving Loans made by Lender to Borrower pursuant to
---------
the Credit Agreement referred to below (as amended from time to time, the
"Credit Agreement"), on or before the Revolving Loan Maturity Date specified in
---------------- --------------
the Credit Agreement; and to pay interest on said sum, or such lesser amount, at
the rates and on the dates provided in the Credit Agreement.
Borrower shall make all payments hereunder, for the account of Lender's
Applicable Lending Office, to Agent as indicated in the Credit Agreement, in
lawful money of the United States and in same day or immediately available
funds.
Borrower hereby authorizes Lender to record on the schedule(s) annexed to
this note the date and amount of each Revolving Loan and of each payment or
prepayment of principal made by Borrower and agrees that all such notations
shall constitute prima facie evidence of the matters noted; provided, however,
-------- -------
that the failure of Lender to make any such notation shall not affect Borrower's
obligations hereunder.
This note is one of the Revolving Loan Notes referred to in the Credit
Agreement, dated as of April 9, 1999, among Borrower, Lender and the other
financial institutions from time to time parties thereto (collectively, the
"Lenders") and ABN AMRO Bank N.V., as agent for the Lenders. This note is
-------
subject to the terms of the Credit Agreement, including the rights of prepayment
and the rights of acceleration of maturity set forth therein. Terms used herein
have the meanings assigned to those terms in the Credit Agreement, unless
otherwise defined herein.
The transfer, sale or assignment of any rights under or interest in this
note is subject to certain restrictions contained in the Credit Agreement,
including Paragraph 8.05 thereof.
--------------
D[1]-1
Borrower shall pay all reasonable fees and expenses, including reasonable
attorneys' fees, incurred by Lender in the enforcement or attempt to enforce any
of Borrower's obligations hereunder not performed when due. Borrower hereby
waives notice of presentment, demand, protest or notice of any other kind. This
note shall be governed by and construed in accordance with the laws of the State
of California without reference to conflicts of law rules.
ACUSON CORPORATION
By:________________________________
Name:___________________________
Title:__________________________
D[1]-2
REVOLVING LOANS AND PAYMENTS OF PRINCIPAL
-----------------------------------------
Amount of Unpaid
Type of Amount of Interest Principal Paid Principal Notation
Date Revolving Revolving Period or Prepaid Balance Made By
Loan Loan
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D[1]-3
EXHIBIT D-2
TERM LOAN NOTE
$________________________________________, _____________________________________
_______________________________________________________________,________________
FOR VALUE RECEIVED, ACUSON CORPORATION, a Delaware corporation
("Borrower"), hereby promises to pay to the order of ____________________, a
____________________ ("Lender"), the principal sum of
______________________________ DOLLARS ($__________) in _______ (__)
installments of $__________ each, payable on the _____ day of each _______,
_______, _______ and _______ (commencing _______, ____ and ending ________,
____); and to pay interest on the outstanding balance of said sum at the rates
and on the dates provided in the Credit Agreement referred to below (as amended
from time to time, the "Credit Agreement"); provided, however, that all
principal and accrued interest remaining unpaid shall be payable in full on the
Term Loan Maturity Date.
Borrower shall make all payments hereunder, for the account of Lender's
Applicable Lending Office, to Agent as indicated in the Credit Agreement, in
lawful money of the United States and in same day or immediately available
funds.
This note is one of the Term Loan Notes referred to in the Credit
Agreement, dated as of April 9, 1999, among Borrower, Lender and the other
financial institutions from time to time parties thereto (collectively, the
"Lenders") and ABN AMRO Bank N.V., as agent for Lenders. This note is subject to
the terms of the Credit Agreement, including the rights of prepayment and the
rights of acceleration of maturity set forth therein. Terms used herein have the
meanings assigned to those terms in the Credit Agreement, unless otherwise
defined herein.
Borrower shall pay all reasonable fees and expenses, including reasonable
attorneys' fees, incurred by Lender in the enforcement or attempt to enforce any
of Borrower's obligations hereunder not performed when due. Borrower hereby
waives notice of presentment, demand, protest or notice of any other kind.
This note shall be governed by and construed in accordance with the laws of
the State of California.
ACUSON CORPORATION
By:_______________________________
Name:__________________________
Title:_________________________
D[2]-1
EXHIBIT E
INVESTMENT POLICY
PURPOSE
The purpose of this policy is to establish the responsibility, authority, and
guidelines for the investment of the surplus cash of Acuson Corporation (the
"Company"). Surplus cash is defined as those funds exceeding the operating
requirements of the Company and not immediately required for working capital or
financial obligations.
SCOPE
This policy shall apply to Acuson Corporation and all of its subsidiaries. When
applicable, and in a separate Addendum, additional guidelines and/or variations
on this policy will be included for funds managed by outside Investment
Managers. This investment policy will be reviewed annually by the Chief
Financial Officer to ensure that it remains consistent with the overall
objectives of Acuson Corporation and with current financial trends.
OBJECTIVES
The basic objectives of the Company's investment program, in order of priority,
are:
1. Safety and preservation of principal by investing in a high quality
and a well-diversified portfolio of marketable securities.
2. Liquidity of investments that is sufficient to meet the Company's cash
flow requirements.
3. Attainment of the highest after-tax market rate of return on invested
funds that is consistent with the above stated objectives and prudent
risk tolerance.
Proper fiduciary control of all Company investments will be maintained while
avoiding inappropriate concentration of investments.
RESPONSIBILITY
The Chiefs Financial Officer of the Company shall have oversight responsibility
for the cash investments of the Company, shall be responsible for directing and
interpreting this policy, and shall ensure conformance to this policy. The
Treasury Department will be responsible for the investment of cash for the
Company. The Chief Financial Officer of the Company together with one additional
person, if required and as designated by the Board of Directors, will have
authority to (1) open accounts with broker/dealers and banks, (2) establish
accounts or other arrangements for the custody of securities, (3) execute as
necessary documents required by broker/dealers, banks, and custodians, (4)
select and change external investments managers, (5) monitor investment results
of all outside investment managers, as well as results of any in-house
E-1
investments activities, and (6) execute the investment policy as well as
designate those who can execute it.
The Chief Financial Officer, Treasurer, Assistant Treasurer, and Treasury
Manager shall each individually have the authority to purchase and sell
securities in the name of Acuson Corporation and on its behalf within the
guidelines set forth in this policy.
The Chief Financial Officer and Treasurer must approve any exceptions to this
policy in writing.
POLICY
Eligible Investments and Credit Quality
---------------------------------------
Investments of surplus cash of the Company will be limited to the following
categories
United States Government - Marketable securities which are direct
obligations of the United States or are issues by or guaranteed as to
principal end interest by the U.S. government and supported by the full
faith and credit of the United States.
United States Government Agency Securities - Debt securities issued by U.S.
government-sponsored enterprises, Federal agencies, and certain
international institutions which are not direct obligations of the United
States but which involve government sponsorship and are fully guaranteed by
U.S. government agencies or enterprises.
Municipal Obligations - Direct obligations of and obligations fully
guaranteed by a state, territory, or possession of the United States,
including the District of Columbia, or any political subdivision of any of
the foregoing, including any county or other local government body within
the U.S. which have a short-term rating of at least SP-1 by Standard and
Poor's or MIG-1 by Moody's or their equivalent and a medium and longer term
rating of at least AA by Standard and Poor's or Aa by Moody's or their
equivalent. Such investments are limited to tax-exempt commercial paper,
short-term notes, bond anticipation notes, tax anticipation notes, revenue
anticipation notes, general obligation notes or bonds, variable rate demand
notes, revenue bonds, put bonds, and weekly floaters. Auction rate
municipal notes and bonds, which are sold using the Dutch auction rate
reset mechanism, must have a rating of at least AAA by Standard and Poor's
or Aaa by Moody's or their equivalent.
In order to meet the credit requirements of this policy, municipal
securities may include credit enhancements such as (i) an irrevocable and
unconditional bank letter of credit that is rated A-l by Standard and
Poor's or P-1 by Moody's or their equivalent rating, (ii) insurance
provided by AMBAC Indemnity Corp. (AMBAC), Financial Guaranty Insurance
Corporation (FGIC), Financial Security Assurance, Inc. (FSA), or Municipal
Bond Investors Assurance (MBIA), or (iii) be backed by an escrow account of
U.S. treasury securities.
Pre-refunded municipal securities, which are not rated but which are fully
collateralized by U.S. Treasury securities to cover principal and interest
payments, are also eligible investments.
E-2
Bank Money Market Instruments - Obligations of both domestic and foreign
commercial banks that have a minimum International Bank Credit Analysts
(IBCA) rating of A-1 or its equivalent. Such obligations may include, but
are not limited to, bank time deposits (domestic and Euro), negotiable
certificates of deposit (domestic, Yankee, and Euro), banker's acceptances,
and deposits placed with offshore branches of approved banks (Euro CD's and
TD's).
Corporate Debt Instruments - All commercial paper and other short term,
unsecured promissory notes issued by corporations or financial institutions
including but not limited to: master notes, asset-backed notes, medium-term
notes, deposit notes, Eurodollar notes, and Yankee notes. All such debt
instruments must have a short-term rating of at least A-1 by Standard &
Poor's or P-l by Moody's or their equivalent and a long-term debt rating of
at least A by Standard & Poor's or by Moody's or their equivalent.
Repurchase Agreements - Collateralized loans by Acuson Corporation with
financial institutions, which have been, elected primary government
security dealers by the Federal Reserve. These investments must be secured
by having the securities transferred to the Company's custodian. Such
investments must always be fully collateralized by U.S. Treasury or U.S.
government agency obligations and such collateral must be market priced
greater than the invested amount at the time of purchase.
Money Market Mutual Funds - Shares of open-ended investment companies
registered under the Investment Company Act of 1940, as amended. The
investments of such funds should comply with the SEC regulations under Rule
2a-7 and the fund should maintain a constant net asset value, offer daily
liquidity, and the weighted average maturity of the fund should not exceed
90 days.
Derivatives - For the purpose of either hedging interest rate exposure or
creating a synthetic security as outlined in the investment policy; the
following instruments can be used: futures, options, swaps, caps, floors,
collars and forward rate agreements. In no case, can derivatives be used to
create a leveraged position. Notional amounts associated with derivative
position must be one-to-one (dollar for dollar) or at a level that is
commensurate with the interest rate risk being managed.
Diversification
---------------
Investments within the portfolio will be diversified to avoid undue
concentration of risk. The following concentration limits shall apply:
1. There are no limits on securities of the U.S. government and its
agencies.
2. Up to 50% of the portfolio may be invested in municipal securities,
subject to the other diversification limits of this section.
3. No more than $5 million or 10% of the portfolio, whichever is greater,
will be invested with any one issuer.
4. No more than 25% of the portfolio will be invested in a single
industry, except for
E-3
financial institutions, which may be up to 50% of the portfolio.
5. No more than 25% of the portfolio will be invested in issuers of any
one sovereignty outside the United States.
6. No more than 50% of the portfolio will be invested in Dutch auction
municipal securities.
Maturity
--------
All individual securities in the portfolio shall have a maturity of 36 months or
less, except repurchase agreements which shall have a maturity of 14 days or
less.
The duration of the portfolio shall be consistent with the cash needs of the
Company but in no case will it exceed 18 months. Duration: A measure of the
--------
average life of a bond defined as the weighted average of the times until each
payment is made, with weights proportional to the present value of the payment.
A maturity, by definition, shall include puts, announced calls, auctions, or
other structural features which will allow the Company to redeem the investment
at a quantifiable price prior to the stated final maturity consistent with
preservation of capital and liquidity requirements.
Marketability
-------------
All holdings in the portfolio, except for those instruments which can be
classified as cash and cash equivalent, should be of sufficient size and in
issues that are actively trades to minimize transaction costs and to facilitate
accurate market valuation. When the total portfolio falls below $25 million the
above diversification limits may be exceeded upon approval by the Chief
Financial Officer in order to avoid having several small investments that are
not really marketable or that have yields below market rates.
Credit Downgrade
----------------
The Chief Financial Officer shall be notified immediately if any investment that
met the criteria of this policy at the time of purchase is subsequently
downgraded by Standard & Poor's, Moody's or an equivalent rating agency. After
reviewing all relevant factors, the Chief Financial Officer will confirm in
writing the action to be taken.
Subsidiaries
------------
Investment by subsidiaries of the Company shall be limited to interest bearing
deposits or similar investments in the local currency of the subsidiary at the
bank or branch of the bank where the subsidiary has an existing account that has
been previously approved by the Chief Financial Officer. These instruments must
be direct obligations of the bank, be executed only by the persons who have
signatory authority on the accounts at the bank, and have a maturity not greater
than 90 days.
Currencies
----------
E-4
All eligible investments will be denominated in United States dollars or in the
functional currencies of the Company and its subsidiaries. No security
purchased can have currency exposure.
Trading
-------
Investments will be made with the intention of holding them to maturity.
However, investments may be sold prior to maturity to preserve capital or to
provide required liquidity.
Trading securities is permitted to realize capital gains and losses within the
context of maximizing after-tax return, but this is not the primary goal or
function of the policy.
To attain the best prices in the secondary markets, a minimum of two bids will
be solicited for every security offered for sale.
All purchases and sales will be done in the name of the Company with the
approved brokers, dealers, and banks.
For accounting purposes, all investments shall be deemed to be in the "Available
for Sale" category, as defined under Statement of Financial Accounting Standards
No. 115, "Accounting for Certain Investments in Debt and Equity Securities."
Borrowing
---------
The Company shall not borrow funds from any institution for speculative
purposes. The Company shall not enter into reverse repurchase agreements or
purchase securities on margin for the purpose of leveraging the portfolio.
Financial Institutions
----------------------
The purchase and sale of securities investments and the subsequent custody or
safekeeping of purchased investments may only be handled through an Approved
Financial Institution as outlined below:
Type of institution Criteria
A. Commercial Banks Ranked within the top 100 worldwide by assets
and ranked A or better by Standard & Poor's and
Moody's
B. Investment Banks and Primary dealer in U.S. Government securities and
Broker/Dealers rated (on a stand-alone basis or through its
parent) A or better by Standard & Poor's and
Moody's; otherwise all securities must be
delivered to Acuson's securities safekeeping
account,
E-5
C. Investment Management As specifically approved by the Chief Financial
Companies Officer and the Treasurer
CONTROLS
A third party custodian who will accept all investments made by the Company will
hold all remarketable securities in the portfolio in a custodial account.
Confirmation of all trades will be sent to a person who does not have investment
authority and all trades will be reconciled on a monthly basis to the custody
account statements and to the in-house transaction log or the monthly statements
from the outside investment managers.
ACCOUNTING & TAX
Corporate Treasury will be responsible for obtaining the opinion of both the Tax
and Accounting Departments in reference to any proposed derivative transaction.
The opinion(s) provided should encompass but not be limited to FAS 133 and FAS
115 as well as any tax consequence(s) that will result from a contemplated
transaction.
Although neither the Tax nor the Accounting Department will need to sign off on
the transaction itself, their guidance in terms of tax and/or accounting
treatment must be clearly articulated by the Treasurer to the CFO before any
transaction is consummated.
REPORTS
For portfolio investments handled in-house, a daily transaction log,
sequentially numbered, that records all pertinent information related to each
investment, will be prepared and maintained. On a monthly basis, reports that
provide detailed information about the composition of the portfolio will be
prepared and maintained. These reports will be sent to the Chief Financial
Officer and Treasurer. In addition, monthly reports which provide all the
pertinent investment and income information will be prepared and given to
General Accounting for inclusion is the accounts and records of the Company.
For portfolio investments handled by outside managers, monthly reports will be
provided to the Company on a timely basis which provide detailed information
about each individual investment in the portfolio including appropriate income
information. This information will be reviewed by the Treasury Department and
included in the monthly reporting package sent to the Chief Financial Officer
and Treasurer. An additional copy will be given to General Accounting for
inclusion in the accounts and records of the Company.
E-6
EXHIBIT F
----------
ASSIGNMENT AGREEMENT
--------------------
THIS ASSIGNMENT AGREEMENT, dated as of the date set forth at the top of
Attachment 1 hereto, by and among:
(1) The bank designated under item A of Attachment 1 hereto as the
------------
Assignor Lender ("Assignor Lender"); and
---------------
(2) Each bank designated under item B of Attachment 1 hereto as an
------------
Assignee Lender (individually, an "Assignee Lender").
---------------
RECITALS
--------
A. Assignor Lender is one of the lenders which is a party to the Credit
Agreement dated as of April 9, 1999 (as amended, the "Credit Agreement"), by and
------------------------------------
among Acuson Corporation ("Borrower,") Assignor Lender and the other financial
--------
institutions parties thereto (collectively, the "Lenders") and ABN AMRO Bank
-------
N.V., as agent for the Lenders (in such capacity, "Agent"). (Such credit
-----
agreement, as amended, supplemented or otherwise modified in accordance with its
terms from time to time to be referred to herein as the "Credit Agreement").
----------------
B. Assignor Lender wishes to sell, and Assignee Lender wishes to
purchase, all or a portion of Assignor Lender's rights under the Credit
Agreement pursuant to Subparagraph 8.05(c) of the Credit Agreement.
--------------------
AGREEMENT
---------
Now, therefore, the parties hereto hereby agree as follows:
1. Definitions. Except as otherwise defined in this Assignment
-----------
Agreement, all capitalized terms used herein and defined in the Credit Agreement
have the respective meanings given to those terms in the Credit Agreement.
2. Sale and Assignment. Subject to the terms and conditions of this
-------------------
Assignment Agreement, Assignor Lender hereby agrees to sell, assign and delegate
to each Assignee Lender and each Assignee Lender hereby agrees to purchase,
accept and assume the rights, obligations and duties of a Lender under the
Credit Agreement and the other Credit Documents equal to the Proportionate Share
set forth under the caption "Proportionate Share Transferred" opposite such
Assignee Lender's name on Attachment 1 hereto. Such sale, assignment and
------------
delegation shall become effective on the date designated in Attachment 1 hereto
------------
(the "Assignment Effective Date"), which date shall be, unless Agent shall
-------------------------
otherwise consent, at least five (5) Business Days after the date following the
date counterparts of this Assignment Agreement are delivered to Agent in
accordance with Paragraph 3 hereof.
F-1
3. Assignment Effective Notice. Upon (a) receipt by Agent of five (5)
counterparts of this Assignment Agreement (to each of which is attached a fully
completed Attachment 1), each of which has been executed by Assignor Lender and
-------------
each Assignee Lender (and, to the extent required by Subparagraph 8.05(c) of the
---------------------------
Credit Agreement, by Borrower and Agent) and (b) payment to Agent of the
----------------
registration and processing fee specified in Subparagraph 8.05(e) of the Credit
----------------------------------
Agreement by Assignor Lender, Agent will transmit to Borrower, Assignor Lender
---------
and each Assignee Lender an Assignment Effective Notice substantially in the
form of Attachment 2 hereto, fully completed (an "Assignment Effective Notice").
------------ ---------------------------
4. Assignment Effective Date. At or before 12:00 noon (local time of
-------------------------
Assignor Lender) on the Assignment Effective Date, each Assignee Lender shall
pay to Assignor Lender, in immediately available or same day funds, an amount
equal to the purchase price, as agreed between Assignor Lender and such Assignee
Lender (the "Purchase Price"), for the Proportionate Share purchased by such
--------------
Assignee Lender hereunder. Effective upon receipt by Assignor Lender of the
Purchase Price payable by each Assignee Lender, the sale, assignment and
delegation to such Assignee Lender of such Proportionate Share as described in
Paragraph 2 hereof shall become effective.
-----------
5. Payments After the Assignment Effective Date. Assignor Lender and
--------------------------------------------
each Assignee Lender hereby agree that Agent shall, and hereby authorize and
direct Agent to, allocate amounts payable under the Credit Agreement and the
other Credit Documents as follows:
(a) All principal payments made after the Assignment Effective Date
with respect to each Proportionate Share assigned to an Assignee Lender
pursuant to this Assignment Agreement shall be payable to such Assignee
Lender.
(b) All interest, fees and other amounts accrued after the Assignment
Effective Date with respect to each Proportionate Share assigned to an
Assignee Lender pursuant to this Assignment Agreement shall be payable to
such Assignee Lender.
Assignor Lender and each Assignee Lender shall make any separate arrangements
between themselves which they deem appropriate with respect to payments between
them of amounts paid under the Credit Documents on account of the Proportionate
Share assigned to such Assignee Lender, and neither Agent nor Borrower shall
have any responsibility to effect or carry out such separate arrangements.
6. Delivery of Notes. On or prior to the Assignment Effective Date,
-----------------
Assignor Lender will deliver to Agent the Notes payable to Assignor Lender. On
or prior to the Assignment Effective Date, Borrower will deliver to Agent new
Notes for each Assignee Lender and Assignor Lender, in each case in principal
amounts reflecting, in accordance with the Credit Agreement, their respective
Commitments (as adjusted pursuant to this Assignment Agreement). As provided in
Subparagraph 8.05(c) of the Credit Agreement, each such new Note shall be dated
--------------------------------------------
the Closing Date. Promptly after the Assignment Effective Date, Agent will send
to each of Assignor Lender and the Assignee Lenders its new Notes and will send
to Borrower the superseded Note payable to Assignor Lender, marked "Replaced."
F-2
7. Delivery of Copies of Credit Documents. Concurrently with the
--------------------------------------
execution and delivery hereof, Assignor Lender will provide to each Assignee
Lender (if it is not already a Lender party to the Credit Agreement) conformed
copies of all documents delivered to Assignor Lender on or prior to the Closing
Date in satisfaction of the conditions precedent set forth in the Credit
Agreement.
8. Further Assurances. Each of the parties to this Assignment Agreement
------------------
agrees that at any time and from time to time upon the written request of any
other party, it will execute and deliver such further documents and do such
further acts and things as such other party may reasonably request in order to
effect the purposes of this Assignment Agreement.
9. Further Representations, Warranties and Covenants. Assignor Lender
-------------------------------------------------
and each Assignee Lender further represent and warrant to and covenant with each
other, Agent and the Lenders as follows:
(a) Other than the representation and warranty that it is the legal
and beneficial owner of the interest being assigned hereby free and clear
of any adverse claim, Assignor Lender makes no representation or warranty
and assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with the Credit Agreement or the
other Credit Documents or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Credit Agreement
or the other Credit Documents furnished.
(b) Assignor Lender makes no representation or warranty and assumes no
responsibility with respect to the financial condition of Borrower or any
of its obligations under the Credit Agreement or any other Credit
Documents.
(c) Each Assignee Lender confirms that it has received a copy of the
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
Assignment Agreement.
(d) Each Assignee Lender will, independently and without reliance upon
Agent, Assignor Lender or any other Lender and based upon such documents
and information as it shall deem appropriate at the time, continue to make
its own credit decisions in taking or not taking action under the Credit
Agreement and the other Credit Documents.
(e) Each Assignee Lender appoints and authorizes Agent to take such
action as Agent on its behalf and to exercise such powers under the Credit
Agreement and the other Credit Documents as Agent is authorized to exercise
by the terms thereof, together with such powers as are reasonably
incidental thereto, all in accordance with Section VII of the Credit
-------------------------
Agreement.
---------
(f) Each Assignee Lender agrees that it will perform in accordance
with their terms all of the obligations which by the terms of the Credit
Agreement and the other Credit Documents are required to be performed by it
as a Lender.
F-3
(g) Attachment 1 hereto sets forth administrative information with
------------
respect to each Assignee Lender.
10. Effect of this Assignment Agreement. On and after the Assignment
-----------------------------------
Effective Date, (a) each Assignee Lender shall be a Lender with a Proportionate
Share equal to the Proportionate Share set forth under the caption
"Proportionate Share After Assignment" opposite such Assignee Lender's name on
Attachment 1 hereto and shall have the rights, duties and obligations of such a
------------
Lender under the Credit Agreement and the other Credit Documents and (b)
Assignor Lender shall be a Lender with a Proportionate Share equal to the
Proportionate Share set forth under the caption "Proportionate Share After
Assignment" opposite Assignor Lender's name on Attachment 1 hereto and shall
------------
have the rights, duties and obligations of such a Lender under the Credit
Agreement and the other Credit Documents, or, if the Proportionate Share of
Assignor Lender has been reduced to 0%, Assignor Lender shall cease to be a
Lender and shall have no further obligation to make any Loans.
11. Miscellaneous. This Assignment Agreement shall be governed by, and
-------------
construed in accordance with, the laws of the State of California. Paragraph
headings in this Assignment Agreement are for convenience of reference only and
are not part of the substance hereof.
IN WITNESS WHEREOF, the parties hereto have caused this Assignment
Agreement to be executed by their respective duly authorized officers as of the
date set forth in Attachment 1 hereto.
------------
F-4
------------------------------------, as
Assignor Lender
By:
---------------------------------
Name:----------------------------
Title:---------------------------
------------------------------------, as an
Assignee Lender
By:
---------------------------------
Name:----------------------------
Title:---------------------------
------------------------------------, as an
Assignee Lender
By:
---------------------------------
Name:----------------------------
Title:---------------------------
------------------------------------, as an
Assignee Lender
By:
---------------------------------
Name:----------------------------
Title:---------------------------
F-5
CONSENTED TO AND ACKNOWLEDGED BY:
ACUSON CORPORATION
By:
-------------------------------
Name:--------------------------
Title:-------------------------
----------------------------------,
As Agent
By:
-------------------------------
Name:--------------------------
Title:-----------------------
ACCEPTED FOR RECORDATION
IN REGISTER:
----------------------------------,
As Agent
By:
-------------------------------
Name:--------------------------
Title:-------------------------
F-6
ATTACHMENT 1
TO ASSIGNMENT AGREEMENT
-----------------------
NAMES, ADDRESSES AND PROPORTIONATE SHARES
OF ASSIGNOR LENDER AND ASSIGNEE LENDERS
AND ASSIGNMENT EFFECTIVE DATE
______________, ____
Proportionate Proportionate
Share Share After
A. ASSIGNOR LENDER Transferred/1,2/ Assignment/1/
--------------- ---------------- --------------
__________________ _____________% __________%
Applicable Lending Office:
----------------------------
----------------------------
----------------------------
----------------------------
Address for notices:
----------------------------
----------------------------
----------------------------
----------------------------
Telephone No:---------------
Telecopier No:--------------
Wiring Instructions:
----------------------------
----------------------------
_______________________
/1/ To be expressed by a percentage rounded to the seventh-digit to the right
of the decimal point.
F(1)-1
/2/ Share of Total Commitment sold by Assignor Lender, and share of Total
Commitment purchases by Assignee Lender.
F(1)-2
Proportionate Proportionate
Share Share After
B. ASSIGNEE LENDERS Transferred/1,2/ Assignment/1/
---------------- ----------------- --------------
____________________ _________________% ______________%
Applicable Lending Office:
----------------------------
----------------------------
----------------------------
----------------------------
Address for notices:
----------------------------
----------------------------
----------------------------
Telephone No:---------------
Telecopier No:--------------
Wiring Instructions:
----------------------------
----------------------------
_______________________
/1/ To be expressed by a percentage rounded to the seventh-digit to the right
of the decimal point.
/2/ Share of Total Commitment sold by Assignor Lender, and share of Total
Commitment purchases by Assignee Lender.
F(1)-3
Proportionate Proportionate
Share Share After
B. ASSIGNEE LENDERS Transferred/1,2/ Assignment/1/
---------------- ----------------- --------------
(cont.d)
_________________ _________________% ______________%
Applicable Lending Office:
------------------------------
------------------------------
------------------------------
------------------------------
Address for notices:
------------------------------
------------------------------
------------------------------
------------------------------
Telephone No:-----------------
Telecopier No:----------------
Wiring Instructions:
------------------------------
------------------------------
C. ASSIGNMENT EFFECTIVE DATE:
-------------------------
--------------------,----
_______________________
/1/ To be expressed by a percentage rounded to the seventh-digit to the right
of the decimal point.
/2/ Share of Total Commitment sold by Assignor Lender, and share of Total
Commitment purchases by Assignee Lender.
F(1)-4
ATTACHMENT 2
TO ASSIGNMENT AGREEMENT
-----------------------
FORM OF
ASSIGNMENT EFFECTIVE NOTICE
---------------------------
Reference is made to the Credit Agreement, dated as of April 9, 1999, among
Acuson Corporation ("Borrower"), the financial institutions parties thereto (the
--------
"Lenders") and ABN AMRO Bank N.V., as agent for the Lenders (in such capacity,
-------
"Agent"). Agent hereby acknowledges receipt of five executed counterparts of a
-----
completed Assignment Agreement, a copy of which is attached hereto. [Note:
Attach copy of Assignment Agreement.] Terms defined in such Assignment
Agreement are used herein as therein defined.
1. Pursuant to such Assignment Agreement, you are advised that the
Assignment Effective Date will be __________.
2. Pursuant to such Assignment Agreement, Assignor Lender is required to
deliver to Agent on or before the Assignment Effective Date the Notes payable to
Assignor Lender.
3. Pursuant to such Assignment Agreement, Borrower is required to deliver
to Agent on or before the Assignment Effective Date the following Notes, each
dated ________________ [Insert appropriate date]:
[Describe each new Note for Assignor Lender and each Assignee Lender as to
principal amount.]
4. Pursuant to such Assignment Agreement, each Assignee Lender is
required to pay its Purchase Price to Assignor Lender at or before 12:00 Noon on
the Assignment Effective Date in immediately available funds.
Very truly yours,
ABN AMRO BANK N.V.
as Agent
By:
-------------------------
Name:---------------------
Title:--------------------
F(2)-1
EXHIBIT G
----------
CONFIDENTIALITY LETTER
----------------------
[Lender letterhead]
[Date]
Acuson Corporation
0000 Xxxxxxxxxx Xxxx
Xxxxxxxx Xxxx, XX 00000
Attn: Treasurer
Re: Credit Agreement dated as of April 9, 1999 (the "Credit Agreement")
among Acuson Corporation ("Borrower"), the financial institutions
parties thereto (the "Lenders") and ABN AMRO Bank N.V., as agent for
the Lenders ("Agent") - Confidentiality Agreement
Ladies and Gentlemen:
In order to permit ____________________ ("Lender") to evaluate the business
------
and financial prospects and condition of Borrower in connection with Lender's
[proposed] participation as a [Lender][participant] in the Credit Agreement,
Borrower, Agent or another Lender may have made or may hereafter make available
to Lender certain confidential financial information and other non-public
information relating to Borrower (the "Confidential Information"). This letter
------------------------
agreement sets out the understandings between Lender and Borrower with respect
Lender's treatment and control of the Confidential Information.
Lender will use the Confidential Information solely in connection with the
Credit Agreement, including Lender's determination of whether to become a [party
to][participant under] the Credit Agreement. Lender will endeavor in good faith
to maintain the confidentiality of the Confidential Information and, except as
provided below, will exercise reasonable efforts to prevent the disclosure of
the Confidential Information to third parties or to Lender's officers, employees
and agents except those officers, employees and agents who need to know in
connection with the purpose set forth in the first sentence of this paragraph.
If Lender elects not to participate in the Credit Agreement, Lender will
promptly return or destroy all Confidential Information (including any copies,
extracts, or summaries) if requested to do so by Borrower at any time after
discussions have been terminated and before Lender has become obligated to
participate in the Credit Agreement, provided that Lender may retain such
Confidential Information (subject to the obligations contained herein) as it
deems necessary in order to comply with ordinary and customary retention
requirements of financial institutions, sound banking practices and audit and
examination requirements.
Notwithstanding anything in this letter agreement to the contrary,
Confidential Information shall not include information that either (a) is in the
public domain or the knowledge or possession of Lender on a non-confidential
basis when disclosed to Lender or becomes part of
G-1
the public domain after disclosure to Lender through no fault of Lender, or (b)
is disclosed to Lender by a third party, provided Lender does not have actual
knowledge that such third party is prohibited from disclosing such information.
The terms of this letter agreement shall not apply to disclosure of
Confidential Information that is, in the good faith opinion of Lender, compelled
by laws, regulations, rules, orders, or legal process or proceedings, provided
that Lender uses reasonable efforts to give Borrower sufficient notice to permit
Borrower to seek an order restraining such disclosure, or is disclosed to (a)
any party, including a prospective assignee or participant, that has signed a
confidentiality agreement containing terms substantially similar to those
contained herein, (b) legal counsel, examiners, auditors, and directors of
Lender and examiners, auditors, and investigators having regulatory authority
over Lender, or (c) any party in connection with the excise of remedies by
Lender (or Agent on behalf of Lenders) after the occurrence of any "Event of
Default" as defined in the Credit Agreement.
It is agreed that money damages would not be a sufficient remedy for breach
of this letter agreement by Lender and that Borrower shall be entitled to
specific performance or other equitable relief as a remedy for any such breach.
Such remedy shall not be deemed to be the exclusive remedy for Lender's breach
of this letter agreement but shall be in addition to all other remedies
available at law or equity to Borrower. Lender agrees that the provisions of
this letter agreement shall be deemed to apply, with equal force and effect, to
any of Lender's representatives, affiliates, or associates and that Lender shall
be responsible for any breach of the provisions of this letter agreement by any
of its directors, officers, employees, affiliates, or associates.
This letter agreement shall be governed by and be construed in accordance
with the laws of the State of California (excluding the choice of law rules
thereof) and is binding upon the successors and assigns of Lender and Borrower.
This letter agreement supersedes any prior agreements between Borrower and
Lender regarding confidential information furnished to Lender in connection with
the Credit Agreement.
Very truly yours,
[Lender name]
By
--------------------------
Name:---------------------
Title:--------------------
G-2
