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EXHIBIT 10.7
[EXECUTION COPY]
AMENDED AND RESTATED COMPANY PLEDGE AGREEMENT
This AMENDED AND RESTATED COMPANY PLEDGE AGREEMENT dated as of
September 30, 1999, among NORTHSTAR HEALTH SERVICES, INC., a Delaware
corporation (the "Company"), CERBERUS CAPITAL MANAGEMENT, LLC (the "Agent") and
THE CHASE MANHATTAN BANK, as Collateral Agent as provided for in Section 8.1B of
the Credit Agreement referred to below (as successor collateral agent to IBJ
WHITEHALL BANK & TRUST COMPANY, formerly known as IBJ XXXXXXXX BANK & TRUST
COMPANY, the "Collateral Agent"), amends and restates in its entirety that
certain Pledge Agreement, dated as of October 20, 1995 (as amended, modified or
supplemented prior to the date hereof, the "Original Pledge Agreement"), between
the Company and IBJ Xxxxxxxx Bank & Trust Company (the "Original Agent").
RECITALS
A. The Company, the Original Agent and the lenders set forth on the
signature pages thereto are parties to that certain Credit Agreement, dated as
of October 20, 1995 (as amended, modified or supplemented prior to the date
hereof, the "Original Credit Agreement"), pursuant to which the Lenders agreed
to extend certain credit facilities to the Company (the "Original Loans") which
were represented by certain promissory notes (the "Original Notes"), the
proceeds of which were used (i) to refinance substantially all indebtedness of
the Company and its Subsidiaries outstanding on the date thereof, (ii) to pay
certain fees and expenses, (iii) to provide financing for the working capital
needs of the Company and its Subsidiaries and (iv) to provide a portion of the
purchase price of certain acquisitions by the Company and its Subsidiaries.
B. The Company secured all of the Obligations under the Original Credit
Agreement and under the other Loan Documents by granting to the Original Agent,
on behalf of Lenders, a first priority security interest in all of its personal
property, including, without limitation, a pledge of all of the capital stock of
each of its Subsidiaries.
C. The Original Agent now wishes to resign as agent for the Lenders and
(i) the Agent wishes to replace the Original Agent as agent for the Lenders and
(ii) the Collateral Agent wishes to replace the Original Agent as collateral
agent for the Lenders under this Agreement.
D. The Company, the Lenders, the Agent and the Original Agent have
agreed to amend and restate the Original Credit Agreement as of the date hereof
(the Original Credit Agreement, as so amended and restated being referred to
herein as the "Credit Agreement") to (i) extend the maturity of the Original
Loans on the terms set forth therein, (ii) reflect the Original Agent's
resignation as agent for the Lenders thereunder and the appointment of the Agent
as successor agent for the Lenders and the appointment of the Collateral Agent
as its successor as collateral
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agent for the Lenders under this Agreement, and (iii) make certain other changes
as more fully set forth therein.
E. The Company, the Agent and the Collateral Agent now wish to amend
and restate the Original Pledge Agreement in its entirety to (i) secure the
Lenders= interest in the Obligations and (ii) reflect the Original Agent's
resignation as collateral agent for the Lenders and the appointment of the
Collateral Agent as its successor as collateral agent for the Lenders.
F. It is the intent of the Company, the Lenders, the Agent and the
Collateral Agent that the amendment and restatement of the Original Credit
Agreement shall not constitute a novation of the obligations and liabilities of
the parties under the Original Credit Agreement nor be deemed to evidence or
constitute repayment of all or any portion of such obligations and liabilities
and that the Credit Agreement shall amend and restate in its entirety the
Obligations under the Original Credit Agreement and re-evidence the Obligations
of Company outstanding thereunder.
G. The Company represents and confirms, and the Agent and the
Collateral Agent each acknowledge, that (i) the pledge of the pledged collateral
and securities pursuant to the Original Pledge Agreement continues in full force
and effect and continues to secure the Obligations under the Credit Agreement,
(ii) the Loans represented by the Notes are the same Original Loans which were,
prior to the date hereof, represented by the Original Notes, and (iii) the
transactions contemplated by the Credit Agreement and this Agreement did not and
do not constitute a discharge or release of the pledge under the Original Pledge
Agreement and that the pledge and the Pledged Collateral (as defined below)
securing the Original Loans and Obligations continue to secure the Loans and the
Obligations.
AGREEMENT
In consideration of the premises and the mutual covenants and the
mutual agreements herein set forth and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties, intending to be legally bound, agree as follows:
ARTICLE I
Definitions
Section 1.01. Certain Defined Terms. Unless otherwise defined herein,
capitalized terms used but not otherwise defined in this Agreement have the
meaning given to them in the Credit Agreement. In addition, the following terms
have the following meanings:
"Action" against a Person means an action, suit,
investigation, complaint, litigation, arbitration, contest, hearing,
inquiry, inquest, audit, examination or other
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proceeding threatened or pending against or affecting the Person or its
property, whether civil, criminal, administrative, investigative or
appellate, in law or equity before any arbitrator or Governmental Body.
"Governmental Body" means any agency, bureau, commission,
court, department, official, political subdivision, tribunal or other
instrumentality of any government, whether federal, state or local,
domestic or foreign.
"Issuer" means each of the corporations and entities set forth
on Schedule 4.09 as an issuer of Pledged Stock and any other
corporation or entity that becomes a Subsidiary of the Company.
"Obligors" means each of the individuals, corporations and
entities set forth on Schedule 4.10 as an obligor of Pledged Debt and
any other corporation or entity that becomes a Subsidiary of the
Company.
"Pledged Debt" means all indebtedness, together with any notes
or other instruments evidencing or representing such indebtedness, and
all options or other rights of any nature whatsoever which may be
issued or granted by any of the Obligors to the Company while this
Agreement is in effect, each as set forth on Schedule 4.10 hereto.
"Pledged Shares" means the shares of capital stock and other
equity interests, together with all certificates representing such
shares or equity interests, and all options or other rights of any
nature whatsoever which may be issued or granted by any of the Issuers
to the Company while this Agreement is in effect, each as set forth on
Schedule 4.09 hereto.
"Regulation" means each applicable law, rule, regulation,
order or recommendation (or any change in its interpretation or
administration) by any Governmental Body, central bank or comparable
agency and any request or directive (whether or not having the force of
law) of any of those Persons and each writ, judgment, injunction,
order, decree or award of any arbitrator or Governmental Body.
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ARTICLE II
Pledge and Grant of Security
Section 2.01. Pledge and Grant of Security. As collateral security for
the prompt and complete payment and performance when due (whether at the stated
maturity, by acceleration or otherwise) of the Obligations, the Company hereby
assigns and pledges to the Collateral Agent for its benefit and the ratable
benefit of the Lenders and grants to the Collateral Agent for its benefit and
the ratable benefit of the Lenders a Lien on, security interest in and pledge of
all of the right, title and interest of the Company in and to the following
(collectively, the "Pledged Collateral"):
(a) Pledged Shares. The Pledged Shares and all dividends,
cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for
all or any of the Pledged Shares.
(b) Additional Equity Interests. All additional shares of
capital stock or other equity interests of the Issuers from time to
time acquired by the Company in any manner, the certificates
representing those additional shares, all options and other rights of
any nature whatsoever which may be issued or granted by any of the
Issuers to the Company while this Agreement is in effect, and all
dividends, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in
exchange for all or any of those shares.
(c) Pledged Debt. All Pledged Debt and all interest, cash,
instruments and other property from time to time received, receivable
or otherwise distributed in respect of or in exchange for all or any of
the indebtedness.
(d) Additional Indebtedness. All additional indebtedness from
time to time owed to the Company by any Obligor of the Pledged Debt,
the instruments evidencing the additional indebtedness and all
interest, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in
exchange for all or any of the additional indebtedness.
(e) Other Securities and Instruments. All notes, certificates
of deposit, certificates and all other instruments from time to time
delivered to or otherwise possessed by the Collateral Agent for or on
behalf of the Company in substitution for or in addition to all or part
of the Pledged Stock, the Pledged Debt or the Pledged Collateral.
(f) Subscription and Other Rights. All rights to subscribe for
securities, and all other rights incident to the Pledged Stock, the
Pledged Debt or the Pledged Collateral.
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(g) Proceeds. All proceeds of any and all of the foregoing
Pledged Collateral.
ARTICLE III
Company Remains Liable; Proceeds; Delivery and Voting of Pledged Collateral
Section 3.01. Company Remains Liable. Anything in this Agreement to the
contrary notwithstanding:
(a) Company Remains Liable. The Company shall remain liable to
fully and timely perform all its obligations (whether under contract,
law or otherwise) under or in respect of the Pledged Collateral to the
same extent as if this Agreement had not been executed.
(b) Company Not Released. The exercise by the Collateral
Agent, the Agent or any Lender of any of their rights under any Loan
Document shall not release the Company from any of those obligations.
(c) Collateral Agent, Agent and Lenders Not Liable. Neither
the Collateral Agent, the Agent nor any Lender shall have, by reason of
any Loan Document, any duty, obligation or liability under or in
respect of any Pledged Collateral or any contract or agreement included
in the Pledged Collateral.
(d) Collateral Agent, Agent and Lenders Not Obligated to
Perform. Neither the Collateral Agent, the Agent nor any Lender shall
be obligated to perform any of the obligations of the Company under or
in respect of any Pledged Collateral or any other contract or agreement
included in the Pledged Collateral or to take any action to collect or
enforce any claim for payment assigned by this Agreement.
Section 3.02. Proceeds. Unless an Event of Default shall have occurred
and is continuing:
(a) Hold in Trust. The Company shall hold the funds,
instruments and other items received as proceeds of Pledged Collateral
in trust for the Collateral Agent, segregated from other funds of the
Company and shall deliver the funds, instruments and other items to the
Collateral Agent in the form received, together with any necessary
endorsements.
(b) Deposit. Upon the receipt of the proceeds referred to in
Section 3.02(a), the Collateral Agent shall deposit the proceeds into
the Concentration Account (as defined in the Company Security
Agreement). Thereafter, the proceeds shall be treated and applied in
the same manner as other funds in the Concentration Account.
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Section 3.03. Delivery of Pledged Collateral
(a) Delivery to Collateral Agent. All certificates and instruments,
whether negotiable or otherwise, representing or evidencing the Pledged
Collateral shall be delivered to the Collateral Agent duly endorsed in blank or
accompanied by undated stock powers, instruments of transfer or undated
assignments duly executed in blank, in each case with signatures guaranteed and
otherwise in form and substance satisfactory to the Agent (the "Stock Powers").
(b) Re-registration of Pledged Collateral. At the request of the Agent,
the Company shall promptly cause the Pledged Collateral specified by the Agent
to be registered in the name of the Collateral Agent, the Agent or in the name
of the nominee or nominees specified by the Agent.
(c) Exchange of Certificates. The Collateral Agent may from time to
time exchange certificates or instruments representing or evidencing Pledged
Collateral for certificates or instruments of smaller or larger denominations.
Section 3.04. Voting of Pledged Collateral. Unless an Event of Default
shall have occurred and is continuing, the Company shall be entitled to exercise
any and all voting and other consensual rights pertaining to all or any part of
the Pledged Collateral for any purpose not inconsistent with or in violation of
any of the terms of this Agreement or of any other Loan Document; provided,
however, that the Company shall not exercise or refrain from exercising any
right if, in the sole judgment of the Agent, the action would have a material
adverse effect on the value of all or any part of the Pledged Collateral or on
the interest of the Company, the Collateral Agent, the Agent or the Lenders in
any of the Pledged Collateral. The Company shall give the Collateral Agent and
the Agent at least five Business Days prior written notice of the manner in
which it intends to exercise, or the reasons for refraining from exercising, any
such right.
ARTICLE IV
Representations and Warranties of the Company
The Company hereby represents and warrants to the Collateral Agent, the
Agent and the Lenders as follows:
Section 4.01. Power. The Company has good right and all necessary power
and authority to execute and deliver this Agreement and to consummate the
transactions contemplated hereby, including, without limitation, the granting of
the security interests, Liens and pledges in the Pledged Collateral to the
Collateral Agent.
Section 4.02. Authorization; Binding Effect. The execution and delivery
by the Company of this Agreement, the performance by the Company of its
obligations under this
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Agreement and the consummation of the transactions contemplated hereby has been
duly authorized by all necessary corporate action. No other proceedings on the
part of the Company are necessary to approve and adopt this Agreement or to
approve the consummation of the transactions contemplated hereby. This Agreement
has been duly executed and delivered by the Company and is a legal, valid and
binding obligation of the Company enforceable against the Company in accordance
with its terms.
Section 4.03. Contravention. Neither the execution, delivery and
performance of this Agreement by the Company nor the consummation of the
transactions contemplated hereby will (with or without notice or lapse of time
or both) (a) conflict with, violate or breach any provision of the Company's
organizational documents or bylaws, (b) violate, conflict with or result in a
breach of any Regulation, writ, judgment, injunction, order, decree or award of
any Governmental Body or any other Person by which the Company, any of the
Pledged Collateral or any of its other properties may be bound or affected, (c)
conflict with, result in a default under, or give rise to a right of
termination, cancellation, or acceleration or to a loss of a benefit under any
material contract or material agreement to which the Company is a party or by
which the Company, the Pledged Collateral or any of its other properties may be
bound or affected or (d) result in or require the creation or imposition of any
Lien on any Pledged Collateral or any of the other properties now owned or
hereafter acquired by the Company, except for the Liens in favor of the
Collateral Agent created by this Agreement.
Section 4.04. Approvals. No authorization, consent, order or approval
of, notice to or registration or filing with, or any other action by any
Governmental Body or other Person, is required or advisable in connection with
(a) the due execution and delivery by the Company of this Agreement, (b) the
consummation of the transactions contemplated by this Agreement, including the
granting of the security interests, Liens and pledges of the Pledged Collateral
to the Collateral Agent, (c) the perfection of the security interests, Liens and
pledges granted by this Agreement, (d) the performance by the Company of its
obligations under this Agreement, or (e) the exercise by the Collateral Agent of
its rights and remedies under this Agreement.
Section 4.05. Title. The Company is and, with respect to Pledged
Collateral to be acquired, will be, the sole legal, record and beneficial owner
of the Pledged Collateral, free and clear of any Lien, or option in favor of any
other Person, except for the Liens created by this Agreement and the Company has
good and marketable title to the Pledged Collateral. No security agreement,
financing statement or other instrument similar in effect covering all or any
part of the Pledged Collateral is on file in any recording office, except such
as may have been filed in favor of the Collateral Agent relating to this
Agreement.
Section 4.06. Perfected First Priority Liens. The delivery of the
certificates and instruments to the Collateral Agent in accordance with this
Agreement creates a valid and perfected first priority Lien on, security
interest in and pledge of the Pledged Collateral in favor of the Collateral
Agent, for the ratable benefit of the Lenders, which Liens are prior to all
other
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Liens on the Pledged Collateral and which are enforceable as such against (a)
all creditors of, and purchasers from, the Company, (b) any present or future
creditor obtaining a Lien on the Pledged Collateral, and (c) any other third
party, and all filings and other actions necessary or desirable to perfect and
protect such Liens and security interests have been duly made or taken.
Section 4.07. Chief Place of Business. The chief place of business and
chief executive office of the Company are located at The Atrium, 000
Xxxxxxxxxxxx Xxxxxx, Xxxxxxx, Xxxxxxxxxxxx 00000. The Company keeps all of its
records concerning the Pledged Collateral only at that address.
Section 4.08. Delivery of Certificates. All of the certificates and
instruments representing or evidencing Pledged Collateral and the Stock Powers
have been duly delivered to the Collateral Agent in accordance with Section
3.03.
Section 4.09. Pledged Shares.
(a) Schedule. Schedule 4.09 sets forth a true, correct and complete
list and description of all of the Pledged Shares and the Issuers thereof.
(b) Duly Authorized, Etc. The Pledged Shares are duly authorized,
validly issued, fully paid and non-assessable.
(c) No Other Securities or Interests. The Pledged Shares constitute all
the issued and outstanding shares of capital stock or equity interests of the
Issuers. There are no (i) outstanding capital stock or securities convertible
into or exchangeable or exercisable for any shares of capital stock or
securities of any Issuer, (ii) outstanding rights to subscribe for or to
purchase, or any options for the purchase of, or any calls, commitments or
claims of any character relating to, any shares of capital stock or securities
of any Issuer, (iii) outstanding securities convertible into or exchangeable or
exercisable for any shares of capital stock or securities of any Issuer and (iv)
agreements or arrangements providing for the issuance of any shares of capital
stock or securities of any Issuer.
Section 4.10. Pledged Debt.
(a) Schedule. Schedule 4.10 sets forth a true, correct and complete
list and description of all of the Pledged Debt and the Obligors thereon.
(b) Duly Authorized, Etc. The Pledged Debt is duly authorized, validly
issued and constitutes the legal, valid and binding obligation of the Issuers
thereof enforceable against each such Issuer in accordance with their respective
terms.
Section 4.11. Pledged Collateral.
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(a) No Voting or Transfer Restrictions. There is no agreement or
arrangement restricting the voting or transfer of the Pledged Collateral except
as provided in this Agreement.
(b) No Payment Restrictions. There are no legal, contractual or other
restrictions on the payment of (i) dividends or other distributions on any
shares of the capital stock or securities of any Issuer, including, without
limitation, the Pledged Shares, or (ii) principal or interest on any
indebtedness of any Issuer, including, without limitation, the Pledged Debt, in
each case, except for restrictions imposed by this Agreement and the Credit
Agreement.
(c) No Repurchase Obligations. No Person is subject to any obligation,
contingent or otherwise, to repurchase or otherwise acquire or retire any of the
Pledged Collateral.
ARTICLE V
Covenants of the Company
Section 5.01. No Liens on Pledged Collateral. The Company will not
create, incur, assume or permit to exist, will defend the Pledged Collateral
against, and will take such other actions as is necessary to remove, any Lien or
claim on or to the Pledged Collateral, other than the Liens created hereby, and
will defend the right, title and interest of the Collateral Agent and the
Lenders in and to any of the Pledged Collateral against the claims and demands
of any and all Persons.
Section 5.02. Perfection. The Company will take any and all actions, at
the Company's expense, which are necessary or advisable to ensure that (a) the
Liens granted pursuant to this Agreement at all times constitute perfected Liens
in favor of the Collateral Agent, for the ratable benefit of the Lenders, and
(b) such Liens are at all times prior to all other Liens on the Pledged
Collateral and will be enforceable as such against (i) all creditors of, and
purchasers from, the Company, (ii) any present or future creditor obtaining a
Lien on the Pledged Collateral, and (iii) any other third party.
Section 5.03. No Dispositions of Pledged Collateral. The Company will
not sell, transfer, lease, convey or otherwise dispose of any of the Pledged
Collateral, or attempt, offer or contract to do so.
Section 5.04. Payment of Obligations. The Company will promptly pay and
discharge when due all taxes, assessments and governmental charges or levies
assessed, levied or imposed upon or relating to, and all claims against, the
Pledged Collateral or the Company or in respect of the Company's income or
profits therefrom, as well as all claims of any kind, including, without
limitation, claims for labor, materials and supplies, against or with respect to
the Pledged Collateral.
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Section 5.05. Compliance with Laws, etc. The Company will comply in all
material respects with all Regulations applicable to the Pledged Collateral or
any part thereof or to the operation of the Company's business.
Section 5.06. Maintenance of Records. The Company will keep and
maintain, at its own cost and expense, satisfactory and complete records of the
Pledged Collateral, including, without limitation, a record of all payments
received. The Company will xxxx its books and records pertaining to the Pledged
Collateral to evidence this Agreement and the Liens, security interests and
pledges granted hereby. For the Collateral Agent's and Lenders' further
security, the Collateral Agent, for the ratable benefit of the Lenders, shall
have a security interest in all of the Company's books and records pertaining to
the Pledged Collateral and, upon the occurrence of an Event of Default which is
continuing, the Company shall turn over any such books and records to the
Collateral Agent or to its representatives.
Section 5.07. Right of Inspection. The Collateral Agent, the Agent and
the Lenders shall at all times have full and free access during normal business
hours and, upon the occurrence and continuation of an Event of Default, at any
time, to all the books, correspondence and records of the Company, and the
Collateral Agent, the Agent and the Lenders or their respective representatives
may examine the same, take extracts therefrom and make photocopies thereof, and
the Company agrees to render to the Collateral Agent, the Agent and the Lenders,
at the Company's cost and expense, such clerical and other assistance as may be
reasonably requested with regard thereto.
Section 5.08. Impairment of Pledged Collateral.
(a) General. The Company shall not take, or fail to take, any action in
connection with any Pledged Collateral that would impair the value of the
Pledged Collateral or the interest or rights of the Company, the Collateral
Agent, the Agent or any Lender in, to or under that Pledged Collateral.
(b) Certain Actions Prohibited. The Company will not (i) amend, modify,
terminate, cancel or waive any provision of any Pledged Collateral in any manner
which could reasonably be expected to materially adversely affect the value of
the Pledged Collateral or the interest of the Company, the Collateral Agent, the
Agent or the Lenders in such Pledged Collateral, (ii) fail to exercise promptly
and diligently each and every material right which it may have under or with
respect to the Pledged Collateral or (iii) fail to deliver to the Collateral
Agent a copy of each material demand, notice or document received by it relating
in any way to any of the Pledged Collateral.
(c) Limitations on Extensions. The Company will not grant any extension
of the time of payment of any of the Pledged Collateral, or compromise, compound
or settle the same for less
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than the full amount thereof, release, wholly or partially, any Person liable
for the payment thereof, or allow any credit or discount whatsoever thereon.
Section 5.09. Notices; Reports.
(a) Liens. The Company will advise the Collateral Agent and the Agent
promptly, in reasonable detail, of (i) any Lien (other than Liens created hereby
or permitted under the Credit Agreement) on, or claim asserted against, any of
the Pledged Collateral and (ii) the occurrence of any other event which could
reasonably be expected to have a material adverse effect on (x) the aggregate
value of the Pledged Collateral or (y) the Liens created hereunder.
(b) Reports, Notices, Etc. The Company shall furnish to the Collateral
Agent and the Agent (i) promptly upon receipt, copies of all notices, requests
and other documents received by the Company under or in respect of the Pledged
Collateral, (ii) promptly upon the request of the Agent, information and reports
regarding that Pledged Collateral and (iii) promptly upon the request of the
Agent, make the demands and requests for information or action that the Company
is entitled to make under the Pledged Collateral.
(c) Further Identification of the Pledged Collateral. The Company will
furnish to the Collateral Agent and the Agent from time to time statements and
schedules further listing, identifying and describing the Pledged Collateral and
such other reports in connection with the Pledged Collateral as the Agent may
reasonably request, all in reasonable detail.
Section 5.10. Changes in Locations, Name, etc. The Company will not (i)
change the location of its chief executive office or its chief place of business
from that specified in Section 4.07 or remove its books and records from the
location specified in Section 4.07, or (ii) change its name, identity or
corporate structure or merge or take or suffer any other action that might
result in any financing statement filed by the Collateral Agent in connection
with this Agreement becoming misleading, unless, in each case, it shall have
given the Collateral Agent and the Agent at least 30 days prior written notice
thereof.
Section 5.11. Pledged Collateral.
(a) Collections. Subject to the provisions of Article VI hereof and the
Cash Management System, the Company shall timely collect all amounts due or to
become due to the Company under the Pledged Collateral and otherwise enforce its
rights under and in respect of such Collateral.
(b) Deliver Pledged Collateral to Collateral Agent. In the event that
the Company shall receive any instruments, documents and certificates
representing or evidencing any of the Pledged Collateral, the Company shall
immediately deliver and pledge to the Collateral Agent
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such Pledged Collateral accompanied by Stock Powers, to be held as Pledged
Collateral pursuant to this Agreement.
(c) Performance. The Company will fully and timely perform and observe
all of the terms and provisions of the Pledged Collateral to be performed or
observed by it, except as otherwise provided by law, and maintain the Pledged
Collateral in full force and effect;
(d) No Other Securities. The Company will not permit any Issuer to (i)
issue any capital stock or other securities in addition to or in substitution
for the Pledged Collateral, (ii) issue any other class or series of stock or
securities, (iii) cancel any of the Pledged Collateral, (iv) merge or
consolidate with any Person or acquire all or a substantial portion of the
assets or business of any Person without giving at least 45 days prior written
notice to the Agent or (v) transfer any of its assets except in accordance with
the terms of the Loan Documents.
Section 5.12. Indemnification. The Company will indemnify the
Collateral Agent, the Agent, the Lenders and their respective Affiliates and
each of their respective shareholders, partners, members, directors, officers,
employees, agents and Affiliates (collectively, the "Indemnified Persons")
against and hold each Indemnified Person harmless from any and all liabilities,
obligations, losses, damages, penalties, Actions, judgments, costs, expenses,
claims, diminution in value, or disbursements of any kind or nature whatsoever
(including interest, penalties, fines, judgments, settlements, costs of
preparation and investigation, costs incurred in enforcing this indemnity and
reasonable attorneys' fees and expenses) that the Indemnified Persons may
suffer, sustain, incur or become subject to arising out of, relating to, or due
to:
(a) any inaccuracy or breach of any of the representations and
warranties of the Company contained in this Agreement or in any
certificate delivered hereunder;
(b) the nonfulfillment of any covenant, undertaking, agreement
or other obligation of the Company contained in this Agreement or in
any certificate delivered hereunder;
(c) the failure or delay by the Company in paying, any and all
excise, sales or other taxes which may be payable or determined to be
payable with respect to any of the Pledged Collateral; or
(d) any defense, setoff, counterclaim, recoupment or reduction
or liability whatsoever of the account debtor or obligor under any of
the Pledged Collateral, arising out of a breach by the Company of any
obligation thereunder or arising out of any other agreement,
indebtedness or liability at any time owing to or in favor of such
account debtor or obligor or its successors from the Company.
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Section 5.13. Further Assurances. At any time and from time to time,
upon the written request of the Agent, and at the sole expense of the Company,
the Company will promptly and duly execute and deliver such further instruments
and documents and take such further action as the Agent may reasonably request
for the purpose of obtaining or preserving the full benefits of this Agreement
and of the rights and powers herein granted, including, without limitation, the
filing of any financing or continuation statements under the Uniform Commercial
Code in effect in any jurisdiction with respect to the Liens created hereby and
all actions and filings necessary to maintain the Collateral Agent's first
priority perfected Lien on, security interest in and pledge of all of the
Pledged Collateral. The Company also hereby authorizes the Collateral Agent and
the Agent to file any such financing or continuation statement without the
signature of the Company to the extent permitted by applicable law. A carbon,
photographic or other reproduction of this Agreement shall be sufficient as a
financing statement for filing in any jurisdiction.
ARTICLE VI
Remedies
Section 6.01. Remedies. If an Event of Default shall occur and be
continuing, the Collateral Agent and the Agent shall have each and every right
and remedy available to it whether at law, in equity or otherwise, including,
without limitation, each of the following:
(a) UCC Remedies. The Collateral Agent or the Agent may
exercise all rights and remedies in respect of the Pledged Collateral
available to a secured party under the Uniform Commercial Code in
effect in the relevant jurisdiction (whether or not the Uniform
Commercial Code applies to the affected Pledged Collateral), by law or
otherwise.
(b) Exercise Rights of Company. The Collateral Agent or the
Agent may exercise any and all rights and remedies of the Company under
or in respect of the Pledged Collateral, including, without limitation,
any and all rights of the Company to demand or otherwise require
payment of any amount under, or performance of any provision of, the
Pledged Collateral.
(c) Exercise Voting Rights. The Collateral Agent or the Agent
may terminate all rights of the Company to exercise the voting and
other consensual rights that the Company would otherwise be entitled to
exercise pursuant to Section 3.04 of this Agreement. Upon such
termination, all those rights shall immediately become vested in the
Agent who shall have the sole right to exercise those rights by proxy
or otherwise.
(d) Take Possession of Pledged Collateral. The Collateral
Agent or the Agent may take possession of the Pledged Collateral and,
without liability for trespass, enter on any premises for the purpose
of taking possession of or removing any Pledged Collateral.
-13-
14
(e) Right to Sell Pledged Collateral.
(i) The Collateral Agent or the Agent may, without demand of
performance or other demand, presentment, protest, advertisement or
notice of any kind, and without notice to the Company except as
specified in this Section 6.01, sell, lease, assign, give option or
options to purchase, or otherwise dispose of and deliver all or any
part of the Pledged Collateral in one or more parcels at public or
private sale, at any of the Collateral Agent's offices, on any
securities exchange, or elsewhere, for cash, on credit or for future
delivery, and upon such other terms as the Agent may deem commercially
reasonable.
(ii) The Company agrees that, to the extent notice of sale
shall be required by law, at least ten days notice to the Company of
the time and place of any public sale or the time after which any
private sale is to be made shall constitute reasonable notification.
The Collateral Agent shall not be obligated to consummate any sale of
Pledged Collateral regardless of notice of sale having been given. The
Collateral Agent may adjourn any public sale from time to time by any
notice or announcement and may make any sale without further notice of
the time and place to which the sale was so adjourned.
(iii) For purposes of this Agreement, a written agreement to
purchase all or any of the Pledged Collateral shall be deemed to be a
sale of that property and the Collateral Agent shall be free to carry
out the agreement notwithstanding that the Event of Default shall have
been cured and the Obligations paid in full.
(iv) If all or any part of the Pledged Collateral is sold on
credit or for future delivery, the property may be retained by the
Collateral Agent until the sale price is paid by the purchaser or
purchasers, but the Collateral Agent shall not be liable if the
purchaser or purchasers fail to take up and pay for the property and,
in that event, the Collateral Agent may again sell the property
pursuant to this Section.
(v) The Collateral Agent may restrict the bidders or
purchasers to persons (A) representing that they are purchasing the
Pledged Collateral for their own account for investment and not with a
view to further distribution or sale and (B) satisfying the offeree and
purchaser requirements for a valid private placement or limited
offering under the Securities Act of 1933, as amended. The Company
understands and agrees that the sale may be made at prices and on terms
less favorable than a public sale and agrees that any such sale shall
be deemed to have been made in a commercially reasonable manner even if
the Collateral Agent accepts the first offer received.
(vi) To the extent permitted by law, the Collateral Agent, the
Agent or any Lender may purchase all or any part of the Pledged
Collateral at any public or private sale or sales free of any equity or
right of redemption, stay, valuation or appraisal on the part of the
Company (all said rights being hereby waived and released to the extent
permitted by
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15
law) and may make payment for the purchase by using any claim then due
and payable to the Collateral Agent, the Agent or any Lender, as
applicable, from the Company as a credit against the purchase price,
and the Collateral Agent may, upon compliance with the terms of sale,
hold, retain and transfer the property without further accountability
to the Company.
(vii) Each purchaser at any such sale shall hold the property
sold absolutely free from any claim or right on the part of the
Company, and the Company hereby waives (to the extent permitted by law)
all rights of redemption, stay, valuation and appraisal which the
Company now has or may at any time in the future have under rule of law
or statute now existing or hereafter enacted.
(f) Store Pledged Collateral. The Collateral Agent or the
Agent may cause any Pledged Collateral to be held, stored, processed or
completed prior to sale, and expenses incurred for this purpose shall
constitute Obligations hereunder. The Company agrees to assemble the
Pledged Collateral and make it available to the Collateral Agent or the
Agent at places where the Collateral Agent or the Agent may reasonably
select, whether at the Company's premises or elsewhere.
(g) Notices to Issuers. The Collateral Agent or the Agent may,
without notice to the Company, (i) notify the Issuers of any of the
Pledged Collateral of the assignment and pledge to the Collateral Agent
of the Pledged Collateral, (ii) direct the account debtors or obligors
to make payment and direct the bailees to make delivery directly to the
Collateral Agent, or as the Agent shall otherwise direct, of all
amounts due or to become due to the Company under the Pledged
Collateral and (iii) collect, adjust, settle or compromise those
obligations. While the Collateral Agent or Agent is exercising any
authority under this Section the Company shall not adjust, settle or
compromise any obligation under the Pledged Collateral, release wholly
or partly any account debtor or obligor in respect of those
obligations, or allow any credit or discount on those obligations.
(h) All Other Remedies. The Collateral Agent and the Agent may
exercise all other rights and/or remedies available, whether at law, in
equity or otherwise.
Section 6.02. Waiver. To the extent permitted by applicable law, the
Company waives all claims, damages and demands it may acquire against the
Collateral Agent, the Agent or any of the Lenders arising out of the exercise by
the Collateral Agent, the Agent or any Lender of any of their rights under this
Agreement.
Section 6.03. Remedies Cumulative. All rights and remedies of the
Collateral Agent, the Agent and the Lenders existing under this Agreement and
any other Loan Document are cumulative to, and not exclusive of, any rights or
remedies otherwise available.
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Section 6.04. Payments Held in Trust. All payments, funds, instruments
and other items received by the Company under or in respect of any Pledged
Collateral shall be received in trust for the Collateral Agent, segregated from
other funds of the Company and promptly delivered to the Collateral Agent in the
same form received, together with all necessary endorsements or Stock Powers.
Section 6.05. Application of Funds.
(a) Funds Applied in Accordance with Credit Agreement. The Agent shall
apply all payments and proceeds received under or in respect of the Pledged
Collateral and all cash proceeds received by the Collateral Agent and the Agent
in respect of any sale of, collection from, or other realization upon all or any
part of the Pledged Collateral in accordance with the Credit Agreement.
(b) Company Remains Liable. The Company shall remain fully liable for
any deficiency if the proceeds or other realization of the Pledged Collateral
are insufficient to pay the Obligations and the fees and disbursements of any
attorneys employed by the Collateral Agent, the Agent or the Lenders to collect
such deficiency.
(c) Pledged Collateral In Excess of Obligations. Any amount held by the
Collateral Agent under this Agreement after all the Obligations have been
indefeasibly and finally paid in full in cash shall be paid over to the Company
or to any other Person lawfully entitled to receive payment.
ARTICLE VII
Appointment, Rights and Duties of Collateral Agent
Section 7.01. Appointment of Collateral Agent. In accordance with the
provisions of Section 8.1B of the Credit Agreement, The Chase Manhattan Bank is
hereby appointed Collateral Agent hereunder and under the other Loan Documents
as successor to the Original Agent and the Agent and each Lender hereby
authorizes the Collateral Agent to act as its collateral agent in accordance
with the terms of this Agreement and the other Loan Documents.
Section 7.02. Agent Appointed Attorney-in-Fact. The Company hereby
irrevocably appoints the Agent (with full power of substitution) the Company's
attorney-in-fact, with full authority in the place and stead of the Company and
in the name of the Company or otherwise, from time to time in the Agent's
discretion, to execute any instrument and to take any other action that the
Agent may deem necessary or advisable to accomplish the purposes of this
Agreement, including, without limitation:
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(a) Further Documents. To execute, deliver and file on behalf
of and in the name of the Company one or more financing statements,
notices, copies of this Agreement or such other documents, and
amendments and continuations to those statements or documents, relating
to all or any part of the Pledged Collateral without the signature of
the Company where permitted by law. The Company agrees that a carbon,
photographic or other reproduction of this Agreement, any financing
statement, notice or other document covering the Pledged Collateral
shall be sufficient as a financing statement where permitted by law.
(b) Continue Perfection. To take any and all actions on behalf
of and in the name of the Company, at the Company's expense, which are
necessary or advisable to ensure that (i) the Liens granted pursuant to
this Agreement at all times constitute perfected Liens in favor of the
Collateral Agent, for the ratable benefit of the Lenders, and (ii) such
Liens are at all times prior to all other Liens on the Pledged
Collateral and will be enforceable as such against (x) all creditors
of, and purchasers from, the Company, (y) any present or future
creditor obtaining a Lien on the Pledged Collateral, and (z) any other
third party.
(c) Pay Taxes. To pay or discharge taxes and Liens levied or
placed on or threatened against the Pledged Collateral, to effect any
repairs called for by the terms of this Agreement and to pay all or any
part of the costs thereof.
(d) Collect Collateral. Upon the occurrence and during the
continuation of an Event of Default, to ask, demand, collect, xxx for,
recover, compromise, receive, indorse and give acquittance, discharge
and receipts for moneys or other instruments, documents and chattel
paper due and to become due under or in respect of all or any part of
the Pledged Collateral (whether as interest, dividend, other
distribution or otherwise) and to direct any party liable for any
payment under any of the Pledged Collateral to make such payment
directly to the Collateral Agent or as the Agent shall direct.
(e) Institute Proceedings. Upon the occurrence and during the
continuation of an Event of Default, to file any claims, proofs of
claim, subrogation receipts or take any action or commence or institute
any proceedings which the Agent may deem necessary or desirable for the
collection of all or any part of the Pledged Collateral or otherwise to
enforce the rights of the Collateral Agent with respect to all or any
part of the Pledged Collateral.
(f) Transfer Collateral Into Collateral Agent's Name. Upon the
occurrence and during the continuation of an Event of Default, to
transfer any Pledged Collateral into the Collateral Agent's or its
nominee's name.
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(g) Vote Pledged Collateral. Upon the occurrence and during
the continuation of an Event of Default, to exercise all or any of the
voting rights and other consensual rights pertaining to the Pledged
Collateral.
(h) Other Actions. Upon the occurrence and during the
continuation of an Event of Default, to take any other action it deems
advisable with respect to the Pledged Collateral or to accomplish the
purposes of this Agreement and, generally, to sell, transfer, pledge
and make any agreement with respect to or otherwise deal with any of
the Pledged Collateral as fully and completely as though the Collateral
Agent were the absolute owner thereof for all purposes, and to do, at
the Agent's option and the Company's expense, at any time, or from time
to time, all acts and things which the Agent deems necessary to
protect, preserve or realize upon the Pledged Collateral and the
Collateral Agent's Liens thereon for the ratable benefit of the Lenders
and to effect the intent of this Agreement, all as fully and
effectively as the Company might do.
The Company hereby ratifies all that said attorney shall lawfully do or cause to
be done by virtue hereof. This power of attorney is a power coupled with an
interest and shall be irrevocable. Nothing contained in this Section 7.02 shall
in any way obligate the Collateral Agent or the Agent to take or refrain from
taking any of the actions specified in this Section 7.02.
Section 7.03. Collateral Agent or Agent May Perform. If the Company
fails to perform any obligation under this Agreement or under or in respect of
any Pledged Collateral or any representation of the Company contained in this
Agreement or in any document included in the Pledged Collateral shall be untrue
or incorrect in any material respect, the Collateral Agent or the Agent may, but
shall be under no obligation to, perform the obligation or remedy that breach,
or cause it to be performed or remedied, and the expenses incurred by or on
behalf of the Collateral Agent or the Agent in connection with the performance
of the obligation or the remedy of the breach shall constitute Obligations.
Section 7.04. Duties of Collateral Agent and The Agent.
(a) Duties. The powers conferred on the Collateral Agent and the Agent
by this Agreement are solely to protect the Collateral Agent's, the Agent's and
the Lenders' interest in the Pledged Collateral and shall not impose on the
Collateral Agent, the Agent or any Lender any duty to exercise any powers.
Except for the safe custody of any Pledged Collateral in its possession and the
accounting for moneys actually received by it under this Agreement, the
Collateral Agent, the Agent nor any Lender shall have any duty or liability as
to any Pledged Collateral or as to the taking of any necessary steps to preserve
rights against prior parties or as to any other rights or matters pertaining to
any Pledged Collateral. The Collateral Agent shall be deemed to have exercised
reasonable care in the custody and preservation of the Pledged Collateral in its
possession if the Collateral Agent treats the Pledged Collateral substantially
the same as it treats similar property of its own.
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(b) Not Responsible. The Collateral Agent, the Agent and the Lenders
shall not have any responsibility or liability for (i) ascertaining or taking
action with respect to calls, conversions, exchanges, maturities, tenders or
other matters relative to any Pledged Collateral, whether or not the Collateral
Agent, the Agent or any Lender has or is deemed to have knowledge of such
matters, (ii) taking any necessary steps to preserve rights against any parties
with respect to any Pledged Collateral, (iii) collecting any proceeds of any
Pledged Collateral or by reason of any invalidity, lack of value or
uncollectability of any of the payments received by it from obligors or
otherwise or (iv) any other matter in connection with any Loan Document except
in respect of duties specifically undertaken by it in this Agreement and in that
case none of the Collateral Agent, the Agent or any of the Lenders shall be
liable to any party in the absence of gross negligence or willful misconduct.
ARTICLE VIII
Termination and Waiver
Section 8.01. Continuing Security Interest. This Agreement shall create
a continuing security interest in, Lien on, and pledge of, the Pledged
Collateral, without respect to the amount of the Obligations outstanding from
time to time, and shall remain in full force and effect until the Obligations
have been indefeasibly paid and otherwise performed in full in cash. Thereafter,
this Agreement shall be reinstated if at any time any payment of any of the
Obligations is rescinded or must otherwise be returned upon the insolvency,
bankruptcy or reorganization of the Company or any other Person or otherwise,
all as though the payment had not been made.
Section 8.02. Termination. Upon the indefeasible payment and
performance of the Obligations in full in cash, the security interests granted
by this Agreement shall terminate and all rights to the Pledged Collateral shall
revert to the Company. At the Company's expense, the Collateral Agent shall then
execute and deliver to the Company the documents reasonably requested and
prepared by the Company to evidence the termination.
Section 8.03. Waiver. The Company unconditionally waives, to the full
extent permitted by law:
(a) Set-Off. Any defense, set-off or counterclaim which the
Company may otherwise assert against the Collateral Agent, the Agent or
the Lenders.
(b) Notice, etc. Presentment, protest, demand for payment,
promptness, diligence, notice of protest, notice of any other action at
any time taken or omitted by the Collateral Agent, the Agent or any
Lender and, generally, all demands and notices of every kind in
connection with any Loan Document or the Obligations, including,
without limitation:
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(i) notice of any of the matters referred to in
Section 8.04; and
(ii) all notices which may be required by statute,
rule of law or otherwise, now or hereafter in effect, to
preserve intact any rights against the Company under any Loan
Document or as a requirement to the enforcement, assertion or
exercise against the Company of any right, power, privilege or
remedy conferred under any Loan Document.
(c) Exhaust Other Remedies. Any requirement to exhaust any
rights or remedies or to mitigate the damages resulting from any
default under any Loan Document or any other document or any
requirement to protect, secure, perfect or insure any Lien or any
property subject to the Lien or take any other action against any
person or any collateral or other property.
(d) Claims. All claims that the sale price of any Pledged
Collateral was inadequate or unreasonable for any reason and all other
claims to damages and demands of any nature against the Collateral
Agent, the Agent and the Lenders.
(e) Equitable Rights. All equities and rights of appraisal,
stay and redemption (whether now or hereafter existing), in each case
arising out of the Collateral Agent, the Agent or the Lenders enforcing
any of their rights and remedies under any Loan Document.
(f) Subrogation and/or Contribution. Any exoneration or
release from the Obligations resulting from any loss by the Company of
its rights, if any, of subrogation or contribution.
(g) Other Circumstances. Any other circumstance whatsoever,
including, without limitation, those stated in Section 8.04, which
might otherwise constitute a defense to or a legal or equitable
discharge or release of a guarantor or surety or a party granting
security or which might otherwise limit recourse against the Company.
Section 8.04. Obligations Not Affected. The rights of the Collateral
Agent, the Agent and the Lenders and the obligations of the Company under this
Agreement shall be absolute and unconditional, present and continuing and shall
remain in full force and effect and shall not be released, discharged or in any
way affected by any circumstance or condition of any nature (whether or not the
Company, the Collateral Agent, the Agent or any Lender shall have any notice or
knowledge of the circumstance or condition), including, without limitation:
(a) Failure of Documents. The invalidity, illegality,
unenforceability, discharge, termination, cancellation or frustration,
in whole or in part, of any Obligation, Loan Document or other
document.
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(b) Failure to Exercise Rights and/or Remedies. The exercise
or failure to exercise by any person any right, remedy, privilege or
power under any Loan Document or other document.
(c) Collection Attempts. Any demand or attempt to collect
from, or failure to demand or attempt to collect from, the Company or
any other Person under any Loan Document or other document.
(d) Security and Guarantees. The giving, acceptance,
existence, non-existence, validity, invalidity or value of any security
or collateral securing the Obligations or any guarantee of the
Obligations, including, without limitation, the Pledged Collateral and
the guarantees by the Subsidiary Guarantors, any attempt or failure to
attempt to realize upon that security, collateral or guarantee or the
exchange, substitution, renewal, extension, modification, compromise,
release, discharge or failure to perfect for any reason that security,
collateral or guarantee.
(e) Actions. Any change in the time, place or manner of
payment or the waiver, consent, extension, renewal, indulgence,
compromise, release, settlement, refunding, funding, or any other
forbearance or other action taken, delayed or omitted by the Collateral
Agent, the Agent, any Lender, the Company, or any other Person under or
in respect of any term or provision of any Obligation, Loan Document or
other document.
(f) Modifications. The termination, modification, alteration,
amendment, waiver, addition, deletion or other change to any
Obligation, Loan Document or other document or any provision of any of
those documents.
(g) Reorganizations. The liquidation, dissolution, merger or
consolidation of the Company or any other Person, or the transfer by
the Company or any other Person of all or any part of its property or
assets, or the change in the ownership of any shares of capital stock
of the Company or any other Person.
(h) Bankruptcy. The voluntary or involuntary bankruptcy,
receivership, liquidation, insolvency, reorganization, arrangement,
assignment for the benefit of creditors or similar proceedings
involving or affecting the Company any other Person or any of their
property.
(i) Release. The release or discharge, by operation of law or
otherwise, of the Company or any other Person from any Obligation or
any provision of any Loan Document or other document.
(j) Other Circumstances. Any other circumstance whatsoever,
foreseen or unforseen, which may or might in any manner or to any
extent vary the risks of the
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Company or otherwise constitute a defense available to or a legal or
equitable discharge of or limit recourse against a surety, a guarantor
or a party granting security, the Company or otherwise.
ARTICLE IX
Miscellaneous
Section 9.01. Notices. Unless otherwise specifically provided herein,
any notice or other communication herein required or permitted to be given shall
be in writing and may be personally served, telexed or sent by telefacsimile (so
long as such notice sent by telefacsimile is followed within two Business Days
by a notice sent by another method specified hereunder) or United States mail or
courier service and shall be deemed to have been given when delivered in person
or by courier service, upon receipt of telefacsimile or telex, or three Business
Days after depositing it in the United States mail with postage prepaid and
properly addressed; provided that notices to Agent shall not be effective until
received. For the purposes hereof, the address of each party hereto shall be as
set forth under such party's name on the signature pages hereof or (i) as to
Company, the Collateral Agent and Agent, such other address as shall be
designated by such Person in a written notice delivered to the other parties
hereto and (ii) as to each other party, such other address as shall be
designated by such party in a written notice delivered to Agent.
Section 9.02. Expenses. The Company agrees to pay to the Collateral
Agent, the Agent and the Lenders on demand the amount of any and all expenses,
including, without limitation, the fees and expenses of the Collateral Agent's,
the Agent's or the Lenders' counsel, which the Collateral Agent, the Agent or
any Lender may pay or incur in exercising or enforcing their rights under this
Agreement.
Section 9.03. Transfer of Notes. If any Lender shall transfer any Note
held by it or grant participations in all or any of its Obligations, the
transferees of the Note or the grantees of the participations, as the case may
be, shall have the rights of the Lender under this Agreement in respect of the
Note or Obligations.
Section 9.04. Counterparts. This Agreement may be executed
simultaneously in one or more counterparts, and by different parties hereto in
separate counterparts, each of which when executed will be deemed an original,
but all of which taken together will constitute one and the same instrument.
Section 9.05. Interpretation. As used in this Agreement, references to
the singular will include the plural and vice versa and references to the
masculine gender will include the feminine and neuter genders and vice versa, as
appropriate. Unless otherwise expressly provided in this
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Agreement (a) the words "hereof", "herein" and "hereunder" and words of similar
import when used in this Agreement will refer to this Agreement as a whole and
not to any particular provision of this Agreement and (b) article, section,
subsection, schedule and exhibit references are references with respect to this
Agreement unless otherwise specified. References in this Agreement to any law or
regulation will refer to such laws and regulations as from time to time amended
and to any laws or regulations successor thereto. Unless the context otherwise
requires, the term "including" will mean "including, without limitation@.
Section 9.06. Descriptive Headings. The headings in this Agreement and
in the Schedules, Exhibits and Annexes are included for convenience of reference
only and will not affect in any way the meaning or interpretation of this
Agreement.
Section 9.07. Incorporation of Schedules, Exhibits and Annexes. The
Schedules, Exhibits and Annexes hereto are incorporated into this Agreement and
will be deemed a part hereof as if set forth herein in full. In the event of any
conflict between the provisions of this Agreement and any Schedule, Exhibit or
Annex, the provisions of this Agreement will control.
Section 9.08. Amendment of Agreement. This Agreement may not be amended
except by an instrument in writing signed on behalf of each of the parties
hereto.
Section 9.09. Successors and Assigns. This Agreement will be binding
upon and inures to the benefit of and is enforceable by the respective
successors and permitted assigns of the parties hereto. This Agreement may not
be assigned by any party hereto without the prior written consent of all other
parties hereto except for the assignment of all or any part of the rights and
obligations of the Collateral Agent under this Agreement, which may be assigned
by the Collateral Agent as provided in Section 8.1B and 9.1 of the Credit
Agreement. Any assignment or attempted assignment in contravention of this
Section will be void ab initio and will not relieve the assigning party of any
obligation under this Agreement.
Section 9.10. No Waiver; Remedies. No failure or delay by any party in
exercising any right, power or privilege under this Agreement will operate as a
waiver of the right, power or privilege. A single or partial exercise of any
right, power or privilege will not preclude any other or further exercise of the
right, power or privilege or the exercise of any other right, power or
privilege. The rights and remedies provided in this Agreement and the other Loan
Documents will be cumulative and not exclusive of any rights or remedies
provided by law.
Section 9.11. Severability. If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any rule of law,
or public policy, all other conditions and provisions of this Agreement will
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
adverse to any party. Upon such determination that any term or other provision
is invalid, illegal or incapable of being enforced, the parties hereto will
negotiate in good faith to
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modify this Agreement so as to effect the original intent of the parties as
closely as possible in an acceptable manner to the end that the transactions
contemplated hereby are fulfilled to the extent possible.
Section 9.12. Governing Law. This Agreement will be governed by, and
construed in accordance with, the laws of the state of New York applicable to
contracts executed in and to be performed entirely within that state.
Section 9.13. No Third-Party Rights. This Agreement is not intended,
and will not be construed, to create any rights in any parties other than the
Company, the Collateral Agent, the Agent and the Lenders, and no Person may
assert any rights as third-party beneficiary hereunder, except as provided in
Section 5.12.
Section 9.14. Submission to Jurisdiction. Any Action with respect to
this Agreement may be brought in the courts of the State of New York or of the
United States of America for the Southern District of New York, and each of the
Company, the Collateral Agent, the Agent and the Lenders hereby accepts for
itself and in respect of its property, generally and unconditionally, the
jurisdiction of these courts. Each of the Company, the Collateral Agent, the
Agent and the Lenders hereby irrevocably waives any objection, including,
without limitation, any objection to the laying of venue or based on the grounds
of forum non conveniens, which it may now or hereafter have to the bringing of
any Action in those jurisdictions.
Section 9.15. Waiver of Jury Trial. Each party waives any right to a
trial by jury in any Action to enforce or defend any right under this Agreement
or any amendment, instrument, document or agreement delivered or to be delivered
in connection with this Agreement and agrees that any Action will be tried
before a court and not before a jury.
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IN WITNESS WHEREOF, the parties have executed and delivered this
Agreement as of the date first written above in New York, New York.
NORTHSTAR HEALTH SERVICES, INC.
By:___________________________________
Name:
Title:
THE CHASE MANHATTAN BANK, as Collateral
Agent for the Lenders
By:___________________________________
Name:
Title:
CERBERUS CAPITAL MANAGEMENT, LLC, as
Agent for the Lenders
By:___________________________________
Name:
Title:
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SCHEDULE 4.09
to
AMENDED AND RESTATED COMPANY PLEDGE AGREEMENT
Pledged Shares
--------------
Issuer Authorized Shares Pledged Shares
------ ----------------- --------------
NSHS Services, Inc. 1,000 100
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SCHEDULE 4.10
to
AMENDED AND RESTATED COMPANY PLEDGE AGREEMENT
Pledged Debt
------------
Obligor Pledged Debt
------- ------------
None
-27-
