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EXHIBIT 10.29
THIRD AMENDED AND RESTATED
CREDIT AGREEMENT
THIS THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this
"Agreement") is made and entered into as of this 20th day of January, 1999, by
and among STAFFMARK, INC., a Delaware corporation (the "Borrower"), XXXXXX
XXXXXXX PLC, a limited liability company organized and existing under the laws
of England and Wales ("Xxxxxx Xxxxxxx"), XXXXXX XXXXXXX TRISTAR PTY LTD., a
limited liability company organized and existing under the laws of Australia
("Tristar," and with Xxxxxx Xxxxxxx referred to herein as the "Alternate
Currency Borrowers"), the undersigned lenders and any other lenders hereafter
becoming a party to this Agreement (the "Lenders"), THE FIRST NATIONAL BANK OF
CHICAGO, as syndication agent on behalf of Lenders (in such capacity, the
"Syndication Agent") and MERCANTILE BANK NATIONAL ASSOCIATION, as administrative
agent on behalf of Lenders (in such capacity, the "Administrative Agent" and
collectively with the Syndication Agent referred to herein as the "Agents"), and
BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, CREDIT LYONNAIS NEW YORK
BRANCH, FLEET NATIONAL BANK and FIRST UNION NATIONAL BANK, as co-agents on
behalf of the Lenders (in such capacity, the "Co-Agents").
WITNESSETH:
WHEREAS, the Borrower and the Lenders heretofore entered into
that certain Credit Agreement dated October 4, 1996, as amended by that certain
First Amendment to Credit Agreement dated as of December 18, 1996, and that
certain Second Amendment to Credit Agreement dated as of May 30, 1997, as
amended and restated by that certain Amended and Restated Credit Agreement dated
March 9, 1998 as amended by that certain First Amendment to Amended and Restated
Credit Agreement dated March 16, 1998, and as further amended and restated by
that certain Second Amended and Restated Credit Agreement dated August 20, 1998
(as so amended, the "Prior Credit Agreement"); and
WHEREAS, the Borrower has applied for an additional
$50,000,000.00 in loans; and
WHEREAS, the Borrower, Agents and Lenders desire to amend and
restate the Prior Credit Agreement to, among other things, increase the
aggregate principal amount of loans available thereunder from $250,000,000.00 to
$300,000,000.00, add a foreign currency facility and add the Alternate Currency
Borrowers as parties hereto for the limited purpose of allowing the Alternate
Currency Borrowers to borrow under such foreign currency facility, add Banque
Nationale de Paris, Houston Agency and Wachovia Bank, N.A. as parties to the
Credit Agreement as "Lenders," amend the interest rates, and amend and restate
the Notes, upon the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the premises and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby mutually amend and restate the Prior
Credit Agreement so that in its entirety it reads as follows:
SECTION 1. TERM.
The "Term" of this Agreement shall commence on the date hereof
and shall end on August 20, 2003, unless earlier terminated pursuant to Section
3.12 or by acceleration or otherwise
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upon the occurrence of an Event of Default under this Agreement, in which case
the Term hereof shall end on such earlier date.
SECTION 2. DEFINITIONS.
In addition to the terms defined elsewhere in this Agreement
or in any Exhibit or Schedule hereto, when used in this Agreement, the following
terms shall have the following meanings (such meanings shall be equally
applicable to the singular and plural forms of the terms used, as the context
requires):
Acceptable Acquisition shall mean any Acquisition of an
ongoing business similar to or consistent with the Borrower's current line of
business where each of the following are true: (a) such Acquisition has been:
(i) in the event a corporation or its assets is the subject of such Acquisition,
either (x) approved by the Board of Directors of the corporation which is the
subject of such Acquisition or (y) recommended by such Board of Directors to the
shareholders of such corporation, (ii) in the event a partnership is the subject
of such Acquisition, approved by a majority (by percentage of voting power) of
the partners of the partnership which is the subject of such Acquisition or as
otherwise required by any applicable partnership agreement, (iii) in the event
an organization or entity other than a corporation or partnership is the subject
of such Acquisition, approved by a majority (by percentage of voting power) of
the governing body, if any, or by a majority (by percentage of ownership
interest) of the owners of the organization or entity which is the subject of
such Acquisition or (iv) in the event the corporation, partnership or other
organization or entity which is the subject of such Acquisition is in
bankruptcy, approved by the bankruptcy court or another court of competent
jurisdiction; (b) Borrower has given Administrative Agent at least ten (10)
Business Days prior written notice of such Acquisition if Lenders' consent is
required under the succeeding clause (c) or three (3) Business Days prior
written notice of such Acquisition if Lenders' consent is not required under the
succeeding clause (c); (c) if (i) the sum of: (x) the principal amount of any
Loan requested in connection with such Acquisition, plus (y) the then
outstanding principal balance of all Loans plus the undrawn face amount of any
issued and outstanding Letters of Credit, exceeds $100,000,000.00, and the
portion of the purchase price for such Acquisition payable by Borrower in cash
(whether payable at closing or at any time or times after closing on the
Acquisition, and if payable after closing and not determinable prior to closing,
as reasonably estimated by Borrower, and in any event including the amount of
any Indebtedness assumed by Borrower or any Subsidiary of Borrower as a part of
such Acquisition) exceeds $20,000,000.00, or (ii) the portion of the purchase
price for such Acquisition payable by Borrower in cash (whether payable at
closing or at any time or times after closing on the Acquisition, and if payable
after closing and not determinable prior to closing, as reasonably estimated by
Borrower, and in any event including the amount of any Indebtedness assumed by
Borrower or any Subsidiary of Borrower as a part of such Acquisition) exceeds
the lesser of $30,000,000.00 or 15% of Shareholders' Equity, Borrower has
obtained the prior written consent of the Required Lenders and the
Administrative Agent; and (d) Borrower or a wholly-owned subsidiary of Borrower
is the surviving entity (including reverse triangular mergers); provided,
however, that no Acquisition shall be an Acceptable Acquisition unless both as
of the date of any such Acquisition and immediately following such Acquisition
the Borrower is, and on a pro forma basis projects that it will continue to be,
in compliance with the terms, covenants and conditions contained in this
Agreement and the other Transaction Documents, and Borrower has provided to
Administrative Agent such financial information, statements and projections as
reasonably requested demonstrating such continuing compliance with the financial
covenants of Section 7.1(i) herein.
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Acquisition shall mean any transaction or series of related
transactions, consummated on or after the date of this Agreement, by which the
Borrower or any of its Subsidiaries (a) acquires any going business or all or
substantially all of the assets of any corporation, partnership or other
organization or entity, whether through purchase of assets, merger or otherwise
or (b) directly or indirectly acquires (in one transaction or as of the most
recent transaction in a series of transactions) at least (i) a majority (in
number of votes) of the stock and/or other securities of a corporation having
ordinary voting power for the election of directors (other than stock and/or
other securities having such power only by reason of the happening of a
contingency), (ii) a majority (by percentage of voting power) of the outstanding
partnership interests of a partnership or (iii) a majority of the ownership
interests in any organization or entity other than a corporation or partnership.
Administrative Agent shall mean Mercantile Bank National
Association and its successors and assigns.
Alternate Currency shall mean (i) only so long as such
currency remains an Eligible Currency, Australian Dollars and Sterling and (ii)
any other Eligible Currency, which the applicable Borrower requests the
Alternate Currency Bank to include as an Alternate Currency hereunder and which
is acceptable to the Alternate Currency Bank and with respect to which an
Alternate Currency Addendum has been executed by an Alternate Currency Borrower
and the Alternate Currency Bank in connection therewith.
Alternate Currency Addendum means an addendum (i)
substantially in the form of Exhibit J-1 and Exhibit J-2, (ii) or, in the case
of any addendum relating to a currency other than Australian Dollars or
Sterling, in such form as shall be approved by the Alternate Currency Bank.
Alternate Currency Bank means The First National Bank of
Chicago (or any Affiliate, branch or agency thereof) to the extent it is party
to an Alternate Currency Addendum. If any agency or Affiliate of The First
National Bank of Chicago shall be a party to an Alternate Currency Addendum,
such agency or Affiliate shall, to the extent of any commitment extended and any
Loans made by it, have all the rights of The First National Bank of Chicago
hereunder; provided, however, that The First National Bank of Chicago shall to
the exclusion of such agency or Affiliate, continue to have all the voting
rights vested in it by the terms hereof.
Alternate Currency Borrower means either Xxxxxx Xxxxxxx or
Tristar, as the case may be.
Alternate Currency Borrowing means any borrowing consisting of
a Loan made in an Alternate Currency.
Alternate Currency Commitment means, for the Alternate
Currency Bank for each Alternate Currency, the obligation of such Alternate
Currency Bank to make Alternate Currency Loans not exceeding the Dollar Amount
set forth in the applicable Alternate Currency Addendum, as such amount may be
modified from time to time pursuant to the terms of this Agreement and the
applicable Alternate Currency Addendum.
Alternate Currency Interest Period means, with respect to any
Alternate Currency Loan, the Interest Period as set forth on the applicable
Alternate Currency Addendum.
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Alternate Currency Loan means any Loan denominated in an
Alternate Currency made by the Alternate Currency Bank to an Alternate Currency
Borrower pursuant to Section 3.19 and an Alternate Currency Addendum.
Alternate Currency Note means a promissory note of any
Borrower, in favor of the Alternate Currency Bank evidencing the obligation of
such Alternate Currency Borrower to repay Alternate Currency Loans, as amended
or modified from time to time and together with any promissory note or notes
issued in exchange or replacement therefor.
Applicable Margin shall mean, with respect to each type of
Loan or fee, the rate of interest shown in the applicable column below for the
type of Loan or fee specified for each such column:
Level I Level II Level III Level IV Level V Level VI
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IF RATIO OF CONSOLIDATED ADJUSTED TOTAL > or = 3.50 < 3.50 < 3.00 < 2.50 < 2.00 < 1.50
FUNDED DEBT TO CONSOLIDATED PROFORMA EBITDA > or = 3.00 > or = 2.50 > or = 2.00 > or = 1.50
CASH FLOW IS
LIBOR Loans 1.375% 1.200% 1.000% 0.875% 0.800% 0.675%
Base Rate Loans 0.250% 0.000% 0.000% 0.000% 0.000% 0.000%
Facility Fee 0.375% 0.300% 0.250% 0.250% 0.200% 0.200%
On each January 1, April 1, July 1 and October 1 during the Term hereof,
commencing with the quarter beginning January 1, 1999, the ratio of Consolidated
Adjusted Total Funded Debt to Consolidated Proforma EBITDA Cash Flow for the
fiscal quarter preceding the fiscal quarter then ended shall be computed by
Administrative Agent following delivery to Administrative Agent of the
Borrower's consolidated financial statements for such fiscal quarter-end
pursuant to Section 7.1(a)(ii) herein (i.e., for the fiscal quarter beginning
January 1, 1999 using the ratio for the fiscal quarter ended September 30,
1998), and the Applicable Margins adjusted as of such subsequent January 1,
April 1, July 1 and October 1 date in accordance with the levels set forth
above, provided that for the period from the date hereof until June 30, 1999,
the Applicable Margin shall not be adjusted below Seven-Eighths of One Percent
(0.875%) with respect to any LIBOR Loan, and the Facility Fee shall not be
adjusted below One-Fourth of One Percent (0.250%). Such new Applicable Margins
shall continue in effect until the next such adjustment, if any, on the
following January 1, April 1, July 1 and October 1 in accordance with the
preceding sentence. Each determination by Administrative Agent of the Applicable
Margins shall be deemed prima facie correct. All such adjustments shall become
effective as to LIBOR Loans outstanding on the first day of any quarter upon the
expiration of the then current applicable Interest Periods for such Loans.
Assignment Agreement shall have the meaning ascribed thereto
in Section 10.12.
Attorneys' Fees shall mean the reasonable value of the
services (and costs, charges and expenses related thereto) of the attorneys (and
all paralegals employed by such attorneys) employed by any of the Agents or any
of the Lenders from time to time (i) in connection with the documentation,
negotiation, execution, delivery, administration and enforcement of this
Agreement and/or any of the other Transaction Documents, (ii) to represent any
of the Agents or any of the Lenders in any litigation, contest, dispute, suit or
proceeding, or to commence, defend or intervene in any litigation, contest,
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dispute, suit or proceeding, or to file any petition, complaint, answer, motion
or other pleading or to take any other action in or with respect to any
litigation, contest, dispute, suit or proceeding (whether instituted by any of
the Agents, any of the Lenders, the Borrower or any other Person and whether in
bankruptcy or otherwise) in any way or respect relating to any of the
Collateral, any Third Party Collateral, this Agreement or any of the other
Transaction Documents, the Borrower, any Subsidiary of the Borrower or any other
Obligor, (iii) to protect, collect, lease, sell, take possession of or liquidate
any of the Collateral or any Third Party Collateral, (iv) to attempt to enforce
any security interest in or other Lien upon any of the Collateral or any Third
Party Collateral or to give any advice with respect to such enforcement and (v)
to enforce any of any Agent's or any Lender's rights to collect any of the
Borrower's Obligations.
Australian Dollars means the lawful currency of Australia.
Base Rate shall mean for any day the greater of (i) the Prime
Rate in effect for such day, or (ii) the Fed Funds Rate in effect for such day
plus One-Half of One Percent (0.50%).
Base Rate Loan shall mean a Loan bearing interest at the Base
Rate plus the Applicable Margin.
Borrowers means, collectively, the Borrower and the Alternate
Currency Borrowers.
Borrower's Obligations shall mean any and all indebtedness
(principal, interest, fees and other amounts), liabilities and obligations of
the Borrower and/or either of the Alternate Currency Borrowers to any of the
Agents or any of the Lenders evidenced by or arising under the Notes, this
Agreement, any Alternate Currency Addendum, the Parent Guaranty, the Pledge
Agreements, any of the other Transaction Documents or any other agreement,
document or instrument heretofore, now or hereafter executed and delivered by
the Borrower to Administrative Agent, Syndication Agent or any of the Lenders,
including, without limitation, any present or future agreement between Borrower
and any Lender or Lenders to provide Borrower with any foreign currency
contract, interest rate swap, interest rate cap or other interest or currency
hedge, including, but not limited to, any agreements to finance any such
arrangement, in each case whether now existing or hereafter arising, absolute or
contingent, joint and/or several, secured or unsecured, direct or indirect,
expressed or implied in law, contractual or tortious, liquidated or
unliquidated, at law or in equity, or otherwise, and whether created directly or
acquired by Administrative Agent, Syndication Agent or any of the Lenders by
assignment or otherwise, and any and all costs of collection and/or Attorneys'
Fees incurred or to be incurred in connection therewith.
Business Day shall mean any day except a Saturday, Sunday or
legal holiday observed by any of the Lenders or by commercial banks in St.
Louis, Missouri.
Capital Expenditure shall mean any expenditure which, in
accordance with generally accepted accounting principles consistently applied,
is or should be capitalized on the balance sheet of the Person making the same.
Capitalized Lease shall mean any lease which, in accordance
with generally accepted accounting principles consistently applied, is or should
be capitalized on the balance sheet of the lessee.
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Code shall mean the Internal Revenue Code of 1986, as amended,
and any successor statute of similar import, together with the regulations
thereunder, in each case as in effect from time to time. References to sections
of the Code shall be construed to also refer to any successor sections.
Collateral shall mean any Property or assets of the Borrower
or any Subsidiary which now or at any time hereafter secure the payment or
performance of any of the Borrower's Obligations.
Consolidated Adjusted Total Funded Debt shall mean as of any
fiscal quarter-end the sum of (a) the outstanding principal amount of all Loans
on any such fiscal quarter-end date, plus (b) the undrawn face amount of all
issued and outstanding Letters of Credit or any other letters of credit issued
for the account of Borrower or its Consolidated Subsidiaries as of any such
fiscal quarter-end date, plus (c) all of the Borrower's and its Consolidated
Subsidiaries' other borrowed money Indebtedness outstanding on any such fiscal
quarter-end date, including, without limitation, amounts due under any
Capitalized Leases, plus (d) the cash portion of each Deferred Payment
Obligation outstanding as of any such fiscal quarter-end date.
Consolidated Fixed Charges shall mean the sum of all of the
Borrower's and its Consolidated Subsidiaries' expenses under any operating
leases within the specified period of any such calculation, plus interest paid
during such specified period, including, without limitation, interest charges
during such period under any Capitalized Leases, plus all income taxes paid
during the specified period of such calculation, plus all payments of principal
made on any Subordinated Debt as permitted to be paid pursuant to the terms of
the subordination and standby agreement or intercreditor agreement made between
Administrative Agent and the holder of any such Subordinated Debt, plus Capital
Expenditures made during the specified period of any such calculation, excluding
any expenditures for capital assets acquired by Borrower and its Consolidated
Subsidiaries in an Acceptable Acquisition. The calculation of Consolidated Fixed
Charges of Borrower and its Consolidated Subsidiaries shall include all such
fixed charges described above for the specified period of any such calculation
paid or made by any Subsidiary acquired by Borrower or its Consolidated
Subsidiary during the specified period.
Consolidated Proforma EBITDA Cash Flow shall mean on any date
the Borrower's and its Consolidated Subsidiaries' net income (exclusive of any
extraordinary gains or losses) plus interest expense, plus expenses for income
taxes, plus depreciation, plus amortization, all for the twelve month period
included in any such calculation and ending on the date of any such calculation,
all as determined on a consolidated basis in accordance with generally accepted
accounting principles, consistently applied. The calculation of Consolidated
Proforma EBITDA Cash Flow of Borrower and its Consolidated Subsidiaries shall
include all net income and other such amounts for the full twelve month period
preceding the date of such calculation earned by or incurred or accrued by any
Subsidiary acquired by Borrower or its Consolidated Subsidiaries during the
preceding twelve months, but shall exclude from such calculation any officer
compensation expenses or other expenses which Administrative Agent determines
are non-recurring expenses paid or incurred by Borrower or a Consolidated
Subsidiary in connection with any such Acquisition.
Consolidated Proforma Operating Cash Flow shall mean on any
date the Borrower's and its Consolidated Subsidiaries' net income (exclusive of
any extraordinary gains or losses) plus interest expense, plus expenses for
income taxes, plus depreciation, plus amortization, plus all expenses incurred
by Borrower or any of its Consolidated Subsidiaries under any operating leases,
all for the twelve month period included in any such calculation and ending on
the date of any such
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calculation, all as determined on a consolidated basis in accordance with
generally accepted accounting principles, consistently applied. The calculation
of Consolidated Proforma Operating Cash Flow of Borrower and its Consolidated
Subsidiaries shall include all net income and other such amounts for the full
twelve month period preceding the date of such calculation earned by or incurred
or accrued by any Subsidiary acquired by Borrower or its Consolidated
Subsidiaries during the preceding twelve months, but shall exclude from such
calculation any officer compensation expenses or other expenses which
Administrative Agent determines are non-recurring expenses paid or incurred by
Borrower or a Consolidated Subsidiary in connection with any such Acquisition.
Consolidated Subsidiary shall mean with respect to any Person
at any date, any Subsidiary or other entity the assets and liabilities of which
are or should be consolidated with those of such Person in its consolidated
financial statements as of such date in accordance with generally accepted
accounting principles consistently applied.
Conversion Notice shall have the meaning ascribed thereto in
Section 3.3(b).
Default shall mean any event or condition the occurrence of
which would, with the lapse of time or the giving of notice or both, become an
Event of Default as defined in Section 8 hereof.
Deferred Payment Obligation shall mean the cash portion of the
purchase price to be paid by Borrower or any of its Consolidated Subsidiaries in
connection with any Acquisition at a time (whether in installments or a lump
sum) after closing on the Acquisition. If the cash portion percentage of the
purchase price to be paid by Borrower is to be determined by the payee at a time
after closing, the cash portion shall be calculated as the maximum possible
percentage. Further, if all or any portion of the amount of such deferred
payment is contingent upon the performance of the company acquired during a
period after closing, for purposes of this Agreement the portion of the Deferred
Payment Obligation based on such future performance will be calculated based on
such company's historical performance for an equal period of time ending on the
beginning date of any historical period on which the purchase price is based and
if the purchase price is not based on any historical performance, then ending on
the closing date.
Distribution in respect of: (a) any corporation shall mean (i)
dividends or other distributions on capital stock of the corporation; and (ii)
the redemption, repurchase or other acquisition of such stock or of warrants,
rights or other options to purchase such stock (except when solely in exchange
for such stock), (b) any partnership shall mean (i) dividends or other
distributions on any general or limited partnership interests of such
partnership; and (ii) the redemption, repurchase or other acquisition of any
such general or limited partnership interests or of warrants, rights or other
options to purchase any such general or limited partnership interest, and (c)
any limited liability company shall mean (i) dividends or other distributions on
any membership interests of such limited liability company; and (ii) the
redemption, repurchase or other acquisition by such limited liability company of
any such membership interests or of warrants, rights or other options to
purchase any such membership interests.
Dollar means the lawful currency of the United States.
Dollar Amount of any currency at any date shall mean (i) the
amount of such currency if such currency is Dollars or (ii) the Equivalent
Amount of Dollars if such currency is any currency other than Dollars,
calculated on the basis of the arithmetical mean of the buy and sell spot rates
of exchange
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of the Alternate Currency Bank for such currency on the London market at 11:00
a.m., London time, two Business Days prior to the date on which such amount is
to be determined.
Domestic Subsidiary shall mean any Subsidiary created or
organized in the United States or under the law of the United States or of any
State in the United States.
Eligible Currency means any currency other than Dollars with
respect to which the Alternate Currency Bank has not given notice in accordance
with Section 3.20 and that is readily available, freely traded, in which
deposits are customarily offered to banks in the London interbank market,
convertible into Dollars in the international interbank market and as to which
an Equivalent Amount may be readily calculated.
Environmental Laws shall mean the Resource Conservation and
Recovery Act of 1987, the Comprehensive Environmental Response, Compensation and
Liability Act, any so-called "Superfund" or "Superlien" law, the Toxic
Substances Control Act and any other federal, state or local statute, law,
ordinance, code, rule, regulation, order or decree regulating, relating to or
imposing liability or standards of conduct concerning any Hazardous Materials or
any other hazardous, toxic or dangerous waste, substance or constituent or other
substance, whether solid, liquid or gas, as now or at any time hereafter in
effect.
Environmental Lien shall have the meaning ascribed thereto in
Section 7.1(k)(vi).
Equivalent Amount of any currency with respect to any amount
of Dollars at any date shall mean the equivalent in such currency of such amount
of Dollars, calculated on the basis of the arithmetical mean of the buy and sell
spot rates of exchange of the Alternate Currency Bank for such other currency at
11:00 a.m., London time, two Business Days prior to the date on which such
amount is to be determined (i) if such currency is Australian Dollars or
Sterling, rounded up to the nearest 100,000 of such currency and (ii) if such
currency is any other Alternate Currency, rounded up to the nearest amount of
such currency as determined by the Alternate Currency Bank from time to time.
ERISA shall mean the Employee Retirement Income Security Act
of 1974, as amended, and any successor statute of similar import, together with
the regulations thereunder, in each case as in effect from time to time.
References to sections of ERISA shall be construed to also refer to any
successor sections.
ERISA Affiliate shall mean any corporation, trade or business
that is, along with the Borrower, a member of a controlled group of corporations
or a controlled group of trades or businesses, as described in Sections 414(b)
and 414(c), respectively, of the Code.
Event of Default shall have the meaning ascribed thereto in
Section 8.
Facility Fee shall have the meaning ascribed thereto in
Section 3.13.
Fed Funds Rate shall mean a rate per annum equal to the rate
determined by Administrative Agent as of the opening of business on each
Business Day as the effective rate charged to the Administrative Agent for
purchasing overnight federal funds in the national market between member banks
of the Federal Reserve System, which rate shall change from day to day as and
when said overnight federal funds rate shall change.
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Foreign Subsidiary shall mean any Subsidiary which is not a
Domestic Subsidiary.
Guarantee by any Person shall mean any obligation, contingent
or otherwise, of such Person guaranteeing any Indebtedness of any other Person
or in any manner providing for the payment of any Indebtedness of any other
Person or otherwise protecting the holder of such Indebtedness against loss
(whether by agreement to keep-well, to purchase assets, goods, securities or
services, or to take-or-pay or otherwise); provided that the term Guarantee
shall not include endorsements for collection or deposit in the ordinary course
of business. The term "Guarantee" used as a verb shall have a correlative
meaning.
Guarantor shall mean each Subsidiary of Borrower now or
hereafter executing a Subsidiary Guaranty of all of Borrower's Obligations, and
Guarantors shall mean any or all of them.
Hazardous Materials shall mean any hazardous substance or
pollutant or contaminant defined as such in (or for the purposes of) any
Environmental Law and shall include, without limitation, petroleum, including
crude oil or any fraction thereof which is liquid at standard conditions of
temperature or pressure (60 degrees Fahrenheit and 14.7 pounds per square inch
absolute), any radioactive material, including, without limitation, any source,
special nuclear or byproduct material as defined in 42 U.S.C. Section 2011 et
seq., as amended or hereafter amended, and asbestos in any form or condition.
Indebtedness of any Person shall mean and include, without
duplication, any and all indebtedness (principal, interest, fees and other
amounts), liabilities and obligations of such Person which in accordance with
generally accepted accounting principles, consistently applied are or should be
classified upon a balance sheet of such Person as liabilities of such Person,
and in any event shall include all (i) obligations of such Person for borrowed
money or which have been incurred in connection with the acquisition of
Property, (ii) obligations secured by any Lien or other charge upon any Property
owned by such Person, provided that if such Person has not assumed or become
liable for the payment of such obligations, such obligations shall still be
included in Indebtedness but the determination of the amount of Indebtedness
evidenced by such obligations shall be limited to the book value of such
Property, (iii) obligations created or arising under any conditional sale or
other title retention agreement with respect to any Property acquired by such
Person, provided that if the rights and remedies of the seller, lender or lessor
in the event of default under such agreement are limited solely to repossession
or sale of such Property, such obligations shall still be included in
Indebtedness but the determination of the amount of Indebtedness evidenced by
such obligations shall be limited to the book value of such Property, (iv) all
Guarantees and other contingent indebtedness, liabilities and obligations of
such Person whether or not reflected on the balance sheet of such Person and (v)
all obligations of such Person as lessee under any Capitalized Lease.
Interest Period shall mean with respect to each LIBOR Loan or
each Alternate Currency Loan in Sterling or each Alternate Currency Loan in
Australian Dollars which bears interest at a rate based upon the BBSY Bid Rate:
(i) Initially, the period commencing on the date of
such Loan and ending 1, 2, 3 or 6 months thereafter (or such other
period agreed upon in writing by the Borrower and all of the Lenders),
as the Borrower may elect pursuant to Section 3.3(a); and
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(ii) Thereafter, each period commencing on the last
day of the next preceding Interest Period applicable to such Loan and
ending 1, 2, 3 or 6 months thereafter (or such other period agreed upon
in writing by the Borrower and all of the Lenders), as the Borrower may
elect pursuant to Section 3.3(b);
provided that:
(iii) For purposes of determining an Interest Period,
a month means a period starting on one day in a calendar month and
ending on a numerically corresponding day in the next calendar month,
provided, however, if an Interest Period begins on the last day of a
month and if there is no numerically corresponding day in the month in
which an Interest Period is to end, then such Interest Period shall end
on the last Business Day of such month;
(iv) Subject to clauses (v), (vi) and (vii) below, if
any Interest Period would otherwise end on a day which is not a
Business Day, such Interest Period shall end on the immediately
following Business Day, except that if such immediately following
Business Day is in a different month, such Interest Period shall end on
the immediately preceding Business Day;
(v) No Interest Period with respect to any LIBOR Loan
shall extend beyond the last day of the Term hereof; and
(vi) Any Interest Period which includes a date on
which a payment of principal is required to be made on the applicable
Loan(s) shall end on such date.
Letter of Credit and Letters of Credit shall have the meanings
ascribed thereto in Section 3.4(a).
Letter of Credit Application shall mean an application and
agreement for irrevocable standby letter of credit in the form of Exhibit D
attached hereto and incorporated herein by reference or an application and
agreement for irrevocable commercial letter of credit in the form of Exhibit E
attached hereto and incorporated herein by reference, and in either case
executed by Borrower, as account party, and delivered to Administrative Agent
pursuant to Section 3.4(a) as the same may from time to time be amended,
modified, extended or renewed.
Letter of Credit Commitment Fee shall have the meaning
ascribed thereto in Section 3.4(c)(ii).
Letter of Credit Issuance Fee shall have the meaning ascribed
thereto in Section 3.4(c)(i).
Lien shall mean any interest in Property securing an
obligation owed to, or a claim by, a Person other than the owner of the
Property, whether such interest is based on common law, statute or contract,
including, without limitation, any security interest, mortgage, deed of trust,
pledge, hypothecation, judgment lien or other lien or encumbrance of any kind or
nature whatsoever, any conditional sale or trust receipt and any lease,
consignment or bailment for security purposes. The term "Lien" shall include
reservations, exceptions, encroachments, easements, rights-of-way,
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covenants, conditions, restrictions, leases and other title exceptions and
encumbrances affecting Property.
LIBOR Base Rate means, for an Interest Period, (a) the LIBOR
Index Rate for such Interest Period, if such rate is available, and (b) if the
LIBOR Index Rate cannot be determined, the arithmetic average of the rates of
interest per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%)
at which deposits in U.S. dollars in immediately available funds are offered to
Administrative Agent at 11:00 a.m. (St. Louis time) two (2) Business Days before
the beginning of such Interest Period by two (2) or more major banks in the
interbank eurodollar market selected by Administrative Agent for a period equal
to such Interest Period and in an amount equal or comparable to the principal
amount of the LIBOR Loan scheduled to be made available by Lenders. As used
herein, "LIBOR Index Rate" means, for any Interest Period, the rate per annum
(rounded upwards, if necessary, to the next higher one ten-thousandth of a
percentage point) for deposits in U.S. Dollars for a period equal to such
Interest Period, which appears on the Dow Xxxxx Markets (Telerate) Page 3750 as
of 9:00 a.m. (St. Louis time) on the day two Business Days before the
commencement of such Interest Period.
LIBOR Loan shall mean any Loan bearing interest at the LIBOR
Rate.
LIBOR Rate shall mean (a) the quotient of (i) the LIBOR Base
Rate divided by (ii) one minus the LIBOR Reserve Percentage, plus (b) the
Applicable Margin.
LIBOR Reserve Percentage shall mean for any day the reserve
percentage (including any supplemental percentage applied on a marginal basis or
any other reserve requirement having a similar effect), expressed as a decimal,
which is in effect on the first day of the applicable Interest Period, as
prescribed by the Board of Governors of the Federal Reserve System (or any
successor) under Regulation D (or any other applicable regulation of the Board
of Governors (or any successor)) with respect to "Eurocurrency Liabilities." The
LIBOR Rate shall be adjusted automatically on and as of the effective date of
any change in the LIBOR Reserve Percentage.
Loan shall mean each Revolving Credit Loan, whether made as a
Base Rate Loan or a LIBOR Loan, each Swing Loan, and each Alternate Currency
Loan, and Loans shall mean any or all of the foregoing.
Loan Commitment for each Lender shall mean the total of the
Revolving Credit Commitment and the Swing Line Commitment, if any, of each such
Lender.
Mercantile shall mean Mercantile Bank National Association
solely in its capacity as a Lender hereunder, and its successors and assigns.
Multiemployer Plan shall mean a "multi-employer plan" as
defined in Section 4001(a) (3) of ERISA which is maintained for employees of the
Borrower, any ERISA Affiliate or any Subsidiary of the Borrower.
Notes shall mean any or all of the Revolving Credit Notes and
the Swing Line Note and any Note issued to evidence Alternate Currency Loans.
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Obligor shall mean the Borrower, each of the Alternate
Currency Borrowers and each other Person who is or shall at any time hereafter
become primarily or secondarily liable on any of the Borrower's Obligations or
who grants any of the Agents or any of the Lenders a Lien upon any of the
Property or assets of such Person as security for any of the Borrower's
Obligations.
Occupational Safety and Health Laws shall mean the
Occupational Safety and Health Act of 1970, as amended, and any other federal,
state or local statute, law, ordinance, code, rule, regulation, order or decree
regulating, relating to or imposing liability or standards of conduct concerning
employee health and/or safety, as now or at any time hereafter in effect.
Parent Guaranty shall mean that certain Guaranty by StaffMark,
Inc., a Delaware corporation, of the indebtedness and obligations of the
Alternate Currency Borrowers under and pursuant to the Alternate Currency
Addenda and the Alternate Currency Notes, as amended from time to time.
PBGC shall mean the Pension Benefit Guaranty Corporation and
any entity succeeding to any or all of its functions under ERISA.
Pension Plan shall mean a "pension plan," as such term is
defined in Section 3(2) of ERISA, which is established or maintained by the
Borrower, any ERISA Affiliate or any Subsidiary of the Borrower, other than a
Multiemployer Plan.
Permitted Investments shall mean any investment by Borrower or
any Subsidiary in any of the following:
(a) Direct obligations of the government of the
United States of America, the governments of England and Wales or the government
of Australia or any instrumentality or agency of any of the foregoing, the
payment of which is unconditionally guaranteed by the government of the United
States of America, the governments of England and Wales or the government of
Australia or any instrumentality or agency of any of the foregoing (all of which
Investments must mature within twelve (12) months from the time of acquisition
thereof);
(b) Investments in readily marketable commercial
paper which, at the time of acquisition thereof by Borrower or any Subsidiary,
is rated A-1 or better by Standard & Poor's or P-1 or better by Xxxxx'x
Investment Service and which matures within 270 days from the date of
acquisition thereof, provided that the issuer of such commercial paper shall, at
the time of acquisition of such commercial paper, have a senior long-term debt
rating of at least A by Standard & Poor's and Xxxxx'x Investment Service;
(c) Negotiable certificates of deposit or negotiable
bankers acceptances issued by any of the Lenders or any other bank or trust
company organized under the laws of the United States of America or any state
thereof, the governments of England and Wales or the government of Australia,
which bank or trust company (other than the Lenders to which such restrictions
shall not apply) is a member of both the Federal Deposit Insurance Corporation
and the Federal Reserve System and is rated B or better by Xxxxxxxx Bank Watch
Service (all of which Permitted Investments must mature within twelve (12)
months from the time of acquisition thereof);
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(x) Xxxxxxxxxx agreements, which shall be
collateralized for at least 100% of face value, issued by any of the Lenders or
any other bank or trust company organized under the laws of the United States or
any state thereof, which bank or trust company (other than the Lenders to which
such restrictions shall not apply) is a member of both the Federal Deposit
Insurance Corporation and the Federal Reserve System and is rated B or better by
Xxxxxxxx Bank Watch Service (all of which Permitted Investments must mature
within twelve (12) months from the time of acquisition thereof);
(e) Investments in mutual funds the investments of
which are limited to domestic securities; and
(f) Investments in Acceptable Acquisitions.
Person shall mean any individual, sole proprietorship,
partnership, joint venture, trust, unincorporated organization, association,
corporation, institution, limited liability company, entity or government
(whether national, federal, state, county, city, municipal or otherwise,
including, without limitation, any instrumentality, division, agency, body or
department thereof).
Pledge Agreements shall mean those certain General Pledge and
Security Agreements executed and to be executed by Borrower and delivered to
Administrative Agent for the benefit of each of the Lenders and those certain
Collateral Assignments executed and to be executed by Borrower and delivered to
Administrative Agent for the benefit of each of the Lenders, pledging all of the
issued and outstanding capital stock, membership interests, partnership
interests or other ownership interests of each of Borrower's Domestic
Subsidiaries and pledging Sixty-Five Percent (65%) of the issued and outstanding
capital stock, membership interests, partnership interests or other ownership
interests of each of Borrower's Foreign Subsidiaries, together with all
collateral schedules, stock powers, original stock or other ownership
certificates and other agreements to be delivered in connection therewith
pursuant to Section 5.1, all as the same may be from time to time amended.
Prime Rate shall mean the interest rate announced from time to
time by Administrative Agent as its "prime rate" on commercial loans (which rate
shall fluctuate as and when said prime rate shall change).
Pro Rata Share shall mean, with respect to each Lender, such
Lender's percentage of the aggregate amount of Revolving Credit Loans then
outstanding, determined by dividing the aggregate principal amount of all
Revolving Credit Loans of such Lender then outstanding by the aggregate amount
of all Revolving Credit Loans of all Lenders then outstanding, or, if no
Revolving Credit Loans are then outstanding, such Lender's percentage of the
Total Revolving Credit Commitment of all of the Lenders, determined by dividing
the sum of such Lender's Revolving Credit Commitment by the aggregate sum of the
Total Revolving Credit Commitment of all of the Lenders.
Property shall mean any interest in any kind of property or
asset, whether real, personal or mixed, or tangible or intangible. Properties
shall mean the plural of Property. For purposes of this Agreement, the Borrower
and each Subsidiary of the Borrower shall be deemed to be the owner of any
Property which it has acquired or holds subject to a conditional sale agreement,
financing lease or other arrangement pursuant to which title to the Property has
been retained by or vested in some other Person for security purposes.
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Revolving Credit Commitment shall mean, subject to termination
or reduction as set forth in Section 3.12, for each Lender the amount set forth
as the Revolving Credit Commitment of such Lender next to its name on the
signature pages hereof or on the signature pages of any subsequent Assignment
Agreement to which such Lender is a party.
Revolving Credit Loan shall have the meaning ascribed thereto
in Section 3.1.
Revolving Credit Notes shall mean each of the Revolving Credit
Notes of the Borrower to be executed and delivered to each of the Lenders
pursuant to Section 3.1 or pursuant to an Assignment Agreement, as the same may
from time to time be amended, modified, extended or renewed.
Related Party shall mean any Person (i) which directly or
indirectly through one or more intermediaries controls, or is controlled by or
is under common control with, the Borrower or any Subsidiary of the Borrower,
(ii) which beneficially owns or holds ten percent (10%) or more of the equity
interest of the Borrower, (iii) ten percent (10%) or more of the equity interest
of which is beneficially owned or held by the Borrower or a Subsidiary of the
Borrower, or (iv) who is a director, officer or employee of the Borrower or any
Subsidiary of the Borrower. The term "control" shall mean the possession,
directly or indirectly, of the power to vote ten percent (10%) or more of the
capital stock of any Person or the power to direct or cause the direction of the
management and policies of a Person, whether through the ownership of voting
securities, by contract or otherwise.
Reportable Event shall have the meaning given to such term in
ERISA.
Required Lenders shall mean at any time Lenders having 67% of
the Total Revolving Credit Commitment of all of the Lenders or, if the Total
Revolving Credit Commitment has been terminated, 67% of the sum of (a) the
aggregate amount of Loans then outstanding, and (b) participations in the
undrawn face amount of Letters of Credit issued hereunder and unpaid
reimbursement obligations with respect thereto.
Shareholders Equity shall mean on any date the total assets
minus total liabilities of Borrower and its Subsidiaries, all determined on a
consolidated basis in accordance with generally accepted accounting principles,
consistently applied.
Sterling shall mean the lawful currency of England and Wales.
Subordinated Debt shall mean any borrowed money Indebtedness
of Borrower which has been duly subordinated by the holder thereof to all of
Borrower's Obligations to the Lenders and Agents pursuant to a subordination and
standby agreement or intercreditor agreement in form and substance satisfactory
to the Agents and the Required Lenders.
Subsidiary shall mean, with respect to any Person: (i) any
corporation of which fifty percent (50%) or more of the issued and outstanding
capital stock entitled to vote for the election of directors (other than by
reason of default in the payment of dividends) is at the time owned directly or
indirectly by such Person, (ii) any general or limited partnership of which
fifty percent (50%) or more of the issued and outstanding partnership interests
is at the time owned directly or indirectly by such Person, (iii) any limited
liability company of which fifty percent (50%) or more of the issued and
outstanding membership interests entitled is at the time owned directly or
indirectly by such Person,
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and (iv) any other form of entity of which fifty percent (50%) or more of the
issued and outstanding ownership interests is at the time owned directly or
indirectly by such Person.
Subsidiary Guaranties shall mean those certain guaranties of
Borrower's Obligations executed respectively by Borrower's Domestic Subsidiaries
in existence as of the date hereof and the guaranties of any subsequently
created or acquired Domestic Subsidiary of Borrower executed and delivered to
Administrative Agent hereafter pursuant to Section 4.2 or Section 7.2(e), all as
the same may from time to time be amended.
Subsidiary Pledge Agreements shall mean those certain general
pledge and security agreements and those certain collateral assignments executed
respectively by Borrower's Domestic Subsidiaries in existence as of the date
hereof which own shares of stock, partnership interests, membership interests or
other equity interests in any other Subsidiary and the general pledge and
security agreements and the collateral assignments of any Domestic Subsidiary of
Borrower which hereafter owns shares of stock, partnership interests, membership
interests or other equity interests in any other Subsidiary which are required
to be executed and delivered to Administrative Agent hereafter pursuant to
Section 4.2 or Section 7.2(e), all as the same may from time to time be amended.
Swing Loan shall have the meanings ascribed thereto in Section
3.2.
Swing Line Note shall have the meaning ascribed thereto in
Section 3.2.
Swing Line Commitment shall mean the commitment of Mercantile
to make Swing Loans as set forth herein in an aggregate amount not to exceed
$5,000,000.00 at any one time outstanding.
Syndication Agent shall mean The First National Bank of
Chicago and its successors and assigns.
Term shall have the meaning ascribed thereto in Section 1.
Third Party Collateral shall mean any Property or assets of
any Obligor other than the Borrower which now or at any time hereafter secure
the payment or performance of any of the Borrower's Obligations.
Total Revolving Credit Commitment shall have the meaning
ascribed thereto in Section 3.1.
Transaction Documents shall mean this Agreement, the Notes,
the Alternate Currency Addenda, the Pledge Agreements, any Letter of Credit
Application, the Parent Guaranty, the Subsidiary Guaranties, the Subsidiary
Pledge Agreements and all other agreements, documents and instruments
heretofore, now or hereafter delivered to Administrative Agent, Syndication
Agent or any of the Lenders with respect to or in connection with or pursuant to
this Agreement, any Loans made or Letters of Credit issued hereunder or any
other of the Borrower's Obligations, and executed by or on behalf of the
Borrower or any of its Subsidiaries, all as the same may from time to time be
amended, modified, extended or renewed.
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Year 2000 Compliant shall mean, with respect to any Person,
that all software, embedded microchips and/or other computer and/or processing
capabilities utilized by such Person, and/or included in any software, products,
goods and/or services sold and/or leased by such Person, are able to correctly
and properly recognize, interpret, process, calculate, compare, sequence and
manipulate data and date-sensitive functions on and involving all calendar dates
(including, without limitation, dates in and after the year 2000).
SECTION 3. THE LOANS.
3.1 Revolving Credit Commitment of Lenders.
(a) Subject to the terms and conditions hereof,
during the Term of this Agreement, each Lender hereby severally agrees to make
such loans (individually, a "Revolving Credit Loan," and collectively, the
"Revolving Credit Loans"), to the Borrower as the Borrower may from time to time
request pursuant to Section 3.3(a). Subject to the terms and conditions hereof,
during the Term of this Agreement, the Alternate Currency Bank hereby agrees to
make Alternate Currency Loans to the Alternate Currency Borrowers pursuant to
the applicable Alternate Currency Addenda as the applicable Alternate Currency
Borrower may from time to time request pursuant to Section 3.19 and the
Applicable Currency Addenda. The aggregate principal amount of Revolving Credit
Loans which Lenders, cumulatively, shall be required to have outstanding
hereunder at any one time, plus the outstanding principal amount of the Swing
Loans then outstanding under Section 3.2, plus the Dollar Amount of Alternate
Currency Loans then outstanding pursuant to Section 3.19, plus the undrawn face
amount of Letters of Credit issued by Administrative Agent and then outstanding
under Section 3.4, shall not, other than as a result of currency exchange rate
fluctuations, exceed Three Hundred Million Dollars ($300,000,000.00) (subject to
reduction as provided in Section 3.12, the "Total Revolving Credit Commitment").
The amount each Lender shall be required to have outstanding hereunder as
Revolving Credit Loans plus its undivided Pro Rata Share of each Swing Loan made
by Mercantile under Section 3.2 plus its undivided Pro Rata Share participation
interest in each Letter of Credit issued by Administrative Agent under Section
3.4, plus its undivided Pro Rata Share of each Alternate Currency Loan made
pursuant to Section 3.19, shall not, other than as a result of currency exchange
rate fluctuations, exceed, in the aggregate at any one time outstanding, the
amount of such Lender's Revolving Credit Commitment. Each Revolving Credit Loan
under this Section 3.1 shall be made by the Lenders ratably in proportion to
their respective Revolving Credit Commitments. The Revolving Credit Loans shall
be evidenced on the date of this Agreement by the Revolving Credit Notes of the
Borrower, each dated the date hereof and payable by the Borrower to the
respective orders of each of the Lenders in the aggregate original principal
amount of Three Hundred Million Dollars ($300,000,000.00) and otherwise in the
form attached hereto as Exhibit A and incorporated herein by reference (as the
same may from time to time be amended, restated, modified, extended or renewed,
the "Revolving Credit Notes"). The Alternate Currency Loans shall be evidenced
by Alternate Currency Notes of the applicable Alternate Currency Borrower, each
dated the date hereof and payable by the Alternate Currency Borrower to the
order of the Alternate Currency Bank in the original principal amount of
$25,000,000 and otherwise in the form attached hereto as Exhibit A-1 (as the
same may be from time to time amended, restated, modified, extended or renewed,
the "Alternate Currency Notes"). The Revolving Credit Notes and the Alternate
Currency Notes shall mature on August 20, 2003, unless earlier terminated by
acceleration or otherwise upon the occurrence of an Event of Default under this
Agreement. Subject to the terms and conditions of this Agreement, the Borrower
may borrow, repay and reborrow the amounts available under this Section 3.1.
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(b) Each Lender shall record in its books and
records, and prior to any transfer of its Notes shall endorse on the schedules
forming a part thereof, appropriate notations to evidence the date and amount of
each Loan made by it during the Term hereof, whether such Loan is then a Base
Rate Loan a LIBOR Loan or an Alternate Currency Loan, and the date and amount of
each payment of principal made by the applicable Borrower with respect thereto.
Each Lender is hereby irrevocably authorized by Borrowers so to endorse its
Notes and to attach to and make a part of any such Notes a continuation of any
such schedule as and when required; provided, however that the obligation of
Borrowers to repay each Loan made hereunder shall be absolute and unconditional,
notwithstanding any failure of any Lender to endorse or any mistake by any
Lender in connection with endorsement on the schedules attached to their
respective Notes. The books and records of each Lender (including, without
limitation, the schedules attached to the Notes) showing the account between
such Lender and Borrower shall be admissible in evidence in any action or
proceeding and shall constitute prima facie proof of the items therein set
forth.
3.2 The Swing Line. Subject to all of the terms and
conditions hereof and so long as no Default or Event of Default under this
Agreement has occurred and is continuing, Mercantile agrees to make loans to
Borrower under a Swing Line ("Swing Loans") during the Term of this Agreement
which shall not in the aggregate at any time outstanding exceed the lesser of
(i) the Swing Line Commitment, or (ii) the difference between the Revolving
Credit Commitments of all of the Lenders and the amount of the Revolving Credit
Loans and Alternate Currency Loans and the undrawn face amount of Letters of
Credit then outstanding hereunder at the time of computation. The Swing Line
Commitment shall be available to Borrower and may be availed of by Borrower from
time to time, and borrowings thereunder may be repaid and used again during the
period ending on the last day of the Term hereof. All Swing Loans shall be made
hereunder only as Base Rate Loans. All advances made by Mercantile to Borrower
under the Swing Line shall be evidenced by the Swing Line Note of Borrower dated
as of the date hereof (the "Swing Line Note") payable to the order of Mercantile
in the amount of the Swing Line Commitment and being in the form attached hereto
as Exhibit B.
3.3 Procedure for Borrowing.
(a) Revolving Credit Loan Advances. Subject to the
terms and conditions hereof, Lenders shall cause the Revolving Credit Loans to
be made to the Borrower at any time and from time to time during the Term hereof
upon Borrower's application to Administrative Agent in writing signed by the
authorized representative of the Borrower and received by Administrative Agent
not later than 11:00 a.m. (St. Louis time) on the Business Day on which such
Revolving Credit Loan is being borrowed if such Loan is a Base Rate Loan, or
11:00 a.m. (St. Louis time) three (3) Business Days prior to the date on which
such Revolving Credit Loan is being borrowed if such Loan is a LIBOR Loan,
specifying: (i) if the proceeds of the Revolving Credit Loan will be used to
finance an Acceptable Acquisition, (A) the target business to be acquired by
Borrower in an Acceptable Acquisition with the proceeds of such Revolving Credit
Loan (which business must be in a similar line of business to Borrower and its
Subsidiaries), (B) the affidavit of any one of the President, Chief Financial
Officer, Chief Operating Officer, or any Executive Vice President of Borrower
attesting that the Acceptable Acquisition contemplated will not cause Borrower
or any of its Subsidiaries to violate any provision of the Transaction Documents
and including Borrower's financial projections showing that post-acquisition
Borrower and its Subsidiaries will be in proforma compliance with the financial
covenants set forth in Section 7.1(i) of this Agreement, (C) the desired amount
of the new Revolving Credit Loan, which shall not exceed the cash purchase price
for the target business, and (D) the date on which the Loan proceeds are to be
made available to the Borrower, which shall be a Business Day, and (ii) if the
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proceeds of the Revolving Credit Loan will be used for any purpose permitted by
this Agreement other than to finance an Acceptable Acquisition, (A) the desired
amount of the new Revolving Credit Loan and (B) the date on which the Loan
proceeds are to be made available to Borrower, which shall be a Business Day. In
addition, not later than three (3) Business Days prior to the date of funding of
any such requested LIBOR Loan, Borrower shall further notify Administrative
Agent in writing of the Interest Period requested for such LIBOR Loan, which in
no event shall extend beyond the last day of the Term hereof. Each application
for a Revolving Credit Loan hereunder the proceeds of which will be used to
finance an Acceptable Acquisition shall include a copy of the letter of
interest, purchase agreement or other documents signed by and between Borrower
and the target business disclosing the terms of the Acceptable Acquisition.
Revolving Credit Loans made hereunder to fund Acceptable Acquisitions shall not
require the prior written consent of the Administrative Agent or the Required
Lenders except as required in subpart (c) of the definition of Acceptable
Acquisition. A Revolving Credit Loan requested to fund any Acceptable
Acquisition shall be funded in a single advance. Upon receipt of notice of an
Acquisition as provided in subpart (b) of the definition of Acceptable
Acquisition, the Administrative Agent promptly shall deliver a copy of such
notice to each Lender. Upon receipt of an application for a Revolving Credit
Loan, the Administrative Agent shall deliver a copy of such information to each
Lender on the date of receipt and shall notify each Lender of such Lender's Pro
Rata Share of such new Revolving Credit Loan. An application for a Revolving
Credit Loan, once issued, shall not be revocable by the Borrower. Not later than
2:00 p.m. (St. Louis time) on the date of each new Revolving Credit Loan, each
Lender shall make available its Pro Rata Share of such Revolving Credit Loan, in
federal or other funds immediately available in St. Louis, Missouri, to the
Administrative Agent at its address specified in or pursuant to Section 10.7.
Administrative Agent shall not be required to make any amount available to
Borrower hereunder except to the extent it shall have received such amounts from
the Lenders as set forth herein, provided, however, that unless the
Administrative Agent shall have been notified by a Lender prior to the date a
Revolving Credit Loan is to be made hereunder that such Lender does not intend
to make its Pro Rata Share of such Revolving Credit Loan available to the
Administrative Agent, the Administrative Agent may assume that such Lender has
made such Pro Rata Share available to the Administrative Agent on such date, and
the Administrative Agent may in reliance upon such assumption make available to
the Borrower a corresponding amount. If such corresponding amount is not in fact
made available to the Administrative Agent by such Lender and the Administrative
Agent has made such amount available to the Borrower, the Administrative Agent
shall be entitled to receive such amount from such Lender forthwith upon its
demand, together with interest thereon in respect of each day during the period
commencing on the date such amount was made available to the Borrower and ending
on but excluding the date the Administrative Agent recovers such amount from the
Lender at a rate per annum equal to the Fed Funds Rate for each day as
determined by the Administrative Agent (or in the case of a day which is not a
Business Day, then for the preceding day). Subject to the terms and conditions
hereof, provided that Administrative Agent has received a timely application
from Borrower as required in this Section 3.3(a), Administrative Agent shall
(unless Administrative Agent determines that any applicable condition specified
in Sections 4.1 or 4.2 has not been satisfied) make the funds so received from
the Lenders available to Borrower by wiring or otherwise transferring the
proceeds of such Loan not later than 2:30 p.m. (St. Louis time) on the Business
Day specified by Borrower in its application in accordance with any instructions
for such disbursement received from the Borrower. The Borrower hereby authorizes
Agents and Lenders to rely on telephonic, telegraphic, telecopy, telex or
written instructions of any Person identifying himself or herself as a Person
authorized to request a Loan or to make a repayment hereunder, and on any
signature which any of the Agents or any of the Lenders believes to be genuine,
and the Borrower shall be bound thereby in the same manner as if such Person
were actually authorized or such signature were genuine. Borrower
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also hereby agrees to indemnify Agents and Lenders and hold Agents and Lenders
harmless from and against any and all claims, demands, damages, liabilities,
losses, costs and expenses (including, without limitation, attorneys' fees and
expenses) relating to or arising out of or in connection with the acceptance of
instructions for making Loans or making repayments hereunder unless such
acceptance results from the gross negligence or willful misconduct of an Agent
or a Lender as determined by a court of competent jurisdiction.
(b) Interest Rate Conversions. Subject to the terms
and conditions hereof, Lenders shall permit the Borrower to convert outstanding
Revolving Credit Loans from a Base Rate Loan to a LIBOR Loan or from a LIBOR
Loan to a Base Rate Loan, and Lenders shall permit the Borrower to request a new
Interest Period for any existing LIBOR Loan at the end of its then current
Interest Period, upon timely notice ("Conversion Notice") to Administrative
Agent, in writing signed by the authorized representative of the Borrower
(including any such notice by facsimile transmission) specifying: (1) the amount
of the outstanding Revolving Credit Loan being converted to a new interest rate
basis, or the amount of the LIBOR Loan being continued as a LIBOR Loan for a new
Interest Period, (2) the applicable interest rate option being selected, (3) if
a LIBOR Loan is requested, the Interest Period, which in no event shall extend
beyond the last day of the Term hereof, and (4) the effective date, which shall
be a Business Day, and if pertaining to an existing LIBOR Loan, shall also be
the last day of the then current Interest Period. Each Conversion Notice must be
received by Administrative Agent not later than 11:00 a.m. (St. Louis time) on
the Business Day on which a conversion to a Base Rate Loan is to be made, and
not later than 11:00 a.m. (St. Louis time) on the second Business Day prior to
the Business Day on which a conversion to a LIBOR Loan is to be made. Each
Conversion Notice for extension of an existing LIBOR Loan for a new Interest
Period must be received by Administrative Agent not later than 11:00 a.m. (St.
Louis time) on the second Business Day prior to the last day of the then current
Interest Period. Upon receipt of a Conversion Notice given to it, the
Administrative Agent shall notify each Lender by 12:00 noon (St. Louis time) on
the date of receipt of such Conversion Notice by the Administrative Agent of the
contents thereof. Unless the Borrower shall have otherwise requested
Administrative Agent to notify the Lenders to continue an existing LIBOR Loan
for a new Interest Period in a timely Conversion Notice, upon the expiration of
the current Interest Period any LIBOR Loan made in relation to such Interest
Period and then outstanding shall bear interest at the Prime Rate plus
Applicable Margin from and after the expiration of such Interest Period unless
and until subsequently converted in accordance with the terms of this Section
3.3(b). A Conversion Notice shall not be revocable by the Borrower. Subject to
the terms and conditions hereof, provided that Administrative Agent has received
the timely Conversion Notice, Lenders shall (unless Administrative Agent
determines that any applicable condition specified in Section 4 has not been
satisfied) convert the interest rate on the portion of the outstanding Revolving
Credit Loan, as directed by the Borrower in the Conversion Notice, or Lenders
shall extend any LIBOR Loan for a new Interest Period as directed by the
Borrower in the Conversion Notice, at 2:30 p.m. (St. Louis time) on the Business
Day specified in said Conversion Notice; provided, however, that notwithstanding
the foregoing, in addition to and without limiting the rights and remedies of
the Agents and the Lenders under Section 8 hereof, so long as any Default or
Event of Default under this Agreement has occurred and is continuing, Borrower
shall not be permitted to renew any LIBOR Loan as a LIBOR Loan or to convert any
Base Rate Loan into a LIBOR Loan. The Borrower hereby authorizes Agents and the
Lenders to rely on telephonic, telegraphic, telecopy, telex or written
instructions of any person identifying himself or herself as a Person authorized
to request a conversion of a Revolving Credit Loan, or to continue a LIBOR Loan
hereunder, and on any signature which any of the Agents or any of the Lenders
reasonably believe to be genuine, and the Borrower shall be bound thereby in the
same manner as if such Person were actually authorized or such signature were
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genuine. The Borrower also hereby agrees to indemnify the Agents and the Lenders
and hold the Agents and the Lenders harmless from and against any and all
claims, demands, damages, liabilities, losses, costs and expenses (including,
without limitation, attorneys' fees and expenses) relating to or arising out of
or in connection with the acceptance of instructions for converting Revolving
Credit Loans to a new interest rate basis or continuing LIBOR Loans hereunder
unless such acceptance results from the gross negligence or willful misconduct
of an Agent or a Lender as determined by a court of competent jurisdiction. A
Conversion Notice shall not be required in connection with a Base Rate Loan
pursuant to Section 3.7, 3.8 or 3.9.
(c) Swing Loan Advances. With respect to each Swing
Loan, Borrower shall give Mercantile prior notice (which may be written or oral
but which must be given prior to 2:00 p.m. St. Louis time on the date of the
Swing Loan) of the amount and date of each Swing Loan and, subject to all of the
terms and conditions hereof, the proceeds of such Swing Loan shall be made
available to Borrower on the date of request at the offices of the
Administrative Agent in St. Louis, Missouri. Borrower hereby authorizes and
directs Mercantile, without further authorization or instructions from it, to
make Borrower a Swing Loan each Business Day in an amount equal to the
difference, if any, between (i) the amount which Mercantile determines is
necessary to pay items clearing on such day, and (ii) the balance of available
(as customarily determined by Mercantile) funds in Borrower's general account
with Mercantile as of such day, and if the amount determined pursuant to clause
(ii) above is in excess of the amount determined pursuant to clause (i), then
Mercantile is irrevocably authorized and instructed to apply such excess to the
reduction of the outstanding balance of the Swing Loans without further
instruction from Borrower. Anything contained in the foregoing to the contrary
notwithstanding, (i) the obligation of Mercantile to make Swing Loans shall be
subject to all of the terms and conditions of this Agreement, (ii) Mercantile
shall not be obligated to make more than one Swing Loan to Borrower during any
day, and (iii) Mercantile shall make the determination of the amount to be
borrowed or repaid pursuant to the immediately preceding sentence as of a cutoff
hour to be determined by Mercantile, and Mercantile shall incur no liability to
Borrower for any interruptions or errors made in connection with the foregoing
procedures not caused by the gross negligence or willful misconduct of
Mercantile.
(d) Alternate Currency Loans. With respect to each
Alternate Currency Loan, the applicable Alternate Currency Borrower shall give
the Alternate Currency Bank irrevocable notice by 10:00 a.m. (local time), or
such later time as the Alternate Currency Bank may, in its discretion, agree to,
on the date of the requested borrowing specifying the amount of the requested
borrowing and the requested Interest Period, if applicable.
3.4 Letters of Credit.
(a) Subject to the terms and conditions of this
Agreement, during the Term of this Agreement, and so long as no Default or Event
of Default under this Agreement has occurred and is continuing and the
conditions set forth in Section 4.2 have been met (provided, however, that
Administrative Agent shall have no liability to any of the Lenders for issuing a
Letter of Credit after the occurrence of any Default or Event of Default under
this Agreement or without a condition of Section 4.2 having been satisfied
unless Administrative Agent has previously received notice in writing to
Administrative Agent by Borrower or any of the other Lenders of the occurrence
of such Default or Event of Default or of the failure to meet any such
condition), Administrative Agent hereby agrees to issue irrevocable standby and
commercial letters of credit for the account of Borrower (individually, a
"Letter of Credit" and collectively, the "Letters of Credit") in an amount and
for the
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term specifically requested by Borrower by application in writing to
Administrative Agent in the form of Exhibit D in the case of a standby Letter of
Credit or in the form of Exhibit E in the case of a commercial Letter of Credit,
each as attached hereto and incorporated herein by reference (a "Letter of
Credit Application") at least three (3) Business Days prior to the requested
issuance thereof; provided, however, that:
(i) Borrower shall have executed and delivered to
Administrative Agent a Letter of Credit Application with respect to
such Letter of Credit;
(ii) the term of any such Letter of Credit shall not
extend beyond the earlier of (A) the last day of the Term hereof, or
(B) three hundred sixty-five (365) days from the issuance thereof,
provided, however, that any such Letter of Credit may be renewable on
terms satisfactory to the Administrative Agent;
(iii) the aggregate undrawn face amount of all
outstanding Letters of Credit shall not at any one time exceed Fifteen
Million Dollars ($15,000,000.00) and the aggregate undrawn face amount
of all outstanding Letters of Credit plus the outstanding principal
amount of all Revolving Credit Loans plus the outstanding principal
amount of all Swing Loans shall not at any one time exceed the Total
Revolving Credit Commitment; and
(iv) the text of any such Letter of Credit is
provided to Administrative Agent no less than three (3) Business Days
prior to the requested issuance date, which text must be acceptable to
Administrative Agent in its sole and absolute discretion.
(b) The payment of drafts under each Letter of Credit
shall be made in accordance with the terms thereof and, in that connection,
Administrative Agent shall be entitled to honor any drafts and accept any
documents presented to it by the beneficiary of such Letter of Credit in
accordance with the terms of such Letter of Credit and believed by
Administrative Agent to be genuine. Administrative Agent shall not have any duty
to inquire as to the accuracy or authenticity of any draft or other drawing
document that may be presented to it other than the duties contemplated by the
applicable Letter of Credit Application. If Administrative Agent shall have
received documents that in its judgment constitute all of the documents that are
required to be presented before payment or acceptance of a draft under a Letter
of Credit, it shall be entitled to pay such draft provided such documents
conform on their face to the requirements of such Letter of Credit.
(c) In the event of any payment by Administrative
Agent of a draft presented or accepted under a Letter of Credit, Borrower agrees
to pay to Administrative Agent in immediately available funds at the time of
such drawing an amount equal to the sum of such drawing plus Administrative
Agent's negotiation, processing and other fees related thereto. Borrower hereby
authorizes Administrative Agent to charge or cause to be charged Borrower's bank
accounts at Administrative Agent to the extent there are balances of immediately
available funds therein, in an amount equal to the sum of such drawing plus
Administrative Agent's negotiation, processing and other fees related thereto,
and Borrower agrees to pay the amount of any such drawing (and/or Administrative
Agent's negotiation, processing and other fees related thereto) not so charged
prior to the close of business of Administrative Agent on the day of such
drawing. In the event any payment under a Letter of Credit is made by
Administrative Agent prior to receipt of payment from Borrower,
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such payment by Administrative Agent shall constitute a request by Borrower for
a Revolving Credit Loan as a Base Rate Loan under Section 3.1(a) above.
(i) Borrower shall also pay to Administrative Agent,
for its own account, with respect to each Letter of Credit, a
nonrefundable issuance fee in the amount of One Hundred Twenty-Five
Dollars ($125.00) (the "Letter of Credit Issuance Fee"), which Letter
of Credit Issuance Fee shall be due and payable on the date of issuance
of each Letter of Credit, and such other fees as Administrative Agent
may from time to time customarily charge in accordance with
Administrative Agent's published schedule of fees in effect from time
to time, which fees shall be due and payable on demand by
Administrative Agent; and
(ii) Borrower shall pay to Administrative Agent for
the ratable account of the Lenders with respect to each Letter of
Credit for the period during which such Letter of Credit is
outstanding, a nonrefundable Letter of Credit Commitment Fee in an
amount per annum equal to the Applicable Margin for LIBOR Loans in
effect for each such fiscal quarter (calculated on an actual day,
360-day year basis) times the face amount (taking into account any
scheduled increases or decreases therein during the fiscal quarter in
question) of each Letter of Credit issued hereunder ("Letter of Credit
Commitment Fee"), which Letter of Credit Commitment Fee shall be due
and payable on the date of issuance for each Letter of Credit issued by
Administrative Agent hereafter, in each case prorated for the remainder
of the then current quarter, and such Letter of Credit Commitment Fee
shall also be payable thereafter for all outstanding Letters of Credit
quarterly in advance on each April 1, July 1, October 1, and January 1
during the Term hereof.
(d) Upon the issuance of a Letter of Credit by
Administrative Agent, an undivided participation interest therein (including,
without limitation, an undivided participation interest in the reimbursement
risk relating to such Letter of Credit and in all payments and Revolving Credit
Loans made in connection with such Letter of Credit) shall automatically be
granted by Administrative Agent to and accepted by each of the other Lenders in
an amount based on each such other Lender's Pro Rata Share of the face amount of
such Letter of Credit, which participation shall be evidenced by a single Letter
of Credit Participation Certificate executed by Administrative Agent in favor of
such Lender in the form attached hereto as Exhibit F and incorporated herein by
reference. Administrative Agent agrees to provide each Lender with a copy of
each Letter of Credit issued hereunder. If Administrative Agent shall make
payment on any draft presented or accepted under a Letter of Credit,
Administrative Agent shall give notice of such payment to the other Lenders, and
each of the other Lenders hereby authorizes and requests Administrative Agent to
advance for their respective accounts, pursuant to the terms hereof, their
respective shares of any such payment based upon their respective Pro Rata
Shares. If a Default has occurred hereunder and if such drawing is not paid by
Borrower in immediately available funds prior to the close of business of
Administrative Agent on the date of such drawing, Administrative Agent shall
promptly so notify the other Lenders and each of the other Lenders agrees to
immediately reimburse Administrative Agent in immediately available funds for
its Pro Rata Share of the amount of such drawing, plus interest calculated on
its Pro Rata Share of such amount at a rate per annum equal to the Fed Funds
Rate calculated from the date of such payment by Administrative Agent to but
excluding the date of reimbursement by such other Lender and on an actual-day,
360-day year basis. Each of the other Lenders will be entitled to its Pro Rata
Share of any Letter of Credit Commitment Fees paid by Borrower, but such other
Lenders shall
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have no right to share in any Letter of Credit Issuance Fees or any other fees
paid by Borrower to Administrative Agent in connection with any of the Letters
of Credit.
(e) Notwithstanding any provision contained in this
Agreement or any of the Letter of Credit Applications to the contrary, upon the
occurrence of any Event of Default under this Agreement, at Administrative
Agent's option and without demand or further notice to Borrower, an amount equal
to the aggregate undrawn face amount of all Letter(s) of Credit then outstanding
shall be deemed (as between Administrative Agent and Borrower) to have been paid
or disbursed by Administrative Agent (notwithstanding that such amounts may not
in fact have been so paid or disbursed by Administrative Agent), and which
amount shall be immediately due and payable. In lieu of the foregoing, at the
election of the Required Lenders upon the occurrence of any Event of Default
under this Agreement, Borrower shall, upon the Required Lenders' demand, deliver
to Administrative Agent cash, or other collateral acceptable to the Required
Lenders in their sole and absolute discretion, having a value, as determined by
the Required Lenders, at least equal to the aggregate undrawn face amount of all
outstanding Letters of Credit. Any such collateral and/or any amounts received
by Administrative Agent for such Letters of Credit shall be held by
Administrative Agent in a separate account at Administrative Agent appropriately
designated as a cash collateral account in relation to this Agreement and the
Letters of Credit and retained by Administrative Agent as collateral security
for the payment of Borrower's Obligations hereunder. Cash amounts delivered to
Administrative Agent pursuant to the foregoing requirements of this Section
shall be invested, at the request and for the account of Borrower, in
investments of a type and nature and with a term acceptable to the Required
Lenders. Such amounts, including in the case of cash amounts invested in the
manner set forth above, any interest realized thereon, may be applied to
reimburse Administrative Agent and/or any of the Lenders for drawings or
payments under or pursuant to the Letters of Credit which Administrative Agent
has paid, or if no such reimbursement is required to the payment of such other
of Borrower's Obligations as the Required Lenders shall determine. Any amounts
remaining in any cash collateral account established pursuant to this Section
after the payment in full of all of Borrower's Obligations and the expiration or
cancellation of all of the Letters of Credit shall be returned to Borrower
(after deduction of Administrative Agent's expenses, if any).
3.5 Interest Rates and Payments.
(a) Each Revolving Credit Loan shall bear interest
prior to maturity at a rate per annum equal to such of the following as the
Borrower, at its option, shall select in accordance with Section 3.3: (i) the
Base Rate plus Applicable Margin, which rate shall fluctuate as and when said
Base Rate or said Applicable Margin shall change, or (ii) the LIBOR Rate plus
Applicable Margin, determined in the case of LIBOR Loans as of the date of the
commencement of the applicable Interest Period. Each Swing Loan shall bear
interest prior to maturity at a rate per annum equal to the Base Rate plus
Applicable Margin, which rate shall fluctuate as and when said Base Rate or said
Applicable Margin shall change. Accrued interest on all Base Rate Loans shall be
payable quarterly in arrears on the first day of each calendar quarter,
commencing on the first such date after such Loan is made. Accrued interest on
all LIBOR Loans shall be payable in arrears on the last day of the Interest
Period applicable to each such LIBOR Loan, and if any such Interest Period
exceeds three months, all accrued and unpaid interest shall be due and payable
on the date three months following the commencement of such Interest Period as
well. In addition, all accrued interest on all Loans shall be payable on the
last day of the Term hereof, whether by reason of acceleration or otherwise.
Each Alternate Currency Loan shall bear interest on the outstanding principal
amount thereof at a rate per annum set forth in the applicable Alternate
Currency Addendum.
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(b) After the occurrence of an Event of Default, the
principal balance of and, to the extent permitted by law, any overdue interest
on any Base Rate Loan shall bear interest, payable on demand, for each day until
paid, at a rate per annum equal to Two Percent (2.00%) over and above the Base
Rate plus Applicable Margin, fluctuating as and when said Base Rate shall
change. After the occurrence of an Event of Default, the principal balance of
and, to the extent permitted by law, any overdue interest on any LIBOR Loan
shall bear interest, payable on demand, for each day during the applicable
Interest Period until paid, at a rate per annum equal to the sum of Two Percent
(2.00%) plus the LIBOR Rate plus Applicable Margin for such LIBOR Loan, and
after the expiration of such Interest Period, such Loan shall thereafter bear
interest at the default rate applicable to Base Rate Loans under the preceding
sentence. After the occurrence of an Event of Default, the principal balance of,
and, to the extent permitted by law, any overdue interest on any Alternate
Currency Loan shall bear interest, payable upon demand, for each day until paid
at the rate per annum equal to two percent (2.00%) plus the interest rate
applicable to such Alternate Currency Loan immediately prior to the Event of
Default. From and after the maturity of the Notes, whether by reason of
acceleration or otherwise, the unpaid principal balance of each Loan shall bear
interest until paid, payable on demand, at a rate per annum equal to Two Percent
(2.00%) over and above the Base Rate, fluctuating as aforesaid.
(c) Interest shall be computed with respect to all
Loans (other than Alternate Currency Loans in Sterling) on an actual day,
360-day year basis. Alternate Currency Loans in Sterling shall be calculated on
a 365 or 366 day year basis. Each Revolving Credit Loan which is a Base Rate
Loan shall be for a principal amount of One Million Dollars ($1,000,000.00) or
any larger multiple of One Hundred Thousand Dollars ($100,000.00). Each LIBOR
Loan shall be for a principal amount of Two Million Five Hundred Thousand
Dollars ($2,500,000.00) or any larger multiple of Five Hundred Thousand Dollars
($500,000.00). The Borrower shall be permitted to have no more than twelve (12)
LIBOR Loans outstanding at any one time.
(d) The Administrative Agent shall determine each
interest rate applicable to the Loans hereunder as selected by Borrower pursuant
to Section 3.3. The Administrative Agent shall give prompt notice to Borrower
and the Lenders by telephone, telecopy, telex or cable of each rate of interest
so determined, and its determination thereof shall be conclusive in the absence
of manifest error.
3.6 Prepayment; Funding Losses. The Borrower shall be
privileged to prepay all at any time or any portion from time to time of the
unpaid principal balance of any Loan, provided, however, that any LIBOR Loan or
any Alternate Currency Loan in Sterling or any Alternate Currency Loan in
Australian Dollars which bears interest at a rate based upon the BBSY Bid Rate
may be prepaid only at the expiration of the applicable Interest Period. If the
Borrower makes any payment with respect to any LIBOR Loan or any Alternate
Currency Loan in Sterling or any Alternate Currency Loan in Australian Dollars
which bears interest at a rate based upon the BBSY Bid Rate on any day other
than the last day of the Interest Period applicable thereto (whether by reason
of acceleration, a required prepayment under this Agreement or otherwise), or if
the Borrower converts any LIBOR Loan or any Alternate Currency Loan in Sterling
or any Alternate Currency Loan in Australian Dollars which bears interest at a
rate based upon the BBSY Bid Rate or portion thereof to a Base Rate Loan or
other type of Loan on any day other than the last day of the Interest Period
applicable thereto (whether by reason of Section 3.8, 3.9 or otherwise), or if
the Borrower fails to borrow any LIBOR Loan or any Alternate Currency Loan in
Sterling or any Alternate Currency Loan in Australian Dollars which bears
interest at a rate based upon the BBSY Bid Rate after a request for such a Loan
has been given to Administrative
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Agent pursuant hereto, the Borrower shall reimburse any of the Lenders on demand
for any resulting losses and expenses incurred by any such Lender, including,
without limitation, any losses incurred in obtaining, liquidating or employing
deposits from third parties, including loss of margin for the period after such
payment or conversion, provided that such Lender shall have delivered to the
Borrower a certificate, with supporting calculations, as to the amount of such
losses and expenses, which certificate shall be conclusive in the absence of
manifest error. All prepayments shall be applied solely to the payment of
principal. If on the fifteenth day of any month or the Business Day immediately
subsequent thereto the Dollar Amount of all outstanding Alternate Currency Loans
under the Alternate Currency Addenda exceeds 105% of the lesser of $25,000,000
or the aggregate Alternate Currency Commitments with respect thereto, the
applicable Borrowers shall on such date prepay Alternate Currency Loans in an
aggregate amount such that after giving effect thereto the Dollar Amount of all
such Alternate Currency Loans is less than or equal to the lesser of $25,000,000
or the aggregate Alternate Currency Commitments with respect thereto.
3.7 Basis for Determining Interest Rate Inadequate or Unfair.
If with respect to any Interest Period:
(a) Deposits in dollars (in the applicable amounts)
are not being offered to any Lender in the relevant market for such Interest
Period, or
(b) Any Lender determines that the LIBOR Rate as
determined pursuant to the definition thereof will not adequately and fairly
reflect the cost to such Lender of maintaining or funding the LIBOR Loans for
such Interest Period,
such Lender shall forthwith give notice thereof to the Borrower, which notice
shall set forth in detail the basis for such notice, whereupon until such Lender
notifies the Borrower that the circumstances giving rise to such suspension no
longer exist, (a) the obligations of such Lender to make LIBOR Loans shall be
suspended, and (b) the Borrower shall convert all of its then outstanding LIBOR
Loans from such Lender on the last day of the then current Interest Period
applicable to each such LIBOR Loan, to a Base Rate Loan in an equal principal
amount. Interest accrued on such LIBOR Loan prior to such conversion shall be
due and payable on the date of such conversion.
3.8 Illegality. If, after the date of this Agreement, the
adoption of any applicable law, rule or regulation, or any change therein, or
any change in the interpretation or administration thereof by any governmental
or regulatory authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender with any
request or directive (whether or not having the force of law) of any such
governmental or regulatory authority, central bank or comparable agency shall
make it unlawful or impossible for such Lender to make, maintain or fund its
LIBOR Loans to the Borrower, such Lender shall forthwith give notice thereof to
the Borrower. Upon receipt of such notice, the Borrower shall convert all of
their then outstanding LIBOR Loans from such Lender on either (a) the last day
of the then current Interest Period applicable to such LIBOR Loan if such Lender
may lawfully continue to maintain and fund such LIBOR Loan to such day or (b)
immediately if such Lender may not lawfully continue to fund and maintain such
LIBOR Loan to such day, to a Base Rate Loan in an equal principal amount.
Interest accrued on such LIBOR Loan prior to such conversion shall be due and
payable on the date of such conversion together with any funding losses and
other amounts due under Section 3.6.
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3.9 Increased Cost.
(a) If (i) Regulation D of the Board of Governors of
the Federal Reserve System, as amended, or (ii) after the date hereof, the
adoption of any applicable law, rule or regulation, or any change therein, or
any change in the interpretation or administration thereof by any governmental
or regulatory authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender with any
request or directive (whether or not having the force of law) of any such
governmental or regulatory authority, central bank or comparable agency (a
"Regulatory Change"):
(i) shall subject any such Lender to any tax, duty or
other charge with respect to its LIBOR Loans, the Notes or the
obligation to make LIBOR Loans, or shall change the basis of taxation
of payments to any such Lender of the principal of or interest on its
LIBOR Loans or any other amounts due under this Agreement in respect of
its LIBOR Loans or its obligation to make LIBOR Loans (except for taxes
on or changes in the rate of tax on the overall net income of such
Lender); or
(ii) shall impose, modify or deem applicable any
reserve (including, without limitation, any reserve imposed by the
Board of Governors of the Federal Reserve System), special deposit,
capital or similar requirement against assets of, deposits with or for
the account of, or credit extended or committed to be extended by, any
such Lender or shall, with respect to such Lender impose, modify or
deem applicable any other condition affecting such Lender's LIBOR
Loans, the Notes or such Lender's obligation to make LIBOR Loans;
and the result of any of the foregoing is to increase the cost to (or in the
case of Regulation D, to impose a cost on or increase the cost to) such Lender
of making or maintaining any LIBOR Loan, or to reduce the amount of any sum
received or receivable by such Lender under this Agreement or under any of the
Notes with respect thereto, by an amount deemed by such Lender to be material,
and if such Lender is not otherwise fully compensated for such increase in cost
or reduction in amount received or receivable by virtue of the inclusion of the
reference to "LIBOR Reserve Percentage" in the calculation of the LIBOR Rate,
then upon notice by such Lender to the Borrower, which notice shall set forth
such Lender's supporting calculations and the details of the Regulatory Change,
the Borrower shall pay such Lender, as additional interest, such additional
amount or amounts as will compensate Lenders for such increased cost or
reduction. The determination by any Lender under this Section of the additional
amount or amounts to be paid to it hereunder shall be conclusive in the absence
of manifest error. In determining such amount or amounts, the Lenders may use
any reasonable averaging and attribution methods.
(b) If any Lender demands compensation under this
Section, the Borrower may at any time, upon at least one (1) Business Day's
prior notice to such Lender, convert their then outstanding LIBOR Loans to Base
Rate Loans in an equal principal amount. Interest accrued on such LIBOR Loan
prior to such conversion shall be due and payable on the date of such conversion
together with any funding losses and other amounts due under Section 3.6.
3.10 Base Rate Loans Substituted for Affected LIBOR Loans. If
notice has been given by any Lender pursuant to Section 3.7 or 3.8 or by the
Borrower pursuant to Section 3.9 requiring LIBOR Loans to be repaid or
converted, then, unless and until such Lender notifies the Borrower that
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the circumstances giving rise to such repayment or conversion no longer apply,
all Loans which would otherwise be made by such Lender to the Borrower as LIBOR
Loans shall be made instead as Base Rate Loans. Any such Lender shall notify the
Borrower if and when the circumstances giving rise to such repayment no longer
apply. All indemnities and all provisions relating to reimbursement to any
Lender of amounts sufficient to protect the yield to such Lender with respect to
the Loans, including, without limitation, Sections 3.6, 3.7, 3.8, and 3.9
hereof, shall survive the payment of the Notes and the termination of this
Agreement.
3.11 Place and Manner of Payment. Both principal and interest
on the Loans and all fees due hereunder and under any of the other Transaction
Documents payable to any Lender shall be paid in lawful currency of the United
States, in federal or other immediately available funds, at Administrative
Agent's banking office at 000 Xxxxxx Xxxxxx, Xx. Xxxxx, Xxxxxxxx 00000. The
Administrative Agent will promptly distribute to each Lender in immediately
available funds its ratable share of each such payment received by the
Administrative Agent pursuant to the terms of this Agreement for the account of
such Lenders. Whenever any payment of principal of, or interest on, the Loans or
of fees shall be due on a day which is not a Business Day, the date for payment
thereof shall be extended to the next succeeding Business Day, except as
required by clauses (iii) or (iv) of the definition of Interest Period. If the
date for any payment of principal is extended by operation of law or otherwise,
interest thereon, at the then applicable rate, shall be payable for such
extended time. All payments to be made by the Borrowers hereunder in respect of
any Alternate Currency Loans shall be made in the currencies in which such Loans
are denominated and in funds immediately available, at the office or branch from
which the Loan was made pursuant to Section 3.19 and the applicable Alternate
Currency Addenda not later than 3:00 p.m. local time on the date on which such
payment shall become due. Promptly upon receipt of any payment of principal of
the Alternate Currency Loans the Alternate Currency Bank shall give written
notice to the Administrative Agent by telex or telecopy of the receipt of such
payment.
3.12 Termination or Reduction of Revolving Credit Commitments.
The Borrower may, upon three (3) Business Days' prior written notice to
Administrative Agent, terminate entirely at any time, or proportionately reduce
from time to time on a pro rata basis among the Lenders based on their
respective Revolving Credit Commitments, by an aggregate amount of $5,000,000.00
or any larger multiple of $5,000,000.00, the unused portions of the Revolving
Credit Commitments as specified by Borrower in such notice to Administrative
Agent; provided, however, that (i) at no time shall the Revolving Credit
Commitments be reduced to a figure less than the total of the outstanding
principal amount of all Revolving Credit Loans plus the outstanding principal
amount of all Swing Loans plus the outstanding principal amount of all Alternate
Currency Loans, plus the face amount of all outstanding Letters of Credit, (ii)
at no time shall the Revolving Credit Commitments be reduced to a figure greater
than zero but less than $100,000,000.00, and (iii) any such termination or
reduction shall be permanent and the Borrower shall have no right to thereafter
reinstate or increase, as the case may be, the Revolving Credit Commitment, as
the case may be, of any Lender. Each Alternate Currency Borrower may, upon three
Business Days prior written notice to the Alternate Currency Bank, terminate
entirely at any time or reduce from time to time by an aggregate amount of
$5,000,000.00 or any larger multiple of $5,000,000.00 the unused portions of the
applicable Alternate Currency Commitment as specified by the applicable
Alternate Currency Borrower in such notice to the Alternate Currency Bank;
provided, however, that at no time shall the Alternate Currency Commitments be
reduced to a figure less than the total of the outstanding principal amount of
all Alternate Currency Loans.
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3.13 Facility Fee. From the date hereof to but excluding the
last day of the Term hereof, the Borrower shall pay to the Administrative Agent,
for distribution to the Lenders in accordance with their Pro Rata Shares, a
quarterly nonrefundable facility fee (the "Facility Fee") equal to the
percentage per annum equal to the then current Applicable Margin, multiplied by
the average daily Total Revolving Credit Commitment. The average daily Total
Revolving Credit Commitment shall be calculated as (i) the sum of the amounts
each day during any such fiscal quarter equal to the Total Revolving Credit
Commitment, divided by (ii) the number of days in any such fiscal quarter or
partial fiscal quarter for which such Revolving Credit Commitment was available.
Such Facility Fee shall be payable quarterly in arrears on each April 1, July 1,
October 1 and January 1 during the Term hereof and on the last day of the Term
hereof, and shall be calculated on an actual day, 365/366-day year basis.
3.14 Upfront Fee. Borrower shall pay to the Administrative
Agent on the date hereof, for distribution to the Lenders in accordance
herewith, a nonrefundable upfront fee (the "Upfront Fee") equal to the
following:
(a) For each Lender (other than those Lenders which
are also Agents hereunder) which had a Revolving Credit Commitment under the
Prior Credit Agreement (its "Prior Commitment"), an amount equal to
one-twentieth of one percent (0.05%) times the lesser of such Lender's Revolving
Credit Commitment hereunder or such Lender's Prior Commitment; plus
(b) For each Lender (including Lenders which are
Agents hereunder), an amount equal to one-fourth of one percent (0.25%) times
the amount by which each such Lender's Revolving Credit Commitment hereunder
exceeds such Lender's Prior Commitment, if any.
3.15 Maturity. All principal, interest and other amounts
outstanding with respect to the Revolving Credit Loans the Swing Loans and the
Alternate Currency Loans which are not paid prior thereto shall be due and
payable on the last day of the Term hereof, whether by reason of the expiration
thereof, acceleration or otherwise.
3.16 Voluntary Prepayments.
(a) Borrower may, upon notice to Administrative Agent
specifying that it is paying its Base Rate Loans, pay its Base Rate Loans in
whole at any time, or from time to time in part in amounts aggregating
$100,000.00 or any larger multiple of $100,000.00, by paying the principal
amount to be paid together with all accrued and unpaid interest thereon to and
including the date of payment; provided, however, that in no event may the
Borrower make a partial payment of Base Rate Loans which results in the total
outstanding Revolving Credit Loans which are Base Rate Loans being greater than
zero but less than $2,500,000.00.
(b) Subject to Section 3.6, Borrower may, upon at
least three (3) Business Days' notice to Administrative Agent specifying that it
is paying LIBOR Loans, pay on the last day of any Interest Period its LIBOR
Loans to which such Interest Period applies, in whole, or in part in amounts
aggregating $500,000.00 or any larger multiple of $500,000.00, by paying the
principal amount to be paid together with all accrued and unpaid interest
thereon to and including the date of payment; provided, however, that in no
event may the Borrower make a partial payment of LIBOR Loans which results in
the total outstanding LIBOR Loans with respect to which a given Interest Period
applies being greater than zero but less than $2,500,000.00.
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(c) Upon receipt of a notice of payment pursuant to
Sections 3.16(a) or (b) above, the Administrative Agent shall promptly notify
each Lender of the contents thereof and of such Lender's Pro Rata Share of such
payment and such notice shall not thereafter be revocable by Borrower.
(d) Borrower may, upon notice to the Administrative
Agent specifying that it is paying its Swing Loans, pay without penalty or
premium such Swing Loans in whole at any time, or in part from time to time.
(e) Subject to Section 3.6, each Alternate Currency
Borrower may, upon notice to the Alternate Currency Bank specifying that it is
paying its Alternate Currency Loans, pay its Alternate Currency Loans in whole
at any time, or from time to time in part in amounts aggregating $500,000.00 or
any larger multiple of $500,000.00 by paying the principal amount to be paid
together with all accrued and unpaid interest thereon to and including the date
of payment.
3.17 Discretion of Lender as to Manner of Funding.
Notwithstanding any provision contained in this Agreement to the contrary, each
of the Lenders shall be entitled to fund and maintain its funding of all or any
part of its LIBOR Loans in any manner it elects, it being understood, however,
that for purposes of this Agreement all determinations hereunder (including,
without limitation, the determination of each Lender's funding losses and
expenses under Section 3.6) shall be made as if such Lender had actually funded
and maintained each LIBOR Loan through the purchase of deposits having a
maturity corresponding to the maturity of the applicable Interest Period
relating to the applicable LIBOR Loan and bearing an interest rate equal to the
applicable LIBOR Rate. Each Lender may, at its option, elect to make, fund or
maintain its Loans hereunder at the branches or offices specified on the
signature pages hereof or on any Assignment Agreement executed and delivered
pursuant to Section 10.12 hereof or at such other of its branches or offices as
such Lender may from time to time elect, provided that the Borrower shall not be
required to reimburse any Lender under any of the provisions of Section 3.6 for
any cost which such Lender would not have incurred but for changing its lending
or funding branch unless Borrower consents to such change.
3.18 Swing Loan Settlement After Default . Upon the occurrence
of any Event of Default, Administrative Agent shall promptly so notify the other
Lenders pursuant to Section 8 herein and of the amount of the Swing Loans from
Mercantile then outstanding, and each of the other Lenders agrees to immediately
purchase from Mercantile with immediately available funds its Pro Rata Share of
the amount of all such Swing Loans, plus accrued and unpaid interest calculated
on such Pro Rata Share of such principal amount at a rate per annum equal to the
Base Rate plus Applicable Margin. Following such advance by each Lender to
Mercantile of its Pro Rata Share of any such Swing Loans pursuant to the
preceding sentence, each such Lender shall thereafter receive its Pro Rata Share
of all principal payments, interest payments, fees and other amounts due with
respect to such Swing Loans when paid by the Borrower to the Administrative
Agent hereunder. Such Loans shall thereafter be evidenced by the Revolving
Credit Notes of each of the Lenders.
3.19 Alternate Currency Loans.
(a) Upon the satisfaction of the conditions precedent
set forth in Section 4 hereof and set forth in the applicable Alternate Currency
Addendum, from and including the later of the date of this Agreement and the
date of execution of the applicable Alternate Currency Addendum
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and prior to the last day of the Term hereof (unless an earlier termination date
shall be specified in or pursuant to the applicable Alternate Currency
Addendum), the Alternate Currency Bank agrees, on the terms and conditions set
forth in this Agreement and in the applicable Alternate Currency Addendum, to
make Alternate Currency Loans under such Alternate Currency Addendum to the
applicable Alternate Currency Borrower party to such Alternate Currency Addendum
from time to time in the applicable Alternate Currency, in an amount not to
exceed each such Alternate Currency Bank's applicable Alternate Currency
Commitment; provided, however, at no time shall the Dollar Amount of the
outstanding principal amount of the Alternate Currency Loans for all Alternate
Currencies exceed $25,000,000 other than as a result of currency fluctuations
and then only to the extent permitted in Section 3.6; provided, further, at no
time shall the Dollar Amount of the Alternate Currency Loans for any specific
Alternate Currency exceed the maximum amount specified as the maximum amount for
such Alternate Currency in the applicable Alternate Currency Addendum other than
as a result of currency fluctuations and then only to the extent permitted in
Section 3.6. Subject to the terms of this Agreement and the applicable Alternate
Currency Addendum, the applicable Alternate Currency Borrowers may borrow, repay
and reborrow Alternate Currency Loans at any time prior to the last day of the
Term hereof (unless an earlier termination date shall be specified in or
pursuant to the applicable Alternate Currency Addendum). On the last Business
Day of the Term hereof (unless an earlier termination date shall be specified in
or pursuant to the applicable Alternate Currency Addendum), the outstanding
principal balance of the Alternate Currency Loans shall be paid in full by the
applicable Alternate Currency Borrower and prior to the last Business Day of the
Term hereof (unless an earlier termination date shall be specified in or
pursuant to the applicable Alternate Currency Addendum) prepayments of the
Alternate Currency Loans shall be made by the applicable Alternate Currency
Borrower if and to the extent required in Section 3.6.
(b) Borrowing Notice. When the applicable Alternate
Currency Borrower desires to borrow under this Section 3.19, the applicable
Alternate Currency Borrower shall deliver to the Alternate Currency Bank a
borrowing notice, signed by it, specifying that the Alternate Currency Borrower
is requesting an Alternate Currency Loan pursuant to this Section 3.19. Any
borrowing notice given pursuant to this Section 3.19 shall be irrevocable.
(c) Termination. Except as otherwise required by
applicable law, in no event shall the Alternate Currency Bank have the right to
accelerate the Alternate Currency Loans outstanding under any Alternate Currency
Addendum or to terminate their commitments (if any) thereunder to make Alternate
Currency Loans prior to the stated termination date in respect thereof, except
that the Alternate Currency Bank shall have such rights upon an acceleration of
the Loans and a termination of the Revolving Credit Commitments pursuant to
Section 8.
(d) Statements. The Alternate Currency Bank shall
furnish to the Administrative Agent not less frequently than monthly, and at any
other time at the reasonable request of the Administrative Agent, a statement
setting forth the outstanding Alternate Currency Loans made and repaid during
the period since the last such report under such Alternate Currency Addendum.
(e) Risk Participation. Immediately and automatically
upon the occurrence of an Event of Default under Section 8.1, 8.7 or 8.8, each
Lender shall be deemed to have unconditionally and irrevocably purchased from
the Alternate Currency Bank, without recourse or warranty, an undivided interest
in and participation in each Alternate Currency Loan ratably in accordance with
such Lender's Pro Rata Share of the amount of such Loan, and immediately and
automatically all Alternate Currency Loans shall be converted to and
redenominated in Dollars equal
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to the Dollar Amount of each such Alternate Currency Loan determined as of the
date of such conversion; provided, that to the extent such conversion shall
occur other than at the end of an Interest Period, the applicable Alternate
Currency Borrower shall pay to the Alternate Currency Bank, all losses and
breakage costs related thereto in accordance with Section 3.6. Each of the
Lenders shall pay to the Alternate Currency Bank not later than two (2) Business
Days following a request for payment from such Alternate Currency Bank, in
Dollars, an amount equal to the undivided interest in and participation in the
Alternate Currency Loan purchased by such Lender pursuant to this Section
3.19(e). In the event that any Lender fails to make payment to the Alternate
Currency Bank of any amount due under this Section 3.19(e), the Administrative
Agent shall be entitled to receive, retain and apply against such obligation the
principal and interest otherwise payable to such Lender hereunder until the
Administrative Agent receives from such Lender an amount sufficient to discharge
such Lender's payment obligation as prescribed in this Section 3.19(e) together
with interest thereon at the Fed Funds Rate for each day during the period
commencing on the date of demand by the Alternate Currency Bank and ending on
the date such obligation is fully satisfied. The Administrative Agent will
promptly remit all payments received as provided above to the Alternate Currency
Bank.
(f) Other Provisions Applicable to Alternate Currency
Loans. The specification of payment of Alternate Currency Loans in the related
Alternate Currency at a specific place pursuant to this Agreement is of the
essence. Such Alternate Currency shall be the currency of account and payment of
such Loans under this Agreement and the Notes. Notwithstanding anything in this
Agreement, the obligation of the applicable Alternate Currency Borrower in
respect of such Loans shall not be discharged by an amount paid in any other
currency or at another place, whether pursuant to a judgment or otherwise, to
the extent the amount so paid, on prompt conversion into the applicable
Alternate Currency and transfer to the Alternate Currency Bank under normal
banking procedure, does not yield the amount of such Alternate Currency due
under this Agreement, the applicable Alternate Currency Addenda and the Notes.
In the event that any payment, whether pursuant to a judgment or otherwise, upon
conversion and transfer, does not result in payment of the amount of such
Alternate Currency due under this Agreement, the applicable Alternate Currency
Addenda and the Notes, the Alternate Currency Bank shall have an independent
cause of action against the Alternate Currency Borrowers for the currency
deficit.
3.20 Market Disruption. Notwithstanding the satisfaction of
all conditions referred to in this Agreement with respect to the Alternate
Currency Bank, if there shall occur on or prior to the date of any Alternate
Currency Loan any change in national or international financial, political or
economic conditions or currency exchange rates or exchange controls which would
in the reasonable opinion of the Alternate Currency Bank make it impracticable
for the Alternate Currency Loans to be denominated in the currency specified by
the applicable Borrower, then the Alternate Currency Bank shall forthwith give
notice thereof to such Borrower, and such Loans shall not be denominated in such
currency but shall be made on such Borrowing Date in Dollars, in an aggregate
principal amount equal to the Dollar Amount of the aggregate principal amount
specified in the related Borrowing Notice, as Base Rate Loans, unless the
applicable Borrower notifies the Alternate Currency Bank at least one Business
Day before such date that (i) it elects not to borrow on such date or (ii) it
elects to borrow on such date in a different Alternate Currency in which the
denomination of such Loans would in the opinion of the Alternate Currency Bank
be practicable and in an aggregate principal amount equal to the Dollar Amount
of the aggregate principal amount specified in the related Borrowing Notice.
3.21 Judgment Currency. If for the purposes of obtaining
judgment in any court it is necessary to convert a sum due from any of the
Borrowers hereunder or under any of the Notes in the
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currency expressed to be payable herein or under the Notes (the "specified
currency") into another currency, the parties hereto agree, to the fullest
extent that they may effectively do so, that the rate of exchange used shall be
that at which in accordance with normal banking procedures the Alternate
Currency Bank could purchase the specified currency with such other currency at
the Alternate Currency Bank's office in Chicago, Illinois on the Business Day
preceding that on which final, non-appealable judgment is given. The obligations
of the applicable Borrower in respect of any sum due to any Lender, Alternate
Currency Bank or the Administrative Agent hereunder or under any Note shall,
notwithstanding any judgment in a currency other than the specified currency, be
discharged only to the extent that on the Business Day following receipt by such
Lender, Alternate Currency Bank or the Administrative Agent (as the case may be)
of any sum adjudged to be so due in such other currency such Lender, Alternate
Currency Bank or the Administrative Agent (as the case may be) may in accordance
with normal, reasonable banking procedures purchase the specified currency with
such other currency. If the amount of the specified currency so purchased is
less than the sum originally due to such Lender, Alternate Currency Bank or the
Administrative Agent, as the case may be, in the specified currency, the
applicable Borrower agrees, to the fullest extent that it may effectively do so,
as a separate obligation and notwithstanding any such judgment, to indemnify
such Lender, Alternate Currency Bank or the Administrative Agent, as the case
may be, against such loss.
3.22 Payments to be Free and Clear.
(a) All sums payable by each Borrower under the
Notes, whether in respect of principal, interest, fees or otherwise, shall be
paid without deduction for any present and future taxes, levies, imposts,
deductions, charges or withholdings imposed by any government or any political
subdivision or taxing authority thereof (other than any tax on or measured by
the net income, profits or gains of any Lender) and all interest, penalties or
similar liabilities with respect thereto (collectively, "taxes"), which amounts
shall be paid by the applicable Borrower as provided in this Section 3.22.
(b) Grossing-up of Payments. If: (a) any Borrower or
any other Person is required by law to make any deduction or withholding on
account of any such taxes from any sum paid or expressed to be payable by the
applicable Borrower to any Lender under this Agreement; or (b) any party to this
Agreement (or any Person on its behalf) other than any Borrower is required by
law to make any deduction or withholding from, or any payment on or calculated
by reference to the amount of, any such sum received or receivable (other than
on account of any excluded taxes) by any Lender under this Agreement then:
(i) the applicable party shall notify the
Administrative Agent and, if such party is not the applicable Borrower,
the Administrative Agent will notify the applicable Borrower of any
such requirement or any change in any such requirement as soon as such
party becomes aware of it;
(ii) the applicable Borrower shall pay any such taxes
before the later of (i) the date on which penalties attached thereto
become due and payable or (ii) 15 days after the date of receipt by the
applicable Borrower of such written notification provided by the
Administrative Agent in accordance with paragraph (i) if such
applicable party is not the applicable Borrower, such payment to be
made (if the liability to pay is imposed on such Borrower) for its own
account or (if that liability is imposed on any party to this
Agreement) on behalf of and in the name of that party;
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(iii) the sum payable by the applicable Borrower in
respect of which the relevant deduction, withholding or payment is
required shall (except, in the case of any such payment, to the extent
that the amount thereof is not ascertainable when that sum is paid) be
increased to the extent necessary to ensure that, after the making of
that deduction, withholding or payment, that party receives on the due
date and retains (free from any liability in respect of any such
deduction, withholding or payment) a sum equal to that which it would
have received and so retained had no such deduction, withholding or
payment been required or made;
(iv) within thirty (30) days after payment of any sum
from which the applicable Borrower is required by law to make any
deduction or withholding, and within thirty (30) days after the due
date of payment of any tax or other amount which it is required by
paragraph (ii) to pay, it shall deliver to the Administrative Agent all
such certified documents and other evidence as to the making of such
deduction, withholding or payment as (a) are reasonably satisfactory to
the affected parties as proof of such deduction, withholding or payment
and of the remittance thereof to the relevant taxing or other authority
and (b) are required by any such party to enable it to claim a tax
credit with respect to such deduction, withholding or payment; and
(v) In the event any Lender receives a refund of any
taxes paid by a Borrower pursuant to this Section 3.22, or receives a
tax credit which such Lender concludes is attributable to a payment
made by such Borrower pursuant to this Section 3.22, such Lender shall
pay an amount equal to such refund or credit to such Borrower within
forty-five days of receipt of such refund or application of such
credit.
(c) Withholdings. On or prior to the date of its
execution and delivery of this Agreement in the case of any Lender (and on or
prior to the effective date specified in any Assignment Agreement pursuant to
which a Person becomes a Lender), each Lender that is not incorporated under the
laws of the United States of America, or a state thereof (a "non-U.S. Lender"),
agrees that it will (a) if such non-U.S. Lender is a "bank" within the meaning
of Section 881(c)(3)(A) of the Code, deliver to the Borrower and the
Administrative Agent two duly completed copies of United States Internal Revenue
Service Form 1001 or 4224 (or other appropriate form), certifying in either case
that such Lender is entitled to receive payments under the Transaction Documents
without deduction or withholding of any United States federal income taxes or,
(b) if such non-U.S. Lender is not a "bank" within the meaning of section
881(c)(3)(A) of the Code and intends to claim exemption from U.S. Federal
withholding tax under Section 871(h) or 881(c) of the Code with respect to
payments of "portfolio interest", a Form W-8, or any subsequent versions thereof
or successors thereto (and, if such non-U.S. Lender delivers a Form W-8, a
certificate representing that such non-U.S. Lender is not a bank for purposes of
Section 881(c) of the Code, is not a 10-percent shareholder (within the meaning
of Section 871(h)(3)(B) of the Code of the Borrower and is not a controlled
foreign corporation related to the Borrower (within the meaning of Section
864(d)(4) of the Code)), properly completed and duly executed by such non-U.S.
Lender claiming complete exemption from U.S. Federal withholding tax on payments
of interest by the applicable Borrowers under this Agreement and the other
Transaction Documents. Each Lender which so delivers a Form 1001 or 4224 further
undertakes to deliver to the Borrower and the Administrative Agent two
additional copies of such form (or a successor form) on or before the date that
such form (or a replacement of an expired form) expires (currently, three
successive calendar years for Form 1001 and one calendar year for Form 4224) or
becomes obsolete or
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after the occurrence of any event requiring a change in the most recent forms so
delivered by it, and such amendments thereto or extensions or renewals thereof
as may be reasonably requested by the Borrower or the Administrative Agent, in
each case certifying that such Lender is entitled to receive payments under the
Transaction Documents without deduction or withholding of any United States
federal income taxes, unless an event (including without limitation any change
in treaty, law or regulation) has occurred prior to the date on which any such
delivery would otherwise be required which renders all such forms inapplicable
or which would prevent such Lender from duly completing and delivering any such
form with respect to it and such Lender promptly advises the Borrower and the
Administrative Agent that it is not capable of receiving payments without any
deduction or withholding of United States federal income tax.
SECTION 4. PRECONDITIONS TO LOANS.
4.1 Initial Revolving Credit Loan, Swing Loan or Letter of
Credit. Notwithstanding any provision contained herein to the contrary, Lenders
shall have no obligation to make any Loan hereunder, and Administrative Agent
shall have no obligation to issue any Letter of Credit, unless Agents and
Lenders shall have received the following:
(a) This Agreement, the Parent Guaranty and the
Notes, each executed by a duly authorized officer of the Borrower;
(b) A Consent of Guarantors (the "Consent of
Guarantors") consenting to the execution, delivery and performance of this
Agreement and the Notes by Borrower, executed and delivered by a duly authorized
officer of each Guarantor;
(c) The Subsidiary Guaranties of any Domestic
Subsidiary in existence on the date hereof which has not heretofore provided a
Subsidiary Guaranty to Administrative Agent, executed and delivered by a duly
authorized officer of each of such respective Subsidiaries of Borrower;
(d) A Pledge Agreement, together with such collateral
schedules, stock powers (signed in blank) and other documents as Administrative
Agent may reasonably require under Section 5.1 relating to all of the stock or
other ownership interests of any Domestic Subsidiary or 65% of the stock or
other ownership interests of any Foreign Subsidiary in existence on the date
hereof not covered by any Pledge Agreement heretofore provided by Borrower to
Administrative Agent, each executed by a duly authorized officer of the
Borrower;
(e) The Subsidiary Pledge Agreements, together with
such collateral schedules, stock powers (signed in blank) and other documents as
Administrative Agent may reasonably require under Section 5.2 relating to the
stock or other ownership interests of any Subsidiary (100% of such stock or
other ownership interests if a Domestic Subsidiary or 65% if a Foreign
Subsidiary) of a Domestic Subsidiary of Borrower in existence on the date hereof
not covered by any Subsidiary Pledge Agreement heretofore provided by Borrower
to Administrative Agent, each executed by a duly authorized officer of the
Borrower;
(f) A copy of resolutions of the Board of Directors
of Borrower, duly adopted, which authorize the execution, delivery and
performance of this Agreement, the Notes, the
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Pledge Agreement, and the other Transaction Documents to be executed by
Borrower, certified by the Secretary of Borrower;
(g) A copy of resolutions of the Boards of Directors
of each of the Guarantors, each duly adopted, authorizing the execution and
delivery of the Consent of Guarantors of each of the Subsidiaries described in
(b) above, and a copy of resolutions of the Boards of Directors of each of the
other Subsidiaries described in (c) or (e) above, each duly adopted, authorizing
the execution, delivery and performance by each such Subsidiary of its
Subsidiary Guaranty, its Subsidiary Pledge Agreement and any other Transaction
Documents to be executed by such Subsidiary, certified by the Secretary or
Assistant Secretary of such Subsidiary;
(h) Copies of the Articles of Incorporation of each
of Borrower's Subsidiaries not previously provided to Administrative Agent,
including any amendments thereto, certified by the Secretary of State of each of
their respective states of incorporation;
(i) Copies of the Bylaws of each of Borrower's
Subsidiaries not previously provided to Administrative Agent, including
amendments thereto, certified respectively by the corporate Secretary of
Borrower and each such Subsidiary;
(j) Incumbency certificates, executed respectively by
the Secretaries or Assistant Secretaries of the Borrower and of each Subsidiary
of the Borrower, which shall identify by name and title and bear the signatures
of all of the officers of the Borrower or each such Subsidiary executing any of
the Transaction Documents;
(k) A certificate of corporate good standing of
Borrower and each of its Subsidiaries issued by the Secretary of State of their
respective states of incorporation;
(l) An opinion of counsel of Xxxxxx, Xxxxxxx &
Xxxxxxxx LLP, independent counsel to the Borrower and its Subsidiaries, in the
form of Exhibit I attached hereto and incorporated herein by reference;
(m) Payment of the Upfront Fee required by Section
3.14 herein; and
(n) Such other agreements, documents, instruments and
certificates as Agents or Lenders may reasonably request.
(o) With respect to the initial Alternate Currency
Loan made to Xxxxxx Xxxxxxx, the Alternate Currency Bank shall have received
originals and/or copies, as applicable, of all filings required to be made
establishing to the Alternate Currency Bank's satisfaction that the Alternate
Currency Bank and each other Lender is entitled to receive payments under the
Notes without deduction or withholding of any English taxes.
4.2 Subsequent Revolving Credit Loans and Letters of Credit.
Notwithstanding any provision contained herein to the contrary, Lenders shall
have no obligation to make any subsequent Revolving Credit Loan or Swing Loan
hereunder, and Administrative Agent shall have no obligation to issue any
subsequent Letter of Credit hereunder, unless:
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(a) Administrative Agent and each of the Lenders
shall have received the current quarter-end financial statements and the
quarter-end compliance certificate as required by Sections 7.1(a)(ii) and (iii);
(b) Administrative Agent shall have received a
complete application for such Revolving Credit Loan as required by Section
3.3(a) or a Letter of Credit Application for such Letter of Credit, as the case
may be;
(c) Any Subsidiary created or acquired by Borrower in
connection with the Acceptable Acquisition shall have executed and delivered:
(i) A Subsidiary Guaranty (if such Subsidiary is a
Domestic Subsidiary) executed and delivered by a duly authorized
officer, member or partner of such new Domestic Subsidiary of Borrower;
(ii) A Subsidiary Pledge Agreement (if such
Subsidiary is a Domestic Subsidiary which owns stock or other equity
interests in any other Subsidiary) pledging all such stock or other
equity interests in any Domestic Subsidiary and 65% of such stock or
other equity interests in any Foreign Subsidiary, together with such
financing statements, collateral schedules, stock powers (signed in
blank) and other documents as Administrative Agent may reasonably
require under Section 5.2, each executed by a duly authorized officer
of such new Subsidiary;
(iii) A copy of resolutions of the Board of Directors
or other governing body of such new Subsidiary, duly adopted,
authorizing the execution, delivery and performance by such Subsidiary
of its Subsidiary Guaranty (if any), its Subsidiary Pledge Agreement
(if any) and any other Transaction Documents to be executed by such
Subsidiary, certified by the Secretary or Assistant Secretary, general
partner or other authorized manager of such Subsidiary;
(iv) A copy of the Articles of Incorporation of such
new Subsidiary, certified by the Secretary of State of its state of
incorporation;
(v) A copy of the Bylaws of such new Subsidiary,
certified by the corporate Secretary of such Subsidiary;
(vi) An incumbency certificate, executed by the
Secretary or Assistant Secretary, general partner or other authorized
manager of such new Subsidiary, which shall identify by name and title
and bear the signatures of all of the officers or other authorized
managers or agents of such Subsidiary executing any of the Transaction
Documents;
(vii) A certificate of corporate good standing of
such Subsidiary, issued by the Secretary of State of its state of
incorporation; and
(viii) An opinion of counsel of Xxxxxx, Xxxxxxx &
Xxxxxxxx LLP, independent counsel to the Borrower and such Subsidiary
in form and substance satisfactory to the Agents and the Lenders.
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(d) Borrower shall have delivered to Administrative
Agent for the benefit of each of the Lenders, the original stock certificate of
such newly created or acquired Subsidiary, together with such collateral
schedules, stock powers, and other documents Administrative Agent may reasonably
require;
(e) On the date of and immediately after such
Revolving Credit Loan, Swing Loan or Letter of Credit, no Default or Event of
Default under this Agreement shall have occurred and be continuing;
(f) On the date of and immediately after such
Revolving Credit Loan, Swing Loan or Letter of Credit, no material adverse
change in the business, financial position or results of operations of the
Borrower or any of its Subsidiaries shall have occurred since the date of this
Agreement and be continuing;
(g) All of the representations and warranties of the
Borrower contained in this Agreement, including any pertaining to the new
Subsidiary created or acquired as a result of the Acceptable Acquisition, shall
be true and correct on and as of the date of such Revolving Credit Loan, Swing
Loan or Letter of Credit, as if made on the date of such Revolving Credit Loan,
Swing Loan or Letter of Credit.
Each request for a Revolving Credit Loan, Swing Loan or Letter
of Credit by the Borrower hereunder shall be deemed to be a representation and
warranty by the Borrower on the date of such Revolving Credit Loan, Swing Loan
or Letter of Credit as to the facts specified in clauses (e), (f) and (g) of
this Section 4.2.
SECTION 5. COLLATERAL.
5.1 Pledge Agreement. In order to further secure the payment
when due of the Borrower's Obligations, the Borrower has pledged to
Administrative Agent for the benefit of each of the Lenders all of the issued
and outstanding capital stock, partnership interest, membership interests and
other equity interests of each present Domestic Subsidiary of the Borrower and
65% of the issued and outstanding capital stock, partnership interest,
membership interests and other equity interests of each present Foreign
Subsidiary of the Borrower, and if any such Subsidiary is created or acquired
subsequent to the date hereof, on the date of any such acquisition or formation,
Borrower shall pledge and deliver to Administrative Agent for the benefit of
each of the Lenders all of the issued and outstanding stock, partnership
interest, membership interests and other equity interests of any such future
Domestic Subsidiary of the Borrower and 65% of the issued and outstanding stock,
partnership interest, membership interests and other equity interests of any
such future Foreign Subsidiary of the Borrower. Said pledge is more fully
described and evidenced by that certain General Pledge and Security Agreement
dated October 4, 1996 and executed by the Borrower in favor of Administrative
Agent for the benefit of each of the Lenders and each of the other General
Pledge and Security Agreements and Collateral Assignments heretofore or
hereafter executed and delivered by Borrower to Administrative Agent for the
benefit of each of the Lenders (as the same may from time to time be amended,
modified, extended or renewed, collectively, the "Pledge Agreements"). The
Borrower covenants and agrees to execute any and all collateral schedules, stock
powers and such other documents as may from time to time be requested by
Administrative Agent or any Lender in order to create, perfect and maintain the
pledge created by the Pledge Agreements and to deliver all original
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stock or other certificates for any such present or future Subsidiaries
evidencing the pledged portion of the capital stock or other equity interests
thereof. Upon demand, the Borrower shall pay to Administrative Agent or to any
other party designated by Administrative Agent, all filing fees or transfer fees
incurred by Administrative Agent in the perfection and administration of the
pledges contemplated hereby. Lenders shall have no obligation to make any Loan
hereunder or to convert any Loan hereunder to a new interest rate basis unless
and until the Borrower has fully satisfied these requirements.
5.2 Subsidiary Pledge Agreements. In order to further secure
the payment when due of the Borrower's Obligations, the Borrower heretofore has
caused and hereafter shall cause each of its Domestic Subsidiaries to pledge to
Administrative Agent for the benefit of each of the Lenders all of the issued
and outstanding capital stock, partnership interest, membership interests and
other equity interests of each present Domestic Subsidiary and 65% of the issued
and outstanding capital stock, partnership interest, membership interests and
other equity interests of each present Foreign Subsidiary of such Domestic
Subsidiary of Borrower, and if any such Subsidiary is created or acquired
subsequent to the date hereof, on the date of any such acquisition or formation,
Borrower shall cause each of its Domestic Subsidiaries to pledge and deliver to
Administrative Agent for the benefit of each of the Lenders all of the issued
and outstanding stock, partnership interest, membership interests and other
equity interests of any such future Domestic Subsidiary and 65% of the issued
and outstanding stock, partnership interest, membership interests and other
equity interests of any such future Foreign Subsidiary. Each such pledge is or
shall be evidenced by a General Pledge and Security Agreement or Collateral
Assignment executed, respectively, by each such Domestic Subsidiary of the
Borrower in favor of Administrative Agent for the benefit of each of the Lenders
in form and substance acceptable to Administrative Agent (as the same may from
time to time be amended, modified, extended or renewed, the "Subsidiary Pledge
Agreements"). The Borrower covenants and agrees to cause each of its Domestic
Subsidiaries to execute any and all collateral schedules, stock powers and such
other documents as from time to time may be requested by Administrative Agent or
any Lender in order to create, perfect and maintain the pledges created by the
Subsidiary Pledge Agreements and to deliver all original stock or other
certificates for any such present or future Subsidiaries evidencing the pledged
portion of the capital stock or other equity interests thereof. Upon demand, the
Borrower shall pay to Administrative Agent or to any other party designated by
Administrative Agent, all filing fees or transfer fees incurred by
Administrative Agent in the perfection and administration of the pledges
contemplated hereby. Lenders shall have no obligation to make any Loan hereunder
or to convert any Loan hereunder to a new interest rate basis unless and until
the Borrower has fully satisfied these requirements.
SECTION 6. REPRESENTATIONS AND WARRANTIES.
Borrower represents and warrants to Agents and Lenders that:
6.1 Corporate Existence and Power. Borrower: (a) is duly
incorporated, validly existing and in good standing under the laws of the State
of Delaware; (b) has all requisite corporate powers and all governmental and
regulatory licenses, authorizations, consents and approvals required to carry on
its business as now conducted; and (c) is duly qualified to do business in all
jurisdictions in which the nature of the business conducted by it makes such
qualification necessary and where failure to so qualify would have a material
adverse effect on its business, financial condition or operations.
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6.2 Authorization. The execution, delivery and performance by
the Borrower of this Agreement, the Notes, the Pledge Agreements and the other
Transaction Documents are within the corporate powers of Borrower, and have been
duly authorized by all necessary action of the board of directors of said
corporation.
6.3 Binding Effect. This Agreement, the Notes, the Pledge
Agreements and the other Transaction Documents have been duly executed and
delivered by the Borrower and constitute the legal, valid and binding
obligations of the Borrower enforceable in accordance with their respective
terms, except as such enforceability may be limited by bankruptcy, insolvency or
other similar laws affecting creditors' rights in general.
6.4 Financial Statements. The Borrower has furnished the
Agents and the Lenders with the following financial statements, identified by
the principal financial officer of the Borrower: (i) consolidated and
consolidating balance sheets as of December 31, 1997 and corresponding
statements of income, retained earnings and cash flows of Borrower and each of
its Consolidated Subsidiaries for the fiscal year ending December 31, 1997,
prepared in accordance with generally accepted accounting principles
consistently applied and audited by Xxxxxx Xxxxxxxx LLP, Borrower's independent
certified public accountants, and (ii) consolidated and consolidating balance
sheets as of June 30, 1998 and corresponding statements of income, retained
earnings and cash flows of Borrower and each of its Consolidated Subsidiaries
for the fiscal quarter ending June 30, 1998, certified by the principal
financial officer of the Borrower as being true and correct to the best of his
knowledge and as being prepared in accordance with generally accepted accounting
principles consistently applied. The Borrower further represents and warrants to
each of the Agents and each of the Lenders that: (1) said balance sheets and
their accompanying notes fairly present the condition of Borrower and its
Consolidated Subsidiaries as of the dates thereof; (2) there has been no
material adverse change in the condition or operation, financial or otherwise,
of any of the Borrower or its Consolidated Subsidiaries since June 30, 1998; and
(3) neither the Borrower nor any of its Subsidiaries has any direct or
contingent liabilities which are not disclosed on said financial statements
which would have a material adverse effect on its business, financial condition
or operations.
6.5 Litigation. Except as disclosed on Schedule 6.5 attached
hereto, there is no action or proceeding pending or, to the knowledge of the
Borrower, threatened against or affecting the Borrower or any Subsidiary of the
Borrower before any court, arbitrator or any governmental, regulatory or
administrative body, agency or official which could result in any material
adverse change in the condition or operation, financial or otherwise, of the
Borrower or any Subsidiary of the Borrower, and neither the Borrower nor any
Subsidiary of the Borrower is in default with respect to any order, writ,
injunction, decision or decree of any court, arbitrator or any governmental,
regulatory or administrative body, agency or official, a default under which
could have a material adverse effect on the condition or operation, financial or
otherwise, of the Borrower or any Subsidiary of the Borrower.
6.6 Pension and Welfare Plans. Each Pension Plan complies with
all applicable statutes and governmental rules and regulations; no Reportable
Event has occurred and is continuing with respect to any Pension Plan; neither
the Borrower nor any ERISA Affiliate nor any Domestic Subsidiary of the Borrower
has withdrawn from any Multiemployer Plan in a "complete withdrawal" or a
"partial withdrawal" as defined in Sections 4203 or 4205 of ERISA, respectively;
no steps have been instituted by the Borrower, any ERISA Affiliate or any
Domestic Subsidiary of the Borrower to terminate any Pension Plan; no condition
exists or event or transaction has occurred in connection with
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any Pension Plan or Multiemployer Plan which could result in the incurrence by
the Borrower, any ERISA Affiliate or any Domestic Subsidiary of the Borrower of
any material liability, fine or penalty; and neither the Borrower nor any ERISA
Affiliate nor any Domestic Subsidiary of the Borrower is a "contributing
sponsor" as defined in Section 4001(a)(13) of ERISA of a "single-employer plan"
as defined in Section 4001(a)(15) of ERISA which has two or more contributing
sponsors at least two of whom are not under common control. Except as disclosed
on Schedule 6.6 attached hereto, neither the Borrower nor any Domestic
Subsidiary of the Borrower has any contingent liability with respect to any
"employee welfare benefit plan", as such term is defined in Section 3(a) of
ERISA, which covers retired employees and their beneficiaries.
6.7 Tax Returns and Payment. The Borrower and each Subsidiary
of the Borrower has filed all federal, state and local income tax returns and
all other tax returns which are required to be filed and has paid all taxes due
pursuant to such returns or pursuant to any assessment received by the Borrower
or any Subsidiary of the Borrower, except for the filing of such returns, if
any, in respect of which an extension of time for filing is in effect and except
for such taxes, if any, as are being contested in good faith by appropriate
proceedings being diligently conducted and as to which adequate reserves in
accordance with generally accepted accounting principles consistently applied
have been provided. The charges, accruals and reserves on the books of the
Borrower and each Subsidiary of the Borrower in respect of any taxes or other
governmental charges are, in the opinion of the Borrower, adequate.
6.8 Subsidiaries. The Borrower's Subsidiaries are as listed in
Schedule 6.8 attached hereto, which schedule sets forth each such Subsidiary's
past and present names and their current principal places of business.
6.9 Compliance With Other Instruments; None Burdensome.
Neither the Borrower nor any Subsidiary of the Borrower is a party to any
contract or agreement or subject to any charter or other corporate restriction
which materially and adversely affects its business, Property or financial
condition and which is not disclosed on the Borrower's financial statements
heretofore submitted to the Agents and the Lenders; none of the execution and
delivery by the Borrower of the Transaction Documents, the consummation of the
transactions therein contemplated or the compliance with the provisions thereof
will violate any law, rule, regulation, order, writ, judgment, injunction,
decree or award binding on the Borrower, or any of the provisions of Borrower's
Articles of Incorporation or Bylaws or any of the provisions of any indenture,
agreement, document, instrument or undertaking to which the Borrower is a party
or subject, or by which it or its Property is bound, or conflict with or
constitute a default thereunder or result in the creation or imposition of any
Lien pursuant to the terms of any such indenture, agreement, document,
instrument or undertaking (other than in favor of Administrative Agent for the
benefit of Lenders pursuant to the Transaction Documents). No order, consent,
approval, license, authorization or validation of, or filing, recording or
registration with, or exemption by, any governmental, regulatory, administrative
or public body or authority, or any subdivision thereof, is required to
authorize, or is required in connection with, the execution, delivery or
performance of, or the legality, validity, binding effect or enforceability of,
any of the Transaction Documents.
6.10 Other Loans and Guarantees. Except as disclosed on
Schedule 6.10 attached hereto, neither the Borrower nor any Subsidiary of the
Borrower is a party to any loan transaction or Guarantee other than this
Agreement and the Subsidiary Guaranties.
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6.11 Title to Property. The Borrower, and each Subsidiary of
the Borrower, is the sole and absolute owner of, or has the legal right to use
and occupy, all Property it claims to own or which is necessary for the Borrower
or such Subsidiary of the Borrower to conduct its business. Neither the Borrower
nor any Subsidiary of the Borrower has signed any financing statements, security
agreements or chattel mortgages with respect to any of its Property, has granted
or permitted any Liens with respect to any of its Property or has any knowledge
of any Liens with respect to any of its Property, except in favor of
Administrative Agent for the benefit of Lenders or as otherwise disclosed on
Schedule 6.11 attached hereto.
6.12 Multi-Employer Pension Plan Amendments Act of 1980.
Neither the Borrower nor any Domestic Subsidiary of the Borrower is a party to
any Multiemployer Plan.
6.13 Patents, Licenses, Trademarks, Etc. The Borrower, and
each Subsidiary of the Borrower, possesses all necessary patents, licenses,
trademarks, trademark rights, trade names, trade name rights and copyrights to
conduct its business without conflict with any patent, license, trademark, trade
name or copyright of any other Person.
6.14 Environmental and Safety and Health Matters. Except as
disclosed on Schedule 6.14 attached hereto: (i) the operations of the Borrower
and each Subsidiary of the Borrower comply with (A) all applicable Environmental
Laws and (B) all applicable Occupational Safety and Health Laws; (ii) none of
the operations of the Borrower or any Subsidiary of the Borrower is subject to
any judicial, governmental, regulatory or administrative proceeding alleging the
violation of any Environmental Law or Occupational Safety and Health Law; (iii)
none of the operations of the Borrower or any Subsidiary of the Borrower is the
subject of any federal or state investigation evaluating whether any remedial
action is needed to respond to (A) any spillage, disposal or release into the
environment of any Hazardous Material or any other hazardous, toxic or dangerous
waste, substance or constituent or other substance, or (B) any unsafe or
unhealthful condition at any premises of the Borrower or such Subsidiary of the
Borrower; (iv) neither the Borrower nor any Subsidiary of the Borrower has filed
any notice under any Environmental Law or Occupational Safety and Health Law
indicating or reporting (A) any past or present spillage, disposal or release
into the environment of, or treatment, storage or disposal of, any Hazardous
Material or any other hazardous, toxic or dangerous waste, substance or
constituent or other substance or (B) any unsafe or unhealthful condition at any
premises of the Borrower or such Subsidiary of the Borrower; and (v) neither the
Borrower nor any Subsidiary of the Borrower has any known contingent liability
in connection with (A) any spillage, disposal or release into the environment
of, or otherwise with respect to, any Hazardous Material or any other hazardous,
toxic or dangerous waste, substance or constituent or other substance or (B) any
unsafe or unhealthful condition at any premises of the Borrower or such
Subsidiary of the Borrower.
6.15 Other Corporate or Fictitious Names. The Borrower has
not, during the preceding five (5) years, been known by or used any corporate or
fictitious name other than "StaffMark, Inc." or "One Source Staffing, Inc.," and
no Subsidiary of Borrower has used any such other corporate or fictitious name
during the preceding five (5) years other than those listed in Schedule 6.15
attached hereto.
6.16 Year 2000 Compliance. Borrower and each of its
Subsidiaries has (a) undertaken a detailed inventory, review and assessment of
all areas within its business and operations that could be adversely affected by
the failure of Borrower or such Subsidiary, as the case may be, to be Year
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2000 Compliant on or before January 1, 2000, (b) developed a detailed plan and
timeline for becoming Year 2000 Compliant on or before January 1, 2000 and (c)
to date, implemented such plan in accordance with such timetable in all material
respects. Borrower reasonably anticipates that it and each of its Subsidiaries
will be Year 2000 Compliant on or before January 1, 2000, except to the extent
such noncompliance could not reasonably be expected to have a Material Adverse
Effect. Neither the Borrower nor any Subsidiary of the Borrower is aware that
any of its key suppliers, vendors or customers will not be Year 2000 Compliant
on or before January 1, 2000, except to the extent such noncompliance could not
reasonably be expected to have a material adverse effect on the Properties,
assets, liabilities, business, operations, prospects, income or condition
(financial or otherwise) of such Person. For purposes of this Section 6.16, "key
suppliers, vendors and customers" refers to those suppliers, vendors and
customers of Borrower or of any such Subsidiary, as the case may be, whose
business failure could reasonably be expected to have a material adverse effect
on the Borrower, its Subsidiaries or their Properties, assets, liabilities,
business, operations, prospects, income or condition (financial or otherwise).
6.17 Representations and Warranties of Xxxxxx Xxxxxxx. Xxxxxx
Xxxxxxx represents and warrants to the Lenders that:
(a) Corporate Existence and Standing. Xxxxxx Xxxxxxx
is a limited liability company duly incorporated and validly existing under the
laws of England and Wales and has all requisite authority to conduct its
business as it is now being conducted except where the failure to have such
requisite authority would not have a material adverse effect on Xxxxxx Xxxxxxx.
(b) Authorization and Validity. Xxxxxx Xxxxxxx has
the corporate power and authority and legal right to execute and deliver the
Transaction Documents to which it is a party and to perform its obligations
thereunder. The execution and delivery by Xxxxxx Xxxxxxx of the Transaction
Documents to which it is a party and the performance by it of its obligations
thereunder have been duly authorized by proper corporate proceedings, and such
Transaction Documents constitute legal, valid and binding obligations of Xxxxxx
Xxxxxxx enforceable against Xxxxxx Xxxxxxx in accordance with their respective
terms, except as enforceability may be limited by bankruptcy, insolvency or
similar laws affecting the enforcement of creditors' rights generally and
general equitable principles.
(c) No Conflict; Government Consent. Neither the
execution and delivery by Xxxxxx Xxxxxxx of the Transaction Documents to which
it is a party, nor the consummation by it of the transactions therein
contemplated to be consummated by it, nor compliance by Xxxxxx Xxxxxxx with the
provisions thereof will violate any law, rule, regulation, order, writ,
judgment, injunction, decree or award binding on Xxxxxx Xxxxxxx or any of its
Subsidiaries or Xxxxxx Xxxxxxx' or any of its Subsidiaries' memoranda or
articles of association or the provisions of any indenture, instrument or
agreement to which Xxxxxx Xxxxxxx or any of its Subsidiaries is a party or is
subject, or by which it, or its property, is bound, or conflict with or
constitute a default thereunder, or result in the creation or imposition of any
lien in, of or on the property of Xxxxxx Xxxxxxx or any of its Subsidiaries
pursuant to the terms of any such indenture, instrument or agreement in any such
case which violation, conflict, default, creation or imposition could reasonably
be expected to have a material adverse effect on Xxxxxx Xxxxxxx. Except as
referred to in Section 6.17(d) below, no order, consent, approval, license,
authorization, or validation of, or filing, recording or registration with, or
exemption by, any governmental agency is required to authorize, or is required
in connection with the execution, delivery and performance of, or the legality,
validity, binding effect or enforceability of, any of the Transaction Documents.
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(d) Filing. To ensure the enforceability or
admissibility in evidence of this Agreement and the Notes of Xxxxxx Xxxxxxx in
England and Wales, it is not necessary that this Agreement or the Notes of
Xxxxxx Xxxxxxx or any other document be filed or recorded with any court or
other authority in England and Wales (other than the filing of any Pledge
Agreement or Subsidiary Pledge Agreement relating to Xxxxxx Xxxxxxx or any other
English Subsidiary with the Registrar of Companies for England and Wales
pursuant to Section 395 of the Companies Act 1985) or that any stamp or similar
tax be paid to or in respect of this Agreement or the Notes of Xxxxxx Xxxxxxx.
The qualification by any Lender or the Administrative Agent for admission to do
business under the laws of England and Wales does not constitute a condition to,
and the failure to so qualify does not affect, the exercise by any Lender or the
Administrative Agent of any right, privilege, or remedy afforded to any Lender
or the Administrative Agent in connection with the Transaction Documents to
which Xxxxxx Xxxxxxx is a party or the enforcement of any such right, privilege,
or remedy against Xxxxxx Xxxxxxx. The performance by any Lender or the
Administrative Agent of any action required or permitted under the Transaction
Documents will not (i) violate any law or regulation of England and Wales or any
political subdivision thereof, (ii) result in any tax or other monetary
liability to such party pursuant to the laws of England and Wales or political
subdivision or taxing authority thereof (provided that, should any such action
result in any such tax or other monetary liability to the Lender or the
Administrative Agent, the Borrower hereby agrees to indemnify such Lender or the
Administrative Agent, as the case may be, against (x) any such tax or other
monetary liability and (y) any increase in any tax or other monetary liability
which results from such action by such Lender or the Administrative Agent and,
to the extent the Borrower makes such indemnification, the incurrence of such
liability by the Administrative Agent or any Lender will not constitute a
Default) or (iii) violate any rule or regulation of any federation or
organization or similar entity of which England and Wales are members.
(e) No Immunity. Neither Xxxxxx Xxxxxxx nor any of
its assets is entitled to immunity from suit, execution, attachment or other
legal process. Xxxxxx Xxxxxxx' execution and delivery of the Transaction
Documents to which it is a party constitute, and the exercise of its rights and
performance of and compliance with its obligations under such Transaction
Documents will constitute, private and commercial acts done and performed for
private and commercial purposes.
6.18 Representations and Warranties of Tristar. Tristar
represents and warrants to the Lenders that:
(a) Corporate Existence and Standing. Tristar is a
limited liability company duly incorporated and validly existing under the laws
of Australia and has all requisite authority to conduct its business as it is
now being conducted except where the failure to have such requisite authority
would not have a material adverse effect on Tristar.
(b) Authorization and Validity. Tristar has the
corporate power and authority and legal right to execute and deliver the
Transaction Documents to which it is a party and to perform its obligations
thereunder. The execution and delivery by Tristar of the Transaction Documents
to which it is a party and the performance by it of its obligations thereunder
have been duly authorized by proper corporate proceedings, and such Transaction
Documents constitute legal, valid and binding obligations of Tristar enforceable
against Tristar in accordance with their respective terms, except as
enforceability may be limited by bankruptcy, insolvency or similar laws
affecting the enforcement of creditors' rights generally and general equitable
principles.
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(c) No Conflict; Government Consent. Neither the
execution and delivery by Tristar of the Transaction Documents to which it is a
party, nor the consummation by it of the transactions therein contemplated to be
consummated by it, nor compliance by Tristar with the provisions thereof will
violate any law, rule, regulation, order, writ, judgment, injunction, decree or
award binding on Tristar or any of its Subsidiaries or Tristar's or any of its
Subsidiaries' memoranda or articles of association or the provisions of any
indenture, instrument or agreement to which Tristar or any of its Subsidiaries
is a party or is subject, or by which it, or its property, is bound, or conflict
with or constitute a default thereunder, or result in the creation or imposition
of any lien in, of or on the property of Tristar or any of its Subsidiaries
pursuant to the terms of any such indenture, instrument or agreement in any such
case which violation, conflict, default, creation or imposition could reasonably
be expected to have a material adverse effect on Tristar. No order, consent,
approval, license, authorization, or validation of, or filing, recording or
registration with, or exemption by, any governmental agency is required to
authorize, or is required in connection with the execution, delivery and
performance of, or the legality, validity, binding effect or enforceability of,
any of the Transaction Documents.
(d) Filing. To ensure the enforceability or
admissibility in evidence of this Agreement and the Notes of Tristar in
Australia, it is not necessary that this Agreement or the Notes of Tristar or
any other document be filed or recorded with any court or other authority in
Australia or that any stamp or similar tax be paid to or in respect of this
Agreement or the Notes of Tristar. The qualification by any Lender or the
Administrative Agent for admission to do business under the laws of Australia
does not constitute a condition to, and the failure to so qualify does not
affect, the exercise by any Lender or the Administrative Agent of any right,
privilege, or remedy afforded to any Lender or the Administrative Agent in
connection with the Transaction Documents to which Tristar is a party or the
enforcement of any such right, privilege, or remedy against Tristar. The
performance by any Lender or the Administrative Agent of any action required or
permitted under the Transaction Documents will not (i) violate any law or
regulation of Australia or any political subdivision thereof, (ii) result in any
tax or other monetary liability to such party pursuant to the laws of Australia
or political subdivision or taxing authority thereof (provided that, should any
such action result in any such tax or other monetary liability to the Lender or
the Administrative Agent, the Borrower hereby agrees to indemnify such Lender or
the Administrative Agent, as the case may be, against (x) any such tax or other
monetary liability and (y) any increase in any tax or other monetary liability
which results from such action by such Lender or the Administrative Agent and,
to the extent the Borrower makes such indemnification, the incurrence of such
liability by the Administrative Agent or any Lender will not constitute a
Default) or (iii) violate any rule or regulation of any federation or
organization or similar entity of which Australia is a member.
(e) No Immunity. Neither Tristar, nor any of its
assets is entitled to immunity from suit, execution, attachment or other legal
process. Tristar's execution and delivery of the Transaction Documents to which
it is a party, constitute, and the exercise of its rights and performance of and
compliance with its obligations under such Transaction Documents will
constitute, private and commercial acts done and performed for private and
commercial purposes.
SECTION 7. COVENANTS.
7.1 Affirmative Covenants of the Borrower. The Borrower
covenants and agrees that, so long as Lenders have any obligation to make any
Loan hereunder or any of the Borrower's Obligations remain unpaid or any Letter
of Credit remains outstanding:
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(a) Information. The Borrower will deliver to
Administrative Agent and each of the Lenders:
(i) As soon as available and in any event within one
hundred twenty (120) days after the end of each fiscal year of
Borrower, the consolidated and consolidating balance sheets of Borrower
and its Consolidated Subsidiaries as of the end of such fiscal year and
the related consolidated and consolidating statements of income,
retained earnings and cash flows for such fiscal year, setting forth in
each case, in comparative form, the figures for the previous fiscal
year, all such financial statements to be prepared in accordance with
generally accepted accounting principles consistently applied and
audited by independent certified public accountants selected by the
Borrower and acceptable to the Agents, together with (1) the
unqualified opinion of such accountants (except with respect to
consistency qualifications arising from new accounting principles), and
(2) a letter from such accountants authorizing the Agents and Lenders
to receive and rely on such audited financial statements of Borrower as
if in privity of contract with such accountants or such other agreement
of normal acceptance in the accounting profession as may be used in the
future to permit lenders to rely on financial statements of a borrower
in making credit decisions;
(ii) As soon as available and in any event within
forty-five (45) days after the end of each fiscal quarter, consolidated
and consolidating balance sheets of Borrower and its Consolidated
Subsidiaries as of the end of such quarter and the related consolidated
and consolidating statements of income for such quarter and for the
portion of the Borrower's fiscal year ended at the end of such quarter,
setting forth in each case in comparative form, the figures for the
corresponding quarter and the corresponding portion of the Borrower's
previous fiscal year and the figures for such quarter and such portion
of Borrower's current fiscal year from Borrower's budget for such year,
all certified (subject to normal year-end adjustments) as to fairness
of presentation, generally accepted accounting principles and
consistency by the principal financial officer of Borrower;
(iii) Simultaneously with the delivery of each set of
quarter end and fiscal year end financial statements referred to in
clauses (i) and (ii) above, a certificate of the principal financial
officer of Borrower in the form attached hereto as Exhibit C and
incorporated herein by reference;
(iv) Promptly upon receipt thereof, any reports
submitted to the Borrower or any Consolidated Subsidiary of the
Borrower (other than reports previously delivered pursuant to Sections
7.1(a)(i) and (ii) above) by independent accountants in connection with
any annual, interim or special audit made by them of the books of the
Borrower or any Consolidated Subsidiary of the Borrower;
(v) Promptly upon any filing thereof, and in any
event within ten (10) days after the filing thereof, copies of all
registration statements (other than the exhibits thereto and any
registration statements on form S-8 or its equivalent) and annual,
quarterly or monthly reports which Borrower shall file with the
Securities and Exchange Commission;
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(vi) Promptly upon the mailing thereof to the
shareholders of Borrower generally, and in any event within ten (10)
days after such mailing, copies of all financial statements, reports,
proxy statements and other material and information so mailed;
(vii) Within ninety (90) days of the beginning of
each fiscal year of the Borrower, the Borrower's annual budget and
quarterly projections for such fiscal year;
(viii) Not less than ten (10) Business Days, if
Lenders' consent is required, or three (3) Business Days if Lenders'
consent is not required, under clause (c) of the definition of
Acceptable Acquisition in Section 2 of this Agreement, prior to the
closing of any Acceptable Acquisition, the following documents and
information with respect to such Acceptable Acquisition: (A) a copy of
the letter of intent signed by all parties or if no letter of intent
has been signed, a detailed summary of the terms and conditions upon
which the Acquisition is being negotiated, including Borrower's
rationale for pursuing the Acquisition, (B) historical financial
statements of the target company and any other documents reasonably
requested by any Lender received by Borrower in performing its due
diligence; (C) a copy of the financial models run or projections made
of the Borrower that include the target company; and (D) such other
information and documents reasonably requested by any Lender with
respect to such Acceptable Acquisition.
(ix) Within forty-five (45) days after the end of
each fiscal quarter, a schedule of all Deferred Payment Obligations of
Borrower and its Consolidated Subsidiaries which remain outstanding as
of the end of such quarter, certified by the principal financial
officer of Borrower; and
(x) With reasonable promptness, such further
information regarding the business, affairs and/or financial condition
of Borrower or any Subsidiary of Borrower as any of the Agents or any
of the Lenders may from time to time reasonably request.
Each of the Agents and each of the Lenders are hereby
authorized to deliver a copy of any financial statement or other information
made available by the Borrower to any proposed assignee or participant in any
portion of any Lender's Loans and Revolving Credit Commitment hereunder and to
any regulatory authority having jurisdiction over any such Agent or any such
Lender, pursuant to any request therefor.
(b) Payment of Indebtedness. The Borrower and each
Subsidiary of the Borrower will (i) pay any and all Indebtedness payable or
Guaranteed by the Borrower or such Subsidiary of the Borrower, as the case may
be, and any interest or premium thereon, when due (whether by scheduled
maturity, required prepayment, acceleration, demand or otherwise) in accordance
with the agreement, document or instrument relating to such Indebtedness or
Guarantee and (ii) faithfully perform, observe and discharge all covenants,
conditions and obligations which are imposed upon the Borrower or such
Subsidiary of the Borrower, as the case may be, by any and all agreements,
documents and instruments evidencing, securing or otherwise relating to such
Indebtedness or Guarantee.
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(c) Consultations and Inspections. The Borrower will
permit, and will cause each Subsidiary of the Borrower to permit, Agents and
Lenders (and any Person appointed by any of the Agents or any of the Lenders to
whom the Borrower does not reasonably object) to discuss the affairs, finances
and accounts of the Borrower and each Subsidiary of the Borrower with the
officers of the Borrower and each Subsidiary of the Borrower, all at such
reasonable times and as often as any of the Agents or any of the Lenders may
reasonably request. The Borrower will also permit, and will cause each
Subsidiary of the Borrower to permit, inspection of its Properties, books and
records and the Collateral by Agents and Lenders, upon reasonable advance
notice, during normal business hours or at other reasonable times. Prior to the
occurrence of an Event of Default, Borrower shall pay all reasonable costs and
expenses incurred by Agents and the Lenders for one such inspection in each
fiscal year (not to exceed $15,000.00 in any fiscal year for inspections
conducted prior to an Event of Default), provided, that after the occurrence of
an Event of Default, Borrower shall pay all reasonable costs and expenses
incurred by any such Agent or any such Lender in connection with any such
inspections.
(d) Payment of Taxes; Corporate Existence;
Maintenance of Properties; Maintenance of Collateral; Insurance. The Borrower
and each Subsidiary of the Borrower will:
(i) Duly file all federal, state and local income tax
returns and all other tax returns and reports of the Borrower and each
Subsidiary of the Borrower which are required to be filed and duly pay
and discharge promptly all taxes, assessments and other governmental
charges imposed upon it or any of its income, Property or assets;
provided, however, that neither the Borrower nor any Subsidiary of the
Borrower shall be required to pay any such tax, assessment or other
governmental charge the payment of which is being contested in good
faith and by appropriate proceedings diligently conducted and for which
adequate reserves in form and amount satisfactory to Administrative
Agent in its reasonable discretion have been provided, except that the
Borrower and each Subsidiary of the Borrower shall pay or cause to be
paid all such taxes, assessments and governmental charges forthwith
upon the commencement of proceedings to foreclose any Lien which is
attached as security therefor, unless such foreclosure is stayed by the
filing of an appropriate bond in a manner satisfactory to
Administrative Agent;
(ii) Do all things necessary to preserve and keep in
full force and effect its corporate existence, rights and franchise and
to be duly qualified to do business in all jurisdictions where the
nature of its business requires such qualification;
(iii) Maintain and keep its Properties as a whole in
good repair, working order and condition; provided, however, that
nothing in this subsection (iii) shall prevent any abandonment of any
Property which is not disadvantageous in any material respect to
Lenders and which, in the good faith opinion of the management of the
Borrower, is in the best interests of the Borrower or such Subsidiary
of the Borrower, as the case may be;
(iv) Insure with financially sound and reputable
insurers acceptable to Lenders, all Property of the Borrower and each
Subsidiary of the Borrower of the character usually insured by
corporations engaged in the same or similar businesses
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similarly situated, against loss or damage of the kind customarily
insured against by such corporations or partnerships, unless higher
limits or coverage are reasonably required in writing by Administrative
Agent, and carry adequate liability insurance and other insurance of a
kind and in an amount generally carried by corporations engaged in the
same or similar businesses similarly situated, unless higher limits or
coverage are reasonably required in writing by Administrative Agent,
and in each case naming Administrative Agent as loss payee, as
mortgagee or as an additional insured, as appropriate, in such policies
for the benefit of each of the Lenders. All such insurance may be
subject to reasonable deductible amounts. Promptly upon any Lender's
request therefor, the Borrower shall provide such Lender with evidence
that the Borrower maintains, and that each Subsidiary of the Borrower
maintains, the insurance required under this Section 7.1(d)(iv), and
evidence of the payment of all premiums therefor.
(e) Accountants. The Borrower shall give Agents and
each of the Lenders prompt notice of any change of the Borrower's independent
certified public accountants and a statement of the reasons for such change. The
Borrower shall at all times utilize independent certified public accountants
reasonably acceptable to Agents and Lenders.
(f) ERISA Compliance. If the Borrower or any Domestic
Subsidiary of the Borrower shall have any Pension Plan, the Borrower and such
Domestic Subsidiary or Domestic Subsidiaries of the Borrower shall comply with
all requirements of ERISA relating to such plan. Without limiting the generality
of the foregoing, neither the Borrower nor any Domestic Subsidiary of the
Borrower shall:
(i) permit any Pension Plan maintained by it to
engage in any nonexempt "prohibited transaction," as such term is
defined in Section 4975 of the Code;
(ii) permit any Pension Plan maintained by it to
incur any "accumulated funding deficiency", as such term is defined in
Section 302 of ERISA, 29 U.S.C. Section 1082, whether or not waived;
(iii) terminate any such Pension Plan in a manner
which could result in the imposition of a Lien on any Property of the
Borrower or any Subsidiary of the Borrower pursuant to Section 4068 of
ERISA, 29 U.S.C. Section 1368; or
(iv) take any action which would constitute a
complete or partial withdrawal from a Multiemployer Plan within the
meaning of Sections 4203 and 4205 of Title IV of ERISA.
Notwithstanding any provision contained in this Section 7.1(f)
to the contrary, an act by the Borrower or any Domestic Subsidiary of the
Borrower shall not be deemed to constitute a violation of subparagraphs (i)
through (iv) hereof unless Administrative Agent determines in good faith that
said action, individually or cumulatively with other acts of the Borrower and
the Domestic Subsidiaries of the Borrower, does have or is likely to cause a
significant adverse financial effect upon the Borrower or any such Domestic
Subsidiary of the Borrower.
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Borrower shall have the affirmative obligation hereunder to
report to Administrative Agent any of those acts identified in subparagraphs (i)
through (iv) hereof, regardless of whether said act does or is likely to cause a
significant adverse financial effect upon the Borrower or any Domestic
Subsidiary of the Borrower, and failure by the Borrower to report such act
promptly upon the Borrower's becoming aware of the existence thereof shall
constitute an Event of Default hereunder.
(g) Maintenance of Books and Records. The Borrower
and each Subsidiary of the Borrower will maintain its books and records in
accordance with generally accepted accounting principles consistently applied
and in which true, correct and complete entries will be made of all of its
dealings and transactions.
(h) Further Assurances. The Borrower will execute,
and will cause each Subsidiary to execute, any and all further agreements,
documents and instruments, and take any and all further actions which may be
required under applicable law, or which any Agent or any of the Lenders may from
time to time reasonably request, in order to effectuate the transactions
contemplated by this Agreement, the Notes, the Pledge Agreements, the Letter of
Credit Applications and the other Transaction Documents.
(i) Financial Covenants. The Borrower will:
(i) Fixed Charges Coverage Ratio. Maintain on a
consolidated basis as of each fiscal quarter-end during the Term hereof
a ratio of Consolidated Proforma Operating Cash Flow to Consolidated
Fixed Charges determined for the 12-month period ending as of each such
fiscal quarter-end of not less than (a) 1.25 to 1.0 for each fiscal
quarter ending on or before June 30, 2000, and (b) 1.50 to 1.0 for each
fiscal quarter-end thereafter during the Term hereof.
(ii) Consolidated Adjusted Total Funded Debt to
Consolidated Proforma EBITDA Cash Flow. Maintain on a consolidated
basis at each fiscal quarter-end during the Term hereof, a ratio of
Consolidated Adjusted Total Funded Debt to Consolidated Proforma EBITDA
Cash Flow (determined for the twelve-month period ending on the date of
any such calculation) of not more than: (a) 4.00 to 1.0 for each
quarter-end occurring on or before June 30, 2000, and (b) 3.50 to 1.0
for quarters ending after June 30, 2000 through the remainder of the
Term hereof.
(iii) Consolidated Shareholders' Equity. Maintain on
a consolidated basis determined as of each fiscal quarter-end during
the Term hereof, Consolidated Shareholders' Equity of at least the sum
of (x) $185,000,000.00, plus (y) fifty percent (50%) of the after tax
net income for each fiscal quarter of Borrower in which net income is
earned (but zero percent (0%) of any after tax net loss for any fiscal
quarter of Borrower in which a net loss is incurred) as shown on
Borrower's financial statements delivered pursuant to Section 7.1(a)(i)
and (ii), commencing with the addition of any net income for the fiscal
quarter ending March 31, 1998, with such required increases to be
cumulative for each fiscal quarter thereafter during the Term hereof,
plus (z) one hundred percent (100%) of the net proceeds received by
Borrower or any of its consolidated Subsidiaries from capital stock
issued by Borrower or such Subsidiary subsequent to December 31, 1997,
including without limitation, the value received in exchange for
capital stock in an Acceptable Acquisition accounted for using the
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purchase method of accounting and the book value of equity received in
exchange for capital stock in an Acceptable Acquisition accounted for
using the pooling of interest method of accounting.
(iv) Deliver a certificate of the principal financial
officer of the Borrower containing the financial ratio calculations
required in clauses (i), (ii) and (iii) above simultaneously with the
financial statements referred to in Sections 7.1(a)(i) and (ii).
(j) Compliance with Law. The Borrower will, and will
cause each Subsidiary of the Borrower to, comply with any and all laws,
ordinances and governmental and regulatory rules and regulations to which it is
subject and obtain any and all licenses, permits, franchises and other
governmental and regulatory authorizations necessary to the ownership of its
Properties or to the conduct of its business, which violation or failure to
obtain might materially adversely affect the condition or operation, financial
or otherwise, of the Borrower or any Subsidiary of the Borrower.
(k) Notices. The Borrower will notify Administrative
Agent and the Lenders in writing of any of the following immediately upon
learning of the occurrence thereof, describing the same and, if applicable, the
steps being taken by the Person(s) affected with respect thereto:
(i) Default. The occurrence of any Default or Event
of Default under this Agreement or any default or event of default by
the Borrower, any other Obligor or any Subsidiary of the Borrower under
any note, indenture, loan agreement, mortgage, deed of trust, security
agreement, lease or other similar agreement, document or instrument to
which the Borrower, any other Obligor or any Subsidiary of the
Borrower, as the case may be, is a party or by which it is bound or to
which it is subject;
(ii) Litigation. The institution of any litigation,
arbitration proceeding or governmental or regulatory proceeding
affecting the Borrower, any other Obligor, any Subsidiary of the
Borrower, any Collateral or any Third Party Collateral, whether or not
considered to be covered by insurance, provided that if such action is
an action for money damages, that the damages sought are in excess of
$1,000,000.00 or if more than one such action has been instituted, in
excess of $5,000,000.00 in the aggregate;
(iii) Judgment. The entry of any judgment or decree
against the Borrower, any other Obligor or any Subsidiary of the
Borrower in excess of $1,000,000.00 or if more than one such judgment
or decree has been entered, in excess of $5,000,000.00 in the
aggregate;
(iv) Pension Plans. The occurrence of a Reportable
Event with respect to any Pension Plan; the filing of a notice of
intent to terminate a Pension Plan by the Borrower, any ERISA Affiliate
or any Subsidiary of the Borrower; the institution of proceedings to
terminate a Pension Plan by the PBGC or any other Person; the
withdrawal in a "complete withdrawal" or a "partial withdrawal" as
defined in Sections 4203 and 4205, respectively, of ERISA by the
Borrower, any ERISA Affiliate or any Subsidiary of the Borrower from
any Multiemployer Plan; or the incurrence of any material increase in
the contingent liability of the Borrower or any Subsidiary of the
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Borrower with respect to any "employee welfare benefit plan" as defined
in Section 3(1) of ERISA which covers retired employees and their
beneficiaries;
(v) Change of Name. Any change in the name of the
Borrower, any other Obligor or any Subsidiary of the Borrower;
(vi) Environmental Matters. Receipt of any notice
that the operations of the Borrower, any other Obligor or any
Subsidiary of the Borrower are not in full compliance with any of the
requirements of any applicable Environmental Law or Occupational Safety
and Health Law; receipt of notice that the Borrower, any other Obligor
or any Subsidiary of the Borrower is subject to any federal, state or
local investigation evaluating whether any remedial action is needed to
respond to the release of any Hazardous Materials or any other
hazardous or toxic waste, substance or constituent or other substance
into the environment; or receipt of notice that any of the Properties
or assets of the Borrower, any other Obligor or any Subsidiary of the
Borrower are subject to an Environmental Lien. For purposes of this
Section 7.1(k)(vi), "Environmental Lien" shall mean a Lien in favor of
any governmental or regulatory agency, entity, authority or official
for (1) any liability under Environmental Laws or (2) damages arising
from or costs incurred by any such governmental or regulatory agency,
entity, authority or official in response to a release of any Hazardous
Materials or any other hazardous or toxic waste, substance or
constituent or other substance into the environment;
(vii) Material Adverse Change. The occurrence of any
material adverse change in the business, operations or condition,
financial or otherwise, of the Borrower, any other Obligor or any
Subsidiary of the Borrower;
(viii) Change in Management or Line(s) of Business.
Any material change in the directors and executive officers of the
Borrower or any Subsidiary of the Borrower as listed in Schedule
7.1(k)(viii) attached hereto, or any change in the Borrower's or any
Subsidiary of the Borrower's line(s) of business; and
(ix) Other Notices. Any notices required to be
provided pursuant to other provisions of this Agreement and notice of
the occurrence of such other events as Administrative Agent may from
time to time reasonably specify.
(l) Year 2000 Compliance. Borrower will, and it will
cause each of its Subsidiaries to, take any and all actions necessary to assure
that Borrower and each of its Subsidiaries will be Year 2000 Compliant as soon
as reasonably practical, except to the extent such noncompliance could not
reasonably be expected to have a material adverse effect on Borrower, its
Subsidiaries or their Properties, assets, liabilities, business, operations,
prospects, income or condition (financial or otherwise). Borrower and each of
its Subsidiaries will be Year 2000 Compliant by January 1, 2000, except to the
extent such noncompliance could not reasonably be expected to have a material
adverse effect on Borrower, its Subsidiaries or their Properties, assets,
liabilities, business, operations, prospects, income or condition (financial or
otherwise). At the request of Administrative Agent, Borrower will from time to
time provide Agents and the Lenders with written reports in form and detail
reasonably satisfactory to Agents and the Lenders on the status of the efforts
of Borrower and its Subsidiaries to be Year 2000 Compliant.
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7.2 Negative Covenants of the Borrower. The Borrower covenants
and agrees that, so long as Lenders have any obligation to make any Loan
hereunder or any of the Borrower's Obligations remain unpaid or any Letter of
Credit remains outstanding, unless the prior written consent of the Required
Lenders is obtained:
(a) Limitation on Indebtedness. Neither the Borrower
nor any Subsidiary of the Borrower will incur or be obligated on any
Indebtedness, either directly or indirectly, by way of Guarantee, suretyship or
otherwise, other than:
(i) Indebtedness evidenced by the Notes;
(ii) Unsecured trade accounts payable and normal
accruals incurred in the ordinary course of business which are not yet
due and payable;
(iii) Indebtedness incurred in the ordinary course of
business in connection with the acquisition of Property by Borrower
(excluding Indebtedness assumed on any capital assets acquired pursuant
to an Acceptable Acquisition) which shall not exceed at any one time
Ten Million Dollars ($10,000,000.00), provided that any such
Indebtedness shall not exceed the value of the Property so acquired;
(iv) The following categories of Indebtedness, all of
which, in the aggregate, together with the payments permitted by
Section 7.2(l) (Operating Leases) shall not exceed at any one time
Twenty-Five Million Dollars ($25,000,000.00):
(A) Indebtedness incurred in the ordinary
course of business in connection with the sale by Borrower of
unsecured corporate notes, bonds or other unsecured commercial
paper in any public or private offering; and
(B) Other unsecured Indebtedness assumed by
Borrower or a Subsidiary in connection with an Acceptable
Acquisition or any other unsecured Indebtedness incurred in
the ordinary course of business.
(v) Subordinated Debt (y) incurred in connection with
one or more Acceptable Acquisitions not to exceed in the aggregate
$20,000,000.00 and (z) incurred other than in connection with an
Acceptable Acquisition not to exceed in the aggregate $150,000,000.00
less any Subordinated Debt incurred in connection with an Acceptable
Acquisition, provided that all such Subordinated Debt is unsecured, and
the holder of such Subordinated Debt has executed a Subordination and
Standby Agreement in favor of Agents and the Lenders substantially in
the form of Exhibit H attached hereto, which Subordination and Standby
Agreement shall, among other things: (A) (1) if such Subordinated Debt
was incurred in connection with an Acceptable
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Acquisition, notwithstanding any terms of the subordinated debt to the
contrary, allow for permitted payments of accrued interest and
scheduled principal (but no prepayments or accelerated payments) on
such Subordinated Debt prior to notice from Administrative Agent of the
occurrence of an Event of Default on a schedule no faster than a one
year, straight line amortization of principal of the Subordinated Debt
or (2) if such Subordinated Debt was incurred other than in connection
with an Acceptable Acquisition, notwithstanding any terms of the
subordinated debt to the contrary, allow for permitted payments of
accrued interest only (and no principal payments, prepayments or
accelerated payments) on such Subordinated Debt prior to notice from
Administrative Agent of the occurrence of an Event of Default, and (B)
after notice from Administrative Agent of the occurrence of an Event of
Default, terminate all payments of principal and interest on the
Subordinated Debt until Borrower's Obligations are paid in full and
shall otherwise prohibit the holder of such Subordinated Debt from
taking any action to enforce the Subordinated Debt obligations against
Borrower or any other Obligor for a one year period following such
notice.
(b) Limitations on Liens. The Borrower will not
create, incur, assume or suffer to exist, and will not cause or permit any
Subsidiary of the Borrower to create, incur, assume or suffer to exist, any Lien
on any of its Property, assets or revenues other than:
(i) Liens presently in existence which are described
on Schedule 6.11 attached hereto;
(ii) Pledges or deposits in connection with or to
secure workmen's compensation, unemployment insurance, pension or other
employee benefits;
(iii) Purchase money Liens incurred to secure
Indebtedness permitted under Section 7.2(a)(iii), provided that such
Lien shall attach only to the Property acquired in connection with such
Indebtedness;
(iv) Any Lien renewing, extending or refunding any
Lien permitted hereunder, provided that the principal amount of
Indebtedness secured by such Lien is not increased and such Lien is not
extended to cover any other Property or assets of the Borrower or any
Subsidiary of the Borrower;
(v) Subject to Section 7.1(d)(i), Liens for taxes,
assessments or governmental charges or levies on the income, Property
or assets of the Borrower or any Subsidiary of the Borrower if the same
are not yet due and payable or are being contested in good faith and by
appropriate proceedings diligently conducted and for which adequate
reserves in form and amount satisfactory to Agents and the Lenders are
provided; and
(vi) Statutory liens for amounts not yet due and
payable or which are being contested in good faith and by appropriate
proceedings diligently conducted and for which adequate reserves in
form and amount satisfactory to Agents and the Lenders are provided.
(c) Sale of Property. Neither the Borrower nor any
Subsidiary of the Borrower will sell, lease, transfer or otherwise dispose of
any Property or assets of the Borrower or such Subsidiary of the Borrower, as
the case may be, except in the ordinary course of business or to a wholly-owned
Subsidiary of Borrower which has executed a Pledge Agreement.
(d) Mergers and Consolidations. Neither the Borrower
nor any Subsidiary of the Borrower will merge or consolidate with any other
Person or sell, transfer or convey all or a
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substantial part of its Property or assets to any Person, except for
Acquisitions permitted under Section 7.2(e) or mergers or consolidations with
Borrower or another wholly-owned Subsidiary of Borrower which has executed a
Pledge Agreement, provided that the Borrower (in the case of any merger or
consolidation with the Borrower) or such wholly-owned Subsidiary of Borrower
which has executed a Pledge Agreement (in any other such case) shall be the
surviving entity of any such merger or consolidation.
(e) Acquisitions; Subsidiaries. The Borrower will
not, and will not cause or permit any Subsidiary to, make or suffer to exist any
Acquisition of any Person, except Acceptable Acquisitions; provided that if the
target of any such Acceptable Acquisition is a Person organized under the laws
of the United States or under the laws of any State or Territory in the United
States or (if an asset acquisition) the principal assets of such target business
are located within the United States or any of its Territories, then any new
Subsidiary created or acquired in such Acceptable Acquisition shall remain or be
created as a Domestic Subsidiary. If at any time after the date hereof Borrower
shall create any new Subsidiary, whether in connection with an Acceptable
Acquisition or otherwise, Borrower shall give Lenders fifteen (15) Business
Days' prior written notice thereof, and Borrower shall (x) if such Subsidiary is
a Domestic Subsidiary, cause such Subsidiary to execute and deliver to
Administrative Agent for the benefit of each of the Lenders a Subsidiary
Guaranty of all of Borrower's Obligations, (y) if such Subsidiary is a Domestic
Subsidiary, cause such Subsidiary to pledge all of the issued and outstanding
stock or other equity interests owned by such Subsidiary in any Domestic
Subsidiary and 65% of the issued and outstanding stock or other equity interests
owned by such Subsidiary in any Foreign Subsidiary to Administrative Agent for
the benefit of each of the Lenders pursuant to a Subsidiary Pledge Agreement,
and deliver to Administrative Agent collateral schedules, stock powers and other
pledge documents in form and substance satisfactory to Administrative Agent and
the Required Lenders, and (z) pledge all, if such Subsidiary is a Domestic
Subsidiary, or 65%, if such Subsidiary is a Foreign Subsidiary, of the issued
and outstanding stock or other equity interests of such Subsidiary to
Administrative Agent for the benefit of each of the Lenders pursuant to a Pledge
Agreement, and deliver to Administrative Agent collateral schedules, stock
powers and other pledge documents in form and substance satisfactory to
Administrative Agent and the Required Lenders. Borrower further agrees to
execute or cause any such Subsidiary to execute such amendments to this
Agreement and to the other Transaction Documents or such additional agreements
as may be required by Agents and the Lenders to satisfy such obligations.
(f) Fiscal Year. Neither Borrower nor any Subsidiary
of the Borrower will change its fiscal year.
(g) Stock Redemptions and Distributions. The Borrower
will not make or declare or incur any liability to make any Distribution in
respect of the capital stock of the Borrower, and Borrower will not permit any
Subsidiary to make, declare or incur any liability to make any Distribution in
respect of the capital stock, partnership interests, membership interests or
other ownership interests of such Subsidiary, except to the Borrower.
(h) Transactions with Related Parties. Except as
disclosed in Schedule 7.2(h) attached hereto, neither Borrower nor any
Subsidiary of the Borrower will, directly or indirectly, engage in any material
transaction, in the ordinary course of business or otherwise, with any Related
Party unless such transaction is upon fair market terms, is not disadvantageous
in any material respect to the Lenders and has been approved by a
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majority of the disinterested directors of the Borrower or such Subsidiary of
the Borrower, as the case may be (or, if none of such directors are
disinterested, by a majority of the directors), as being in the best interests
of the Borrower or such Subsidiary of the Borrower, as the case may be. In
addition, neither the Borrower nor any Subsidiary of the Borrower shall (i)
transfer any Property or assets to any Related Party for other than its fair
market value or (ii) purchase or sign any agreement to purchase any stock or
other securities of any Related Party (whether debt, equity or otherwise),
underwrite or Guarantee the same, or otherwise become obligated with respect
thereto.
(i) Advancing or Guaranteeing Credit. Neither
Borrower nor any Subsidiary of the Borrower will become or be a guarantor or
surety of, or otherwise become or be responsible in any manner with respect to,
any undertaking of another except for the Subsidiary Guaranties of Borrower's
Obligations.
(j) Loans and Investments. Neither Borrower nor any
Subsidiary of the Borrower will make any loans or advances or extensions of
credit to purchase any stocks, bonds, notes, debentures or other securities of,
make any expenditures on behalf of, or in any manner assume liability (direct,
contingent or otherwise) for the Indebtedness of any Person, except for
Permitted Investments, and except for loans to employees of Borrower and its
Subsidiaries not to exceed $1,000,000.00 in the aggregate to enable such
employees to make investments in Borrower's stock option plan; provided,
however, Loans to employees existing on the books of a newly acquired Subsidiary
as an Acceptable Acquisition, in order to grant key employees an equity interest
in such Subsidiary (i.e. when the employee loan is a non-cash item and is offset
on the balance sheet by a corresponding deferred compensation liability for the
same amount) shall be excluded from this limitation.
(k) Dissolution or Liquidation. Borrower will not
seek or permit the dissolution or liquidation of the Borrower in whole or in
part.
(l) Operating Leases. Neither Borrower nor any
Subsidiary of the Borrower will enter into or permit to remain in effect any
agreements to rent or lease (as lessee) any real or personal property (other
than Capitalized Leases) for initial terms (including options to renew or extend
any term, whether or not exercised) of more than one (1) year which in the
aggregate (for the Borrower and all Subsidiaries of the Borrower) provide for
payments, which at any time when added to all of the then existing indebtedness
of the categories described in Section 7.2(a)(iv) are in excess of
$25,000,000.00 during any consecutive twelve-month (12-month) period.
(m) Change in Nature of Business. Neither Borrower
nor any Subsidiary of the Borrower will make any material change in the nature
of its business.
(n) Pension Plans. Neither Borrower nor any Domestic
Subsidiary of Borrower shall (a) permit any condition to exist in connection
with any Pension Plan which might constitute grounds for the PBGC to institute
proceedings to have such Pension Plan terminated or a trustee appointed to
administer such Pension Plan or (b) engage in, or permit to exist or occur, any
other condition, event or transaction with respect to any Pension Plan which
could result in the incurrence by Borrower or any Domestic Subsidiary of the
Borrower of any material liability, fine or penalty. Neither Borrower nor any
Domestic Subsidiary of the Borrower shall become obligated to contribute to any
Pension Plan or Multiemployer Plan other than any such plan or plans in
existence on the date hereof.
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(o) Management Fees. Neither Borrower nor any
Subsidiary of Borrower will pay any management fees, consulting fees or similar
fees to any Related Parties without the prior written consent of the Required
Lenders, except that Borrower or its Subsidiaries may pay consulting fees or
other similar fees incurred in connection with Acceptable Acquisitions provided
no Default or Event of Default is then existing or would occur on a pro forma
basis as the result of Borrower's or any such Subsidiary's payment or agreement
to pay such amounts and further provided that such fees shall not exceed the
lesser of $250,000.00 in the aggregate for any single Acceptable Acquisition or
$750,000.00 in the aggregate for all Acceptable Acquisitions in any fiscal year.
7.3 Use of Proceeds.
(a) The Borrower agrees that the proceeds of the
Revolving Credit Loans, the Swing Loans and the Alternate Currency Loans
hereunder will be used solely to refinance Borrower's existing liabilities,
indebtedness and obligations under the Prior Credit Agreement, for the
Borrower's working capital and general corporate purposes and for financing
Acceptable Acquisitions; and
(b) None of such proceeds will be used in violation
of any applicable law or regulation or to purchase or carry "margin stock"
within the meanings of Regulation U of The Board of Governors of the Federal
Reserve System, as amended, or to extend credit to others for the purpose of
purchasing or carrying margin stock, or to refund or repay indebtedness
originally incurred for such purpose.
SECTION 8. EVENTS OF DEFAULT.
If any of the following (each of the following herein
sometimes called an "Event of Default") shall occur and be continuing:
8.1 Borrower shall fail to pay any of the Borrower's
Obligations, or Xxxxxx Xxxxxxx or Tristar shall fail to pay any of their
obligations under the Alternate Currency Addenda when the same shall become due
and payable, whether by reason of demand, acceleration, mandatory prepayment or
otherwise;
8.2 Any representation or warranty of the Borrower or any
Subsidiary made in this Agreement, or the Alternate Currency Addenda, in any
other Transaction Document or in any certificate, agreement, instrument or
statement furnished or made or delivered pursuant hereto or thereto or in
connection herewith or therewith, shall prove to have been untrue or incorrect
in any material respect when made or effected;
8.3 Borrower shall fail to perform or observe any term,
covenant or provision contained in Section 7.1(a), Section 7.1(c), Section
7.1(i), Section 7.2 or Section 7.3;
8.4 Borrower shall fail to perform or observe any term or
provision contained in Section 7.1(l) and such failure shall remain unremedied
for five (5) days after written notice thereof shall have been given to the
Borrower by any of the Agents or any of the Lenders;
8.5 Borrower or Xxxxxx Xxxxxxx, or Tristar shall fail to
perform or observe any other term, covenant or provision contained in this
Agreement, or the Alternate Currency Addenda and any
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such failure shall remain unremedied for thirty (30) days after written notice
thereof shall have been given to the Borrower by any of the Agents or any of the
Lenders;
8.6 This Agreement or any of the other Transaction Documents
shall at any time for any reason cease to be in full force and effect or shall
be declared to be null and void by a court of competent jurisdiction, or if the
validity or enforceability thereof shall be contested or denied by the Borrower,
or if the transactions completed hereunder or thereunder shall be contested by
the Borrower or if the Borrower shall deny that it has any or further liability
or obligation hereunder or thereunder;
8.7 Borrower, any Subsidiary of the Borrower or any other
Obligor shall (i) voluntarily commence any proceeding or file any petition
seeking relief under Title 11 of the United States Code or any other federal,
state or foreign bankruptcy, insolvency, receivership, liquidation or similar
law, (ii) consent to the institution of, or fail to contravene in a timely and
appropriate manner, any such proceeding or the filing of any such petition,
(iii) apply for or consent to the appointment of a receiver, trustee, custodian,
sequestrator or similar official of itself, himself or herself or of a
substantial part of its, his or her Property or assets, (iv) file an answer
admitting the material allegations of a petition filed against itself, himself
or herself in any such proceeding, (v) make a general assignment for the benefit
of creditors, (vi) become unable, admit in writing its, his or her inability or
fail generally to pay its, his or her debts as they become due or (vii) take any
corporate or other action for the purpose of effecting any of the foregoing;
8.8 An involuntary proceeding shall be commenced or an
involuntary petition shall be filed in a court of competent jurisdiction seeking
(i) relief in respect of the Borrower, any Subsidiary of the Borrower or any
other Obligor, or of a substantial part of the Property or assets of the
Borrower, any Subsidiary of the Borrower or any other Obligor, under Title 11 of
the United States Code or any other federal, state or foreign bankruptcy,
insolvency, receivership, liquidation or similar law, (ii) the appointment of a
receiver, trustee, custodian, sequestrator or similar official of the Borrower,
any Subsidiary of the Borrower or any other Obligor or of a substantial part of
the Property or assets of the Borrower, any Subsidiary of the Borrower or any
other Obligor or (iii) the winding-up or liquidation of the Borrower, any
Subsidiary of the Borrower or any other Obligor; and such proceeding or petition
shall continue undismissed for sixty (60) consecutive days or an order or decree
approving or ordering any of the foregoing shall continue unstayed and in effect
for sixty (60) consecutive days;
8.9 Any "Event of Default" (as defined therein) shall occur
under or within the meaning of any Pledge Agreement;
8.10 Any event of default shall occur under the terms of any
Letter of Credit Application;
8.11 Any of the Subsidiary Guaranties shall at any time for
any reason cease to be in full force and effect or shall be declared to be null
and void by a court of competent jurisdiction, or if the validity or
enforceability thereof shall be contested by or denied by the Domestic
Subsidiary executing any such Subsidiary Guaranty, or if any such Domestic
Subsidiary shall deny that it has any further liability or obligation
thereunder;
8.12 Any "Event of Default" (as defined therein) shall occur
under or within the meaning of any of the Subsidiary Pledge Agreements;
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8.13 Borrower, any Subsidiary of the Borrower or any other
Obligor shall be declared by any of the Agents or any of the Lenders to be in
default (beyond any applicable cure or grace period, if any) on, or pursuant to
the terms of, (1) any other present or future obligation to any of the Agents or
any of the Lenders, including, without limitation, any other loan, line of
credit, revolving credit, guaranty or letter of credit reimbursement obligation,
or (2) any other present or future agreement purporting to convey to any such
Lender or to any such Agent a Lien upon any Property or assets of the Borrower,
such Subsidiary of the Borrower or such other Obligor, as the case may be;
8.14 Borrower, any Subsidiary of the Borrower or any other
Obligor shall fail (and such failure shall not have been cured or waived) to
perform or observe any term, provision or condition of, or any other default or
event of default shall occur under, any agreement, document or instrument
evidencing, securing or otherwise relating to any outstanding Indebtedness of
the Borrower, such Subsidiary of the Borrower or such other Obligor, as the case
may be, for borrowed money (other than the Borrower's Obligations) in a
principal amount in excess of One Hundred Thousand Dollars ($100,000.00), if the
effect of such failure or default is to cause or permit such Indebtedness to be
declared to be due and payable or otherwise accelerated, or to be required to be
prepaid (other than by a regularly scheduled required prepayment), prior to the
stated maturity thereof;
8.15 A default or event of default shall occur and be
continuing under any of the terms of any agreement, whether executed now or
hereafter, to provide the Borrower with any interest rate swap, interest rate
cap or other interest hedge, including, but not limited to, any such agreements
to finance any such arrangement;
8.16 Borrower, any Subsidiary of the Borrower or any other
Obligor shall have a judgment entered against it, him or her by a court having
jurisdiction in the premises in an amount of One Hundred Thousand Dollars
($100,000.00) or more and such judgment shall not be appealed in good faith or
satisfied by the Borrower, such Subsidiary of the Borrower or such other
Obligor, as the case may be, within thirty (30) days after the entry of such
judgment;
THEN, and in each such event (other than an event described in
Sections 8.7 or 8.8), Administrative Agent may, or if requested in writing by
the Required Lenders shall, declare that the obligations of the Lenders to make
Loans (including, without limitation, Alternate Currency Loans) and of the
Administrative Agent to issue Letters of Credit under this Agreement have
terminated, whereupon such obligations of Administrative Agent and Lenders shall
be immediately and forthwith terminated, and Administrative Agent may further,
with the consent of the Required Lenders, or if requested in writing by the
Required Lenders shall further, declare on behalf of each of the Lenders that
the entire outstanding principal balance of and all accrued and unpaid interest
on the Notes and all of the other Borrower's Obligations are forthwith due and
payable, whereupon all of the unpaid principal balance of and all accrued and
unpaid interest on the Notes and all such other Borrower's Obligations shall
become and be immediately due and payable, without presentment, demand, protest
or further notice of any kind, all of which are hereby expressly waived by the
Borrower, and Agents and the Lenders may exercise any and all other rights and
remedies which any of them may have under any of the other Transaction Documents
or under applicable law; provided, however, that upon the occurrence of any
event described in Sections 8.7 or 8.8, Lenders' obligations to make Loans
(including, without limitation, Alternate Currency Loans) and Administrative
Agent's obligation to issue Letters of Credit under this Agreement shall
automatically terminate and the entire outstanding principal balance of and all
accrued and unpaid interest on the Notes issued under this Agreement and
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all other Borrower's Obligations shall automatically become immediately due and
payable, without presentment, demand, protest or further notice of any kind, all
of which are hereby expressly waived by the Borrower, and Agents and the Lenders
may exercise any and all other rights and remedies which any of them may have
under any of the other Transaction Documents or under applicable law. Following
acceleration of Borrower's Obligations hereunder as set forth above,
Administrative Agent may, or if requested in writing by the Required Lenders and
provided with the indemnity required under Section 9.6 shall, proceed to enforce
any remedy then available to any of the Agents or any of the Lenders under any
applicable law, including, without limitation, all rights granted to
Administrative Agent hereunder, under the Subsidiary Guaranties, the Pledge
Agreements, any of the Subsidiary Pledge Agreements, or any Letter of Credit
Application, and the rights and remedies available to a secured party under the
Uniform Commercial Code as in effect in the State of Missouri.
Upon the occurrence of any Event of Default, Administrative
Agent will have the right, in addition to all other rights and remedies
available to Agents and the Lenders under this Agreement or under the other
Transaction Documents, after oral or written notice is sent to the Borrower, to
take possession of, preserve and care for any Collateral, to execute and/or
endorse as the Borrower's agent any bills of sale or documents, instruments or
chattel paper in or pertaining to the Collateral, to take control of all of the
Borrower's cash, to collect and receive funds generated by the Collateral,
including proceeds or refunds from insurance, or as a result of claims for the
damage, loss, or destruction of the Collateral, and use the same to reduce any
part of the obligations.
The Administrative Agent shall give notice of a Default to
Borrower promptly upon being requested to do so by any Lender and shall
thereupon notify all of the Lenders thereof.
Following any Default or Event of Default, all payments and
other amounts received by any of the Agents and/or any of the Lenders, whether
voluntary or involuntary, including but not limited to any proceeds of any
collateral, any right of offset or otherwise, shall be shared among the Lenders
in accordance with their Pro Rata Shares of the outstanding principal
indebtedness under all of the Revolving Credit Loans and Letter of Credit
obligations then outstanding of Borrower. Such application shall be made first,
to any costs or expenses of any of the Agents or any of the Lenders incurred in
connection with the collection of such proceeds, second, to any accrued and
unpaid fees due hereunder or under any of the other Transaction Documents,
third, to any and all accrued and unpaid interest on any of the Loans, fourth,
to collateralize any outstanding Letters of Credit pursuant to Section 3.4(e)
herein, and fifth, to the unpaid principal amounts of any of the Loans
outstanding hereunder and under the other Transaction Documents.
SECTION 9. THE AGENTS
9.1 Appointment and Authorization. Each Lender irrevocably
appoints and authorizes the Administrative Agent to take such action as agent on
its behalf and to exercise such powers under this Agreement, the Notes and the
other Transaction Documents as are delegated to the Administrative Agent by the
terms hereof or thereof, together with all such powers as may be reasonably
incidental thereto. Each Lender irrevocably appoints and authorizes the
Syndication Agent to take such action as agent on its behalf and to exercise
such powers under this Agreement, the Notes and the other Transaction Documents
as are delegated to the Syndication Agent by the terms hereof or thereof,
together with all such powers as may be reasonably incidental thereto.
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9.2 Agents and Affiliates. The Administrative Agent and the
Syndication Agent shall each have the same rights and powers under this
Agreement as any other Lender and may exercise or refrain from exercising the
same as though they were not an Agent hereunder, and either of the
Administrative Agent and its affiliates or the Syndication Agent and its
affiliates may accept deposits from, lend money to and generally engage in any
kind of business with Borrower or any of its Subsidiaries or Affiliates as if it
were not an Agent hereunder.
9.3 Actions by Agents. The obligations of the Administrative
Agent and of the Syndication Agent hereunder are only those expressly set forth
herein. Without limiting the generality of the foregoing, neither the
Administrative Agent nor the Syndication Agent shall be required to take any
action with respect to any Default or Event of Default, except as expressly
provided in Section 8.
9.4 Consultation with Experts. The Agents may consult with
legal counsel, independent certified public accountants and other experts
selected by them and shall not be liable for any action taken or omitted to be
taken by them in good faith in accordance with the advice of such counsel,
accountants or other experts.
9.5 Liability of Agents. Neither the Administrative Agent, the
Syndication Agent, the Alternate Currency Bank nor any of their respective
directors, officers, employees, agents or advisors shall be liable for any
action taken or not taken by them in connection herewith (i) with the consent or
at the request of the requisite percentage in interest of the Lenders set forth
herein or (ii) in the absence of such Agent's or other Person's own gross
negligence or willful misconduct as determined by a court of competent
jurisdiction. Neither the Administrative Agent, the Syndication Agent, the
Alternate Currency Bank nor any of their respective directors, officers,
employees, agents or advisors shall be responsible for or have any duty to
ascertain, inquire into or verify (i) any statement, warranty or representation
made in connection with this Agreement or any Loan hereunder; (ii) the
performance or observance of any of the covenants or agreements of Borrower;
(iii) the satisfaction of any condition specified in Section 4, except receipt
of items required to be delivered to any such Agent; or (iv) the validity,
effectiveness or genuineness of this Agreement, the Notes or any of the other
Transaction Documents. Neither Agent nor the Alternate Currency Bank shall incur
any liability by acting in reliance upon any notice, consent, certificate,
statement or other writing (which may be a bank wire, telex, telecopy or similar
writing) believed by it to be genuine or to be signed by the proper party or
parties.
9.6 Indemnification. Notwithstanding any other provision
contained in this Agreement to the contrary, to the extent Borrower fails to
reimburse either Agent or the Alternate Currency Bank pursuant to Section 10.3,
Section 10.4 or Section 10.5, or if any Default or Event of Default shall occur
under this Agreement, the Lenders shall ratably in accordance with their
respective Pro Rata Shares, indemnify each such Agent or the Alternate Currency
Bank and hold it harmless from and against any and all liabilities, losses,
costs and/or expenses, including, without limitation, any liabilities, losses,
costs and/or expenses arising from the failure of any Lender to perform its
obligations hereunder or in respect of this Agreement, and also including,
without limitation, reasonable attorneys' fees and expenses, which any such
Agent or the Alternate Currency Bank may incur, directly or indirectly, in
connection with this Agreement, the Notes or any of the other Transaction
Documents, or any action or transaction related hereto or thereto; provided only
that no such Agent or the Alternate Currency Bank shall be entitled to such
indemnification for any losses, liabilities, costs and/or expenses directly and
solely resulting from its own gross negligence or willful misconduct as
determined by a court of competent jurisdiction. This indemnity shall be a
continuing
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indemnity, contemplates all liabilities, losses, costs and expenses related to
the execution, delivery and performance of this Agreement, the Notes and the
other Transaction Documents, and shall survive the satisfaction and payment of
the Loans and the termination of this Agreement.
9.7 Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon either of the Agents or any other
Lender, and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Lender also acknowledges that it will, independently and without
reliance upon either of the Agents or any other Lender, 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 any action under this
Agreement.
9.8 Resignation of Agents. The Administrative Agent and/or the
Syndication Agent may resign at any time by giving written notice thereof to the
Lenders and Borrower. Upon any such resignation, Lenders shall have the right to
appoint a successor Administrative Agent or Syndication Agent with the prior
consent of Borrower, which consent shall not be unreasonably withheld, and which
successor Administrative Agent or Syndication Agent shall be 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 $100,000,000.00. If no
successor Agent shall have been so appointed by Lenders, and shall have accepted
such appointment, within thirty (30) days after any retiring Agent's giving of
notice of resignation, then the other Agent shall, on behalf of all of the
Lenders, appoint a successor Administrative Agent or Syndication Agent, as the
case may be, with the prior consent of Borrower, which consent shall not be
unreasonably withheld, and which successor Agent shall be 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 $100,000,000.00. Upon the
acceptance of any appointment as an Agent hereunder by a successor
Administrative Agent or Syndication Agent, such successor Administrative Agent
or Syndication Agent shall thereupon succeed to and become vested with all of
the rights, powers, privileges and duties of the retiring Administrative Agent
or Syndication Agent, as the case may be, and the retiring Administrative Agent
or Syndication Agent shall be discharged from all of its duties and obligations
under this Agreement. After any retiring Agent's resignation as an Agent, the
provisions of this Section 9 shall inure to its benefit as to any actions taken
or omitted to be taken by it while it was an Agent under this Agreement.
9.9 Removal of Agents. The Administrative Agent or the
Syndication Agent may be removed at any time, for or without cause, by an
instrument or instruments in writing executed by the Required Lenders and
delivered to the Administrative Agent with a copy to Borrower, specifying the
removal and the date when it shall take effect. Upon any such removal, Lenders
shall have the right to appoint a successor Administrative Agent or Syndication
Agent, as the case may be, with the prior consent of Borrower, which consent
shall not be unreasonably withheld, and which successor Agent shall be 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
$100,000,000.00. If no successor Agent shall have been so appointed by Lenders,
and shall have accepted such appointment, within thirty (30) days after the date
of removal of any Agent, then the Required Lenders shall, on behalf of all of
the Lenders, appoint a successor Agent with the prior consent of Borrower, which
consent shall not be unreasonably withheld, and which successor Agent shall be 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
$100,000,000.00. Upon the acceptance of any appointment as an Agent hereunder by
a successor Administrative Agent or Syndication Agent, as the case may be, such
successor Agent shall
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thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the removed Administrative Agent or Syndication Agent, as the case
may be, and the removed Agent shall be discharged from all of its duties and
obligations under this Agreement. After any such removal, the provisions of this
Section 9 shall inure to such former Agent's benefit as to any actions taken or
omitted to be taken by it while it was an Agent under this Agreement.
SECTION 10. GENERAL.
10.1 No Waiver. No failure or delay by any of the Agents or
any of the Lenders in exercising any right, remedy, power or privilege hereunder
or under any other Transaction Document shall operate as a waiver thereof; nor
shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or privilege.
The remedies provided herein and in the other Transaction Documents are
cumulative and not exclusive of any remedies provided by law. Nothing herein
contained shall in any way affect the right of any of the Agents or any of the
Lenders to exercise any statutory or common law right of banker's lien or
setoff.
10.2 Right of Setoff. Upon the occurrence and during the
continuance of any Event of Default, each of the Lenders is hereby authorized at
any time and from time to time, without notice to the Borrower (any such notice
being expressly waived by the Borrower) and to the fullest extent permitted by
law, to setoff and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held by any such Lender and any and
all other indebtedness at any time owing by any such Lender to or for the credit
or account of the Borrower against any and all of the Borrower's Obligations
irrespective of whether or not any Agent or any such Lender shall have made any
demand hereunder or under any of the other Transaction Documents and although
such obligations may be contingent or unmatured. Such Lender agrees to promptly
notify Borrower after any such setoff and application made by such Lender,
provided, however, that the failure to give such notice shall not affect the
validity of such setoff and application. The rights of Lenders under this
Section 10.2 are in addition to any other rights and remedies (including,
without limitation, other rights of setoff) which Lenders may have. Nothing
contained in this Agreement or any other Transaction Document shall impair the
right of each of the Lenders to exercise any right of setoff or counterclaim
they may have against the Borrower and to apply the amount subject to such
exercise to the payment of indebtedness of the Borrower unrelated to this
Agreement or the other Transaction Documents.
10.3 Cost and Expenses. Borrower agrees, whether or not any
Loan is made hereunder, to pay upon demand (i) all reasonable out-of-pocket
costs and expenses and all Attorneys' Fees of each of the Agents and the
Alternate Currency Bank in connection with the preparation, documentation,
negotiation, execution and administration of this Agreement, the Notes and the
other Transaction Documents, (ii) all reasonable recording, filing and search
fees incurred by the Administrative Agent in connection with this Agreement and
the other Transaction Documents, (iii) all reasonable out-of-pocket costs and
expenses and all Attorneys' Fees of each of the Agents and the Alternate
Currency Bank and each of the Lenders in connection with the preparation of any
waiver or consent hereunder or any amendment hereof or any Event of Default or
alleged Event of Default hereunder, (iv) if an Event of Default occurs, all
out-of-pocket costs and expenses and all Attorneys' Fees incurred by each of the
Agents and the Alternate Currency Bank and each of the Lenders in connection
with such Event of Default and collection and other enforcement proceedings
resulting therefrom and (v) all other Attorneys' Fees incurred by each of the
Agents and the Alternate Currency Bank and each of the Lenders relating to or
arising out of or in connection with this Agreement or any
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of the other Transaction Documents subsequent to the date hereof. The Borrower
further agrees to pay or reimburse Agents and the Alternate Currency Bank and
each of the Lenders for any stamp or other taxes which may be payable with
respect to the execution, delivery, recording and/or filing of this Agreement,
the Notes, the Pledge Agreement, the Subsidiary Guaranties or any of the other
Transaction Documents. All of the obligations of the Borrower under this Section
10.3 shall survive the satisfaction and payment of the Borrower's Obligations
and the termination of this Agreement. In the event any Agent or the Alternate
Currency Bank or any Lender claims any amounts pursuant to this Section 10.3,
such Agent or such Lender, as the case may be, shall provide to Borrower an
itemized statement of amounts claimed.
10.4 Environmental Indemnity. The Borrower hereby agrees to
indemnify each of the Agents and the Alternate Currency Bank and each of the
Lenders and hold each of the Agents and the Alternate Currency Bank and each of
the Lenders harmless from and against any and all losses, liabilities, damages,
injuries, costs, expenses and claims of any and every kind whatsoever
(including, without limitation, court costs and attorneys' fees and expenses)
which at any time or from time to time may be paid, incurred or suffered by, or
asserted against, any of the Agents or the Alternate Currency Bank or any of the
Lenders for, with respect to or as a direct or indirect result of the violation
by the Borrower or any Subsidiary of the Borrower of any Environmental Laws; or
with respect to, or as a direct or indirect result of the presence on or under,
or the escape, seepage, leakage, spillage, discharge, emission or release from,
properties utilized by the Borrower and/or any Subsidiary of the Borrower in the
conduct of its businesses into or upon any land, the atmosphere or any
watercourse, body of water or wetland, of any Hazardous Materials or any other
hazardous or toxic waste, substance or constituent or other substance
(including, without limitation, any losses, liabilities, damages, injuries,
costs, expenses or claims asserted or arising under the Environmental Laws); and
the provisions of and undertakings and indemnification set out in this Section
10.4 shall survive the satisfaction and payment of the Borrower's Obligations
and the termination of this Agreement.
10.5 General Indemnity. In addition to the payment of expenses
pursuant to Section 10.3, whether or not the transactions contemplated hereby
shall be consummated, the Borrowers hereby agree to indemnify, pay and hold each
of the Agents, and the Alternate Currency Bank, each of the Lenders and any
other holder(s) of the Notes, and the officers, directors, employees, agents and
affiliates of any of them (collectively, the "Indemnitees") harmless from and
against any and all other liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, claims, costs, expenses and disbursements of any kind
or nature whatsoever (including, without limitation, the reasonable fees and
disbursements of counsel for such Indemnitees in connection with any
investigative, administrative or judicial proceeding commenced or threatened,
whether or not such Indemnitees shall be designated a party thereto), that may
be imposed on, incurred by or asserted against the Indemnitees, in any manner
relating to or arising out of this Agreement, any of the other Transaction
Documents or any other agreement, document or instrument executed and delivered
by any of the Borrowers or any other Obligor in connection herewith or
therewith, the statements contained in any commitment letters delivered by any
of the Agents or any of the Lenders, the Lenders' agreements to make the Loans
hereunder or the use or intended use of the proceeds of any Loan hereunder
(collectively, the "indemnified liabilities"); provided that the Borrowers shall
have no obligation to an Indemnitee hereunder with respect to indemnified
liabilities arising from the gross negligence or willful misconduct of that
Indemnitee as determined by a court of competent jurisdiction. To the extent
that the undertaking to indemnify, pay and hold harmless set forth in the
preceding sentence may be unenforceable because it is violative of any law or
public policy, each of the Borrowers shall contribute the maximum portion that
it is permitted to pay and satisfy under applicable law to the
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payment and satisfaction of all indemnified liabilities incurred by the
Indemnitees or any of them. The provisions of the undertakings and
indemnification set out in this Section 10.5 shall survive satisfaction and
payment of the Borrower's Obligations and the termination of this Agreement.
10.6 Authority to Act. Agents and the Lenders shall be
entitled to act on any notices and instructions (telephonic or written) believed
by any such Agent or any such Lender to have been delivered by any Person
authorized to act on behalf of the Borrower pursuant hereto, regardless of
whether such notice or instruction was in fact delivered by a Person authorized
to act on behalf of the Borrower, and the Borrower hereby agrees to indemnify
each of the Agents and each of the Lenders and hold each of the Agents and each
of the Lenders harmless from and against any and all losses and expenses, if
any, ensuing from any such action, other than for such losses or expenses
directly caused by the gross negligence or willful misconduct of such Agent or
such Lender, as determined by a court of competent jurisdiction.
10.7 Notices. Any notice, request, demand, consent,
confirmation or other communication hereunder shall be in writing and delivered
in person or sent by telegram, telex, telecopy or registered or certified mail,
return receipt requested and postage prepaid, if to the Borrower, in care of
StaffMark, Inc. at 000 Xxxx Xxxxxxx Xxxx, Xxxxxxxxxxxx, Xxxxxxxx 00000,
Attention: Xxxxx X. Xxxxxxx, Chief Financial Officer, if to Administrative
Agent, at 000 Xxxxxx Xxxxxx, Xx. Xxxxx, Xxxxxxxx 00000, Attention: Xxxxxxx X.
Xxxxxx, Vice President, if to Syndication Agent, at Xxx Xxxxx Xxxxxxxx Xxxxx,
Xxxxx 0000, Xxxxxxx, Xxxxxxxx 00000, Attention: Xxxxx Xxxxxx, Vice President, or
if to Lenders, at their respective addresses or telecopy numbers set forth on
the signature pages of this Agreement, or at such other address as any party may
designate as its address for communications hereunder by notice so given. Such
notices shall be deemed effective on the day on which delivered or sent if
delivered in person or sent by telegram, telex or telecopy, or on the third
(3rd) Business Day after the day on which mailed, if sent by registered or
certified mail.
10.8 CONSENT TO JURISDICTION. EACH OF THE BORROWERS
IRREVOCABLY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF ANY MISSOURI STATE COURT
OR ANY UNITED STATES OF AMERICA COURT SITTING IN THE EASTERN DISTRICT OF
MISSOURI, AS AGENT MAY ELECT, IN ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT TO THE EXTENT
SUBJECT MATTER JURISDICTION EXISTS. EACH OF THE BORROWERS HEREBY IRREVOCABLY
AGREES THAT ALL CLAIMS IN RESPECT TO SUCH SUIT, ACTION OR PROCEEDING MAY BE HELD
AND DETERMINED IN ANY OF SUCH COURTS. EACH OF THE BORROWERS IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH EACH SUCH THE
BORROWER MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT,
ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT, AND EACH OF THE BORROWERS
FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT SUCH SUIT, ACTION OR PROCEEDING
BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH OF THE
BORROWERS HEREBY EXPRESSLY WAIVES ALL RIGHTS OF ANY OTHER JURISDICTION WHICH
EACH SUCH BORROWER MAY NOW OR HEREAFTER HAVE BY REASON OF ITS PRESENT OR
SUBSEQUENT DOMICILE. EACH OF THE BORROWERS AUTHORIZES THE SERVICE OF PROCESS
UPON SUCH BORROWER BY REGISTERED MAIL SENT TO SUCH BORROWER AT ITS ADDRESS SET
FORTH IN SECTION 10.7.
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10.9 Agents' and Lenders' Books and Records. Agents' and
Lenders' books and records showing the account between the Borrower and any such
Agent or any of the Lenders shall be admissible in evidence in any action or
proceeding and shall constitute prima facie proof thereof.
10.10 Governing Law; Amendments and Waivers. This Agreement,
the Notes, the Parent Guaranty, the Pledge Agreement, the Subsidiary Guaranties
and all of the other Transaction Documents shall be governed by and construed in
accordance with the internal laws of the State of Missouri. Any provision of
this Agreement, the Notes, the Parent Guaranty, the Pledge Agreement, the
Subsidiary Guaranties or any of the other Transaction Documents may be amended
or waived (including, without limitation any amendment to increase the Total
Revolving Credit Commitment, provided no Lender's Revolving Credit Commitment
shall be increased without its prior written consent as set forth below) if, but
only if, such amendment or waiver is in writing and is signed by Borrower and
the Required Lenders (and, if the rights or duties of the Administrative Agent
in its capacity as Administrative Agent or of the Syndication Agent in its
capacity as Syndication Agent are affected thereby, by the Administrative Agent
or the Syndication Agent, as the case may require); provided that no such
amendment or waiver shall, unless signed by all of the Lenders, (i) increase the
Revolving Credit Commitment of any Lender, (ii) reduce the principal amount of
or rate of interest on any Loan or any fees hereunder, (iii) postpone the date
fixed for any payment of principal of or interest on any Loan or any fees
hereunder, (iv) release any collateral security or any guaranty for any Loan
hereunder, (v) change the percentage in the definition of Required Lenders, or
(vi) amend this Section 10.10.
10.11 Successors and Assigns; Participations.
(a) The provisions of this Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns, except that Borrower may not assign or otherwise
transfer any of its rights or delegate any of its obligations under this
Agreement. Any of the Lenders may sell participations in its Notes and its
rights under this Agreement, the other Transaction Documents and in the
Collateral in whole or in part to any commercial bank organized under the laws
of the United States or any state thereof without the prior consent of Borrowers
so long as each agreement pursuant to which any such participation is granted
provides that no such participant shall have any rights under this Agreement or
any other Transaction Document (the participants' rights against the Lender
granting its participation to be those set forth in the Participation Agreement
between the participant and such Lender), and such selling Lender shall retain
the sole right to approve or disapprove any amendment, modification or waiver of
any provision of this Agreement or any of the other Transaction Documents. Each
such participant shall be entitled to the benefits of the yield protection
provisions hereof to the extent any Lender would have been so entitled had not
such participation been sold or assignment made.
(b) Any Lender which, in accordance with Section
10.11(a), grants a participation in any of its rights under this Agreement or
its Notes shall give prompt notice describing the details thereof to the Agents
and Borrower.
(c) Unless otherwise agreed to by Borrowers in
writing, no Lender shall, as between Borrowers and that Lender, be relieved of
any of its obligations under this Agreement as a result of such Lender's
granting of a participation in all or any part of such Lender's Notes or all or
any part of such Lender's rights under this Agreement.
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10.12 Assignment Agreements. Each Lender may, upon prior
notice to and consent of Borrowers, the Alternate Currency Bank and
Administrative Agent, which consent shall not be unreasonably withheld and which
consent of Borrowers shall not be required after the occurrence of a Default or
an Event of Default hereunder, from time to time sell or assign a pro rata part
of all of the indebtedness evidenced by the Notes then owed by it together with
an equivalent proportion of its obligation to make Loans hereunder and the
credit risk incidental to the Alternate Currency Loans and the Letters of Credit
pursuant to an Assignment Agreement substantially in the form of Exhibit G
attached hereto, executed by the assignor, the assignee and the Borrowers, which
agreements shall specify in each instance the portion of the indebtedness
evidenced by the Notes which is to be assigned to each such assignor and the
portion of the Loan Commitments of the assignor and the credit risk incidental
to the Letters of Credit (which portions shall be equivalent) to be assumed by
it (the "Assignment Agreements"), provided that nothing herein contained shall
restrict, or be deemed to require any consent as a condition to, or require
payment of any fee in connection with, any sale, discount or pledge by any
Lender of any Note or other obligation hereunder to a federal reserve bank. Any
such portion of the indebtedness assigned by any Lender pursuant to this Section
10.12 shall not be less than $5,000,000.00. Upon the execution of each
Assignment Agreement by the assignor, the assignee and the Borrowers and consent
thereto by the Administrative Agent (i) such assignee shall thereupon become a
"Lender" for all purposes of this Agreement with Loan Commitments in the amount
set forth in such Assignment Agreement and with all the rights, powers and
obligations afforded a Lender hereunder, (ii) the assignor shall have no further
liability for funding the portion of its Loan Commitments assumed by such other
Lender and (iii) the address for notices to such Lender shall be as specified in
the Assignment Agreement, and the Borrowers shall, in exchange for the
cancellation of the Notes held by the assignor Lender, execute and deliver Notes
to the assignee Lender in the amount of its Loan Commitments and new Notes to
the assignor Lender in the amount of its Loan Commitments after giving effect to
the reduction occasioned by such assignment, all such Notes to constitute
"Notes" for all purposes of this Agreement, and there shall be paid to the
Administrative Agent, as a condition to such assignment, an administration fee
of $3,500.00 plus any out-of-pocket costs and expenses incurred by it in
effecting such assignment, such fee to be paid by the assignor or the assignee
as they may mutually agree, but under no circumstances shall any portion of such
fee be payable by or charged to the Borrower.
10.13 References; Headings for Convenience. Unless otherwise
specified herein, all references herein to Section numbers refer to Section
numbers of this Agreement, all references herein to Exhibits X, X-0, X, X, X, X,
X, X, X, X, X-0 and J-2 refer to annexed Exhibits X, X-0, X, X, X, X, X, X, X,
X, X-0 and J-2 which are hereby incorporated herein by reference and all
references herein to Schedules 6.5, 6.6, 6.8, 6.10, 6.11, 6.14, 6.15,
7.1(k)(viii) and 7.2(h) refer to annexed Schedules 6.5, 6.6, 6.8, 6.10, 6.11,
6.14, 6.15, 7.1(k)(viii) and 7.2(h) which are hereby incorporated herein by
reference. The Section headings are furnished for the convenience of the parties
and are not to be considered in the construction or interpretation of this
Agreement.
10.14 Subsidiary Reference. Any reference herein to a
Subsidiary or Consolidated Subsidiary of the Borrower, and any financial
definition, ratio, restriction or other provision of this Agreement which is
stated to be applicable to the Borrower and its Subsidiaries or Consolidated
Subsidiaries or which is to be determined on a "consolidated" or "consolidating"
basis, shall apply only to the extent the Borrower has any Subsidiaries or
Consolidated Subsidiaries and, where applicable, to the extent any such
Subsidiaries are consolidated with the Borrower for financial reporting
purposes.
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10.15 Binding Agreement. This Agreement shall be binding upon
and inure to the benefit of the Borrowers and their respective successors and
each of the Agents and each of the Lenders and their respective successors and
assigns. The Borrowers may not assign or delegate any of their rights or
obligations under this Agreement.
10.16 NO ORAL AGREEMENTS; ENTIRE AGREEMENT. ORAL AGREEMENTS OR
COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT
OF A DEBT, INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT, ARE NOT ENFORCEABLE.
TO PROTECT THE BORROWERS, AGENTS AND LENDERS FROM MISUNDERSTANDING OR
DISAPPOINTMENT, ANY AGREEMENTS REACHED BY THE BORROWERS, AGENTS AND LENDERS
COVERING SUCH MATTERS ARE CONTAINED IN THIS AGREEMENT AND THE OTHER TRANSACTION
DOCUMENTS, WHICH AGREEMENT AND OTHER TRANSACTION DOCUMENTS ARE A COMPLETE AND
EXCLUSIVE STATEMENT OF THE AGREEMENTS BETWEEN THE BORROWERS, AGENTS AND LENDERS,
EXCEPT AS THE BORROWERS, AGENTS AND LENDERS MAY LATER AGREE IN WRITING TO MODIFY
THEM. THIS AGREEMENT EMBODIES THE ENTIRE AGREEMENT AND UNDERSTANDING BETWEEN THE
PARTIES HERETO AND SUPERSEDES ALL PRIOR AGREEMENTS AND UNDERSTANDINGS (ORAL OR
WRITTEN) RELATING TO THE SUBJECT MATTER HEREOF.
10.17 Severability. In case any one or more of the provisions
contained in this Agreement should be invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions
contained herein that may be given effect without the invalid, illegal or
unenforceable provision shall not in any way be affected or impaired thereby.
10.18 Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.
10.19 Resurrection of the Borrower's Obligations. To the
extent that any of the Agents or any of the Lenders receives any payment on
account of any of the Borrower's Obligations, and any such payment(s) or any
part thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside, subordinated and/or required to be repaid to a trustee,
receiver or any other Person under any bankruptcy act, state or federal law,
common law or equitable cause, then, to the extent of such payment(s) received,
the Borrower's Obligations or part thereof intended to be satisfied and any and
all Liens upon or pertaining to any Property or assets of the Borrower and
theretofore created and/or existing in favor of Administrative Agent for the
benefit of the Lenders as security for the payment of the Borrower's Obligations
shall be revived and continue in full force and effect, as if such payment(s)
had not been received by such Agent or any such Lender and applied on account of
the Borrower's Obligations.
10.20 U. S. Dollars. All currency references set forth herein,
in any other Transaction Documents and in any transactions referenced herein or
therein shall, unless otherwise specified, be denominated in Dollars of the
United States of America.
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IN WITNESS WHEREOF, the parties have executed this Third
Amended and Restated Credit Agreement as of this _____ day of January, 1999.
STAFFMARK, INC.
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
XXXXXX XXXXXXX PLC
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
XXXXXX XXXXXXX TRISTAR PTY LTD.
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
Revolving Credit Commitment: MERCANTILE BANK
$39,000,000.00 NATIONAL ASSOCIATION
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
Address: 000 Xxxxxx Xxxxxx
Xx. Xxxxx, Xxxxxxxx 00000
Attention: Mid America Group
Telecopy No: 000-000-0000
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Revolving Credit Commitment: DEPOSIT GUARANTY NATIONAL BANK
$15,000,000.00
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
Address: 000 X. Xxxxxxx Xxxxxx
Xxxxx 0000
Xxxxxxx, Xxxxxxxxxxx 00000
Attention: Xxxxxx X. Xxxxxxx,
VP
Telecopy No. 000-000-0000
Revolving Credit Commitment: THE FIRST NATIONAL BANK OF CHICAGO
$39,000,000.00
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
Address: One First National Plaza
00xx Xxxxx
Xxxx Xxxxx 0000
Xxxxxxx, Xxxxxxxx 00000-0000
Attention: Xxxxx X. Xxxxxx,
VP
Telecopy No. (000)000-0000
Revolving Credit Commitment: FIRST UNION NATIONAL BANK
$30,000,000.00
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
Address: One First Union Center
000 Xxxxx Xxxxxxx Xxxxxx, XX0
Xxxxxxxxx, Xxxxx Xxxxxxxx
00000-0000
Attention: Xxxxx X. Xxxxxxxxxx,
VP
Telecopy No. (000)000-0000
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Revolving Credit Commitment: LASALLE NATIONAL BANK
$20,000,000.00
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
Address: One Metropolitan Square
000 Xxxxx Xxxxxxxx
Xxxxx 0000
Xx. Xxxxx, Xxxxxxxx 00000
Attention: Xxx Xxxxxx, AVP
Telecopy No. (000)000-0000
Revolving Credit Commitment: BANK OF AMERICA NATIONAL TRUST
$30,000,000.00 AND SAVINGS ASSOCIATION
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
Address: 000 X. XxXxxxx Xxxxxx
0xx Xxxxx
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxxxx Xxxxxxxxxxx,
VP
Telecopy No. (000)000-0000
Revolving Credit Commitment: FLEET NATIONAL BANK
$30,000,000.00
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
Address: Xxx Xxxxxxx Xxxxxx
0xx Xxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000
Attention: Xxxxxxx Xxxxxxxx,
SVP
Telecopy No. (000)000-0000
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Revolving Credit Commitment: COMERICA BANK
$20,000,000.00
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
Address: 0000 Xxxxxx Xxxxxx Xxxx
Xxxxx 000
Xxxxxx, Xxxxx 00000
Attention: Xxxx Xxxxxx
Telecopy No. (000)000-0000
Revolving Credit Commitment: CREDIT LYONNAIS NEW YORK BRANCH
$30,000,000.00
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
Address: 0000 Xxxx Xxxxxx
Xxxxxx, Xxxxx 00000
Attention: Xxxxxx Xxxxx
Telecopy No. (000)000-0000
Revolving Credit Commitment: HIBERNIA NATIONAL BANK
$17,000,000.00
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
Address: 000 Xxxxxxxxxx
00xx Xxxxx
Xxx Xxxxxxx, Xxxxxxxxx 00000
Attention: Xxxxxx Xxxxxxx
Telecopy No. (000)000-0000
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Revolving Credit Commitment: BANQUE NATIONALE DE PARIS, HOUSTON
$15,000,000.00 AGENCY
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
Address: 00000 Xxxxx Xxxxx
Xxxxx 000
Xxxxxx, Xxxxx 00000
Attention: Xxxxxx X. Xxxxxx
Telecopy No. (000) 000-0000
Revolving Credit Commitment: WACHOVIA BANK, N.A.
$15,000,000.00
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
Address: 000 Xxxxxxxxx X.X.
Xxxxxxx, Xxxxxxx 00000
Attention: Xxx Xxxxxxxxxx
Telecopy No. (000) 000-0000
MERCANTILE BANK NATIONAL
ASSOCIATION, AS ADMINISTRATIVE AGENT
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
Address: 000 Xxxxxx Xxxxxx
Xx. Xxxxx, Xxxxxxxx 00000
Attention: Mid America Group
Telecopy No: 000-000-0000
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THE FIRST NATIONAL BANK OF
CHICAGO, AS SYNDICATION AGENT
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
Address: One First National Plaza
00xx Xxxxx
Xxxx Xxxxx 0000
Xxxxxxx, Xxxxxxxx 00000-0000
Attention: Xxxxx X. Xxxxxx, VP
Telecopy No. (000)000-0000
CREDIT LYONNAIS NEW YORK BRANCH, AS
CO-AGENT
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
Address: 0000 Xxxx Xxxxxx
Xxxxxx, Xxxxx 00000
Attention: Xxxxxx Xxxxx
Telecopy No. (000)000-0000
FIRST UNION NATIONAL BANK, AS CO-AGENT
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
Address: One First Union Center
000 Xxxxx Xxxxxxx Xxxxxx, XX0
Xxxxxxxxx, Xxxxx Xxxxxxxx
00000-0000
Attention: Xxxxx X. Xxxxxxxxxx,
VP
Telecopy No. (000)000-0000
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BANK OF AMERICA NATIONAL TRUST
AND SAVINGS ASSOCIATION, AS CO-AGENT
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
Address: 000 X. XxXxxxx Xxxxxx
0xx Xxxxx
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxxxx Xxxxxxxxxxx,
VP
Telecopy No. (000)000-0000
FLEET NATIONAL BANK, AS CO-AGENT
By:
------------------------------------------
Name:
----------------------------------------
Title:
---------------------------------------
Address: Xxx Xxxxxxx Xxxxxx
0xx Xxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000
Attention: Xxxxxxx Xxxxxxxx,
SVP
Telecopy No. (000)000-0000
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