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CREDIT AGREEMENT
AMONG
HERCULES INCORPORATED
THE SUBSIDIARIES OF HERCULES INCORPORATED
FROM TIME TO TIME PARTIES HERETO
THE SEVERAL LENDERS
FROM TIME TO TIME PARTIES HERETO,
NATIONSBANK, N.A.,
AS ADMINISTRATIVE AGENT
AND
THE CHASE MANHATTAN BANK,
XXXXXX GUARANTY TRUST COMPANY
OF NEW YORK,
AND
CITIBANK, N.A.,
AS CO-SYNDICATION AGENTS
DATED AS OF OCTOBER 15, 1998
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TABLE OF CONTENTS
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SECTION 1. Representations and Warranties of the Company.................................................1
1.1. Corporate Authority........................................................................1
1.2. Financial Statements.......................................................................2
1.3. Validity of Documents......................................................................2
1.4. No Events of Default.......................................................................3
1.5. Litigation.................................................................................3
1.6. Use of Proceeds............................................................................3
1.7. No Change..................................................................................4
1.8. Federal Regulations........................................................................4
1.9. ERISA......................................................................................4
1.10. Investment Company Act; Other Regulations.................................................4
1.11. Compliance with Law.......................................................................5
1.12. Taxes.....................................................................................5
1.13. Material Subsidiaries.....................................................................5
1.14. Environmental Matters.....................................................................6
1.15. Solvency..................................................................................7
1.16. Disclosure................................................................................7
1.17. No Burdensome Restrictions................................................................7
1.18. Representations and Warranties from Merger Agreement......................................7
1.19. Year 2000 Compliance......................................................................8
SECTION 2. Amount and Terms of Commitments...............................................................8
2.1. Revolving Credit Commitments...............................................................8
2.2. Revolving Credit Notes.....................................................................8
2.3. Procedure for Revolving Credit Borrowing...................................................9
2.4. Fees.......................................................................................9
2.5. Termination or Reduction of Revolving Committed Amount....................................10
2.6. Prepayments...............................................................................10
2.7. Conversion and Continuation Options.......................................................12
2.8. Minimum Amounts of Tranches and Maximum Number of Eurodollar Loans........................13
2.9. Interest Rates and Payment Dates..........................................................13
2.10. Computation of Interest and Fees.........................................................14
2.11. Pro Rata Treatment and Payments..........................................................14
2.12. Taxes....................................................................................15
2.13 Designated Borrowers......................................................................17
2.14. Several Liability of Borrowers...........................................................18
2.15 Swingline Loan Subfacility................................................................18
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2.16 Letter of Credit Subfacility..............................................................20
2.17 Term Loan Tranches........................................................................25
SECTION 3. Change in Circumstances Affecting Loans......................................................27
3.1. Basis for Determining Interest Rate Inadequate or Unfair..................................27
3.2. Illegality................................................................................28
3.3. Increased Cost............................................................................28
3.4. Effect on Obligation to Convert...........................................................29
3.5. Funding Losses............................................................................29
SECTION 3A. Guaranty ...................................................................................30
3A.1 Guaranty of Payment ......................................................................30
3A.2 Obligations Unconditional ................................................................30
3A.3 Modifications ............................................................................31
3A.4 Waiver of Rights .........................................................................31
3A.5 Reinstatement ............................................................................32
3A.6 Remedies .................................................................................32
3A.7 Limitation of Guaranty ...................................................................32
3A.8 Rights of Contribution....................................................................33
3A.9 Releases of Certain Guarantors ...........................................................33
SECTION 4. Conditions Precedent.........................................................................33
4.1. Effectiveness of this Agreement...........................................................33
4.2. Conditions to all Borrowings..............................................................34
SECTION 5. Covenants....................................................................................35
5.1. Affirmative Covenants.....................................................................35
5.2. Negative Covenants........................................................................39
SECTION 6. Defaults.....................................................................................44
SECTION 7. Definitions..................................................................................47
SECTION 8. The Agent....................................................................................65
8.1. Appointment...............................................................................65
8.2. Delegation of Duties......................................................................66
8.3 Exculpatory Provisions.....................................................................66
8.4 Reliance by Agent..........................................................................66
8.5. Notice of Default.........................................................................67
8.6. Non-Reliance on Agent and Other Lenders...................................................67
8.7. Indemnification...........................................................................68
8.8. Agent in Its Individual Capacity..........................................................68
8.9. Successor Agent...........................................................................68
SECTION 9. Miscellaneous................................................................................69
9.1. Amendments and Waivers....................................................................69
9.2. Notices...................................................................................70
9.3. No Waiver; Cumulative Remedies............................................................70
9.4. Survival of Representations and Warranties................................................71
9.5. Payment of Expenses and Taxes.............................................................71
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9.6 Successors and Assigns; Participations and Assignments.....................................72
9.7. Adjustments; Set-off......................................................................74
9.8. Counterparts..............................................................................75
9.9. Adjustments for Changes in GAAP...........................................................75
9.10. Severability; Section Headings...........................................................75
9.11. Integration..............................................................................75
9.12. Governing Law............................................................................76
9.13. Submission To Jurisdiction; Waivers......................................................76
9.14. Acknowledgments..........................................................................76
9.15. Waiver of Jury Trial.....................................................................77
9.16. Termination of Collateral Period.........................................................77
9.17. Confidentiality..........................................................................77
9.18. Prudential Intercreditor Agreement.......................................................78
EXHIBITS
Exhibit A - Form of Revolving Credit Note
Exhibit B - Form of Swingline Note
Exhibit C - Form of Assignment and Acceptance
Exhibit D - Form of Borrower Joinder Agreement
Exhibit E - Form of Guarantor Joinder Agreement
Exhibit F - Form of Notice of Borrowing for Revolving Credit Loans
Exhibit G - Form of Notice of Borrowing for Term Loans
Exhibit H - Form of Term Loan Note
Exhibit I - Form of Pledge Agreement
Exhibit J - Form of Prudential Intercreditor Agreement
SCHEDULES
SCHEDULE I - Commitments; Notice Addresses
SCHEDULE II - Material Subsidiaries
SCHEDULE III - Required Consents, Authorizations, Notices and Filings
SCHEDULE IV - Existing Indebtedness of the Material Subsidiaries
SCHEDULE V - Representation Regarding Collateral Documents
SCHEDULE VI - Existing Letters of Credit
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CREDIT AGREEMENT
CREDIT AGREEMENT, dated as of October 15, 1998 (as amended,
supplemented or otherwise modified from time to time pursuant to the applicable
provisions hereof, the "Agreement"), among HERCULES INCORPORATED, a Delaware
corporation (the "Company"), such subsidiaries of the Company as may from time
to time be Borrowers and/or Guarantors hereunder in accordance with the
provisions hereof (collectively with the Company, the "Credit Parties"), the
several banks and other financial institutions from time to time parties to this
Agreement (the "Lenders"), NATIONSBANK, N.A., a national banking association, as
administrative agent (in such capacity, the "Agent") for the Lenders, and THE
CHASE MANHATTAN BANK, XXXXXX GUARANTY TRUST COMPANY OF NEW YORK and CITIBANK,
N.A., as Co-Syndication Agents (in such capacity, the "Co-Agents").
The parties hereto agree to as follows:
SECTION 1. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.
In order to induce the Lenders and the Agent to enter into this
Agreement and to make the Loans (as that term and other capitalized terms not
otherwise defined herein are hereinafter defined in Section 7) and other
extensions of credit hereunder, the Credit Parties make the following
representations, covenants and warranties which shall survive the execution and
delivery of the Credit Documents:
1.1. CORPORATE AUTHORITY.
(a) Each Credit Party is a duly and validly existing corporation, and
is in good standing under the laws of the State of its incorporation. The
execution, delivery and performance of the Credit Documents are within each
Credit Party's corporate authority and have been duly authorized by proper
corporate proceedings. This Agreement has been, and each of the other Credit
Documents required to be executed and delivered by a Credit Party will be, duly
executed and delivered by each Credit Party that is a party thereto.
(b) Each Credit Party (i) has the corporate or other necessary power
and authority, and the legal right, to own and operate its property, to lease
the property it operates as lessee and to conduct the business in which it is
currently engaged and (ii) is duly qualified as a foreign entity and in good
standing under the laws of each jurisdiction where its ownership, lease or
operation of property or the conduct of its business requires such
qualification, other than in such jurisdictions where the failure to be so
qualified and in good standing could not reasonably be expected to have a
Material Adverse Effect.
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1.2. FINANCIAL STATEMENTS.
(a) The consolidated balance sheet of the Company and its Consolidated
Subsidiaries as of December 31, 1997, and the related consolidated statements of
income, stockholders' equity and cash flow (including the notes thereto) for the
fiscal year ended on such date, reported upon by Coopers & Xxxxxxx, present
fairly in all material respects the consolidated financial position of the
Company and its Consolidated Subsidiaries as of said date and the consolidated
results of their operations for such fiscal year, in conformity with GAAP.
(b) The consolidated balance sheets of the Company and its Consolidated
Subsidiaries as of June 30, 1998, and the related consolidated statements of
income and cash flows for the quarterly period ended on such date, present
fairly in all material respects the consolidated financial position of the
Company and its Consolidated Subsidiaries as of said date and the consolidated
results of their operations for such quarterly period, in conformity with GAAP;
provided, however, that such financial statements are subject to year-end
adjustments and are presented without footnotes.
(c) The pro forma consolidated balance sheet of the Company and its
Consolidated Subsidiaries as of the Closing Date giving effect to the
Acquisition in accordance with the terms of the Merger Agreement and reflecting
estimated purchase price accounting adjustments, has heretofore been furnished
to each Lender. Such pro forma balance sheet is based upon reasonable
assumptions made known to the Lenders and upon information not known to be
incorrect or misleading in any material respect.
(d) The financial statements delivered to the Lenders pursuant to
subsection 5.1(a)(i)(A) and (B), (i) have been prepared in accordance with GAAP
(except as may otherwise be permitted hereunder) and (ii) present fairly (on the
basis disclosed in the footnotes to such financial statements) the consolidated
financial condition, results of operations and cash flows of the Company and its
Consolidated Subsidiaries as of such date and for such periods.
1.3. VALIDITY OF DOCUMENTS.
(a) This Agreement constitutes, and the other Credit Documents when
duly executed and delivered by each Credit Party that is a party thereto in
accordance with this Agreement will constitute, legal, valid and binding
obligations of each Credit Party, each enforceable in accordance with its terms
except as the enforceability of such Credit Document may be limited (x) by
general principles of equity and conflicts of laws or (y) by bankruptcy,
reorganization, insolvency, moratorium or other laws of general application
relating to or affecting the enforcement, of creditors' rights. Neither the
execution, delivery or performance of this Agreement or the other Credit
Documents, nor compliance with the terms and provisions hereof and thereof, will
(i) conflict with, or result in a breach of any provisions of, any Requirement
of Law applicable to the Credit Parties, specifically including the certificate
of incorporation or the by-laws of a Credit Party, or any agreement or
instrument to which a Credit Party is a party, or by which it or its properties
is bound,
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or constitute a default thereunder, except where such conflict, breach or
default would not reasonably be expected to have a Material Adverse Effect or
(ii) result in or require the creation of any Lien (other than those
contemplated in or created in connection with the Credit Documents) upon a
Credit Party or with respect to its properties.
(b) No consent or authorization of, filing with, notice to or other
similar act by or in respect of, any Governmental Authority or any other Person
is required to be obtained or made by or on behalf of any Credit Party in
connection with the borrowings or other extensions of credit hereunder or with
the execution, delivery, performance, validity or enforceability of the Credit
Documents to which such Credit Party is a party, except for (i) consents,
authorizations, notices and filings described in Schedule III, all of which have
been obtained or made or have the status described in such Schedule III and (ii)
filings to perfect the Liens created by the Collateral Documents.
1.4. NO EVENTS OF DEFAULT.
No Event of Default specified in Section 6 of this Agreement and no
event of default specified in any other agreement evidencing indebtedness of the
Company or any of its Material Subsidiaries for borrowed money in excess of
$25,000,000, and no event which, with the giving of notice or lapse of time, or
both, could become such an Event of Default or event of default, has occurred
and is continuing.
1.5. LITIGATION.
Except as set forth on the Company's Form 10-Q filed with the
Securities and Exchange Commission for the quarterly period ended June 30, 1998,
there are no actions, suits or proceedings pending or, to the knowledge of a
Credit Party, threatened against or affecting the Company or any Consolidated
Subsidiary before any court or before any governmental or administrative body or
agency, which could reasonably be expected to have a Material Adverse Effect.
1.6. USE OF PROCEEDS.
The proceeds of the Loans shall be used (a) to fund the Acquisition
(including, without limitation, through loans, advances or equity contributions
made to Subsidiaries of the Company) and (b) for working capital, capital
expenditures, repayment of Indebtedness of the Company, BetzDearborn and their
Subsidiaries and other general corporate purposes. The Letters of Credit shall
be used only for or in connection with appeal bonds, reimbursement obligations
arising in connection with surety and reclamation bonds, reinsurance, domestic
or international trade transactions and obligations not otherwise aforementioned
relating to transactions entered into by the applicable account party in the
ordinary course of business.
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1.7. NO CHANGE.
Since June 30, 1998, there has been no development or event which has
had or could reasonably be expected to have a Material Adverse Effect.
1.8. FEDERAL REGULATIONS.
No part of the Letters of Credit or the proceeds of any Loans will be
used for "purchasing" or "carrying" any "margin stock", within the respective
meanings of each of the quoted terms under Regulation U of the Board of
Governors of the Federal Reserve System as now and from time to time hereafter
in effect or for any purpose which violates the provisions of the Regulations of
such Board of Governors. If requested by any Lender or the Agent, each Borrower
will furnish to the Agent and each Lender a statement to the foregoing effect in
conformity with the requirements of FR Form U-1 referred to in said Regulation
U.
1.9. ERISA.
Each of the following statements is true, except to the extent that the
events or conditions causing such statements to be untrue, either individually
or in the aggregate, would not be reasonably likely to result in any liability
having a Material Adverse Effect: Neither a Reportable Event nor an "accumulated
funding deficiency" (within the meaning of Section 412 of the Code or Section
302 of ERISA) has occurred during the five-year period prior to the date on
which this representation is made or deemed made with respect to any Plan, and
each Plan has complied in all material respects with the applicable provisions
of ERISA and the Code. No termination of a Single Employer Plan has occurred,
and no Lien in favor of the PBGC or a Plan has arisen, during such five-year
period. The present value of all accrued benefits under each Single Employer
Plan (based on those assumptions used to fund such Plans) did not, as of the
last annual valuation date prior to the date on which this representation is
made or deemed made, exceed the value of the assets of such Plan allocable to
such accrued benefits. Neither a Credit Party nor any Commonly Controlled Entity
has had a complete or partial withdrawal from any Multiemployer Plan, and
neither a Credit Party nor any Commonly Controlled Entity would become subject
to any liability under ERISA if such Credit Party or any such Commonly
Controlled Entity were to withdraw completely from all Multiemployer Plans as of
the valuation date most closely preceding the date on which this representation
is made or deemed made. No such Multiemployer Plan is in Reorganization or
Insolvent.
1.10. INVESTMENT COMPANY ACT; OTHER REGULATIONS.
No Credit Party is an "investment company", or a company "controlled"
by an "investment company", within the meaning of the Investment Company Act of
1940, as amended. No Credit Party is subject to regulation under any Federal or
State statute or regulation which limits its ability to incur Indebtedness. No
director, executive officer or principal shareholder of a Credit Party or any of
its Subsidiaries is a director, executive officer or principal shareholder of
any Lender. For the purposes
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hereof the terms "director", "executive officer" and "principal shareholder"
(when used with reference to any Lender) have the respective meanings assigned
thereto in Regulation O issued by the Board of Governors of the Federal Reserve
System. None of the transactions contemplated by this Agreement (including,
without limitation, the direct or indirect use of the proceeds of the Loans)
will violate or result in a violation of the Securities Act of 1933, as amended,
or the Securities Exchange Act of 1934, as amended, or regulations issued
pursuant thereto.
1.11. COMPLIANCE WITH LAW.
Each of the Company and its Consolidated Subsidiaries is in compliance
with all Requirements of Law except to the extent that the failure to comply
therewith could not, in the aggregate, reasonably be expected to have a Material
Adverse Effect.
1.12. TAXES.
Each of the Company and its Consolidated Subsidiaries has filed, or
caused to be filed, all tax returns (federal, state, local and foreign) required
to be filed and paid (a) all amounts of taxes shown thereon to be due (including
interest and penalties) and (b) all other taxes, fees, assessments and other
governmental charges (including mortgage recording taxes, documentary stamp
taxes and intangibles taxes) owing by it, except for such taxes (i) which are
not yet delinquent or (ii) that are being contested in good faith and by proper
proceedings, and against which adequate reserves are being maintained in
accordance with GAAP (if such reserves are required pursuant to GAAP). No Credit
Party is aware as of the Closing Date of any proposed tax assessments against
any of the Company and its Consolidated Subsidiaries, which could reasonably be
expected to have a Material Adverse Effect and against which adequate reserves
are not being maintained in accordance with GAAP (if such reserves are required
pursuant to GAAP).
1.13. MATERIAL SUBSIDIARIES.
Set forth on Schedule II is a complete and accurate list of all
Material Subsidiaries of the Company. Information on Schedule II includes
jurisdiction of incorporation, the number of shares of each class of Capital
Stock outstanding, the number and percentage of outstanding shares of each class
owned (directly or indirectly) by a Credit Party; and the number and effect, if
exercised, of all outstanding options, warrants, rights of conversion or
purchase and all other similar rights with respect thereto. The outstanding
Capital Stock of all such Material Subsidiaries is validly issued, fully paid
and non-assessable and is owned by each such Credit Party, directly or
indirectly, free and clear of all Liens (other than those arising under or
contemplated in connection with the Credit Documents). Other than as set forth
in Schedule II, no Material Subsidiary has outstanding any securities
convertible into or exchangeable for its Capital Stock nor does any such Person
have outstanding any rights to subscribe for or to purchase or any options for
the purchase of, or any agreements providing for the issuance
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(contingent or otherwise) of, or any calls, commitments or claims of any
character relating to its Capital Stock. Schedule II may be updated from time to
time by the Company by giving written notice thereof to the Agent.
1.14. ENVIRONMENTAL MATTERS.
(a) Except as would not have or be reasonably expected to have a
Material Adverse Effect:
(i) Each of the real properties owned by the Credit Parties
(the "Real Properties") and all operations at the Real Properties are
in compliance with all applicable Environmental Laws, and there is no
violation of any Environmental Law with respect to the Real Properties
or the businesses operated by the Company or any of its Material
Subsidiaries (the "Businesses"), and there are no conditions relating
to the Businesses or Real Properties that would be reasonably expected
to give rise to liability under any applicable Environmental Laws.
(ii) No Credit Party has received any written notice of, or
inquiry from any Governmental Authority regarding, any violation,
alleged violation, non-compliance, liability or potential liability
regarding Hazardous Materials or compliance with Environmental Laws
with regard to any of the Real Properties or the Businesses, nor does
any Credit Party have knowledge or reason to believe that any such
notice is being threatened.
(iii) Hazardous Materials have not been transported or
disposed of from the Real Properties, or generated, treated, stored or
disposed of at, on or under any of the Real Properties or any other
location, in each case by, or on behalf or with the permission of, the
Company or any of its Material Subsidiaries.
(iv) No judicial proceeding or governmental or administrative
action is pending or, to the knowledge of any Credit Party, threatened,
under any Environmental Law to which any Credit Party is or, to the
best knowledge of such Credit Party, will be named as a party, nor are
there any consent decrees or other decrees, consent orders,
administrative orders or other orders, or other administrative or
judicial requirements outstanding under any Environmental Law with
respect to the Company or any of its Material Subsidiaries, the Real
Properties or the Businesses.
(v) There has been no release or, to the best knowledge of any
Credit Party, threat of release of Hazardous Materials at or from the
Real Properties, or arising from or related to the operations
(including, without limitation, disposal) of the Company or any of its
Material Subsidiaries in connection with the Real Properties or
otherwise in connection with the Businesses, in violation of, or in
amounts or in a manner that could give rise to liability under,
Environmental Laws.
(vi) None of the Real Properties contains, or has previously
contained, any Hazardous Materials at, on or under the Real Properties
in amounts or concentrations that, if released, constitute or
constituted a violation of, or would give rise to liability under,
Environmental Laws.
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(vii) No Credit Party, nor any of its Subsidiaries, has
assumed any liability of any Person (other than another Credit Party,
or one of its Subsidiaries) under any Environmental Law.
(b) The Company has adopted procedures that are designed to (i) ensure
that each Credit Party, each of its operations and each of the properties owned
or leased by each Credit Party remains in compliance with applicable
Environmental Laws, to the extent that the failure to comply with such
Environmental Laws would have or would be reasonably expected to have a Material
Adverse Effect, and (ii) manage, to the same extent as and in accordance with
the practices of companies engaged in the same or a similar business, any
liabilities or potential liabilities that each Credit Party, any of its
operations and each of the properties owned or leased by each Credit Party may
have under applicable Environmental Laws.
1.15. SOLVENCY.
Each Credit Party is and, after consummation of the transactions
contemplated by this Agreement (including without limitation the Acquisition),
will be Solvent.
1.16. DISCLOSURE.
Neither this Agreement nor any financial statements delivered to the
Lenders nor any other document, certificate or statement furnished to the
Lenders by or on behalf of the Company or any of its Consolidated Subsidiaries
in connection with the transactions contemplated hereby contains any untrue
statement of a material fact or omits to state a material fact necessary in
order to make the statements contained therein or herein not misleading.
1.17. NO BURDENSOME RESTRICTIONS.
Neither the Company nor any of its Material Subsidiaries is a party to
any agreement or instrument or subject to any other obligation or any charter or
corporate restriction or any provision of any applicable law, rule or regulation
which, individually or in the aggregate, could have a Material Adverse Effect.
1.18. REPRESENTATIONS AND WARRANTIES FROM MERGER AGREEMENT.
As of the Closing Date, each of the representations and warranties made
in the Merger Agreement by each of the parties thereto is true and correct in
all material respects.
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1.19. YEAR 2000 COMPLIANCE.
Each of the Credit Parties has (i) initiated a review and assessment of
all areas within its and each of its Subsidiaries' businesses and operations
(including those affected by suppliers, vendors and customers) that could be
adversely affected by the "Year 2000 Problem" (that is, the risk that computer
applications may not be able to recognize and properly perform date-sensitive
functions after December 31, 1999), (ii) developed a plan and timeline for
addressing the Year 2000 Problem on a timely basis, and (iii) to date,
implemented that plan in accordance with that timetable. Based on the foregoing,
each Credit Party believes that all computer applications that are material to
its or any of its Subsidiaries' business and operations are reasonably expected
on a timely basis to be able to perform properly date-sensitive functions for
all dates before and after January 1, 2000 (that is, be "Year 2000 Compliant"),
except to the extent that a failure to do so could not reasonably be expected to
have a Material Adverse Effect.
SECTION 2. AMOUNT AND TERMS OF COMMITMENTS.
2.1. REVOLVING CREDIT COMMITMENTS.
(a) Subject to the terms and conditions hereof, each Lender severally
agrees, on the terms and conditions hereinafter set forth, to make revolving
credit loans ("Revolving Credit Loans") to a Borrower, in Dollars, from time to
time during the Commitment Period in an aggregate principal amount at any one
time outstanding not to exceed the amount of such Lender's Commitment Percentage
of NINE HUNDRED MILLION DOLLARS ($900,000,000) (as such amount may be reduced
pursuant to subsection 2.5 or subsection 2.6(b)(v)(E), the "Revolving Committed
Amount"). During the Commitment Period each Borrower may use the Revolving
Committed Amount by borrowing, prepaying the Revolving Credit Loans in whole or
in part, and reborrowing, all in accordance with the terms and conditions
hereof; provided that in no event shall the aggregate amount with respect to
principal of all Revolving Credit Loans plus all Swingline Loans plus all LOC
Obligations at any one time outstanding exceed the Revolving Committed Amount.
(b) The Revolving Credit Loans may from time to time be (i) Eurodollar
Loans, (ii) ABR Loans or (iii) a combination thereof, as determined by the
Company and notified to the Agent on behalf of the respective Borrower in
accordance with subsections 2.3 and 2.7, provided that no Revolving Credit Loan
shall be made as a Eurodollar Loan after the day that is one month prior to the
Termination Date.
2.2. REVOLVING CREDIT NOTES.
The Revolving Credit Loans made by each Lender shall be evidenced by
promissory notes of the Borrowers, each substantially in the form of Exhibit A,
with appropriate insertions as to payee (each, a "Revolving Credit Note"),
payable to the order of such Lender and each in a principal amount equal to the
aggregate unpaid principal amount of all Revolving Credit Loans made by such
Lender to such Borrower. Each Lender is hereby authorized to record the date,
Type and amount
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of each Revolving Credit Loan made by such Lender, each continuation thereof,
each conversion of all or a portion thereof to another Type, the date and amount
of each payment or prepayment of principal thereof and, in the case of
Eurodollar Loans, the length of each Interest Period with respect thereto, on a
schedule annexed to and constituting a part of its Revolving Credit Note and any
such recordation shall constitute prima facie evidence of the accuracy of the
information so recorded; provided, however, that the failure to make any such
recordation or an error in any such recordation shall not affect the liability
of a Borrower hereunder or under any Revolving Credit Note. Each Revolving
Credit Note shall (x) be dated the Closing Date, (y) be stated to mature on the
Termination Date and (z) provide for the payment of interest in accordance with
subsection 2.9.
2.3. PROCEDURE FOR REVOLVING CREDIT BORROWING.
(a) A Borrower may borrow under the Revolving Committed Amount during
the Commitment Period on any Business Day, provided that the Company shall give
the Agent irrevocable notice (which notice must be received by the Agent prior
to 11:00 A.M., Charlotte, North Carolina time, (a) three Business Days prior to
the requested Borrowing Date, if all or any part of the requested Revolving
Credit Loans are to be initially Eurodollar Loans or (b) one Business Day prior
to the requested Borrowing Date, otherwise), substantially in the form of
Exhibit F, on behalf of the respective Borrower, specifying (i) the amount to be
borrowed, (ii) the requested Borrowing Date, (iii) whether the borrowing is to
be of Eurodollar Loans, ABR Loans or a combination thereof, (iv) if the
borrowing is to be entirely or partly of Eurodollar Loans, the respective
amounts of each such Type of Loan and the respective lengths of the initial
Interest Periods therefor and (v) the applicable Borrower. Each borrowing under
the Revolving Committed Amount shall be in an amount equal to (x) in the case of
ABR Loans, $5,000,000 or whole multiples of $1,000,000 in excess thereof (or, if
the then available amount under the Revolving Committed Amount is less than
$5,000,000, such lesser amount) and (y) in the case of Eurodollar Loans,
$5,000,000 or whole multiples of $1,000,000 in excess thereof. Upon receipt of
any such notice from the Company, the Agent shall promptly notify each Lender
thereof. Each Lender will make the amount of its pro rata share of each
borrowing available to the Agent for the account of the applicable Borrower at
the office of the Agent specified in subsection 9.2 prior to 11:00 A.M.,
Charlotte, North Carolina time, on the Borrowing Date requested by the Company
in funds immediately available to the Agent. Such borrowing will then be made
available to the applicable Borrower by the Agent crediting the account of the
applicable Borrower on the books of such office with the aggregate of the
amounts made available to the Agent by the Lenders and in like funds as received
by the Agent.
2.4. FEES.
(a) Commitment Fee. The Company agrees to pay to the Agent for the
account of each Lender a commitment fee (the "Commitment Fee") for the period
from and including the first day of the Commitment Period to the Termination
Date, computed at the Applicable Margin for Commitment Fee on the average daily
unused amount of the Revolving Committed Amount during
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the period for which payment is made, payable quarterly in arrears on the last
day of each March, June, September and December and on the Termination Date or
such earlier date as the Revolving Committed Amount shall terminate as provided
herein, commencing on the first of such date to occur after the date hereof. For
purposes of computation of the Commitment Fee, Swingline Loans shall not be
counted toward or considered usage under the Revolving Committed Amount.
(b) Agent's Fees. The Company agrees to pay to the Agent, for its own
account, an annual administrative fee and such other fees, if any, referred to
in one or more letter agreements executed by the Agent and the Company in
connection with this Agreement.
(c) Letter of Credit Fees. In consideration of the issuance of Letters
of Credit hereunder, the Company promises to pay to the Agent for the account of
each Lender a fee (the "Letter of Credit Fee") on such Lender's Commitment
Percentage of the average daily maximum amount available to be drawn under each
such standby or trade Letter of Credit computed at a per annum rate for each day
from the date of issuance to the date of expiration equal to the Applicable
Margin for Eurodollar Loans. The Letter of Credit Fee will be payable quarterly
in arrears on the last Business Day of each March, June, September and December
for the immediately preceding quarter (or a portion thereof). In addition to the
Letter of Credit Fee, the Company promises to pay to the Issuing Lender for its
own account without sharing by the other Lenders (i) a fronting fee of .125% per
annum on the aggregate stated amount of each Letter of Credit for the stated
duration thereof, payable quarterly in arrears on the last Business Day of each
March, June, September and December for the immediately preceding quarter (or a
portion thereof) and (ii) the customary charges from time to time of the Issuing
Lender with respect to the amendment, transfer, administration, cancellation and
conversion of, and drawings under, such Letters of Credit.
2.5. TERMINATION OR REDUCTION OF REVOLVING COMMITTED AMOUNT.
The Company shall have the right, upon not less than five Business
Days' notice to the Agent, to terminate the Revolving Committed Amount or, from
time to time, to reduce the amount of the Revolving Committed Amount. Any such
reduction shall be in an amount equal to $5,000,000 (or, if the then available
amount of the Revolving Committed Amount is less than $5,000,000, such lesser
amount) or whole multiples of $1,000,000 in excess thereof and shall reduce
permanently the Revolving Committed Amount then in effect.
2.6. PREPAYMENTS.
(a) Optional Prepayments. A Borrower may on the last day of any
Interest Period with respect thereto, in the case of Eurodollar Loans, or at any
time and from time to time, in the case of ABR Loans, prepay the Revolving
Credit Loans or Term Loans, in whole or in part, without premium or penalty,
upon irrevocable notice to the Agent (which notice must be received by the Agent
prior to 11:00 A.M., Charlotte, North Carolina time, (i) four Business Days
prior to the prepayment date if all or any part of the Loans to be prepaid
consists of Eurodollar Loans and (ii) one Business Day prior to the prepayment
date, otherwise), specifying the date and amount of prepayment and whether the
prepayment is of Eurodollar Loans, ABR Loans or a combination
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thereof, and, if of a combination thereof, the amount allocable to each. Upon
receipt of any such notice the Agent shall promptly notify each Lender thereof.
If any such notice is given, the amount specified in such notice shall be due
and payable on the date specified therein, together with any amounts payable
pursuant to subsection 3.5. Partial prepayments of Loans shall be in an
aggregate principal amount of $5,000,000 or whole multiples of $1,000,000 in
excess thereof.
(b) Mandatory Prepayments.
(i) Commitment Limitations. If at any time, (A) the aggregate
principal amount of Revolving Credit Loans plus Swingline Loans plus
LOC obligations shall exceed the Revolving Committed Amount at such
time, (B) the aggregate amount of Swingline Loans shall exceed the
Swingline Committed Amount or (C) the aggregate amount of LOC
Obligations shall exceed the LOC Committed Amount, the Borrowers shall
immediately make payment on the Revolving Credit Loans, Swingline Loans
and/or to a cash collateral account in respect of the LOC Obligations,
in an amount sufficient to eliminate the excess.
(ii) Asset Dispositions. For so long as any Term Loan is
outstanding, within 180 days of any Asset Disposition in excess of
$35,000,000 (whether in a single transaction or in a series of related
transactions), the Borrowers shall prepay the Term Loans in an
aggregate amount equal to the Net Cash Proceeds of the related Asset
Disposition not applied (or caused to be applied) by the Company and
its Consolidated Subsidiaries during such 180 day period to make
Eligible Reinvestments (such prepayment to be applied as set forth in
clause (v) below).
(iii) Receivables Financings/Debt Issuances.
(A) Immediately upon receipt by the Company or any
Consolidated Subsidiary of proceeds from any Permitted
Receivables Financing, the Borrowers shall prepay the Loans in
an aggregate amount equal to 100% of the Net Cash Proceeds of
such Permitted Receivables Financing to the Lenders (such
prepayment to be applied as set forth in clause (v) below).
(B) For so long as any Term Loan is outstanding,
immediately upon receipt by the Company or any Consolidated
Subsidiary of proceeds from any Debt Issuance in excess of
$25,000,000 (whether in a single transaction or in a series of
related transactions), the Borrowers shall prepay the Term
Loans in an aggregate amount equal to 100% of the Net
Cash Proceeds of such Debt Issuance to the Lenders (such
prepayment to be applied as set forth in clause (v) below).
(iv) Issuances of Equity. For so long as any Term Loan is
outstanding, immediately upon receipt by the Company or any
Consolidated Subsidiary of proceeds from any Equity
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Issuance other than the Initial Hybrid Equity Transaction, the
Borrowers shall prepay the Term Loans in an aggregate amount equal to
100% of the Net Cash Proceeds of such Equity Issuance to the Lenders
(such prepayment to be applied as set forth in clause (v) below).
(v) Application of Mandatory Prepayments. All amounts required
to be paid pursuant to this subsection 2.6 shall be applied as follows:
(A) with respect to all amounts prepaid pursuant to subsection
2.6(b)(i)(A), to Revolving Credit Loans and/or Swingline Loans and
(after all such Loans have been repaid) to a cash collateral account in
respect of LOC Obligations, (B) with respect to all amounts prepaid
pursuant to subsection 2.6(b)(i)(B), to Swingline Loans, (C) with
respect to all amounts prepaid pursuant to subsection 2.6(b)(i)(C), to
a cash collateral account in respect of LOC Obligations, (D) with
respect to all amounts prepaid pursuant to subsections 2.6(b)(ii),
2.6(b)(iii)(B) and 2.6(b)(iv), first to reduce the Tranche B Term Loan,
second to reduce the Tranche C Term Loan and third to reduce the
Tranche A Term Loan (such reduction of the Tranche A Term Loan to be
pro rata across amortization payment maturities), and (E) with respect
to all amounts prepaid pursuant to subsection 2.6(b)(iii)(A), first to
Revolving Credit Loans and to permanently reduce the Revolving
Committed Amount, second to reduce the Tranche B Term Loan, third to
reduce the Tranche C Term Loan and fourth to reduce the Tranche A Term
Loan (such reduction of the Tranche A Term Loan to be pro rata across
amortization payment maturities). Within the parameters of the
applications set forth above, prepayments shall be applied first to ABR
Loans and then to Eurodollar Loans in direct order of Interest Period
maturities. All prepayments under this subsection 2.6(b) shall be
subject to subsection 3.5 and be accompanied by interest on the
principal amount prepaid through the date of prepayment.
2.7. CONVERSION AND CONTINUATION OPTIONS.
(a) A Borrower may elect from time to time to convert Eurodollar Loans
to ABR Loans by the Company giving the Agent at least three Business Days' prior
irrevocable notice of such election on behalf of the respective Borrower,
provided that any such conversion of Eurodollar Loans may only be made on the
last day of an Interest Period with respect thereto. A Borrower may elect from
time to time to convert Revolving Credit Loans or Term Loans that are ABR Loans
to Eurodollar Loans by the Company giving the Agent at least three Business
Days' prior irrevocable notice of such election on behalf of the respective
Borrower. Any such notice of conversion to Eurodollar Loans shall specify the
length of the initial Interest Period or Interest Periods therefor. Upon receipt
of any such notice the Agent shall promptly notify each Lender thereof. All or
any part of outstanding Eurodollar Loans and ABR Loans may be converted as
provided herein, provided that (i) no ABR Loan may be converted into a
Eurodollar Loan when any Event of Default has occurred and is continuing and
(ii) no ABR Loan may be converted into a Eurodollar Loan after the date that is
one month prior to the Termination Date.
(b) Any Eurodollar Loan may be continued as a Eurodollar Loan upon the
expiration of the then current Interest Period with respect thereto by the
Company giving notice to the Agent on behalf of the respective Borrower, in
accordance with the applicable provisions of the term "Interest
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Period" set forth in Section 7, of the length of the next Interest Period to be
applicable to such Loans, provided that no Eurodollar Loan may be continued as
such (i) when any Event of Default has occurred and is continuing or (ii) after
the date that is one month prior to the Termination Date and provided, further,
that if the Company shall fail to give any required notice as described above in
this paragraph or if such continuation is not permitted pursuant to the
preceding proviso, such Loans shall be automatically converted to ABR Loans on
the last day of such then expiring Interest Period.
2.8. MINIMUM AMOUNTS OF TRANCHES AND MAXIMUM NUMBER OF EURODOLLAR
LOANS.
All borrowings, conversions and continuations of Eurodollar Loans
hereunder and all selections of Interest Periods hereunder shall be in such
amounts and be made pursuant to such elections so that, after giving effect
thereto, the aggregate principal amount of the Eurodollar Loans comprising each
Eurodollar Tranche shall be equal to $5,000,000 or a whole multiple of
$1,000,000 in excess thereof. Notwithstanding anything in this Agreement to the
contrary, no more than ten (10) Eurodollar Loans shall be outstanding hereunder
at any time (it being understood that, for purposes hereof, Eurodollar Loans
with different Interest Periods shall be considered as separate Eurodollar
Loans, even if they begin on the same date, although borrowings, extensions and
conversions may, in accordance with the provisions hereof, be combined at the
end of existing Interest Periods to constitute a new Eurodollar Loan with a
single Interest Period).
2.9. INTEREST RATES AND PAYMENT DATES.
(a) Each Eurodollar Loan shall bear interest for each Interest Period
with respect thereto at a rate per annum equal to the Eurodollar Rate determined
for such Interest Period plus the Applicable Margin for Eurodollar Loans.
(b) Each ABR Loan shall bear interest at a rate per annum equal to the
ABR plus the Applicable Margin for ABR Loans.
(c) If all or a portion of (i) the principal amount of any Loan, (ii)
any interest payable thereon or (iii) any Commitment Fee or other amount payable
hereunder shall not be paid when due (whether at the stated maturity, by
acceleration or otherwise), such overdue amount shall bear interest at a rate
per annum which is (x) in the case of overdue principal, the rate that would
otherwise be applicable thereto pursuant to the foregoing provisions of this
subsection plus 2% or (y) in the case of any overdue interest, Commitment Fee or
other amount, the rate described in paragraph (b) of this subsection plus 2%, in
each case from the date of such non-payment until such amount is paid in full
(as well after as before judgment).
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(d) Interest on the Revolving Credit Loans and the Term Loans shall be
payable in arrears on each Interest Payment Date, provided that interest
accruing pursuant to paragraph (c) of this subsection shall be payable from time
to time on demand.
(e) The principal amount of, and any unpaid interest on, all Loans
shall be due and payable in full on the Termination Date, unless accelerated
sooner pursuant to Section 6.
(f) The Swingline Loans shall bear interest, and such interest shall be
payable, as specified in subsection 2.15(c).
2.10. COMPUTATION OF INTEREST AND FEES.
(a) Unless otherwise specifically provided herein, Commitment Fees and
interest shall be calculated on the basis of a 360-day year for the actual days
elapsed, except with respect to computation of interest on ABR Loans determined
by reference to the Prime Rate which shall be calculated based on a year of 365
or 366 days, as appropriate. The Agent shall as soon as practicable notify the
Company and the Lenders of each determination of a Eurodollar Rate. Any change
in the interest rate on a Loan resulting from a change in the ABR or the
Eurocurrency Reserve Requirements shall become effective as of the opening of
business on the day on which such change becomes effective. The Agent shall as
soon as practicable notify the Company and the Lenders of the effective date and
the amount of each such change in interest rate.
(b) Each determination of an interest rate by the Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Credit
Parties and the Lenders in the absence of manifest error. The Agent shall, at
the request of the Company, deliver to the Company a statement showing the
quotations used by the Agent in determining any interest rate pursuant to
subsection 2.9(a).
2.11. PRO RATA TREATMENT AND PAYMENTS.
(a) Each borrowing of Revolving Credit Loans or Term Loans by a
Borrower from the Lenders hereunder, each payment by the Company on account of
the Commitment Fee and the Letter of Credit Fee hereunder and any reduction of
the Commitments of the Lenders shall be made pro rata according to the
respective Commitment Percentages of the Lenders. Each payment (including each
prepayment) by a Borrower or another Credit Party on account of principal of and
interest on the Revolving Credit Loans or Term Loans shall be made pro rata
according to the respective amounts of principal and interest then due and owing
to the respective Lenders. All payments (including prepayments) to be made by a
Borrower or another Credit Party hereunder and under the Notes, whether on
account of principal, interest, fees or otherwise, shall be made without set off
or counterclaim and shall be made prior to 11:00 A.M., Charlotte, North Carolina
time, on the due date thereof to the Agent, for the account of the Lenders, at
the Agent's office specified in subsection 9.2, in Dollars and in immediately
available funds. The Agent shall distribute such payments to the Lenders
promptly upon receipt in like funds as received. If any payment hereunder (other
than
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payments on the Eurodollar Loans) becomes due and payable on a day other than a
Business Day, such payment shall be extended to the next succeeding Business
Day, and, with respect to payments of principal, interest thereon shall be
payable at the then applicable rate during such extension. If any payment on a
Eurodollar Loan becomes due and payable on a day other than a Business Day, the
maturity thereof shall be extended to the next succeeding Business Day unless
the result of such extension would be to extend such payment into another
calendar month, in which event such payment shall be made on the immediately
preceding Business Day.
(b) Unless the Agent shall have been notified in writing by any Lender
prior to a borrowing that such Lender will not make the amount that would
constitute its portion of such borrowing available to the Agent, the Agent may
assume that such Lender is making such amount available to the Agent, and the
Agent may, in reliance upon such assumption, make available to the respective
Borrower a corresponding amount. If the Agent, in such circumstances, makes
available to such Borrower such corresponding amount and such Lender does not
make available such ratable portion of such borrowing to the Agent by the
required time on the Borrowing Date therefor, such Lender shall pay to the
Agent, on demand, its portion of such borrowing with interest thereon at a rate
equal to the Federal Funds Effective Rate (as defined in the definition of
"ABR") for the period until such Lender makes such amount immediately available
to the Agent. A certificate of the Agent submitted to any Lender with respect to
any amounts owing under this subsection shall be conclusive in the absence of
manifest error. If such Lender's portion of such borrowing is not made available
to the Agent by such Lender within three Business Days of such Borrowing Date,
the Agent, having made available to the respective Borrower a corresponding
amount, shall also be entitled to recover such corresponding amount with
interest thereon at the rate per annum applicable to ABR Loans hereunder, on
demand, from such Borrower. Nothing contained in this subsection 2.11(b) shall
relieve any Lender which has failed to make available its portion of any
borrowing hereunder from its obligation to do so in accordance with the terms
hereof.
2.12. TAXES.
(a) All payments made by a Credit Party under this Agreement and the
Notes shall be made free and clear of, and without deduction or withholding for
or on account of, any present or future income, stamp or other taxes, levies,
imposts, duties, charges, fees, deductions or withholdings, now or hereafter
imposed, levied, collected, withheld or assessed by any Governmental Authority,
excluding net income taxes and franchise taxes (imposed in lieu of net income
taxes) imposed on the Agent or any Lender as a result of a present or former
connection between the Agent or such Lender and the jurisdiction of the
Governmental Authority imposing such tax or any political subdivision or taxing
authority thereof or therein (other than to the extent any such connection arose
from the Agent or such Lender having executed, delivered or performed its
obligations or received a payment under, or enforced, this Agreement or the
Notes). If any such non-excluded taxes, levies, imposts, duties, charges, fees,
deductions or withholdings ("Non-Excluded Taxes") are required to be withheld
from any amounts payable to the Agent or any Lender hereunder
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or under the Notes, the amounts so payable to the Agent or such Lender shall be
increased to the extent necessary to yield to the Agent or such Lender (after
payment of all Non-Excluded Taxes) interest or any such other amounts payable
hereunder at the rates or in the amounts specified in this Agreement and the
Notes; provided, however, that no Credit Party shall be required to increase any
such amounts payable to any Lender that is not organized under the laws of the
United States of America or a state thereof if such Lender fails to comply with
the requirements of paragraph (b) of this subsection. Whenever any Non-Excluded
Taxes are payable by a Credit Party, as promptly as possible thereafter such
Credit Party shall send to the Agent for its own account or for the account of
such Lender, as the case may be, a certified copy of an original official
receipt received by such Credit Party showing payment thereof. If a Credit Party
fails to pay any Non-Excluded Taxes when due to the appropriate taxing authority
or fails to remit to the Agent the required receipts or other required
documentary evidence, such Credit Party shall indemnify the Agent and the
Lenders for any incremental taxes, interest or penalties that may become payable
by the Agent or any Lender as a result of any such failure. The agreements in
this subsection shall survive the termination of this Agreement and the payment
of the Notes and all other amounts payable hereunder.
(b) Each Lender that is not incorporated under the laws of the United
States of America or a state thereof shall:
(i) deliver to the Company and the Agent (A) two duly
completed copies of United States Internal Revenue Service Form 1001 or
4224, or successor applicable form, as the case may be, and (B) an
Internal Revenue Service Form W-8 or W-9 or successor applicable form,
as the case may be;
(ii) deliver to the Company and the Agent two further copies
of any such form or certification on or before the date that any such
form or certification expires or becomes obsolete and after the
occurrence of any event requiring a change in the most recent form
previously delivered by it to the Company;
(iii) obtain such extensions of time for filing and complete
such forms or certifications as may reasonably be requested by the
Company or the Agent; and
(iv) otherwise cooperate, to the extent not detrimental to its
own interests, with the Company in reducing or eliminating withholding
or deducting with respect to any Non-Excluded Taxes;
unless in any such case an event (including, without limitation, any change in
treaty, law or regulation) has occurred prior to the date on which any such
delivery would otherwise be required which renders all such forms inapplicable
or which would prevent such Lender from duly completing and delivering any such
form with respect to it and such Lender so advises the Company and the Agent.
Such Lender shall certify (i) in the case of a Form 4224, that the payments it
receives from the Company under this Agreement are effectively connected with a
trade or business in the United States and, in the case of a Form 1001, that it
is entitled to receive payments under this
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Agreement without deduction or withholding of any United States federal income
taxes and (ii) in the case of a Form W-8 or W-9, that it is entitled to an
exemption from United States backup withholding tax. Each Person that shall
become a Lender or a Participant pursuant to subsection 9.6 shall, upon the
effectiveness of the related transfer, be required to provide all of the forms
and statements required pursuant to this subsection, provided that in the case
of a Participant such Participant shall furnish all such required forms and
statements to the Lender from which the related participation shall have been
purchased.
(c) No Credit Party shall be required to indemnify any non-U.S. Lender
or to pay any additional amounts to any non-U.S. lender in respect of United
States Federal withholding tax pursuant to paragraph (a) or (b) above to the
extent that the obligation to withhold amounts with respect to United States
Federal withholding tax existed on the date such non-U.S. Lender became a party
to this Agreement and such Credit Party was on such date a party to this
Agreement.
2.13 DESIGNATED BORROWERS.
(a) Addition of Designated Borrowers. BetzDearborn Canada, Inc., an
Ontario corporation and a wholly-owned Subsidiary of the Company, shall be a
Designated Borrower commencing on the Closing Date. The Company may request
designation of any of its other wholly-owned Material Subsidiaries (an
"Applicant Borrower") as a Designated Borrower hereunder by delivery of such a
request to the Agent together with an executed copy of a Borrower Joinder
Agreement in substantially the form attached as Exhibit D. The Agent will
promptly notify the Lenders of any such request together with a copy of the
Borrower Joinder Agreement executed by the Applicant Borrower. The joinder of
each Applicant Borrower as a Designated Borrower will be subject to delivery of
executed promissory notes, if any, required in connection therewith, and
supporting resolutions, articles of incorporation, incumbency certificates,
opinions of counsel of the type required pursuant to subsection 4.1 and such
other items as the Agent and the Required Lenders may reasonably request. Any
such addition of a Designated Borrower shall be effective five Business Days
after receipt by the Agent of the items required by the Agent and the Required
Lenders in connection therewith. Such Designated Borrower shall thereupon become
a party thereto and a Designated Borrower hereunder and shall be (i) entitled to
all rights and benefits of a Borrower hereunder and under each instrument
executed pursuant hereto and (ii) subject to all obligations of a Borrower
hereunder and thereunder.
(b) Removal of a Borrower. The Company may request that any of its
Subsidiaries which is a Borrower hereunder cease to be a Borrower by delivering
to the Agent (which shall promptly deliver copies thereof to each Lender) a
written notice to such effect. Such Borrower shall cease to be a Borrower
hereunder on the later to occur of (i) the date the Agent receives such request
and (ii) the date such Borrower has paid all of its Loans and all accrued and
unpaid interest, fees and other obligations hereunder or in connection herewith.
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2.14. SEVERAL LIABILITY OF BORROWERS.
The obligations of the Borrowers, as Borrowers, are several and not
joint obligations of each of the Borrowers.
2.15 SWINGLINE LOAN SUBFACILITY.
(a) Swingline Commitment. Subject to the terms and conditions hereof
and in reliance upon the representations and warranties set forth herein, the
Swingline Lender, in its individual capacity, agrees to make certain revolving
credit loans requested by the Company in Dollars to the Company (each a
"Swingline Loan" and, collectively, the "Swingline Loans") from time to time
during the Commitment Period for the purposes hereinafter set forth; provided,
however, (i) the aggregate principal amount of Swingline Loans outstanding at
any time shall not exceed FIFTY MILLION DOLLARS ($50,000,000) (the "Swingline
Committed Amount"), and (ii) the aggregate principal amount of outstanding
Revolving Credit Loans plus the aggregate principal amount of outstanding
Swingline Loans plus all LOC Obligations shall not exceed the Revolving
Committed Amount. Swingline Loans hereunder shall be made as ABR Loans in
accordance with the provisions of this subsection 2.15, and may be repaid and
reborrowed in accordance with the provisions hereof.
(b) Swingline Loan Advances.
(i) Notices; Disbursement. Whenever the Company desires a
Swingline Loan advance hereunder it shall give written notice (or
telephonic notice promptly confirmed in writing) to the Swingline
Lender not later than 1:00 P.M. (Charlotte, North Carolina time) on the
Business Day of the requested Swingline Loan advance. Each such notice
shall be irrevocable and shall specify (A) that a Swingline Loan
advance is requested, (B) the date of the requested Swingline Loan
advance (which shall be a Business Day) and (C) the principal amount of
the Swingline Loan advance requested. Each Swingline Loan shall be made
as an ABR Loan and shall have such maturity date as the Swingline
Lender and the Company shall agree upon receipt by the Swingline Lender
of any such notice from the Company. The Swingline Lender shall
initiate the transfer of funds representing the Swingline Loan advance
to the Company by 3:00 P.M. (Charlotte, North Carolina time) on the
Business Day of the requested borrowing.
(ii) Minimum Amounts. Each Swingline Loan advance shall be in
a minimum principal amount of $1,000,000 and in integral multiples of
$500,000 in excess thereof (or the remaining amount of the Swingline
Committed Amount, if less).
(iii) Repayment of Swingline Loans. The principal amount of
all Swingline Loans shall be due and payable on the earlier of (A) the
maturity date agreed to by the Swingline Lender and the Company with
respect to such Loan (which maturity date shall not be a date more than
fourteen (14) Business Days from the date of advance thereof) or (B)
the Termination Date. The Swingline Lender may, at any time, in its
sole discretion, by written notice to the Company and the Lenders,
demand repayment of its Swingline Loans advanced in accordance with the
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terms hereof by way of a Revolving Credit Loan advance on the Business
Day following the date of such notice, in which case the Company shall
be deemed to have requested a Revolving Credit Loan advance comprised
solely of ABR Loans in the amount of such Swingline Loans; provided,
however, that any such demand shall be deemed to have been given one
Business Day prior to the Termination Date and on the date of the
occurrence of any Event of Default described in subsection 6(f) or
subsection 6(g) and upon acceleration of the indebtedness hereunder and
the exercise of remedies in accordance with the provisions of Section
6. Each Lender hereby irrevocably agrees to make its pro rata share of
each such Revolving Credit Loan in the amount, in the manner and on the
date specified in the preceding sentence notwithstanding (I) the amount
of such borrowing may not comply with the minimum amount for advances
of Revolving Credit Loans otherwise required hereunder, (II) whether
any conditions specified in subsection 4.2 are then satisfied, (III)
whether a Default or an Event of Default then exists, (IV) failure of
any such request or deemed request for Revolving Credit Loan to be made
by the time otherwise required hereunder, (V) whether the date of such
borrowing is a date on which Revolving Credit Loans are otherwise
permitted to be made hereunder or (VI) any termination of the
Commitments relating thereto immediately prior to or contemporaneously
with such borrowing. In the event that any Revolving Credit Loan cannot
for any reason be made on the date otherwise required above (including,
without limitation, as a result of the commencement of a proceeding
under the Federal Bankruptcy Code (as now or hereafter in effect) with
respect to the Company or any other Borrower), then each Lender hereby
agrees that it shall forthwith purchase (as of the date such borrowing
would otherwise have occurred, but adjusted for any payments received
from the Company on or after such date and prior to such purchase) from
the Swingline Lender such Participation Interest in the outstanding
Swingline Loans as shall be necessary to cause each such Lender to
share in such Swingline Loans ratably based upon its respective
Commitment Percentage (determined before giving effect to any
termination of the Commitments pursuant to subsection 2.5), provided
that (A) all interest payable on the Swingline Loans shall be for the
account of the Swingline Lender until the date as of which the
respective Participation Interest is purchased and (B) at the time any
purchase of Participation Interests pursuant to this sentence is
actually made, the purchasing Lender shall be required to pay to the
Swingline Lender, to the extent not paid to the Swingline Lender by the
Company in accordance with the terms of subsection (c)(ii) below,
interest on the principal amount of Participation Interests purchased
for each day from and including the day upon which such purchase of
Participation Interests would otherwise have occurred to but excluding
the date of actual payment for the purchase of such Participation
Interests, at the rate equal to the Federal Funds Effective Rate (as
defined in the definition of "ABR").
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(c) Interest on Swingline Loans.
(i) Subject to the provisions of subsection 2.9(c)(ii), each
Swingline Loan shall bear interest at a per annum rate (computed on the
basis of the actual number of days elapsed over a year of 360 or
365/366 days, as appropriate in accordance with the provisions of
subsection 2.10(a)) equal to the ABR plus the Applicable Margin for ABR
Loans.
(ii) Payment of Interest. Interest on Swingline Loans shall be
payable in arrears on each applicable Interest Payment Date (or at such
other times as may be specified herein), unless accelerated sooner
pursuant to Section 6.
(d) Swingline Note. The Swingline Loans shall be evidenced by a duly
executed promissory note of the Company to the Swingline Lender in an original
principal amount equal to the Swingline Committed Amount substantially in the
form of Exhibit B.
2.16 LETTER OF CREDIT SUBFACILITY.
(a) Issuance. The Issuing Lender has heretofore issued the Existing
Letters of Credit. Subject to the terms and conditions hereof and of the LOC
Documents, if any, and any other terms and conditions which the Issuing Lender
may reasonably require and in reliance upon the representations and warranties
set forth herein, the Issuing Lender agrees to issue, and each Lender severally
agrees to participate in the issuance by the Issuing Lender of, standby and
trade Letters of Credit in Dollars from time to time during the Commitment
Period as the Company may request, in a form acceptable to the Issuing Lender;
provided, however, that (i) the LOC Obligations outstanding shall not at any
time exceed ONE HUNDRED MILLION DOLLARS ($100,000,000) (the "LOC Committed
Amount") and (ii) the sum of the aggregate outstanding principal amount of
Revolving Credit Loans plus Swingline Loans plus LOC Obligations shall not at
any time exceed the Revolving Committed Amount. No Letter of Credit shall (x)
have an original expiry date more than one year from the date of issuance (other
than an Existing Letter of Credit) or (y) as originally issued or as extended,
have an expiry date extending beyond the Termination Date. Each Letter of Credit
shall comply with the related LOC Documents. The issuance and expiry dates of
each Letter of Credit shall be a Business Day.
(b) Notice and Reports. The request for the issuance of a Letter of
Credit shall be submitted by the Company to the Issuing Lender at least three
(3) Business Days prior to the requested date of issuance. The Issuing Lender
will, at least quarterly and more frequently upon request, disseminate to each
of the Lenders a detailed report specifying the Letters of Credit which are then
issued and outstanding and any activity with respect thereto which may have
occurred since the date of the prior report, and including therein, among other
things, the beneficiary, the face amount and the expiry date, as well as any
payment or expirations which may have occurred.
(c) Participation. Each Lender, upon issuance of a Letter of Credit,
shall be deemed to have purchased without recourse a Participation Interest from
the Issuing Lender in such Letter of Credit and the obligations arising
thereunder and any collateral relating thereto, in each case in an amount equal
to
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its pro rata share of the obligations under such Letter of Credit (based on
the respective Commitment Percentages of the Lenders) and shall absolutely,
unconditionally and irrevocably assume and be obligated to pay to the Issuing
Lender and discharge when due, its pro rata share of the obligations arising
under such Letter of Credit in accordance with subsection 2.16(d) below. Without
limiting the scope and nature of each Lender's Participation Interest in any
Letter of Credit, to the extent that the Issuing Lender has not been reimbursed
as required hereunder or under any such Letter of Credit, each such Lender shall
pay to the Issuing Lender its pro rata share of such unreimbursed drawing in
same day funds on the day of notification by the Issuing Lender of an
unreimbursed drawing pursuant to the provisions of subsection (d) below. The
obligation of each Lender to so reimburse the Issuing Lender shall be absolute
and unconditional and shall not be affected by the occurrence of a Default, an
Event of Default or any other occurrence or event. Any such reimbursement shall
not relieve or otherwise impair the obligation of the Company to reimburse the
Issuing Lender under any Letter of Credit, together with interest as hereinafter
provided.
(d) Reimbursement. In the event of any drawing under any Letter of
Credit, the Issuing Lender will promptly notify the Company. Unless the Company
shall immediately notify the Issuing Lender that the Company intends to
otherwise reimburse the Issuing Lender for such drawing, the Company shall be
deemed to have requested that the Lenders make a Revolving Credit Loan in the
amount of the drawing as provided in subsection (e) below on the related Letter
of Credit, the proceeds of which will be used to satisfy the related
reimbursement obligations. The Company promises to reimburse the Issuing Lender
on the day of drawing under any Letter of Credit (either with the proceeds of a
Revolving Credit Loan obtained hereunder or otherwise) in same day funds. If the
Company shall fail to reimburse the Issuing Lender as provided hereinabove, the
unreimbursed amount of such drawing shall bear interest at a per annum rate
equal to the ABR plus the Applicable Margin for ABR Loans plus 2%. The Company's
reimbursement obligations hereunder shall be absolute and unconditional under
all circumstances irrespective of any rights of setoff, counterclaim or defense
to payment the Company may claim or have against the Issuing Lender, the Agent,
the Lenders, the beneficiary of the Letter of Credit drawn upon or any other
Person, including without limitation any defense based on any failure of the
Company or any of its Consolidated Subsidiaries to receive consideration or the
legality, validity, regularity or unenforceability of the Letter of Credit. The
Issuing Lender will promptly notify the other Lenders of the amount of any
unreimbursed drawing and each Lender shall promptly pay to the Agent for the
account of the Issuing Lender in Dollars and in immediately available funds, the
amount of such Lender's pro rata share of such unreimbursed drawing. Such
payment shall be made on the day such notice is received by such Lender from the
Issuing Lender if such notice is received at or before 2:00 P.M. (Charlotte,
North Carolina time) otherwise such payment shall be made at or before 12:00
Noon (Charlotte, North Carolina time) on the Business Day next succeeding the
day such notice is received. If such Lender does not pay such amount to the
Issuing Lender in full upon such request, such Lender shall, on demand, pay to
the Agent for the account of the Issuing Lender interest on the unpaid amount
during the period from the date of such drawing until such Lender pays such
amount to the Issuing Lender in full at a rate per annum equal to, if paid
within two (2) Business Days of the date that such Lender is required to make
payments of such amount pursuant to the preceding sentence, the Federal
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Funds Effective Rate (as defined in the definition of "ABR") and thereafter at a
rate equal to the ABR. Each Lender's obligation to make such payment to the
Issuing Lender, and the right of the Issuing Lender to receive the same, shall
be absolute and unconditional, shall not be affected by any circumstance
whatsoever and without regard to the termination of this Agreement or the
Commitments hereunder, the existence of a Default or Event of Default or the
acceleration of the obligations of the Company hereunder and shall be made
without any offset, abatement, withholding or reduction whatsoever.
Simultaneously with the making of each such payment by a Lender to the Issuing
Lender, such Lender shall, automatically and without any further action on the
part of the Issuing Lender or such Lender, acquire a Participation Interest in
an amount equal to such payment (excluding the portion of such payment
constituting interest owing to the Issuing Lender) in the related unreimbursed
drawing portion of the LOC Obligation and in the interest thereon and in the
related LOC Documents, and shall have a claim against the Company with respect
thereto.
(e) Repayment with Revolving Credit Loans. On any day on which the
Company shall have requested, or been deemed to have requested, a Revolving
Credit Loan advance to reimburse a drawing under a Letter of Credit, the Agent
shall give notice to the Lenders that a Revolving Credit Loan has been requested
or deemed requested by the Company to be made in connection with a drawing under
a Letter of Credit, in which case a Revolving Credit Loan advance comprised of
ABR Loans (or Eurodollar Loans to the extent the Company has complied with the
procedures of subsection 2.3(a) with respect thereto) shall be immediately made
to the Company by all Lenders (notwithstanding any termination of the
Commitments pursuant to Section 6) pro rata based on the respective Commitment
Percentages of the Lenders (determined before giving effect to any termination
of the Commitments pursuant to Section 6) and the proceeds thereof shall be paid
directly to the Issuing Lender for application to the respective LOC
Obligations. Each such Lender hereby irrevocably agrees to make its pro rata
share of each such Revolving Credit Loan immediately upon any such request or
deemed request in the amount, in the manner and on the date specified in the
preceding sentence notwithstanding (i) the amount of such borrowing may not
comply with the minimum amount for advances of Revolving Credit Loans otherwise
required hereunder, (ii) whether any conditions specified in Section 4.2 are
then satisfied, (iii) whether a Default or an Event of Default then exists, (iv)
failure for any such request or deemed request for Revolving Credit Loan to be
made by the time otherwise required hereunder, (v) whether the date of such
borrowing is a date on which Revolving Credit Loans are otherwise permitted to
be made hereunder or (vi) any termination of the Commitments relating thereto
immediately prior to or contemporaneously with such borrowing. In the event that
any Revolving Credit Loan cannot for any reason be made on the date otherwise
required above (including, without limitation, as a result of the commencement
of a proceeding under the Bankruptcy Code with respect to the Company or any of
its Consolidated Subsidiaries), then each such Lender hereby agrees that it
shall forthwith purchase (as of the date such borrowing would otherwise have
occurred, but adjusted for any payments received from the Company on or after
such date and prior to such purchase) from the Issuing Lender such Participation
Interests in the outstanding LOC Obligations as shall be necessary to cause each
such Lender to share in such LOC Obligations ratably (based upon the respective
Commitment Percentages of the Lenders (determined before giving effect to any
termination of the Commitments pursuant to Section 6)), provided that at the
time any purchase of Participation Interests pursuant to this sentence is
actually made, the purchasing Lender shall be required to pay to the Issuing
Lender, to the extent not paid to the Issuer by the Company in accordance with
the terms of subsection (d) above, interest on the principal amount of
Participation Interests purchased for
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each day from and including the day upon which such borrowing would otherwise
have occurred to but excluding the date of payment for such Participation
Interests, at the rate equal to, if paid within two (2) Business Days of the
date of the Revolving Credit Loan advance, the Federal Funds Effective Rate (as
defined in the definition of "ABR"), and thereafter at a rate equal to the ABR.
(f) Designation of Consolidated Subsidiaries as Account Parties.
Notwithstanding anything to the contrary set forth in this Agreement, including
without limitation subsection 2.16(a), a Letter of Credit issued hereunder may
contain a statement to the effect that such Letter of Credit is issued for the
account of a Consolidated Subsidiary of the Company, provided that
notwithstanding such statement, the Company shall be the actual account party
for all purposes of this Agreement for such Letter of Credit and such statement
shall not affect the Company's reimbursement obligations hereunder with respect
to such Letter of Credit.
(g) Renewal, Extension. The renewal or extension of any Letter of
Credit shall, for purposes hereof, be treated in all respects the same as the
issuance of a new Letter of Credit hereunder.
(h) Uniform Customs and Practices. The Issuing Lender may have the
Letters of Credit be subject to The Uniform Customs and Practice for Documentary
Credits, as published as of the date of issue by the International Chamber of
Commerce (the "UCP"), in which case the UCP may be incorporated therein and
deemed in all respects to be a part thereof.
(i) Indemnification; Nature of Issuing Lender's Duties.
(i) In addition to its other obligations under this subsection
2.16, the Company hereby agrees to pay, and protect, indemnify and save
each Lender harmless from and against, any and all claims, demands,
liabilities, damages, losses, costs, charges and expenses (including
reasonable attorneys' fees and expenses) that such Lender may incur or
be subject to as a consequence, direct or indirect, of (A) the issuance
of any Letter of Credit or (B) the failure of such Lender or the
Issuing Lender to honor a drawing under a Letter of Credit as a result
of any act or omission, whether rightful or wrongful, of any present or
future de jure or de facto government or Governmental Authority (all
such acts or omissions, herein called "Government Acts").
(ii) As between the Company and the Lenders (including the
Issuing Lender), the Company shall assume all risks of the acts,
omissions or misuse of any Letter of Credit by the beneficiary thereof.
No Lender (including the Issuing Lender) shall be responsible: (A) for
the form, validity, sufficiency, accuracy, genuineness or legal effect
of any document submitted by any party in connection with the
application for and issuance of any Letter of Credit, even if it should
in fact prove to be in any or all respects invalid, insufficient,
inaccurate, fraudulent or forged; (B) for the validity or sufficiency
of any instrument transferring or assigning or purporting
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to transfer or assign any Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, that may prove to
be invalid or ineffective for any reason; (C) for errors, omissions,
interruptions or delays in transmission or delivery of any messages, by
mail, cable, telegraph, telex or otherwise, whether or not they be in
cipher; (D) for any loss or delay in the transmission or otherwise of
any document required in order to make a drawing under a Letter of
Credit or of the proceeds thereof; and (E) for any consequences arising
from causes beyond the control of such Lender, including, without
limitation, any Government Acts. None of the above shall affect,
impair, or prevent the vesting of the Issuing Lender's rights or powers
hereunder.
(iii) In furtherance and extension and not in limitation of
the specific provisions hereinabove set forth, any action taken or
omitted by any Lender (including the Issuing Lender), under or in
connection with any Letter of Credit or the related certificates, if
taken or omitted in good faith, shall not put such Lender under any
resulting liability to the Company. It is the intention of the parties
that this Agreement shall be construed and applied to protect and
indemnify each Lender (including the Issuing Lender) against any and
all risks involved in the issuance of the Letters of Credit, all of
which risks are hereby assumed by the Company (on behalf of itself and
each of its Consolidated Subsidiaries), including, without limitation,
any and all Government Acts. No Lender (including the Issuing Lender)
shall, in any way, be liable for any failure by such Lender or anyone
else to pay any drawing under any Letter of Credit as a result of any
Government Acts or any other cause beyond the control of such Lender.
(iv) Nothing in this subsection (i) is intended to limit the
reimbursement obligations of the Company contained in subsection (d)
above. The obligations of the Company under this subsection (i) shall
survive the termination of this Agreement. No act or omission of any
current or prior beneficiary of a Letter of Credit shall in any way
affect or impair the rights of the Lenders (including the Issuing
Lender) to enforce any right, power or benefit under this Agreement.
(v) Notwithstanding anything to the contrary contained in this
subsection (i), the Company shall have no obligation to indemnify any
Lender (including the Issuing Lender) in respect of any liability
incurred by such Lender (A) to the extent such liability arose out of
the gross negligence or willful misconduct of such Lender, as
determined by a court of competent jurisdiction, or (B) caused by such
Lender's failure to pay under any Letter of Credit after presentation
to it of a request strictly complying with the terms and conditions of
such Letter of Credit, as determined by a court of competent
jurisdiction, unless such payment is prohibited by any law, regulation,
court order or decree.
(j) Responsibility of Issuing Lender. It is expressly understood and
agreed that the obligations of the Issuing Lender hereunder to the Lenders are
only those expressly set forth in this Agreement and that the Issuing Lender
shall be entitled to assume that the conditions precedent set forth in Section
4.2 have been satisfied unless it shall have acquired actual knowledge that any
such condition precedent has not been satisfied; provided, however, that nothing
set forth in this subsection 2.16 shall be deemed to prejudice the right of any
Lender to recover from the Issuing Lender any amounts made
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available by such Lender to the Issuing Lender pursuant to this subsection 2.16
in the event that it is determined by a court of competent jurisdiction that the
payment with respect to a Letter of Credit constituted gross negligence or
willful misconduct on the part of the Issuing Lender.
(k) Conflict with LOC Documents. In the event of any conflict between
this Agreement and any LOC Document (including any letter of credit
application), this Agreement shall control.
2.17 TERM LOAN TRANCHES.
(a) Term Loan Commitments. Subject to the terms and conditions hereof
and in reliance upon the representations and warranties set forth herein, each
Lender severally agrees to make available to the Company in Dollars on the
Closing Date such Lender's Commitment Percentage of each of the following term
loan tranches (each a "Term Loan Tranche"):
(i) a term loan in the aggregate principal amount of ONE
BILLION TWO HUNDRED FIFTY MILLION DOLLARS ($1,250,000,000) (the
"Tranche A Term Loan");
(ii) a term loan in the aggregate principal amount of FIVE
HUNDRED MILLION DOLLARS ($500,000,000) (the "Tranche B Term Loan"); and
(iii) a term loan in the aggregate principal amount of ONE
BILLION DOLLARS ($1,000,000,000) (the "Tranche C Term Loan").
Each Term Loan Tranche may consist of ABR Loans or Eurodollar Loans, or a
combination thereof, as the Company may request. Amounts repaid on a Term Loan
Tranche may not be reborrowed.
(b) Borrowing Procedures. The Company shall submit an appropriate
notice of borrowing, substantially in the form of Exhibit G, to the Agent not
later than 11:00 A.M. (Charlotte, North Carolina time) on the Closing Date, with
respect to the portion of each Term Loan Tranche initially consisting of an ABR
Loan, or on the third Business Day prior to the Closing Date, with respect to
the portion of each Term Loan Tranche initially consisting of one or more
Eurodollar Loans, which notice of borrowing shall be irrevocable and shall
specify (i) that the funding of a Term Loan Tranche is requested and (ii)
whether the funding of such Term Loan Tranche shall be comprised of ABR Loans,
Eurodollar Loans or a combination thereof, and if Eurodollar Loans are
requested, the Interest Period(s) therefor. If the Company shall fail to deliver
such notice of borrowing to the Agent by 11:00 A.M. (Charlotte, North Carolina
time) on the third Business Day prior to the Closing Date, then the full amount
of each Term Loan Tranche shall be disbursed on the Closing Date as an ABR Loan.
Each Lender shall make its Commitment Percentage of each Term Loan Tranche
available to the Agent for the account of the Company at the office of the Agent
specified in subsection 2.3(b), or at such other office as the Agent may
designate in writing, by 1:00 P.M. (Charlotte, North Carolina time) on the
Closing Date in Dollars
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and in funds immediately available to the Agent. Each Term Loan Tranche will
then be made available to the Company by the Agent crediting the account of the
Company on the books of such office with the aggregate of the amounts made
available to the Agent by the Lenders and in like funds as received by the
Agent.
(c) Minimum Amounts. Each Eurodollar Loan or ABR Loan that is part of a
Term Loan Tranche shall be in an aggregate principal amount that is not less
than $5,000,000 and integral multiples of $1,000,000 (or the then remaining
principal balance of a Term Loan Tranche, if less).
(d) Repayment of Term Loan Tranches. The principal amount of each Term
Loan Tranche shall be repaid on the date(s) set forth below, unless accelerated
sooner pursuant to Section 6:
(i) The principal amount of the Tranche A Term Loan shall be
repaid in quarterly payments on the dates set forth below:
Principle Amortization Tranche A Term Loan
Payment Dates Amortization Payment
------------- --------------------
March 31, 2000 $50,000,000
June 30, 2000 $50,000,000
September 30, 2000 $50,000,000
December 31, 2000 $50,000,000
March 31, 2001 $75,000,000
June 30, 2001 $75,000,000
September 30, 2001 $75,000,000
December 31, 2001 $75,000,000
March 31, 2002 $87,500,000
June 30, 2002 $87,500,000
September 30, 2002 $87,500,000
December 31, 2002 $87,500,000
March 31, 2003 $100,000,000
June 30, 2003 $100,000,000
September 30, 2003 $100,000,000
October 15, 2003 $100,000,000
(ii) The principal amount of the Tranche B Term Loan shall be
repaid in full on December 31, 1999.
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(iii) The principal amount of the Tranche C Term Loan shall be
repaid in full on December 31, 2000.
(e) Interest. Each Term Loan Tranche shall bear interest, and such
interest shall be payable, as specified in subsection 2.9.
(f) Term Notes. The portion of each Term Loan Tranche made by each
Lender shall be evidenced by a duly executed promissory note of the Company to
such Lender in an original principal amount equal to such Lender's Commitment
Percentage of such Term Loan Tranche and substantially in the form of Exhibit H.
SECTION 3. CHANGE IN CIRCUMSTANCES AFFECTING LOANS.
3.1. BASIS FOR DETERMINING INTEREST RATE INADEQUATE OR UNFAIR.
If before the beginning of any Interest Period applicable to a
Eurodollar Loan:
(a) by reason of circumstances affecting the interbank
eurodollar market generally, deposits in Dollars (in the applicable
amounts) are not being offered by the Agent in the interbank eurodollar
market for such Interest Period;
(b) the Required Lenders shall determine that the Eurodollar
Rate determined or to be determined for such Interest Period will not
adequately and fairly reflect the cost to such Lenders of maintaining
or funding, for such Interest Period, its Eurodollar Loans to which
such Interest Period applies; or
(c) the Agent is unable to determine the London Interbank
Offered Rate;
the Agent (upon receipt of notice from the Required Lenders in the case of
clause (b) above) shall forthwith give notice thereof to the Company whereupon
until the Agent notifies the Company that the circumstances giving rise to such
suspension no longer exist (a) the obligations of the Lenders to make the
affected Eurodollar Loans shall be suspended and (b) each Borrower shall repay
in full the then outstanding principal amount of each affected Eurodollar Loan
received by it, together with accrued interest thereon, on the last day of the
then current Interest Period applicable to such Loan or convert the then
outstanding principal amount of each Eurodollar Loan on the last day of the then
current Interest Period applicable to such Loan to an ABR Loan.
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3.2. ILLEGALITY.
If, after the date of this Agreement, the introduction of, or any
change in, any applicable law, rule or regulation or in the interpretation or
administration thereof by any Governmental Authority charged with the
interpretation or administration thereof or compliance by any Lender with any
request or directive (whether or not having the force of law) of any such
Governmental Authority shall make it unlawful or impossible for any Lender to
make, maintain or fund its Eurodollar Loans, such Lender forthwith shall so
notify the Company. Upon receipt of such notice, each Borrower shall prepay in
full the then outstanding principal amount of each Eurodollar Loan of such
Lender received by it, together with accrued interest thereon, or convert the
then outstanding principal amount of each such Eurodollar Loan to an ABR Loan,
in either case, on either (a) the last day of the then current Interest Period
applicable to such Eurodollar Loan if such Lender may lawfully continue to
maintain and fund such Loan to such day or (b) immediately if such Lender may
not lawfully continue to fund and maintain such Loan to such day.
3.3. INCREASED COST.
(a) If, after the date of this Agreement, the introduction of, or any
change in, any applicable law, rule or regulation or in the interpretation or
administration thereof by any Governmental Authority, central bank or comparable
agency charged with the interpretation or administration thereof or compliance
by any Lender with any request or directive of any such Governmental Authority,
central bank or comparable agency (whether or not having the force of law):
(i) shall subject any Lender to any tax, duty or other charge
with respect to its obligation to make Eurodollar Loans, or its
Eurodollar Loans or its respective Notes, or shall change the basis of
taxation of payments to such Lender of the principal of or interest on
its Eurodollar Loans or in respect of any other amounts due under this
Agreement in respect of its obligation to make Eurodollar Loans, or its
Eurodollar Loans (except for changes in the rate of tax on the overall
net income of such Lender imposed by the jurisdiction, at any level, in
which the principal executive office of such Lender is located); or
(ii) shall impose, modify or deem applicable any reserve
(including, without limitation, any reserve imposed by the Board of
Governors of the Federal Reserve System), special deposit or similar
requirement against assets of, deposits with or for the account of, or
credit extended by, any Lender or shall impose on any Lender or the
interbank eurodollar market any other condition affecting its
Eurodollar Loans or its respective Notes;
and the result of any of the foregoing is to increase the cost to such Lender of
making or maintaining its Eurodollar Loans, or to reduce the amount of any sum
received or receivable by such Lender under this Agreement or under its Notes in
respect of its Eurodollar Loans, by any amount deemed by such Lender to be
material, then, within fifteen (15) days after receipt of written demand from
such Lender, the Borrowers agree to pay to such Lender such additional amount or
amounts as will
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compensate such Lender for such increased cost or reduction. A certificate of
such Lender setting forth in reasonable detail the basis for determining such
additional amount or amounts necessary to compensate such Lender shall be
conclusive in the absence of manifest error.
(b) If any Lender shall have determined that the introduction of any
applicable law, rule, regulation or guideline regarding capital adequacy, or any
change therein or any change in the interpretation or administration thereof by
any Governmental Authority or compliance by such Lender or any corporation
controlling such Lender with any request, guideline or directive regarding
capital adequacy (whether or not have the force of law) of any such Governmental
Authority, central bank or comparable agency, affects or would affect the amount
of capital required or expected to be maintained by such Lender or any
corporation controlling such Lender and such Lender (taking into consideration
such Lender's or such corporation's policies with respect to capital adequacy
and such Lender's desired return on capital) determines that the amount of such
capital is increased as a consequence of such Lender's obligations under this
Agreement, then, upon demand of such Lender, each Borrower shall immediately pay
to such Lender, from time to time as specified by such Lender, additional
amounts sufficient to compensate such Lender for such increase, to the extent
related to the Loans made to such Borrower. A certificate of such Lender setting
forth in reasonable detail the basis for determining any such additional amounts
payable pursuant to the preceding sentence shall be submitted by such Lender
through the Agent to the Company and shall be conclusive in the absence of
manifest error.
3.4. EFFECT ON OBLIGATION TO CONVERT.
If notice has been given pursuant to subsection 3.1 or 3.2 hereof
requiring the Eurodollar Loans of any Lender to be prepaid or converted, then,
unless and until such Lender notifies the Company that the circumstances giving
rise to such prepayment or conversion no longer apply, the obligation of such
Lender to make or convert to Eurodollar Loans shall be suspended.
3.5. FUNDING LOSSES.
Each Borrower shall pay to each Lender, upon written request, such
amount or amounts as shall compensate such Lender for any loss or expense
incurred by such Lender (including, without limitation, any loss or expense
incurred by reason of the liquidation or reemployment of deposits or other funds
acquired by such Lender to fund or maintain its Eurodollar Loans made to such
Borrower) as a result of (i) any payment or prepayment or conversion of a
Eurodollar Loan on a date other than a date which is the last day of an Interest
Period for such Eurodollar Loan or any payment in respect of increased costs to
such Lender, whether pursuant to subsection 3.2 or subsection 3.3 (except when
such payment or prepayment pursuant to subsection 3.2 or subsection 3.3 is
required due to a request or directive which does not have the force of law) or
Section 6 hereof or otherwise or (ii) any failure by such Borrower to borrow or
prepay a Eurodollar Loan or to convert an ABR Loan into a Eurodollar Loan on the
date scheduled for such borrowing, prepayment or conversion.
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Each Lender shall furnish the Company with a reasonably detailed statement
explaining the amount of any such loss or expense, which statement shall be
conclusive absent manifest error.
SECTION 3A. GUARANTY.
3A.1 GUARANTY OF PAYMENT.
Subject to subsection 3A.7 below, each of the Guarantors hereby,
jointly and severally, unconditionally guarantees to each Lender, each Affiliate
of a Lender that enters into a Hedging Agreement and the Agent the prompt
payment of the Guaranteed Obligations in full when due (whether at stated
maturity, as a mandatory prepayment, by acceleration or otherwise). This
guaranty is a guaranty of payment and not merely of collection and is a
continuing guaranty and shall apply to all Guaranteed Obligations whenever
arising.
3A.2 OBLIGATIONS UNCONDITIONAL.
The obligations of the Guarantors hereunder are absolute and
unconditional, irrespective of the value, genuineness, validity, regularity or
enforceability of the Credit Documents or the Hedging Agreements, or any other
agreement or instrument referred to herein, to the fullest extent permitted by
applicable law, irrespective of any other circumstance whatsoever which might
otherwise constitute a legal or equitable discharge or defense of a surety or
guarantor. Each Guarantor agrees that this guaranty may be enforced by the
Lenders without the necessity at any time of resorting to or exhausting any
security or collateral and without the necessity at any time of having recourse
to the Notes, the Agreement or any other Credit Documents or any collateral, if
any, hereafter securing the Guaranteed Obligations or otherwise and each
Guarantor hereby waives the right to require the Lenders to proceed against a
Borrower or any other Person (including a co-guarantor) or to require the
Lenders to pursue any other remedy or enforce any other right. Each Guarantor
further agrees that it shall have no right of subrogation, indemnity,
reimbursement or contribution against a Borrower or any other guarantor of the
Guaranteed Obligations for amounts paid under this guaranty until such time as
the Lenders (and any Affiliates of Lenders entering into Hedging Agreements)
have been paid in full, all Commitments under the Agreement have been terminated
and no Person or Governmental Authority shall have any right to request any
return or reimbursement of funds from the Lenders in connection with monies
received under the Agreement. Each Guarantor further agrees that nothing
contained herein shall prevent the Lenders from suing on the Notes, the
Agreement or any other Credit Document or any of the Hedging Agreements or
foreclosing its security interest in or Lien on any collateral, if any, securing
the Guaranteed Obligations or from exercising any other rights available to it
under this Agreement, the Notes, or any other instrument of security, if any,
and the exercise of any of the aforesaid rights and the completion of any
foreclosure proceedings shall not constitute a discharge of any of a Guarantor's
obligations hereunder; it being the purpose and intent of each Guarantor that
its obligations hereunder shall be absolute, independent and unconditional under
any and all circumstances. Neither a Guarantor's obligations under this guaranty
nor any remedy for the enforcement thereof shall be impaired, modified, changed
or released in any manner whatsoever by an impairment, modification, change,
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release or limitation of the liability of a Borrower or by reason of the
bankruptcy or insolvency of a Borrower. Each Guarantor waives any and all notice
of the creation, renewal, extension or accrual of any of the Guaranteed
Obligations and notice of or proof of reliance of by the Agent or any Lender
upon this guaranty or acceptance of this guaranty. The Guaranteed Obligations,
and any of them, shall conclusively be deemed to have been created, contracted
or incurred, or renewed, extended, amended or waived, in reliance upon this
guaranty. All dealings between the Borrowers and any of the Guarantors, on the
one hand, and the Agent and the Lenders, on the other hand, likewise shall be
conclusively presumed to have been had or consummated in reliance upon this
guaranty.
3A.3 MODIFICATIONS.
Each Guarantor agrees that (a) all or any part of the security which
hereafter may be held for the Guaranteed Obligations, if any, may be exchanged,
compromised or surrendered from time to time; (b) the Lenders shall not have any
obligation to protect, perfect, secure or insure any such security interests,
liens or encumbrances which hereafter may be held, if any, for the Guaranteed
Obligations or the properties subject thereto; (c) the time or place of payment
of the Guaranteed Obligations may be changed or extended, in whole or in part,
to a time certain or otherwise, and may be renewed or accelerated, in whole or
in part; (d) a Borrower and any other party liable for payment under the
Agreement may be granted indulgences generally; (e) any of the provisions of the
Notes, the Agreement or any other Credit Document may be modified, amended or
waived; (f) any party (including any co-guarantor) liable for the payment
thereof may be granted indulgences or be released; and (g) any deposit balance
for the credit of a Borrower or any other party liable for the payment of the
Guaranteed Obligations or liable upon any security therefor may be released, in
whole or in part, at, before or after the stated, extended or accelerated
maturity of the Guaranteed Obligations, all without notice to or further assent
by such Guarantor, which shall remain bound thereon, notwithstanding any such
exchange, compromise, surrender, extension, renewal, acceleration, modification,
indulgence or release.
3A.4 WAIVER OF RIGHTS.
Each Guarantor expressly waives to the fullest extent permitted by
applicable law: (a) notice of acceptance of this guaranty by the Lenders and of
all extensions of credit to a Borrower by the Lenders; (b) presentment and
demand for payment or performance of any of the Guaranteed Obligations; (c)
protest and notice of dishonor or of default (except as specifically required in
the Agreement) with respect to the Guaranteed Obligations or with respect to any
security therefor; (d) notice of the Lenders obtaining, amending, substituting
for, releasing, waiving or modifying any security interest, lien or encumbrance,
if any, hereafter securing the Guaranteed Obligations, or the Lenders
subordinating, compromising, discharging or releasing such security interests,
liens or encumbrances, if any; (e) all other notices to which such
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Guarantor might otherwise be entitled in connection with the guaranty evidenced
by this Section 3A; and (f) demand for payment under this guaranty.
3A.5 REINSTATEMENT.
The obligations of the Guarantors under this Section 3A shall be
automatically reinstated if and to the extent that for any reason any payment by
or on behalf of any Person 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 each Guarantor agrees that it will indemnify
the Agent and each Lender on demand for all reasonable, documented costs and
expenses (including, without limitation, reasonable, documented fees of counsel)
incurred by the 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.
3A.6 REMEDIES.
Each Guarantor agrees that, as between the Guarantors, on the one hand,
and the Agent and the Lenders, on the other hand, the Guaranteed Obligations may
be declared to be forthwith due and payable as provided in Section 6 (and shall
be deemed to have become automatically due and payable in the circumstances
provided in Section 6) notwithstanding any stay, injunction or other prohibition
preventing such declaration (or preventing such Guaranteed Obligations from
becoming automatically due and payable) as against any other Person and that, in
the event of such declaration (or such Guaranteed Obligations being deemed to
have become automatically due and payable), such Guaranteed Obligations (whether
or not due and payable by any other Person) shall forthwith become due and
payable by the Guarantors. The Guarantors acknowledge and agree that, during the
Collateral Period, their obligations hereunder shall be secured in accordance
with the terms of the Collateral Documents and that, during the Collateral
Period, the Lenders may exercise their rights and remedies thereunder in
accordance with the terms thereof.
3A.7 LIMITATION OF GUARANTY.
Notwithstanding any provision to the contrary contained herein, to the
extent the obligations of any Guarantor shall be adjudicated to be invalid or
unenforceable for any reason (including, without limitation, because of any
applicable state or federal law relating to fraudulent conveyances or transfers)
then the obligations of such Guarantor hereunder shall be limited to the maximum
amount that is permissible under applicable law (whether federal or state and
including, without limitation, the Federal Bankruptcy Code (as now or
hereinafter in effect)).
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3A.8 RIGHTS OF CONTRIBUTION.
The Guarantors agree among themselves that, in connection with payments
made hereunder, each Guarantor shall have contribution rights against the other
Guarantors as permitted under applicable law. Such contribution rights shall be
subordinate and subject in right of payment to the obligations of the Guarantors
under the Credit Documents and no Guarantor shall exercise such rights of
contribution until all Guaranteed Obligations have been paid in full and the
Commitments terminated.
3A.9 RELEASES OF CERTAIN GUARANTORS.
Upon the occurrence of a Credit Improvement Date, the Company may by
written notice to the Agent request that any Material Domestic Subsidiary or
Additional Credit Party be released from its guaranty pursuant to this Section
3A. Promptly upon receipt of such written request, the Agent shall, at the
expense of the Company, execute and deliver a release acknowledging the
termination of the guaranties of the Material Domestic Subsidiaries and/or
Additional Credit Parties specified in such request.
SECTION 4. CONDITIONS PRECEDENT.
4.1. EFFECTIVENESS OF THIS AGREEMENT.
The effectiveness of this Agreement is subject to the satisfaction of
the following conditions precedent on the date hereof:
(a) the Agent shall have received a copy of this Agreement, the Notes,
the Pledge Agreements and each of the other Credit Documents, each duly executed
and delivered by the parties thereto, together with a certificate of the
Secretary or Assistant Secretary of the Company and each other Credit Party as
to the incumbency and specimen signatures of the officers of the Company and
each other Credit Party who are authorized to execute this Agreement, the Notes
and each other document to be executed and delivered by the Company and each
other Credit Party pursuant hereto;
(b) the Agent shall have received a certified copy of the resolutions
of the Board of Directors of the Company and each other Credit Party evidencing
its approval of this Agreement, the Notes and the other matters contemplated
hereby, and a certified copy of all documents evidencing other necessary
corporate action and governmental approvals, if any, with respect to this
Agreement, the Notes and the other Credit Documents;
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(c) the Agent shall have received an opinion of the Assistant General
Counsel of the Company, acting as counsel to each of the Credit Parties, in a
form agreed to by such counsel for the Company and counsel for the Agent;
(d) the Agent shall have received all documents it may reasonably
request relating to the existence and good standing of the Credit Parties and to
the authorization, execution and delivery of this Agreement and the other Credit
Documents and other matters relevant hereto, all in form and substance
satisfactory to the Agent and its counsel in their reasonable discretion;
(e) the Agent shall have received (with a copy for each Lender) each of
the financial statements referred to in subsection 1.2;
(f) the Agent shall have received from a Responsible Officer of the
Company a certificate to the effect that as of the date hereof (i) all
representations and warranties made by the Company and each other Credit Party
in this Agreement and each other Credit Document are true and correct in all
material respects and (ii) the transactions contemplated in the Merger Agreement
have been consummated in accordance with the terms thereof;
(g) the Agent shall have received evidence satisfactory to the Agent
that the Credit Parties have terminated, and paid in full any amounts
outstanding under, the Existing Credit Agreements or will terminate and pay in
full such amounts with the proceeds of the initial borrowing hereunder;
(h) no Default or Event of Default shall have occurred and be
continuing; and
(i) (i) The Acquisition shall have been consummated in accordance with
the terms of the Merger Agreement and in compliance with applicable law and
regulatory approvals, and all conditions precedent to the consummation of the
transaction described in the Merger Agreement shall have been satisfied, (ii)
the Merger Agreement shall not have been altered, amended or otherwise changed
or supplemented or any condition therein waived, without the prior written
consent of the Co-Agents, (iii) the Company shall not have paid more than
$2,500,000,000 (net of option proceeds and excluding the assumption of
Indebtedness) in the aggregate in connection with the Acquisition and (iv) at
least $180,000,000 of the purchase price paid in connection with the Acquisition
shall have been funded by the Company issuing common stock out of its treasury
stock account to the BetzDearborn Employee Stock Option Plan ("BetzDearborn
ESOP") to purchase the BetzDearborn convertible preferred shares held by, or in
trust for, the BetzDearborn ESOP.
4.2. CONDITIONS TO ALL BORROWINGS.
In the case of all borrowings or issuances or extensions of Letters of
Credit hereunder (including, without limitation, the initial borrowing and the
initial Letter of Credit), the obligation of each Lender (including the
Swingline Lender) to make, or participate in, each Loan,
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and of the Issuing Lender to issue or extend, and the obligation of the Lenders
to participate in, a Letter of Credit, is subject to the satisfaction of the
following conditions:
(i) with respect to the first such borrowing or Letter of
Credit, satisfaction of each of the conditions precedent set forth in
Section 4.1;
(ii) on and as of the Borrowing Date of such Loan or Letter of
Credit no Default or Event of Default shall have occurred and be
continuing or would exist after giving effect to the making of such
Loan or the issuance or extension of such Letter of Credit;
(iii) on and as of the Borrowing Date of such Loan or Letter
of Credit the representations and warranties of each Credit Party
contained in Section 1 hereof and in each other Credit Document shall
be true and correct in all material respects; and
(iv) receipt by the Agent of any applicable notice(s) from the
Company required by Section 2 hereof.
Each borrowing by a Borrower hereunder or request for the issuance or
extension of a Letter of Credit by the Company hereunder shall constitute a
representation and warranty by such Borrower to the Agent and the Lenders to the
effect that the representations and warranties of the Company and the other
Credit Parties contained in Section 1 hereof and in each other Credit Document
are true in all material respects on and as of the Borrowing Date of the
applicable Loan or Letter of Credit and that, on and as of such Borrowing Date,
no Default or Event of Default has occurred and is continuing or would exist
after giving effect to the making of such Loan or to the issuance or extension
of such Letter of Credit.
SECTION 5. COVENANTS.
5.1. AFFIRMATIVE COVENANTS.
So long as this Agreement, any of the Notes, any LOC Obligations or any
other Credit Document shall remain in effect or any of the principal of or
interest on any of the Notes or any other amount payable by a Credit Party to
the Agent or any of the Lenders pursuant to this Agreement, any of the Notes,
any LOC Obligations or any other Credit Document shall remain unpaid, unless
compliance shall have been waived in writing by the Required Lenders, each
Credit Party covenants and agrees that:
(a) Financial Statements. (i) The Company will deliver to the Agent and
each Lender:
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(A) within ninety (90) days after the end of each of its
fiscal years, the consolidated statement of financial position of the Company
and its Consolidated Subsidiaries as of the end of such year, and the related
consolidated statements of income, stockholders' equity and cash flows for the
year then ended, accompanied by a certificate of independent public accountants
of recognized standing satisfactory to the Agent as to such statements, which
certificate will contain no material exceptions or qualifications except such as
are acceptable to the Required Lenders;
(B) within sixty (60) days after the end of each of the first
three (3) quarters of each of its fiscal years, the consolidated statement of
financial position of the Company and its Consolidated Subsidiaries as at the
end of such quarters, and the related consolidated statements of income and cash
flows for such quarters and the portion of the fiscal year then ended;
(C) promptly upon the filing thereof, copies of all Form
8-K,10-K, and 10-Q reports, if any, which the Company shall have filed with the
Securities and Exchange Commission;
(D) from time to time such additional information regarding
the financial position or business of the Company as the Agent or any Lender may
reasonably request; and
(E) simultaneously with the delivery of each set of financial
statements referred to in paragraphs (A) and (B) above, a certificate of a
Responsible Officer of the Company (1) stating that in the course of the
performance of his duties he would normally obtain knowledge of any condition or
event which constitutes, or which after notice or lapse of time or both would
constitute, an Event of Default specified in Section 6, (2) stating whether or
not he has obtained knowledge of any such condition or event and, if so,
specifying each such condition or event of which he has knowledge and the nature
and period of existence thereof and the action the Company is taking and
proposes to take with respect thereto and (3) setting forth the calculations
required to establish compliance with subsection 5.2(d).
(ii) The Company shall promptly give notice to the Agent and
the Lenders of (A) the occurrence of any Default or Event of Default,
accompanied by a certificate specifying the nature of such Default or
Event of Default, the period of existence thereof and the action that
the Company has taken or proposes to take with respect thereto and (B)
the occurrence of any of the following with respect to the Company or
any of its Consolidated Subsidiaries (x) the pendency or commencement
of any litigation, arbitral or governmental proceeding against such
Person which if adversely determined could reasonably be expected to
have a Material Adverse Effect or (y) the institution of any
proceedings against such Person with respect to, or the receipt of
notice by such Person of potential liability or responsibility for
violation, or alleged violation of any federal, state or local law,
rule or regulation, including but not limited to, Environmental Laws,
the violation of which could reasonably be expected to have a Material
Adverse Effect.
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(b) Payment of Obligations. It will, and will cause each of its
Subsidiaries to, pay, discharge or otherwise satisfy at or before maturity or
before they become delinquent, as the case may be, all its obligations of
whatever nature, except where the amount or validity thereof is currently being
contested in good faith by appropriate proceedings and reserves in conformity
with GAAP with respect thereto have been provided on the books of the Company or
its Subsidiaries, as the case may be.
(c) Conduct of Business and Maintenance of Existence. It will, and will
cause each of the Material Subsidiaries to, (i) continue to engage in business
of the same general type as now conducted by it and preserve, renew and keep in
full force and effect its corporate existence (except in connection with mergers
or consolidations permitted under subsection 5.2(b)) and take all reasonable
action to maintain all rights, privileges and franchises necessary or desirable
in the normal conduct of its business and (ii) comply with all Contractual
Obligations and Requirements of Law except to the extent that failure to comply
therewith could not, in the aggregate, be reasonably expected to have a Material
Adverse Effect.
(d) Maintenance of Property; Insurance. It will, and will cause each of
the Material Subsidiaries to, (i) keep all property useful and necessary in its
business in good working order and condition, except where the failure to keep
such property in good working order could not reasonably be expected to have a
Material Adverse Effect and (ii) maintain with financially sound and reputable
insurance companies insurance on all its property in at least such amount and
against at least such risks as are usually insured against in the same general
area by companies engaged in the same or a similar business (it being understood
that the Company may maintain self-insurance to a similar extent as is commonly
maintained by companies engaged in the same or a similar business).
(e) Books and Records. It will, and will cause each of the Material
Subsidiaries to, keep proper books of records and account in which full, true
and correct entries in conformity with generally accepted accounting principles
in effect with respect to such Person (meaning GAAP for the Company and its
Domestic Subsidiaries) and all Requirements of Law shall be made of all dealings
and transactions in relation to its business and activities.
(f) Material Subsidiaries. The Company and the Material Subsidiaries
shall at all times collectively account for 90% or more of the net income and
assets, respectively, of the Company and its Consolidated Subsidiaries.
(g) Year 2000 Compliance. The Company will promptly notify the Agent in
the event any Credit Party discovers or determines that any computer application
that is material to its or any of its Subsidiaries' business and operations will
not be Year 2000 Compliant (as defined in subsection 1.19), except to the extent
that such failure could not reasonably be expected to have a Material Adverse
Effect.
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(h) Use of Proceeds. It will use (i) the proceeds of the Loans solely
in accordance with subsection 1.6 and (ii) the Letters of Credit solely for the
purposes set forth in subsection 1.6.
(i) Audits/Inspections. Upon reasonable notice and during normal
business hours, each Credit Party will permit representatives appointed by the
Agent, including, without limitation, independent accountants, agents, attorneys
and appraisers, to visit and inspect such Credit Party's property, including its
books and records, its accounts receivable and inventory, its facilities and its
other business assets, and to make photocopies or photographs thereof and to
write down and record any information such representative obtains and shall
permit such Agent or its representatives to investigate and verify the accuracy
of information provided to the Lenders, and to discuss all such matters with the
executive officers, pertinent employees and representatives of the Credit
Parties; provided, however, that so long as neither (x) an Event of Default
shall have occurred and be continuing nor (y) the Collateral Period shall have
begun and be continuing, (i) no verification of accuracy of information shall
include contacting the account debtors under any accounts receivable of any
Credit Party and (ii) such visits and inspections shall not (A) disrupt the
normal business operations of any Credit Party, (B) be conducted by more than 5
Persons at any one time or (C) occur more frequently than annually. The Agent
agrees to keep confidential the information obtained from any such audit or
inspection in accordance with the provisions of subsection 9.17.
(j) Additional Credit Parties. At the time any Person becomes a
Material Domestic Subsidiary (other than a Receivables Financing SPC or a
Preferred Stock SPC) prior to a Credit Improvement Date, the Company shall so
notify the Agent and promptly thereafter (but in any event within 30 days after
the date thereof) shall (a) cause such Person to execute a Guarantor Joinder
Agreement in substantially the same form as Exhibit E, (b) execute an
appropriate pledge agreement in substantially the form of the Pledge Agreements
and otherwise in a form reasonably acceptable to the Collateral Agent, which
pledge agreement will be effective only during the Collateral Period and which
will obligate the Company to, upon the occurrence of the Collateral Effective
Date (or within 30 days of the notice referred to above if the Collateral Period
shall have begun and shall then be continuing), cause all of the capital stock
of such Person to be delivered to the Collateral Agent (together with undated
stock powers, if applicable, signed in blank) and pledged to the Collateral
Agent, (c) if such Person has any Subsidiaries, cause such Person to execute a
pledge agreement in substantially the form of the Pledge Agreements and
otherwise in a form reasonably acceptable to the Collateral Agent, which pledge
agreement will be effective only during the Collateral Period and which will
obligate such Person to, upon the occurrence of the Collateral Effective Date
(or within 30 days of the notice referred to above if the Collateral Period
shall have begun and shall then be continuing), cause all of the capital stock
of its Domestic Subsidiaries and 65% of the capital stock of its Material First
Tier Foreign Subsidiaries to be delivered to the Collateral Agent (together with
undated stock powers, if applicable, signed in blank) and pledged to the
Collateral Agent, and (d) deliver, or cause such Person to deliver, such other
documentation as the Collateral Agent may reasonably request in connection with
the foregoing, including, without limitation, certified resolutions and other
organizational and authorizing documents of such Person, favorable opinions of
counsel to such Person (which shall cover, among other things, the legality,
validity, binding effect and enforceability of the documentation referred to
above) and, if the Collateral Period shall have
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begun and shall then be continuing, appropriate UCC-1 financing statements, all
in form, content and scope reasonably satisfactory to the Collateral Agent.
(k) Collateral Effective Date. Upon the occurrence of the Collateral
Effective Date and during the ensuing Collateral Period, the Pledge Agreements
shall be in full force and effect and the Collateral Agent, on behalf of the
Lenders, shall have a Lien on the Collateral described in the Pledge Agreements
and there shall be added to Section 1 a new representation and warranty in the
form set forth on Schedule V attached hereto. Within ten Business Days following
the Collateral Effective Date, the Company shall deliver to the Collateral
Agent, in form and substance reasonably satisfactory to the Collateral Agent:
(i) all stock certificates evidencing the stock pledged to the
Collateral Agent pursuant to the Pledge Agreements, together with duly
executed in blank undated stock powers attached thereto;
(ii) duly executed UCC financing statements for each
appropriate jurisdiction as is necessary, in the Collateral Agent's
sole discretion, to perfect the Lenders' security interest in the
Collateral; and
(iii) an opinion of counsel addressed to the Collateral Agent,
on behalf of the Lenders, covering such issues as reasonably requested
by the Collateral Agent, including the attachment and perfection of the
liens.
(l) Initial Hybrid Equity Transaction. No later than the date that is
three (3) months following the Closing Date, the Company shall complete the
Initial Hybrid Equity Transaction.
5.2. NEGATIVE COVENANTS.
So long as this Agreement, any of the Notes, any LOC Obligations or any
other Credit Document shall remain in effect or any of the principal of or
interest on any of the Notes or any other amount payable by a Credit Party to
the Agent or any of the Lenders pursuant to this Agreement, any of the Notes,
any LOC Obligations or any other Credit Document shall remain unpaid, unless
waived in writing by the Required Lenders, each Credit Party covenants and
agrees that:
(a) Limitation on Liens. It will not, and will not permit any of the
Material Subsidiaries to, create, incur, assume or suffer to exist any Lien on
any Property owned by such Person or on any capital stock of any Material
Subsidiary now or hereafter owned by such Person to secure Indebtedness, or
acquire any such Property subject to any conditional sale or title retention
agreement, except: (i) purchase money security arrangements upon Property
acquired
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subsequent to the date of this Agreement, provided that each such security
arrangement does not exceed 80% of the cost or fair value of the Property
acquired and is a lien only on such Property, or renewals or extensions of any
such security arrangement upon the same Property and not in a greater amount;
(ii) Liens on Property in favor of, or any conditional sale or title retention
agreement relating to any Property with, the United States of America or any
State thereof, or any department, agency or instrumentality or political
subdivision of the United States of America or any such political subdivision,
or any agent or trustee acting on behalf of any of the foregoing, or any agent
or trustee acting on behalf of the holders of obligations issued by any of the
foregoing, to secure partial, progress, advance or other payments pursuant to
any agreement, understanding, contract, lease or statute (including, but not
limited to, agreements, understandings, contracts, leases or statutes that
require the construction of Property and sale thereof to any of the named
departments, agencies or political divisions, as a part of the lease or
installment purchase of such Property by the Company or any Material Subsidiary)
or to secure any indebtedness incurred for the purpose of financing all or any
part of the purchase price or the cost of construction of the Property subject
to such Liens; (iii) any reservation or exception contained in any instrument
under which the Company or any Material Subsidiary owns or shall acquire any
Property and under the terms of which any vendor, lessor or assignor reserves or
excepts an interest in oil, gas or any other mineral or the proceeds thereof;
(iv) any conveyance or assignment under the terms of which the Company or any
Material Subsidiary conveys or assigns an interest in oil, gas or any, other
mineral or the proceeds thereof whether or not such conveyance or assignment is
in connection with or substantially simultaneous with an extension of credit to
the grantee or assignee thereunder on a basis providing for repayment of all or
substantially all of such advance out of such proceeds or out of production from
such interest; (v) any lien upon any Property owned by the Company or any
Material Subsidiary or in which the Company or any Material Subsidiary owns an
interest to secure payment of its proportionate part of the expenses of
developing or conducting operations for the recovery, storage, transportation or
sale of the mineral resources of such Property (or Property with which it is
unitized); (vi) easements, rights-of-way, restrictions and other similar
encumbrances incurred in the ordinary course of business which, in the
aggregate, are not substantial in amount and which do not in any case materially
detract from the value of the property subject thereto or materially interfere
with the ordinary conduct of the business of the Company or such Material
Subsidiary; (vii) Liens (not otherwise permitted hereunder) which secure
indebtedness for borrowed money not exceeding (as to the Company and all
Material Subsidiaries) $60,000,000 in aggregate amount at any time outstanding;
(viii) any Liens securing indebtedness for borrowed money of a wholly-owned
Material Subsidiary of the Company, to the Company or to another wholly-owned
Material Subsidiary of the Company; (ix) Liens for taxes not yet due or that are
being contested in good faith and by appropriate proceedings; (x) carriers',
warehousemen's, mechanic's, materialmen's, repairmen's or other like Liens
arising in the ordinary course of business; (xi) pledges and deposits made in
the ordinary course of business in compliance with workmen's compensation,
unemployment insurance and other social security laws or regulations; (xii)
deposits to secure the performance of bids, trade contracts, leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations of
a like nature incurred in the ordinary course of business; (xiii) Liens in favor
of customs revenue authorities arising as a matter of law to secure payment of
customs duties; (xiv) any extension, renewal or replacement
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(or successive extensions, renewals or replacements), in whole or in part of any
lien referred to in the foregoing clauses (i) to (v), inclusive, provided that
the obligation secured thereby shall not exceed the obligation so secured at the
time of such extension, renewal or replacement, and that such extension, renewal
or replacement shall be limited to that portion of the Property which secured
the lien so extended, renewed or replaced (plus improvements on such Property);
and (xv) Liens in favor of the Collateral Agent to secure the Pledgor
Obligations (as defined in the Pledge Agreements).
(b) Limitations on Mergers, Asset Sales and Asset Purchases. It will
not, and will not permit any of its Subsidiaries to, (i) merge or consolidate
with or into any other Person or (ii) sell, lease or otherwise dispose of any of
its assets or purchase another Person or the assets of another Person, in any
case described in this clause (ii) in a transaction or series of related
transactions that is a Covered Transaction, unless (A) in the case of clause (i)
above, if a Credit Party is a party to such transaction the resulting or
surviving corporation shall be such Credit Party (or, if such merger or
consolidation involves two Credit Parties, a Credit Party) and, if the Company
is a party to such a transaction with another Credit Party, the Company shall be
the resulting or surviving corporation, (B) in the case of clause (i) and clause
(ii) above, after giving effect on a Pro Forma Basis to any such merger,
consolidation, sale, lease or other disposition or any such purchase, no Default
or Event of Default shall have occurred or be continuing, (C) in the case of a
purchase covered by clause (ii) above, such purchase either is an intercompany
purchase or does not require a cash purchase price in excess of $75,000,000 in
the aggregate in cash consideration and (D) in the case of an Asset Disposition
covered by clause (ii) above and while any Term Loan is outstanding, no later
than two (2) Business Days prior to such Asset Disposition, the Agent and the
Lenders shall have received a certificate of a Responsible Officer of the
Company specifying the anticipated or actual date of such Asset Disposition,
briefly describing the assets to be sold or otherwise disposed of and setting
forth the net book value of such assets, the aggregate consideration and the Net
Cash Proceeds to be received for such assets in connection with such Asset
Disposition, and thereafter the Credit Parties shall, within the period of 180
days following the consummation of such Asset Disposition, apply (or cause to be
applied) an amount equal to the Net Cash Proceeds of such Asset Disposition to
(A) make Eligible Reinvestments or (B) prepay the Term Loans in accordance with
the terms of subsection 2.6(b)(ii).
Upon the sale of Capital Stock of a Material Domestic Subsidiary or
Material First Tier Foreign Subsidiary permitted by this subsection 5.2(b), the
Agent shall (to the extent applicable) deliver to the Credit Parties, upon the
Credit Parties' request and at the Credit Parties' expense, such documentation
as is reasonably necessary to evidence the release of the Agent's security
interest, if any, in such Capital Stock, including, without limitation,
amendments or terminations of UCC financing statements, if any, the return of
stock certificates, if any, and the release of such Subsidiary from all of its
obligations, if any, under the Credit Documents.
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(c) Limitations on Sale/Leaseback Transactions. It will not, and will
not permit any of the Material Subsidiaries to, sell or transfer any
manufacturing Properties to anyone (other than the Company or to a Material
Subsidiary in which the Company owns 50% or more of the voting stock) with the
intention of taking back a lease of such Property or any similar Property,
except in connection with a lease for a temporary period during or at the end of
which it is intended that the use by the Company or its Material Subsidiary of
such Property will be discontinued.
(d) Financial Covenants.
(i) Leverage Ratio. It will not permit, as of the last day of
any fiscal quarter, the Leverage Ratio to exceed the ratio set forth
below for the applicable period:
Period Maximum Leverage Ratio
------ ----------------------
Closing Date through March 31, 1999 5.0 to 1.0
April 1, 1999 through September 30, 1999 4.5 to 1.0
October 1, 1999 through September 30, 2000 3.5 to 1.0
October 1, 2000 through Termination Date 3.0 to 1.0
(ii) Minimum Net Worth. It will not permit at any time
Consolidated Net Worth to be less than $520,000,000, increased on a
cumulative basis as of the last day of each fiscal quarter (commencing
on December 31, 1998) by an amount equal to the sum of (x) 40% of
Consolidated Net Income, if positive, for such fiscal quarter and (y)
80% of any Equity Issuances (including an issuance of hybrid equity
securities (e.g., trust preferred capital securities), but only if such
issuance increases Consolidated Net Worth) commenced in such fiscal
quarter.
(iii) Interest Coverage Ratio. It will not permit, as of the
last day of any fiscal quarter, the Interest Coverage Ratio to be less
than the ratio set forth below for the applicable period:
Period Minimum Interest Coverage Ratio
------ -------------------------------
Closing Date through September 30, 1999 2.5 to 1.0
October 1, 1999 through Termination Date 3.0 to 1.0
(e) Limitations on Transactions with Affiliates. It will not, and will
not permit any of its Subsidiaries to, enter into any transaction, including,
without limitation, any purchase, sale, lease or exchange of property or the
rendering of any service, with any Affiliate unless such transaction is (a)
otherwise permitted under this Agreement, (b) in the ordinary course of its or
such Subsidiary's business (or is a transaction among wholly-owned Subsidiaries
of the Company) and (c) upon fair and reasonable terms no less favorable to it
or such Subsidiary, as the case may be, than it would obtain in a comparable
arm's length transaction with a Person which is not an Affiliate; provided that
it shall not be a breach of this covenant to the extent that
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the failure of the Company or any of its Subsidiaries to comply with the
foregoing would not, individually or in the aggregate, be reasonably likely to
have a Material Adverse Effect.
(f) Limitations on Indebtedness of the Material Subsidiaries. It will
not permit any of the Material Subsidiaries to contract, create, incur, assume
or permit to exist any Indebtedness, except:
(i) Indebtedness arising under this Credit Agreement and the
other Credit Documents;
(ii) Indebtedness of the Material Subsidiaries set forth in
Schedule IV (but not including any renewals, refinancings or extensions
thereof);
(iii) obligations of the Material Subsidiaries in respect of
Hedging Agreements entered into in order to manage existing or
anticipated interest rate or exchange rate risks and not for
speculative purposes;
(iv) obligations of the Material Subsidiaries in connection
with any Permitted Receivables Financing, to the extent such
obligations constitute Indebtedness;
(v) unsecured intercompany Indebtedness owing by a Material
Subsidiary to a Credit Party or a Subsidiary of a Credit Party; and
(vi) in addition to the Indebtedness otherwise permitted by
this subsection 5.2(f), other Indebtedness hereafter incurred by the
Material Subsidiaries provided that (A) the aggregate outstanding
principal amount of such Indebtedness shall not exceed $150,000,000 at
any time and (B) such Indebtedness shall not cause the Company and the
Material Subsidiaries to violate the provisions of subsection
5.2(a)(vii).
(g) Fiscal Year; Organizational Documents. It will not, and will not
permit any of the Material Subsidiaries to, change its fiscal year or amend,
modify or change its articles of incorporation (or corporate charter or other
similar organizational document) or bylaws (or other similar document) without
the prior written consent of the Required Lenders.
(h) Limitation on Restricted Actions. It will not, and will not permit
any of the Material Subsidiaries (other than a Receivables Financing SPC in
connection with a Permitted Receivables Financing) to, directly or indirectly,
create or otherwise cause, incur, assume, suffer or permit to exist or become
effective any consensual encumbrance or restriction of any kind on the ability
of any such Person to (i) pay dividends or make any other distribution on any of
such Person's capital stock, (ii) pay any Indebtedness owed to the Company or
any other Credit Party, (iii) make
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loans or advances to any other Credit Party or (iv) transfer any of its property
to any other Credit Party, except for encumbrances or restrictions existing
under or by reason of (A) customary non-assignment or net worth provisions in
any lease governing a leasehold interest, (B) any agreement or other instrument
of a Person existing at the time it becomes a Subsidiary of the Borrower;
provided that such encumbrance or restriction is not applicable to any other
Person, or any property of any other Person, other than such Person becoming a
Subsidiary of the Borrower and was not entered into in contemplation of such
Person becoming a Subsidiary of the Borrower, and (C) this Credit Agreement and
the other Credit Documents.
(i) No Other Negative Pledges. It will not, and will not permit any of
the Material Subsidiaries to, enter into, assume or become subject to any
agreement prohibiting or otherwise restricting the creation or assumption of any
Lien upon its properties or assets, whether now owned or hereafter acquired, or
requiring the grant of any security for such obligation if security is given for
some other obligation, except pursuant to the documents executed in connection
with any Permitted Receivables Financing (but only to the extent that the
related prohibitions against other encumbrances pertain to the applicable
transferred assets actually sold, contributed, financed or otherwise conveyed or
pledged pursuant to such Permitted Receivables Financing).
SECTION 6. DEFAULTS.
If any of the following events shall occur and be continuing:
(a) any Borrower shall fail to pay the principal amount of any Note or
any LOC Obligation when due and payable in accordance with the terms thereof or
hereof; or any Credit Party shall fail to pay any installment of interest on any
Note or any Commitment Fee or other amount payable hereunder or under any of the
other Credit Documents and such amount is not paid within three (3) days after
the due date thereof;
(b) any Credit Party shall (i) fail to perform or observe any covenant
contained in subsections 5.1(e), (h), (i) or (j) or subsection 5.2 hereof or
(ii) fail to perform or observe any covenant contained in subsections
5.1(a)(i)(A), (B) or (E) or subsection 5.1(a)(ii) hereof and such failure
referred to in this subsection 6(b)(ii) shall continue unremedied for a period
of five (5) days after the earlier of a Responsible Officer of the Company
becoming aware of such failure or written notice specifying such failure and
stating that such notice is a "Notice of Default" hereunder is given, by
registered or certified mail or by courier, to the Company on behalf of the
Credit Parties by the Agent or any Lender;
(c) any Credit Party shall fail to perform or observe (i) any term,
covenant or agreement contained herein or in any Note (other than those
specified in clauses (a) or (b) above) and such failure shall continue
unremedied for a period of thirty (30) days after the earlier of a Responsible
Officer of the Company becoming aware of such failure or written notice
specifying such failure and stating that such notice is a "Notice of Default"
hereunder is given, by registered or certified mail or by courier, to the
Company on behalf of the Credit Parties by the Agent or
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any Lender or (ii) any term, covenant or agreement contained in any other Credit
Document and such failure shall continue unremedied beyond any applicable grace
or cure period;
(d) any representation or warranty made or deemed made by a Credit
Party pursuant to this Agreement or in any other Credit Document or in any other
document or certificate delivered pursuant hereto shall prove to have been
incorrect or misleading in any material respect as of the date made or deemed
made;
(e) the Company or any Material Subsidiary shall fail to pay at
maturity, or within any applicable period of grace, any Indebtedness (other than
the Indebtedness referred to in clause (a) above) or any obligations under
Hedging Agreements, in each case with an outstanding principal or notional
amount in excess of $25,000,000, or fail to observe or perform any term,
covenant or agreement contained in any agreement by which it is bound evidencing
or securing Indebtedness or any obligations under Hedging Agreements, in each
case with an outstanding principal or notional amount in excess of $25,000,000
for such period of time as would permit, or would have permitted (assuming the
giving of appropriate notice if required) the holder or holders thereof or of
any obligations issued thereunder (or a trustee or agent on behalf of such
holder or holders), to accelerate the maturity thereof, or of any such
obligation; provided, however, that if any such failure shall be cured by the
Company or such Material Subsidiary or waived by the requisite holders of the
defaulted obligations, then the default hereunder by reason of such failure
shall be deemed to have been cured and waived by the Required Lenders unless
prior thereto the Loans shall have been declared to be or shall have become
immediately due and payable hereunder; or
(f) the Company or any Material Subsidiary shall (i) apply for or
consent to the appointment of, or the taking of possession by, a receiver,
administrator, custodian, trustee or liquidator of itself or of all or a
substantial part of its property, (ii) admit in writing its inability, or be
generally unable, to pay its debts as they become due, (iii) make a general
assignment for the benefit of its creditors, (iv) commence a voluntary case
under the Federal Bankruptcy Code (as now or hereafter in effect), (v) be
adjudicated as bankrupt or insolvent, (vi) file a petition seeking to take
advantage of any other law relating to bankruptcy, insolvency, administration,
reorganization, winding-up or composition or adjustment of debts, (vii) fail to
controvert in a timely and appropriate manner, or acquiesce in writing to, any
petition filed against it in an involuntary case under such Bankruptcy Code, or
(viii) be authorized by its Board of Directors to take any of the foregoing
actions; or
(g) a proceeding or case shall be commenced, without the application or
consent of the Company or any Material Subsidiary, in any court of competent
jurisdiction, seeking (i) the liquidation, administration, reorganization,
dissolution or winding-up, or the composition or readjustment of debts, of the
Company or any Material Subsidiary, (ii) the appointment of a trustee, receiver,
administrator, custodian, liquidator or the like of the Company or any Material
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Subsidiary, or of all or any substantial part of its assets or (iii) similar
relief in respect of the Company or any Material Subsidiary, under any law
relating to bankruptcy, insolvency, administration, 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, in any
such case for a period of sixty (60) consecutive days, or an order for relief
against the Company or any Material Subsidiary, shall be entered in an
involuntary case under the Federal Bankruptcy Code (as now or hereafter in
effect); or
(h) (i) Any Person shall engage in any "prohibited transaction" (as
defined in Section 406 of ERISA or Section 4975 of the Code) involving any Plan,
(ii) any "accumulated funding deficiency" (as defined in Section 302 of ERISA),
whether or not waived, shall exist with respect to any Plan or any Lien in favor
of the PBGC or a Plan shall arise on the assets of the Company, any Material
Subsidiary or any Commonly Controlled Entity, (iii) a Reportable Event shall
occur with respect to, or proceedings shall commence to have a trustee
appointed, or a trustee shall be appointed, to administer or to terminate, any
Single Employer Plan, which Reportable Event or commencement of proceedings or
appointment of a trustee is, in the reasonable opinion of the Required Lenders,
likely to result in the termination of such Plan for purposes of Title IV of
ERISA, (iv) any Single Employer Plan shall terminate for purposes of Title IV of
ERISA, (v) the Company, any Material Subsidiary or any Commonly Controlled
Entity shall, or in the reasonable opinion of the Required Lenders is likely to,
incur any liability in connection with a withdrawal from, or the Insolvency or
Reorganization of, a Multiemployer Plan or (vi) any other event or condition
shall occur or exist with respect to a Plan; and in each case in clauses (i)
through (vi) above, such event or condition, together with all other such events
or conditions, if any, could reasonably be expected to have a Material Adverse
Effect; or
(i) One or more judgments or decrees shall be entered against the
Company or any Material Subsidiary, involving in the aggregate a liability (not
paid or fully covered by insurance) of $50,000,000 or more, and all such
judgments or decrees shall not have been vacated, discharged, stayed or bonded
pending appeal within 60 days from the entry thereof; or
(j) This Agreement, any of the Notes or any other Credit Document shall
cease, for any reason, to be in full force and effect, or any Credit Party shall
so assert or any Credit Party shall disaffirm or deny any of its obligations
thereunder; or
(k) Either (i) any "person" or "group" (within the meaning of Sections
13(d) and 14(d)(2) of the Securities Exchange Act of 1934) becomes the
"beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange Act
of 1934) of more than 30% of then outstanding voting stock of the Company or
(ii) the Company shall merge or consolidate with any Person other than in a
transaction permitted under subsection 5.2(b);
then, and in any such event, (A) if such event is an Event of Default specified
in paragraph (f) or (g) above, automatically (i) the Commitments shall
immediately terminate and the Loans
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hereunder (with accrued interest thereon) and all other amounts owing under this
Agreement, the Notes and the other Credit Documents shall immediately become due
and payable and (ii) the Credit Parties shall immediately be required to pay to
the Agent additional cash, to be held by the Agent, for the benefit of the
Lenders, in a cash collateral account as additional security for the LOC
Obligations in respect of subsequent drawings under all then outstanding Letters
of Credit in an amount equal to the maximum aggregate amount which may be drawn
under all Letters of Credits then outstanding, and (B) if such event is any
other Event of Default, any or all of the following actions may, with the
consent of the Required Lenders, or shall, upon the request of the Required
Lenders, be taken by the Agent: (i) the Agent may or shall, as applicable, by
notice to the Company declare the Commitments to be terminated forthwith,
whereupon the Commitments shall immediately terminate; (ii) the Agent may or
shall, as applicable, declare the Loans hereunder (with accrued interest
thereon) and all other amounts owing under this Agreement, the Notes and the
other Credit Documents to be due and payable forthwith, whereupon the same shall
immediately become due and payable; (iii) the Agent may or shall, as applicable,
direct the Credit Parties to pay (and the Credit Parties agree that upon receipt
of such notice they will immediately pay) to the Agent additional cash, to be
held by the Agent, for the benefit of the Lenders, in a cash collateral account
as additional security for the LOC Obligations in respect of subsequent drawings
under all then outstanding Letters of Credit in an amount equal to the maximum
aggregate amount which may be drawn under all Letters of Credits then
outstanding; and (iv) the Agent may or shall, as applicable, enforce any and all
rights and interests created and existing under the Credit Documents including,
without limitation, all rights and remedies existing under the Collateral
Documents, all rights and remedies against a Guarantor and all rights of
set-off. Except as expressly provided above in this Section, presentment,
demand, protest and all other notices of any kind are hereby expressly waived.
SECTION 7. DEFINITIONS.
As used in this Agreement, the following terms shall have the following
meanings (and including the plural as well as the singular):
"ABR": for any day, a rate per annum (rounded upwards, if necessary, to
the next 1/16 of 1%) equal to the greater of (a) the Prime Rate in effect on
such day and (b) the Federal Funds Effective Rate in effect on such day plus 1/2
of 1%. For purposes hereof: "Prime Rate" shall mean the rate of interest per
annum publicly announced from time to time by the Agent as its prime rate in
effect at its principal office in Charlotte, North Carolina (the Prime Rate not
being intended to be the lowest rate of interest charged by NationsBank, N.A. in
connection with extensions of credit to debtors); and "Federal Funds Effective
Rate", shall mean, for any day, the weighted average of the rates on overnight
federal funds transactions with members of the Federal Reserve System arranged
by federal funds brokers, as published on the next succeeding Business Day by
the Federal Reserve Bank of New York, or, if such rate is not so published for
any day which is a Business Day, the average of the quotations for the day of
such transactions
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received by the Agent from three federal funds brokers of recognized standing
selected by it. If for any reason the Agent shall have determined (which
determination shall be conclusive absent manifest error) that it is unable to
ascertain the Federal Funds Effective Rate for any reason, including the
inability or failure of the Agent to obtain sufficient quotations in accordance
with the terms thereof, the ABR shall be determined without regard to clause (b)
of the first sentence of this definition until the circumstances giving rise to
such inability no longer exist. Any change in the ABR due to a change in the
Prime Rate or the Federal Funds Effective Rate shall be effective as of the
opening of business on the effective day of such change in the Prime Rate or the
Federal Funds Effective Rate, respectively.
"ABR Loans": Loans the rate of interest applicable to which
is based upon the ABR.
"Acquisition": the acquisition by the Company and/or any of
its Subsidiaries of the Capital Stock of BetzDearborn pursuant to
the Merger Agreement.
"Additional Credit Party": each Person that becomes a
Guarantor after the Closing Date, as provided in subsection 5.1(j).
"Affiliate": as to any specified Person, any other Person (other than
a Subsidiary) which, directly or indirectly, is in control of, is controlled by,
or is under common control with, such Person. For purposes of this definition,
"control" of a specified Person means the power, directly or indirectly, either
to (a) vote 20% or more of the securities having ordinary voting power for the
election of directors of such Person or (b) direct or cause the direction of the
management and policies of such Person whether through the ownership of voting
securities, by contract or otherwise.
"Agreement": this Agreement, as amended, supplemented or modified from
time to time.
"Applicable Margin": with respect to Eurodollar Loans and ABR Loans and
with respect to the Commitment Fee, the rate per annum applicable on any date
determined based upon the ratings applicable on such date to the Company's
long-term senior unsecured non-credit-enhanced debt securities (the "Index
Debt") by Xxxxx'x and S&P as follows:
-----------------------------------------------------------------------------------------------------------
Applicable Applicable Applicable
Margin for Margin for Margin for
Eurodollar Commitment ABR
Clause Rating Loans Fee Loans
-----------------------------------------------------------------------------------------------------------
(1) >/= BBB from S&P and >/= .550% .175% 0%
Baa2 from Xxxxx'x
(2) BBB from S&P or Baa2 .625% .200% 0%
from Xxxxx'x (but not both)
(3) BBB- from S&P and Baa3 .750% .225% 0%
from Xxxxx'x
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(4) BBB- from S&P or Baa3 1.000% .250% 0%
from Xxxxx'x (but not
both)
(5) BB+ from S&P and Ba1 1.250% .300% 0%
from Xxxxx'x
(6) BB+ from S&P or Ba1 1.750% .350% .500%
from Xxxxx'x
(but not both)
(7)
