[Conformed Copy]
00000-000-00
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CREDIT AGREEMENT
dated as of
October 30, 1996
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PREMIER PARKS INC.
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XXXXXX COMMERCIAL PAPER INC.,
as Administrative Agent
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XXXXXX COMMERCIAL PAPER INC.,
as Arranger
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$115,000,000
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TABLE OF CONTENTS
This Table of Contents is not part of the Agreement to which it is attached
but is inserted for convenience of reference only.
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Section 1. Definitions and Accounting Matters............................. 1
1.01 Certain Defined Terms.......................................... 1
1.02 Accounting Terms and Determinations............................ 30
1.03 Classes and Types of Loans..................................... 31
Section 2. Commitments, Loans, Notes and Prepayments ..................... 31
2.01 Loans.......................................................... 31
2.02 Borrowings..................................................... 34
2.03 Letters of Credit.............................................. 34
2.04 Changes of Commitments......................................... 40
2.05 Commitment Fee................................................. 41
2.06 Lending Offices................................................ 41
2.07 Several Obligations; Remedies Independent...................... 41
2.08 Notes.......................................................... 42
2.09 Optional Prepayments and Conversions or
Continuations of Loans..................................... 43
2.10 Mandatory Prepayments and Reductions of
Commitments................................................ 44
Section 3. Payments of Principal and Interest............................. 50
3.01 Repayment of Loans............................................. 50
3.02 Interest....................................................... 52
Section 4. Payments; Pro Rata Treatment; Computations;
Etc.................................................................. 53
4.01 Payments....................................................... 53
4.02 Pro Rata Treatment............................................. 54
4.03 Computations................................................... 55
4.04 Minimum Amounts................................................ 55
4.05 Certain Notices................................................ 55
4.06 Non-Receipt of Funds by the Administrative Agent............... 56
4.07 Sharing of Payments, Etc....................................... 58
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Section 5. Yield Protection, Etc.......................................... 59
5.01 Additional Costs............................................... 59
5.02 Limitation on Types of Loans................................... 61
5.03 Illegality..................................................... 62
5.04 Treatment of Affected Loans.................................... 62
5.05 Compensation................................................... 63
5.06 Additional Costs in Respect of Letters of Credit............... 64
5.07 U.S. Taxes..................................................... 65
5.08 Replacement of Lenders......................................... 66
Section 6. Guarantee...................................................... 67
6.01 The Guarantee.................................................. 67
6.02 Obligations Unconditional...................................... 68
6.03 Reinstatement.................................................. 69
6.04 Subrogation.................................................... 69
6.05 Remedies....................................................... 70
6.06 Instrument for the Payment of Money............................ 70
6.07 Continuing Guarantee........................................... 70
6.08 Rights of Contribution......................................... 70
6.09 General Limitation on Guarantee Obligations.................... 71
6.10 Dollar Limitation on Guarantee Obligations..................... 72
Section 7. Conditions..................................................... 72
7.01 Initial Extension of Credit of any Class....................... 72
7.02 Each Term Loan of any Class.................................... 75
7.03 All Extensions of Credit....................................... 81
Section 8. Representations and Warranties................................. 82
8.01 Organization; Powers........................................... 82
8.02 Financial Condition............................................ 82
8.03 Litigation..................................................... 83
8.04 No Breach...................................................... 84
8.05 Action......................................................... 84
8.06 Approvals...................................................... 84
8.07 Properties and Permits, Etc.................................... 85
8.08 Environmental Matters.......................................... 86
8.09 Compliance with Laws and Agreements............................ 89
8.10 Investment Company Act......................................... 89
8.11 Public Utility Holding Company Act............................. 89
8.12 Taxes.......................................................... 89
8.13 ERISA.......................................................... 89
8.14 True and Complete Disclosure................................... 90
8.15 Use of Credit.................................................. 90
8.16 Material Agreements and Liens.................................. 90
8.17 Capitalization................................................. 91
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8.18 Subsidiaries and Investments................................... 91
8.19 Parks; Real Property........................................... 92
8.20 Insurance...................................................... 92
8.21 Certain Agreement.............................................. 93
Section 9. Covenants of the Borrower...................................... 93
9.01 Financial Statements and Other Information..................... 93
9.02 Notices of Material Events..................................... 96
9.03 Existence, Etc................................................. 97
9.04 Insurance...................................................... 98
9.05 Prohibition of Fundamental Changes.............................101
9.06 Liens..........................................................105
9.07 Indebtedness...................................................106
9.08 Investments....................................................107
9.09 Restricted Payments............................................108
9.10 Certain Financial Covenants....................................108
9.11 Subordinated Indebtedness......................................110
9.12 Lines of Business..............................................111
9.13 Transactions with Affiliates...................................111
9.14 Use of Proceeds, Etc...........................................112
9.15 Certain Further Assurances.....................................114
9.16 Modifications of Certain Documents.............................116
9.17 Prepayment of Certain Indebtedness.............................117
Section 10. Events of Default.............................................117
Section 11. The Administrative Agent and Arranger.........................122
11.01 Appointment, Powers and Immunities............................122
11.02 Reliance by Administrative Agent..............................123
11.03 Defaults......................................................124
11.04 Rights as a Lender............................................124
11.05 Indemnification...............................................125
11.06 Non-Reliance on Administrative Agent and Other
Lenders....................................................125
11.07 Failure to Act................................................126
11.08 Resignation or Removal of Administrative Agent................126
11.09 Consents under Other Loan Documents...........................127
11.10 Arranger......................................................127
Section 12. Miscellaneous.................................................127
12.01 Notices.......................................................127
12.02 Waiver........................................................128
12.03 Amendments, Etc...............................................128
12.04 Expenses, Etc.................................................129
12.05 Successors and Assigns........................................131
12.06 Assignments and Participations................................131
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12.07 Survival......................................................133
12.08 Counterparts..................................................134
12.09 Governing Law; Submission to Jurisdiction.....................134
12.10 WAIVER OF JURY TRIAL..........................................134
12.11 Captions......................................................134
12.12 Confidentiality...............................................134
SCHEDULE I - Material Agreements and Liens
SCHEDULE II - Environmental Matters
SCHEDULE III - Subsidiaries and Investments
SCHEDULE IV - Existing Parks and Real Property
SCHEDULE V - Certain Litigation
SCHEDULE VI - Insurance
SCHEDULE VII - Certain EBITDA Adjustments
EXHIBIT A-1 - Form of Revolving Credit Note
EXHIBIT A-2 - Form of Facility A Term Loan Note
EXHIBIT A-3 - Form of Facility B Term Loan Note
EXHIBIT B-1 - Form of Revolving Credit Security Agreement
EXHIBIT B-2 - Form of Equipment Security Agreement
EXHIBIT C - Form of Guarantee Assumption Agreement
EXHIBIT D-1 - Form of Opinion of Special New York Counsel to the Obligors
(Initial Extension of Credit)
EXHIBIT D-2 - Form of Opinion of Special New York Counsel to the Obligors (
Term Loans)
EXHIBIT E - Form of Opinion of Local Counsel
EXHIBIT F - Form of Opinion of Special New York Counsel to the Arranger
EXHIBIT G - Form of Confidentiality Agreement
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CREDIT AGREEMENT dated as of October 30, 1996, between: PREMIER PARKS INC.,
a corporation duly organized and validly existing under the laws of the State of
Delaware (the "Borrower"); each of the Subsidiaries of the Borrower identified
under the caption "SUBSIDIARY GUARANTORS" on the signature pages hereto and each
Subsidiary of the Borrower that becomes a "Subsidiary Guarantor" after the date
hereof pursuant to Section 9.15(a) (individually, a "Subsidiary Guarantor" and,
collectively, the "Subsidiary Guarantors" and, together with the Borrower, the
"Obligors"); each of the lenders that is a signatory hereto identified under the
caption "LENDERS" on the signature pages hereto and each lender that becomes a
"Lender" after the date hereof pursuant to Section 12.06(b) (individually, a
"Lender" and, collectively, the "Lenders"); XXXXXX COMMERCIAL PAPER INC., as
administrative agent for the Lenders (in such capacity, together with its
successors in such capacity, the "Administrative Agent"); and XXXXXX COMMERCIAL
PAPER INC., a Delaware corporation, as arranger (in such capacity, the
"Arranger").
The Lenders have heretofore purchased from the lenders party to the
Existing Credit Agreement referred to below all of the right, title and interest
of such lenders in, to and under the loans made by such lenders to the Borrower
under the Existing Credit Agreement. The Borrower has now requested that the
Lenders extend credit to it, under the guarantee of the Subsidiary Guarantors,
in an aggregate principal or face amount not exceeding $115,000,000 to refinance
certain existing indebtedness, to enable certain acquisitions and capital
expenditures to be made by the Obligors, and to finance other general corporate
needs of the Obligors, and the Lenders are prepared to extend such credit upon
the terms and conditions hereof. It is the intention of the parties hereto that
this Agreement constitute a successor agreement to the Existing Credit
Agreement. Accordingly, the parties hereto agree as follows:
Section 1. Definitions and Accounting Matters.
1.01 Certain Defined Terms. As used herein, the following terms shall have
the following meanings (all terms defined in this Section 1.01 or in other
provisions of this Agreement in the singular to have the same meanings when used
in the plural and vice versa and all references herein to Sections, Exhibits and
Schedules shall be construed to refer to Sections of, and Exhibits and Schedules
to, this Agreement):
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"Acquisitions" means, collectively, the Initial Acquisitions and the
Subsequent Acquisitions.
"Affiliate" means any Person that directly or indirectly controls, or is
under common control with, or is controlled by, the Borrower and, if such Person
is an individual, any member of the immediate family (including parents, spouse,
children) of such individual and any trust whose principal beneficiary is such
individual or one or more members of such immediate family and any Person who is
controlled by any such member or trust. As used in this definition, "control"
(including, with its correlative meanings, "controlled by" and "under common
control with") means possession, directly or indirectly, of power to direct or
cause the direction of management or policies (whether through ownership of
securities or partnership or other ownership interests, by contract or
otherwise), provided that, in any event, any Person that owns directly or
indirectly securities having 10% or more of the voting power for the election of
directors or other governing body of a corporation or 10% or more of the
partnership or other ownership interests of any other Person (other than as a
limited partner of such other Person) will be deemed to control such corporation
or other Person. Notwithstanding the foregoing, (a) no individual shall be an
Affiliate solely by reason of his or her being a director, officer or employee
of the Borrower or any of its Subsidiaries and (b) none of the Wholly Owned
Subsidiaries of the Borrower shall be Affiliates.
"Allocation Agreement" means the Allocation Agreement dated January 15,
1993 (by convention of the parties thereto, but undated in the executed copy of
said Agreement) by and among Trillium Corporation, the Borrower (as successor by
assignment, upon the consummation of the Elitch Gardens Acquisition, to Elitch
Gardens Company) and Public Service Company of Colorado, as the same has been
heretofore modified and supplemented and as the same shall, subject to Section
9.16, be further modified and supplemented and in effect from time to time.
"Applicable Lending Office" means, for each Lender and for each Type of
Loan, the "Lending Office" of such Lender (or of an affiliate of such Lender)
designated for such Type of Loan on the signature pages hereof or such other
office of such Lender (or of an affiliate of such Lender) as such Lender may
from time to time specify to the Administrative Agent and the Borrower as the
office by which its Loans of such Type are to be made and maintained.
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"Applicable Rate" means for any day, with respect to any Base Rate Loan or
Eurodollar Loan, or with respect to the commitment fees payable hereunder, as
the case may be, the applicable rate per annum set forth below under the caption
"Base Rate Loans", "Eurodollar Loans" or "Commitment Fee", as the case may be,
based upon the Leverage Ratio as at the last day of the fiscal quarter most
recently ended as to which the Borrower has delivered financial statements
pursuant to Section 9.01, provided that, until financial statements for the
fiscal quarter ending June 30, 1997 shall have been delivered pursuant to said
Section 9.01, the Applicable Rate shall be that set forth below when the
Leverage Ratio is equal to 4.00 to 1:
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Leverage Ratio Base Rate Loans Eurodollar Loans Commitment Fee
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Greater than or 0.750% 2.250% 0.500%
equal to
4.50 to 1
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Greater than or
equal to
4.00 to 1 and 0.500% 2.000% 0.500%
less than
4.50 to 1
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Greater than or
equal to
3.50 to 1 and 0.250% 1.750% 0.375%
less than
4.00 to 1
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Greater than or
equal to
3.00 to 1 and 0.000% 1.250% 0.375%
less than
3.50 to 1
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Less than
3.00 to 1 0.000% 1.000% 0.250%
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Each change in the "Applicable Rate" based upon any change in the Leverage
Ratio, shall become effective for purposes of the accrual of interest and
commitment fees hereunder on the date three Business Days after the delivery to
the Administrative Agent and each Lender of the financial statements of the
Borrower and its Subsidiaries for the most recently ended fiscal quarter
pursuant to Section 9.01, and shall remain effective for such purpose until
three Business Days after the next delivery of such financial statements to the
Administrative Agent and each Lender hereunder, provided that, notwithstanding
the foregoing, the Applicable Rate shall be the highest rates provided for in
the above schedule for any period during which either (i) an Event of Default
shall have occurred and be continuing or (ii) the
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Borrower shall be in default of its obligation to deliver financial statements
for any fiscal quarter by the times specified in Section 9.01 (but upon the cure
or waiver of any such Event of Default or default, this proviso shall no longer
be applicable until another such Event of Default or default shall occur).
"Bankruptcy Code" means the Federal Bankruptcy Code of 1978, as amended
from time to time.
"Base Rate" means, for any day, a rate per annum equal to the higher of (a)
the Federal Funds Rate for such day plus 1/2% and (b) the Prime Rate for such
day. Each change in any interest rate provided for herein based upon the Base
Rate resulting from a change in the Base Rate shall take effect at the time of
such change in the Base Rate.
"Base Rate Loans" means Loans that bear interest at rates based upon the
Base Rate.
"Basic Documents" means, collectively, the Loan Documents, the Acquisition
Agreements, the Allocation Agreement and the Leases.
"Basle Accord" means the proposals for risk-based capital framework
described by the Basle Committee on Banking Regulations and Supervisory
Practices in its paper entitled "International Convergence of Capital
Measurement and Capital Standards" dated July 1988, as amended, modified and
supplemented and in effect from time to time or any replacement thereof.
"Business Day" means any day (a) on which commercial banks are not
authorized or required to close in New York City and (b) if such day relates to
a borrowing of, a payment or prepayment of principal of or interest on, a
Conversion of or into, or an Interest Period for, a Eurodollar Loan or a notice
by the Borrower with respect to any such borrowing, payment, prepayment,
Conversion or Interest Period, that is also a day on which dealings in Dollar
deposits are carried out in the London interbank market.
"California Leases" means, (a) the Agreement entered into October 14, 1992
between the California Exposition and State Fair, a State of California entity,
and FRE, Inc., as amended by Second Amendment to Agreement dated July 19, 1996
and (b) the Ground Lease dated as of September 28, 1994 between The City of
Concord, a public body, corporate and politic, and Concord Entertainment
Company, in each case as such Agreement or Ground
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Lease has heretofore been and shall, subject to Section 9.16, be further
modified and supplemented and in effect from time to time.
"Capital Expenditures" means, for any period, expenditures (including,
without limitation, the aggregate amount of Capital Lease Obligations incurred
during such period) made by the Borrower or any of its Subsidiaries to acquire
or construct fixed assets, plant and equipment (including renewals, improvements
and replacements, but excluding repairs) during such period computed in
accordance with GAAP.
"Capital Lease Obligations" means, for any Person, all obligations of such
Person to pay rent or other amounts under a lease of (or other agreement
conveying the right to use) Property to the extent such obligations are required
to be classified and accounted for as a capital lease on a balance sheet of such
Person under GAAP, and, for purposes of this Agreement, the amount of such
obligations shall be the capitalized amount thereof, determined in accordance
with GAAP.
"Capital Transaction" means a purchase of equipment, or acquisition of a
Park, that is financed in whole or in part (or which the Borrower anticipates
financing in whole or in part) with the proceeds of Facility A or Facility B
Term Loans hereunder, as contemplated in Section 9.14.
"Casualty Event" means, with respect to any Property of any Person, any
loss of or damage to, or any condemnation or other taking of, such Property for
which such Person or any of its Subsidiaries receives insurance proceeds, or
proceeds of a condemnation award or other compensation.
"Class" has the meaning assigned to such term in Section 1.03.
"Closing Date" means the date upon which the initial extension of credit
hereunder is made.
"Code" means the Internal Revenue Code of 1986, as amended from time to
time.
"Collateral Account" has the meaning assigned to such term in the Revolving
Credit Security Agreement.
"Commitments" means, collectively, the Revolving Credit Commitments, the
Facility A Term Loan Commitments and the Facility B Term Loan Commitments.
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"Concord Acquisition" means the acquisition by the Borrower (which may be
effected indirectly through the acquisition by the Borrower of a Subsidiary
formed to hold the assets to be acquired, followed by the immediate liquidation
of such Subsidiary) from Concord Entertainment Company, of the Waterworld USA
Amusement Park (and related assets) in Concord, California, pursuant to the
Concord Acquisition Agreement.
"Concord Acquisition Agreement" means the Asset Purchase Agreement dated as
October 10, 1996, by and among Premier Parks Acquisition Corp., the Borrower,
Concord Entertainment Company, FRE, Inc. (Family Recreational Enterprises,
Inc.), R&B Entertainment, LLC, and certain shareholders and members of FRE, Inc.
and R&B Entertainment, LLC, as said Asset Purchase Agreement shall, subject to
Section 9.16, be modified and supplemented and in effect from time to time.
"Continue", "Continuation" and "Continued" refer to the continuation
pursuant to Section 2.09 of a Eurodollar Loan from one Interest Period to the
next Interest Period for such Loan.
"Convert", "Conversion" and "Converted" refer to a conversion pursuant to
Section 2.09 of one Type of Loans into another Type of Loans, which may be
accompanied by the transfer by a Lender (at its sole discretion) of a Loan from
one Applicable Lending Office to another.
"Debt Issuance" means any issuance or sale by the Borrower or any of its
Subsidiaries after the Closing Date of any debt securities, excluding, however,
any Indebtedness incurred pursuant to Section 9.07(d) or 9.07(e).
"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) the amount, if any, by which the
aggregate principal amount of Revolving Credit Loans outstanding hereunder at
the beginning of such period shall exceed the aggregate amount of the Revolving
Credit Commitments scheduled to be in effect at the end of such period after
giving effect to any reductions of such Commitments scheduled to occur during
such period pursuant to Section 2.04(a) plus (b) all regularly scheduled
payments or regularly scheduled mandatory prepayments of principal of any other
Indebtedness (including the Facility A Term Loans and Facility B Term Loans
hereunder and the principal component of any payments in respect of Capital
Lease Obligations, but excluding any prepayments made pursuant to Section 2.10)
made during such period plus (c) all Interest Expense for such period.
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"Debt Service Coverage Ratio" means, as at any date, the ratio of (a)
EBITDA for the period of four consecutive fiscal quarters ending on or most
recently ended prior to such date to (b) Debt Service for such period.
"Default" means an Event of Default or an event that with notice or lapse
of time or both would become an Event of Default.
"Disposition" means any sale, assignment, transfer or other disposition of
any Property (whether now owned or hereafter acquired) by the Borrower or any of
its Subsidiaries to any other Person excluding (a) any sale, assignment,
transfer or other disposition of any inventory or other Property sold or
disposed of in the ordinary course of business and (b) during any fiscal year,
the first $1,000,000 of sales of used equipment or other Property not used in
the business of the Borrower and its Subsidiaries.
"Disposition Investment" means, with respect to any Disposition, any
promissory notes or other evidences of indebtedness or Investments received by
the Borrower or any of its Subsidiaries in connection with such Disposition.
"Dollars" and "$" means lawful money of the United States of America.
"EBITDA" 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, in each case determined before interest
income or expense and extraordinary or unusual items (and excluding all barter
and trade transactions): (a) operating income (or loss) for such period, plus
(b) depreciation, amortization and other non-cash charges (to the extent
deducted in determining operating income) for such period.
Notwithstanding the foregoing, (i) if during any period for which EBITDA is
being determined the Borrower shall have consummated any Acquisition or
Disposition then, for all purposes of this Agreement (other than for purposes of
the definition of Excess Cash Flow), EBITDA shall be determined on a pro forma
basis as if such Acquisition or Disposition had been made or consummated on the
first day of such period and (ii) when determining EBITDA for any period on a
pro forma basis as provided in the preceding clause (i) ending after the
consummation of any Acquisition, there shall be added (or subtracted) the
respective amounts for such Acquisition (and any
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other Acquisitions consummated prior to the last day of such period) set forth
(x) in the case of any Initial Acquisition, in Schedule VII opposite the last
day of such period and (y) in the case of any Subsequent Acquisition, in a
supplement to Schedule VII agreed to at the time of such Subsequent Acquisition
pursuant to Section 9.05(d)(iv)(F).
"Elitch Gardens Acquisition" means the acquisition by the Borrower (which
may be effected indirectly through the acquisition by the Borrower of a
Subsidiary formed to hold the assets to be acquired, followed by the immediate
liquidation of such Subsidiary) from Elitch Gardens Company of the Elitch
Gardens Amusement Park (and related assets) in Denver, Colorado, pursuant to the
Elitch Gardens Acquisition Agreement.
"Elitch Gardens Acquisition Agreement" means the Asset Purchase Agreement
dated as September 23, 1996, by and among Premier Parks Acquisition Corp., the
Borrower, Elitch Gardens Company, Xxxxxxxx Entertainment Corp and Xxxxxx Xxxxxx
Construction Co., as said Asset Purchase Agreement shall, subject to Section
9.16, be modified and supplemented and in effect from time to time.
"Environmental Claim" means, with respect to any Person, any written
notice, claim, demand or other communication (collectively, a "claim") by any
other Person alleging or asserting such Person's liability for investigatory
costs, cleanup costs, governmental response costs, damages to natural resources
or other Property, personal injuries, fines or penalties arising out of, based
on or resulting from (i) the presence, or Release into the environment, of any
Hazardous Material at any location, whether or not owned by such Person, or (ii)
circumstances forming the basis of any violation, or alleged violation, of any
Environmental Law. The term "Environmental Claim" shall include, without
limitation, any claim by any governmental authority for enforcement, cleanup,
removal, response, remedial or other actions or damages pursuant to any
applicable Environmental Law, and any claim by any third party seeking damages,
contribution, indemnification, cost recovery, compensation or injunctive relief
resulting from the presence of Hazardous Materials or arising from alleged
injury or threat of injury to health, safety or the environment, as a result of
any of the foregoing.
"Environmental Laws" means any and all present and future Federal, state,
local and foreign laws, rules or regulations, and any orders or decrees, in each
case as now or hereafter in effect, relating to the regulation or protection of
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human health, safety or the environment or to emissions, discharges, releases or
threatened releases of pollutants, contaminants, chemicals or toxic or hazardous
substances or wastes into the indoor or outdoor environment, including, without
limitation, ambient air, soil, surface water, ground water, wetlands, land or
subsurface strata, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
pollutants, contaminants, chemicals or toxic or hazardous substances or wastes.
"Equipment Security Agreement" means a Security Agreement substantially in
the form of Exhibit B-2 between the Borrower and the Administrative Agent,
covering Property or equipment acquired by the Borrower after the date hereof in
a Capital Transaction in whole or in part with the proceeds of a Sub-Series of
Facility A or Facility B Term Loans as collateral security for the obligations
of the Borrower hereunder in respect of such Sub-Series (or, to the extent
permitted under Section 9.15(e), constitute collateral security for the other
obligations of the Obligors hereunder), as said Security Agreement shall be
modified and supplemented and in effect from time to time.
"Equity Rights" means, with respect to any Person, any 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 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 corporation or trade or business that is a
member of any group of organizations (i) described in Section 414(b) or (c) of
the Code of which the Borrower is a member and (ii) solely for purposes of
potential liability under Section 302(c)(11) of ERISA and Section 412(c)(11) of
the Code and the lien created under Section 302(f) of ERISA and Section 412(n)
of the Code, described in Section 414(m) or (o) of the Code of which the
Borrower is a member.
"ERISA Event" means any of the following events or conditions:
(a) any reportable event, as defined in Section 4043(c) of ERISA and
the regulations issued
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thereunder, with respect to a Plan, as to which the PBGC has not by
regulation waived the requirement of Section 4043(a) of ERISA that it be
notified within 30 days of the occurrence of such event (provided that a
failure to meet the minimum funding standard of Section 412 of the Code or
Section 302 of ERISA, including, without limitation, the failure to make on
or before its due date a required installment under Section 412(m) of the
Code or Section 302(e) of ERISA, shall be a reportable event regardless of
the issuance of any waivers in accordance with Section 412(d) of the Code);
and any request for a waiver under Section 412(d) of the Code for any Plan;
(b) the distribution under Section 4041 of ERISA of a notice of intent
to terminate any Plan or any action taken by the Borrower or an ERISA
Affiliate to terminate any Plan;
(c) the institution by the PBGC of proceedings under Section 4042 of
ERISA for the termination of, or the appointment of a trustee to
administer, any Plan, or the receipt by the Borrower or any ERISA Affiliate
of a notice from a Multiemployer Plan that such action has been taken by
the PBGC with respect to such Multiemployer Plan;
(d) the complete or partial withdrawal from a Multiemployer Plan by
the Borrower or any ERISA Affiliate that results in liability under Section
4201 or 4204 of ERISA (including the obligation to satisfy secondary
liability as a result of a purchaser default) or the receipt by the
Borrower or any ERISA Affiliate of notice from a Multiemployer Plan that it
is in reorganization or insolvency pursuant to Section 4241 or 4245 of
ERISA or that it intends to terminate or has terminated under Section 4041A
of ERISA;
(e) the institution of a proceeding by a fiduciary of any
Multiemployer Plan against the Borrower or any ERISA Affiliate to enforce
Section 515 of ERISA, which proceeding is not dismissed within 30 days; or
(f) the adoption of an amendment to any Plan that, pursuant to Section
401(a)(29) of the Code or Section 307 of ERISA, would result in the loss of
tax-exempt status of the trust of which such Plan is a part if the Borrower
or an ERISA Affiliate fails to timely provide security to the Plan in
accordance with the provisions of such Sections.
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"Eurodollar Base Rate" means, with respect to any Eurodollar Loan for any
Interest Period therefor, the rate per annum (rounded upwards, if necessary, to
the nearest 1/16 of 1%) reported on the date two Business Days prior to the
first day of such Interest Period on Telerate Access Service Page 3750 (British
Bankers Association Settlement Rate) as the London Interbank Offered Rate for
Dollar deposits having a term comparable to such Interest Period and in an
amount of $1,000,000 or more (or, if said Page shall cease to be publicly
available or if the information contained on said Page, in the sole judgment of
the Administrative Agent, shall cease to accurately reflect such London
Interbank Offered Rate, the Eurodollar Base Rate means the rate reported by any
publicly available source of similar market data selected by the Administrative
Agent that, in the sole judgment of the Administrative Agent, accurately
reflects such London Interbank Offered Rate).
"Eurodollar Loans" means Loans that bear interest at rates based on rates
referred to in the definition of "Eurodollar Base Rate" in this Section 1.01.
"Eurodollar Rate" means, for any Interest Period for any Eurodollar Loan, a
rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%)
determined by the Administrative Agent to be equal to the Eurodollar Base Rate
for such Interest Period divided by 1 minus the Reserve Requirement (if any) for
such Interest Period.
"Event of Default" has the meaning assigned to such term in Section 10.
"Excess Cash Flow" means, for any period, the excess of (a) EBITDA for such
period over (b) the sum of (i) the aggregate amount of Debt Service for such
period plus (ii) Capital Expenditures made during such period (except for any
such Capital Expenditures to the extent financed with the proceeds of the
issuance of equity capital by the Borrower after the date hereof) plus (iii) the
aggregate amount paid, or required to be paid, in cash in respect of income
taxes for such fiscal year.
"Existing Credit Agreement" means the Credit Agreement dated as of August
15, 1995 among the Borrower, the lenders named therein and The Chase Manhattan
Bank (successor by merger to Chemical Bank), as Administrative Agent and
Collateral Agent, as said Credit Agreement shall be modified and supplemented
and in effect from time to time.
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"Existing Parks" means those amusement and attraction parks listed in Part
A of Schedule IV.
"Facility A Lenders" means (a) on the date hereof, the Lenders having
Facility A Term Loan Commitments on the signature pages hereof and (b)
thereafter, the Lenders from time to time holding Facility A Term Loans and
Facility A Term Loan Commitments after giving effect to any assignments thereof
permitted by Section 12.06(b).
"Facility A Term Loan Commitment" means, for each Facility A Lender, the
obligation of such Lender to make Facility A Term Loans in an amount up to but
not exceeding the amount set forth opposite the name of such Lender on the
signature pages hereof under the caption "Facility A Term Loan Commitment" or,
in the case of any Person that becomes a Facility A Lender pursuant to an
assignment permitted under Section 12.06(b), as specified in the respective
instrument of assignment pursuant to which such assignment is effected (in each
case as the same may be reduced or increased pursuant to an assignment permitted
under Section 12.06(b), or reduced from time to time pursuant to Section 2.04 or
2.10). The original aggregate principal amount of the Facility A Term Loan
Commitments is $25,000,000.
"Facility A Term Loan Notes" means the promissory notes provided for by
Section 2.08(b) and all promissory notes delivered in substitution or exchange
therefor, in each case as the same shall be modified and supplemented and in
effect from time to time.
"Facility A Term Loans" means the loans provided for by Section 2.01(b),
which may be Base Rate Loans and/or Eurodollar Loans.
"Facility B Lenders" means (a) on the date hereof, the Lenders having
Facility B Term Loan Commitments on the signature pages hereof and (b)
thereafter, the Lenders from time to time holding Facility B Term Loans and
Facility B Term Loan Commitments after giving effect to any assignments thereof
permitted by Section 12.06(b).
"Facility B Term Loan Commitment" means, for each Facility B Lender, the
obligation of such Lender to make Facility B Term Loans in an amount up to but
not exceeding the amount set forth opposite the name of such Lender on the
signature pages hereof under the caption "Facility B Term Loan Commitment" or,
in the case of any Person that becomes a Facility B Lender pursuant to an
assignment permitted under Section
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12.06(b), as specified in the respective instrument of assignment pursuant to
which such assignment is effected (in each case as the same may be reduced or
increased pursuant to an assignment permitted under Section 12.06(b), or reduced
from time to time pursuant to Section 2.04 or 2.10). The original aggregate
principal amount of the Facility B Term Loan Commitments is $60,000,000.
"Facility B Term Loan Notes" means the promissory notes provided for by
Section 2.08(c) and all promissory notes delivered in substitution or exchange
therefor, in each case as the same shall be modified and supplemented and in
effect from time to time.
"Facility B Term Loans" means the loans provided for by Section 2.01(c),
which may be Base Rate Loans and/or Eurodollar Loans.
"Federal Funds Rate" means, for any day, the rate per annum (rounded
upwards, if necessary, to the nearest 1/100 of 1%) equal to the weighted average
of the rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers on such day, as published by
the Federal Reserve Bank of New York on the Business Day next succeeding such
day, provided that (a) if the day for which such rate is to be determined is not
a Business Day, the Federal Funds Rate for such day shall be such rate on such
transactions on the next preceding Business Day as so published on the next
succeeding Business Day and (b) if such rate is not so published for any
Business Day, the Federal Funds Rate for such Business Day shall be the average
rate charged to LCPI on such Business Day on such transactions as determined by
the Administrative Agent.
"Fixed Charges Coverage Ratio" means, as at any date, the ratio of (a) the
sum of (i) EBITDA for the period of four consecutive fiscal quarters ending on
or most recently ended prior to such date plus (ii) the amount (if any) by which
the aggregate amount of cash and Permitted Investments of the Borrower and its
Subsidiaries, together with the aggregate unutilized amount of the Revolving
Credit Commitments, as at the last day of such period exceeds $40,000,000
($25,000,000 after the Revolving Credit Commitment Reduction Date) to (b) the
sum of (i) the aggregate amount of Debt Service for such period plus (ii)
Capital Expenditures made during such period (except for any such Capital
Expenditures to the extent financed with the proceeds of the issuance of equity
capital by the Borrower after the date hereof) plus (iii) the aggregate amount
paid, or
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required to be paid, in cash in respect of income taxes for such period.
"FRE Acquisition" means the acquisition by the Borrower (which may be
effected indirectly through the acquisition by the Borrower of a Subsidiary
formed to hold the assets to be acquired, followed by the immediate liquidation
of such Subsidiary) from FRE, Inc. (Family Recreational enterprises, Inc.) of
the Waterworld USA and Paradise Island Amusement Parks (and related assets) in
Sacramento, California, pursuant to the FRE Acquisition Agreement.
"FRE Acquisition Agreement" means the Asset Purchase Agreement dated as
October 10, 1996, by and among Premier Parks Acquisition Corp., the Borrower,
FRE, Inc. (Family Recreational Enterprises, Inc.) and certain shareholders of
FRE, Inc., as said Asset Purchase Agreement shall, subject to Section 9.16, be
modified and supplemented and in effect from time to time.
"GAAP" means generally accepted accounting principles applied on a basis
consistent with those that, in accordance with the last sentence of Section
1.02(a), are to be used in making the calculations for purposes of determining
compliance with this Agreement.
"Great Escape Acquisition" means the acquisition by the Borrower (which may
be effected indirectly through the acquisition by the Borrower of a Subsidiary
formed to hold the assets to be acquired, followed by the immediate liquidation
of such Subsidiary) from Storytown USA, Inc. and Fantasy Rides Corporation of
the Great Escape attractions park, and related assets, in Xxxx Xxxxxx, New York,
pursuant to the Great Escape Acquisition Agreement.
"Great Escape Acquisition Agreement" means the Asset Purchase Agreement
dated as August 23, 1996, by Premier Parks Acquisition Corp., the Borrower,
Storytown USA, Inc., Fantasy Rides Corporation and Xxxxxxx X. Xxxx, as said
Asset Purchase Agreement shall, subject to Section 9.16, be modified and
supplemented and in effect from time to time.
"Guarantee" means a guarantee, an endorsement, a contingent agreement to
purchase or to furnish funds for the payment or maintenance of, or otherwise to
be or become contingently liable under or with respect to, the Indebtedness,
other obligations, net worth, working capital or earnings of any Person, or a
guarantee of the payment of dividends or other distributions upon the stock or
equity interests of any Person,
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or an agreement to purchase, sell or lease (as lessee or lessor) Property,
products, materials, supplies or services primarily for the purpose of enabling
a debtor to make payment of such debtor's obligations or an agreement to assure
a creditor against loss, and including, without limitation, causing a bank or
other financial institution to issue a letter of credit or other similar
instrument for the benefit of another Person, but excluding endorsements for
collection or deposit in the ordinary course of business. The terms "Guarantee"
and "Guaranteed" used as verbs have the correlative meanings.
"Guarantee Assumption Agreement" means a Guarantee Assumption Agreement
substantially in the form of Exhibit C by an entity that, pursuant to Section
9.15(a), is required to become a "Subsidiary Guarantor" hereunder in favor of
the Administrative Agent.
"Hazardous Material" means, collectively, (a) any petroleum or petroleum
products, flammable materials, explosives, radioactive materials, asbestos, urea
formaldehyde foam insulation, and transformers or other equipment that contain
polychlorinated biphenyls ("PCB's"), (b) any chemicals or other materials or
substances that are now or hereafter become defined as or included in the
definition of "hazardous substances", "hazardous wastes", "hazardous materials",
"extremely hazardous wastes", "restricted hazardous wastes", "toxic substances",
"toxic pollutants", "contaminants", "pollutants" or words of similar import
under any Environmental Law and (c) any other chemical or other material or
substance, exposure to which is now or hereafter prohibited, limited or
regulated under any Environmental Law.
"Hedging Agreement" means any interest rate protection agreement, foreign
currency exchange agreement, commodity price protection agreement or other
interest or currency exchange rate or commodity price hedging arrangement. For
purposes hereof, the "credit exposure" at any time of any Person under an
Hedging Agreement to which such Person is a party shall be determined at such
time in accordance with the standard methods of calculating credit exposure
under similar arrangements as prescribed from time to time by the Administrative
Agent, taking into account potential interest rate movements and the respective
termination provisions and notional principal amount and term of such Hedging
Agreement.
"Inactive Subsidiary" means any Subsidiary of the Borrower that (a) has
aggregate assets with a value not in excess of $5,000 and (b) conducts no
business or other operations.
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"Indebtedness" means, for any Person: (a) obligations created, issued or
incurred by such Person for borrowed money (whether by loan, the issuance and
sale of debt securities or the sale of Property to another Person subject to an
understanding or agreement, contingent or otherwise, to repurchase such Property
from such Person); (b) obligations of such Person to pay the deferred purchase
or acquisition price of Property or services, other than trade accounts payable
(other than for borrowed money) arising, and accrued expenses incurred, in the
ordinary course of business so long as such trade accounts payable are payable
within 180 days of the date the respective goods are delivered or the respective
services are rendered; (c) Indebtedness of others secured by a Lien on the
Property of such Person, whether or not the respective indebtedness so secured
has been assumed by such Person; (d) obligations of such Person in respect of
letters of credit or similar instruments issued or accepted by banks and other
financial institutions for account of such Person; (e) Capital Lease Obligations
of such Person; and (f) Indebtedness of others Guaranteed by such Person. The
Indebtedness of any Person shall include the Indebtedness of any partnership in
which such Person is a general partner to the extent such Indebtedness is
recourse, provided that if such Person's liability for such Indebtedness is
contractually limited, only such Person's share thereof shall be so included.
Anything herein to the contrary notwithstanding, obligations under Hedging
Agreements shall not constitute Indebtedness.
"Information Memorandum" means the Confidential Information Memorandum
prepared by the Borrower in connection with the syndication of the Commitments
provided hereunder.
"Initial Acquisitions" means, collectively, the Concord Acquisition, the
Elitch Gardens Acquisition, the FRE Acquisition and the Great Escape
Acquisition.
"Interest Coverage Ratio" means, as at any date, the ratio of (a) EBITDA
for the period of four consecutive fiscal quarters ending on or most recently
ended prior to such date to (b) Interest Expense for such period.
"Interest Expense" 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 interest in respect of
Indebtedness (including, without limitation, the interest component of any
payments in respect of Capital Lease Obligations but excluding any capitalized
financing fees paid during such period that are to be charged to future periods)
accrued or capitalized during
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such period (whether or not actually paid during such period) plus (b) the net
amount payable (or minus the net amount receivable) under Hedging Agreements
during such period (whether or not actually paid or received during such
period).
Notwithstanding the foregoing, if during any period for which Interest
Expense is being determined the Borrower shall have consummated any Acquisition
or Disposition then, for all purposes of this Agreement (other than for purposes
of the definition of Excess Cash Flow), Interest Expense shall be determined on
a pro forma basis as if such Acquisition or Disposition (and any Indebtedness
incurred by the Borrower or any of its Subsidiaries in connection with such
Acquisition or repaid as a result of such Disposition) had been made or
consummated (and such Indebtedness incurred or repaid) on the first day of such
period and as if the interest rate applicable to any incremental Indebtedness of
the Borrower and its Subsidiaries is equal to the interest rate applicable to
Indebtedness of the Borrower and its Subsidiaries in fact outstanding during
such period.
"Interest Period" means, for any Eurodollar Loan, each period commencing on
the date such Eurodollar Loan is made or Converted from a Loan of another Type
or (in the event of a Continuation) the last day of the next preceding Interest
Period for such Loan and (subject to the provisions of Section 2.01(d)) ending
on the numerically corresponding day in the first, second, third or sixth
calendar month thereafter (or such shorter periods as, prior to the date
referred to in Section 2.01(d), shall be agreed to by each Lender), as the
Borrower may select as provided in Section 4.05, except that each Interest
Period that commences on the last Business Day of a calendar month (or on any
day for which there is no numerically corresponding day in the appropriate
subsequent calendar month) shall (unless each of the Lenders shall otherwise
agree) end on the last Business Day of the appropriate subsequent calendar
month. Notwithstanding the foregoing:
(i) no Interest Period for any Revolving Credit Loan may commence
before and end after any Revolving Credit Commitment Reduction Date unless,
after giving effect thereto, the aggregate principal amount of Revolving
Credit Loans having Interest Periods that end after such Revolving Credit
Commitment Reduction Date shall be equal to or less than the aggregate
principal amount of Revolving Credit Loans scheduled to be outstanding
after giving effect to the payments of principal required to be made on
such Revolving Credit Commitment Reduction Date;
Credit Agreement
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(ii) no Interest Period for any Facility A Term Loan may commence
before and end after any Principal Payment Date unless, after giving effect
thereto, the aggregate principal amount of the Facility A Term Loans having
Interest Periods that end after such Principal Payment Date shall be equal
to or less than the aggregate principal amount of the Facility A Term Loans
scheduled to be outstanding after giving effect to the payments of
principal required to be made on such Principal Payment Date;
(iii) no Interest Period for any Facility B Term Loan may commence
before and end after any Principal Payment Date unless, after giving effect
thereto, the aggregate principal amount of the Facility B Term Loans having
Interest Periods that end after such Principal Payment Date shall be equal
to or less than the aggregate principal amount of the Facility B Term Loans
scheduled to be outstanding after giving effect to the payments of
principal required to be made on such Principal Payment Date;
(iv) each Interest Period that would otherwise end on a day that is
not a Business Day shall end on the next succeeding Business Day (or, if
such next succeeding Business Day falls in the next succeeding calendar
month, on the next preceding Business Day); and
(v) notwithstanding clauses (i), (ii) and (iii) above, no Interest
Period shall (except as otherwise provided in the first sentence of this
definition) have a duration of less than one month and, if the Interest
Period for any Eurodollar Loan would otherwise be a shorter period, such
Loan shall not be available hereunder for such period.
"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 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 stated term not exceeding 90 days arising in connection with the sale of
inventory, supplies or patron services by such Person in the
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ordinary course of business, and excluding also any deposit made by such Person
as an advance payment in respect of a Capital Expenditure (to the extent the
making of such Capital Expenditure will not result in a violation of any of the
provisions of Section 9.10); (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) the entering into of any Hedging Agreement.
"Issuing Lender" means LCPI as the issuer of Letters of Credit under
Section 2.03, together with its successors and assigns in such capacity.
"LCPI" means Xxxxxx Commercial Paper Inc., a Delaware corporation.
"Lease" means, collectively, the California Leases and the Wyandot Lease.
"Letter of Credit" has the meaning assigned to such term in Section 2.03.
"Letter of Credit Documents" means, with respect to any Letter of Credit,
collectively, any application therefor and any other agreements, instruments,
guarantees or other documents (whether general in application or applicable only
to such Letter of Credit) governing or providing for (a) the rights and
obligations of the parties concerned or at risk with respect to such Letter of
Credit or (b) any collateral security for any of such obligations, each as the
same may be modified and supplemented and in effect from time to time.
"Letter of Credit Interest" means, for each Revolving Credit Lender, such
Lender's participation interest (or, in the case of the Issuing Lender, the
Issuing Lender's retained interest) in the Issuing Lender's liability under
Letters of Credit and such Lender's rights and interests in Reimbursement
Obligations and fees, interest and other amounts payable in connection with
Letters of Credit and Reimbursement Obligations.
"Letter of Credit Liability" means, without duplication, at any time and in
respect of any Letter of Credit, the sum of (a) the undrawn face amount of such
Letter of Credit plus (b) the aggregate unpaid principal amount of all
Reimbursement Obligations of the Borrower at such time due and payable in
respect of all drawings made under such Letter of Credit. For purposes of this
Agreement, a Revolving Credit
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Lender (other than the Issuing Lender) shall be deemed to hold a Letter of
Credit Liability in an amount equal to its participation interest in the related
Letter of Credit under Section 2.03, and the Issuing Lender shall be deemed to
hold a Letter of Credit Liability in an amount equal to its retained interest in
the related Letter of Credit after giving effect to the acquisition by the
Revolving Credit Lenders other than the Issuing Lender of their participation
interests under said Section 2.03.
"Leverage Ratio" means, as at any date, the ratio of (a) Total Debt as at
such date to (b) EBITDA for the period of four consecutive fiscal quarters
ending on, or most recently ended prior to such date.
"Lien" means, with respect to any Property, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such
Property. For purposes of this Agreement and the other Loan Documents, a Person
shall be deemed to own subject to a Lien any Property that it has acquired or
holds subject to the interest of a vendor or lessor under any conditional sale
agreement, capital lease or other title retention agreement (other than an
operating lease) relating to such Property.
"Loan Documents" means, collectively, this Agreement, the Notes, the Letter
of Credit Documents and the Security Documents.
"Loans" means, collectively, the Revolving Credit Loans, the Facility A
Term Loans and the Facility B Term Loans.
"Majority Facility A Lenders" means, at any time, Facility A Lenders having
at least 51% of the aggregate amount of the Facility A Term Loan Commitments at
such time (or, if the Facility A Term Loan Commitments shall have terminated,
Lenders holding at least 51% of the aggregate unpaid principal amount of the
Facility A Term Loans at such time).
"Majority Facility B Lenders" means, at any time, Facility B Lenders having
at least 51% of the aggregate amount of the Facility B Term Loan Commitments at
such time (or, if the Facility B Term Loan Commitments shall have terminated,
Lenders holding at least 51% of the aggregate unpaid principal amount of the
Facility B Term Loans at such time).
"Majority Lenders" means, at any time, Lenders having at least 51% of the
sum of (a) the aggregate amount of the
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Revolving Credit Commitments at such time (or, if the Revolving Credit
Commitments shall have terminated, the sum of (i) the aggregate unpaid principal
amount of the Revolving Credit Loans at such time plus (ii) the aggregate amount
of all Letter of Credit Liabilities at such time) plus (b) the aggregate amount
of the Facility A Term Loan Commitments at such time (or, if the Facility A Term
Loan Commitments shall have terminated, the aggregate unpaid principal amount of
the Facility A Term Loans at such time) plus (c) the aggregate amount of the
Facility B Term Loan Commitments at such time (or, if the Facility B Term Loan
Commitments shall have terminated, the aggregate unpaid principal amount of the
Facility B Term Loans at such time).
"Majority Revolving Credit Lenders" means, at any time, Revolving Credit
Lenders having at least 51% of the aggregate amount of the Revolving Credit
Commitments at such time (or, if the Revolving Credit Commitments shall have
terminated, Lenders holding at least 51% of the sum of (a) the aggregate unpaid
principal amount of the Revolving Credit Loans plus (b) the aggregate amount of
all Letter of Credit Liabilities.
"Margin Stock" means "margin stock" within the meaning of Regulations G, T,
U and X.
"Material Adverse Effect" means a material adverse effect on (a) the
Property, business, operations, financial condition, prospects, liabilities or
capitalization of the Borrower and its Subsidiaries taken as a whole, (b) the
validity or enforceability of any of the Loan Documents, (c) the rights and
remedies of the Lenders and the Administrative Agent under any of the Loan
Documents or (d) the timely payment of the principal of or interest on the
Loans, Reimbursement Obligations or other amounts payable in connection
therewith.
"Mortgages" means, collectively, one or more assignments of lease,
mortgages, deeds of trust, deeds to secure debt and similar instruments executed
by the Borrower in favor of the Administrative Agent (or a trustee for the
benefit of the Administrative Agent), in each case in such form as shall be
satisfactory to the Administrative Agent, which instruments shall either (a)
cover real property or equipment acquired in a Capital Transaction after the
date hereof with the proceeds of any Sub- Series of Facility A or Facility B
Term Loans and constitute collateral security for the obligations of the
Borrower hereunder in respect of such Sub-Series of Loans or (b) cover real
property of the Borrower and its Subsidiaries now owned or hereafter acquired
and constitute collateral security for the obligations of the Obligors hereunder
in respect of Revolving Credit Loans
Credit Agreement
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(or, to the extent permitted under Section 9.15(e), constitute collateral
security for the other obligations of the Obligors hereunder).
"Multiemployer Plan" means a multiemployer plan defined as such in Section
3(37) of ERISA to which contributions have been made by the Borrower or any
ERISA Affiliate and that is covered by Title IV of ERISA.
"Net Available Proceeds" means:
(i) in the case of any Disposition, the amount of Net Cash Payments
received in connection with such Disposition;
(ii) in the case of any Casualty Event, the aggregate amount of
proceeds of insurance, condemnation awards and other compensation received
by the Borrower and its Subsidiaries in respect of such Casualty Event net
of (A) reasonable expenses incurred by the Borrower and its Subsidiaries in
connection therewith and (B) contractually- required repayments of
Indebtedness consisting of Capital Lease Obligations in existence on the
date hereof and covering the respective Property that is the subject of
such Casualty Event, and any income and transfer taxes payable by the
Borrower or any of its Subsidiaries in respect of such Casualty Event; and
(iii) in the case of any Debt Issuance, the aggregate amount of all
cash received by the Borrower and its Subsidiaries in respect of such Debt
Issuance net of reasonable expenses incurred by the Borrower and its
Subsidiaries in connection therewith.
"Net Cash Payments" means, with respect to any Disposition, the aggregate
amount of all cash payments received by the Borrower and its Subsidiaries
directly or indirectly in connection with such Disposition, whether at the time
of such Disposition or after such Disposition under deferred payment
arrangements or Investments entered into or received in connection with such
Disposition (including, without limitation, Disposition Investments); provided
that
(a) Net Cash Payments shall be net of (i) the amount of any legal,
title, transfer and recording tax expenses, commissions and other fees and
expenses payable by the Borrower and its Subsidiaries in connection with
such Disposition and (ii) any Federal, state and local income or
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other taxes estimated to be payable by the Borrower and its Subsidiaries as
a result of such Disposition, but only to the extent that on the date of
such Disposition the Borrower delivers a certificate of a senior financial
officer of the Borrower setting forth a calculation of the amount of such
estimated taxes; and
(b) Net Cash Payments shall be net of any contractually-required
repayments of Indebtedness consisting of Capital Lease Obligations in
existence on the date hereof and covering the respective Property that is
the subject of such Disposition.
"New Senior Notes" means Indebtedness of the Borrower evidenced by notes
issued after the date hereof in accordance with the provisions of Section
9.07(e) that constitute senior Indebtedness of the Borrower (i.e. do not
constitute Subordinated Indebtedness).
"1995 Senior Notes" means the 12% Senior Notes due 2003 issued by the
Borrower pursuant to the 1995 Senior Notes Indenture.
"1995 Senior Notes Indenture" means the Indenture dated as of August 15,
1995 between the Borrower and The Chase Manhattan Bank (as successor to United
States Trust Company of New York), as trustee, as the same has heretofore been
modified pursuant to a Supplement No. 1 dated as of November 9, 1995, and as the
same shall, subject to Section 9.16, be further modified and supplemented and in
effect from time to time.
"Notes" means, collectively, the Revolving Credit Notes, the Facility A
Term Loan Notes and the Facility B Term Loan Notes.
"Park" means, collectively, the Existing Parks and any other amusement or
attraction park acquired by any of the Obligors after the date hereof.
"Park Level EBITDA" means, for any period for any Park, the sum, for such
Park (determined on a consolidated basis without duplication in accordance with
GAAP), of the following, in each case determined before interest income or
expense and extraordinary or unusual items (and excluding all barter and trade
transactions): (a) operating income (or loss) of such Park for such period, plus
(b) depreciation, amortization and other non-cash charges (to the extent
deducted in determining operating income) of such Park for such period plus (c)
in the case of any
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Park acquired pursuant to an Initial Acquisition, the respective amounts for
such Park set forth in Schedule VII opposite the last day of such period.
"Park Level Leverage Ratio" means, as at any date for any particular Park,
the ratio of (a) Park Level Secured Debt for such Park as at such date to (b)
Park Level EBITDA for the period of four consecutive fiscal quarters ending on,
or most recently ended prior to such date.
"Park Level Secured Debt" means, in respect of any Park, all Indebtedness
(including, if applicable, Facility A and Facility B Term Loans hereunder)
secured by a Lien on real property or equipment of such Park.
"PBGC" means the Pension Benefit Guaranty Corporation or any entity
succeeding to any or all of its functions under ERISA.
"Permitted Holders" means Hanseatic Corporation, Xxxxxx X. Xxxxxxx, Xxxxxxx
X. Xxxxxxx, Xxxx Xxxxxx and each of their respective Affiliates.
"Permitted Investments" means: (a) direct obligations of the United States
of America, or of any agency thereof, or obligations guaranteed as to principal
and interest by the United States of America, or of any agency thereof, in
either case maturing not more than one year from the date of acquisition
thereof; (b) certificates of deposit, time deposits and money market deposit
accounts issued by any bank or trust company organized under the laws of the
United States of America or any state thereof and having capital, surplus and
undivided profits of at least $500,000,000, maturing not more than one year from
the date of acquisition thereof; (c) commercial paper rated A-1 or better or P-1
by Standard & Poor's Ratings Services, a Division of The XxXxxx-Xxxx Companies,
Inc., or Xxxxx'x Investors Services, Inc., respectively, maturing not more than
one year from the date of acquisition thereof; and (d) fully collateralized
repurchase agreements with a term of not more than one year for securities
described in clause (a) above and entered into with a financial institution
satisfying the criteria described in clause (b) above; in each case so long as
the same (x) provide for the payment of principal and interest (and not
principal alone or interest alone) and (y) are not subject to any contingency
regarding the payment of principal or interest.
"Permitted Reinvestment Transaction" means either (a) an acquisition
permitted under Section 9.05(d)(iv) or a Capital
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Expenditure permitted under Section 9.05(b), or (b) a reimbursement of the
Borrower for monies expended by the Borrower within the previous 180 days with
respect to any such acquisition or Capital Expenditure.
"Person" means any individual, corporation, company, voluntary association,
partnership, limited liability company, joint venture, trust, unincorporated
organization or government (or any agency, instrumentality or political
subdivision thereof).
"Plan" means an employee benefit or other plan established or maintained by
the Borrower or any ERISA Affiliate and that is covered by Title IV of ERISA,
other than a Multiemployer Plan.
"Post-Default Rate" means a rate per annum equal to 2% plus the Base Rate
as in effect from time to time plus the Applicable Margin for Base Rate Loans,
provided that, with respect to principal of a Eurodollar Loan that shall become
due (whether at stated maturity, by acceleration, by optional or mandatory
prepayment or otherwise) on a day other than the last day of the Interest Period
therefor, the "Post-Default Rate" shall be, for the period from and including
such due date to but excluding the last day of such Interest Period, 2% plus the
interest rate for such Loan as provided in Section 3.02(b) and, thereafter, the
rate provided for above in this definition.
"Prime Rate" means the rate of interest from time to time announced by
Citibank, N.A., at its principal office as its "base lending rate" of interest.
"Principal Payment Dates" means the Quarterly Dates falling on or nearest
to January 31, April 30, July 31 and October 31 of each year, commencing with
July 31, 1998, through and including October 31, 2001.
"Property" means any right or interest in or to property of any kind
whatsoever, whether real, personal or mixed and whether tangible or intangible.
"Qualified Preferred Stock" means shares of preferred stock issued by the
Borrower after the date hereof that does not require the Borrower or any of its
Subsidiaries to make mandatory payments of cash dividends unless the Borrower
may, at its option, elect to make such payments by issuing additional shares of
such preferred stock (or by having the amount of such payments be added to the
stated liquidation value, conversion price or
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optional redemption price of such preferred stock and not be paid in cash).
"Quarterly Dates" means the last Business Day of January, April, July and
October in each year, the first of which shall be the first such day after the
date hereof.
"Regulations A, D, G, T, U and X" means, respectively, Regulations A, D, G,
T, U and X of the Board of Governors of the Federal Reserve System (or any
successor), as the same may be modified and supplemented and in effect from time
to time.
"Regulatory Change" means, with respect to any Lender, any change after the
date hereof in Federal, state or foreign law or regulations (including, without
limitation, Regulation D) or the adoption or making after such date of any
interpretation, directive or request applying to a class of banks including such
Lender of or under any Federal, state or foreign law or regulations (whether or
not having the force of law and whether or not failure to comply therewith would
be unlawful) by any court or governmental or monetary authority charged with the
interpretation or administration thereof.
"Reimbursement Obligations" means, at any time, the obligations of the
Borrower then outstanding, or that may thereafter arise in respect of all
Letters of Credit then outstanding, to reimburse amounts paid by the Issuing
Lender in respect of any drawings under a Letter of Credit.
"Release" means any release, spill, emission, leaking, pumping, injection,
deposit, disposal, discharge, dispersal, leaching or migration into the indoor
or outdoor environment, including, without limitation, the movement of Hazardous
Materials through ambient air, soil, surface water, ground water, wetlands, land
or subsurface strata.
"Reserve Requirement" means, for any Interest Period for any Eurodollar
Loan, the average maximum rate at which reserves (including, without limitation,
any marginal, supplemental or emergency reserves) are required to be maintained
during such Interest Period under Regulation D by member banks of the Federal
Reserve System in New York City with deposits exceeding one billion Dollars
against "Eurocurrency liabilities" (as such term is used in Regulation D).
Without limiting the effect of the foregoing, the Reserve Requirement shall
include any other reserves required to be maintained by such member banks by
reason of any Regulatory Change with respect to (i) any category of liabilities
that includes deposits by reference to
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which the Eurodollar Base Rate for any Interest Period for any Eurodollar Loans
is to be determined as provided in the definition of "Eurodollar Base Rate" in
this Section 1.01 or (ii) any category of extensions of credit or other assets
that includes Eurodollar Loans.
"Reserved Commitment Amount" has the meaning assigned to such term in
Section 2.01(a).
"Restricted Payment" means dividends (in cash, Property or obligations) on,
or other payments or distributions on account of, or the setting apart of money
for a sinking or other analogous fund for, or the purchase, redemption,
retirement or other acquisition of, any shares of any class of stock of the
Borrower or of any warrants, options or other rights to acquire the same (or to
make any payments to any Person, such as "phantom stock" payments, where the
amount thereof is calculated with reference to the fair market or equity value
of the Borrower or any of its Subsidiaries), but excluding dividends payable
solely in shares of common stock of the Borrower and dividends on shares of
Qualified Preferred Stock payable in additional shares of Qualified Preferred
Stock.
"Revolving Credit Lenders" means (a) on the date hereof, the Lenders having
Revolving Credit Commitments on the signature pages hereof and (b) thereafter,
the Lenders from time to time holding Revolving Credit Loans and Revolving
Credit Commitments after giving effect to any assignments thereof permitted by
Section 12.06(b).
"Revolving Credit Commitment" means, as to each Revolving Credit Lender,
the obligation of such Lender to make Revolving Credit Loans, and to issue or
participate in Letters of Credit pursuant to Section 2.03, in an aggregate
principal or face amount at any one time outstanding up to but not exceeding the
amount set forth opposite the name of such Lender on the signature pages hereof
under the caption "Revolving Credit Commitment" or, in the case of a Person that
becomes a Revolving Credit Lender pursuant to an assignment permitted under
Section 12.06(b), as specified in the respective instrument of assignment
pursuant to which such assignment is effected (in each case as the same may be
reduced or increased pursuant to an assignment permitted under Section 12.06(b),
or reduced from time to time pursuant to Section 2.04 or 2.10). The original
aggregate principal amount of the Revolving Credit Commitments is $30,000,000.
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"Revolving Credit Commitment Percentage" means, with respect to any
Revolving Credit Lender, the ratio of (a) the amount of the Revolving Credit
Commitment of such Lender to (b) the aggregate amount of the Revolving Credit
Commitments of all of the Lenders.
"Revolving Credit Commitment Reduction Dates" means, collectively, (a) the
Quarterly Date falling on or nearest to October 31, 2001, and (b) the Revolving
Credit Commitment Termination Date.
"Revolving Credit Commitment Termination Date" means the Quarterly Date
falling on or nearest to October 31, 2002.
"Revolving Credit Loans" means the loans provided for in Section 2.01(a),
which may be Base Rate Loans and/or Eurodollar Loans.
"Revolving Credit Notes" means the promissory notes provided for by Section
2.08(a) and all promissory notes delivered in substitution or exchange therefor,
in each case as the same shall be modified and supplemented and in effect from
time to time.
"Revolving Credit Security Agreement" means a Security Agreement
substantially in the form of Exhibit B-1 between the Obligors and the
Administrative Agent, covering all tangible and intangible personal Property of
the Obligors either owned on the date hereof or acquired after the date hereof
as collateral security for the obligations of the Obligors hereunder in respect
of the Revolving Credit Loans, as said Security Agreement shall be modified and
supplemented and in effect from time to time, provided that any such collateral
security on Property or equipment acquired in a Capital Transaction in whole or
in part with the proceeds of Facility A or Facility B Term Loans, shall be
junior to the respective security interest in such Property or equipment
securing such Term Loans pursuant to the respective Equipment Security Agreement
executed and delivered in connection with the making of such Term Loans.
"Security Documents" means, collectively, the Revolving Credit Security
Agreement, each Equipment Security Agreement, each Mortgage and all Uniform
Commercial Code financing statements required by any of such instruments to be
filed with respect to the security interests in personal Property and fixtures
created pursuant thereto.
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"Subordinated Indebtedness" means Indebtedness of the Borrower incurred in
accordance with Section 9.11.
"Subsequent Acquisition Agreements" means each agreement pursuant to which
a Subsequent Acquisition shall be consummated, as the same shall, subject to
Section 9.16, be modified and supplemented and in effect from time to time.
"Subsequent Acquisitions" means any acquisition permitted under Section
9.05(d)(iv).
"Sub-Series" has the meaning assigned to such term in Section 1.03.
"Subsidiary" means, with respect to any Person, any corporation,
partnership, limited liability company or other entity of which at least a
majority of the securities or other ownership interests having by the terms
thereof ordinary voting power to elect a majority of the board of directors or
other persons performing similar functions of such corporation, partnership or
other entity (irrespective of whether or not at the time securities or other
ownership interests of any other class or classes of such corporation,
partnership or other entity shall have or might have voting power by reason of
the happening of any contingency) is at the time directly or indirectly owned or
controlled by such Person or one or more Subsidiaries of such Person or by such
Person and one or more Subsidiaries of such Person.
"Term Loan Commitment Termination Date" means the Quarterly Date falling on
or nearest to April 30, 1998.
"Term Loans" means, collectively, the Facility A Term Loans and the
Facility B Term Loans.
"Total Debt" means, as at any date, the aggregate amount of all
Indebtedness of the Borrower and its Subsidiaries at such date (determined on a
consolidated basis without duplication in accordance with GAAP).
"Type" has the meaning assigned to such term in Section 1.03.
"Wholly Owned Subsidiary" means, with respect to any Person, any
corporation, partnership, limited liability company or other entity of which all
of the equity securities or other ownership interests (other than, in the case
of a corporation, directors' qualifying shares) are directly or indirectly owned
or
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controlled by such Person or one or more Wholly Owned Subsidiaries of such
Person or by such Person and one or more Wholly Owned Subsidiaries of such
Person.
"Wyandot Lease" means the Management Agreement and Agreement for Use and
Occupancy of an Amusement Park, and a Proposed Water Park, and the Occupancy and
Use of Real and Personal Property, dated November 10, 1983 between Columbus
Zoological Park Association, Funtime, Inc. and Darien Lake Theme Park and
Camping Resort, Inc. (as successor to Darien Lake Fun Country, Inc.), as the
same shall, subject to Section 9.16, be modified and supplemented and in effect
from time to time.
1.02 Accounting Terms and Determinations.
(a) Except as otherwise expressly provided herein, all accounting terms
used herein shall be interpreted, and all financial statements and certificates
and reports as to financial matters required to be delivered to the Lenders
hereunder shall (unless otherwise disclosed to the Lenders in writing at the
time of delivery thereof in the manner described in paragraph (b) of this
Section 1.02) be prepared, in accordance with generally accepted accounting
principles applied on a basis consistent with those used in the preparation of
the latest financial statements furnished to the Lenders hereunder (which, prior
to the delivery of the first financial statements under Section 9.01, means the
audited financial statements as at December 31, 1995 referred to in Section
8.02). All calculations made for the purposes of determining compliance with
this Agreement shall (except as otherwise expressly provided herein) be made by
application of generally accepted accounting principles applied on a basis
consistent with those used in the preparation of the latest annual or quarterly
financial statements furnished to the Lenders pursuant to Section 9.01 (or,
prior to the delivery of the first financial statements under Section 9.01, used
in the preparation of the audited financial statements as at December 31, 1995
referred to in Section 8.02) unless (i) the Borrower shall have objected to
determining such compliance on such basis at the time of delivery of such
financial statements or (ii) the Majority Lenders shall so object in writing
within 30 days after delivery of such financial statements, in either of which
events such calculations shall be made on a basis consistent with those used in
the preparation of the latest financial statements as to which such objection
shall not have been made (which, if objection is made in respect of the first
financial statements delivered under Section 9.01, means the audited financial
statements referred to in Section 8.02).
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(b) The Borrower shall deliver to the Lenders at the same time as the
delivery of any annual or quarterly financial statement under Section 9.01 (i) a
description in reasonable detail of any material variation between the
application of accounting principles employed in the preparation of such
statement and the application of accounting principles employed in the
preparation of the next preceding annual or quarterly financial statements as to
which no objection has been made in accordance with the last sentence of
paragraph (a) of this Section 1.02 and (ii) reasonable estimates of the
difference between such statements arising as a consequence thereof.
(c) To enable the ready and consistent determination of compliance with the
covenants set forth in Section 9, the Borrower will not change the last day of
its fiscal year from December 31, or the last days of the first three fiscal
quarters in each of its fiscal years from March 31, June 30 and September 30,
respectively.
1.03 Classes and Types of Loans. Loans hereunder are distinguished by
"Class" and by "Type". The "Class" of a Loan (or of a Commitment to make a Loan)
refers to whether such Loan is a Revolving Credit Loan or a Facility A Term Loan
or a Facility B Term Loan, each of which constitutes a Class. The "Sub-Series"
of a Facility A or Facility B Term Loan refers to the Loans of such Class made
on a particular day to finance the acquisition of Property or equipment in a
Capital Transaction as contemplated by Section 9.14. The "Type" of a Loan refers
to whether such Loan is a Base Rate Loan or a Eurodollar Loan, each of which
constitutes a Type. Loans may be identified by both Class and Type.
Section 2. Commitments, Loans, Notes and Prepayments .
2.01 Loans.
(a) Revolving Credit Loans. Each Revolving Credit Lender severally agrees,
on the terms and conditions of this Agreement, to make loans to the Borrower in
Dollars during the period from and including the Closing Date to but not
including the Revolving Credit Commitment Termination Date in an aggregate
principal amount at any one time outstanding up to but not exceeding the amount
of the Revolving Credit Commitment of such Lender as in effect from time to time
(such Loans being herein called "Revolving Credit Loans"), provided that in no
event shall the aggregate outstanding principal amount of all Revolving Credit
Loans, together with the aggregate outstanding amount of
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all Letter of Credit Liabilities, exceed the aggregate amount of the Revolving
Credit Commitments as in effect from time to time. Subject to the terms and
conditions of this Agreement, during such period the Borrower may borrow, repay
and reborrow the amount of the Revolving Credit Commitments by means of Base
Rate Loans and Eurodollar Loans and may Convert Revolving Credit Loans of one
Type into Revolving Credit Loans of another Type (as provided in Section 2.09)
or Continue Revolving Credit Loans of one Type as Revolving Credit Loans of the
same Type (as provided in Section 2.09).
Proceeds of Revolving Credit Loans shall be available for any use permitted
under Section 9.14(a), provided that, in the event that, as contemplated by
Section 2.10(d), the Borrower shall prepay Revolving Credit Loans from the
proceeds of a Disposition hereunder, then an amount of Revolving Credit
Commitments equal to the amount of such prepayment (herein the "Reserved
Commitment Amount") shall be reserved and shall not be available for borrowings
hereunder except and to the extent that the proceeds of such borrowings are to
be applied to a Permitted Reinvestment Transaction or to prepay Term Loans
pursuant to Section 2.10(d). The Borrower agrees, upon the occasion of any
borrowing of Revolving Credit Loans hereunder that is to constitute a
utilization of any Reserved Commitment Amount, to advise the Administrative
Agent in writing of such fact at the time of such borrowing, identifying the
portion of such borrowing that is to constitute such utilization and the reduced
Reserved Commitment Amount to be in effect after giving effect to such borrowing
(and the Reserved Commitment Amount shall be automatically reduced at the time
of such borrowing by an amount equal to such portion of such borrowing).
(b) Facility A Term Loans. Each Facility A Lender severally agrees, on the
terms and conditions of this Agreement, to make one or more term loans to the
Borrower in Dollars during the period from and including the Closing Date to and
including the Term Loan Commitment Termination Date in an aggregate principal
amount up to but not exceeding the amount of the Facility A Term Loan Commitment
of such Lender (such Loans being herein called the "Facility A Term Loans").
During such period and thereafter, the Borrower may Convert Facility A Term
Loans of one Type into Facility A Term Loans of another Type (as provided in
Section 2.09) or Continue Facility A Term Loans of one Type as Facility A Term
Loans of the same Type (as provided in Section 2.09).
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Proceeds of Facility A Term Loans shall be available to provide financing
for any Capital Transaction (as permitted under Section 9.14(b)) by the
Borrower.
Upon the making of each Facility A Term Loan hereunder, the Borrower shall
designate such Loan as a "Sub-Series" of Facility A Term Loans hereunder (the
first such Sub-Series being the Facility A-1 Term Loans, the second such
Sub-Series being the Facility A-2 Term Loans, and so forth). It is the intent
hereof, that each Sub-Series of Facility A Term Loans be secured only by the
respective equipment acquired with the proceeds of such Sub- Series of Loans
pursuant to the respective Equipment Security Agreement (and, if applicable,
Mortgage) covering such equipment, and that such Sub-Series not be secured by
any of the collateral security for any other Loan hereunder (including any other
Facility A Term Loan), provided that nothing herein shall prohibit the Borrower
from grouping more than one Sub-Series of Facility A Term Loans together as one
Loan in selecting interest rate options hereunder upon the Conversion and
Continuation of Loans. The Administrative Agent shall maintain a register upon
which all borrowings, Conversions, Continuations, payments and prepayments of
each Sub-Series of Facility A Term Loans is recorded and shall make such
register available to the Borrower or any Lender upon request.
(c) Facility B Term Loans. Each Facility B Lender severally agrees, on the
terms and conditions of this Agreement, to make one or more term loans to the
Borrower in Dollars during the period from and including the Closing Date to and
including the Term Loan Commitment Termination Date in an aggregate principal
amount up to but not exceeding the amount of the Facility B Term Loan Commitment
of such Lender (such Loans being herein called the "Facility B Term Loans").
During such period and thereafter, the Borrower may Convert Facility B Term
Loans of one Type into Facility B Term Loans of another Type (as provided in
Section 2.09) or Continue Facility B Term Loans of one Type as Facility B Term
Loans of the same Type (as provided in Section 2.09).
Proceeds of Facility B Term Loans shall be available to provide financing
for any Capital Transaction (as permitted under Section 9.14(c)) by the
Borrower.
Upon the making of each Facility B Term Loan hereunder, the Borrower shall
designate such Loan as a "Sub-Series" of Facility B Term Loans hereunder (the
first such Sub-Series being the Facility B-1 Term Loans, the second such
Sub-Series being the Facility B-2 Term Loans, and so forth). It is the intent
hereof,
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that each Sub-Series of Facility B Term Loans be secured only by the respective
Property or equipment acquired with the proceeds of such Sub-Series of Loans
pursuant to the respective Equipment Security Agreement (and, if applicable,
Mortgage) covering such Property and equipment, and that such Sub-Series not be
secured by any of the collateral security for any other Loan hereunder
(including any other Facility B Term Loan), provided that nothing herein shall
prohibit the Borrower from grouping more than one Sub-Series of Facility B Term
Loans together as one Loan in selecting interest rate options hereunder upon the
Conversion and Continuation of Loans. The Administrative Agent shall maintain a
register upon which all borrowings, Conversions, Continuations, payments and
prepayments of each Sub-Series of Facility B Term Loans is recorded and shall
make such register available to the Borrower or any Lender upon request.
(d) Limit on Eurodollar Loans. No more than ten separate Interest Periods
in respect of Eurodollar Loans of a Class from each Lender may be outstanding at
any one time, provided that prior to March 31, 1997 (or such earlier date as
shall be agreed to by the Arranger), all Eurodollar Loans of any Class must have
an Interest Period of one month's duration and be coterminous with the Interest
Periods of all other Eurodollar Loans of any Class, and, to the extent that
prior to such date a Eurodollar Loan would not satisfy such conditions, such
Loan shall be made, or Continued as or Converted into, a Base Rate Loan.
2.02 Borrowings. The Borrower shall give the Administrative Agent notice of
each borrowing hereunder as provided in Section 4.05. Not later than 1:00 p.m.
New York time on the date specified for each borrowing hereunder, each Lender
shall make available the amount of the Loan or Loans to be made by it on such
date to the Administrative Agent, at such account at a bank in New York as shall
be designated by the Administrative Agent from time to time, in immediately
available funds, for account of the Borrower. The amount so received by the
Administrative Agent shall, subject to the terms and conditions of this
Agreement, be made available to the Borrower by depositing the same, in
immediately available funds, in an account of the Borrower at a bank in New York
designated by the Borrower from time to time.
2.03 Letters of Credit. Subject to the terms and conditions of this
Agreement, the Revolving Credit Commitments may be utilized, upon the request of
the Borrower in addition to the Revolving Credit Loans provided for by Section
2.01(a), by the issuance by the Issuing Lender of letters of credit
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(collectively, "Letters of Credit") for account of the Borrower or any of its
Subsidiaries (as specified by the Borrower), provided that in no event shall (i)
the aggregate outstanding amount of all Letter of Credit Liabilities, together
with the aggregate outstanding principal amount of the Revolving Credit Loans,
exceed the aggregate amount of the Revolving Credit Commitments as in effect
from time to time, (ii) the outstanding aggregate amount of all Letter of Credit
Liabilities exceed $5,000,000 and (iii) the expiration date of any Letter of
Credit extend beyond the earlier of the Revolving Credit Commitment Termination
Date and the date fifteen months following the issuance of such Letter of
Credit, except that an automatic renewal provision in a Letter of Credit
extending such Letter of Credit (unless notice by the Issuing Lender is
otherwise given) to a date not later than the date fifteen months following the
date of such extension (but not in any event to a date later than the Revolving
Credit Commitment Termination Date), shall be permitted. The following
additional provisions shall apply to Letters of Credit:
(a) The Borrower shall give the Administrative Agent at least five
Business Days' irrevocable prior notice (effective upon receipt) specifying
the Business Day (which shall be no later than 30 days preceding the
Revolving Credit Commitment Termination Date) each Letter of Credit is to
be issued and the account party or parties therefor and describing in
reasonable detail the proposed terms of such Letter of Credit (including
the beneficiary thereof) and the nature of the transactions or obligations
proposed to be supported thereby (including whether such Letter of Credit
is to be a commercial letter of credit or a standby letter of credit). Upon
receipt of any such notice, the Administrative Agent shall advise the
Issuing Lender of the contents thereof.
(b) On each day during the period commencing with the issuance by the
Issuing Lender of any Letter of Credit and until such Letter of Credit
shall have expired or been terminated, the Revolving Credit Commitment of
each Revolving Credit Lender shall be deemed to be utilized for all
purposes of this Agreement in an amount equal to such Lender's Revolving
Credit Commitment Percentage of the then undrawn face amount of such Letter
of Credit. Each Revolving Credit Lender (other than the Issuing Lender)
agrees that, upon the issuance of any Letter of Credit hereunder, it shall
automatically acquire a participation in the Issuing Lender's liability
under such Letter of Credit in an amount equal to such Lender's Revolving
Credit
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Commitment Percentage of such liability, and each Revolving Credit Lender
(other than the Issuing Lender) thereby shall absolutely, unconditionally
and irrevocably assume, as primary obligor and not as surety, and shall be
unconditionally obligated to the Issuing Lender to pay and discharge when
due, its Revolving Credit Commitment Percentage of the Issuing Lender's
liability under such Letter of Credit.
(c) Upon receipt from the beneficiary of any Letter of Credit of any
demand for payment under such Letter of Credit, the Issuing Lender shall
promptly notify the Borrower (through the Administrative Agent) of the
amount to be paid by the Issuing Lender as a result of such demand and the
date on which payment is to be made by the Issuing Lender to such
beneficiary in respect of such demand. Notwithstanding the identity of the
account party of any Letter of Credit, the Borrower hereby unconditionally
agrees to pay and reimburse the Administrative Agent for account of the
Issuing Lender for the amount of each demand for payment under such Letter
of Credit that is in substantial compliance with the provisions of such
Letter of Credit at or prior to the date on which payment is to be made by
the Issuing Lender to the beneficiary thereunder, without presentment,
demand, protest or other formalities of any kind.
(d) Forthwith upon its receipt of a notice referred to in paragraph
(c) of this Section 2.03, the Borrower shall advise the Administrative
Agent whether or not the Borrower intends to borrow hereunder to finance
its obligation to reimburse the Issuing Lender for the amount of the
related demand for payment and, if it does, submit a notice of such
borrowing as provided in Section 4.05.
(e) Each Revolving Credit Lender (other than the Issuing Lender) shall
pay to the Administrative Agent for account of the Issuing Lender at the
Principal Office in Dollars and in immediately available funds, the amount
of such Lender's Revolving Credit Commitment Percentage of any payment
under a Letter of Credit upon notice by the Issuing Lender (through the
Administrative Agent) to such Revolving Credit Lender requesting such
payment and specifying such amount. Each such Revolving Credit Lender's
obligation to make such payment to the Administrative Agent for account of
the Issuing Lender under this paragraph (e), and the Issuing Lender's right
to receive the same, shall be absolute and unconditional and shall not be
affected by any circumstance
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whatsoever, including, without limitation, the failure of any other
Revolving Credit Lender to make its payment under this paragraph (e), the
financial condition of the Borrower (or any other account party), the
existence of any Default or the termination of the Commitments. Each such
payment to the Issuing Lender shall be made without any offset, abatement,
withholding or reduction whatsoever. If any Revolving Credit Lender shall
default in its obligation to make any such payment to the Administrative
Agent for account of the Issuing Lender, for so long as such default shall
continue the Administrative Agent may at the request of the Issuing Lender
withhold from any payments received by the Administrative Agent under this
Agreement or any Note for account of such Revolving Credit Lender the
amount so in default and, to the extent so withheld, pay the same to the
Issuing Lender in satisfaction of such defaulted obligation.
(f) Upon the making of each payment by a Revolving Credit Lender to
the Issuing Lender pursuant to paragraph (e) above in respect of any Letter
of Credit, such Lender shall, automatically and without any further action
on the part of the Administrative Agent, the Issuing Lender or such Lender,
acquire (i) a participation in an amount equal to such payment in the
Reimbursement Obligation owing to the Issuing Lender by the Borrower
hereunder and under the Letter of Credit Documents relating to such Letter
of Credit and (ii) a participation in a percentage equal to such Lender's
Revolving Credit Commitment Percentage in any interest or other amounts
payable by the Borrower hereunder and under such Letter of Credit Documents
in respect of such Reimbursement Obligation (other than the commissions,
charges, costs and expenses payable to the Issuing Lender pursuant to
paragraph (g) of this Section 2.03). Upon receipt by the Issuing Lender
from or for account of the Borrower of any payment in respect of any
Reimbursement Obligation or any such interest or other amount (including by
way of setoff or application of proceeds of any collateral security) the
Issuing Lender shall promptly pay to the Administrative Agent for account
of each Revolving Credit Lender entitled thereto, such Revolving Credit
Lender's Revolving Credit Commitment Percentage of such payment, each such
payment by the Issuing Lender to be made in the same money and funds in
which received by the Issuing Lender. In the event any payment received by
the Issuing Lender and so paid to the Revolving Credit Lenders hereunder is
rescinded or must otherwise be returned by the Issuing Lender, each
Revolving Credit Lender shall, upon the request of the Issuing Lender
(through the Administrative Agent),
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repay to the Issuing Lender (through the Administrative Agent) the amount
of such payment paid to such Lender, with interest at the rate specified in
paragraph (j) of this Section 2.03.
(g) The Borrower shall pay to the Administrative Agent for account of
each Revolving Credit Lender (ratably in accordance with their respective
Commitment Percentages) a letter of credit fee in respect of each Letter of
Credit in an amount per annum equal to the Applicable Rate in respect of
Eurodollar Loans of the daily average undrawn face amount of such Letter of
Credit for the period from and including the date of issuance of such
Letter of Credit (i) in the case of a Letter of Credit that expires in
accordance with its terms, to and including such expiration date and (ii)
in the case of a Letter of Credit that is drawn in full or is otherwise
terminated other than on the stated expiration date of such Letter of
Credit, to but excluding the date such Letter of Credit is drawn in full or
is terminated (such fee to be non-refundable, to be paid in arrears on each
Quarterly Date and on the Revolving Credit Commitment Termination Date and
to be calculated for any day after giving effect to any payments made under
such Letter of Credit on such day).
In addition, the Borrower shall pay to the Administrative Agent for
account of the Issuing Lender a fronting fee in respect of each Letter of
Credit in an amount equal to 1/4 of 1% per annum of the daily average
undrawn face amount of such Letter of Credit for the period from and
including the date of issuance of such Letter of Credit (i) in the case of
a Letter of Credit that expires in accordance with its terms, to and
including such expiration date and (ii) in the case of a Letter of Credit
that is drawn in full or is otherwise terminated other than on the stated
expiration date of such Letter of Credit, to but excluding the date such
Letter of Credit is drawn in full or is terminated (such fee to be
non-refundable, to be paid in arrears on each Quarterly Date and on the
Revolving Credit Commitment Termination Date and to be calculated for any
day after giving effect to any payments made under such Letter of Credit on
such day) plus all commissions, charges, costs and expenses in the amounts
customarily charged by the Issuing Lender from time to time in like
circumstances with respect to the issuance of each Letter of Credit and
drawings and other transactions relating thereto.
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(h) Promptly following the end of each calendar month, the Issuing
Lender shall deliver (through the Administrative Agent) to each Revolving
Credit Lender and the Borrower a notice describing the aggregate amount of
all Letters of Credit outstanding at the end of such month. Upon the
request of any Revolving Credit Lender from time to time, the Issuing
Lender shall deliver any other information reasonably requested by such
Lender with respect to each Letter of Credit then outstanding.
(i) The issuance by the Issuing Lender of each Letter of Credit shall,
in addition to the conditions precedent set forth in Section 7, be subject
to the conditions precedent that (i) such Letter of Credit shall be in such
form, contain such terms and support such transactions as shall be
satisfactory to the Issuing Lender consistent with its then current
practices and procedures with respect to letters of credit of the same type
(except that in no event shall any Letter of Credit provide support for
obligations that would constitute "Indebtedness" under and as defined in
the 1995 Senior Notes Indenture) and (ii) the Borrower shall have executed
and delivered such applications, agreements and other instruments relating
to such Letter of Credit as the Issuing Lender shall have reasonably
requested consistent with its then current practices and procedures with
respect to letters of credit of the same type, provided that in the event
of any conflict between any such application, agreement or other instrument
and the provisions of this Agreement or any Security Document, the
provisions of this Agreement and the Security Documents shall control.
(j) To the extent that any Lender shall fail to pay any amount
required to be paid pursuant to paragraph (e) or (f) of this Section 2.03
on the due date therefor, such Lender shall pay interest to the Issuing
Lender (through the Administrative Agent) on such amount from and including
such due date to but excluding the date such payment is made at a rate per
annum equal to the Federal Funds Rate, provided that if such Lender shall
fail to make such payment to the Issuing Lender within three Business Days
of such due date, then, retroactively to the due date, such Lender shall be
obligated to pay interest on such amount at the Post-Default Rate.
(k) The issuance by the Issuing Lender of any modification or
supplement to any Letter of Credit hereunder shall be subject to the same
conditions applicable under this Section 2.03 to the issuance of new
Letters of Credit,
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and no such modification or supplement shall be issued hereunder unless
either (i) the respective Letter of Credit affected thereby would have
complied with such conditions had it originally been issued hereunder in
such modified or supplemented form or (ii) each Revolving Credit Lender
shall have consented thereto.
The Borrower hereby indemnifies and holds harmless each Revolving Credit Lender
and the Administrative Agent from and against any and all claims and damages,
losses, liabilities, costs or expenses that such Lender or the Administrative
Agent may incur (or that may be claimed against such Lender or the
Administrative Agent by any Person whatsoever) by reason of or in connection
with the execution and delivery or transfer of or payment or refusal to pay by
the Issuing Lender under any Letter of Credit; provided that the Borrower shall
not be required to indemnify any Lender or the Administrative Agent for any
claims, damages, losses, liabilities, costs or expenses to the extent, but only
to the extent, caused by (x) the willful misconduct or gross negligence of the
Issuing Lender in determining whether a request presented under any Letter of
Credit complied with the terms of such Letter of Credit or (y) in the case of
the Issuing Lender, such Lender's failure to pay under any Letter of Credit
after the presentation to it of a request strictly complying with the terms and
conditions of such Letter of Credit. Nothing in this Section 2.03 is intended to
limit the other obligations of the Borrower, any Lender or the Administrative
Agent under this Agreement.
2.04 Changes of Commitments.
(a) The aggregate amount of the Revolving Credit Commitments shall be
automatically reduced to zero on the Revolving Credit Commitment Termination
Date. In addition, the aggregate amount of the Revolving Credit Commitments
shall (subject to adjustment as provided in paragraph (c) of this Section 2.04)
be automatically reduced to $15,000,000 on the Revolving Credit Commitment
Reduction Date falling on or nearest to October 31, 2001.
(b) The Borrower shall have the right at any time or from time to time (i)
to terminate or reduce the aggregate unutilized amount of the Facility A or
Facility B Term Loan Commitments, (ii) so long as no Revolving Credit Loans or
Letter of Credit Liabilities are outstanding, to terminate the Revolving Credit
Commitments and (iii) to reduce the aggregate unutilized amount of the Revolving
Credit Commitments (for which purpose use of the Revolving Credit Commitments
shall be deemed to include
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the aggregate amount of Letter of Credit Liabilities); provided that (x) the
Borrower shall give notice of each such termination or reduction as provided in
Section 4.05 and (y) each partial reduction of the Commitments of any Class
shall be in an aggregate amount at least equal to $5,000,000 (or a larger
multiple of $1,000,000).
(c) Each reduction in the aggregate amount of the Revolving Credit
Commitments pursuant to Section 2.10 on any date shall result in an automatic
and simultaneous reduction (but not below zero) in the aggregate amount of the
Revolving Credit Commitments to be outstanding on the Revolving Credit
Commitment Reduction Date falling on or nearest to October 31, 2001 as provided
in paragraph (a) of this Section 2.04.
(d) The aggregate amount of the Facility A and Facility B Term Loan
Commitments shall be automatically reduced to zero on the Term Loan Commitment
Termination Date.
(e) The Commitments once terminated or reduced may not be reinstated.
2.05 Commitment Fee. The Borrower shall pay to the Administrative Agent for
account of each Lender a commitment fee on the daily average unutilized amount
of the respective Commitments of such Lender (for which purpose the aggregate
amount of any Letter of Credit Liabilities shall be deemed to be a pro rata,
based on the Revolving Credit Commitments, use of each Lender's Revolving Credit
Commitment), for the period from and including the date hereof to but not
including the date such Commitment is terminated, at a rate per annum equal to
the Applicable Rate. Accrued commitment fee shall be payable on each Quarterly
Date and on the date the relevant Commitments are terminated.
2.06 Lending Offices. The Loans of each Type made by each Lender shall be
made and maintained at such Lender's Applicable Lending Office for Loans of such
Type.
2.07 Several Obligations; Remedies Independent. The failure of any Lender
to make any Loan to be made by it on the date specified therefor shall not
relieve any other Lender of its obligation to make its Loan on such date, but
neither any Lender nor the Administrative Agent shall be responsible for the
failure of any other Lender to make a Loan to be made by such other Lender, and
(except as otherwise provided in Section 4.06) no Lender shall have any
obligation to the Administrative Agent or any other Lender for the failure by
such Lender to make any Loan
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required to be made by such Lender. The amounts payable by the Borrower at any
time hereunder and under the Notes to each Lender shall be a separate and
independent debt and each Lender shall be entitled to protect and enforce its
rights arising out of this Agreement and the Notes, and it shall not be
necessary for any other Lender or the Administrative Agent to consent to, or be
joined as an additional party in, any proceedings for such purposes.
2.08 Notes.
(a) The Revolving Credit Loans made by each Lender shall be evidenced by a
single promissory note of the Borrower substantially in the form of Exhibit A-1,
dated the date hereof, payable to such Lender in a principal amount equal to the
amount of its Revolving Credit Commitment as originally in effect and otherwise
duly completed.
(b) The Facility A Term Loans made by each Lender shall be evidenced by a
single promissory note of the Borrower substantially in the form of Exhibit A-2,
dated the date hereof, payable to such Lender in a principal amount equal to its
Facility A Term Loan Commitment as originally in effect and otherwise duly
completed.
(c) The Facility B Term Loans made by each Lender shall be evidenced by a
single promissory note of the Borrower substantially in the form of Exhibit A-3,
dated the date hereof, payable to such Lender in a principal amount equal to its
Facility B Term Loan Commitment as originally in effect and otherwise duly
completed.
(d) The date, amount, Type, interest rate and duration of Interest Period
(if applicable) of each Loan of each Class made by each Lender to the Borrower,
and each payment made on account of the principal thereof, shall be recorded by
such Lender on its books and, prior to any transfer of the Note evidencing the
Loans of such Class held by it, endorsed by such Lender on the schedule attached
to such Note or any continuation thereof; provided that the failure of such
Lender to make any such recordation or endorsement shall not affect the
obligations of the Borrower to make a payment when due of any amount owing
hereunder or under such Note in respect of such Loans.
(e) No Lender shall be entitled to have its Notes substituted or exchanged
for any reason, or subdivided for promissory notes of lesser denominations,
except in connection with a permitted assignment of all or any portion of such
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Lender's relevant Commitment, Loans and Notes pursuant to Section 12.06 (and, if
requested by any Lender, the Borrower agrees to so exchange any Note).
2.09 Optional Prepayments and Conversions or Continuations of Loans.
Subject to Section 4.04, the Borrower shall have the right to prepay Loans, or
to Convert Loans of one Type into Loans of another Type or Continue Loans of one
Type as Loans of the same Type, at any time or from time to time, provided that:
(a) the Borrower shall give the Administrative Agent notice of each
such prepayment, Conversion or Continuation as provided in Section 4.05
(and, upon the date specified in any such notice of prepayment, the amount
to be prepaid shall become due and payable hereunder);
(b) upon any prepayment of Eurodollar Loans other than on the last day
of an Interest Period for such Loans, the Borrower shall pay any amounts
owing under Section 5.05 as a result of such prepayment;
(c) prepayments of the Term Loans shall be applied to the Facility A
and Facility B Term Loans ratably in accordance with the respective
then-outstanding aggregate amounts of such Loans (and, as to the Loans of
each such Class, ratably to each Sub-Series of the Loans of such Class in
accordance with the respective then-outstanding aggregate amounts of such
Sub-Series) and, each such prepayment of Facility A and Facility B Term
Loans shall be applied to the installments thereof in the inverse order of
maturity; and
(d) any Conversion into or Continuation of Eurodollar Loans shall be
subject to the provisions of Section 2.01(d).
Notwithstanding the foregoing, and without limiting the rights and remedies of
the Lenders under Section 10, in the event that any Event of Default shall have
occurred and be continuing, the Administrative Agent may (and at the request of
the Majority Lenders shall) suspend the right of the Borrower to Convert any
Loan into a Eurodollar Loan, or to Continue any Loan as a Eurodollar Loan, in
which event all Loans shall be Converted (on the last day(s) of the respective
Interest Periods therefor) into, or Continued as, as the case may be, Base Rate
Loans.
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2.10 Mandatory Prepayments and Reductions of Commitments.
(a) Excess Cash Flow. Not later than the date 90 days after the end of each
fiscal year of the Borrower commencing with Excess Cash Flow for the fiscal year
ending on December 31, 1997, the Borrower shall prepay the Loans (and/or provide
cover for Letter of Credit Liabilities as specified in paragraph (g) below), and
the Commitments shall be subject to automatic reduction, in an aggregate amount
equal to the excess of (A) 50% of Excess Cash Flow for such fiscal year over (B)
the aggregate amount of prepayments of Facility A and Facility B Term Loans made
during such fiscal year pursuant to Section 2.09, provided that no such
prepayment shall be required to the extent that the Leverage Ratio as at the
last day of such fiscal year shall be less than 3.50 to 1. Such prepayment and
reduction shall be effected as follows:
first, to the prepayment of the Facility A and Facility B Term Loans,
ratably in accordance with the respective then-outstanding aggregate
principal amounts thereof (and, to the extent such prepayment shall exceed
the then outstanding aggregate principal amount of the Term Loans and shall
occur prior to the Term Loan Commitment Termination Date, the Facility A
and Facility B Term Loan Commitments shall be concurrently reduced in an
amount equal to the respective amounts of such required prepayments in
respect of such Loans);
second, to the reduction of the Revolving Credit Commitments (and to
the extent that, after giving effect to such reduction, the aggregate
principal or face amount of Revolving Credit Loans and Letter of Credit
Liabilities would exceed the Revolving Credit Commitments, the Borrower
shall, first, prepay Revolving Credit Loans and, second, provide cover for
Letter of Credit Liabilities, in an aggregate amount equal to such excess
(such cover for Letter of Credit Liabilities to be effected in the manner
provided in paragraph (g) below).
Each such prepayment of the Term Loans of any Class shall be applied ratably to
each Sub-Series of the Loans of such Class in accordance with the respective
then-outstanding aggregate amounts of such Sub-Series, and to the installments
thereof in the inverse order of maturity.
(b) Debt Issuance. Upon any Debt Issuance, the Borrower shall prepay the
Facility A and Facility B Term Loans
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(and the Facility A and Facility B Term Loan Commitments shall be subject to
automatic reduction) in an aggregate amount equal to 100% of the Net Available
Proceeds of such Debt Issuance, such prepayment to be applied ratably to the
Term Loans in accordance with the respective then-outstanding aggregate
principal amounts thereof (and, to the extent such prepayment shall exceed the
then outstanding aggregate principal amount of the Term Loans and shall occur
prior to the Term Loan Commitment Termination Date, the Facility A and Facility
B Term Loan Commitments shall be concurrently reduced in an amount equal to the
respective amounts of such required prepayments in respect of such Loans). Each
such prepayment of the Term Loans of any Class shall be applied ratably to each
Sub-Series of the Loans of such Class in accordance with the respective
then-outstanding aggregate amounts of such Sub-Series, and to the installments
thereof in the inverse order of maturity.
(c) Casualty Events. Upon the date 180 days following the receipt by any
Obligor of the proceeds of insurance, condemnation award or other compensation
in respect of any Casualty Event affecting any Property of the Borrower or any
of its Subsidiaries (or upon such earlier date as the Borrower or such
Subsidiary, as the case may be, shall have determined not to repair or replace
the Property affected by such Casualty Event), the Borrower shall prepay the
Facility A and Facility B Term Loans, and the Facility A and Facility B
Commitments shall be subject to automatic reduction, in an aggregate amount, if
any, equal to 100% of the Net Available Proceeds of such Casualty Event not
theretofore applied to the repair or replacement of such Property (or to
reimburse the Borrower or respective Subsidiary for repairing or replacing such
Property), such prepayment and reduction to be effected as follows:
first, to the prepayment of the Sub-Series of Term Loans (if any)
secured by the respective Property that was the subject of such Casualty
Event, to the installments of such Sub-Series in the inverse order of
maturity; and
second, after the prepayment in full of such Sub-Series (or, in the
event such Property was not collateral security for any of the Term Loans),
to the prepayment of the Facility A and Facility B Term Loans ratably in
accordance with the respective then-outstanding aggregate principal amounts
thereof (and, to the extent such prepayment shall exceed the then
outstanding aggregate principal amount of the Term Loans and shall occur
prior to the Term Loan Commitment Termination Date, the Facility A and
Facility B Term Loan Commitments shall be concurrently reduced in an
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amount equal to the respective amounts of such required prepayments in
respect of such Loans), each such prepayment of the Term Loans of any Class
being applied ratably to each Sub-Series of the Loans of such Class in
accordance with the respective then-outstanding aggregate amounts of such
Sub- Series, and to the installments thereof in the inverse order of
maturity.
Notwithstanding the foregoing, the Borrower shall not be required to make any
prepayment under this Section 2.10(c) unless the Net Available Proceeds of a
Casualty Event shall be greater than or equal to $100,000.
Nothing in this paragraph (c) shall be deemed to limit any obligation of
the Borrower or any of its Subsidiaries pursuant to any of the Security
Documents to remit to a collateral or similar account maintained by the
Administrative Agent pursuant to any of the Security Documents the proceeds of
insurance, condemnation award or other compensation received in respect of any
Casualty Event or to obligate the Administrative Agent to release any of such
proceeds from such account to the Borrower for purposes of reinvestment as
aforesaid upon the occurrence and during the continuance of an Event of Default.
(d) Sale of Assets. Without limiting the obligation of the Borrower to
obtain the consent of the Majority Lenders to any Disposition not otherwise
permitted hereunder, the Borrower agrees, on or prior to the occurrence of any
Disposition (herein, the "Current Disposition"), to deliver to the
Administrative Agent a statement certified by a senior financial officer of the
Borrower, in form and detail reasonably satisfactory to the Administrative
Agent, of the estimated amount of the Net Available Proceeds of the Current
Disposition that will (on the date of the Current Disposition) be received in
cash and, to the extent that the Net Available Proceeds of the Current
Disposition, and of all prior Dispositions as to which a prepayment has not yet
been made under this Section 2.10(d), shall exceed $100,000 (or shall exceed
$1,000,000, in the event the Property that is the subject of such Disposition
does not constitute collateral security for any Facility A or Facility B Term
Loan), the Borrower will prepay the Facility A and Facility B Loans hereunder,
and the Facility A and Facility B Term Loan Commitments hereunder shall be
subject to automatic reduction, as follows:
(i) within two days of the Current Disposition, in an aggregate amount
equal to 100% of such estimated amount of the Net Available Proceeds of the
Current Disposition, to
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the extent received in cash on the date of the Current Disposition,
together with 100% of the Net Available Proceeds of all such prior
Dispositions, provided that if the amount of such required prepayment (and
reduction of Commitment) shall exceed $1,000,000, then such prepayment
shall be made on the date of the Current Disposition; and
(ii) thereafter, quarterly, on the date of the delivery by the
Borrower to the Administrative Agent pursuant to Section 9.01(a) of the
financial statements for each quarterly fiscal period or (if earlier) the
date 60 days after the end of such quarterly fiscal period, to the extent
the Borrower or any of its Subsidiaries shall receive Net Available
Proceeds during such quarterly fiscal period in cash under deferred payment
arrangements or Disposition Investments entered into or received in
connection with any Disposition, an amount equal to (A) 100% of the
aggregate amount of such Net Available Proceeds minus (B) any transaction
expenses associated with Dispositions and not previously deducted in the
determination of Net Available Proceeds plus (or minus, as the case may be)
(C) any other adjustment received or paid by the Obligors pursuant to the
respective agreements giving rise to Dispositions and not previously taken
into account in the determination of the Net Available Proceeds of
Dispositions, provided that if prior to the date upon which the Borrower
would otherwise be required to make a prepayment under this clause (ii)
with respect to any quarterly fiscal period the aggregate amount of such
Net Available Proceeds (after giving effect to the adjustments provided for
in this clause (ii)) shall exceed $100,000, then the Borrower shall within
five Business Days make a prepayment under this clause (ii) in an amount
equal to such required prepayment.
Each such prepayment of Term Loans and reductions of Facility A and
Facility B Term Loan Commitments shall be effected as follows:
first, to the prepayment of the Sub-Series of Term Loans (if any)
secured by the respective Property (or Properties) that was (or were) the
subject of such Disposition(s), to the installments of such Sub-Series in
the inverse order of maturity (and if more than one such Sub-Series is so
affected, applied ratably to each such Sub- Series); and
second, after the prepayment in full of such Sub-Series (or, in the
event such Property was not collateral security
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for any of the Term Loans), to the prepayment of the Facility A and
Facility B Term Loans ratably in accordance with the respective
then-outstanding aggregate principal amounts thereof (and, to the extent
such prepayment shall exceed the then outstanding aggregate principal
amount of the Term Loans and shall occur prior to the Term Loan Commitment
Termination Date, the Facility A and Facility B Term Loan Commitments shall
be concurrently reduced in an amount equal to the respective amounts of
such required prepayments in respect of such Loans), each such prepayment
of the Term Loans of any Class being applied ratably to each Sub-Series of
the Loans of such Class in accordance with the respective then-outstanding
aggregate amounts of such Sub- Series, and to the installments thereof in
the inverse order of maturity.
Notwithstanding the foregoing, the Borrower shall not be required to make a
prepayment pursuant to clause second above (but shall be required to make the
prepayment pursuant to clause first above) with respect to the Net Available
Proceeds from any Disposition in the event that the Borrower advises the
Administrative Agent at the time such prepayment is required to be made that it
intends to reinvest such Net Available Proceeds pursuant to a Permitted
Reinvestment Transaction, so long as:
(x) such Net Available Proceeds are either (A) delivered to the
Administrative Agent to be held in the Collateral Account pending such
reinvestment, in which event the Administrative Agent need not release such
Net Available Proceeds except upon presentation of evidence reasonably
satisfactory to it that such Net Available Proceeds are to be so reinvested
in compliance with the provisions of this Agreement or (B) applied by the
Borrower to the prepayment of Revolving Credit Loans hereunder (in which
event the Borrower agrees to advise the Administrative Agent in writing at
the time of such prepayment of Revolving Credit Loans that such prepayment
is being made from the proceeds of a Disposition and that, as contemplated
by the second paragraph of Section 2.01(a), a portion of the Revolving
Credit Commitments equal to the amount of such prepayment gives rise to a
Reserved Commitment Amount that shall be available hereunder only for
purposes of making a Permitted Reinvestment Transaction, and
(y) the Net Available Proceeds from any Disposition are in fact so
reinvested within twelve months of such Disposition (it being understood
that, in the event Net Available Proceeds from more than one Disposition
are
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delivered to the Administrative Agent or applied to the prepayment of
Revolving Credit Loans as provided in clause (x) above, such Net Available
Proceeds shall be deemed to be released (or, as the case may be, Revolving
Credit Loans utilizing the Reserved Commitment Amount shall be deemed to be
made) in the same order in which such Dispositions occurred and,
accordingly, (A) any such Net Cash Payments so held for more than twelve
months shall be forthwith applied to the prepayment of Loans and reductions
of Commitments as provided above and (B) any Reserved Commitment Amount
that remains so unutilized for more than twelve months shall, subject to
the satisfaction of the conditions precedent to such borrowing in Section
5.02, be utilized through the borrowing by the Borrower of Revolving Credit
Loans the proceeds of which shall be applied to the prepayment of Facility
A and Facility B Term Loans and reductions of Facility A and Facility B
Term Loan Commitments as provided in clause second above.
Nothing in this Section 2.10(d) shall be deemed to obligate the Administrative
Agent to release any of such proceeds from the Collateral Account to the
Obligors for purposes of reinvestment as aforesaid upon the occurrence and
during the continuance of any Event of Default.
(e) Revolving Loan Clean-Up. The Borrower will from time to time prepay the
Revolving Credit Loans in such amounts as shall be necessary so that for a
period of at least 30 consecutive days during the period commencing on June 1
and ending on November 1 in each fiscal year, there shall be no Revolving Credit
Loans outstanding hereunder.
(f) Change of Control. In the event that the Borrower shall be required
pursuant to the provisions of any instrument evidencing or governing any
Subordinated Indebtedness to redeem, or make an offer to redeem or repurchase,
all or any portion of such Subordinated Indebtedness as a result of a change of
control (however defined), then, concurrently with the occurrence of the event
giving rise to such change of control, the Borrower shall prepay the Loans
(and/or provide cover for Letter of Credit Liabilities as specified in paragraph
(g) below) in full, and the Commitments shall automatically terminate.
(g) Cover for Letter of Credit Liabilities. In the event that the Borrower
shall be required pursuant to this Section 2.10, or pursuant to Section 3.01(a),
to provide cover for Letter of Credit Liabilities, the Borrower shall effect the
same by paying to the Administrative Agent immediately available
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funds in an amount equal to the required amount, which funds shall be retained
by the Administrative Agent in the Collateral Account (as provided therein as
collateral security in the first instance for the Letter of Credit Liabilities)
until such time as the Letters of Credit shall have been terminated and all of
the Letter of Credit Liabilities paid in full.
Section 3. Payments of Principal and Interest.
3.01 Repayment of Loans.
(a) The Borrower hereby promises to pay to the Administrative Agent for
account of each Lender the entire outstanding principal amount of such Lender's
Revolving Credit Loans, and each Revolving Credit Loan shall mature, on the
Revolving Credit Commitment Termination Date. In addition, if following any
Commitment Reduction Date the aggregate principal amount of the Revolving Credit
Loans, together with the aggregate amount of all Letter of Credit Liabilities,
shall exceed the Revolving Credit Commitments, the Borrower shall, first, pay
Revolving Credit Loans and, second, provide cover for Letter of Credit
Liabilities, in an aggregate amount equal to such excess (such cover for Letter
of Credit Liabilities to be effected in the manner specified in Section
2.10(g)).
(b) Facility A Term Loans. The Borrower hereby promises to pay to the
Administrative Agent for account of the Facility A Lenders the principal of the
Facility A Term Loans in fourteen installments payable on the Principal Payment
Dates as follows (each such payment to be applied ratably to each Sub- Series of
such Loans):
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Principal Payment Date
Falling on or Nearest to: Amount of Installment ($)
------------------------- -------------------------
July 31, 1998 1,250,000
October 31, 1998 1,250,000
January 31, 1999 1,125,000
April 30, 1999 1,125,000
July 31, 1999 1,125,000
October 31, 1999 1,125,000
January 31, 2000 1,875,000
April 30, 2000 1,875,000
July 31, 2000 1,875,000
October 31, 2000 1,875,000
January 31, 2001 2,500,000
April 30, 2001 2,500,000
July 31, 2001 2,500,000
October 31, 2001 2,500,000
If on the close of business on the Term Loan Commitment Termination Date the
aggregate outstanding principal amount of the Facility A Term Loans shall be
less than the aggregate original principal amount of the Facility A Term Loan
Commitments, the shortfall shall be applied to reduce the foregoing installments
ratably.
(c) Facility B Term Loans. The Borrower hereby promises to pay to the
Administrative Agent for account of the Facility B Lenders the principal of the
Facility B Term Loans in fourteen installments payable on the Principal Payment
Dates as follows (each such payment to be applied ratably to each Sub- Series of
such Loans):
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Principal Payment Date
Falling on or Nearest to: Amount of Installment ($)
------------------------- -------------------------
July 31, 1998 2,500,000
October 31, 1998 2,500,000
January 31, 1999 3,750,000
April 30, 1999 3,750,000
July 31, 1999 3,750,000
October 31, 1999 3,750,000
January 31, 2000 4,375,000
April 30, 2000 4,375,000
July 31, 2000 4,375,000
October 31, 2000 4,375,000
January 31, 2001 5,625,000
April 30, 2001 5,625,000
July 31, 2001 5,625,000
October 31, 2001 5,625,000
If on the close of business on the Term Loan Commitment Termination Date the
aggregate outstanding principal amount of the Facility B Term Loans shall be
less than the aggregate original principal amount of the Facility B Term Loan
Commitments, the shortfall shall be applied to reduce the foregoing installments
ratably.
3.02 Interest. The Borrower hereby promises to pay to the Administrative
Agent for account of each Lender interest on the unpaid principal amount of each
Loan made by such Lender to the Borrower for the period from and including the
date of such Loan to but excluding the date such Loan shall be paid in full, at
the following rates per annum:
(a) during such periods as such Loan is a Base Rate Loan, the Base
Rate (as in effect from time to time) plus the Applicable Margin; and
(b) during each Interest Period for such Loan during which such Loan
is a Eurodollar Loan, the Eurodollar Rate for such Interest Period plus the
Applicable Margin.
Notwithstanding the foregoing, the Borrower hereby promises to pay to the
Administrative Agent for account of each Lender interest at the applicable
Post-Default Rate on any principal of any Loan made by such Lender, on any
Reimbursement Obligation held by such Lender and on any other amount payable by
the
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Borrower hereunder or under the Notes held by such Lender to or for account of
such Lender, that shall not be paid in full when due (whether at stated
maturity, by acceleration, by mandatory prepayment or otherwise), for the period
from and including the due date thereof to but excluding the date the same is
paid in full.
Accrued interest on each Loan shall be payable (i) in the case of a Base
Rate Loan, quarterly on the Quarterly Dates, (ii) in the case of a Eurodollar
Loan, on the last day of each Interest Period therefor and, if such Interest
Period is longer than three months, at three-month intervals following the first
day of such Interest Period, and (iii) in the case of any Loan, upon the payment
or prepayment thereof or the Conversion of such Loan to a Loan of another Type
(but only on the principal amount so paid, prepaid or Converted), except that
interest payable at the Post-Default Rate shall be payable from time to time on
demand. Promptly after the determination of any interest rate provided for
herein or any change therein, the Administrative Agent shall give notice thereof
to the Lenders to which such interest is payable and to the Borrower .
Section 4. Payments; Pro Rata Treatment; Computations; Etc.
4.01 Payments.
(a) Except to the extent otherwise provided herein, all payments of
principal, interest, Reimbursement Obligations and other amounts to be made by
the Borrower under this Agreement and the Notes, and, except to the extent
otherwise provided therein, all payments to be made by the Obligors under any
other Loan Document, shall be made in Dollars, in immediately available funds,
without deduction, set-off or counterclaim, to the Administrative Agent, at such
account at a bank in New York as shall be designated by the Administrative Agent
from time to time, in immediately available funds, not later than 12:00 p.m. New
York time on the date on which such payment shall become due (each such payment
made after such time on such due date to be deemed to have been made on the next
succeeding Business Day).
(b) Any Lender for whose account any such payment is to be made may (but
shall not be obligated to) debit the amount of any such payment that is not made
by such time to any ordinary deposit account of the Borrower with such Lender
(with notice to the Borrower and the Administrative Agent), provided that such
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Lender's failure to give such notice shall not affect the validity thereof.
(c) The Borrower shall, at the time of making each payment under this
Agreement or any Note for account of any Lender, specify to the Administrative
Agent (which shall so notify the intended recipient(s) thereof) the Loans,
Reimbursement Obligations or other amounts payable by the Borrower hereunder to
which such payment is to be applied (and in the event that the Borrower fails to
so specify, or if an Event of Default has occurred and is continuing, the
Administrative Agent may distribute such payment to the Lenders for application
in such manner as it or the Majority Lenders, subject to Section 4.02, may
determine to be appropriate).
(d) Except to the extent otherwise provided in the last sentence of Section
2.03(e), each payment received by the Administrative Agent under this Agreement
or any Note for account of any Lender shall be paid by the Administrative Agent
promptly to such Lender, in immediately available funds, for account of such
Lender's Applicable Lending Office for the Loan or other obligation in respect
of which such payment is made.
(e) If the due date of any payment under this Agreement or any Note would
otherwise fall on a day that is not a Business Day, such date shall be extended
to the next succeeding Business Day, and interest shall be payable for any
principal so extended for the period of such extension.
4.02 Pro Rata Treatment. Except to the extent otherwise provided herein:
(a) each borrowing of Loans of a particular Class from the Lenders under Section
2.01 shall be made from the relevant Lenders, each payment of commitment fee
under Section 2.05 in respect of Commitments of a particular Class shall be made
for account of the relevant Lenders, and each termination or reduction of the
amount of the Commitments of a particular Class under Section 2.04 shall be
applied to the respective Commitments of such Class of the relevant Lenders, pro
rata according to the amounts of their respective Commitments of such Class; (b)
except as otherwise provided in Section 5.04, Eurodollar Loans of any Class
having the same Interest Period shall be allocated pro rata among the relevant
Lenders according to the amounts of their respective Revolving Credit
Commitments, Facility A Term Loan Commitments and Facility B Term Loan
Commitments (in the case of the making of Loans) or their respective Revolving
Credit Loans, Facility A Term Loans and Facility B Term Loans (in the case of
Conversions and Continuations of Loans); (c) each payment or prepayment of
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principal of Revolving Credit Loans, Facility A Term Loans or Facility B Term
Loans by the Borrower shall be made for account of the relevant Lenders pro rata
in accordance with the respective unpaid principal amounts of the Loans of such
Class held by them; and (d) each payment of interest on Revolving Credit Loans,
Facility A Term Loans and Facility B Term Loans by the Borrower shall be made
for account of the relevant Lenders pro rata in accordance with the amounts of
interest on such Loans then due and payable to the respective Lenders.
4.03 Computations. Interest on Eurodollar Loans and commitment fee and
letter of credit fees shall be computed on the basis of a year of 360 days and
actual days elapsed (including the first day but, except as otherwise provided
in Section 2.03(g), excluding the last day) occurring in the period for which
payable and interest on Base Rate Loans and Reimbursement Obligations shall be
computed on the basis of a year of 365 or 366 days, as the case may be, and
actual days elapsed (including the first day but excluding the last day)
occurring in the period for which payable. Notwithstanding the foregoing, for
each day that the Base Rate is calculated by reference to the Federal Funds
Rate, interest on Base Rate Loans and Reimbursement Obligations shall be
computed on the basis of a year of 360 days and actual days elapsed.
4.04 Minimum Amounts. Except for mandatory prepayments made pursuant to
Section 2.10 and Conversions or prepayments made pursuant to Section 5.04, each
borrowing, Conversion and partial prepayment of principal of Base Rate Loans
shall be in an aggregate amount at least equal to $500,000 and each borrowing,
Conversion and partial prepayment of principal of Eurodollar Loans shall be in
an aggregate amount at least equal to $5,000,000 (borrowings, Conversions or
prepayments of or into Loans of different Types or, in the case of Eurodollar
Loans, having different Interest Periods at the same time hereunder to be deemed
separate borrowings, Conversions and prepayments for purposes of the foregoing,
one for each Type or Interest Period), provided that if any Eurodollar Loans
would otherwise be in a lesser principal amount for any period, such Loans shall
be Base Rate Loans during such period.
4.05 Certain Notices. Notices by the Borrower to the Administrative Agent
of terminations or reductions of the Commitments, of borrowings, Conversions,
Continuations and optional prepayments of Loans, of Classes of Loans, of Types
of Loans and of the duration of Interest Periods shall be irrevocable and shall
be effective only if received by the Administrative Agent not later than 11:00
a.m. New York time on
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the number of Business Days prior to the date of the relevant termination,
reduction, borrowing, Conversion, Continuation or prepayment or the first day of
such Interest Period specified below:
Number of
Business
Notice Days Prior
------ ----------
Termination or reduction
of Commitments 3
Borrowing or prepayment of,
or Conversions into,
Base Rate Loans 1
Borrowing or prepayment of,
Conversions into, Continuations
as, or duration of Interest
Period for, Eurodollar Loans 3
Each such notice of termination or reduction shall specify the amount and the
Class of the Commitments to be terminated or reduced. Each such notice of
borrowing, Conversion, Continuation or optional prepayment shall specify the
Class (and, if applicable, the Sub-Series) of Loans to be borrowed, Converted,
Continued or prepaid and the amount (subject to Section 4.04) and Type of each
Loan to be borrowed, Converted, Continued or prepaid and the date of borrowing,
Conversion, Continuation or optional prepayment (which shall be a Business Day).
Each such notice of the duration of an Interest Period shall specify the Loans
to which such Interest Period is to relate. The Administrative Agent shall
promptly notify the Lenders of the contents of each such notice. In the event
that the Borrower fails to select the Type of Loan, or the duration of any
Interest Period for any Eurodollar Loan, within the time period and otherwise as
provided in this Section 4.05, such Loan (if outstanding as a Eurodollar Loan)
will be automatically Converted into a Base Rate Loan on the last day of the
then current Interest Period for such Loan or (if outstanding as a Base Rate
Loan) will remain as, or (if not then outstanding) will be made as, a Base Rate
Loan.
4.06 Non-Receipt of Funds by the Administrative Agent. Unless the
Administrative Agent shall have been notified by a Lender or the Borrower (the
"Payor") prior to the date on which the Payor is to make payment to the
Administrative Agent of (in the case of a Lender) the proceeds of a Loan to be
made by such
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Lender hereunder or (in the case of the Borrower) a payment to the
Administrative Agent for account of one or more of the Lenders hereunder (such
payment being herein called the "Required Payment"), which notice shall be
effective upon receipt, that the Payor does not intend to make the Required
Payment to the Administrative Agent, the Administrative Agent may assume that
the Required Payment has been made and may, in reliance upon such assumption
(but shall not be required to), make the amount thereof available to the
intended recipient(s) on such date; and, if the Payor has not in fact made the
Required Payment to the Administrative Agent, the recipient(s) of such payment
shall, on demand, repay to the Administrative Agent the amount so made available
together with interest thereon in respect of each day during the period
commencing on the date (the "Advance Date") such amount was so made available by
the Administrative Agent until the date the Administrative Agent recovers such
amount at a rate per annum equal to the Federal Funds Rate for such day (it
being understood that, in the event the Borrower is the recipient of such
payment, such interest shall be in lieu of any interest otherwise payable under
Section 3.02) and, if such recipient(s) shall fail promptly to make such
payment, the Administrative Agent shall be entitled to recover such amount, on
demand, from the Payor, together with interest as aforesaid, provided that if
neither the recipient(s) nor the Payor shall return the Required Payment to the
Administrative Agent within three Business Days of the Advance Date, then,
retroactively to the Advance Date, the Payor and the recipient(s) shall each be
obligated to pay interest on the Required Payment as follows:
(i) if the Required Payment shall represent a payment to be made by
the Borrower to the Lenders, the Borrower and the recipient(s) shall each
be obligated retroactively to the Advance Date to pay interest in respect
of the Required Payment at the Post-Default Rate (without duplication of
the obligation of the Borrower under Section 3.02 to pay interest on the
Required Payment at the Post-Default Rate), it being understood that the
return by the recipient(s) of the Required Payment to the Administrative
Agent shall not limit such obligation of the Borrower under Section 3.02 to
pay interest at the Post-Default Rate in respect of the Required Payment,
and
(ii) if the Required Payment shall represent proceeds of a Loan to be
made by the Lenders to the Borrower, the Payor and the Borrower shall each
be obligated retroactively to the Advance Date to pay interest in respect
of the Required Payment pursuant to whichever of the rates specified in
Section 3.02 is applicable to the Type of such
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Loan, it being understood that the return by the Borrower of the Required
Payment to the Administrative Agent shall not limit any claim the Borrower
may have against the Payor in respect of such Required Payment.
4.07 Sharing of Payments, Etc.
(a) Each Obligor agrees that, in addition to (and without limitation of)
any right of set-off, banker's lien or counterclaim a Lender may otherwise have,
each Lender shall be entitled, at its option (to the fullest extent permitted by
law), to set off and apply any deposit (general or special, time or demand,
provisional or final), or other indebtedness, held by it for the credit or
account of such Obligor at any of its offices, in Dollars or in any other
currency, against any principal of or interest on any of such Lender's Loans,
Reimbursement Obligations or any other amount payable to such Lender hereunder,
that is not paid when due (regardless of whether such deposit or other
indebtedness is then due to such Obligor), in which case it shall promptly
notify such Obligor and the Administrative Agent thereof, provided that such
Lender's failure to give such notice shall not affect the validity thereof.
(b) If any Lender shall obtain from any Obligor payment of any principal of
or interest on any Loan of any Class or Letter of Credit Liability owing to it
or payment of any other amount under this Agreement or any other Loan Document
through the exercise of any right of set-off, banker's lien or counterclaim or
similar right or otherwise (other than from the Administrative Agent as provided
herein), and, as a result of such payment, such Lender shall have received a
greater percentage of the principal of or interest on the Loans of any Class or
Letter of Credit Liabilities or any other amounts then due hereunder or
thereunder by such Obligor to such Lender than the percentage received by any
other Lender, it shall promptly purchase from such other Lenders participations
in (or, if and to the extent specified by such Lender, direct interests in) the
Loans or Letter of Credit Liabilities or such other amounts, respectively, owing
to such other Lenders (or in interest due thereon, as the case may be) in such
amounts, and make such other adjustments from time to time as shall be
equitable, to the end that all the Lenders shall share the benefit of such
excess payment (net of any expenses that may be incurred by such Lender in
obtaining or preserving such excess payment) pro rata in accordance with the
unpaid principal of and/or interest on the Loans or Letter of Credit Liabilities
or such other amounts, respectively, owing to each of the Lenders. To such end
all the Lenders shall make appropriate adjustments among themselves (by
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the resale of participations sold or otherwise) if such payment is rescinded or
must otherwise be restored.
(c) Each Obligor agrees that any Lender so purchasing such a participation
(or direct interest) may exercise all rights of set-off, banker's lien,
counterclaim or similar rights with respect to such participation as fully as if
such Lender were a direct holder of Loans or other amounts (as the case may be)
owing to such Lender in the amount of such participation.
(d) Nothing contained herein shall require any Lender to exercise any such
right or shall affect the right of any Lender to exercise, and retain the
benefits of exercising, any such right with respect to any other indebtedness or
obligation of any Obligor. If, under any applicable bankruptcy, insolvency or
other similar law, any Lender receives a secured claim in lieu of a set-off to
which this Section 4.07 applies, such Lender shall, to the extent practicable,
exercise its rights in respect of such secured claim in a manner consistent with
the rights of the Lenders entitled under this Section 4.07 to share in the
benefits of any recovery on such secured claim.
Section 5. Yield Protection, Etc.
5.01 Additional Costs.
(a) The Borrower shall pay directly to each Lender from time to time such
amounts as such Lender may determine to be necessary to compensate such Lender
for any costs that such Lender determines are attributable to its making or
maintaining of any Eurodollar Loans or its obligation to make any Eurodollar
Loans hereunder, or any reduction in any amount receivable by such Lender
hereunder in respect of any of such Loans or such obligation (such increases in
costs and reductions in amounts receivable being herein called "Additional
Costs"), resulting from any Regulatory Change that:
(i) shall subject any Lender (or its Applicable Lending Office for any
of such Loans) to any tax, duty or other charge in respect of such Loans or
its Notes or changes the basis of taxation of any amounts payable to such
Lender under this Agreement or its Notes in respect of any of such Loans
(excluding changes in the rate of tax on the overall net income of such
Lender or of such Applicable Lending Office by the jurisdiction in which
such Lender has its principal office or such Applicable Lending Office); or
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(ii) imposes or modifies any reserve, special deposit or similar
requirements (other than the Reserve Requirement used in the determination
of the Eurodollar Rate for any Interest Period for such Loan) relating to
any extensions of credit or other assets of, or any deposits with or other
liabilities of, such Lender (including, without limitation, any of such
Loans or any deposits referred to in the definition of "Eurodollar Base
Rate" in Section 1.01), or any commitment of such Lender (including,
without limitation, the Commitments of such Lender hereunder); or
(iii) imposes any other condition affecting this Agreement or its
Notes (or any of such extensions of credit or liabilities) or its
Commitments.
If any Lender requests compensation from the Borrower under this paragraph, the
Borrower may, by notice to such Lender (with a copy to the Administrative
Agent), suspend the obligation of such Lender thereafter to make or Continue
Eurodollar Loans, or to Convert Loans of any other Type into Eurodollar Loans,
until the Regulatory Change giving rise to such request ceases to be in effect
(in which case the provisions of Section 5.04 shall be applicable), provided
that such suspension shall not affect the right of such Lender to receive the
compensation so requested.
(b) Without limiting the effect of the foregoing provisions of this Section
5.01 (but without duplication), the Borrower shall pay directly to each Lender
from time to time on request such amounts as such Lender may determine to be
necessary to compensate such Lender (or, without duplication, the bank holding
company of which such Lender is a subsidiary) for any costs that it determines
are attributable to the maintenance by such Lender (or any Applicable Lending
Office or such bank holding company), pursuant to any law or regulation or any
interpretation, directive or request (whether or not having the force of law and
whether or not failure to comply therewith would be unlawful) of any court or
governmental or monetary authority (i) following any Regulatory Change or (ii)
implementing any risk-based capital guideline or other requirement (whether or
not having the force of law and whether or not the failure to comply therewith
would be unlawful) hereafter issued by any government or governmental or
supervisory authority implementing at the national level the Basle Accord, of
capital in respect of its Commitments or Loans (such compensation to include,
without limitation, an amount equal to any reduction of the rate of return on
assets or equity of such Lender (or any Applicable Lending Office or such bank
holding company) to a level below
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that which such Lender (or any Applicable Lending Office or such bank holding
company) could have achieved but for such law, regulation, interpretation,
directive or request).
(c) Each Lender shall notify the Borrower of any event occurring after the
date hereof entitling such Lender to compensation under paragraph (a) or (b) of
this Section 5.01 as promptly as practicable, but in any event within 45 days,
after such Lender obtains actual knowledge thereof; provided that (i) if any
Lender fails to give such notice within 45 days after it obtains actual
knowledge of such an event, such Lender shall, with respect to compensation
payable pursuant to this Section 5.01 in respect of any costs resulting from
such event, only be entitled to payment under this Section 5.01 for costs
incurred from and after the date 45 days prior to the date that such Lender does
give such notice and (ii) each Lender will designate a different Applicable
Lending Office for the Loans of such Lender affected by such event if such
designation will avoid the need for, or reduce the amount of, such compensation
and will not, in the sole opinion of such Lender, be disadvantageous to such
Lender, except that such Lender shall have no obligation to designate an
Applicable Lending Office located in the United States of America.
Each Lender will furnish to the Borrower a certificate setting forth the
basis and amount of each request by such Lender for compensation under paragraph
(a) or (b) of this Section 5.01. Determinations and allocations by any Lender
for purposes of this Section 5.01 of the effect of any Regulatory Change
pursuant to paragraph (a) of this Section 5.01, or of the effect of capital
maintained pursuant to paragraph (b) of this Section 5.01, on its costs or rate
of return of maintaining Loans or its obligation to make Loans, or on amounts
receivable by it in respect of Loans, and of the amounts required to compensate
such Lender under this Section 5.01, shall be conclusive, provided that such
determinations and allocations are made on a reasonable basis.
5.02 Limitation on Types of Loans. Anything herein to the contrary
notwithstanding, if, on or prior to the determination of the Eurodollar Base
Rate for any Interest Period for any Eurodollar Loan;
(a) the Administrative Agent determines, which determination shall be
conclusive, that quotations of interest rates for the relevant deposits
referred to in the definition of "Eurodollar Base Rate" in Section 1.01 are
not being provided in the relevant amounts or for the relevant
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maturities for purposes of determining rates of interest for Eurodollar
Loans as provided herein; or
(b) if the related Loans are Revolving Credit Loans, the Majority
Revolving Credit Lenders or, if the related Loans are Facility A Term Loans
or Facility B Term Loans, the Majority Facility A Lenders or Majority
Facility B Lenders, respectively, determine, which determination shall be
conclusive, and notify the Administrative Agent that the relevant rates of
interest referred to in the definition of "Eurodollar Base Rate" in Section
1.01 upon the basis of which the rate of interest for Eurodollar Loans for
such Interest Period is to be determined are not likely to cover adequately
the cost to such Lenders of making or maintaining Eurodollar Loans for such
Interest Period;
then the Administrative Agent shall give the Borrower and each Lender prompt
notice thereof and, so long as such condition remains in effect, the Lenders
shall be under no obligation to make additional Eurodollar Loans, to Continue
Eurodollar Loans or to Convert Loans of any other Type into Eurodollar Loans,
and the Borrower shall, on the last day(s) of the then current Interest
Period(s) for the outstanding Eurodollar Loans, either prepay such Loans or
Convert such Loans into another Type of Loan in accordance with Section 2.09.
5.03 Illegality. Notwithstanding any other provision of this Agreement, in
the event that it becomes unlawful for any Lender or its Applicable Lending
Office to honor its obligation to make or maintain Eurodollar Loans hereunder
(and, in the sole opinion of such Lender, the designation of a different
Applicable Lending Office would either not avoid such unlawfulness or would be
disadvantageous to such Lender), then such Lender shall promptly notify the
Borrower thereof (with a copy to the Administrative Agent) and such Lender's
obligation to make or Continue, or to Convert Loans of any other Type into,
Eurodollar Loans shall be suspended until such time as such Lender may again
make and maintain Eurodollar Loans (in which case the provisions of Section 5.04
shall be applicable).
5.04 Treatment of Affected Loans. If the obligation of any Lender to make
Eurodollar Loans or to Continue, or to Convert Base Rate Loans into, Eurodollar
Loans shall be suspended pursuant to Section 5.01 or 5.03, such Lender's
Eurodollar Loans shall be automatically Converted into Base Rate Loans on the
last day(s) of the then current Interest Period(s) for Eurodollar Loans (or, in
the case of a Conversion resulting from a circumstance described in Section
5.03, on such earlier date as
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such Lender may specify to the Borrower with a copy to the Administrative Agent)
and, unless and until such Lender gives notice as provided below that the
circumstances specified in Section 5.01 or 5.03 that gave rise to such
Conversion no longer exist:
(a) to the extent that such Lender's Eurodollar Loans have been so
Converted, all payments and prepayments of principal that would otherwise
be applied to such Lender's Eurodollar Loans shall be applied instead to
its Base Rate Loans; and
(b) all Loans that would otherwise be made or Continued by such Lender
as Eurodollar Loans shall be made or Continued instead as Base Rate Loans,
and all Loans of such Lender that would otherwise be Converted into
Eurodollar Loans shall remain as Base Rate Loans.
If such Lender gives notice to the Borrower with a copy to the Administrative
Agent that the circumstances specified in Section 5.01 or 5.03 that gave rise to
the Conversion of such Lender's Eurodollar Loans pursuant to this Section 5.04
no longer exist (which such Lender agrees to do promptly upon such circumstances
ceasing to exist) at a time when Eurodollar Loans of the same Class made by
other Lenders are outstanding, such Lender's Base Rate Loans of such Class shall
be automatically Converted, on the first day(s) of the next succeeding Interest
Period(s) for such outstanding Eurodollar Loans, to the extent necessary so
that, after giving effect thereto, all Base Rate Loans and Eurodollar Loans of
such Class are allocated among the Lenders ratably (as to principal amounts,
Types and Interest Periods) in accordance with their respective Commitments of
such Class.
5.05 Compensation. The Borrower shall pay to the Administrative Agent for
account of each Lender, upon the request of such Lender through the
Administrative Agent, such amount or amounts as shall be sufficient (in the
reasonable opinion of such Lender) to compensate it for any loss, cost or
expense that such Lender determines is attributable to:
(a) any payment, mandatory or optional prepayment or Conversion of a
Eurodollar Loan made by such Lender for any reason (including, without
limitation, the acceleration of the Loans pursuant to Section 10) on a date
other than the last day of the Interest Period for such Loan; or
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(b) any failure by the Borrower for any reason (including, without
limitation, the failure of any of the conditions precedent specified in
Section 7 to be satisfied) to borrow a Eurodollar Loan from such Lender on
the date for such borrowing specified in the relevant notice of borrowing
given pursuant to Section 2.02.
Without limiting the effect of the preceding sentence, such compensation shall
include an amount equal to the excess, if any, of (i) the amount of interest
that otherwise would have accrued on the principal amount so paid, prepaid,
Converted or not borrowed for the period from the date of such payment,
prepayment, Conversion or failure to borrow to the last day of the then current
Interest Period for such Loan (or, in the case of a failure to borrow, the
Interest Period for such Loan that would have commenced on the date specified
for such borrowing) at the applicable rate of interest for such Loan provided
for herein over (ii) the amount of interest that otherwise would have accrued on
such principal amount at a rate per annum equal to the interest component of the
amount such Lender would have bid in the London interbank market for Dollar
deposits of leading banks in amounts comparable to such principal amount and
with maturities comparable to such period (as reasonably determined by such
Lender), or if such Lender shall cease to make such bids, the equivalent rate,
as reasonably determined by such Lender, derived from Telerate Access Service
Page 3750 (British Bankers Association Settlement Rate) or other publicly
available source as described in the definition of "Eurodollar Base Rate" in
Section 1.01).
5.06 Additional Costs in Respect of Letters of Credit. Without limiting the
obligations of the Borrower under Section 5.01 (but without duplication), if as
a result of any Regulatory Change or any risk-based capital guideline or other
requirement heretofore or hereafter issued by any government or governmental or
supervisory authority implementing at the national level the Basle Accord there
shall be imposed, modified or deemed applicable any tax, reserve, special
deposit, capital adequacy or similar requirement against or with respect to or
measured by reference to Letters of Credit issued or to be issued hereunder and
the result shall be to increase the cost to any Lender or Lenders of issuing (or
purchasing participations in) or maintaining its obligation hereunder to issue
(or purchase participations in) any Letter of Credit hereunder or reduce any
amount receivable by any Lender hereunder in respect of any Letter of Credit
(which increases in cost, or reductions in amount receivable, shall be the
result of such Lender's or Lenders' reasonable allocation of the aggregate of
such increases
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or reductions resulting from such event), then, upon demand by such Lender or
Lenders (through the Administrative Agent), the Borrower shall pay immediately
to the Administrative Agent for account of such Lender or Lenders, from time to
time as specified by such Lender or Lenders (through the Administrative Agent),
such additional amounts as shall be sufficient to compensate such Lender or
Lenders (through the Administrative Agent) for such increased costs or
reductions in amount. A statement as to such increased costs or reductions in
amount incurred by any such Lender or Lenders, submitted by such Lender or
Lenders to the Borrower shall be conclusive in the absence of manifest error as
to the amount thereof.
5.07 U.S. Taxes.
(a) The Borrower agrees to pay to each Lender that is not a U.S. Person
such additional amounts as are necessary in order that the net payment of any
amount due to such non-U.S. Person hereunder after deduction for or withholding
in respect of any U.S. Taxes imposed with respect to such payment (or in lieu
thereof, payment of such U.S. Taxes by such non-U.S. Person), will not be less
than the amount stated herein to be then due and payable, provided that the
foregoing obligation to pay such additional amounts shall not apply:
(i) to any payment to any Lender hereunder unless such Lender is, on
the date hereof (or on the date it becomes a Lender hereunder as provided
in Section 12.06(b)) and on the date of any change in the Applicable
Lending Office of such Lender, either entitled to submit a Form 1001
(relating to such Lender and entitling it to a complete exemption from
withholding on all interest to be received by it hereunder in respect of
the Loans) or Form 4224 (relating to all interest to be received by such
Lender hereunder in respect of the Loans), or
(ii) to any U.S. Taxes imposed solely by reason of the failure by such
non-U.S. Person to comply with applicable certification, information,
documentation or other reporting requirements concerning the nationality,
residence, identity or connections with the United States of America of
such non-U.S. Person if such compliance is required by statute or
regulation of the United States of America as a precondition to relief or
exemption from such U.S. Taxes.
For the purposes of this paragraph, (A) "U.S. Person" means a citizen, national
or resident of the United States of America, a
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corporation, partnership or other entity created or organized in or under any
laws of the United States of America or any State thereof, or any estate or
trust that is subject to Federal income taxation regardless of the source of its
income, (B) "U.S. Taxes" means any present or future tax, assessment or other
charge or levy imposed by or on behalf of the United States of America or any
taxing authority thereof or therein, (C) "Form 1001" means Form 1001 (Ownership,
Exemption, or Reduced Rate Certificate) of the Department of the Treasury of the
United States of America and (D) "Form 4224" means Form 4224 (Exemption from
Withholding of Tax on Income Effectively Connected with the Conduct of a Trade
or Business in the United States) of the Department of the Treasury of the
United States of America. Each of the Forms referred to in the foregoing clauses
(C) and (D) shall include such successor and related forms as may from time to
time be adopted by the relevant taxing authorities of the United States of
America to document a claim to which such Form relates.
(b) Within 30 days after paying any amount to the Administrative Agent or
any Lender from which it is required by law to make any deduction or
withholding, and within 30 days after it is required by law to remit such
deduction or withholding to any relevant taxing or other authority, the Borrower
shall deliver to the Administrative Agent for delivery to such non-U.S. Person
evidence satisfactory to such Person of such deduction, withholding or payment
(as the case may be).
5.08 Replacement of Lenders. If any of the following shall occur with
respect to any Lender (any such Lender being herein called an "Affected
Lender"):
(a) any Lender shall request compensation pursuant to Section 5.01,
5.06 or 5.07,
(b) any Lender's obligation to make or Continue Loans of any Type, or
to Convert Loans of any Type into the other Type of Loan, shall be
suspended pursuant to Section 5.01 or 5.03 or
(c) any Lender shall default in the making of any Loan required to be
made by it pursuant to Section 2.01,
the Borrower, upon three Business Days notice, may require that such Affected
Lender transfer all of its right, title and interest under this Agreement and
such Affected Lender's Notes to any bank or other financial institution (a
"Proposed Lender") identified by the Borrower that is satisfactory to the
Administrative Agent and the Issuing Lender (i) if such Proposed
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Lender agrees to assume all of the obligations of such Affected Lender
hereunder, and to purchase all of such Affected Lender's Loans hereunder for
consideration equal to the aggregate outstanding principal amount of such
Affected Lender's Loans, together with interest thereon to the date of such
purchase, and satisfactory arrangements are made for payment to such Affected
Lender of all other amounts payable hereunder to such Affected Lender on or
prior to the date of such transfer (including any fees accrued hereunder and any
amounts that would be payable under Section 5.05 as if all of such Affected
Lender's Loans were being prepaid in full on such date) and (ii) if such
Affected Lender has requested compensation pursuant to Section 5.01, 5.06 or
5.07, such Proposed Lender's aggregate requested compensation, if any, pursuant
to Section 5.01, 5.06 or 5.07 with respect to such Affected Lender's Loans is
lower than that of the Affected Lender.
Subject to the provisions of Section 12.06(b), such Proposed Lender shall
be a "Lender" for all purposes hereunder. Without prejudice to the survival of
any other agreement of the Borrower hereunder the agreements of the Borrower
contained in Sections 5.01, 5.06, 5.07 and 12.04 (without duplication of any
payments made to such Affected Lender by the Borrower or the Proposed Lender)
shall survive for the benefit of such Affected Lender under this Section 5.08
with respect to the time prior to such replacement.
Section 6. Guarantee.
6.01 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 following obligations (such
obligations being herein collectively called the "Guaranteed Obligations"):
(a) the principal of and interest on the Revolving Credit Loans made
by the Lenders to, and the Revolving Credit Notes and Reimbursement
Obligations held by each Lender of, the Borrower; and
(b) subject to the limitation set forth in Section 6.10, the principal
of and interest on the Facility A and Facility B Term Loans made by the
Lenders to, and the Facility A and Facility B Term Loan Notes of, the
Borrower,
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in each case strictly in accordance with the terms thereof. The Subsidiary
Guarantors hereby further jointly and severally agree that, subject to the
limitation set forth in Section 6.10, if the Borrower shall fail to pay in full
when due (whether at stated maturity, by acceleration or otherwise) any of the
Guaranteed Obligations, 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.
6.02 Obligations Unconditional. Subject to the limitation set forth in
Section 6.10, the obligations of the Subsidiary Guarantors under Section 6.01
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, the Notes 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 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 6.02 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, but subject to
the limitation set forth in Section 6.10, 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 the Notes 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
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Obligations shall be modified, supplemented or amended in any respect, or
any right under this Agreement or the Notes 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 the Notes 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.
6.03 Reinstatement. Subject to the limitation set forth in Section 6.10,
the obligations of the Subsidiary Guarantors under this Section 6 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.
6.04 Subrogation. Each Subsidiary Guarantor hereby waives all rights of
subrogation or contribution, whether arising by contract or operation of law
(including, without limitation, any such right arising under the Bankruptcy
Code) or otherwise by reason of any payment by it pursuant to the provisions of
this Section 6 and further agrees with the Borrower for the benefit of its
creditors (including, without limitation, each Lender and the Administrative
Agent) that any such payment by it shall
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constitute a contribution of capital by such Subsidiary Guarantor to the
Borrower (or an investment in the equity capital of the Borrower by such
Subsidiary Guarantor).
6.05 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 and the Notes may be declared to be forthwith due
and payable as provided in Section 10 (and shall be deemed to have become
automatically due and payable in the circumstances provided in Section 10) for
purposes of Section 6.01 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 Section 6.01.
6.06 Instrument for the Payment of Money. Each Subsidiary Guarantor hereby
acknowledges that the guarantee in this Section 6 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.
6.07 Continuing Guarantee. Subject to the limitation set forth in Section
6.10, the guarantee in this Section 6 is a continuing guarantee, and shall apply
to all Guaranteed Obligations whenever arising.
6.08 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 6.08 shall be subordinate and
subject in right of
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payment to the prior payment in full of the obligations of such Subsidiary
Guarantor under the other provisions of this Section 6 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 6.08, (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, or ownership interest in, any 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 Obligors
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 Obligors, determined (A) with respect to
any Subsidiary Guarantor that is a party hereto on the Closing Date, as of the
Closing Date, and (B) with respect to any other Subsidiary Guarantor, as of the
date such Subsidiary Guarantor becomes a Subsidiary Guarantor hereunder.
6.09 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 6.01 would otherwise, taking into account the provisions of Section
6.08, 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 Section 6.01, 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
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to the claims of other creditors as determined in such action or proceeding.
6.10 Dollar Limitation on Guarantee Obligations. Anything herein to the
contrary notwithstanding, the aggregate amount for which the Subsidiary
Guarantors shall be obligated in respect of their Guarantee under this Section 6
of the Facility A and Facility B Term Loans and Facility A and Facility B Term
Loan Notes shall be equal to an amount (the "Guarantee Limit") equal to the sum
of (a) $12,541,795 (which the Borrower hereby represents and warrants is the
maximum amount of "Purchase Money Indebtedness" or "Capital Lease Obligations"
(as such capitalized terms are defined in the 1995 Senior Notes Indenture)
permitted to be incurred under Section 4.03(b)(vii) of the 1995 Senior Notes
Indenture on the date hereof) plus (b) $5,000,000 (which the Borrower hereby
represents and warrants is the maximum amount of "Indebtedness" (as so defined)
permitted to be incurred under Section 4.03(b)(x) under the 1995 Senior Notes
Indenture on the date hereof). For purposes hereof, it is understood that all
payments and prepayments of Facility A and Facility B Term Loans by the Borrower
or any other Person (other than by any Subsidiary Guarantor pursuant to a demand
by the Administrative Agent or any Lender hereunder) shall be deemed to be
applied first to the portion of the Facility A and Facility B Term Loans and
Facility A and Facility B Term Loan Notes that exceeds the Guarantee Limit and
last to the portion of the Facility A and Facility B Term Loans and Facility A
and Facility B Term Loan Notes that does not exceed the Guarantee Limit.
Section 7. Conditions.
7.01 Initial Extension of Credit of any Class. The obligation of any Lender
to make its initial extension of credit hereunder (whether by making a Loan or
issuing a Letter of Credit) is subject to the conditions precedent that (i) such
extension of credit shall be made on or before December 15, 1996 and (ii) the
Administrative Agent shall have received the following documents (with, in the
case of clauses (a), (b), (c), (d) and (e) below, sufficient photocopies for
each Lender), each of which shall be satisfactory to the Administrative Agent
(and to the extent specified below, to each Lender) in form and substance, it
being understood that, to the extent a form of a particular document is
specified below, such form shall be deemed to be satisfactory to the
Administrative Agent and the Lenders:
(a) Corporate Documents. Certified copies of the charter and by-laws
(or equivalent documents) of each
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Obligor and of all corporate or other authority for each Obligor
(including, without limitation, in the case of any corporate Obligor, board
of director resolutions and evidence of the incumbency, including specimen
signatures, of officers) with respect to the execution, delivery and
performance of such of the Basic Documents to which such Obligor is
intended to be a party and each other document to be delivered by such
Obligor from time to time in connection herewith and the extensions of
credit hereunder (and the Administrative Agent and each Lender may
conclusively rely on such certificate until it receives notice in writing
from such Obligor to the contrary).
(b) Officer's Certificate. A certificate of a senior financial officer
of the Borrower, dated the Closing Date, to the effect set forth in the
lettered clauses of the first sentence of Section 7.03.
(c) Opinion of Special New York Counsel to the Obligors. An opinion,
dated the Closing Date, of Xxxx Marks & Xxxxx LLP, special New York counsel
to the Obligors, substantially in the form of Exhibit D-1, and covering
such other matters as the Administrative Agent or any Lender may reasonably
request (and each Obligor hereby instructs such counsel to deliver such
opinion to the Lenders and the Administrative Agent).
(d) Opinion of Special New York Counsel to the Arranger. An opinion,
dated the Closing Date, of Milbank, Tweed, Xxxxxx & XxXxxx, special New
York counsel to the Arranger, substantially in the form of Exhibit F (and
the Arranger hereby instructs such counsel to deliver such opinion to the
Lenders).
(e) Notes. The Notes, duly completed and executed for each Lender.
(f) Revolving Credit Security Agreement. The Revolving Credit Security
Agreement, duly executed and delivered by the Obligors and the
Administrative Agent, together with the certificates identified under the
name of each Obligor in Annex 1 thereto, in each case accompanied by
undated stock powers executed in blank. In addition, the Obligors shall
have taken such other action (including, without limitation, delivering to
the Administrative Agent, for filing, appropriately completed and duly
executed copies of Uniform Commercial Code financing statements) as the
Administrative Agent shall have requested in order to
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perfect the security interests created pursuant to the Revolving Credit
Security Agreement.
(g) Existing Credit Agreement. Evidence that the principal of and
interest on, and all other amounts owing under the Existing Credit
Agreement shall have been (or shall be simultaneously) paid in full, that
any commitments to extend credit under the Existing Credit Agreement shall
have been (or shall be simultaneously) canceled or terminated and that all
Guarantees in respect of, and all Liens securing, such Indebtedness shall
have been released (or arrangements for such release satisfactory to the
Administrative Agent shall have been made).
(h) Insurance. Certificates of insurance evidencing the existence of
all insurance required to be maintained by the Obligors pursuant to Section
9.04 and the designation of the Administrative Agent as the loss payee or
additional named insured, as the case may be, thereunder to the extent
required by Section 9.04, with respect to all tangible real or personal
Property of the Obligors that constitutes collateral security for the
Revolving Credit Loans, such certificates to be in such form and contain
such information as is specified in Section 9.04. In addition, the Borrower
shall have delivered (i) a certificate of a senior financial officer of the
Borrower setting forth the insurance obtained by it in accordance with the
requirements of Section 9.04 and stating that such insurance is in full
force and effect and that all premiums then due and payable thereon have
been paid and (ii) a written report, dated reasonably near the date such
Loans are being made, of AON Risk Services, Inc., or any other firm of
independent insurance brokers of nationally recognized standing, as to such
insurance and stating that, in their opinion, such insurance is in
compliance with the provisions of Section 9.04.
(i) Environmental Surveys. Copies of the environmental surveys and
assessments with respect to the Existing Parks referred to in Schedule II.
(j) Solvency Analysis. An analysis from a senior financial officer of
the Borrower to the effect that, as of the Closing Date and after giving
effect to the initial Loan hereunder and to the other transactions
contemplated hereby:
(i) the aggregate value of all Properties of the Borrower and its
Subsidiaries at their present fair saleable value (i.e., the amount
that may be realized
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within a reasonable time, considered to be six months to one year,
either through collection or sale at the regular market value,
conceiving the latter as the amount that could be obtained for the
Property in question within such period by a capable and diligent
businessman from an interested buyer who is willing to purchase under
ordinary selling conditions), exceed the amount of all the debts and
liabilities (including contingent, subordinated, unmatured and
unliquidated liabilities) of the Borrower and its Subsidiaries,
(ii) the Borrower and its Subsidiaries will not, on a
consolidated basis, have an unreasonably small capital with which to
conduct their business operations as heretofore conducted and
(iii) the Borrower and its Subsidiaries will have, on a
consolidated basis, sufficient cash flow to enable them to pay their
debts as they mature.
Such certificate shall include a statement to the effect that the financial
projections and underlying assumptions contained in such analysis are, fair
and reasonable and accurately computed.
(k) Other Documents. Such other documents as the Administrative Agent
or any Lender or special New York counsel to the Arranger may reasonably
request.
The obligation of any Lender to make its initial extension of credit
hereunder is also subject to the payment by the Borrower of such fees as the
Borrower shall have agreed to pay to any Lender or the Administrative Agent in
connection herewith, including, without limitation, the reasonable fees and
expenses of Milbank, Tweed, Xxxxxx & XxXxxx, special New York counsel to the
Arranger, in connection with the negotiation, preparation, execution and
delivery of this Agreement and the Notes and the other Loan Documents and the
extensions of credit hereunder (to the extent that statements for such fees and
expenses have been delivered to the Borrower).
7.02 Each Term Loan of any Class. The obligation of any Lender to make any
Facility A or Facility B Term Loan hereunder is subject to the conditions
precedent that the Administrative Agent shall have received the following
documents (with, in the case of clauses (b) and (c) below, sufficient
photocopies for each Lender), each of which shall be reasonably satisfactory to
the Administrative Agent (and to the extent
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specified below, to each Lender) in form and substance, it being understood
that, to the extent a form of a particular document is specified below, such
form shall be deemed to be satisfactory to the Administrative Agent and the
Lenders:
(a) Notice of Capital Transaction. The Borrower shall have given the
Administrative Agent, and special New York counsel to the Arranger, at
least ten Business Days prior written notice of its intention to finance
the respective Capital Transaction with Facility A or Facility B Loans
hereunder (which notice shall not, unless otherwise specified by the
Borrower, constitute a notice of borrowing under Section 4.05), which
notice shall set forth a brief description of the Property or equipment
purchased or to be purchased in such Capital Transaction and shall be
accompanied by copies of the respective Acquisition Agreement or purchase
order pursuant to which such purchase is to be consummated. In addition,
the Borrower shall have delivered to the Administrative Agent, and to
special New York counsel to the Arranger, (i) a certificate of a senior
financial officer of the Borrower to the effect that such Capital
Transaction complies with the requirements of clauses (b) or (c), as
applicable, of Section 9.14 (including in respect of the useful life and
value of the Property or equipment being acquired) and (ii) such other
documents and agreements, and such other information, with respect to such
Capital Transaction as the Administrative Agent or such special counsel
shall reasonably request. The Administrative Agent hereby acknowledges
that, in the case of the Initial Acquisitions, the foregoing notice has
been delivered at least ten Business Days prior to the date hereof.
(b) Opinion of Special New York Counsel to the Obligors. An opinion,
dated the date of such Loan, of Xxxx Marks & Xxxxx LLP, special New York
counsel to the Obligors, substantially in the form of Exhibit D-2, and
covering such other matters as the Administrative Agent or any Lender may
reasonably request (and each Obligor hereby instructs such counsel to
deliver such opinion to the Lenders and the Administrative Agent), it being
understood that, if the respective Property or equipment to be acquired is
to be located in the State of New York, then said special New York counsel
may incorporate into such opinion the additional matters to be covered by
the opinion of local counsel provided for in clause (c) below.
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(c) Opinion of Local Counsel. An opinion, dated the date of such Loan,
of local counsel in the State in which the Property or equipment purchased
or to be purchased in such Capital Transaction is located, substantially in
the form of Exhibit E, and covering such other matters as the
Administrative Agent may reasonably request (and each Obligor hereby
instructs such counsel to deliver such opinion to the Lenders and the
Administrative Agent).
(d) Equipment Security Agreement. An Equipment Security Agreement,
duly executed and delivered by the Borrower and the Administrative Agent,
covering the Property or items of equipment purchased or to be purchased.
In addition, the Borrower shall have taken such other action (including,
without limitation, delivering to the Administrative Agent, for filing,
appropriately completed and duly executed copies of Uniform Commercial Code
financing statements) as the Administrative Agent shall have requested in
order to perfect the security interests created pursuant to such Equipment
Security Agreement.
(e) Mortgage and Title Insurance. To the extent the proceeds of such
Loan are to be applied to the purchase (or to reimburse the Borrower for
the purchase) by the Borrower in whole or in part of real property (or, to
the extent the Administrative Agent deems that the execution and delivery
of a Mortgage with respect to the items of equipment purchased or to be
purchased is appropriate in the circumstances), the following documents,
each of which shall be executed (and, where appropriate, acknowledged) by
Persons satisfactory to the Administrative Agent:
(i) a Mortgage covering such real property (or such items of
equipment), which shall secure the obligations of the Borrower
hereunder in respect of such Loans, in each case duly executed and
delivered by the Borrower in recordable form, in form and substance
satisfactory to the Administrative Agent;
(ii) to the extent such real property constitutes a leasehold
interest as to which the Borrower is the lessee, a consent of the
respective landlord to such Mortgage (and, to the extent not already
recorded, a Memorandum of Lease), in recordable form, in each case in
form and substance satisfactory to the Administrative Agent;
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(iii) in the case of any acquisition of real property, a
mortgagee policy of title insurance on forms of and issued by one or
more title companies satisfactory to the Administrative Agent,
insuring the validity and priority of the Liens created under such
Mortgage for and in amounts satisfactory to the Administrative Agent,
subject only to such exceptions as are satisfactory to the
Administrative Agent and, to the extent necessary under applicable
law, for filing in the appropriate county land offices, Uniform
Commercial Code financing statements covering fixtures, in each case
appropriately completed and duly executed; and
(iv) in the case of any acquisition of real property, as-built
surveys of recent date of the real property to be covered by such
Mortgage (or, if deemed appropriate by the Administrative Agent, of
the real property on which such items of equipment are to be
situated), showing such matters as may be required by the
Administrative Agent, which surveys shall be in form and content
acceptable to the Administrative Agent, and certified to the
Administrative Agent and the respective title companies, and shall
have been prepared by a registered surveyor acceptable to the
Administrative Agent.
In addition, the Borrower shall have paid to the respective title companies
all expenses and premiums of such title companies in connection with the
issuance of such policies and in addition shall have paid to such title
companies an amount equal to the recording and stamp taxes payable in
connection with recording such Mortgages in the appropriate county land
offices.
(f) Revolving Credit Mortgage. To the extent the same can be recorded
without incurrence of material mortgage recording taxes, if the proceeds of
such Loan are to be applied to the purchase (or to reimburse the Borrower
for the purchase) by the Borrower in whole or in part of real property, a
Mortgage covering such real property, which shall secure the obligations of
the Borrower hereunder in respect of the Revolving Credit Loans, in each
case duly executed and delivered (and, where appropriate, acknowledged) by
Persons satisfactory to the Administrative Agent in recordable form, in
form and substance satisfactory to the Administrative Agent (which Mortgage
shall be junior in priority to the Mortgage executed and delivered pursuant
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to clause (e) above), it being understood that, to the extent the
respective real property to be covered by such Mortgage is not owned (but
is leased) by the Borrower, the Borrower shall request the respective
lessor of such property to execute a consent to such Mortgage in form and
substance satisfactory to the Administrative Agent (and shall use
reasonable efforts to obtain such consent), but shall not be required to
deliver such consent in the event such landlord refuses to execute and
deliver the same (and shall not be required to execute and deliver such
Mortgage if the same would result in a default under the respective lease).
In addition, the Borrower shall have paid to the respective title companies
an amount equal to the recording and stamp taxes payable in connection with
recording such Mortgages in the appropriate county land offices.
(g) Repayment of Existing Indebtedness. Evidence that the principal of
and interest on, and all other amounts owing in respect of, any
Indebtedness or other obligations (including, without limitation, any
contingent or other amounts payable in respect of letters of credit)
secured by any Lien on the Property or equipment purchased or to be
purchased shall have been (or shall be simultaneously) released (or
arrangements for such release satisfactory to the Administrative Agent
shall have been made).
(h) Insurance. To the extent that the proceeds of such Loans are being
applied to finance in whole or in part any Acquisition, certificates of
insurance evidencing the existence of all insurance required to be
maintained by the Obligors pursuant to Section 9.04, and the designation of
the Administrative Agent as the loss payee or additional named insured (as
the case may be) thereunder, to the extent required by Section 9.04, with
respect to the Property or equipment purchased or to be purchased in such
Capital Transaction, such certificates to be in such form and contain such
information as is specified in Section 9.04. In addition, the Borrower
shall have delivered (i) a certificate of a senior financial officer of the
Borrower setting forth the insurance obtained by it in accordance with the
requirements of Section 9.04 and stating that such insurance is in full
force and effect and that all premiums then due and payable thereon have
been paid and (ii) a written report, dated reasonably near the date such
Loans are being made, of AON Risk Services, Inc., or any other firm of
independent insurance brokers of nationally recognized standing, as to such
insurance and stating that, in their opinion, such insurance is in
compliance with the
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provisions of Section 9.04 as to the Property or equipment purchased or to
be purchased in such Capital Transaction.
(i) Environmental Survey. To the extent the proceeds of such Loan are
to be applied to consummate the Initial Acquisitions, the environmental
surveys and assessments with respect to the Parks to be purchased pursuant
to such Acquisitions referred to in Schedule II; otherwise, to the extent
the proceeds of such Loans are to be applied to the purchase (or to
reimburse the Borrower for the purchase) in whole or in part of real
property, an environmental survey and assessment prepared by a firm of
licensed engineers (familiar with the identification of toxic and hazardous
substances) in form and substance satisfactory to the Administrative Agent,
such environmental survey and assessment to be based upon physical on-site
inspections by such firm of such real property, as well as an historical
review of the uses of such real property.
(j) Borrower Portion of Purchase Price. Evidence that at least 50% of
the aggregate purchase price (including related fees and expenses) of the
Property purchased or to be purchased in such Acquisition, or the items of
equipment purchased or to be purchased, shall be paid in cash by the
Borrower concurrently with the making of such Loan.
(k) Intercompany Lease. In the case of any equipment purchased or to
be purchased that is to be used at a Park other than a Park owned by the
Borrower, the Borrower and the respective Subsidiary owning such park shall
have entered into a lease in form and substance satisfactory to the
Administrative Agent and the Arranger covering such equipment.
(l) Consummation of Initial Acquisition. To the extent that the
proceeds of such Loans are being applied to finance in whole or in party
any Acquisition, evidence that such Acquisition shall have been (or shall
be simultaneously) consummated in all material respects in accordance with
the terms of the respective Acquisition Agreement (except for any
modifications, supplements or material waivers thereof, or written consents
or determinations made by the parties thereto, that shall be satisfactory
to the Majority Lenders), and the Administrative Agent shall have received
a certificate of a senior financial officer of the Borrower to such effect
and to the effect that attached thereto are true and complete copies of the
documents delivered in connection with the
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closing of such Acquisition pursuant to such Initial Acquisition Agreement.
In addition, the Administrative Agent shall have received copies of the
legal opinions delivered to the Borrower pursuant to such Acquisition
Agreement in connection with such Acquisition, together with a letter from
each Person delivering such opinion (or authorization within such opinion)
authorizing reliance thereon by the Administrative Agent and the Lenders,
it being understood that, in the case of any of the Initial Acquisition
Agreements, the Borrower shall request counsel for the respective seller to
deliver such a reliance letter (and shall use reasonable efforts to obtain
such reliance letter), but shall not be required to deliver such reliance
letter in the event such counsel refuses to execute and deliver the same.
(m) 1995 Senior Notes Indenture Compliance. The Borrower shall have
delivered to the Administrative Agent a certificate of a senior financial
officer of the Borrower demonstrating that such Loans may be permissibly
incurred under the tests set forth in Section 4.03 of the 1995 Senior Notes
Indenture.
(n) Other Documents. Such other documents as the Administrative Agent
or any Lender or special New York counsel to the Arranger may reasonably
request.
7.03 All Extensions of Credit. The obligation of the Lenders to make any
Loan to the Borrower upon the occasion of each extension of credit hereunder
(including the initial extension of credit, but excluding any Continuation or
Conversion of Loans) is subject to the further conditions precedent that, both
immediately prior to the making of such extension of credit and also after
giving effect thereto and to the intended use thereof:
(a) the representations and warranties made by the Borrower in Section
8, and by each Obligor in each of the other Loan Documents to which it is a
party, shall be true and complete on and as of the date of the making of
such extension of credit with the same force and effect as if made on and
as of such date (or, if any such representation or warranty is expressly
stated to have been made as of a specific date, as of such specific date);
and
(b) no Default shall have occurred and be continuing.
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Each notice of borrowing, or request for issuance of a Letter of Credit, by the
Borrower hereunder shall constitute a certification by the Borrower to the
effect set forth in the preceding sentence (both as of the date of such notice
or request and, unless the Borrower otherwise notifies the Administrative Agent
prior to the date of such borrowing or issuance, as of the date of such
borrowing or issuance).
Section 8. Representations and Warranties. The Borrower represents and
warrants to the Administrative Agent and the Lenders that:
8.01 Organization; Powers. Each of the Borrower and its Subsidiaries (other
than Inactive Subsidiaries, as to which the Borrower makes no representation or
warranty): (a) is a corporation, partnership or other entity duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization; and (b) is qualified to do business and is in good standing in all
jurisdictions in which the nature of the business conducted by it makes such
qualification necessary and where failure so to qualify could (either
individually or in the aggregate) have a Material Adverse Effect.
8.02 Financial Condition. The Borrower has heretofore furnished to each of
the Lenders the following financial statements:
(i) the consolidated balance sheets of the Borrower and its
Subsidiaries as at December 31, 1993, 1994 and 1995 and the related
consolidated statements of operations, shareholders' equity and cash flows
of the Borrower and its Subsidiaries for the respective fiscal years ended
on said dates, with the opinion thereon of KPMG Peat Marwick LLP;
(ii) Park-level statements of operating data for the nine-month period
ended September 30, 1996, for each of the Existing Parks;
(iii) a pro forma unaudited consolidated statement of operations data
of the Borrower and its Subsidiaries as at the fiscal year ended December
31, 1995, prepared under the assumption that the acquisition of all of the
capital stock of Funtime Parks, Inc. in August 1995 had occurred as of
January 1, 1995;
(iv) an unaudited consolidated balance sheet of the Borrower and its
Subsidiaries as at June 30, 1996 and the
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related unaudited consolidated statements of operations, shareholders'
equity and cash flows of the Borrower and its Subsidiaries for the
six-month period ended on said date; and
(v) with respect to the Parks to be acquired in the Initial
Acquisitions, (x) audited financial statements for the two most recent
complete fiscal years of the respective sellers of such Parks (except that
the fiscal year financial statements of the seller under the Great Escape
Acquisition are not audited, but have been reviewed, by the respective
independent accountants) and (y) in the case of each Park to be acquired in
such Acquisition, Park-level statements of operating data for the
nine-month period ended September 30, 1996.
All such financial statements are complete and fairly present in all material
respects the actual or pro forma (as the case may be) consolidated financial
condition of the Borrower and its Subsidiaries (or, in the case of clause (ii)
or (v) above, the respective Parks and entities referred to therein) as at said
respective dates and the actual or pro forma (as the case may be) consolidated
results of their operations for the applicable periods ended on said respective
dates, all in accordance with generally accepted accounting principles and
practices applied on a consistent basis (except that, in the case of Park-level
operating data, the Borrower represents only that such statements have been
prepared in accordance with the Borrower's, or the respective seller's, internal
accounting practices). None of the Borrower nor any of its Subsidiaries has on
the date hereof any material contingent liabilities, liabilities for taxes,
unusual forward or long-term commitments or unrealized or anticipated losses
from any unfavorable commitments, except as referred to or reflected or provided
for in said balance sheet as at June 30, 1996. Since June 30, 1996, there has
been no material adverse change in the consolidated financial condition,
operations, business or prospects taken as a whole of the Borrower and its
Subsidiaries from that set forth in said financial statements as at said date.
8.03 Litigation. Except as set forth in Schedule V, there are no legal or
arbitral proceedings, or any proceedings by or before any governmental or
regulatory authority or agency, now pending or (to the knowledge of the
Borrower) threatened against the Borrower or any of its Subsidiaries that, if
adversely determined, could (either individually or in the aggregate) have a
Material Adverse Effect.
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8.04 No Breach. None of the execution and delivery of this Agreement and
the Notes and the other Basic Documents, the consummation of the transactions
herein and therein contemplated or compliance with the terms and provisions
hereof and thereof will conflict with or result in a breach of, or require any
consent under, the charter, by-laws or other organizational documents of any
Obligor, or any applicable law or regulation, or any order, writ, injunction or
decree of any court or governmental authority or agency, or any agreement or
instrument to which the Borrower or any of its Subsidiaries is a party or by
which any of them or any of their Property is bound or to which any of them is
subject, or constitute a default under any such agreement or instrument, or
(except for the Liens created pursuant to the Security Documents) result in the
creation or imposition of any Lien upon any Property of the Borrower or any of
its Subsidiaries pursuant to the terms of any such agreement or instrument,
except that the granting of a Lien upon contracts entered into in the ordinary
course of business by the Borrower and its Subsidiaries (which contracts are
not, individually or in the aggregate, material to the operations of any Park)
may conflict with restrictions upon assignments contained in such contracts.
8.05 Action. Each Obligor has all necessary corporate or other power,
authority and legal right to execute, deliver and perform its obligations under
each of the Basic Documents to which it is a party; the execution, delivery and
performance by each Obligor of each of the Basic Documents to which it is a
party have been duly authorized by all necessary corporate or other action on
its part (including, without limitation, any required shareholder approvals);
and this Agreement has been duly and validly executed and delivered by each
Obligor and constitutes, and each of the Notes and the other Basic Documents to
which it is a party when executed and delivered by such Obligor (in the case of
the Notes, for value) will constitute, its legal, valid and binding obligation,
enforceable against each Obligor in accordance with its terms, except as such
enforceability may be limited by (a) bankruptcy, insolvency, reorganization,
moratorium or similar laws of general applicability affecting the enforcement of
creditors' rights and (b) the application of general principles of equity
(regardless of whether such enforceability is considered in a proceeding in
equity or at law).
8.06 Approvals. No authorizations, approvals or consents of, and no filings
or registrations with, any governmental or regulatory authority or agency, or
any securities exchange, are necessary for the execution, delivery or
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performance by any Obligor of this Agreement or any of the other Basic Documents
to which it is a party or for the legality, validity or enforceability hereof or
thereof, except for filings and recordings in respect of the Liens created
pursuant to the Security Documents and except for the authorizations, approvals
and consents contemplated by the Acquisition Agreements, each of which will be
duly issued or obtained prior to the date on which the respective Acquisitions
shall be consummated and each of which shall be in full force.
8.07 Properties and Permits, Etc.
(a) Each of the Borrower and its Subsidiaries (other than Inactive
Subsidiaries, as to which the Borrower makes no representation or warranty) has
good and marketable title to, or valid leasehold interests in, all of its
material Properties, except for defects in title that do not materially
interfere with its ability to conduct its business as currently conducted or to
utilize such properties and assets for their intended purposes. All such
material Properties are free and clear of Liens, other than Liens permitted by
Section 9.06.
(b) Each of the Borrower and its Subsidiaries (other than Inactive
Subsidiaries, as to which the Borrower makes no representation or warranty) has
complied with all material obligations under all material leases to which it is
a party and all such leases are in full force and effect. Each of the Borrower
and its Subsidiaries (other than Inactive Subsidiaries, as to which the Borrower
makes no representation or warranty) enjoys peaceful and undisturbed possession
under all such material leases.
(c) Each of the Borrower and its Subsidiaries (other than Inactive
Subsidiaries, as to which the Borrower makes no representation or warranty)
owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and
other intellectual property material to its business, and the use thereof by the
Borrower and such 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.
(d) Each of the Borrower and its Subsidiaries (other than Inactive
Subsidiaries, as to which the Borrower makes no representation or warranty)
holds all material permits, licenses and other governmental authorizations
necessary to enable it to operate the Existing Parks as heretofore conducted
(other than seasonal permits, which it anticipates will be obtained in the
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normal course), and will, upon the consummation of any Acquisition, hold all
material permits, licenses and other governmental authorizations necessary to
enable it to operate the respective Park acquired in such Acquisition (other
than seasonal permits, which it anticipates will be obtained in the normal
course and, in the case of the Parks to be acquired in the Initial Acquisitions,
other than liquor licenses which it anticipates will be obtained in the normal
course).
8.08 Environmental Matters. Each of the Borrower and its Subsidiaries has
obtained all environmental, health and safety permits, licenses and other
authorizations required under all Environmental Laws to carry on its business as
now being or as proposed to be conducted, except to the extent failure to have
any such permit, license or authorization would not (either individually or in
the aggregate) have a Material Adverse Effect. Each of such permits, licenses
and authorizations is in full force and effect and each of the Borrower and its
Subsidiaries is in compliance with the terms and conditions thereof, and is also
in compliance with all other limitations, restrictions, conditions, standards,
prohibitions, requirements, obligations, schedules and timetables contained in
any applicable Environmental Law or in any regulation, code, plan, order,
decree, judgment, injunction, notice or demand letter issued, entered,
promulgated or approved thereunder, except to the extent failure to comply
therewith would not (either individually or in the aggregate) have a Material
Adverse Effect.
In addition, except as set forth in Schedule II (or, in the case of the
Existing Parks and the Parks to be acquired pursuant to the Initial Acquisition,
as set forth in the reports referred to in Schedule II):
(a) No notice, notification, demand, request for information,
citation, summons or order has been issued, no complaint is pending, no
penalty has been assessed and no investigation or review is pending or
threatened by any governmental or other entity 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 that (either individually
or in
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the aggregate) would materially adversely affect the operations of any
Park.
(b) Neither the Borrower nor any of its Subsidiaries owns, operates or
leases on the date hereof a treatment, storage or disposal facility
requiring a permit under the Resource Conservation and Recovery Act of
1976, as amended, or under any comparable state or local statute; and none
of the conditions set forth below exists that would (either individually or
in the aggregate) materially adversely affect the operations of any Park or
have a Material Adverse Effect:
(i) no polychlorinated biphenyls (PCB's) are or have been present
at any site or facility now or previously owned, operated or leased by
the Borrower or any of its Subsidiaries;
(ii) no asbestos or asbestos-containing materials is or has been
present at any site or facility now or previously owned, operated or
leased by the Borrower or any of its Subsidiaries;
(iii) there are no underground storage tanks or surface
impoundments for Hazardous Materials, active or abandoned, at any site
or facility now or previously owned, operated or leased by the
Borrower or any of its Subsidiaries;
(iv) no Hazardous Materials have been Released at, on or under
any site or facility now or previously owned, operated or leased by
the Borrower or any of its Subsidiaries in a reportable quantity
established by statute, ordinance, rule, regulation or order; and
(v) no Hazardous Materials have been otherwise Released at, on or
under any site or facility now or previously owned, operated or leased
by the Borrower or any of its Subsidiaries that would (either
individually or in the aggregate) have a Material Adverse Effect.
(c) Neither the Borrower nor any of its Subsidiaries has transported
or arranged for the transportation of any Hazardous Material to any
location that is listed on the National Priorities List ("NPL") under the
Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended ("CERCLA"), listed for possible inclusion on the NPL by
the Environmental Protection Agency
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in the Comprehensive Environmental Response and Liability Information
System, as provided for by 40 C.F.R. ss. 300.5 ("CERCLIS"), or on any
similar state or local list or that is the subject of Federal, state or
local enforcement actions or other investigations that may lead to
Environmental Claims against the Borrower or any of its Subsidiaries, in
any such case that would (either individually or in the aggregate)
materially adversely affect the operations of any Park or have a Material
Adverse Effect.
(d) As of the date hereof, no Hazardous Material generated by the
Borrower or any of its Subsidiaries has been recycled, treated, stored,
disposed of or Released by the Borrower or any of its Subsidiaries at any
location other than those listed in Schedule II.
(e) No oral or written notification of a Release of a Hazardous
Material has been filed by or on behalf of the Borrower or any of its
Subsidiaries and no site or facility now or previously owned, operated or
leased by the Borrower or any of its Subsidiaries is listed or proposed for
listing on the NPL, CERCLIS or any similar state list of sites requiring
investigation or clean-up, in any such case that would (either individually
or in the aggregate) materially adversely affect the operations of any Park
or have a Material Adverse Effect.
(f) No Liens have arisen under or pursuant to any Environmental Laws
on any site or facility owned, operated or leased by the Borrower or any of
its Subsidiaries, and no government action has been taken or is in process
that could subject any such site or facility to such Liens and neither the
Borrower nor any of its Subsidiaries would be required to place any notice
or restriction relating to the presence of Hazardous Materials at any site
or facility owned by it in any deed to the real property on which such site
or facility is located, in any such case to the extent such Lien secured
obligations (or would secure obligations) in an amount in excess of
$100,000 or that would adversely affect the operation of any Park.
(g) All environmental investigations, studies, audits, tests, reviews
or other similar analyses conducted by or that are in the possession of the
Borrower or any of its Subsidiaries in relation to facts, circumstances or
conditions at or affecting any site or facility now or previously owned,
operated or leased by the Borrower or any
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of its Subsidiaries and that could result in a Material Adverse Effect have
been made available to the Lenders, including the environmental surveys and
assessments set forth in Schedule II.
8.09 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.
8.10 Investment Company Act. Neither the Borrower nor any of its
Subsidiaries is an "investment company", or a company "controlled" by an
"investment company", within the meaning of the Investment Company Act of 1940,
as amended.
8.11 Public Utility Holding Company Act. Neither the Borrower nor any of
its Subsidiaries is a "holding company", or an "affiliate" of a "holding
company" or a "subsidiary company" of a "holding company", within the meaning of
the Public Utility Holding Company Act of 1935, as amended.
8.12 Taxes. The Borrower and its Subsidiaries are members of an affiliated
group of corporations filing consolidated returns for Federal income tax
purposes, of which the Borrower is the "common parent" (within the meaning of
Section 1504 of the Code) of such group. The Borrower and its Subsidiaries have
filed all Federal income tax returns and all other material tax returns that are
required to be filed by them and have paid all taxes due pursuant to such
returns or pursuant to any assessment received by the Borrower or any of its
Subsidiaries. The charges, accruals and reserves on the books of the Borrower
and its Subsidiaries in respect of taxes and other governmental charges are, in
the opinion of the Borrower, adequate.
8.13 ERISA. Each Plan, and, to the knowledge of the Borrower, each
Multiemployer Plan, is in compliance in all material respects with, and has been
administered in all material respects in compliance with, the applicable
provisions of ERISA, the Code and any other Federal or State law, and no ERISA
Event has occurred and is continuing as to which the Borrower would be under an
obligation to furnish a report to the Lenders under Section 9.02(c).
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8.14 True and Complete Disclosure. The information, reports, financial
statements, exhibits and schedules furnished in writing by or on behalf of the
Obligors to the Administrative Agent or any Lender in connection with the
negotiation, preparation or delivery of this Agreement and the other Loan
Documents or included herein or therein or delivered pursuant hereto or thereto,
when taken as a whole (together with the Information Memorandum) do not contain
any untrue statement of material fact or omit to state any material fact
necessary to make the statements herein or therein, in light of the
circumstances under which they were made, not misleading, provided that, with
respect to projected financial information, the Borrower represents only that
such information was prepared in good faith based upon assumptions believed to
be reasonable at the time.
All written information furnished after the date hereof by the Borrower and
its Subsidiaries to the Administrative Agent and the Lenders in connection with
this Agreement and the other Loan Documents and the transactions contemplated
hereby and thereby will be true, complete and accurate in every material
respect, or (in the case of projections) based on reasonable estimates, on the
date as of which such information is stated or certified. There is no fact known
to the Borrower that could have a Material Adverse Effect that has not been
disclosed herein, in the other Loan Documents or in a report, financial
statement, exhibit, schedule, disclosure letter or other writing furnished to
the Lenders for use in connection with the transactions contemplated hereby or
thereby.
8.15 Use of Credit. 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 Loan
hereunder will be used to buy or carry any Margin Stock.
8.16 Material Agreements and Liens.
(a) Part A of Schedule I is a complete and correct list of each credit
agreement, loan agreement, indenture, purchase agreement, guarantee, letter of
credit or other arrangement providing for or otherwise relating to any
Indebtedness to, or guarantee of Indebtedness by, the Borrower or any of its
Subsidiaries outstanding on the date hereof, 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
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such arrangement is correctly described in Part A of Schedule I; the aggregate
of all such Indebtedness, the principal or face amount of which is under
$100,000 and which is accordingly not so listed does not exceed $250,000.
(b) Part B of Schedule I is a complete and correct list of each Lien
securing Indebtedness of any Person outstanding on the date hereof, the
aggregate principal or face amount of which equals or exceeds (or may equal or
exceed) $100,000 and covering any Property of the Borrower or any of its
Subsidiaries, and the aggregate Indebtedness secured (or that may be secured) by
each such Lien and the Property covered by each such Lien is correctly described
in Part B of Schedule I.
8.17 Capitalization. The authorized capital stock of the Borrower consists,
on the date hereof, of an aggregate of 30,500,000 shares consisting of (i)
30,000,000 shares of common stock, par value $.05 per share, of which 11,357,232
shares were issued and outstanding as of September 30, 1996 (and 26,345 shares
of which were held in treasury as at said date), each of which shares is fully
paid and nonassessable and (ii) 500,000 shares of preferred stock, of which none
are issued and outstanding on the date hereof (and no shares of which were held
in treasury), each of which shares is fully paid and nonassessable. As of the
date hereof, (x) except for warrants held by the chief executive officer of the
Borrower and options issued pursuant to employee plans, there are no outstanding
Equity Rights with respect to the Borrower and (y) there are no outstanding
obligations of the Borrower or any of its Subsidiaries to repurchase, redeem, or
otherwise acquire any shares of capital stock of the Borrower nor are there any
outstanding obligations of the Borrower or any of its Subsidiaries to make
payments to any Person, such as "phantom stock" payments, where the amount
thereof is calculated with reference to the fair market value or equity value of
the Borrower or any of its Subsidiaries.
8.18 Subsidiaries and Investments.
(a) Set forth in Part A of Schedule III is a complete and correct list of
all of the Subsidiaries of the Borrower as of the date hereof (other than
Inactive Subsidiaries, as to which the Borrower makes no representation or
warranty), together with, for each such 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
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disclosed in Part A of Schedule III, as of the date hereof, (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 III, (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. The aggregate assets of all Inactive Subsidiaries do not have a
value in excess of $10,000.
(b) Set forth in Part B of Schedule III is a complete and correct list of
all Investments (other than Investments disclosed in Part A of Schedule III or
of the type referred to in clauses (b), (c), (d) or (e) of Section 9.08) held by
the Borrower or any of its Subsidiaries in any Person on the date hereof 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 III, 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.
(c) None of the Subsidiaries of the Borrower is, on the date hereof,
subject to any indenture, agreement, instrument or other arrangement of the type
described in Section 9.15(c), other than the 1995 Senior Notes Indenture.
(d) Each of the Subsidiaries of the Borrower on the date hereof (other than
certain of the Inactive Subsidiaries) is a "Restricted Subsidiary" under and as
defined in the 1995 Senior Notes Indenture.
8.19 Parks; Real Property. Set forth in Part A of Schedule IV is a complete
and correct list of all of the amusement and attraction parks owned by the
Obligors on the date hereof. Set forth in Part B of Schedule IV is a complete
and correct list, as of the date hereof of all of the real property interests
held by the Borrower and its Subsidiaries, indicating in each case whether the
respective Property is owned or leased, the identity of the owner or lessee and
the location of the respective Property.
8.20 Insurance. Set forth on Schedule VI is a complete and correct
description of all insurance maintained by the Obligors as of the date hereof.
As of the date hereof, all
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of such insurance is in full force and effect and no premiums are past due in
respect thereof.
8.21 Certain Agreements, Etc. The Borrower has heretofore delivered to the
Arranger a true and complete copy (including any modifications or supplements
thereto) of each of the Initial Acquisition Agreements, the 1995 Senior Notes
Indenture, the Leases and the Allocation Agreement.
Section 9. Covenants of the Borrower. The Borrower covenants and agrees
with the Lenders and the Administrative Agent that, so long as any Commitment,
Loan or Letter of Credit Liability is outstanding and until payment in full of
all amounts payable by the Borrower hereunder:
9.01 Financial Statements and Other Information. The Borrower shall deliver
to each of the Lenders:
(a) as soon as available and in any event within 90 days after the
end of each fiscal year of the Borrower:
(x) consolidated statements of operations, shareholders' equity
and cash flows of the Borrower and its Subsidiaries for such fiscal
year and the related consolidated balance sheets of the Borrower and
its Subsidiaries as at the end of such fiscal year, setting forth in
each case in comparative form the corresponding consolidated figures
for the preceding fiscal year, accompanied by an opinion thereon of
independent certified public accountants of recognized national
standing, which opinion shall state that such consolidated financial
statements fairly present the consolidated financial condition and
results of operations of the Borrower and its Subsidiaries as at the
end of, and for, such fiscal year in accordance with generally
accepted accounting principles, and a statement of such accountants to
the effect that, in making the examination necessary for their
opinion, nothing came to their attention that caused them to believe
that the Borrower was not in compliance with Section 9.10, insofar as
such Section relates to accounting matters,
(y) consolidating statements of operations of the Borrower and
its Subsidiaries for such fiscal year and the related consolidating
balance sheets of the Borrower and its Subsidiaries as at the end of
such
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fiscal year, accompanied by a certificate of a senior financial
officer of the Borrower, which certificate shall state that such
consolidating financial statements fairly present the respective
individual unconsolidated financial condition and results of
operations of the Borrower and of each of its Subsidiaries, in each
case in accordance with generally accepted accounting principles,
consistently applied, as at the end of, and for, such fiscal year, and
(z) Park-level statements of operating data (including revenue
and expense items and showing the calculation of EBITDA, or
equivalent, for the respective Park) for such fiscal year for each of
the Parks of the Borrowers and its Subsidiaries, in each case prepared
in accordance with the Borrower's internal accounting practices in
form and detail substantially similar to the corresponding statements
set forth in the Information Memorandum;
(b) as soon as available and in any event within 45 days after the end
of each quarterly fiscal period of each fiscal year of the Borrower:
(x) consolidated statements of operations, shareholders' equity
and cash flows of the Borrower and its Subsidiaries for such period
and for the period from the beginning of the respective fiscal year to
the end of such period, and the related consolidated balance sheets of
the Borrower and its Subsidiaries as at the end of such period,
setting forth in each case in comparative form the corresponding
consolidated figures for the corresponding periods in the preceding
fiscal year (except that, in the case of balance sheets, such
comparison shall be to the last day of the prior fiscal year),
accompanied by a certificate of a senior financial officer of the
Borrower, which certificate shall state that such consolidated
financial statements fairly present the consolidated financial
condition and results of operations of the Borrower and its
Subsidiaries, in each case in accordance with generally accepted
accounting principles, consistently applied, as at the end of, and
for, such period (subject to normal year-end audit adjustments), and
(y) Park-level statements of operating data (including revenue
and expense items and showing the
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calculation of EBITDA, or equivalent, for the respective Park) for the
period from the beginning of such fiscal year to the end of such
fiscal quarter and setting forth in comparative form the figures for
the corresponding period in the preceding fiscal year, in each case
prepared in accordance with the Borrower's internal accounting
practices in form and detail substantially similar to the
corresponding statements set forth in the Information Memorandum;
(c) concurrently with any delivery of financial statements under
clause (a) or (b) of this Section 9.01, a certificate of a senior financial
officer of the Borrower (i) to the effect that no Default has occurred and
is continuing (or, if any Default has occurred and is continuing,
describing the same in reasonable detail and describing the action that the
Borrower has taken or proposes to take with respect thereto) and (ii)
setting forth in reasonable detail the computations necessary to determine
whether the Borrower was in compliance with Sections 9.08(i), 9.09 or 9.10
as of the end of the respective quarterly fiscal period or fiscal year;
(d) promptly upon their becoming available, copies of all registration
statements and regular periodic reports, if any, that the Borrower shall
have filed with the Securities and Exchange Commission (or any governmental
agency substituted therefor) or any national securities exchange;
(e) promptly upon the mailing thereof to the shareholders of the
Borrower generally or to holders of the 1995 Senior Notes or Subordinated
Indebtedness generally, copies of all financial statements, reports and
proxy statements so mailed;
(f) promptly upon receipt thereof, copies of any management letters
prepared by the Borrower's independent public accountants with respect to
the audit of the financial statements of the Borrower and its Subsidiaries;
(g) within 31 days after the end of each fiscal year, a detailed pro
forma annual operating budget for the following fiscal year in form and
detail satisfactory to the Administrative Agent;
(h) within five Business Days after the end of each of the months of
June, July, August, September and October, a performance report detailing
on a park-by-park basis
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attendance and revenue for the preceding month and showing a comparison to
budget and to the same period in the prior year; and
(i) from time to time such other information regarding the financial
condition, operations, business or prospects of the Borrower or any of its
Subsidiaries (including, without limitation, any Plan or Multiemployer Plan
and any reports or other information required to be filed under ERISA), or
compliance with the terms of this Agreement, as any Lender or the
Administrative Agent may reasonably request.
9.02 Notices of Material Events. The Borrower will furnish the following to
the Administrative Agent and each Lender in writing:
(a) promptly after the Borrower knows or any executive officer of the
Borrower has actual knowledge of facts that would give him or her reason to
believe that any Default has occurred, notice of such Default;
(b) prompt notice of all legal or arbitral proceedings, and of all
proceedings by or before any governmental or regulatory authority or
agency, and of any material development in respect of such legal or other
proceedings, affecting the Borrower or any of its Subsidiaries, except
proceedings that, if adversely determined, would not (either individually
or in the aggregate) have a Material Adverse Effect;
(c) as soon as possible, and in any event within ten days after the
Borrower knows or has reason to believe that any ERISA Event has occurred
or exists, notice of the occurrence of such ERISA Event and a copy of any
report or notice required to be filed with or given to the PBGC by the
Borrower or an ERISA Affiliate with respect to such ERISA Event;
(d) prompt notice of the assertion of any Environmental Claim by any
Person against, or with respect to the activities of, the Borrower or any
of its Subsidiaries and notice of any alleged violation of or
non-compliance with any Environmental Laws or any permits, licenses or
authorizations, other than any Environmental Claim or alleged violation
that, if adversely determined, would not (either individually or in the
aggregate) result
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in remediation costs of less than $100,000 or adversely affect the
operation of any Park; and
(e) prompt notice of any other development that results in, or could
reasonably be expected to result in, a Material Adverse Effect.
Each notice delivered under this Section 9.02 shall be accompanied by a
statement of a senior financial officer or other executive officer of the
Borrower setting forth the details of the event or development requiring such
notice and any action taken or proposed to be taken with respect thereto.
9.03 Existence, Etc. The Borrower will, and will cause each of its
Subsidiaries to:
(a) preserve and maintain its legal existence and all material
permits, licenses and other governmental authorizations necessary to enable
it to operate each of its Parks (other than seasonal permits, which it
anticipates will be obtained in the normal course and, in the case of the
Parks to be acquired in the Initial Acquisitions, other than liquor
licenses which it anticipates will be obtained in the normal course),
provided that nothing in this Section 9.03 shall prohibit any transaction
expressly permitted under Section 9.05;
(b) comply with the requirements of all applicable laws, rules,
regulations and orders of governmental or regulatory authorities if failure
to comply with such requirements could (either individually or in the
aggregate) have a Material Adverse Effect;
(c) pay and discharge all Federal income taxes and all other material
taxes, assessments and governmental charges or levies imposed on it or on
its income or profits or on any of its Property prior to the date on which
penalties attach thereto, except for any such tax, assessment, charge or
levy the payment of which is being contested in good faith and by proper
proceedings and against which adequate reserves are being maintained;
(d) maintain and preserve all of its Properties material to the
conduct of the business and operations of the Borrower and its Subsidiaries
(taken as a whole) in good working order and condition, provided that, in
the case of any of the Property that is collateral security for any
Facility A or Facility B Term Loan, the Borrower will, and
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will cause each of its Subsidiaries to, maintain such Property in good
working order and condition, ordinary wear and tear excepted;
(e) keep adequate records and books of account, in which complete
entries will be made in accordance with generally accepted accounting
principles consistently applied; and
(f) permit representatives of any Lender or the Administrative Agent,
upon reasonable notice and during normal business hours, to examine, copy
and make extracts from its books and records, to inspect any of its
Properties, and to discuss its business and affairs with its officers and
the general managers of its Parks, all to the extent reasonably requested
by such Lender or the Administrative Agent (as the case may be).
9.04 Insurance. The Borrower will, and will cause each of its Subsidiaries
to, maintain insurance with financially sound and reputable insurance companies,
in amounts and against such losses and risks as the Borrower shall from time to
time reasonably determine is sufficient based upon its experience and industry
practice to protect the Borrower and its Subsidiaries and their respective
businesses, provided that the Borrower will in any event maintain (with respect
to itself and each of its Subsidiaries):
(1) Casualty Insurance -- insurance against loss or damage covering
all of the tangible real and personal Property and improvements of the
Borrower and each of its Subsidiaries by reason of any Peril (as defined
below) in such amounts (subject to (x) in the case of general liability
policies, per occurrence deductibles (or self-insurance retentions) not
exceeding $25,000, or $50,000 in the case of wave pool incidents, and (y)
in the case of property insurance deductibles, not exceeding $100,000 or,
in each case, such higher deductible as shall be satisfactory to the
Majority Lenders) as shall be reasonable and customary and sufficient to
avoid the insured named therein from becoming a co-insurer of any loss
under such policy but in any event in an amount (i) in the case of fixed
assets and equipment (including, without limitation, vehicles), at least
equal to 75% of the actual replacement cost of such assets (including,
without limitation, foundation, footings but excluding excavation costs),
subject to deductibles as aforesaid and (ii) in the case of
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inventory, not less than the fair market value thereof, subject to
deductibles as aforesaid.
(2) Automobile Liability Insurance for Bodily Injury and Property
Damage -- insurance against liability for bodily injury and property damage
in respect of all vehicles (whether owned, hired or rented by the Borrower
or any of its Subsidiaries) at any time located at, or used in connection
with, its Properties or operations in such amounts as are then customary
for vehicles used in connection with similar Properties and businesses, but
in any event to the extent required by applicable law.
(3) Comprehensive General Liability Insurance -- insurance against
claims for bodily injury, death or Property damage occurring on, in or
about the Properties (and adjoining streets, sidewalks and waterways, but
only to the extent of the legal liability of the Borrower and its
Subsidiaries therefor) of the Borrower and its Subsidiaries, in such
amounts as are then customary for Property similar in use in the
jurisdictions where such Properties are located (subject to deductibles not
exceeding $100,000, or such higher deductible as shall be satisfactory to
the Majority Lenders).
(4) Workers' Compensation Insurance -- workers' compensation insurance
(including, without limitation, Employers' Liability Insurance) to the
extent required by applicable law.
(5) Product Liability Insurance -- insurance against claims for bodily
injury, death or Property damage resulting from the use of products sold by
the Borrower or any of its Subsidiaries in such amounts as are then
customarily maintained by responsible persons engaged in businesses similar
to that of the Borrower and its Subsidiaries (subject to deductibles not
exceeding $100,000, or such higher deductible as shall be satisfactory to
the Majority Lenders).
(6) Business Interruption Insurance -- insurance against loss of
operating income (in an aggregate amount not less than $40,000,000, as to
the Borrower and its Subsidiaries as a whole, and subject to a deductible,
or self-insured amount, not in excess of $100,000, or such higher
deductible as shall be satisfactory to the Majority Lenders) by reason of
any Peril.
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Such insurance shall be written by financially responsible companies selected by
the Borrower and having an A. M. Best rating of "A" or better and being in a
financial size category of VIII or larger, or by other companies acceptable to
the Majority Lenders, and (other than workers' compensation) shall name the
Administrative Agent as loss payee (to the extent covering risk of loss or
damage to tangible property) and as an additional named insured as its interests
may appear (to the extent covering any other risk). Each policy referred to in
this Section 9.04 shall provide that it will not be canceled or reduced, or
allowed to lapse without renewal, except after not less than 30 days' notice to
the Administrative Agent and shall also provide that the interests of the
Administrative Agent and the Lenders shall not be invalidated by any act or
negligence of the Borrower or any Person having an interest in any Property
covered by a Mortgage nor by occupancy or use of any such Property for purposes
more hazardous than permitted by such policy nor by any foreclosure or other
proceedings relating to such Property. The Borrower will advise the
Administrative Agent promptly of any policy cancellation, reduction or
amendment.
On or before the Closing Date, the Borrower will deliver to the
Administrative Agent certificates of insurance satisfactory to the
Administrative Agent evidencing the existence of all insurance required to be
maintained by the Borrower hereunder setting forth the respective coverages,
limits of liability, carrier, policy number and period of coverage and showing
that such insurance will remain in effect through the October 31 falling at
least six months after the date hereof, subject only to the payment of premiums
as they become due (and attaching original copies of any policies with respect
to casualty insurance). Thereafter, on each September 15 in each year
(commencing with the first September 15 after the date hereof), the Borrower
will deliver to the Administrative Agent certificates of insurance evidencing
that all insurance required to be maintained by the Borrower hereunder will be
in effect through the October 31 of the calendar year following the calendar
year of the current September 15, subject only to the payment of premiums as
they become due. In addition, the Borrower will not modify any of the provisions
of any policy with respect to casualty insurance without delivering the original
copy of the endorsement reflecting such modification to the Administrative Agent
accompanied by a written report of AON Risk Services, Inc., or any other firm of
independent insurance brokers of nationally recognized standing, stating that,
in their opinion, such policy (as so modified) is in compliance with the
provisions of this Section 9.04. The Borrower will not obtain or carry separate
insurance concurrent in form or contributing in
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the event of loss with that required by this Section 9.04 unless the
Administrative Agent is the named insured thereunder, with loss payable as
provided herein. The Borrower will immediately notify the Administrative Agent
whenever any such separate insurance is obtained and shall deliver to the
Administrative Agent the certificates evidencing the same.
Without limiting the obligations of the Borrower under the foregoing
provisions of this Section 9.04, in the event the Borrower shall fail to
maintain in full force and effect insurance as required by the foregoing
provisions of this Section 9.04, then the Administrative Agent may, but shall
have no obligation so to do, procure insurance covering the interests of the
Lenders and the Administrative Agent in such amounts and against such risks as
the Administrative Agent (or the Majority Lenders) shall deem appropriate, and
the Borrower shall reimburse the Administrative Agent in respect of any premiums
paid by the Administrative Agent in respect thereof.
For purposes hereof, the term "Peril" means, collectively, fire, lightning,
flood, windstorm, hail, earthquake, explosion, riot and civil commotion,
vandalism and malicious mischief, damage from aircraft, vehicles and smoke and
all other perils covered by the "all-risk" endorsement then in use in the
jurisdictions where the Properties of the Borrower and its Subsidiaries are
located.
9.05 Prohibition of Fundamental Changes.
(a) Mergers. The Borrower will not, nor will it permit any of its
Subsidiaries to, enter into any transaction of merger or consolidation or
amalgamation, or liquidate, wind up or dissolve itself (or suffer any
liquidation or dissolution), except that the Borrower may liquidate or dissolve
any Inactive Subsidiary or D.L. Holdings, Inc.
(b) Restrictions on Acquisitions. The Borrower will not, nor will it permit
any of its Subsidiaries to, acquire any business or Property from, or capital
stock of, or be a party to any acquisition of, any Person except for purchases
of inventory and other Property to be sold or used in the ordinary course of
business, Investments permitted under Section 9.08(i) and Capital Expenditures
(to the extent the making of such Capital Expenditures will not result in a
violation of any of the provisions of Section 9.10).
(c) Restrictions on Sales. The Borrower will not, nor will it permit any of
its Subsidiaries to, convey, sell, lease,
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transfer or otherwise dispose of, in one transaction or a series of
transactions, any part of its business or Property, whether now owned or
hereafter acquired (including, without limitation, receivables and leasehold
interests, but excluding (i) used equipment, or other Property not used in the
business of the Borrower and its Subsidiaries, so long as the amount thereof
sold in any single fiscal year by the Borrower and its Subsidiaries shall not
have a fair market value in excess of $2,000,000, nor the amount thereof sold by
the Borrower and its Subsidiaries during the term of this Agreement have a fair
market value in excess of $5,000,000, and (ii) any inventory or other Property
sold or disposed of in the ordinary course of business).
(d) Certain Permitted Transactions. Notwithstanding the foregoing
provisions of this Section 9.05:
(i) Intercompany Mergers. Any Subsidiary of the Borrower may be merged
or consolidated with or into: (i) the Borrower if the Borrower shall be the
continuing or surviving corporation or (ii) any other Subsidiary of the
Borrower; provided that if any such transaction shall be between a
Subsidiary and a Wholly Owned Subsidiary, the Wholly Owned Subsidiary shall
be the continuing or surviving corporation.
(ii) Intercompany Dispositions. Any Subsidiary of the Borrower may
sell, lease, transfer or otherwise dispose of any or all of its Property
(upon voluntary liquidation or otherwise) to the Borrower or a Wholly Owned
Subsidiary of the Borrower.
(iii) Initial Acquisitions. The Borrower may consummate the Initial
Acquisitions pursuant to the Initial Acquisition Agreements, so long as
such Acquisitions are consummated on or before January 31, 1997, and so
long as:
(A) to the extent applicable, the Borrower shall have complied
with the provisions of Section 9.15, including, without limitation, to
the extent not theretofore delivered, delivery to the Administrative
Agent of (x) the certificates evidencing the capital stock of any new
Subsidiary formed in connection with such Acquisition, accompanied by
undated stock powers executed in blank, and (y) the agreements,
instruments, opinions of counsel and other documents required under
Section 9.15; and
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(B) immediately prior to such Acquisition and after giving effect
thereto, no Default shall have occurred and be continuing.
(iv) Subsequent Acquisitions. The Borrower or any Wholly Owned
Subsidiary of the Borrower may acquire any amusement or attraction park,
and the related assets, of any other Person (whether by way of purchase of
assets or stock, by merger or consolidation or otherwise), so long as:
(A) either (x) the entire aggregate purchase price is funded with
the proceeds of equity capital issued by the Borrower (including any
such proceeds held on the date hereof) or (y) such Acquisition is
consummated during any fiscal year ending after December 31, 1997, and
the entire aggregate purchase price is not in excess of 50% of the
cumulative sum of Excess Cash Flow for each of the complete fiscal
years during the period commencing on January 1, 1997 through and
including the last day of the most recently ended fiscal year (after
deducting from such 50% all previous Acquisitions made under this
clause (y) and all Restricted Payments made on or before the date of
such Acquisition pursuant to Section 9.09), provided that (I) the
Borrower shall have delivered to the Administrative Agent, at least
ten Business Days (but not more than twenty Business Days) prior to
the date of such Acquisition, a certificate of a senior financial
officer of the Borrower setting forth computations in reasonable
detail demonstrating satisfaction of the foregoing condition as at the
date of such certificate and (II) prior to, or concurrently with, the
making of such Acquisition, the Borrower shall prepay the Loans to the
extent required under Section 2.10(a);
(B) such Acquisition (if by purchase of assets, merger or
consolidation) shall be effected in such manner so that the acquired
business, and the related assets, are owned either by the Borrower or
a Wholly Owned Subsidiary of the Borrower and, if effected by merger
or consolidation involving the Borrower, the Borrower shall be the
continuing or surviving entity and, if effected by merger or
consolidation involving a Wholly Owned Subsidiary of the Borrower,
such Wholly Owned Subsidiary shall be the continuing or surviving
entity;
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(C) such Acquisition (if by purchase of stock) shall be effected
in such manner so that the acquired entity becomes a Wholly Owned
Subsidiary of the Borrower;
(D) the Borrower shall deliver to the Administrative Agent (which
shall promptly forward copies thereof to each Lender (1) as soon as
possible and in any event no later than ten days prior to the
consummation of each such Acquisition (or such earlier date as shall
be five Business Days after the execution and delivery thereof),
copies of the respective agreements or instruments pursuant to which
such Acquisition is to be consummated (including, without limitation,
any related management, non-compete, employment, option or other
material agreements), any schedules to such agreements or instruments
and all other material ancillary documents to be executed or delivered
in connection therewith and (2) promptly following request therefor
(but in any event within three Business Days following such request),
copies of such other information or documents (including, without
limitation, environmental risk assessments) relating to such
Acquisition as the Administrative Agent or the Majority Lenders shall
have reasonably requested (and which is available, or obtainable
within such period by the Borrower with reasonable efforts);
(E) to the extent applicable, the Borrower shall have complied
with the provisions of Section 9.15, including, without limitation, to
the extent not theretofore delivered, delivery to the Administrative
Agent of (x) the certificates evidencing the capital stock of any new
Subsidiary formed or acquired in connection with such Acquisition,
accompanied by undated stock powers executed in blank, and (y) the
agreements, instruments, opinions of counsel and other documents
required under Section 9.15;
(F) to the extent requested by the Borrower, the Borrower and the
Majority Lenders shall have agreed to a supplement to Schedule VII
setting forth pro forma adjustments to be made in determining EBITDA
after giving effect to such Acquisition; and
(G) immediately prior to such Acquisition and after giving effect
thereto, no Default shall have occurred and be continuing.
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9.06 Liens. The Borrower will not, nor will it permit any of its
Subsidiaries to, create, incur, assume or suffer to exist any Lien upon any of
its Property, whether now owned or hereafter acquired, except:
(a) Liens created pursuant to the Security Documents;
(b) Liens in existence on the date hereof and listed in Part B of
Schedule I (excluding, however, following the making of the initial Loans
hereunder, the Liens securing Indebtedness outstanding under the Existing
Credit Agreement);
(c) Liens imposed by any governmental authority for taxes, assessments
or charges not yet due or that are being contested in good faith and by
appropriate proceedings if adequate reserves with respect thereto are
maintained on the books of the Borrower or the affected Subsidiaries, as
the case may be, in accordance with GAAP;
(d) carriers', warehousemen's, mechanics', materialmen's, repairmen's,
landlord's or other like Liens arising in the ordinary course of business
that are not overdue for a period of more than 30 days or that are being
contested in good faith and by appropriate proceedings, and Liens securing
judgments but only to the extent for an amount and for a period not
resulting in an Event of Default under clause (j) of Section 10;
(e) pledges or deposits under worker's compensation, unemployment
insurance and other social security legislation;
(f) deposits to secure the performance of bids, trade contracts (other
than for Indebtedness), leases, statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature incurred in
the ordinary course of business; and
(g) easements, rights-of-way, restrictions and other similar
encumbrances incurred in the ordinary course of business and encumbrances
consisting of zoning restrictions, easements, licenses, restrictions on the
use of Property or minor imperfections in title thereto that, in the
aggregate, are not material in amount, and that do not in any case
materially detract from the value of the Property subject thereto or
interfere in any material respect with the
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ordinary conduct of the business of the Borrower or any of its
Subsidiaries.
9.07 Indebtedness. The Borrower will not, nor will it permit any of its
Subsidiaries to, create, incur or suffer to exist any Indebtedness except:
(a) Indebtedness to the Lenders hereunder;
(b) Indebtedness outstanding on the date hereof and listed in Part A
of Schedule I (excluding, however, following the making of the initial
Loans hereunder, the Indebtedness outstanding under the Existing Credit
Agreement);
(c) Subordinated Indebtedness of the Borrower incurred in accordance
with Section 9.11, so long as immediately upon receipt by the Borrower of
the Net Available Proceeds thereof the Borrower shall prepay the Loans to
the extent required under Section 2.10(b);
(d) Indebtedness of Subsidiaries of the Borrower to the Borrower or to
other Subsidiaries of the Borrower, and Guarantees by the Borrower or any
of its Wholly Owned Subsidiaries of obligations of the Borrower or any of
its Wholly Owned Subsidiaries; and
(e) Indebtedness in respect of New Senior Notes that are either issued
in exchange for the 1995 Senior Notes or the proceeds of which are applied
to the redemption of the 1995 Senior Notes, so long as (i) the effective
interest rate in respect of the New Senior Notes is not greater than the
effective interest rate in respect of the 1995 Senior Notes, (ii) the
covenants, events of default and mandatory redemption, repurchase or
prepayment provisions are not more burdensome on the Borrower and its
Subsidiaries, in any case, than the 1995 Senior Notes Indenture, (iii) the
New Senior Notes are unsecured and (iv) the final maturity, and weighted
average life to maturity, of the New Senior Notes are not earlier than the
corresponding maturities of the 1995 Senior Notes, and (v) the other
provisions of the New Senior Notes would not have a material adverse effect
upon the Lenders or the Administrative Agent.
Notwithstanding the foregoing, the Borrower will not incur, nor will it permit
any of its Subsidiaries to incur, after the date hereof, any Indebtedness (other
than the Guarantees of the Subsidiary Guarantors under Section 6) that either
(x) utilizes
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any of the availability for "Purchase Money Indebtedness" or "Capital Lease
Obligations" (as such capitalized terms are defined in the 1995 Senior Notes
Indenture) permitted to be incurred under Section 4.03(b)(vii) of the 1995
Senior Notes Indenture or (y) utilizes any of the availability for
"Indebtedness" (as so defined) permitted to be incurred under Section 4.03(b)(x)
of the 1995 Senior Notes Indenture.
9.08 Investments. The Borrower will not, nor will it permit any of its
Subsidiaries to, make or permit to remain outstanding any Investments except:
(a) Investments outstanding on the date hereof and identified in Part
B of Schedule III;
(b) operating deposit accounts with banks;
(c) Permitted Investments;
(d) Investments by the Borrower and its Wholly Owned Subsidiaries in
the Borrower and its Wholly Owned Subsidiaries, including Guarantees by the
Borrower or any of its Wholly Owned Subsidiaries of obligations of the
Borrower or any of its Wholly Owned Subsidiaries;
(e) Hedging Agreements, provided that when entering into any Hedging
Agreement that at the time has, or at any time in the future may give rise
to, any credit exposure, the aggregate credit exposure under all Hedging
Agreements (including the Hedging Agreement being entered into) shall not
exceed $1,000,000;
(f) Disposition Investments received in connection with any
Disposition permitted under Section 9.05 or any Disposition to which the
Lenders shall have consented in accordance with Section 12.03;
(g) Investments consisting of Acquisitions permitted under Section
9.05(d);
(h) Investments in an aggregate amount of up to but not exceeding
$100,000 during any fiscal year in 000 Xxxx 00xx Xxxxxx Associates L.P.;
and
(i) additional Investments up to but not exceeding $5,000,000 in the
aggregate.
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9.09 Restricted Payments. The Borrower will not, nor will it permit any of
its Subsidiaries to, declare or make any Restricted Payment at any time,
provided that, during any fiscal year (commencing with Excess Cash Flow for the
fiscal year ending December 31, 1997), the Borrower may make Restricted
Payments, subject to the satisfaction of each of the following conditions on the
date of such payment and after giving effect thereto:
(a) no Default shall have occurred and be continuing;
(b) the aggregate amount of such Restricted Payment is not in excess
of 50% of the cumulative sum of Excess Cash Flow for each of the complete
fiscal years during the period commencing on January 1, 1997 through and
including the last day of the most recently ended fiscal year (after
deducting from such 50% all previous Restricted Payments made under this
Section 9.09 and all Investments made on or before the date of such
Restricted Payment pursuant to Section 9.05(d)(iv)(A)(y);
(c) the Borrower shall have delivered to the Administrative Agent, at
least ten Business Days (but not more than twenty Business Days) prior to
the date of the proposed Restricted Payment, a certificate of a senior
financial officer of the Borrower setting forth computations in reasonable
detail demonstrating satisfaction of the foregoing conditions as at the
date of such certificate; and
(d) prior to, or concurrently with, the making of such Restricted
Payment, the Borrower shall prepay the Loans to the extent required under
Section 2.10(a).
In addition to the foregoing, the Borrower may redeem shares of preferred
stock issued by it after the date hereof from the proceeds of shares of common
stock issued by it after the date hereof, so long as the aggregate consideration
paid by it in respect of the redemption of such shares of preferred stock shall
not exceed an amount equal to 50% of the proceeds theretofore received by it in
respect of such shares of common stock.
Nothing herein shall be deemed to prohibit the payment of dividends by any
Subsidiary of the Borrower to the Borrower or to any other Subsidiary of the
Borrower.
9.10 Certain Financial Covenants.
(a) Leverage Ratio. The Borrower will not permit the Leverage Ratio to
exceed the following respective ratios as at
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the last day of any fiscal quarter during any of the following respective
periods:
Period Ratio
------ -----
From the Closing Date
through September 29, 1997 5.25 to 1
From September 30, 1997
through June 29, 1998 5.00 to 1
From June 30, 1998
through June 29, 1999 4.50 to 1
From June 30, 1999
through June 29, 2000 3.50 to 1
From June 30, 2000
and at all times thereafter 3.00 to 1
(b) Park Level Leverage Ratio. The Borrower will not permit the Park Level
Leverage Ratio for any of the Parks set forth below to exceed the following
respective ratios as at the last day of any fiscal quarter during any of the
following respective periods:
Period Ratio
------ -----
Elitch Great Water-
Gardens Escape World
------- ------ -----
From the Closing
Date through
June 29, 1998 9.00 to 1 4.00 to 1 3.50 to 1
From June 30,
1998 through
June 29, 1999 7.00 to 1 3.50 to 1 3.25 to 1
From June 30,
1999 through
June 29, 2000 5.00 to 1 3.00 to 1 3.00 to 1
From June 30, 2000
and at all times
thereafter 4.00 to 1 3.00 to 1 3.00 to 1
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For purposes hereof, the "Elitch Gardens Park" shall refer to the Park to be
acquired in the Elitch Gardens Acquisition, the "Great Escape Park" shall refer
to the Park to be acquired in the Great Escape Acquisition and the "Waterworld
Parks" shall refer to the Parks to be acquired in the Concord Acquisition and
FRE Acquisition.
(c) Interest Coverage Ratio. The Borrower will not permit the Interest
Coverage Ratio to be less than the following respective ratios as at the last
day of any fiscal quarter during any of the following respective periods:
Period Ratio
------ -----
From the Closing Date
through June 29, 1998 2.00 to 1
From June 30, 1998
through June 29, 1999 2.25 to 1
From June 30, 1999
through June 29, 2000 2.50 to 1
From June 30, 2000
and at all times thereafter 3.00 to 1
(d) Debt Service Coverage Ratio. The Borrower will not permit the Debt
Service Coverage Ratio to be less than the following respective ratios as at the
last day of any fiscal quarter during any of the following respective periods:
Period Ratio
------ -----
From the Closing Date
through June 29, 1998 2.00 to 1
From June 30, 1998
and at all times thereafter 1.50 to 1
(e) Fixed Charges Coverage Ratio. The Borrower will not permit the Fixed
Charges Ratio to be less than 1.05 as at the last day of any fiscal quarter
ending on or after June 30, 1999.
9.11 Subordinated Indebtedness. The Borrower may, after the date of this
Agreement, incur additional Indebtedness (i) for which the Borrower is directly
and primarily liable, (ii) that is subordinated to the obligations of the
Borrower to pay principal of and interest on the Loans, Notes, Reimbursement
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Obligations and other obligations hereunder on terms of subordination
satisfactory to the Majority Lenders, and pursuant to documentation containing
other terms (including, without limitation, interest, amortization, mandatory
prepayments, covenants and events of default) in form and substance satisfactory
to the Majority Lenders), (iii) in respect of which none of its Subsidiaries is
contingently or otherwise obligated, (iv) if at the time of issuance of such
Indebtedness and after giving effect thereto and to the application of the
proceeds thereof, the Borrower shall be in compliance with Section 9.10 (the
determination of compliance with such ratios to be calculated on a pro forma
basis as if such Indebtedness was incurred, and the proceeds thereof were so
applied, in each case, at the beginning of such period, and the Administrative
Agent shall have received a certificate of a senior financial officer of the
Borrower to such effect setting forth in reasonable detail the computations
necessary to determine such compliance) and (v) if immediately prior thereto and
after giving effect to the incurrence thereof, no Default shall have occurred
and be continuing, and the Administrative Agent shall have received a
certificate of a senior financial officer of the Borrower to such effect.
9.12 Lines of Business. The Borrower will not, nor will it permit any of
its Subsidiaries to, engage to any substantial extent in any line or lines of
business activity other than the business of owning and operating amusement and
attraction parks, and businesses related, ancillary or complementary thereto.
9.13 Transactions with Affiliates. Except as expressly permitted by this
Agreement, the Borrower will not, nor will it permit any of its Subsidiaries to,
directly or indirectly: (a) make any Investment in an Affiliate; (b) transfer,
sell, lease, assign or otherwise dispose of any Property to an Affiliate; (c)
merge into or consolidate with or purchase or acquire Property from an
Affiliate; or (d) enter into any other transaction directly or indirectly with
or for the benefit of an Affiliate (including, without limitation, Guarantees
and assumptions of obligations of an Affiliate); provided that (x) the Borrower
may sell shares of stock to Affiliates for consideration equal to the fair
market value thereof (as determined by the Board of Directors of the Borrower)
and may issue New Senior Notes or Subordinated Indebtedness to any Affiliate in
accordance with the provision of this Agreement, (y) any Affiliate who is an
individual may serve as a director, officer or employee of the Borrower or any
of its Subsidiaries and receive reasonable compensation for his or her services
in
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such capacity and (z) the Borrower and its Subsidiaries may enter into
transactions (other than extensions of credit by the Borrower or any of its
Subsidiaries to an Affiliate) providing for the leasing of Property, the
rendering or receipt of services or the purchase or sale of inventory and other
Property in the ordinary course of business if the monetary or business
consideration arising therefrom would be substantially as advantageous to the
Borrower and its Subsidiaries as the monetary or business consideration that
would obtain in a comparable transaction with a Person not an Affiliate.
9.14 Use of Proceeds, Etc. The Borrower will use the proceeds of the Loans
hereunder as follows:
(a) the Borrower will use the proceeds of Revolving Credit Loans
solely to refinance amounts outstanding under the Existing Credit Agreement
and to provide funds for the working capital and other general corporate
needs of the Borrower and its Subsidiaries (including, without limitation,
off-season operating expenses and the fees and expenses related to this
Agreement);
(b) the Borrower will use the proceeds of Facility A Term Loans solely
to finance Capital Expenditures (or to reimburse the Borrower for Capital
Expenditures previously made by the Borrower, so long as such Loans are
made within the Applicable Reimbursement Period, as defined below)
consisting of the purchase by the Borrower of items of equipment to be used
in the ordinary course of business of the Borrower and its Subsidiaries,
the equipment being financed in whole or in part with the proceeds of such
Loans to have a minimum purchase price of $1,000,000 and to have a minimum
useful life longer than the final maturity hereunder of such Loans; and
(c) the Borrower will use the proceeds of Facility B Term Loans solely
as follows:
(i) to finance the acquisition of Property consisting of fixed
assets and real estate in connection with the purchase of Parks by the
Borrower, the Property being financed in whole or in part with the
proceeds of such Loans to have a minimum purchase price of $1,000,000,
a minimum useful life longer than the final maturity hereunder of such
Loan and a value in excess of the amount of such Loans (as such value
is allocated or specified in the respective Acquisition
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Agreement pursuant to which such Property is being acquired), or
(ii) to finance Capital Expenditures (or to reimburse the
Borrower for Capital Expenditures previously made by the Borrower, so
long as such Loans are made within the Applicable Reimbursement
Period, as defined below) consisting of improvements to Parks acquired
by the Borrower as contemplated by clause (i) above, the improvements
being financed in whole or in part with the proceeds of such Loans to
have a minimum purchase price of $1,000,000 and to have a minimum
useful life longer than the final maturity hereunder of such Loans,
provided that no more than $58,000,000 of the Facility B Term Loan
Commitments may be utilized in connection with the acquisition of Parks,
and no more than $2,000,000 of the Facility B Term Loan Commitments may be
utilized in connection with the financing of improvements, as described in
this clause (c),
in each case in compliance with all applicable legal and regulatory
requirements, including, without limitation, Regulations G, T, U and X and the
Securities Act of 1933 and the Securities Exchange Act of 1934 and the
regulations thereunder. provided that neither the Administrative Agent nor any
Lender shall have any responsibility as to the use of any of such proceeds.
Each purchase of equipment by the Borrower described in paragraph (b)
above, and each acquisition of Property described in paragraph (c) above, shall
be consummated by the Borrower in such manner so that the Borrower will own the
respective equipment or Property acquired in such transaction. To the extent any
such equipment is to be utilized at a Park owned by a Subsidiary of the
Borrower, the Borrower shall make such equipment available to such Subsidiary by
entering into a lease, in form and substance satisfactory to the Administrative
Agent and the Arranger, covering such equipment. Following any such transaction,
the Borrower will not transfer any such equipment or Property to any of its
Subsidiaries.
For purposes hereof, the "Applicable Reimbursement Period" means, in the
case of any Loan, the period 180 days after the acquisition, addition or
improvement by the Borrower that constitutes the respective Capital Expenditure
to be financed with the proceeds of such Loan.
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9.15 Certain Further Assurances.
(a) Subsidiary Guarantors. The Borrower will take such action, and will
cause each of its Subsidiaries (other than Inactive Subsidiaries, unless such
Inactive Subsidiary is also a "Note Guarantor" under the 1995 Senior Notes
Indenture) to take such action, from time to time as shall be necessary to
ensure that all Subsidiaries of the Borrower are "Subsidiary Guarantors"
hereunder. Without limiting the generality of the foregoing, in the event that
the Borrower or any of its Subsidiaries shall form or acquire any new Subsidiary
that shall constitute a Subsidiary hereunder (or in the event that any Inactive
Subsidiary shall cease to be an Inactive Subsidiary), the Borrower and its
Subsidiaries will cause such new Subsidiary (or formerly Inactive Subsidiary) to
(i) become a "Subsidiary Guarantor" hereunder, and a "Securing Party"
under the Revolving Credit Security Agreement pursuant to a Guarantee
Assumption Agreement,
(ii) cause such Subsidiary to take such action (including, without
limitation, delivering such shares of stock and executing and delivering
such Uniform Commercial Code financing statements) as shall be necessary to
create and perfect valid and enforceable first priority Liens on
substantially all of the personal Property of such Subsidiary as collateral
security for the obligations of such Subsidiary hereunder in respect of the
Revolving Credit Loans, and
(iii) deliver such proof of corporate action, incumbency of officers,
opinions of counsel and other documents as is consistent with those
delivered by each Obligor pursuant to Section 7.01 on the Closing Date or
as the Administrative Agent shall have reasonably requested.
(b) Ownership of Subsidiaries. The Borrower will, and will cause each of
its Subsidiaries, to, take such action from time to time as shall be necessary
to ensure that each of the Subsidiaries owned by it on the date hereof (other
than Inactive Subsidiaries) remains a Wholly Owned Subsidiary, and that all
shares of capital stock of each class of any Subsidiary (other than Inactive
Subsidiaries) formed or acquired by it after the date hereof will be pledged by
the Obligors pursuant to the Revolving Credit Agreement (or, in the case of any
such shares of stock owned by any Person other than an Obligor, pursuant to a
separate pledge agreement in form and substance satisfactory to the
Administrative Agent). In the event that any additional
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shares of stock shall be issued by any Subsidiary (other than Inactive
Subsidiaries), each Obligor holding any such shares of stock agrees (and agrees
to cause each other holder of any such shares of stock) forthwith to deliver to
the Administrative Agent pursuant to the Revolving Credit Security Agreement
(or, in the case of any holder other than an Obligor, pursuant to a separate
pledge agreement in form and substance satisfactory to the Administrative Agent)
the certificates evidencing such shares of stock, accompanied by undated stock
powers executed in blank and to take such other action (and cause such other
holder(s) to take such other action) as the Administrative Agent shall request
to perfect the security interest created therein pursuant to the Revolving
Credit Security Agreement (and such separate pledge agreement, as the case may
be).
(c) Certain Restrictions. The Borrower will not permit any of its
Subsidiaries to enter into, after the date hereof, any indenture, agreement,
instrument or other arrangement that, directly or indirectly, prohibits or
restrains, or has the effect of prohibiting or restraining, or imposes
materially adverse conditions upon, the incurrence or payment of Indebtedness,
the granting of Liens, the declaration or payment of dividends, the making of
loans, advances or Investments or the sale, assignment, transfer or other
disposition of Property, other than any such prohibition or restraint (i) set
forth in any agreement providing for the disposition of Property (so long as
such prohibition or restraint relates only to such Property to be disposed of)
or (ii) set forth in any of the Loan Documents.
(d) Revolving Credit Mortgages. In the event that an Event of Default shall
have occurred and be continuing, in addition to the rights and remedies provided
for in Section 10 and in the Security Documents, the Borrower will cause each of
its Subsidiaries, upon request therefor by the Administrative Agent or by the
Majority Lenders through the Administrative Agent, to execute and deliver to the
Administrative Agent one or more Mortgages covering all of their respective real
property (or such parcels thereof as shall be specified in such request), as
security for the obligations of the Subsidiary Guarantors hereunder in respect
of the Revolving Credit Loans, in each case duly executed and delivered (and,
where appropriate, acknowledged) by Persons satisfactory to the Administrative
Agent in recordable form, in form and substance satisfactory to the
Administrative Agent. In addition, in such event, the Borrower shall pay to the
respective title companies an amount equal to the recording and stamp taxes
payable in connection with recording such Mortgages in the appropriate county
land offices and shall deliver such proof of corporate action, incumbency of
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officers, opinions of counsel and other documents as is consistent with those
required to be delivered by each Obligor pursuant to Section 7.02 on the
occasion of any borrowing of Facility A or Facility B Term Loans hereunder or as
the Administrative Agent shall have reasonably requested.
(e) Modifications to 1995 Senior Notes Indenture. In the event that the
1995 Senior Notes Indenture shall at any time after the date hereof be modified
either
(i) to permit the Subsidiary Guarantors to Guarantee all of the
obligations of the Borrower hereunder in respect of the Term Loans (or to
increase the amount of the Term Loans hereunder that may be permissibly
Guaranteed by them) or
(ii) to permit the Facility A or Facility B Term Loans to be secured
by Property of the Obligors other than by the respective Property or
equipment purchased with the proceeds of such Loans,
then the Borrower will, and will cause each of its Subsidiaries to, execute and
deliver such amendments to this Agreement (and such security agreements,
mortgages and other instruments) in order that, to the maximum extent
permissible and in a manner satisfactory to the Administrative Agent, advantage
is taken of such modified provisions of the 1995 Senior Notes Indenture.
9.16 Modifications of Certain Documents. The Borrower will not consent to
any modification, supplement or waiver of
(a) any of the provisions of any agreement, instrument or other
document evidencing or relating to Subordinated Indebtedness or the
Allocation Agreement, or
(b) any provision of the 1995 Senior Notes Indenture, any agreement
evidencing or relating to any New Senior Notes, any Lease, any Initial
Acquisition Agreement (or, after the execution and delivery thereof, any
Subsequent Acquisition Agreement) if (in the case of this clause (b)) such
modification, supplement or waiver would have a material adverse effect
upon the Lenders or the Administrative Agent,
without in each case the prior consent of the Administrative Agent (with the
approval of the Majority Lenders).
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9.17 Prepayment of Certain Indebtedness. The Borrower will not, nor will it
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 1995 Senior Notes, any New Senior Notes or
any Subordinated Indebtedness, except for regularly scheduled payments,
prepayments or redemptions of principal and interest in respect thereof required
pursuant to the 1995 Senior Notes Indentures, or pursuant to the instruments
evidencing the New Senior Notes such Subordinated Indebtedness, as the case may
be. Notwithstanding the foregoing, nothing herein shall be deemed to prohibit
the Borrower from redeeming or retiring up to an aggregate principal amount of
$30,000,000 of the 1995 Senior Notes with the proceeds of the issuance of equity
capital by the Borrower after the date hereof, or from effecting any exchange of
New Senior Notes for 1995 Senior Notes (or refinancing 1995 Senior Notes with
the proceeds of New Senior Notes) in accordance with the provisions of Section
9.07(e).
Section 10. Events of Default. If one or more of the following events
(herein called "Events of Default") shall occur and be continuing:
(a) the Borrower shall default in the payment when due (whether at
stated maturity or at mandatory or optional prepayment) of any principal of
any Loan or Reimbursement Obligation, or shall default for three or more
Business Days in the payment when due of any interest on any Loan or any
fee or any other amount payable by it hereunder or under any other Loan
Document;
(b) any representation, warranty or certification made or deemed made
herein or in any other Loan Document (or in any modification or supplement
hereto or thereto) by any Obligor, or any certificate furnished to any
Lender or the Administrative Agent pursuant to the provisions hereof or
thereof, shall prove to have been false or misleading as of the time made
or furnished in any material respect; or any representation or warranty
made in any Acquisition Agreement shall prove to have been false or
misleading as of the time made or furnished, in any such case that would
(either individually or in the aggregate) materially adversely affect the
operations of any Park or have a Material Adverse Effect;
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(c) the Borrower shall default in the performance of any of its
obligations under any of Sections 9.02(a), 9.05, 9.06, 9.07, 9.08, 9.09,
9.10, 9.11, 9.13, 9.14, 9.15, 9.16 or 9.17 or any Obligor shall default in
the performance of any of its obligations under Section 4.02 of the
Revolving Credit Security Agreement or of any Equipment Security Agreement;
(d) any Obligor shall fail to observe or perform any covenant,
condition or agreement contained in this Agreement (other than those
specified in clause (a) or (c) of this Section 10) or any other Loan
Document and such failure shall continue unremedied for a period of 30 days
after notice thereof to the Borrower by the Administrative Agent or any
Lender (through the Administrative Agent);
(e) the Borrower or any of its Subsidiaries shall default in the
payment when due of any principal of or interest on any of its other
Indebtedness aggregating $5,000,000 or more; or any Obligor shall default
in the payment when due of any amount aggregating $5,000,000 or more under
any Hedging Agreement;
(f) any event specified in any note, agreement, indenture or other
document evidencing or relating to any other Indebtedness aggregating
$5,000,000 or more of any Obligor shall occur if the effect of such event
is to cause, or (with the giving of any notice or the lapse of time or
both) to permit the holder or holders of such Indebtedness (or a trustee or
agent on behalf of such holder or holders) to cause, such Indebtedness to
become due, or to be prepaid in full (whether by redemption, purchase,
offer to purchase or otherwise), prior to its stated maturity or to have
the interest rate thereon reset to a level so that securities evidencing
such Indebtedness trade at a level specified in relation to the par value
thereof; or any event specified in any Hedging Agreement shall occur if the
effect of such event is to cause, or (with the giving of any notice or the
lapse of time or both) to permit, termination or liquidation payment or
payments aggregating $5,000,000 or more to become due;
(g) a proceeding or case shall be commenced, without the application
or consent of the Borrower or any of its Subsidiaries, in any court of
competent jurisdiction, seeking (i) its reorganization, liquidation,
dissolution, arrangement or winding-up, or the composition or readjustment
of its debts, (ii) the appointment of a
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receiver, custodian, trustee, examiner, liquidator or the like of the
Borrower or such Subsidiary or of all or any substantial part of its
Property, or (iii) similar relief in respect of the Borrower or such
Subsidiary under any law relating to bankruptcy, insolvency,
reorganization, winding-up, or composition or adjustment of debts, and such
proceeding or case shall continue undismissed, or an order, judgment or
decree approving or ordering any of the foregoing shall be entered and
continue unstayed and in effect, for a period of 60 or more days; or an
order for relief against the Borrower or any of its Subsidiaries shall be
entered in an involuntary case under the Bankruptcy Code;
(h) the Borrower or any of its Subsidiaries shall (i) apply for or
consent to the appointment of, or the taking of possession by, a receiver,
custodian, trustee, examiner or liquidator of itself or of all or a
substantial part of its Property, (ii) make a general assignment for the
benefit of its creditors, (iii) commence a voluntary case under the
Bankruptcy Code, (iv) file a petition seeking to take advantage of any
other law relating to bankruptcy, insolvency, reorganization, liquidation,
dissolution, arrangement or winding-up, or composition or readjustment of
debts, (v) fail to controvert in a timely and appropriate manner, or
acquiesce in writing to, any petition filed against it in an involuntary
case under the Bankruptcy Code or (vi) take any corporate action for the
purpose of effecting any of the foregoing;
(i) the Borrower or any of its Subsidiaries shall admit in writing its
inability to, or be generally unable to, pay its debts as such debts become
due;
(j) a final judgment or judgments for the payment of money of
$1,000,000 or more in the aggregate (exclusive of judgment amounts fully
covered by insurance) or of $10,000,000 or more in the aggregate
(regardless of insurance coverage) shall be rendered by one or more courts,
administrative tribunals or other bodies having jurisdiction against the
Borrower or any of its Subsidiaries and the same shall not be discharged
(or provision shall not be made for such discharge), or a stay of execution
thereof shall not be procured, within 30 days from the date of entry
thereof and the Borrower or the relevant Subsidiary shall not, within such
period of 30 days, or such longer period during which execution of the same
shall have been stayed, appeal therefrom and cause the execution thereof to
be stayed during such appeal;
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(k) an event or condition specified in Section 9.02(c) shall occur or
exist with respect to any Plan or Multiemployer Plan and, as a result of
such event or condition, together with all other such events or conditions,
the Borrower or any ERISA Affiliate shall incur or in the opinion of the
Majority Lenders shall be reasonably likely to incur a liability to a Plan,
a Multiemployer Plan or the PBGC (or any combination of the foregoing)
that, in the determination of the Majority Lenders, would (either
individually or in the aggregate) have a Material Adverse Effect;
(l) there shall have been asserted against the Borrower or any of its
Subsidiaries an Environmental Claim that, in the judgment of the Majority
Lenders, is reasonably likely to be determined adversely to the Borrower or
any of its Subsidiaries, and the amount thereof (either individually or in
the aggregate) is reasonably likely to have a Material Adverse Effect
(insofar as such amount is payable by the Borrower or any of its
Subsidiaries but after deducting any portion thereof that is reasonably
expected to be paid by other creditworthy Persons liable in whole or in
part therefor);
(m) any one or more of the following shall occur and be continuing:
(i) any "person" (as such term is used in Sections 13(d) and
14(d) of the Securities and Exchange Act of 1934 (the "Exchange
Act")), other than one or more Permitted Holders, is or becomes the
beneficial owner (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act, except that a person shall be deemed to have "beneficial
ownership" of all shares that any such person has the right to
acquire, whether such right is exercisable immediately or only after
the passage of time), directly or indirectly, of more than 35% of the
voting stock of the Borrower; provided that the Permitted Holders
beneficially own (as so defined), directly or indirectly, in the
aggregate a lesser percentage of the voting stock of the Borrower than
such other person and do not have the right or ability by voting
power, contract or otherwise to elect or designate for election a
majority of the Board of Directors of the Borrower;
(ii) during any period of two consecutive years, individuals who
at the beginning of such period
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constituted the Board of Directors of the Borrower (together with any
new directors whose election by such Board of Directors or whose
nomination for election by the Borrower's shareholders was approved by
a vote of a majority of the Borrower's directors then still in office
who either were directors at the beginning of such period or whose
election or nomination for election was previously so approved) cease
for any reason to constitute a majority of the Borrower's directors
then in office;
(iii) any change in control with respect to the Borrower (or
similar event, however denominated) shall occur under and as defined
in any indenture or other agreement in respect of Indebtedness in an
aggregate principal amount of at least $2,000,000 to which the
Borrower is a party; or
(iv) both Xxxxxx X. Xxxxx and Xxxx Story shall cease to be
actively involved in the day-to-day management and operation of the
Borrower and its Subsidiaries (unless Persons with substantial
knowledge and experience in the amusement and attraction park industry
reasonably acceptable to the Majority Lenders have been appointed to
replace one or both of them within 180 days thereof); or
(n) the Liens created by the Security Documents shall at any time not
constitute valid and perfected Liens on the collateral intended to be
covered thereby (to the extent perfection by filing, registration,
recordation or possession is required herein or therein) in favor of the
Administrative Agent, free and clear of all other Liens (other than Liens
permitted under Section 9.06 or under the respective Security Documents),
or, except for expiration in accordance with its terms, any of the Security
Documents shall for whatever reason be terminated or cease to be in full
force and effect, or the enforceability thereof shall be contested by any
Obligor;
THEREUPON: (1) in the case of an Event of Default other than one referred to in
clause (g) or (h) of this Section 10 with respect to any Obligor, the
Administrative Agent may (and, if requested by the Majority Lenders, shall), by
notice to the Borrower, terminate the Commitments and/or declare the principal
amount then outstanding of, and the accrued interest on, the Loans, the
Reimbursement Obligations and all other amounts payable by the Obligors
hereunder and under the Notes (including, without
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limitation, any amounts payable under Section 5.05 or 5.06) to be forthwith due
and payable, whereupon such amounts shall be immediately due and payable without
presentment, demand, protest or other formalities of any kind, all of which are
hereby expressly waived by each Obligor; and (2) in the case of the occurrence
of an Event of Default referred to in clause (g) or (h) of this Section 10 with
respect to any Obligor, the Commitments shall automatically be terminated and
the principal amount then outstanding of, and the accrued interest on, the
Loans, the Reimbursement Obligations and all other amounts payable by the
Obligors hereunder and under the Notes (including, without limitation, any
amounts payable under Section 5.05 or 5.06) shall automatically become
immediately due and payable without presentment, demand, protest or other
formalities of any kind, all of which are hereby expressly waived by each
Obligor.
In addition, upon the occurrence and during the continuance of any Event of
Default (if the Administrative Agent has declared the principal amount then
outstanding of, and accrued interest on, the Revolving Credit Loans and all
other amounts payable by the Borrower hereunder and under the Revolving Credit
Notes to be due and payable), the Borrower agrees that it shall, if requested by
the Administrative Agent or the Majority Lenders through the Administrative
Agent (and, in the case of any Event of Default referred to in clause (g) or (h)
of this Section 10 with respect to any Obligor, forthwith, without any demand or
the taking of any other action by the Administrative Agent or any Lender)
provide cover for the Letter of Credit Liabilities by paying to the
Administrative Agent immediately available funds in an amount equal to the then
aggregate undrawn face amount of all Letters of Credit, which funds shall be
held by the Administrative Agent in the Collateral Account as collateral
security in the first instance for the Letter of Credit Liabilities and be
subject to withdrawal only as therein provided.
Section 11. The Administrative Agent and Arranger.
11.01 Appointment, Powers and Immunities. Each Lender hereby appoints and
authorizes the Administrative Agent to act as its agent hereunder and under the
other Loan Documents with such powers as are specifically delegated to the
Administrative Agent by the terms of this Agreement and of the other Loan
Documents, together with such other powers as are reasonably incidental thereto.
The Administrative Agent (which term as used in this sentence and in Section
11.05 and the first sentence of Section 11.06 shall include reference to its
affiliates and its
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own and its affiliates' officers, directors, employees and agents):
(a) shall have no duties or responsibilities except those expressly
set forth in this Agreement and in the other Loan Documents, and shall not
by reason of this Agreement or any other Loan Document be a trustee for any
Lender;
(b) shall not be responsible to the Lenders for any recitals,
statements, representations or warranties contained in this Agreement or in
any other Loan Document, or in any certificate or other document referred
to or provided for in, or received by any of them under, this Agreement or
any other Loan Document, or for the value, validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement, any Note or
any other Loan Document or any other document referred to or provided for
herein or therein or for any failure by the Borrower or any other Person to
perform any of its obligations hereunder or thereunder;
(c) shall not, except to the extent expressly instructed by the
Majority Lenders with respect to collateral security under the Security
Documents, be required to initiate or conduct any litigation or collection
proceedings hereunder or under any other Loan Document; and
(d) shall not be responsible for any action taken or omitted to be
taken by it hereunder or under any other Loan Document or under any other
document or instrument referred to or provided for herein or therein or in
connection herewith or therewith, except for its own gross negligence or
willful misconduct.
The Administrative Agent may employ agents and attorneys-in-fact and shall not
be responsible for the negligence or misconduct of any such agents or
attorneys-in-fact selected by it in good faith. The Administrative Agent may
deem and treat the payee of a Note as the holder thereof for all purposes hereof
unless and until a notice of the assignment or transfer thereof shall have been
filed with the Administrative Agent, together with the consent of the Borrower
to such assignment or transfer (to the extent required by Section 12.06(b)).
11.02 Reliance by Administrative Agent. The Administrative Agent shall be
entitled to rely upon any certification, notice or other communication
(including, without limitation, any thereof by telephone, telecopy, telegram or
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cable) reasonably believed by it to be genuine and correct and to have been
signed or sent by or on behalf of the proper Person or Persons, and upon advice
and statements of legal counsel, independent accountants and other experts
selected by the Administrative Agent. As to any matters not expressly provided
for by this Agreement or any other Loan Document, the Administrative Agent shall
in all cases be fully protected in acting, or in refraining from acting,
hereunder or thereunder in accordance with instructions given by the Majority
Lenders or, if provided herein, in accordance with the instructions given by the
Majority Revolving Credit Lenders, the Majority Facility A Lenders, the Majority
Facility B Lenders or all of the Lenders as is required in such circumstance,
and such instructions of such Lenders and any action taken or failure to act
pursuant thereto shall be binding on all of the Lenders.
11.03 Defaults. The Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of a Default unless the Administrative
Agent has received notice from a Lender or the Borrower specifying such Default
and stating that such notice is a "Notice of Default". In the event that the
Administrative Agent receives such a notice of the occurrence of a Default, the
Administrative Agent shall give prompt notice thereof to the Lenders. The
Administrative Agent shall (subject to Section 11.07) take such action with
respect to such Default as shall be directed by the Majority Lenders or, if
provided herein, the Majority Revolving Credit Lenders, the Majority Facility A
Lenders or the Majority Facility B 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 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 Majority Lenders, the Majority
Revolving Credit Lenders, the Majority Facility A Lenders, the Majority Facility
B Lenders or all of the Lenders.
11.04 Rights as a Lender. With respect to its Commitments and the Loans
made by it, LCPI (and any successor acting as Administrative Agent) in its
capacity as a Lender hereunder shall have the same rights and powers hereunder
as any other Lender and may exercise the same as though it were not acting as
the Administrative Agent, and the term "Lender" or "Lenders" shall, unless the
context otherwise indicates, include the Administrative Agent in its individual
capacity. LCPI (and any successor acting as Administrative Agent) and its
affiliates
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may (without having to account therefor to any Lender) accept deposits from,
lend money to, make investments in and generally engage in any kind of banking,
trust or other business with the Obligors (and any of their Subsidiaries or
Affiliates) as if it were not acting as the Administrative Agent, and LCPI and
its affiliates (and any such successor) and its affiliates may accept fees and
other consideration from the Obligors for services in connection with this
Agreement or otherwise without having to account for the same to the Lenders.
11.05 Indemnification. The Lenders agree to indemnify the Administrative
Agent and the Arranger (to the extent not reimbursed under Section 12.04, but
without limiting the obligations of the Borrower under Section 12.04) ratably in
accordance with the aggregate principal amount of the Loans and Reimbursement
Obligations held by the Lenders (or, if no Loans or Reimbursement Obligations
are at the time outstanding, ratably in accordance with their respective
Commitments), for any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind and nature whatsoever that may be imposed on, incurred by or asserted
against the Administrative Agent or the Arranger (including by any Lender)
arising out of or by reason of any investigation in or in any way relating to or
arising out of this Agreement or any other Loan Document or any other documents
contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby (including, without limitation, the costs and
expenses that the Borrower is obligated to pay under Section 12.04, but
excluding, unless a Default has occurred and is continuing, normal
administrative costs and expenses incident to the performance of its agency
duties hereunder) or the enforcement of any of the terms hereof or thereof or of
any such other documents, provided that no Lender shall be liable for any of the
foregoing to the extent they arise from the gross negligence or willful
misconduct of the party to be indemnified.
11.06 Non-Reliance on Administrative Agent and Other Lenders. Each Lender
agrees that it has, independently and without reliance on the Administrative
Agent, the Arranger or any other Lender, and based on such documents and
information as it has deemed appropriate, made its own credit analysis of the
Borrower and its Subsidiaries and decision to enter into this Agreement and that
it will, independently and without reliance upon the Administrative Agent, the
Arranger or any other Lender, and based on such documents and information as it
shall deem appropriate at the time, continue to make its own analysis and
decisions in taking or not taking action under this Agreement or
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under any other Loan Document. Neither the Administrative Agent nor the Arranger
shall be required to keep itself informed as to the performance or observance by
any Obligor of this Agreement or any of the other Loan Documents or any other
document referred to or provided for herein or therein or to inspect the
Properties or books of the Borrower or any of its Subsidiaries. Except for
notices, reports and other documents and information expressly required to be
furnished to the Lenders by the Administrative Agent hereunder or under the
Security Documents, neither the Administrative Agent nor the Arranger shall have
any duty or responsibility to provide any Lender with any credit or other
information concerning the affairs, financial condition or business of the
Borrower or any of its Subsidiaries (or any of their affiliates) that may come
into the possession of the Administrative Agent, the Arranger or any of their
respective affiliates.
11.07 Failure to Act. Except for action expressly required of the
Administrative Agent hereunder and under the other Loan Documents, the
Administrative Agent shall in all cases be fully justified in failing or
refusing to act hereunder and thereunder unless it shall receive further
assurances to its satisfaction from the Lenders of their indemnification
obligations under Section 11.05 against any and all liability and expense that
may be incurred by it by reason of taking or continuing to take any such action.
11.08 Resignation or Removal of Administrative Agent. Subject to the
appointment and acceptance of a successor Administrative Agent as provided
below, the Administrative Agent may resign at any time by giving notice thereof
to the Lenders and the Borrower, and the Administrative Agent may be removed at
any time with or without cause by the Majority Lenders. Upon any such
resignation or removal, the Majority Lenders shall, after consultation with the
Borrower, have the right to appoint a successor Administrative Agent. If no
successor Administrative Agent shall have been so appointed by the Majority
Lenders and shall have accepted such appointment within 30 days after the
retiring Administrative Agent's giving of notice of resignation or the Majority
Lenders' removal of the retiring Administrative Agent, then the retiring
Administrative Agent may, on behalf of the Lenders, appoint a successor
Administrative Agent, that shall be a bank that has an office in New York, New
York with a combined capital and surplus of at least $500,000,000. Upon the
acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the
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retiring Administrative Agent, and the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder. After any retiring
Administrative Agent's resignation or removal hereunder as Administrative Agent,
the provisions of this Section 11 shall continue in effect for its benefit in
respect of any actions taken or omitted to be taken by it while it was acting as
the Administrative Agent.
11.09 Consents under Other Loan Documents. Except as otherwise provided in
Section 12.03 with respect to this Agreement, the Administrative Agent may, with
the prior consent of the Majority Lenders (but not otherwise), consent to any
modification, supplement or waiver under any of the Loan Documents, provided
that, without the prior consent of each Lender, the Administrative Agent shall
not (except as provided herein or in the Security Documents) release any
collateral or otherwise terminate any Lien under any Security Document providing
for collateral security, agree to additional obligations being secured by such
collateral security (unless the Lien for such additional obligations shall be
junior to the Lien in favor of the other obligations secured by such Security
Document, in which event the Administrative Agent may consent to such junior
Lien provided that it obtains the consent of the Majority Lenders thereto),
alter the relative priorities of the obligations entitled to the benefits of the
Liens created under the Security Documents, except that no such consent shall be
required, and the Administrative Agent is hereby authorized, to release any Lien
covering Property that is the subject of either a disposition of Property
permitted hereunder or a disposition to which the Majority Lenders have
consented.
11.10 Arranger. Except as provided in this Section 11, and in Section
12.06(b), the Arranger shall not have any rights or obligations under this
Agreement or in connection with the syndication of the Commitments hereunder,
other than in its capacity as a "Lender" hereunder.
Section 12. Miscellaneous.
12.01 Notices. All notices, requests and other communications provided for
herein and in the Security Documents (including, without limitation, any
modifications of, or waivers or consents under, this Agreement) shall be given
or made in writing (including, without limitation, by telecopy), delivered to
the intended recipient at the "Address for Notices" specified below its name on
the signature pages hereof (below the name of the Borrower, in the case of any
Subsidiary Guarantor), or, as to
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any party, at such other address as shall be designated by such party in a
notice to each other party. Except as otherwise provided in this Agreement, all
such communications shall be deemed to have been duly given when transmitted by
telecopier or personally delivered or, in the case of a mailed notice, upon
receipt, in each case given or addressed as aforesaid.
12.02 Waiver. No failure on the part of the Administrative Agent or any
Lender to exercise and no delay in exercising, and no course of dealing with
respect to, any right, power or privilege under this Agreement or any Note shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right, power or privilege under this Agreement or any Note preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.
The remedies provided herein are cumulative and not exclusive of any remedies
provided by law.
12.03 Amendments, Etc. Except as otherwise expressly provided in this
Agreement, any provision of this Agreement may be modified or supplemented only
by an instrument in writing signed by the Borrower and the Majority Lenders, or
by the Borrower and the Administrative Agent acting with the consent of the
Majority Lenders, and any provision of this Agreement may be waived by the
Majority Lenders or by the Administrative Agent acting with the consent of the
Majority Lenders; provided that:
(a) no modification, supplement or waiver shall, unless by an
instrument signed by all of the Lenders or by the Administrative Agent
acting with the consent of all of the Lenders: (i) increase, or extend the
term of any of the Commitments, or extend the time or waive any requirement
for the reduction or termination of any of the Commitments, (ii) extend the
date fixed for the payment of principal of or interest on any Loan or
Reimbursement Obligation or any fee hereunder, (iii) reduce the amount of
any such payment of principal or Reimbursement Obligation, (iv) reduce the
rate at which interest is payable thereon or any fee is payable hereunder,
(v) alter the manner in which payments or prepayments of principal,
interest or other amounts hereunder shall be applied as between the Lenders
or Types, Classes or Sub-Series of Loans, (vi) alter the terms of this
Section 12.03, (vii) modify the definition of the term "Majority Lenders",
"Majority Revolving Credit Lenders", "Majority Facility A Lenders" or
"Majority Facility B Lenders", or modify in any other manner the number or
percentage of the Lenders required to make any determinations or waive any
rights hereunder or to modify
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any provision hereof, (viii) release any Subsidiary Guarantor from any of
its guarantee obligations under Section 6, or (ix) waive any of the
conditions precedent set forth in Section 7.01 or 7.02;
(b) any modification or supplement of Section 11, or of any of the
rights or duties of the Administrative Agent hereunder, shall require the
consent of the Administrative Agent; and
(c) any modification or supplement of Section 6 shall require the
consent of each Subsidiary Guarantor.
12.04 Expenses, Etc. The Borrower agrees to pay or reimburse each of the
Lenders, the Administrative Agent and the Arranger for: (a) all reasonable
out-of-pocket costs and expenses of the Administrative Agent, and the reasonable
fees and expenses of Milbank, Tweed, Xxxxxx & XxXxxx, special New York counsel
to the Arranger, in connection with (i) the negotiation, preparation, execution
and delivery of this Agreement and the other Loan Documents and the extensions
of credit hereunder and (ii) the negotiation or preparation of any modification,
supplement or waiver of any of the terms of this Agreement or any of the other
Loan Documents (whether or not consummated); (b) all reasonable out-of-pocket
costs and expenses of the Lenders and the Administrative Agent (including,
without limitation, the reasonable fees and expenses of legal counsel) in
connection with (i) any Default and any enforcement or collection proceedings
resulting therefrom, including, without limitation, all manner of participation
in or other involvement with (x) bankruptcy, insolvency, receivership,
foreclosure, winding up or liquidation proceedings, (y) judicial or regulatory
proceedings and (z) workout, restructuring or other negotiations or proceedings
(whether or not the workout, restructuring or transaction contemplated thereby
is consummated) and (ii) the enforcement of this Section 12.04; (c) all
transfer, stamp, mortgage recording, documentary or other similar taxes,
assessments or charges levied by any governmental or revenue authority in
respect of this Agreement or any of the other Loan Documents or any other
document referred to herein or therein and all costs, expenses, taxes,
assessments and other charges incurred in connection with any filing,
registration, recording or perfection of any security interest contemplated by
any Security Document or any other document referred to therein; and (d) all
costs, expenses and other charges in respect of title insurance procured with
respect to the Liens created pursuant to the Mortgages.
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The Borrower hereby agrees to indemnify the Administrative Agent, the
Arranger and each Lender and their respective directors, officers, employees,
attorneys and agents (each, an "indemnified person") from, and hold each of them
harmless against, any and all losses, liabilities, claims, damages or expenses
incurred by any of them (including, without limitation, any and all losses,
liabilities, claims, damages or expenses incurred by the Administrative Agent or
the Arranger to any Lender, whether or not the Administrative Agent, the
Arranger or any Lender is a party thereto) arising out of or by reason of any
investigation or litigation or other proceedings (including any threatened
investigation or litigation or other proceedings) relating to the extensions of
credit hereunder or any actual or proposed use by the Borrower or any of its
Subsidiaries of the proceeds of any of the extensions of credit hereunder,
including, without limitation, the reasonable fees and disbursements of counsel
incurred in connection with any such investigation or litigation or other
proceedings (but excluding any such losses, liabilities, claims, damages or
expenses incurred by reason of the gross negligence or willful misconduct of the
Person to be indemnified). In that connection, the Borrower will not be required
to reimburse the indemnified persons for more than one counsel in any
jurisdiction, except to the extent that a particular indemnified person may have
defenses that are distinct, or in conflict with, the defenses of other
indemnified persons.
Without limiting the generality of the provisions of the foregoing
paragraph, the Borrower will indemnify the Administrative Agent, the Arranger
and each Lender from, and hold the Administrative Agent, the Arranger and each
Lender harmless against, any losses, liabilities, claims, damages or expenses
described in the preceding paragraph (including any Lien filed against any
Property covered by the Mortgages in favor of any governmental entity, but
excluding, as provided in the preceding sentence, any loss, liability, claim,
damage or expense incurred by reason of the gross negligence or willful
misconduct of the Person to be indemnified) arising under any Environmental Law
as a result of the past, present or future operations of the Borrower or any of
its Subsidiaries (or any predecessor in interest to the Borrower or any of its
Subsidiaries), or the past, present or future condition of any site or facility
owned, operated or leased at any time by the Borrower or any of its Subsidiaries
(or any such predecessor in interest), or any Release or threatened Release of
any Hazardous Materials at or from any such site or facility, excluding any such
Release or threatened Release that shall occur during any period when the
Administrative Agent or any Lender shall be in possession of any
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such site or facility following the exercise by the Administrative Agent or any
Lender of any of its rights and remedies hereunder or under any of the Security
Documents, but including any such Release or threatened Release occurring during
such period that is a continuation of conditions previously in existence, or of
practices employed by the Borrower and its Subsidiaries, at such site or
facility.
12.05 Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
permitted assigns.
12.06 Assignments and Participations.
(a) No Obligor may assign any of its rights or obligations hereunder or
under the Notes without the prior consent of all of the Lenders and the
Administrative Agent and the Arranger.
(b) Each Lender may assign any of its Loans, its Notes and its Commitments
and its Letter of Credit Interest (but only with the consent of the
Administrative Agent, the Arranger, the Issuing Lender and the Borrower, which
consents shall not be unreasonably withheld or delayed); provided that
(i) no such consent by the Borrower, the Administrative Agent or the
Arranger shall be required in the case of any assignment to another Lender;
(ii) no such consent by the Borrower shall be required in the case of
any assignment by the Arranger in its capacity as a "Lender" hereunder on
or prior to the date 90 days after the Closing Date;
(iii) except to the extent the Borrower and the Administrative Agent
shall otherwise consent, any such partial assignment (other than to another
Lender) shall be in an amount at least equal to $5,000,000; and
(iv) each such assignment by a Lender of any Loans, Letter of Credit
Interest or Commitments of any Class or Sub-Series shall be made in such
manner so that the same portion of its Loans, Letter of Credit Interest or
Commitments of each other Class and Sub-Series is assigned to the
respective assignee.
Upon execution and delivery by the assignee to the Borrower, the
Administrative Agent, the Arranger and (if applicable) the
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Issuing Lender of an instrument in writing pursuant to which such assignee
agrees to become a "Lender" hereunder (if not already a Lender) having the
Commitments, Loans and Reimbursement Obligations specified in such instrument,
and upon consent thereto by the Borrower, the Administrative Agent, the Arranger
and the Issuing Lender to the extent required above, the assignee shall have, to
the extent of such assignment (unless otherwise consented to by the Borrower,
the Administrative Agent, the Arranger and the Issuing Lender, the obligations,
rights and benefits of a Lender hereunder holding the Commitments, Loans and
Reimbursement Obligations (or portions thereof) assigned to it (in addition to
the Commitments, Loans and Reimbursement Obligations, if any, theretofore held
by such assignee) and the assigning Lender shall, to the extent of such
assignment, be released from the Commitments (or portions thereof) so assigned.
Upon each such assignment the assigning Lender shall pay the Administrative
Agent an assignment fee of $2,000.
(c) A Lender may sell or agree to sell to one or more other Persons
(each a "Participant") a participation in all or any part of any Loans or
Letter of Credit Interest held by it, or in its Commitments, provided that
such Participant shall not have any rights or obligations under this
Agreement or any Note or any other Loan Document (the Participant's rights
against such Lender in respect of such participation to be those set forth
in the agreements executed by such Lender in favor of the Participant). All
amounts payable by the Borrower to any Lender under Section 5 in respect of
Loans or Letter of Credit Interest held by it and its Commitments shall be
determined as if such Lender had not sold or agreed to sell any
participations in such Loans, Letter of Credit Interest and Commitments,
and as if such Lender were funding each of such Loans, Letter of Credit
Interest and Commitments in the same way that it is funding the portion of
such Loans, Letter of Credit Interest Commitments in which no
participations have been sold. In no event shall a Lender that sells a
participation agree with the Participant to take or refrain from taking any
action hereunder or under any other Loan Document except that such Lender
may agree with the Participant that it will not, without the consent of the
Participant, agree to (i) increase or extend the term of such Lender's
related Commitment or extend the amount or date of any scheduled reduction
of such Commitment pursuant to Section 2.04, (ii) extend the date fixed for
the payment of principal of or interest on the related Loan or Loans or
Reimbursement Obligation or any portion of any fee hereunder payable to the
Participant, (iii) reduce the amount of any such payment of principal or
Reimbursement Obligation or (iv) reduce the rate at which interest is
payable thereon, or any fee hereunder payable to the
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Participant, to a level below the rate at which the Participant is entitled to
receive such interest or fee.
(d) In addition to the assignments and participations permitted under the
foregoing provisions of this Section 12.06, any Lender may (without notice to
the Borrower, the Administrative Agent, the Arranger or any other Lender and
without payment of any fee) assign and pledge all or any portion of its Loans
and its Notes to any Federal Reserve Bank as collateral security pursuant to
Regulation A and any Operating Circular issued by such Federal Reserve Bank, and
such Loans and Notes shall be fully transferrable as provided therein. No such
assignment shall release the assigning Lender from its obligations hereunder.
(e) A Lender may furnish any information concerning the Borrower or any of
its Subsidiaries in the possession of such Lender from time to time to assignees
and participants (including prospective assignees and participants), subject,
however, to the provisions of Section 12.12.
(f) Anything in this Section 12.06 to the contrary notwithstanding, no
Lender may assign or participate any interest in any Loan or Letter of Credit
Interest held by it hereunder to the Borrower or any of its Affiliates or
Subsidiaries without the prior consent of each Lender.
12.07 Survival. The obligations of the Borrower under Sections 5.01, 5.05,
5.06, 5.07 and 12.04, the obligations of each Subsidiary Guarantor under Section
6.03, and the obligations of the Lenders under Section 11.05, shall survive the
repayment of the Loans and Reimbursement Obligations and the termination of the
Commitments and, in the case of any Lender that may assign any interest in its
Commitments, Loans or Letter of Credit Interest hereunder, shall survive the
making of such assignment, notwithstanding that such assigning Lender may cease
to be a "Lender" hereunder. In addition, each representation and warranty made,
or deemed to be made by a notice of any extension of credit, herein or pursuant
hereto shall survive the making of such representation and warranty, and no
Lender shall be deemed to have waived, by reason of making any extension of
credit hereunder, any Default that may arise by reason of such representation or
warranty proving to have been false or misleading, notwithstanding that such
Lender or the Administrative Agent may have had notice or knowledge or reason to
believe that such representation or warranty was false or misleading at the time
such extension of credit was made.
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12.08 Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument and any of the parties hereto may execute this Agreement by signing
any such counterpart.
12.09 Governing Law; Submission to Jurisdiction. This Agreement and the
Notes shall be governed by, and construed in accordance with, the law of the
State of New York. Each Obligor hereby submits to the nonexclusive jurisdiction
of the United States District Court for the Southern District of New York and of
the Supreme Court of the State of New York sitting in New York County (including
its Appellate Division), and of any other appellate court in the State of New
York, for the purposes of all legal proceedings arising out of or relating to
this Agreement or the transactions contemplated hereby. Each Obligor hereby
irrevocably waives, to the fullest extent permitted by applicable law, any
objection that it may now or hereafter have to the laying of the venue of any
such proceeding brought in such a court and any claim that any such proceeding
brought in such a court has been brought in an inconvenient forum.
12.10 WAIVER OF JURY TRIAL. EACH OF THE OBLIGORS, THE ADMINISTRATIVE AGENT
AND EACH LENDER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE NOTES OR THE TRANSACTIONS
CONTEMPLATED HEREBY.
12.11 Captions. The table of contents and captions and section headings
appearing herein are included solely for convenience of reference and are not
intended to affect the interpretation of any provision of this Agreement.
12.12 Confidentiality. Each Lender and the Administrative Agent agrees (on
behalf of itself and each of its affiliates, directors, officers, employees and
representatives) to use reasonable precautions to keep confidential, in
accordance with their customary procedures for handling confidential information
of the same nature and in accordance with safe and sound banking practices, any
non-public information supplied to it by the Borrower pursuant to this Agreement
that is identified by the Borrower as being confidential at the time the same is
delivered to the Lenders or the Administrative Agent, provided that nothing
herein shall limit the disclosure of any such information (i) after such
information shall have become public (other than through a violation of this
Section 12.12), (ii) to the extent required by statute, rule, regulation or
judicial
Credit Agreement
- 135 -
process, (iii) to counsel for any of the Lenders or the Administrative Agent,
(iv) to bank examiners (or any other regulatory authority having jurisdiction
over any Lender or the Administrative Agent), or to auditors or accountants, (v)
to the Administrative Agent or any other Lender, (vi) in connection with any
litigation to which any one or more of the Lenders or the Administrative Agent
is a party, or in connection with the enforcement of rights or remedies
hereunder or under any other Loan Document, (vii) to a subsidiary or affiliate
of such Lender or (viii) to any assignee or participant (or prospective assignee
or participant) so long as such assignee or participant (or prospective assignee
or participant) first executes and delivers to the respective Lender a
Confidentiality Agreement substantially in the form of Exhibit G (or executes
and delivers to such Lender an acknowledgement to the effect that it is bound by
the provisions of this Section 12.12, which acknowledgement may be included as
part of the respective assignment or participation agreement pursuant to which
such assignee or participant acquires an interest in the Loans hereunder);
provided, further, that in no event shall any Lender or the Administrative Agent
be obligated or required to return any materials furnished by the Borrower.
The obligations of each Lender under this Section 12.12 shall supersede and
replace the obligations of such Lender under the confidentiality letter in
respect of this financing signed and delivered by such Lender to the Borrower
prior to the date hereof; in addition, the obligations of any assignee that has
executed a Confidentiality Agreement in the form of Exhibit G shall be
superseded by this Section 12.12 upon the date upon which such assignee becomes
a Lender hereunder pursuant to Section 12.06(b).
Credit Agreement
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed and delivered as of the day and year first above written.
PREMIER PARKS INC.
By /s/ Xxxxx X. Xxxxxxxxxx
-------------------------------------
Name: Xxxxx X. Xxxxxxxxxx
Title: Chief Financial Officer
Address for Notices:
000 Xxxx 00xx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxx Xxxxxxxxxx
Telecopier No.: 000-000-0000
Telephone No.: 000-000-0000
with a copy to
Xxxxx X. Xxxxxxxx, Esq.
Xxxx Marks & Xxxxx LLP
000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
Telecopier No.: 000-000-0000
Telephone No.: 000-000-0000
Credit Agreement
- 137 -
SUBSIDIARY GUARANTORS
FUNTIME PARKS, INC. TIERCO MARYLAND INC.
By /s/ Xxxxx X. Xxxxxxxxxx By /s/ Xxxxx X. Xxxxxxxxxx
------------------------------- ---------------------------------
Name: Xxxxx X. Xxxxxxxxxx Name: Xxxxx X. Xxxxxxxxxx
Title: Chief Financial Officer Title: Chief Financial Officer
TIERCO WATER PARK, INC. FRONTIER CITY PROPERTIES, INC.
By /s/ Xxxxx X. Xxxxxxxxxx By /s/ Xxxxx X. Xxxxxxxxxx
------------------------------- ---------------------------------
Name: Xxxxx X. Xxxxxxxxxx Name: Xxxxx X. Xxxxxxxxxx
Title: Chief Financial Officer Title: Chief Financial Officer
WYANDOT LAKE, INC. FUNTIME, INC.
By /s/ Xxxxx X. Xxxxxxxxxx By /s/ Xxxxx X. Xxxxxxxxxx
------------------------------- ---------------------------------
Name: Xxxxx X. Xxxxxxxxxx Name: Xxxxx X. Xxxxxxxxxx
Title: Chief Financial Officer Title: Chief Financial Officer
DARIEN LAKE THEME PARK AND FRONTIER CITY PARTNERS,
CAMPING RESORT, INC. LIMITED PARTNERSHIP
By Frontier City Properties,
Inc., its general partner
By /s/ Xxxxx X. Xxxxxxxxxx By /s/ Xxxxx X. Xxxxxxxxxx
------------------------------- ---------------------------------
Name: Xxxxx X. Xxxxxxxxxx Name: Xxxxx X. Xxxxxxxxxx
Title: Chief Financial Officer Title: Chief Financial Officer
D. L. HOLDINGS, INC.
By /s/ Xxxxx X. Xxxxxxxxxx
---------------------------------
Name: Xxxxx X. Xxxxxxxxxx
Title: Chief Financial Officer
Credit Agreement
- 138 -
LENDERS
-------
Revolving Credit Commitment XXXXXX COMMERCIAL PAPER INC.
---------------------------
$30,000,000
Facility A
Term Loan Commitment
--------------------
$25,000,000
Facility B
Term Loan Commitment By /s/ Xxxxxx X. Xxx
------------------- -------------------------------------
$60,000,000 Name: Xxxxxx X. Xxx
Title: Authorized Signatory
Lending Office for all Loans:
Xxxxxx Commercial Paper Inc.
000 Xxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Address for Notices:
Xxxxxx Commercial Paper Inc.
000 Xxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxxxx Xxxxxxx
Telecopier No.: 212-528-0819
Telephone No.: 000-000-0000
Credit Agreement
- 139 -
XXXXXX COMMERCIAL PAPER INC.,
as Administrative Agent
By /s/ Xxxxxx X. Xxx
--------------------------------------
Title: Authorized Signatory
Address for Notices to
Xxxxxx Commercial Paper Inc.,
as Administrative Agent:
Xxxxxx Commercial Paper Inc.
000 Xxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxxxx Xxxxxxx
Telecopier No.: 212-528-0819
Telephone No.: 000-000-0000
XXXXXX COMMERCIAL PAPER INC.,
as Arranger
By /s/ Xxxxxx X. Xxx
--------------------------------------
Title: Authorized Signatory
Credit Agreement
