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CREDIT AGREEMENT
Among
TYLER TECHNOLOGIES, INC.
as Borrower,
THE FINANCIAL INSTITUTIONS
NAMED IN THIS CREDIT AGREEMENT
as Banks,
BANK OF AMERICA, N.A.
as Agent for the Banks
CHASE BANK OF TEXAS, N.A.
as the Syndication Agent,
BANK ONE, TEXAS, N.A.
as the Documentation Agent,
and
BANC OF AMERICA SECURITIES LLC
as Lead Arranger and Book Manager
$100,000,000
October 1, 1999
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TABLE OF CONTENTS
ARTICLE 1. DEFINITIONS AND ACCOUNTING TERMS.......................................................1
1.1 Certain Defined Terms..................................................................1
1.2 Computation of Time Periods...........................................................17
1.3 Accounting Terms; Preparation of Financial Statements.................................17
1.4 Interpretation........................................................................18
ARTICLE 2. CREDIT FACILITIES.....................................................................18
2.1 Revolving Loan Facility...............................................................18
2.2 Letter of Credit Facility.............................................................22
2.3 Swing Line Facility...................................................................26
2.4 Fees..................................................................................27
2.5 Interest..............................................................................27
2.6 Breakage Costs........................................................................29
2.7 Increased Costs.......................................................................30
2.8 Illegality............................................................................31
2.9 Market Failure........................................................................31
2.10 Payment Procedures and Computations...................................................31
2.11 Taxes.................................................................................33
2.12 Replacement of Bank in Event of Adverse Condition.....................................35
ARTICLE 3. CONDITIONS PRECEDENT..................................................................35
3.1 Conditions Precedent to Initial Extensions of Credit..................................35
3.2 Conditions Precedent to Each Extension of Credit......................................36
ARTICLE 4. REPRESENTATIONS AND WARRANTIES........................................................37
4.1 Organization..........................................................................37
4.2 Authorization.........................................................................37
4.3 Enforceability........................................................................37
4.4 Absence of Conflicts and Approvals....................................................37
4.5 Investment Companies..................................................................38
4.6 Public Utilities......................................................................38
4.7 Financial Condition...................................................................38
4.8 Condition of Assets...................................................................38
4.9 Litigation............................................................................39
4.10 Subsidiaries..........................................................................39
4.11 Laws and Regulations..................................................................39
4.12 Environmental Compliance..............................................................39
4.13 ERISA.................................................................................40
4.14 Taxes.................................................................................40
4.15 True and Complete Disclosure..........................................................40
4.16 Year 2000.............................................................................40
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ARTICLE 5. COVENANTS.............................................................................41
5.1 Organization..........................................................................41
5.2 Reporting.............................................................................41
5.3 Inspection............................................................................43
5.4 Use of Proceeds.......................................................................43
5.5 Financial Covenants...................................................................44
5.6 Debt..................................................................................45
5.7 Liens.................................................................................45
5.8 Other Obligations.....................................................................45
5.9 Corporate Transactions................................................................46
5.10 Distributions.........................................................................47
5.11 Transactions with Affiliates..........................................................47
5.12 Insurance.............................................................................47
5.13 Investments...........................................................................48
5.14 Lines of Business.....................................................................48
5.15 Compliance with Laws..................................................................49
5.16 Environmental Compliance..............................................................49
5.17 ERISA Compliance......................................................................49
5.18 Payment of Certain Claims.............................................................49
5.19 New and Excluded Subsidiaries; Excluded Collateral....................................49
ARTICLE 6. DEFAULT AND REMEDIES..................................................................50
6.1 Events of Default.....................................................................50
6.2 Termination of Revolving Loan Commitments.............................................52
6.3 Acceleration of Credit Obligations....................................................52
6.4 Cash Collateralization of Letters of Credit...........................................52
6.5 Default Interest......................................................................52
6.6 Right of Setoff.......................................................................53
6.7 Actions Under Credit Documents........................................................53
6.8 Remedies Cumulative...................................................................53
6.9 Application of Payments...............................................................53
ARTICLE 7. THE AGENT AND THE ISSUING BANK..............................................................54
7.1 Authorization and Action..............................................................54
7.2 Reliance, Etc.........................................................................54
7.3 Affiliates............................................................................55
7.4 Bank Credit Decision..................................................................55
7.5 Expenses..............................................................................55
7.6 Indemnification.......................................................................56
7.7 Successor Agent and Issuing Bank......................................................56
7.8 Syndication Agent and Documentation Agent.............................................57
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ARTICLE 8. MISCELLANEOUS.........................................................................57
8.1 Expenses..............................................................................57
8.2 Indemnification.......................................................................57
8.3 Modifications, Waivers, and Consents..................................................57
8.4 Survival of Agreements................................................................58
8.5 Assignment and Participation..........................................................58
8.6 Notice................................................................................60
8.7 Choice of Law.........................................................................61
8.8 Forum Selection.......................................................................61
8.9 Service of Process....................................................................61
8.10 Waiver of Jury Trial..................................................................62
8.11 Counterparts..........................................................................62
8.12 No Further Agreements.................................................................62
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EXHIBITS
Exhibit A - Form of Compliance Certificate
Exhibit B - Form of Revolving Loan Borrowing Request
Exhibit C - Form of Interest Rate Election Request
Exhibit D - Form of Revolving Loan Note
Exhibit E - Form of Assignment and Acceptance
Exhibit F - Closing Documents List
Exhibit G - Form of Acquisition EBITDA Certificate
SCHEDULES
Schedule I - Administrative Information (Borrower; Agent; Banks)
Schedule II - Disclosures (Existing Debt, Investments, and Subsidiaries)
Schedule III - Certain Excluded Charges
Schedule IV - Existing Letters of Credit
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CREDIT AGREEMENT
This Credit Agreement dated as of October 1, 1999, is among Tyler
Technologies, Inc., a Delaware corporation, as Borrower, the financial
institutions named herein, as Banks, Bank of America, N.A., as Agent for the
Banks, Chase Bank of Texas, N.A., as the Syndication Agent, Bank One, Texas,
N.A., as Documentation Agent and Banc of America Securities LLC, as Lead
Arranger and Book Manager.
The parties hereto agree as follows:
ARTICLE 1. DEFINITIONS AND ACCOUNTING TERMS.
1.1 Certain Defined Terms. As used in this Agreement, the following
terms shall have the following meanings (unless otherwise indicated, such
meanings to be equally applicable to both the singular and plural forms of the
terms defined):
"Acquired Entity" means any Person or group of Persons or any related
group of assets, liabilities, or securities of any Person or group of Persons,
including any division, branch, or business unit of any Person or group of
Persons, that has been completely or substantially acquired by the Restricted
Parties in an Acquisition.
"Acquisition" means the direct or indirect purchase or acquisition,
whether in one or more related transactions, of any Person or group of Persons
or of all or substantially all of any related group of assets, liabilities, or
securities of any Person or group of Persons (excluding purchases of inventory
and equipment in the ordinary course of business).
"Acquisition EBITDA Certificate" means a certificate executed by a
Responsible Officer of the Borrower in substantially the form of Exhibit G,
certifying a detailed calculation of the consolidated Proforma EBITDA of the
Borrower.
"Adjusted Base Rate" means, for any day, the fluctuating rate per annum
of interest equal to the Applicable Margin plus the greater of (a) the Prime
Rate in effect on such day or (b) the Federal Funds Rate in effect on such day
plus 0.50%.
"Additional Commitments" has the meaning specified in Section
2.1(a)(ii).
"Affiliate" means, as to any Person, any other Person that, directly or
indirectly, through one or more intermediaries, controls, is controlled by, or
is under common control with, such Person or any Subsidiary of such Person. The
term "control" (including the terms "controlled by" or "under common control
with") means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of a Person, whether through
ownership, by contract, or otherwise.
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"Agent" means Bank of America, N.A., in its capacity as an agent
pursuant to Article 7, and any successor agent pursuant to Section 7.7.
"Agent Fee Letter" means the letter agreement dated as of September 30,
1999 between the Borrower and the Agent regarding certain fees owed by the
Borrower to the Agent in connection with this Agreement.
"Agreement" means this Credit Agreement.
"Applicable Margin" means, with respect to interest rates, unused
commitment fees, and letter of credit fees and as of any date of its
determination, the percentage amount set forth in the table below opposite the
then applicable consolidated Debt Ratio of the Borrower (determined as provided
below):
Applicable Margin
LIBOR Tranches and Applicable Margin Applicable Margin
Debt Ratio Letter of Credit Fee Base Rate Tranches Commitment Fee
---------- -------------------- ------------------ -----------------
< 1.25 2.25% 0.25% 0.50%
-
< 1.75 but > 1.25 2.50% 0.50% 0.50%
-
< 2.25 but > 1.75 2.75% 0.75% 0.50%
-
< 2.75 but > 2.25 3.00% 1.00% 0.50%
-
> 2.75 3.25% 1.25% 0.50%
Until the delivery of the December 31, 1999, financial statements to the Agent
pursuant to Section 5.2(a), the consolidated Debt Ratio of the Borrower shall be
deemed to be greater than 2.75 to 1.00 solely for the purpose of determining the
Applicable Margin. Thereafter, the consolidated Debt Ratio and the resulting
Applicable Margin shall be periodically redetermined by the Agent based upon the
most recent Compliance Certificate delivered to the Agent pursuant to Section
5.2(a) or Section 5.2(b).
Any adjustments to the Applicable Margin resulting from redetermining the
consolidated Debt Ratio of the Borrower shall become effective on the 45th day
following the last day of each fiscal quarter or on the 90th day following the
last day of each fiscal year as applicable; provided, however, that if any such
Compliance Certificate is not delivered when required hereunder, the Applicable
Margin shall be deemed to be the maximum percentage amount in each table from
such 45th or 90th day until such Compliance Certificate is received by the
Agent.
Upon any change in the Applicable Margin, the Agent shall promptly notify the
Borrower and the Banks of the new Applicable Margin.
"Applicable Lending Office" means, with respect to each Bank and for
any particular type of transaction, the office of such Bank set forth in
Schedule I to this Agreement (or in the applicable Assignment and Acceptance by
which such Bank joined this Agreement) as its applicable lending office for such
type of transaction or such other office of such Bank as such Bank may from time
to time specify in writing to the Borrower and the Agent for such particular
type of transaction.
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"Assignment and Acceptance" means an Assignment and Acceptance in
substantially the form of Exhibit E executed by an assignor Bank, an assignee
Bank, and the Agent, in accordance with Section 8.5.
"BRC" means Business Resources Corporation, a Texas corporation.
"BRC Loan Documents" means the BRC Note and the BRC Pledge Agreement
and Guaranty.
"BRC Note" means the $6,000,000 Note dated July 31, 1997 executed by
Title Records Corporation in favor of Business Records Corporation.
"BRC Pledge Agreement and Guaranty" means the Pledge Agreement and
Guaranty dated as of July 31, 1997, by BRC and GRS in favor of Business Records
Corporation.
"Bank of America" means Bank of America, N.A. in its individual
capacity.
"Banks" means the lenders listed as Banks on the signature pages of
this Agreement, each Bank that shall become a party to this Agreement pursuant
to Section 2.1(a)(ii), and each Eligible Assignee that shall become a party to
this Agreement pursuant to Section 8.5(b).
"Base Rate Tranche" shall mean any Tranche which bears interest based
upon the Adjusted Base Rate, as determined in accordance with Section 2.5.
"Borrower" means Tyler Technologies, Inc., a Delaware corporation.
"Borrower Account" means the principal operating account of Borrower
with the Agent or any other account of Borrower with the Agent which is
designated as Borrower's "Borrower Account" in writing by the Borrower to the
Agent.
"Business Day" means any Monday through Friday during which commercial
banks are open for business in Houston, Texas, Dallas, Texas, and, if the
applicable Business Day relates to any LIBOR Tranche, on which dealings are
carried on in the London interbank market.
"Capital Expenditures" means, with respect to any Person and with
respect to any period of its determination, the consolidated expenditures of
such Person during such period that are required to be included in or are
reflected by the consolidated property, plant, or equipment accounts of such
Person, or any similar fixed asset or long term capitalized asset accounts of
such Person, on the consolidated balance sheet of such Person in conformity with
generally accepted accounting principles. Capital Expenditures shall not
include, however, such expenditures deemed to have occurred as a result of any
Acquisition.
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"Capital Leases" means, with respect to any Person, any lease of any
property by such Person which would, in accordance with generally accepted
accounting principles, be required to be classified and accounted for as a
capital lease on the balance sheet of such Person.
"Change of Control" means, with respect to the Borrower (a) the direct
or indirect acquisition after the date hereof by any Person or related Persons
constituting a "group" (as the term group is defined in Rule 13d under the
Securities Exchange Act of 1934, as amended and modified) of (i) beneficial
ownership of issued and outstanding shares of Voting Securities of the Borrower,
the result of which acquisition is that such Person or such group possesses 30%
or more of the combined voting power of all then-issued and outstanding Voting
Securities of the Borrower or (ii) the power to elect, appoint, or cause the
election or appointment of at least a majority of the members of the board of
directors of the Borrower, or (b) the individuals who, at the beginning of any
period of 12 consecutive months, constitute the Borrower's board of directors
(together with any new director whose election by the Borrower's board of
directors or whose nomination for election by the Borrower's stockholders
entitled to vote thereon was approved by a vote of at least a majority of the
directors then still in office who either were directors at the beginning of
such period or whose election or nomination for election was previously so
approved) cease for any reason (other than death or disability) to constitute a
majority of the Borrower's board of directors then in office.
"CLT" means Xxxx-Layer-Xxxxxxx Company.
"Code" means the Internal Revenue Code of 1986, as amended, or any
successor statute.
"Collateral" means (a) all real property, fixtures, and equipment
comprising the Borrower's headquarters in Dallas, Texas, (b) all personal
property, all accounts, notes receivable, inventory, equipment, and general
intangibles (including contractual rights to the payment of money and
intellectual property rights), and (c) all ownership interests in the
Subsidiaries of the Borrower, in each case other than Excluded Collateral.
"Commonly Controlled Entity" means, with respect to any Person, any
other Person which is under common control with such Person within the meaning
of Section 414 of the Code.
"Compliance Certificate" means a compliance certificate executed by a
Responsible Officer of the Borrower in substantially the form of Exhibit A.
"Credit Documents" means this Agreement, the Revolving Loan Notes, the
Swing Line Note, the Letter of Credit Documents, the Guaranties, the Security
Documents, the Interest Hedge Agreements, and each other agreement, instrument,
or document executed at any time in connection with this Agreement.
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"Credit Obligations" means all principal, interest, fees,
reimbursements, indemnifications, and other amounts now or hereafter owed by the
Borrower to the Agent and the Banks (or with respect to the Interest Hedge
Agreements, any Affiliates of the Banks) under this Agreement, the Revolving
Loan Notes, the Swing Line Note, the Letter of Credit Documents, and the other
Credit Documents and any increases, extensions, and rearrangements of those
obligations under any amendments, supplements, and other modifications of the
documents and agreements creating those obligations.
"Credit Parties" means the Borrower and the Guarantors.
"Debt" means, with respect to any Person or group of Persons on a
consolidated basis, without duplication, (a) indebtedness of such Person for
borrowed money, (b) obligations of such Person evidenced by bonds, debentures,
notes, or other similar instruments, (c) obligations of such Person to pay the
deferred purchase price of property or services (other than trade debt and
normal operating liabilities incurred in the ordinary course of business), (d)
obligations of such Person as lessee under Capital Leases, (e) obligations of
such Person under or relating to letters of credit, guaranties, purchase
agreements, or other creditor assurances assuring a creditor against loss in
respect of indebtedness or obligations of others of the kinds referred to in
clauses (a) through (d) of this definition, and (f) nonrecourse indebtedness or
obligations of others of the kinds referred to in clauses (a) through (e) of
this definition secured by any Lien on or in respect of any property of such
Person. For the purposes of determining the amount of any Debt, the amount of
any Debt described in clause (e) of the definition of Debt shall be valued at
the maximum amount of the contingent liability thereunder and the amount of any
Debt described in clause (f) that is not covered by clause (e) shall be valued
at the lesser of the amount of the Debt secured or the book value of the
property securing such Debt.
"Debt Ratio" means, for any Person and as of any date of its
determination, the ratio of (i) the consolidated Debt of the Person as of end of
the fiscal quarter of such Person then most recently ended to (ii) the
consolidated Proforma EBITDA of such Person for the four fiscal quarters of such
Person then most recently ended.
"Default" means (a) an Event of Default or (b) any event or condition
which with notice or lapse of time or both would, unless cured or waived, become
an Event of Default.
"Default Rate" means, with respect to any amount due hereunder, a per
annum interest rate equal to (a) if such amount is either outstanding principal
accruing interest based upon a rate established elsewhere in this Agreement or
accrued but unpaid interest thereon, the sum of (i) the interest rate
established elsewhere in this Agreement from time to time for such principal
amount, including any applicable margin, plus (ii) 2.00% per annum or (b) in all
other cases, the Adjusted Base Rate in effect from time to time plus the
Applicable Margin for Base Rate Tranches in effect from time to time plus 2.00%
per annum.
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"Derivatives" means any swap, hedge, cap, collar, or similar
arrangement providing for the exchange of risks related to price changes in any
commodity, including money.
"Documentation Agent" means Bank One, Texas, N.A.
"Dollars or $" means lawful money of the United States of America.
"EBIT" means, with respect to any Person and for any period of its
determination, the consolidated net income of such Person for such period, plus
the consolidated interest expense and income and franchise taxes of such Person
for such period less extraordinary gains and interest income.
"EBITDA" means, with respect to any Person and for any period of its
determination, the EBIT of such Person for such period, plus the consolidated
depreciation and amortization of such Person for such period plus, with respect
to the Borrower, consolidated expenses that are listed on Schedule III for the
applicable period.
"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.
"Eligible Assignee" means, with respect to any assignment hereunder at
the time of such assignment, any commercial bank organized under the laws of the
United States or any of the countries parties to the Organization for Economic
Cooperation and Development or any political subdivision of any thereof which
has primary capital (or its equivalent) of not less than $250,000,000 and which
maintains a branch or agency in the United States which shall be designated its
Applicable Lending Office for non-LIBOR based transactions, is approved by the
Agent, and, so long as no Event of Default exists, is approved by the Borrower,
in either case, such approval not to be unreasonably withheld.
"Environmental Law" means all federal, state, and local laws, rules,
regulations, ordinances, orders, decisions, agreements, and other requirements
now or hereafter in effect relating to the pollution, destruction, loss, or
injury of the environment, the presence of any contaminant in the environment,
the protection, cleanup, remediation, or restoration of the environment, the
creation, handling, transportation, use, or disposal of any waste product in the
environment, exposure of persons to any contaminant, waste, or hazardous
substance in the environment, and the health and safety of employees in relation
to their environment.
"Event of Default" has the meaning specified in Section 6.1.
"Excluded Collateral" means (a) the stock of Government Records
Services, Inc., and Title Records Corporation and the assets of TRC which are
set forth as "Excluded Collateral" in Schedule II of the Security Agreement
which is executed in connection with this Agreement and is dated as of October
1, 1999, each until such time as the BRC Note has been paid or the BRC Pledge
Agreement and Guaranty has been terminated and (b) the stock of
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TPI and Swan and the assets of TPI and Swan, and (c) the stock of the Excluded
Subsidiaries and the assets of the Excluded Subsidiaries.
"Excluded Database Expenditures" means the Capital Expenditures of the
Borrower and the other Restricted Entities (on a consolidated basis) in the
applicable four consecutive fiscal quarters, for the development of the National
Data Repository, a national database of public records, in an amount not to
exceed, in any four consecutive fiscal quarters, $4,000,000.
"Excluded Subsidiaries" means those Subsidiaries designated on Schedule
II as Excluded Subsidiaries and the new Subsidiaries of the Borrower formed or
acquired after the date of this Agreement that the Borrower elects to treat as
Excluded Subsidiaries at the time of formation or acquisition; provided,
however, that if (a) the combined assets of the Excluded Subsidiaries exceed 5%
of the consolidated assets of the Borrower at the end of any fiscal quarter of
the Borrower or (b) the combined revenues of the Excluded Subsidiaries exceed 5%
of the consolidated revenues of the Borrower during any fiscal quarter of the
Borrower, the Borrower must select Excluded Subsidiaries to cease to be Excluded
Subsidiaries to the extent necessary to make the remaining Excluded Subsidiaries
satisfy such requirements for the applicable fiscal quarter and take the actions
set forth in Section 5.19(a) with respect to the Subsidiaries ceasing to be
Excluded Subsidiaries.
"Federal Funds Rate" means, for any period, a fluctuating per annum
interest rate equal for each day during such period to 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 for such day (or,
if such day is not a Business Day, for the next preceding 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 any such day on
such transactions received by the Agent from three Federal funds brokers of
recognized standing selected by it.
"Federal Reserve Board" means the Board of Governors of the Federal
Reserve System or any of its successors.
"Financial Statements" means the Borrower's consolidated audited and
consolidating unaudited financial statements for the fiscal years ended on
December 31, 1996, 1997, and 1998.
"GRS" means Government Records Services, Inc.
"Guaranties" means, collectively (a) the Guaranty dated as of October
1, 1999, made by the Guarantors in favor of the Agent and (b) any future
guaranties executed by the Borrower or any Subsidiaries of the Borrower, in each
case, guaranteeing the Credit Obligations.
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"Guarantors" means the Subsidiaries of the Borrower that are or become
a party to any of the Guaranties.
"Hazardous Materials" means any substance or material identified as a
hazardous substance pursuant to the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended and as now or hereafter in
effect; any substance or material regulated as a hazardous waste pursuant to the
Resource Conservation and Recovery Act of 1976, as amended and as now or
hereafter in effect; and any substance or material designated as a hazardous
substance or hazardous waste pursuant to any other Environmental Law.
"Highest Lawful Rate" means the maximum lawful interest rate, if any,
that at any time or from time to time may be contracted for, charged, or
received under the laws applicable to the relevant Bank which are presently in
effect or, to the extent allowed by law, under such applicable laws which may
hereafter be in effect and which allow a higher maximum nonusurious interest
rate than applicable laws now allow.
"Interest Hedge Agreements" means any swap, hedge, cap, collar, or
similar arrangement between the Borrower and any Bank (or any Affiliate of any
Bank) providing for the exchange of risks related to currency exchange rate
changes or to price changes in the interest rate on the Revolving Loan Advances
under this Agreement.
"Interest Period" means, with respect to each LIBOR Tranche, the period
commencing on the date of such LIBOR Tranche and ending on the last day of the
period selected by the Borrower pursuant to the provisions below. The duration
of each such Interest Period shall be one, two, three, or six months, in each
case as the Borrower may select in the applicable Revolving Loan Borrowing
Request or Interest Rate Election Request (unless there shall exist any Default
or Event of Default, in which case the Borrower may only select one month
Interest Periods); provided, however, that:
(a) whenever the last day of any Interest Period would otherwise occur
on a day other than a Business Day, the last day of such Interest Period shall
be extended to occur on the next succeeding Business Day; provided that if such
extension would cause the last day of such Interest Period to occur in the next
following calendar month, the last day of such Interest Period shall occur on
the next preceding Business Day;
(b) any Interest Period which begins on the last Business Day of the
calendar month (or on a day for which there is no numerically corresponding day
in the calendar month at the end of such Interest Period) shall end on the last
Business Day of the calendar month in which it would have ended if there were a
numerically corresponding day in such calendar month; and
(c) the Borrower may not select an Interest Period for any LIBOR
Tranche which ends after any date when outstanding principal amounts of the
Revolving Loan must be repaid unless, after giving effect to such selection, the
aggregate outstanding principal amount of
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Base Rate Tranches under the Revolving Loan and LIBOR Tranches under the
Revolving Loan having Interest Periods which end on or before such repayment
date shall be at least equal to or greater than the principal amount of the
Revolving Loan due and payable on or before such date (and therefore in no event
shall any Interest Period for any LIBOR Tranche extend beyond the Revolving Loan
Maturity Date).
"Interest Rate Election Request" means an Interest Rate Election
Request in substantially the form of Exhibit C.
"Interim Financial Statements" means the unaudited consolidated and
consolidating interim financial statements of the Borrower dated as of June 30,
1999.
"Issuing Bank" means Bank of America and any predecessor entity or bank
which becomes the successor issuing bank pursuant to Section 7.7.
"Letter of Credit" means any commercial or standby letter of credit
issued by the Issuing Bank for the account of the Borrower pursuant to the terms
of this Agreement.
"Letter of Credit Application" means the Issuing Bank's standard form
letter of credit application for either a commercial or standby letter of
credit, as the case may be, which has been executed by a Borrower and accepted
by the Issuing Bank in connection with the issuance of a Letter of Credit.
"Letter of Credit Application Amendment" means the Issuing Bank's
standard form application to amend a letter of credit for either a commercial or
standby letter of credit, as the case may be, which has been executed by a
Borrower and accepted by the Issuing Bank in connection with the increase or
extension of a Letter of Credit.
"Letter of Credit Collateral Account" means a special cash collateral
account pledged to the Agent containing cash deposited pursuant to Sections
2.2(d) or 6.4 to be maintained with the Agent in accordance with Section 2.2(g).
"Letter of Credit Documents" means all Letters of Credit, Letter of
Credit Applications, Letter of Credit Application Amendments, and agreements,
documents, and instruments entered into in connection with or relating thereto.
"Letter of Credit Exposure" means, as of any date of its determination,
the aggregate outstanding undrawn amount of Letters of Credit plus the aggregate
of the reimbursement obligations of the Borrower under the Letter of Credit
Applications and this Agreement.
"Letter of Credit Sublimit" means $5,000,000.
"LIBOR" means, for any LIBOR Tranche and its Interest Period, the rate
per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing
on Telerate Page 3750
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(or any successor page) as the London interbank offered rate for deposits in
Dollars at approximately 11:00 a.m. (London time) three Business Days prior to
the first day of such Interest Period for a term comparable to such Interest
Period. If for any reason such rate is not available, the term "LIBOR" shall
mean, for any LIBOR Tranche for any Interest Period therefor, the rate per annum
(rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on Reuters
Screen LIBO Page as the London interbank offered rate for deposits in Dollars at
approximately 11:00 a.m. (London time) three Business Days prior to the first
day of such Interest Period for a term comparable to such Interest Period;
provided, however, if more than one rate is specified on Reuters Screen LIBO
Page, the applicable rate shall be the arithmetic mean of all such rates.
"LIBOR Tranche" shall mean any Tranche which bears interest based upon
the LIBOR, as determined in accordance with Section 2.5.
"Lien" means any mortgage, lien, pledge, charge, deed of trust,
security interest, encumbrance, or other type of preferential arrangement to
secure or provide for the payment of any obligation of any Person, whether
arising by contract, operation of law, or otherwise (including any title
retention for such purposes under any conditional sale agreement, any Capital
Lease, or any other title transfer or retention agreement).
"Majority Banks" means, at any time, Banks holding more than 67% of the
then aggregate unpaid principal amount of the Revolving Loan Notes held by the
Banks and the Letter of Credit Exposure of the Banks at such time; provided that
if no such principal amount or Letter of Credit Exposure is then outstanding,
"Majority Banks" shall mean Banks having more than 67% of the aggregate amount
of the Revolving Loan Commitments at such time.
"Material Adverse Change" means any material adverse change in the
business, operations, or financial condition of the Borrower and its
Subsidiaries on a consolidated basis.
"Minimum Borrowing Amount" means $1,000,000 for each Base Rate Tranche
and $5,000,000 for each LIBOR Tranche.
"Minimum Borrowing Multiple" means $500,000 for each Base Rate Tranche
and $1,000,000 for each LIBOR Tranche.
"Minimum Tranche Amount" means $1,000,000 for each Base Rate Tranche
and $5,000,000 for each LIBOR Tranche.
"Minimum Tranche Multiple" means $500,000 for each Base Rate Tranche
and $1,000,000 for each LIBOR Tranche.
"Mortgages" means, collectively (a) the Deed of Trust dated as of
October 1, 1999, executed by BRC in favor of the Agent granting the Agent a
security interest in the real property and fixtures of BRC and (b) any future
Deeds of Trust or Mortgages made by
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Borrower or any of the Subsidiaries of the Borrower in favor of the Agent
granting the Agent a security interest in the real property or fixtures of the
Borrower or any of its Subsidiaries, in each case, to secure the Credit
Obligations.
"Net Cash Proceeds" means, the cash proceeds of a sale of a portion of
the Collateral after payment of the costs of the sale and repayment of the
Permitted Debt secured by a Permitted Lien on the Collateral which was sold.
"Net Worth" means, with respect to any Person and as of any date of its
determination, the consolidated stockholders' equity of such Person as
determined in accordance with GAAP.
"PBGC" means Pension Benefit Guaranty Corporation or its successor.
"Permitted Debt" means all of the following Debt:
(a) Debt in the form of the Credit Obligations;
(b) Debt between Credit Parties;
(c) Debt of the Borrower outstanding on the date of this Agreement that
is disclosed on Schedule II and unpaid interest which has accrued or shall
accrue on such Debt;
(d) Debt of a wholly owned Subsidiary of the Borrower that becomes a
Guarantor within 30 days of becoming a wholly owned Subsidiary, provided such
debt is fully discharged within 30 days of such wholly owned Subsidiary becoming
a Subsidiary of the Borrower;
(e) Subordinated Debt up to an aggregate outstanding amount not to
exceed $20,000,000; and
(f) Debt other than that specified above in an aggregate outstanding
amount not to exceed $10,000,000.
"Permitted Investments" means all of the following investments:
(a) (i) investments in wholly-owned Subsidiaries of the Borrower and
(ii) loans, advances, and other investments in Persons (other than those
permitted in the preceding clause (i) and paragraphs (g), (h), and (i) of the
definition of Permitted Investments) in an aggregate outstanding amount not to
exceed $2,000,000;
(b) (i) investments in the form of short term loans, guaranties, open
accounts, and other extensions of trade credit in the ordinary course of
business and (ii) expense advances to employees in the ordinary course of
business for travel and lodging;
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(c) investments in commercial paper and bankers' acceptances maturing
in twelve months or less from the date of issuance and which, at the time of
acquisition are rated A-2 or better by Standard & Poor's Corporation and P-2 or
better by Xxxxx'x Investors Services, Inc;
(d) investments in direct obligations of the United States, or
investments in any Person which investments are guaranteed by the full faith and
credit of the United States, in either case maturing in twelve months or less
from the date of acquisition thereof and repurchase agreements having a term of
less than one year and fully collateralized by such obligations which are
entered into (i) with any of the Banks, (ii) with any banks or trust companies
described in clause (e) below, or (iii) with any brokerage companies having net
worth in excess of $250,000,000;
(e) investments in demand deposits, time deposits and certificates of
deposit maturing within one year from the date such investment is made, issued
by (i) any of the Banks or (ii) any bank or trust company organized under the
laws of the United States or any state thereof having capital, surplus, and
undivided profits aggregating at least $250,000,000 or a foreign branch thereof
and whose long-term certificates of deposit are, at the time of acquisition
thereof, rated A-2 by Standard & Poor's Corporation or Prime-2 by Xxxxx'x
Investors Services, Inc.;
(f) investments in money market funds which invest solely in the types
of investments described in paragraphs (c) through (e) above;
(g) investments outstanding on the date of this Agreement that are
disclosed on Schedule II;
(h) Permitted Debt; and
(i) investments made in non wholly-owned entities provided the acquired
interest in such entity is purchased with fully paid non assessable shares of
Common Stock of the Borrower.
In valuing any investments for the purpose of applying the limitations set forth
in this Agreement, such investments shall be taken at the original cost thereof
(but without reduction for any subsequent appreciation or depreciation thereof)
less any amount actually repaid or recovered on account of capital or principal
(but without reduction for any offsetting investments made by the investee in
the investor). For purposes of this Agreement, at any time when a corporation
becomes a Subsidiary of the Borrower, all investments of such corporation at
such time shall be deemed to have been made by such corporation at such time.
"Permitted Liens" means all of the following Liens:
(a) Liens securing the Credit Obligations;
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(b) Liens securing obligations existing on the date of this Agreement
permitted under Clause (c) of the definition of Permitted Debt, provided that no
such Lien secures any Debt incurred after the date of this Agreement or is
spread to cover any property not covered by such Lien on the date of this
Agreement;
(c) Liens securing purchase money debt permitted under clause (f) of
the definition of Permitted Debt on real property, equipment, or Capital Leases,
provided that no such Lien secures any Debt other than the purchase money debt
incurred in connection with the purchase or lease of such property or is spread
to cover any property not purchased or leased in connection with the incurrence
of such purchase money debt;
(d) Liens arising in the ordinary course of business which are not
incurred in connection with the borrowing of money, the obtaining of advances or
credit, or payment of legal judgments and which do not materially detract from
the value of any Restricted Entity's assets or materially interfere with any
Restricted Entity's business, including such (i) Liens for taxes, assessments,
or other governmental charges or levies; (ii) Liens in connection with worker's
compensation, unemployment insurance, or other social security, old age pension,
or public liability obligations; (iii) Liens in the form of legal or equitable
encumbrances deemed to exist by reason of negative pledge covenants and other
covenants or undertakings of like nature; (iv) Liens in the form of vendors',
carriers', warehousemen's, repairmen's, mechanics', workmen's, materialmen's,
construction, or other like Liens arising by operation of law in the ordinary
course of business or incident to the construction or improvement of any
property; (v) Liens in the form of zoning restrictions, easements, licenses, and
other restrictions on the use of real property or minor irregularities in title
thereto which do not materially impair the use of such property in the operation
of the business of the applicable Restricted Entity or the value of such
property; and (vi) Liens in the form of precautionary financing statements that
have been filed to reflect operating leases (to the extent such filings could be
considered Liens hereunder); and
(e) Liens securing debt permitted under clause (d) or (f) of the
definition of Permitted Debt originally incurred by an Acquired Entity prior to
the Acquisition thereof on real property and equipment owned by such Acquired
Entity prior to the Acquisition thereof provided that no such Lien secures any
new Debt or is spread to cover any new property after the Acquisition thereof.
"Permitted Minor Asset Sales" means sales of assets, other than in the
ordinary course of business, that have a sales price totaling not more than
$3,000,000 in any fiscal year.
"Person" means an individual, partnership, corporation (including a
business trust), joint stock company, trust, unincorporated association, joint
venture, or other entity, or a government or any political subdivision or agency
thereof, or any trustee, receiver, custodian, or similar official.
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"Plan" means any (a) employee medical benefit plan under Section 3(1)
of ERISA, (b) employee pension benefit plan under Section 3(2) of ERISA, (c)
multiemployer plan under Section 4001(a)(3) of ERISA, and (d) employee account
benefit plan under Section 3(2) of ERISA.
"Pledge Agreements" means, collectively (a) the Pledge Agreement dated
as of October 1, 1999, made by the Borrower, Business Resources Corporation, and
Interactive Computer Designs, Inc., in favor of the Agent granting the Agent a
first lien and security interest in the stock of each Subsidiary (whether direct
or indirect) of the Borrower (other than TPI, Swan, and the Excluded
Subsidiaries) and (b) any future agreements granting the Agent a security
interest in capital stock, partnership interests, or other membership interests
of any Subsidiary (whether direct or indirect) of the Borrower, in each case, to
secure the Credit Obligations.
"Prime Rate" means, for any day, the fluctuating per annum interest
rate in effect on such day equal to the rate of interest publicly announced by
the Agent as its prime rate, whether or not the Borrower has notice thereof.
"Proforma EBITDA" means, for any Person and any period of its
determination, the consolidated EBITDA of such Person plus, to the extent not
included in EBITDA, the consolidated EBITDA of Acquired Entities calculated
pursuant to Section 1.3(c) hereof as if the Acquired Entities were owned by such
Person during the full period of determination.
"Prohibited Transaction" means any transaction set forth in Section 406
of ERISA or Section 4975 of the Code.
"ratable share" or "pro rata share" means, with respect to any Bank and
as of any date of its determination, either (a) the ratio of such Bank's
Revolving Loan Commitment at such time to the aggregate Revolving Loan
Commitments at such time or (b) if the Revolving Loan Commitments have been
terminated, the ratio of such Bank's aggregate outstanding Revolving Loan
Advances and share of the Letter of Credit Exposure at such time to the
aggregate outstanding Revolving Loan Advances and Letter of Credit Exposure at
such time.
"Register" has the meaning specified in Section 8.5(c).
"Related Parties" means, with respect to any Person, such Person's
stockholders, directors, officers, employees, agents, Affiliates, successors,
and assigns, and their respective stockholders, directors, officers, employees,
and agents, and, with respect to any Person that is an individual, such Person's
family relations and heirs.
"Reportable Event" means any of the events set forth in Section 4043 of
ERISA.
"Responsible Officer" means, with respect to any Person, such Person's
Chief Executive Officer, President, Vice President, Chief Financial Officer,
Secretary, Treasurer,
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or any other officer of such Person designated by any of the foregoing in
writing from time to time.
"Restricted Entities" means the Borrower and each Subsidiary of the
Borrower.
"Revolving Loan" means the aggregate outstanding principal amount of
the Revolving Loan Borrowings.
"Revolving Loan Advance" means the outstanding principal from a Bank
which represents such Bank's ratable share of a Revolving Loan Borrowing.
"Revolving Loan Borrowing" means any aggregate amount of principal
advanced on the same day and pursuant to the same Revolving Loan Borrowing
Request under the revolving loan facility created in Section 2.1.
"Revolving Loan Borrowing Request" means a Revolving Loan Borrowing
Request in substantially the form of Exhibit B executed by a Responsible Officer
of the Borrower and delivered to the Agent.
"Revolving Loan Commitment" means, for any Bank, the amount set forth
below such Bank's name on the signature pages of this Agreement as its Revolving
Loan Commitment, or if such Bank has entered into any Assignment and Acceptance
since the date of this Agreement, as set forth for such Bank as its Revolving
Loan Commitment in the Register maintained by the Agent pursuant to Section
8.5(c), in each case as such amount may be terminated pursuant to Section 6.2.
"Revolving Loan Commitment Maximum Amount" means $100,000,000.
"Revolving Loan Maturity Date" means October 1, 2002.
"Revolving Loan Note" means a promissory note of the Borrower payable
to the order of a Bank, in substantially the form of Exhibit D, evidencing the
indebtedness of the Borrower to such Bank resulting from Revolving Loan Advances
made by such Bank to the Borrower.
"Security Agreements" means, collectively (a) the Security Agreement
dated as of October 1, 1999, made by the Borrower and the Subsidiaries of the
Borrower (other than TPI, Swan, and the Excluded Subsidiaries) in favor of the
Agent granting the Agent a security interest in the personal property described
therein of the Borrower and such Subsidiaries and (b) any future agreements
granting the Agent a security interest in any personal property of the Borrower
or its Subsidiaries, in each case, to secure the Credit Obligations.
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"Security Documents" means the Security Agreements, the Mortgages, the
Pledge Agreements, and any other document creating or consenting to Liens in
favor of the Agent securing Credit Obligations.
"Subordinated Debt" means, as of any date of its issuance, any
unsecured indebtedness for borrowed money for which the Borrower is directly and
primarily obligated that (a) arises after the date of this Agreement, (b) does
not have any stated maturity before the latest maturity of any of the Credit
Obligations at the time incurred, (c) has terms that are no more restrictive
than the terms of the Credit Documents, and (d) is expressly subordinated to the
Credit Obligations on terms approved by the Agent and the Majority Banks in
their sole discretion, including payment subordination, remedy subordination,
and related terms satisfactory to the Agent and the Majority Banks in their sole
discretion.
"Subsidiary" means, with respect to any Person, any other Person, a
majority of whose outstanding Voting Securities (other than directors'
qualifying shares) shall at any time be owned by such Person or one or more
Subsidiaries of such person.
"Swan" means Swan Transportation Company, a Delaware corporation.
"Swing Line Lender" means Bank of America.
"Swing Line Loan" means the aggregate outstanding principal amount of
the advances made under the Swing Line Note.
"Swing Line Note" means the promissory note of the Borrower in the
principal amount of $5,000,000 payable to the order of the Swing Line Lender
evidencing the indebtedness of the Borrower to the Swing Line Lender resulting
from advances to the Borrower under the line of credit created thereunder as
described in Section 2.3.
"Syndication Agent" means Chase Bank of Texas, N.A.
"TPI" means TPI of Texas, Inc., a Delaware corporation.
"TPI/Swan Litigation" has the meaning specified in Section 4.9.
"Tranche" means any tranche of principal outstanding under the
Revolving Loan accruing interest on the same basis whether created in connection
with new advances of principal under the Revolving Loan pursuant to Section 2.5
or by the continuation or conversion of existing tranches of principal under the
Revolving Loan pursuant to Section 2.5 and shall include any Base Rate Tranche
or LIBOR Tranche.
"Voting Securities" means (a) with respect to any corporation, any
capital stock of the corporation having general voting power under ordinary
circumstances to elect directors of such corporation, (b) with respect to any
partnership, any partnership interest having
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general voting power under ordinary circumstances to elect the general partner
or other management of the partnership, and (c) with respect to any other
Person, such ownership interests in such Person having general voting power
under ordinary circumstances to elect the management of such Person, in each
case irrespective of whether at the time any other class of stock, partnership
interests, or other ownership interest might have special voting power or rights
by reason of the happening of any contingency.
1.2 Computation of Time Periods. In this Agreement in the computation
of periods of time from a specified date to a later specified date, the word
"from" means "from and including" and the words "to" and "until" each means "to
but excluding."
1.3 Accounting Terms; Preparation of Financial Statements.
(a) All accounting terms, definitions, ratios, and other tests
described herein shall be construed in accordance with United States generally
accepted accounting principles applied on a consistent basis with those applied
in the preparation of the Financial Statements, except as expressly set forth in
this Agreement.
(b) The Restricted Entities shall prepare their financial
statements in accordance with United States generally accepted accounting
principles applied on a consistent basis with those applied in the preparation
of the Financial Statements, unless otherwise approved in writing by the Agent.
(c) The Restricted Entities shall prepare all proforma
financial statements and certificates reflecting Acquisitions, including
Acquisition EBITDA Certificates and Compliance Certificates reflecting the
effects of Acquisitions pursuant to the definition of "Applicable Margin" or for
the purposes of Section 5.5, in accordance with the requirements established by
the Securities and Exchange Commission for acquisition accounting for reported
acquisitions by public companies, whether or not the applicable Acquisitions are
required to be publicly reported, and applying such requirements to make such
proforma financial statements and certificates reflect the accounting procedures
used in the preparation of the regular financial statements of the Restricted
Entities unless otherwise approved in writing by the Agent. All applications of
the foregoing requirements regarding proforma financial statements and
certificates must be approved by the Agent.
(d) References to "consolidated financial statements" shall
include income statements, balance sheets, and statements of cash flow, but
references to "consolidating financial statements" shall include income
statements and balance sheets but shall not include statements of cash flow.
1.4 Interpretation. Article, Section, Schedule, and Exhibit references
are to this Agreement, unless otherwise specified. All references to
instruments, documents, contracts, and agreements are references to such
instruments, documents, contracts, and agreements as the same may be amended,
supplemented, and otherwise modified from time to time, unless
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otherwise specified. The word "including" shall mean "including but not limited
to." The word "or" shall mean "and/or" wherever necessary to prevent
interpretation of any provision against the Agent or the Banks. Whenever the
Borrower has an obligation under this Agreement and the Credit Documents the
expense of complying with that obligation shall be an expense of the Borrower
unless otherwise specified. Whenever any determination is to be made by the
Agent or any Bank, such determination shall be in such Person's sole discretion
unless otherwise specified in this Agreement. If any provision in this Agreement
and the Credit Documents is held to be illegal, invalid, not binding, or
unenforceable, such provision shall be fully severable and this Agreement and
the Credit Documents shall be construed and enforced as if such illegal,
invalid, not binding, or unenforceable provision had never comprised a part of
this Agreement and the Credit Documents, and the remaining provisions shall
remain in full force and effect. This Agreement and the Credit Documents have
been reviewed and negotiated by sophisticated parties with access to legal
counsel and shall not be construed against the drafter. In the event of a
conflict between this Agreement and any other Credit Documents, this Agreement
shall control.
ARTICLE 2. CREDIT FACILITIES.
2.1 Revolving Loan Facility.
(a) (i) Revolving Loan Commitments. Each Bank severally
agrees, on the terms and conditions set forth in this Agreement and for the
purposes set forth in Section 5.4, to make Revolving Loan Advances to the
Borrower as such Bank's ratable share of Revolving Loan Borrowings requested by
the Borrower from time to time on any Business Day during the period from the
date of this Agreement until the Revolving Loan Maturity Date provided that the
aggregate outstanding principal amount of (x) the Revolving Loan Advances made
by such Bank (excluding the Bank's ratable share of the requested Revolving Loan
Advance which is to be applied to repayment of the Swing Line Loan and/or the
reduction of the Letter of Credit Exposure) plus (y) such Bank's ratable share
of the Swing Line Loan plus (z) such Bank's ratable share of the Letter of
Credit Exposure shall not exceed such Bank's Revolving Loan Commitment.
Revolving Loan Borrowings must be made in an amount equal to or greater than the
Minimum Borrowing Amount and be made in multiples of the Minimum Borrowing
Multiple. Within the limits expressed in this Agreement, the Borrower may from
time to time borrow, prepay, and reborrow Revolving Loan Borrowings. The
indebtedness of the Borrower to the Banks resulting from the Revolving Loan
Advances made by the Banks shall be evidenced by Revolving Loan Notes made by
the Borrower.
(ii) Increases of Revolving Loan Commitments. The
Borrower shall have the right, without the consent of the Banks but subject to
the approval of the Agent, to obtain additional Revolving Loan Commitments (the
"Additional Commitments"), by either adding to this Agreement as additional
Banks one or more Persons who meet all of the qualifications of an Eligible
Assignee, or by obtaining from one or more Banks an increase in such Bank's
Revolving Loan Commitment. All Additional Commitments that are received shall be
applied as follows: (x) 50% of the first $20,000,000 of such Additional
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Commitments shall be used to replace and reduce Bank of America's Revolving Loan
Commitment and the other 50% of the first $20,000,000 of such Additional
Commitments shall be used to increase the aggregate amount of the Revolving Loan
Commitments and (y) after the first $20,000,000 of Additional Commitments has
been received then any subsequent Additional Commitments shall increase the
aggregate amount of the Revolving Loan Commitments; provided, however, that no
increase in the Revolving Loan Commitments pursuant to this paragraph shall
cause the aggregate outstanding amount of the Revolving Loan Commitments to
exceed the Revolving Loan Commitment Maximum Amount less the aggregate amount of
all reductions and terminations of the Revolving Loan Commitments effectuated
pursuant to paragraph (iii) below. The Borrower shall give to the Agent at least
5 Business Days advance notice of the Borrower's intention to obtain Additional
Commitments pursuant to this paragraph. Such notice shall specify each new Bank
or increasing Bank, the changes in the Revolving Loan Commitments that will
result, and such other information as is reasonably requested by the Agent. Each
new Bank or Bank agreeing to increase its Revolving Loan Commitment shall
execute and deliver to the Agent a document satisfactory to the Agent pursuant
to which it becomes a party hereto or increases its Revolving Loan Commitment,
as the case may be, and for a new Bank specifies the administrative information
that would be required in an Assignment and Acceptance. In addition, the
Borrower shall execute and deliver appropriate Revolving Loan Notes reflecting
the new Revolving Loan Commitments. Only upon the execution and delivery of all
of the above described documents, shall any such new Bank constitute a "Bank"
hereunder, or shall any Bank increasing such Bank's Revolving Loan Commitment
have its Revolving Loan Commitment so increased, as the case may be. Upon
delivery of the above described documents, the Agent shall record the new
Revolving Loan Commitments in the Register and reallocate all outstanding
Revolving Loan Advances and all participation interests in Letters of Credit so
that the Banks hold such Revolving Loan Advances and participation interests in
Letters of Credit ratably. Each such reallocation is subject to Section 2.6.
(iii) Reduction of Revolving Loan Commitments
(A) In connection with any prepayment under
Section 2.1(c)(i), the Revolving Loan Commitments shall be reduced by an amount
equal to the amount of such prepayment, with each Bank's Revolving Loan
Commitment reduced pro rata. Any termination or reduction of the Revolving Loan
Commitments pursuant to this paragraph shall be permanent, with no obligation of
the Banks to reinstate such reduced Revolving Loan Commitments.
(B) The Borrower shall have the right, upon
at least 5 Business Days advance notice to the Agent, to reduce ratably in part
or terminate in whole the Revolving Loan Commitments. Each such notice shall
specify the amount of the termination or reduction and shall be irrevocable and
binding on the Borrower. Partial reductions shall be in a minimum amount of
$5,000,000 and be made in integral multiples of $5,000,000. In the event of any
partial reduction, each Bank's Revolving Loan Commitment shall be reduced pro
rata. The Revolving Loan Commitments cannot be reduced
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below the amount of the Revolving Loan plus the Letter of Credit Exposure. Any
termination or reduction of the Revolving Loan Commitments pursuant to this
paragraph shall be permanent, with no obligation of the Banks to reinstate such
reduced or terminated Revolving Loan Commitments.
(b) Method of Advancing
(i) Each Revolving Loan Borrowing shall be made
pursuant to a Revolving Loan Borrowing Request given by the Borrower to the
Agent in writing or by telecopy not later than the time required pursuant to
Section 2.5 to select the interest rate basis for the Revolving Loan Borrowing.
Each Revolving Loan Borrowing Request shall be fully completed and shall specify
the information required therein, and shall be irrevocable and binding on the
Borrower. If the Revolving Loan Borrowing Request is accepted by the Agent, the
Agent shall promptly forward notice of the Revolving Loan Borrowing to the
Banks. Each Bank shall, before 2:00 p.m. (local time at the Applicable Lending
Office of the Agent) on the date of the requested Revolving Loan Borrowing, make
available from its Applicable Lending Office to the Agent at the Agent's
Applicable Lending Office, in immediately available funds, such Bank's ratable
share of such Revolving Loan Borrowing. Subject to the satisfaction of all
applicable conditions precedent, after receipt by the Agent of such funds, the
Agent shall before close of business on the date requested for such Revolving
Loan Borrowing make such Revolving Loan Borrowing available to the Borrower in
immediately available funds at the Borrower Account.
(ii) Unless the Agent shall have received notice from
a Bank before the date of any Revolving Loan Borrowing that such Bank shall not
make available to the Agent such Bank's ratable share of such Revolving Loan
Borrowing, the Agent may assume that such Bank has made its ratable share of
such Revolving Loan Borrowing available to the Agent on the date of such
Revolving Loan Borrowing in accordance with paragraph (i) above and the Agent
may, in reliance upon such assumption, make available to the Borrower on such
date a corresponding amount. If and to the extent that such Bank shall not have
so made its ratable share of such Revolving Loan Borrowing available to the
Agent, such Bank agrees that it shall pay interest on such amount for each day
from the date such amount is made available to the Borrower by the Agent until
the date such amount is paid to the Agent by such Bank at the Federal Funds Rate
in effect from time to time, provided that with respect to such Bank if such
amount is not paid by such Bank by the end of the second day after the Agent
makes such amount available to the Borrower, the interest rates specified above
shall be increased by a per annum amount equal to 2.00% on the third day and
shall remain at such increased rate thereafter. Interest on such amount shall be
due and payable by such Bank upon demand by the Agent. If such Bank shall pay to
the Agent such amount and interest as provided above, such amount so paid shall
constitute such Bank's Revolving Loan Advance as part of such Revolving Loan
Borrowing for all purposes of this Agreement even though not made on the same
day as the other Revolving Loan Advances comprising such Revolving Loan
Borrowing. In the event that such Bank has not repaid such amount by the end of
the third day after such amount was made available to the Borrower, the
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Borrower agrees to repay to the Agent on demand such amount, together with
interest on such amount for each day from the date such amount was made
available to the Borrower until the date such amount is repaid to the Agent at
the interest rate charged to the Borrower for such Revolving Loan Borrowing
under the terms of this Agreement.
(iii) The failure of any Bank to make available its
ratable share of any Revolving Loan Borrowing shall not relieve any other Bank
of its obligation, if any, to make available its ratable share of such Revolving
Loan Borrowing. No Bank shall be responsible for the failure of any other Bank
to honor such other Bank's obligations hereunder, including any failure to make
available any funds as part of any Revolving Loan Borrowing.
(c) Prepayment.
(i) The Borrower shall make mandatory prepayments of
principal in an amount equal to (x) 100% of the Net Cash Proceeds of any asset
sale (other than those described below) by the Restricted Entities, including
the sale of any capital stock in any Subsidiary of the Borrower, (y) less the
amount of such Net Cash Proceeds that is reinvested in capital assets of the
Credit Parties within 180 days of such asset sale and is subject to the Liens
created by the Security Documents. In connection with any such prepayment, the
Revolving Loan Commitments shall be reduced in accordance with Section
2.1(a)(iii)(A). In connection with any such mandatory prepayment, the Borrower
shall provide notice to the Agent in writing or by telecopy not later than 11:00
a.m. (local time at the Applicable Lending Office of the Agent) on the 5th
Business Day before the date of the proposed prepayment. Each such notice shall
specify the principal amount and Tranches of the Revolving Loan which shall be
prepaid, the date of the prepayment, and shall be irrevocable and binding on the
Borrower. The foregoing prepayment requirement shall not apply to the sale of
capital stock of the Borrower or Permitted Minor Asset Sales.
(ii) The Borrower may prepay the outstanding
principal amount of the Revolving Loan pursuant to written notice given by the
Borrower to the Agent in writing or by telecopy not later than the time that
would be required to elect an interest rate basis for a new Revolving Loan
Borrowing comprised of the type of Tranche being prepaid. Each such notice shall
specify the principal amount and Tranches of the Revolving Loan which shall be
prepaid, the date of the prepayment, and shall be irrevocable and binding on the
Borrower. Prepayments of the Revolving Loan shall be made in integral multiples
of the Minimum Borrowing Multiple. If the prepayment would cause the aggregate
outstanding principal amount of any LIBOR Tranche comprising all or any part of
the Revolving Loan or the aggregate outstanding principal amount of all Base
Rate Tranches comprising all or any part of the Revolving Loan, to be less than
the Minimum Tranche Amount, the prepayment must be in an amount equal to the
entire outstanding principal amount of such LIBOR Tranche under the Revolving
Loan or the entire outstanding principal amount of all Base Rate Tranches under
the Revolving Loan, as the case may be.
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(iii) Upon receipt of any notice of prepayment, the
Agent shall give prompt notice of the intended prepayment to the Banks. For each
such notice given by the Borrower, the Borrower shall prepay the Revolving Loan
in the specified amount on the specified date as set forth in such notice. The
Borrower shall have no right to prepay any principal amount of the Revolving
Loan except as provided in this Section 2.1(c).
(iv) Each prepayment of principal of any Tranche
under the Revolving Loan pursuant to this Section 2.1(c) shall be accompanied by
payment of all accrued but unpaid interest on the principal amount prepaid and
any amounts required to be paid pursuant to Section 2.5 as a result of such
prepayment.
(d) Repayment. The Borrower shall pay to the Agent for the
ratable benefit of the Banks the aggregate outstanding principal amount of the
Revolving Loan on the Revolving Loan Maturity Date.
2.2 Letter of Credit Facility.
(a) Commitment for Letters of Credit. The Issuing Bank shall,
on the terms and conditions set forth in this Agreement and for the purposes set
forth in Section 5.4, issue, increase, and extend Letters of Credit at the
request of the Borrower from time to time on any Business Day during the period
from the date of this Agreement until the Revolving Loan Maturity Date provided
that (i) the Letter of Credit Exposure shall not exceed the Letter of Credit
Sublimit and (ii) the aggregate outstanding principal amount of Revolving Loan
Borrowings plus the Letter of Credit Exposure plus the Swing Line Loan shall not
exceed the aggregate amount of the Revolving Loan Commitments. No Letter of
Credit may have an expiration date later than 12 months after its issuance date,
and each Letter of Credit which is self-extending beyond its expiration date
must be cancelable upon no more than 60 days notice given by the Issuing Bank to
the beneficiary of such Letter of Credit. No Letter of Credit may have an
expiration date later than 12 months after the Revolving Loan Maturity Date
unless approved by the Issuing Bank, the Agent, and the Banks. Each Letter of
Credit must be in form and substance acceptable to the Issuing Bank. The
indebtedness of the Borrower to the Issuing Bank resulting from Letters of
Credit requested by the Borrower shall be evidenced by the Letter of Credit
Applications made by the Borrower.
(b) Requesting Letters of Credit. Each Letter of Credit shall
be issued, increased, or extended pursuant to a Letter of Credit Application or
Letter of Credit Application Amendment, as applicable, given by the Borrower to
the Issuing Bank in writing or by telecopy promptly confirmed in writing, such
Letter of Credit Application or Letter of Credit Application Amendment being
given not later than 11:00 a.m. (local time at the Applicable Lending Office of
the Agent) on the third Business Day before the date of the proposed issuance,
increase, or extension of the Letter of Credit. Each Letter of Credit
Application or Letter of Credit Application Amendment shall be fully completed
and shall specify the information required therein (including the proposed form
of the Letter of Credit or change thereto), and shall be irrevocable and binding
on the Borrower. If the Issuing Bank
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accepts the Letter of Credit Application or Letter of Credit Application
Amendment, the Issuing Bank shall give prompt notice thereof to the Agent, and
the Agent shall promptly inform the Banks of the proposed Letter of Credit or
change thereto. Subject to the satisfaction of all applicable conditions
precedent, the Issuing Bank shall before close of business on the date requested
by the Borrower for the issuance, increase, or extension of such Letter of
Credit issue, increase, or extend such Letter of Credit to the specified
beneficiary. Upon the date of the issuance, increase, or extension of a Letter
of Credit, the Issuing Bank shall be deemed to have sold to each other Bank and
each other Bank shall be deemed to have purchased from the Issuing Bank a
ratable participation in the related Letter of Credit or change thereto. The
Issuing Bank shall notify the Agent of each Letter of Credit issued, increased,
or extended and the date and amount of each Bank's participation in such Letter
of Credit, and the Agent shall in turn notify the Banks.
(c) Reimbursements for Letters of Credit. With respect to any
Letter of Credit and in accordance with the related Letter of Credit
Application, the Borrower agrees to pay to the Issuing Bank on demand of the
Issuing Bank any amount due to the Issuing Bank under such Letter of Credit
Application (provided that fees due with respect to such Letter of Credit shall
be payable as specified in Section 2.4(b)). If the Borrower does not pay upon
demand of the Issuing Bank any amount due to the Issuing Bank under any Letter
of Credit Application, in addition to any rights the Issuing Bank may have under
such Letter of Credit Application, the Issuing Bank may upon written notice to
the Agent request the satisfaction of such obligation by the making of a
Revolving Loan Borrowing. Upon such request, the Borrower shall be deemed to
have requested the making of a Revolving Loan Borrowing in the amount of such
obligation and the transfer of the proceeds thereof to the Issuing Bank. Such
Revolving Loan Borrowing shall be comprised of a Base Rate Tranche. The Agent
shall promptly forward notice of such Revolving Loan Borrowing to the Borrower
and the Banks, and each Bank shall, in accordance with the procedures of Section
2.1(b), other than limitations on the size of Revolving Loan Borrowings, and
notwithstanding the failure of any conditions precedent, make available such
Bank's ratable share of such Revolving Loan Borrowing to the Agent, and the
Agent shall promptly deliver the proceeds thereof to the Issuing Bank for
application to such Bank's share of the obligations under such Letter of Credit.
The Borrower hereby unconditionally and irrevocably authorizes, empowers, and
directs the Issuing Bank to make such requests for Revolving Loan Borrowings on
behalf of the Borrower, and the Banks to make Revolving Loan Advances to the
Agent for the benefit of the Issuing Bank in satisfaction of such obligations.
The Agent and each Bank may record and otherwise treat the making of such
Revolving Loan Borrowings as the making of Revolving Loan Borrowings to the
Borrower under this Agreement as if requested by the Borrower. Nothing herein is
intended to release the Borrower's obligations under any Letter of Credit
Application, but only to provide an additional method of payment therefor. The
making of any Revolving Loan Borrowing under this Section 2.2(c) shall not
constitute a cure or waiver of any Default or Event of Default caused by the
Borrower's failure to comply with the provisions of this Agreement or any Letter
of Credit Application.
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(d) Prepayments of Letters of Credit. In the event that any
Letters of Credit shall be outstanding according to their terms after the
Revolving Loan Maturity Date, the Borrower shall pay to the Agent an amount
equal to the Letter of Credit Exposure allocable to such Letters of Credit to be
held in the Letter of Credit Collateral Account and applied in accordance with
paragraph (g) below.
(e) Obligations Unconditional. The obligations of the Borrower
and each Bank under this Agreement and the Letter of Credit Applications to make
payments as required to reimburse the Issuing Bank for draws under Letters of
Credit and to make other payments due in respect of Letters of Credit shall be
unconditional and irrevocable, and shall be paid strictly in accordance with the
terms of this Agreement and the Letter of Credit Applications under all
circumstances, including: (i) any lack of validity or enforceability of any
Letter of Credit Document; (ii) any amendment, waiver, or consent to departure
from any Letter of Credit Document; (iii) the existence of any claim, set-off,
defense, or other right which the Borrower or any Bank may have at any time
against any beneficiary or transferee of any Letter of Credit (or any Persons
for whom any such beneficiary or any such transferee may be acting), the Issuing
Bank, or any other person or entity, whether in connection with the transactions
contemplated in this Agreement or any unrelated transaction; (iv) any statement
or any other document presented under such Letter of Credit proving to be
forged, fraudulent, invalid, or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect; or (v) payment by the Issuing
Bank under any Letter of Credit against presentation of a draft or certificate
which does not comply with the terms of such Letter of Credit; provided,
however, that nothing contained in this paragraph (d) shall be deemed to
constitute a waiver of any remedies of the Borrower or any Bank in connection
with the Letters of Credit or the Borrower's or such Bank's rights under
paragraph (f) below.
(f) Liability of Issuing Bank. The Issuing Bank shall not be
liable or responsible for: (i) the use which may be made of any Letter of Credit
or any acts or omissions of any beneficiary or transferee in connection
therewith; (ii) the validity, sufficiency, or genuineness of documents related
to Letters of Credit, or of any endorsement thereon, even if such documents
should prove to be in any or all respects invalid, insufficient, fraudulent, or
forged; (iii) payment by the Issuing Bank against presentation of documents
which do not strictly comply with the terms of a Letter of Credit, including
failure of any documents to bear any reference or adequate reference to the
relevant Letter of Credit; or (iv) any other circumstances whatsoever in making
or failing to make payment under any Letter of Credit (INCLUDING THE ISSUING
BANK'S OWN NEGLIGENCE); except that the Issuing Bank shall be liable to the
Borrower or any Bank to the extent of any direct, as opposed to consequential,
damages suffered by the Borrower or such Bank which the Borrower or such Bank
proves were caused by (A) the Issuing Bank's gross negligence or willful
misconduct in determining whether documents presented under a Letter of Credit
comply with the terms of such Letter of Credit or (B) the Issuing Bank's willful
failure to make or delay in making lawful payment under any Letter of Credit
after the presentation to it of documentation strictly complying with the terms
and conditions of such Letter of Credit.
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(g) Letter of Credit Collateral Account.
(i) If the Borrower is required to deposit funds in
the Letter of Credit Collateral Account pursuant to Sections 2.2(d) or 6.4, then
the Borrower and the Agent shall establish the Letter of Credit Collateral
Account and the Borrower shall execute any documents and agreements, including
the Agent's standard form assignment of deposit accounts, that the Agent
requests in connection therewith to establish the Letter of Credit Collateral
Account and grant the Agent a first priority security interest in such account
and the funds therein. The Borrower hereby pledges to the Agent and grants the
Agent a security interest in the Letter of Credit Collateral Account, whenever
established, all funds held in the Letter of Credit Collateral Account from time
to time, and all proceeds thereof as security for the payment of the
Obligations.
(ii) Funds held in the Letter of Credit Collateral
Account shall be held as cash collateral for obligations with respect to Letters
of Credit and promptly applied by the Agent at the request of the Issuing Bank
to any reimbursement or other obligations under Letters of Credit that exist or
occur. To the extent that any surplus funds are held in the Letter of Credit
Collateral Account above the Letter of Credit Exposure, during the existence of
an Event of Default the Agent may (A) hold such surplus funds in the Letter of
Credit Collateral Account as cash collateral for the Credit Obligations or (B)
apply such surplus funds to any Credit Obligations in accordance with Section
6.9. If no Default exists, the Agent shall release to the Borrower at the
Borrower's written request any funds held in the Letter of Credit Collateral
Account above the amounts required by Section 2.2(d).
(iii) Funds held in the Letter of Credit Collateral
Account shall be invested in money market funds of the Agent or in another
investment if mutually agreed upon by the Borrower and the Agent, but the Agent
shall have no other obligation to make any other investment of the funds
therein. The Agent shall exercise reasonable care in the custody and
preservation of any funds held in the Letter of Credit Collateral Account and
shall be deemed to have exercised such care if such funds are accorded treatment
substantially equivalent to that which the Agent accords its own property, it
being understood that the Agent shall not have any responsibility for taking any
necessary steps to preserve rights against any parties with respect to any such
funds.
(h) Existing Letters of Credit. There are no existing letters
of credit other than those listed on Schedule IV. All letters of credit listed
on Schedule IV shall be treated as Letters of Credit issued pursuant to the
provisions of this Agreement and from the effective date of this Agreement they
shall be governed by the provisions hereof.
2.3 Swing Line Facility.
(a) Commitment. The Swing Line Lender agrees, on the terms and
conditions set forth in the Swing Line Note, to make advances to the Borrower
under the Swing Line Note. No Bank shall have any rights thereunder (but each
Bank shall have the
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obligation to reimburse the Swing Line Lender in accordance with paragraph (b)
below). The indebtedness of the Borrower to the Swing Line Lender resulting from
the advances under the Swing Line Note made by the Swing Line Lender shall be
evidenced by the Swing Line Note made by the Borrower.
(b) Reimbursements for Swing Line Loan Obligations. With
respect to the Swing Line Loan and the interest, premium, fees, and other
amounts owed by the Borrower to the Swing Line Lender in connection with the
Swing Line Note, and in accordance with the terms of the Swing Line Note, the
Borrower agrees to pay to the Swing Line Lender such amounts when due and
payable to the Swing Line Lender under the Swing Line Note. If the Borrower does
not pay to the Swing Line Lender any such amounts when due and payable to the
Swing Line Lender under the Swing Line Note, in addition to any rights the Swing
Line Lender may have under such Swing Line Note, the Swing Line Lender may upon
written notice to the Agent request the satisfaction of such obligation by the
making of a Revolving Loan Borrowing in the amount of any such amounts not paid
when due and payable. Concurrently with such notice to the Agent, the Swing Line
Lender will use reasonable efforts to provide like notice to the Borrower,
provided that failure to provide such notice to the Borrower at such time shall
not invalidate the effectiveness of such request for a Revolving Loan Borrowing.
Upon such request, the Borrower shall be deemed to have requested the making of
a Revolving Loan Borrowing in the amount of such obligation and the transfer of
the proceeds thereof to the Swing Line Lender. Such Revolving Loan Borrowing
shall be a Base Rate Tranche. The Agent shall promptly forward notice of such
Revolving Loan Borrowing to the Borrower and the Banks, and each Bank shall, in
accordance with the procedures of Section 2.1(b), other than limitations on the
size of Revolving Loan Borrowings, and notwithstanding the failure of any
conditions precedent, make available such Bank's ratable share of such Revolving
Loan Borrowing to the Agent, and the Agent shall promptly deliver the proceeds
thereof to the Swing Line Lender for application to such amounts owed to the
Swing Line Lender. The Borrower hereby unconditionally and irrevocably
authorizes, empowers, and directs the Swing Line Lender to make such requests
for Revolving Loan Borrowings on behalf of the Borrower, and the Banks to make
Revolving Loan Advances to the Agent for the benefit of the Swing Line Lender in
satisfaction of such obligations. The Agent and each Bank may record and
otherwise treat the making of such Revolving Loan Borrowings as the making of a
Revolving Loan Borrowing to the Borrower under this Agreement as if requested by
the Borrower. Nothing herein is intended to release the Borrower's obligations
under the Swing Line Note, but only to provide an additional method of payment
therefor. The making of any Borrowing under this Section 2.3(b) shall not
constitute a cure or waiver of any Default or Event of Default, other than the
payment Default or Event of Default which is satisfied by the application of the
amounts deemed advanced hereunder, caused by the Borrower's failure to comply
with the provisions of this Agreement or the Swing Line Note.
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2.4 Fees.
(a) Unused Revolving Loan Commitment Fees. The Borrower shall
pay to the Agent for the ratable benefit of the Banks an unused commitment fee
for each day in an amount equal to the product of the Applicable Margin for
unused commitment fees in effect from time to time multiplied by the amount by
which (i) the aggregate amount of the Revolving Loan Commitments exceeds (ii)
the aggregate outstanding principal amount of the Revolving Loan plus the Letter
of Credit Exposure. The unused commitment fee shall be due and payable in
arrears on the last day of each calendar quarter and the Revolving Loan Maturity
Date.
(b) Fees for Letters of Credit. For each Letter of Credit
issued by the Issuing Bank, the Borrower shall pay to the Agent for the ratable
benefit of the Banks a letter of credit fee equal to the Applicable Margin for
Letter of Credit fees per annum on the face amount of such Letter of Credit for
the stated term of such Letter of Credit with a minimum fee of $400. In
addition, for each Letter of Credit issued by the Issuing Bank, the Borrower
shall pay to the Agent for the benefit of the Issuing Bank a fronting fee of
0.125% per annum on the face amount of such Letter of Credit for the stated term
of such Letter of Credit. The Borrower shall pay such letter of credit fees for
each Letter of Credit quarterly in arrears within ten days after when billed
therefor by the Issuing Bank.
(c) Agent Fee Letter. The Borrower shall pay to the Agent the
fees and other amounts payable under the Agent Fee Letter.
2.5 Interest.
(a) Election of Interest Rate Basis. The Borrower may select
the interest rate basis for portions of the outstanding principal amount of the
Loan by creating Base Rate Tranches and LIBOR Tranches by providing the Agent
with written notice of the interest rate election requirements in a Revolving
Loan Borrowing Request or an Interest Rate Election Request not later than (i)
11:00 a.m. (local time at the Applicable Lending Office of the Agent) on the
effective date of any interest rate election creating only Base Rate Tranches
from a new Revolving Loan Borrowing or (ii) 11:00 a.m. (local time at the
Applicable Lending Office of the Agent) on the third Business Day before the
effective date of any interest rate election creating or converting the interest
rate basis of any LIBOR Tranche, in each case, confirmed in writing before 5:00
p.m. on the day of such telephonic notice. Each request shall be fully
completed, shall specify the information required therein, and shall be
irrevocable and binding on the Borrower. The Agent shall promptly forward notice
of the interest rate election to the Banks and shall notify the Borrower of the
applicable interest rate. Each election shall cause the principal amount of each
Tranche to be equal to or greater than the Minimum Tranche Amount and to be in
multiples of the Minimum Tranche Multiple. At no time shall there be more than
five separate LIBOR Tranches outstanding. Any conversion of an existing LIBOR
Tranche is subject to Section 2.6. Subject to the satisfaction of all applicable
conditions precedent, the Banks shall before close of business on the date
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requested by the Borrower make effective the applicable interest rate election.
If at the end of the Interest Period for any LIBOR Tranche the Borrower has not
elected a new interest rate basis for such outstanding principal, such
outstanding principal shall become a Base Rate Tranche. Each Base Rate Tranche
shall continue as a Base Rate Tranche until a different interest rate basis is
elected by the Borrower.
(b) LIBOR Tranches. Each LIBOR Tranche shall bear interest
during its Interest Period at a per annum interest rate equal to the LIBOR for
such LIBOR Tranche plus the Applicable Margin for LIBOR Tranches in effect from
time to time. Interest for LIBOR Tranches shall be calculated on the basis of a
360 day year for the actual number of days elapsed. The Borrower shall pay to
the Agent for the ratable benefit of the Banks all accrued but unpaid interest
on each LIBOR Tranche on the last day of the applicable Interest Period for such
LIBOR Tranche (and with respect to LIBOR Tranches with Interest Periods of
greater than three months, on the date which is three months after the first
date of the Interest Period for such LIBOR Tranche), on any date when the
interest rate basis of any portion of such LIBOR Tranche is converted or such
LIBOR Tranche is prepaid or repaid (but only on the amount so converted,
prepaid, or repaid), and on the Revolving Loan Maturity Date.
(c) Base Rate Tranches. Each Base Rate Tranche shall bear
interest at a per annum interest rate equal to the Adjusted Base Rate in effect
from time to time plus the Applicable Margin for Base Rate Tranches in effect
from time to time. Any change in the interest rate accruing on a Base Rate
Tranche resulting from a change in the Prime Rate shall become effective as of
the opening of business on the day on which such change in the Prime Rate shall
occur. Interest for Base Rate Tranches shall be calculated on the basis of a
365/366 day year for the actual number of days elapsed. The Borrower shall pay
to the Agent for the ratable benefit of the Banks all accrued but unpaid
interest on outstanding Base Rate Tranches on the last day of each calendar
quarter, on any date all Base Rate Tranches under this revolving facility are
prepaid or repaid in full, and on the Revolving Loan Maturity Date.
(d) Usury Protection.
(i) If, with respect to any Bank and the Borrower,
the effective rate of interest contracted for by such Bank with the Borrower
under the Credit Documents, including the stated rates of interest contracted
for hereunder and any other amounts contracted for under the Credit Documents
which are deemed to be interest, at any time exceeds the Highest Lawful Rate,
then the outstanding principal amount of the loans made by such Bank to the
Borrower hereunder shall bear interest at a rate which would make the effective
rate of interest on the loans made by such Bank to the Borrower under the Credit
Documents equal the Highest Lawful Rate until the difference between the amounts
which would have been due by the Borrower to such Bank at the stated rates and
the amounts which were due by the Borrower to such Bank at the Highest Lawful
Rate (the "Lost Interest") has been recaptured by such Bank. If, when the loans
made hereunder are repaid in full, the Lost Interest has not been fully
recaptured by such Bank pursuant to the preceding paragraph,
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then, to the extent permitted by law, the interest rates charged by such Bank to
the Borrower hereunder shall be retroactively increased such that the effective
rate of interest on the loans made by such Bank to the Borrower under the Credit
Documents was at the Highest Lawful Rate since the effectiveness of this
Agreement to the extent necessary to recapture the Lost Interest not recaptured
pursuant to the preceding sentence and, to the extent allowed by law, the
Borrower shall pay to such Bank the amount of the Lost Interest remaining to be
recaptured by such Bank.
(ii) In calculating all sums paid or agreed to be
paid to any Bank by the Borrower for the use, forbearance, or detention of money
under the Credit Documents, such amounts shall, to the extent permitted by
applicable law, be amortized, prorated, allocated, and spread in equal parts
throughout the term of the Credit Documents.
(iii) NOTWITHSTANDING THE FOREGOING OR ANY OTHER TERM
IN THE CREDIT DOCUMENTS TO THE CONTRARY, it is the intention of each Bank and
the Borrower to conform strictly to any applicable usury laws. Accordingly, if
any Bank contracts for, charges, or receives any consideration from the Borrower
which constitutes interest in excess of the Highest Lawful Rate, then any such
excess shall be canceled automatically and, if previously paid, shall at such
Bank's option be applied to the outstanding amount of the loans made hereunder
by such Bank to the Borrower or be refunded to the Borrower.
2.6 Breakage Costs. If (i) any payment of principal on or any
conversion or reallocation of any LIBOR Tranche is made on any date other than
the last day of the Interest Period for such LIBOR Tranche, whether as a result
of any optional or mandatory prepayment, any acceleration of maturity, any
reallocation of Revolving Loan Commitments, or any other cause, (ii) any payment
of principal on any LIBOR Tranche is not made when due, or (iii) any LIBOR
Tranche is not borrowed, converted to another Tranche, reallocated, or prepaid
in accordance with the respective notice thereof provided by the Borrower to the
Agent, whether as a result of any failure to meet any applicable conditions
precedent for borrowing, conversion, reallocation, or prepayment, the
cancellation of any request for borrowing, conversion, reallocation, or
prepayment, the failure of the Borrower to provide the respective notice of
borrowing, conversion, reallocation, or prepayment, or any other cause not
specified above which is created by the Borrower, then the Borrower shall pay to
each Bank upon demand any amounts required to compensate such Bank for any
losses, costs, or expenses, including lost profits and administrative expenses,
which are allocable to such action, including losses, costs, and expenses
related to the liquidation or reinvestment of funds acquired or designated such
Bank to fund or maintain such Bank's ratable share of such LIBOR Tranche or
related to the reacquisition or redesignation of funds by such Bank to fund or
maintain such Bank's ratable share of such LIBOR Tranche following any
liquidation or reinvestment of such funds caused by such action. A certificate
as to the amount of such loss, cost, or expense detailing the calculation
thereof and certifying that such Bank customarily charges such amounts to its
other customers in similar circumstances
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submitted by such Bank to the Borrower shall be conclusive and binding for all
purposes, absent manifest error.
2.7 Increased Costs.
(a) Cost of Funds. With respect to LIBOR Tranches, if, due to
either (i) any introduction of, change in, or change in the interpretation of
any law or regulation after the date of this Agreement or (ii) compliance with
any guideline or request from any central bank or other governmental authority
having appropriate jurisdiction (whether or not having the force of law) given
after the date of this Agreement, there shall be any increase in the costs of
any Bank allocable to (x) committing to make any Revolving Loan Advance or
obtaining funds for the making, funding, or maintaining of such Bank's ratable
share of any LIBOR Tranche in the relevant interbank market or (y) committing to
make Letters of Credit or issuing, funding, or maintaining Letters of Credit
(including any increase in any applicable reserve requirement specified by the
Federal Reserve Board), whether for emergency, marginal, supplemental, or other
reserves, then the Borrower shall pay to such Bank upon demand any amounts
required to compensate such Bank for such increased costs, such amounts being
due and payable upon demand by such Bank. A certificate as to the cause and
amount of such increased cost detailing the calculation of such cost and
certifying that such Bank customarily charges such amounts to its other
customers in similar circumstances submitted by such Bank to the Borrower shall
be conclusive and binding for all purposes, absent manifest error. No Bank may
make any claim for compensation under this Section 2.7(a) for increased costs
incurred before 90 days prior to the delivery of any such certificate. Each Bank
agrees to use commercially reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions) to designate a different
Applicable Lending Office if the making of such designation would avoid or
reduce the effect of this paragraph and would not, in the reasonable judgment of
the Bank, be otherwise disadvantageous to such Bank.
(b) Capital Adequacy. If, due to either (i) any introduction
of, change in, or change in the interpretation of any law or regulation after
the date of this Agreement or (ii) compliance with any guideline or request from
any central bank or other governmental authority having appropriate jurisdiction
(whether or not having the force of law) given after the date of this Agreement,
there shall be any increase in the capital requirements of any Bank or its
parent or holding company allocable to (x) committing to make Revolving Loan
Advances or making, funding, or maintaining Revolving Loan Advances or (y)
committing to make Letters of Credit or issuing, funding, or maintaining Letters
of Credit, as such capital requirements are allocated by such Bank, then the
Borrower shall pay to such Bank upon demand any amounts required to compensate
such Bank or its parent or holding company for such increase in costs (including
an amount equal to any reduction in the rate of return on assets or equity of
such Bank or its parent or holding company), such amounts being due and payable
upon demand by such Bank. A certificate as to the cause and amounts detailing
the calculation of such amounts and certifying that such Bank customarily
charges such amounts to its other customers in similar circumstances submitted
by such Bank to the Borrower shall be conclusive and binding for all purposes,
absent manifest error. No Bank may make any
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claim for compensation under this Section 2.7(b) for increased costs incurred
before 90 days prior to the delivery of any such certificate.
2.8 Illegality. Notwithstanding any other provision in this Agreement,
if it becomes unlawful for any Bank to obtain deposits or other funds for making
or funding such Bank's ratable share of any LIBOR Tranche in the relevant
interbank market, such Bank shall so notify the Borrower and the Agent and such
Bank's commitment to create LIBOR Tranches shall be suspended until such
condition has passed, all LIBOR Tranches applicable to such Bank shall be
converted to Base Rate Tranches as of the end of each applicable Interest Period
or earlier if necessary, and all subsequent requests for LIBOR Tranches shall be
deemed to be requests for Base Rate Tranches with respect to such Bank. Each
Bank agrees to use commercially reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions) to designate a different
Applicable Lending Office if the making of such designation would avoid or
reduce the effect of this paragraph and would not, in the reasonable judgment of
the Bank, be otherwise disadvantageous to such Bank.
2.9 Market Failure. Notwithstanding any other provision in this
Agreement, if the Agent determines that: (a) quotations of interest rates for
the relevant deposits referred to in the definition of "LIBOR" are not being
provided in the relevant amounts, or maturities for purposes of determining the
rate of interest referred to in the definition of "LIBOR" or (b) the relevant
rates of interest referred to in the definition of "LIBOR" which are used as the
basis to determine the rate of interest for LIBOR Tranches are not likely to
adequately cover the cost to any Bank of making or maintaining such Bank's
ratable share of any LIBOR Tranche, then if the Agent so notifies the Borrower,
the Agent and the Banks' commitment to create LIBOR Tranches shall be suspended
until such condition has passed, all LIBOR Tranches shall be converted to Base
Rate Tranches as of the end of each applicable Interest Period or earlier if
necessary, and all subsequent requests for LIBOR Tranches shall be deemed to be
requests for Base Rate Tranches.
2.10 Payment Procedures and Computations.
(a) Payment Procedures. Time is of the essence in the Credit
Documents. All payment hereunder shall be made in Dollars. The Borrower shall
make each payment under this Agreement and under the Revolving Loan Notes and
the Swing Line Note not later than 12:00 noon (local time at the Applicable
Lending Office of the Agent) on the day when due to the Agent at the Agent's
Applicable Lending Office in immediately available funds. All payments by the
Borrower hereunder shall be made without any setoff, abatement, withholding, or
reduction. Upon receipt of payment from the Borrower of any principal, interest,
or fees due to the Banks, the Agent shall promptly after receipt thereof
distribute to the Banks their ratable share of such payments for the account of
their respective Applicable Lending Offices. If and to the extent that the Agent
shall not have so distributed to any Bank its ratable share of such payments,
the Agent agrees that it shall pay interest on such amount for each day after
the day when such amount is made available to the Agent by the Borrower until
the date such amount is paid to such Bank by the Agent at the Federal Funds Rate
in
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effect from time to time, provided that if such amount is not paid by the Agent
by the end of the third day after the Borrower makes such amount available to
the Agent, the interest rates specified above shall be increased by a per annum
amount equal to 2.00% on the fourth day and shall remain at such increased rate
thereafter. Interest on such amount shall be due and payable by the Agent upon
demand by such Bank. Upon receipt of other amounts due solely to the Agent, the
Issuing Bank, or a specific Bank, the Agent shall distribute such amounts to the
appropriate party to be applied in accordance with the terms of this Agreement.
(b) Agent Reliance. Unless the Agent shall have received
written notice from the Borrower prior to any date on which any payment is due
to the Banks that the Borrower shall not make such payment in full, the Agent
may assume that the Borrower has made such payment in full to the Agent on such
date and the Agent may, in reliance upon such assumption, cause to be
distributed to each Bank on such date an amount equal to the amount then due
such Bank. If and to the extent the Borrower shall not have so made such payment
in full to the Agent, each Bank shall repay to the Agent forthwith on demand
such amount distributed to such Bank, together with interest thereon from the
date such amount is distributed to such Bank until the date such Bank repays
such amount to the Agent, at an interest rate equal to, the Federal Funds Rate
in effect from time to time, provided that with respect to such Bank, if such
amount is not repaid by such Bank by the end of the second day after the date of
the Agent's demand, the interest rates specified above shall be increased by a
per annum amount equal to 2.00% on the third day after the date of the Agent's
demand and shall remain at such increased rate thereafter. Upon receipt of other
amounts due solely to the Agent, the Issuing Bank, the Swing Line Lender, or a
specific Bank, the Agent shall distribute such amounts to the appropriate party
to be applied in accordance with the terms of this Agreement.
(c) Sharing of Payments. Each Bank agrees that if it should
receive any payment (whether by voluntary payment, by realization upon security,
by the exercise of the right of setoff or banker's lien, by counterclaim or
cross action, by the enforcement of any right under the Credit Documents, or
otherwise) in respect of any obligation of the Borrower to pay principal,
interest, fees, or any other obligation incurred under the Credit Documents in a
proportion greater than the total amount of such principal, interest, fees, or
other obligation then owed and due by the Borrower to such Bank bears to the
total amount of principal, interest, fees, or other obligation then owed and due
by the Borrower to all of the Banks immediately prior to such receipt, then such
Bank receiving such excess payment shall purchase for cash without recourse from
the other Banks an interest in the obligations of the Borrower to such Banks in
such amount as shall result in a participation by all of the Banks, in
proportion with the Banks' respective pro rata shares, in the aggregate unpaid
amount of principal, interest, fees, or any such other obligation, as the case
may be, owed by the Borrower to all of the Banks; provided that if all or any
portion of such excess payment is thereafter recovered from such Bank, such
purchase shall be rescinded and the purchase price restored to the extent of
such recovery, in proportion with the Banks' respective pro rata shares, but
without interest.
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(d) Authority to Charge Accounts. The Agent, if and to the
extent payment owed to the Agent or any Bank is not made when due, may charge
from time to time against any account of the Borrower with the Agent any amount
so due. The Agent agrees promptly to notify the Borrower after any such charge
and application made by the Agent provided that the failure to give such notice
shall not affect the validity of such charge and application.
(e) Interest and Fees. Unless expressly provided for in this
Agreement, (i) all computations of interest based on the Prime Rate (including
the Adjusted Base Rate when applicable) shall be made on the basis of a 365/366
day year, as the case may be, (ii) all computations of interest based on LIBOR
and the Federal Funds Rate (including the Adjusted Base Rate when applicable)
shall be made on the basis of a 360 day year, and (iii) all computations of fees
shall be made on the basis of a 360 day year, in each case for the actual number
of days (including the first day, but excluding the last day) occurring in the
period for which such interest or fees are payable. Each determination by the
Agent of an interest rate or fee shall be conclusive and binding for all
purposes, absent manifest error.
(f) Payment Dates. Whenever any payment shall be stated to be
due on a day other than a Business Day, such payment shall be due and payable on
the next succeeding Business Day, and such extension of time shall in such case
be included in the computation of payment of interest or fees, as the case may
be. If the time for payment for an amount payable is not specified in any Credit
Document, the payment shall be due and payable on demand by the Agent or the
applicable Bank.
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2.11 Taxes
(a) No Deduction for Certain Taxes. Any and all payments by
the Borrower shall be made free and clear of and without deduction for any and
all present or future taxes, levies, imposts, deductions, charges, or
withholdings, and all liabilities with respect thereto, other than taxes imposed
on the income and franchise taxes imposed on the Agent, any Bank, or the
Applicable Lending Office thereof by any jurisdiction in which any such entity
is a citizen or resident or any political subdivision of such jurisdiction (all
such nonexcluded taxes, levies, imposts, deductions, charges, withholdings, and
liabilities being hereinafter referred to as "Taxes"). If the Borrower shall be
required by law to deduct any Taxes from or in respect of any sum payable to the
Agent, any Bank, or the Applicable Lending Office thereof, (i) the sum payable
shall be increased as may be necessary so that, after making all required
deductions (including deductions applicable to additional sums payable under
this Section 2.11), such Person receives an amount equal to the sum it would
have received had no such deductions been made; (ii) the Borrower shall make
such deductions; and (iii) the Borrower shall pay the full amount deducted to
the relevant taxation authority or other authority in accordance with applicable
law. Each Bank agrees to use commercially reasonable efforts (consistent with
its internal policy and legal and regulatory restrictions) to designate a
different Applicable Lending Office if the making of such designation would
avoid or reduce the effect of this paragraph and would not, in the reasonable
judgment of the Bank, be otherwise disadvantageous to such Bank.
(b) Other Taxes. The Borrower agrees to pay any present or
future stamp or documentary taxes or any other excise or property taxes,
charges, or similar levies which arise from any payment made or from the
execution, delivery, or registration of, or otherwise with respect to, this
Agreement or the other Credit Documents (other than those which become due as a
result of any Bank joining this Agreement as a result of any Assignment and
Acceptance, which shall be paid by the Bank which becomes a Bank hereunder as a
result of such Assignment and Acceptance).
(c) Foreign Bank Withholding Exemption. Each Bank and Issuing
Bank that is not incorporated under the laws of the United States of America or
a state thereof agrees that it shall deliver to the Borrower and the Agent (i)
two duly completed copies of United States Internal Revenue Service Form 1001 or
4224 or successor applicable form, as the case may be, certifying in each case
that such Bank is entitled to receive payments under this Agreement and the
Revolving Loan Notes payable to it, without deduction or withholding of any
United States federal income taxes, (ii) if applicable, an Internal Revenue
Service Form W-8 or W-9 or successor applicable form, as the case may be, to
establish an exemption from United States backup withholding tax, and (iii) any
other governmental forms which are necessary or required under an applicable tax
treaty or otherwise by law to reduce or eliminate any withholding tax, which
have been reasonably requested by the Borrower. Each Bank which delivers to the
Borrower and the Agent a Form 1001 or 4224 and Form W-8 or W-9 pursuant to the
next preceding sentence further undertakes to deliver to the Borrower and the
Agent two further copies of the said letter and Form 1001 or 4224 and Form W-8
or W-9, or successor applicable forms, or other manner of certification, as the
case may be, on or before the date that any such letter or form expires or
becomes obsolete or after the
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occurrence of any event requiring a change in the most recent letter and form
previously delivered by it to the Borrower and the Agent, and such extensions or
renewals thereof as may reasonably be requested by the Borrower and the Agent
certifying in the case of a Form 1001 or 4224 that such Bank is entitled to
receive payments under this Agreement without deduction or withholding of any
United States federal income taxes. If an event (including without limitation
any change in treaty, law or regulation) has occurred prior to the date on which
any delivery required by the preceding sentence would otherwise be required
which renders all such forms inapplicable or which would prevent any Bank from
duly completing and delivering any such letter or form with respect to it and
such Bank advises the Borrower and the Agent that it is not capable of receiving
payments without any deduction or withholding of United States federal income
tax, and in the case of a Form W-8 or W-9, establishing an exemption from United
States backup withholding tax, such Bank shall not be required to deliver such
letter or forms. The Borrower shall withhold tax at the rate and in the manner
required by the laws of the United States with respect to payments made to a
Bank failing to provide the requisite Internal Revenue Service forms in a timely
manner. Each Bank which fails to provide to the Borrower in a timely manner such
forms shall reimburse the Borrower upon demand for any penalties paid by the
Borrower as a result of any failure of the Borrower to withhold the required
amounts that are caused by such Bank's failure to provide the required forms in
a timely manner.
2.12 Replacement of Bank in Event of Adverse Condition. In the event
the Borrower becomes obligated to pay additional amounts to any Bank pursuant to
Section 2.7 or Section 2.11 as a result of any condition described in either
Section, then, unless such Bank has theretofore taken steps to remove or cure,
and has removed or cured, the conditions creating the cause for such obligation
to pay such additional amounts, the Borrower may designate another bank which is
reasonably acceptable to the Agent (such bank being herein called a "Replacement
Bank") to purchase the Notes of such Bank and such Bank's rights hereunder,
without recourse to or warranty by, or expense to, such Bank for a purchase
price equal to the outstanding principal amount of the Notes payable to such
Bank plus any accrued but unpaid interest on such Notes and accrued but unpaid
Commitment Fees in respect of that Bank's Commitment, and any breakage costs
incurred by such Bank as a result of the replacement, and such other
administrative costs as are incurred by the Bank as the result of such
replacement, and upon such purchase, such Bank shall no longer be a party hereto
or have any rights or obligations hereunder, other than those that expressly
survive the termination of this Agreement, and the Replacement Bank shall
succeed to the rights and obligations of such Bank hereunder.
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ARTICLE 3. CONDITIONS PRECEDENT.
3.1 Conditions Precedent to Initial Extensions of Credit. The
obligation of each Bank to make the initial extension of credit under this
Agreement, including the making of any Revolving Loan Advances, and the issuance
of any Letters of Credit, and the obligations of the Swing Line Lender to make
any advances under the Swing Line Loan shall be subject to the following
conditions precedent:
(a) Documents. The Borrower shall have delivered or shall have
caused to be delivered the documents and other items listed on Exhibit F,
together with any other documents reasonably requested by the Agent to document
the agreements and intent of the Credit Documents, each in form and with
substance satisfactory to the Agent.
(b) Due Diligence. The Banks shall have completed and be
satisfied with due diligence with respect to the Restricted Entities, including
due diligence regarding (i) executives and directors, litigation, tax,
accounting, labor, insurance, and pension matters, (ii) real estate leases, debt
agreements, material contracts, environmental matters, management, and property
ownership rights, (iii) all pending acquisitions, and (iv) such other matters as
the Banks deem appropriate.
(c) Financial Statements.
(i) The Borrower shall have delivered to the Agent a
copy of each annual audit report of the Borrower for fiscal years 1996, 1997,
and 1998, including therein the consolidated balance sheets of the Borrower and
its Subsidiaries as of the applicable fiscal year end and the consolidated
statements of income, stockholders' equity, and cash flows for the Borrower and
its Subsidiaries for such fiscal year, setting forth the consolidated financial
position and results of the Borrower and its Subsidiaries for such fiscal year,
prepared in accordance with generally accepted accounting principles
consistently applied, and certified, without any qualification or limitation of
the scope of the examination of matters relevant to the financial statements, by
a nationally recognized certified public accounting firm. The Borrower shall
also have delivered the unaudited consolidating financial statements related to
each of the above described consolidated financial statements together with the
unaudited consolidated June 30, 1999 financial statements for the Borrower and
its Subsidiaries.
(ii) The Borrower shall have delivered a copy of the
projected consolidated financial statements of the Borrower for fiscal years
1999, 2000, 2001, 2002, and 2003, including key assumptions and other
information as the Banks may reasonably require.
(d) Material Adverse Change. No Material Adverse Change shall
have occurred since December 31, 1998, and there shall be no action, suit,
investigation, or proceeding pending or threatened in any court or before any
arbitrator or governmental authority that could be reasonably expected to (i)
affect the ability of the Credit Parties to
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perform their obligations under the Credit Documents or (ii) cause a Material
Adverse Change.
(e) Compliance Certificate. The Borrower shall have delivered
to the Agent a duly completed Compliance Certificate dated as of June 30, 1999,
together with an Acquisition EBITDA Certificate including the pro forma effects
of the CLT Acquisition and all Acquisitions closed prior to closing.
3.2 Conditions Precedent to Each Extension of Credit. The obligation of
each Bank to make any extension of credit under this Agreement, including the
making of any Revolving Loan Advances, the issuance, increase, or extension of
any Letters of Credit, and the obligations of the Swing Line Lender to make any
advances under the Swing Line Loan shall be subject to the further conditions
precedent that on the date of such extension of credit:
(a) Representations and Warranties. As of the date of the
making of any extension of credit hereunder, the representations and warranties
contained in each Credit Document shall be true and correct in all material
respects as of such date (and the Borrower's request for the making of any
extension of credit hereunder shall be deemed to be a restatement,
representation, and additional warranty of the representations and warranties
contained in each Credit Document as of such date);
(b) Material Adverse Change. No Material Adverse Change shall
have occurred since December 31, 1998, and there shall be no action, suit,
investigation, or proceeding pending or threatened in any court or before any
arbitrator or governmental authority that could reasonably be expected to (i)
affect the ability of the Credit Parties to perform their obligations under the
Credit Documents or (ii) cause a Material Adverse Change; and
(c) Default. As of the date of the making of any extension of
credit hereunder, there shall exist no Default or Event of Default, and the
making of the extension of credit would not cause or be reasonably expected to
cause a Default or Event of Default.
ARTICLE 4. REPRESENTATIONS AND WARRANTIES. The Borrower represents and warrants
to the Agent and each Bank, and with each request for any extension of credit
hereunder, including the making of any Revolving Loan Advances, and the
issuance, increase, or extension of any Letters of Credit, again represents and
warrants to the Agent and each Bank, as follows:
4.1 Organization. As of the date of this Agreement, each Restricted
Entity (a) is duly organized, validly existing, and in good standing under the
laws of such Person's respective jurisdiction of organization and (b) is duly
licensed, qualified to do business, and in good standing in each jurisdiction in
which such Person is organized, owns property, or conducts operations to the
extent that any failure to be so licensed, qualified, or in good
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standing in accordance with this clause (b) could reasonably be expected to
cause a Material Adverse Change.
4.2 Authorization. The execution, delivery, and performance by each
Credit Party of the Credit Documents to which such Credit Party is a party and
the consummation of the transactions contemplated thereby (a) do not contravene
the organizational documents of such Credit Party, (b) have been duly authorized
by all necessary corporate action of such Credit Party, and (c) are within such
Credit Party's corporate powers.
4.3 Enforceability. Each Credit Document to which any Credit Party is a
party has been duly executed and delivered by each Credit Party which is a party
to such Credit Document and constitutes the legal, valid, and binding obligation
of each such Credit Party, enforceable against each such Credit Party in
accordance with such Credit Document's terms, except as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, or similar laws at the time
in effect affecting the rights of creditors generally and subject to the
availability of equitable remedies.
4.4 Absence of Conflicts and Approvals. The execution, delivery, and
performance by each Credit Party of the Credit Documents to which such Credit
Party is a party and the consummation of the transactions contemplated thereby,
(a) do not result in any violation or breach of any provisions of, or constitute
a default under, any note, indenture, credit agreement, security agreement,
credit support agreement, or other similar agreement to which such Credit Party
is a party or any other material contract or agreement to which such Credit
Party is a party, (b) do not violate any law or regulation binding on or
affecting such Credit Party, (c) do not require any authorization, approval, or
other action by, or any notice to or filing with, any governmental authority,
and (d) do not result in or require the creation or imposition of any Lien
prohibited by this Agreement.
4.5 Investment Companies. No Restricted Entity or Affiliate thereof is
an "investment company" or a company "controlled" by an "investment company"
within the meaning of the Investment Company Act of 1940, as amended.
4.6 Public Utilities. No Restricted Entity or Affiliate thereof is a
"holding company," or a "subsidiary company" of a "holding company," or an
"affiliate" of a "holding company" or of a "subsidiary company" of a "holding
company," within the meaning of the Public Utility Holding Company Act of 1935,
as amended. No Restricted Entity or Affiliate thereof is a regulated public
utility.
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4.7 Financial Condition.
(a) The Borrower has delivered to the Agent the Financial
Statements and Interim Financial Statements, and the Financial Statements and
Interim Financial Statements are accurate and complete in all material respects
(subject in the case of the Interim Financial Statements to normal year end
adjustments and their not containing the notes that are required with year end
financial statements) and present fairly the financial condition and results of
operations of the Borrower and its Subsidiaries as of their respective dates and
for their periods in accordance with generally accepted accounting principles.
(b) As of the respective dates of the Interim Financial
Statements and the Financial Statements there were no material contingent
obligations, liabilities for taxes, unusual forward or long-term commitments, or
unrealized or anticipated losses of the Borrower or any of the Borrower's
Subsidiaries, except as disclosed therein and adequate reserves for such items
have been made in accordance with generally accepted accounting principles. No
Material Adverse Change has occurred since the respective dates of the Interim
Financial Statements and the Financial Statements. No Default exists.
4.8 Condition of Assets. Each Restricted Entity has good and
indefeasible title to substantially all of its owned property and valid
leasehold rights in all of its leased property, as reflected in the financial
statements most recently provided to the Agent free and clear of all Liens
except Permitted Liens. Each Restricted Entity possesses and has properly
approved, recorded, and filed, where applicable, all permits, licenses, patents,
patent rights or licenses, trademarks, trademark rights, trade names rights, and
copyrights which are useful in the conduct of its business and which the failure
to possess could reasonably be expected to cause a Material Adverse Change. The
material properties used or to be used in the continuing operations of each
Restricted Entity are in good repair, working order, and condition, normal wear
and tear excepted. The properties of each Restricted Entity have not been
adversely affected as a result of any fire, explosion, earthquake, flood,
drought, windstorm, accident, strike or other labor disturbance, embargo,
requisition or taking of property or cancellation of contracts, permits, or
concessions by a governmental authority, riot, activities of armed forces, or
acts of God or of any public enemy in any manner which (after giving effect to
any insurance proceeds) could reasonably be expected to cause a Material Adverse
Change.
4.9 Litigation. There are no actions, suits, or proceedings pending or,
to the knowledge of the Borrower, threatened against any Restricted Entity at
law, in equity, or in admiralty, or by or before any governmental department,
commission, board, bureau, agency, instrumentality, domestic or foreign, or any
arbitrator which could reasonably be expected to cause a Material Adverse
Change, except for the litigation regarding TPI and Swan (the "TPI/Swan
Litigation"), of the type which is described in footnote 13 (Commitments and
Contingencies) of the SEC form 10-K report of Tyler Corporation (now known as
Tyler Technologies, Inc.), for the fiscal year ended December 31, 1998. As of
the date of this
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Agreement the Borrower has disclosed to the Banks all material information that
the Borrower has regarding the TPI/Swan Litigation.
4.10 Subsidiaries. As of the date of this Agreement, the Borrower has
no Subsidiaries except as disclosed in Schedule II.
4.11 Laws and Regulations. Each Restricted Entity has been and is in
compliance with all federal, state, and local laws and regulations which are
applicable to the operations and property of such Person where the failure to
comply with the same could reasonably be expected to cause a Material Adverse
Change, except for TPI and Swan's possible noncompliance with laws or
regulations that are directly related to the issues raised in the TPI/Swan
Litigation.
4.12 Environmental Compliance. Each Restricted Entity has been and is
in compliance with all Environmental Laws and has obtained and is in compliance
with all related permits necessary for the ownership and operation of any such
Person's properties where the failure to be in compliance with the same could
reasonably be expected to cause a Material Adverse Change. Each Restricted
Entity has not received notice of and has not been investigated for any
violation or alleged violation of any Environmental Law in connection with any
such Person's presently or previously owned properties which currently threaten
action or suggest liabilities which could reasonably be expected to cause a
Material Adverse Change. Each Restricted Entity does not and has not created,
handled, transported, used, or disposed of any Hazardous Materials on or about
any such Person's properties (nor has any such Person's properties been used for
those purposes); has never been responsible for the release of any Hazardous
Materials into the environment in connection with any such Person's operations
and has not contaminated any properties with Hazardous Materials; and does not
and has not owned any properties contaminated by any Hazardous Materials, in
each case in any manner which could reasonably be expected to cause a Material
Adverse Change, except for TPI and Swan's possible noncompliance with laws or
regulations that are directly related to the issues raised in the TPI/Swan
Litigation.
4.13 ERISA. Each Restricted Entity and each of their respective
Commonly Controlled Entities are in compliance with all provisions of ERISA to
the extent that the failure to be in compliance could reasonably be expected to
cause a Material Adverse Change. No Restricted Entity nor any of their
respective Commonly Controlled Entities participates in or during the past five
years has participated in any employee pension benefit plan covered by Title IV
of ERISA or any multiemployer plan under Section 4001(a)(3) of ERISA. With
respect to the Plans of the Restricted Entities, no Material Reportable Event or
Prohibited Transaction has occurred and exists that could reasonably be expected
to cause a Material Adverse Change.
4.14 Taxes. Each Restricted Entity has filed all United States federal,
state, and local income tax returns and all other domestic and foreign tax
returns which are required to be filed by such Person and has paid, or provided
for the payment before the same became
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delinquent of, all taxes due pursuant to such returns or pursuant to any
assessment received by such Person except for tax payments being contested in
good faith for which adequate reserves have been established and reported in
accordance with generally accepted accounting principles which could not
reasonably be expected to cause a Material Adverse Change. The charges,
accruals, and reserves on the books of the Restricted Entities in respect of
taxes are adequate in accordance with generally accepted accounting principles.
4.15 True and Complete Disclosure. All factual information furnished by
or on behalf of any Credit Party in writing to the Agent or any Bank in
connection with the Credit Documents and the transactions contemplated thereby
is true and accurate in all material respects on the date as of which such
information was dated or certified and does not contain any untrue statement of
material fact or omit to state any material fact necessary to make the
statements contained therein not misleading. All projections, estimates, and pro
forma financial information furnished by any Credit Party were prepared on the
basis of assumptions, data, information, tests, or conditions believed to be
reasonable at the time such projections, estimates, and pro forma financial
information were furnished.
4.16 Year 2000.
(a) Except to the extent that a failure to do so could not
reasonably be expected to cause a Material Adverse Change, the Borrower (i) has
analyzed the operations of the Restricted Entities that could be adversely
affected by failure to become Year 2000 compliant (that is, that computer
applications, imbedded microchips and other systems will be able to perform
date-sensitive functions prior to and after December 31, 1999); and (ii) is
implementing its plan for becoming Year 2000 compliant in a timely manner. The
Borrower reasonably believes that it will become Year 2000 compliant as will its
Subsidiaries and Affiliates on a timely basis except to the extent that a
failure to do so could not reasonably be expected to cause a Material Adverse
Change.
(b) The Borrower will promptly notify the Bank in the event
the Borrower determines that any computer application which is material to the
operations of the Borrower, its Subsidiaries, or its Affiliates or any of its
material vendors or suppliers will not be fully Year 2000 compliant on a timely
basis, except to the extent that such failure could not reasonably be expected
to cause a Material Adverse Change.
ARTICLE 5. COVENANTS. Until the Agent and the Banks receive irrevocable payment
of the Credit Obligations and have terminated this Agreement and each other
Credit Document, the Borrower shall comply with and cause compliance with the
following covenants:
5.1 Organization. The Borrower shall cause each Restricted Entity to
(a) maintain itself as an entity duly organized, validly existing, and in good
standing under the laws of such Person's respective jurisdiction of organization
and (b) be duly licensed, qualified to do business, and in good standing in each
jurisdiction in which such Person is organized, owns
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property, or conducts operations and which requires such licensing or
qualification where failure to be so licensed, qualified, or in good standing as
required by this clause (b) could reasonably be expected to cause a Material
Adverse Change; provided, however, that nothing in this Section 5.1 shall be
interpreted to be violated as a result of a transaction permitted by Section
5.9.
5.2 Reporting. The Borrower shall furnish to the Agent all of the
following:
(a) Annual Reports. As soon as available and in any event not
later than 90 days after the end of each fiscal year of the Borrower, (i) a copy
of the annual audit report for such fiscal year for the Borrower, including
therein the consolidated balance sheets of the Borrower as of the end of such
fiscal year and the consolidated statements of income, stockholders' equity, and
cash flows for the Borrower for such fiscal year, setting forth the consolidated
financial position and results of the Borrower for such fiscal year and
certified, without any qualification or limitation of the scope of the
examination of matters relevant to the financial statements, by a nationally
recognized certified public accounting firm, (ii) a copy of the internally
prepared consolidating financial schedules of the Borrower from which the
consolidated financial statements of the Borrower provided to the Agent pursuant
to clause (i) were prepared, (iii) a completed Compliance Certificate duly
certified by a Responsible Officer of the Borrower as of the last day of such
fiscal year end period, (iv) an environmental report on Jersey-Tyler Foundry
facility operated by Jersey-Tyler Foundry Company between 1969 and 1977, which
report shall be in form satisfactory to the Agent and shall supplement the
information previously provided to the Agent regarding the Jersey-Tyler Foundry
facility (a "Jersey-Tyler Update Report"), and (v) to the extent required by the
Borrower, an Acquisition EBITDA Certificate as of the last day of such fiscal
year end period;
(b) Quarterly Reports. As soon as available and in any event
not later than 45 days after the end of each of the first three fiscal quarters
during any fiscal year, (i) a copy of the internally prepared consolidated
financial statements of the Borrower for such fiscal quarter and for the fiscal
year to date period ending on the last day of such fiscal quarter, including
therein the consolidated balance sheets of the Borrower as of the end of such
fiscal quarter and the consolidated statements of income, and cash flows for
such fiscal quarter and for such fiscal year to date period, setting forth the
consolidated financial position and results of the Borrower for such fiscal
quarter and fiscal year to date period, all in reasonable detail and duly
certified by a Responsible Officer of the Borrower as having been prepared in
accordance with generally accepted accounting principles (subject to normal
year-end audit adjustments), (ii) a copy of the internally prepared
consolidating financial schedules of the Borrower from which the consolidated
financial statements of Borrower provided to the Agent pursuant to clause (i)
were prepared, (iii) a completed Compliance Certificate duly certified by a
Responsible Officer of the Borrower as of the last day of such fiscal quarter,
(iv) to the extent required by the Borrower, an Acquisition EBITDA Certificate
as of the last day of such fiscal quarter; --For the second fiscal quarter of
each year the Borrower shall also provide to the Agent a current Jersey-Tyler
Update Report together with all other quarterly reports delivered for the second
fiscal quarter;
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(c) Acquisition Information. As soon as available prior to the
closing of any Acquisition for which the aggregate, non-equity purchase price
exceeds $5,000,000 but in any event at least five Business Days prior to the
closing of the Acquisition, (i) financial statements for the Acquired Entity for
the two most recently completed fiscal years, including complete income and cash
flow reports, prepared by an independent certified public accountant (or in a
form satisfactory to the Agent) in accordance with generally accepted accounting
principles consistently applied; (ii) projected cash flow reports for the
Acquired Entity for the succeeding four fiscal quarters, adjusted for known
changes (detail provided); (iii) (A) proforma consolidated historical financial
statements for the most recently ended four fiscal quarters of the Borrower
reflecting the proforma consolidated results and status of the Borrower as if
such Acquisition had occurred prior to the beginning of such period and (B) a
revised Compliance Certificate and an Acquisition EBITDA Certificate reflecting
such proforma information, in each case prepared in accordance with the
requirements of Section 1.3(c) regarding proforma historical financial
information to reflect the consolidated status and results of the Borrower as if
such Acquisition had occurred prior to the beginning of the applicable period
and (iv)such other information as the Agent may reasonably request.
(d) SEC Filings. As soon as available and in any event not
later than thirty days after the filing or delivery thereof, copies of all
financial statements, reports, and proxy statements which the Borrower shall
have sent to its stockholders generally and copies of all regular and periodic
reports, if any, which any Restricted Entity shall have filed with the
Securities and Exchange Commission;
(e) Defaults. Promptly, but in any event within five Business
Days after the discovery thereof, a notice of any facts known to any Restricted
Entity which constitute a Default, together with a statement of a Responsible
Officer of the Borrower setting forth the details of such facts and the actions
which the Borrower has taken and proposes to take with respect thereto (and the
Agent shall, promptly upon receipt from the Borrower of a notice pursuant to
this Section 5.2(e), forward a copy of such notice to each Bank);
(f) Litigation. Promptly, but in any event within 10 Business
Days after the commencement thereof, notice of all actions, suits, and
proceedings before any court or governmental department, commission, board,
bureau, agency, or instrumentality, domestic or foreign, affecting any
Restricted Entity which, if determined adversely, could reasonably be expected
to cause a Material Adverse Change or any loss greater than $500,000;
(g) Material Contingent Liabilities. Promptly, but in any
event within 10 Business Days after acquiring knowledge thereof, notice of any
contingent liabilities which could reasonably be expected to cause a Material
Adverse Change or any contingent liability greater than $500,000;
(h) Material Agreement Default. Promptly, but in any event
within 10 Business Days after obtaining knowledge thereof, notice of any breach
by any Restricted
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Entity of any contract or agreement which breach could reasonably be expected to
cause a Material Adverse Change;
(i) Material Changes. Prompt written notice of any other
condition or event of which any Restricted Entity has knowledge, which condition
or event has resulted or could reasonably be expected to cause a Material
Adverse Change; and
(j) Other Information. Such other information respecting the
business operations or property of any Restricted Entity, financial or
otherwise, as the Agent or the Majority Banks may from time to time reasonably
request.
5.3 Inspection. The Borrower shall cause each Restricted Entity to
permit the Agent and the Banks to visit and inspect any of the properties of
such Restricted Entity, to examine all of such Person's books of account,
records, reports, and other papers, to make copies and extracts therefrom, and
to discuss their respective affairs, finances, and accounts with their
respective officers, employees, and independent public accountants all at such
reasonable times and as often as may be reasonably requested provided that the
Borrower is given at least one Business Day advance notice thereof for any
inspection to take place at the Borrower's offices, two Business Days advance
notice for any other inspection, and a reasonable opportunity to be present when
independent public accountants or other third parties are contacted.
5.4 Use of Proceeds. The proceeds of the Revolving Loan Borrowings
shall be used by the Borrower for Acquisitions, working capital needs,
refinancing existing indebtedness, Capital Expenditures, and for other lawful
corporate purposes. The Borrower shall not, directly or indirectly, use any part
of such proceeds for any purpose which violates, or is inconsistent with,
Regulations T, U, or X of the Board of Governors of the Federal Reserve System.
5.5 Financial Covenants.
(a) Net Worth. The Borrower shall not permit the consolidated
Net Worth of the Borrower at any time to be less than the sum of (i) $94,559,000
plus (ii) 75% of the quarterly consolidated net income of the Borrower for each
fiscal quarter ending after June 30, 1999, during which the Borrower has
positive consolidated net earnings; plus (iii) 100% of the net proceeds
resulting from any sale or issuance of any capital stock of the Borrower or its
Subsidiaries since June 30, 1999, plus (iv) to the extent that the required
consolidated Net Worth under this Section 5.5(a) was not increased in clauses
(i) through (iii) above as a result of any Acquisition, 100% of any increase in
the consolidated Net Worth of the Borrower resulting from any Acquisition.
(b) Debt Ratio. As of the last day of each fiscal quarter of
the Borrower, the Borrower shall not permit the consolidated Debt Ratio of the
Borrower to be greater than the following ratio:
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prior to June 30, 2000 3.00 to 1.00
from June 30, 2000, to but excluding December 31, 2000 2.75 to 1.00
from December 31, 2000 and thereafter 2.50 to 1.00
(c) Fixed Charge Coverage Ratio. As of the last day of each
fiscal quarter, the Borrower shall not permit the ratio of (i) the consolidated
EBITDA of the Borrower for the preceding four fiscal quarters then ended, less
the consolidated cash taxes paid by the Borrower during such period and less the
consolidated Capital Expenditures of the Borrower during such period (exclusive
of the Excluded Database Expenditures) to (ii) the consolidated interest expense
of the Borrower for the preceding four fiscal quarters then ended (including the
interest component of Capital Leases, but excluding any net effect of interest
income) plus capitalized interest for the preceding four fiscal quarters then
ended plus the consolidated cash dividends paid by the Borrower for the
preceding four fiscal quarters then ended, to be less than 2.50 to 1.00.
(d) Capital Expenditures. The Borrower shall not permit the
consolidated Capital Expenditures of the Borrower during any four quarter period
to exceed an amount equal to 10% of the Borrower's Net Worth calculated at the
end of such four quarters, provided that Capital Expenditures made with the
proceeds of an equity offering of common stock in the Borrower shall be excluded
from this limitation on Capital Expenditures.
5.6 Debt.
(a) The Borrower shall not permit any Restricted Entity to
create, assume, incur, suffer to exist, or in any manner become liable,
directly, indirectly, or contingently in respect of, any Debt other than
Permitted Debt.
(b) The Borrower shall not permit any Restricted Entity to
make any payment on or with respect to, or purchase, redeem, defease, or
otherwise acquire or retire for value any amount of any Permitted Debt permitted
pursuant to clause (b) of the definition of "Permitted Debt" prior to the stated
due dates or maturities thereof. The Borrower shall not amend, supplement, or
otherwise modify any of the terms or conditions of any such Permitted Debt
(other than any such amendment, supplement, or modification which would extend
the maturities of or reduce the amounts of any payments of principal, interest,
fees, or other amounts, any modification which would render the terms of such
Permitted Debt less restrictive, or any non-material administrative amendment
which imposes no new restrictions). For purposes of clarification, it is
expressly agreed that the Borrower shall have the right to pay or prepay, in
whole or in part, at any time and from time to time, the principal of and
accrued interest on the debt that is owed to Swan and/or TPI so long as such
debt is included within the indebtedness disclosed on Schedule II and no Default
or Events of Default are continuing.
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5.7 Liens.
(a) The Borrower shall not permit any Restricted Entity to
create, assume, incur, or suffer to exist any Lien on any of its real or
personal property whether now owned or hereafter acquired, or assign any right
to receive its income, except for Permitted Liens.
(b) Other than Permitted Liens, the Borrower shall not permit
any Restricted Entity to be party to any agreement restricting the right of any
Restricted Entity to pledge its assets to secure the Credit Obligations.
5.8 Other Obligations.
(a) The Borrower shall not permit any Restricted Entity to
create, incur, assume, or suffer to exist any obligations in respect of unfunded
vested benefits under any pension Plan or deferred compensation agreement.
(b) Except for obligations arising under the Credit Documents,
the Borrower shall not permit any Restricted Entity to create, incur, assume, or
suffer to exist any obligations in respect of Derivatives, other than
Derivatives used by any Restricted Entity in such Restricted Entity's respective
business operations in aggregate notional quantities not to exceed the
reasonably anticipated consumption of such Restricted Entity of the underlying
commodity for the relevant period, but no Derivatives which are speculative in
nature.
5.9 Corporate Transactions. The Borrower shall not, without the Agent's
consent, permit any Restricted Entity to (a) merge, consolidate, or amalgamate
with another Person, or liquidate, wind up, or dissolve itself (or take any
action towards any of the foregoing), (b) convey, sell, lease, assign, transfer,
or otherwise dispose of any of its property, businesses, or other assets outside
of the ordinary course of business (except for Permitted Minor Asset Sales and
equity offerings of common stock in the Borrower), or (c) make any Acquisition
except that:
(i) Any Subsidiary of the Borrower that is not an Excluded
Subsidiary may merge, consolidate, or amalgamate into any wholly owned
Subsidiary of the Borrower that is also not an Excluded Subsidiary or
convey, sell, lease, assign, transfer, or otherwise dispose of any of
its assets to any wholly-owned Subsidiary of the Borrower that is not
an Excluded Subsidiary (and if such disposition transfers all or
substantially all of the assets of transferring Subsidiary, such
Subsidiary may then liquidate, wind up, or dissolve itself); provided
that a wholly-owned Subsidiary is the surviving or acquiring
Subsidiary;
(ii) Any Subsidiary of the Borrower may merge, consolidate, or
amalgamate with another Person with the other Person as the surviving
entity or convey, sell, lease, assign, transfer, or otherwise dispose
of any of its assets to another Person (and if such disposition
transfers all or substantially all of the assets of transferring
Subsidiary, such Subsidiary may then liquidate, wind up, or dissolve
itself) provided that the result of such transaction would not cause
the net book value of the
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assets of the Restricted Entities so merged out of the Subsidiaries of
the Borrower or disposed of during any fiscal year of the Borrower to
exceed 5.00% of the consolidated proforma net book value of the
Borrower as of the end of the prior fiscal year of the Borrower (taking
into account the effect of any Acquisitions since that date); and
(iii) Any Credit Parties may make any Acquisition (by purchase
or merger) provided that (A) such Credit Party is the acquiring or
surviving entity, (B) the aggregate non-equity consideration paid by
the Restricted Entities in connection with any single Acquisition does
not exceed $10,000,000, (C) the aggregate non-equity consideration paid
by the Restricted Entities in connection with all Acquisitions (other
than the Borrower's acquisition of CLT and Acquisitions that have been
expressly approved in writing by the Majority Banks) during any twelve
month period which begins on or after the effective date of this
Agreement does not exceed $30,000,000, (D) no Default or Event of
Default exists and the Acquisition would not reasonably be expected to
cause a Default or Event of Default (including any default under
Section 5.5 with respect to historical and future proforma financial
status and results), (E) the transaction is not hostile, as reasonably
determined by the Agent, (F) the entity being acquired has a positive
net worth and is engaged in the same business or a business reasonably
related to the acquiring entity's business, and (G) all reporting
required pursuant to Section 5.2(c) has been completed.
(iv) The Acquisition of CLT by the Borrower is hereby approved
by the Banks; provided the aggregate purchase price paid by the
Borrower for such Acquisition does not exceed $18,000,000.
In connection with any mergers or dispositions described in paragraph (ii)
above, and provided that no Default or Event of Default exists or would be
caused thereby, upon reasonable advance written notice from the Borrower of the
intent to so merge or dispose of assets, the Agent shall release at the
Borrower's expense any obligations under the Guaranties of any Subsidiary so
merged and the Lien of the Agent in any assets so disposed of and shall execute
and deliver in favor of such Subsidiary any releases reasonably requested by the
Borrower to evidence such release. In connection with an asset sale permitted
under this Agreement, including a Permitted Minor Asset Sale, provided that no
Default or Event of Default exists or would be caused thereby, upon reasonable
advance written notice from the Borrower of the intent to so dispose of assets,
the Agent at the Borrower's expense shall release the collateral to be sold from
the liens and security interests created by the Credit Documents and shall
execute and deliver in favor of such Subsidiary any releases reasonably
requested by the Borrower to evidence such release.
5.10 Distributions. Without the Approval of the Majority Banks, the
Borrower shall not (a) declare or pay any dividends; (b) purchase, redeem,
retire, or otherwise acquire for value any of its capital stock now or hereafter
outstanding; or make any distribution of assets to its stockholders as such,
whether in cash, assets, or in obligations of it; (c) allocate or otherwise set
apart any sum for the payment of any dividend or distribution on, or for the
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purchase, redemption, or retirement of, any shares of its capital stock; or (d)
make any other distribution by reduction of capital or otherwise in respect of
any shares of its capital stock.
5.11 Transactions with Affiliates. The Borrower shall not permit any
Restricted Entity to enter into any transaction directly or indirectly with or
for the benefit of an Affiliate except transactions that (a) are between two
Credit Parties, (b) consist of making prepayments and or payments of Permitted
Debt owed to Restricted Entities which payments are not otherwise prohibited by
the terms of this Agreement, or (c) are with an Affiliate for the leasing of
property, the rendering or receipt of services, or the purchase or sale of
inventory or other assets in the ordinary course of business and the monetary or
business consideration arising from such a transaction would be substantially as
advantageous to such Restricted Entity as the monetary or business consideration
which such Restricted Entity would obtain in a comparable arm's length
transaction.
5.12 Insurance.
(a) The Borrower shall cause each Restricted Entity to
maintain insurance with responsible and reputable insurance companies or
associations reasonably acceptable to the Agent in such amounts and covering
such risks as are usually carried by companies engaged in similar businesses and
owning similar properties in the same general areas in which such Persons
operate. Without limiting the foregoing, the Borrower shall maintain insurance
coverage for the Restricted Entities equal to or better than the coverage for
the Restricted Entities existing on the date of this Agreement. The Borrower
shall deliver to the Agent certificates evidencing such policies or copies of
such policies at the Agent's request following a reasonable period to obtain
such certificates taking into account the jurisdiction where the insurance is
maintained.
(b) All policies of the Restricted Entities representing
property insurance shall name the Agent as agent for the benefit of the Banks as
mortgagee and have standard lender rights in a form satisfactory to the Agent.
All proceeds of any such property insurance which are in amounts in excess of
$50,000 shall be paid directly to the Agent. If no Event of Default exists, the
Agent shall dispose of such proceeds in accordance with the instructions of the
Borrower, otherwise such proceeds shall be applied to the Credit Obligations in
accordance with Section 6.9 or, at the election of the Agent, disposed of in
accordance with the instructions of the Borrower. All policies representing
liability insurance of the Restricted Entities shall name the Agent as Agent for
the benefit of the Banks as additional insureds, and as loss payees in a form
satisfactory to the Agent. All proceeds of such liability insurance coverage
shall be paid as directed by the Agent to indemnify the Agent or the applicable
Bank for the liability covered. In the event that the proceeds are paid to any
Restricted Entity in violation of the foregoing, the Restricted Entity shall
hold the proceeds in trust for the Agent, segregate the proceeds from the other
funds of such Restricted Entity, and promptly pay the proceeds to the Agent with
any necessary endorsement.
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(c) The Agent shall have the right, but not the obligation,
during the existence of an Event of Default, to make proof of loss under, settle
and adjust any claim under, and receive the proceeds (otherwise payable to the
Borrower) under the insurance, and the reasonable expenses incurred by the Agent
in the adjustment and collection of such proceeds shall be paid by the Borrower.
The Borrower irrevocably appoints the Agent as its attorney in fact to take such
actions in its name. If the Agent does not take such actions, the Borrower may
take such actions subject to the approval of any final action by the Agent. The
Agent shall not be liable or responsible for failure to collect or exercise
diligence in the collection of any proceeds.
5.13 Investments. The Borrower shall not permit any Restricted Entity
to make or hold any direct or indirect investment in any Person, including
capital contributions to the Person, investments in the debt or equity
securities of the Person, and loans, guaranties, trade credit, or other
extensions of credit to the Person, except for Permitted Investments. For the
avoidance of doubt, the Borrower shall not make or hold any investment in any
Subsidiary of the Borrower that is not a wholly owned Guarantor except as
permitted under clauses (a)(i), (g), (h), or (i) of the definition of "Permitted
Investments."
5.14 Lines of Business. The Borrower shall not permit the Restricted
Entities to change the character of their business as conducted on the date of
this Agreement, or engage in any type of business not reasonably related to such
business as presently and normally conducted.
5.15 Compliance with Laws. The Borrower shall cause each Restricted
Entity to comply with all federal, state, and local laws and regulations which
are applicable to the operations and property of such Persons where the failure
to comply could reasonably be expected to cause a Material Adverse Change.
5.16 Environmental Compliance. The Borrower shall cause each Restricted
Entity to comply with all Environmental Laws and obtain and comply with all
related permits necessary for the ownership and operation of any such Person's
properties where the failure to comply could reasonably be expected to cause a
Material Adverse Change. The Borrower shall cause each Restricted Entity to
promptly disclose to the Agent any notice to or investigation of such Persons
for any violation or alleged violation of any Environmental Law in connection
with any such Person's presently or previously owned properties which represent
liabilities which could reasonably be expected to cause a Material Adverse
Change. The Borrower shall not permit any Restricted Entity to create, handle,
transport, use, or dispose of any Hazardous Materials on or about any such
Person's properties; release any Hazardous Materials into the environment in
connection with any such Person's operations or contaminate any properties with
Hazardous Materials; or own properties contaminated by any Hazardous Materials,
in each case except in compliance with all Environmental Laws and related
permits and in such a manner that such actions could not reasonably be expected
to cause a Material Adverse Change.
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5.17 ERISA Compliance. The Borrower shall cause each Restricted Entity
to (i) comply in all material respects with all applicable provisions of ERISA
and prevent the occurrence of any Reportable Event or Prohibited Transaction
with respect to, or the termination of, any of their respective Plans where the
failure to do so could reasonably be expected to cause a Material Adverse Change
and (ii) not create or participate in any employee pension benefit plan covered
by Title IV of ERISA or any multiemployer plan under Section 4001(a)(3) of
ERISA.
5.18 Payment of Certain Claims. The Borrower shall cause each
Restricted Entity to pay and discharge, before the same shall become delinquent,
(a) all taxes, assessments, levies, and like charges imposed upon any such
Person or upon any such Person's income, profits, or property by authorities
having competent jurisdiction prior to the date on which penalties attach
thereto except for tax payments being contested in good faith for which adequate
reserves have been established and reported in accordance with generally
accepted accounting principles which could not reasonably be expected to cause a
Material Adverse Change and (b) all trade payables and current operating
liabilities, unless the same are less than 90 days past due or are being
contested in good faith, have adequate reserves established and reported in
accordance with generally accepted accounting principles, and could not
reasonably be expected to cause a Material Adverse Change.
5.19 New and Excluded Subsidiaries; Excluded Collateral.
(a) Upon the formation or acquisition of any new Subsidiary of
the Borrower, the Borrower shall have 30 days to designate to the Agent that
such Subsidiary shall be an Excluded Subsidiary. Any new Subsidiary (other than
Excluded Subsidiaries) and any Subsidiary that ceases to be an Excluded
Subsidiary in accordance with the definition thereof shall be a "Joining
Subsidiary". Within 30 days of any Person becoming a Joining Subsidiary the
Borrower shall and shall cause such Joining Subsidiary to execute and deliver to
the Agent such joinder agreements, guaranties, pledge agreements, security
agreements, mortgages, amendment agreements and other documents and agreements
as the Agent requests so that the Joining Subsidiary guarantees the Credit
Obligations and secures the Credit Obligations with the Collateral (other than
Excluded Collateral) owned by the Joining Subsidiary on the same terms as the
other Subsidiaries of the Borrower (other than TPI, Swan, and the Excluded
Subsidiaries), including the execution and delivery of such new documents and
agreements as the Agent determines are necessary to have the same effect in
different jurisdictions. In connection therewith, the Borrower shall provide
corporate documentation and opinion letters to the extent requested by the Agent
reasonably satisfactory to the Agent reflecting the corporate status of such
Subsidiary of the Borrower and the enforceability of such agreements.
(b) Within 30 days following any Excluded Collateral's ceasing
to be Excluded Collateral, the Borrower shall and shall cause its Subsidiaries
(other than TPI, Swan, and the Excluded Subsidiaries) to take such actions
specified in paragraph (a) above so that the Credit
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Obligations are secured by the previously Excluded Collateral in the same
manner as other Collateral.
ARTICLE 6. DEFAULT AND REMEDIES.
6.1 Events of Default. Each of the following shall be an "Event of
Default" for the purposes of this Agreement and for each of the Credit
Documents:
(a) Payment Failure. The Borrower (i) fails to pay when due
any principal amounts due under this Agreement or any other Credit Document or
(ii) fails to pay when due any interest, fees, reimbursements, indemnifications,
or other amounts due under this Agreement or any other Credit Document and such
failure has not been cured within five Business Days;
(b) False Representation. Any written representation or
warranty made by any Credit Party or any Responsible Officer thereof in this
Agreement or in any other Credit Document proves to have been false or erroneous
in any material respect at the time it was made or deemed made;
(c) Breach of Covenant. (i) Any breach by the Borrower of any
of the covenants contained in Sections 5.1(a) (with respect to the Borrower),
5.2, 5.3, 5.4, 5.5, 5.6, 5.7, 5.8, 5.9, 5.10, 5.13, 5.17, or 5.19 or (ii) any
breach by any Credit Party of any other covenants contained in this Agreement,
or any other Credit Document and such breach is not cured within 30 days
following the earlier of knowledge of such breach by such Credit Party or the
receipt of written notice thereof from the Agent;
(d) Security and Support Documents. Any Security Document
shall at any time and for any reason cease to create the Lien on the property
purported to be subject to such agreement in accordance with the terms of such
agreement, or cease to be in full force and effect, or shall be contested by any
party thereto (except for such property as is released from such a Lien by a
written release from the Agent);
(e) Guaranties. (i) any Guaranty shall at any time and for any
reason cease to be in full force and effect with respect to any Guarantor
(except as permitted under Section 5.9 hereof) or shall be contested by any
Guarantor, or any Guarantor shall deny it has any further liability or
obligation thereunder, or (ii) any breach by any Guarantor of any of the
covenants contained in Sections 1.1 or 1.2 of such Guarantor's Guaranty;
(f) Material Debt Default. (i) Any principal, interest, fees,
or other amounts due on any Debt of any Restricted Entity (other than the Credit
Obligations) is not paid when due, whether by scheduled maturity, required
prepayment, acceleration, demand, or otherwise, and such failure is not waived
or cured within the applicable grace period, if any, and the aggregate amount of
all Debt of such Persons so in default exceeds $1,000,000; (ii) any other event
shall occur or condition shall exist under any agreement or instrument
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relating to any Debt of any such Person (other than the Credit Obligations) the
effect of which is to accelerate or to permit the acceleration of the maturity
of any such Debt, whether or not any such Debt is actually accelerated, and such
event or condition shall not be waived or cured within the applicable grace
period, if any, and the aggregate amount of all Debt of such Persons so in
default exceeds $1,000,000; (iii) any Debt of any such Person shall be declared
to be due and payable, or required to be prepaid (other than by a regularly
scheduled prepayment) prior to the stated maturity thereof, and the aggregate
amount of all Debt of such Persons so accelerated exceeds $500,000; or (iv)
there shall occur any "Event of Default" under any of the BRC Loan Documents.
(g) Bankruptcy and Insolvency. (i) there shall have been filed
against any Restricted Entity or any such Person's properties, without such
Person's consent, any petition or other request for relief seeking an
arrangement, receivership, reorganization, liquidation, or similar relief under
bankruptcy or other laws for the relief of debtors and such request for relief
(A) remains in effect for 60 or more days, whether or not consecutive, or (B) is
approved by a final nonappealable order, or (ii) any such Person consents to or
files any petition or other request for relief of the type described in clause
(i) above seeking relief from creditors, makes any assignment for the benefit of
creditors or other arrangement with creditors, or admits in writing such
Person's inability to pay such Person's debts as they become due (the occurrence
of any Event of Default under clause (i) or (ii) of this paragraph being a
"Bankruptcy Event of Default");
(h) Adverse Judgment. The aggregate outstanding amount of
judgments against the Restricted Entities not discharged or stayed pending
appeal or other court action within 30 days following entry (i) is greater than
$1,000,000 or (ii) could reasonably be expected to cause a Material Adverse
Change; or
(i) Change of Control. There shall occur any Change of
Control.
6.2 Termination of Revolving Loan Commitments. Upon the occurrence of
any Bankruptcy Event of Default, all of the commitments of the Agent and the
Banks hereunder shall terminate. During the existence of any Event of Default
other than a Bankruptcy Event of Default, the Agent shall at the request of the
Majority Banks declare by written notice to the Borrower all of the commitments
of the Agent and the Banks hereunder terminated, whereupon the same shall
immediately terminate.
6.3 Acceleration of Credit Obligations. Upon the occurrence of any
Bankruptcy Event of Default, the aggregate outstanding principal amount of all
loans made hereunder, all accrued interest thereon, and all other Credit
Obligations shall immediately and automatically become due and payable. During
the existence of any Event of Default other than a Bankruptcy Event of Default,
the Agent shall at the request of the Majority Banks declare by written notice
to the Borrower the aggregate outstanding principal amount of all loans made
hereunder, all accrued interest thereon, and all other Credit Obligations to be
immediately due and payable, whereupon the same shall immediately become due and
payable.
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In connection with the foregoing, except for the notice provisions in Section
6.1 and the notice provided for in this Section 6.3, the Borrower waives notice
of any Default or Event of Default, grace, notice of intent to accelerate,
notice of acceleration, presentment, demand, notice of nonpayment, protest, and
all other notices.
6.4 Cash Collateralization of Letters of Credit. Upon the occurrence of
any Bankruptcy Event of Default, the Borrower shall pay to the Agent an amount
equal to the Letter of Credit Exposure allocable to the Letters of Credit
requested by the Borrower to be held in the Letter of Credit Collateral Account
for disposition in accordance with Section 2.2(g). During the existence of any
Event of Default other than a Bankruptcy Event of Default, the Agent shall at
the request of the Majority Banks require by written notice to the Borrower that
the Borrower pay to the Agent an amount equal to the Letter of Credit Exposure
allocable to the Letters of Credit requested by the Borrower to be held in the
Letter of Credit Collateral Account for disposition in accordance with Section
2.2(g), whereupon the Borrower shall pay to the Agent such amount for such
purpose.
6.5 Default Interest. If any Event of Default exists, the Agent shall
at the request of the Majority Banks declare by written notice to the Borrower
that the Credit Obligations specified in such notice shall bear interest
beginning on the date specified in such notice until paid in full at the
applicable Default Rate for such Credit Obligations, whereupon the Borrower
shall pay such interest to the Agent for the benefit of the Agent and the Banks,
as applicable, upon demand by the Agent.
6.6 Right of Setoff. During the existence of an Event of Default, the
Agent and each Bank is hereby authorized at any time, to the fullest extent
permitted by law, to set off and apply any indebtedness owed by the Agent or
such Bank to the Borrower against any and all of the obligations of the Borrower
under this Agreement and the Credit Documents, irrespective of whether or not
the Agent or such Bank shall have made any demand under this Agreement or the
Credit Documents and although such obligations may be contingent and unmatured.
The Agent and each Bank, as the case may be, agrees promptly to notify the
Borrower after any such setoff and application made by such party provided that
the failure to give such notice shall not affect the validity of such setoff and
application.
6.7 Actions Under Credit Documents. Following an Event of Default, the
Agent shall at the request of the Majority Banks take any and all actions
permitted under the other Credit Documents, including the Guaranties and the
Security Documents.
6.8 Remedies Cumulative. No right, power, or remedy conferred to the
Agent or the Banks in this Agreement and the Credit Documents, or now or
hereafter existing at law, in equity, by statute, or otherwise, shall be
exclusive, and each such right, power, or remedy shall to the full extent
permitted by law be cumulative and in addition to every other such right, power,
or remedy. No course of dealing and no delay in exercising any right, power, or
remedy conferred to the Agent or the Banks in this Agreement and the Credit
Documents, or now or hereafter existing at law, in equity, by statute, or
otherwise, shall operate as a waiver of or otherwise prejudice any such right,
power, or remedy.
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6.9 Application of Payments. Prior to the Revolving Loan Maturity Date
or any acceleration of the Credit Obligations, all payments made hereunder shall
be applied to the Credit Obligations as directed by the Borrower, subject to the
rules regarding the application of payments to certain Credit Obligations
provided for hereunder and in the Credit Documents. Following the Revolving Loan
Maturity Date or any acceleration of the Credit Obligations, all payments and
collections shall be applied to the Credit Obligations in the following order:
First, to the payment of the costs, expenses, reimbursements
(other than reimbursement obligations with respect to draws
under Letters of Credit), and indemnifications of the Agent
that are due and payable under the Credit Documents;
Then, ratably to the payment of the costs, expenses,
reimbursements (other than reimbursement obligations with
respect to draws under Letters of Credit), and
indemnifications of the Banks that are due and payable under
the Credit Documents;
Then, ratably to the payment of all accrued but unpaid
interest and fees and obligations under Interest Hedge
Agreements due and payable under the Credit Documents;
Then, ratably to the payment of all outstanding principal and
reimbursement obligations for draws under Letters of Credit
due and payable under the Credit Documents;
Then, ratably to the payment of any other amounts due and
owing with respect to the Credit Obligations; and
Finally, any surplus held by the Agent and remaining after
payment in full of all the Credit Obligations and reserve for
Credit Obligations not yet due and payable shall be promptly
paid over to the Borrower or to whomever may be lawfully
entitled to receive such surplus. All applications shall be
distributed in accordance with Section 2.10(a).
ARTICLE 7. THE AGENT AND THE ISSUING BANK
7.1 Authorization and Action. Each Bank hereby appoints and authorizes
the Agent to take such action as agent on its behalf and to exercise such powers
under this Agreement as are delegated to the Agent by the terms hereof and of
the other Credit Documents, together with such powers as are reasonably
incidental thereto. Statements under the Credit Documents that the Agent may
take certain actions, without further qualification, means that the Agent may
take such actions with or without the consent of the Banks or the Majority
Banks, but where the Credit Documents expressly require the
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determination of the Banks or the Majority Banks, the Agent shall not take any
such action without the prior written consent thereof. As to any matters not
expressly provided for by this Agreement or any other Credit Document
(including, without limitation, enforcement or collection of the Revolving Loan
Notes), the Agent shall not be required to exercise any discretion or take any
action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the written
instructions of the Majority Banks, and such instructions shall be binding upon
all Banks and all holders of Revolving Loan Notes; provided, however, that the
Agent shall not be required to take any action which exposes the Agent to
personal liability or which is contrary to this Agreement, any other Credit
Document, or applicable law.
7.2 Reliance, Etc. Neither the Agent, the Issuing Bank, nor any of
their respective Related Parties (for the purposes of this Section 7.2,
collectively, the "Indemnified Parties") shall be liable for any action taken or
omitted to be taken by any Indemnified Party under or in connection with this
Agreement or the other Credit Documents, INCLUDING ANY INDEMNIFIED PARTY'S OWN
NEGLIGENCE, except for any Indemnified Party's gross negligence or willful
misconduct. Without limitation of the generality of the foregoing, the Agent and
the Issuing Bank: (a) may treat the payee of any Revolving Loan Note as the
holder thereof until the Agent receives written notice of the assignment or
transfer thereof signed by such payee and in form satisfactory to the Agent; (b)
may consult with legal counsel (including counsel for the Borrower), independent
public accountants, and other experts selected by it and shall not be liable for
any action taken or omitted to be taken in good faith by it in accordance with
the advice of such counsel, accountants, or experts; (c) makes no warranty or
representation to any Bank and shall not be responsible to any Bank for any
statements, warranties, or representations made in or in connection with this
Agreement or the other Credit Documents; (d) shall not have any duty to
ascertain or to inquire as to the performance or observance of any of the terms,
covenants, or conditions of this Agreement or any other Credit Document on the
part of the Credit Parties or to inspect the property (including the books and
records) of the Credit Parties; (e) shall not be responsible to any Bank for the
due execution, legality, validity, enforceability, genuineness, sufficiency, or
value of this Agreement or any other Credit Document; and (f) shall incur no
liability under or in respect of this Agreement or any other Credit Document by
acting upon any notice, consent, certificate, or other instrument or writing
(which may be by telecopier or telex) reasonably believed by it to be genuine
and signed or sent by the proper party or parties.
7.3 Affiliates. With respect to its Revolving Loan Commitments, the
Revolving Loan Advances made by it, its interests in the Letters of Credit, and
the Revolving Loan Notes issued to it, the Agent and the Issuing Bank shall have
the same rights and powers under this Agreement as any other Bank and may
exercise the same as though it were not the Agent. The term "Bank" or "Banks"
shall, unless otherwise expressly indicated, include the Agent and the Issuing
Bank in their individual capacity. The Agent, the Issuing Bank, and their
respective Affiliates may accept deposits from, lend money to, act as trustee
under indentures of, and generally engage in any kind of business with, any
Credit Party, and any Person who may do business with or own securities of any
Credit Party, all as if the Agent
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were not an agent hereunder and the Issuing Bank were not the issuer of Letters
of Credit hereunder and without any duty to account therefor to the Banks.
7.4 Bank Credit Decision. Each Bank acknowledges that it has,
independently and without reliance upon the Agent or any other Bank and based on
the Financial Statements and such other documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Bank also acknowledges that it shall, independently and without
reliance upon the Agent or any other Bank and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement.
7.5 Expenses. To the extent not paid by the Borrower, each Bank
severally agrees to pay to the Agent and the Issuing Bank on demand such Bank's
ratable share of the following: (a) all reasonable out-of-pocket costs and
expenses of the Agent and the Issuing Bank in connection with the preparation,
execution, delivery, administration, modification, and amendment of this
Agreement and the other Credit Documents, including the reasonable fees and
expenses of outside counsel for the Agent and the Issuing Bank with respect to
advising the Agent and the Issuing Bank as to their respective rights and
responsibilities under this Agreement and the Credit Documents, and (b) all
out-of-pocket costs and expenses of the Agent and the Issuing Bank in connection
with the preservation or enforcement of the rights of the Agent, the Issuing
Bank, and the Banks under this Agreement and the other Credit Documents, whether
through negotiations, legal proceedings, or otherwise, including fees and
expenses of counsel for the Agent and the Issuing Bank. The provisions of this
paragraph shall survive the repayment and termination of the credit provided for
under this Agreement and any purported termination of this Agreement which does
not expressly refer to this paragraph.
7.6 Indemnification. To the extent not reimbursed by the Borrower, each
Bank severally agrees to protect, defend, indemnify, and hold harmless the
Agent, the Issuing Bank, and each of their respective Related Parties (for the
purposes of this Section 7.6, collectively, the "Indemnified Parties"), from and
against all demands, claims, actions, suits, damages, judgments, fines,
penalties, liabilities, and out-of-pocket costs and expenses, including
reasonable costs of attorneys and related costs of experts such as accountants
(collectively, the "Indemnified Liabilities"), actually incurred by any
Indemnified Party which are related to any litigation or proceeding relating to
this Agreement, the Credit Documents, or the transactions contemplated
thereunder, INCLUDING ANY INDEMNIFIED LIABILITIES CAUSED BY ANY INDEMNIFIED
PARTY'S OWN NEGLIGENCE, but not Indemnified Liabilities which are a result of
any Indemnified Party's gross negligence or willful misconduct. The provisions
of this paragraph shall survive the repayment and termination of the credit
provided for under this Agreement and any purported termination of this
Agreement which does not expressly refer to this paragraph.
7.7 Successor Agent and Issuing Bank. The Agent or the Issuing Bank may
resign at any time by giving written notice thereof to the Banks and the
Borrower and may
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be removed at any time with or without cause by the Majority Banks upon receipt
of written notice from the Majority Banks to such effect. Upon receipt of notice
of any such resignation or removal, the Majority Banks shall have the right to
appoint a successor Agent or Issuing Bank with the consent of the Borrower,
which consent shall not be unreasonably withheld. If no successor Agent or
Issuing Bank shall have been so appointed by the Majority Banks with the consent
of the Borrower, and shall have accepted such appointment, within 30 days after
the retiring Agent's or Issuing Bank's giving of notice of resignation or the
Majority Banks' removal of the retiring Agent or Issuing Bank, then the retiring
Agent or Issuing Bank may, on behalf of the Banks and the Borrower, appoint a
successor Agent or Issuing Bank, which shall be, in the case of a successor
agent, a commercial bank organized under the laws of the United States of
America or of any State thereof and having a combined capital and surplus of at
least $500,000,000 and, in the case of the Issuing Bank, a Bank. Upon the
acceptance of any appointment as Agent or Issuing Bank by a successor Agent or
Issuing Bank, such successor Agent or Issuing Bank shall thereupon succeed to
and become vested with all the rights, powers, privileges, and duties of the
retiring Agent or Issuing Bank, and the retiring Agent or Issuing Bank shall be
discharged from any duties and obligations under this Agreement and the other
Credit Documents after such acceptance, except that the retiring Issuing Bank
shall remain the Issuing Bank with respect to any Letters of Credit outstanding
on the effective date of its resignation or removal and the provisions affecting
the Issuing Bank with respect to such Letters of Credit shall inure to the
benefit of the retiring Issuing Bank until the termination of all such Letters
of Credit. After any Agent's or Issuing Bank's resignation or removal hereunder
as Agent or Issuing Bank, the provisions of this Article 7 shall inure to such
Person's benefit as to any actions taken or omitted to be taken by such Person
while such Person was Agent or Issuing Bank under this Agreement and the other
Credit Documents.
7.8 Syndication Agent and Documentation Agent. The Syndication Agent
and Documentation Agent shall have no duties, obligations, or liabilities
hereunder or in connection herewith in their capacities as Syndication Agent and
Documentation Agent.
ARTICLE 8. MISCELLANEOUS.
8.1 Expenses. The Borrower shall pay on demand of the applicable party
specified herein (a) all reasonable out-of-pocket costs and expenses of the
Agent and the Issuing Bank in connection with the preparation, execution,
delivery, administration, modification, and amendment of this Agreement and the
other Credit Documents, including the reasonable fees and expenses of outside
counsel for the Agent and the Issuing Bank, and (b) all out-of-pocket costs and
expenses of the Agent, the Issuing Bank, and each Bank in connection with the
preservation or enforcement of their respective rights under this Agreement and
the other Credit Documents, whether through negotiations, legal proceedings, or
otherwise, including fees and expenses of counsel for the Agent, the Issuing
Bank, and each Bank. The provisions of this paragraph shall survive the
repayment and termination of
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the credit provided for under this Agreement and any purported termination of
this Agreement which does not expressly refer to this paragraph.
8.2 Indemnification. The Borrower agrees to protect, defend, indemnify,
and hold harmless the Agent, the Issuing Bank, each Bank, and each of their
respective Related Parties (for the purposes of this Section 8.2, collectively,
the "Indemnified Parties"), from and against all demands, claims, actions,
suits, damages, judgments, fines, penalties, liabilities, and out-of-pocket
costs and expenses, including reasonable costs of attorneys and related costs of
experts such as accountants (collectively, the "Indemnified Liabilities"),
actually incurred by any Indemnified Party which are related to any litigation
or proceeding relating to this Agreement, the Credit Documents, or the
transactions contemplated thereunder, INCLUDING ANY INDEMNIFIED LIABILITIES
CAUSED BY ANY INDEMNIFIED PARTY'S OWN NEGLIGENCE, but not Indemnified
Liabilities which are a result of any Indemnified Party's gross negligence or
willful misconduct. The provisions of this paragraph shall survive the repayment
and termination of the credit provided for under this Agreement and any
purported termination of this Agreement which does not expressly refer to this
paragraph.
8.3 Modifications, Waivers, and Consents. No modification or waiver of
any provision of this Agreement or the Revolving Loan Notes, nor any consent
required under this Agreement or the Revolving Loan Notes, shall be effective
unless the same shall be in writing and signed by the Agent and Majority Banks
and the Borrower, and then such modification, waiver, or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided, however, that no modification, waiver, or consent shall, unless
in writing and signed by the Agent, all the Banks, and the Borrower do any of
the following: (a) waive any of the conditions specified in Section 3.1 or 3.2,
(b) increase the Revolving Loan Commitments of the Banks, (c) forgive or reduce
the amount or rate of any principal, interest, or fees payable under the Credit
Documents, or postpone or extend the time for payment thereof, (d) release any
Guaranty or any material collateral securing the Credit Obligations (except as
otherwise permitted or required herein), or (e) change the percentage of Banks
required to take any action under this Agreement, the Revolving Loan Notes, or
the Security Documents, including any amendment of the definition of "Majority
Banks" or this Section 8.3. No modification, waiver, or consent shall, unless in
writing and signed by the Agent or the Issuing Bank affect the rights or
obligations of the Agent or the Issuing Bank, as the case may be, under the
Credit Documents. The Agent shall not modify or waive or grant any consent under
any other Credit Document of such action would be prohibited under this Section
8.3 with respect to the Credit Agreement or the Revolving Loan Notes.
8.4 Survival of Agreements. All representations, warranties, and
covenants of the Borrower in this Agreement and the Credit Documents shall
survive the execution of this Agreement and the Credit Documents and any other
document or agreement.
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8.5 Assignment and Participation. This Agreement and the Credit
Documents shall bind and inure to the benefit of the Borrower and their
respective successors and assigns and the Agent and the Banks and their
respective successors and assigns. The Borrower may not assign its rights or
delegate its duties under this Agreement or any Credit Document.
(a) Assignments. Any Bank may assign to one or more banks or
other entities all or any portion of its rights and obligations under this
Agreement (including, without limitation, all or a portion of its Revolving Loan
Commitments, the Revolving Loan Advances owing to it, the Revolving Loan Notes
held by it, and the participation interest in the Letters of Credit owned by
it); provided, however, that (i) each such assignment shall be of a constant,
and not a varying, percentage of all of such Bank's rights and obligations under
this Agreement, (ii) assignments of Revolving Loan Commitments shall be made in
minimum amounts of $5,000,000 and be made in integral multiples of $1,000,000
and the assigning Bank, if it retains any Revolving Loan Commitments, shall
maintain at least $5,000,000 in Revolving Loan Commitments, (iii) each such
assignment shall be to an Eligible Assignee, (iv) the parties to each such
assignment shall execute and deliver to the Agent, for its acceptance and
recording in the Register, an Assignment and Acceptance, together with the
Revolving Loan Notes subject to such assignment, and (v) each Eligible Assignee
(other than the Eligible Assignee of the Agent) shall pay to the Agent a $3,500
administrative fee. Upon such execution, delivery, acceptance and recording,
from and after the effective date specified in each Assignment and Acceptance,
which effective date shall be at least three Business Days after the execution
thereof, (A) the assignee thereunder shall be a party hereto for all purposes
and, to the extent that rights and obligations hereunder have been assigned to
it pursuant to such Assignment and Acceptance, have the rights and obligations
of a Bank hereunder and (B) such Bank thereunder shall, to the extent that
rights and obligations hereunder have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights and be released from its
obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of such Bank's rights and
obligations under this Agreement, such Bank shall cease to be a party hereto).
(b) Term of Assignments. By executing and delivering an
Assignment and Acceptance, the Bank thereunder and the assignee thereunder
confirm to and agree with each other and the other parties hereto as follows:
(i) other than as provided in such Assignment and Acceptance, such Bank makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this
Agreement or the execution, legality, validity, enforceability, genuineness,
sufficiency of value of this Agreement or any other instrument or document
furnished pursuant hereto; (ii) such Bank makes no representation or warranty
and assumes no responsibility with respect to the financial condition of any
Credit Party or the performance or observance by any Credit Party of any of its
obligations under this Agreement or any other instrument or document furnished
pursuant hereto; (iii) such assignee confirms that it has received a copy of
this Agreement, together with copies of the Financial Statements and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into such Assignment and Acceptance; (iv) such
assignee shall,
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independently and without reliance upon the Agent, such Bank or any other Bank
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under this Agreement; (v) such assignee appoints and authorizes the Agent to
take such action as agent on its behalf and to exercise such powers under this
Agreement as are delegated to the Agent by the terms hereof, together with such
powers as are reasonably incidental thereto; and (vi) such assignee agrees that
it shall perform in accordance with their terms all of the obligations which by
the terms of this Agreement are required to be performed by it as a Bank.
(c) The Register. The Agent shall maintain at its address
referred to in Section 8.6 a copy of each Assignment and Acceptance delivered to
and accepted by it and a register for the recordation of the names and addresses
of the Banks and the Revolving Loan Commitments of each Bank from time to time
(the "Register"). The entries in the Register shall be conclusive and binding
for all purposes, absent manifest error, and the Borrower, the Agent, the
Issuing Bank, and the Banks may treat each Person whose name is recorded in the
Register as a Bank hereunder for all purposes of this Agreement. The Register
shall be available for inspection by the Borrower or any Bank at any reasonable
time and from time to time upon reasonable prior notice.
(d) Procedures. Upon its receipt of an Assignment and
Acceptance executed by a Bank and an Eligible Assignee, together with the
Revolving Loan Notes subject to such assignment, the Agent shall, if such
Assignment and Acceptance has been completed in the appropriate form, (i) accept
such Assignment and Acceptance, (ii) record the information contained therein in
the Register, and (iii) give prompt notice thereof to the Borrower. Within five
Business Days after its receipt of such notice, the Borrower shall execute and
deliver to the Agent in exchange for the surrendered Revolving Loan Notes a new
Revolving Loan Note to the order of such Eligible Assignee in an amount equal to
the Revolving Loan Commitment assumed by it pursuant to such Assignment and
Acceptance and, if such Bank has retained any Revolving Loan Commitment
hereunder, a new Revolving Loan Note to the order of such Bank in an amount
equal to the Revolving Loan Commitment retained by it hereunder. Such new
Revolving Loan Notes shall be dated the effective date of such Assignment and
Acceptance and shall be in the appropriate form.
(e) Participation. Each Bank may sell participation to one or
more banks or other entities in or to all or a portion of its rights and
obligations under this Agreement (including, without limitation, all or a
portion of its Revolving Loan Commitments, the Revolving Loan Advances owing to
it, its participation interest in the Letters of Credit, and the Revolving Loan
Notes held by it); provided, however, that (i) such Bank's obligations under
this Agreement (including, without limitation, its Revolving Loan Commitments to
the Borrower hereunder) shall remain unchanged, (ii) such Bank shall remain
solely responsible to the other parties hereto for the performance of such
obligations, (iii) such Bank shall remain the holder of any such Revolving Loan
Notes for all purposes of this Agreement, (iv) the Borrower, the Agent, and the
Issuing Bank and the other Banks shall continue to deal solely and directly with
such Bank in connection with such Bank's rights and obligations under
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this Agreement, and (v) such Bank shall not require the participant's consent to
any matter under this Agreement, except for change in the principal amount of
the Revolving Loan Notes, reductions in fees or interest, extending the
applicable maturity date, or releasing any collateral or guarantor (except to
the extent otherwise permitted herein or in any of the other Credit Documents).
The Borrower hereby agrees that participants shall have the same rights under
Sections 2.6, 2.7, 2.8, 2.9, 2.10, and 8.2 as a Bank to the extent of their
respective participation.
(f) Assignments or Pledges to Federal Reserve Banks. In
addition to the foregoing rights of assignment and participation, any Bank may
assign or pledge any portion of its rights under this Agreement (including the
Revolving Loan Advances owed to such Bank) to any Federal Reserve Bank in
accordance with applicable law without notice to or the consent of the Borrower
or the Agent, provided that (i) such Bank shall not be relieved of its
obligations under this Agreement as a result thereof and (ii) in no event shall
the Federal Reserve Bank be entitled to direct the actions of the pledging or
assigning Bank under this Agreement.
8.6 Notice. All notices and other communications under this Agreement,
the Swing Line Note, and the Revolving Loan Notes shall be in writing and mailed
by certified mail (return receipt requested), telecopied, telexed, hand
delivered, or delivered by a nationally recognized overnight courier, to the
address for the appropriate party specified in Schedule I or at such other
address as shall be designated by such party in a written notice to the other
parties. Mailed notices shall be effective when received. Telecopied or telexed
notices shall be effective when transmission is completed or confirmed by telex
answerback. Delivered notices shall be effective when delivered by messenger or
courier. Notwithstanding the foregoing, notices and communications to the Agent
pursuant to Article 2 or 7 shall not be effective until received by the Agent.
8.7 Choice of Law. This Agreement, the Swing Line Note, and the
Revolving Loan Notes have been prepared, are being executed and delivered, and
are intended to be performed in the State of Texas, and the substantive laws of
the State of Texas and the applicable federal laws of the United States shall
govern the validity, construction, enforcement, and interpretation of this
Agreement, the Swing Line Note, and the Revolving Loan Notes; provided however,
Chapter 346 of the Texas Finance Code shall not apply to this Agreement, the
Swing Line Note, the Revolving Loan Notes, to any of the other Credit Documents,
or to the loan transactions evidenced or contemplated by this Agreement. Each
Letter of Credit shall be governed by the Uniform Customs and Practice for
Documentary Credits, International Chamber of Commerce Publication No. 500 (1993
version).
8.8 Forum Selection. THE BORROWER IRREVOCABLY CONSENTS TO THE
JURISDICTION OF THE COURTS OF THE STATE OF TEXAS AND OF ANY FEDERAL COURT
LOCATED IN SUCH STATE IN CONNECTION WITH ANY ACTION OR PROCEEDING ARISING OUT OF
OR RELATING TO THE CREDIT DOCUMENTS OR ANY TRANSACTIONS RELATED THERETO. THE
BORROWER
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AGREES AND SHALL NOT CONTEST THAT PROPER FORUM AND VENUE FOR ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THE CREDIT DOCUMENTS OR ANY
TRANSACTIONS RELATING THERETO ARE IN THE COURTS OF THE STATE OF TEXAS IN XXXXXX
COUNTY, TEXAS, AND THE FEDERAL COURTS LOCATED IN XXXXXX COUNTY, TEXAS. THE
BORROWER IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO
THE FOREGOING BASED UPON CLAIMS THAT THE FOREGOING COURTS ARE AN INCONVENIENT
FORUM.
8.9 Service of Process. IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THE CREDIT DOCUMENTS OR ANY TRANSACTIONS RELATING THERETO, THE
BORROWER WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT, OR OTHER PROCESS OR
NOTICE AND AGREES THAT SERVICE BY FIRST CLASS MAIL, RETURN RECEIPT REQUESTED, TO
THE BORROWER AT ITS ADDRESS FOR NOTICES HEREUNDER, OR ANY OTHER FORM OF SERVICE
PROVIDED FOR IN THE TEXAS CIVIL PRACTICE LAW AND RULES THEN IN EFFECT SHALL
CONSTITUTE GOOD AND SUFFICIENT SERVICE UPON THE BORROWER.
8.10 Waiver of Jury Trial. THE BORROWER IRREVOCABLY WAIVES ANY RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THE CREDIT
DOCUMENTS OR ANY TRANSACTIONS RELATING THERETO.
8.11 Counterparts. This Agreement may be executed in multiple
counterparts which together shall constitute one and the same instrument.
8.12 No Further Agreements. THIS WRITTEN AGREEMENT AND THE CREDIT
DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.
[The remainder of this page is intentionally blank.]
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THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
EXECUTED as of the date first above written.
BORROWER:
TYLER TECHNOLOGIES, INC.
By:
-----------------------------------------
Xxxxx X. Xxxxxx, Vice President
AGENT:
BANK OF AMERICA, N.A., as Agent
By:
-----------------------------------------
Xxxxx X. Xxxx, Senior Vice President
BANKS:
BANK OF AMERICA, N.A.
By:
-----------------------------------------
Xxxxx X. Xxxx, Senior Vice President
Revolving Loan Commitment: [$35,000,000]
S-1
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CHASE BANK OF TEXAS, N.A.
By:
-----------------------------------------
Name:
---------------------------------------
Title:
--------------------------------------
Revolving Loan Commitment: [$20,000,000]
S-2
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BANK ONE, TEXAS, N.A.
By:
-----------------------------------------
Name:
---------------------------------------
Title:
--------------------------------------
Revolving Loan Commitment: [$20,000,000]
X-0
00
XXXXX XXXXXXX XXXX, NATIONAL ASSOCIATION
By:
-----------------------------------------
Name:
---------------------------------------
Title:
--------------------------------------
Revolving Loan Commitment: [$5,000,000]
S-4
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Exhibit A
FORM OF
COMPLIANCE CERTIFICATE
[date]
Bank of America, N.A., as Agent
for the financial institutions parties to the
Credit Agreement referred to below
000 Xxxxxxxxx, 0xx Xxxxx
Xxxxxxx, Xxxxx 00000
Attention: Xx. Xxxxxxx X. Xxxxxxx, Xx.
Ladies and Gentlemen:
Tyler Technologies, Inc., refers to the Credit Agreement dated as of
October 1, 1999 (as the same may be modified from time to time, the "Credit
Agreement"), among Tyler Technologies, Inc. (the "Borrower"), certain financial
institutions which are or may become parties thereto, as Banks, Bank of America,
N.A., as Agent for the Banks, Chase Bank of Texas, N.A., as the Syndication
Agent, Bank One, Texas, N.A. as Documentation Agent, and Banc of America
Securities LLC, as Lead Arranger and Book Manager, the defined terms of which
are used herein unless otherwise defined herein.
I hereby certify that I have no knowledge of any Defaults by the Borrower in the
observance of any of the provisions in the Credit Agreement which existed as of
[_______________] or which exist as of the date of this letter.
I also certify that the accompanying consolidated Financial Statements present
fairly, in all material respects, the consolidated financial condition of the
Borrower as of [_______________], and the related results of operations for the
[_______________] then ended, in conformity with generally accepted accounting
principles (subject, with respect to financial statements furnished pursuant to
Section 5.2(b) of the Credit Agreement, to normal year-end audit adjustments).
The following sets forth the information and computations to demonstrate
compliance with the requirements of Section 5.5 of the Credit Agreement as of
[_______________]:
73
1. Section 5.5(a) Net Worth
a. Net Worth $
----------------
b. 75% of cumulative quarterly consolidated
positive net income of Borrower for each
fiscal quarter ending after June 30, 1999 $
----------------
c. 100% of net proceeds resulting from any sale or
issuance of any stock of Borrower or its
Subsidiaries since June 30, 1999 $
----------------
d. 100% of any increase in the consolidated
Net Worth of the Borrower resulting from any
Acquisition since June 30, 1999 (which increase
has not included the calculation of 1.(b) or 1(c)) $
----------------
e. Minimum Net Worth requirement =
$94,559,000 + 1(b) + 1(c) + 1(d) $
----------------
2. Section 5.5(b) Debt Ratio
a. consolidated Debt as of fiscal quarter
most recently ended $
----------------
b. consolidated Proforma EBITDA of the Borrower
for the preceding four fiscal quarters (prior to
Schedule III addbacks) $
----------------
c. Schedule III addbacks for preceding four fiscal quarters $
----------------
d. adjusted Proforma EBITDA of the Borrower = 2(b) + 2(c) $
----------------
e. Debt Ratio 2(a) / 2(d) to 1.00
---------
f. maximum permitted Debt Ratio
prior to June 30, 2000 3.00 to 1.00
from June 30, 2000 to but excluding
December 31, 2000 2.75 to 1.00
from December 31, 2000 and thereafter 2.50 to 1.00
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74
3. Section 5.5(c) Fixed Charge Coverage Ratio
a. consolidated EBITDA for preceding four fiscal
quarters (prior to Schedule III addbacks) $
----------------
b. Schedule III addbacks for preceding four fiscal quarters $
----------------
c. adjusted EBITDA of the Borrower = 2(a) + 2(b) $
----------------
d. consolidated cash taxes paid for preceding
four fiscal quarters $
----------------
e. consolidated Capital Expenditures for
the preceding four fiscal quarters, exclusive of
Excluded Database Expenditures $
----------------
f. consolidated interest expense for preceding
four fiscal quarters $
----------------
g. capitalized interest for preceding
four fiscal quarters $
----------------
h. consolidated cash dividends paid for preceding
four fiscal quarters $
----------------
i. ratio = (3.(c) - 3(d) - 3(e)) / (3(f) + 3(g) + 3(h) to 1.00
---------
j. minimum required 2.50 1.00
4. Section 5.5(d) Capital Expenditures
a. consolidated Capital Expenditures for preceding four
fiscal quarters $
----------------
b. aggregate amount of Capital Expenditures for
preceding four fiscal quarters made with proceeds
from Borrower's equity offering $
----------------
c. adjusted consolidated Capital Expenditures
= 4(a) - 4(b) $
----------------
d. Borrower's Current Net Worth $
----------------
e. maximum permitted Capital Expenditures
= 4(d) x 0.10 $
----------------
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5. Permitted Debt
a. Debt attributed to paragraph (f)
of definition of the "Permitted Debt" $
----------------
b. maximum permitted $10,000,000
Very truly yours,
TYLER TECHNOLOGIES, INC.
By:
--------------------------------
Name:
------------------------------
Title:
-----------------------------
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Exhibit B
FORM OF
REVOLVING LOAN BORROWING REQUEST
[date]
Bank of America, N.A., as Agent
Attn: Xx. Xxxxxxx X. Xxxxxxx, Xx.
000 Xxxxxxxxx, 0xx Xxxxx
Xxxxxxx, Xxxxx 00000
Telephone: 000-000-0000
Telecopier: 000-000-0000
Ladies and Gentlemen:
The undersigned, Tyler Technologies, Inc., a Delaware corporation ("Borrower"),
refers to the Credit Agreement dated as of October 1, 1999 (as the same may be
modified from time to time, the "Credit Agreement," the defined terms of which
are used in this Revolving Loan Borrowing Request unless otherwise defined in
this Revolving Loan Borrowing Request), among the Borrower, certain financial
institutions which are or may become parties thereto ("Banks"), Bank of America,
N.A., as Agent for the Banks ("Agent"), Chase Bank of Texas, N.A., as the
Syndication Agent, Bank One, Texas, N.A. as Documentation Agent, and Banc of
America Securities LLC, as Lead Arranger and Book Manager, and hereby gives you
irrevocable notice pursuant to Section 2.1(b)(i) of the Credit Agreement that
the undersigned hereby requests a Revolving Loan Borrowing (the "Proposed
Borrowing") on the terms set on the following page:
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Date of Revolving Loan Borrowing(1) :
Type of Tranches(2) :
Aggregate Amount(3) :
Tranche Amount(4) (if more than 1 Tranche) :
Interest Period(5) :
The undersigned hereby certifies that the following statements are true on the
date hereof, and will be true on the date of the Proposed Borrowing:
(a) the representations and warranties contained in the Credit
Agreement are correct in all material respects, before and after giving effect
to the Proposed Borrowing and the application of the proceeds therefrom, as
though made on the date of the Proposed Borrowing;
(b) no Default has occurred and remains uncured, nor would result from
the Proposed Borrowing or from the application of the proceeds therefrom; and
(c) following the making of the proposed Revolving Loan Borrowing and
all other Revolving Loan Borrowings to be made on the same day to the Borrower,
the aggregate outstanding principal amount of the Revolving Loan plus the Letter
of Credit Exposure (which shall be outstanding at the end of such day) plus the
amount of the Swing Line Loan (which shall be outstanding at the end of such
day) shall not exceed the aggregate amount of the Revolving Loan Commitments.
------------------
(1) The Date of Revolving Loan Borrowing for the Proposed Borrowing must be
a Business Day. The Borrower must give three Business Days' advance notice for
Revolving Loan Borrowings that include any LIBOR Tranche and same day notice for
Revolving Loan Borrowings that include only Base Rate Tranches.
(2) The type of Tranches comprising the Proposed Borrowing may be Base Rate
Tranches and/or LIBOR Tranches subject to the provisions of Section 2.5(a).
(3) The Aggregate Amount of the Proposed Borrowing for LIBOR Tranches must
be in an amount at least equal to the Minimum Borrowing Amount of $5,000,000 and
in multiples of the Minimum Borrowing Multiple of $1,000,000. The Aggregate
Amount of the Proposed Borrowing for Base Rate Tranches must be in an amount at
least equal to the Minimum Borrowing Amount of $1,000,000 and in multiples of
the Minimum Borrowing Multiple of $500,000.
(4) The Tranche Amount of the Proposed Borrowing for LIBOR Tranches must be
in an amount of at least the Minimum Borrowing Amount of $5,000,000 and in
multiples of the Minimum Borrowing Multiple of $1,000,000. The Tranche Amount of
the Proposed Borrowing for Base Rate Tranches must be in an amount of at least
the Minimum Borrowing Amount of $1,000,000 and in multiples of the Minimum
Borrowing Multiple of $500,000.
(5) The Interest Period applies only to Revolving Loan Borrowings including
LIBOR Tranches and may be one, two, three, or six months. Insert "N/A" for
Revolving Loan Borrowings which include only Base Rate Tranches.
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Very truly yours,
TYLER TECHNOLOGIES, INC.
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
-3-
79
Exhibit C
FORM OF
INTEREST RATE ELECTION REQUEST
[date]
Bank of America, N.A., as Agent
for the financial institutions parties to the
Credit Agreement referred to below
000 Xxxxxxxxx, 0xx Xxxxx
Xxxxxxx, Xxxxx 00000
Attention: Xx. Xxxxxxx X. Xxxxxxx, Xx.
The undersigned, Tyler Technologies, Inc., refers to the Credit Agreement dated
as of October 1, 1999 (as the same may be modified from time to time, the
"Credit Agreement"), among Tyler Technologies, Inc. (the "Borrower"), certain
financial institutions which are or may become parties thereto, as Banks, Bank
of America, N.A., as Agent for the Banks, Chase Bank of Texas, N.A., as the
Syndication Agent, Bank One, Texas, N.A. as Documentation Agent, and Banc of
America Securities LLC, as Lead Arranger and Book Manager, the defined terms of
which are used herein unless otherwise defined herein. Borrower hereby gives you
irrevocable notice pursuant to Section 2.5(a) of the Credit Agreement that the
undersigned hereby requests a [conversion][continuation] of the outstanding
Tranche described below into a new Tranche (the "Proposed Tranche") on the terms
set forth below:
Outstanding Tranche
Date of Tranche's Origination :
Type of Tranche :
Aggregate Amount
for Continuation/
Conversion :
Interest Period :
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Proposed Tranche
Date of Continuation
or Conversion(1) :
Type of Tranche(2) :
Aggregate Amount(3) :
Interest Period(4) :
The undersigned hereby certifies that the following statements are true on the
date hereof, and will be true on the date of the Proposed Tranche:
(a) the representations and warranties contained in the Credit
Agreement are correct in all material respects, before and after giving effect
to the Proposed Tranche/Tranches and the application of the proceeds therefrom,
as though made on the date of the Proposed Tranche/Tranches; and
(b) no Default has occurred and remains uncured, nor would result from
the Proposed Tranche.
Very truly yours,
TYLER TECHNOLOGIES, INC.
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
------------------
(1) The Date of the proposed continuation or conversion must be a Business
Day. The Borrower must give three Business Days' advance notice for conversions
into or continuations of LIBOR Tranches.
(2) The Type of Tranches may be Base Rate Tranches or LIBOR Tranches.
(3) The Aggregate Amount of the Proposed Tranche for LIBOR Tranches must be
in an amount at least equal to the Minimum Borrowing Amount of $5,000,000 and in
multiples of the Minimum Borrowing Multiple of $1,000,000. The Aggregate Amount
of the Proposed Tranche for Base Rate Tranches must be in an amount at least
equal to the Minimum Borrowing Amount of $1,000,000 and in multiples of the
Minimum Borrowing Multiple of $500,000.
(4) The Interest Period applies only to LIBOR Tranches and may be one, two,
three, or six months. Insert "N/A" for Prime Rate Tranches.
-2-
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Exhibit D
PROMISSORY NOTE
[Bank Name]
$[Amount] Houston, Texas [Date]
For value received, the undersigned TYLER TECHNOLOGIES, INC., a
Delaware corporation ("Borrower"), hereby promises to pay to the order of [Bank
Name] ("Bank"), the principal amount of [Amount] ($ ) or, if less, the aggregate
outstanding principal amount of the Revolving Loan Advances (as defined in the
Credit Agreement referred to below) made by the Bank to the Borrower, together
with accrued but unpaid interest on the principal amount of each such Revolving
Loan Advance from the date of such Revolving Loan Advance until such principal
amount is paid in full, at such interest rates, and at such times, as are
specified in the Credit Agreement.
This Revolving Loan Note is one of the Revolving Loan Notes referred to
in, and is entitled to the benefits of, and is subject to the terms of, the
Credit Agreement dated as of October 1, 1999 (as the same may be modified from
time to time, the "Credit Agreement"), among the Borrower, the financial
institutions parties thereto ("Banks"), Bank of America, N.A., as Agent for the
Banks ("Agent"), Chase Bank of Texas, N.A., as the Syndication Agent, Bank One,
Texas, N.A. as the Documentation Agent, and Banc of America Securities LLC, as
Lead Arranger and Book Manager. Capitalized terms used herein but not defined
herein shall have the meanings specified by the Credit Agreement. The Credit
Agreement, among other things, (a) provides for the making of Revolving Loan
Advances by the Bank to the Borrower from time to time, the indebtedness of the
Borrower resulting from each such Revolving Loan Advance being evidenced by this
Revolving Loan Note, and (b) contains provisions for acceleration of the
maturity of this Revolving Loan Note upon the happening of certain events stated
in the Credit Agreement and for prepayments of principal prior to the maturity
of this Revolving Loan Note upon the terms and conditions specified in the
Credit Agreement.
Both principal and interest are payable to the Agent in the currency,
at the times, in the locations, and in the manner specified in the Credit
Agreement. The Bank shall record all Revolving Loan Advances and payments of
principal made under this Revolving Loan Note, but no failure of the Bank to
make such recordings shall affect the Borrower's repayment obligations under
this Revolving Loan Note.
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82
It is contemplated that because of prepayments there may be times when
no indebtedness is owed under this Revolving Loan Note. Notwithstanding such
prepayments, this Revolving Loan Note shall remain valid and shall be in force
as to Revolving Loan Advances made pursuant to the Credit Agreement after such
prepayments.
It is the intention of the Bank and the Borrower to conform strictly to
any applicable usury laws. Accordingly, the terms of the Credit Agreement
relating to the prevention of usury will be strictly followed.
THIS WRITTEN AGREEMENT AND THE CREDIT DOCUMENTS REPRESENT THE FINAL
AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
EXECUTED as of the date first above written.
TYLER TECHNOLOGIES, INC.
By:
-------------------------------
Name:
-----------------------------
Title:
----------------------------
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Exhibit E
FORM OF
ASSIGNMENT AND ACCEPTANCE
[date]
Reference is made to the Credit Agreement dated as of October 1, 1999
(as the same may be modified from time to time, the "Credit Agreement"), among
Tyler Technologies, Inc. (the "Borrower"), certain financial institutions which
are or may become parties thereto, as Banks, Bank of America, N.A., as Agent for
the Banks, Chase Bank of Texas, N.A., as the Syndication Agent, Bank One, Texas,
N.A. as Documentation Agent, and Banc of America Securities LLC, as Lead
Arranger and Book Manager, the defined terms of which are used herein unless
otherwise defined herein.
Pursuant to the terms of the Credit Agreement, [ ] ("Assignor"),
wishes to assign and delegate to [ ] ("Assignee"), [ ]%(1) of its
rights and obligations under the Credit Agreement. Therefore, Assignor,
Assignee, and the Agent agree as follows:
i. The Assignor hereby sells and assigns and delegates to the
Assignee, and the Assignee hereby purchases and assumes from the Assignor,
without recourse to the Assignor and without representation or warranty except
for the representations and warranties specifically set forth in clauses (i),
(ii), and (iii) of this Assignment and Acceptance, a [ ]% interest in and
to all of the Assignor's rights and obligations under the Credit Agreement and
the other Credit Documents as of the Effective Date (as defined below),
including such percentage interest in the Assignor's Revolving Loan Commitment,
the Revolving Loan Advances owing to the Assignor, the Assignor's ratable
participation interest in the Letters of Credit, and the Revolving Loan Note[s]
held by the Assignor.
ii. The Assignor (i) represents and warrants that, prior to
executing this Assignment and Acceptance, its Revolving Loan Commitment is
$[ ], the aggregate outstanding principal amount of Revolving Loan
Advances owed by the Borrower to the Assignor is $[ ], and its ratable
share of the Letter of Credit Exposure is $[ ]; (ii) represents and warrants
that it is the legal and beneficial owner of the interest being
----------------------
(1) Specify percentage to 4 decimal points.
-1-
84
assigned by it hereunder and that such interest is free and clear of any adverse
claim; (iii) makes no representation or warranty and assumes no responsibility
with respect to any statements, warranties, or representations made in or in
connection with the Credit Agreement or any other Credit Document or the
execution, legality, validity, enforceability, genuineness, sufficiency, or
value of the Credit Agreement or any other Credit Document or any other
instrument or document furnished pursuant thereto; (iv) makes no representation
or warranty and assumes no responsibility with respect to the financial
condition of the Borrower or any Guarantor or the performance or observance by
the Borrower or any Guarantor of any of its obligations under the Credit
Agreement or any other Credit Document or any other instrument or document
furnished pursuant thereto; and (v) attaches the Revolving Loan Note[s] referred
to in Section 1 above and requests that the Agent exchange such Revolving Loan
Note[s] for a new Revolving Loan Note dated [ ] made by [ ], in
the principal amount of $[ ] payable to the order of the Assignee [, and
a new Revolving Loan Note dated [ ], in the principal amount of
$[ ] payable to the order of Assignor].
iii. The Assignee (i) confirms that it has received a copy of
the Credit Agreement, together with copies of the Financial Statements referred
to in Section 4.7 thereof and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Acceptance; (ii) agrees that it will, independently and
without reliance upon the Agent, the Assignor, or any other Bank, and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
the Credit Agreement or any other Credit Document; (iii) appoints and authorizes
the Agent to take such action as agent on its behalf and to exercise such powers
under the Credit Agreement and any other Credit Document as are delegated to the
Agent by the terms thereof, together with such powers as are reasonably
incidental thereto; (iv) agrees that it will perform all of the obligations
which by the terms of the Credit Agreement or any other Credit Document are
required to be performed by it as a Bank; (v) specifies as its Applicable
Lending Office and address for notices the offices set forth beneath its name on
the signature pages hereof; (vi) attaches the forms prescribed by the Internal
Revenue Service of the United States certifying as to the Assignee's status for
purposes of determining exemption from United States withholding taxes with
respect to all payments to be made to the Assignee under the Credit Agreement
and the Revolving Loan Notes or such other documents as are necessary to
indicate that all such payments are subject to such rates at a rate reduced by
an applicable tax treaty2, and (vii) represents that it is an Eligible Assignee.
iv. The effective date for this Assignment and Acceptance
shall be [ ] ("Effective Date")3, and following the execution of this
Assignment and Acceptance, the Agent will record it in the register.
-----------------
(2) If the Assignee is organized under the laws of a jurisdiction outside
the United States.
(3) See Section 8.5. Such date shall be at least three Business Days after
the execution of this Assignment and Acceptance.
-2-
85
v. Upon such recording, and as of the Effective Date, (i) the
Assignee shall be a party to the Credit Agreement for all purposes, and, to the
extent provided in this Assignment and Acceptance, have the rights and
obligations of a Bank thereunder and (ii) the Assignor shall, to the extent
provided in this Assignment and Acceptance, relinquish its rights (other than
rights against the Borrowers pursuant to Section 8.1 and 8.2 of the Credit
Agreement, which shall survive this Assignment and Acceptance) and be released
from its obligations (other than obligations to the Agent pursuant to Section
7.5 and 7.6 of the Credit Agreement, which shall survive this Assignment and
Acceptance) under the Credit Agreement.
vi. Upon such recording, from and after the Effective Date,
the Agent shall make all payments under the Credit Agreement and the Revolving
Loan Notes in respect of the interest assigned hereby (including all payments of
principal, interest, and fees) to the Assignee. The Assignor and Assignee shall
make all appropriate adjustments for amounts earned under the Credit Agreement
and the Revolving Loan Notes for periods prior to the Effective Date directly
between themselves.
vii. This Assignment and Acceptance shall be governed by, and
construed and enforced in accordance with, the laws of the State of Texas.
The parties hereto have caused this Assignment and Acceptance to be
duly executed as of the date first above written.
ASSIGNOR:
[ASSIGNOR]
By:
----------------------------------
Name:
--------------------------------
Title:
-------------------------------
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ASSIGNEE:
[ASSIGNEE]
By:
----------------------------------------
Name:
--------------------------------------
Title:
-------------------------------------
Notice Address:
Address:
-----------------------------------
-------------------------------------------
-------------------------------------------
Attention:
---------------------------------
Telephone:
---------------------------------
Telecopy:
----------------------------------
Applicable Lending Office:
Address:
-----------------------------------
-------------------------------------------
-------------------------------------------
Attention:
---------------------------------
Telephone:
---------------------------------
Telecopy:
----------------------------------
AGENT:
BANK OF AMERICA, N.A.,
as Agent
By:
----------------------------------------
Xxxxxxx X. Xxxxxxx, Xx.
Senior Vice President
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[ACKNOWLEDGED
this day of , .
----- ----------------- ----
BORROWER:
TYLER CORPORATION
By:
----------------------------------
Name:
----------------------------------
Title: ](4)
----------------------------------
---------------
(4) The Borrower's acknowledgement of this Assignment and Acceptance is not
required.
-5-
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Exhibit G
FORM OF
ACQUISITION EBITDA CERTIFICATE
[date]
Tyler Technologies, Inc.
Quarter Quarter Quarter Quarter 12 Months
Ended Ended Ended Ended Ended
--------- --------- --------- --------- ---------
Consolidated Debt of Borrower (a)
=========
Consolidated historical EBITDA
--------- --------- --------- --------- ---------
Add Proforma EBITDA of Acquisitions:
------------------------------------------ --------- --------- --------- --------- ---------
------------------------------------------ --------- --------- --------- --------- ---------
------------------------------------------ --------- --------- --------- --------- ---------
(b) Proforma Consolidated EBITDA
========= ========= ========= ========= =========
Debt Ratio: (a) / (b)
=========
Maximum permitted Debt Ratio
prior to June 30, 2000 3.00 to 1.00
from June 30, 2000 to but excluding
December 31, 2000 2.75 to 1.00
from December 31, 2000 and thereafter 2.50 to 1.00
1
