[Execution Copy]
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AMENDED and RESTATED
MULTI-YEAR CREDIT AGREEMENT
dated as of
September 8, 1999
among
SMITHFIELD FOODS, INC.,
THE SUBSIDIARY GUARANTORS PARTY HERETO,
THE LENDERS PARTY HERETO
and
THE CHASE MANHATTAN BANK,
as Administrative Agent
-------------------------
CHASE SECURITIES INC.,
as Arranger
and
COOPERATIEVE CENTRALE RAIFFEISEN BOERENLEENBANK B.A.,
"RABOBANK NEDERLAND", NEW YORK
BRANCH, as Co-Agent
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TABLE OF CONTENTS
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ARTICLE I
DEFINITIONS
SECTION 1.01. Defined Terms............................................................................
SECTION 1.02. Classification of Loans and Borrowings...................................................
SECTION 1.03. Terms Generally..........................................................................
SECTION 1.04. Accounting Terms; GAAP...................................................................
SECTION 1.05. Currencies, Currency Equivalents.........................................................
ARTICLE II
THE CREDITS
SECTION 2.01. Commitments..............................................................................
SECTION 2.02. Loans and Borrowings.....................................................................
SECTION 2.03. Requests for Revolving Loan..............................................................
SECTION 2.04. Swingline Loans..........................................................................
SECTION 2.05. Letters of Credit........................................................................
SECTION 2.06. Funding of Borrowings....................................................................
SECTION 2.07. Interest Elections.......................................................................
SECTION 2.08. Termination, Reduction and Increase of Commitments.......................................
SECTION 2.09. Repayment of Loans; Evidence of Debt.....................................................
SECTION 2.10. Prepayment of Loans......................................................................
SECTION 2.11. Fees.....................................................................................
SECTION 2.12. Interest.................................................................................
SECTION 2.13. Alternate Rate of Interest...............................................................
SECTION 2.14. Increased Costs..........................................................................
SECTION 2.15. Break Funding Payments...................................................................
SECTION 2.16. Taxes....................................................................................
SECTION 2.17. Payments Generally; Pro Rata Treatment; Sharing of Set-offs..............................
SECTION 2.18. Mitigation Obligations; Replacement of Lenders...........................................
ARTICLE III
REPRESENTATIONS AND WARRANTIES
SECTION 3.01. Organization; Powers.....................................................................
SECTION 3.02. Authorization; Enforceability............................................................
SECTION 3.03. Governmental Approvals; No Conflicts.....................................................
SECTION 3.04. Financial Condition; No Material Adverse Change..........................................
(i)
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SECTION 3.05. Properties...............................................................................
SECTION 3.06. Litigation and Environmental Matters.....................................................
SECTION 3.07. Compliance with Laws and Agreements......................................................
SECTION 3.08. Investment and Holding Company Status....................................................
SECTION 3.09. Taxes....................................................................................
SECTION 3.10. ERISA....................................................................................
SECTION 3.11. Disclosure...............................................................................
SECTION 3.12. Regulations U and X......................................................................
SECTION 3.13. Material Agreements and Liens............................................................
SECTION 3.14. Subsidiaries, Etc........................................................................
SECTION 3.15. Solvency.................................................................................
SECTION 3.16. Year 2000................................................................................
ARTICLE IV
CONDITIONS
SECTION 4.01. Effective Date...........................................................................
SECTION 4.02. Each Credit Event........................................................................
ARTICLE V
AFFIRMATIVE COVENANTS
SECTION 5.01. Financial Statements and Other Information...............................................
SECTION 5.02. Notices of Material Events...............................................................
SECTION 5.03. Existence; Conduct of Business...........................................................
SECTION 5.04. Payment of Obligations...................................................................
SECTION 5.05. Maintenance of Properties; Insurance.....................................................
SECTION 5.06. Books and Records; Inspection Rights.....................................................
SECTION 5.07. Compliance with Laws.....................................................................
SECTION 5.08. Use of Proceeds and Letters of Credit....................................................
SECTION 5.09. Additional Subsidiary Guarantors.........................................................
ARTICLE VI
NEGATIVE COVENANTS
SECTION 6.01. Indebtedness.............................................................................
SECTION 6.02. Liens....................................................................................
SECTION 6.03. Fundamental Changes......................................................................
SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions................................
SECTION 6.05. Hedging Agreements.......................................................................
SECTION 6.06. Restricted Payments......................................................................
(ii)
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SECTION 6.07. Transactions with Affiliates.............................................................
SECTION 6.08. Restrictive Agreements...................................................................
SECTION 6.09. Senior Note Documents....................................................................
SECTION 6.10. Limitation on Sale and Leaseback Transactions............................................
SECTION 6.11. Fiscal Periods...........................................................................
SECTION 6.12. Financial Covenants......................................................................
SECTION 6.13. Senior Subordinated Notes................................................................
SECTION 6.14. Year 2000 Compliance.....................................................................
ARTICLE VII
EVENTS OF DEFAULT.......................................................
ARTICLE VIII
GUARANTEE
SECTION 8.01 The Guarantee.............................................................................
SECTION 8.02 Obligations Unconditional.................................................................
SECTION 8.03 Reinstatement.............................................................................
SECTION 8.04 Subrogation...............................................................................
SECTION 8.05 Remedies..................................................................................
SECTION 8.06 Instrument for the Payment of Money.......................................................
SECTION 8.07 Continuing Guarantee......................................................................
SECTION 8.08 Rights of Contribution....................................................................
SECTION 8.09 General Limitation on Guarantee Obligations...............................................
ARTICLE IX
THE ADMINISTRATIVE AGENT................................................
ARTICLE X
MISCELLANEOUS
SECTION 10.01. Notices.................................................................................
SECTION 10.02. Waivers; Amendments.....................................................................
SECTION 10.03. Expenses; Indemnity: Damage Waiver......................................................
SECTION 10.04. Successors and Assigns..................................................................
SECTION 10.05. Survival................................................................................
SECTION 10.06. Counterparts; Integration; Effectiveness................................................
SECTION 10.07. Severability............................................................................
SECTION 10.08. Right of Setoff.........................................................................
(iii)
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SECTION 10.09. Governing Law; Jurisdiction; Consent to Service of Process..............................
SECTION 10.10. WAIVER OF JURY TRIAL....................................................................
SECTION 10.11. Headings................................................................................
SECTION 10.12. Confidentiality.........................................................................
SECTION 10.13. Perfection of Security Interests........................................................
SECTION 10.14. Acknowledgements........................................................................
SECTION 10.15. European Monetary Union.................................................................
SECTION 10.16. Judgment Currency.......................................................................
ARTICLE XI
CONFIRMATION OF SECURITY AGREEMENT......................................
SCHEDULES:
Schedule 2.01 -- Commitments
Schedule 3.06 -- Disclosed Matters
Schedule 3.13 -- Material Agreements and Liens
Schedule 3.14 -- Subsidiaries
Schedule 6.01 -- Existing Indebtedness
Schedule 6.02 -- Existing Liens
Schedule 6.08 -- Existing Restrictions
Schedule 11 -- Security Agreement Revised Annexes
EXHIBITS:
Exhibit A -- Form of Assignment and Acceptance
Exhibit B -- Form of Borrowing Base Certificate
Exhibit C -- Copy of Security Agreement
Exhibit D -- Form of Opinion of Counsel to the Obligors
Exhibit E -- Form of Opinion of Special Counsel
Exhibit F -- Form of Intercompany Note
Exhibit G -- Copy of Intercreditor Agreement
(iv)
AMENDED AND RESTATED MULTI-YEAR CREDIT AGREEMENT dated as of
September 8, 1999, among SMITHFIELD FOODS, INC., a Virginia corporation (the
"Borrower"), each of the Subsidiaries of the Borrower identified under the
caption "SUBSIDIARY GUARANTORS" on the signature pages hereto or that, pursuant
to Section 5.09 hereof, shall become a "Subsidiary Guarantor" hereunder
(individually, a "Subsidiary Guarantor" and, collectively, the "Subsidiary
Guarantors" and, together with the Borrower, the "Obligors"), each of the
lenders that is a party hereto identified under the caption "LENDERS" on
Schedule 2.01 hereto or that, pursuant to Sections 2.08 or 10.04 hereof, shall
become a "Lender" hereunder (individually, a "Lender" and, collectively, the
"Lenders") and THE CHASE MANHATTAN BANK, in its capacity as administrative agent
for the Lenders hereunder (the "Administrative Agent").
The Borrower, the Subsidiary Guarantors named therein, the
lenders named therein (including certain of the Lenders hereunder) and The Chase
Manhattan Bank, as Administrative Agent, are parties to a Credit Agreement dated
as of July 15, 1997 (as heretofore modified and supplemented and in effect on
the date hereof immediately before giving effect to the amendment and
restatement contemplated hereby, the "Existing Credit Agreement").
The Borrower and its subsidiaries are engaged as an integrated
group in the business of pork production, hog farming, pork processing and
manufacturing spices and chemicals, and in related businesses, and in furnishing
the required supplies, services, equipment, credit and other facilities for such
integrated operation. The integrated operation requires financing on such a
basis that credit supplied to the Borrower be made available from time to time
to the Subsidiary Guarantors, as required for the continued successful operation
of the Obligors, separately, and the integrated operation as a whole. In that
connection, the Obligors have requested that the Lenders (as defined in the
Existing Credit Agreement) and the Administrative Agent amend and restate the
Existing Credit Agreement to provide, inter alia, for extensions of credit, by
means of Dollar and Foreign Currency denominated loans and letters of credit, in
an aggregate amount at any one time outstanding up to but not exceeding
$400,000,000 or its equivalent as herein provided (which amount may, in the
circumstances hereinafter provided, be increased to $450,000,000 or its
equivalent) to the Borrower (to be made available by the Borrower directly or
indirectly to the Subsidiary Guarantors and other of its Subsidiaries in the
circumstances specified herein) to finance the working capital needs and for
other general corporate purposes of the Borrower and its subsidiaries in the
ordinary course of business.
The Required Lenders are willing to so agree, and accordingly,
the parties hereto agree that the Existing Credit Agreement shall be amended and
restated as of the date hereof (but subject to Section 5.01) in its entirety as
follows:
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ARTICLE I
DEFINITIONS
SECTION 1.01. Defined Terms. As used in this Agreement, the
following terms have the meanings specified below:
"ABR", when used in reference to any Loan or Borrowing, refers
to whether such Loan, or the Loans comprising such Borrowing, are bearing
interest at a rate determined by reference to the Alternate Base Rate. ABR Loans
may be denominated only in Dollars.
"Acquisition" means any transaction, or any series of related
transactions, consummated after the date of this Agreement, by which the
Borrower and/or any of its Subsidiaries (a) acquires any going business or all
or substantially all of the assets of any Person, whether through purchase of
assets, merger or otherwise, (b) directly or indirectly acquires control of at
least a majority (in number of votes) of the securities of a corporation that
have ordinary voting power for the election of directors or (c) directly or
indirectly acquires control of at least a majority of the partner, member or
other ownership interests of any Person that is not a corporation.
"Adjusted LIBO Rate" means, with respect to any Eurocurrency
Borrowing for any Interest Period, an interest rate per annum (rounded upwards,
if necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such
Interest Period multiplied by (b) the Statutory Reserve Rate.
"Administrative Agent's Account" means, for each Currency, an
account in respect of such Currency designated by the Administrative Agent in a
notice to the Borrower and the Lenders.
"Administrative Questionnaire" means an Administrative
Questionnaire in a form supplied by the Administrative Agent.
"Affected Currency" has the meaning assigned to such term in
Section 2.13.
"Affiliate" means, with respect to a specified Person, another
Person that directly, or indirectly through one or more intermediaries, Controls
or is Controlled by or is under common Control with the Person specified.
"Alternate Base Rate" means, for any day, a rate per annum
equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Base
CD Rate in effect on such day plus 1% and (c) the Federal Funds Effective Rate
in effect on such day plus 1/2 of 1%. Any change in the Alternate Base Rate due
to a change in the Prime Rate, the Base CD Rate or the Federal Funds Effective
Rate shall be effective from and including the effective date of such change in
the Prime Rate, the Base CD Rate or the Federal Funds Effective Rate,
respectively.
"Applicable Dollar Percentage" means, with respect to any
Dollar Lender, the percentage of the Total Dollar Sub-Commitment represented by
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such Dollar Lender's Dollar Sub-Commitment; provided that if the Dollar
Sub-Commitments have terminated or expired, the Applicable Dollar Percentages
shall be determined based upon the Total Dollar Sub-Commitment most recently in
effect, giving effect to any assignments.
"Applicable Percentage" means, with respect to any Lender, the
percentage of the Total Commitment represented by such Lender's Commitments;
provided that if the Commitments have terminated or expired, the Applicable
Percentages shall be determined based upon the Total Commitment most recently in
effect, giving effect to any assignments.
"Applicable Multicurrency Percentage" means, with respect to
any Multicurrency Lender, the percentage of the Total Multicurrency
Sub-Commitment represented by such Multicurrency Lender's Multicurrency
Sub-Commitment; provided that if the Multicurrency Sub-Commitments have
terminated or expired, the Applicable Multicurrency Percentages shall be
determined based upon the Total Multicurrency Sub-Commitment most recently in
effect, giving effect to any assignments.
"Applicable Rate" means, with respect to any ABR Loan,
Eurocurrency Revolving Loan, Federal Funds Loan or Swingline Loan, or with
respect to the Commitment Fees payable hereunder, for each Rate Period (as
defined below), the respective rate per annum indicated below for Loans of such
Type or Commitment Fees, as applicable, opposite the applicable Interest
Coverage Ratio (as defined below) indicated below for such Rate Period:
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Applicable Rate for
Eurocurrency Loans, Federal
Applicable Rate Funds Loans and Letters of
Interest Coverage Ratio for ABR Loans Credit Commitment Fees
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Greater than or equal to 5.0 to 1 -0- 0.750% 0.200%
("Tier I")
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Less than 5.0 to 1 and greater than or -0- 0.875% 0.225%
equal to 4.5 to 1
("Tier II")
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Less than 4.5 to 1 and greater than or -0- 1.000% 0.250%
equal to 4.0 to 1
("Tier III")
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Less than 4.0 to 1 and greater than or 0.125% 1.125% 0.275%
equal to 3.5 to 1
("Tier IV")
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Less than 3.5 to 1
("Tier V") 0.250% 1.250% 0.300%
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For purposes hereof, (i) a "Rate Period" means the period
commencing on a Rate Reset Date to but not including the immediately following
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Rate Reset Date; (ii) a "Rate Reset Date" means, with respect to any fiscal
quarter or fiscal year, the earlier of (x) the date on which the Borrower
delivers (or has delivered pursuant to the Existing Credit Agreement) the
certificate referred to in Section 5.01(c) (a "Compliance Certificate") in
respect of such fiscal quarter or fiscal year, as the case may be, and (y) the
date on which the Borrower is required to have delivered the financial
statements under Section 5.01(a) or (b) in respect of such fiscal quarter or
fiscal year, as the case may be; and (iii) "Interest Coverage Ratio" means, for
any Rate Period, the ratio of Consolidated EBITDA for the period of four
consecutive fiscal quarters of the Borrower ending on or most recently prior to
the first day of such Rate Period to Consolidated Interest Expense for such
period of four consecutive fiscal quarters.
Anything in this Agreement to the contrary notwithstanding,
but subject to Section 2.12(d), the Applicable Rate shall be the applicable rate
provided for in Tier V in the table set forth above in this definition (x)
during any period when an Event of Default shall have occurred and be
continuing, or (y) if the applicable Compliance Certificate shall not be
delivered within the time that the applicable financial statements are required
to be delivered by Section 5.01(a) or (b), as the case may be (but only, in the
case of this clause (y), with respect to the portion of such Rate Period prior
to the delivery of such Compliance Certificate).
"Approved Foreign Currency" means, at any time, the French
Franc and the Euro; provided that with the prior written agreement of all of the
Multicurrency Lenders, such term shall include any other Foreign Currency, that,
at such time, (a) is dealt with in the London interbank market, (b) is freely
transferable and convertible into Dollars in the London foreign exchange market
and (c) with respect to which no central bank or other governmental
authorization in the country of issue of such Foreign Currency is required to
permit use of such Foreign Currency by any Multicurrency Lender for making any
Loan hereunder and/or to permit the Borrower to borrow and repay the principal
thereof and to pay the interest thereon, unless such authorization has been
obtained and is in full force and effect.
"Arranger" means Chase Securities Inc.
"Assessment Rate" means, for any day, the annual assessment
rate in effect on such day that is payable by a member of the Bank Insurance
Fund classified as "well-capitalized" and within supervisory subgroup "B" (or a
comparable successor risk classification) within the meaning of 12 C.F.R. Part
327 (or any successor provision) to the Federal Deposit Insurance Corporation
for insurance by such Corporation of time deposits made in Dollars at the
offices of such member in the United States; provided that if, as a result of
any change in any law, rule or regulation, it is no longer possible to determine
the Assessment Rate as aforesaid, then the Assessment Rate shall be such annual
rate as shall be determined by the Administrative Agent to be representative of
the cost of such insurance to the Lenders.
"Assignment and Acceptance" means an assignment and acceptance
entered into by a Lender and an assignee (with the consent of any party whose
consent is required by Section 10.04), and accepted by the Administrative Agent,
in the form of Exhibit A or any other form approved by the Administrative Agent.
"Assuming Lender" has the meaning assigned to such term in
Section 2.08(d).
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"Availability Period" means the period from and including the
Effective Date to but excluding the earlier of the Maturity Date and the date of
termination of the Commitments.
"Base CD Rate" means the sum of (a) the Three-Month Secondary
CD Rate multiplied by the Statutory Reserve Rate plus (b) the Assessment Rate.
"Board" means the Board of Governors of the Federal Reserve
System of the United States of America.
"Borrowing" means (a) Revolving Loans of the same Type, made,
converted or continued on the same date and, in the case of Eurocurrency Loans,
denominated in the same Currency and as to which a single Interest Period is in
effect or (b) a Swingline Loan.
"Borrowing Base" means, at any time for any First Tier
Subsidiary, an amount equal to (a) 75% of the result obtained from the following
calculation: (i) the aggregate amount of Eligible Inventory (valued at the lower
of (x) cost, on a first-in-first-out basis or (y) fair market value) of such
First Tier Subsidiary and its subsidiaries that are Subsidiary Guarantors,
determined on a consolidated basis, plus (ii) the aggregate amount of Eligible
Receivables of such First Tier Subsidiary and its subsidiaries that are
Subsidiary Guarantors at such time, in each case as reflected in the Borrowing
Base Certificate then most recently received by the Administrative Agent
hereunder minus (iii) reserves maintained by such First Tier Subsidiary and its
subsidiaries that are Subsidiary Guarantors in respect of Eligible Receivables
relating to discounts, advertising, allowances and similar items minus (b) the
aggregate amount of outstanding checks for the purchase of Farm Products (as
defined in the Security Agreement) drawn by such First Tier Subsidiary and its
Subsidiaries that have not cleared.
"Borrowing Base Certificate" means a certificate substantially
in the form of Exhibit B hereto signed by a Financial Officer.
"Borrowing Request" means a request by the Borrower for a
Revolving Borrowing in accordance with Section 2.03.
"Business Day" means any day (a) that is not a Saturday,
Sunday or other day on which commercial banks in New York City are authorized or
required by law to remain closed, (b) if such day relates to a Borrowing of, a
payment or prepayment of principal of or interest on, a continuation or
conversion of or into, or the Interest Period for, a Eurocurrency Borrowing
denominated in Dollars, or to a notice by the Borrower with respect to any such
Borrowing, payment, prepayment, continuation, conversion, or Interest Period,
that is also a day on which dealings in deposits denominated in Dollars are
carried out in the London interbank market and (c) if such day relates to a
Borrowing or continuation of, a payment or prepayment of principal of or
interest on, or the Interest Period for, any Borrowing denominated in any
Foreign Currency, or to a notice by the Borrower with respect to any such
Borrowing, continuation, payment, prepayment or Interest Period, that is also a
day on which commercial banks in the London foreign exchange market settle
payments in the Principal Financial Center for such Foreign Currency.
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"Capital Lease Obligations" of any Person means the
obligations of such Person to pay rent or other amounts under any lease of (or
other arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP.
"Change in Control" means (a) the acquisition of ownership,
directly or indirectly, beneficially or of record, by any Person or group
(within the meaning of the Securities Exchange Act of 1934 and the rules of the
Securities and Exchange Commission thereunder as in effect on the date hereof),
of shares representing more than 25% of the aggregate ordinary voting power
represented by the issued and outstanding capital stock of the Borrower; (b)
occupation of a majority of the seats (other than vacant seats) on the board of
directors of the Borrower by Persons who were neither (i) nominated by the board
of directors of the Borrower nor (ii) appointed by directors so nominated; or
(c) the acquisition of direct or indirect Control of the Borrower by any Person
or group.
"Change in Law" means (a) the adoption of any law, rule or
regulation after the date of this Agreement, (b) any change in any law, rule or
regulation or in the interpretation or application thereof by any Governmental
Authority after the date of this Agreement or (c) compliance by any Lender or
Issuing Bank (or, for purposes of Section 2.14(b), by any lending office of such
Lender or by such Lender's or Issuing Bank's holding company, if any) with any
request, guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement.
"Chase" means The Chase Manhattan Bank.
"Class", when used in reference to any Loan or Borrowing,
refers to whether such Loan, or the Loans comprising such Borrowing, are
Revolving Loans or Swingline Loans.
"Code" means the Internal Revenue Code of 1986, as amended
from time to time.
"Collateral Agent" means Chase, as collateral agent under the
Security Agreement.
"Commitment" means, with respect to each Lender, the
commitment of such Lender to make Revolving Loans and to acquire participations
in Letters of Credit and Swingline Loans hereunder, expressed as an amount
representing the maximum aggregate amount of such Lender's Revolving Credit
Exposure hereunder, as such commitment may be (a) reduced or increased from time
to time pursuant to Section 2.08 and (b) reduced or increased from time to time
pursuant to assignments by or to such Lender pursuant to Section 10.04 (and the
"Commitment" of any Lender shall be deemed to include its Dollar Sub-Commitment
and its Multicurrency Sub-Commitment, if any). The initial amount of each
Lender's Commitment is set forth on Schedule 2.01, or in the Assignment and
Acceptance pursuant to which such Lender shall have assumed its Commitment, as
applicable. The initial amount of the Total Commitment (including the Total
Dollar Sub-Commitment and the Total Multicurrency Sub-Commitment) is
$400,000,000.
-7-
"Commitment Fee" means the fees payable at the Applicable Rate
pursuant to Section 2.11(a).
"Commitment Increase" has the meaning assigned to such term in
Section 2.08(d).
"Commitment Increase Date" has the meaning assigned to such
term in Section 2.08(d).
"Consolidated Borrowing Base" means, at any time, the
aggregate amount of the Borrowing Bases at such time of the First Tier
Subsidiaries that are Subsidiary Guarantors.
"Consolidated Current Ratio" means, on any date, the ratio of
(i) the consolidated current assets of the Borrower and its Subsidiaries on such
date to (ii) the sum on such date (without duplication) of the consolidated
current liabilities of the Borrower and its Subsidiaries plus the aggregate
outstanding principal amount of the Loans and Pari Passu Debt plus the aggregate
principal amount of Indebtedness of the Borrower and its Subsidiaries that would
be characterized as current liabilities but for the existence of the Commitments
hereunder or any commitments of lenders to make Pari Passu Debt available to the
Borrower or any of its Subsidiaries.
"Consolidated EBIT" means, for any period, an amount equal to
(a) the sum for such period of (i) Consolidated Net Income, (ii) to the extent
subtracted in determining such Consolidated Net Income, provisions for (x) taxes
based on income and (y) Consolidated Interest Expense minus (b) any items of
gain (or plus any items of loss) which were included in determining such
Consolidated Net Income and were not realized in the ordinary course of
business.
"Consolidated EBITDA" means, for any period, an amount equal
to (a) the sum for such period of Consolidated Net Income and, to the extent
subtracted in determining such Consolidated Net Income, provisions for (i) taxes
based on income, (ii) Consolidated Interest Expense and (iii) depreciation and
amortization expense minus (b) any items of gain (or plus any items of loss)
which were included in determining such Consolidated Net Income and were (i) not
realized in the ordinary course of business or (ii) the result of any sale of
assets.
"Consolidated Intangible Assets" means, on any date, the
aggregate amount of Intangible Assets of the Borrower and its Subsidiaries,
determined on a consolidated basis at such time.
"Consolidated Interest Expense" means, for any period, the
consolidated interest expense of the Borrower and its Subsidiaries (whether cash
or non-cash interest expense or deferred or accrued interest expense and the
interest portion of all Capital Lease Obligations during such period).
"Consolidated Net Income" means, for any period, the net
income (or deficit) of the Borrower and its Subsidiaries; provided, however,
that there shall be excluded from Consolidated Net Income (i) the income (or
deficit) of any Person accrued prior to the date it becomes a Subsidiary or is
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merged into or consolidated with the Borrower or such Person's assets are
acquired by the Borrower, (ii) the income (or deficit) of any Person (other than
a consolidated Subsidiary) in which the Borrower has an ownership interest,
except to the extent that any such income has been actually received by the
Borrower in the form of dividends or similar distributions, (iii) the
undistributed earnings of any Subsidiary to the extent that the declaration or
payment of dividends or similar distributions of such Subsidiary is restricted
and (iv) any income or gain resulting from any write-up or revaluation of the
assets of the Borrower or its Subsidiaries.
"Consolidated Shareholders' Equity" means, on any date, the
aggregate amount of shareholders' equity of the Borrower and its Subsidiaries on
such date, determined on a consolidated basis.
"Consolidated Tangible Net Worth" means, on any date, the
excess of Consolidated Shareholders' Equity over Consolidated Intangible Assets
on such date.
"Consolidated Total Funded Debt" means the aggregate amount of
Funded Debt of the Borrower and its Subsidiaries, determined on a consolidated
basis in accordance with GAAP, minus, to the extent included therein, the
outstanding amount of the Loans (other than the lowest average daily outstanding
balance of the Loans for any period of 30 consecutive days during the 12 month
period then most recently ended).
"Consolidated Total Liabilities" means, on any date, the
aggregate amount at which all liabilities of the Borrower and its Subsidiaries
(including, without limitation, (a) all Guarantees of Indebtedness by such
Persons and (b) all amounts attributable to Mandatorily Redeemable Stock of the
Borrower and its Subsidiaries to the extent that such Mandatorily Redeemable
Stock is redeemable within one year of such date) would be shown on a
consolidated balance sheet of such Persons at such time.
"Consolidated Working Capital" means, on any date, the excess
of (i) the consolidated current assets of the Borrower and its Subsidiaries on
such date over (ii) the sum on such date (without duplication) of the
consolidated current liabilities of the Borrower and its Subsidiaries plus the
aggregate outstanding principal amount of the Loans and Pari Passu Debt plus the
aggregate principal amount of any commercial paper or other short-term
Indebtedness of the Borrower and its Subsidiaries that would be characterized as
current liabilities but for the existence of the Commitments hereunder or any
commitments of lenders to make Pari Passu Debt available to the Borrower or any
of its Subsidiaries.
"Control" means the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of a
Person, whether through the ability to exercise voting power, by contract or
otherwise. "Controlling" and "Controlled" have meanings correlative thereto.
"Currency" means Dollars or any Foreign Currency.
"Debt Issuance" means any issuance or incurrence by the
Borrower or any of its Subsidiaries of any Indebtedness.
-9-
"Debt Service" means, for any period, the sum, for the
Borrower and its Subsidiaries (determined on a consolidated basis without
duplication in accordance with GAAP), of the following: (a) all regularly
scheduled payments or prepayments of principal of Indebtedness made during such
period plus (b) all Interest Expense for such period.
"Default" means any event or condition which constitutes an
Event of Default or which upon notice, lapse of time or both would, unless cured
or waived, become an Event of Default.
"Disclosed Matters" means the actions, suits and proceedings
and the environmental matters disclosed in Schedule 3.06.
"Dollar Equivalent" means, with respect to any Borrowing
denominated in an Approved Foreign Currency, the amount of Dollars that would be
required to purchase the amount of the Foreign Currency of such Borrowing on the
date two Business Days prior to the date of such Borrowing (or, in the case of
any determination made under Section 2.10(b) or redenomination under the last
sentence of Section 2.17(c), or in the case of a redenomination of any other
amount into Dollars as provided herein, on the date of determination or
redenomination therein referred to), based upon the spot selling rate at which
the Administrative Agent offers to sell such Approved Foreign Currency for
Dollars in the London foreign exchange market at approximately 11:00 a.m.,
London time, for delivery two days later, provided that with respect to any
determination to be made by the Borrower pursuant to Section 5.01(f), such spot
selling rate shall be determined by reference to the spot selling rate set forth
in the Wall Street Journal on the Business Day immediately preceding the date on
which such determination is to be made.
"Dollar LC Exposure" means, at any time, the sum of (a) the
aggregate undrawn amount of all outstanding Dollar Letters of Credit at such
time plus (b) the aggregate amount of all LC Disbursements in respect of such
Letters of Credit that have not yet been reimbursed by or on behalf of any
Obligor at such time. The Dollar LC Exposure of any Lender at any time shall be
its Applicable Dollar Percentage of the total Dollar LC Exposure at such time.
"Dollar Lender" means (a) on the Effective Date, the Lenders
having Dollar Sub-Commitments on Schedule 2.01 hereto under the heading "Dollar
Lenders" and (b) thereafter, the Lenders from time to time holding Loans made
pursuant to Dollar Sub-Commitments or holding Dollar Sub-Commitments, after
giving effect to any assignments thereof permitted by Section 10.04(b).
"Dollar Letters of Credit" means Letters of Credit that
utilize the Dollar Sub-Commitments.
"Dollar Loan" means a Loan denominated in Dollars.
"Dollar Sub-Commitment" means, as to each Dollar Lender, the
obligation of such Dollar Lender to make Revolving Loans and to acquire
participations in Letters of Credit hereunder, expressed as an amount
representing the maximum aggregate amount of such Lender's Revolving Dollar
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Credit Exposure hereunder, as such commitment may be (a) reduced or increased
from time to time pursuant to Section 2.08 and (b) reduced or increased from
time to time pursuant to assignments by or to such Lender pursuant to Section
10.04. The initial amount of each Lender's Dollar Sub-Commitment is set forth on
Schedule 2.01, or in the Assignment and Acceptance pursuant to which such Lender
shall have assumed its Dollar Sub-Commitment, as applicable. The initial
aggregate amount of the Total Dollar Sub-Commitment is $365,000,000.
"Dollars" or "$" refers to lawful money of the United States
of America.
"Effective Date" has the meaning specified in Section 4.01.
"Eligible Inventory" means, as at any date with respect to any
Person, all Inventory (i) that is owned by (and in the possession or under the
control of) such Person as at such date, (ii) that is located in a jurisdiction
in the United States of America, (iii) as to which (before the Security
Termination Date) appropriate Uniform Commercial Code financing statements have
been filed naming such Person as "debtor" and the Collateral Agent as "secured
party", and over which (before the Security Termination Date) the Collateral
Agent has a perfected security interest subject to no prior or equal Lien (other
than the pari passu security interest securing the Pari Passu Debt), subject to
Section 10.13, (iv) that meets all standards imposed by any governmental agency
or department or division thereof having regulatory authority over such
inventory, its use or sale, (v) for which such Person has made full and final
payment and (vi) that is currently usable in the manufacturing process or
saleable in the normal course of such Person's business without any notice to,
or consent of, any governmental agency or department or division thereof
(excluding however, except to the extent that the Required Lenders otherwise
agree with respect to any specific customer or third-party processor, any such
Inventory that has been shipped to a customer of such Person, including
third-party processors, even if on a consignment or "sale or return" basis, and
excluding repair and replacement parts for machinery and equipment).
Notwithstanding anything in clause (vi) of the foregoing sentence to the
contrary (but subject to clauses (i) through (v) of the foregoing sentence),
Eligible Inventory shall include but not be limited to all xxxxxxx, gilts,
boars, sows, feeder pigs, suckling pigs, nursery pigs and commercial sows and
boars, multiplier hogs, nucleus hogs and other hogs (collectively, "Hogs") at
the time of determination owned and being raised at facilities owned by such
Person or at facilities subject to an exclusive contract with such Person (i.e.,
the operator of such facility has no similar contract with any other Person) for
the feeding and raising of Hogs.
"Eligible Receivables" means, as at any date with respect to
any Person, the aggregate amount of all accounts (as defined in the Uniform
Commercial Code) of such Person arising from the sale by such Person of
Inventory in the ordinary course of its business and (before the Security
Termination Date) over which the Collateral Agent has a perfected security
interest subject to no prior or equal Lien (other than the pari passu security
interest securing the Pari Passu Debt), subject to Section 10.13, other than the
following (determined without duplication):
(a) any account not payable in Dollars,
(b) any account that is not paid within 60 days (subject to
the last sentence of this definition of "Eligible Receivables") after
the date of the invoice for the related inventory,
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(c) any account owing from a subsidiary or Affiliate of such
Person,
(d) any account (other than an LC-Backed Receivable) owing
from an account debtor whose principal place of business is located
outside of the United States of America, provided that the aggregate
amount of accounts that are not excluded from the definition of
"Eligible Receivables" pursuant to this clause (d) by virtue of their
constituting LC-Backed Receivables (other than LC-Backed Receivables
the related letter of credit for which has been delivered to the
Collateral Agent in pledge under the Security Agreement) may not exceed
10% of the Consolidated Borrowing Base,
(e) any account owing from an account debtor that is insolvent
or the subject of a bankruptcy case,
(f) any account that is more than 28 days (subject to the last
sentence of this definition of "Eligible Receivables") past due,
(g) all accounts of any account debtor if more than 20% of the
aggregate amount of the accounts owing from such account debtor are
more than 28 days (subject to the last sentence of this definition of
"Eligible Receivables") past due,
(h) all accounts owing from any account debtor if the accounts
owing from such account debtor and its Affiliates at the time exceed
10% of all accounts then payable to the Obligors,
(i) any account as to which there is any unresolved dispute
with the respective account debtor (but only to the extent of the
amount thereof in dispute),
(j) any account evidenced by an instrument (as defined in the
Uniform Commercial Code) not in the possession of the Collateral Agent
and containing all necessary endorsements,
(k) any account representing an obligation for goods sold on
consignment, approval or a sale-or-return basis or subject to any other
repurchase, return or offset arrangement,
(l) any amount as to which there is an offsetting liability
from the Borrower, any Subsidiary or any Affiliate of the Borrower (but
only to the extent of the amount of such offsetting liability), and
(m) all amounts reserved by any Subsidiary or Affiliate of the
Borrower related to advertising and promotional programs for the
respective account debtor (excluding general promotional reserves that
are not reserved on a specific account basis).
In recognition of the fact that, on the date of this Agreement, the accounting
systems of certain Subsidiaries are unable to track the number of days specified
in clauses (b), (f) and (g) above, such numbers of days for each such Subsidiary
shall be deemed for purposes hereof to be the number of days that the accounting
system of such Subsidiary can track that is closest to such specified number of
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days, provided that (i) if such specified number of days is exactly equidistant
from two numbers of days that can be so tracked, such specified number of days
shall be deemed to be the lower of such two numbers, (ii) if the closest such
number of days that can be so tracked is more than seven days higher than such
specified number of days, such specified number of days shall be deemed to be
the closest number of days that can be so tracked that is lower than such number
of specified days and (iii) this sentence shall cease to have any effect after
the date falling six months after the date hereof.
"Environmental Laws" means all laws, rules, regulations,
codes, ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any Governmental Authority,
relating in any way to the environment, preservation or reclamation of natural
resources, the management, release or threatened release of any Hazardous
Material or to health and safety matters.
"Environmental Liability" means any liability, contingent or
otherwise (including any liability for damages, costs of environmental
remediation, fines, penalties or indemnities), of the Borrower or any Subsidiary
directly or indirectly resulting from or based upon (a) violation of any
Environmental Law, (b) the generation, use, handling, transportation, storage,
treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous
Materials, (d) the release or threatened release of any Hazardous Materials into
the environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.
"Equity Issuance" means any issuance or sale by the Borrower
after the Effective Date of any of its capital stock.
"Equity Rights" means, with respect to any Person, any
outstanding subscriptions, options, warrants, commitments, preemptive rights or
agreements of any kind (including, without limitation, any stockholders' or
voting trust agreements) for the issuance, sale, registration or voting of, or
outstanding securities convertible into, any additional shares of capital stock
of any class, or partnership or other ownership interests of any type in, such
Person.
"ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time.
"ERISA Affiliate" means any trade or business (whether or not
incorporated) that, together with the Borrower, is treated as a single employer
under Section 414(b) or (c) of the Code or, solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.
"ERISA Event" means (a) any "reportable event", as defined in
Section 4043 of ERISA or the regulations issued thereunder with respect to a
Plan (other than an event for which the 30-day notice period is waived); (b) the
existence with respect to any Plan of an "accumulated funding deficiency" (as
defined in Section 412 of the Code or Section 302 of ERISA), whether or not
waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d)
of ERISA of an application for a waiver of the minimum funding standard with
respect to any Plan; (d) the incurrence by the Borrower or any of its ERISA
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Affiliates of any liability under Title IV of ERISA with respect to the
termination of any Plan; (e) the receipt by the Borrower or any ERISA Affiliate
from the PBGC or a plan administrator of any notice relating to an intention to
terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f)
the incurrence by the Borrower or any of its ERISA Affiliates of any liability
with respect to the withdrawal or partial withdrawal from any Plan or
Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of
any notice, or the receipt by any Multiemployer Plan from the Borrower or any
ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability
or a determination that a Multiemployer Plan is, or is expected to be, insolvent
or in reorganization, within the meaning of Title IV of ERISA.
"Eurocurrency", when used in reference to any Loan or
Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing,
are bearing interest at a rate determined by reference to the Adjusted LIBO
Rate.
"Euros", has the meaning assigned to such term in Section
10.15(a).
"Event of Default" has the meaning assigned to such term in
Article VII.
"Excluded Taxes" means, with respect to the Administrative
Agent, any Lender, the Issuing Banks or any other recipient of any payment to be
made by or on account of any obligation of the Obligors hereunder, (a) income or
franchise taxes imposed on (or measured by) its net income by the United States
of America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any
Lender, in which its applicable lending office is located, (b) any branch
profits taxes imposed by the United States of America or any similar tax imposed
by any other jurisdiction in which an Obligor is located and (c) in the case of
a Foreign Lender (other than an assignee pursuant to a request by the Obligors
under Section 2.18(b)), any withholding tax that is imposed on amounts payable
to such Foreign Lender at the time such Foreign Lender becomes a party to this
Agreement (or designates a new lending office) or is attributable to such
Foreign Lender's failure to comply with Section 2.16(e), except to the extent
that such Foreign Lender (or its assignor, if any) was entitled, at the time of
designation of a new lending office (or assignment), to receive additional
amounts from the Borrower with respect to such withholding tax pursuant to
Section 2.16(a).
"Existing Credit Agreement" has the meaning assigned to such
term in the preamble to this Agreement.
"Federal Funds", when used in reference to any Loan or
Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing,
are bearing interest at a rate determined by reference to the Federal Funds
Rate. Federal Funds Loans may be denominated only in Dollars.
"Federal Funds Effective Rate" means, for any day, the
weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the
rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers, as published on the next
succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average
-14-
(rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for
such day for such transactions received by the Administrative Agent from three
Federal funds brokers of recognized standing selected by it.
"Federal Funds Rate" means the "offered rate", as determined
by the Administrative Agent, for overnight federal funds.
"Financial Officer" means the chief financial officer,
principal accounting officer, treasurer or controller of the Borrower.
"First Tier Subsidiary" means (i) a Subsidiary all of the
issued and outstanding capital stock of which is owned directly by the Borrower
or (ii) Xxxxx'x of Carolina, Inc.
"Foreign Currency" means at any time any Currency other than
Dollars.
"Foreign Currency Equivalent" means, with respect to any
amount in Dollars, the amount of a Foreign Currency that could be purchased with
such amount of Dollars using the reciprocal of the foreign exchange rate(s)
specified in the definition of the term "Dollar Equivalent", as determined by
the Administrative Agent.
"Foreign Lender" means any Lender that is organized under the
laws of a jurisdiction other than that in which the Borrower is located. For
purposes of this definition, the United States of America, each State thereof
and the District of Columbia shall be deemed to constitute a single
jurisdiction.
"Funded Debt" means all Indebtedness which would, in
accordance with GAAP, constitute long term debt, including:
(a) any Indebtedness with a maturity more than one year after
the creation of such Indebtedness, including any portion thereof in
current liabilities;
(b) any Indebtedness outstanding under a revolving credit or
similar agreement providing for borrowings (and renewals and extensions
thereof) over a period of more than one year notwithstanding that any
such Indebtedness may be payable on demand or within one year after the
creation thereof;
(c) any Capital Lease Obligations; and
(d) any Guarantee with respect to Funded Debt of another
Person.
"GAAP" means generally accepted accounting principles in the
United States of America.
"Governmental Authority" means the government of the United
States of America, any other nation or any political subdivision thereof,
whether state or local, and any agency, authority, instrumentality, regulatory
body, court, central bank or other entity exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.
-15-
"Guarantee" of or by any Person (the "guarantor") means any
obligation, contingent or otherwise, of the guarantor guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation of any
other Person (the "primary obligor") in any manner, whether directly or
indirectly, and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation or to purchase (or to advance or
supply funds for the purchase of) any security for the payment thereof, (b) to
purchase or lease property, securities or services for the purpose of assuring
the owner of such Indebtedness or other obligation of the payment thereof, (c)
to maintain working capital, equity capital or any other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party
in respect of any letter of credit or letter of guaranty issued to support such
Indebtedness or obligation; provided, that the term Guarantee shall not include
endorsements for collection or deposit in the ordinary course of business.
"Hazardous Materials" means all explosive or radioactive
substances or wastes and all hazardous or toxic substances, wastes or other
pollutants, including petroleum or petroleum distillates, asbestos or asbestos
containing materials, polychlorinated biphenyls, radon gas, infectious or
medical wastes and all other substances or wastes of any nature regulated
pursuant to any Environmental Law.
"Hedging Agreement" means any swap agreement, cap agreement,
collar agreement, put or call, futures contract, forward contract or similar
agreement or arrangement entered into in respect of interest rates, foreign
exchange rates or prices of commodities.
"Increasing Lender" has the meaning assigned to such term in
Section 2.08(d).
"Indebtedness" of any Person means, without duplication, (a)
all obligations of such Person for borrowed money or with respect to deposits or
advances of any kind, (b) all obligations of such Person evidenced by bonds,
debentures, notes or similar instruments, (c) all obligations of such Person
upon which interest charges are customarily paid, (d) all obligations of such
Person under conditional sale or other title retention agreements relating to
property acquired by such Person, (e) all obligations of such Person in respect
of the deferred purchase price of property or services (excluding accounts
payable incurred in the ordinary course of business), (f) all Indebtedness of
others secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien on property owned or
acquired by such Person, whether or not the Indebtedness secured thereby has
been assumed, (g) all Guarantees by such Person of Indebtedness of others, (h)
all Capital Lease Obligations of such Person, (i) all obligations, contingent or
otherwise, of such Person as an account party in respect of letters of credit
and letters of guaranty and (j) all obligations, contingent or otherwise, of
such Person in respect of bankers' acceptances. The Indebtedness of any Person
shall include the Indebtedness of any other entity (including any partnership in
which such Person is a general partner) to the extent such Person is liable
therefor as a result of such Person's ownership interest in or other
relationship with such entity, except to the extent the terms of such
Indebtedness provide that such Person is not liable therefor. The Indebtedness
-16-
of a Person shall not include obligations of such Person to pay rent under
operating leases to the extent that such obligations do not constitute Capital
Lease Obligations.
"Indemnified Taxes" means Taxes other than Excluded Taxes.
"Intangible Assets" means, with respect to any Person on any
date, the following:
(a) patents, copyrights, trademarks, trade names, service
marks, brand names, franchises, goodwill, experimental expenses and
other similar intangibles;
(b) deferred assets (other than prepaid taxes, prepaid
insurance, prepaid contract payments, prepaid license fees and other
prepaid expenses which are refundable);
(c) unamortized debt discount and expense; and
(d) all other property or assets (whether real, personal or
mixed, and whether tangible or intangible) which would be considered to
be intangible under GAAP.
"Intercompany Note" has the meaning assigned to such term in
Section 5.08(a).
"Intercreditor Agreement" means the Intercreditor Agreement, a
copy of which is attached as Exhibit G hereto, as the same shall be modified and
supplemented and in effect from time to time.
"Interest Election Request" means a request by the Borrower to
convert or continue a Revolving Borrowing in accordance with Section 2.07.
"Interest Expense" means, for any period, the sum, for the
Borrower (determined without duplication in accordance with GAAP), of the
following: (a) all interest in respect of Indebtedness accrued or capitalized
during such period (whether or not actually paid during such period) plus (b)
the net amounts payable (or minus the net amounts receivable) under Hedging
Agreements related to interest and accrued during such period (whether or not
actually paid or received during such period).
"Interest Payment Date" means (a) with respect to any ABR
Revolving Loan, the last day of each March, June, September and December, (b)
with respect to any Eurocurrency Loan, the last day of the Interest Period
applicable to the Borrowing of which such Loan is a part and, in the case of a
Eurocurrency Borrowing with an Interest Period of more than three months'
duration, each day prior to the last day of such Interest Period that occurs at
intervals of three months' duration after the first day of such Interest Period,
(c) with respect to any Federal Funds Revolving Loan, the last day of each month
and (d) with respect to any Swingline Loan, the day that such Loan is required
to be repaid.
"Interest Period" means, with respect to any Eurocurrency
Borrowing, the period commencing on the date of such Borrowing and ending on the
numerically corresponding day in the calendar month that is one, two, three or
six months thereafter, as the Borrower may elect; provided, that (i) if any
Interest Period would end on a day other than a Business Day, such Interest
-17-
Period shall be extended to the next succeeding Business Day unless such next
succeeding Business Day would fall in the next calendar month, in which case
such Interest Period shall end on the next preceding Business Day, (ii) any
Interest Period that commences on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the last
calendar month of such Interest Period) shall end on the last Business Day of
the last calendar month of such Interest Period and (iii) no Interest Period
shall extend beyond the Maturity Date. For purposes hereof, the date of a
Borrowing initially shall be the date on which such Borrowing is made and
thereafter shall be the effective date of the most recent conversion or
continuation of such Borrowing.
"Inventory" means, collectively, "Inventory" and "Farm
Products" as defined in the Security Agreement.
"Investment" means, for any Person: (a) the acquisition
(whether for cash, property, services or securities or otherwise) of capital
stock, bonds, notes, debentures, partnership or other ownership interests or
other securities of any other Person or any agreement to make any such
acquisition (including, without limitation, any "short sale" or any sale of any
securities at a time when such securities are not owned by the Person entering
into such short sale); (b) the making of any deposit with, or advance, loan or
other extension of credit to, any other Person (including the purchase of
property from another Person subject to an understanding or agreement,
contingent or otherwise, to resell such property to such Person, but excluding
any such advance, loan or extension of credit having a term not exceeding 90
days representing the purchase price of programming, advertising, inventory or
supplies sold in the ordinary course of business); (c) the entering into of any
Guarantee of, or other contingent obligation with respect to, Indebtedness or
other liability of any other Person and (without duplication) any amount
committed to be advanced, lent or extended to such Person or (d) any Hedging
Agreement having the commercial effect of a synthetic or derivative Investment.
"Issuing Bank" means Chase, in its capacity as the issuer of
Letters of Credit hereunder, and its successors in such capacity as provided in
Section 2.05(i). Chase may, in its discretion, arrange for one or more Letters
of Credit to be issued by its Affiliates, in which case the term "Issuing Bank"
shall include any such Affiliate with respect to Letters of Credit issued by
such Affiliate. Any references herein to the "relevant" Issuing Bank shall mean
the issuer of the related Letter of Credit.
"Joint Venture" means any Investment by the Borrower or any of
its Subsidiaries as a joint venturer or partner in, or lender to, any other
Person (other than a Subsidiary) principally engaged in a business in which the
Borrower and its Subsidiaries are permitted by Section 6.03(c) to be engaged.
"LC-Backed Receivable" means an account (as defined in the
Uniform Commercial Code) to the extent that the payment thereof is backed by a
letter of credit issued for account of the related account debtor, or confirmed,
by a domestic office of a commercial bank organized under the laws of the United
States of America or any state thereof the short term deposits of which are
rated A-1 or better by S&P or P-1 by Moody's.
"LC Disbursement" means a payment made by an Issuing Bank
pursuant to a Letter of Credit.
-18-
"LC Exposure" means, as at any time, the sum of the Dollar LC
Exposure and the Multicurrency LC Exposure.
"Letter of Credit" means any letter of credit issued pursuant
to this Agreement.
"LIBO Rate" means, with respect to any Eurocurrency Borrowing
for any Interest Period and denominated in any Currency, the rate appearing on
the Screen at approximately 11:00 a.m., London time, two Business Days prior to
the commencement of such Interest Period, as the rate for deposits denominated
in such Currency with a maturity comparable to such Interest Period. In the
event that such rate is not available on the Screen at such time for any reason,
then, unless the last sentence of Section 10.15(e) is applicable, the "LIBO
Rate" with respect to such Eurocurrency Borrowing for such Interest Period shall
be the rate at which deposits in such Currency in the amount of $5,000,000 and
for a maturity comparable to such Interest Period are offered by the principal
London office of the Administrative Agent in immediately available funds in the
London interbank market at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period.
"LIBOR" means, for any Currency, the rate at which deposits
denominated in such Currency are offered to leading banks in the London
interbank market.
"Lien" means, with respect to any asset, (a) any mortgage,
deed of trust, lien, pledge, hypothecation, encumbrance, charge or security
interest in, on or of such asset, (b) the interest of a vendor or a lessor under
any conditional sale agreement, capital lease or title retention agreement (or
any financing lease having substantially the same economic effect as any of the
foregoing) relating to such asset and (c) in the case of securities, any
purchase option, call or similar right of a third party with respect to such
securities. The interest of a lessor in any property leased pursuant to an
operating lease shall not constitute a Lien over such property securing
obligations of the related lessee to pay rent under such lease to the extent
that such obligations do not constitute Capital Lease Obligations.
"Loan Documents" means this Agreement, any promissory notes
evidencing Loans hereunder, any Intercompany Notes, and the Security Documents.
"Loans" means the loans made by the Lenders to the Borrower
pursuant to this Agreement.
"Local Time" means, with respect to any Loan denominated in or
any payment to be made in any Currency, the local time in the Principal
Financial Center for the Currency in which such Loan is denominated or such
payment is to be made.
"Mandatorily Redeemable Stock" means, with respect to any
Person, each share of such Person's capital stock to the extent that it is (a)
redeemable, payable or required to be purchased or otherwise retired or
extinguished, or convertible into Indebtedness of such Person (i) at a fixed or
determinable date, whether by operation of a sinking fund or otherwise, (ii) at
the option of any Person other than such Person or (iii) upon the occurrence of
a condition not solely within the control of such Person, such as redemption
required to be made out of future earnings or (b) convertible into other
Mandatorily Redeemable Stock of such Person.
-19-
"Margin Stock" means margin stock within the meaning of
Regulations U and X.
"Material Adverse Effect" means a material adverse effect on
(a) the Transactions, (b) the business, assets, operations, property, prospects
or condition, financial or otherwise, of the Obligors taken as a whole, (c) the
ability of any Obligor to perform any of its obligations under this Agreement or
the other Loan Documents or (d) the rights of or benefits available to the
Lenders under this Agreement or the other Loan Documents.
"Material Indebtedness" means Indebtedness (other than the
Loans and Letters of Credit), or obligations in respect of one or more Hedging
Agreements, of any one or more of the Borrower and its Subsidiaries in an
aggregate principal amount exceeding $5,000,000. For purposes of determining
Material Indebtedness, the "principal amount" of the obligations of the Borrower
or any Subsidiary in respect of any Hedging Agreement at any time shall be the
maximum aggregate amount (giving effect to any netting agreements) that the
Borrower or such Subsidiary would be required to pay if such Hedging Agreement
were terminated at such time.
"Maturity Date" means July 15, 2002; provided that if such
date is not a Business Day the Maturity Date shall be the immediately preceding
Business Day.
"Moody's" means Xxxxx'x Investors Service, Inc.
"Multicurrency LC Exposure" means, at any time, the sum of (a)
the aggregate undrawn amount of all outstanding Multicurrency Letters of Credit
at such time plus (b) the aggregate amount of all LC Disbursements in respect of
such Letters of Credit that have not yet been reimbursed by or on behalf of any
Obligor at such time. The Multicurrency LC Exposure of any Lender at any time
shall be its Applicable Multicurrency Percentage of the total Multicurrency LC
Exposure at such time.
"Multicurrency Lender" means (a) on the Effective Date, the
Lenders having Multicurrency Sub-Commitments on Schedule 2.01 hereto under the
heading "Multicurrency Lenders" and (b) thereafter, the Lenders from time to
time holding Loans made pursuant to Multicurrency Sub-Commitments or holding
Multicurrency Sub-Commitments, after giving effect to any assignments thereof
permitted by Section 10.04(b).
"Multicurrency Letters of Credit" means Letters of Credit that
utilize the Multicurrency Sub-Commitments.
"Multicurrency Loan" means a Loan denominated in an Approved
Foreign Currency.
"Multicurrency Sub-Commitment" means, as to each Multicurrency
Lender, the obligation of such Multicurrency Lender to make Revolving Loans and
to acquire participations in Letters of Credit hereunder, in each case,
denominated in Dollars or in an Approved Foreign Currency, expressed as a Dollar
amount representing the Dollar Equivalent of the maximum aggregate amount of
such Lender's Revolving Multicurrency Credit Exposure hereunder, as such
commitment may be (a) reduced or increased from time to time pursuant to Section
2.08 and (b) reduced or increased from time to time pursuant to assignments by
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or to such Lender pursuant to Section 10.04. The initial amount of each Lender's
Multicurrency Sub-Commitment is set forth on Schedule 2.01, or in the Assignment
and Acceptance pursuant to which such Lender shall have assumed its
Multicurrency Sub-Commitment, as applicable. The initial aggregate amount of the
Total Multicurrency Sub-Commitment is $35,000,000.
"Multiemployer Plan" means a multiemployer plan as defined in
Section 4001(a)(3) of ERISA.
"Net Cash Proceeds" means the aggregate cash proceeds received
by the Borrower from its issuance of the Senior Subordinated Notes, net of
transaction fees, costs and expenses incurred by the Borrower in connection with
such issuance.
"Obligors" means the Borrower and the Subsidiary Guarantors.
"Other Taxes" means any and all present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies arising from any payment made hereunder or from the execution, delivery
or enforcement of, or otherwise with respect to, this Agreement.
"Pari Passu Debt" means any Indebtedness (a) in respect of
which the Borrower is primarily liable as the borrower and the Subsidiary
Guarantors (but no other Subsidiary) are liable as guarantors, (b) that is
secured only by the Lien created by the Security Agreement and (c) that all of
the Lenders consent to as being treated as Pari Passu Debt. All of the
requirements set forth in the preceding clauses (a), (b) and (c) must be
satisfied in order for any Indebtedness to be Pari Passu Debt.
"PBGC" means the Pension Benefit Guaranty Corporation referred
to and defined in ERISA and any successor entity performing similar functions.
"Permitted Encumbrances" means:
(a) Liens imposed by law for taxes that are not yet due or are
being contested in compliance with Section 5.04;
(b) carriers', warehousemen's, mechanics', materialmen's,
repairmen's and other like Liens imposed by law, arising in the
ordinary course of business and securing obligations that are not
overdue by more than 30 days or are being contested in compliance with
Section 5.04;
(c) pledges and deposits made in the ordinary course of
business in compliance with workers' compensation, unemployment
insurance and other social security laws or regulations;
(d) deposits to secure the performance of bids, trade
contracts, leases, statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature, in each case
in the ordinary course of business;
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(e) easements, zoning restrictions, rights-of-way and similar
encumbrances on real property imposed by law or arising in the ordinary
course of business that do not secure any monetary obligations and do
not materially detract from the value of the affected property or
interfere with the ordinary conduct of business of the Borrower or any
Subsidiary;
(f) Liens securing judgments to the extent, for an amount and
for a period not resulting in an Event of Default under Article VII(k); and
(g) Liens created under the Federal Packers and Stockyards
Act, as amended;
provided that the term "Permitted Encumbrances" shall not include any Lien
securing Indebtedness.
"Permitted Investments" means:
(a) direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United States
of America (or by any agency thereof 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) investments in commercial paper maturing within 270 days
from the date of acquisition thereof and having, at such date of
acquisition, the highest credit rating obtainable from S&P or from
Moody's;
(c) investments in certificates of deposit, banker's
acceptances and time deposits maturing within 180 days from the date of
acquisition thereof issued or guaranteed by or placed with, and money
market deposit accounts issued or offered by, any domestic office of
any commercial bank organized under the laws of the United States of
America or any State thereof which has a combined capital and surplus
and undivided profits of not less than $500,000,000;
(d) fully collateralized repurchase agreements with a term of
not more than 30 days for securities described in clause (a) above and
entered into with a financial institution satisfying the criteria
described in clause (c) above;
(e) common stock of the Borrower; and
(f) capital stock of corporations in similar or related
businesses to that of the Borrower and listed on the New York Stock
Exchange, NASDAQ and the American Stock Exchange.
"Person" means any natural person, corporation, limited
liability company, trust, joint venture, association, company, partnership,
Governmental Authority or other entity.
"Plan" means any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
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412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or
any ERISA Affiliate is (or, if such plan were terminated, would under Section
4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of
ERISA.
"Prime Rate" means the rate of interest per annum publicly
announced from time to time by Chase as its prime rate in effect at its
principal office in New York City; each change in the Prime Rate shall be
effective from and including the date such change is publicly announced as being
effective.
"Principal Financial Center" means, in the case of any
Currency, the principal financial center where such Currency is cleared and
settled, as determined by the Administrative Agent.
"Rabobank" means COOPERATIEVE CENTRALE RAIFFEISEN-
BOERENLEENBANK B.A., "Rabobank Nederland", New York Branch.
"Register" has the meaning set forth in Section 10.04.
"Regulations U and X" means, respectively, Regulations U and X
of the Board, as the same may be amended from time to time.
"Related Parties" means, with respect to any specified Person,
such Person's Affiliates and the respective directors, officers, employees,
agents and advisors of such Person and such Person's Affiliates.
"Required Lenders" means, at any time, Lenders having
Revolving Credit Exposures and unused Commitments representing more than 50% of
the sum of the total Revolving Credit Exposures and unused Commitments at such
time.
"Restricted Payment" means any dividend or other distribution
(whether in cash, securities or other property) with respect to any shares of
any class of capital stock of the Borrower or any Subsidiary, or any payment
(whether in cash, securities or other property), including any sinking fund or
similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such shares of capital stock of
the Borrower or any Subsidiary or any option, warrant or other right to acquire
any such shares of capital stock of the Borrower or any Subsidiary.
"Revolving Credit Exposure" means, with respect to any Lender
at any time, the sum of the outstanding principal amount of such Lender's
Revolving Loans and its Dollar LC Exposure, Multicurrency LC Exposure and
Swingline Exposure at such time.
"Revolving Dollar Credit Exposure" means, with respect to any
Dollar Lender at any time, the sum of the outstanding principal amount of such
Dollar Lender's Dollar Loans and its Dollar LC Exposure and Swingline Exposure
at such time.
"Revolving Loan" means a Loan made pursuant to Section 2.03.
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"Revolving Multicurrency Credit Exposure" means, with respect
to any Multicurrency Lender at any time, the sum of the outstanding principal
amount of such Multicurrency Lender's Multicurrency Loans and its Multicurrency
LC Exposure at such time.
"S&P" means Standard & Poor's Ratings Services.
"Screen" means, for any Currency, the relevant display page
for LIBOR for such Currency (as determined by the Administrative Agent) of the
Telerate Service of Bridge Information Services (or any successor thereto or
substitute therefor); provided that if the Administrative Agent determines that
there is no such relevant display page for LIBOR for such Currency, "Screen"
shall mean the relevant display page for LIBOR for such Currency (as determined
by the Administrative Agent) of the Xxxxxx Monitor Money Rates Service (or any
successor thereto or substitute therefor).
"Security Agreement" means the Collateral Agency, Pledge and
Security Agreement a copy of which is attached as Exhibit C hereto, as the same
shall be modified and supplemented and in effect from time to time.
"Security Documents" means the Security Agreement and all
Uniform Commercial Code financing statements required by the Security Agreement
to be filed with respect to the security interests in personal property created
pursuant to the Security Agreement.
"Security Termination Date" means the date, if any, that the
Security Agreement is terminated in accordance with Section 10.02(c)(ii).
"Senior Consolidated Funded Debt" means Consolidated Total
Funded Debt, minus Senior Subordinated Debt.
"Senior Note Documents" means (i) the Note Purchase Agreement
dated as of July 15, 1996 among the Borrower and the purchasers referred to
therein, (ii) the Joint and Several Guaranty, the Notes and the Security
Documents referred to in said Note Purchase Agreement, (iii) the Indebtedness
(further described in Schedule 6.01 attached hereto) of the Borrower and its
Subsidiaries to Colonial Farm Credit ACA and (iv) the Series I & J Note Purchase
Agreement, in each of the cases referred to in the foregoing clauses (i), (ii),
(iii) and (iv) as the same shall, subject to Section 6.09, be modified and
supplemented and in effect from time to time.
"Senior Subordinated Debt" means the aggregate amount of
Indebtedness of the Borrower outstanding under the Borrower's Senior
Subordinated Notes Due 2007, as the same shall, subject to Section 6.13, be
modified and supplemented and in effect from time to time.
"Senior Subordinated Notes" means senior subordinated notes
issued by the Borrower prior to December 31, 1998 having the material terms and
conditions set forth in the offering memorandum relating thereto, a copy of
which has been furnished to the Lenders, and any additional series of senior
subordinated notes issued by the Borrower at the same rate of interest, and
having substantially the same material terms and conditions, as such senior
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subordinated notes on or before the first anniversary of the date of issuance of
such senior subordinated notes, as the same shall, subject to Section 6.13, be
modified and supplemented and in effect from time to time.
"Series I & J Note Purchase Agreement" means a Note Purchase
Agreement to be entered into on or about September 30, 1999, among the Borrower
and the purchasers referred to therein, respecting the Borrower's issuance of
the Series I Senior Secured Notes and the Series J Senior Secured Notes referred
to therein, which Notes shall be upon substantially the terms set forth in the
Term Sheet dated July 30, 1999 and delivered to the Administrative Agent prior
to the date hereof or, in the case of material modifications to such terms (the
materiality of any such modification to be determined by the Administrative
Agent in its sole discretion), as approved by the Required Lenders, provided
that in no event will such Note Purchase Agreement prohibit any guarantee of
debt incurred hereunder or under any replacement facility.
"Solvent" has the meaning assigned to such term in Section
4.01(j).
"Special Counsel" means Milbank, Tweed, Xxxxxx & XxXxxx LLP,
in its capacity as special counsel to Chase, as Administrative Agent of the
credit facility contemplated hereby.
"Statutory Reserve Rate" means for any day (or for the
Interest Period for any Eurocurrency Borrowing), a fraction (expressed as a
decimal), the numerator of which is the number one and the denominator of which
is the number one minus the arithmetic mean of the aggregate of the maximum
reserve percentages (including any marginal, special, emergency or supplemental
reserves) expressed as a decimal established by the Board to which the
Administrative Agent is subject (a) with respect to the Base CD Rate, for new
negotiable nonpersonal time deposits in Dollars of over $100,000 with maturities
approximately equal to three months and (b) with respect to the Adjusted LIBO
Rate, for eurocurrency funding (currently referred to as "Eurocurrency
liabilities" in Regulation D of the Board). Such reserve percentages shall
include those imposed pursuant to such Regulation D. Eurocurrency Loans shall be
deemed to constitute eurocurrency funding and to be subject to such reserve
requirements without benefit of or credit for proration, exemptions or offsets
that may be available from time to time to any Lender under such Regulation D or
any comparable regulation. The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in any reserve
percentage.
"Sub-Commitment" shall refer, as applicable. to a Dollar Sub-
Commitment or a Multicurrency Sub-Commitment.
"subsidiary" means, with respect to any Person (the "parent")
at any date, any corporation, limited liability company, partnership,
association or other entity the accounts of which would be consolidated with
those of the parent in the parent's consolidated financial statements if such
financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership,
association or other entity (a) of which securities or other ownership interests
representing more than 50% of the equity or more than 50% of the ordinary voting
power or, in the case of a partnership, more than 50% of the general partnership
interests are, as of such date, owned, controlled or held, or (b) that is, as of
such date, otherwise Controlled, by the parent or one or more subsidiaries of
the parent or by the parent and one or more subsidiaries of the parent.
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"Subsidiary" means any subsidiary of the Borrower.
"Swingline Exposure" means, at any time, the aggregate
principal amount of all Swingline Loans outstanding at such time. The Swingline
Exposure of any Lender at any time shall be its Applicable Dollar Percentage of
the total Swingline Exposure at such time.
"Swingline Lender" means Chase, in its capacity as lender of
Swingline Loans hereunder.
"Swingline Loan" means a Loan made pursuant to Section 2.04.
"Taxes" means any and all present or future taxes, levies,
imposts, duties, deductions, charges or withholdings imposed by any Governmental
Authority.
"Three-Month Secondary CD Rate" means, for any day, the
secondary market rate for three-month certificates of deposit reported as being
in effect on such day (or, if such day is not a Business Day, the next preceding
Business Day) by the Board through the public information telephone line of the
Federal Reserve Bank of New York (which rate will, under the current practices
of the Board, be published in Federal Reserve Statistical Release H.15(519)
during the week following such day) or, if such rate is not so reported on such
day or such next preceding Business Day, the average of the secondary market
quotations for three-month certificates of deposit of major money center banks
in New York City received at approximately 10:00 a.m., New York City time, on
such day (or, if such day is not a Business Day, on the next preceding Business
Day) by the Administrative Agent from three negotiable certificate of deposit
dealers of recognized standing selected by it.
"Total Commitment" means, at any time, the aggregate amount of
the Commitments as in effect at such time.
"Total Dollar Sub-Commitment" means, at any time, the
aggregate amount of the Dollar Sub-Commitments as in effect at such time.
"Total Multicurrency Sub-Commitment" means, at any time, the
aggregate amount of the Multicurrency Sub-Commitments as in effect at such time.
"Transactions" means (i) with respect to the Borrower, the
execution, delivery and performance by the Borrower of Loan Documents to which
it is a party, the borrowing of Loans, the use of the proceeds thereof and the
issuance of Letters of Credit hereunder and (ii) with respect to any Obligor
(other than the Borrower), the execution, delivery and performance by such
Obligor of the Loan Documents to which it is a party.
"Type", when used in reference to any Loan or Borrowing,
refers to whether the rate of interest on such Loan, or on the Loans comprising
such Borrowing, is determined by reference to the Adjusted LIBO Rate, the
Alternate Base Rate or the Federal Funds Rate.
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"Withdrawal Liability" means liability to a Multiemployer Plan
as a result of a complete or partial withdrawal from such Multiemployer Plan, as
such terms are defined in Part I of Subtitle E of Title IV of ERISA.
SECTION 1.02. Classification of Loans and Borrowings. For
purposes of this Agreement, Loans may be classified and referred to by Class
(e.g., a "Revolving Loan") or by Type (e.g., a "Eurocurrency Loan") or by Class
and Type (e.g., a "Eurocurrency Revolving Loan"). Borrowings also may be
classified and referred to by Class (e.g., a "Revolving Borrowing") or by Type
(e.g., a "Eurocurrency Borrowing") or by Class and Type (e.g., a "Eurocurrency
Revolving Borrowing"). Loans and Borrowings may also be identified by Currency.
SECTION 1.03. Terms Generally. The definitions of terms herein
shall apply equally to the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words "include", "includes" and
"including" shall be deemed to be followed by the phrase "without limitation".
The word "will" shall be construed to have the same meaning and effect as the
word "shall". Unless the context requires otherwise (a) any definition of or
reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein),
(b) any reference herein to any Person shall be construed to include such
Person's successors and assigns, (c) the words "herein", "hereof" and
"hereunder", and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all
references herein to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
this Agreement and (e) the words "asset" and "property" shall be construed to
have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, securities, accounts and
contract rights.
SECTION 1.04. Accounting Terms; GAAP. Except as otherwise
expressly provided herein, all terms of an accounting or financial nature shall
be construed in accordance with GAAP, as in effect from time to time; provided
that, if the Borrower notifies the Administrative Agent that the Borrower
requests an amendment to any provision hereof to eliminate the effect of any
change occurring after the date hereof in GAAP or in the application thereof on
the operation of such provision (or if the Administrative Agent notifies the
Borrower that the Required Lenders request an amendment to any provision hereof
for such purpose), regardless of whether any such notice is given before or
after such change in GAAP or in the application thereof, then such provision
shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective until such notice shall have been
withdrawn or such provision amended in accordance herewith.
SECTION 1.05. Currencies, Currency Equivalents. At any time,
any reference in the definition of the term "Approved Foreign Currency" or in
any other provision of this Agreement to the Currency of any particular nation
means the lawful currency of such nation at such time whether or not the name of
such Currency is the same as it was on the date hereof. Except as provided in
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Sections 2.10(b) and 2.17(c), for purposes of determining (i) whether the amount
of any Borrowing, together with all other applicable Borrowings then outstanding
or to be borrowed at the same time as such Borrowing, would exceed the aggregate
amount of the Commitments or applicable Sub-Commitments, (ii) the aggregate
unutilized amount of the Commitments or either Sub-Commitment and (iii) the
aggregate outstanding principal amount of Borrowings, the outstanding principal
amount of any Borrowing that is denominated in any Foreign Currency shall be
deemed to be the Dollar Equivalent of the amount of the Foreign Currency of such
Borrowing determined as of the date of such Borrowing (determined in accordance
with the last sentence of the definition of the term "Borrowing"). Wherever in
this Agreement in connection with a Borrowing or Loan an amount, such as a
required minimum or multiple amount, is expressed in Dollars, but such Borrowing
or Loan is denominated in a Foreign Currency, such amount shall be the relevant
Foreign Currency Equivalent of such Dollar amount (rounded to the nearest 1,000
units of such Foreign Currency).
ARTICLE II
THE CREDITS
SECTION 2.01. Commitments. Subject to the terms and
conditions set forth herein:
(a) each Dollar Lender agrees to make Revolving Loans to the
Borrower in Dollars from time to time during the Availability Period in
an aggregate principal amount (i) that will not result in such Lender's
Revolving Dollar Credit Exposure exceeding such Lender's Dollar
Sub-Commitment and (ii) that will not result in the sum of the
aggregate amount of the Revolving Credit Exposures of all of the
Lenders plus the aggregate principal amount of all Pari Passu Debt then
outstanding plus the aggregate principal amount (as defined in the
definition of "Material Indebtedness" herein) of the obligations of the
Borrower and its Subsidiaries under Hedging Agreements exceeding the
Consolidated Borrowing Base; and
(b) each Multicurrency Lender agrees to make Revolving Loans
to the Borrower in Dollars or one or more Approved Foreign Currencies
from time to time during the Availability Period in an aggregate
principal amount (i) that will not result in such Lender's Revolving
Multicurrency Credit Exposure exceeding such Lender's Multicurrency
Sub-Commitment and (ii) that will not result in the sum of the
aggregate amount of the Revolving Credit Exposures of all of the
Lenders plus the aggregate principal amount of all Pari Passu Debt then
outstanding plus the aggregate principal amount (as defined in the
definition of "Material Indebtedness" herein) of the obligations of the
Borrower or any of its Subsidiaries under Hedging Agreements exceeding
the Consolidated Borrowing Base.
Within the foregoing limits and subject to the terms and conditions set forth
herein, the Borrower may borrow, prepay and reborrow Revolving Loans.
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In the event that any loans under the Existing Credit
Agreement shall be outstanding on the Effective Date, then on the Effective Date
the Borrower shall borrow Dollar Loans, and prepay Loans outstanding under the
Existing Credit Agreement, in such amounts as shall be necessary so that the
Dollar Loans are held hereunder pro rata in accordance with the respective
Dollar Sub-Commitments of the Dollar Lenders. Any payments in respect of any
Eurodollar Loans under the Existing Credit Agreement made to any Lender party to
the Existing Credit Agreement that is received on any day other than the last
day of the Interest Period relating thereto shall be subject to indemnification
by the Borrower pursuant to the provisions of Section 2.15 of the Existing
Credit Agreement.
SECTION 2.02. Loans and Borrowings.
(a) Each Revolving Loan shall be made as part of a Borrowing
consisting of Revolving Loans of the same Currency and Type made by the
applicable Lenders ratably in accordance with their respective applicable
Sub-Commitments. The failure of any Lender to make any Loan required to be made
by it shall not relieve any other Lender of its obligations hereunder; provided
that the Commitments (and Sub-Commitments) of the Lenders are several and no
Lender shall be responsible for any other Lender's failure to make Loans as
required.
(b) Subject to Section 2.13, each Revolving Borrowing shall be
comprised entirely of ABR Loans, Federal Funds Loans or Eurocurrency Loans
denominated in a single Currency as the Borrower may request in accordance
herewith and each Swingline Loan shall be comprised of a Federal Funds Loan for
the period commencing on the date such Loan is made and ending on the fourth
Business Day thereafter, and from and after the fifth Business Day following
such date shall (automatically and without further action by any Person) be
comprised of an ABR Loan. Each Federal Funds Loan and each ABR Loan (whether a
Revolving Loan or a Swingline Loan) shall be denominated in Dollars. Each Lender
at its option may make any Eurocurrency Loan by causing any domestic or foreign
branch or Affiliate of such Lender to make such Loan; provided that any exercise
of such option shall not affect the obligation of the Borrower to repay such
Loan in accordance with the terms of this Agreement.
(c) At the commencement of each Interest Period for any
Eurocurrency Borrowing, such Borrowing shall be in an aggregate amount that is
an integral multiple of $1,000,000 and not less than $5,000,000, or (as
applicable) the Foreign Currency Equivalent of said amounts. At the time that
each ABR Borrowing and each Federal Funds Borrowing is made, such Borrowing
shall be in an aggregate amount that is an integral multiple of $1,000,000 and
not less than $5,000,000; provided that an ABR Borrowing or a Federal Funds
Borrowing may be in an aggregate amount that is equal to the entire unused
balance of the Total Dollar Sub-Commitment or that is required to finance the
reimbursement of an LC Disbursement as contemplated by Section 2.05(e). Each
Swingline Loan shall be in an amount that is an integral multiple of $500,000
and not less than $1,000,000. Borrowings of more than one Class, Currency and
Type may be outstanding at the same time; provided that there shall not at any
time be more than a total of nine Eurocurrency Borrowings outstanding.
(d) Notwithstanding any other provision of this Agreement, the
Borrower shall not be entitled to request, or to elect to convert or continue,
any Borrowing if the Interest Period requested with respect thereto would end
after the Maturity Date.
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SECTION 2.03. Requests for Revolving Loan.
(a) To request a Revolving Loan, the Borrower shall notify the
Administrative Agent of such request by telephone (i) in the case of a
Eurocurrency Borrowing denominated in an Approved Foreign Currency, not later
than 11:00 a.m., New York City time, five Business Days before the date of the
proposed Borrowing, (ii) in the case of a Eurocurrency Borrowing denominated in
Dollars, not later than 11:00 a.m., New York City time, three Business Days
before the date of the proposed Borrowing, (iii) in the case of an ABR
Borrowing, not later than 11:00 a.m., New York City time, one Business Day
before the date of the proposed Borrowing or (iv) in the case of a Federal Funds
Borrowing, not later than 12:00 noon, New York City time, on the date of the
proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable
and shall be confirmed promptly by hand delivery or telecopy to the
Administrative Agent of a written Borrowing Request in a form approved by the
Administrative Agent and signed by the Borrower.
(b) Each such telephonic and written Borrowing Request shall
specify the following information in compliance with Section 2.02:
(i) the aggregate amount and Currency of the requested
Borrowing;
(ii) the date of such Borrowing, which shall be a Business
Day;
(iii) in the case of a Borrowing denominated in Dollars,
whether such Borrowing is to be an ABR Borrowing, a Federal Funds
Borrowing or a Eurocurrency Borrowing and whether such Borrowing shall
constitute a utilization of the Dollar Sub-Commitment or Multicurrency
Sub-Commitment;
(iv) in the case of a Eurocurrency Borrowing, the initial
Interest Period to be applicable thereto, which shall be a period
contemplated by the definition of the term "Interest Period"; and
(v) the location and number of the Borrower's account to which
funds are to be disbursed, which shall comply with the requirements of
Section 2.06.
(c) Promptly following receipt of a Borrowing Request in
accordance with this Section, the Administrative Agent shall advise each
applicable Lender of the details thereof and of the amount and Currency of such
Lender's Loan to be made as part of the requested Borrowing.
(d) If no election as to the Currency of a Borrowing is
specified in a Borrowing Request, then the Borrower shall be deemed to have
requested a Borrowing denominated in Dollars. If no election as to the Type of a
Borrowing is specified, then the requested Borrowing shall be a Federal Funds
Borrowing unless an Approved Foreign Currency has been specified, in which case
the Borrower shall be deemed to have requested a Eurocurrency Borrowing
denominated in such Approved Foreign Currency. If no election as to the
Sub-Commitment of a Borrowing is specified, then the Borrower shall be deemed to
have requested a Borrowing under the Dollar Sub-Commitment, provided that, if at
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such time the Dollar Sub-Commitment shall be fully drawn, then the Borrower
shall be deemed to have requested a Borrowing in Dollars under the Multicurrency
Sub-Commitment.
SECTION 2.04. Swingline Loans.
(a) Subject to the terms and conditions set forth herein, the
Swingline Lender agrees to make Swingline Loans to the Borrower from time to
time during the Availability Period, in Dollars, in an aggregate principal
amount at any time outstanding that will not result in (i) the aggregate
principal amount of outstanding Swingline Loans exceeding $15,000,000, (ii) the
sum of the aggregate amount of the Revolving Credit Exposures of all of the
Lenders plus the aggregate principal amount of all Pari Passu Debt then
outstanding plus the aggregate principal amount (as defined in the definition of
"Material Indebtedness" herein) of the obligations of the Borrower and its
Subsidiaries under Hedging Agreements exceeding the Consolidated Borrowing Base
or (iii) the sum of the total Revolving Dollar Credit Exposures exceeding the
Total Dollar Sub-Commitment; provided that the Swingline Lender shall not be
required to make a Swingline Loan to refinance an outstanding Swingline Loan.
Within the foregoing limits and subject to the terms and conditions set forth
herein, the Borrower may borrow, prepay and reborrow Swingline Loans.
(b) To request a Swingline Loan, the Borrower shall notify the
Administrative Agent of such request by telephone (confirmed by telecopy), not
later than 3:00 p.m., New York City time, on the day of a proposed Swingline
Loan. Each such notice shall be irrevocable and shall specify the requested date
(which shall be a Business Day) and amount of the requested Swingline Loan. The
Administrative Agent will promptly advise the Swingline Lender of any such
notice received from the Borrower. The Swingline Lender shall make each
Swingline Loan available to the Borrower by means of a credit to the general
deposit account of the Borrower with the Swingline Lender (or, in the case of a
Swingline Loan made to finance the reimbursement of an LC Disbursement as
provided in Section 2.05(e), by remittance to the relevant Issuing Bank) by 4:00
p.m., New York City time, on the requested date of such Swingline Loan.
(c) The Swingline Lender may by written notice given to the
Administrative Agent not later than 10:00 a.m., New York City time, on any
Business Day require the Dollar Lenders to acquire participations on such
Business Day in all or a portion of the Swingline Loans outstanding. Such notice
shall specify the aggregate amount of Swingline Loans in which Dollar Lenders
will participate. Promptly upon receipt of such notice, the Administrative Agent
will give notice thereof to each Dollar Lender, specifying in such notice such
Lender's Applicable Dollar Percentage of such Swingline Loan or Loans. Each
Dollar Lender hereby absolutely and unconditionally agrees, upon receipt of
notice as provided above, to pay to the Administrative Agent, for the account of
the Swingline Lender, such Lender's Applicable Dollar Percentage of such
Swingline Loan or Loans. Each Dollar Lender acknowledges and agrees that its
obligation to acquire participations in Swingline Loans pursuant to this
paragraph is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including the occurrence and continuance of a Default
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or reduction or termination of the Commitments, and that each such payment shall
be made without any offset, abatement, withholding or reduction whatsoever. Each
Dollar Lender shall comply with its obligation under this paragraph by wire
transfer of immediately available funds, in the same manner as provided in
Section 2.06 with respect to Loans made by such Lender (and Section 2.06 shall
apply, mutatis mutandis, to the payment obligations of the Lenders), and the
Administrative Agent shall promptly pay to the Swingline Lender the amounts so
received by it from the Dollar Lenders. The Administrative Agent shall notify
the Borrower of any participations in any Swingline Loan acquired pursuant to
this paragraph, and thereafter payments in respect of such Swingline Loan shall
be made to the Administrative Agent and not to the Swingline Lender. Any amounts
received by the Swingline Lender from the Borrower (or other party on behalf of
the Borrower) in respect of a Swingline Loan after receipt by the Swingline
Lender of the proceeds of a sale of participations therein shall be promptly
remitted to the Administrative Agent; any such amounts received by the
Administrative Agent shall be promptly remitted by the Administrative Agent to
the Dollar Lenders that shall have made their payments pursuant to this
paragraph and to the Swingline Lender, as their interests may appear. The
purchase of participations in a Swingline Loan pursuant to this paragraph shall
not relieve the Borrower of any default in the payment thereof. Notwithstanding
the foregoing, a Dollar Lender shall not have any obligation to acquire a
participation in a Swingline Loan pursuant to this paragraph if an Event of
Default shall have occurred and be continuing at the time such Swingline Loan
was made and such Lender shall have notified the Swingline Lender in writing, at
least one Business Day prior to the time such Swingline Loan was made, that such
Event of Default has occurred and that such Lender will not acquire
participations in Swingline Loans made while such Event of Default is
continuing.
(d) All Swingline Loans made hereunder shall be payable on
demand of the Swingline Lender made at any time upon the Borrower (and, if not
so demanded sooner, in any event shall be payable as provided in Section 2.09(a)
hereof).
SECTION 2.05. Letters of Credit.
(a) Subject to the terms and conditions set forth herein, the
Borrower may request the issuance of Letters of Credit by the Issuing Bank for
its own account or for the account of any Subsidiary Guarantor, either under the
Dollar Sub-Commitments or under the Multicurrency Sub-Commitments, in a form
reasonably acceptable to the Administrative Agent and the relevant Issuing Bank,
at any time and from time to time during the Availability Period. In the event
of any inconsistency between the terms and conditions of this Agreement and the
terms and conditions of any form of letter of credit application or other
agreement submitted by the Borrower to, or entered into by the Borrower with,
the Issuing Bank relating to any Letter of Credit, the terms and conditions of
this Agreement shall control.
(b) To request the issuance of a Letter of Credit (or the
amendment, renewal or extension of an outstanding Letter of Credit), the
Borrower shall hand deliver or telecopy (or transmit by electronic
communication, if arrangements for doing so have been approved by the relevant
Issuing Bank) to the relevant Issuing Bank and the Administrative Agent
(reasonably in advance of the requested date of issuance, amendment, renewal or
extension) a notice requesting the issuance of a Letter of Credit, or
identifying the Letter of Credit to be amended, renewed or extended, the date of
issuance, amendment, renewal or extension, the date on which such Letter of
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Credit is to expire (which shall comply with paragraph (c) of this Section), the
Currency (which shall be Dollars or an Approved Foreign Currency) and amount of
such Letter of Credit, the name and address of the beneficiary thereof, whether
such Letter of Credit is to be made under the Dollar Sub-Commitments or the
Multicurrency Sub-Commitments and such other information as shall be necessary
to prepare, amend, renew or extend such Letter of Credit. If requested by the
relevant Issuing Bank, the Borrower also shall submit a letter of credit
application on the such Issuing Bank's standard form in connection with any
request for a Letter of Credit. A Letter of Credit shall be issued, amended,
renewed or extended only if (and upon issuance, amendment, renewal or extension
of each Letter of Credit the Borrower shall be deemed to represent and warrant
that), after giving effect to such issuance, amendment, renewal or extension (i)
the Dollar LC Exposure shall not exceed $40,000,000 and the total Revolving
Dollar Credit Exposures shall not exceed the Total Dollar Sub-Commitment, (ii)
the Multicurrency LC Exposure shall not exceed $10,000,000 or the Foreign
Currency Equivalent thereof and the total Revolving Multicurrency Credit
Exposures shall not exceed the Total Multicurrency Sub-Commitment, (iii) the sum
of the aggregate amount of the Revolving Credit Exposures of all of the Lenders
plus the aggregate principal amount of all Pari Passu Debt then outstanding plus
the aggregate principal amount (as defined in the definition of "Material
Indebtedness" herein) of the obligations of the Borrower and its Subsidiaries
under Hedging Agreements shall not exceed the Consolidated Borrowing Base and
(iv) the sum of the total Revolving Credit Exposures shall not exceed the Total
Commitment.
(c) Each Letter of Credit shall expire at or prior to the
close of business on the earlier of (i) the date one year after the date of the
issuance of such Letter of Credit (or, in the case of any renewal or extension
thereof, one year after such renewal or extension) and (ii) the date that is
five Business Days prior to the Maturity Date.
(d) By the issuance of a Letter of Credit (or an amendment to
a Letter of Credit increasing the amount thereof), and without any further
action on the part of the Issuing Bank or the Lenders, (i) in the case of a
Dollar Letter of Credit, the Issuing Bank hereby grants to each Dollar Lender
(other than the relevant Issuing Bank), and each Dollar Lender hereby acquires
from such Issuing Bank a participation in such Letter of Credit equal to such
Lender's Applicable Dollar Percentage, and (ii) in the case of a Multicurrency
Letter of Credit, the Issuing Bank hereby grants to each Multicurrency Lender
(other than the relevant Issuing Bank), and each Multicurrency Lender hereby
acquires from such Issuing Bank a participation in such Letter of Credit equal
to such Lender's Applicable Multicurrency Percentage of the aggregate amount
available to be drawn under such Letter of Credit. In consideration and in
furtherance of the foregoing, each Lender hereby absolutely and unconditionally
agrees to pay to the Administrative Agent, for the account of each Issuing Bank,
such Lender's Applicable Dollar Percentage (in the case of a Dollar Letter of
Credit) and such Lender's Applicable Multicurrency Percentage (in the case of a
Multicurrency Letter of Credit) of each LC Disbursement made by such Issuing
Bank and not reimbursed by the Borrower on the date due as provided in paragraph
(e) of this Section, or of any reimbursement payment required to be refunded to
the Borrower for any reason. Each Dollar Lender and each Multicurrency Lender
acknowledges and agrees that its obligation to acquire participations pursuant
to this paragraph in respect of Dollar Letters of Credit and Multicurrency
Letters of Credit, as the case may be, is absolute and unconditional and shall
not be affected by any circumstance whatsoever, including any amendment, renewal
or extension of any Letter of Credit or the occurrence and continuance of a
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Default or reduction or termination of the Dollar Sub-Commitment or
Multicurrency Sub-Commitment, and that each such payment shall be made without
any offset, abatement, withholding or reduction whatsoever.
(e) If an Issuing Bank shall make any LC Disbursement in
respect of a Letter of Credit, the Borrower shall reimburse such LC Disbursement
by paying to the Administrative Agent an amount equal to such LC Disbursement
not later than 12:00 noon, New York City time, on the date that such LC
Disbursement is made, if the Borrower shall have received notice of such LC
Disbursement prior to 10:00 a.m., New York City time, on such date, or, if such
notice has not been received by the Borrower prior to such time on such date,
then not later than 12:00 noon, New York City time, on (i) the Business Day that
the Borrower receives such notice, if such notice is received prior to 10:00
a.m., New York City time, on the day of receipt, or (ii) the Business Day
immediately following the day that the Borrower receives such notice, if such
notice is not received prior to such time on the day of receipt; provided that
the Borrower may, subject to the conditions to borrowing set forth herein,
request in accordance with Section 2.03 or 2.04 that such payment be financed
with a Eurocurrency Borrowing of the Currency in which such Letter of Credit is
issued (or in the case of a Borrowing of Dollars) an ABR Revolving Borrowing, a
Federal Funds Borrowing or Swingline Loan in an equivalent amount and, to the
extent so financed, the Borrower's obligation to make such payment shall be
discharged and replaced by the resulting Eurocurrency Borrowing, ABR Revolving
Borrowing, Federal Funds Borrowing or Swingline Loan. If the Borrower fails to
make such payment when due, the Administrative Agent shall notify each Lender of
the applicable LC Disbursement, the payment then due from the Borrower in
respect thereof and such Lender's Applicable Dollar Percentage or Applicable
Multicurrency Percentage, as the case may be, thereof. Promptly following
receipt of such notice, each Lender shall pay to the Administrative Agent its
Applicable Dollar Percentage or Applicable Multicurrency Percentage, as the case
may be, of the payment then due from the Borrower, in the same manner as
provided in Section 2.06 with respect to Loans made by such Lender (and Section
2.06 shall apply, mutatis mutandis, to the payment obligations of the Lenders),
and the Administrative Agent shall promptly pay to the relevant Issuing Bank,
the amounts so received by it from the Lenders. Promptly following receipt by
the Administrative Agent of any payment from the Borrower pursuant to this
paragraph, the Administrative Agent shall distribute such payment to the
relevant Issuing Bank or, to the extent that Lenders have made payments pursuant
to this paragraph to reimburse such Issuing Bank, then to such Lenders and such
Issuing Bank, as their interests may appear. Any payment made by a Lender
pursuant to this paragraph to reimburse an Issuing Bank for any LC Disbursement
(other than the funding of Eurocurrency Loans, ABR Revolving Loans, Federal
Funds Loans or a Swingline Loan as contemplated above) shall not constitute a
Loan and shall not relieve the Borrower of its obligation to reimburse such LC
Disbursement.
(f) The Borrower's obligation to reimburse LC Disbursements as
provided in paragraph (e) of this Section shall be absolute, unconditional and
irrevocable, and shall be performed strictly in accordance with the terms of
this Agreement under any and all circumstances whatsoever and irrespective of:
(i) any lack of validity or enforceability of any Letter of
Credit or this Agreement, or any term or provision therein;
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(ii) any amendment or waiver of or any consent to departure
from all or any of the provisions of any Letter of Credit or this
Agreement;
(iii) the existence of any claim, setoff, defense or other
right that the Borrower, any other party guaranteeing, or otherwise
obligated with, the Borrower, any Subsidiary or other Affiliate thereof
or any other Person may at any time have against the beneficiary under
any Letter of Credit, the Issuing Bank, the Administrative Agent or any
Lender or any other Person, whether in connection with this Agreement
or any other related or unrelated agreement or transaction;
(iv) any draft or other document presented under a Letter of
Credit proving to be forged, fraudulent or invalid in any respect or
any statement therein being untrue or inaccurate in any respect;
(v) payment by an Issuing Bank under a Letter of Credit
against presentation of a draft or other document that does not comply
strictly with the terms of such Letter of Credit; and
(vi) any other act or omission to act or delay of any kind of
the Issuing Bank, the Lenders, the Administrative Agent or any other
Person or any other event or circumstance whatsoever, whether or not
similar to any of the foregoing, that might, but for the provisions of
this Section, constitute a legal or equitable discharge of the
Borrower's obligations hereunder.
Neither the Administrative Agent, the Lenders, the Issuing Bank, nor any of
their Related Parties, shall have any liability or responsibility by reason of
or in connection with the issuance or transfer of any Letter of Credit or any
payment or failure to make any payment thereunder (irrespective of any of the
circumstances referred to in the preceding sentence), or any error, omission,
interruption, loss or delay in transmission or delivery of any draft, notice or
other communication under or relating to any Letter of Credit (including any
document required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from causes beyond the control of the
Issuing Bank; provided that the foregoing shall not be construed to excuse the
Issuing Bank from liability to the Borrower to the extent of any direct damages
(as opposed to consequential damages, claims in respect of which are hereby
waived by the Borrower to the extent permitted by applicable law) suffered by
the Borrower that are caused by such Issuing Bank's failure to exercise the
standard of care agreed hereunder (as set forth in the next sentence) to be
applicable when determining whether drafts and other documents presented under a
Letter of Credit comply with the terms thereof. The parties hereto expressly
agree that the Issuing Bank shall be deemed to have exercised the agreed
standard of care in the absence of gross negligence or wilful misconduct on the
part of such Issuing Bank when determining whether drafts and other documents
presented under a Letter of Credit comply with the terms thereof, and shall be
deemed to have failed to exercise the agreed standard of care only if it shall
have engaged in gross negligence or wilful misconduct when making such
determination (as determined by a court of competent jurisdiction). In
furtherance of the foregoing and without limiting the generality thereof, it is
understood that the Issuing Bank may accept documents that appear on their face
to be in substantial compliance with the terms of a Letter of Credit without
responsibility for further investigation, regardless of any notice or
information to the contrary, and may make payment upon presentation of documents
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that appear on their face to be in substantial compliance with the terms of such
Letter of Credit; provided that, notwithstanding the foregoing, the Issuing Bank
shall have the right, in its sole discretion, to decline to accept such
documents and to make such payment if such documents are not in strict
compliance with the terms of such Letter of Credit.
(g) The Issuing Bank shall, promptly following its receipt
thereof, examine all documents purporting to represent a demand for payment
under a Letter of Credit issued by it. The Issuing Bank shall promptly notify
the Administrative Agent and the Borrower by telephone (confirmed by telecopy)
of such demand for payment and whether such Issuing Bank has made or will make
an LC Disbursement thereunder; provided that any failure to give or delay in
giving such notice shall not relieve the Borrower of its obligation to reimburse
the Issuing Bank and the relevant participating Lenders with respect to any such
LC Disbursement.
(h) If an Issuing Bank shall make any LC Disbursement, then,
unless the Borrower shall reimburse such LC Disbursement in full on the date
such LC Disbursement is made, the unpaid amount thereof (which, in the case of
Multicurrency Letters of Credit, shall be converted into Dollars) shall bear
interest, for each day from and including the date such LC Disbursement is made
to but excluding the date that the Borrower reimburses such LC Disbursement, at
the rate per annum then applicable to ABR Loans; provided that, if the Borrower
fails to reimburse such LC Disbursement when due pursuant to paragraph (e) of
this Section, then Section 2.12(e) shall apply. Interest accrued pursuant to
this paragraph shall be for the account of the relevant Issuing Bank, except
that interest accrued on and after the date of payment by any Lender pursuant to
paragraph (e) of this Section to reimburse such Issuing Bank shall be for the
account of such Lender to the extent of such payment.
(i) The Issuing Bank may be replaced at any time by written
agreement among the Borrower, the Administrative Agent, the replaced Issuing
Bank and the successor Issuing Bank. The Administrative Agent shall notify the
Lenders of any such replacement of the Issuing Bank. At the time any such
replacement shall become effective, the Borrower shall pay all unpaid fees
accrued for the account of the replaced Issuing Bank pursuant to Section
2.11(b). From and after the effective date of any such replacement, (i) the
successor Issuing Bank shall have all the rights and obligations of the Issuing
Bank under this Agreement with respect to Letters of Credit to be issued
thereafter and (ii) references herein to the term "Issuing Bank" shall be deemed
to refer to such successor or to any previous Issuing Bank, or to such successor
and all previous Issuing Banks, as the context shall require. After the
replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain
a party hereto and shall continue to have all the rights and obligations of an
Issuing Bank under this Agreement with respect to Letters of Credit issued by it
prior to such replacement, but shall not be required to issue additional Letters
of Credit.
(j) If (i) any Event of Default shall have occurred and be
continuing, (ii) the aggregate amount of Revolving Dollar Credit Exposure of all
Dollar Lenders hereunder exceeds the Total Dollar Sub-Commitment, (iii) the
aggregate amount of Revolving Multicurrency Credit Exposure of all
Multicurrrency Lenders hereunder exceeds the Total Multicurrency Sub-Commitment
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or (iv) the sum of the aggregate amount of Revolving Credit Exposure of all
Lenders hereunder plus the aggregate principal amount of all Pari Passu Debt
then outstanding plus the aggregate principal amount (as defined in the
definition of "Material Indebtedness" herein) of the obligations of the Borrower
and its Subsidiaries under Hedging Agreements exceeds the then-current
Consolidated Borrowing Base on the Business Day that the Borrower receives
notice from the Administrative Agent or the Required Lenders (or, if the
maturity of the Loans has been accelerated, Lenders with LC Exposure
representing greater than 50% of the total LC Exposure) demanding the deposit of
cash collateral pursuant to this paragraph, the Borrower shall deposit in an
account with the Administrative Agent, in the name of the Administrative Agent
and for the benefit of the Lenders, an amount in Dollars equal to (w) the LC
Exposure as of such date, converting the aggregate Multicurrency LC Exposure
into the Dollar Equivalent thereof at that date (in the case of the foregoing
clause (i)), (x) the amount of the relevant excess (in the case of the foregoing
clauses (ii) or (iii)) or (y) the lesser of the Revolving Credit Exposure or the
amount of the relevant excess (in the case of the foregoing clause (iv)), plus
(in each of the cases referred to in the foregoing clauses (i), (ii), (iii), and
(iv)) any accrued and unpaid interest thereon; provided that the obligation to
deposit such cash collateral shall become effective immediately, and such
deposit shall become immediately due and payable, without demand or other notice
of any kind, upon the occurrence of any Event of Default with respect to the
Borrower described in clause (h) or (i) of Article VII. Such deposit shall be
held by the Administrative Agent as collateral for the payment and performance
of the obligations of the Borrower under this Agreement.
The Administrative Agent shall have exclusive dominion and
control, including the exclusive right of withdrawal, over such account. Other
than any interest earned on the investment of such deposits, which investments
shall be made at the option and sole discretion of the Administrative Agent and
at the Borrower's risk and expense, such deposits shall not bear interest.
Interest or profits, if any, on such investments shall accumulate in such
account. Moneys in such account shall be applied by the Administrative Agent to
reimburse the relevant Issuing Bank for LC Disbursements for which it has not
been reimbursed and, to the extent not so applied, shall be held for the
satisfaction of the reimbursement obligations of the Borrower for the LC
Exposure at such time or, if the maturity of the Loans has been accelerated (but
subject to the consent of Lenders with LC Exposure representing greater than 50%
of the total LC Exposure), be applied to satisfy other obligations of the
Obligors under this Agreement. If the Borrower is required to provide an amount
of cash collateral hereunder as a result of the occurrence of an Event of
Default or the renewal of a Letter of Credit or an excess of the Revolving
Credit Exposure (either in and of itself or together with the Pari Passu Debt),
as the case may be, such amount (to the extent not applied as aforesaid) shall
be returned to the Borrower within three Business Days after all Events of
Default have been cured or waived or, in the case of a renewal of a Letter of
Credit that would cause the expiration date of such Letter of Credit to extend
beyond the Maturity Date, after all amounts drawn or able to be drawn under
Letters of Credit have been reimbursed by the Borrower or, in the case of an
excess of the Revolving Credit Exposure, after such excess has been eliminated.
(k) To the extent that there are outstanding on the Effective
Date pursuant to the Existing Credit Agreement one or more letters of credit
issued by Chase (as the "Issuing Lender" thereunder) then, on the Effective
Date, each of such letters of credit is hereby designated a "Dollar Letter of
Credit" under and for all purposes of this Agreement. In that connection, the
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Borrower hereby represents and warrants to the Issuing Lender, each Dollar
Lender and the Administrative Agent that each such letter of credit satisfies
the requirements of this Section 2.05 (including paragraph (c) above).
SECTION 2.06. Funding of Borrowings.
(a) Each Lender shall make each Loan to be made by it
hereunder on the proposed date thereof by wire transfer of immediately available
funds by 1:00 p.m., Local Time in the location of the Administrative Agent's
Account for the relevant Currency, to the Administrative Agent's Account for
such Currency; provided that Swingline Loans shall be made as provided in
Section 2.04. The Administrative Agent will make such Loans available to the
Borrower by promptly crediting the amounts so received, in like funds, to an
account of the Borrower maintained with the Administrative Agent and designated
by the Borrower in the applicable Borrowing Request; provided that Eurocurrency
Loans, ABR Revolving Loans or Federal Funds Loans made to finance the
reimbursement of an LC Disbursement as provided in Section 2.05(e) shall be
remitted by the Administrative Agent to the relevant Issuing Bank.
(b) Unless the Administrative Agent shall have received notice
from a Lender prior to the proposed date of any Borrowing that such Lender will
not make available to the Administrative Agent such Lender's share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with paragraph (a) of this Section
and may, in reliance upon such assumption, make available to the Borrower a
corresponding amount. In such event, if a Lender has not in fact made its share
of the applicable Borrowing available to the Administrative Agent, then the
applicable Lender and the Borrower severally agree to pay to the Administrative
Agent forthwith on demand such corresponding amount with interest thereon, for
each day from and including the date such amount is made available to the
Borrower to but excluding the date of payment to the Administrative Agent, at
(i) for the first three Business Days, (A) in the case of such Lender, the
greater of the Federal Funds Effective Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation for Loans in the applicable Currency or (B) in the case of the
Borrower, the Federal Funds Rate (or, if such Loan is denominated in an Approved
Foreign Currency, at such other rate as the Administrative Agent shall determine
is appropriate in the circumstances) and (ii) thereafter, the interest rate
applicable to ABR Loans. If such Lender pays such amount to the Administrative
Agent, then such amount shall constitute such Lender's Loan included in such
Borrowing.
SECTION 2.07. Interest Elections.
(a) Each Revolving Borrowing initially shall be of the Type
specified in the applicable Borrowing Request and, in the case of a Eurocurrency
Revolving Borrowing, shall have an initial Interest Period as specified in such
Borrowing Request. Thereafter, the Borrower may elect to convert such Borrowing
to a different Type or to continue such Borrowing and, in the case of a
Eurocurrency Revolving Borrowing, may elect Interest Periods therefor, all as
provided in this Section; provided, however, that (i) a Borrowing denominated in
one Currency may not be converted to a Borrowing in a different Currency and
(ii) a Eurocurrency Borrowing denominated in an Approved Foreign Currency may
not be converted to a Borrowing of a different Type. Subject to the foregoing,
the Borrower may elect different options with respect to different portions of
the affected Borrowing, in which case each such portion shall be allocated
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ratably among the Lenders holding the Loans comprising such Borrowing, and the
Loans comprising each such portion shall be considered a separate Borrowing.
This Section shall not apply to Swingline Borrowings, which may not be converted
or continued.
(b) To make an election pursuant to this Section, the Borrower
shall notify the Administrative Agent of such election by telephone by the time
that a Borrowing Request would be required under Section 2.03 if the Borrower
were requesting a Revolving Borrowing of the Type resulting from such election
to be made on the effective date of such election. Each such telephonic Interest
Election Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the Administrative Agent of a written Interest Election
Request in a form approved by the Administrative Agent and signed by the
Borrower.
(c) Each telephonic and written Interest Election Request
shall specify the following information in compliance with Section 2.02:
(i) the Borrowing to which such Interest Election Request
applies and, if different options are being elected with respect to
different portions thereof, the portions thereof to be allocated to
each resulting Borrowing (in which case the information to be specified
pursuant to clauses (iii) and (iv) below shall be specified for each
resulting Borrowing);
(ii) the effective date of the election made pursuant to such
Interest Election Request, which shall be a Business Day;
(iii) whether the resulting Borrowing is to be an ABR
Borrowing, a Federal Funds Borrowing or a Eurocurrency Borrowing; and
(iv) if the resulting Borrowing is a Eurocurrency Borrowing,
the Interest Period to be applicable thereto after giving effect to
such election, which shall be a period contemplated by the definition
of the term "Interest Period".
If any such Interest Election Request requests a Eurocurrency
Borrowing but does not specify an Interest Period, then the Borrower shall be
deemed to have selected an Interest Period of one month's duration.
(d) Promptly following receipt of an Interest Election
Request, the Administrative Agent shall advise each applicable Lender of the
details thereof and of such Lender's portion of each resulting Borrowing.
(e) If the Borrower fails to deliver a timely Interest
Election Request with respect to a Eurocurrency Borrowing prior to the end of
the Interest Period applicable thereto, then, unless such Borrowing is repaid as
provided herein, (i) if such Borrowing is denominated in Dollars, at the end of
such Interest Period such Borrowing shall be converted to a Federal Funds
Borrowing, and (ii) if such Borrowing is denominated in a Foreign Currency, the
Borrower shall be deemed to have selected an Interest Period of one month's
duration. Notwithstanding any contrary provision hereof, if an Event of Default
has occurred and is continuing and the Administrative Agent, at the request of
the Required Lenders, so notifies the Borrower, then, so long as an Event of
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Default is continuing (A) no outstanding Borrowing denominated in Dollars may be
converted to or continued as a Eurocurrency Borrowing, (B) unless repaid, each
Eurocurrency Borrowing denominated in Dollars shall be converted to an ABR
Borrowing at the end of the Interest Period therefor and (C) no outstanding
Eurocurrency Borrowing denominated in an Approved Foreign Currency may have an
Interest Period of more than one month's duration.
SECTION 2.08. Termination, Reduction and Increase of
Commitments.
(a) Unless previously terminated, the Commitments shall
terminate on the Maturity Date.
(b) The Borrower may at any time terminate, or from time to
time reduce, the Commitments (and Sub-Commitments); provided that (i) each
reduction of the Commitments (and of either Sub-Commitment) shall be in an
amount that is an integral multiple of $5,000,000 and not less than $10,000,000
and (ii) the Borrower shall not terminate or reduce the Commitments (and either
Sub-Commitment) if, after giving effect to any concurrent prepayment of the
Loans in accordance with Section 2.10, the sum of the Revolving Credit Exposures
would exceed the Total Commitment, the sum of the Revolving Dollar Credit
Exposure would exceed the Total Dollar Sub-Commitment or the sum of the
Revolving Multicurrency Credit Exposures would exceed the Total Multicurrency
Sub-Commitment.
(c) The Borrower shall notify the Administrative Agent of (i)
any election to terminate or reduce the Commitments under paragraph (b) of this
Section, and (ii) in the case of a reduction, the amount of such reduction (if
any) to be allocated to the Dollar Sub-Commitment and Multicurrency
Sub-Commitment hereunder, at least three Business Days prior to the effective
date of such termination or reduction, specifying such election, the aggregate
amount of a reduction and any allocation as aforesaid, and the effective date
thereof. Promptly following receipt of any notice, the Administrative Agent
shall advise the Lenders of the contents thereof. Each notice delivered by the
Borrower pursuant to this Section shall be irrevocable; provided that a notice
of termination of the Commitments delivered by the Borrower may state that such
notice is conditioned upon the effectiveness of other credit facilities, in
which case such notice may be revoked by the Borrower (by notice to the
Administrative Agent on or prior to the specified effective date) if such
condition is not satisfied. Any termination or reduction of the Commitments (and
of Sub-Commitments) shall be permanent. Each reduction of the Commitments and
Sub-Commitments shall be made ratably among the Lenders in accordance with their
respective Commitments and Sub-Commitments, as the case may be.
(d) The Borrower may at any time, by notice to the
Administrative Agent, propose that the Total Commitment (and either
Sub-Commitment) be increased by having one or more Lenders agree to increase the
amount of such Lender's Commitments (and its Sub-Commitment hereunder), or by
having one or more banks or other financial institutions become a "Lender" (and,
as applicable, a "Dollar Lender" or "Multicurrency Lender" party to this
Agreement), in each case effective as of a date more than 45 days prior to the
then-current date of termination of the Commitments (a "Commitment Increase
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Date"); provided that (i) the Borrower may not propose more than two Commitment
Increase Dates occurring in any period of 12 months ending on an anniversary of
the Effective Date, (ii) the addition of any bank or other financial institution
to this Agreement that is not already a Lender shall be subject to the consent
of the Administrative Agent (which consent shall not be unreasonably withheld)
and the Issuing Bank in its sole discretion, (iii) the increase in the
Commitment (and either Sub-Commitment) of any Lender already party to this
Agreement shall in each case be subject to the agreement of the affected Lender
in its sole discretion and to the consent of the Issuing Bank in its sole
discretion, (iv) in no event shall the Total Commitment at any time exceed
$450,000,000 and in no event shall the Total Multicurrency Sub-Commitment at any
time exceed $50,000,000, (v) the Commitment (or Dollar Sub-Commitment or
Multicurrency Sub-Commitment) of any bank or other financial institution
becoming a "Lender" and/or a "Dollar Lender" or "Multicurrency Lender" party to
this Agreement (an "Assuming Lender") shall be in an amount not less than
$10,000,000 which is an integral multiple of $1,000,000, (vi) any increase in
the amount of any Commitment (and Sub-Commitment) of any Lender already party to
this Agreement (an "Increasing Lender") shall be in an amount not less than
$5,000,000 and in an integral multiple of $1,000,000 and (vii) no such increase
may result in any Lender holding more than 25% of the Commitments (or either
Sub-Commitment), and no Lender that holds more than 25% of the Commitments may
be an Increasing Lender. The Administrative Agent shall notify the Lenders
thereof promptly upon its receipt of such notice.
(e) Any increase in the Total Commitment (or the Total Dollar
Sub-Commitment or Total Multicurrency Sub-Commitment) pursuant to Section
2.08(d) (a "Commitment Increase") shall be effective only upon the execution and
delivery to the Borrower and the Administrative Agent of a commitment increase
letter, which commitment increase letter shall be delivered to the
Administrative Agent not fewer than five Business Days prior to the Commitment
Increase Date and shall specify (i) the amount of the Commitment of any Assuming
Lender and of any increase in the Commitment (or Dollar Sub-Commitment or
Multicurrency Sub-Commitment) of any Increasing Lender and (ii) the Commitment
Increase Date.
(f) On the applicable Commitment Increase Date, (i) each
Increasing Lender and each Assuming Lender shall make available to the
Administrative Agent, in same day funds, in the case of such Assuming Lender, an
amount equal to such Assuming Lender's ratable portion of the Borrowings then
outstanding that utilize the applicable Sub-Commitment being increased
(calculated based on such Sub-Commitment as a percentage of the Total Dollar
Sub-Commitment or Total Multicurrency Sub-Commitment, as applicable, outstanding
after giving effect to the relevant Commitment Increase) and, in the case of
such Increasing Lender, an amount equal to the excess of (A) such Increasing
Lender's ratable portion of the Dollar Loans or Multicurrency Loans, as
applicable, then outstanding (calculated based on its Dollar Sub-Commitment or
Multicurrency Sub-Commitment as a percentage of the Total Dollar Sub-Commitment
or Total Multicurrency Sub-Commitment, as applicable, outstanding after giving
effect to the relevant Commitment Increase) over (B) such Increasing Lender's
pro rata share of the Dollar Loans or Multicurrency Loans, as applicable, then
outstanding (calculated based on its Dollar Sub-Commitment or Multicurrency
Sub-Commitment (without giving effect to the relevant Commitment Increase) as a
percentage of a Total Dollar Sub-Commitment or Total Multicurrency
Sub-Commitment (without giving effect to the relevant Commitment Increase) and
(ii) the amounts of the participations held by all of the Lenders under Section
2.05(d) in LC Exposure shall automatically and without any further action on the
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part of the Issuing Bank or the Lenders be adjusted to reflect their Applicable
Dollar Percentages and Applicable Multicurrency Percentages (after giving effect
to the relevant Commitment Increases).
After the Administrative Agent's receipt of such funds from
each such Increasing Lender and each such Assuming Lender, the Administrative
Agent will promptly thereafter cause to be distributed like funds to the other
Dollar Lenders and Multicurrency Lenders, as applicable, in an amount to each
other Dollar Lender and Multicurrency Lender such that the aggregate amount of
the outstanding Dollar Loans owing to each Dollar Lender, and Multicurrency
Loans owing to each Multicurrency Lender, after giving effect to such
distribution equals such Dollar Lender's or Multicurrency Lender's pro rata
share of the Dollar Loans and Multicurrency Loans then outstanding (calculated
based on its Applicable Dollar Percentage and Applicable Multicurrency
Percentage after giving effect to the relevant Commitment Increase). Interest
accrued to but excluding the Commitment Increase Date shall be paid by the
Borrower in respect of any principal so distributed. After giving effect to the
foregoing, each Lender (including each Assuming Lender) shall be deemed to hold
its pro rata share, based on its Applicable Dollar Percentage and Applicable
Multicurrency Percentage (after giving effect to the relevant Commitment
Increase) of each outstanding Borrowing that utilizes the Dollar Sub-Commitments
or Multicurrency Sub-Commitments hereunder, as applicable. Any payments in
respect of Eurocurrency Loans received by a Lender under this Section other than
on the last day of the Interest Period relating thereto shall be subject to
indemnification by the Borrower pursuant to the provisions of Section 2.15.
(g) Any Commitment Increase shall not be effective unless:
(i) the representations and warranties set forth in Article
III shall be true and correct in all material respects on and as of the
Commitment Increase Date with the same effect as though made on and as
of such date, except to the extent such representations and warranties
expressly relate to an earlier date;
(ii) on the Commitment Increase Date, no Default shall have
occurred and be continuing;
(iii) no notice of borrowing of Eurocurrency Loans shall be
outstanding, in each case, on and as of such Commitment Increase Date;
(iv) each Assuming Lender shall have delivered to the
Administrative Agent and the Issuing Bank an assumption agreement in
form and substance reasonably satisfactory to the Administrative Agent
and the Issuing Bank, duly executed by such Assuming Lender and the
Borrower pursuant to which such Assuming Lender agrees to become a
"Lender" (and a Dollar Lender or Multicurrency Lender) party hereto;
(v) each Increasing Lender shall have delivered to the
Administrative Agent a confirmation in writing satisfactory to the
Administrative Agent as to its increased Commitment;
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(vi) each Subsidiary Guarantor shall have delivered to the
Administrative Agent a consent in form and substance reasonably
satisfactory to the Administrative Agent, pursuant to which such
Subsidiary Guarantor consents to such Commitment Increase; and
(vii) the Administrative Agent shall have received (with
sufficient copies for each of the Lenders) documents consistent with
those delivered on the Closing Date under clauses (b) and (e) of
Section 4.01 as to such Commitment Increase.
Each notice requesting a Commitment Increase shall constitute a certification to
the effect set forth in clauses (i) and (ii) of the preceding sentence.
SECTION 2.09. Repayment of Loans; Evidence of Debt.
(a) The Borrower hereby unconditionally promises to pay (i) to
the Administrative Agent for the account of each Lender the then unpaid
principal amount of each Revolving Loan on the Maturity Date and (ii) to the
Swingline Lender the then unpaid principal amount of each Swingline Loan on the
earlier of the date such repayment is demanded pursuant to Section 2.04(d)
hereof, the Maturity Date and the first date after such Swingline Loan is made
that is the 15th or last day of a calendar month and is at least two Business
Days after such Swingline Loan is made; provided that on each date that a
Revolving Borrowing is made, the Borrower shall repay all Swingline Loans then
outstanding.
(b) Each Lender shall maintain in accordance with its usual
practice an account or accounts evidencing the indebtedness of the Borrower to
such Lender resulting from each Loan made by such Lender, including the amounts
and Currency of principal and interest payable and paid to such Lender from time
to time hereunder.
(c) The Administrative Agent shall maintain accounts in which
it shall record (i) the amount and Currency of each Loan made hereunder, the
Sub-Commitment, Class and Type thereof and the Interest Period applicable
thereto, (ii) the amount and Currency of any principal or interest due and
payable or to become due and payable from the Borrower to each Lender hereunder
and (iii) the amount and Currency of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender's share thereof.
(d) The entries made in the accounts maintained pursuant to
paragraph (b) or (c) of this Section shall be prima facie evidence of the
existence and amounts of the obligations recorded therein; provided that the
failure of any Lender or the Administrative Agent to maintain such accounts or
any error therein shall not in any manner affect the obligation of the Borrower
to repay the Loans in accordance with the terms of this Agreement.
(e) Any Lender may request that Loans of any Sub-Commitment
made by it be evidenced by a promissory note. In such event, the Borrower shall
prepare, execute and deliver to such Lender a promissory note payable to the
order of such Lender (or, if requested by such Lender, to such Lender and its
registered assigns) and in a form approved by the Administrative Agent.
Thereafter, the Loans evidenced by such promissory note and interest thereon
shall at all times (including after assignment pursuant to Section 10.04) be
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represented by one or more promissory notes in such form payable to the order of
the payee named therein (or, if such promissory note is a registered note, to
such payee and its registered assigns).
SECTION 2.10. Prepayment of Loans.
(a) The Borrower shall have the right at any time and from
time to time to prepay any Borrowing in whole or in part, subject to prior
notice in accordance with paragraph (b) of this Section and provided that the
aggregate principal amount of any prepayment that does not result in the
prepayment of a Borrowing in full shall be in an integral multiple of $1,000,000
(or the Foreign Currency Equivalent of such amount).
(b) The Borrower shall from time to time prepay the Revolving
Loans and Swingline Loans (and/or provide cover for LC Exposure as specified in
Section 2.05(j)) in such amounts as shall be necessary so that at all times the
sum of the aggregate outstanding amount of Revolving Credit Exposure plus the
aggregate principal amount of Pari Passu Debt then outstanding plus the
aggregate principal amount (as defined in the definition of "Material
Indebtedness" herein) of the obligations of the Borrower and its Subsidiaries
under Hedging Agreements shall not exceed the Consolidated Borrowing Base, such
amounts to be applied, first, to Swingline Loans outstanding, second, to
Revolving Loans outstanding and, third, as cover for LC Exposure outstanding.
On each date on which a Borrowing Base Certificate is
delivered pursuant to Section 5.01(f), the Borrower shall (as provided in
Section 5.01(f)) determine the aggregate Revolving Credit Exposure (taking into
account the Dollar Equivalent of the aggregate amount of Revolving Credit Loans
denominated in any Approved Foreign Currency), and shall provide the
Administrative Agent with a copy of such determination. In addition, promptly
upon the receipt by the Administrative Agent of a Currency Valuation Notice (as
defined below), the Administrative Agent shall (and at any time at the
Administrative Agent's option, the Administrative Agent may) similarly determine
the aggregate Revolving Credit Exposure. Upon receipt of any such determination
from the Borrower, and upon its making any such determination, the
Administrative Agent shall promptly notify the Lenders thereof (and in the case
of any such determination by the Administrative Agent, the Borrower). If on the
date of any such determination the aggregate Revolving Credit Exposure exceeds
105% of the aggregate amount of the Commitments as then in effect, the Borrower
shall, if requested by the Required Lenders (through the Administrative Agent),
prepay the Revolving Loans and Swingline Loans (and/or provide cover for LC
Exposure as specified in Section 2.05(j)) in such amounts as shall be necessary
so that after giving effect thereto, the aggregate Revolving Credit Exposure
does not exceed the Commitments. For purposes hereof, "Currency Valuation
Notice" means a notice given by the Required Lenders stating that such notice is
a "Currency Valuation Notice" and requesting that the Administrative Agent
determine the Dollar Equivalent of the aggregate Revolving Credit Exposure. The
Administrative Agent shall not be required to make more than one valuation
determination pursuant to a Currency Valuation Notice during any rolling
three-month period.
For the purpose of the determinations in this paragraph (b),
the outstanding principal amount of any Loan that is denominated in an Approved
Foreign Currency shall be deemed to be the Dollar Equivalent of the amount in
the Currency of such Loan, determined as of the date of such determination or,
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in the case of a Currency Valuation Notice received by the Administrative Agent
prior to 11:00 a.m., New York City time, on a Business Day, on such Business Day
or, in the case of a Currency Valuation Notice otherwise received, on the first
Business Day after such Currency Valuation Notice is received.
(c) The Borrower shall notify the Administrative Agent (and,
in the case of prepayment of a Swingline Loan, the Swingline Lender) by
telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case of
prepayment of a Eurocurrency Revolving Borrowing, not later than 11:00 a.m., New
York City time (or, in the case of a Borrowing denominated in an Approved
Foreign Currency, 11:00 a.m., London time), three Business Days before the date
of prepayment, (ii) in the case of prepayment of an ABR Revolving Borrowing or a
Federal Funds Revolving Borrowing, not later than 11:00 a.m., New York City
time, one Business Day before the date of prepayment or (iii) in the case of
prepayment of a Swingline Loan, not later than 12:00 noon, New York City time,
on the date of prepayment. Each such notice shall be irrevocable and shall
identify the Borrowing to be prepaid (specifying the Currency thereof), the
prepayment date and the principal amount of such Borrowing or portion thereof to
be prepaid; provided that, if a notice of prepayment is given in connection with
a conditional notice of termination of the Commitments as contemplated by
Section 2.08, then such notice of prepayment may be revoked if such notice of
termination is revoked in accordance with Section 2.08. Promptly following
receipt of any such notice relating to a Revolving Borrowing, the Administrative
Agent shall advise the applicable Lenders of the contents thereof. Each partial
prepayment of any Revolving Borrowing shall be in an amount that would be
permitted in the case of an advance of a Revolving Borrowing of the same Type as
provided in Section 2.02. Each prepayment of a Revolving Borrowing shall be
applied ratably to the Loans included in the prepaid Borrowing. Prepayments
shall be accompanied by accrued interest to the extent required by Section 2.12.
SECTION 2.11. Fees.
(a) The Borrower agrees to pay to the Administrative Agent for
the account of each Lender a Commitment Fee, which shall accrue at the
Applicable Rate on the daily unused amount of the Commitment of such Lender
during the period from and including the date hereof to but excluding the date
on which such Commitment terminates. For purposes of this Section 2.11(a) only,
Swingline Loans shall not be deemed to constitute a use of any Lender's
Commitment. Accrued Commitment Fees shall be payable in arrears on the last day
of March, June, September and December of each year and on the date on which the
Commitments terminate, commencing on the first such date to occur after the date
hereof; provided that any Commitment Fees accruing after the date on which the
Commitments terminate shall be payable on demand. All Commitment Fees shall be
computed on the basis of a year of 360 days and shall be payable for the actual
number of days elapsed (including the first day but excluding the last day).
(b) The Borrower agrees to pay (i) to the Administrative Agent
for the account of each Lender a participation fee with respect to its
participations in Letters of Credit, which shall accrue at the Applicable Rate
for Letters of Credit on the average daily amount of such Lender's LC Exposure
(excluding any portion thereof attributable to unreimbursed LC Disbursements)
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during the period from and including the Effective Date to but excluding the
later of the date on which such Lender's Commitment terminates and the date on
which such Lender ceases to have any LC Exposure, (ii) to the relevant Issuing
Bank a fronting fee, which shall accrue at the rate of 1/8 of 1% per annum on
the average daily amount of such Issuing Bank's LC Exposure (excluding any
portion thereof attributable to unreimbursed LC Disbursements) during the period
from and including the Effective Date to but excluding the later of the date of
termination of the Commitments and the date on which there ceases to be any LC
Exposure, and (iii) to the relevant Issuing Bank its standard fees with respect
to the issuance, amendment, renewal or extension of any Letter of Credit or
processing of drawings thereunder. Participation fees and fronting fees accrued
through and including the last day of March, June, September and December of
each year shall be payable on the third Business Day following such last day,
commencing on the first such date to occur after the Effective Date; provided
that all such fees shall be payable on the date on which the Commitments
terminate and any such fees accruing after the date on which the Commitments
terminate shall be payable on demand. Any other fees payable to an Issuing Bank
pursuant to this paragraph shall be payable within 10 days after demand. All
participation fees and fronting fees shall be computed on the basis of a year of
360 days and shall be payable for the actual number of days elapsed (including
the first day but excluding the last day).
(c) The Borrower agrees to pay to the Administrative Agent,
for its own account, fees payable in the amounts and at the times separately
agreed upon between the Borrower and the Administrative Agent.
(d) All fees payable hereunder shall be paid on the dates due,
in Dollars and immediately available funds, to the Administrative Agent (or to
the relevant Issuing Bank, in the case of fees payable to it) for distribution,
in the case of Commitment Fees and participation fees, to the Lenders. Fees paid
shall not be refundable under any circumstances.
SECTION 2.12. Interest.
(a) The Loans comprising each ABR Borrowing (including each
Swingline Loan comprised of an ABR Borrowing in accordance with Section 2.02(b))
shall bear interest at the Alternate Base Rate plus the Applicable Rate.
(b) The Loans comprising each Federal Funds Borrowing
(including each Swingline Loan comprised of a Federal Funds Borrowing in
accordance with Section 2.02(b)) shall bear interest at the Federal Funds Rate
plus the Applicable Rate.
(c) The Loans comprising each Eurocurrency Borrowing shall
bear interest at the Adjusted LIBO Rate for the Interest Period in effect for
such Borrowing plus the Applicable Rate.
(d) Notwithstanding the foregoing, if any principal of or
interest on any Loan or any fee or other amount payable by the Borrower
hereunder is not paid when due, whether at stated maturity, upon acceleration or
otherwise, such overdue amount shall bear interest, after as well as before
judgment, at a rate per annum equal to (i) in the case of overdue principal of
any Loan, 2% plus the rate otherwise applicable to such Loan as provided in the
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preceding paragraphs of this Section or (ii) in the case of any other amount, 2%
plus the rate applicable to ABR Loans as provided in paragraph (a) of this
Section.
(e) Accrued interest on each Loan shall be payable in arrears
on each Interest Payment Date for such Loan and upon termination of the
Commitments; provided that (i) interest accrued pursuant to paragraph (d) of
this Section shall be payable on demand, (ii) in the event of any repayment or
prepayment of any Loan (other than a prepayment of an ABR Revolving Loan or a
Federal Funds Revolving Loan prior to the end of the Availability Period),
accrued interest on the principal amount repaid or prepaid shall be payable on
the date of such repayment or prepayment and (iii) in the event of any
conversion of any Eurocurrency Revolving Loan prior to the end of the current
Interest Period therefor, accrued interest on such Loan shall be payable on the
effective date of such conversion.
(f) All interest hereunder shall be computed on the basis of a
year of 360 days, except that interest computed by reference to the Alternate
Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall
be computed on the basis of a year of 365 days (or 366 days in a leap year), and
in each case shall be payable for the actual number of days elapsed (including
the first day but excluding the last day). The applicable Alternate Base Rate,
Federal Funds Rate and Adjusted LIBO Rate shall be determined by the
Administrative Agent, and such determination shall be conclusive absent manifest
error.
SECTION 2.13. Alternate Rate of Interest. If prior to the
commencement of any Interest Period for a Eurocurrency Borrowing (the Currency
of such Borrowing being herein called the "Affected Currency"):
(a) the Administrative Agent determines (which determination
shall be conclusive absent manifest error) that adequate and reasonable
means do not exist for ascertaining the Adjusted LIBO Rate for the
Affected Currency for such Interest Period; or
(b) the Administrative Agent is advised by Lenders of the
affected Sub-Commitment having more than 50% of such Sub-Commitment
that the Adjusted LIBO Rate for the Affected Currency for such Interest
Period will not adequately and fairly reflect the cost to such Lenders
of making or maintaining their Loans included in such Borrowing for
such Interest Period;
then the Administrative Agent shall give notice thereof to the Borrower and the
affected Lenders by telephone or telecopy as promptly as practicable thereafter
and, until the Administrative Agent notifies the Borrower and such Lenders that
the circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Borrowing to, or the
continuation of any Borrowing as, a Eurocurrency Borrowing denominated in the
Affected Currency shall be ineffective and, if the Affected Currency is Dollars,
such Borrowing (unless prepaid) shall be continued as, or converted to, a
Federal Funds Borrowing, (ii) if the Affected Currency is Dollars and any
Borrowing Request requests a Eurocurrency Borrowing denominated in Dollars, such
Borrowing shall be made as a Federal Funds Borrowing and (iii) if the Affected
Currency is a Foreign Currency, any Borrowing Request that requests a
Eurocurrency Borrowing denominated in the Affected Currency shall be
ineffective.
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SECTION 2.14. Increased Costs.
(a) If any Change in Law shall:
(i) impose, modify or deem applicable any reserve, special
deposit or similar requirement against assets of, deposits with or for
the account of, or credit extended by, any Lender (except any such
reserve requirement reflected in the Adjusted LIBO Rate) or any Issuing
Bank; or
(ii) impose on any Lender or any Issuing Bank or the London
interbank market any other condition affecting this Agreement or
Eurocurrency Loans made by such Lender or any Letter of Credit or
participation therein;
and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Eurocurrency Loan (or of maintaining its
obligation to make any such Loan) or to increase the cost to such Lender or
Issuing Bank of participating in, issuing or maintaining any Letter of Credit or
to reduce the amount of any sum received or receivable by such Lender or Issuing
Bank hereunder (whether of principal, interest or otherwise), then the Borrower
will pay to such Lender or the relevant Issuing Bank, as the case may be, in
Dollars, such additional amount or amounts as will compensate such Lender or the
relevant Issuing Bank for such additional costs incurred or reduction suffered.
(b) If any Lender or Issuing Bank determines that any Change
in Law regarding capital requirements has or would have the effect of reducing
the rate of return on such Lender's or Issuing Bank's capital or on the capital
of such Lender's or Issuing Bank's holding company, if any, as a consequence of
this Agreement or the Loans made by, or participations in Letters of Credit held
by, such Lender, or the Letters of Credit issued by such Issuing Bank, to a
level below that which such Lender, such Issuing Bank or such Lender's or
Issuing Bank's holding company could have achieved but for such Change in Law
(taking into consideration such Lender's or such Issuing Bank's policies and the
policies of such Lender's or such Issuing Bank's holding company with respect to
capital adequacy), then from time to time the Borrower will pay to such Lender
or Issuing Bank, as the case may be, in Dollars, such additional amount or
amounts as will compensate such Lender or Issuing Bank or such Lender's or
Issuing Bank's holding company for any such reduction suffered.
(c) A certificate of a Lender or an Issuing Bank setting forth
the amount or amounts, in Dollars, necessary to compensate such Lender or
Issuing Bank or its holding company, as the case may be, as specified in
paragraph (a) or (b) of this Section shall be delivered to the Borrower and
shall be conclusive absent manifest error. The Borrower shall pay such Lender or
Issuing Bank, as the case may be, the amount shown as due on any such
certificate within 10 days after receipt thereof.
(d) Failure or delay on the part of any Lender or Issuing Bank
to demand compensation pursuant to this Section shall not constitute a waiver of
such Lender's or Issuing Bank's right to demand such compensation; provided that
the Borrower shall not be required to compensate a Lender or an Issuing Bank
pursuant to this Section 2.14 for any increased costs or reductions incurred
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more than 270 days prior to the date that such Lender or Issuing Bank, as the
case may be, notifies the Borrower of the Change in Law giving rise to such
increased costs or reductions and of such Lender's or Issuing Bank's intention
to claim compensation therefor; provided further that, if the Change in Law
giving rise to such increased costs or reductions is retroactive, then the
270-day period referred to above shall be extended to include the period of
retroactive effect thereof.
SECTION 2.15. Break Funding Payments. In the event of (a) the
payment of any principal of any Eurocurrency Loan other than on the last day of
an Interest Period applicable thereto (including as a result of an Event of
Default), (b) the conversion of any Eurocurrency Loan other than on the last day
of the Interest Period applicable thereto, (c) the failure to borrow, convert,
continue or prepay any Revolving Loan on the date specified in any notice
delivered pursuant hereto (regardless of whether such notice may be revoked
under Section 2.10(c) and is revoked in accordance therewith) or (d) the
assignment of any Eurocurrency Loan other than on the last day of the Interest
Period applicable thereto as a result of a request by the Borrower pursuant to
Section 2.18, then, in any such event, the Borrower shall compensate each Lender
for the loss, cost and expense attributable to such event. In the case of a
Eurocurrency Loan, such loss, cost or expense to any Lender shall be deemed to
include an amount determined by such Lender to be the excess, if any, of (i) the
amount of interest which would have accrued on the principal amount of such
Loan, denominated in the Currency of such Loan, had such event not occurred, at
the Adjusted LIBO Rate that would have been applicable to such Loan, for the
period from the date of such event to the last day of the then current Interest
Period therefor (or, in the case of a failure to borrow, convert or continue,
for the period that would have been the Interest Period for such Loan), over
(ii) the amount of interest which would accrue on such principal amount for such
period at the interest rate which such Lender would bid were it to bid, at the
commencement of such period, for deposits of a comparable amount and period,
denominated in such Currency from other banks in the Eurocurrency market. A
certificate of any Lender setting forth any amount or amounts that such Lender
is entitled to receive pursuant to this Section shall be delivered to the
Borrower and shall be conclusive absent manifest error. The Borrower shall pay
such Lender the amount shown as due on any such certificate within 10 days after
receipt thereof.
SECTION 2.16. Taxes.
(a) Any and all payments by or on account of any obligation of
the Borrower hereunder shall be made free and clear of and without deduction for
any Indemnified Taxes or Other Taxes; provided that if the Borrower shall be
required to deduct any Indemnified Taxes or Other Taxes from such payments, then
(i) the sum payable shall be increased as necessary so that after making all
required deductions (including deductions applicable to additional sums payable
under this Section) the Administrative Agent, Lender or Issuing Bank (as the
case may be) receives an amount equal to the sum it would have received had no
such deductions been made, (ii) the Borrower shall make such deductions and
(iii) the Borrower shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.
(b) In addition, the Borrower shall pay any Other Taxes to the
relevant Governmental Authority in accordance with applicable law.
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(c) The Borrower shall indemnify the Administrative Agent,
each Lender and each Issuing Bank, within 10 days after written demand therefor,
for the full amount of any Indemnified Taxes or Other Taxes paid by the
Administrative Agent, such Lender or such Issuing Bank, as the case may be, on
or with respect to any payment by or on account of any obligation of the
Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section) and any
penalties, interest and reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority. A
certificate as to the amount of such payment or liability delivered to the
Borrower by a Lender or an Issuing Bank, or by the Administrative Agent on its
own behalf or on behalf of a Lender or an Issuing Bank, shall be conclusive
absent manifest error.
(d) As soon as practicable after any payment of Indemnified
Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower
shall deliver to the Administrative Agent the original or a certified copy of a
receipt issued by such Governmental Authority evidencing such payment, a copy of
the return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.
(e) Any Foreign Lender that is entitled to an exemption from
or reduction of withholding tax under the law of the jurisdiction in which the
Borrower is located, or any treaty to which such jurisdiction is a party, with
respect to payments under this Agreement shall deliver to the Borrower (with a
copy to the Administrative Agent), at the time or times prescribed by applicable
law, such properly completed and executed documentation prescribed by applicable
law or reasonably requested by the Borrower as will permit such payments to be
made without withholding or at a reduced rate.
SECTION 2.17. Payments Generally; Pro Rata Treatment; Sharing
of Set-offs.
(a) The Borrower shall make each payment required to be made
by it hereunder and under the other Loan Documents (whether of principal,
interest, fees or reimbursement of LC Disbursements, or of amounts payable under
Section 2.14, 2.15 or 2.16, or otherwise) prior to 12:00 noon, Local Time in the
location of the Administrative Agent's Account for the relevant Currency, on the
date when due, in immediately available funds, without set-off or counterclaim.
Any amounts received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon. All such payments
shall be made to the Administrative Agent at the Administrative Agent's Account
for the relevant Currency, except that payments to be made directly to an
Issuing Bank or the Swingline Lender as expressly provided herein and except
that payments pursuant to Sections 2.14, 2.15, 2.16 and 10.03 shall be made
directly to the Persons entitled thereto. The Administrative Agent shall
distribute, in like Currency and funds, any such payments received by it for the
account of any other Person to the appropriate recipient promptly following
receipt thereof.
(b) If any payment hereunder shall be due on a day that is not
a Business Day, the date for payment shall be extended to the next succeeding
Business Day, and, in the case of any payment accruing interest, interest
thereon shall be payable for the period of such extension.
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(c) All amounts owing under this Agreement (including
commitment fees, payments required under Section 2.14, and payments required
under Section 2.15 relating to any Loan denominated in Dollars) or under any
other Loan Document (except to the extent otherwise provided therein) are
payable in Dollars, provided that all payments of principal of and interest on
any Loan denominated in an Approved Foreign Currency, and all payments relating
to such Loans under Section 2.15 should be payable in such Foreign Currency.
Notwithstanding the foregoing, if the Borrower shall fail to pay any principal
of any Loan when due (whether at stated maturity, by acceleration, by mandatory
prepayment or otherwise), the unpaid portion of such Loan shall, if such Loan is
not denominated in Dollars, automatically be redenominated in Dollars on the due
date thereof (or, if such due date is a day other than the last day of the
Interest Period therefor, on the last day of such Interest Period) in an amount
equal to the Dollar Equivalent thereof on the date of such redenomination and
such principal shall be payable on demand; and if the Borrower shall fail to pay
any interest on any Loan that is not denominated in Dollars, such interest shall
automatically be redenominated in Dollars on the due date therefor (or, if such
due date is a day other than the last day of the Interest Period therefor, on
the last day of such Interest Period) in an amount equal to the Dollar
Equivalent thereof on the date of such redenomination and such interest shall be
payable on demand.
(d) Except to the extent otherwise provided herein: (i) each
Borrowing of Dollar Loans or Multicurrency Loans in a particular Currency from
the Lenders under Section 2.01 hereof shall be made from the relevant Lenders,
each payment of Commitment Fees or of participation fees under Section 2.11
hereof in respect of the Dollar Sub-Commitment or the Multicurrency
Sub-Commitment shall be made for account of the relevant Lenders, and each
termination, reduction or increase of the amount of the Commitment, Dollar
Sub-Commitment or Multicurrency Sub-Commitment under Section 2.08 hereof shall
be applied to the respective Commitments and Sub-Commitments of the relevant
Lenders, pro rata according to the amounts of their respective Commitments or
Sub-Commitments; (ii) the making, conversion and continuation of Loans of a
particular Type and Currency (other than conversions provided for by Section
2.13 hereof) shall be made pro rata among the relevant Lenders according to the
amounts of their respective Sub-Commitments (in the case of the making of Loans)
or their respective Loans (in the case of conversions and continuations of
Loans) and the then current Interest Period for each Eurocurrency Loan, as
applicable, shall be coterminous; (iii) each payment or prepayment of principal
of Dollar Loans or of Multicurrency Loans by the Borrowers shall be made for
account of the Dollar Lenders and the Multicurrency Lenders, as applicable, pro
rata in accordance with the respective unpaid principal amounts of the Dollar
Loans and Multicurrency Loans held by them; and (iv) each payment of interest on
Dollar Loans and Multicurrency Loans by the Borrowers shall be made for account
of the relevant Lenders pro rata in accordance with the amounts of interest on
such Dollar Loans and Multicurrency Loans then due and payable to the respective
Lenders.
(e) If at any time insufficient funds are received by and
available to the Administrative Agent to pay fully all amounts of principal,
unreimbursed LC Disbursements, interest and fees then due hereunder, such funds
shall be applied (i) first, towards payment of interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance with the
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amounts of interest and fees then due to such parties, and (ii) second, towards
payment of principal and unreimbursed LC Disbursements then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
principal and unreimbursed LC Disbursements then due to such parties.
(f) If any Lender shall, by exercising any right of set-off or
counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of its Revolving Loans or participations in LC Disbursements or
Swingline Loans resulting in such Lender receiving payment of a greater
proportion of the aggregate amount of its Revolving Loans and participations in
LC Disbursements and Swingline Loans and accrued interest thereon than the
proportion received by any other Lender, then the Lender receiving such greater
proportion shall purchase (for cash at face value) participations in the
Revolving Loans and participations in LC Disbursements and Swingline Loans of
other Lenders to the extent necessary so that the benefit of all such payments
shall be shared by the Lenders ratably in accordance with the aggregate amount
of principal of and accrued interest on their respective Revolving Loans and
participations in LC Disbursements and Swingline Loans; provided that (i) if any
such participations are purchased and all or any portion of the payment giving
rise thereto is recovered, such participations shall be rescinded and the
purchase price restored to the extent of such recovery, without interest, and
(ii) the provisions of this paragraph shall not be construed to apply to any
payment made by any Obligor pursuant to and in accordance with the express terms
of this Agreement or the other Loan Documents or any payment obtained by a
Lender as consideration for the assignment of or sale of a participation in any
of its Loans or participations in LC Disbursements to any assignee or
participant, other than to the Borrower or any Subsidiary or Affiliate thereof
(as to which the provisions of this paragraph shall apply). Each Obligor
consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the
foregoing arrangements may exercise against the Borrower rights of set-off and
counterclaim with respect to such participation as fully as if such Lender were
a direct creditor of such Obligor in the amount of such participation.
(g) Unless the Administrative Agent shall have received notice
from the Borrower prior to the date on which any payment is due to the
Administrative Agent for the account of the Lenders or the Issuing Banks
hereunder that the Borrower will not make such payment, the Administrative Agent
may assume that the Borrower has made such payment on such date in accordance
herewith and may, in reliance upon such assumption, distribute to the Lenders or
the relevant Issuing Bank, as the case may be, the amount due. In such event, if
the Borrower has not in fact made such payment, then each of the Lenders or the
Issuing Banks, as the case may be, severally agrees to repay to the
Administrative Agent forthwith on demand the amount so distributed to such
Lender or Issuing Bank with interest thereon, for each day from and including
the date such amount is distributed to it to but excluding the date of payment
to the Administrative Agent, at the greater of the Federal Funds Effective Rate
and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation.
(h) If any Lender shall fail to make any payment required to
be made by it pursuant to Section 2.04(c), 2.05(d) or (e), 2.06(b) or 2.17(g),
then the Administrative Agent may, in its discretion (notwithstanding any
contrary provision hereof), apply any amounts thereafter received by the
Administrative Agent for the account of such Lender to satisfy such Lender's
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obligations under such Sections until all such unsatisfied obligations are fully
paid.
SECTION 2.18. Mitigation Obligations; Replacement of Lenders.
(a) If any Lender requests compensation under Section 2.14, or
if the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.16,
then such Lender shall use reasonable efforts to designate a different lending
office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designation or assignment (i) would eliminate
or reduce amounts payable pursuant to Section 2.14 or 2.16 as the case may be,
in the future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender. The Borrower
hereby agrees to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.
(b) If any Lender requests compensation under Section 2.14, or
if the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.16,
or if any Lender defaults in its obligation to fund Loans hereunder, then the
Borrower may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in
Section 10.04), all its interests, rights and obligations under this Agreement
to an assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); provided that (i) the Borrower
shall have received the prior written consent of the Administrative Agent (and,
if a Commitment is being assigned, the Issuing Bank and the Swingline Lender),
which consent shall not unreasonably be withheld, (ii) such Lender shall have
received payment of an amount equal to the outstanding principal of its Loans
and participations in LC Disbursements and Swingline Loans, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder, from the
assignee (to the extent of such outstanding principal and accrued interest and
fees) or the Borrower (in the case of all other amounts) and (iii) in the case
of any such assignment resulting from a claim for compensation under Section
2.14 or payments required to be made pursuant to Section 2.16, such assignment
will result in a reduction in such compensation or payments. A Lender shall not
be required to make any such assignment and delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the
Borrower to require such assignment and delegation cease to apply.
ARTICLE III
REPRESENTATIONS AND WARRANTIES
The Borrower represents and warrants to the Lenders that:
SECTION 3.01. Organization; Powers. Each of the Borrower and
its Subsidiaries is duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization, has all requisite power and
authority to carry on its business as now conducted and, except where the
failure to do so, individually or in the aggregate, could not reasonably be
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expected to result in a Material Adverse Effect, is qualified to do business in,
and is in good standing in, every jurisdiction where such qualification is
required.
SECTION 3.02. Authorization; Enforceability. The Transactions
are within each Obligor's corporate powers and have been duly authorized by all
necessary corporate and, if required, stockholder action. Each of this Agreement
and the other Loan Documents has been duly executed and delivered by each
Obligor and constitutes a legal, valid and binding obligation of each Obligor,
enforceable in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors' rights
generally and subject to general principles of equity, regardless of whether
considered in a proceeding in equity or at law.
SECTION 3.03. Governmental Approvals; No Conflicts. The
Transactions (a) do not require any consent or approval of, registration or
filing with, or any other action by, any Governmental Authority, except for
filings and recordings in respect of the Liens created pursuant to the Security
Documents, (b) will not violate any applicable law or regulation or the charter,
by-laws or other organizational documents of the Borrower or any of its
Subsidiaries or any order of any Governmental Authority, (c) will not violate or
result in a default under any indenture, agreement or other instrument binding
upon the Borrower or any of its Subsidiaries or its assets, or give rise to a
right thereunder to require any payment to be made by the Borrower or any of its
Subsidiaries, and (d) except for the Lien created by the Security Documents,
will not result in the creation or imposition of any Lien on any asset of the
Borrower or any of its Subsidiaries.
SECTION 3.04. Financial Condition; No Material Adverse Change.
(a) The Borrower has heretofore furnished to the Lenders its
consolidated balance sheet, statements of income, stockholders equity and cash
flows and pro forma information as of and for the fiscal year ended May 2, 1999,
reported on by Xxxxxx Xxxxxxxx LLP, independent public accountants. Such
financial statements present fairly, in all material respects, the financial
position and results of operations and cash flows of the Borrower and its
consolidated Subsidiaries as of such dates and for such periods in accordance
with GAAP.
(b) Since May 2, 1999, there has been no event, development or
circumstance that has had or could reasonably be expected to have a Material
Adverse Effect.
(c) The Borrower does not have on the date of this Agreement
any contingent liabilities, liabilities for taxes, unusual forward or long-term
commitments or unrealized or anticipated losses from any unfavorable commitments
in each case that are material, except as referred to or reflected in the
balance sheet as at May 2, 1999 referred to above.
SECTION 3.05. Properties.
(a) Each of the Borrower and its Subsidiaries has good title
to, or valid leasehold interests in, all its real and personal property material
to its business, except for minor defects in title that do not materially
interfere with its ability to conduct its business as currently conducted or to
utilize such properties for their intended purposes.
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(b) Each of the Borrower and its Subsidiaries owns, or is
licensed to use, all trademarks, trade names, copyrights, patents and other
intellectual property material to its business, and the use thereof by the
Borrower and its Subsidiaries does not infringe upon the rights of any other
Person, except for any such infringements that, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.
SECTION 3.06. Litigation and Environmental Matters.
(a) There are no actions, suits or proceedings by or before
any arbitrator or Governmental Authority pending against or, to the knowledge of
the Borrower, threatened against or affecting the Borrower or any of its
Subsidiaries (i) as to which an adverse determination is reasonably likely and
that, if adversely determined, could reasonably be expected, individually or in
the aggregate, to result in a Material Adverse Effect or (ii) that involve this
Agreement, the other Loan Documents or the Transactions.
(b) Except with respect to any other matters that,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect, neither the Borrower nor any of its Subsidiaries (i)
has failed to comply with any Environmental Law or to obtain, maintain or comply
with any permit, license or other approval required under any Environmental Law,
(ii) has become subject to any Environmental Liability, (iii) has received
notice of any claim with respect to any Environmental Liability or (iv) knows of
any basis for any Environmental Liability.
(c) Since the Effective Date, there has been no change in the
status of the Disclosed Matters that, individually or in the aggregate, has
resulted in, or materially increased the likelihood of, a Material Adverse
Effect. As of the Effective Date, the Borrower does not believe that the
Disclosed Matters individually or in the aggregate are reasonably likely to have
a Material Adverse Effect.
SECTION 3.07. Compliance with Laws and Agreements. Each of the
Borrower and its Subsidiaries is in compliance with all laws, regulations and
orders of any Governmental Authority applicable to it or its property and all
indentures, agreements and other instruments binding upon it or its property,
except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect. No Default has
occurred and is continuing.
SECTION 3.08. Investment and Holding Company Status. Neither
the Borrower nor any of its Subsidiaries is (a) an "investment company" as
defined in, or subject to regulation under, the Investment Company Act of 1940
or (b) a "holding company" as defined in, or subject to regulation under, the
Public Utility Holding Company Act of 1935.
SECTION 3.09. Taxes. Each of the Borrower and its Subsidiaries
has timely filed or caused to be filed all Tax returns and reports required to
have been filed and has paid or caused to be paid all Taxes required to have
been paid by it, except (a) Taxes that are being contested in good faith by
appropriate proceedings and for which the Borrower or such Subsidiary, as
applicable, has set aside on its books adequate reserves or (b) to the extent
that the failure to do so could not reasonably be expected to result in a
Material Adverse Effect.
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SECTION 3.10. ERISA. No ERISA Event has occurred or is
reasonably expected to occur that, when taken together with all other such ERISA
Events for which liability is reasonably expected to occur, could reasonably be
expected to result in a Material Adverse Effect. The present value of all
accumulated benefit obligations under each Plan (based on the assumptions used
for purposes of Statement of Financial Accounting Standards No. 87) did not, as
of the date of the most recent financial statements reflecting such amounts,
exceed by more than $55,000,000 the fair market value of the assets of such
Plan, and the present value of all accumulated benefit obligations of all
underfunded Plans (based on the assumptions used for purposes of Statement of
Financial Accounting Standards No. 87) did not, as of the date of the most
recent financial statements reflecting such amounts, exceed by more than
$55,000,000 the fair market value of the assets of all such underfunded Plans.
SECTION 3.11. Disclosure. The Borrower and its Subsidiaries
have disclosed to the Lenders all agreements, instruments and corporate or other
restrictions to which they are subject, and all other matters known to them,
that, individually or in the aggregate, could reasonably be expected to result
in a Material Adverse Effect. None of the reports, financial statements,
certificates or other information furnished by or on behalf of the Obligors to
the Administrative Agent or any Lender in connection with the negotiation of
this Agreement or delivered hereunder (as modified or supplemented by other
information so furnished) contains any material misstatement of fact or omits to
state any material fact necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading; provided that,
with respect to projected financial information, the Obligors represent only
that such information was prepared in good faith based upon assumptions believed
to be reasonable at the time.
SECTION 3.12. Regulations U and X. Neither the Borrower nor
any of its Subsidiaries is engaged principally, or as one of its important
activities, in the business of extending credit for the purpose, whether
immediate, incidental or ultimate, of buying or carrying Margin Stock and no
part of the proceeds of any extension of credit hereunder will be used to buy or
carry any Margin Stock.
SECTION 3.13. Material Agreements and Liens.
(a) Part A of Schedule 3.13 hereto is a complete and correct
list, as of the Effective Date, of each credit agreement, loan agreement,
indenture, note purchase agreement, guarantee, letter of credit or other
arrangement providing for or otherwise relating to any Indebtedness or any
extension of credit (or commitment for any extension of credit) to, or guarantee
by, the Borrower or any of its Subsidiaries (other than the Existing Credit
Agreement and the Senior Note Documents) the aggregate principal or face amount
of which equals or exceeds (or may equal or exceed) $100,000 and the aggregate
principal or face amount outstanding or that may become outstanding under each
such arrangement is correctly described in Part A of said Schedule 3.13.
(b) Part B of Schedule 3.13 hereto is a complete and correct
list, as of the Effective Date, of each Lien securing Indebtedness of any Person
covering any property of the Borrower or any of its Subsidiaries, and the
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aggregate Indebtedness secured (or which may be secured) by each such Lien and
the property covered by each such Lien is correctly described in Part B of said
Schedule 3.13.
SECTION 3.14. Subsidiaries, Etc.
(a) Set forth in Part A of Schedule 3.14 hereto is a complete
and correct list, as of the Effective Date, of all of the Subsidiaries of the
Borrower, together with, for each Subsidiary, (i) the jurisdiction of
organization of such Subsidiary, (ii) each Person holding ownership interests in
such Subsidiary and (iii) the nature of the ownership interests held by each
such Person and the percentage of ownership of such Subsidiary represented by
such ownership interests. Except as disclosed in Part A of Schedule 3.14 hereto,
(x) each of the Borrower and its Subsidiaries owns, free and clear of Liens
(other than Liens created pursuant to the Security Documents), and has the
unencumbered right to vote, all outstanding ownership interests in each Person
shown to be held by it in Part A of Schedule 3.14 hereto, (y) all of the issued
and outstanding capital stock of each such Person organized as a corporation is
validly issued, fully paid and nonassessable and (z) there are no outstanding
Equity Rights with respect to such Person.
(b) Set forth in Part B of Schedule 3.14 hereto is a complete
and correct list, as of the Effective Date, of all Investments (other than
Investments disclosed in Part A of said Schedule 3.14 hereto) held by the
Borrower or any of its Subsidiaries in Person and, for each such Investment, (x)
the identity of the Person or Persons holding such Investment and (y) the nature
of such Investment. Except as disclosed in Part B of Schedule 3.14 hereto, each
of the Borrower and its Subsidiaries owns, free and clear of all Liens (other
than Liens created pursuant to the Security Documents), all such Investments.
SECTION 3.15. Solvency. On and as of the Effective Date,
immediately prior to and after consummation of the Transactions and after giving
effect to all Loans and other obligations and liabilities being incurred on such
date in connection therewith, and on the date of each subsequent Loan or other
extension of credit hereunder and after giving effect to application of the
proceeds thereof in accordance with the terms of the Loan Documents, the
Borrower and its Subsidiaries, taken as a whole, are, and each Obligor is, and
will be Solvent.
SECTION 3.16 Year 2000. Any reprogramming required to permit
the proper functioning, prior to, in and following the year 2000, of (i) the
Borrower's computer systems and (ii) equipment containing embedded microchips
(including systems and equipment supplied by others or with which the Borrower's
systems interface) and the testing of all such systems and equipment, as so
reprogrammed, will be completed by September 30, 1999, such that any effect of
the year 2000 will not be a Material Adverse Effect. The cost to the Borrower of
such reprogramming and testing and of the reasonably foreseeable consequences of
year 2000 to the Borrower (including, without limitation, reprogramming errors
and the failure of others' systems or equipment) will not result in a Default or
a Material Adverse Effect.
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ARTICLE IV
CONDITIONS
SECTION 4.01. Effective Date. This Agreement shall not become
effective until the date (the "Effective Date"), on which the Administrative
Agent shall notify the Borrower that each of the following conditions is
satisfied (or waived in accordance with Section 10.02) (provided that this
Agreement shall not become effective if the Effective Date does not occur before
September 30, 1999):
(a) The Administrative Agent (or Special Counsel) shall have
received from each Obligor, the Required Lenders under the Existing
Credit Agreement, each Multicurrency Lender and any Lender intended to
be party to this Agreement that is not a party to the Existing Credit
Agreement either (i) a counterpart of this Agreement signed on behalf
of such party or (ii) written evidence satisfactory to the
Administrative Agent (which may include telecopy transmission of a
signed signature page of this Agreement) that such party has signed a
counterpart of this Agreement.
(b) The Administrative Agent shall have received such
documents and certificates as the Administrative Agent or its counsel
may reasonably request relating to the organization, existence and good
standing of each Obligor, the authorization of the Transactions and any
other legal matters relating to each Obligor, this Agreement, the other
Loan Documents or the Transactions, all in form and substance
satisfactory to the Administrative Agent and its counsel.
(c) The Administrative Agent shall have received a
certificate, dated the Effective Date and signed by the President, a
Vice President or a Financial Officer of the Borrower, confirming
compliance with the conditions set forth in paragraphs (a) and (b) of
Section 4.02.
(d) The Administrative Agent shall have received a Borrowing
Base Certificate not more than 3 days prior to the Effective Date.
(e) The Administrative Agent shall have received a favorable
written opinion (addressed to the Administrative Agent and the Lenders
and dated the Effective Date) of XxXxxxx Xxxxx Battle & Xxxxxx LLP,
counsel for the Obligors, substantially in the form of Exhibit D, and
covering such other matters relating to the Obligors, this Agreement,
the other Loan Documents or the Transactions as the Required Lenders
shall reasonably request (and the Borrower hereby requests such counsel
to deliver such opinion).
(f) The Administrative Agent shall have received a favorable
written opinion (addressed to the Administrative Agent and the Lenders
and dated the Effective Date) of Special Counsel substantially in the
form of Exhibit E hereto (and the Administrative Agent hereby requests
such counsel to deliver such opinion).
(g) The Administrative Agent shall have received evidence
satisfactory to it of the execution by each First Tier Subsidiary
required to do so of an Intercompany Note.
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(h) The Administrative Agent (or Special Counsel) shall have
received evidence that duly completed and executed Uniform Commercial
Code Financing Statements covering the personal property subject to the
Liens created by the Security Agreement have been duly filed in all
jurisdictions in which such filing is necessary or appropriate and that
such filings are current and in full force and effect as of the
Effective Date.
(i) The Administrative Agent (or Special Counsel) shall have
received a copy of the results of such Uniform Commercial Code, tax and
judgment searches as may be requested by the Administrative Agent in
each relevant jurisdiction with respect to the Borrower and its
Subsidiaries and which searches reveal no Liens on any asset of the
Borrower or its Subsidiaries except for (i) Liens permitted under this
Agreement and (ii) Liens to be discharged on or prior to the Effective
Date pursuant to documentation satisfactory to the Administrative
Agent.
(j) The Administrative Agent (or Special Counsel) shall have
received a certificate of the Borrower, to the effect that, as of the
Effective Date (after giving effect to the Transactions), (a) the
aggregate value of all properties of the Borrower and its Subsidiaries
at their present fair saleable value (i.e., the amount which may be
realized within a reasonable time, considered to be six months to one
year, either through collection or sale at the regular market value,
regular market value to mean the amount which could be obtained for the
property in question within such period by a capable and diligent
business person from an interested buyer who is willing to purchase
under ordinary selling conditions), exceeds the aggregate amount of all
the debts and liabilities (including contingent, subordinated,
unmatured and unliquidated liabilities) of the Borrower and its
Subsidiaries, (b) the Borrower and its Subsidiaries will not, on a
consolidated basis, have an unreasonably small capital with which to
conduct their business operations as contemplated to be conducted and
(c) the Borrower and its Subsidiaries will have, on a consolidated
basis, sufficient cash flow to enable them to pay their debts as they
mature (satisfaction of items (a) through (c) of this paragraph (k) is
herein referred to as being "Solvent").
(k) The Administrative Agent shall have received evidence
satisfactory to it that the Joint and Several Guaranty included in the
Senior Note Documents shall have been amended in a manner satisfactory
to the Administrative Agent to provide that (i) the Lenders shall be
entitled to benefit from Section 2.9 of the Joint and Several Guaranty,
on a pro rata basis, to the same extent as the holders of the senior
secured notes under the Note Purchase Agreements included in the Senior
Note Documents and (ii) for purposes of Section 2.18 of the Joint and
Several Guaranty, the full amount of the Loans shall be deemed to have
been borrowed on the date of issuance of the senior secured notes and
to have remained continuously outstanding thereafter.
(l) The Administrative Agent, the Lenders and the Arranger
shall have received all fees and other amounts due and payable on or
prior to the Effective Date, including, to the extent invoiced,
reimbursement or payment of all out-of-pocket expenses required to be
reimbursed or paid by the Obligors hereunder.
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(m) The Administrative Agent shall have received such other
documents as the Administrative Agent or any Lender or Special Counsel
may reasonably request.
The Administrative Agent shall notify the Borrower and the Lenders of the
Effective Date, and such notice shall be conclusive and binding.
SECTION 4.02. Each Credit Event. The obligation of each Lender
to make a Loan on the occasion of any Borrowing, and of the Issuing Bank to
issue, amend, renew or extend any Letter of Credit, is subject to the
satisfaction of the following conditions:
(a) The representations and warranties of the Obligors set
forth in this Agreement and the other Loan Documents shall be true and
correct on and as of the date of such Borrowing or the date of
issuance, amendment, renewal or extension of such Letter of Credit, as
applicable.
(b) At the time of and immediately after giving effect to such
Borrowing or the issuance, amendment, renewal or extension of such
Letter of Credit, as applicable, no Default shall have occurred and be
continuing.
Each Borrowing and each issuance, amendment, renewal or extension of a Letter of
Credit shall be deemed to constitute a representation and warranty by the
Borrower on the date thereof as to the matters specified in paragraphs (a) and
(b) of this Section.
ARTICLE V
AFFIRMATIVE COVENANTS
Until the Commitments have expired or been terminated and the
principal of and interest on each Loan and all fees payable hereunder shall have
been paid in full and all Letters of Credit shall have expired or terminated and
all LC Disbursements shall have been reimbursed, the Borrower covenants and
agrees with the Lenders that:
SECTION 5.01. Financial Statements and Other Information. The
Borrower will furnish to the Administrative Agent and each Lender:
(a) within 90 days after the end of each fiscal year of the
Borrower, (i) its audited consolidated balance sheet and related
statements of operations, stockholders' equity and cash flows as of the
end of and for such year, setting forth in each case in comparative
form the figures for the previous fiscal year, all reported on by
Xxxxxx Xxxxxxxx LLP or other independent public accountants of
recognized national standing (without a "going concern" or like
modification, qualification or exception and without any modification,
qualification or exception as to the scope of such audit) to the effect
that such consolidated financial statements present fairly in all
material respects the financial condition and results of operations of
the Borrower and its consolidated Subsidiaries on a consolidated basis
in accordance with GAAP consistently applied and (ii) its consolidating
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balance sheet and related statements of operations, stockholders'
equity and cash flows as of the end of and for such year, setting forth
in each case in comparative form the figures for the previous fiscal
year, certified by one of its Financial Officers as presenting fairly
in all material respects the financial condition and results of
operations of the Borrower and its consolidated Subsidiaries on a
consolidating basis in accordance with GAAP consistently applied;
(b) within 45 days after the end of each of the first three
fiscal quarters of each fiscal year of the Borrower, (i) its
consolidated balance sheet and related statements of operations,
stockholders' equity and cash flows as of the end of and for such
fiscal quarter and the then elapsed portion of the fiscal year, setting
forth in each case in comparative form the figures for the
corresponding period or periods of (or, in the case of the balance
sheet, as of the end of) the previous fiscal year and (ii) its
consolidating balance sheet and related statements of operations,
stockholders' equity and cash flows as of the end of and for such
fiscal quarter and the then elapsed portion of the fiscal year, setting
forth in each case in comparative form the figures for the
corresponding period or periods of (or, in the case of the balance
sheet, as of the end of) the previous fiscal year, all certified by one
of its Financial Officers as presenting fairly in all material respects
the financial condition and results of operations of the Borrower and
its consolidated Subsidiaries on a consolidated basis or consolidating
basis, as the case may be, in accordance with GAAP consistently
applied, subject to normal year-end audit adjustments and the absence
of footnotes;
(c) concurrently with any delivery of financial statements
under clause (a) or (b) above, a certificate of a Financial Officer of
the Borrower (i) certifying as to whether a Default has occurred and,
if a Default has occurred, specifying the details thereof and any
action taken or proposed to be taken with respect thereto, (ii) setting
forth reasonably detailed calculations of the Interest Coverage Ratio
as at the last day of the fiscal quarter or fiscal year, as the case
may be, in respect of which such financial statements are delivered,
and demonstrating compliance with Section 6.12 and (iii) stating
whether any change in GAAP or in the application thereof has occurred
since the date of the audited financial statements referred to in
Section 3.04 and, if any such change has occurred, specifying the
effect of such change on the financial statements accompanying such
certificate;
(d) concurrently with any delivery of financial statements
under clause (a) above, a certificate of the accounting firm that
reported on such financial statements stating whether they obtained
knowledge during the course of their examination of such financial
statements of any Default (which certificate may be limited to the
extent required by accounting rules or guidelines);
(e) promptly after the same become publicly available, copies
of all periodic and other reports, proxy statements and other materials
filed by the Borrower or any Subsidiary with the Securities and
Exchange Commission, or any Governmental Authority succeeding to any or
all of the functions of said Commission, or with any national
securities exchange, or distributed by the Borrower to its shareholders
generally, as the case may be;
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(f) as soon as available and in any event within 5 Business
Days after the end of each monthly accounting period, (i) a Borrowing
Base Certificate certifying, in the case of the Borrower, as to the
Consolidated Borrowing Base, and, in the case of each First Tier
Subsidiary, as to its Borrowing Base, as at the last day of such
accounting period and (ii) a certificate of a Financial Officer in form
and detail satisfactory to the Administrative Agent setting forth a
determination of the aggregate Revolving Credit Exposure as at the last
day of such monthly accounting period (taking into account the Dollar
Equivalent of the aggregate amount of Revolving Credit Loans
denominated in any Approved Foreign Currency);
(g) as soon as available after the end of each fiscal year of
the Borrower, a report (prepared at the expense of the Borrower) of an
independent collateral auditor (which may be, or be affiliated with,
one of the Lenders) approved by the Administrative Agent with respect
to the Receivables and Inventory components included in the
Consolidated Borrowing Base which report shall indicate that, based
upon a review by such auditors of the Receivables (including, without
limitation, verification with respect to the amount, aging, identity
and credit of the respective account debtors and the billing practices
of the Borrower and its Subsidiaries) and Inventory (including, without
limitation, verification as to the value, location and respective
types), the information set forth in the Borrowing Base Certificate
then most recently received by the Administrative Agent hereunder is
accurate and complete in all material respects and whether or not a
Trigger Date (as such term is defined in Section 10.13 hereof) has
occurred; and
(h) promptly following any request therefor, such other
information regarding the operations, business affairs and financial
condition of the Borrower or any Subsidiary, or compliance with the
terms of this Agreement, as the Administrative Agent or any Lender may
reasonably request.
SECTION 5.02. Notices of Material Events. The Borrower will
furnish to the Administrative Agent and each Lender prompt written notice of the
following:
(a) the occurrence of any Default;
(b) the filing or commencement of any action, suit or
proceeding by or before any arbitrator or Governmental Authority
against or affecting the Borrower or any Affiliate thereof that, if
adversely determined, could reasonably be expected to result in a
Material Adverse Effect;
(c) the occurrence of any ERISA Event that, alone or together
with any other ERISA Events that have occurred, could reasonably be
expected to result in liability of the Borrower and its Subsidiaries in
an aggregate amount exceeding $250,000; and
(d) any other development that results in, or could reasonably
be expected to result in, a Material Adverse Effect.
Each notice delivered under this Section shall be accompanied by a statement of
a Financial Officer or other executive officer of the Borrower setting forth the
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details of the event or development requiring such notice and any action taken
or proposed to be taken with respect thereto.
SECTION 5.03. Existence; Conduct of Business. The Borrower
will, and will cause each of its Subsidiaries to, do or cause to be done all
things necessary to preserve, renew and keep in full force and effect its legal
existence and the rights, licenses, permits, privileges and franchises material
to the conduct of its business; provided that the foregoing shall not prohibit
any merger, consolidation, liquidation or dissolution permitted under Section
6.03.
SECTION 5.04. Payment of Obligations. The Borrower will, and
will cause each of its Subsidiaries to, pay its obligations, including Tax
liabilities, that, if not paid, could result in a Material Adverse Effect before
the same shall become delinquent or in default, except where (a) the validity or
amount thereof is being contested in good faith by appropriate proceedings, (b)
the Borrower or such Subsidiary has set aside on its books adequate reserves
with respect thereto in accordance with GAAP and (c) the failure to make payment
pending such contest could not reasonably be expected to result in a Material
Adverse Effect.
SECTION 5.05. Maintenance of Properties; Insurance. The
Borrower will, and will cause each of its Subsidiaries to, (a) keep and maintain
all property material to the conduct of its business in good working order and
condition, ordinary wear and tear excepted, and (b) maintain, with financially
sound and reputable insurance companies, insurance in such amounts and against
such risks as are customarily maintained by companies engaged in the same or
similar businesses operating in the same or similar locations.
SECTION 5.06. Books and Records; Inspection Rights. The
Borrower will, and will cause each of its Subsidiaries to, keep proper books of
record and account in which full, true and correct entries are made of all
dealings and transactions in relation to its business and activities. The
Borrower will, and will cause each of its Subsidiaries to, permit any
representatives designated by the Administrative Agent or any Lender, upon
reasonable prior notice, to visit and inspect its properties, to examine and
make extracts from its books and records, and to discuss its affairs, finances
and condition with its officers and independent accountants, all at such
reasonable times and as often as reasonably requested.
SECTION 5.07. Compliance with Laws. The Borrower will, and
will cause each of its Subsidiaries to, comply with all laws, rules, regulations
and orders of any Governmental Authority, including all Environmental Laws, and
with all other material obligations, applicable to it or its property, except
where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.
SECTION 5.08. Use of Proceeds and Letters of Credit.
(a) The proceeds of each Loan shall be lent by the Borrower to
First Tier Subsidiaries that are Subsidiary Guarantors, provided that the
aggregate principal amount of loans owing by each First Tier Subsidiary to the
Borrower shall not exceed the Borrowing Base of such First Tier Subsidiary. All
such loans made to each First Tier Subsidiary shall be evidenced by a single
demand promissory note executed and delivered by such First Tier Subsidiary to
the Borrower substantially in the form of Exhibit F hereto (each, an
"Intercompany Note"), and pledged by the Borrower to the Collateral Agent under
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the Security Agreement for the benefit of the Secured Parties referred to in the
Security Agreement. Each First Tier Subsidiary shall use the proceeds of such
loans for its own working capital and other general corporate purposes and
(subject to Section 6.13) to make advances to the Borrower and Subsidiaries. In
the event that the Borrower receives any payment of principal of any
Intercompany Note, it shall immediately lend the proceeds of such payment to
another First Tier Subsidiary (to be evidenced by an Intercompany Note of such
other First Tier Subsidiary that has been pledged by the Borrower to the
Collateral Agent under the Security Agreement for the benefit of the Secured
Parties referred to in the Security Agreement), or pay or prepay the Loans
and/or the Pari Passu Debt, such that at no time will the aggregate outstanding
principal amount of the Loans and the Pari Passu Debt exceed the aggregate
outstanding principal amount of the Intercompany Notes.
(b) Subject to the foregoing paragraph (a), the proceeds of
the Loans will be used only (i) to pay Indebtedness outstanding under the
Existing Credit Agreement and (ii) for working capital and other general
corporate purposes of the Borrower and its Subsidiaries. No part of the proceeds
of any Loan will be used, whether directly or indirectly, for any purpose that
entails a violation of any of the Regulations of the Board, including
Regulations U and X.
(c) Subject to the paragraph (a) above, Letters of Credit will
be issued only to support obligations of the Borrower and its Subsidiaries.
SECTION 5.09. Additional Subsidiary Guarantors. The Borrower
will take such action, and will cause each of its Subsidiaries to take such
action, from time to time as shall be necessary to ensure that each Subsidiary
the inventory or receivables of which are included in the calculation of the
Consolidated Borrowing Base is a Subsidiary Guarantor and, thereby, an "Obligor"
hereunder and under the Security Agreement pursuant to documentation
satisfactory to the Administrative Agent in form and substance. In addition, the
Borrower may cause any of its other Subsidiaries to become a Subsidiary
Guarantor and, thereby, an "Obligor" hereunder and under the Security Agreement
pursuant to documentation satisfactory to the Administrative Agent in form and
substance. Each such new Subsidiary Guarantor shall deliver such proof of
corporate action, incumbency of officers, opinions of counsel and other
documents as is consistent with those delivered by each other Obligor pursuant
to Section 4.01 or as any Lender or the Administrative Agent shall have
reasonably requested.
ARTICLE VI
NEGATIVE COVENANTS
Until the Commitments have expired or terminated and the
principal of and interest on each Loan and all fees payable hereunder have been
paid in full and all Letters of Credit have expired or terminated and all LC
Disbursements shall have been reimbursed, the Borrower covenants and agrees with
the Lenders that:
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SECTION 6.01. Indebtedness. The Borrower will not, and will
not permit any Subsidiary to, create, incur or assume any Indebtedness, except:
(a) Indebtedness created hereunder;
(b) Pari Passu Debt;
(c) any extensions, renewals or replacements of any
Indebtedness existing on the date hereof and set forth in Schedule
6.01, provided that the aggregate principal amount of such Indebtedness
is not thereby increased;
(d) Indebtedness of the Borrower to any Subsidiary and of any
Subsidiary to the Borrower or any other Subsidiary;
(e) other Indebtedness in an aggregate principal amount not
exceeding $20,000,000 created, incurred or assumed in any fiscal year
of the Borrower; and
(f) other Indebtedness provided that, on the date (the
"Incurrence Date") such Indebtedness is created, incurred or assumed
(as the case may be), the Borrower furnishes to the Administrative
Agent reasonable projections demonstrating in reasonable detail that
the Borrower will be in compliance with Section 6.12(e) on the last day
of each of the next succeeding four fiscal quarters of the Borrower
that end after the Incurrence Date after giving effect to such
creation, incurrence or assumption, together with a certificate of a
Financial Officer to the effect that such projections are based upon
reasonable assumptions and reflect the Borrower's best estimate as to
the matters covered thereby.
For purposes of the foregoing paragraphs (e) and (f), the Acquisition of any
Person shall be deemed to constitute the assumption of the Indebtedness of such
Person by a Subsidiary of the Borrower at the time of the consummation of such
Acquisition.
SECTION 6.02. Liens. The Borrower will not, and will not
permit any Subsidiary to, create, incur, assume or permit to exist any Lien on
any property or asset now owned or hereafter acquired by it, or assign or sell
any income or revenues (including accounts receivable) or rights in respect of
any thereof, except:
(a) Permitted Encumbrances;
(b) Liens created by the Senior Note Documents as in effect on
the date hereof and the Liens created (upon substantially the terms set
forth in the Term Sheet dated July 30, 1999) to secure the Series I & J
Note Purchase Agreement contemplated herein; provided that there shall
be no Lien securing any obligations under the Senior Note Documents at
any time after the Security Termination Date;
(c) any Lien on any property or asset of the Borrower or any
Subsidiary existing on the date hereof and set forth in Schedule 6.02
(other than Liens created by the Senior Note Documents); provided that
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(i) such Lien shall not apply to any other property or asset of the
Borrower or any Subsidiary and (ii) such Lien shall secure only those
obligations which it secures on the date hereof;
(d) any Lien existing on any property or asset prior to the
acquisition thereof by the Borrower or any Subsidiary or existing on
any property or asset of any Person that becomes a Subsidiary after the
date hereof prior to the time such Person becomes a Subsidiary;
provided that (i) such Lien is not created in contemplation of or in
connection with such acquisition or such Person becoming a Subsidiary,
as the case may be, (ii) such Lien shall not apply to any other
property or assets of the Borrower or any Subsidiary and (iii) such
Lien shall secure only those obligations which it secures on the date
of such acquisition or the date such Person becomes a Subsidiary, as
the case may be;
(e) Liens on fixed or capital assets acquired, constructed or
improved by the Borrower or any Subsidiary; provided that (i) such
security interests secure Indebtedness incurred to finance such
acquisition, construction or improvement, (ii) such security interests
and the Indebtedness secured thereby are incurred prior to or within 90
days after such acquisition or the completion of such construction or
improvement, (iii) the Indebtedness secured thereby does not exceed 80%
of the cost of acquiring, constructing or improving such fixed or
capital assets and (iv) such security interests shall not apply to any
other property or assets of the Borrower or any Subsidiary;
(f) the Lien created by the Security Agreement; provided that
there shall be no Lien securing any Pari Passu Debt at any time after
the Security Termination Date;
(g) any extensions, renewals or replacements of any of the
Liens permitted by the foregoing clauses (a) through (f) effected in
connection with any extension, renewal or replacement of the
Indebtedness secured thereby; provided that (i) the aggregate principal
amount of such Indebtedness is not thereby increased, (ii) such Lien
shall not be extended to cover any additional property and (iii) there
shall be no Lien securing any extension, renewal or replacement of the
Pari Passu Debt or any obligations under the Senior Note Documents at
any time after the Security Termination Date; and
(h) other Liens that (whether before or after the Security
Termination Date) do not cover any Collateral (as defined in the
Security Agreement).
Notwithstanding anything contained herein to the contrary, the aggregate amount
of obligations of the Borrower and its Subsidiaries secured by Liens permitted
by any of clauses (c), (d), (e), (g) (to the extent extending, renewing or
replacing any of the Liens permitted by any of clauses (c), (d) and (e)) and (h)
shall not exceed 15% of Consolidated Tangible Net Worth at any time on or after
the Security Termination Date.
SECTION 6.03. Fundamental Changes.
(a) The Borrower will not, and will not permit any Subsidiary
to, merge into or consolidate with any other Person, or permit any other Person
to merge into or consolidate with it, or sell, transfer, lease or otherwise
dispose of (in one transaction or in a series of transactions) all or
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substantially all of its assets, or all or substantially all of the stock of any
of its Subsidiaries (in each case, whether now owned or hereafter acquired), or
liquidate or dissolve, except that, if at the time thereof and immediately after
giving effect thereto no Default shall have occurred and be continuing (i) any
Subsidiary may merge into the Borrower in a transaction in which the Borrower is
the surviving corporation, (ii) any Subsidiary may merge into any Subsidiary in
a transaction in which the surviving entity is a Subsidiary, provided that if
any such transaction shall be between a Subsidiary Guarantor and a Subsidiary
not a Subsidiary Guarantor, and such Subsidiary Guarantor is not the continuing
or surviving corporation, then the continuing or surviving corporation shall
have assumed all of the obligations of such Subsidiary Guarantor hereunder and
under the other Loan Documents pursuant to documentation satisfactory to the
Administrative Agent in form and substance, (iii) any Subsidiary may sell,
transfer, lease or otherwise dispose of its assets to the Borrower or to another
Subsidiary, provided that if any such transaction shall be between a Subsidiary
Guarantor and a Subsidiary not a Subsidiary Guarantor, and if such Subsidiary
Guarantor is not the continuing or surviving corporation, then the continuing or
surviving corporation shall have assumed all of the obligations of such
Subsidiary Guarantor hereunder and under the other Loan Documents pursuant to
documentation satisfactory to the Administrative Agent in form and substance and
(iv) any Subsidiary may liquidate or dissolve if the Borrower determines in good
faith that such liquidation or dissolution is in the best interests of the
Borrower and is not materially disadvantageous to the Lenders; provided that any
such merger that would otherwise be permitted by this Section 6.03 involving a
Person that is not a wholly owned Subsidiary immediately prior to such merger
shall not be permitted unless also permitted by Section 6.04.
(b) The Borrower will not, and will not permit any of its
Subsidiaries to invest in any Joint Venture, consummate any Acquisition or
otherwise acquire any business, or the related assets, of any other Person
(whether by way of purchase of assets or stock, by merger or consolidation or
otherwise), unless immediately prior to such acquisition and after giving effect
thereto, no Default shall have occurred and be continuing, and:
(i) such acquisition is an Acquisition and such Acquisition
(if by purchase of assets, merger or consolidation) is effected in such
manner that the acquired business, and the related assets, are owned
either by the Borrower or a Subsidiary and, if effected by merger or
consolidation involving the Borrower, the Borrower is the continuing or
surviving entity and, if effected by merger or consolidation involving
a Subsidiary, the continuing or surviving entity is a Subsidiary; or
(ii) such acquisition is an Acquisition and such Acquisition
(if by purchase of stock) is effected in such manner so that the
acquired entity becomes a Subsidiary; or
(iii) such transaction is an Acquisition or a Joint Venture
and after giving effect to such Acquisition or Joint Venture the
Borrower is in compliance with Section 6.12 (the determination of such
compliance to be calculated on a pro forma basis, as at the end of and
for the period of four consecutive fiscal quarters most recently ended
prior to the date of such Acquisition or Joint Venture for which
financial statements of the Borrower and its Subsidiaries are
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available, under the assumption that such Acquisition or Joint Venture
shall have occurred, and any Indebtedness in connection therewith shall
have been incurred, at the beginning of the applicable period, and
under the assumption that interest for such period had been equal to
the actual weighted average interest rate in effect for the Loans
hereunder on the date of such Acquisition or Joint Venture) and, in the
event that the aggregate amount of expenditures in respect of such
Acquisition or Joint Venture and of all prior Acquisitions and Joint
Ventures made during a single fiscal year and not covered by a
certificate delivered under this subclause (iii) exceeds $50,000,000,
the Borrower shall have delivered to the Administrative Agent a
certificate of a Financial Officer showing calculations in reasonable
detail to demonstrate compliance with this subclause (iii).
(c) The Borrower will not, and will not permit any of its
Subsidiaries to, engage to any material extent in any business other than
businesses of the type conducted by the Borrower and its Subsidiaries on the
Effective Date and businesses reasonably related thereto.
SECTION 6.04. Investments, Loans, Advances, Guarantees and
Acquisitions. The Borrower will not, and will not permit any of its Subsidiaries
to, purchase, hold or acquire (including pursuant to any merger with any Person
that was not a wholly owned Subsidiary prior to such merger) any capital stock,
evidences of indebtedness or other securities (including any option, warrant or
other right to acquire any of the foregoing) of, make or permit to exist any
loans or advances to, Guarantee any obligations of, or make or permit to exist
any investment or any other interest in, any other Person, or purchase or
otherwise acquire (in one transaction or a series of transactions) any assets of
any other Person constituting a business unit, except:
(a) Permitted Investments;
(b) Investments by the Borrower existing on the date hereof in
the capital stock of its Subsidiaries and Investments by the Borrower
existing on the date hereof described in Part B of Schedule 3.14;
(c) Investments made by the Borrower in any Subsidiary and
made by any Subsidiary in the Borrower or any other Subsidiary;
(d) Guarantees constituting Indebtedness permitted by Section
6.01;
(e) Investments in an aggregate amount not exceeding
$10,000,000 at any one time outstanding in a cold storage warehouse and
distribution center in Sioux Falls, South Dakota constituting a joint
venture between Freezer Services Inc., the Borrower and Xxxx Xxxxxxx &
Co.;
(f) other Investments not exceeding $5,000,000 in the
aggregate amount outstanding at any time; and
(g) Investments constituting Acquisitions or Joint Ventures
permitted by Section 6.03(b) made by the Borrower or any of its
Subsidiaries in any Person (other than a Subsidiary) principally
engaged in a business in which the Borrower and its Subsidiaries are
permitted by Section 6.03(c) to be engaged.
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SECTION 6.05. Hedging Agreements. The Borrower will not, and
will not permit any of its Subsidiaries to, enter into any Hedging Agreement,
other than Hedging Agreements entered into in the ordinary course of business to
hedge or mitigate risks to which the Borrower or any Subsidiary is exposed in
the conduct of its business or the management of its liabilities.
SECTION 6.06. Restricted Payments. The Borrower will not, and
will not permit any of its Subsidiaries to, declare or make, or agree to pay or
make, directly or indirectly, any Restricted Payment, except that (a) the
Borrower may declare and pay dividends with respect to its capital stock payable
solely in additional shares of its common stock, (b) Subsidiaries may declare
and pay dividends ratably with respect to their capital stock and (c) the
Borrower may make Restricted Payments pursuant to and in accordance with stock
option plans or other benefit plans for management or employees of the Borrower
and its Subsidiaries.
SECTION 6.07. Transactions with Affiliates. The Borrower will
not, and will not permit any of its Subsidiaries to, sell, lease or otherwise
transfer any property or assets to, or purchase, lease or otherwise acquire any
property or assets from, or otherwise engage in any other transactions with, any
of its Affiliates, except (a) in the ordinary course of business at prices and
on terms and conditions not less favorable to the Borrower or such Subsidiary
than could be obtained on an arm's-length basis from unrelated third parties,
(b) transactions between or among the Borrower and its Subsidiaries not
involving any other Affiliate and (c) any Restricted Payment permitted by
Section 6.06.
SECTION 6.08. Restrictive Agreements. The Borrower will not,
and will not permit any of its Subsidiaries to, directly or indirectly, enter
into, incur or permit to exist any agreement or other arrangement that
prohibits, restricts or imposes any condition upon (a) the ability of the
Borrower or any Subsidiary to create, incur or permit to exist any Lien upon any
of its property or assets, or (b) the ability of any Subsidiary to pay dividends
or other distributions with respect to any shares of its capital stock or to
make or repay loans or advances to the Borrower or any other Subsidiary or to
Guarantee Indebtedness of the Borrower or any other Subsidiary; provided that
(i) the foregoing shall not apply to restrictions and conditions imposed by law
or by this Agreement or any of the other Loan Documents, (ii) the foregoing
shall not apply to restrictions and conditions existing on the date hereof
identified on Schedule 6.08 (but shall apply to any extension or renewal of, or
any amendment or modification expanding the scope of, any such restriction or
condition), (iii) the foregoing shall not apply to customary restrictions and
conditions contained in agreements relating to the sale of a Subsidiary pending
such sale, provided such restrictions and conditions apply only to the
Subsidiary that is to be sold and such sale is permitted hereunder, (iv) clause
(a) of the foregoing shall not apply to restrictions or conditions imposed by
any agreement relating to secured Indebtedness permitted by this Agreement or
any of the other Loan Documents if such restrictions or conditions apply only to
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the property or assets securing such Indebtedness, (v) clause (a) of the
foregoing shall not apply to customary provisions in leases restricting the
assignment thereof, (vi) clause (a) of the foregoing shall not apply to
restrictions or conditions imposed by any agreement under which the Indebtedness
governed by the Senior Note Documents is refinanced, provided that such
restrictions or conditions are not materially more restrictive than those
contained in the Senior Note Documents on the date hereof (and, if such
agreement does not provide that the Indebtedness created thereunder will be
secured by Liens on property or assets of the Borrower or any Subsidiary, such
agreement may contain restrictions or conditions limiting Liens on property or
assets of the Borrower or any Subsidiary which are not the subject of Liens
granted under the Security Agreement and such restrictions or conditions shall
not be deemed more onerous than those contained in the Senior Note Documents on
the date hereof) and (vii) clause (a) of the foregoing shall not apply to any
requirement that obligations of the Borrower or its Subsidiaries, as the case
may be, that are pari passu or subordinated in right of payment to the Senior
Subordinated Notes or the guaranties by Subsidiaries of the Borrower in respect
thereof, as the case may be, may not be secured unless the Senior Subordinated
Notes and/or such guaranties are at least equally and ratably secured.
SECTION 6.09. Senior Note Documents. Promptly following the
execution thereof, the Borrower will supply each Lender with a copy of any
modification, supplement or waiver to a Senior Note Document.
SECTION 6.10. Limitation on Sale and Leaseback Transactions.
The Borrower will not, and will not permit any of its Subsidiaries to, enter
into, renew or extend any transaction or series of related transactions pursuant
to which the Borrower or such Subsidiary sells or transfers any property in
connection with the leasing, or the release against installment payments, or as
part of an arrangement involving the leasing or resale against installment
payments, of such property to the seller or transferor.
SECTION 6.11. Fiscal Periods. If the Borrower changes the
manner of determining the last day of its fiscal year or the last days of the
first three fiscal quarters in each of its fiscal years, the parties hereto
shall negotiate in good faith to agree to modify any financial calculations and
determinations hereunder to reflect their original intent in light of such
changes, and if they fail so to agree all such financial calculations
determinations hereunder shall continue to be made as if such change had not
occurred.
SECTION 6.12. Financial Covenants.
(a) The Borrower will not permit the Consolidated Current
Ratio to be less than 1.05 to 1 at any time.
(b) The Borrower will not permit Consolidated Working Capital
to be less than $35,000,000 at any time.
(c) The Borrower will not permit the ratio of Consolidated
Total Funded Debt to Consolidated EBITDA (for the four prior fiscal
quarters) on any date to be more than 4.00 to 1; and the Borrower will
not permit the ratio of Senior Consolidated Funded Debt to Consolidated
EBITDA on any date to be more than 3.20 to 1.
(d) The Borrower will not permit Consolidated Tangible Net
Worth on any date (the "Determination Date") to be less than the sum of
(i) $450,000,000 plus (ii) 50% of the aggregate amount of Consolidated
Net Income for each quarter that ends after the Effective Date and on
or before the Determination Date in respect of which Consolidated Net
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Income is greater than zero plus (iii) 50% of the aggregate amount of
increases in Consolidated Tangible Net Worth after the Effective Date
and on or before the Determination Date resulting from the issuance by
it of capital stock as consideration in Acquisitions made by it and its
Subsidiaries.
(e) The Borrower will not permit the ratio of Consolidated
EBIT to Consolidated Interest Expense for any period of four
consecutive fiscal quarters of the Borrower to be less than 2.50 to 1.
SECTION 6.13. Senior Subordinated Notes. If any Default then
exists or would result therefrom, the Borrower shall not, and shall not permit
any of its Subsidiaries to, purchase, redeem, retire or otherwise acquire for
value, or set apart any money for a sinking, defeasance or other analogous fund
for the purchase, redemption, retirement or other acquisition of, or make any
voluntary payment or prepayment of the principal of or interest on, or any other
amount owing in respect of, the Senior Subordinated Notes, except (subject to
the terms of subordination thereof) for regularly scheduled payments of
principal and interest in respect thereof required pursuant to the terms)
hereof. The Borrower shall not, and shall not permit any of its Subsidiaries to,
consent to any modification, supplement or waiver of any of the provisions of
any agreement, instrument or other document evidencing or relating to the Senior
Subordinated Notes without the prior consent of the Administrative Agent (with
the approval of the Required Lenders) if such modification, supplement or waiver
would be adverse in any material respect to the interests of the Borrower, any
of its Subsidiaries or any of the Lenders.
SECTION 6.14. Year 2000 Compliance. The Borrower will assure
that (a) any reprogramming required to permit the property functioning, prior
to, in and following the year 2000, of (i) the Borrower's computer systems and
(ii) equipment containing embedded microchips (including systems and equipment
supplied by others or with which the Borrower's systems interface) and the
testing of all such systems and equipment, as so reprogrammed, will be completed
by September 30, 1999, such that any effect of the year 2000 will not be a
Material Adverse Effect.
ARTICLE VII
EVENTS OF DEFAULT
If any of the following events ("Events of Default") shall
occur:
(a) the Borrower shall fail to pay any principal of any Loan
or any reimbursement obligation in respect of any LC Disbursement when
and as the same shall become due and payable, whether at the due date
thereof or at a date fixed for prepayment thereof or otherwise;
(b) the Borrower shall fail to pay any interest on any Loan or
any fee or any other amount (other than an amount referred to in clause
(a) of this Article) payable under this Agreement or any other Loan
Document, when and as the same shall become due and payable, and such
failure shall continue unremedied for a period of three or more
Business Days;
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(c) any representation or warranty made or deemed made by or
on behalf of any Obligor in or in connection with this Agreement or any
other Loan Document or any amendment or modification hereof or thereof
or waiver hereunder or thereunder, or in any report, certificate,
financial statement or other document furnished pursuant to or in
connection with this Agreement or any other Loan Document or any
amendment or modification hereof or thereof or waiver hereunder or
thereunder, shall prove to have been incorrect in any material respect
when made or deemed made;
(d) the Borrower shall fail to observe or perform any
covenant, condition or agreement contained in Section 5.02, 5.03 (with
respect to the existence of the Borrower or any Subsidiary) or 5.08 or
in Article VI;
(e) any Obligor shall fail to observe or perform any covenant,
condition or agreement contained in this Agreement or any other Loan
Document (other than those specified in clause (a), (b) or (d) of this
Article), and such failure shall continue unremedied for a period of 30
days after notice thereof from the Administrative Agent to the Borrower
(which notice will be given at the request of any Lender);
(f) the Borrower or any Subsidiary shall fail to make any
payment (whether of principal or interest and regardless of amount) in
respect of any Material Indebtedness, when and as the same shall become
due and payable;
(g) any event or condition occurs that results in any Material
Indebtedness becoming due prior to its scheduled maturity or that
enables or permits (with or without the giving of notice, the lapse of
time or both) the holder or holders of any Material Indebtedness or any
trustee or agent on its or their behalf to cause any Material
Indebtedness to become due, or to require the prepayment, repurchase,
redemption or defeasance thereof, prior to its scheduled maturity;
provided that this clause (g) shall not apply to secured Indebtedness
that becomes due as a result of the voluntary sale or transfer of the
property or assets securing such Indebtedness;
(h) an involuntary proceeding shall be commenced or an
involuntary petition shall be filed seeking (i) liquidation,
reorganization or other relief in respect of the Borrower or any
Subsidiary or its debts, or of a substantial part of its assets, under
any Federal, state or foreign bankruptcy, insolvency, receivership or
similar law now or hereafter in effect or (ii) the appointment of a
receiver, trustee, custodian, sequestrator, conservator or similar
official for the Borrower or any Subsidiary or for a substantial part
of its assets, and, in any such case, such proceeding or petition shall
continue undismissed for 60 days or an order or decree approving or
ordering any of the foregoing shall be entered;
(i) the Borrower or any Subsidiary shall (i) voluntarily
commence any proceeding or file any petition seeking liquidation,
reorganization or other relief under any Federal, state or foreign
bankruptcy, insolvency, receivership or similar law now or hereafter in
effect, (ii) consent to the institution of, or fail to contest in a
timely and appropriate manner, any proceeding or petition described in
clause (h) of this Article, (iii) apply for or consent to the
appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for the Borrower or any Subsidiary or
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for a substantial part of its assets, (iv) file an answer admitting the
material allegations of a petition filed against it in any such
proceeding, (v) make a general assignment for the benefit of creditors
or (vi) take any action for the purpose of effecting any of the
foregoing;
(j) the Borrower or any Subsidiary shall become unable, admit
in writing or fail generally to pay its debts as they become due;
(k) one or more judgments for the payment of money in an
aggregate amount in excess of $5,000,000 shall be rendered against the
Borrower, any Subsidiary or any combination thereof and the same shall
remain undischarged for a period of 30 consecutive days during which
execution shall not be effectively stayed, or any action shall be
legally taken by a judgment creditor to attach or levy upon any assets
of the Borrower or any Subsidiary to enforce any such judgment;
(l) the Borrower or any Subsidiary receives any notice,
notification, demand, request for information, citation, summons or
order or there has been filed any complaint or any penalty has been
assessed or an investigation or review is pending or threatened by any
governmental or other entity, in each case with respect to any alleged
failure by the Borrower or any of its Subsidiaries to have any
environmental, health or safety permit, license or other authorization
required under any Environmental Law in connection with the conduct of
the business of the Borrower or any of its Subsidiaries or with respect
to any generation, treatment, storage, recycling, transportation,
discharge or disposal, or any release of any Hazardous Materials
generated by the Borrower or any of its Subsidiaries, in each case
which could reasonably be expected to result in a Material Adverse
Effect;
(m) an ERISA Event shall have occurred that, in the opinion of
the Required Lenders, when taken together with all other ERISA Events
that have occurred, could reasonably be expected to result in liability
of the Borrower and its Subsidiaries in an aggregate amount exceeding
(i) $2,000,000 in any year or (ii) $10,000,000 for all periods;
(n) any of the following shall occur: (i) subject to Section
10.13, the Lien created by any Security Document shall at any time
cease to constitute a valid and perfected Lien on the collateral
intended to be covered thereby before the Security Termination Date;
(ii) subject to Section 10.13, except for expiration in accordance with
its terms, any Security Document shall for whatever reason be
terminated, or shall cease to be in full force and effect before the
Security Termination Date; or (iii) subject to Section 10.13, the
actual or asserted invalidity of any Security Document or of any
guarantee under Article VIII hereof or the validity of any Security
Document or of any guarantee under Article VIII hereof or the validity
of any subordination provision contained in Article VIII hereof shall
be contested by any party before (in the case of any Security Document)
the Security Termination Date; or
(o) a Change in Control shall occur;
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then, and in every such event (other than an event with respect to the Borrower
described in clause (h) or (i) of this Article), and at any time thereafter
during the continuance of such event, the Administrative Agent may, and at the
request of the Required Lenders shall, by notice to the Borrower, take either or
both of the following actions, at the same or different times: (i) terminate the
Commitments, and thereupon the Commitments shall terminate immediately, and (ii)
declare the Loans then outstanding to be due and payable in whole (or in part,
in which case any principal not so declared to be due and payable may thereafter
be declared to be due and payable), and thereupon the principal of the Loans so
declared to be due and payable, together with accrued interest thereon and all
fees and other obligations of the Borrower accrued hereunder, shall become due
and payable immediately, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by the Borrower; and in case of any
event with respect to the Borrower described in clause (h) or (i) of this
Article, the Commitments shall automatically terminate and the principal of the
Loans then outstanding, together with accrued interest thereon and all fees and
other obligations of the Obligors accrued hereunder, shall automatically become
due and payable, without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by the Obligors.
ARTICLE VIII
GUARANTEE
SECTION 8.01 The Guarantee. The Subsidiary Guarantors hereby
jointly and severally guarantee to each Lender and the Administrative Agent and
their respective successors and assigns the prompt payment in full when due
(whether at stated maturity, by acceleration or otherwise) of the principal of
and interest on the Loans (and, in the case of Letters of Credit, LC
Disbursements) made by the Lenders to the Borrower and all other amounts from
time to time owing to the Lenders or the Administrative Agent by the Borrower
under this Agreement and by any Obligor under any of the other Loan Documents,
and all obligations of the Borrower to any Lender in respect of any Hedging
Agreement, in each case in the Currency thereof and otherwise strictly in
accordance with the terms thereof (such obligations being herein collectively
called the "Guaranteed Obligations"). The Subsidiary Guarantors hereby further
jointly and severally agree that if the Borrower shall fail to pay in full when
due (whether at stated maturity, by acceleration or otherwise) any of the
Guaranteed Obligations, the Subsidiary Guarantors will promptly pay the same,
without any demand or notice whatsoever, and that in the case of any extension
of time of payment or renewal of any of the Guaranteed Obligations, the same
will be promptly paid in full when due (whether at extended maturity, by
acceleration or otherwise) in accordance with the terms of such extension or
renewal.
SECTION 8.02 Obligations Unconditional. The obligations of the
Subsidiary Guarantors under Section 8.01 hereof are absolute and unconditional,
joint and several, irrespective of the value, genuineness, validity, regularity
or enforceability of the obligations of the Borrower under this Agreement or any
other agreement or instrument referred to herein or therein, or any
substitution, release or exchange of any other guarantee of or security for any
of the Guaranteed Obligations, and, to the fullest extent permitted by
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applicable law, irrespective of any other circumstance whatsoever that might
otherwise constitute a legal or equitable discharge or defense of a surety or
guarantor, it being the intent of this Section 8.02 that the obligations of the
Subsidiary Guarantors hereunder shall be absolute and unconditional, joint and
several, under any and all circumstances. Without limiting the generality of the
foregoing, it is agreed that the occurrence of any one or more of the following
shall not alter or impair the liability of the Subsidiary Guarantors hereunder
which shall remain absolute and unconditional as described above:
(i) at any time or from time to time, without notice to the
Subsidiary Guarantors, the time for any performance of or compliance
with any of the Guaranteed Obligations shall be extended, or such
performance or compliance shall be waived;
(ii) any of the acts mentioned in any of the provisions of
this Agreement or any other agreement or instrument referred to herein
or therein shall be done or omitted;
(iii) the maturity of any of the Guaranteed Obligations shall
be accelerated, or any of the Guaranteed Obligations shall be modified,
supplemented or amended in any respect, or any right under this
Agreement or any other agreement or instrument referred to herein or
therein shall be waived or any other guarantee of any of the Guaranteed
Obligations or any security therefor shall be released or exchanged in
whole or in part or otherwise dealt with; or
(iv) any lien or security interest granted to, or in favor of,
the Administrative Agent or any Lender or Lenders as security for any
of the Guaranteed Obligations shall fail to be perfected.
The Subsidiary Guarantors hereby expressly waive diligence, presentment, demand
of payment, protest and all notices whatsoever, and any requirement that the
Administrative Agent or any Lender exhaust any right, power or remedy or proceed
against the Borrower under this Agreement or any other agreement or instrument
referred to herein or therein, or against any other Person under any other
guarantee of, or security for, any of the Guaranteed Obligations.
SECTION 8.03 Reinstatement. The obligations of the Subsidiary
Guarantors under this Article VIII shall be automatically reinstated if and to
the extent that for any reason any payment by or on behalf of the Borrower in
respect of the Guaranteed Obligations is rescinded or must be otherwise restored
by any holder of any of the Guaranteed Obligations, whether as a result of any
proceedings in bankruptcy or reorganization or otherwise and the Subsidiary
Guarantors jointly and severally agree that they will indemnify the
Administrative Agent and each Lender on demand for all reasonable costs and
expenses (including, without limitation, fees of counsel) incurred by the
Administrative Agent or such Lender in connection with such rescission or
restoration, including any such costs and expenses incurred in defending against
any claim alleging that such payment constituted a preference, fraudulent
transfer or similar payment under any bankruptcy, insolvency or similar law.
SECTION 8.04 Subrogation. The Subsidiary Guarantors hereby
jointly and severally agree that until the payment and satisfaction in full of
all Guaranteed Obligations and the expiration and termination of the Commitments
and Letters of Credit under this Agreement they shall not exercise any right or
remedy arising by reason of any performance by them of their guarantee in
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Section 8.01 hereof, whether by subrogation or otherwise, against the Borrower
or any other guarantor of any of the Guaranteed Obligations or any security for
any of the Guaranteed Obligations.
SECTION 8.05 Remedies. The Subsidiary Guarantors jointly and
severally agree that, as between the Subsidiary Guarantors and the Lenders, the
obligations of the Borrower under this Agreement may be declared to be forthwith
due and payable as provided in Article VII hereof (and shall be deemed to have
become automatically due and payable in the circumstances provided in said
Article VII) for purposes of Section 8.01 notwithstanding any stay, injunction
or other prohibition preventing such declaration (or such obligations from
becoming automatically due and payable) as against the Borrower and that, in the
event of such declaration (or such obligations being deemed to have become
automatically due and payable), such obligations (whether or not due and payable
by the Borrower) shall forthwith become due and payable by the Subsidiary
Guarantors for purposes of said Section 8.01.
SECTION 8.06 Instrument for the Payment of Money. Each
Subsidiary Guarantor hereby acknowledges that the guarantee in this Article VIII
constitutes an instrument for the payment of money, and consents and agrees that
any Lender or the Administrative Agent, at its sole option, in the event of a
dispute by such Subsidiary Guarantor in the payment of any moneys due hereunder,
shall have the right to bring motion-action under New York CPLR Section 3213.
SECTION 8.07 Continuing Guarantee. The guarantee in this
Article VIII is a continuing guarantee, and shall apply to all Guaranteed
Obligations whenever arising.
SECTION 8.08 Rights of Contribution. The Subsidiary Guarantors
hereby agree, as between themselves, that if any Subsidiary Guarantor shall
become an Excess Funding Guarantor (as defined below) by reason of the payment
by such Subsidiary Guarantor of any Guaranteed Obligations, each other
Subsidiary Guarantor shall, on demand of such Excess Funding Guarantor (but
subject to the next sentence), pay to such Excess Funding Guarantor an amount
equal to such Subsidiary Guarantor's Pro Rata Share (as defined below and
determined, for this purpose, without reference to the Properties, debts and
liabilities of such Excess Funding Guarantor) of the Excess Payment (as defined
below) in respect of such Guaranteed Obligations. The payment obligation of a
Subsidiary Guarantor to any Excess Funding Guarantor under this Section 8.08
shall be subordinate and subject in right of payment to the prior payment in
full of the obligations of such Subsidiary Guarantor under the other provisions
of this Article VIII and such Excess Funding Guarantor shall not exercise any
right or remedy with respect to such excess until payment and satisfaction in
full of all of such obligations.
For purposes of this Section 8.08, (i) "Excess Funding
Guarantor" means, in respect of any Guaranteed Obligations, a Subsidiary
Guarantor that has paid an amount in excess of its Pro Rata Share of such
Guaranteed Obligations, (ii) "Excess Payment" means, in respect of any
Guaranteed Obligations, the amount paid by an Excess Funding Guarantor in excess
of its Pro Rata Share of such Guaranteed Obligations and (iii) "Pro Rata Share"
means, for any Subsidiary Guarantor, the ratio (expressed as a percentage) of
(x) the amount by which the aggregate present fair saleable value of all
properties of such Subsidiary Guarantor (excluding any shares of stock of any
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other Subsidiary Guarantor) exceeds the amount of all the debts and liabilities
of such Subsidiary Guarantor (including contingent, subordinated, unmatured and
unliquidated liabilities, but excluding the obligations of such Subsidiary
Guarantor hereunder and any obligations of any other Subsidiary Guarantor that
have been Guaranteed by such Subsidiary Guarantor) to (y) the amount by which
the aggregate fair saleable value of all properties of all of the Subsidiary
Guarantors exceeds the amount of all the debts and liabilities (including
contingent, subordinated, unmatured and unliquidated liabilities, but excluding
the obligations of the Borrower and the Subsidiary Guarantors hereunder and
under the other Loan Documents) of all of the Subsidiary Guarantors, determined
(A) with respect to any Subsidiary Guarantor that is a party hereto on the
Effective Date, as of the Effective Date, and (B) with respect to any other
Subsidiary Guarantor, as of the date such Subsidiary Guarantor becomes a
Subsidiary Guarantor hereunder.
SECTION 8.09 General Limitation on Guarantee Obligations. In
any action or proceeding involving any state corporate law, or any state or
Federal bankruptcy, insolvency, reorganization or other law affecting the rights
of creditors generally, if the obligations of any Subsidiary Guarantor under
Section 8.01 would otherwise, taking into account the provisions of Section
8.08, be held or determined to be void, invalid or unenforceable, or
subordinated to the claims of any other creditors, on account of the amount of
its liability under said Section 8.01, then, notwithstanding any other provision
hereof to the contrary, the amount of such liability shall, without any further
action by such Subsidiary Guarantor, any Lender, the Administrative Agent or any
other Person, be automatically limited and reduced to the highest amount that is
valid and enforceable and not subordinated to the claims of other creditors as
determined in such action or proceeding.
ARTICLE IX
THE ADMINISTRATIVE AGENT
Each of the Lenders and the Issuing Banks hereby irrevocably
appoints the Administrative Agent as its agent and authorizes the Administrative
Agent to take such actions on its behalf and to exercise such powers as are
delegated to the Administrative Agent by the terms hereof, together with such
actions and powers as are reasonably incidental thereto.
The bank serving as the Administrative Agent hereunder shall
have the same rights and powers in its capacity as a Lender as any other Lender
and may exercise the same as though it were not the Administrative Agent, and
such bank and its Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with the Borrower or any Subsidiary or
other Affiliate thereof as if it were not the Administrative Agent hereunder.
The Administrative Agent shall not have any duties or
obligations except those expressly set forth herein. Without limiting the
generality of the foregoing (a) the Administrative Agent shall not be subject to
any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any duty
to take any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated hereby that the
Administrative Agent is required to exercise in writing by the Required Lenders
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(or such other number or percentage of the Lenders as shall be necessary under
the circumstances as provided in Section 10.02), and (c) except as expressly set
forth herein, the Administrative Agent shall not have any duty to disclose, and
shall not be liable for the failure to disclose, any information relating to the
Borrower or any of its Subsidiaries that is communicated to or obtained by the
bank serving as Administrative Agent or any of its Affiliates in any capacity.
The Administrative Agent shall not be liable for any action taken or not taken
by it with the consent or at the request of the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary under the
circumstances as provided in Section 10.02) or in the absence of its own gross
negligence or wilful misconduct. The Administrative Agent shall be deemed not to
have knowledge of any Default unless and until written notice thereof is given
to the Administrative Agent by the Borrower or a Lender, and the Administrative
Agent shall not be responsible for or have any duty to ascertain or inquire into
(i) any statement, warranty or representation made in or in connection with this
Agreement, (ii) the contents of any certificate, report or other document
delivered hereunder or in connection herewith, (iii) the performance or
observance of any of the covenants, agreements or other terms or conditions set
forth herein, (iv) the validity, enforceability, effectiveness or genuineness of
this Agreement or any other agreement, instrument or document, or (v) the
satisfaction of any condition set forth in Article IV or elsewhere herein, other
than to confirm receipt of items expressly required to be delivered to the
Administrative Agent.
The Administrative Agent shall take such action (subject to
Section 10.02(b) hereof and subject to the right of the Administrative Agent to
receive further assurances to its satisfaction from the Lenders of their
indemnification obligations under Section 10.03(c) hereof against any and all
liability and expense that may be incurred by it by reason of taking or
continuing to take such action) with respect to the notice of a Default referred
to in the preceding paragraph as shall be directed by the Required Lenders,
provided that, unless and until the Administrative Agent shall have received
such directions, the Administrative Agent may (but shall not be obligated to)
take such action, or refrain from taking such action, with respect to such
notice of Default as it shall deem advisable in the best interest of the Lenders
except to the extent that this Agreement expressly requires that such action be
taken, or not be taken, only with the consent or upon the authorization of the
Required Lenders or all of the Lenders.
The Administrative Agent shall be entitled to rely upon, and
shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing believed
by it to be genuine and to have been signed or sent by the proper Person. The
Administrative Agent also may rely upon any statement made to it orally or by
telephone and believed by it to be made by the proper Person, and shall not
incur any liability for relying thereon. The Administrative Agent may consult
with legal counsel (who may be counsel for the Borrower), independent
accountants and other experts selected by it, and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such
counsel, accountants or experts.
The Administrative Agent may perform any and all its duties
and exercise its rights and powers by or through any one or more sub-agents
appointed by the Administrative Agent. The Administrative Agent and any such
sub-agent may perform any and all its duties and exercise its rights and powers
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through their respective Related Parties. The exculpatory provisions of the
preceding paragraphs shall apply to any such sub-agent and to the Related
Parties of the Administrative Agent and any such sub-agent, and shall apply to
their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent.
Subject to the appointment and acceptance of a successor
Administrative Agent as provided in this paragraph, the Administrative Agent may
resign at any time by notifying the Lenders, the Issuing Bank and the Borrower.
Upon any such resignation, the Required Lenders shall have the right, in
consultation with the Borrower, to appoint a successor. If no successor shall
have been so appointed by the Required Lenders and shall have accepted such
appointment within 30 days after the retiring Administrative Agent gives notice
of its resignation, then the retiring Administrative Agent may, on behalf of the
Lenders and the Issuing Bank, appoint a successor Administrative Agent which
shall be a bank with an office in New York, New York, or an Affiliate of any
such bank. Upon the acceptance of its appointment as Administrative Agent
hereunder by a successor, such successor shall succeed to and become vested with
all the rights, powers, privileges and duties of the retiring Administrative
Agent and the retiring Administrative Agent shall be discharged from its duties
and obligations hereunder. The fees payable by the Borrower to a successor
Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Borrower and such successor. After the
Administrative Agent's resignation hereunder, the provisions of this Article and
Section 10.03 shall continue in effect for the benefit of such retiring
Administrative Agent, its sub-agents and their respective Related Parties in
respect of any actions taken or omitted to be taken by any of them while it was
acting as Administrative Agent.
Each Lender acknowledges that it has, independently and
without reliance upon the Administrative Agent or any other Lender and based on
such documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement,
any related agreement or any document furnished hereunder or thereunder.
The Arranger identified on the cover page of this Agreement
shall have no duties or responsibilities hereunder. The Co-Agent identified on
the cover page of this Agreement shall have no duties or responsibilities
hereunder other than as a Lender and as an Issuing Bank hereunder.
ARTICLE X
MISCELLANEOUS
SECTION 10.01. Notices. Except in the case of notices and
other communications expressly permitted to be given by telephone, all notices
and other communications provided for herein shall be in writing and shall be
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delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:
(a) if to the Borrower, to it at Smithfield Foods, Inc. at
000 Xxxxxxxx Xxxxxx, Xxxxxxxxxx, XX 00000, Attention: Mr. C. Xxxxx
Xxxx (Telecopy No. 757-365-3023) and Xxxxxxx X. Xxxx (Telecopy No.
757-365-3023);
(b) if to any Subsidiary Guarantor, at the address for notices
to the Borrower as provided herein;
(c) if to the Administrative Agent or the Collateral Agent, to
The Chase Manhattan Bank, Agent Bank Services Group, 0 Xxxxx Xxxxxxxxx
Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention of Xxxxxx Xxxx (Telecopy No.
212-552-7391), and, if such notice or other communication relates to
borrowings of, or payments or prepayments of, or the duration of
Interest Periods for, Loans denominated in a Foreign Currency, also to
The Chase Manhattan Bank, 4 Xxxxxx Xxxx Street, London, E1 94T,
England, Attention: Agency Loans Department (Telecopy No.
00-000-000-0000; Telephone No. 00-000-000-0000), in each case with a
copy to The Chase Manhattan Bank, 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx
00000, Attention of Xxxxxx Xxxx (Telecopy No. 212-552-7391);
(d) if to Chase in its capacity as Issuing Bank, to it at 0
Xxxxx Xxxxxxxxx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention of Xxxx X.
Xxxxxxxx, Supervisor L/C (Telecopy No. 212-638-8200);
(e) if to the Swingline Lender, to The Chase Manhattan Bank,
Agent Bank Services Group, 0 Xxxxx Xxxxxxxxx Xxxxx, Xxx Xxxx, Xxx Xxxx
00000, Attention of Xxxxxx Xxxx (Telecopy No. 212-552-7391); and
(f) if to any other Lender, to it at its address (or telecopy
number) set forth in its Administrative Questionnaire.
Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and
other communications given to any party hereto in accordance with the provisions
of this Agreement shall be deemed to have been given on the date of receipt.
SECTION 10.02. Waivers; Amendments.
(a) No failure or delay by the Administrative Agent, any
Issuing Bank or any Lender in exercising any right or power hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce
such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and remedies of the
Administrative Agent, the Issuing Banks and the Lenders hereunder are cumulative
and are not exclusive of any rights or remedies that they would otherwise have.
No waiver of any provision of this Agreement or consent to any departure by any
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Obligor therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which
given. Without limiting the generality of the foregoing, the making of a Loan or
issuance of a Letter of Credit shall not be construed as a waiver of any
Default, regardless of whether the Administrative Agent, any Lender or any
Issuing Bank may have had notice or knowledge of such Default at the time.
(b) Neither this Agreement nor any provision hereof, nor the
Intercreditor Agreement nor any provision thereof, may be waived, amended or
modified except pursuant to an agreement or agreements in writing entered into
by the Obligors and the Required Lenders or by the Obligors and the
Administrative Agent with the consent of the Required Lenders; provided that no
such agreement shall (i) increase the Commitment (or either Sub-Commitment) of
any Lender without the written consent of such Lender, (ii) reduce the principal
amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or
reduce any fees payable hereunder, without the written consent of each Lender
affected thereby, (iii) postpone the scheduled date of payment of the principal
amount of any Loan or LC Disbursement, or any interest thereon, or any fees
payable hereunder, or reduce the amount of, waive or excuse any such payment, or
postpone the scheduled date of expiration of any Commitment, without the written
consent of each Lender affected thereby, (iv) change Section 2.17 in a manner
that would alter the pro rata treatment of Lenders required thereby, without the
written consent of each Lender, (v) change the definition of "Approved Foreign
Currency", "Dollar Equivalent", "Foreign Currency" or "Foreign Currency
Equivalent", or any provision affecting the calculation of an amount payable in
an Approved Foreign Currency, without the written consent of each Multicurrency
Lender, (vi) change any of the provisions of this Section or the definition of
"Required Lenders" or any other provision hereof specifying the number or
percentage of Lenders required to waive, amend or modify any rights hereunder or
make any determination or grant any consent hereunder, without the written
consent of each Lender, (vii) change the reference to 75% in the definition of
"Borrowing Base" to a higher percentage without the written consent of each
Lender; or (viii) release all or substantially all of the Subsidiary Guarantors
from their obligations in respect of their Guarantee hereunder without the
written consent of each Lender; provided further that no such agreement shall
amend, modify or otherwise affect the rights or duties of the Administrative
Agent, any Issuing Bank or the Swingline Lender hereunder without the prior
written consent of the Administrative Agent, such Issuing Bank or the Swingline
Lender, as the case may be.
(c) Neither any Security Document nor any provision thereof
may be waived, amended or modified, nor may any collateral thereunder be
released, except pursuant to an agreement or agreements in writing entered into
by the Obligors party thereto, and by the Administrative Agent with the consent
of the Lenders. Notwithstanding the foregoing, the Administrative Agent shall,
at the request of the Borrower, (i) agree to release from the Lien of the
Security Agreement any property that is the subject of a permitted sale
hereunder to a Person other than the Borrower or a Subsidiary and (ii) agree to
terminate the Security Agreement if (w) at the time of such release, the
aggregate amount of obligations of the Borrower and its Subsidiaries secured by
Liens permitted by any of clauses (c), (d), (e), (g) (to the extent extending,
renewing or replacing any of the Liens permitted by any of clauses (c), (d) and
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(e)) and (h) does not exceed 15% of Consolidated Tangible Net Worth, (x) the
long term senior, unsecured debt of the Borrower is rated at least Baa3 by
Xxxxx'x and is rated at least BBB- by S&P, (y) no Default has occurred and is
continuing and (z) all collateral security provided with respect to the Senior
Note Documents and the Pari Passu Debt shall have been released.
SECTION 10.03. Expenses; Indemnity: Damage Waiver.
(a) The Borrower shall pay (i) all reasonable out-of-pocket
expenses incurred by the Administrative Agent and its Affiliates, including the
reasonable fees, charges and disbursements of counsel for the Administrative
Agent, in connection with the administration of this Agreement and the other
Loan Documents or any amendments, modifications or waivers of the provisions
hereof or thereof (whether or not the transactions contemplated hereby or
thereby shall be consummated), (ii) all reasonable out-of-pocket expenses
incurred by the Issuing Bank in connection with the issuance, amendment, renewal
or extension of any Letter of Credit or any demand for payment thereunder and
(iii) all out-of-pocket expenses incurred by the Administrative Agent, the
Issuing Bank or any Lender, including the fees, charges and disbursements of any
counsel for the Administrative Agent, any Issuing Bank or any Lender, in
connection with the enforcement or protection of its rights in connection with
this Agreement and the other Loan Documents, including its rights under this
Section, or in connection with the Loans made or Letters of Credit issued
hereunder, including all such out-of-pocket expenses incurred during any
workout, restructuring or negotiations in respect of such Loans or Letters of
Credit.
(b) The Borrower shall indemnify the Administrative Agent, any
Issuing Bank and each Lender, and each Related Party of any of the foregoing
Persons (each such Person being called an "Indemnitee") against, and hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and
related expenses, including the fees, charges and disbursements of any counsel
for any Indemnitee, incurred by or asserted against any Indemnitee arising out
of, in connection with, or as a result of (i) the execution or delivery of this
Agreement or the other Loan Documents or any agreement or instrument
contemplated hereby or thereby, the performance by the parties hereto of their
respective obligations hereunder or thereunder or the consummation of the
Transactions or any other transactions contemplated hereby, (ii) any Loan or
Letter of Credit or the use of the proceeds therefrom (including any refusal by
the an Issuing Bank to honor a demand for payment under a Letter of Credit if
the documents presented in connection with such demand do not strictly comply
with the terms of such Letter of Credit), (iii) any actual or alleged presence
or release of Hazardous Materials on or from any property owned or operated by
the Borrower or any of its Subsidiaries, or any Environmental Liability related
in any way to the Borrower or any of its Subsidiaries, or (iv) any actual or
prospective claim, litigation, investigation or proceeding relating to any of
the foregoing, whether based on contract, tort or any other theory and
regardless of whether any Indemnitee is a party thereto; provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses resulted from the gross
negligence or wilful misconduct of such Indemnitee.
(c) To the extent that the Borrower fails to pay any amount
required to be paid by it to the Administrative Agent, an Issuing Bank or the
Swingline Lender under paragraph (a) or (b) of this Section, each Lender
severally agrees to pay to the Administrative Agent, such Issuing Bank or the
Swingline Lender, as the case may be, such Lender's Applicable Percentage
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(determined as of the time that the applicable unreimbursed expense or indemnity
payment is sought) of such unpaid amount; provided that the unreimbursed expense
or indemnified loss, claim, damage, liability or related expense, as the case
may be, was incurred by or asserted against the Administrative Agent, such
Issuing Bank or the Swingline Lender in its capacity as such.
(d) To the extent permitted by applicable law, the Borrower
shall not assert, and hereby waives, any claim against any Indemnitee, on any
theory of liability, for special, indirect, consequential or punitive damages
(as opposed to direct or actual damages) arising out of, in connection with, or
as a result of, this Agreement or any agreement or instrument contemplated
hereby, the Transactions, any Loan or Letter of Credit or the use of the
proceeds thereof.
(e) All amounts due under this Section shall be payable
promptly after written demand therefor.
SECTION 10.04. Successors and Assigns.
(a) The provisions of this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby (including any Affiliate of the Issuing Bank that
issues any Letter of Credit), except that an Obligor may not assign or otherwise
transfer any of its rights or obligations hereunder without the prior written
consent of each Lender (and any attempted assignment or transfer by such Obligor
without such consent shall be null and void). Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby
(including any Affiliate of an Issuing Bank that issues any Letter of Credit)
and, to the extent expressly contemplated hereby, the Related Parties of each of
the Administrative Agent, the relevant Issuing Bank and the Lenders) any legal
or equitable right, remedy or claim under or by reason of this Agreement.
(b) Any Lender may assign to one or more assignees all or a
portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans at the time owing to it); provided that
(i) except in the case of an assignment to a Lender or an Affiliate of a Lender,
each of the Borrower and the Administrative Agent (and, in the case of an
assignment of all or a portion of a Commitment or any Lender's obligations in
respect of its LC Exposure or Swingline Exposure, the Issuing Bank and the
Swingline Lender) must give their prior written consent to such assignment
(which consent shall not be unreasonably withheld or delayed), (ii) except in
the case of an assignment to a Lender or an Affiliate of a Lender or an
assignment of the entire remaining amount of the assigning Lender's Commitment,
the amount of the Commitment of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Acceptance with respect
to such assignment is delivered to the Administrative Agent) shall not be less
than $10,000,000 unless each of the Borrower and the Administrative Agent
otherwise consent, (iii) each partial assignment shall be made as an assignment
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of a proportionate part of all the assigning Lender's rights and obligations
under this Agreement, (iv) the parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Acceptance, together with
a processing and recordation fee of $3,500, and (v) the assignee, if it shall
not be a Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire; provided further that any consent of the Borrower otherwise
required under this paragraph shall not be required if an Event of Default under
clause (h) or (i) of Article VII has occurred and is continuing. Subject to
acceptance and recording thereof pursuant to paragraph (d) of this Section, from
and after the effective date specified in each Assignment and Acceptance the
assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Acceptance, have the rights and obligations of a
Lender under this Agreement, and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Acceptance, be released
from its obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all of the assigning Lender's rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections 2.14, 2.15, 2.16 and 10.03). Any
assignment or transfer by a Lender of rights or obligations under this Agreement
that does not comply with this paragraph shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (e) of this Section.
(c) The Administrative Agent, acting for this purpose as an
agent of the Borrower, shall maintain at one of its offices in The City of New
York a copy of each Assignment and Acceptance delivered to it and a register for
the recordation of the names and addresses of the Lenders, and the Commitment
of, and principal amount of the Loans and LC Disbursements owing to, each Lender
pursuant to the terms hereof from time to time (the "Register"). The entries in
the Register shall be conclusive, and the Borrower, the Administrative Agent,
the Issuing Bank and the Lenders may treat each Person whose name is recorded in
the Register pursuant to the terms hereof as a Lender hereunder for all purposes
of this Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by the Borrower, the Issuing Bank and any Lender, at
any reasonable time and from time to time upon reasonable prior notice.
(d) Upon its receipt of a duly completed Assignment and
Acceptance executed by an assigning Lender and an assignee, the assignee's
completed Administrative Questionnaire (unless the assignee shall already be a
Lender hereunder), the processing and recordation fee referred to in paragraph
(b) of this Section and any written consent to such assignment required by
paragraph (b) of this Section, the Administrative Agent shall accept such
Assignment and Acceptance and record the information contained therein in the
Register. No assignment shall be effective for purposes of this Agreement unless
it has been recorded in the Register as provided in this paragraph.
(e) Any Lender may, without the consent of the Borrower, the
Administrative Agent, the Issuing Banks or the Swingline Lender, sell
participations to one or more banks or other entities (a "Participant") in all
or a portion of such Lender's rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans owing to it);
provided that (i) such Lender's obligations under this Agreement shall remain
unchanged, (ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations and (iii) the Borrower, the
Administrative Agent, the Issuing Banks and the other Lenders shall continue to
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deal solely and directly with such Lender in connection with such Lender's
rights and obligations under this Agreement. Any agreement or instrument
pursuant to which a Lender sells such a participation shall provide that such
Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided
that such agreement or instrument may provide that such Lender will not, without
the consent of the Participant, agree to any amendment, modification or waiver
described in the first proviso to Section 10.02(b) that affects such
Participant. Subject to paragraph (f) of this Section, the Borrower agrees that
each Participant shall be entitled to the benefits of Sections 2.14, 2.15 and
2.16 to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section. To the extent permitted by
law, each Participant also shall be entitled to the benefits of Section 10.08 as
though it were a Lender, provided such Participant agrees to be subject to
Section 2.17(f) as though it were a Lender.
(f) A Participant shall not be entitled to receive any greater
payment under Section 2.14 or 2.16 than the applicable Lender would have been
entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the
Borrower's prior written consent. A Participant that would be a Foreign Lender
if it were a Lender shall not be entitled to the benefits of Section 2.16 unless
the Borrower is notified of the participation sold to such Participant and such
Participant agrees, for the benefit of the Borrower, to comply with Section
2.16(e) as though it were a Lender.
(g) Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement to secure
obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank, and this Section shall not apply to any
such pledge or assignment of a security interest; provided that no such pledge
or assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such Lender
as a party hereto.
SECTION 10.05. Survival. All covenants, agreements,
representations and warranties made by the Obligors herein and in the
certificates or other instruments delivered in connection with or pursuant to
this Agreement and the other Loan Documents shall be considered to have been
relied upon by the other parties hereto and shall survive the execution and
delivery of this Agreement and the making of any Loans and issuance of any
Letters of Credit, regardless of any investigation made by any such other party
or on its behalf and notwithstanding that the Administrative Agent, any Issuing
Bank or any Lender may have had notice or knowledge of any Default or incorrect
representation or warranty at the time any credit is extended hereunder, and
shall continue in full force and effect as long as the principal of or any
accrued interest on any Loan or any fee or any other amount payable under this
Agreement is outstanding and unpaid or any Letter of Credit is outstanding and
so long as the Commitments have not expired or terminated. The provisions of
Sections 2.14, 2.15, 2.16 and 10.03 and Article IX shall survive and remain in
full force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Loans, the expiration or termination
of the Letters of Credit and the Commitments or the termination of this
Agreement or any provision hereof.
SECTION 10.06. Counterparts; Integration; Effectiveness. This
Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract. This Agreement and
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any separate letter agreements with respect to fees payable to the
Administrative Agent constitute the entire contract among the parties relating
to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Subject
to Section 4.01, this Agreement shall become effective when it shall have been
executed by the Administrative Agent and when the Administrative Agent shall
have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns. Delivery of an executed counterpart of a signature page
of this Agreement by telecopy shall be effective as delivery of a manually
executed counterpart of this Agreement.
SECTION 10.07. Severability. Any provision of this Agreement
held to be invalid, illegal or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such invalidity, illegality
or unenforceability without affecting the validity, legality and enforceability
of the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.
SECTION 10.08. Right of Setoff. If an Event of Default shall
have occurred and be continuing, each Lender and each of its Affiliates is
hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final) at any time held and other obligations at
any time owing by such Lender or Affiliate to or for the credit or the account
of any Obligor against any of and all the obligations of such Obligor now or
hereafter existing under this Agreement held by such Lender, irrespective of
whether or not such Lender shall have made any demand under this Agreement and
although such obligations may be unmatured. The rights of each Lender under this
Section are in addition to other rights and remedies (including other rights of
setoff) which such Lender may have.
SECTION 10.09. Governing Law; Jurisdiction; Consent to
Service of Process.
(a) THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAW OF THE STATE OF NEW YORK.
(b) EACH OBLIGOR HEREBY IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE
SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE
UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY
APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT,
AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES
THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN SUCH NEW YORK STATE OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH
FEDERAL COURT. Each of the parties hereto agrees that a final judgment in any
such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement shall affect any right that the Administrative Agent,
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any Issuing Bank or any Lender may otherwise have to bring any action or
proceeding relating to this Agreement or any other Loan Document against any
Obligor or its properties in the courts of any jurisdiction.
(c) Each Obligor hereby irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection which it may now or hereafter have to the laying of venue of any suit,
action or proceeding arising out of or relating to this Agreement or any other
Loan Document in any court referred to in paragraph (b) of this Section. Each of
the parties hereto hereby irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.
(d) Each party to this Agreement irrevocably consents to
service of process in the manner provided for notices in Section 10.01. Nothing
in this Agreement will affect the right of any party to this Agreement to serve
process in any other manner permitted by law.
SECTION 10.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
SECTION 10.11. Headings. Article and Section headings and the
Table of Contents used herein are for convenience of reference only, are not
part of this Agreement and shall not affect the construction of, or be taken
into consideration in interpreting, this Agreement.
SECTION 10.12. Confidentiality. Each of the Administrative
Agent, the Issuing Banks and the Lenders agrees to maintain the confidentiality
of the Information (as defined below), except that Information may be disclosed
(a) to its and its Affiliates' directors, officers, employees and agents,
including accountants, legal counsel and other advisors (it being understood
that the Persons to whom such disclosure is made will be informed of the
confidential nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority, (c) to
the extent required by applicable laws or regulations or by any subpoena or
similar legal process, (d) to any other party to this Agreement or the other
Loan Documents, (e) in connection with the exercise of any remedies hereunder or
any suit, action or proceeding relating to this Agreement or the other Loan
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Documents or the enforcement of rights hereunder or thereunder, (f) subject to
an agreement containing provisions substantially the same as those of this
Section, to any assignee of or Participant in, or any prospective assignee of or
Participant in, any of its rights or obligations under this Agreement or the
other Loan Documents, (g) with the consent of the Borrower or (h) to the extent
such Information (i) becomes publicly available other than as a result of a
breach of this Section or (ii) becomes available to the Administrative Agent,
any Issuing Bank or any Lender on a nonconfidential basis from a source other
than the Borrower. For the purposes of this Section, "Information" means all
information received from any Obligor relating to such Obligor or its business,
other than any such information that is available to the Administrative Agent,
any Issuing Bank or any Lender on a nonconfidential basis prior to disclosure by
the Borrower; provided that, in the case of information received from any
Obligor after the date hereof, such information is clearly identified at the
time of delivery as confidential. Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered
to have complied with its obligation to do so if such Person has exercised the
same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.
SECTION 10.13. Perfection of Security Interests.
Notwithstanding anything contained herein or in any Security Document to the
contrary, neither the Borrower nor any of its Subsidiaries shall be responsible
for the failure of the Lien created by the Security Agreement to be perfected
(a) to the extent that such failure results from the failure by the Collateral
Agent to file continuation statements under the Uniform Commercial Code in
respect of such Lien, (b) to the extent that such failure relates to Liens over
letters of credit supporting LC-Backed Receivables, provided that the aggregate
amount of LC-Backed Receivables in respect of which such Liens over the related
letters of credit are not perfected does not exceed 10% of the Consolidated
Borrowing Base, (c) to the extent that such failure relates to Liens over
Inventory stored in warehouses, provided that the amount of the Consolidated
Borrowing Base attributable to such Inventory shall not exceed $250,000 for any
single warehouse and that the amount of the Consolidated Borrowing Base
attributable to such Inventory and to Eligible Receivables referred to in the
following clause (d) shall not exceed the greater of $20,000,000 or 5% of the
amount of the Consolidated Borrowing Base in the aggregate or (d) to the extent
that such failure relates to Liens over Eligible Receivables and results from
such Eligible Receivables being due from Governmental Authorities, provided that
the amount of the Consolidated Borrowing Base attributable to such Eligible
Receivables and to Inventory referred to in the preceding clause (c) shall not
exceed the greater of $20,000,000 or 5% of the amount of the Consolidated
Borrowing Base in the aggregate. If, as determined by the annual report of the
independent collateral auditor referred to in Section 5.01(g) hereof, the amount
of Collateral subject to any such failure exceeds any relevant amount referred
to in clause (a), (b) or (c) of the preceding sentence, then, (i) on such date
(the "Trigger Date") that the Borrower determines that such excess exists, the
Borrower shall immediately notify the Administrative Agent and the Collateral
Agent of such event, (ii) the Borrower shall furnish to the Administrative Agent
on the Trigger Date a Borrowing Base Certificate calculated on the basis of the
Borrowing Base Certificate most recently furnished hereunder but recalculating
the Borrowing Base with pro forma adjustments reflecting the exclusion of such
excess Collateral from the Eligible Receivables or Eligible Inventory, as the
case may be, (iii) the Borrower shall forthwith on the Trigger Date comply with
its obligations under Section 2.10(b) after giving effect to the Borrowing Base
as so calculated and (iv) not later than 30 days following the Trigger Date, the
Borrower shall have taken such action as shall be necessary to eliminate such
excess. If the Borrower is in compliance with the preceding sentence, then (x)
except as expressly provided in the preceding sentence, no account or Inventory
shall be excluded from Eligible Receivables or Eligible Inventory, as the case
may be, (y) no Obligor shall be deemed to have breached any covenant or made any
untrue representation or warranty and (z) no Default or Event of Default shall
be deemed to have occurred or be continuing, in each of the cases referred to in
the foregoing clauses (x), (y) and (z) solely because any Lien created by the
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Security Agreement shall fail to be perfected if such failure is described in
clause (a), (b) or (c) of the first sentence or this Section 10.13; except that,
notwithstanding the preceding provisions of this Section 10.13, the Borrower
shall from time to time upon the request of the Administrative Agent or the
Required Lenders deliver or cause to be delivered to the Collateral Agent in
pledge under the Security Agreement the letters of credit supporting LC-Backed
Receivables.
SECTION 10.14. Acknowledgements. Each Obligor hereby
acknowledges that:
(a) it has been advised by counsel in the negotiation,
execution and delivery of this Agreement and the other Loan Documents;
(b) neither the Administrative Agent nor any Lender or Issuing
Bank has any fiduciary relationship with or fiduciary duty to any
Obligor arising out of or in connection with this Agreement or any of
the other Loan Documents, and the relationship between the
Administrative Agent, the Lenders and the Issuing Banks, on the one
hand, and the Obligors, on the other hand, in connection herewith or
therewith is solely that of debtor and creditor; and
(c) no joint venture is created hereby or by the other Loan
Documents or otherwise exists by virtue of the transactions
contemplated hereby among any party or parties hereto.
SECTION 10.15. European Monetary Union.
(a) Definitions. As used herein, the following terms shall
have the following meanings:
"EMU" means economic and monetary union as contemplated in the
Treaty on European Union.
"EMU Legislation" means legislative measures of the European
Council for the introduction of, changeover to or operation of a single
or unified European currency (whether known as the Euro or otherwise),
being in part the implementation of the third stage of EMU.
"Euros" means the single currency of Participating Member
States of the European Union, which shall be an Approved Foreign
Currency and a Foreign Currency under this Agreement.
"National Currency" means the Currency, other than the Euro,
of a Participating Member State.
"Participating Member State" means each state so described in
any EMU Legislation.
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"Target Operating Day" means any day that is not (i) a
Saturday or Sunday, (ii) Christmas Day or New Year's Day or (iii) any
other day on which the Trans-European Real-time Gross Settlement
Operating System (or any successor settlement system) is not operating
(as determined by the Administrative Agent).
"Treaty on European Union" means the Treaty of Rome of March
25, 1957, as amended by the Single Xxxxxxxx Xxx 0000 and the Maastricht
Treaty (which was signed at Maastricht on February 7, 1992, and came
into force on November 1, 1993), as amended from time to time.
(b) Effectiveness of Provisions. The provisions of paragraphs
(c) through (h) of this Section shall be effective on the Effective Date,
provided that, if and to the extent that any such provision relates to any state
(or the Currency of such state) that is not a Participating Member State on the
Effective Date, such provision shall become effective in relation to such state
(and such Currency) at and from the date on which such state becomes a
Participating Member State.
(c) Redenomination and Alternative Currencies. Each obligation
under this Agreement of a party to this Agreement which has been denominated in
the National Currency of a Participating Member State shall be redenominated in
Euros in accordance with EMU Legislation; provided that, if and to the extent
that any EMU Legislation provides that following the Effective Date an amount
denominated either in Euros or in the National Currency of a Participating
Member State and payable within the Participating Member State by crediting an
account of the creditor can be paid by the debtor either in Euros or in such
National Currency, any party to this Agreement shall be entitled to pay or repay
any such amount either in Euros or in such National Currency.
(d) Payments by the Administrative Agent Generally. With
respect to the payment of any amount denominated in Euros or in a National
Currency, the Administrative Agent shall not be liable to the Borrower or any of
the Lenders in any way whatsoever for any delay, or the consequences of any
delay, in the crediting to any account of any amount required by this Agreement
to be paid by the Administrative Agent if the Administrative Agent shall have
taken all relevant steps to achieve, on the date required by this Agreement, the
payment of such amount in immediately available, freely transferable, cleared
funds (in Euros or in such National Currency, as the case may be) to the account
of any Lender in the Principal Financial Center in the Participating Member
State which the Borrower or such Lender, as the case may be, shall have
specified for such purpose. For the purposes of this paragraph, "all relevant
steps" means all such steps as may be prescribed from time to time by the
regulations or operating procedures of such clearing or settlement system as the
Administrative Agent may from time to time determine for the purpose of clearing
or settling payments in Euros or in such National Currency.
(e) Certain Rate Determinations. For the purposes of
determining the date on which the LIBO Rate is determined under this Agreement
for the Interest Period for any Borrowing denominated in Euros (or in any
National Currency), references in this Agreement to Business Days shall be
deemed to be references to Target Operating Days. In addition, if the
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Administrative Agent determines, with respect to the Interest Period for any
Borrowing denominated in a National Currency, that there is no LIBOR displayed
on the Screen for deposits denominated in such National Currency, the LIBO Rate
for such Interest Period shall be based upon LIBOR displayed on the Screen for
the offering of deposits denominated in Euros.
(f) Basis of Accrual. If the basis of accrual of interest or
fees expressed in this Agreement with respect to the Currency of any state that
becomes a Participating Member State shall be inconsistent with any convention
or practice in the interbank market for the basis of accrual of interest or fees
in respect of the Euro, such convention or practice shall replace such expressed
basis effective as of and from the date on which such state becomes a
Participating Member State; provided that, with respect to any Borrowing
denominated in such Currency that is outstanding immediately prior to such date,
such replacement shall take effect at the end of the Interest Period therefor.
(g) Rounding. Without prejudice and in addition to any method
of conversion or rounding prescribed by the EMU Legislation, each reference in
this Agreement to a minimum amount, or to a multiple of a specified amount, in a
National Currency to be paid to or by the Administrative Agent shall be replaced
by a reference to such reasonably comparable and convenient amount, or to a
multiple of such reasonably comparable and convenient amount, in Euros as the
Administrative Agent may from time to time specify.
(h) Other Consequential Changes. Without prejudice to the
respective liabilities of the Borrower to the Lenders and the Lenders to the
Borrower under or pursuant to this Agreement, except as expressly provided in
this Section, each provision of this Agreement shall be subject to such
reasonable changes of construction as the Administrative Agent may from time to
time reasonably specify to be necessary or appropriate to reflect the
introduction of or changeover to the Euro in Participating Member States.
SECTION 10.16. Judgment Currency. This is an international
loan transaction in which the specification of Dollars or any Foreign Currency,
as the case may be (the "Specified Currency"), and payment in New York City or
the country of the Specified Currency, as the case may be (the "Specified
Place"), is of the essence, and the Specified Currency shall be the currency of
account in all events relating to Loans denominated in the Specified Currency.
The payment obligations of each Obligor under this Agreement shall not be
discharged or satisfied by an amount paid in another currency or in another
place, whether pursuant to a judgment or otherwise, to the extent that the
amount so paid on conversion to the Specified Currency and transfer to the
Specified Place under normal banking procedures does not yield the amount of the
Specified Currency at the Specified Place due hereunder. If for the purpose of
obtaining judgment in any court it is necessary to convert a sum due hereunder
in the Specified Currency into another currency (the "Second Currency"), the
rate of exchange that shall be applied shall be the rate at which in accordance
with normal banking procedures the Administrative Agent could purchase the
Specified Currency with the Second Currency on the Business Day next preceding
the day on which such judgment is rendered. The obligation of each Obligor in
respect of any such sum due from it to the Administrative Agent or any Lender
hereunder or under any other Loan Document (in this Section called an "Entitled
Person") shall, notwithstanding the rate of exchange actually applied in
rendering such judgment, be discharged only to the extent that on the Business
Day following receipt by such Entitled Person of any sum adjudged to be due
hereunder in the Second Currency such Entitled Person may in accordance with
normal banking procedures purchase and transfer to the Specified Place the
Specified Currency with the amount of the Second Currency so adjudged to be due;
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and each Obligor hereby, as a separate obligation and notwithstanding any such
judgment, agrees to indemnify such Entitled Person against, and to pay such
Entitled Person on demand, in the Specified Currency, the amount (if any) by
which the sum originally due to such Entitled Person in the Specified Currency
hereunder exceeds the amount of the Specified Currency so purchased and
transferred.
ARTICLE XI
CONFIRMATION OF SECURITY AGREEMENT
The Obligors hereby confirm that the obligations of the
Obligors under this Amended and Restated Multi-Year Credit Agreement are
entitled to all of the benefits of the Collateral Agency, Pledge and Security
Agreement, dated as of July 15, 1997 (the "Security Agreement") between the
Borrower, each of the Subsidiary Guarantors signatory thereto and The Chase
Manhattan Bank, as Collateral Agent and Five-Year Agent and that the obligations
of the Obligors under this Amended and Restated Multi-Year Credit Agreement
shall constitute "Secured Obligations" (as defined in the Security Agreement)
under and for all purposes of the Security Agreement and that (as of the
Effective Date) all references to the "Five-Year Credit Agreement"(including
indirect references) shall be deemed to be references to this Amended and
Restated Multi-Year Credit Agreement.
Each of Xxxxxxx'x Foods, Inc., Xxxxxxx'x Foods of Virginia,
Inc., Circle Four Sales, Smithfield of Utah, Inc., Xxxxxxx'x of Utah, Inc.,
Circle Four Farms, LLC, North Side Foods, Corp., and Central Plains Farms, Inc.
hereby agree to become Subsidiary Guarantors under and for all purposes of this
Agreement and of the Security Agreement with all of the obligations, rights and
duties of a Subsidiary Guarantor and of an Obligor hereunder and thereunder.
Without limiting the generality of the foregoing, each of Xxxxxxx'x Foods and
North Side Foods, Corp. pledges and grants a security interest in all right,
title and interest of each of them in all the Collateral (as defined in Section
3 of the Security Agreement) now owned or hereafter acquired by each of them and
whether now existing or hereafter coming into existence as collateral security
for the Secured Obligations (as defined in the Security Agreement) and agrees
that Annex 1 and Annex 2 thereof shall be supplemented as provided in Schedule
11 hereto and makes the representations and warranties set forth in Section 2 of
the Security Agreement.
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IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed by their respective authorized officers as of the
day and year first above written.
SMITHFIELD FOODS, INC.
By_________________________
Name: C. Xxxxx Xxxx
Title:
SUBSIDIARY GUARANTORS
THE SMITHFIELD PACKING COMPANY,
INCORPORATED
By_________________________
Name: C. Xxxxx Xxxx
Title: Treasurer
XXXXXXXX OF SMITHFIELD, LTD.
By_________________________
Name: C. Xxxxx Xxxx
Title: Treasurer
XXXXXXX XXXXXX INCORPORATED
By_________________________
Name: C. Xxxxx Xxxx
Title: Treasurer
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XXXX XXXXXXX & CO.
By_________________________
Name: C. Xxxxx Xxxx
Title: Vice President
XXXXX MEAT GROUP, INC.
By_________________________
Name: C. Xxxxx Xxxx
Title: Treasurer
XXXXX'X OF CAROLINA, INC.
By_________________________
Name: C. Xxxxx Xxxx
Title: Treasurer
XXXXXXX'X OLD FASHIONED COUNTRY
HAMS, INC.
By_________________________
Name: C. Xxxxx Xxxx
Title: Treasurer
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SUNNYLAND, INC.
By_________________________
Name: C. Xxxxx Xxxx
Title: Treasurer
NORTH SIDE FOODS, CORP.
By_________________________
Name: C. Xxxxx Xxxx
Title: Treasurer
XXXXXXX'X FOODS, INC.
By_________________________
Name: C. Xxxxx Xxxx
Title: Treasurer
XXXXXXX'X FOODS OF VIRGINIA, INC.
By_________________________
Name: C. Xxxxx Xxxx
Title: Treasurer
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CIRCLE FOUR SALES
By: Smithfield of Utah, Inc. and
Xxxxxxx'x of Utah, Inc.
its General Partners
By_________________________
Name: C. Xxxxx Xxxx
Title: Treasurer
CIRCLE FOUR FARMS
By: Smithfield of Utah, Inc. and
Xxxxxxx'x of Utah, Inc.
its General Partners
By_________________________
Name: C. Xxxxx Xxxx
Title: Treasurer
XXXXXXX'X OF UTAH, INC.
By_________________________
Name: C. Xxxxx Xxxx
Title: Treasurer
SMITHFIELD OF UTAH, INC.
By_________________________
Name: C. Xxxxx Xxxx
Title: Treasurer
CENTRAL PLAINS FARMS, INC.
By_________________________
Name: C. Xxxxx Xxxx
Title: Treasurer
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XXX XXXXX XXXXXXXXX BANK,
individually and as Administrative Agent,
By_________________________
Name:
Title:
COOPERATIEVE CENTRALE RAIFFEISEN -
BOERENLEENBANK B.A. "RABOBANK
NEDERLAND", NEW YORK BRANCH,
By_________________________
Name:
Title:
By_________________________
Name:
Title:
AGRIBANK, FCB,
By_________________________
Name:
Title:
CAISSE NATIONALE DE CREDIT AGRICOLE,
By_________________________
Name:
Title:
By_________________________
Name:
Title:
DG BANK, DEUTSCHE
GENOSSENSCHAFTSBANK,
CAYMAN ISLANDS BRANCH,
By_________________________
Name:
Title:
By_________________________
Name:
Title:
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XXXX XX XXXXXXX, X.X.,
By_________________________
Name:
Title:
U.S. BANCORP AG CREDIT, INC.,
By_________________________
Name:
Title:
SUNTRUST BANK, ATLANTA,
By_________________________
Name:
Title:
By_________________________
Name:
Title:
BANK OF TOKYO-MITSUBISHI,
TRUST COMPANY
By_________________________
Name:
Title:
DRESDNER BANK AG,
By_________________________
Name:
Title:
FARM CREDIT SERVICES OF
AMERICA, PCA,
By_________________________
Name:
Title:
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XXXXXX XXXXX XXX XXXXXXX XXXX,
By_________________________
Name:
Title:
SANWA BANK LIMITED,
By_________________________
Name:
Title:
SUMITOMO BANK, LIMITED,
NEW YORK BRANCH,
By_________________________
Name:
Title:
CAPE FEAR FARM CREDIT, ACA
By_________________________
Name:
Title:
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SCHEDULE 2.01
COMMITMENTS
TOTAL DOLLAR MULTICURRENCY
LENDERS COMMITMENT ($) COMMITMENT ($) SUB-COMMITMENT ($)
------- -------------- -------------- ------------------
The Chase Manhattan Bank $46,071,428.59 $35,803,571.43 $10,267,857.16
Cooperatieve Centrale Raiffeisen $44,285,714.29 $38,035,714.29 $ 6,250,000.00
Boerenleenbank B.A. "Rabobank"
Nederland, New York Branch
Bank of America, N.A. $35,714,285.71 $35,714,285.71 $ 0.00
DG Bank, Deutsche $33,214,285.71 $28,750,000.00 $ 4,464,285.71
Genossenschaftsbank,
Cayman Islands Branch
SunTrust Bank, Atlanta $27,142,857.14 $23,125,000.01 $ 4,017,857.13
U.S. Bancorp AG Credit, Inc., $27,142,857.14 $27,142,857.14 $ 0.00
Agribank, FCB $25,714,285.71 $25,714,285.71 $ 0.00
Caisse Nationale De Credit $25,714,285.71 $15,714,285.71 $10,000,000.00
Agricole
Bank of Tokyo-Mitsubishi $25,000,000.00 $25,000,000.00 $ 0.00
Trust Company
Farm Credit Services of $25,000,000.00 $25,000,000.00 $ 0.00
America, PCA,
Xxxxxx Trust and Savings Bank $25,000,000.00 $25,000,000.00 $ 0.00
Sumitomo Bank, Limited, $20,000,000.00 $20,000,000.00 $ 0.00
New York Branch
Dresdner Bank AG $15,000,000.00 $15,000,000.00 $ 0.00
Sanwa Bank Limited $15,000,000.00 $15,000,000.00 $ 0.00
Cape Fear Farm Credit, ACA $10,000,000.00 $10,000,000.00 $ 0.00
