EXHIBIT 4.3
EXECUTION COPY
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CREDIT AGREEMENT
among
SPHERIS HOLDING II, INC.,
SPHERIS HOLDING, INC. (to be merged into SPHERIS INC.),
as Borrower,
The Several Lenders from Time to Time Parties Hereto,
UBS SECURITIES LLC,
as Syndication Agent,
and
JPMORGAN CHASE BANK,
as Administrative Agent
Dated as of November 5, 2004
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X.X. XXXXXX SECURITIES INC.,
as Sole Lead Arranger and Sole Bookrunner
TABLE OF CONTENTS
Page
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ARTICLE I DEFINITIONS.................................................... 1
SECTION 1.1. Defined Terms.............................................. 1
SECTION 1.2. Terms Generally............................................ 26
SECTION 1.3. Pro Forma Calculations..................................... 26
SECTION 1.4. Classification of Loans and Borrowings..................... 27
ARTICLE II THE CREDITS................................................... 27
SECTION 2.1. Commitments................................................ 27
SECTION 2.2. Loans...................................................... 27
SECTION 2.3. Borrowing Procedure........................................ 29
SECTION 2.4. Evidence of Debt; Repayment of Loans....................... 29
SECTION 2.5. Fees....................................................... 30
SECTION 2.6. Interest on Loans.......................................... 31
SECTION 2.7. Default Interest........................................... 31
SECTION 2.8. Alternate Rate of Interest................................. 31
SECTION 2.9. Termination and Reduction of Commitments................... 32
SECTION 2.10. Conversion and Continuation of Borrowings.................. 32
SECTION 2.11. Repayment of Term Loan Borrowings.......................... 33
SECTION 2.12. Optional Prepayments....................................... 34
SECTION 2.13. Mandatory Prepayments...................................... 35
SECTION 2.14. Reserve Requirements; Change in Circumstances.............. 36
SECTION 2.15. Indemnity.................................................. 37
SECTION 2.16. Pro Rata Treatment......................................... 37
SECTION 2.17. Sharing of Setoffs......................................... 37
SECTION 2.18. Payments................................................... 38
SECTION 2.19. Taxes...................................................... 38
SECTION 2.20. Assignment of Commitments Under Certain Circumstances;
Duty to Mitigate........................................... 39
SECTION 2.21. Swingline Loans............................................ 40
SECTION 2.22. Letters of Credit.......................................... 41
ARTICLE III REPRESENTATIONS AND WARRANTIES............................... 46
SECTION 3.1. Organization; Powers....................................... 46
SECTION 3.2. Authorization.............................................. 46
SECTION 3.3. Enforceability............................................. 46
SECTION 3.4. Governmental Approvals..................................... 47
SECTION 3.5. Financial Statements....................................... 47
SECTION 3.6. No Material Adverse Change................................. 47
SECTION 3.7. Title to Properties; Possession Under Leases............... 47
SECTION 3.8. Subsidiaries............................................... 48
SECTION 3.9. Litigation; Compliance with Laws........................... 48
SECTION 3.10. Agreements................................................. 48
SECTION 3.11. Federal Reserve Regulations................................ 48
SECTION 3.12. Investment Company Act; Public Utility Holding Company
Act........................................................ 48
SECTION 3.13. Use of Proceeds............................................ 49
SECTION 3.14. Tax Returns................................................ 49
SECTION 3.15. No Material Misstatements.................................. 49
SECTION 3.16. Employee Benefit Plans..................................... 49
SECTION 3.17. Environmental Matters...................................... 49
SECTION 3.18. Insurance.................................................. 50
SECTION 3.19. Security Documents......................................... 50
SECTION 3.20. Location of Real Property and Leased Premises.............. 50
SECTION 3.21. Labor Matters.............................................. 50
SECTION 3.22. Solvency................................................... 51
SECTION 3.23. Representations and Warranties in Acquisition Documents.... 51
SECTION 3.24. Senior Indebtedness........................................ 51
SECTION 3.25. Certain Treasury Regulation Matters........................ 51
SECTION 3.26. Foreign Assets Control Regulations, Etc.................... 51
ARTICLE IV CONDITIONS OF LENDING......................................... 52
SECTION 4.1. All Credit Events.......................................... 52
SECTION 4.2. First Credit Event......................................... 52
ARTICLE V AFFIRMATIVE COVENANTS.......................................... 55
SECTION 5.1. Existence; Businesses and Properties....................... 55
SECTION 5.2. Insurance.................................................. 55
SECTION 5.3. Taxes...................................................... 56
SECTION 5.4. Financial Statements, Reports, etc......................... 57
SECTION 5.5. Litigation and Other Notices............................... 58
SECTION 5.6. Information Regarding Collateral........................... 58
SECTION 5.7. Maintaining Records; Access to Properties and Inspections.. 59
SECTION 5.8. Use of Proceeds............................................ 59
SECTION 5.9. Further Assurances......................................... 59
SECTION 5.10. Certain Treasury Regulation Matters........................ 60
SECTION 5.11. Hedging Agreements......................................... 60
SECTION 5.12. Environmental Laws......................................... 60
ARTICLE VI NEGATIVE COVENANTS............................................ 61
SECTION 6.1. Indebtedness............................................... 61
SECTION 6.2. Liens...................................................... 63
SECTION 6.3. Sale and Lease-Back Transactions........................... 65
SECTION 6.4. Investments, Loans and Advances............................ 66
SECTION 6.5. Mergers, Consolidations, Sales of Assets and Acquisitions.. 68
SECTION 6.6. Restricted Payments; Restrictive Agreements................ 68
SECTION 6.7. Transactions with Affiliates............................... 71
SECTION 6.8. Business of Holdings, Borrower and Subsidiaries............ 71
SECTION 6.9. Other Indebtedness; Material Agreements.................... 71
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SECTION 6.10. Capital Expenditures....................................... 72
SECTION 6.11. Interest Coverage Ratio.................................... 72
SECTION 6.12. Maximum Leverage Ratio..................................... 74
SECTION 6.13. Fiscal Year................................................ 77
SECTION 6.14. Amendments to Acquisition Documentation.................... 77
ARTICLE VII EVENTS OF DEFAULT............................................ 77
ARTICLE VIII THE AGENTS.................................................. 80
SECTION 8.1. Appointment................................................ 80
SECTION 8.2. Delegation of Duties....................................... 80
SECTION 8.3. Exculpatory Provisions..................................... 81
SECTION 8.4. Reliance by Administrative Agent........................... 81
SECTION 8.5. Notice of Default.......................................... 81
SECTION 8.6. Non-Reliance on Agents and Other Lenders................... 81
SECTION 8.7. Indemnification............................................ 82
SECTION 8.8. Agent in Its Individual Capacity........................... 82
SECTION 8.9. Successor Administrative Agent............................. 82
SECTION 8.10. Documentation Agent and Syndication Agent.................. 83
ARTICLE IX MISCELLANEOUS................................................. 83
SECTION 9.1. Notices.................................................... 83
SECTION 9.2. Survival of Agreement...................................... 83
SECTION 9.3. Binding Effect............................................. 84
SECTION 9.4. Successors and Assigns..................................... 84
SECTION 9.5. Expenses; Indemnity........................................ 86
SECTION 9.6. Right of Setoff............................................ 87
SECTION 9.7. Applicable Law............................................. 87
SECTION 9.8. Waivers; Amendment......................................... 88
SECTION 9.9. Interest Rate Limitation................................... 89
SECTION 9.10. Entire Agreement........................................... 89
SECTION 9.11. WAIVER OF JURY TRIAL....................................... 89
SECTION 9.12. Severability............................................... 89
SECTION 9.13. Counterparts............................................... 90
SECTION 9.14. Headings................................................... 90
SECTION 9.15. Jurisdiction; Consent to Service of Process................ 90
SECTION 9.16. Confidentiality............................................ 90
SECTION 9.17. USA Patriot Act............................................ 91
SECTION 9.18. Releases of Guarantees and Liens........................... 91
Schedules
Schedule 1.1(a) Subsidiary Guarantors
Schedule 1.1(b) Asset Sale Dispositions
Schedule 2.1 Lenders and Commitments
Schedule 2.22(b) Closing Date Letter of Credit
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Schedule 3.2 Authorizations
Schedule 3.4 Governmental Approvals
Schedule 3.5(a) Material Liabilities Not Reflected in Balance Sheet
Schedule 3.8 Subsidiaries
Schedule 3.9 Litigation
Schedule 3.17 Environmental Matters
Schedule 3.18 Insurance
Schedule 3.19(a) Filing Offices
Schedule 3.19(c) Mortgage Filing Offices
Schedule 3.20(a) Owned Property
Schedule 3.20(b) Leased Property
Schedule 4.2(a) Other Local Counsel
Schedule 6.1 Outstanding Indebtedness on Closing Date
Schedule 6.2 Liens Existing on Closing Date
Schedule 6.4 Existing Investments
Schedule 6.7 Transactions with Affiliates
Exhibits
EXHIBIT A Form of Assignment and Assumption
EXHIBIT B Form of Borrowing Request
EXHIBIT C Form of Guarantee and Collateral Agreement
EXHIBIT D Form of Perfection Certificate
EXHIBIT E-1 Form of Opinion of Xxxxxxx Xxxx & Xxxxxxxxx LLP
EXHIBIT E-2 Form of Opinion of Bass, Beary & Xxxx PLC
EXHIBIT E-3 Form of Opinion of Potter Xxxxxxxx & Xxxxxxx LLP
EXHIBIT F Form of Mortgage
EXHIBIT G Form of Intercreditor Agreement
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CREDIT AGREEMENT (this "Agreement"), dated as of November 5, 2004,
among SPHERIS HOLDING II, INC., a Delaware corporation ("Holdings"), SPHERIS
HOLDING, INC., a Delaware corporation (the "Borrower"), the several banks and
other financial institutions or entities from time to time parties to this
Agreement (the "Lenders"), UBS SECURITIES LLC, as syndication agent (in such
capacity, the "Syndication Agent"), and JPMORGAN CHASE BANK, as administrative
agent.
WITNESSETH:
WHEREAS, the Borrower will acquire all the capital stock of Spheris
Inc., a Delaware corporation (the "Company"), pursuant to the Securities
Purchase Agreement, dated as of October 12, 2004 (the "Acquisition Agreement"),
between Spheris Holdings LLC (the "Seller") and the Borrower;
WHEREAS, on the Closing Date, the Borrower will be merged with and
into the Company, with the Company continuing as the surviving corporation in
such merger (the "Merger"); and
WHEREAS, upon the effectiveness of the Merger, the Company will
succeed to all rights and obligations of the Borrower by operation of law and
all references herein and in the other Loan Documents to the term "Borrower"
shall thereupon be deemed to be references to the Company;
NOW, THEREFORE, in consideration of the premises and to induce the
Administrative Agent and the Lenders to enter into this Agreement and to induce
the Lenders to make their respective extensions of credit to the Borrower
hereunder, the parties hereto hereby agree as follows:
ARTICLE I
Definitions
Section 1.1. Defined Terms. As used in this Agreement, the following terms
shall have the meanings specified below:
"ABR", when used in reference to any Loan or Borrowing, refers to whether
such Loan, or the Loans comprising such Borrowing, are bearing interest at a
rate determined by reference to the Alternate Base Rate.
"Acquired CapEx Amount" shall have the meaning assigned to such term in
Section 6.10(a).
"Acquired Entity" shall have the meaning assigned to such term in Section
6.4(g).
"Acquisition" shall mean the acquisition by the Borrower of all the
outstanding capital stock of the Company and its subsidiaries pursuant to the
Acquisition Agreement.
"Acquisition Agreement" shall have the meaning assigned to such term in the
recitals, as such agreement may be amended, supplemented or otherwise modified
from time to time in accordance with Section 6.14.
"Acquisition Documentation" shall mean, collectively, the Acquisition
Agreement and all schedules, exhibits and annexes thereto and all side letters
and agreements affecting the terms thereof or entered into in connection
therewith.
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"Administrative Agent" shall mean JPMorgan Chase Bank, together with its
affiliates, as the arranger of the Commitments and as the administrative agent
for the Lenders under this Agreement and the other Loan Documents, together with
any of its successors.
"Administrative Agent Fees" shall have the meaning assigned to such term in
Section 2.5(b).
"Affiliate" shall mean, when used with respect to a specified person,
another person that directly, or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the person
specified.
"Agents" shall mean the collective reference to the Syndication Agent, the
Documentation Agent and the Administrative Agent.
"Aggregate Exposure Percentage" shall mean for any Lender the percentage
equivalent of a fraction, the numerator of which is the Aggregate Total Exposure
of such Lender and the denominator of which is the Aggregate Total Exposure.
"Aggregate Revolving Credit Exposure" shall mean the aggregate amount of
the Lenders' Revolving Credit Exposures.
"Aggregate Total Exposure" shall mean the Aggregate Revolving Credit
Exposure and the outstanding Term Loans.
"Alternate Base Rate" shall mean, for any day, a rate per annum (rounded
upwards, if necessary, to the next 1/100 of 1%) equal to the greater of (a) the
Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in
effect on such day plus 1/2 of 1%. For purposes hereof: "Prime Rate" shall mean
the rate of interest per annum publicly announced from time to time by JPMorgan
Chase Bank as its prime rate in effect at its principal office in New York City
(the Prime Rate not being intended to be the lowest rate of interest charged by
JPMorgan Chase Bank in connection with extensions of credit to debtors). Any
change in the ABR due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective as of the opening of business on the effective
day of such change in the Prime Rate or the Federal Funds Effective Rate,
respectively.
"Applicable Percentage" shall mean, for any day, with respect to any
Eurodollar Loan or ABR Loan, as the case may be, the applicable percentage set
forth below under the caption "Eurodollar Spread-Term Loans", "ABR Spread-Term
Loans", "Eurodollar Spread-Revolving Loans and Swingline Loans" or "ABR
Spread-Revolving Loans and Swingline Loans", as the case may be:
EURODOLLAR SPREAD- ABR SPREAD-
EURODOLLAR SPREAD- ABR SPREAD- REVOLVING LOANS AND REVOLVING LOANS AND
TERM LOANS TERM LOANS SWINGLINE LOANS SWINGLINE LOANS
------------------ ----------- ------------------- -------------------
3.25% 2.25% 3.00% 2.00%
; provided, that on and after the first Adjustment Date (as defined in the
definition of "Pricing Grid") occurring after December 31, 2004, the Applicable
Percentage with respect to Revolving Loans and Swingline Loans will be
determined pursuant to the Pricing Grid. The Applicable Margin for the
Incremental Term Loan Facility shall be as specified in the Incremental Term
Loan Assumption Agreement. The Applicable Percentage may be increased from time
to time by .25% per annum as provided for in Section 2.6(c).
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"Approved Fund" shall have the meaning assigned to such term in Section
9.4.
"Asset Sale" shall mean the sale, transfer or other disposition (by way of
merger, casualty, condemnation or otherwise but excluding investments permitted
by Section 6.4) by Holdings, the Borrower or any of the Subsidiaries to any
person other than the Borrower or any Subsidiary Guarantor of (a) any Equity
Interests of any of the Subsidiaries (other than directors' qualifying shares or
the sale by any person of Equity Interests of such person) or (b) any other
assets of Holdings, the Borrower or any of the Subsidiaries (other than (i)
inventory, damaged, obsolete or worn out assets, scrap and Permitted
Investments, in each case disposed of in the ordinary course of business, (ii)
dispositions between or among the Borrower and Domestic Subsidiaries, (iii)
dispositions listed on Schedule 1.1(b) hereto; (iv) dispositions between or
among Foreign Subsidiaries, (v) dispositions of assets from the Borrower or a
Domestic Subsidiary to a Foreign Subsidiary if the disposition were treated as
an Investment in the Foreign Subsidiary and would be permitted by Section 6.4
and (vi) licenses of Intellectual Property in the ordinary course of business),
provided, that any asset sale or series of related asset sales described in
clause (b) above having a value not in excess of $1,000,000 shall be deemed not
to be an "Asset Sale" for purposes of this Agreement.
"Assignee" shall have the meaning assigned to such term in Section 9.4(b).
"Assignment and Assumption" shall mean an Assignment and Assumption,
substantially in the form of Exhibit A or such other form as may be approved by
the Administrative Agent.
"Board" shall mean the Board of Governors of the Federal Reserve System of
the United States of America.
"Borrower" shall have the meaning assigned to such term in the preamble
hereto.
"Borrowing" shall mean (a) Loans of the same Class and Type made, converted
or continued on the same date and, in the case of Eurodollar Loans, as to which
a single Interest Period is in effect, or (b) a Swingline Loan.
"Borrowing Request" shall mean a request by the Borrower in accordance with
the terms of Section 2.3 and substantially in the form of Exhibit B, or such
other form as shall be approved by the Administrative Agent.
"Breakage Event" shall have the meaning assigned to such term in Section
2.15.
"Business Day" shall mean any day other than a Saturday, Sunday or day on
which banks in New York City are authorized or required by law to close;
provided, however, that when used in connection with a Eurodollar Loan, the term
"Business Day" shall also exclude any day on which banks are not open for
dealings in dollar deposits in the London interbank market.
"Capital Expenditures" shall mean, for any period, (a) the additions to
property, plant and equipment and other capital expenditures of the Borrower and
its consolidated Subsidiaries that are (or should be) set forth in a
consolidated statement of cash flows of the Borrower for such period prepared in
accordance with GAAP and (b) Capital Lease Obligations or Synthetic Lease
Obligations incurred by the Borrower and its consolidated Subsidiaries during
such period, but excluding in each case (i) any such expenditure made to
restore, replace or rebuild property to the condition of such property
immediately prior to any damage, loss, destruction or condemnation of such
property, to the extent such expenditure is made with insurance proceeds,
condemnation awards or damage recovery proceeds relating to any such damage,
loss, destruction or condemnation, (ii) any such expenditure made as the
purchase price of any
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Permitted Acquisition or the HealthScribe Acquisition, (iii) capital
expenditures relating to the construction or acquisition of any property that
has been transferred to a Person (other than Holdings or any Subsidiary)
pursuant to a sale-leaseback transaction permitted under Section 6.3, (iv)
interest capitalized during such period, (v) the purchase price of equipment
that is purchased during such period to the extent the consideration therefor
consists of any combination of (x) used or surplus equipment traded in at the
time of such purchase and (y) the proceeds of a concurrent sale of used or
surplus equipment, in each case, in the ordinary course of business, (vi) the
purchase price of equipment that is purchased substantially contemporaneously
with the trade-in of existing equipment to the extent that the gross amount of
the such price is reduced by the credit granted by the seller of such equipment
for the equipment being traded at such time or (vii) any capital expenditures
made with Net Cash Proceeds received from an Asset Sale.
"Capital Lease Obligations" of any person shall mean the obligations of
such person to pay rent or other amounts under any lease of (or other
arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP.
"Cash Management Obligations" shall mean obligations owed by Holdings, the
Borrower or any of its Subsidiaries to any Lender or any Affiliate of a Lender
in respect of any overdraft and related liabilities arising from treasury,
depository and cash management services or any automated clearing house
transfers of funds.
"Change in Control" shall mean any of the following events:
(a) prior to the initial Public Equity Offering, the Permitted Investors
shall fail to beneficially own, directly or indirectly, Equity Interests in
Holdings representing more than 50% of the aggregate ordinary voting power
represented by the issued and outstanding Equity Interests of Holdings;
(b) after the initial Public Equity Offering, any "person" or "group"
(within the meaning of the Securities Exchange Act of 1934 and the rules of the
SEC thereunder as in effect on the date hereof) other than the Permitted
Investors becomes, directly or indirectly, the beneficial owner of Equity
Interests in Holdings representing more than 35% of the aggregate ordinary
voting power represented by the issued and outstanding Equity Interests of
Holdings and the percentage of aggregate voting power owned by such "person" or
"group" exceeds the percentage of ordinary voting power owned by the Permitted
Investors;
(c) at any time, occupation of a majority of the seats (other than vacant
seats) on the board of directors of Holdings or the Borrower by persons who were
neither (i) nominated by the board of directors of Holdings or the Borrower, as
the case may be, nor (ii) appointed by directors so nominated;
(d) the occurrence of any change in control or similar event (however
denominated) with respect to Holdings or the Borrower under and as defined in
any indenture or agreement in respect of Material Indebtedness to which
Holdings, the Borrower or a Subsidiary is a party; or
(e) at any time, Holdings shall cease to directly own, beneficially and of
record, 100% of the issued and outstanding Equity Interests of the Borrower.
"Change in Law" shall mean (a) the adoption of any law, rule or regulation
after the date of this Agreement, (b) any change in any law, rule or regulation
or in the interpretation or application thereof by any Governmental Authority
after the date of this Agreement or (c) compliance by any Lender or the
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Issuing Bank (or, for purposes of Section 2.14, by any lending office of such
Lender or by such Lender's or Issuing Bank's holding company, if any) with any
request, guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement.
"Charges" shall have the meaning assigned to such term in Section 9.9.
"Class", when used in reference to any Loan or Borrowing, refers to whether
such Loan, or the Loans comprising such Borrowing, are Revolving Loans, Term
Loans, Other Term Loans or Swingline Loans and, when used in reference to any
Commitment, refers to whether such Commitment is a Revolving Credit Commitment,
a Term Loan Commitment, an Incremental Term Loan Commitment or a Swingline
Commitment.
"Closing Date" shall mean November 5, 2004.
"Code" shall mean the Internal Revenue Code of 1986, as amended from time
to time.
"Collateral" shall mean all the "Collateral" as defined in any Security
Document, and shall include the Mortgaged Properties.
"Commitment" shall mean, with respect to any Lender, such Lender's
Revolving Credit Commitment and Term Loan Commitment.
"Commitment Fee" shall have the meaning assigned to such term in Section
2.5(a).
"Company" shall have the meaning assigned to such term in the recitals.
"Conduit Lender" shall mean any special purpose corporation organized and
administered by any Lender for the purpose of making Loans otherwise required to
be made by such Lender and designated by such Lender in a written instrument;
provided, that the designation by any Lender of a Conduit Lender shall not
relieve the designating Lender of any of its obligations to fund a Loan under
this Agreement if, for any reason, its Conduit Lender fails to fund any such
Loan, and the designating Lender (and not the Conduit Lender) shall have the
sole right and responsibility to deliver all consents and waivers required or
requested under this Agreement with respect to its Conduit Lender, and provided,
further, that no Conduit Lender shall (a) be entitled to receive any greater
amount pursuant to Section 2.14, 2.15, 2.19 or 9.5 than the designating Lender
would have been entitled to receive in respect of the extensions of credit made
by such Conduit Lender or (b) be deemed to have any Commitment.
"Consolidated EBITDA" shall mean, for any period, Consolidated Net Income
for such period plus (a) without duplication and to the extent deducted in
determining such Consolidated Net Income, the sum of (i) Consolidated Interest
Expense for such period, (ii) all income tax expense (including, without
limitation, income tax expense of consolidated Foreign Subsidiaries) and foreign
withholding tax expense for such period, (iii) all amounts attributable to
depreciation and amortization for such period, (iv) any non-recurring fees, cash
charges and other cash expenses made or incurred in connection with the
Transactions that are paid or otherwise accounted for within 180 days of the
consummation of the Transactions, (v) any extraordinary losses, (vi) (A)
facilities relocation or closing costs, (B) non-recurring restructuring costs
and (C) integration costs and fees, including cash severance costs, in
connection with Permitted Acquisitions and the HealthScribe Acquisition, in each
case incurred during such period and payable in cash, in an aggregate amount
under this clause (vi) not to exceed $5,000,000, (vii) amortization and
impairment charges resulting from purchase accounting adjustments (including
inventory step-up adjustments recognized in costs of sales and write-offs of
in-process research and development costs), (viii) any non-cash compensation
charges and deferred compensation charges, including arising from
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stock options, taken during such period, and (ix) any other non-cash charges
(other than the write-down of current assets), impairments and expenses for such
period (including amortization of loan acquisition costs and unrealized gains
and losses on Hedging Agreements and gains and losses on foreign exchange
(including in respect of intercompany notes)) minus (b) without duplication (i)
all cash payments made during such period on account of non-cash charges added
to Consolidated Net Income pursuant to clauses (a)(viii) or (ix) above in such
period or in a previous period and (ii) to the extent included in determining
such Consolidated Net Income, any extraordinary gains and all non-cash items of
income (other than normal accruals in the ordinary course of business) for such
period, all determined on a consolidated basis in accordance with GAAP.
Notwithstanding the foregoing, (x) prior to the HealthScribe Acquisition Date,
Consolidated EBITDA for (i) the second quarter of fiscal 2004 shall be deemed to
be $5,600,000, (ii) for the third quarter of fiscal year 2004 shall be deemed to
be $6,400,000 and (iii) for the fourth quarter of fiscal year 2004, for the
period between October 1, 2004 and October 31, 2004 shall be deemed to be
$1,800,000 and for the period between November 1, 2004 and December 31, 2004
shall be the actual EBITDA and (y) from and after the HealthScribe Acquisition
Date, Consolidated EBITDA for (i) the second quarter of fiscal 2004 shall be
deemed to be $8,600,000, (ii) for the third quarter of fiscal year 2004 shall be
deemed to be $9,500,000 and (iii) for the fourth quarter of fiscal year 2004,
for the period between October 1, 2004 and October 31, 2004 shall be deemed to
be $3,400,000 and for the period between November 1, 2004 and December 31, 2004
shall be the actual EBITDA.
"Consolidated Interest Expense" shall mean, for any period, the sum of (a)
the interest expense (including imputed interest expense in respect of Capital
Lease Obligations and Synthetic Lease Obligations), net of cash interest income
of the Borrower and its Subsidiaries for such period, determined on a
consolidated basis in accordance with GAAP, plus (b) any interest accrued during
such period in respect of Indebtedness of the Borrower or any Subsidiary that is
required to be capitalized rather than included in consolidated interest expense
for such period in accordance with GAAP. For purposes of the foregoing, interest
expense shall be determined (a) by excluding non-cash interest expense and
amortization of deferred financing costs and original issue discount and (b)
after giving effect to any net payments made or received by the Borrower or any
Subsidiary with respect to interest rate Hedging Agreements.
"Consolidated Net Income" shall mean, for any period, the net income or
loss of the Borrower and its Subsidiaries for such period determined on a
consolidated basis in accordance with GAAP (adjusted to reflect any charge, tax
or expense incurred or accrued by Holdings during such period as though such
charge, tax or expense had been incurred by the Borrower, to the extent that the
Borrower has made or would be entitled under the Loan Documents to make any
payment to or for the account of Holdings in respect thereof); provided, that
there shall be excluded (a) the income of any Subsidiary to the extent that the
declaration or payment of dividends or similar distributions by the Subsidiary
of that income is not at the time permitted by operation of the terms of its
charter or any agreement, instrument, judgment, decree, statute, rule or
governmental regulation applicable to such Subsidiary, (b) the income or loss of
any person accrued prior to the date it becomes a Subsidiary or is merged into
or consolidated with the Borrower or any Subsidiary or the date that such
person's assets are acquired by the Borrower or any Subsidiary, (c) the income
of any person in which any other person (other than the Borrower or a wholly
owned Subsidiary or any director holding qualifying shares in accordance with
applicable law) has a joint interest, except to the extent of the amount of
dividends or other distributions actually paid to the Borrower or a wholly owned
Subsidiary by such person during such period, (d) any gains or losses
attributable to sales of assets out of the ordinary course of business in excess
of $500,000 and (e) gains and losses, realized or unrealized, relating to
fluctuations in currency values. Notwithstanding anything set forth in clause
(a) above to the contrary, a Foreign Subsidiary may agree to restrict its
ability to declare dividends or similar distributions without excluding the net
income of such Foreign Subsidiary from Consolidated Net Income so long as (a)
the agreement that restricts such ability relates to Indebtedness of such
Foreign Subsidiary described in Section 6.1(h) or Section 6.1(o), (b) the
proceeds
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thereof are used, directly or indirectly through intercompany transfers, to
prepay the Loans and (c) the net income of such Foreign Subsidiary, together
with the net income of each other Foreign Subsidiary subject to a similar
restriction, does not exceed 10% of Consolidated Net Income.
"Control" shall mean the possession, directly or indirectly, of the power
to direct or cause the direction of the management or policies of a person,
whether through the ownership of voting securities, by contract or otherwise,
and the terms "Controlling" and "Controlled" shall have meanings correlative
thereto.
"Credit Event" shall have the meaning assigned to such term in Section 4.1.
"Cumulative Excess Cash Flow" shall mean the sum of Excess Cash Flow (but
not less than zero in any period) for the period commencing on the Closing Date
and ending on December 31, 2004 and Excess Cash Flow for each succeeding fiscal
year commencing with the fiscal year ended December 31, 2005 and ending on the
Borrower's most recently ended fiscal year.
"Cure Amount" shall have the meaning assigned to such term in Article VII.
"Cure Right" shall have the meaning assigned to such term in Article VII.
"Current Assets" shall mean, at any time, the consolidated current assets
(other than cash, deferred income taxes and Permitted Investments) of the
Borrower and the Subsidiaries.
"Current Liabilities" shall mean, at any time, the consolidated current
liabilities of the Borrower and the Subsidiaries at such time, but excluding,
without duplication, (a) the current portion of any long-term Indebtedness and
(b) outstanding Revolving Loans and Swingline Loans.
"Default" shall mean any event or condition which upon notice, lapse of
time or both would constitute an Event of Default.
"Defaulting Lender" shall mean any Lender that (a) has failed to fund any
portion of the Term Loans, Revolving Loans, participations in L/C Exposure or
participations in Swing Line Loans required to be funded by it hereunder within
one (1) Business Day of the date required to be funded by it hereunder, unless
the subject of a good faith dispute, (b) has otherwise failed to pay over to the
Administrative Agent or any other Lender any other amount required to be paid by
it hereunder within one (1) Business Day of the date when due, unless the
subject of a good faith dispute, or (c) has been deemed insolvent or become the
subject of a bankruptcy or insolvency proceeding.
"De Minimis Holders" shall mean, with respect to any wholly owned
Subsidiary holders of directors' qualifying shares and other de minimis
ownership interests required to be owned under foreign law by local residents.
"Determination Date" shall mean each date that is three Business Days after
any Calculation Date.
"Documentation Agent" shall have the meaning assigned to such term in the
preamble hereto.
"Dollars" and "$" shall mean dollars in lawful currency of the United
States.
"Domestic Subsidiaries" shall mean all Subsidiaries incorporated or
organized under the laws of the United States of America, any State thereof or
the District of Columbia. If a Foreign Subsidiary
8
becomes a Guarantor and complies with the provisions of Section 5.9 as to
collateral, the Borrower may elect by written notice to the Administrative Agent
to treat such Subsidiary as a Domestic Subsidiary for purposes of the Loan
Documents; provided, that the Administrative Agent concludes, in its reasonable
discretion, that the Lenders would have substantially the same rights against
such Subsidiary pursuant to the Security Documents under the law of the relevant
foreign jurisdiction as the Lenders would have if such Subsidiary were organized
in the United States of America.
"Environmental Laws" shall mean all former, current and future Federal,
state, local and foreign laws (including common law), treaties, regulations,
rules, ordinances, codes, decrees, judgments, directives having the force of law
and orders (including consent orders), in each case, relating to protection of
the environment, natural resources, human health and safety or the presence,
Release of, or exposure to, Hazardous Materials, or the generation, manufacture,
processing, distribution, use, treatment, storage, transport, recycling or
handling of, or the arrangement for such activities with respect to, Hazardous
Materials.
"Environmental Liability" shall mean all liabilities, obligations, damages,
losses, claims, actions, suits, judgments, orders, fines, penalties, fees,
expenses and costs (including administrative oversight costs, natural resource
damages and remediation costs), whether contingent or otherwise, arising out of
or relating to (a) compliance or non-compliance with any Environmental Law, (b)
the generation, use, handling, transportation, storage, treatment or disposal of
any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the
Release of any Hazardous Materials or (e) any contract, agreement or other
consensual arrangement pursuant to which liability is assumed or imposed with
respect to any of the foregoing.
"Environmental Permits" shall mean any and all permits, licenses,
approvals, registrations, notifications, exemptions and any other authorization
pursuant to any Environmental Law.
"Equity Interests" shall mean shares of capital stock, partnership
interests, membership interests in a limited liability company, beneficial
interests in a trust or other equity interests in any person.
"ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
the same may be amended from time to time.
"ERISA Affiliate" shall mean any trade or business (whether or not
incorporated) that, together with the Borrower, is treated as a single employer
under Section 414(b) or (c) of the Code, or solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.
"ERISA Event" shall mean (a) any "reportable event", as defined in Section
4043 of ERISA or the regulations issued thereunder, with respect to a Plan
(other than an event for which the 30-day notice period is waived); (b) the
existence with respect to any Plan of an "accumulated funding deficiency" (as
defined in Section 412 of the Code or Section 302 of ERISA), whether or not
waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d)
of ERISA of an application for a waiver of the minimum funding standard with
respect to any Plan; (d) the incurrence by the Borrower or any of its ERISA
Affiliates of any liability under Title IV of ERISA with respect to the
termination of any Plan or the withdrawal or partial withdrawal of the Borrower
or any of its ERISA Affiliates from any Plan or Multiemployer Plan; (e) the
receipt by the Borrower or any of its ERISA Affiliates from the PBGC or a plan
administrator of any notice relating to the intention to terminate any Plan or
Plans or to appoint a trustee to administer any Plan; (f) the adoption of any
amendment to a Plan that would require the provision of security pursuant to
Section 401(a)(29) of the Code or Section 307 of ERISA; (g) the receipt by the
Borrower or any of its ERISA Affiliates of any notice, or the receipt by any
Multiemployer Plan
9
from the Borrower or any of its ERISA Affiliates of any notice, concerning the
imposition of Withdrawal Liability or a determination that a Multiemployer Plan
is, or is expected to be, insolvent or in reorganization, within the meaning of
Title IV of ERISA; (h) the occurrence of a non-exempt "prohibited transaction"
with respect to which Holdings, the Borrower, any of the Subsidiaries or any
ERISA Affiliate is a "disqualified person" (within the meaning of Section 4975
of the Code) or with respect to which Holdings, the Borrower or any such
Subsidiary or ERISA Affiliate could otherwise be liable; or (i) any other event
or condition with respect to a Plan or Multiemployer Plan that could result in
material liability of the Borrower or any ERISA Affiliate.
"Eurocurrency Reserve Requirements" shall mean, for any day as applied to a
Eurodollar Loan, the aggregate (without duplication) of the maximum rates
(expressed as a decimal fraction) of reserve requirements in effect on such day
(including basic, supplemental, marginal and emergency reserves) under any
regulations of the Board or other Governmental Authority having jurisdiction
with respect thereto dealing with reserve requirements prescribed for
eurocurrency funding (currently referred to as "Eurocurrency Liabilities" in
Regulation D of the Board) maintained by a member bank of the Federal Reserve
System. "Eurodollar", when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are bearing interest
at a rate determined by reference to the Eurodollar Rate.
"Eurodollar Base Rate" shall mean with respect to each day during each
Interest Period pertaining to a Eurodollar Loan, the rate per annum determined
on the basis of the rate for deposits in the relevant currency for a period
equal to such Interest Period commencing on the first day of such Interest
Period appearing on the relevant page of the Telerate screen as of 11:00 A.M.,
New York City Time, two Business Days prior to the beginning of such Interest
Period. In the event that such rate does not appear on the Telerate screen, the
"Eurodollar Base Rate" shall be determined by reference to such other comparable
publicly available service for displaying Eurodollar rates as may be selected by
the Administrative Agent or, in the absence of such availability, by reference
to the rate at which the Administrative Agent is offered deposits in the
relevant currency at or about 11:00 A.M., New York City Time, two Business Days
prior to the beginning of such Interest Period in the interbank Eurodollar
market where its relevant Eurodollar and foreign currency and exchange
operations are then being conducted for delivery on the first day of such
Interest Period for the number of days comprised therein.
"Eurodollar Rate" shall mean, with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, a rate per annum determined for such day
in accordance with the following formula (rounded upward to the nearest 1/100th
of 1%):
Eurodollar Base Rate
----------------------------------------
1.00 - Eurocurrency Reserve Requirements
"Event of Default" shall have the meaning assigned to such term in Article
VII.
"Excess Cash Flow" shall mean, for any fiscal year of the Borrower, the
excess of (a) the sum, without duplication, of (i) Consolidated EBITDA for such
fiscal year and (ii) reductions to noncash working capital of the Borrower and
the Subsidiaries for such fiscal year (i.e., the decrease, if any, in Current
Assets minus Current Liabilities from the beginning to the end of such fiscal
year) over (b) the sum, without duplication, of (i) the amount of any Tax
Payments in cash by the Borrower and the Subsidiaries with respect to such
fiscal year, (ii) Consolidated Interest Expense for such fiscal year payable in
cash, (iii) Capital Expenditures made in cash in accordance with Section 6.10
and cash expenditures in connection with Permitted Acquisitions and the
HealthScribe Acquisition during such
10
fiscal year, in each case except to the extent financed with the proceeds of
Indebtedness, equity issuances or other proceeds that would not be included in
Consolidated EBITDA for such fiscal year, (iv) permanent repayments of
Indebtedness (other than mandatory prepayments of Loans under Section 2.13),
including the principal component of Capitalized Lease Obligations and Synthetic
Lease Obligations, made by the Borrower and the Subsidiaries during such fiscal
year, but only to the extent that such prepayments by their terms cannot be
reborrowed or redrawn and do not occur in connection with a refinancing of all
or any portion of such Indebtedness, (v) additions to noncash working capital
for such fiscal year (i.e., the increase, if any, in Current Assets minus
Current Liabilities from the beginning to the end of such fiscal year), (vi)
proceeds received by the Loan Parties during such fiscal year from insurance
claims with respect to casualty events, business interruption or product recalls
which reimburse prior business expenses, (vii) management fees for such fiscal
year permitted to be paid under Section 6.6(a)(iii), (viii) cash indemnity
payments received during such fiscal year pursuant to indemnification provisions
in any agreement in connection with the Acquisition, the Merger, any Permitted
Acquisition, the HealthScribe Acquisition or any other Investment permitted
hereunder (or in any similar agreement related to any other acquisition
consummated prior to the Closing Date), (ix) Restricted Payments made in such
fiscal year to the extent such Restricted Payments are permitted under Sections
6.6(a)(ii) and 6.6(a)(iv), (x) letter of credit fees paid in such fiscal year,
(xi) all extraordinary cash charges for such fiscal year, (xii) cash payments
made in satisfaction of current liabilities during such fiscal year, (xiii) to
the extent included in determining Consolidated EBITDA, non-recurring cash
charges for such fiscal year, (xiv) to the extent added to Consolidated Net
Income in determining Consolidated EBITDA, losses from discontinued operations
for such fiscal year, (xv) cash expenditures made in respect of Hedging
Agreements during such fiscal year to the extent not reflected in the
computation of Consolidated EBITDA, (xvi) to the extent not deducted from
Consolidated Net Income in determining Consolidated EBITDA, cash payments for
employment benefits made during such fiscal year and (xvii) to the extent not
deducted from Consolidated Net Income in determining Consolidated EBITDA, cash
payments for reserves deemed appropriate by the Borrower for environmental
liabilities during such fiscal year. For purposes of computation of Excess Cash
Flow, Consolidated EBITDA shall be computed by excluding (A) items (iv), (v) and
(vi) of clause (a) of the definition of Consolidated EBITDA to the extent such
items are paid in cash during such fiscal year, (B) without duplication of
clause (b)(xvii) above and to the extent added to Consolidated Net Income in
determining Consolidated EBITDA, reserves deemed appropriate by the Borrower for
environmental liabilities for such fiscal year, (C) without duplication of
clause (b)(xvi) above and to the extent added to Consolidated Net Income in
determining Consolidated EBITDA, employment benefits for such fiscal year and
(D) to the extent added to Consolidated Net Income in determining Consolidated
EBITDA, working capital changes resulting from purchase accounting for such
fiscal year.
"Excluded Equity Issuances" shall mean (i) the issuance of Equity Interests
by Holdings to the Sponsor, (ii) the issuance of Equity Interests by Holdings
the proceeds of which are used to fund Permitted Acquisitions, (iii) Equity
Interests issued by Holdings as compensation to employees of Holdings and its
Subsidiaries in the ordinary course of business and (iv) the issuance of
Permitted Cure Securities.
"Excluded Taxes" shall mean, with respect to the Administrative Agent, any
Lender, the Issuing Bank or any other recipient of any payment to be made by or
on account of any obligation of the Borrower hereunder, (a) income or franchise
taxes imposed on (or measured by) its net income by the United States of
America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any
Lender, in which its applicable lending office is located, (b) any branch
profits taxes imposed by the United States of America or any similar tax imposed
by any other jurisdiction described in clause (a) above and (c) in the case of a
Foreign Lender (other than an assignee pursuant to a request by the Borrower
under Section 2.20(a)), any withholding tax that is imposed on amounts payable
to such Foreign Lender at the time such Foreign Lender becomes a party to
11
this Agreement (or designates a new lending office) or is attributable to such
Foreign Lender's failure to comply with Section 2.19(e), except to the extent
that such Foreign Lender (or its assignor, if any) was entitled, at the time of
designation of a new lending office (or assignment), to receive additional
amounts from the Borrower with respect to such withholding tax pursuant to
Section 2.19(a).
"Executive Order" shall mean have the meaning assigned to such term in
Section 3.26.
"Existing Credit Agreement" shall mean the Amended and Restated Credit
Agreement, dated as of April 30, 2004, among the Company, the lenders party
thereto and Xxxxxxx Xxxxx Capital, as administrative agent, as such agreement
may be amended, supplemented or otherwise modified from time to time prior to
the date hereof.
"Facility" shall mean each of (a) the Term Commitments and the Term Loans
made thereunder (the "Term Facility"), (b) the Incremental Term Commitments and
the Incremental Term Loans made thereunder (the "Incremental Term Loan
Facility") and (c) the Revolving Credit Commitments and the extensions of credit
made thereunder (the "Revolving Facility").
"Federal Funds Effective Rate" shall mean, for any day, the weighted
average of the rates on overnight federal funds transactions with members of the
Federal Reserve System arranged by federal funds brokers, as published on the
next succeeding Business Day by the Federal Reserve Bank of New York, or, if
such rate is not so published for any day that is a Business Day, the average of
the quotations for the day of such transactions received by JPMorgan Chase Bank
from three federal funds brokers of recognized standing selected by it.
"Fee Letter" shall mean the Administrative Agent Fee Letter dated October
12, 2004, between the Borrower and the Administrative Agent.
"Fee Payment Date" shall mean (a) the third Business Day following the last
day of each March, June, September and December and (b) the Revolving Credit
Maturity Date.
"Fees" shall mean the Commitment Fees, the Administrative Agent Fees, the
L/C Participation Fees, the Issuing Bank Fees and any other fees payable by a
Loan Party pursuant to a fee agreement entered into with the Administrative
Agent or any other Lender.
"Financial Officer" of any person shall mean the chief financial officer,
principal accounting officer, Treasurer or Controller of such person.
"Financial Performance Covenant" shall have the meaning assigned to such
term in Article VII.
"Foreign Assets Control Regulations" shall mean have the meaning assigned
to such term in Section 3.26.
"Foreign Lender" shall mean any Lender that is organized under the laws of
a jurisdiction other than that in which the Borrower is located. For purposes of
this definition, the United States of America, each State thereof and the
District of Columbia shall be deemed to constitute a single jurisdiction.
"Foreign Subsidiary" shall mean any Subsidiary that is not a Domestic
Subsidiary.
"Funded Debt" shall mean, as to any Person, all Indebtedness of such Person
that matures more than one year from the date of its creation or matures within
one year from such date but is renewable or extendible, at the option of such
Person, to a date more than one year from such date or arises under a
12
revolving credit or similar agreement that obligates the lender or lenders to
extend credit during a period of more than one year from such date, including
all current maturities and current sinking fund payments in respect of such
Indebtedness whether or not required to be paid within one year from the date of
its creation and, in the case of the Borrower, Indebtedness in respect of the
Loans.
"Funding Office" shall mean the office of the Administrative Agent
specified in Section 9.1 or such other office as may be specified from time to
time by the Administrative Agent as its funding office by written notice to the
Borrower and the Lenders.
"GAAP" shall mean United States of America generally accepted accounting
principles.
"Governmental Authority" shall mean any Federal, state, local or foreign
court or governmental agency, authority, instrumentality or regulatory body.
"Group Members" shall mean the collective reference to Holdings, the
Borrower and the Subsidiaries.
"Guarantee" of or by any person shall mean any obligation, contingent or
otherwise, of such person guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any other person (the
"primary obligor") in any manner, whether directly or indirectly, and including
any obligation of such person, direct or indirect, (a) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation or to purchase (or to advance or supply funds for the purchase
of) any security for the payment of such Indebtedness or other obligation, (b)
to purchase or lease property, securities or services for the purpose of
assuring the owner of such Indebtedness or other obligation of the payment of
such Indebtedness or other obligation or (c) to maintain working capital, equity
capital or any other financial statement condition or liquidity of the primary
obligor so as to enable the primary obligor to pay such Indebtedness or other
obligation; provided, however, that the term "Guarantee" shall not include
endorsements for collection or deposit in the ordinary course of business.
"Guarantee and Collateral Agreement" shall mean the Guarantee and
Collateral Agreement to be executed and delivered by Holdings, the Borrower and
each Subsidiary Guarantor, substantially in the form of Exhibit C.
"Guarantors" shall mean Holdings and the Subsidiary Guarantors.
"Hazardous Materials" shall mean (a) any petroleum products or byproducts
and all other hydrocarbons, coal ash, radon gas, asbestos, urea formaldehyde
foam insulation, polychlorinated biphenyls, chlorofluorocarbons and all other
ozone-depleting substances and (b) any chemical, material, substance or waste
that is prohibited, limited or regulated by or pursuant to any Environmental
Law.
"HealthScribe Acquisition" shall mean the acquisition of HealthScribe,
Inc., a Delaware corporation, by the Borrower or a Subsidiary Guarantor pursuant
to the Agreement and Plan of Merger dated as of September 20, 2004 among
HealthScribe, Inc., MTS Group Holdings, Inc. and HSI Merger Sub. Inc., as
amended.
"HealthScribe Acquisition Date" shall mean the date on which the
HealthScribe Acquisition is consummated.
13
"Hedging Agreement" shall mean any interest rate protection agreement,
foreign currency exchange agreement, commodity price protection agreement or
other interest or currency exchange rate or commodity price hedging arrangement.
"Holdings" shall have the meaning assigned to such term in the preamble
hereto.
"Holdings Equity Contribution" shall have the meaning assigned to such term
in Section 4.2(j).
"Inactive Subsidiary" shall mean any Subsidiary of the Borrower that (a)
does not conduct any business operations, (b) has assets with a total book value
not in excess of $10,000 and (c) does not have any Indebtedness outstanding.
"Incremental Term Lender" shall mean a Lender with an Incremental Term Loan
Commitment or an outstanding Incremental Term Loan.
"Incremental Term Loan Amount" shall mean, at any time, $50,000,000.
"Incremental Term Loan Assumption Agreement" shall mean an Incremental Term
Loan Assumption Agreement in form and substance reasonably satisfactory to the
Administrative Agent, among the Borrower, the Administrative Agent and one or
more Incremental Term Lenders.
"Incremental Term Loan Borrowing" shall mean a Borrowing comprised of
Incremental Term Loans.
"Incremental Term Loan Commitment" shall mean the commitment of any Lender,
established pursuant to Section 2.23, to make Incremental Term Loans to the
Borrower.
"Incremental Term Loan Maturity Date" shall mean the final maturity date of
any Incremental Term Loan, as set forth in the Incremental Term Loan Assumption
Agreement.
"Incremental Term Loan Repayment Dates" shall mean the dates scheduled for
the repayment of principal of any Incremental Term Loan, as set forth in the
Incremental Term Loan Assumption Agreement.
"Incremental Term Loans" shall mean Term Loans made by one or more Lenders
to the Borrower pursuant to Section 2.1(b). Incremental Term Loans may be made
in the form of additional Term Loans or, to the extent permitted by Section 2.23
and provided for in the relevant Incremental Term Loan Assumption Agreement,
Other Term Loans.
"Indebtedness" of any person shall mean, without duplication, (a) all
obligations of such person for borrowed money, (b) all obligations of such
person evidenced by bonds, debentures, notes or similar instruments, (c) all
obligations of such person under conditional sale or other title retention
agreements relating to property or assets purchased by such person, (d) all
obligations of such person issued or assumed as the deferred purchase price of
property or services (excluding trade accounts payable and accrued obligations
incurred in the ordinary course of business), (e) all Indebtedness of others
secured by (or for which the holder of such Indebtedness has an existing right,
contingent or otherwise, to be secured by) any Lien on property owned or
acquired by such person, whether or not the obligations secured thereby have
been assumed (it being understood that, unless such person shall have assumed
such obligations, the amount of such Indebtedness shall be the lesser of (x) the
fair market value of the property securing such Indebtedness and (y) the stated
principal amount of such Indebtedness), (f) all Guarantees by such person of
Indebtedness of others, (g) all Capital Lease Obligations and Synthetic
14
Lease Obligations of such person, (h) all outstanding reimbursement obligations
of such person as an account party in respect of letters of credit, (i) all
obligations of such person in respect of bankers' acceptances and (j) all
obligations of such person under or in respect of Hedging Agreements. For
purposes of determining the amount of Indebtedness of any person under clause
(j) of the preceding sentence, the amount of the obligations of such person in
respect of any Hedging Agreement at any time shall be zero prior to the time any
counterparty to such Hedging Agreement shall be entitled to terminate such
Hedging Agreement and, thereafter, shall be the maximum aggregate amount (giving
effect to any netting agreements) that such person would be required to pay if
such Hedging Agreement were terminated at such time. The Indebtedness of any
person shall include the Indebtedness of any partnership in which such person is
a general partner only to the extent such person is liable therefor by contract,
as a matter of law or otherwise, and shall not include any Indebtedness of such
partnership that is expressly non-recourse to such person. For clarification
purposes, the liability of the Borrower or any Subsidiary Guarantor to make any
periodic payments to licensors in consideration for the license of patents and
technical information under license agreements in existence on the Closing Date
and any amount payable in respect of a settlement of disputes with respect to
such payments thereunder, shall not constitute Indebtedness. Indebtedness
incurred by Holdings pursuant to Section 6.1 shall not be included in the
computations under Section 6.11 or 6.12. Notwithstanding any other provision of
this Agreement to the contrary, (i) the term "Indebtedness" shall not be deemed
to include (x) any earn-out obligation until such obligation becomes a liability
on the balance sheet of the applicable Person, (y) any deferred compensation
arrangements or (z) any non compete or consulting obligations incurred in
connection with Permitted Acquisitions or the HealthScribe Acquisition and (ii)
the amount of Indebtedness for which recourse is limited either to a specified
amount or to an identified asset of such Person shall be deemed to be equal to
such specified amount or the fair market value of such identified asset, as the
case may be.
"Indemnified Taxes" shall mean Taxes other than Excluded Taxes.
"Intellectual Property" shall have the meaning assigned to such term in the
Guarantee and Collateral Agreement.
"Interest Coverage Ratio" shall mean, for any period, the ratio of (a)
Consolidated EBITDA for such period to (b) Consolidated Interest Expense for
such period.
"Interest Payment Date" shall mean (a) as to any ABR Loan (other than any
Swingline Loan), the last day of each March, June, September and December to
occur while such Loan is outstanding and the final maturity date of such Loan,
(b) as to any Eurodollar Loan having an Interest Period of three months or less,
the last day of such Interest Period, (c) as to any Eurodollar Loan having an
Interest Period longer than three months, each day that is three months, or a
whole multiple thereof, after the first day of such Interest Period and the last
day of such Interest Period, (d) as to any Loan (other than any Revolving Loan
that is an ABR Loan and any Swingline Loan), the date of any repayment or
prepayment made in respect thereof and (e) as to any Swingline Loan, the day
that such Loan is required to be repaid.
"Interest Period" shall mean, as to any Eurodollar Loan, (a) initially, the
period commencing on the borrowing or conversion date, as the case may be, with
respect to such Eurodollar Loan and ending one, two, three or six or (if
available to all Lenders under the relevant Facility) twelve months thereafter,
as selected by the Borrower in its notice of borrowing or notice of conversion,
as the case may be, given with respect thereto; and (b) thereafter, each period
commencing on the last day of the next preceding Interest Period applicable to
such Eurodollar Loan and ending one, two, three or six or (if available to all
Lenders under the relevant Facility) twelve months thereafter, as selected by
the Borrower by irrevocable notice to the Administrative Agent not later than
12:00 (noon), New York City Time, on the date that is three Business Days prior
to the last day of the then current Interest Period with respect thereto;
provided that, all of the foregoing provisions relating to Interest Periods are
subject to the following:
15
(i) if any Interest Period would otherwise end on a day that is not a
Business Day, such Interest Period shall be extended to the next succeeding
Business Day unless the result of such extension would be to carry such
Interest Period into another calendar month in which event such Interest
Period shall end on the immediately preceding Business Day;
(ii) the Borrower may not select an Interest Period under a particular
Facility that would extend beyond the Revolving Credit Maturity Date or
beyond the date final payment is due on the Term Loans, as the case may be;
and
(iii) any Interest Period that begins on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding
day in the calendar month at the end of such Interest Period) shall end on
the last Business Day of a calendar month.
"Issuing Bank" shall mean, as the context may require, (a) JPMorgan Chase
Bank, in its capacity as the issuer of Letters of Credit hereunder, and (b) any
other Lender that may become an Issuing Bank pursuant to Section 2.22(i) or
2.22(k), with respect to Letters of Credit issued by such Lender. The Issuing
Bank may, in its discretion, arrange for one or more Letters of Credit to be
issued by Affiliates of the Issuing Bank, in which case the term "Issuing Bank"
shall include any such Affiliate with respect to Letters of Credit issued by
such Affiliate.
"Issuing Bank Fees" shall have the meaning assigned to such term in Section
2.5(c).
"L/C Commitment" shall mean the commitment of the Issuing Bank to issue
Letters of Credit pursuant to Section 2.22.
"L/C Disbursement" shall mean a payment or disbursement made by the Issuing
Bank pursuant to a Letter of Credit.
"L/C Exposure" shall mean at any time the sum of (a) the aggregate undrawn
amount of all outstanding Letters of Credit at such time and (b) the aggregate
principal amount of all L/C Disbursements that have not yet been reimbursed at
such time. The L/C Exposure of any Revolving Credit Lender at any time shall
equal its Pro Rata Percentage of the aggregate L/C Exposure at such time.
"L/C Participation Fee" shall have the meaning assigned to such term in
Section 2.5(c).
"Lenders" shall mean (a) the persons listed on Schedule 2.1 (other than any
such person that has ceased to be a party hereto pursuant to an Assignment and
Assumption) and (b) any person that has become a party hereto pursuant to an
Assignment and Assumption. Unless the context clearly indicates otherwise, the
term "Lenders" shall include the Swingline Lender.
"Letter of Credit" shall mean any letter of credit issued pursuant to
Section 2.22.
"Leverage Ratio" shall mean, on any date, the ratio of the total
Indebtedness of the Borrower and the Subsidiaries on a consolidated basis on
such date to Consolidated EBITDA for the period of four consecutive fiscal
quarters most recently ended on or prior to such date.
"Lien" shall mean, with respect to any asset, (a) any mortgage, deed of
trust, lien, pledge, encumbrance, charge or security interest in or on such
asset, (b) the interest of a vendor or a lessor under any conditional sale
agreement, capital lease or title retention agreement (or any financing lease
having substantially the same economic effect as any of the foregoing) relating
to such asset and (c) in the case of securities, any purchase option, call or
similar right of a third party with respect to such securities.
16
"Loan Documents" shall mean this Agreement, the Letters of Credit, the
Security Documents, any fee letters entered into between any Loan Party and the
Administrative Agent or any Lender and the Incremental Term Loan Assumption
Agreement.
"Loan Parties" shall mean the Borrower and the Guarantors.
"Loans" shall mean the Revolving Loans, the Term Loans and the Swingline
Loans.
"Margin Stock" shall have the meaning assigned to such term in Regulation
U.
"Material Adverse Effect" shall mean (a) a materially adverse effect on the
business, assets, operations, properties, financial condition or liabilities of
Holdings, the Borrower and the Subsidiaries, taken as a whole, (b) a material
impairment of the ability of the Borrower or any other Loan Party to perform any
of its obligations under any Loan Document to which it is or will be a party or
(c) a material impairment of the rights of or benefits available to the Lenders
under any Loan Document.
"Material Indebtedness" shall mean Indebtedness (other than the Loans and
Letters of Credit) of any one or more of Holdings, the Borrower and the
Subsidiaries in an aggregate principal amount exceeding $2,500,000.
"Material Subsidiary" shall mean, at any time, any Subsidiary which at such
time shall be a "significant subsidiary" of the Borrower within the meaning of
Regulation S-X of the SEC as in effect on the date hereof; provided, that the
Borrower and its Material Subsidiaries shall at all times have assets during the
term of this Agreement constituting at least 90% of the Borrower's consolidated
total assets; provided, further, that each Subsidiary which owns any
Intellectual Property (other than Intellectual Property with an aggregate fair
market value of less than $150,000) shall be deemed to be a Material Subsidiary
hereunder.
"Materials of Environmental Concern" shall mean any gasoline or petroleum
(including crude oil or any fraction thereof) or petroleum products, asbestos,
polychlorinated biphenyls and urea-formaldehyde insulation, molds, pollutants,
contaminants, radioactivity, radiofrequency radiation or any other radiation
associated with or allegedly associated with the telecommunications business,
and any other substance of any kind that is regulated pursuant to or gives rise
to liability under any applicable Environmental Law.
"Maximum Rate" shall have the meaning assigned to such term in Section 9.9.
"Merger" shall have the meaning assigned to such term in the recitals.
"Moody's" shall mean Xxxxx'x Investors Service, Inc.
"Mortgaged Properties" shall mean each parcel of real property and
improvements thereto with respect to which a Mortgage is granted pursuant to
Section 5.9.
"Mortgages" shall mean the mortgages, deeds of trust, leasehold mortgages,
assignments of leases and rents, modifications and other security documents
delivered pursuant to Section 5.9, each substantially in the form of Exhibit F.
"Multiemployer Plan" shall mean a multiemployer plan as defined in Section
4001(a)(3) of ERISA.
17
"Net Cash Proceeds" shall mean (a) with respect to any Asset Sale or
Recovery Event, the cash proceeds (including cash proceeds subsequently received
(as and when received) in respect of noncash consideration initially received),
net of (i) selling expenses (including reasonable broker's and investment
banking fees or commissions, legal, environmental assessment, appraisal and
consultant's fees, transfer and similar taxes and the Borrower's good faith
estimate of income taxes paid or payable in connection with such sale), (ii)
amounts provided as a reserve, in accordance with GAAP, against (A) any
liabilities under any indemnification obligations or purchase price adjustment
associated with such Asset Sale and (B) any liabilities associated with such
asset or assets and retained by the Borrower or any of its Subsidiaries after
such sale or other disposition thereof, including, without limitation, pension
and other post-employment benefit liabilities and liabilities related to
environmental matters or against any indemnification obligations associated with
such transaction (provided, that, to the extent and at the time any such amounts
are released from such reserve, such amounts shall constitute Net Cash Proceeds)
and (iii) the principal amount, premium or penalty, if any, interest and other
amounts on any Indebtedness for borrowed money which is secured by the asset
sold in such Asset Sale or the asset relating to such Recovery Event, as
applicable, and which is required to be repaid with such proceeds (other than
any such Indebtedness assumed by the purchaser of such asset); provided,
however, that, if (x) the Borrower shall deliver a certificate of a Financial
Officer to the Administrative Agent at the time of receipt thereof setting forth
the Borrower's intent to reinvest such proceeds in productive assets of a kind
used or useful in the business of the Borrower and its Subsidiaries within 365
days of receipt of such proceeds and (y) no Default or Event of Default shall
have occurred and shall be continuing at the time of such certificate or at the
proposed time of the application of such proceeds, such proceeds shall not
constitute Net Cash Proceeds except to the extent not so used or contractually
committed to be used at the end of such 365-day period, at which time such
proceeds shall be deemed to be Net Cash Proceeds; and (b) with respect to any
issuance or incurrence of Indebtedness or any issuance or sale of Equity
Interests, the cash proceeds thereof, net of all taxes and fees (including
investment banking fees, underwriting discounts, commissions, costs and other
out-of-pocket expenses and other customary expenses) incurred in connection
therewith.
"Not Otherwise Applied" shall mean, with reference to any amount of Net
Cash Proceeds of any transaction or event or of Excess Cash Flow, that such
amount was not required to be applied to prepay the Loans pursuant to Section
2.13(c).
"Obligations" the unpaid principal of and interest on (including interest
accruing after the maturity of the Loans (including the Incremental Term Loans)
and Reimbursement Obligations and interest accruing after the filing of any
petition in bankruptcy, or the commencement of any insolvency, reorganization or
like proceeding, relating to the Borrower, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding) the Loans
and all other obligations and liabilities of the Borrower to the Administrative
Agent or to any Lender (or, in the case of Specified Hedging Agreements, any
affiliate of any Lender), whether direct or indirect, absolute or contingent,
due or to become due, or now existing or hereafter incurred, which may arise
under, out of, or in connection with, this Agreement, any other Loan Document,
the Letters of Credit, any Specified Hedging Agreement or any other document
made, delivered or given in connection herewith or therewith, whether on account
of principal, interest, reimbursement obligations, fees, indemnities, costs,
expenses (including all fees, charges and disbursements of counsel to the
Administrative Agent or to any Lender that are required to be paid by the
Borrower pursuant hereto) or otherwise.
"OID" shall have the meaning assigned to such term in Section 2.23(b).
"Other Taxes" shall mean any and all present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies arising
from any payment made under any Loan
18
Document or from the execution, delivery or enforcement of, or otherwise with
respect to, any Loan Document.
"Other Term Loans" shall have the meaning assigned to such term in Section
2.23(a).
"Parent" shall mean any direct or indirect parent of Holdings.
"Participant" shall have the meaning assigned to such term in Section
9.4(c).
"Patriot Act" shall have the meaning assigned to such term in Section 9.17.
"PBGC" shall mean the Pension Benefit Guaranty Corporation referred to and
defined in ERISA.
"Perfection Certificate" shall mean the Perfection Certificate
substantially in the form of Exhibit D, prepared by the Borrower.
"Permitted Acquisition" shall have the meaning assigned to such term in
Section 6.4(g).
"Permitted Cure Securities" shall have the meaning assigned to such term in
Article VII.
"Permitted Investments" shall mean:
(a) direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United States of
America (or by any agency thereof to the extent such obligations are backed
by the full faith and credit of the United States of America) or, in the
case of a Foreign Subsidiary, marketable direct obligations issued by or
unconditionally guaranteed by the government of the country of such Foreign
Subsidiary or backed by the full faith and credit of the government of the
country of such Foreign Subsidiary, in each case maturing within one year
from the date of acquisition thereof;
(b) investments in commercial paper maturing within one year from the
date of acquisition thereof and having, at such date of acquisition, one of
the two highest credit ratings obtainable from Standard & Poor's Ratings
Service or from Xxxxx'x Investors Service, Inc. or carrying an equivalent
rating by a nationally recognized rating agency, if both of the two named
rating agencies cease publishing ratings of investments;
(c) investments in certificates of deposit, Eurodollar deposits,
overnight bank deposits or banker's acceptances, demand deposits and time
deposits maturing within one year from the date of acquisition thereof
issued or guaranteed by or placed with, and money market deposit accounts
issued or offered by, the Administrative Agent or any domestic office of
any Lender or any other commercial bank organized under the laws of the
United States of America or any State thereof that has a combined capital
and surplus and undivided profits of not less than $500,000,000 or issued
by or offered by a bank organized under the laws of any foreign country
recognized by the United States the long-term debt of which is rated at
least "A" or the equivalent by S&P or "A" or the equivalent thereof by
Moody's having at the date of acquisition thereof combined capital and
surplus of not less than $500,000,000 or the foreign currency equivalent
thereof;
(d) fully collateralized repurchase agreements with a term of not more
than 30 days for securities described in clause (a) above and entered into
with a financial institution satisfying the criteria of clause (c) above;
19
(e) investments in marketable direct obligations issued by any state
of the United States of America or any political subdivision of any such
state or any public instrumentality thereof maturing within one year from
the date of acquisition thereof and having, at such date of acquisition,
one of the two highest credit ratings obtainable from Standard & Poor's
Ratings Service or from Xxxxx'x Investors Service, Inc.;
(f) investments in "money market funds" within the meaning of Rule
2a-7 of the Investment Company Act of 1940, as amended, substantially all
of whose assets are invested in investments of the type described in
clauses (a) through (e) above;
(g) other short-term investments utilized by Foreign Subsidiaries in
accordance with normal investment practices for cash management in
investments of a type analogous to the foregoing; and
(h) solely with respect to any Foreign Subsidiary, non-Dollar
denominated (i) certificates of deposit of, bankers acceptances of, or time
deposits with, any commercial bank which is organized and existing under
the laws of the country in which such Foreign Subsidiary maintains its
chief executive office and principal place of business provided such
country is a member of the Organization for Economic Cooperation and
Development, and whose short-term commercial paper rating from S&P is at
least A-1 or the equivalent thereof or from Xxxxx'x is at least P-1 or the
equivalent thereof (any such bank being an "Approved Foreign Bank") and
maturing within twelve (12) months of the date of acquisition and (ii)
equivalents of demand deposit accounts which are maintained with an
Approved Foreign Bank.
"Permitted Investors" shall mean (a) the Sponsor, (b) the other holders of
Equity Interests in Holdings on the Closing Date and, to the extent approved by
the Administrative Agent (such approval not to be unreasonably withheld) other
persons who, within 45 days after the Closing Date, become holders of Equity
Interests in Holdings (and any Affiliate of any such person under this clause
(b)) and (c) the directors, executive officers and other management employees of
Holdings or the Borrower on the Closing Date.
"Permitted Subordinated Bridge Loan Refinancing" shall mean the repayment
in full of the Subordinated Bridge Loans from the net proceeds of a
substantially concurrent issuance of (i) Subordinated Indebtedness or
Subordinated Mezzanine Indebtedness or (ii) non-mandatorily redeemable common
Equity Securities of Holdings.
"person" shall mean any natural person, corporation, business trust, joint
venture, association, company, limited liability company, partnership,
Governmental Authority or other entity.
"Plan" shall mean any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or
any ERISA Affiliate is (or, if such plan were terminated, would under Section
4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of
ERISA.
"Pricing Grid" the table set forth below:
20
EURODOLLAR SPREAD- ABR SPREAD-
REVOLVING LOANS AND SWINGLINE REVOLVING LOANS AND SWINGLINE
LEVERAGE RATIO LOANS LOANS
-------------- ----------------------------- -----------------------------
Category 1 3.00% 2.00%
Greater than 5.00 to 1.00
Category 2
Greater than 4.50 to 1.00, but 2.75% 1.75%
less than or equal to 5.00 to
1.00
Category 3 2.50% 1.50%
Greater than 4.00 to 1.00, but
less than or equal to 4.00 to
1.00
Category 4 2.25% 1.75%
Less than or equal to 4.00 to
1.00
Each change in the Applicable Percentage resulting from a change in the
Leverage Ratio shall be effective with respect to all Loans and Letters of
Credit outstanding on and after the date (the "Adjustment Date") of delivery to
the Administrative Agent of the financial statements and certificates required
by Section 5.4(a) or (b) and Section 5.4(c), respectively, indicating such
change, and until the date immediately preceding the next date of delivery of
such financial statements and certificates indicating another such change.
Notwithstanding the foregoing, until the Borrower shall have delivered the
financial statements and certificates required by Section 5.4(a) and Section
5.4(d), respectively, for the fiscal period ended on or about December 31, 2004,
the Leverage Ratio shall be deemed to be in Category 1 for purposes of
determining the Applicable Percentage. In addition, (a) at any time during which
the Borrower has failed to deliver the financial statements and certificates
required by Section 5.4(a) or (b) and Section 5.4(c), respectively, or (b) at
any time after the occurrence and during the continuance of an Event of Default,
the Administrative Agent or the Required Lenders may require that the Leverage
Ratio shall be deemed to be in Category 1 for purposes of determining the
Applicable Percentage. The Applicable Percentage may be increased from time to
time by .25% per annum as provided for in Section 2.6(c).
"Pro Forma Basis" shall mean, with respect to compliance with any test or
covenant hereunder, compliance with such covenant or test after giving effect to
any proposed Permitted Acquisition, the HealthScribe Acquisition or Asset Sale
(including pro forma adjustments arising out of events which are directly
attributable to the proposed Permitted Acquisition, the HealthScribe Acquisition
or Asset Sale, are factually supportable and are expected to have a continuing
impact, in each case as reasonably determined by the Borrower and as certified
by a Financial Officer of the Borrower and approved by the Administrative Agent)
using, for purposes of determining such compliance, the historical financial
statements of all entities or assets so acquired or sold or to be acquired or
sold and the consolidated financial statements of the Borrower and its
Subsidiaries which shall be reformulated as if such Permitted Acquisitions, the
HealthScribe Acquisition or Asset Sale, and all other Permitted Acquisitions,
the HealthScribe Acquisition or Asset Sales that have been consummated during
the period, and any Indebtedness or other liabilities incurred or repaid in
connection with any such Permitted Acquisitions,
21
the HealthScribe Acquisition or Asset Sale had been consummated and incurred or
repaid at the beginning of such period (and if such Indebtedness has a floating
or formula rate, shall have an implied rate of interest for the applicable
period for purposes of this definition determined by utilizing the rate which is
or would be in effect with respect to such Indebtedness as at the relevant date
of determination); provided, that, in connection with any Permitted Acquisition
and the HealthScribe Acquisition, the Borrower shall be permitted to assume cost
savings certified by a Responsible Officer of the Borrower and expected to be
achieved within a twelve-month period following the closing of such Permitted
Acquisition or the HealthScribe Acquisition, as the case may be if the
consolidated balance sheet of such acquired Person and its consolidated
Subsidiaries as at the end of the period preceding the acquisition of such
Person and the related consolidated statements of income and stockholders'
equity and of cash flows for the period in respect of which Consolidated EBITDA
is to be calculated (x) have been previously provided to the Administrative
Agent and (y) either (1) have been reported on without a qualification arising
out of the scope of the audit by independent certified public accountants of
nationally recognized standing or (2) have been found acceptable by the
Administrative Agent. For purposes of determining compliance with the covenants
set forth in Sections 6.11 and 6.12 (and the computations made for purposes of
determining the Applicable Percentage), all calculations shall be made on a Pro
Forma Basis after giving effect to the Transactions, treating each as if it were
a Permitted Acquisition (subject, in the case of the Transactions, to the
limitations contained in clause (a)(iv) of the definition of Consolidated
EBITDA).
"Pro Forma Compliance" shall mean, at any date of determination, that the
Borrower shall be in pro forma compliance with the covenants set forth in
Sections 6.11 and 6.12 as of the date of such determination or the last day of
the most recent fiscal quarter-end, as the case may be (computed on the basis of
(a) balance sheet amounts as of such date and (b) income statement amounts for
the most recently completed period of four consecutive fiscal quarters for which
financial statements shall have been delivered to the Administrative Agent and
calculated on a Pro Forma Basis in respect of the event giving rise to such
determination).
"Pro Rata Percentage" shall mean, of any Revolving Credit Lender at any
time shall mean the percentage of the Total Revolving Credit Commitment
represented by such Lender's Revolving Credit Commitment. In the event the
Revolving Credit Commitments shall have expired or been terminated, the Pro Rata
Percentages shall be determined on the basis of the Revolving Credit Commitments
most recently in effect.
"Public Equity Offering" shall mean an underwritten public offering of
common stock of, and by, Holdings or Parent pursuant to a registration statement
filed with the SEC in accordance with the Securities Act of 1933, as amended.
"Recovery Event" shall mean any settlement of or payment in respect of any
property or casualty insurance claim or any condemnation proceeding relating to
any asset of any Loan Party.
"Register" shall have the meaning assigned to such term in Section 9.4(b).
"Regulation T" shall mean Regulation T of the Board as from time to time in
effect and all official rulings and interpretations thereunder or thereof.
"Regulation U" shall mean Regulation U of the Board as from time to time in
effect and all official rulings and interpretations thereunder or thereof.
"Regulation X" shall mean Regulation X of the Board as from time to time in
effect and all official rulings and interpretations thereunder or thereof.
22
"Reimbursement Obligation" shall mean the obligation of the Borrower to
reimburse the Issuing Bank pursuant to Section 2.22(e) for amounts drawn under
Letters of Credit.
"Related Parties" shall mean, with respect to any specified person, such
person's Affiliates and the respective directors, officers, employees, agents
and advisors of such person and such person's Affiliates.
"Release" shall mean any release, spill, emission, leaking, dumping,
injection, pouring, deposit, disposal, discharge, dispersal, leaching or
migration into or through the environment or within or upon any building,
structure, facility or fixture.
"Repayment Date" shall have the meaning assigned to such term in Section
2.11.
"Required Lenders" shall mean, at any time, the holders of more than 50% of
(a) until the Closing Date, the Commitments then in effect and (b) thereafter,
the sum of (i) the aggregate unpaid principal amount of the Term Loans then
outstanding and (ii) the Total Revolving Credit Commitments then in effect or,
if the Revolving Credit Commitments have been terminated, the total Revolving
Credit Exposure of all Lenders at such time; provided, that the unused Term
Commitment, unused Revolving Credit Commitment of, and the portion of the Term
Loans and Revolving Credit Exposure held or deemed held by, any Defaulting
Lender shall be excluded for purposes of making a determination of Required
Lenders.
"Responsible Officer" of any person shall mean any executive officer or
Financial Officer of such person and any other officer or similar official
thereof responsible for the administration of the obligations of such person in
respect of this Agreement.
"Restricted Indebtedness" shall mean Indebtedness of Holdings, the Borrower
or any Subsidiary, the payment, prepayment, repurchase or defeasance of which is
restricted under Section 6.9(b).
"Restricted Payment" shall mean any dividend or other distribution (whether
in cash, securities or other property) with respect to any Equity Interests in
Holdings, the Borrower or any Subsidiary, or any payment (whether in cash,
securities or other property), including any sinking fund or similar deposit, on
account of the purchase, redemption, retirement, acquisition, cancellation or
termination of any Equity Interests in Holdings, the Borrower or any Subsidiary
or any option, warrant or other right to acquire any such Equity Interests in
Holdings, the Borrower or any Subsidiary.
"Revolving Credit Borrowing" shall mean a Borrowing comprised of Revolving
Loans.
"Revolving Credit Commitment" shall mean, as to any Lender, the obligation
of such Lender, if any, to make Revolving Credit Loans and participate in
Swingline Loans and Letters of Credit in an aggregate principal and/or face
amount not to exceed the amount set forth under the heading "Revolving Credit
Commitment" opposite such Lender's name on Schedule 2.1 or in the Assignment and
Assumption pursuant to which such Lender became a party hereto, as the same may
be changed from time to time pursuant to the terms hereof.
"Revolving Credit Exposure" shall mean, with respect to any Lender at any
time, the aggregate principal amount at such time of all outstanding Revolving
Loans of such Lender, plus the aggregate amount at such time of such Lender's
L/C Exposure, plus the aggregate amount at such time of such Lender's Swingline
Exposure. In the case of Revolving Loans denominated in Alternative Currencies,
such amount shall be calculated using the Dollar Equivalent thereof.
23
"Revolving Credit Lender" shall mean a Lender with a Revolving Credit
Commitment or an outstanding Revolving Loan.
"Revolving Credit Maturity Date" shall mean November 5, 2009.
"Revolving Loans" shall mean the revolving loans made by the Lenders to the
Borrower pursuant to clause (ii) of Section 2.1(a).
"S&P" shall mean Standard & Poor's Ratings Services.
"SEC" shall mean the Securities and Exchange Commission, any successor
thereto and any analogous Governmental Authority.
"Second Priority Basis" shall mean the subordination of the priority of any
Liens securing Subordinated Mezzanine Indebtedness and guarantees thereof to the
priority of Liens securing the Obligations and guarantees thereof pursuant to
the provisions of an intercreditor agreement (a) substantially in the form of
Exhibit G hereto if the Subordinated Mezzanine Indebtedness is issued within
ninety (90) days of the date hereof and (b) in a form approved by the
Administrative Agent, the Syndication Agent and the Required Lenders if the
Subordinated Mezzanine Indebtedness is issued thereafter.
"Secured Parties" shall have the meaning assigned to such term in the
Guarantee and Collateral Agreement.
"Security Documents" shall mean the Mortgages, the Guarantee and Collateral
Agreement and each of the security agreements, mortgages and other instruments
and documents executed and delivered pursuant to any of the foregoing or
pursuant to Section 5.9.
"Senior Secured Leverage Ratio" shall mean, on any date, the ratio of the
sum of the outstanding principal amount of Loans and other senior secured
Indebtedness of the Borrower and its Subsidiaries on a consolidated basis on
such date to Consolidated EBITDA for the period of four consecutive fiscal
quarters most recently ended on or prior to such date.
"Specified Hedging Agreement" shall mean any Hedging Agreement entered into
by the Borrower and any Lender or affiliate thereof.
"Sponsor" shall mean Warburg Pincus Private Equity VIII, L.P., Warburg
Pincus International Partners, L.P., Xxxxx Private Equity Investors LP and their
respective Affiliates.
"Subordinated Bridge Loans" shall mean the subordinated bridge loans made
to the Borrower pursuant to the Subordinated Bridge Loan Agreement.
"Subordinated Bridge Loan Agreement" shall mean the Term Loan Agreement
dated as of the date hereof among the Borrower, Holdings, the lenders from time
to time party thereto and JPMCB, as administrative agent, together with all
instruments and other agreements entered into by the Borrower, Holdings or any
guarantors thereof in connection therewith.
"Subordinated Indebtedness" shall mean Indebtedness of the Borrower (i)
which does not require the issuer thereof or any other obligor thereon or any
Subsidiary thereof to maintain any specified financial condition or performance
(other than as a condition to the taking of certain actions), (ii) which is
unsecured, (iii) which contains no scheduled principal payments prior to the
date which is six months
24
after the Term Loan Termination Date and no mandatory prepayments other than
customary asset sale and change of control prepayments (the terms of which
provide that the Obligations shall be paid prior to any such prepayment of such
Indebtedness) and (iv) which contains subordination provisions reasonably
satisfactory to the Administrative Agent, together with any exchange notes or
any replacement notes issued under the applicable Subordinated Indebtedness
Agreement. Subordinated Indebtedness may be issued only if (x) no Default or
Event of Default has occurred or will result therefrom and (ii) the Borrower
will be in Pro Forma Compliance after giving effect thereto.
"Subordinated Indebtedness Agreement" shall mean the indenture, note
purchase agreement, loan agreement or similar agreement entered into by the
Borrower and certain of the Guarantors in connection with the issuance of the
Subordinated Indebtedness or Subordinated Mezzanine Indebtedness, together with
all instruments and other agreements entered into by the Borrower or such
Guarantor in connection therewith.
"Subordinated Mezzanine Indebtedness" shall mean Indebtedness issued in a
mezzanine financing transaction that satisfies the criteria for Subordinated
Indebtedness except that (i) such Indebtedness may be secured by the Collateral
to the extent permitted by Section 6.2(p) and (ii) such Indebtedness may contain
financial maintenance covenants of the types, and calculated in the manner of,
Sections 6.10, 6.11 and 6.12 (and each such covenant level shall be at least
0.5x to 1.0 more favorable to the Borrower than the applicable covenant level
required by this Agreement).
"subsidiary" shall mean, with respect to any person (herein referred to as
the "parent"), any corporation, partnership, association or other business
entity of which securities or other ownership interests representing more than
50% of the equity or more than 50% of the ordinary voting power or more than 50%
of the general partnership interests are, at the time any determination is being
made, owned, controlled or held by the parent or one or more subsidiaries of the
parent or a combination thereof.
"Subsidiary" shall mean any subsidiary of the Borrower.
"Subsidiary Guarantor" shall mean each Subsidiary listed on Schedule
1.1(a), and each other Subsidiary that is or becomes a party to the Guarantee
and Collateral Agreement.
"Swingline Commitment" shall mean the commitment of the Swingline Lender to
make loans pursuant to Section 2.21, as the same may be reduced from time to
time pursuant to Section 2.9 or 2.21.
"Swingline Exposure" shall mean at any time the aggregate principal amount
at such time of all outstanding Swingline Loans. The Swingline Exposure of any
Revolving Credit Lender at any time shall equal its Pro Rata Percentage of the
aggregate Swingline Exposure at such time.
"Swingline Lender" shall mean JPMorgan Chase Bank, in its capacity as
lender of Swingline Loans hereunder.
"Swingline Loan" shall mean any loan made by the Swingline Lender pursuant
to Section 2.21.
"Syndication Agent" shall have the meaning assigned to such term in the
preamble hereto.
"Synthetic Lease" shall mean, as to any person, any lease (including leases
that may be terminated by the lessee at any time) of any property (whether real,
personal or mixed) (a) that is accounted for as an operating lease under GAAP
and (b) in respect of which the lessee retains or obtains ownership of the
property so leased for U.S. federal income tax purposes, other than any such
lease under which such person is the lessor.
25
"Synthetic Lease Obligations" shall mean, as to any person, an amount equal
to the sum of (a) the obligations of such person to pay rent or other amounts
under any Synthetic Lease which are attributable to principal and, without
duplication, (b) the amount of any purchase price payment under any Synthetic
Lease assuming the lessee exercises the option to purchase the leased property
at the end of the lease term.
"Synthetic Purchase Agreement" shall mean any swap, derivative or other
agreement or combination of agreements pursuant to which Holdings, the Borrower
or any Subsidiary is or may become obligated to make (a) any payment in
connection with a purchase by any third party from a person other than Holdings,
the Borrower or any Subsidiary of any Equity Interest or Restricted Indebtedness
of Holdings, the Borrower or a Subsidiary or (b) any payment (other than on
account of a permitted purchase by it of any Equity Interest or Restricted
Indebtedness) the amount of which is determined by reference to the price or
value at any time of any Equity Interest or Restricted Indebtedness of Holdings,
the Borrower or a Subsidiary; provided, that no phantom stock or similar plan
providing for payments only to current or former directors, officers or
employees of Holdings, the Borrower or the Subsidiaries (or to their heirs or
estates) shall be deemed to be a Synthetic Purchase Agreement.
"Taxes" shall mean any and all present or future taxes, levies, imposts,
duties, deductions, charges, liabilities or withholdings imposed by any
Governmental Authority.
"Tax Payments" shall mean net payments in cash by the Loan Parties in
respect of Taxes pursuant to the Tax Sharing Agreement.
"Tax Sharing Agreement" shall mean the Tax Sharing Agreement dated as of
the Closing Date among Holdings, Parent, the Borrower and certain Subsidiaries.
"Term Loan" shall have the meaning assigned to such term in Section 2.1(a).
Unless the context shall otherwise require, the term "Term Loans" shall include
Incremental Term Loans.
"Term Loan Borrowing" shall mean a Borrowing comprised of Term Loans.
"Term Loan Commitment" shall mean, with respect to each Lender, the
commitment of such Lender to make Term Loans hereunder as set forth on Schedule
2.1, or in the Assignment and Assumption pursuant to which such Lender assumed
its Term Loan Commitment, as applicable, as the same may be (i) reduced from
time to time pursuant to Section 2.9 and (ii) reduced or increased from time to
time pursuant to assignments by or to such Lender pursuant to Section 9.4. The
original aggregate amount of the Term Loan Commitments is $75,000,000.
"Term Loan Maturity Date" shall mean November 5, 2010.
"Term Percentage": as to any Lender at any time, the percentage which such
Lender's Term Loan Commitment then constitutes of the aggregate Term Loan
Commitments (or, at any time after the Closing Date, the percentage which the
principal amount of such Lender's Term Loan then outstanding constitutes of the
aggregate principal amount of the Term Loans then outstanding).
"Total Revolving Credit Commitment" shall mean, at any time, the aggregate
amount of the Revolving Credit Commitments, as in effect at such time. The
initial Total Revolving Credit Commitment is $25,000,000.
"Trading With the Enemy Act" shall have the meaning assigned to such term
in Section 3.26.
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"Transactions" shall mean, collectively, (a) the execution, delivery and
performance by Holdings and the Borrower of the Acquisition Agreement and the
consummation of the Acquisition and the Merger, (b) the execution, delivery and
performance by the Loan Parties of the Loan Documents to which they are a party
and, in the case of the Borrower, the making of the initial Borrowings
hereunder, (c) the execution, delivery and performance by the Loan Parties of
the Subordinated Bridge Loan Agreement and related documents to which they are a
party, (d) the repayment of all amounts outstanding or due under, and the
termination of, the Existing Credit Agreement, (e) the Holdings Equity
Contribution and (e) the payment of related fees and expenses.
"Type", when used in respect of any Loan or Borrowing, shall refer to the
Rate by reference to which interest on such Loan or on the Loans comprising such
Borrowing is determined. For purposes hereof, the term "Rate" shall include the
Eurodollar Rate and the Alternate Base Rate.
"Uniform Customs" shall have the meaning assigned to such term in Section
9.7.
"wholly owned Subsidiary" of any person shall mean a subsidiary of such
person of which securities (except for directors' qualifying shares and other de
minimis ownership interests required to be owned under foreign law by local
residents) or other ownership interests representing 100% of the Equity
Interests are, at the time any determination is being made, owned, controlled or
held by such person or one or more wholly owned Subsidiaries of such person or
by such person and one or more wholly owned Subsidiaries of such person.
"Withdrawal Liability" shall mean liability to a Multiemployer Plan as a
result of a complete or partial withdrawal from such Multiemployer Plan, as such
terms are defined in Part I of Subtitle E of Title IV of ERISA.
Section 1.2. Terms Generally. The definitions in Section 1.1 shall apply
equally to both the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words "include", "includes" and "including" shall
be deemed to be followed by the phrase "without limitation". The word "will"
shall be construed to have the same meaning and effect as the word "shall"; and
the words "asset" and "property" shall be construed as having the same meaning
and effect and to refer to any and all tangible and intangible assets and
properties, including cash, securities, accounts and contract rights. All
references herein to Articles, Sections, Exhibits and Schedules shall be deemed
references to Articles and Sections of, and Exhibits and Schedules to, this
Agreement unless the context shall otherwise require. Except as otherwise
expressly provided herein, (a) any reference in this Agreement to any Loan
Document shall mean such document as amended, restated, supplemented or
otherwise modified from time to time and (b) all terms of an accounting or
financial nature shall be construed in accordance with GAAP, as in effect from
time to time; provided, however, that if, before or after any change in GAAP
occurs, the Borrower notifies the Administrative Agent that the Borrower wishes
to amend any covenant in Article VI or any related definition to eliminate the
effect of any such change in GAAP occurring after the date of this Agreement on
the operation of such covenant (or if the Administrative Agent notifies the
Borrower that the Required Lenders wish to amend Article VI or any related
definition for such purpose), then the Borrower's compliance with such covenant
(and the computations made for purposes of determining the Applicable
Percentage) shall be determined on the basis of GAAP in effect immediately
before the relevant change in GAAP became effective, until either such notice is
withdrawn or such covenant is amended in a manner satisfactory to the Borrower
and the Required Lenders.
Section 1.3. Pro Forma Calculations. With respect to any period during
which any Permitted Acquisition, the HealthScribe Acquisition or any Asset Sale
occurs as permitted pursuant to the terms hereof, the Leverage
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Ratio and the Interest Coverage Ratio shall be calculated with respect to such
period and such Permitted Acquisition, the HealthScribe Acquisition or such
Asset Sale on a Pro Forma Basis.
Section 1.4. Classification of Loans and Borrowings. For purposes of this
Agreement, Loans may be classified and referred to by Class (e.g., a "Revolving
Loan") or by Type (e.g., a "Eurodollar Loan") or by Class and Type (e.g., a
"Eurodollar Revolving Loan"). Borrowings also may be classified and referred to
by Class (e.g., a "Revolving Borrowing") or by Type (e.g., a "Eurodollar
Borrowing") or by Class and Type (e.g., a "Eurodollar Revolving Borrowing").
ARTICLE II
The Credits
Section 2.1. Commitments. (a) Subject to the terms and conditions and
relying upon the representations and warranties herein set forth, each Lender
agrees, severally and not jointly, (i) to make a term loan to the Borrower in
Dollars (a "Term Loan") on the Closing Date in a principal amount not to exceed
its Term Loan Commitment and (ii) to make Revolving Loans to the Borrower in
Dollars, at any time and from time to time on or after the date hereof and until
the earlier of the Revolving Credit Maturity Date and the termination of the
Revolving Credit Commitment of such Lender in accordance with the terms hereof,
in an aggregate principal amount at any time outstanding that will not result in
such Lender's Revolving Credit Exposure exceeding such Lender's Revolving Credit
Commitment. Within the limits set forth in clause (ii) of the preceding sentence
and subject to the terms, conditions and limitations set forth herein, the
Borrower may borrow, pay or prepay and reborrow Revolving Loans. Amounts paid or
prepaid in respect of Term Loans may not be reborrowed.
(b) Incremental Term Loans. Each Lender having an Incremental Term Loan
Commitment hereby agrees, severally and not jointly, on the terms and subject to
the conditions set forth herein and in the applicable Incremental Term Loan
Assumption Agreement and in reliance on the representations and warranties set
forth herein and in the other Loan documents, to make Incremental Term Loans to
the Borrower, in an aggregate principal amount not to exceed its Incremental
Term Loan Commitment. Amounts paid or prepaid in respect of Incremental Term
Loans may not be reborrowed.
Section 2.2. Loans. (a) Each Loan (other than Swingline Loans) shall be
made as part of a Borrowing consisting of Loans made by the Lenders ratably in
accordance with their applicable Commitments; provided, however, that the
failure of any Lender to make any Loan shall not in itself relieve any other
Lender of its obligation to lend hereunder (it being understood, however, that
no Lender shall be responsible for the failure of any other Lender to make any
Loan required to be made by such other Lender). Except for Loans deemed made
pursuant to Section 2.2(f) and Swingline Loans, the Loans comprising any
Borrowing shall be in an aggregate principal amount that is (i) (A) in the case
of a Revolving Borrowing, an integral multiple of $1,000,000 and not less than
$1,000,000 and (B) in the case of a Term Loan Borrowing or an Incremental Term
Loan Borrowing, an integral multiple of $1,000,000 and not less than $5,000,000
(except with respect to any Incremental Term Loan Borrowing, to the extent
otherwise provided in the related Incremental Term Loan Assumption Agreement) or
(ii) in the case of any Borrowing, equal to the remaining available balance of
the applicable Commitments.
(b) Subject to Section 2.8, each Borrowing shall be comprised entirely of
Eurodollar Loans or ABR Loans, as the Borrower may request pursuant to Section
2.3. Each Lender may at its option make any Eurodollar Loan by causing any
domestic or foreign branch or Affiliate of such Lender to make such Loan;
provided, that any exercise of such option shall not affect the obligation of
the Borrower to repay such Loan in accordance with the terms of this Agreement.
Borrowings of more than one Type may be outstanding at the same time; provided,
however, that the Borrower shall not be entitled to request any
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Borrowing that, if made, would result in more than ten (10) Eurodollar
Borrowings outstanding hereunder at any time. For purposes of the foregoing,
Borrowings having different Interest Periods, regardless of whether they
commence on the same date, shall be considered separate Borrowings.
(c) Except with respect to Loans made pursuant to Section 2.2(f) and
Swingline Loans, each Lender shall make each Loan to be made by it hereunder on
the proposed date thereof by wire transfer of immediately available funds to the
Funding Office not later than 12:00 (noon), New York City Time, and the
Administrative Agent shall promptly transfer the amounts so received to the
account designated by the Borrower in the applicable Borrowing Request or, if a
Borrowing shall not occur on such date because any condition precedent herein
specified shall not have been met, return the amounts so received to the
respective Lenders.
(d) Unless the Administrative Agent shall have received notice from a
Lender prior to the date of any Borrowing that such Lender will not make
available to the Administrative Agent such Lender's portion of such Borrowing,
the Administrative Agent may assume that such Lender has made such portion
available to the Administrative Agent on the date of such Borrowing in
accordance with paragraph (c) above and the Administrative Agent may, in
reliance upon such assumption, make available to the Borrower on such date a
corresponding amount. If the Administrative Agent shall have so made funds
available then, to the extent that such Lender shall not have made such portion
available to the Administrative Agent, such Lender and the Borrower severally
agree to repay to the Administrative Agent forthwith on demand such
corresponding amount together with interest thereon, for each day from the date
such amount is made available to the Borrower until the date such amount is
repaid to the Administrative Agent at (i) in the case of the Borrower, the
interest rate applicable at the time to the Loans comprising such Borrowing and
(ii) in the case of such Lender, a rate determined by the Administrative Agent
to represent its cost of overnight or short-term funds (which determination
shall be conclusive absent manifest error). If such Lender shall repay to the
Administrative Agent such corresponding amount, such amount shall constitute
such Lender's Loan as part of such Borrowing for purposes of this Agreement.
(e) Notwithstanding any other provision of this Agreement, the Borrower
shall not be entitled to request any Revolving Credit Borrowing if the Interest
Period requested with respect thereto would end after the Revolving Credit
Maturity Date.
(f) If the Issuing Bank shall not have received from the Borrower the
payment required to be made by Section 2.22(e) within the time specified in such
Section, the Issuing Bank will promptly notify the Administrative Agent of the
L/C Disbursement and the Administrative Agent will promptly notify each
Revolving Credit Lender of such L/C Disbursement and its Pro Rata Percentage
thereof. Each Revolving Credit Lender shall pay by wire transfer of immediately
available funds to the Administrative Agent not later than 2:00 p.m., New York
City time, on such date (or, if such Revolving Credit Lender shall have received
such notice later than 12:00 (noon), New York City time, on any day, not later
than 10:00 a.m., New York City time, on the immediately following Business Day),
an amount equal to such Lender's Pro Rata Percentage of such L/C Disbursement
(it being understood that such amount shall be deemed to constitute an ABR
Revolving Loan of such Lender and such payment shall be deemed to have reduced
the L/C Exposure), and the Administrative Agent will promptly pay to the Issuing
Bank amounts so received by it from the Revolving Credit Lenders. The
Administrative Agent will promptly pay to the Issuing Bank any amounts received
by it from the Borrower pursuant to Section 2.22(e) prior to the time that any
Revolving Credit Lender makes any payment pursuant to this paragraph (f); any
such amounts received by the Administrative Agent thereafter will be promptly
remitted by the Administrative Agent to the Revolving Credit Lenders that shall
have made such payments and to the Issuing Bank, as their interests may appear.
If any Revolving Credit Lender shall not have made its Pro Rata Percentage of
such L/C Disbursement available to the Administrative Agent as provided above,
such Lender and the
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Borrower severally agree to pay interest on such amount, for each day from and
including the date such amount is required to be paid in accordance with this
paragraph to but excluding the date such amount is paid, to the Administrative
Agent for the account of the Issuing Bank at (i) in the case of the Borrower, a
rate per annum equal to the interest rate applicable to Revolving Loans pursuant
to Section 2.6(a), and (ii) in the case of such Lender, for the first such day,
the Federal Funds Effective Rate, and for each day thereafter, the Alternate
Base Rate.
Section 2.3. Borrowing Procedure. In order to request a Borrowing (other
than a Swingline Loan or a deemed Borrowing pursuant to Section 2.2(f), as to
which this Section 2.3 shall not apply), the Borrower shall hand deliver or fax
to the Administrative Agent (or give telephonic notice promptly confirmed by
written notice) a duly completed Borrowing Request (a) in the case of a
Eurodollar Borrowing, not later than 12:00 (noon), New York City Time, three
Business Days before a proposed Borrowing, and (b) in the case of an ABR
Borrowing, not later than 12:00 (noon), New York City time, one Business Day
before a proposed Borrowing. Each Borrowing Request shall be irrevocable, shall
be signed by or on behalf of the Borrower and shall specify the following
information: (i) whether the Borrowing then being requested is to be a Term Loan
Borrowing, an Incremental Term Loan Borrowing or a Revolving Credit Borrowing,
and whether such Borrowing is to be a Eurodollar Borrowing or an ABR Borrowing
(provided, that until the Administrative Agent shall have notified the Borrower
that the primary syndication of the Commitment has been completed (which notice
shall be given as promptly as practicable and, in any event, within 7 days after
the Closing Date), the Borrower shall not be permitted to request a Eurodollar
Borrowing); (ii) the date of such Borrowing (which shall be a Business Day);
(iii) the number and location of the account to which funds are to be disbursed;
(iv) the amount of such Borrowing; and (v) if such Borrowing is to be a
Eurodollar Borrowing, the Interest Period with respect thereto; provided,
however, that, notwithstanding any contrary specification in any Borrowing
Request, each requested Borrowing shall comply with the requirements set forth
in Section 2.2. If no election as to the Type of Borrowing is specified in any
such notice, then the requested Borrowing shall be an ABR Borrowing. If no
Interest Period with respect to any Eurodollar Borrowing is specified in any
such notice, then the Borrower shall be deemed to have selected an Interest
Period of one month's duration. The Administrative Agent shall promptly advise
the applicable Lenders of any notice given pursuant to this Section 2.3 (and the
contents thereof), and of each Lender's portion of the requested Borrowing.
Section 2.4. Evidence of Debt; Repayment of Loans. (a) The Borrower hereby
unconditionally promises to pay to each Lender, through the Administrative
Agent, (i) the principal amount of each Term Loan of such Lender as provided in
Section 2.11 and (ii) the then unpaid principal amount of each Revolving Loan of
such Lender on the Revolving Credit Maturity Date. The Borrower hereby promises
to pay to the Swingline Lender the then unpaid principal amount of each
Swingline Loan on the Revolving Credit Maturity Date.
(b) Each Lender shall maintain in accordance with its usual practice an
account or accounts evidencing the indebtedness of the Borrower to such Lender
resulting from each Loan made by such Lender from time to time, including the
amounts of principal and interest payable and paid to such Lender from time to
time under this Agreement.
(c) The Administrative Agent shall maintain accounts in which it will
record (i) the amount of each Loan made hereunder, the Type thereof and, if
applicable, the Interest Period applicable thereto, (ii) the amount of any
principal or interest due and payable or to become due and payable from the
Borrower to each Lender hereunder and (iii) the amount of any sum received by
the Administrative Agent hereunder from the Borrower or any Guarantor and each
Lender's share thereof.
(d) The entries made in the accounts maintained pursuant to paragraphs (b)
and (c) above shall be prima facie evidence of the existence and amounts of the
obligations therein recorded; provided,
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however, that the failure of any Lender or the Administrative Agent to maintain
such accounts or any error therein shall not in any manner affect the
obligations of the Borrower to repay the Loans in accordance with their terms.
(e) Any Lender may request that Loans made by it hereunder be evidenced by
a promissory note. In such event, the Borrower shall execute and deliver to such
Lender a promissory note payable to such Lender and its registered assigns and
in a form and substance reasonably acceptable to the Administrative Agent and
the Borrower. Notwithstanding any other provision of this Agreement, in the
event any Lender shall request and receive such a promissory note, the interests
represented by such note shall at all times (including after any assignment of
all or part of such interests pursuant to Section 9.4) be represented by one or
more promissory notes payable to the payee named therein or its registered
assigns.
Section 2.5. Fees. (a) The Borrower agrees to pay to each Lender, through
the Administrative Agent, on the last Business Day of March, June, September and
December in each year and on each date on which any Commitment of such Lender
shall expire or be terminated as provided herein, a commitment fee (a
"Commitment Fee") equal to 0.50% per annum on the daily unused amount of the
Commitments of such Lender (other than the Swingline Commitment) during the
preceding quarter (or other period commencing with the date hereof or ending
with the Revolving Credit Maturity Date or the date on which the Commitments of
such Lender shall expire or be terminated); provided that any commitment fee
accrued with respect to any of the Commitments of a Defaulting Lender during the
period prior to the time such Lender became a Defaulting Lender and unpaid at
such time shall not be payable by the Borrower so long as such Lender shall be a
Defaulting Lender except to the extent that such commitment fee shall otherwise
have been due and payable by the Borrower prior to such time; and provided,
further that no commitment fee shall accrue on any of the Commitments of a
Defaulting Lender so long as such Lender shall be a Defaulting Lender. All
Commitment Fees shall be computed on the basis of the actual number of days
elapsed in a year of 360 days. The Commitment Fee due to each Lender shall
commence to accrue on the date hereof and shall cease to accrue on the date on
which the Commitment of such Lender shall expire or be terminated as provided
herein. For purposes of calculating Commitment Fees only, no portion of the
Revolving Credit Commitments shall be deemed utilized as a result of outstanding
Swingline Loans.
(b) The Borrower agrees to pay to the Administrative Agent, for its own
account, the administration fees set forth in the Fee Letter at the times and in
the amounts specified therein (the "Administrative Agent Fees").
(c) The Borrower agrees to pay (i) to each Revolving Credit Lender, through
the Administrative Agent, on each Fee Payment Date a fee (an "L/C Participation
Fee") calculated on such Lender's Pro Rata Percentage of the daily aggregate L/C
Exposure (excluding the portion thereof attributable to unreimbursed L/C
Disbursements) during the preceding quarter (or shorter period commencing with
the date hereof or ending with the Revolving Credit Maturity Date or the date on
which all Letters of Credit have been canceled or have expired and the Revolving
Credit Commitments of all Lenders shall have been terminated) at a rate per
annum equal to the Applicable Percentage from time to time used to determine the
interest rate on Revolving Credit Borrowings comprised of Eurodollar Loans
pursuant to Section 2.6, and (ii) to the Issuing Bank, for its own account, a
fronting fee of 0.25% per annum on the undrawn and unexpired amount of each
Letter of Credit, payable quarterly in arrears on each Fee Payment Date after
the issuance date (the "Issuing Bank Fees"). All L/C Participation Fees and
Issuing Bank Fees shall be computed on the basis of the actual number of days
elapsed in a year of 360 days.
(d) All Fees shall be paid in Dollars on the dates due, in immediately
available funds, to the Administrative Agent for distribution, if and as
appropriate, among the Lenders, except that the Issuing
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Bank Fees shall be paid directly to the Issuing Bank. Once paid, none of the
Fees shall be refundable under any circumstances.
Section 2.6. Interest on Loans. (a) Subject to the provisions of Section
2.7, the Loans comprising each ABR Borrowing, including each Swingline Loan,
shall bear interest (computed on the basis of the actual number of days elapsed
over a year of 365 or 366 days, as the case may be, when the Alternate Base Rate
is determined by reference to the Prime Rate and over a year of 360 days at all
other times and calculated from and including the date of such Borrowing to but
excluding the date of repayment thereof) at a rate per annum equal to the
Alternate Base Rate plus the Applicable Percentage in effect from time to time.
(b) Subject to the provisions of Section 2.7, the Loans comprising each
Eurodollar Borrowing shall bear interest (computed on the basis of the actual
number of days elapsed over a year of 360 days) at a rate per annum equal to the
Eurodollar Rate for the Interest Period in effect for such Borrowing plus the
Applicable Percentage in effect from time to time.
(c) In the event that at the close of business on any day after December
20, 2004 the Facilities are rated less than B1 by Xxxxx'x and B+ by S&P, each
Applicable Percentage set forth in the Pricing Grid and in the definition of
"Applicable Percentage" shall increase by .25% per annum for such day. Each
Applicable Percentage set forth in the Pricing Grid and in the definition of
"Applicable Percentage" shall increase by .25% for each day on which the
Facilities are not rated by each of Xxxxx'x and S&P. Each Applicable Percentage
set forth in the Pricing Grid and in the definition of "Applicable Percentage"
shall not increase by more than .25% per annum pursuant to this paragraph (c).
(d) Interest on each Loan shall be payable to the applicable Lenders,
through the Administrative Agent, on the Interest Payment Dates applicable to
such Loan except as otherwise provided in this Agreement. The applicable
Alternate Base Rate or Eurodollar Rate for each Interest Period or day within an
Interest Period, as the case may be, shall be determined by the Administrative
Agent, and such determination shall be conclusive absent manifest error.
Section 2.7. Default Interest. Any amount (whether of principal, interest,
Fees or otherwise) not paid when due hereunder or under any other Loan Document
shall bear interest, to the extent permitted by law (after as well as before
judgment), payable on demand, (a) in the case of principal, at the rate
otherwise applicable thereto pursuant to Section 2.6 plus 2.00% per annum and
(b) in all other cases, at a rate per annum (computed on the basis of the actual
number of days elapsed over a year of 365 or 366 days, as the case may be, when
determined by reference to the Prime Rate and over a year of 360 days at all
other times) equal to the rate that would be applicable to an ABR Term Loan plus
2.00% per annum.
Section 2.8. Alternate Rate of Interest. In the event, and on each
occasion, that on the day two Business Days prior to the commencement of any
Interest Period for a Eurodollar Borrowing the Administrative Agent shall have
determined that dollar deposits in the principal amounts of the Loans comprising
such Borrowing are not generally available in the London interbank market, or
that the rates at which such dollar deposits are being offered will not
adequately and fairly reflect the cost to a majority in interest of the Lenders
participating or to participate in such Loan of making or maintaining its
Eurodollar Loan during such Interest Period, or that reasonable means do not
exist for ascertaining the Eurodollar Rate, the Administrative Agent shall, as
soon as practicable thereafter, give written or fax notice of such determination
to the Borrower and the Lenders. In the event of any such determination, until
the Administrative Agent shall have advised the Borrower and the Lenders that
the circumstances giving rise to such notice no longer exist, any request by the
Borrower for a Eurodollar Borrowing pursuant to Section 2.3 or 2.10 shall be
deemed to be a request for an ABR Borrowing. Each determination by the
Administrative Agent under this Section 2.8 shall be conclusive absent manifest
error.
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Section 2.9. Termination and Reduction of Commitments. (a) The Term Loan
Commitments shall automatically terminate at 5:00 p.m., New York City time, on
the Closing Date. The Revolving Credit Commitments, the Swingline Commitment and
the L/C Commitment shall automatically terminate on the Revolving Credit
Maturity Date. Notwithstanding the foregoing, all the Commitments shall
automatically terminate at 5:00 p.m., New York City time, on December 31, 2004,
if the initial Credit Event shall not have occurred by such time.
(b) Upon at least three Business Days' prior irrevocable written or fax
notice (or telephonic notice promptly confirmed by written notice) to the
Administrative Agent, the Borrower may at any time in whole permanently
terminate, or from time to time in part permanently reduce, the Term Loan
Commitments or the Revolving Credit Commitments; provided, however, that (i)
each partial reduction of the Term Loan Commitments or the Revolving Credit
Commitments shall be in an integral multiple of $1,000,000 and in a minimum
amount of $1,000,000 and (ii) the Total Revolving Credit Commitment shall not be
reduced to an amount that is less than the Aggregate Revolving Credit Exposure
at the time.
(c) Each reduction in the Term Loan Commitments or the Revolving Credit
Commitments hereunder shall be made ratably among the Lenders in accordance with
their respective applicable Commitments. The Borrower shall pay to the
Administrative Agent for the account of the applicable Lenders, on the date of
termination of the Commitments of any Class, all accrued and unpaid Commitment
Fees relating to such Class to but excluding the date of such termination.
Section 2.10. Conversion and Continuation of Borrowings. The Borrower shall
have the right at any time upon prior irrevocable notice to the Administrative
Agent (a) not later than 12:00 (noon), New York City time, one Business Day
prior to conversion, to convert any Eurodollar Borrowing denominated in Dollars
into an ABR Borrowing, (b) not later than 12:00 (noon), New York City time,
three Business Days prior to conversion or continuation, to convert any ABR
Borrowing into a Eurodollar Borrowing denominated in Dollars or to continue any
Eurodollar Borrowing as a Eurodollar Borrowing for an additional Interest
Period, and (c) not later than 12:00 (noon), New York City Time, three Business
Days prior to conversion, to convert the Interest Period with respect to any
Eurodollar Borrowing to another permissible Interest Period, subject in each
case to the following:
(i) until the Administrative Agent shall have notified the Borrower
that the primary syndication of the Commitments has been completed (which
notice shall be given as promptly as practicable and, in any event, within
seven (7) days after the Closing Date), no ABR Borrowing may be converted
into a Eurodollar Borrowing; provided, that after such seven-day (or
shorter) period, each ABR Borrowing converted to a Eurodollar Borrowing
shall have an initial Interest Period of thirty (30) days;
(ii) each conversion or continuation shall be made pro rata among the
Lenders in accordance with the respective principal amounts of the Loans
comprising the converted or continued Borrowing;
(iii) if less than all the outstanding principal amount of any
Borrowing shall be converted or continued, then each resulting Borrowing
shall satisfy the limitations specified in Sections 2.2(a) and 2.2(b)
regarding the principal amount and maximum number of Borrowings of the
relevant Type;
(iv) each conversion shall be effected by each Lender and the
Administrative Agent by recording for the account of such Lender the new
Loan of such Lender resulting from such conversion and reducing the Loan
(or portion thereof) of such Lender being converted by an
33
equivalent principal amount; accrued interest on any Eurodollar Loan (or
portion thereof) being converted shall be paid by the Borrower at the time
of conversion;
(v) if any Eurodollar Borrowing is converted at a time other than the
end of the Interest Period applicable thereto, the Borrower shall pay, upon
demand, any amounts due to the Lenders pursuant to Section 2.15; and
(vi) after the occurrence and during the continuance of a Default
specified in clause (b) or (c) of Article VII (without regard to any
applicable grace period in such clause (c)), no outstanding Loan
denominated in Dollars may be converted into, or continued as, a Eurodollar
Loan.
Each notice pursuant to this Section 2.10 shall be irrevocable and shall
refer to this Agreement and specify (i) the identity, currency denomination and
amount of the Borrowing that the Borrower requests be converted or continued,
(ii) whether such Borrowing is to be converted to or continued as a Eurodollar
Borrowing or an ABR Borrowing, (iii) if such notice requests a conversion, the
date of such conversion (which shall be a Business Day) and (iv) if such
Borrowing is to be converted to or continued as a Eurodollar Borrowing, the
Interest Period with respect thereto. If no Interest Period is specified in any
such notice with respect to any conversion to or continuation as a Eurodollar
Borrowing, the Borrower shall be deemed to have selected an Interest Period of
one month's duration. The Administrative Agent shall advise the Lenders of any
notice given pursuant to this Section 2.10 and of each Lender's portion of any
converted or continued Borrowing. If the Borrower shall not have given notice in
accordance with this Section 2.10 to continue any Eurodollar Borrowing into a
subsequent Interest Period (and shall not otherwise have given notice in
accordance with this Section 2.10 to convert such Borrowing), such Borrowing
shall, at the end of the Interest Period applicable thereto (unless repaid
pursuant to the terms hereof), automatically be converted into an ABR Borrowing.
Section 2.11. Repayment of Term Loan Borrowings. (a) The Borrower shall pay
to the applicable Lenders, through the Administrative Agent, on the dates set
forth below, or if any such date is not a Business Day, on the next preceding
Business Day (each such date being called a "Repayment Date"), a principal
amount of the Term Loans (as adjusted from time to time pursuant to Sections
2.11(c), 2.12, 2.13(e) and 2.23(d)) equal to such Lender's Term Percentage,
multiplied by a percentage of the original aggregate principal amount of the
Term Loans, as set forth below (together in each case with accrued and unpaid
interest on the principal amount to be paid to but excluding the date of such
payment):
Repayment Date Amount
-------------- ------
March 31, 2005 0.25%
June 30, 2005 0.25%
September 30, 2005 0.25%
December 31, 2005 0.25%
March 31, 2006 0.25%
June 30, 2006 0.25%
September 30, 2006 0.25%
December 31, 2006 0.25%
March 31, 2007 0.25%
June 30, 2007 0.25%
September 30, 2007 0.25%
December 31, 2007 0.25%
March 31, 2008 0.25%
June 30, 2008 0.25%
34
Repayment Date Amount
-------------- ------
September 30, 2008 0.25%
December 31, 2008 0.25%
March 31, 2009 0.25%
June 30, 2008 0.25%
September 30, 2009 0.25%
December 31, 2009 0.25%
March 31, 2010 0.25%
June 30, 2010 0.25%
September 30, 2010 0.25%
Term Loan Maturity Date 94.25%
(b) The Borrower shall pay to the Administrative Agent, for the account of
the Lenders, on each Incremental Term Loan Repayment Date, a principal amount of
the Other Term Loans (as adjusted from time to time pursuant to Sections
2.11(c), 2.12 and 2.13(e)) equal to the amount set forth for such date in the
Incremental Term Loan Assumption Agreement, together in each case with accrued
and unpaid interest on the principal amount to be paid to but excluding the date
of such payment.
(c) In the event and on each occasion that any Term Loan Commitment (other
than an Incremental Term Loan Commitment) shall be reduced or shall expire or
terminate other than as a result of the making of a Term Loan, the installments
payable on each Repayment Date shall be reduced pro rata by an aggregate amount
equal to the amount of such reduction, expiration or termination.
(d) To the extent not previously paid, all Term Loans shall be due and
payable on the Term Loan Maturity Date and all Incremental Term Loans shall be
due and payable on the Incremental Term Loan Maturity Date, together in each
case with accrued and unpaid interest on the principal amount to be paid to but
excluding the date of payment.
(e) All repayments pursuant to this Section 2.11 shall be subject to
Section 2.15, but shall otherwise be without premium or penalty.
Section 2.12. Optional Prepayments. (a) The Borrower shall have the right
at any time and from time to time to prepay any Borrowing, in whole or in part,
upon at least three Business Days' prior written or fax notice (or telephonic
notice promptly confirmed by written notice) in the case of Eurodollar Loans, or
written or fax notice (or telephonic notice promptly confirmed by written
notice) at least one Business Day prior to the date of prepayment in the case of
ABR Loans, to the Administrative Agent before 12:00 (noon), New York City Time;
provided, however, that each partial prepayment of Loans denominated in Dollars
shall be in an amount that is an integral multiple of $100,000 and not less than
$500,000.
(b) Optional prepayments of Term Loans shall be allocated ratably between
the Term Loans and the Other Term Loans, if any, and shall be applied first, in
chronological order to the installments of principal in respect of the Term
Loans and Other Term Loans scheduled to be paid within 12 months after such
optional prepayment and second, pro rata against the remaining scheduled
installments of principal due in respect of the Term Loans and Other Term Loans.
(c) Each notice of prepayment shall specify the prepayment date and the
principal amount and currency denomination of each Borrowing (or portion
thereof) to be prepaid, shall be irrevocable and shall commit the Borrower to
prepay such Borrowing by the amount stated therein on the date stated therein.
All prepayments under this Section 2.12 shall be subject to Section 2.15 but
otherwise without premium or penalty. All prepayments under this Section 2.12
shall be accompanied by accrued and
35
unpaid interest on the principal amount to be prepaid to but excluding the date
of payment; provided, however, that in the case of a prepayment of an ABR
Revolving Loan or a Swingline Loan that is not made in connection with a
termination of the Revolving Credit Commitments, the accrued and unpaid interest
on the principal amount prepaid shall be payable on the next scheduled Interest
Payment Date with respect to such ABR Revolving Loan or Swingline Loan.
Section 2.13. Mandatory Prepayments. (a) In the event of any termination of
all the Revolving Credit Commitments, the Borrower shall, on the date of such
termination, repay or prepay all its outstanding Revolving Credit Borrowings and
all outstanding Swingline Loans and replace all outstanding Letters of Credit.
If as a result of any partial reduction of the Revolving Credit Commitments the
Aggregate Revolving Credit Exposure would exceed the Total Revolving Credit
Commitment after giving effect thereto, then the Borrower shall, on the date of
such reduction, repay or prepay Revolving Credit Borrowings or Swingline Loans
(or a combination thereof) and/or replace outstanding Letters of Credit in an
amount sufficient to eliminate such excess.
(b) Not later than the third Business Day following the completion of any
Asset Sale or Recovery Event, the Borrower shall apply 100% of the Net Cash
Proceeds received with respect thereto to prepay outstanding Term Loans and
Other Term Loans in accordance with Section 2.13(f).
(c) No later than the earlier of (i) 105 days after the end of each fiscal
year of the Borrower, commencing with the fiscal year ending on December 31,
2006, and (ii) the date on which the financial statements with respect to such
period are delivered pursuant to Section 5.4(a), the Borrower shall prepay
outstanding Term Loans and Other Term Loans in accordance with Section 2.13(f)
in an aggregate principal amount equal to 50% of Excess Cash Flow for the fiscal
year then ended; provided, however, that in the event the Leverage Ratio at the
end of such fiscal year was equal to or less than 4.00 to 1.00, no such
prepayment shall be required.
(d) In the event that any Loan Party or any subsidiary of a Loan Party
shall receive Net Cash Proceeds from the issuance or other disposition of
Indebtedness for money borrowed (or similar transaction evidenced by bonds,
debentures, notes or similar instruments) of any Loan Party or any subsidiary of
a Loan Party (other than Indebtedness for money borrowed (or similar transaction
evidenced by bonds, debentures, notes or similar instruments) permitted pursuant
to Section 6.1, except for Indebtedness incurred under Section 6.1(j), for which
a mandatory prepayment shall be required), the Borrower shall, substantially
simultaneously with (and in any event not later than the third Business Day next
following) the receipt of such Net Cash Proceeds by such Loan Party or such
subsidiary, apply an amount equal to 100% of such Net Cash Proceeds to prepay
outstanding Term Loans and Other Term Loans in accordance with Section 2.13(f).
(e) In the event that Holdings or the Borrower shall receive Net Cash
Proceeds from the issuance or sale of Equity Interests of Holdings or the
Borrower (other than pursuant to an Excluded Equity Issuance), the Borrower
shall, substantially simultaneously with (and in any event not later than the
third Business Day next following) the receipt of such Net Cash Proceeds by
Holdings or the Borrower, apply an amount equal to 50% of such Net Cash Proceeds
to prepay outstanding Term Loans and Other Term Loans in accordance with Section
2.13(f); provided, however, that in the event the Leverage Ratio at the end of
the most recently ended fiscal quarter was equal to or less than 4.00 to 1.00,
no such prepayment shall be required.
(f) Mandatory prepayments of outstanding Term Loans under this Agreement
shall be allocated ratably between the Term Loans and Other Term Loans, if any,
and shall be applied first, in chronological order to the installments of
principal in respect of the Term Loans and Other Term Loans scheduled to be paid
within 12 months after such mandatory prepayment and second, pro rata against
the
36
remaining scheduled installments of principal due in respect of the Term Loans
and Other Term Loans under Section 2.11.
(g) The Borrower shall deliver to the Administrative Agent, at the time of
each prepayment required under this Section 2.13, (i) a certificate signed by a
Financial Officer of the Borrower setting forth in reasonable detail the
calculation of the amount of such prepayment and (ii) to the extent practicable,
at least three days prior written notice of such prepayment. Each notice of
prepayment shall specify the prepayment date, the Type of each Loan being
prepaid and the principal amount of each Loan (or portion thereof) to be
prepaid. All prepayments of Borrowings under this Section 2.13 shall be subject
to Section 2.15, but shall otherwise be without premium or penalty.
Section 2.14. Reserve Requirements; Change in Circumstances.
(a) Notwithstanding any other provision of this Agreement, if any Change in Law
shall impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of or credit
extended by any Lender or the Issuing Bank (except any such reserve requirement
which is reflected in the Eurodollar Rate) or shall impose on such Lender or the
Issuing Bank or the London interbank market any other condition affecting this
Agreement or Eurodollar Loans made by such Lender or any Letter of Credit or
participation therein, and the result of any of the foregoing shall be to
increase the cost to such Lender or the Issuing Bank of making or maintaining
any Eurodollar Loan or increase the cost to any Lender of issuing or maintaining
any Letter of Credit or purchasing or maintaining a participation therein or to
reduce the amount of any sum received or receivable by such Lender or the
Issuing Bank hereunder (whether of principal, interest or otherwise), in each
case, by an amount deemed by such Lender or the Issuing Bank to be material,
then the Borrower will pay to such Lender or the Issuing Bank, as the case may
be, upon demand such additional amount or amounts as will compensate such Lender
or the Issuing Bank, as the case may be, for such additional costs incurred or
reduction suffered.
(b) If any Lender or the Issuing Bank shall have determined that any
Change in Law regarding capital adequacy has or would have the effect of
reducing the rate of return on such Lender's or the Issuing Bank's capital or on
the capital of such Lender's or the Issuing Bank's holding company, if any, as a
consequence of this Agreement or the Loans made or participations in Letters of
Credit purchased by such Lender pursuant hereto or the Letters of Credit issued
by the Issuing Bank pursuant hereto to a level below that which such Lender or
the Issuing Bank or such Lender's or the Issuing Bank's holding company could
have achieved but for such Change in Law (taking into consideration such
Lender's or the Issuing Bank's policies and the policies of such Lender's or the
Issuing Bank's holding company with respect to capital adequacy) by an amount
deemed by such Lender or the Issuing Bank to be material, then from time to time
the Borrower shall pay to such Lender or the Issuing Bank, as the case may be,
such additional amount or amounts as will compensate such Lender or the Issuing
Bank or such Lender's or the Issuing Bank's holding company for any such
reduction suffered.
(c) A certificate of a Lender or the Issuing Bank setting forth the amount
or amounts necessary to compensate such Lender or the Issuing Bank or its
holding company, as applicable, as specified in paragraph (a) or (b) above shall
be delivered to the Borrower and shall be conclusive absent manifest error. The
Borrower shall pay such Lender or the Issuing Bank the amount shown as due on
any such certificate delivered by it within 10 days after its receipt of the
same.
(d) Failure or delay on the part of any Lender or the Issuing Bank to
demand compensation for any increased costs or reduction in amounts received or
receivable or reduction in return on capital shall not constitute a waiver of
such Lender's or the Issuing Bank's right to demand such compensation; provided,
that the Borrower shall not be under any obligation to compensate any Lender or
the Issuing Bank under paragraph (a) or (b) above with respect to increased
costs or reductions with respect to any period prior to the date that is 180
days prior to such request if such Lender or the Issuing Bank knew or
37
could reasonably have been expected to know of the circumstances giving rise to
such increased costs or reductions and of the fact that such circumstances would
result in a claim for increased compensation by reason of such increased costs
or reductions; provided, further, that the foregoing limitation shall not apply
to any increased costs or reductions arising out of the retroactive application
of any Change in Law within such 180-day period. The protection of this Section
shall be available to each Lender and the Issuing Bank regardless of any
possible contention of the invalidity or inapplicability of the Change in Law
that shall have occurred or been imposed.
Section 2.15. Indemnity. The Borrower shall indemnify each Lender against
any loss or expense that such Lender may sustain or incur as a consequence of
(a) any event, other than a default by such Lender in the performance of its
obligations hereunder, which results in (i) such Lender receiving or being
deemed to receive any amount on account of the principal of any Eurodollar Loan
prior to the end of the Interest Period in effect therefor, (ii) the conversion
of any Eurodollar Loan to an ABR Loan, or the conversion of the Interest Period
with respect to any Eurodollar Loan, in each case other than on the last day of
the Interest Period in effect therefor, or (iii) any Eurodollar Loan to be made
by such Lender (including any Eurodollar Loan to be made pursuant to a
conversion or continuation under Section 2.10) not being made after notice of
such Loan shall have been given by the Borrower hereunder (any of the events
referred to in this clause (a) being called a "Breakage Event") or (b) any
default in the making of any payment or prepayment required to be made
hereunder. In the case of any Breakage Event, such loss shall include an amount
equal to the excess, as reasonably determined by such Lender, of (i) its cost of
obtaining funds for the Eurodollar Loan that is the subject of such Breakage
Event for the period from the date of such Breakage Event to the last day of the
Interest Period in effect (or that would have been in effect) for such Loan over
(ii) the amount of interest likely to be realized by such Lender in redeploying
the funds released or not utilized by reason of such Breakage Event for such
period, but such loss shall not, in any event, include any lost profit or loss
of applicable margin. A certificate of any Lender setting forth any amount or
amounts which such Lender is entitled to receive pursuant to this Section 2.15
shall be delivered to the Borrower and shall be conclusive absent manifest
error.
Section 2.16. Pro Rata Treatment. Each Borrowing, each payment or
prepayment of principal of any Borrowing, each payment of interest on the Loans,
each payment of the Commitment Fees or the L/C Participation Fees, each
reduction of the Term Loan Commitments or the Revolving Credit Commitments and
each conversion of any Borrowing to or continuation of any Borrowing as a
Borrowing of any Type shall be allocated pro rata among the Lenders in
accordance with their respective applicable Commitments (or, if such Commitments
shall have expired or been terminated, in accordance with the respective
principal amounts of their outstanding Loans or participations in L/C
Disbursements, as applicable). Each Lender agrees that in computing such
Lender's portion of any Borrowing to be made hereunder, the Administrative Agent
may, in its discretion, round each Lender's percentage of such Borrowing to the
next higher or lower whole dollar amount.
Section 2.17. Sharing of Setoffs. Each Lender agrees that if it shall,
through the exercise of a right of banker's lien, setoff or counterclaim against
the Borrower or any other Loan Party, or pursuant to a secured claim under
Section 506 of Title 11 of the United States Code or other security or interest
arising from, or in lieu of, such secured claim, received by such Lender under
any applicable bankruptcy, insolvency or other similar law or otherwise, or by
any other means, obtain payment (voluntary or involuntary) in respect of any
Loan or L/C Disbursement as a result of which the unpaid portion of its Loans
and participations in L/C Disbursements shall be proportionately less than the
unpaid portion of the Loans and participations in L/C Disbursements of any other
Lender, it shall be deemed simultaneously to have purchased from such other
Lender at face value, and shall promptly pay to such other Lender the purchase
price for, a participation in the Loans and L/C Exposure of such other Lender,
so that the aggregate unpaid amount of the Loans and L/C Exposure and
participations in Loans and L/C Exposure held by each Lender shall be in the
same proportion to the aggregate unpaid amount of all Loans and L/C Exposure
then outstanding as
38
the amount of its Loans and L/C Exposure prior to such exercise of banker's
lien, setoff or counterclaim or other event was to the amount of all Loans and
L/C Exposure outstanding prior to such exercise of banker's lien, setoff or
counterclaim or other event; provided, however, that if any such purchase or
purchases or adjustments shall be made pursuant to this Section 2.17 and the
payment giving rise thereto shall thereafter be recovered, such purchase or
purchases or adjustments shall be rescinded to the extent of such recovery and
the purchase price or prices or adjustment restored without interest. The
Borrower and Holdings expressly consent to the foregoing arrangements and agree
that any Lender holding a participation in a Loan or L/C Disbursement deemed to
have been so purchased may exercise any and all rights of banker's lien, setoff
or counterclaim with respect to any and all moneys owing by the Borrower and
Holdings to such Lender by reason thereof as fully as if such Lender had made a
Loan directly to the Borrower in the amount of such participation.
Section 2.18. Payments. (a) The Borrower shall make each payment (including
principal of or interest on any Borrowing or any L/C Disbursement or any Fees or
other amounts) hereunder and under any other Loan Document not later than 12:00
(noon), New York City Time, on the date when due in Dollars and in immediately
available funds, without setoff, defense or counterclaim. Each such payment
(other than (i) Issuing Bank Fees, which shall be paid directly to the Issuing
Bank, and (ii) principal of and interest on Swingline Loans, which shall be paid
directly to the Swingline Lender except as otherwise provided in Section
2.21(e)) shall be made to the Administrative Agent at the Funding Office, or at
such other location as the Administrative Agent shall notify the Borrower from
time to time in accordance with Section 9.1. The Administrative Agent shall
distribute any such payments received by it for the account of any other person
to the appropriate recipient promptly following receipt thereof.
(b) Except as otherwise expressly provided herein, whenever any payment
(including principal of or interest on any Borrowing or any Fees or other
amounts) hereunder or under any other Loan Document shall become due, or
otherwise would occur, on a day that is not a Business Day, such payment may be
made on the next succeeding Business Day, and such extension of time shall in
such case be included in the computation of interest or Fees, if applicable.
Section 2.19. Taxes. (a) Any and all payments by or on account of any
obligation of the Borrower or any Loan Party hereunder or under any other Loan
Document shall be made free and clear of and without deduction for any
Indemnified Taxes or Other Taxes; provided, that if the Borrower or any Loan
Party shall be required to deduct any Indemnified Taxes or Other Taxes from such
payments, then (i) the sum payable shall be increased as necessary so that after
making all required deductions (including deductions applicable to additional
sums payable under this Section) the Administrative Agent or such Lender (as the
case may be) receives an amount equal to the sum it would have received had no
such deductions been made, (ii) the Borrower or such Loan Party shall make such
deductions and (iii) the Borrower or such Loan Party shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable
law.
(b) In addition, the Borrower shall pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.
(c) The Borrower shall indemnify the Administrative Agent and each Lender,
within 10 days after written demand therefor, for the full amount of any
Indemnified Taxes or Other Taxes paid by the Administrative Agent or such
Lender, as the case may be, on or with respect to any payment by or on account
of any obligation of the Borrower or any Loan Party hereunder or under any other
Loan Document (including Indemnified Taxes or Other Taxes imposed or asserted on
or attributable to amounts payable under this Section) and any penalties,
interest and reasonable expenses arising therefrom or with respect thereto
(other than penalties or interest attributable to (i) a failure or delay by the
Administrative Agent or such Lender, as applicable, in making such written
demand to the Borrower or (ii) the gross
39
negligence or willful misconduct of the Administrative Agent or such Lender, as
applicable), whether or not such Indemnified Taxes or Other Taxes were correctly
or legally imposed or asserted by the relevant Governmental Authority. A
certificate as to the amount of such payment or liability delivered to the
Borrower by a Lender, or by the Administrative Agent on its behalf or on behalf
of a Lender, shall be conclusive absent manifest error.
(d) As soon as practicable after any payment of Indemnified Taxes or Other
Taxes by the Borrower or any other Loan Party to a Governmental Authority, the
Borrower shall deliver to the Administrative Agent the original or a certified
copy of a receipt issued by such Governmental Authority evidencing such payment,
a copy of the return reporting such payment or other evidence of such payment
reasonably satisfactory to the Administrative Agent.
(e) Any Foreign Lender that is entitled to an exemption from or reduction
of withholding tax under the law of the jurisdiction in which the Borrower is
located, or any treaty to which such jurisdiction is a party, with respect to
payments under this Agreement shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law, such
properly completed and executed documentation prescribed by applicable law or
reasonably requested by the Borrower as will permit such payments to be made
without withholding or at a reduced rate.
Section 2.20. Assignment of Commitments Under Certain Circumstances; Duty
to Mitigate. (a) In the event (i) any Lender or the Issuing Bank delivers a
certificate requesting compensation pursuant to Section 2.14, (ii) the Borrower
is required to pay any additional amount to any Lender or the Issuing Bank or
any Governmental Authority on account of any Lender or the Issuing Bank pursuant
to Section 2.19, (iii) any Lender becomes a Defaulting Lender or (iv) any Lender
refuses to consent to any amendment, waiver or other modification of any Loan
Document requested by the Borrower that requires the consent of a greater
percentage of the Lenders than the Required Lenders and such amendment, waiver
or other modification is consented to by the Required Lenders, the Borrower may,
at its sole expense and effort (including with respect to the processing and
recordation fee referred to in Section 9.4(b)), upon notice to such Lender or
the Issuing Bank and the Administrative Agent, require such Lender or the
Issuing Bank to transfer and assign, without recourse, representation or
warranty, except as to warranty as to its ownership of the assigned obligations
(in accordance with and subject to the restrictions contained in Section 9.4),
all of its interests, rights and obligations under this Agreement to an assignee
that shall assume such assigned obligations and, with respect to clause (iv)
above, shall consent to such requested amendment, waiver or other modification
of any Loan Document (which assignee may be another Lender, if a Lender accepts
such assignment); provided that (x) such assignment shall not conflict with any
law, rule or regulation or order of any court or other Governmental Authority
having jurisdiction, (y) the Borrower shall have received the prior written
consent of the Administrative Agent (and, if a Revolving Credit Commitment is
being assigned, of the Issuing Bank and the Swingline Lender), which consent
shall not unreasonably be withheld, and (z) the Borrower or such assignee shall
have paid to the affected Lender or the Issuing Bank in immediately available
funds an amount equal to the sum of the principal of and interest accrued to the
date of such payment on the outstanding Loans or L/C Disbursements of such
Lender or the Issuing Bank plus all Fees and other amounts accrued for the
account of such Lender or the Issuing Bank hereunder (including any amounts
under Section 2.14 and Section 2.15); provided, further, that, if prior to any
such transfer and assignment the circumstances or event that resulted in such
Lender's or the Issuing Bank's claim for compensation under Section 2.14 or the
amounts paid pursuant to Section 2.19, as the case may be, cease to cause such
Lender or the Issuing Bank to suffer increased costs or reductions in amounts
received or receivable or reduction in return on capital or cease to result in
amounts being payable under Section 2.19, as the case may be (including as a
result of any action taken by such Lender or the Issuing Bank pursuant to
paragraph (b) below), or if such Lender or the Issuing Bank shall waive its
right to claim further compensation under Section 2.14 in respect of such
circumstances or event or shall waive its right to further payments under
Section 2.19 in respect of such circumstances or event
40
or shall consent to the proposed amendment, waiver, consent or other
modification, as the case may be, then such Lender or the Issuing Bank shall not
thereafter be required to make any such transfer and assignment hereunder.
(b) If (i) any Lender or the Issuing Bank shall request compensation under
Section 2.14 or (ii) the Borrower is required to pay any additional amount to
any Lender or the Issuing Bank or any Governmental Authority on account of any
Lender or the Issuing Bank, pursuant to Section 2.19, then such Lender or the
Issuing Bank shall use reasonable efforts (which shall not require such Lender
or the Issuing Bank to incur an unreimbursed loss or unreimbursed cost or
expense or otherwise take any action inconsistent with its internal policies or
legal or regulatory restrictions or suffer any disadvantage or burden deemed by
it to be significant) (x) to file any certificate or document reasonably
requested in writing by the Borrower or (y) to assign its rights and delegate
and transfer its obligations hereunder to another of its offices, branches or
Affiliates, if such filing or assignment would reduce its claims for
compensation under Section 2.14 or would reduce amounts payable pursuant to
Section 2.19, as the case may be, in the future. The Borrower hereby agrees to
pay all reasonable costs and expenses incurred by any Lender or the Issuing Bank
in connection with any such filing or assignment, delegation and transfer.
Section 2.21. Swingline Loans. (a) Swingline Commitment. Subject to the
terms and conditions and relying upon the representations and warranties herein
set forth, the Swingline Lender agrees to make loans to the Borrower at any time
and from time to time on and after the Closing Date and until the earlier of the
Revolving Credit Maturity Date and the termination of the Revolving Credit
Commitments in accordance with the terms hereof, in an aggregate principal
amount at any time outstanding that will not result in (i) the aggregate
principal amount of all Swingline Loans exceeding $5,000,000 in the aggregate or
(ii) the Aggregate Revolving Credit Exposure, after giving effect to any
Swingline Loan, exceeding the Total Revolving Credit Commitment. Each Swingline
Loan shall be in a principal amount that is an integral multiple of $100,000 and
not less than $100,000. The Swingline Commitment may be terminated or reduced
from time to time as provided herein. Within the foregoing limits, the Borrower
may borrow, pay or prepay and reborrow Swingline Loans hereunder, subject to the
terms, conditions and limitations set forth herein.
(b) Swingline Loan Borrowing Procedure. The Borrower shall notify the
Swingline Lender by fax, or by telephone (confirmed by fax), not later than
12:00 (noon), New York City time, on the day of a proposed Swingline Loan. Such
notice shall be delivered on a Business Day, shall be irrevocable and shall
refer to this Agreement and shall specify the requested date (which shall be a
Business Day) and amount of such Swingline Loan and the wire transfer
instructions for the account of the Borrower to which the proceeds of such
Swingline Loan should be transferred. The Swingline Lender shall promptly make
each Swingline Loan by wire transfer to the account specified by the Borrower in
such request.
(c) Prepayment. The Borrower shall have the right at any time and from
time to time to prepay any Swingline Loan, in whole or in part, upon giving
written or fax notice (or telephonic notice promptly confirmed by written
notice) to the Swingline Lender and to the Administrative Agent before 12:00
(noon), New York City time on the date of prepayment at the Swingline Lender's
address for notices specified in Section 9.1.
(d) Interest. Each Swingline Loan shall be an ABR Loan and, subject to
the provisions of Section 2.7, shall bear interest at the rate provided for the
ABR Revolving Loans as provided in Section 2.6(a).
(e) Participations. The Swingline Lender may by written notice given to
the Administrative Agent not later than 11:00 a.m., New York City time, on any
Business Day require the Revolving Credit Lenders to acquire participations on
such Business Day in all or a portion of the Swingline Loans
41
outstanding. Such notice shall specify the aggregate amount of Swingline Loans
in which the Revolving Credit Lenders will participate. The Administrative Agent
will, promptly upon receipt of such notice, give notice to each Revolving Credit
Lender, specifying in such notice such Lender's Pro Rata Percentage of such
Swingline Loan or Loans. In furtherance of the foregoing, each Revolving Credit
Lender hereby absolutely and unconditionally agrees, upon receipt of notice as
provided above, to pay to the Administrative Agent, for the account of the
Swingline Lender, such Revolving Credit Lender's Pro Rata Percentage of such
Swingline Loan or Loans. Each Revolving Credit Lender acknowledges and agrees
that its obligation to acquire participations in Swingline Loans pursuant to
this paragraph is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including the occurrence and continuance of a Default
or an Event of Default, and that each such payment shall be made without any
offset, abatement, withholding or reduction whatsoever. Each Revolving Credit
Lender shall comply with its obligation under this paragraph by wire transfer of
immediately available funds, in the same manner as provided in Section 2.2(c)
with respect to Loans made by such Lender (and Section 2.2(c) shall apply,
mutatis mutandis, to the payment obligations of the Lenders) and the
Administrative Agent shall promptly pay to the Swingline Lender the amounts so
received by it from the Lenders. The Administrative Agent shall notify the
Borrower of any participations in any Swingline Loan acquired pursuant to this
paragraph and thereafter payments in respect of such Swingline Loan shall be
made to the Administrative Agent and not to the Swingline Lender. Any amounts
received by the Swingline Lender from the Borrower (or other party on behalf of
the Borrower) in respect of a Swingline Loan after receipt by the Swingline
Lender of the proceeds of a sale of participations therein shall be promptly
remitted to the Administrative Agent; any such amounts received by the
Administrative Agent shall be promptly remitted by the Administrative Agent to
the Lenders that shall have made their payments pursuant to this paragraph and
to the Swingline Lender, as their interests may appear. The purchase of
participations in a Swingline Loan pursuant to this paragraph shall not relieve
the Borrower (or other party liable for obligations of the Borrower) of any
default in the payment thereof.
Section 2.22. Letters of Credit. (a) General. The Borrower may request the
issuance of a Letter of Credit denominated in Dollars for its own account or for
the account of any Subsidiary, in a form reasonably acceptable to the
Administrative Agent and the Issuing Bank, at any time and from time to time
while the Revolving Credit Commitments remain in effect. This Section shall not
be construed to impose an obligation upon the Issuing Bank to issue any Letter
of Credit that is inconsistent with the terms and conditions of this Agreement.
(b) Notice of Issuance, Amendment, Renewal, Extension; Certain
Conditions. In order to request the issuance of a Letter of Credit (or to amend,
renew or extend an existing Letter of Credit), the Borrower shall hand deliver
or fax to the Issuing Bank and the Administrative Agent (reasonably in advance
of the requested date of issuance, amendment, renewal or extension) a notice
requesting the issuance of a Letter of Credit, or identifying the Letter of
Credit to be amended, renewed or extended, the date of issuance, amendment,
renewal or extension, the date on which such Letter of Credit is to expire
(which shall comply with paragraph (c) below), the amount of such Letter of
Credit, the name and address of the beneficiary thereof and such other
information as shall be necessary to prepare such Letter of Credit. The Issuing
Bank shall promptly (i) notify the Administrative Agent in writing of the amount
and expiry date of each Letter of Credit issued by it and (ii) provide a copy of
each such Letter of Credit (and any amendments, renewals or extensions thereof)
to the Administrative Agent. A Letter of Credit shall be issued, amended,
renewed or extended only if, and upon issuance, amendment, renewal or extension
of each Letter of Credit the Borrower shall be deemed to represent and warrant
that, after giving effect to such issuance, amendment, renewal or extension (i)
the L/C Exposure shall not exceed $10,000,000 and (ii) the Aggregate Revolving
Credit Exposure shall not exceed the Total Revolving Credit Commitment. The
Borrower shall be deemed to have complied with the notification and other
information delivery requirements set forth in this Section 2.22(b) in respect
of the Letter of Credit in the form attached hereto
42
as Schedule 2.22(b), which Letter of Credit shall be deemed to be issued as a
Letter of Credit hereunder on the Closing Date.
(c) Expiration Date. Each Letter of Credit shall expire at the close of
business on the earlier of the date one year after the date of the issuance of
such Letter of Credit and the date that is five Business Days prior to the
Revolving Credit Maturity Date, unless such Letter of Credit expires by its
terms on an earlier date; provided, that a Letter of Credit may, upon the
request of the Borrower, include a provision whereby such Letter of Credit shall
be renewed automatically for additional consecutive periods of 12 months or less
(but not beyond the date that is five Business Days prior to the Revolving
Credit Maturity Date) unless the Issuing Bank notifies the beneficiary thereof
at least 30 days prior to the then-applicable expiration date that such Letter
of Credit will not be renewed.
(d) Participations. By the issuance of a Letter of Credit and without any
further action on the part of the Issuing Bank or the Lenders, the Issuing Bank
hereby grants to each Revolving Credit Lender, and each such Lender hereby
acquires from the Issuing Bank, a participation in such Letter of Credit equal
to such Lender's Pro Rata Percentage of the aggregate amount available to be
drawn under such Letter of Credit, effective upon the issuance of such Letter of
Credit. In consideration and in furtherance of the foregoing, each Revolving
Credit Lender hereby absolutely and unconditionally agrees to pay to the
Administrative Agent, for the account of the Issuing Bank, such Lender's Pro
Rata Percentage of each L/C Disbursement made by the Issuing Bank and not
reimbursed by the Borrower (or, if applicable, another party pursuant to its
obligations under any other Loan Document) forthwith on the date due as provided
in Section 2.2(f). Each Revolving Credit Lender acknowledges and agrees that its
obligation to acquire participations pursuant to this paragraph in respect of
Letters of Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including the occurrence and continuance of a Default
or an Event of Default, and that each such payment shall be made without any
offset, abatement, withholding or reduction whatsoever.
(e) Reimbursement. If the Issuing Bank shall make any L/C Disbursement in
respect of a Letter of Credit, the Borrower shall pay to the Administrative
Agent (or directly to the Issuing Bank, with concurrent notice to the
Administrative Agent) an amount equal to such L/C Disbursement not later than
two hours after the Borrower shall have received notice from the Issuing Bank
that payment of such draft will be made, or, if the Borrower shall have received
such notice later than 10:00 a.m., New York City Time, on any Business Day, not
later than 10:00 a.m., New York City Time, on the immediately following Business
Day.
(f) Obligations Absolute. The Borrower's obligations to reimburse L/C
Disbursements as provided in paragraph (e) above shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement, under any and all circumstances whatsoever,
and irrespective of:
(i) any lack of validity or enforceability of any Letter of Credit or
any Loan Document, or any term or provision therein;
(ii) any amendment or waiver of or any consent to departure from all
or any of the provisions of any Letter of Credit or any Loan Document;
(iii) the existence of any claim, setoff, defense or other right that
the Borrower, any other party guaranteeing, or otherwise obligated with,
the Borrower, any Subsidiary or other Affiliate thereof or any other person
may at any time have against the beneficiary under any Letter of Credit,
the Issuing Bank, the Administrative Agent or any Lender or any other
person,
43
whether in connection with this Agreement, any other Loan Document or any
other related or unrelated agreement or transaction;
(iv) any draft or other document presented under a Letter of Credit
proving to be forged, fraudulent, invalid or insufficient in any respect or
any statement therein being untrue or inaccurate in any respect;
(v) payment by the Issuing Bank under a Letter of Credit against
presentation of a draft or other document that does not comply with the
terms of such Letter of Credit; and
(vi) any other act or omission to act or delay of any kind of the
Issuing Bank, the Lenders, the Administrative Agent or any other person or
any other event or circumstance whatsoever, whether or not similar to any
of the foregoing, that might, but for the provisions of this Section,
constitute a legal or equitable discharge of the Borrower's obligations
hereunder.
Without limiting the generality of the foregoing, it is expressly understood and
agreed that the absolute and unconditional obligation of the Borrower hereunder
to reimburse L/C Disbursements will not be excused by the gross negligence or
willful misconduct of the Issuing Bank. However, the foregoing shall not be
construed to excuse the Issuing Bank from liability to the Borrower to the
extent of any direct damages (as opposed to consequential damages, claims in
respect of which are hereby waived by the Borrower to the extent permitted by
applicable law) suffered by the Borrower that are caused by the Issuing Bank's
gross negligence or willful misconduct in determining whether drafts and other
documents presented under a Letter of Credit comply with the terms thereof; it
is understood that the Issuing Bank may accept documents that appear on their
face to be in order, without responsibility for further investigation,
regardless of any notice or information to the contrary and, in making any
payment under any Letter of Credit (i) the Issuing Bank's exclusive reliance on
the documents presented to it under such Letter of Credit as to any and all
matters set forth therein, including reliance on the amount of any draft
presented under such Letter of Credit, whether or not the amount due to the
beneficiary thereunder equals the amount of such draft and whether or not any
document presented pursuant to such Letter of Credit proves to be insufficient
in any respect, if such document on its face appears to be in order, and whether
or not any other statement or any other document presented pursuant to such
Letter of Credit proves to be forged or invalid or any statement therein proves
to be inaccurate or untrue in any respect whatsoever and (ii) any noncompliance
in any immaterial respect of the documents presented under such Letter of Credit
with the terms thereof shall, in each case, be deemed not to constitute willful
misconduct or gross negligence of the Issuing Bank.
(g) Disbursement Procedures. The Issuing Bank shall, promptly following
its receipt thereof, examine all documents purporting to represent a demand for
payment under a Letter of Credit. The Issuing Bank shall as promptly as possible
give telephonic notification, confirmed by fax, to the Administrative Agent and
the Borrower of such demand for payment and whether the Issuing Bank has made or
will make an L/C Disbursement thereunder; provided, that any failure to give or
delay in giving such notice shall not relieve the Borrower of its obligation to
reimburse the Issuing Bank and the Revolving Credit Lenders with respect to any
such L/C Disbursement. The Administrative Agent shall promptly give each
Revolving Credit Lender notice thereof.
(h) Interim Interest. If the Issuing Bank shall make any L/C Disbursement
in respect of a Letter of Credit, then, unless the Borrower shall reimburse such
L/C Disbursement in full on such date, the unpaid amount thereof shall bear
interest for the account of the Issuing Bank, for each day from and including
the date of such L/C Disbursement, to but excluding the earlier of the date of
payment by the Borrower or the date on which interest shall commence to accrue
thereon as provided in Section 2.2(f), at the rate per annum that would apply to
such amount if such amount were an ABR Revolving Loan.
44
(i) Resignation or Removal of the Issuing Bank. The Issuing Bank may
resign at any time by giving 30 days' prior written notice to the Administrative
Agent, the Lenders and the Borrower, and may be removed at any time by the
Borrower by notice to the Issuing Bank, the Administrative Agent and the
Lenders. Subject to the other provisions of this paragraph (i), upon the
acceptance of any appointment as the Issuing Bank hereunder by a Lender that
shall agree to serve as successor Issuing Bank, such successor shall succeed to
and become vested with all the interests, rights and obligations of the retiring
Issuing Bank and the retiring Issuing Bank shall be discharged from its
obligations to issue additional Letters of Credit hereunder. At the time such
removal or resignation shall become effective, the Borrower shall pay all
accrued and unpaid fees pursuant to Section 2.5(c)(ii). The acceptance of any
appointment as the Issuing Bank hereunder by a successor Lender shall be
evidenced by an agreement entered into by such successor, in a form satisfactory
to the Borrower and the Administrative Agent, and, from and after the effective
date of such agreement, (i) such successor Lender shall have all the rights and
obligations of the previous Issuing Bank under this Agreement and the other Loan
Documents and (ii) references herein and in the other Loan Documents to the term
"Issuing Bank" shall be deemed to refer to such successor or to any previous
Issuing Bank, or to such successor and all previous Issuing Banks, as the
context shall require. After the resignation or removal of the Issuing Bank
hereunder, the retiring Issuing Bank shall remain a party hereto and shall
continue to have all the rights and obligations of an Issuing Bank under this
Agreement and the other Loan Documents with respect to Letters of Credit issued
by it prior to such resignation or removal, but shall not be required to issue
additional Letters of Credit.
(j) Cash Collateralization. If any Event of Default shall occur and be
continuing, the Borrower shall, on the Business Day it receives notice from the
Administrative Agent or the Required Lenders (or, if the maturity of the Loans
has been accelerated, Revolving Credit Lenders holding participations in
outstanding Letters of Credit representing greater than 50% of the aggregate
undrawn amount of all outstanding Letters of Credit) thereof and of the amount
to be deposited, deposit in an account with the Administrative Agent, for the
benefit of the Revolving Credit Lenders, an amount in cash equal to the L/C
Exposure as of such date; provided, however, that the obligation to deposit such
cash shall become effective immediately, and such deposit shall become
immediately due and payable, without demand or other notice of any kind, upon
the occurrence of any Event of Default with respect to the Borrower described in
clause (g) or (h) of Article VII. Such deposit shall be held by the
Administrative Agent as collateral for the payment and performance of the
Obligations. The Administrative Agent shall have exclusive dominion and control,
including the exclusive right of withdrawal, over such account. Other than any
interest earned on the investment of such deposits in Permitted Investments,
which investments shall be made at the option and sole discretion of the
Administrative Agent, such deposits shall not bear interest. Interest or
profits, if any, on such investments shall accumulate in such account. Moneys in
such account shall (i) automatically be applied by the Administrative Agent to
reimburse the Issuing Bank for L/C Disbursements for which it has not been
reimbursed, (ii) be held for the satisfaction of the reimbursement obligations
of the Borrower for the L/C Exposure at such time and (iii) if the maturity of
the Loans has been accelerated (but subject to the consent of Revolving Credit
Lenders holding participations in outstanding Letters of Credit representing
greater than 50% of the aggregate undrawn amount of all outstanding Letters of
Credit), be applied to satisfy the Obligations. If the Borrower is required to
provide an amount of cash collateral hereunder as a result of the occurrence of
an Event of Default, such amount (to the extent not applied as aforesaid) shall
be returned to the Borrower within three Business Days after all Events of
Default have been cured or waived.
(k) Additional Issuing Banks. The Borrower may, at any time and from time
to time with the consent of the Administrative Agent (which consent shall not be
unreasonably withheld) and such Lender, designate one or more additional Lenders
to act as an Issuing Bank under the terms of the Agreement. Any Lender
designated as an Issuing Bank pursuant to this paragraph (k) shall be deemed to
be an "Issuing Bank" (in addition to being a Lender) in respect of Letters of
Credit issued or to be issued by
45
such Lender, and, with respect to such Letters of Credit, such term shall
thereafter apply to the other Issuing Bank and such Lender.
Section 2.23. Increase in Term Loan Commitments. (a) The Borrower may, by
written notice to the Administrative Agent, request Incremental Term Loan
Commitments in an amount not to exceed the Incremental Term Loan Amount from one
or more Incremental Term Lenders (which may include any existing Lender) willing
to provide such Incremental Term Loans in their own discretion; provided, that
(i) before submitting any such request to a Person that is not a Lender, the
Borrower shall first give each existing Lender the opportunity to provide such
Incremental Term Loan Commitments (in which case, existing Lenders shall have no
more than two (2) Business Days from the date of such notice to indicate whether
they are willing to provide such Incremental Term Loans) and (ii) each
Incremental Term Lender, if not already a Lender hereunder, shall be subject to
the approval of the Administrative Agent (which approval shall not be
unreasonably withheld). Such notice shall set forth (i) the amount of the
Incremental Term Loan Commitments being requested (which shall be equal to the
Incremental Term Loan Amount), (ii) the date on which such Incremental Term Loan
Commitments are requested to become effective (which shall not be less than 10
Business Days after the date of such notice) and (iii) whether such Incremental
Term Loan Commitments are to be Term Loan Commitments or commitments to make
term loans with terms different from the Term Loans ("Other Term Loans"). The
Incremental Term Loans shall be made on a single borrowing date.
(b) The Borrower and each Incremental Term Lender shall execute and
deliver to the Administrative Agent an Incremental Term Loan Assumption
Agreement and such other documentation as the Administrative Agent shall
reasonably specify to evidence the Incremental Term Loan Commitment of such
Incremental Term Lender. Each Incremental Term Loan Assumption Agreement shall
specify the terms of the Incremental Term Loans to be made thereunder; provided,
that, without the prior written consent of the Required Lenders, (i) the final
maturity date of any Other Term Loans shall be no earlier than the Term Loan
Maturity Date and (ii) the average life to maturity of any Other Term Loans
shall be no shorter than the average life to maturity of the Term Loans and
provided, further, that, if the interest rate margin in respect of any Other
Term Loan would exceed the Applicable Percentage for the Term Loans by more than
1/2 of 1% (it being understood that any such increase may take the form of
original issue discount ("OID"), with OID being equated to the interest rates in
a manner determined by the Administrative Agent based on an assumed four-year
life to maturity), the Applicable Percentage for the Term Loans shall be
increased so that the interest rate margin in respect of such Other Term Loan
(giving effect to any OID issued in connection with such Other Term Loan) is no
more than 1/2 of 1% higher than the Applicable Percentage for the Term Loans.
The Administrative Agent shall promptly notify each Lender as to the
effectiveness of each Incremental Term Loan Assumption Agreement. Each of the
parties hereto hereby agrees that, upon the effectiveness of any Incremental
Term Loan Assumption Agreement, this Agreement shall be amended to the extent
(but only to the extent) necessary to reflect the existence and terms of the
Incremental Term Loan Commitment evidenced thereby as provided for in Section
9.8(b). Any such deemed amendment may be memorialized in writing by the
Administrative Agent with the Borrower's consent (not to be unreasonably
withheld) and furnished to the other parties hereto.
(c) Notwithstanding the foregoing, no Incremental Term Loan Commitment
shall become effective under this Section 2.23 unless (i) on the date of such
effectiveness, the conditions set forth in paragraphs (b) and (c) of Section 4.1
shall be satisfied and the Administrative Agent shall have received a
certificate to that effect dated such date and executed by a Financial Officer
of the Borrower, (ii) the Administrative Agent shall have received (with
sufficient copies for each of the Incremental Term Lenders) legal opinions,
board resolutions and other closing certificates and documentation consistent
with those delivered on the Closing Date under Section 4.2, (iii) on the last
day of the fiscal quarter immediately preceding the date of such effectiveness,
the Pro Forma Leverage Ratio (after giving effect
46
to such Incremental Term Loan Commitment and the Loans to be made thereunder and
the application of the proceeds therefrom) is at least 0.25x to 1.0 less than
the maximum Leverage Ratio permitted by Section 6.12 for such day, (iv) on the
last day of the fiscal quarter immediately preceding the date of such
effectiveness, the Pro Forma Senior Secured Leverage Ratio (after giving effect
to such Incremental Term Loan Commitment and the Loans to be made thereunder and
the application of the proceeds therefrom) is no greater than 2.5 to 1.0; and
(v) the Borrower would be in Pro Forma Compliance after giving effect to such
Incremental Term Loan Commitment and the Loans to be made thereunder and the
application of the proceeds therefrom as if made and applied on such date.
(d) Each of the parties hereto hereby agrees that the Administrative
Agent may take any and all action as may be reasonably necessary to ensure that
all Incremental Term Loans (other than Other Term Loans), when originally made,
are included in each Borrowing of outstanding Term Loans on a pro rata basis,
and the Borrower agrees that Section 2.15 shall apply to any conversion of
Eurodollar Term Loans to ABR Term Loans reasonably required by the
Administrative Agent to effect the foregoing. In addition, to the extent any
Incremental Term Loans are not Other Term Loans, the scheduled amortization
payments under Sections 2.11(a) required to be made after the making of such
Incremental Term Loans shall be ratably increased by the aggregate principal
amount of such Incremental Term Loans.
ARTICLE III
Representations and Warranties
Each of Holdings and the Borrower represents and warrants to the
Administrative Agent, the Issuing Bank and each of the Lenders that (both prior
to and after giving effect to the Acquisition and the Merger):
Section 3.1. Organization; Powers. Holdings, the Borrower and each of the
Subsidiaries (a) is duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization, (b) has all requisite power
and authority to own its property and assets and to carry on its business as now
conducted and as proposed to be conducted, (c) is qualified to do business in,
and is in good standing in, every jurisdiction where such qualification is
required, except where the failure so to qualify could not reasonably be
expected to result in a Material Adverse Effect, and (d) has the power and
authority to execute, deliver and perform its obligations under each of the Loan
Documents and each other agreement or instrument contemplated hereby or thereby
to which it is or will be a party and, in the case of the Borrower, to borrow
hereunder.
Section 3.2. Authorization. The Transactions (a) have been duly authorized
by all requisite corporate and, if required, stockholder action and (b) will not
(i) violate (A) any provision of law, statute, rule or regulation, or of the
certificate or articles of incorporation or other constitutive documents or
by-laws of Holdings, the Borrower or any Subsidiary, (B) any order of any
Governmental Authority or (C) any provision of any indenture, material agreement
or other material instrument to which Holdings, the Borrower or any Subsidiary
is a party or by which any of them or any of their property is or may be bound,
(ii) except as set forth on Schedule 3.2, be in conflict with, result in a
breach of or constitute (alone or with notice or lapse of time or both) a
default under, or give rise to any right to accelerate or to require the
prepayment, repurchase or redemption of any obligation under any such indenture,
material agreement or other material instrument or (iii) result in the creation
or imposition of any Lien upon or with respect to any property or assets now
owned or hereafter acquired by Holdings, the Borrower or any Subsidiary (other
than any Lien created hereunder or under the Security Documents).
Section 3.3. Enforceability. This Agreement has been duly executed and
delivered by Holdings and the Borrower and constitutes, and each other Loan
Document when executed and delivered by each Loan
47
Party party thereto will constitute, a legal, valid and binding obligation of
such Loan Party enforceable against such Loan Party in accordance with its
terms.
Section 3.4. Governmental Approvals. Except as set forth on Schedule 3.4,
no action, consent or approval of, registration or filing with or any other
action by any Governmental Authority is or will be required in connection with
the Transactions, except for (a) the filing of Uniform Commercial Code financing
statements and filings with the United States Patent and Trademark Office and
the United States Copyright Office, (b) recordation of any Mortgages, (c) such
as have been made or obtained and are in full force and effect or which are not
material to the consummation of the Transactions and (d) those approvals,
consents, exemptions, authorizations or other actions, notices or filings, the
failure of which to obtain or make could not reasonably be expected to have a
Material Adverse Effect.
Section 3.5. Financial Statements. (a) The Borrower has heretofore
furnished to the Lenders (i) the consolidated balance sheets and related
statements of income, stockholders' equity and cash flows of Spheris Holdings
LLC and its consolidated subsidiaries as of and for the fiscal years ended
December 31, 2003, and December 31, 2002, audited by and accompanied by the
unqualified opinion of Ernst & Young LLP, independent public accountants and
(ii) the unaudited consolidated balance sheet and related statements of income,
stockholders' equity and cash flows of the Company and its consolidated
subsidiaries as of and for each fiscal month subsequent to December 31, 2003
ended 30 days before the Closing Date. Such financial statements present fairly,
in all material respects, the financial condition and results of operations and
cash flows of the Company and its consolidated subsidiaries as of such dates and
for such periods. Except as set forth on Schedule 3.5(a), such balance sheets
and the notes thereto disclose all material liabilities, direct or contingent,
of the Borrower and its consolidated subsidiaries as of the dates thereof. Such
financial statements were prepared in accordance with GAAP applied on a
consistent basis, except that the unaudited financial statements are subject to
normal year-end adjustments and do not contain notes thereto.
(b) The Borrower has heretofore delivered to the Lenders the unaudited pro
forma consolidated balance sheet of the Company and its consolidated
subsidiaries at September 30, 2004, prepared giving effect to the Transactions
as if they had occurred on such date. Such pro forma financial statements have
been prepared in good faith by the Borrower, based on the assumptions used to
prepare the pro forma financial information (which assumptions are believed by
the Borrower on the date hereof and on the Closing Date to be reasonable), are
based on the best information available to the Borrower as of the date of
delivery thereof, accurately reflect, in all material respects, all adjustments
required to be made to give effect to the Transactions and present fairly, in
all material respects, on a pro forma basis the estimated consolidated financial
position of the Company and its consolidated subsidiaries as of such date and
for such periods, assuming that the Transactions had actually occurred at such
date or at the beginning of such period, as the case may be.
Section 3.6. No Material Adverse Change. No event, change or condition has
occurred that has had, or could reasonably be expected to have, a material
adverse effect on the business, assets, operations, properties, financial
condition or liabilities of Holdings, the Borrower and the Subsidiaries, taken
as a whole, since December 31, 2003.
Section 3.7. Title to Properties; Possession Under Leases. (a) Each of
Holdings, the Borrower and each of the Subsidiaries has good and marketable
title to, or valid leasehold interests in, all its material properties and
material assets, except for minor defects in title that do not materially
interfere with its ability to conduct its business or to utilize such assets for
their intended purposes and Liens permitted by Section 6.2 and except where the
failure to have such title could not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect. All such material
properties and assets are free and clear of Liens, other than Liens expressly
permitted by Section 6.2.
48
(b) Each of Holdings, the Borrower and each of the Subsidiaries has
complied with all material obligations due and payable or required to be
performed under all material leases to which it is a party and all such material
leases are in full force and effect. Each of Holdings, the Borrower and each of
the Subsidiaries enjoys peaceful and undisturbed possession under all such
leases, except where the failure to so enjoy could not reasonably be expected to
have a Material Adverse Effect.
Section 3.8. Subsidiaries. Schedule 3.8 sets forth as of the Closing Date a
list of all Subsidiaries and the percentage ownership interest of Holdings or
the Borrower therein. The shares of Equity Interests so indicated on Schedule
3.8 are owned by Holdings or the Borrower, directly or indirectly, free and
clear of all Liens (other than Liens created under the Security Documents).
Section 3.9. Litigation; Compliance with Laws. (a) Except as set forth on
Schedule 3.9, there are not any actions, suits or proceedings at law or in
equity or by or before any Governmental Authority now pending or, to the
knowledge of Holdings or the Borrower, threatened against or affecting Holdings,
the Borrower, any Subsidiary or any business, property or rights of any such
person (i) that involve any Loan Document or the Transactions or (ii) as to
which there is a reasonable possibility of an adverse determination and that, if
adversely determined, could reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect.
(b) Since the date of this Agreement, there has been no change in the
status of the matters disclosed on Schedule 3.9 that, individually or in the
aggregate, has resulted in, or could reasonably be expected to result in, a
Material Adverse Effect.
(c) None of Holdings, the Borrower or any of the Subsidiaries or any of
their respective material properties or material assets is in violation of, nor
will the continued operation of their material properties and material assets as
currently conducted violate, any law, rule or regulation (including any zoning,
building, Environmental Law, ordinance, code or approval or any building
permits), or is in default with respect to any judgment, writ, injunction,
decree or order of any Governmental Authority, where such violation or default
could reasonably be expected to result in a Material Adverse Effect.
Section 3.10. Agreements. (a) None of Holdings, the Borrower or any of the
Subsidiaries is a party to any agreement or instrument or subject to any
corporate restriction that has resulted or could reasonably be expected to
result in a Material Adverse Effect.
(b) None of Holdings, the Borrower or any of the Subsidiaries is in default
in any manner under any provision of any indenture or other agreement or
instrument evidencing Indebtedness, or any other agreement or instrument to
which it is a party or by which it or any of its properties or assets are or may
be bound, where such default could reasonably be expected to result in a
Material Adverse Effect.
Section 3.11. Federal Reserve Regulations. (a) None of Holdings, the
Borrower or any of the Subsidiaries is engaged principally, or as one of its
important activities, in the business of extending credit for the purpose of
buying or carrying Margin Stock.
(b) No part of the proceeds of any Loan or any Letter of Credit will be
used, whether directly or indirectly, and whether immediately, incidentally or
ultimately, for any purpose that entails a violation of, or that is inconsistent
with, the provisions of the Regulations of the Board, including Regulation T, U
or X.
Section 3.12. Investment Company Act; Public Utility Holding Company Act.
None of Holdings, the Borrower or any Subsidiary is (a) an "investment company"
as defined in, or subject to regulation under, the
49
Investment Company Act of 1940 or (b) a "holding company" as defined in, or
subject to regulation under, the Public Utility Holding Company Act of 1935.
Section 3.13. Use of Proceeds. The Borrower will use the proceeds of the
Loans (other than Incremental Loans) and will request the issuance of Letters of
Credit only for the purposes specified in Section 5.8. The Borrower will use the
proceeds of any Incremental Term Loans solely as set forth in the applicable
Incremental Term Loan Assumption Agreement.
Section 3.14. Tax Returns. Each of the Holdings, the Borrower and each of
the Subsidiaries has filed or caused to be filed all Federal and all material
state, local and foreign tax returns or materials required to have been filed by
it and has paid or caused to be paid all material taxes due and payable by it
and all assessments received by it, except taxes that are being contested in
good faith by appropriate proceedings and for which Holdings, the Borrower or
such Subsidiary, as applicable, shall have set aside on its books adequate
reserves and except for taxes the nonpayment of which could not reasonably be
expected to have a Material Adverse Effect.
Section 3.15. No Material Misstatements. No information, report, financial
statement, exhibit or schedule furnished by or on behalf of Holdings or the
Borrower to the Administrative Agent or any Lender in connection with the
negotiation of any Loan Document or included therein or delivered pursuant
thereto, when taken as a whole and together with the representations and
warranties contained in this Agreement, contains or will contain any material
misstatement of fact or omitted, omits or will omit to state any material fact
necessary to make the statements therein, in the light of the circumstances
under which they were, are or will be made, not misleading; provided that to the
extent any such information, report, financial statement, exhibit or schedule
was based upon or constitutes a forecast or projection, each of Holdings and the
Borrower represents only that it acted in good faith and utilized reasonable
assumptions and due care in the preparation of such information, report,
financial statement, exhibit or schedule and it is understood that actual
results may differ from forecasts and projections.
Section 3.16. Employee Benefit Plans. Each of the Borrower and each of its
ERISA Affiliates is in compliance in all material respects with the applicable
provisions of ERISA and the Code and the regulations and published
interpretations thereunder. No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events,
could reasonably be expected to result in a Material Adverse Effect. The present
value of all benefit liabilities under any underfunded Plan (based on the
assumptions used to fund such plan and when considered together with all such
underfunded Plans) did not, as of the last annual valuation dates applicable
thereto, exceed the fair market value of the assets of such underfunded Plans by
an amount that could reasonably be expected to result in a Material Adverse
Effect.
Section 3.17. Environmental Matters. (a) Except as set forth in Schedule
3.17 and except with respect to any other matters that, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect, none of Holdings, the Borrower or any of the Subsidiaries (i) has failed
to comply with any Environmental Law or to obtain, maintain or comply with any
permit, license or other approval required under any Environmental Law, (ii) has
become subject to any Environmental Liability, (iii) has received notice of any
claim with respect to any Environmental Liability or (iv) knows of any basis for
any Environmental Liability.
(b) Since the date of this Agreement, there has been no change in the
status of the matters disclosed on Schedule 3.17 that, individually or in the
aggregate, has resulted in, or could reasonably be expected to result in, a
Material Adverse Effect.
50
Section 3.18. Insurance. Schedule 3.18 sets forth a true, complete and
correct description of all insurance maintained by the Borrower or by the
Borrower for its Subsidiaries as of the date hereof and the Closing Date. As of
each such date, such insurance is in full force and effect and all premiums have
been duly paid if due. The Borrower and its Subsidiaries have insurance in such
amounts and covering such risks and liabilities as are, when considered in its
entirety, in the good faith judgment of the Borrower prudent in the ordinary
course of business of the Borrower and its Subsidiaries.
Section 3.19. Security Documents. (a) The Guarantee and Collateral
Agreement, upon execution and delivery thereof by the parties thereto, will
create in favor of the Administrative Agent, for the ratable benefit of the
Secured Parties, a legal, valid and enforceable security interest in the
Collateral (as defined in the Guarantee and Collateral Agreement) and the
proceeds thereof and (i) when the Pledged Collateral (as defined in the
Guarantee and Collateral Agreement) is delivered to the Administrative Agent,
the Guarantee and Collateral Agreement shall constitute a fully perfected first
priority Lien on, and security interest in, all right, title and interest of the
Loan Parties in such Pledged Collateral, in each case prior and superior in
right to any other person, and (ii) when financing statements in appropriate
form are filed in the offices specified on Schedule 3.19(a), the Lien created
under the Guarantee and Collateral Agreement will constitute a fully perfected
Lien on, and security interest in, all right, title and interest of the Loan
Parties in all such Collateral as to which a security interest may be perfected
by such a filing (other than Intellectual Property), in each case prior and
superior in right to any other person, other than with respect to Liens
expressly permitted by Section 6.2.
(b) Upon the recordation of the Guarantee and Collateral Agreement with the
United States Patent and Trademark Office and the United States Copyright
Office, together with the financing statements in appropriate form filed in the
offices specified on Schedule 3.19(a), the Guarantee and Collateral Agreement
shall constitute a fully perfected Lien on, and security interest in, all right,
title and interest of the Loan Parties in the Intellectual Property in which a
security interest may be perfected by filing in the United States and its
territories and possessions, in each case prior and superior in right to any
other person (it being understood that subsequent recordings in the United
States Patent and Trademark Office and the United States Copyright Office may be
necessary to perfect a Lien on registered trademarks, trademark applications and
copyrights acquired by the Loan Parties after the date hereof).
(c) The Mortgages, if any, are effective to create in favor of the
Administrative Agent, for the ratable benefit of the Secured Parties, a legal,
valid and enforceable Lien on all of the Loan Parties' right, title and interest
in and to the Mortgaged Property thereunder and the proceeds thereof, and when
the Mortgages, if any, are filed in the offices specified on Schedule 3.19(c),
the Mortgages, if any, shall constitute a fully perfected Lien on, and security
interest in, all right, title and interest of the Loan Parties in such Mortgaged
Property and the proceeds thereof, in each case prior and superior in right to
any other person, other than with respect to the rights of persons pursuant to
Liens expressly permitted by Section 6.2.
Section 3.20. Location of Real Property and Leased Premises. Schedule
3.20(a) lists completely and correctly as of the Closing Date all domestic real
property owned by the Borrower and the Subsidiaries and the addresses thereof.
The Borrower and the Subsidiaries, as the case may be, as of the Closing Date,
own in fee all the real property set forth on Schedule 3.20(a). Schedule 3.20(b)
lists completely and correctly as of the Closing Date all material domestic real
property leased by the Borrower and the Subsidiaries and the addresses thereof.
The Borrower and the Subsidiaries, as the case may be, as of the Closing Date,
have valid leasehold interests in all the real property set forth on Schedule
3.20(b).
Section 3.21. Labor Matters. As of the date hereof and the Closing Date,
there are no strikes, lockouts or slowdowns against Holdings, the Borrower or
any Subsidiary pending or, to the knowledge of Holdings
51
or the Borrower, threatened. The consummation of the Transactions will not give
rise to any right of termination or right of renegotiation on the part of any
union under any collective bargaining agreement to which Holdings, the Borrower
or any Subsidiary is bound. Except to the extent any of the following,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect, (a) the hours worked by and payments made to employees
of Holdings, the Borrower and the Subsidiaries have not been in violation in any
material respect of the Fair Labor Standards Act or any other applicable
Federal, state, local or foreign law dealing with such matters and (b) all
payments due from Holdings, the Borrower or any Subsidiary, or for which any
claim may be made against Holdings, the Borrower or any Subsidiary, on account
of wages and employee health and welfare insurance and other benefits, have been
paid or accrued as a liability on the books of Holdings, the Borrower or such
Subsidiary.
Section 3.22. Solvency. Immediately after the consummation of the
Transactions to occur on the Closing Date and immediately following the making
of each Loan and after giving effect to the application of the proceeds of each
Loan, (a) the fair value of the assets of the Loan Parties taken as a whole, at
a fair valuation, will exceed their debts and liabilities, subordinated,
contingent or otherwise; (b) the present fair saleable value of the property of
the Loan Parties taken as a whole will be greater than the amount that will be
required to pay the probable liability of their debts and other liabilities,
subordinated, contingent or otherwise, as such debts and other liabilities
become absolute and matured; (c) the Loan Parties taken as a whole will be able
to pay their debts and liabilities, subordinated, contingent or otherwise, as
such debts and liabilities become absolute and matured; and (d) the Loan Parties
taken as a whole will not have unreasonably small capital with which to conduct
the business in which they are engaged as such business is now conducted and is
proposed to be conducted following the Closing Date.
Section 3.23. Representations and Warranties in Acquisition Documents. All
representations and warranties set forth in the Acquisition Documents were true
and correct at the time as of which such representations and warranties were
made (or deemed made) except where the failure to be true and correct could not
reasonably be likely to have a Material Adverse Effect.
Section 3.24. Senior Indebtedness. The Obligations constitute "Senior
Indebtedness" under and as defined in the Subordinated Bridge Loan Agreement
and, if applicable, any Subordinated Indebtedness Agreement.
Section 3.25. Certain Treasury Regulation Matters. The Borrower does not
intend to treat the Loans and related transactions as being a "reportable"
transaction (within the meaning of Treasury Regulation 1.6011-4). The Borrower
acknowledges that the Administrative Agent and one or more of the Lenders may
treat its Loans as part of a transaction that is subject to Treasury Regulation
Section 301.6112-1 to the extent that the Borrower's application of the proceeds
of the Loans requires the same and the Administrative Agent and such Lender or
Lenders, as applicable, may, in connection therewith, maintain such lists and
other records as they may determine is required by such Treasury Regulation.
Section 3.26. Foreign Assets Control Regulations, Etc. None of the
requesting or borrowing of the Loans, the requesting or issuance, extension or
renewal of any Letters of Credit or the use of the proceeds of any thereof will
violate the Trading With the Enemy Act (50 U.S.C. Section 1 et seq., as amended)
(the "Trading With the Enemy Act") or any of the foreign assets control
regulations of the United States Treasury Department (31 CFR, Subtitle B,
Chapter V, Part 500, as amended) (the "Foreign Assets Control Regulations") or
any enabling legislation or executive order relating thereto (which for the
avoidance of doubt shall include, but shall not be limited to (a) Executive
Order 13224 of September 21, 2001 Blocking Property and Prohibiting Transactions
With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg.
49079 (2001)) (the "Executive Order") and (b) the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001 (Public Law 107-56)). To the knowledge of the Borrower,
neither the Borrower nor any of its Subsidiaries (a) is a "blocked person" as
described in the Executive Order, the Trading With the Enemy
52
Act or the Foreign Assets Control Regulations or (b) engages transactions with
any such "blocked person" blocked by such order, law or regulation.
ARTICLE IV
Conditions of Lending
The obligations of the Lenders to make Loans and of the Issuing Bank to
issue Letters of Credit hereunder are subject to the satisfaction of the
following conditions:
Section 4.1. All Credit Events. On the date of each Borrowing, including
each Borrowing of a Swingline Loan and on the date of each issuance, amendment,
extension or renewal of a Letter of Credit (each such event being called a
"Credit Event"):
(a) The Administrative Agent shall have received a notice of such Borrowing
as required by Section 2.3 (or such notice shall have been deemed given in
accordance with Section 2.3) or, in the case of the issuance, amendment,
extension or renewal of a Letter of Credit, the Issuing Bank and the
Administrative Agent shall have received a notice requesting the issuance,
amendment, extension or renewal of such Letter of Credit as required by Section
2.22(b) or, in the case of the Borrowing of a Swingline Loan, the Swingline
Lender and the Administrative Agent shall have received a notice requesting such
Swingline Loan as required by Section 2.21(b).
(b) The representations and warranties set forth in Article III hereof and
in each other Loan Document shall be true and correct in all material respects
on and as of the date of such Credit Event with the same effect as though made
on and as of such date, except to the extent such representations and warranties
expressly relate to an earlier date, in which case they shall be true and
correct in all material respects on and as of such earlier date.
(c) At the time of and immediately after such Credit Event, no Event of
Default or Default shall have occurred and be continuing.
Each Credit Event shall be deemed to constitute a representation and
warranty by the Borrower and Holdings on the date of such Credit Event as to the
matters specified in paragraphs (b) and (c) of this Section 4.1.
Section 4.2. First Credit Event. On the Closing Date:
(a) The Administrative Agent shall have received, on behalf of itself,
the Lenders and the Issuing Bank, a favorable written opinion of (i)
Xxxxxxx Xxxx & Xxxxxxxxx, counsel for Holdings and the Borrower,
substantially to the effect set forth in Exhibit E-1, and (ii) each local
counsel listed on Schedule 4.2(a), substantially to the effect set forth in
Exhibit E-2, in each case (A) dated the Closing Date, (B) addressed to the
Issuing Bank, the Administrative Agent and the Lenders and (C) covering
such other matters relating to the Loan Documents and the Transactions as
the Administrative Agent shall reasonably request, and Holdings and the
Borrower hereby request such counsel to deliver such opinions.
(b) All legal matters incident to this Agreement, the Borrowings and
extensions of credit hereunder and the other Loan Documents shall be
reasonably satisfactory to the Lenders, to the Issuing Bank and to the
Administrative Agent.
53
(c) The Administrative Agent shall have received (i) a copy of the
certificate or articles of incorporation, including all amendments thereto,
of each Loan Party, certified as of a recent date by the Secretary of State
of the state of its organization, and a certificate as to the good standing
of each Loan Party as of a recent date, from such Secretary of State; (ii)
a certificate of the Secretary or Assistant Secretary of each Loan Party
dated the Closing Date and certifying (A) that attached thereto is a true
and complete copy of the by-laws of such Loan Party as in effect on the
Closing Date and at all times since a date prior to the date of the
resolutions described in clause (B) below, (B) that attached thereto is a
true and complete copy of resolutions duly adopted by the Board of
Directors of such Loan Party authorizing the execution, delivery and
performance of the Loan Documents to which such person is a party and, in
the case of the Borrower, the borrowings hereunder, and that such
resolutions have not been modified, rescinded or amended and are in full
force and effect, (C) that the certificate or articles of incorporation of
such Loan Party have not been amended since the date of the last amendment
thereto shown on the certificate of good standing furnished pursuant to
clause (i) above and (D) as to the incumbency and specimen signature of
each officer executing any Loan Document or any other document delivered in
connection herewith on behalf of such Loan Party; (iii) a certificate of
another officer as to the incumbency and specimen signature of the
Secretary or Assistant Secretary executing the certificate pursuant to
clause (ii) above; and (iv) such other documents as the Lenders, the
Issuing Bank or the Administrative Agent may reasonably request.
(d) The Administrative Agent shall have received a certificate, dated
the Closing Date and signed by a Financial Officer of the Borrower,
confirming compliance with the conditions precedent set forth in paragraphs
(b) and (c) of Section 4.1.
(e) The Administrative Agent and the Syndication Agent shall have
received all Fees and other amounts due and payable on or prior to the
Closing Date, including, to the extent invoiced, reimbursement or payment
of all out-of-pocket expenses required to be reimbursed or paid by the
Borrower hereunder or under any other Loan Document.
(f) The Security Documents shall have been duly executed by each Loan
Party that is to be a party thereto and shall be in full force and effect
on the Closing Date. The Administrative Agent on behalf of the Secured
Parties shall have a security interest in the Collateral of the type and
priority described in each Security Document, except to the extent
otherwise provided herein or in such Security Documents.
(g) The Administrative Agent shall have received a Perfection
Certificate with respect to the Loan Parties dated the Closing Date and
duly executed by a Responsible Officer of the Borrower, and shall have
received the results of a search of the Uniform Commercial Code filings (or
equivalent filings) made with respect to the Loan Parties in the states (or
other jurisdictions) of formation of such persons, in which the chief
executive office of each such person is located and in the other
jurisdictions in which such persons maintain property, in each case as
indicated on such Perfection Certificate, together with copies of the
financing statements (or similar documents) disclosed by such search, and
accompanied by evidence satisfactory to the Administrative Agent that the
Liens indicated in any such financing statement (or similar document) would
be permitted under Section 6.2 or have been or will be contemporaneously
released or terminated.
(h) [Reserved].
(i) The Administrative Agent shall have received a copy of, or a
certificate as to coverage under, the insurance policies required by
Section 5.2 and the applicable provisions of
54
the Security Documents, each of which shall be endorsed or otherwise
amended to include a customary lender's loss payable endorsement and to
name the Administrative Agent on behalf of the Secured Parties as
additional insured, in form and substance satisfactory to the
Administrative Agent.
(j) Acquisition, etc. The following transactions shall have been
consummated, in each case on terms and conditions reasonably satisfactory
to the Lenders:
(1) the Acquisition shall have been consummated;
(2) Holdings shall have received at least $101,500,000 from the
proceeds of equity issued by Holdings, and such proceeds
shall have been contributed to the Borrower (the "Holdings
Equity Contribution");
(3) the Borrower shall have received $50,000,000 in gross cash
proceeds from the Subordinated Bridge Loans;
(4) the Administrative Agent shall have received satisfactory
evidence that the cash fees and expenses to be incurred in
connection with the Acquisition and the financing thereof
shall not exceed $6,300,000;
(5) (i) The Administrative Agent shall have received
satisfactory evidence that the Existing Credit Agreement
shall have been terminated and all amounts thereunder shall
have been paid in full and (ii) arrangements satisfactory to
the Administrative Agent shall have been made for the
termination of all Liens granted in connection therewith;
and
(6) Immediately after giving effect to the Transactions and the
other transactions contemplated hereby, the Borrower and the
Subsidiaries shall have outstanding no Indebtedness or
preferred stock other than (a) Indebtedness outstanding
under this Agreement, (b) the Subordinated Bridge Loans and
(c) Indebtedness set forth on Schedule 6.1. Immediately
after giving effect to the Transactions and the other
transactions contemplated hereby, Holdings shall have no
outstanding Indebtedness or preferred stock other than its
Guarantee of the Indebtedness outstanding under this
Agreement and its Guarantee of the Subordinated Bridge
Loans.
(k) The Lenders shall have received the financial statements and
opinion referred to in Section 3.5.
(l) All requisite Governmental Authorities shall have approved or
consented to the Transactions and the other transactions contemplated
hereby to the extent required, all applicable appeal periods shall have
expired and there shall not be any pending or threatened litigation,
governmental, administrative or judicial action that could reasonably be
expected to prevent or impose materially burdensome conditions on the
Transactions or the other transactions contemplated hereby. All requisite
third-party consents necessary for the consummation of the Acquisition
shall have been obtained except for those third-party consents where the
failure to so obtain such consents would not have a Material Adverse
Effect.
55
(m) The Lenders shall have received a certificate of the chief
financial officer of the Borrower certifying that the Adjusted Leverage
Ratio as at September 30, 2004 (such day, the "Test Date"), is no greater
than 5.33 to 1.0 and containing all information and calculations necessary
for determining such ratio. For purposes of this paragraph (m) "Adjusted
Leverage Ratio" means the ratio of (i) total Indebtedness of the Borrower
and its Subsidiaries on the Closing Date after giving effect to the
Acquisition and the other Transactions consummated on the Closing Date
(excluding Letters of Credit) to (ii) consolidated pro forma EBITDA
(calculated in the manner previously agreed to by the Administrative Agent)
of the Company and its Subsidiaries for the period of 12 consecutive fiscal
months ending on the Test Date.
(n) The Administrative Agent shall have received a solvency
certificate from the chief financial officer of the Borrower documenting
the solvency of the Borrower and its Subsidiaries after giving effect to
the Transactions, in form and substance reasonably satisfactory to the
Administrative Agent.
ARTICLE V
Affirmative Covenants
Each of Holdings and the Borrower covenants and agrees with each Lender
that so long as this Agreement shall remain in effect and until the Commitments
have been terminated and the principal of and interest on each Loan, all Fees
and all other expenses or amounts payable under any Loan Document shall have
been paid in full and all Letters of Credit have been canceled or have expired
and all amounts drawn thereunder have been reimbursed in full, unless the
Required Lenders shall otherwise consent in writing, each of Holdings and the
Borrower will, and will cause each of its Subsidiaries to:
Section 5.1. Existence; Businesses and Properties. (a) Do or cause to be
done all things necessary to preserve, renew and keep in full force and effect
its legal existence, except as otherwise expressly permitted under Section 6.5.
(b) Do or cause to be done all things necessary to obtain, preserve, renew,
extend and keep in full force and effect all rights, licenses, permits,
franchises, authorizations, patents, copyrights, trademarks and trade names used
in or relating to the conduct of its business, except where the failure to do so
could not reasonably be expected to have a Material Adverse Effect; maintain and
operate such business in substantially the manner in which it is presently
conducted and operated, including any reasonable extension, development or
expansion thereof; comply with all applicable laws, rules, regulations and
decrees and orders of any Governmental Authority, whether now in effect or
hereafter enacted, except where the failure to do so could not reasonably be
expected to have a Material Adverse Effect; and at all times maintain and
preserve all property material to the conduct of such business and keep such
property in good repair, working order and condition and from time to time make,
or cause to be made, all needful and proper repairs, renewals, additions,
improvements and replacements thereto necessary in order that the business
carried on in connection therewith may be properly conducted at all times,
except where the failure to do so could not reasonably be expected to have a
Material Adverse Effect.
Section 5.2. Insurance. (a) Keep its insurable properties adequately
insured at all times by financially sound and reputable insurers; maintain such
other insurance, to such extent and against such risks, including fire and other
risks insured against by extended coverage, as is customary with companies in
the same or similar businesses operating in the same or similar locations,
including public liability insurance against claims for personal injury or death
or property damage occurring upon, in, about or in connection with the
56
use of any properties owned, occupied or controlled by it; and maintain such
other insurance as may be required by law.
(b) Cause all such policies covering any Collateral to be endorsed or
otherwise amended to include a customary lender's loss payable endorsement, in
form and substance satisfactory to the Administrative Agent, which endorsement
shall provide that, from and after the Closing Date, if the insurance carrier
shall have received written notice from the Administrative Agent of the
occurrence of an Event of Default, the insurance carrier shall pay all proceeds
otherwise payable to the Borrower or the Loan Parties under such policies
directly to the Administrative Agent; cause all such policies to provide that
neither the Borrower, the Administrative Agent nor any other party shall be a
coinsurer thereunder and to contain a "Replacement Cost Endorsement", without
any deduction for depreciation, and such other provisions as the Administrative
Agent may reasonably require from time to time to protect their interests;
deliver evidence of all such policies to the Administrative Agent; upon the
occurrence of an Event of Default, deliver original or certified copies of all
such policies to the Administrative Agent upon its request; cause each such
policy to provide that it shall not be canceled, modified or not renewed (i) by
reason of nonpayment of premium upon not less than 10 days' prior written notice
thereof by the insurer to the Administrative Agent (giving the Administrative
Agent the right to cure defaults in the payment of premiums) or (ii) for any
other reason upon not less than 30 days' prior written notice thereof by the
insurer to the Administrative Agent; deliver to the Administrative Agent, prior
to the cancellation, modification or nonrenewal of any such policy of insurance,
evidence of a renewal or replacement policy (or other evidence of renewal of a
policy previously delivered to the Administrative Agent) together with evidence
satisfactory to the Administrative Agent of payment of the premium therefor.
(c) If at any time the area in which the Premises, if any, (as defined in
the Mortgages) are located is designated (i) a "flood hazard area" in any Flood
Insurance Rate Map published by the Federal Emergency Management Agency (or any
successor agency), obtain flood insurance in such total amount as the
Administrative Agent or the Required Lenders may from time to time require, and
otherwise comply with the National Flood Insurance Program as set forth in the
Flood Disaster Protection Act of 1973, as it may be amended from time to time,
or (ii) a "Zone 1" area, obtain earthquake insurance in such total amount as the
Administrative Agent or the Required Lenders may from time to time require.
(d) With respect to any Mortgaged Property, if any, carry and maintain
comprehensive general liability insurance including a "broad form" commercial
general liability endorsement and coverage on an occurrence basis against claims
made for personal injury (including bodily injury, death and property damage)
and umbrella liability insurance against any and all claims, in no event for a
combined single limit of less than $1,000,000, naming the Administrative Agent
as an additional insured, on forms satisfactory to the Administrative Agent.
(e) Notify the Administrative Agent immediately whenever any separate
insurance concurrent in form or contributing in the event of loss with that
required to be maintained under this Section 5.2 is taken out by the Borrower;
and promptly deliver to the Administrative Agent a duplicate original copy of
such policy or policies.
Section 5.3. Taxes. Pay all taxes, assessments and governmental charges or
levies imposed upon it or upon its income or profits or in respect of its
property, before the same shall become delinquent or in default; provided,
however, that such payment and discharge shall not be required with respect to
any such tax, assessment, charge or levy so long as (a) the validity or amount
thereof shall be contested in good faith by appropriate proceedings and the
Borrower shall have set aside on its books adequate reserves with respect
thereto in accordance with GAAP and such contest operates to suspend collection
of the contested obligation, tax, assessment or charge and enforcement of a Lien
and, in the case of a Mortgaged Property,
57
there is no risk of forfeiture of such property or (b) the nonpayment thereof
could not reasonably be expected to result in a Material Adverse Effect.
Section 5.4. Financial Statements, Reports, etc. In the case of the
Borrower, furnish to the Administrative Agent (either physically or through
electronic delivery reasonably acceptable to the Administrative Agent), which
shall furnish to each Lender:
(a) the earlier of (x) the date of the required public filing of the
same and (y) within 105 days after the end of each fiscal year, its
consolidated balance sheet and related statements of income, stockholders'
equity and cash flows showing the financial condition of the Borrower and
its consolidated Subsidiaries as of the close of such fiscal year and the
results of its operations and the operations of such Subsidiaries during
such year, together with comparative figures for the immediately preceding
fiscal year, all audited by Ernst & Young LLP or other independent public
accountants of recognized national standing and accompanied by an opinion
of such accountants (which shall not be qualified in any material respect)
to the effect that such consolidated financial statements fairly present
the financial condition and results of operations of the Borrower and its
consolidated Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied;
(b) within 45 days after the end of each of the first three fiscal
quarters of each fiscal year, its consolidated balance sheet and related
statements of income, stockholders' equity and cash flows showing the
financial condition of the Borrower and its consolidated Subsidiaries as of
the close of such fiscal quarter and the results of its operations and the
operations of such Subsidiaries during such fiscal quarter and the then
elapsed portion of the fiscal year, and comparative figures for the same
periods in the immediately preceding fiscal year, all certified by one of
its Financial Officers as fairly presenting the financial condition and
results of operations of the Borrower and its consolidated Subsidiaries on
a consolidated basis in accordance with GAAP consistently applied, subject
to normal year-end audit adjustments;
(c) concurrently with any delivery of financial statements under
paragraph (a) or (b) above, a certificate of the accounting firm (in the
case of paragraph (a)) or Financial Officer (in the case of paragraph (b))
opining on or certifying such statements (which certificate, when furnished
by an accounting firm, may be limited to accounting matters and disclaim
responsibility for legal interpretations and which may be provided by a
Financial Officer if accounting firms generally are not providing such
certificates) (i) certifying that no Event of Default or Default has
occurred or, if such an Event of Default or Default has occurred,
specifying the nature and extent thereof and any corrective action taken or
proposed to be taken with respect thereto and (ii) setting forth
computations in reasonable detail satisfactory to the Administrative Agent
demonstrating compliance with the covenants contained in Sections 6.6,
6.10, 6.11 and 6.12 and, in the case of a certificate delivered with the
financial statements required by paragraph (a) above, (x) setting forth the
Borrower's calculation of Excess Cash Flow and (y) certifying that there
has been no change in the business activities, assets or liabilities of
Holdings, or if there has been any such change, describing such change in
reasonable detail and certifying that Holdings is in compliance with
Section 6.8;
(d) within 45 days after the commencement of each fiscal year of the
Borrower, a detailed consolidated budget for such fiscal year (including a
projected consolidated balance sheet and related statements of projected
operations and cash flows as of the end of and for such fiscal year);
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(e) promptly after the same become publicly available, copies of all
periodic and other reports, proxy statements and other materials filed by
Holdings, the Borrower or any Subsidiary with the SEC, or any Governmental
Authority succeeding to any or all of the functions of said Commission, or
with any national securities exchange, or, after the initial Public Equity
Offering (disregarding for purposes of this Section 5.4(e) the Net Cash
Proceeds dollar threshold contained in the definition of such term),
distributed to its shareholders, as the case may be;
(f) promptly after the receipt thereof by Holdings or the Borrower or
any Subsidiary, a copy of any "management letter" received by any such
person from its certified public accountants and the management's response
thereto; and
(g) promptly, from time to time, such other information regarding the
operations, business affairs and financial condition of Holdings, the
Borrower or any Subsidiary, or compliance with the terms of any Loan
Document, as the Administrative Agent or any Lender may reasonably request.
Documents required to be delivered pursuant to Section 5.4(a), (b) or (e) (to
the extent any such documents are included in materials otherwise filed with the
SEC) may be delivered electronically and if so delivered, shall be deemed to
have been delivered on the date (i) on which the Borrower posts such documents,
or provides a link thereto on the Borrower's website on the Internet at the
Borrower's website address; or (ii) on which such documents are posted on the
Borrower's behalf on IntraLinks/IntraAgency or another relevant website, if any,
to which each Lender and the Administrative Agent have access (whether a
commercial, third-party website or whether sponsored by the Administrative
Agent).
Section 5.5. Litigation and Other Notices. Furnish to the Administrative
Agent, the Issuing Bank and each Lender prompt written notice of the following:
(a) any Event of Default or Default, specifying the nature and extent
thereof and the corrective action (if any) taken or proposed to be taken
with respect thereto;
(b) the filing or commencement of, or any threat or notice of
intention of any person to file or commence, any action, suit or
proceeding, whether at law or in equity or by or before any Governmental
Authority, against the Borrower or any Affiliate thereof that could
reasonably be expected to result in a Material Adverse Effect;
(c) the occurrence of any ERISA Event that, alone or together with any
other ERISA Events that have occurred, could reasonably be expected to
result in liability of the Borrower and its ERISA Affiliates in an
aggregate amount exceeding $2,500,000; and
(d) any development that has resulted in, or could reasonably be
expected to result in, a Material Adverse Effect.
Section 5.6. Information Regarding Collateral. (a) Furnish to the
Administrative Agent prompt written notice of any change in (i) any Loan Party's
legal name, (ii) the jurisdiction of organization or formation of any Loan
Party, (iii) any Loan Party's identity or corporate structure or (iv) any Loan
Party's Federal Taxpayer Identification Number. Holdings and the Borrower agree
not to effect or permit any change referred to in the preceding sentence unless
all filings have been made under the Uniform Commercial Code or otherwise that
are required in order for the Administrative Agent to continue at all times
following such change to have a valid, legal and perfected security interest in
all the Collateral. Holdings and the Borrower also agree promptly to notify the
Administrative Agent if any material portion of the Collateral is damaged or
destroyed.
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(b) In the case of the Borrower, each year, at the time of delivery of the
annual financial statements with respect to the preceding fiscal year pursuant
to Section 5.4(a), deliver to the Administrative Agent a certificate of a
Financial Officer setting forth the information required pursuant to Section 2
of the Perfection Certificate or confirming that there has been no change in
such information since the date of the Perfection Certificate delivered on the
Closing Date or the date of the most recent certificate delivered pursuant to
this Section 5.6.
Section 5.7. Maintaining Records; Access to Properties and Inspections.
Keep proper books of record and account in which full, true and correct entries
in conformity with GAAP and all requirements of law are made of all dealings and
transactions in relation to its business and activities. Each Loan Party will,
and will cause each of its subsidiaries to, permit any representatives
designated by the Administrative Agent or any Lender to visit and inspect the
financial records and the properties of Holdings, the Borrower or any Material
Subsidiary at reasonable times and as often as reasonably requested (but not,
except during the continuance of an Event of Default, more than two times per
fiscal year) and to make extracts from and copies of such financial records, and
permit any representatives designated by the Administrative Agent or any Lender
to discuss the affairs, finances and condition of Holdings, the Borrower or any
Material Subsidiary with the officers thereof and independent accountants
therefor. Except following the occurrence and during the continuance of any
Default, the Borrower shall be entitled to have a representative present at all
such discussions and to obtain a copy of all written requests for information
relating to any Loan Party made by the Administrative Agent or any Lender to any
third party.
Section 5.8. Use of Proceeds. Use the proceeds of (a) the Term Loans (other
than the Incremental Term Loans) to pay (i) a portion of the Existing Credit
Agreement and other existing Indebtedness of the Borrower, (ii) transaction
costs incurred in connection with the Transactions and (iii) a portion of the
purchase price set forth in the Acquisition Agreement, (b) the Revolving Loans
and Swingline Loans for working capital and general corporate purposes, (c) the
Letters of Credit for general corporate purposes and (d) Incremental Term Loans
for general corporate purposes (including Permitted Acquisitions and the
HealthScribe Acquisition).
Section 5.9. Further Assurances. Execute any and all further documents,
financing statements, agreements and instruments, and take all further action
(including (i) filing Uniform Commercial Code and other financing statements,
mortgages and deeds of trust and (ii) delivering duly executed deposit account
control agreements as contemplated by, and within the time period referred to
in, the Guarantee and Collateral Agreement) that may be required under
applicable law, or that the Required Lenders or the Administrative Agent may
reasonably request, in order to effectuate the transactions contemplated by the
Loan Documents and in order to grant, preserve, protect and perfect the validity
and first priority of the security interests created or intended to be created
by the Security Documents. The Borrower will cause any subsequently acquired or
organized Domestic Subsidiary (other than any Inactive Subsidiary) or any
Domestic Subsidiary that ceases to be an Inactive Subsidiary to become a Loan
Party by executing the Guarantee and Collateral Agreement and each other
applicable Security Document in favor of the Administrative Agent. In addition,
subject to the last sentence of this Section 5.9, from time to time, the
Borrower will, at its cost and expense, promptly secure the Obligations by
pledging or creating, or causing to be pledged or created, perfected security
interests with respect to such of its assets and properties as the
Administrative Agent or the Required Lenders shall designate (it being
understood that it is the intent of the parties that the Obligations shall be
secured by substantially all the assets of the Borrower and its Subsidiaries
(including real and other properties acquired subsequent to the Closing Date,
but excluding real property with an individual value of less than $1,000,000,
leasehold real property, other immaterial leasehold property, and other Excluded
Property (as defined in the Guarantee and Collateral Agreement). Such security
interests and Liens will be created under the Security Documents and other
security agreements, mortgages, deeds of trust and other instruments and
documents in form and substance satisfactory to the Administrative Agent, and
the Borrower shall deliver or cause to
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be delivered to the Lenders all such instruments and documents (including legal
opinions, title insurance policies and lien searches) as the Administrative
Agent shall reasonably request to evidence compliance with this Section 5.9. The
Borrower agrees to provide such evidence as the Administrative Agent shall
reasonably request as to the perfection and priority status of each such
security interest and Lien. In furtherance of the foregoing, the Borrower will
give prompt notice to the Administrative Agent of the acquisition by it or any
of the Domestic Subsidiaries of any real property (or any interest in real
property) having an individual value in excess of $1,000,000. The actions
required under this Section 5.9 shall be taken within 30 days (or such later
time as may be acceptable to the Administrative Agent) after the event giving
rise to the requirement to take such action. Notwithstanding the foregoing, (x)
the Administrative Agent shall not take a security interest in those assets as
to which the Administrative Agent shall determine, in its reasonable discretion,
that the cost of obtaining such Lien (including any mortgage, stamp, intangibles
or other tax) are excessive in relation to the benefit to the Lenders of the
security afforded thereby and (y) Liens required to be granted pursuant to this
Section 5.9 shall be subject to exceptions and limitations consistent with those
set forth in the Collateral Documents as in effect on the Closing Date (to the
extent appropriate in the applicable jurisdiction).
Section 5.10. Certain Treasury Regulation Matters. In the event the
Borrower determines to take any action inconsistent with its intention as set
forth in the first sentence of Section 3.25, it will promptly notify the
Administrative Agent thereof.
Section 5.11. Hedging Agreements. In the case of the Borrower, within 180
days after the Closing Date, enter into, and thereafter maintain, Hedging
Agreements to the extent necessary to provide that at least 50% of the aggregate
principal amount of Funded Debt of the Borrower outstanding on the date 180 days
after the Closing Date is subject to either a fixed interest rate or interest
rate protection for a period of not less than two years from the Closing Date,
which Hedging Agreements shall have terms and conditions reasonably satisfactory
to the Administrative Agent.
Section 5.12. Environmental Laws. Except, in each case, as would not,
individually or in the aggregate, have a Material Adverse Effect:
(a) Comply in all material respects with, and use reasonable efforts to
ensure compliance in all material respects by all tenants and subtenants, if
any, with, all applicable Environmental Laws, and obtain and comply in all
material respects with and maintain, and use reasonable efforts to ensure that
all tenants and subtenants obtain and comply in all material respects with and
maintain, any and all Environmental Permits required of them by any applicable
Environmental Laws. For purposes of this Section 5.12(a), noncompliance with the
foregoing shall be deemed not to constitute a breach of this covenant, provided,
that upon learning of any actual or suspected noncompliance, Borrower shall
promptly undertake reasonable efforts to achieve compliance.
(b) Conduct and complete in all material respects all investigations,
studies, sampling and testing, and all remedial, removal and other actions
required to be undertaken by any Group Member under Environmental Laws and
promptly comply with all orders and directives applicable to any Group Member of
all Governmental Authorities regarding Environmental Laws; provided, however,
that this covenant shall be deemed not violated if the relevant Group Member
promptly challenges in good faith any such order or directive in a manner
consistent with all applicable Environmental Laws and other Requirements of Law
and pursues such challenge or challenges diligently.
(c) Generate, use, treat, store, release, dispose of, and otherwise manage
Materials of Environmental Concern in a manner that would not reasonably be
expected to result in a material liability to any Group Member or to materially
affect any real property owned or leased by any of them; and take reasonable
efforts to prevent any other Person from generating, using, treating, storing,
releasing,
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disposing of, or otherwise managing Materials of Environmental Concern in a
manner that could reasonably be expected to result in a material liability to,
or materially affect any real property owned or operated by, any Group Member.
For purposes of this Section 5.12(c), noncompliance with the foregoing shall be
deemed not to constitute a breach of this covenant, provided, that, upon
learning of any actual or suspected noncompliance, the Borrower shall promptly
undertake reasonable efforts to remove such Materials of Environmental Concern
or otherwise remediate them in a manner consistent with applicable Environmental
Law.
(d) Maintain, update as appropriate, and implement in all material respects
an ongoing program reasonably designed to ensure that all the properties and
operations of the Group Members are regularly and reasonably reviewed by
competent professionals to identify and promote compliance with and to
reasonably and prudently manage any liabilities or potential liabilities under
any Environmental Law that may affect any Group Member, including, without
limitation, compliance and liabilities relating to: discharges to air and water;
acquisition, transportation, storage and use of hazardous materials; waste
disposal; repair, maintenance and improvement of properties; employee health and
safety; species protection; and recordkeeping.
ARTICLE VI
Negative Covenants
Each of Holdings and the Borrower covenants and agrees with each Lender
that, so long as this Agreement shall remain in effect and until the Commitments
have been terminated and the principal of and interest on each Loan, all Fees
and all other expenses or amounts payable under any Loan Document have been paid
in full and all Letters of Credit have been cancelled or have expired and all
amounts drawn thereunder have been reimbursed in full, unless the Required
Lenders shall otherwise consent in writing, neither Holdings nor the Borrower
will, nor will they cause or permit any of its Subsidiaries to:
Section 6.1. Indebtedness. Incur, create, assume or permit to exist any
Indebtedness, except:
(a) Indebtedness existing on the date hereof and set forth in Schedule
6.1, including in the case of lines of credit the maximum amount of
Indebtedness permitted to be incurred thereunder;
(b) (i) Indebtedness created hereunder and under the other Loan
Documents and (ii) Indebtedness created under the Subordinated Bride Loan
Agreement and the other "Loan Documents" (as defined in the Subordinated
Bridge Loan Agreement);
(c) intercompany Indebtedness of Holdings, the Borrower and the
Subsidiaries to the extent permitted by Section 6.4(c);
(d) Indebtedness of the Borrower or any Subsidiary incurred to finance
the acquisition, construction or improvement of any fixed or capital
assets, and extensions, renewals and replacements of any such Indebtedness
that do not increase the outstanding principal amount thereof (plus the
amount of any interest, premiums or penalties required to be paid thereon
plus fees and expenses associated therewith); provided, that (i) such
Indebtedness is incurred prior to or within 120 days after such acquisition
or the completion of such construction or improvement and (ii) the
aggregate principal amount of Indebtedness permitted by this Section
6.1(d), when combined with the aggregate principal amount of all Capital
Lease Obligations and Synthetic Lease Obligations incurred pursuant to
Section 6.1(e), shall not exceed $6,000,000 at any time outstanding;
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(e) Capital Lease Obligations and Synthetic Lease Obligations in an
aggregate principal amount, when combined with the aggregate principal
amount of all Indebtedness incurred pursuant to Section 6.1(d), not in
excess of $6,000,000 at any time outstanding;
(f) Indebtedness under completion guarantees, performance or surety
bonds or with respect to workers' compensation claims, in each case
incurred in the ordinary course of business;
(g) (i) Subordinated Indebtedness of the Borrower the proceeds of
which are used to finance the cash consideration payable in the
HealthScribe Acquisition (including the refinancing of Indebtedness of
HealthScribe and the payment of related fees and expenses) and/or to
refinance the Subordinated Bridge Loans in full, in an aggregate principal
amount not to exceed $130,000,000 at any time outstanding; and (ii)
Guarantees of any Guarantor in respect of such Indebtedness, provided that
such Guarantees are unsecured and subordinated to the same extent such
Indebtedness is subordinated to the Obligations;
(h) Indebtedness acquired or assumed by the Borrower or any Subsidiary
in connection with any Permitted Acquisition or the HealthScribe
Acquisition in an aggregate principal amount not in excess of $10,000,000
at any time outstanding; provided, that such Indebtedness existed at the
time of such Permitted Acquisition or the HealthScribe Acquisition and was
not created in connection therewith or in contemplation thereof;
(i) (i) Subordinated Indebtedness of the Borrower the proceeds of
which are used to finance the cash consideration payable in a Permitted
Acquisition (including the refinancing of Indebtedness of the Acquired
Entity and the payment of related fees and expenses) and/or to refinance
the Subordinated Bridge Loans in full, in an aggregate principal amount not
in excess of $170,000,000 at any time outstanding and (ii) Guarantees of
any Guarantor in respect of such Indebtedness, provided, that such
Guarantees are unsecured and subordinated to the same extent as such
Indebtedness is subordinated to the Obligations;
(j) (i) additional Subordinated Indebtedness of the Borrower the
proceeds of which are used to prepay outstanding Term Loans pursuant to
Section 2.13(d) and (ii) Guarantees of any Guarantor in respect of such
Indebtedness, provided, that such Guarantees are unsecured and subordinated
to the same extent as such Indebtedness is subordinated to the Obligations;
(k) Indebtedness under or in respect of Hedging Agreements that are
not speculative in nature;
(l) Subordinated Mezzanine Indebtedness of the Borrower the proceeds
of which are used solely to refinance the Subordinated Bridge Loans in
full, in an aggregate principal amount not in excess of $50,000,000 at any
time outstanding; and (ii) Guarantees of any Guarantor in respect of such
Indebtedness, provided, that such Guarantees are unsecured and subordinated
to the same extent as such Indebtedness is subordinated to the Obligations;
(m) Indebtedness incurred to extend, renew or refinance any
Indebtedness described in Xxxxxxx 0.0(x), (x), (x), (x), (x), (x) or (l)
("Refinancing Indebtedness"); provided, that (i) such Refinancing
Indebtedness is in an aggregate principal amount not greater than the
aggregate principal amount of the Indebtedness being extended, renewed or
refinanced, plus the amount of any interest, premiums or penalties required
to be paid thereon plus fees and expenses associated therewith, (ii) such
Refinancing Indebtedness has a later or equal final maturity and a longer
or equal weighted average life to maturity than the Indebtedness being
extended, renewed or refinanced, (iii) if the Indebtedness being extended,
renewed or refinanced is subordinated (either
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in right of payment or lien subordination) to the Obligations, the
Refinancing Indebtedness is subordinated to the Obligations on terms no
less favorable to the Lenders than the Indebtedness being extended, renewed
or refinanced, (iv) only the obligors in respect of the Indebtedness being
extended, renewed or refinanced may become obligated with respect to such
Refinancing Indebtedness, (v) the security interest(s) granted in
connection with such Refinancing Indebtedness, if any, shall not cover more
collateral, in any material respect, than the security interest(s), if any,
granted in connection with the Indebtedness being refinanced and (vi) the
non-economic covenants, events of default, remedies and other provisions of
the Refinancing Indebtedness, when taken as a whole, shall be materially no
less favorable to the Lenders than those contained in the Indebtedness
being extended, renewed or refinanced;
(n) Indebtedness arising from the honoring by a bank or other
financial institution of a check, draft or similar instrument inadvertently
drawn against insufficient funds in the ordinary course of business, so
long as such Indebtedness is extinguished within three Business Days of the
incurrence thereof;
(o) Indebtedness of Foreign Subsidiaries not to exceed $10,000,000 in
the aggregate at any one time;
(p) [Reserved];
(q) Cash Management Obligations and other Indebtedness in respect of
netting services, overdraft protections and similar arrangements in each
case in connection with deposit accounts;
(r) Indebtedness consisting of (i) the financing of insurance premiums
or (ii) take-or-pay obligations contained in supply arrangements, in each
case, in the ordinary course of business;
(s) Indebtedness incurred by the Borrower or any of its Subsidiaries
constituting reimbursement obligations with respect to letters of credit
issued in the ordinary course of business, including without limitation
letters of credit in respect of workers compensation claims, health,
disability or other employee benefits or property, casualty or liability
insurance or self-insurance or other Indebtedness with respect to
reimbursement-type obligations regarding workers compensation claims;
provided, that (i) upon the drawing of such letters of credit or the
incurrence of such Indebtedness, such obligations are reimbursed within 30
days following such drawing or incurrence and (ii) such letters of credit
are not provided to secure the repayment of other Indebtedness of Holdings,
the Borrower or any of their respective Subsidiaries;
(t) Indebtedness of the Borrower in respect of the Subordinated Bridge
Loans and Guarantees of any Guarantors in respect of such Indebtedness,
provided that such Guarantees are subordinated to the same extent as the
obligations of the Borrower in respect of the Subordinated Bridge Loans;
and
(u) other Indebtedness of the Borrower or the Domestic Subsidiaries in
an aggregate principal amount not exceeding $10,000,000 at any time
outstanding.
Section 6.2. Liens. Create, incur, assume or permit to exist any Lien on
any property or assets (including Equity Interests or other securities of any
person, including any Subsidiary) now owned or hereafter acquired by it or on
any income or revenues or rights in respect of any thereof, except:
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(a) Liens on property or assets of the Borrower and its Subsidiaries
existing on the date hereof and set forth in Schedule 6.2; provided, that
such Liens shall secure only those obligations which they secure on the
date hereof and any extensions, renewals and replacements thereof permitted
hereunder;
(b) any Lien created under the Loan Documents;
(c) any Lien existing on any property or asset prior to the
acquisition thereof by the Borrower or any Subsidiary; provided, that (i)
such Lien is not created in contemplation of or in connection with such
acquisition, (ii) such Lien does not apply to any other property or assets
of the Borrower or any Subsidiary and (iii) such Lien does not materially
interfere with the use, occupancy and operation of any Mortgaged Property;
(d) Liens for taxes not yet due or which are being contested in
compliance with Section 5.3;
(e) carriers', landlords', warehousemen's, mechanics', materialmen's,
repairmen's or other like Liens arising in the ordinary course of business
and securing obligations that are not due and payable or which are being
contested in compliance with Section 5.3;
(f) pledges and deposits made in the ordinary course of business in
compliance with workmen's compensation, unemployment insurance and other
social security laws or regulations;
(g) deposits to secure the performance of bids, trade contracts
(other than for Indebtedness), leases (other than Capital Lease
Obligations), statutory obligations, surety and appeal bonds, performance
bonds and other obligations of a like nature incurred in the ordinary
course of business;
(h) zoning restrictions, easements, rights-of-way, restrictions on
use of real property and other similar encumbrances incurred in the
ordinary course of business which, in the aggregate, do not materially
detract from the value of the property subject thereto or interfere with
the ordinary conduct of the business of the Borrower or any of its
Subsidiaries as currently operated;
(i) purchase money security interests in real property, improvements
thereto or equipment hereafter acquired (or, in the case of improvements,
constructed) by the Borrower or any Subsidiary; provided, that (i) such
security interests secure Indebtedness permitted by Section 6.1, (ii) such
security interests are incurred, and the Indebtedness secured thereby is
created, within 120 days after such acquisition (or construction), and
(iii) such security interests do not apply to any other property or assets
of the Borrower or any Subsidiary (it being agreed that transactions with
the same vendor or any Affiliate of such vendor may be
cross-collateralized);
(j) Liens arising out of judgments or awards in respect of which
Holdings, the Borrower or any of the Subsidiaries shall in good faith be
prosecuting an appeal or proceedings for review in respect of which there
shall be secured a subsisting stay of execution pending such appeal or
proceedings; provided, that the aggregate amount of all such judgments or
awards (and any cash and the fair market value of any property subject to
such Liens) does not exceed $2,500,000 at any time outstanding;
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(k) any interest or title of a licensor, lessor or sublessor under
any license or lease agreement pursuant to which rights are granted to the
Borrower or any Subsidiary;
(l) licenses, leases or subleases granted by the Borrower or any
Subsidiary to third persons in the ordinary course of business not
interfering in any material respect with the business of the Borrower or
any Subsidiary;
(m) Liens in favor of customs or revenue authorities arising as a
matter of law to secure payment of customs duties in connection with the
importation of goods;
(n) restrictions imposed in the ordinary course of business on the
sale or distribution of designated inventory pursuant to agreements with
customers under which such inventory is consigned by the customer or such
inventory is designated for sale to one or more customers;
(o) (i) Liens on the assets of a Foreign Subsidiary that is not a
Subsidiary Guarantor securing Indebtedness permitted to be incurred by such
Foreign Subsidiary pursuant to Section 6.1(m) and (ii) other Liens on the
assets of a Foreign Subsidiary that is not a Subsidiary Guarantor securing
Indebtedness by such Foreign Subsidiary not, in the case of this clause
(ii), in excess of $1,000,000;
(p) Liens on the Collateral of the Borrower and Guarantors securing,
on a Second Priority Basis, Subordinated Mezzanine Indebtedness permitted
under Section 6.1(l);
(q) any interest of a lessor under Liens arising from precautionary
UCC financing statement filings regarding leases entered into by the
Borrower or any of its Subsidiaries in the ordinary course of business;
(r) Liens arising out of conditional sale, title retention,
consignment or similar arrangements for the sale of goods entered into by
the Borrower or any of its Subsidiaries in the ordinary course of business;
(s) Liens deemed to exist in connection with investments in
repurchase agreements permitted under this Agreement;
(t) Liens that are contractual or statutory setoff rights arising in
the ordinary course of business with financial institutions, relating to
pooled deposit accounts or sweep accounts of Holdings and its Subsidiaries
to permit satisfaction of overdraft or similar obligations incurred in the
ordinary course of business or relating to purchase orders or other
agreements entered into with customers of Holdings or any of its
Subsidiaries in the ordinary course of business;
(u) Liens solely on any xxxx xxxxxxx money deposits by the Borrower
or any of its Subsidiaries in connection with any letter of intent or
purchase agreement permitted under this Agreement; and
(v) other Liens on the assets of the Borrower or any Domestic
Subsidiary that do not, individually or in the aggregate, secure
obligations (or encumber property with a fair market value) in excess of
$10,000,000 at any one time.
Section 6.3. Sale and Lease-Back Transactions. Enter into any arrangement,
directly or indirectly, with any person whereby it shall sell or transfer any
property, real or personal, used or useful in its business, whether now owned or
hereafter acquired, and thereafter rent or lease such property or other property
66
which it intends to use for substantially the same purpose or purposes as the
property being sold or transferred unless (a) the sale of such property is
permitted by Section 6.5 and (b) any Capital Lease Obligations, Synthetic Lease
Obligations or Liens arising in connection therewith are permitted by Sections
6.1 and 6.2, as applicable.
Section 6.4. Investments, Loans and Advances. Purchase, hold or acquire any
Equity Interests, evidences of indebtedness or other securities of, make or
permit to exist any loans or advances to, or make or permit to exist any
investment or any other interest in, any other person, except:
(a) (i) investments by Holdings, the Borrower and the Subsidiaries
existing on the date hereof in the Equity Interests of the Borrower and the
Subsidiaries and (ii) additional investments by Holdings, the Borrower and
the Subsidiaries in the Equity Interests of the Borrower and the
Subsidiaries; provided, that (A) any such Equity Interests held by a Loan
Party shall be pledged pursuant to the Guarantee and Collateral Agreement
(subject to the limitations applicable to voting stock of a Foreign
Subsidiary referred to therein) and (B) the aggregate amount of investments
by Loan Parties in, and loans and advances by Loan Parties to, Subsidiaries
that are not Loan Parties (determined without regard to any write-downs or
write-offs of such investments, loans and advances but taking into account
repayments, redemptions, return of capital, etc.) under this clause (ii)
shall not exceed at any time outstanding the sum of (v) $10,000,000, (w)
the principal amount of any loan the proceeds of which are used to fund
Capital Expenditures in an aggregate amount not to exceed $5,000,000
(provided, that any such loan made by a Loan Party to a Subsidiary that is
not a Loan Party must have a maturity of no greater than, and must be
repaid within, two (2) years from the date of issuance), (x) the principal
amount of any dividend by a Subsidiary that is not a Loan Party to a Loan
Party made in the form of a promissory note payable by such Subsidiary that
is not a Loan Party to such Loan Party (provided, that, in connection with
the issuance of such promissory note, no loans, advances or other payments
were made by such Loan Party to such Subsidiary that is not a Loan Party),
(y) the amount of any investment or principal amount of any advance funded
with the proceeds of Equity Interests issued by Holdings and (z) the amount
of any investment or principal amount of any advance the proceeds of which
are used to fund a Permitted Acquisition or the HealthScribe Acquisition
and which such Loan Party obtained through items (I) through (IV) of
Section 6.4(g)(iii)(D);
(b) Permitted Investments;
(c) loans or advances made by the Borrower to any Subsidiary and made
by the Borrower or any Subsidiary to Holdings, the Borrower or any other
Subsidiary; provided, that (i) any such loans and advances made by a Loan
Party shall be evidenced by a promissory note pledged to the Administrative
Agent for the ratable benefit of the Secured Parties pursuant to the
Guarantee and Collateral Agreement, (ii) the amount of such loans and
advances made by Loan Parties to Subsidiaries that are not Loan Parties
shall be subject to the limitation set forth in clause (a) above and (iii)
the aggregate amount of outstanding loans and advances made to Holdings
shall not exceed $1,500,000 during any fiscal year of the Borrower or
$5,000,000 at any time during the term of this Agreement; provided, that
the amount of any loans and advances that can be made during any fiscal
year pursuant to clause (iii) above shall be increased by the amount of
unused permitted loans and advances for any preceding fiscal year so long
as the aggregate amount of such loans and advances does not exceed
$5,000,000 at any time during the term of this Agreement;
67
(d) investments received in connection with the bankruptcy or
reorganization of, or settlement of delinquent accounts and disputes with,
customers and suppliers, in each case in the ordinary course of business;
(e) the Borrower and the Subsidiaries may make loans and advances in
the ordinary course of business to their respective employees so long as
the aggregate principal amount thereof at any time outstanding (determined
without regard to any write-downs or write-offs of such loans and advances)
shall not exceed $1,000,000 in the case of cash loans and advances and
$2,000,000 in the case of non-cash loans and advances at any time and
advances in the ordinary course of business of payroll payments to
employees;
(f) the Borrower may enter into Hedging Agreements that are not
speculative in nature;
(g) the Borrower or any Subsidiary may acquire all or substantially
all the assets of a person or line of business of such person, or not less
than 100% of the Equity Interests (except for directors' qualifying shares)
of a person (referred to herein as the "Acquired Entity"); provided, that
(i) such acquisition was not preceded by an unsolicited tender offer for
such Equity Interests by, or proxy contest initiated by, Holdings, the
Borrower or any Subsidiary; (ii) the Acquired Entity shall be a going
concern and after giving effect to the acquisition the Borrower shall be in
compliance with Section 6.8; (iii) at the time of such transaction (A) both
before and after giving effect thereto, no Event of Default or Default
shall have occurred and be continuing; (B) the Borrower would be in Pro
Forma Compliance (assuming for purposes of making such determination with
respect to the covenant set forth in Section 6.12 that the Leverage Ratio
is at least, 25 to 1.00 lower than the Leverage Ratio set forth therein and
in effect at the time such determination is made); (C) after giving effect
to such acquisition, there must be at least $5,000,000 of unused and
available Revolving Credit Commitments; and (D) each Permitted Acquisition
shall only consist of, or be financed with (I) cash and Permitted
Investments of the Borrower and its Subsidiaries, (II) the proceeds of
Equity Interests of Holdings and (III) Incremental Term Loans and (IV)
Indebtedness incurred under Section 6.1(c), (g), (h), (i), (l), (o) and (u)
(or any Refinancing Indebtedness thereof), and (iv) the Borrower shall
comply, and shall cause the Acquired Entity to comply, with the applicable
provisions of Section 5.9 and the Security Documents (any acquisition of an
Acquired Entity meeting all the criteria of this Section 6.4(g) being
referred to herein as a "Permitted Acquisition");
(h) the Borrower may consummate the HealthScribe Acquisition as long
as the Pro Forma Leverage Ratio (calculated in a manner reasonably
satisfactory to the Administrative Agent but excluding Letters of Credit
from the calculation of total Indebtedness) as at the last day of the most
recently ended fiscal quarter preceding the consummation of the
HealthScribe Acquisition is no greater than 5.75 to 1.00 after giving
effect to the HealthScribe Acquisition;
(i) the Borrower and its Subsidiaries may acquire and hold
receivables owing to it, if created or acquired in the ordinary course of
business and payable or dischargeable in accordance with customary trade
terms (including the dating of receivables) of the Borrower or such
Subsidiary;
(j) Holdings may acquire and hold obligations of one or more
officers or other employees of Holdings or its subsidiaries in connection
with such officers' or employees' acquisition of Equity Interests of
Holdings;
68
(k) the Borrower and its Subsidiaries may acquire and hold non-cash
consideration issued by the purchaser of assets in connection with a sale
of such assets to the extent permitted by Section 6.5;
(l) investments, loans and advances existing on the date hereof and
set forth in Schedule 6.4;
(m) investments by the Borrower or any Subsidiary in joint ventures
or similar arrangements in an aggregate amount at any time outstanding not
to exceed $2,500,000; and
(n) in addition to investments permitted by paragraphs (a) through
(m) above, additional investments, loans and advances by the Borrower and
the Subsidiaries so long as the aggregate amount invested, loaned or
advanced pursuant to this paragraph (n) (determined without regard to any
write-downs or write-offs of such investments, loans and advances but
taking into account repayments, redemptions, return of capital etc.) does
not exceed (i) $25,000,000 in the aggregate at any one time outstanding or
(ii) $15,000,000 in the aggregate at any one time outstanding with respect
to investments in foreign joint ventures or similar arrangements (provided,
that clause (ii) above shall not limit investments in Foreign
Subsidiaries).
Section 6.5. Mergers, Consolidations, Sales of Assets and Acquisitions.
(a) Merge into or consolidate with any other person, or permit any other person
to merge into or consolidate with it, or sell, transfer, lease or otherwise
dispose of (in one transaction or in a series of transactions) all or
substantially all of the assets (whether now owned or hereafter acquired) of the
Borrower or less than all the Equity Interests of any Subsidiary, or purchase,
lease or otherwise acquire (in one transaction or a series of transactions) all
or any substantial part of the assets of any other person, except that (i) the
Borrower and any Subsidiary may purchase and sell inventory, materials and
equipment in the ordinary course of business and may license Intellectual
Property in the ordinary course of business and (ii) if at the time thereof and
immediately after giving effect thereto no Event of Default or Default shall
have occurred and be continuing (u) any Subsidiary may change its form of
organization in compliance with Section 5.6(a), if applicable, (v) any Person
may make investments and advances permitted by Section 6.4, (w) any wholly owned
Subsidiary may merge into the Borrower in a transaction in which the Borrower is
the surviving corporation, (x) any wholly owned Subsidiary may merge into or
consolidate with any other wholly owned Subsidiary in a transaction in which the
surviving entity is a wholly owned Subsidiary and no person other than the
Borrower, a wholly owned Subsidiary or the De Minimis Holders receives any
consideration (provided, that if any party to any such transaction is a Loan
Party, the surviving entity of such transaction shall be a Loan Party), (y) the
Borrower and the Subsidiaries may make Permitted Acquisitions and the
HealthScribe Acquisition and (z) any Subsidiary of the Borrower may merge with
another person in a transaction constituting an Asset Sale permitted hereunder.
(b) Engage in any Asset Sale otherwise permitted under paragraph (a) above
unless (i) such Asset Sale is for consideration at least 75% of which is cash
(other than in the case of a like-kind exchange or trade-in of one asset for
another asset used or useful in the business of the Borrower and its
Subsidiaries), (ii) such consideration is at least equal to the fair market
value of the assets being sold, transferred, leased or disposed of and (iii)
other than in the case of the sale of one or more parcels of real property in
connection with the relocation of the operations of the Borrower or any
Subsidiary, the fair market value of all assets sold, transferred, leased or
disposed of pursuant to this paragraph (b) shall not exceed $20,000,000 in any
fiscal year.
Section 6.6. Restricted Payments; Restrictive Agreements. (a) Declare or
make, or agree to declare or make, directly or indirectly, any Restricted
Payment (including pursuant to any Synthetic Purchase Agreement
69
but excluding any Restricted Payment made to consummate the Transactions), or
incur any obligation (contingent (unless the contingency is the repayment of the
Obligations or receipt of consent from the requisite lenders under this
Agreement) or otherwise) to do so; provided, however, that:
(i) any Subsidiary may declare and pay dividends or make other
distributions ratably to its equity holders;
(ii) so long as no Event of Default or Default shall have occurred and
be continuing or would result therefrom, Holdings may (and the Borrower may
make distributions to Holdings to enable Holdings to repurchase or make
distributions to Parent to enable it to) repurchase Equity Interests of
Holdings or Parent owned by employees of Holdings or Parent, the Borrower
or the Subsidiaries or make payments to employees of Holdings or Parent,
the Borrower or the Subsidiaries upon termination of employment of such
employees (including as a result of retirement or severance) in connection
with the exercise of stock options, stock appreciation rights or similar
equity incentives or equity based incentives pursuant to management
incentive plans or in connection with the death or disability of such
employees in an aggregate amount not to exceed $2,500,000 in any fiscal
year (it being agreed that (A) any amount not utilized in any fiscal year
may be carried forward and utilized in any subsequent fiscal year, (B) such
amount shall be increased by the amount of cash proceeds received by
Holdings from the sale of Equity Interests of Holdings or Parent to such
employees after the Closing Date to the extent such proceeds are
contributed directly or indirectly to the Borrower as common equity and (C)
any proceeds of key man life insurance actually received by the Borrower or
Holdings may be used or distributed by the Borrower or Holdings for
purposes of such repurchases without regard to such amount);
(iii) so long as no Event of Default under clause (b) or (c) of
Article VII shall have occurred and be continuing, the Borrower may pay
dividends to Holdings to permit Holdings to pay management fees in an
aggregate amount not to exceed $1,500,000 per fiscal year; provided, that
(a) any such amount referred to above, if not so expended in the fiscal
year for which it is permitted, may be carried over for expenditure in the
next two succeeding fiscal years and (b) management fees paid pursuant to
this clause (iii) during any fiscal year shall be deemed made, first, in
respect of amounts carried over from the fiscal year two years prior
thereto pursuant to clause (a) above, second, in respect of amounts carried
over from the immediately prior fiscal year pursuant to clause (a) above,
and, third, in respect of amounts permitted for such fiscal year as
provided above;
(iv) (x) the Borrower and Holdings may make Restricted Payments to
Holdings and/or Parent the proceeds of which shall be applied by Holdings
and/or Parent to pay out of pocket general corporate and overhead expenses
incurred by Holdings and/or Parent not to exceed $5,000,000 during any
fiscal year of the Borrower (including without limitation expenses incurred
in connection with financings of Holdings or Parent, the proceeds of which
are not loaned or otherwise distributed to the Borrower and its
Subsidiaries) and (y) the Loan Parties may make Restricted Payments to
Holdings and/or Parent in the form of Tax Payments, to the extent such Tax
Payments are directly attributable to (or arise as a result of) the
operations of the Borrower and the Subsidiaries; provided, however, that
(A) in the case of Restricted Payments made in the form of a Tax Payment,
the amount of such Restricted Payments shall not exceed the amount that the
Borrower and the Subsidiaries would be required to pay in respect of
Federal, State and local taxes were the Borrower and the Subsidiaries to
pay such taxes as stand-alone taxpayers, (B) all Restricted Payments made
to Holdings and/or Parent pursuant to this clause (iv) are used by Holdings
and/or Parent for the purposes specified herein within 20 days of the
receipt thereof and (C) in the case of any Restricted Payment made to
Holdings pursuant to this clause
70
(iv), Holdings owns, beneficially and of record, 100% of the issued and
outstanding Equity Interests of the Borrower at the time of such Restricted
Payment;
(v) in addition to the foregoing Restricted Payments and so long as no
Default or Event of Default shall have occurred and be continuing or would
result therefrom, the Borrower may make additional Restricted Payments to
Holdings the proceeds of which may be utilized by Holdings to make
additional Restricted Payments, in an aggregate amount not to exceed 100%
of Cumulative Excess Cash Flow that is Not Otherwise Applied if the
Leverage Ratio as of the last day of the immediately preceding four fiscal
quarters (after giving pro forma effect to such additional Restricted
Payments) was less than 4.00 to 1.00;
(vi) Holdings may make Restricted Payments in any fiscal year to the
extent made with the proceeds of an equity issuance (so long as such equity
issuance is to any person other than a Loan Party) permitted hereunder;
(vii) the Borrower may make a Restricted Payment to Holdings and/or
the Parent on or prior to December 31, 2005 the proceeds of which shall be
used by Holdings or the Parent to make a Restricted Payment to Xxxxx
Private Equity Investors LP and its Affiliates in the amount of
approximately $1,009,000; and
(viii) Holdings, the Borrower and its Subsidiaries may make additional
Restricted Payments not in excess of $5,000,000 in the aggregate so long as
no Default or Event of Default shall have occurred and be continuing or
would result therefrom.
Notwithstanding the foregoing, in the event that the failure to comply with any
Financial Performance Covenant is cured through the exercise of the Cure Right
set forth in Article VII, Sections 6.6(a)(iii), (v) (vi) and (viii) above shall
only be available to the Loan Parties if (x) the Required Lenders consent to the
relevant Restricted Payment pursuant to Section 6.6(a)(iii), (v), (vi) or (viii)
or (y) the Borrower is in compliance with all Financial Performance Covenants
for the end of any two consecutive fiscal quarters following the fiscal quarter
in which the Borrower exercised its Cure Right.
(b) Enter into, incur or permit to exist any agreement or other arrangement
that prohibits, restricts or imposes any condition upon (i) the ability of
Holdings, the Borrower or any Subsidiary to create, incur or permit to exist any
Lien upon any of its property or assets to secure the Obligations or (ii) the
ability of any Subsidiary to pay dividends or other distributions with respect
to any of its Equity Interests or to make or repay loans or advances to the
Borrower or any other Subsidiary or to Guarantee Indebtedness of the Borrower or
any other Subsidiary; provided, that (A) the foregoing shall not apply to
restrictions and conditions imposed by law or by any Loan Document or the
Subordinated Bridge Loan Agreement, (B) the foregoing shall not apply to
customary restrictions and conditions contained in agreements relating to the
sale of stock or assets of a Subsidiary pending such sale, provided, such
restrictions and conditions apply only to the Subsidiary that is to be sold and
such sale is permitted hereunder, (C) clause (i) of the foregoing shall not
apply to restrictions or conditions imposed by any agreement relating to secured
Indebtedness permitted by this Agreement if such restrictions or conditions
apply only to the property or assets securing such Indebtedness, (D) clause (i)
of the foregoing shall not apply to customary provisions in leases and other
contracts restricting the assignment thereof and (E) clauses (i) and (ii) of the
foregoing shall not apply to restrictions and conditions imposed (1) under debt
agreements of Foreign Subsidiaries incurred under Sections 6.1(h) and 6.1(o) or
(2) under contracts with customers entered into the ordinary course of business
that contain restrictions on cash or other deposits or net worth.
71
Section 6.7. Transactions with Affiliates. Except for transactions by or
among Loan Parties, sell or transfer any property or assets to, or purchase or
acquire any property or assets from, or otherwise engage in any other
transactions with, any of its Affiliates, except that (a) the Borrower or any
Subsidiary may engage in any of the foregoing transactions at prices and on
terms and conditions not less favorable to the Borrower or such Subsidiary than
could be obtained on an arm's-length basis from unrelated third parties, (b)
dividends and purchases may be paid and effected to the extent provided in
Section 6.6, (c) the Loan Parties may perform their respective obligations under
the terms of the Tax Sharing Agreement or any other agreement with any of its
Affiliates in effect on the Closing Date and set forth on Schedule 6.7, or any
amendments thereto that do not materially increase the Loan Parties' obligations
thereunder, (d) reasonable fees and compensation may be paid to, and indemnities
may be provided on behalf of, officers, directors and employees of, and
consultants (other than the Sponsor) to, Holdings, the Borrower and the
Subsidiaries, as determined by the Board of Directors or appropriate officers of
the Borrower in good faith, (e) securities may be issued and other payments,
awards or grants (in cash, equity securities or otherwise) may be made pursuant
to, or with respect to the funding of, employment arrangements, stock options
and stock ownership plans approved by the Board of Directors of the Borrower in
good faith, (f) the Loan Parties may perform their respective obligations under
the terms of any registration rights agreement, (g) loans, investments and
advances may be made to the extent permitted by Sections 6.1 and 6.4, (h)
Restricted Payments permitted to be made pursuant to Section 6.6, (i) equity
securities may be sold and (j) fees may be paid to the Sponsor in respect of any
acquisitions or dispositions with respect to which the Sponsor acts as an
adviser to Holdings, the Borrower or any Subsidiary in an amount not to exceed
1% of the value of such transaction.
Section 6.8. Business of Holdings, Borrower and Subsidiaries. (a) With
respect to Holdings, engage in any business activities or have any assets or
liabilities other than (i) its ownership of the Equity Interests of the Borrower
and liabilities incidental thereto, including its liabilities hereunder and
pursuant to the Guarantee and Collateral Agreement, (ii) Indebtedness permitted
under Section 6.1 and (iii) engaging in other business activities expressly
permitted by the Loan Documents.
(b) With respect to the Borrower and its Subsidiaries, engage at any time
in any business or business activity other than the business currently conducted
by them and business activities that constitute a reasonable extension,
development or expansion thereof reasonably incidental thereto.
Section 6.9. Other Indebtedness; Material Agreements. (a) Permit any
supplement, modification or amendment of any joint venture or similar agreement
or any indenture, instrument or agreement pursuant to which any Material
Indebtedness of Holdings, the Borrower or any of the Subsidiaries is outstanding
if the effect of such supplement, modification or amendment as a whole would
materially increase the obligations (including, without limitation, the pricing
thereof) of the obligor or confer additional material rights on the holder of
such Indebtedness (or the counterparty to the joint venture or similar
agreement, as applicable) in a manner that would be, or could reasonably be
expected to be, materially detrimental to the Borrower or materially adverse to
the interests of the Lenders, as determined in good faith by the Borrower.
(b) (i) Make any distribution, whether in cash, property, securities or a
combination thereof in excess of $5,000,000 during the term of this Agreement,
other than regular scheduled payments of principal and interest as and when due
(to the extent not prohibited by applicable subordination provisions), in
respect of, or pay, or offer or commit to pay, or directly or indirectly
(including pursuant to any Synthetic Purchase Agreement) redeem, repurchase,
retire or otherwise acquire for consideration, or set apart any sum for the
aforesaid purposes, any subordinated Indebtedness (provided, however, that the
foregoing shall not prohibit any refinancings of Indebtedness in accordance with
Section 6.1(m) or the conversion of any such Indebtedness into equity securities
or a Permitted Subordinated Bridge Loan
72
Refinancing) or (ii) pay in cash any amount in respect of any Indebtedness or
preferred Equity Interests that may at the obligor's option be paid in kind or
in other securities.
Section 6.10. Capital Expenditures. (a) Permit the aggregate amount of
Capital Expenditures made by the Borrower and the Subsidiaries in any fiscal
year of the Borrower to exceed the sum of (i) the amount set forth below for
such fiscal year as the "Capital Expenditure Base Amount" for such year, and
(ii) the Acquired CapEx Amount:
Capital Expenditure Base Amount prior Capital Expenditure Base Amount after
Fiscal Year Ended to the HealthScribe Acquisition Date the HealthScribe Acquisition Date
----------------- ------------------------------------- -------------------------------------
December 31, 2005 $9,000,000 $13,500,000
December 31, 2006 $9,000,000 $13,500,000
December 31, 2007 $9,000,000 $14,000,000
December 31, 2008 $9,000,000 $14,000,000
December 31, 2009 $9,000,000 $14,000,000
December 31, 2010 $9,000,000 $14,000,000
In addition to the foregoing, the aggregate amount of Capital Expenditures
made by the Borrower and its Subsidiaries for the four fiscal quarters ending
June 30, 2005 shall not exceed $13,000,000 if the HeathScribe Acquisition Date
occurs on or prior to June 30, 2005. For purposes of this Section 6.10, the
"Acquired CapEx Amount", with respect to any Acquired Entity, shall equal the
product of (x) the aggregate amount of Capital Expenditures made by the Acquired
Entity in the two fiscal years prior to the date of the Permitted Acquisition
and (y) 0.50.
(b) The amount of permitted Capital Expenditures set forth in paragraph (a)
above (as adjusted in accordance with the terms thereof) in respect of any
fiscal year commencing with the fiscal year ending on January 1, 2005, shall be
increased (but not decreased) by the amount of unused permitted Capital
Expenditures for the two immediately preceding fiscal years; provided, that
Capital Expenditures made pursuant to this Section during any fiscal year shall
be deemed made, first, in respect of amounts carried over from the fiscal year
two years prior thereto pursuant to the preceding sentence, second, in respect
of amounts carried over from the immediately prior fiscal year pursuant to the
preceding sentence, and, third, in respect of amounts permitted for such fiscal
year as provided above.
Section 6.11. Interest Coverage Ratio. (a) Prior to the HealthScribe
Acquisition Date, permit the Interest Coverage Ratio for any period of four
consecutive fiscal quarters, in each case taken as one accounting period, ending
on a date or during any period set forth below to be less than the ratio set
forth opposite such date or period below:
73
Date or Period Ratio
-------------- -----
January 1, 2005 through December 31, 2005 2.25 to 1.00
January 1, 2006 through March 31, 2006 2.25 to 1.00
April 1, 2006 through June 30, 2006 2.30 to 1.00
July 1, 2006 through September 30, 2006 2.40 to 1.00
October 1, 2006 through December 31, 2006 2.50 to 1.00
January 1, 2007 through March 31, 2007 2.50 to 1.00
April 1, 2007 through June 30, 2007 2.75 to 1.00
July 1, 2007 through September 30, 2007 3.00 to 1.00
October 1, 2007 through December 31, 2007 3.25 to 1.00
January 1, 2008 through March 31, 2008 3.25 to 1.00
April 1, 2008 through June 30, 2008 3.50 to 1.00
July 1, 2008 through September 30, 2008 3.75 to 1.00
October 1, 2008 through December 31, 2008 4.00 to 1.00
January 1, 2009 through March 31, 2009 4.10 to 1.00
April 1, 2009 through June 30, 2009 4.30 to 1.00
July 1, 2009 through September 30, 2009 4.40 to 1.00
October 1, 2009 and thereafter 4.50 to 1.00
74
; provided, that for the purposes of determining the ratio described above for
each of the fiscal quarters of the Borrower ending March 31, 2005, June 30, 2005
and September 30, 2005, such ratio for the relevant quarter shall be determined
on the basis of Consolidated EBITDA and Consolidated Interest Expense for the
period commencing January 1, 2005.
(b) From and after the HealthScribe Acquisition Date, permit the Interest
Coverage Ratio for any period of four consecutive fiscal quarters, in each case
taken as one accounting period, ending on a date or during any period set forth
below to be less than the ratio set forth opposite such date or period below:
Date or Period Ratio
-------------- -----
January 1, 2005 through June 30, 2005 1.75 to 1.00
July 1, 2005 through December 31, 2005 1.80 to 1.00
January 1, 2006 through June 30, 2006 1.90 to 1.00
July 1, 2006 through September 30, 2006 2.00 to 1.00
October 1, 2006 through December 31, 2006 2.10 to 1.00
January 1, 2007 through March 31, 2007 2.25 to 1.00
April 1, 2007 through June 30, 2007 2.25 to 1.00
July 1, 2007 through September 30, 2007 2.50 to 1.00
October 1, 2007 through December 31, 2007 2.50 to 1.00
January 1, 2008 through March 31, 2008 2.50 to 1.00
April 1, 2008 through June 30, 2008 2.75 to 1.00
July 1, 2008 through September 30, 2008 2.75 to 1.00
October 1, 2008 through December 31, 2008 3.00 to 1.00
75
January 1, 2009 through March 31, 2009 3.00 to 1.00
April 1, 2009 through June 30, 2009 3.25 to 1.00
July 1, 2009 through September 30, 2009 3.50 to 1.00
October 1, 2009 and thereafter 3.75 to 1.00
; provided, that for the purposes of determining the ratio described above for
each of the fiscal quarters of the Borrower ending March 31, 2005, June 30, 2005
and September 30, 2005, such ratio for the relevant quarter shall be determined
on the basis of Consolidated EBITDA and Consolidated Interest Expense for the
period commencing January 1, 2005.
Section 6.12. Maximum Leverage Ratio. (a) Prior to the HealthScribe
Acquisition Date, permit the Leverage Ratio at the end of any fiscal quarter
ending on a date or during a period set forth below to be greater than the ratio
set forth opposite such date or period below.
Date or Period Ratio
-------------- -----
January 1, 2005 through March 31, 2005 5.70 to 1.00
April 1, 2005 through June 30, 2005 5.50 to 1.00
July 1, 2005 through September 30, 2005 5.30 to 1.00
October 1, 2005 through December 31, 2005 5.10 to 1.00
January 1, 2006 through March 31, 2006 4.75 to 1.00
April 1, 2006 through June 30, 2006 4.50 to 1.00
July 1, 2006 through September 30, 2006 4.25 to 1.00
October 1, 2006 through December 31, 2006 4.00 to 1.00
January 1, 2007 through March 31, 2007 3.75 to 1.00
76
April 1, 2007 through June 30, 2007 3.50 to 1.00
July 1, 2007 through September 30, 2007 3.25 to 1.00
October 1, 2007 through December 31, 2007 3.00 to 1.00
January 1, 2008 through March 31, 2008 3.00 to 1.00
April 1, 2008 through June 30, 2008 2.75 to 1.00
July 1, 2008 through September 30, 2008 2.50 to 1.00
October 1, 2008 through December 31, 2008 2.25 to 1.00
January 1, 2009 through March 31, 2009 2.25 to 1.00
April 1, 2009 and thereafter 2.00 to 1.00
(b) From and after the HealthScribe Acquisition Date, permit the Leverage
Ratio at the end of any fiscal quarter ending on a date or during a period set
forth below to be greater than the ratio set forth opposite such date or period
below.
Date or Period Ratio
-------------- -----
January 1, 2005 through June 30, 2005 6.50 to 1.00
July 1, 2005 through December 31, 2005 6.25 to 1.00
January 1, 2006 through March 31, 2006 6.00 to 1.00
April 1, 2006 through June 30, 2006 5.75 to 1.00
July 1, 2006 through September 30, 2006 5.50 to 1.00
October 1, 2006 through December 31, 2006 5.00 to 1.00
77
January 1, 2007 through March 31, 2007 4.75 to 1.00
April 1, 2007 through June 30, 2007 4.50 to 1.00
July 1, 2007 through September 30, 2007 4.25 to 1.00
October 1, 2007 through December 31, 2007 4.00 to 1.00
January 1, 2008 through March 31, 2008 3.75 to 1.00
April 1, 2008 through June 30, 2008 3.50 to 1.00
July 1, 2008 through September 30, 2008 3.25 to 1.00
October 1, 2008 through December 31, 2008 3.00 to 1.00
January 1, 2009 through March 31, 2009 2.75 to 1.00
April 1, 2009 and thereafter 2.50 to 1.00
Section 6.13. Fiscal Year. Permit the fiscal year of Holdings or the
Borrower to end on a day other than December 31.
Section 6.14. Amendments to Acquisition Documentation. (a) Amend,
supplement or otherwise modify (pursuant to a waiver or otherwise) the terms and
conditions of the indemnities and licenses furnished to the Borrower or any of
its Subsidiaries pursuant to the Acquisition Documentation such that after
giving effect thereto such indemnities or licenses shall be materially less
favorable to the interests of the Loan Parties or the Lenders with respect
thereto or (b) otherwise amend, supplement or otherwise modify the terms and
conditions of the Acquisition Documentation or any such other documents except
for any such amendment, supplement or modification that (i) becomes effective
after the Closing Date and (ii) could not reasonably be expected to have a
Material Adverse Effect.
ARTICLE VII
Events of Default
In case of the happening of any of the following events ("Events of
Default"):
(a) any representation or warranty made or deemed made in or in connection
with any Loan Document or the borrowings or issuances of Letters of Credit
hereunder, or any representation, warranty, statement or information contained
in any report, certificate, financial statement or other instrument
78
furnished in connection with or pursuant to any Loan Document, shall prove to
have been false or misleading in any material respect when so made, deemed made
or furnished;
(b) default shall be made in the payment of any principal of any Loan or
the reimbursement with respect to any L/C Disbursement when and as the same
shall become due and payable, whether at the due date thereof or at a date fixed
for prepayment thereof or by acceleration thereof or otherwise;
(c) default shall be made in the payment of any interest on any Loan or L/C
Disbursement or of any Fee or any other amount (other than an amount referred to
in (b) above) due under any Loan Document, when and as the same shall become due
and payable, and such default shall continue unremedied for a period of three
Business Days;
(d) default shall be made in the due observance or performance by Holdings,
the Borrower or any Subsidiary of any covenant, condition or agreement contained
in Section 5.1(a) or 5.5(a), or in Article VI;
(e) default shall be made in the due observance or performance by Holdings,
the Borrower or any Subsidiary of any covenant, condition or agreement contained
in any Loan Document (other than those specified in (b), (c) or (d) above) and
such default shall continue unremedied for a period of 30 days after notice
thereof from the Administrative Agent or any Lender to the Borrower;
(f) (i) Holdings, the Borrower or any Material Subsidiary shall fail to pay
any principal or interest, regardless of amount, due in respect of any Material
Indebtedness, when and as the same shall become due and payable or within any
applicable grace period, or (ii) any event or condition occurs that results in
any Material Indebtedness becoming due prior to its scheduled maturity or that
enables or permits (with or without the giving of notice, the lapse of time or
both) the holder or holders of any Material Indebtedness or any trustee or agent
on its or their behalf to cause any Material Indebtedness to become due, or to
require the prepayment, repurchase, redemption or defeasance thereof, prior to
its scheduled maturity; provided, that this clause (ii) shall not apply to
secured Indebtedness that becomes due as a result of the voluntary sale or
transfer of the property or assets securing such Indebtedness;
(g) 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 Holdings, the Borrower or any Material Subsidiary, or of a
substantial part of the property or assets of Holdings, the Borrower or a
Material Subsidiary, under Title 11 of the United States Code, as now
constituted or hereafter amended, or any other Federal, state or foreign
bankruptcy, insolvency, receivership or similar law, (ii) the appointment of a
receiver, trustee, custodian, sequestrator, conservator or similar official for
Holdings, the Borrower or any Material Subsidiary or for a substantial part of
the property or assets of Holdings, the Borrower or a Subsidiary or (iii) the
winding-up or liquidation of Holdings, the Borrower or any Material Subsidiary;
and such proceeding or petition shall continue undismissed for 60 days or an
order or decree approving or ordering any of the foregoing shall be entered;
(h) Holdings, the Borrower or any Material Subsidiary shall (i) voluntarily
commence any proceeding or file any petition seeking relief under Title 11 of
the United States Code, as now constituted or hereafter amended, or any other
Federal, state or foreign bankruptcy, insolvency, receivership or similar law,
(ii) consent to the institution of, or fail to contest in a timely and
appropriate manner, any proceeding or the filing of any petition described in
(g) above, (iii) apply for or consent to the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for Holdings, the
Borrower or any Material Subsidiary or for a substantial part of the property or
assets of Holdings, the Borrower or any Material Subsidiary, (iv) file an answer
admitting the material allegations of a petition filed against it in any such
proceeding, (v) make a general assignment for the benefit of creditors, (vi)
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become unable, admit in writing its inability or fail generally to pay its debts
as they become due or (vii) take any action for the purpose of effecting any of
the foregoing;
(i) one or more judgments for the payment of money in an aggregate amount
in excess of $2,500,000 (net of amounts covered by independent third party
insurance as to which the insurer has been notified of such judgment or order
and does not deny coverage and of amounts covered by an indemnity from a Person
that, in the reasonable judgment of the Administrative Agent, is creditworthy)
from a party shall be rendered against Holdings, the Borrower, any Material
Subsidiary or any combination thereof and the same shall remain undischarged for
a period of 30 consecutive days during which execution shall not be effectively
stayed, or any action shall be legally taken by a judgment creditor to levy upon
assets or properties of Holdings, the Borrower or any Material Subsidiary to
enforce any such judgment;
(j) an ERISA Event shall have occurred that, in the opinion of the Required
Lenders, when taken together with all other ERISA Events that have occurred,
could reasonably be expected to result in liability of the Borrower and its
ERISA Affiliates in an aggregate amount exceeding $2,500,000;
(k) any Guarantee under the Guarantee and Collateral Agreement for any
reason shall cease to be in full force and effect (other than in accordance with
its terms), or any Guarantor shall deny in writing that it has any further
liability under the Guarantee and Collateral Agreement (other than as a result
of the discharge of such Guarantor in accordance with the terms of the Loan
Documents);
(l) any security interest in any material item of Collateral purported to
be created by any Security Document shall cease to be, or shall be asserted by
the Borrower or any other Loan Party not to be, a valid, perfected, first
priority (except as otherwise expressly provided in this Agreement or such
Security Document) security interest in the securities, assets or properties
covered thereby, except to the extent that any such loss of perfection or
priority results from the failure of the Administrative Agent to maintain
possession of certificates representing securities pledged under the Pledge
Agreement and except to the extent that such loss is covered by a lender's title
insurance policy and the related insurer shall not have denied or disclaimed in
writing that such loss is covered by such title insurance policy;
(m) the Indebtedness under the Subordinated Bridge Loans or any Guarantees
thereof or, if applicable, the Subordinated Indebtedness, the Subordinated
Mezzanine Indebtedness or any Guarantees thereof shall cease, for any reason, to
be validly subordinated to the Obligations, as provided in the Subordinated
Bridge Loan Agreement or the relevant Subordinated Indebtedness Agreement, as
applicable, or any Loan Party or any Affiliate of any Loan Party shall so
assert; or
(n) there shall have occurred a Change in Control;
then, and in every such event (other than an event with respect to Holdings or
the Borrower described in paragraph (g) or (h) (i) - (v) above), and at any time
thereafter during the continuance of such event, the Administrative Agent may,
and at the request of the Required Lenders shall, by notice to the Borrower,
take either or both of the following actions, at the same or different times:
(i) terminate forthwith the Commitments and (ii) declare the Loans then
outstanding to be forthwith due and payable in whole or in part, whereupon the
principal of the Loans so declared to be due and payable, together with accrued
interest thereon and any unpaid accrued Fees and all other liabilities of the
Borrower accrued hereunder and under any other Loan Document, shall become
forthwith due and payable, without presentment, demand, protest or any other
notice of any kind, all of which are hereby expressly waived by the Borrower,
anything contained herein or in any other Loan Document to the contrary
notwithstanding; and in any event with respect to Holdings or the Borrower
described in paragraph (g) or (h) (i) - (v) above, the Commitments shall
automatically terminate and the principal of the Loans then outstanding,
together with accrued interest thereon and any unpaid accrued Fees and all other
liabilities of the Borrower accrued
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hereunder and under any other Loan Document, shall automatically become due and
payable, without presentment, demand, protest or any other notice of any kind,
all of which are hereby expressly waived by the Borrower, anything contained
herein or in any other Loan Document to the contrary notwithstanding.
Notwithstanding anything to the contrary contained in this Article VII, in the
event that the Borrower would otherwise fail to comply with the requirements of
Section 6.11 or 6.12 (each, a "Financial Performance Covenant") at the end of
any fiscal quarter, at any time within ten days after the date on which a
Compliance Certificate must be delivered for the end of such fiscal quarter or
fiscal year, as applicable, Holdings shall have the right, exercisable at any
time during the term of this Agreement (provided that it may not be exercised
with respect to more than two fiscal quarters during any consecutive four fiscal
quarter period), to issue Permitted Cure Securities (as defined below) for cash
or otherwise receive cash contributions to the capital of Holdings, and to
contribute any such cash to the capital of Borrower (the "Cure Right"), and upon
the receipt by Borrower of such cash (the "Cure Amount") pursuant to the
exercise by Holdings of such Cure Right, the Financial Performance Covenants
shall be recalculated giving effect to the following pro forma adjustments:
(i) Consolidated EBITDA shall be increased solely for the purpose of
measuring the Financial Performance Covenants and not for any other
purpose under this Agreement, by an amount equal to the Cure Amount;
and
(ii) if, after giving effect to the foregoing recalculations, the Borrower
shall then be in compliance with the requirements of all Financial
Performance Covenants, the Borrower shall be deemed to have satisfied
the requirements of the Financial Performance Covenants as of the
relevant date of determination with the same effect as though there
had been no failure to comply therewith at such date, and the
applicable breach or default of any such Financial Performance
Covenant that would have otherwise occurred on such date but for the
application of the foregoing recalculations shall be deemed not to
have occurred.
As used in this Article VII, the term "Permitted Cure Securities" shall mean an
equity security of Holdings having no mandatory redemption, repurchase,
repayment or similar requirements prior to the six-month anniversary of the Term
Loan Maturity Date and upon which all dividends or distributions, at the
election of Holdings, may be payable in additional shares of such equity
security.
ARTICLE VIII
The Agents
Section 8.1. Appointment. Each Lender hereby irrevocably designates and
appoints the Administrative Agent as the agent of such Lender under this
Agreement and the other Loan Documents, and each such Lender irrevocably
authorizes the Administrative Agent, in such capacity, to take such action on
its behalf under the provisions of this Agreement and the other Loan Documents
and to exercise such powers and perform such duties as are expressly delegated
to the Administrative Agent by the terms of this Agreement and the other Loan
Documents, together with such other powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary elsewhere in this Agreement, the
Administrative Agent shall not have any duties or responsibilities, except those
expressly set forth herein, or any fiduciary relationship with any Lender, and
no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other Loan Document or
otherwise exist against the Administrative Agent.
Section 8.2. Delegation of Duties. The Administrative Agent may execute any
of its duties under this Agreement and the other Loan Documents by or through
agents or attorneys-in-fact and shall be entitled
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to advice of counsel concerning all matters pertaining to such duties. The
Administrative Agent shall not be responsible for the negligence or misconduct
of any agents or attorneys in-fact selected by it with reasonable care.
Section 8.3. Exculpatory Provisions. Neither any Agent nor any of their
respective officers, directors, employees, agents, attorneys-in-fact or
affiliates shall be (i) liable for any action lawfully taken or omitted to be
taken by it or such Person under or in connection with this Agreement or any
other Loan Document (except to the extent that any of the foregoing are found by
a final and nonappealable decision of a court of competent jurisdiction to have
resulted from its or such Person's own gross negligence or willful misconduct)
or (ii) responsible in any manner to any of the Lenders for any recitals,
statements, representations or warranties made by any Loan Party or any officer
thereof contained in this Agreement or any other Loan Document or in any
certificate, report, statement or other document referred to or provided for in,
or received by the Agents under or in connection with, this Agreement or any
other Loan Document or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any other Loan Document or
for any failure of any Loan Party a party thereto to perform its obligations
hereunder or thereunder. The Agents shall not be under any obligation to any
Lender to ascertain or to inquire as to the observance or performance of any of
the agreements contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect the properties, books or records of any Loan Party.
Section 8.4. Reliance by Administrative Agent. The Administrative Agent
shall be entitled to rely, and shall be fully protected in relying, upon any
instrument, writing, resolution, notice, consent, certificate, affidavit,
letter, telecopy, telex or teletype message, statement, order or other document
or conversation believed by it to be genuine and correct and to have been
signed, sent or made by the proper Person or Persons and upon advice and
statements of legal counsel (including counsel to Holdings or the Borrower),
independent accountants and other experts selected by the Administrative Agent.
The Administrative Agent may deem and treat the payee of any Note as the owner
thereof for all purposes unless a written notice of assignment, negotiation or
transfer thereof shall have been filed with the Administrative Agent. The
Administrative Agent shall be fully justified in failing or refusing to take any
action under this Agreement or any other Loan Document unless it shall first
receive such advice or concurrence of the Required Lenders (or, if so specified
by this Agreement, all Lenders) as it deems appropriate or it shall first be
indemnified to its satisfaction by the Lenders against any and all liability and
expense that may be incurred by it by reason of taking or continuing to take any
such action. The Administrative Agent shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement and the other Loan
Documents in accordance with a request of the Required Lenders (or, if so
specified by this Agreement, all Lenders), and such request and any action taken
or failure to act pursuant thereto shall be binding upon all the Lenders and all
future holders of the Loans.
Section 8.5. Notice of Default. The Administrative Agent shall not be
deemed to have knowledge or notice of the occurrence of any Default or Event of
Default unless the Administrative Agent has received notice from a Lender,
Holdings or the Borrower referring to this Agreement, describing such Default or
Event of Default and stating that such notice is a "notice of default". In the
event that the Administrative Agent receives such a notice, the Administrative
Agent shall give notice thereof to the Lenders. The Administrative Agent shall
take such action with respect to such Default or Event of Default as shall be
reasonably directed by the Required Lenders (or, if so specified by this
Agreement, all Lenders); provided that unless and until the Administrative Agent
shall have received such directions, the Administrative Agent may (but shall not
be obligated to) take such action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable in the
best interests of the Lenders.
Section 8.6. Non-Reliance on Agents and Other Lenders. Each Lender
expressly acknowledges that neither the Agents nor any of their respective
officers, directors, employees, agents, attorneys-in-fact or affiliates
82
have made any representations or warranties to it and that no act by any Agent
hereafter taken, including any review of the affairs of a Loan Party or any
affiliate of a Loan Party, shall be deemed to constitute any representation or
warranty by any Agent to any Lender. Each Lender represents to the Agents that
it has, independently and without reliance upon any Agent or any other Lender,
and based on such documents and information as it has deemed appropriate, made
its own appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Loan Parties and their
affiliates and made its own decision to make its Loans hereunder and enter into
this Agreement. Each Lender also represents that it will, independently and
without reliance upon any Agent 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 analysis, appraisals and decisions in taking or not taking action
under this Agreement and the other Loan Documents, and to make such
investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other condition and creditworthiness of the
Loan Parties and their affiliates. Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the
Administrative Agent hereunder, the Administrative Agent shall not have any duty
or responsibility to provide any Lender with any credit or other information
concerning the business, operations, property, condition (financial or
otherwise), prospects or creditworthiness of any Loan Party or any affiliate of
a Loan Party that may come into the possession of the Administrative Agent or
any of its officers, directors, employees, agents, attorneys-in-fact or
affiliates.
Section 8.7. Indemnification. The Lenders agree to indemnify each Agent in
its capacity as such (to the extent not reimbursed by Holdings or the Borrower
and without limiting the obligation of Holdings or the Borrower to do so),
ratably according to their respective Aggregate Exposure Percentages in effect
on the date on which indemnification is sought under this Section (or, if
indemnification is sought after the date upon which the Commitments shall have
terminated and the Loans shall have been paid in full, ratably in accordance
with such Aggregate Exposure Percentages immediately prior to such date), from
and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind
whatsoever that may at any time (whether before or after the payment of the
Loans) be imposed on, incurred by or asserted against such Agent in any way
relating to or arising out of, the Commitments, this Agreement, any of the other
Loan Documents or any documents contemplated by or referred to herein or therein
or the transactions contemplated hereby or thereby or any action taken or
omitted by such Agent under or in connection with any of the foregoing; provided
that no Lender shall be liable for the payment of any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements that are found by a final and nonappealable
decision of a court of competent jurisdiction to have resulted from such Agent's
gross negligence or willful misconduct. The agreements in this Section shall
survive the payment of the Loans and all other amounts payable hereunder.
Section 8.8. Agent in Its Individual Capacity. Each Agent and its
affiliates may make loans to, accept deposits from and generally engage in any
kind of business with any Loan Party as though such Agent were not an Agent.
With respect to its Loans made or renewed by it and with respect to any Letter
of Credit issued or participated in by it, each Agent shall have the same rights
and powers under this Agreement and the other Loan Documents as any Lender and
may exercise the same as though it were not an Agent, and the terms "Lender" and
"Lenders" shall include each Agent in its individual capacity.
Section 8.9. Successor Administrative Agent. The Administrative Agent may
resign as Administrative Agent upon 10 days' notice to the Lenders and the
Borrower. If the Administrative Agent shall resign as Administrative Agent under
this Agreement and the other Loan Documents, then the Required Lenders shall
appoint from among the Lenders a successor agent for the Lenders, which
successor agent shall (unless an Event of Default under Section 7(b), (c), (g)
or (h) with respect to the Borrower shall have occurred and be continuing) be
subject to approval by the Borrower (which approval shall not be unreasonably
withheld or delayed), whereupon such successor agent shall succeed to the
rights, powers
83
and duties of the Administrative Agent, and the term "Administrative Agent"
shall mean such successor agent effective upon such appointment and approval,
and the former Administrative Agent's rights, powers and duties as
Administrative Agent shall be terminated, without any other or further act or
deed on the part of such former Administrative Agent or any of the parties to
this Agreement or any holders of the Loans. If no successor agent has accepted
appointment as Administrative Agent by the date that is 10 days following a
retiring Administrative Agent's notice of resignation, the retiring
Administrative Agent's resignation shall nevertheless thereupon become
effective, and the Lenders shall assume and perform all of the duties of the
Administrative Agent hereunder until such time, if any, as the Required Lenders
appoint a successor agent as provided for above. After any retiring
Administrative Agent's resignation as Administrative Agent, the provisions of
this Article VIII shall inure to its benefit as to any actions taken or omitted
to be taken by it while it was Administrative Agent under this Agreement and the
other Loan Documents.
Section 8.10. Syndication Agent. The Syndication Agent shall not have any
duties or responsibilities hereunder in its capacity as such.
ARTICLE IX
Miscellaneous
Section 9.1. Notices. Notices and other communications provided for herein
shall be in writing and shall be delivered by hand or overnight courier service,
mailed by certified or registered mail or sent by telecopy, as follows:
(a) if to the Borrower or Holdings, to it at Suite 200, 000 Xxxx
Xxxxxxx Xxxxxxxxx, Xxxxxxxx, Xxxxxxxxx 00000, Attention: Xxxxxxx Xxxxxxx
and Xxxxxxx Xxxxx, Fax No. (000) 000-0000, with a copy to Warburg Pincus,
000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, XX 00000, Attention: Tenno Tsai, Fax No.
(000) 000-0000;
(b) if to the Administrative Agent or the Swingline Lender, to
JPMorgan Chase Bank, Loan and Agency Services Group, 0000 Xxxxxx, 00xx
Xxxxx, Xxxxxxx, XX, 00000 Attention: Xxxxxx Edinburgh, Fax No. (713)
000-0000, with a copy to JPMorgan Chase Bank, 000 Xxxx Xxxxxx, Xxx Xxxx,
XX, 00000, Attention: Xxxxxxxxx Xxxxxx, Fax No. (000) 000-0000; and
(c) if to a Lender, to it at its address (or fax number) set forth on
Schedule 2.1 or in the Assignment and Assumption pursuant to which such
Lender shall have become a party hereto.
All notices and other communications given to any party hereto in accordance
with the provisions of this Agreement shall be deemed to have been given on the
date of receipt if delivered by hand or overnight courier service or sent by fax
or on the date five Business Days after dispatch by certified or registered mail
if mailed, in each case delivered, sent or mailed (properly addressed) to such
party as provided in this Section 9.1 or in accordance with the latest unrevoked
direction from such party given in accordance with this Section 9.1. As agreed
to among the Borrower, the Administrative Agent, the Swingline Lender and the
applicable Lenders from time to time, notices and other communications may also
be delivered by e-mail to the e-mail address of a representative of the
applicable person provided from time to time by such person.
Section 9.2. Survival of Agreement. All covenants, agreements,
representations and warranties made by the Borrower or Holdings herein and in
the certificates or other instruments prepared or delivered in connection with
or pursuant to this Agreement or any other Loan Document shall be considered to
have been relied upon by the Lenders and the Issuing Bank and shall survive the
making by the Lenders of the
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Loans and the issuance of Letters of Credit by the Issuing Bank, regardless of
any investigation made by the Lenders or the Issuing Bank or on their behalf,
and shall continue in full force and effect as long as the principal of or any
accrued interest on any Loan or any Fee or any other amount payable under this
Agreement or any other Loan Document is outstanding and unpaid or any Letter of
Credit is outstanding and so long as the Commitments have not been terminated.
The provisions of Sections 2.14, 2.15, 2.19 and 9.5 shall remain operative and
in full force and effect regardless of the expiration of the term of this
Agreement, the consummation of the transactions contemplated hereby, the
repayment of any of the Loans, the expiration of the Commitments, the expiration
of any Letter of Credit, the invalidity or unenforceability of any term or
provision of this Agreement or any other Loan Document, or any investigation
made by or on behalf of the Administrative Agent, any Lender or the Issuing
Bank.
Section 9.3. Binding Effect. This Agreement shall become effective when it
shall have been executed by the Borrower, Holdings and the Administrative Agent
and when the Administrative Agent shall have received counterparts hereof which,
when taken together, bear the signatures of each of the other parties hereto.
Section 9.4. Successors and Assigns. (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 permitted hereby (including any affiliate of
the Issuing Bank that issues any Letter of Credit), except that (i) the Borrower
may not assign or otherwise transfer any of its rights or obligations hereunder
without the prior written consent of each Lender (and any attempted assignment
or transfer by the Borrower without such consent shall be null and void) and
(ii) no Lender may assign or otherwise transfer its rights or obligations
hereunder except in accordance with this Section.
(b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any
Lender may assign to one or more assignees (each, an "Assignee") all or a
portion of its rights and obligations under this Agreement (including all or a
portion of its Commitments and the Loans at the time owing to it) with the prior
written consent (such consent not to be unreasonably withheld) of:
(A) the Borrower; provided that no consent of the Borrower shall be
required for an assignment to a Lender, an affiliate of a Lender, an
Approved Fund (as defined below) or, if an Event of Default has occurred
and is continuing, any other Person;
(B) the Administrative Agent; provided that no consent of the
Administrative Agent shall be required for an assignment of all or any
portion of a Term Loan to a Lender, an Affiliate of a Lender or an Approved
Fund; and
(C) the Issuing Bank; provided that no consent of the Issuing Bank
shall be required for an assignment of all or any portion of a Term Loan.
(ii) Assignments shall be subject to the following additional
conditions:
(A) except in the case of an assignment to a Lender, an affiliate of a
Lender or an Approved Fund or an assignment of the entire remaining amount
of the assigning Lender's Commitments or Loans under any Facility, the
amount of the Commitments or Loans of the assigning Lender subject to each
such assignment (determined as of the date the Assignment and Assumption
with respect to such assignment is delivered to the Administrative Agent)
shall not be less than $2,500,000 (or, in the case of Term Loans and
Incremental Term Loans, $1,000,000) unless each of the Borrower and the
Administrative Agent otherwise consent, provided that (1) no such consent
of the Borrower shall be required if an Event of Default has occurred and
is continuing and (2) such amounts shall be aggregated in respect of each
Lender and its affiliates or Approved Funds, if any;
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(B) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with a
processing and recordation fee of $3,500; and
(C) the Assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an administrative questionnaire.
For the purposes of this Section 9.4, "Approved Fund" means any Person
(other than a natural person) that is engaged in making, purchasing, holding or
investing in bank loans and similar extensions of credit in the ordinary course
of its business and that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.
(iii) Subject to acceptance and recording thereof pursuant to
paragraph (b)(iv) below, from and after the effective date specified in each
Assignment and Assumption the Assignee thereunder shall be a party hereto and,
to the extent of the interest assigned by such Assignment and Assumption, have
the rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Assumption, be released from its obligations under this Agreement
(and, in the case of an Assignment and Assumption covering all of the assigning
Lender's rights and obligations under this Agreement, such Lender shall cease to
be a party hereto but shall continue to be entitled to the benefits of Sections
2.14, 2.15, 2.19 and 9.5). Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this Section 9.4
shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with paragraph (c) of
this Section.
(iv) The Administrative Agent, acting for this purpose as an agent of
the Borrower, shall maintain at one of its offices a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitments of, and principal amount of the
Loans and L/C Obligations owing to, each Lender pursuant to the terms hereof
from time to time (the "Register"). The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent, the Issuing Bank and the
Lenders may treat each Person whose name is recorded in the Register pursuant to
the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary.
(v) Upon its receipt of a duly completed Assignment and Assumption
executed by an assigning Lender and an Assignee, the Assignee's completed
administrative questionnaire (unless the Assignee shall already be a Lender
hereunder), the processing and recordation fee referred to in paragraph (b) of
this Section and any written consent to such assignment required by paragraph
(b) of this Section, the Administrative Agent shall accept such Assignment and
Assumption and record the information contained therein in the Register. No
assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this paragraph.
(c) (i) Any Lender may, without the consent of the Borrower or the
Administrative Agent, sell participations to one or more banks or other entities
(a "Participant") in all or a portion of such Lender's rights and obligations
under this Agreement (including all or a portion of its Commitments and the
Loans owing to it); provided that (A) such Lender's obligations under this
Agreement shall remain unchanged, (B) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (C) the Borrower, the Administrative Agent, the Issuing Bank and the other
Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender's rights and obligations under this Agreement. Any
agreement pursuant to which a Lender sells such a participation shall provide
that such Lender shall retain the sole right to enforce this Agreement and to
approve any amendment, modification or waiver of any provision of this
Agreement; provided that such agreement
86
may provide that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver that (1) requires the consent of
each Lender directly affected thereby pursuant to Section 9.8(b) and (2)
directly affects such Participant. Subject to paragraph (c)(ii) of this Section,
the Borrower agrees that each Participant shall be entitled to the benefits of
Sections 2.14, 2.15 and 2.19 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to paragraph (b) of this Section.
To the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 2.17 as though it were a Lender; provided that such
Participant shall be subject to Section 9.6 as though it were a Lender.
(ii) A Participant shall not be entitled to receive any greater
payment under Section 2.14 or 2.19 than the applicable Lender would have been
entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the
Borrower's prior written consent. Any Participant that is a Non-U.S. Lender
shall not be entitled to the benefits of Section 2.19 unless such Participant
complies with Section 2.19(e).
(d) Any Lender may at any time pledge or assign a security interest in all
or any portion of its rights under this Agreement to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal
Reserve Bank, and this Section shall not apply to any such pledge or assignment
of a security interest; provided that no such pledge or assignment of a security
interest shall release a Lender from any of its obligations hereunder or
substitute any such pledgee or Assignee for such Lender as a party hereto.
(e) Notwithstanding the foregoing, any Conduit Lender may assign any or all
of the Loans it may have funded hereunder to its designating Lender without the
consent of the Borrower or the Administrative Agent and without regard to the
limitations set forth in Section 9.4(b). Each of Holdings, the Borrower, each
Lender and the Administrative Agent hereby confirms that it will not institute
against a Conduit Lender or join any other Person in instituting against a
Conduit Lender any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceeding under any state bankruptcy or similar law, for one year
and one day after the payment in full of the latest maturing commercial paper
note issued by such Conduit Lender; provided, however, that each Lender
designating any Conduit Lender hereby agrees to indemnify, save and hold
harmless each other party hereto for any loss, cost, damage or expense arising
out of its inability to institute such a proceeding against such Conduit Lender
during such period of forbearance.
Section 9.5. Expenses; Indemnity. (a) The Borrower and Holdings agree,
jointly and severally, to pay all out-of-pocket expenses incurred by the
Administrative Agent, the Issuing Bank and the Swingline Lender in connection
with the syndication of the credit facilities provided for herein and the
preparation and administration of this Agreement and the other Loan Documents or
in connection with any amendments, modifications or waivers of the provisions
hereof or thereof (whether or not the transactions hereby or thereby
contemplated shall be consummated) or incurred by the Administrative Agent or
any Lender in connection with the enforcement or protection of its rights in
connection with this Agreement and the other Loan Documents or in connection
with the Loans made or Letters of Credit issued hereunder, including the
reasonable fees, charges and disbursements of Xxxxxxx Xxxxxxx & Xxxxxxxx LLP,
counsel for the Administrative Agent, and, in connection with any such
enforcement or protection, the fees, charges and disbursements of any other
counsel for the Administrative Agent or any Lender.
(b) The Borrower and Holdings agree, jointly and severally, to indemnify
the Administrative Agent, each Lender, the Issuing Bank and each Related Party
of any of the foregoing persons (each such person being called an "Indemnitee")
against, and to hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses, including reasonable counsel fees,
charges and disbursements, incurred by or asserted against any Indemnitee
arising out of, in any way connected with,
87
or as a result of (i) the execution or delivery of this Agreement or any other
Loan Document or any agreement or instrument contemplated hereby or thereby, the
performance by the parties hereto or thereto of their respective obligations
hereunder or thereunder or the consummation of the Transactions and the other
transactions contemplated hereby or thereby, (ii) the use of the proceeds of the
Loans or issuance of Letters of Credit, (iii) any claim, litigation,
investigation or proceeding relating to any of the foregoing, whether or not any
Indemnitee is a party thereto, or (iv) any actual or alleged presence or Release
of Hazardous Materials on any property currently or formerly owned or operated
by the Borrower or any of the Subsidiaries, or any Environmental Liability
related in any way to the Borrower or the Subsidiaries; provided, that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses are determined by a
court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Indemnitee.
(c) To the extent that Holdings and the Borrower fail to pay any amount
required to be paid by them to the Administrative Agent, the Issuing Bank or the
Swingline Lender under paragraph (a) or (b) of this Section, each Lender
severally agrees to pay to the Administrative Agent, the Issuing Bank or the
Swingline Lender, as the case may be, such Lender's pro rata share (determined
as of the time that the applicable unreimbursed expense or indemnity payment is
sought) of such unpaid amount; provided, that the unreimbursed expense or
indemnified loss, claim, damage, liability or related expense, as the case may
be, was incurred by or asserted against the Administrative Agent, the Issuing
Bank or the Swingline Lender in its capacity as such. For purposes hereof, a
Lender's "pro rata share" shall be determined based upon its share of the sum of
the Aggregate Revolving Credit Exposure, outstanding Term Loans and unused
Commitments at the time.
(d) To the extent permitted by applicable law, neither Holdings nor the
Borrower shall assert, and each hereby waives, any claim against any Indemnitee,
on any theory of liability, for special, indirect, consequential or punitive
damages (as opposed to direct or actual damages) arising out of, in connection
with, or as a result of, this Agreement or any agreement or instrument
contemplated hereby, the Transactions, any Loan or Letter of Credit or the use
of the proceeds thereof.
(e) The provisions of this Section 9.5 shall remain operative and in full
force and effect regardless of the expiration of the term of this Agreement, the
consummation of the transactions contemplated hereby, the repayment of any of
the Loans, the expiration of the Commitments, the expiration of any Letter of
Credit, the invalidity or unenforceability of any term or provision of this
Agreement or any other Loan Document, or any investigation made by or on behalf
of the Administrative Agent, any Lender or the Issuing Bank. All amounts due
under this Section 9.5 shall be payable on written demand therefor.
Section 9.6. Right of Setoff. If an Event of Default shall have occurred
and be continuing, each Lender is hereby authorized at any time and from time to
time, except to the extent prohibited by law, to set off and apply any and all
deposits (general or special, time or demand, provisional or final) at any time
held and other indebtedness at any time owing by such Lender to or for the
credit or the account of the Borrower or Holdings against any of and all the
obligations of the Borrower or Holdings now or hereafter existing under this
Agreement and other Loan Documents held by such Lender, irrespective of whether
or not such Lender shall have made any demand under this Agreement or such other
Loan Document and although such obligations may be unmatured. The rights of each
Lender under this Section 9.6 are in addition to other rights and remedies
(including other rights of setoff) which such Lender may have.
Section 9.7. Applicable Law. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
(OTHER THAN LETTERS OF CREDIT AND AS EXPRESSLY SET FORTH IN OTHER LOAN
DOCUMENTS) SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
88
LAWS OF THE STATE OF NEW YORK. EACH LETTER OF CREDIT SHALL BE GOVERNED BY, AND
SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OR RULES DESIGNATED IN SUCH
LETTER OF CREDIT, OR IF NO SUCH LAWS OR RULES ARE DESIGNATED, THE UNIFORM
CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS MOST RECENTLY PUBLISHED AND IN
EFFECT, ON THE DATE SUCH LETTER OF CREDIT WAS ISSUED, BY THE INTERNATIONAL
CHAMBER OF COMMERCE (THE "UNIFORM CUSTOMS") AND, AS TO MATTERS NOT GOVERNED BY
THE UNIFORM CUSTOMS, THE LAWS OF THE STATE OF NEW YORK.
Section 9.8. Waivers; Amendment. (a) No failure or delay of the
Administrative Agent, any Lender or the Issuing Bank in exercising any power or
right hereunder or under any other Loan Document shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or
any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Administrative Agent, the Issuing
Bank and the Lenders hereunder and under the other Loan Documents are cumulative
and are not exclusive of any rights or remedies that they would otherwise have.
No waiver of any provision of this Agreement or any other Loan Document or
consent to any departure by the Borrower or any other Loan Party therefrom shall
in any event be effective unless the same shall be permitted by paragraph (b)
below, and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. No notice or demand on the
Borrower or Holdings in any case shall entitle the Borrower or Holdings to any
other or further notice or demand in similar or other circumstances.
(b) Neither this Agreement nor any of the Security Documents nor any
provision hereof or thereof may be waived, amended or modified except pursuant
to an agreement or agreements in writing entered into by the Borrower, Holdings
and the Required Lenders; provided, however, that (x) the Borrower, Holdings and
the Administrative Agent may enter into an amendment to effect the provisions of
Section 2.23(b) upon the effectiveness of any Incremental Term Loan Assumption
Agreement (and any such amendment shall in any event be deemed to have occurred
upon such effectiveness) and (y) no such agreement under this Section 9.8(b)
shall (i) decrease the principal amount of, or extend the maturity of or any
scheduled principal payment date or date for the payment of any interest on any
Loan or any date for reimbursement of an L/C Disbursement, or waive or excuse
any such payment or any part thereof, or decrease the rate of interest on any
Loan or L/C Disbursement, without the prior written consent of each Lender
affected thereby, (ii) increase or extend the Commitment or decrease or extend
the date for payment of any Fees of or any other amount actually due and payable
hereunder to any Lender without the prior written consent of such Lender, (iii)
amend or modify the provisions of this Section, or release any Guarantor or all
or substantially all of the Collateral, without the prior written consent of
each Lender, (iv) change the provisions of any Loan Document in a manner that by
its terms adversely affects the rights in respect of payments due to Lenders
holding Loans of one Class differently from the rights of Lenders holding Loans
of any other Class without the prior written consent of Lenders holding a
majority in interest of the outstanding Loans and unused Commitments of each
adversely affected Class, (v) amend, modify or waive compliance by Holdings or
the Borrower with the provisions of Section 6.11 or 6.12 (or with the provisions
of Section 4.1, as it relates to an Event of Default following a breach of any
provision of this Agreement) without the prior written consent of Revolving
Lenders holding a majority in interest of the Revolving Credit Commitments,
(vii) reduce the percentage contained in the definition of the term "Required
Lenders" without the prior written consent of each Lender (it being understood
that with the consent of the Required Lenders, additional extensions of credit
pursuant to this Agreement may be included in the determination of the Required
Lenders on substantially the same basis as the Term Loan Commitments and
Revolving Credit Commitments on the date hereof) or (viii) without the prior
written consent of each Lender directly affected thereby, amend the definition
of the term "Interest Period" in any way which would permit Interest Periods to
be in excess of six months without regard to
89
availability to Lenders; provided, further, that no such agreement shall amend,
modify or otherwise affect the rights or duties of the Administrative Agent, the
Issuing Bank or the Swingline Lender hereunder or under any other Loan Document
without the prior written consent of the Administrative Agent, the Issuing Bank
or the Swingline Lender. Notwithstanding anything to the contrary herein, no
Defaulting Lender shall have any right to approve or disapprove any amendment,
waiver or consent hereunder, except that the Commitment of such Lender may not
be increased or extended without the consent of such Lender (it being understood
that any Commitments or Loans held or deemed held by any Defaulting Lender shall
be excluded for a vote of the Lenders hereunder requiring any consent of the
Lenders).
Section 9.9. Interest Rate Limitation. Notwithstanding anything herein to
the contrary, if at any time the interest rate applicable to any Loan or
participation in any L/C Disbursement, together with all fees, charges and other
amounts which are treated as interest on such Loan or participation in such L/C
Disbursement under applicable law (collectively the "Charges"), shall exceed the
maximum lawful rate (the "Maximum Rate") which may be contracted for, charged,
taken, received or reserved by the Lender holding such Loan or participation in
accordance with applicable law, the rate of interest payable in respect of such
Loan or participation hereunder, together with all Charges payable in respect
thereof, shall be limited to the Maximum Rate and, to the extent lawful, the
interest and Charges that would have been payable in respect of such Loan or
participation but were not payable as a result of the operation of this Section
9.9 shall be cumulated and the interest and Charges payable to such Lender in
respect of other Loans or participations or periods shall be increased (but not
above the Maximum Rate therefor) until such cumulated amount, together with
interest thereon at the Federal Funds Effective Rate to the date of repayment,
shall have been received by such Lender.
Section 9.10. Entire Agreement. This Agreement, the Fee Letter and the
other Loan Documents constitute the entire contract between the parties relative
to the subject matter hereof. Any other previous agreement among the parties
with respect to the subject matter hereof is superseded by this Agreement and
the other Loan Documents. Nothing in this Agreement or in the other Loan
Documents, expressed or implied, is intended to confer upon any person (other
than the parties hereto and thereto, their respective successors and assigns
permitted hereunder (including any Affiliate of the Issuing Bank that issues any
Letter of Credit) and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent, the Issuing Bank and the Lenders)
any rights, remedies, obligations or liabilities under or by reason of this
Agreement or the other Loan Documents.
Section 9.11. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS. EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.11.
Section 9.12. Severability. In the event any one or more of the provisions
contained in this Agreement or in any other Loan Document should be held
invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein and therein shall
not in any way be affected or impaired thereby (it being understood that the
invalidity of a particular provision in a particular jurisdiction shall not in
and of itself affect the validity of such provision in any other jurisdiction).
The parties shall endeavor in good-faith negotiations to replace the invalid,
illegal or
90
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.
Section 9.13. Counterparts. This Agreement may be executed in counterparts
(and by different parties hereto on different counterparts), each of which shall
constitute an original but all of which when taken together shall constitute a
single contract, and shall become effective as provided in Section 9.3. Delivery
of an executed signature page to this Agreement by facsimile transmission shall
be as effective as delivery of a manually signed counterpart of this Agreement.
Section 9.14. Headings. Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of this
Agreement and are not to affect the construction of, or to be taken into
consideration in interpreting, this Agreement.
Section 9.15. Jurisdiction; Consent to Service of Process. (a) Each of
Holdings and the Borrower hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of any New York State
court or Federal court of the United States of America sitting in New York City,
and any appellate court from any thereof, in any action or proceeding arising
out of or relating to this Agreement or the other Loan Documents, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such New York State or,
to the extent permitted by law, in such Federal court. Each of the parties
hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law. Nothing in this Agreement shall affect any
right that the Administrative Agent, the Issuing Bank or any Lender may
otherwise have to bring any action or proceeding relating to this Agreement or
the other Loan Documents against the Borrower, Holdings or their respective
properties in the courts of any jurisdiction.
(b) Each of Holdings and the Borrower hereby irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do
so, any objection which it may now or hereafter have to the laying of venue of
any suit, action or proceeding arising out of or relating to this Agreement or
the other Loan Documents in any New York State or Federal court. Each of the
parties hereto hereby irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.
(c) Each of Holdings and the Borrower irrevocably consents to service of
process in the manner provided for notices in Section 9.1. Nothing in this
Agreement will affect the right of any party to this Agreement to serve process
in any other manner permitted by law.
Section 9.16. Confidentiality. Each of the Administrative Agent, the
Issuing Bank and the Lenders agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (i) to
its and its Affiliates' officers, directors, employees and agents, including
accountants, legal counsel and other advisors (it being understood that the
persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information
confidential), (ii) to the extent requested by any regulatory authority or
quasi-regulatory authority (such as the National Association of Insurance
Commissioners), (iii) to the extent required by applicable laws or regulations
or by any subpoena or similar legal process, (iv) in connection with the
exercise of any remedies hereunder or under the other Loan Documents or any
suit, action or proceeding relating to the enforcement of its rights hereunder
or thereunder, (v) subject to an agreement containing provisions substantially
the same as those of this Section 9.16, to (A) any actual or prospective
assignee or pledgee of or participant in any of its rights or obligations under
this Agreement and the other Loan Documents or (B) any actual or prospective
counterparty (or its advisors) to any swap or derivative transaction relating
91
to the Borrower or any Subsidiary or any of their respective obligations, (vi)
with the consent of the Borrower or (vii) to the extent such Information becomes
publicly available other than as a result of a breach of this Section 9.16. For
the purposes of this Section, "Information" shall mean all information received
from the Borrower or Holdings and related to the Borrower or Holdings or their
business, other than any such information that was available to the
Administrative Agent, the Issuing Bank or any Lender on a nonconfidential basis
prior to its disclosure by the Borrower or Holdings; provided that, in the case
of Information received from the Borrower or Holdings after the date hereof,
such information is clearly identified at the time of delivery as confidential.
Any person required to maintain the confidentiality of Information as provided
in this Section 9.16 shall be considered to have complied with its obligation to
do so if such person has exercised the same degree of care to maintain the
confidentiality of such Information as such person would accord its own
confidential information.
Section 9.17. USA Patriot Act. Each Lender hereby notifies the Borrower
that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)) (the "Patriot Act"), it is required
to obtain, verify and record information that identifies the Borrower, which
information includes the name and address of the Borrower and other information
that will allow such Lender to identify the Borrower in accordance with the Act.
Section 9.18. Releases of Guarantees and Liens. (a) Notwithstanding
anything to the contrary contained herein or in any other Loan Document, the
Administrative Agent is hereby irrevocably authorized by each Lender (without
requirement of notice to or consent of any Lender except as expressly required
by Section 9.8) to take any action requested by the Borrower having the effect
of releasing any Collateral or guarantee obligations (i) to the extent necessary
to permit consummation of any transaction not prohibited by any Loan Document or
that has been consented to in accordance with Section 9.8 or (ii) under the
circumstances described in paragraph (b) below.
(b) At such time as the Loans, the Reimbursement Obligations and the other
obligations under the Loan Documents (other than obligations under or in respect
of Hedging Agreements) shall have been paid in full, the Commitments have been
terminated and no Letters of Credit shall be outstanding, the Collateral shall
be released from the Liens created by the Security Documents, and the Security
Documents and all obligations (other than those expressly stated to survive such
termination) of the Administrative Agent and each Loan Party under the Security
Documents shall terminate, all without delivery of any instrument or performance
of any act by any Person.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of the day and year
first above written.
SPHERIS HOLDING II, INC.,
by /s/ Xxxxxxx X. Xxxxxxx
-------------------------------------
Name: Xxxxxxx X. Xxxxxxx
----------------------------------
Title: Secretary
---------------------------------
SPHERIS HOLDING, INC.,
by /s/ Xxxxxxx X. Xxxxxxx
-------------------------------------
Name: Xxxxxxx X. Xxxxxxx
----------------------------------
Title: Secretary
---------------------------------
The undersigned hereby acknowledges
and agrees that, upon the
effectiveness of the Merger, it will
succeed by operation of law to all of
the rights and obligations of the
Borrower set forth herein and that
all references herein to the
"Borrower" shall thereupon be deemed
to be references to the undersigned.
SPHERIS INC.,
by /s/ Xxxxxxx X. Xxxxxxx
----------------------------------
Name: Xxxxxxx X. Xxxxxxx
-------------------------------
Title: Secretary
------------------------------
JPMORGAN CHASE BANK, individually and as
Administrative Agent,
by /s/ Xxxxxxxxx Xxxxxx
-------------------------------------
Name: Xxxxxxxxx Xxxxxx
----------------------------------
Title: Vice President
---------------------------------
UBS SECURITIES LLC, as Syndication
Agent,
by /s/ Xxxx X. Xxxxxx
-------------------------------------
Name: Xxxx X. Xxxxxx
----------------------------------
Title: Executive Director
---------------------------------
by /s/ Xxxxxx Xxxxxx
-------------------------------------
Name: Xxxxxx Xxxxxx
----------------------------------
Title: Director and Counsel Region
Americas Legal
---------------------------------
UBS LOAN FINANCE LLC, as Lender,
by /s/ Xxxx X. Xxxxxx
-------------------------------------
Name: Xxxx X. Xxxxxx
----------------------------------
Title: Executive Director
---------------------------------
by /s/ Xxxxxx Xxxxxx
-------------------------------------
Name: Xxxxxx Xxxxxx
----------------------------------
Title: Director and Counsel Region
Americas Legal
---------------------------------
FIRST AMENDMENT TO CREDIT AGREEMENT
FIRST AMENDMENT TO CREDIT AGREEMENT, dated as of December 22, 2004
(this "Amendment"), to the Credit Agreement, dated as of November 5, 2004 (the
"Existing Credit Agreement"), among Spheris Holding II, Inc. ("Holdings"),
Spheris Inc. (as successor to Spheris Holding, Inc.) (the "Borrower"), the
several lenders from time to time parties thereto, JPMorgan Chase Bank, N.A.
(formerly XX Xxxxxx Xxxxx Bank) ("JPMorgan Chase Bank"), as administrative agent
(in such capacity, the "Administrative Agent"), UBS Securities LLC, as
syndication agent (in such capacity, the "Syndication Agent"), and Xxxxxxx Xxxxx
Capital, a division of Xxxxxxx Xxxxx Financial Services, Inc., as documentation
agent.
WITNESSETH:
WHEREAS, pursuant to the Existing Credit Agreement, the lenders party
thereto (the "Lenders") have agreed to make, and have made, certain extensions
of credit to the Borrower; and
WHEREAS, the Borrower has requested, and the Required Lenders under
the Existing Credit Agreement have agreed, that the Existing Credit Agreement be
amended as provided herein;
NOW, THEREFORE, the parties hereto hereby agree as follows:
1. Defined Terms. Capitalized terms used but not defined herein shall
have the meanings assigned to such terms in the Amended Credit Agreement (as
defined below). As used in this Amendment, the "Amendment Effective Date" means
the date as of which all of the conditions set forth or referred to in Section 3
below shall have been satisfied.
2. Amendment of the Existing Credit Agreement.
(a) On the Amendment Effective Date the Existing Credit Agreement is
hereby amended to read in its entirety as set forth in Exhibit A hereto (the
"Amended Credit Agreement"), without any further actions required for the
effectiveness of such Amended Credit Agreement. On the Amendment Effective Date,
the terms "Agreement," "this Agreement," "herein," "hereinafter," "hereto,"
"hereof" and words of similar import, as used in the Amended Credit Agreement,
shall, unless the context otherwise requires, refer to the Amended Credit
Agreement, and the term "Credit Agreement," as used in the other Loan Documents,
shall mean the Amended Credit Agreement.
(b) All Term Loans, Revolving Loans, Swingline Loans and Letters of
Credit outstanding under the Existing Credit Agreement on the Amendment
Effective Date shall continue to be outstanding under the Amended Credit
Agreement and from and after the Amendment Effective Date the terms of the
Amended Credit Agreement will govern the rights of the Lenders with respect
thereto.
3. Conditions to Effectiveness. This Amendment shall become effective
if this Amendment shall have been executed and delivered by a duly authorized
officer of each of
2
Holdings, the Borrower and the Required Lenders under the Existing Credit
Agreement and acknowledged by each of the other Loan Parties.
4. Representations and Warranties. After giving effect to this
Amendment, the Borrower hereby confirms, reaffirms and restates the
representations and warranties set forth in Section 3 of the Amended Credit
Agreement as if made on and as of the date hereof except for any representation
or warranty made as of the earlier date, which representation or warranty shall
have been true and correct in all material respects as of such earlier date.
5. Governing Law; Counterparts. (a) This Amendment and the rights and
obligations of the parties hereto shall be governed by, and construed and
interpreted in accordance with, the laws of the State of New York.
(b) This Amendment may be executed by one or more of the parties to
this Agreement in any number of separate counterparts, and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument. A set of the copies of this Amendment signed by all the parties
shall be lodged with the Borrower and the Administrative Agent. This Amendment
may be delivered by facsimile transmission of the relevant signature pages
hereof.
[SIGNATURE PAGES FOLLOW]
3
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be duly executed and delivered by their proper and duly authorized officers as
of the day and year first above written.
SPHERIS INC.
By /s/ Xxxxxxx X. Xxxxxxx
-------------------------------------
Name: Xxxxxxx Xxxxxxx
----------------------------------
Title: Secretary
---------------------------------
SPHERIS HOLDING II, INC.
By /s/ Xxxxxxx X. Xxxxxxx
-------------------------------------
Name: Xxxxxxx Xxxxxxx
----------------------------------
Title: Secretary
---------------------------------
JPMORGAN CHASE BANK, N.A.
as Administrative Agent and as a Lender
By /s/ Xxxx X. Rjordan
-------------------------------------
Name: Xxxx X. Rjordan
----------------------------------
Title: Vice President
---------------------------------
ACKNOWLEDGED AND AGREED:
HEALTHSCRIBE, INC.
HEALTHSCRIBE-SCRIBES ACQUISITION
CORP.
By /s/ Xxxx Xxxxxxxx
----------------------------------
Name: Xxxx Xxxxxxxx
-------------------------------
Title:
------------------------------
SPHERIS OPERATIONS INC.
SPHERIS CANADA INC.
SPHERIS LEASING LLC
EDIX CORPORATION
By /s/ Xxxxxxx X. Xxxxxxx
----------------------------------
Name: Xxxxxxx Xxxxxxx
-------------------------------
Title: Secretary
------------------------------
SPHERIS INC.
SIGNATURE PAGE TO FIRST AMENDMENT
DATED AS OF DECEMBER 22, 2004
XXXXXXX XXXXX CAPITAL, a division of Xxxxxxx
Xxxxx Financial Services Inc., as Documentation
Agent and as Lender
By: /s/ Xxxx Xxxxx
---------------------------------------
Name: Xxxx Xxxxx
-------------------------------------
Title: Vice President
------------------------------------
SPHERIS INC.
SIGNATURE PAGE TO FIRST AMENDMENT
DATED AS OF DECEMBER 22, 2004
UBS SECURITIES LLC, as Syndication Agent
By: /s/ Xxxxxx X.X. Xxxxxx
---------------------------------------
Name: Xxxxxx X.X. Xxxxxx
-------------------------------------
Title: Director
------------------------------------
By: /s/
---------------------------------------
Name:
-------------------------------------
Title: Americas Legal
------------------------------------
UBS LOAN FINANCE LLC, as Lender
By: /s/ Xxxxxxx Xxxxx-XxXxxxxxx
---------------------------------------
Name: Xxxxxxx Xxxxx-XxXxxxxxx
-------------------------------------
Title: Associate Director
Building Products Services, US
------------------------------------
By: /s/ Winslowe Ogbourne
---------------------------------------
Name: Winslowe Ogbourne
-------------------------------------
Title: Associate Director
Building Products Services, US
------------------------------------
SECOND AMENDMENT TO CREDIT AGREEMENT AND WAIVER
SECOND AMENDMENT TO CREDIT AGREEMENT AND WAIVER, dated as of June 13,
2005 (this "Amendment and Waiver"), to the Credit Agreement, dated as of
November 5, 2004, as amended as of December 22, 2004 (as so amended, the "Credit
Agreement"), among SPHERIS HOLDING II, INC. ("Holdings"), SPHERIS INC. (as
successor to Spheris Holding, Inc.) (the "Borrower"), the several lenders from
time to time parties thereto, JPMORGAN CHASE BANK, N.A., as Administrative Agent
(the "Administrative Agent"), UBS SECURITIES LLC, as Syndication Agent and
XXXXXXX XXXXX CAPITAL, a division of Xxxxxxx Xxxxx Financial Services, Inc., as
Documentation Agent.
WHEREAS pursuant to the Credit Agreement, the Lenders have agreed to
extend credit to the Borrower;
WHEREAS the Borrower has requested that the Credit Agreement be waived
in the manner provided for in this Amendment and Waiver, and the Lenders are
willing to agree to such amendment and waiver as provided for herein; and
WHEREAS, the Borrower believes it is not in default of its obligation
to maintain a minimum Interest Coverage Ratio pursuant to Section 6.11 of the
Credit Agreement for the fiscal quarter ended March 31, 2005 as a result of its
receipt of a Cure Amount during the quarter ended March 31, 2005;
NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein the parties hereto hereby agree as follows:
1. Defined Terms. Capitalized terms used and not defined herein shall
have the meanings given to them in the Credit Agreement.
2. Compliance Certificate Delivery Default. The Borrower failed to
deliver in the required time period the certificate from a Financial Officer as
required by Section 5.4(c) of the Credit Agreement in respect of the fiscal
quarter ended March 31, 2005 ("Compliance Certificate Delivery Default"). The
Lenders hereby waive any Default or Event of Default under clause (d) or (e) of
Article VII of the Credit Agreement that may have arisen as a result of the
Compliance Certificate Delivery Default and any Default or Event of Default that
may have arisen as a result of a breach by the Borrower of its obligations under
Section 5.5(a) of the Credit Agreement as such breach may be caused by the
Compliance Certificate Delivery Default; provided, that the Borrower shall
deliver such compliance certificate as required by Section 5.4(c) of the Credit
Agreement on or prior to June 13, 2005.
3. Budget Delivery Default. The Borrower failed to deliver in the
required time period the detailed consolidated budget for fiscal year 2005 as
required by Section 5.4(d) of the Credit Agreement (the "Budget Delivery
Default"). The Lenders hereby waive any Default or Event of Default under clause
(d) or (e) of Article VII of the Credit Agreement that may have arisen as a
result of the Budget Delivery Default and any Default or Event of Default that
may have arisen as a result of a breach by the Borrower of its obligations under
Section 5.5(a) of the Credit Agreement as such breach may be caused by the
Budget Delivery Default; provided, that
the Borrower shall deliver such consolidated budget as required by Section
5.4(d) of the Credit Agreement on or prior to June 13, 2005.
4. Interest Coverage Ratio. The Lenders hereby waive any Default or
Event of Default, if any, under clause (d) or (e) of Article VII of the Credit
Agreement that may have arisen as a result of the Borrower's Interest Coverage
Ratio pursuant to Section 6.11 of the Credit Agreement for the fiscal quarter
ended March 31, 2005 and any Default or Event of Default, if any, that may have
arisen as a result of a breach by the Borrower of its obligations under Section
5.5(a) of the Credit Agreement related thereto; provided, that the Interest
Coverage Ratio of the Borrower as of March 31, 2005 shall not be less than 1.60
to 1.00 computed without regard to any Cure Amount.
5. Amendment of Sub clause (II) of Section 6.4(g)(iii)(D). Sub clause
(II) of Section 6.4(g)(iii)(D) is hereby amended and restated in its entirety as
follows:
"(II) the proceeds of Equity Interests of Holdings (other than Equity
Interests designated as Permitted Sure Securities and proceeds of Equity
Interests of Holdings, in each case, applied as a Cure Amount contemplated by
Article VII) and".
6. Amendment of Article VII. Article VII of the Credit Agreement is
amended by deleting the last paragraph thereof (beginning
"Notwithstanding......") and substituting therefor the following:
Notwithstanding anything to the contrary contained in this Article
VII, in the event that the Borrower would otherwise fail to comply with the
requirements of Section 6.11 or 6.12 (each, a "Financial Performance
Covenant") at the end of any fiscal quarter, at any time during the period
beginning with the first day of such fiscal quarter and ending ten days
after the date on which a Compliance Certificate must be delivered for the
end of such fiscal quarter or fiscal year, as applicable, Holdings shall
have the right, exercisable at any time during the term of this Agreement
(provided that it may not be exercised with respect to more than two fiscal
quarters during any consecutive four fiscal quarter period), to issue
Permitted Cure Securities (as defined below) for cash or otherwise receive
cash contributions to the capital of Holdings, and to contribute any such
cash to the capital of Borrower (the "Cure Right"), and upon the receipt by
Borrower of such cash (the "Cure Amount") pursuant to the exercise by
Holdings of such Cure Right, the Financial Performance Covenants shall be
recalculated giving effect to the following pro forma adjustments:
(i) Consolidated EBITDA shall be increased for the quarter in
which such failure to comply would have otherwise occurred solely for
the purpose of measuring the Financial Performance Covenants for the
applicable test periods and not for any other purpose under this
Agreement, by an amount equal to the lesser of (a) the Cure Amount and
(b) the amount necessary to cure such financial covenant default; and
(ii) if, after giving effect to the foregoing recalculations, the
Borrower shall then be in compliance with the requirements of all
Financial Performance
2
Covenants, the Borrower shall be deemed to have satisfied the
requirements of the Financial Performance Covenants as of the relevant
date of determination with the same effect as though there had been no
failure to comply therewith at such date, and the applicable breach or
default of any such Financial Performance Covenant that would have
otherwise occurred on such date but for the application of the
foregoing recalculations shall be deemed not to have occurred.
As used in this Article VII, the term "Permitted Cure Securities"
shall mean (x) an equity security of Holdings issued to the Sponsor having
no mandatory redemption, repurchase, repayment or similar requirements
prior to the six-month anniversary of the Term Loan Maturity Date and upon
which all dividends or distributions, at the election of Holdings, may be
payable in additional shares of such equity security or (y) in the case of
capital contributions received by Holdings, any security issued by the
parent company of Holdings to the Sponsor. A security may be a Permitted
Cure Security only if it is designated as such in writing to the
Administrative Agent by the Borrower or Holdings within five Business Days
of the issuance thereof.
7. No Other Amendments or Waivers; Confirmation. Except as expressly
waived hereby, the provisions of the Credit Agreement are and shall remain in
full force and effect. Nothing herein shall be deemed to entitle the Borrower to
a consent to, or a waiver, amendment, modification or other change of, any of
the terms, conditions, obligations, covenants or agreements contained in the
Credit Agreement or any Loan Document in similar or different circumstances.
8. Representations and Warranties. The Borrower hereby represents and
warrants to the Administrative Agent and the Lenders that, as of the date hereof
and after giving effect to the waivers and amendment contained herein:
(a) no Default or Event of Default has occurred and is continuing
other than those described herein; and
(b) the execution, delivery and performance by the Borrower of this
Amendment and Waiver have been duly authorized by all necessary corporate and
other action and does not and will not require any registration with, consent or
approval of, notice to or action by, any person (including any Governmental
Authority) in order to be effective and enforceable.
9. Conditions Precedent to Effectiveness. This Amendment and Waiver
shall become effective on the date on which the Administrative Agent shall have
received counterparts hereof duly executed and delivered by the Borrower, the
Required Lenders and Revolving Credit Lenders holding at least a majority in
interest of the Revolving Credit Commitments.
10. Amendment and Waiver Fee. The Borrower agrees to pay an amendment
and waiver fee, for the account of each Lender that delivers an executed
signature page to this Amendment and Waiver by 5:00 p.m., New York City time, on
June 13, 2005, in an amount equal to 0.05% of the sum of (a) such Lender's
Revolving Credit Commitment and (b) the aggregate principal amount of such
Lender's outstanding Term Loans, which fee shall be
3
payable promptly upon this Amendment and Waiver becoming effective. Failure to
pay such fee shall be deemed to, and shall, constitute an Event of Default under
the Credit Agreement.
11. Expenses. The Borrower agrees to promptly pay and/or reimburse the
Administrative Agent for its invoiced out-of-pocket expenses in connection with
this Amendment and Waiver (including the reasonable fees, charges and
disbursements of Xxxxxxx Xxxxxxx & Xxxxxxxx LLP, counsel for the Administrative
Agent).
12. Governing Law; Counterparts. (a) This Amendment and Waiver and the
rights and obligations of the parties hereto shall be governed by, and construed
and interpreted in accordance with, the laws of the State of New York.
(b) This Amendment and Waiver may be executed by one or more of the
parties to this Amendment and Waiver on any number of separate counterparts, and
all of said counterparts taken together shall be deemed to constitute one and
the same instrument. This Amendment and Waiver may be delivered by facsimile
transmission of the relevant signature pages hereof.
4
IN WITNESS WHEREOF, the parties hereto have caused this Amendment and
Waiver to be duly executed and delivered by their duly authorized officers as of
the day and year first above written.
SPHERIS HOLDING II, INC.,
By: /s/ Xxxxxxx X. Xxxxxxx
------------------------------------
Name: Xxxxxxx X. Xxxxxxx
----------------------------------
Title:
---------------------------------
SPHERIS INC.
By: /s/ Xxxxxxx X. Xxxxxxx
------------------------------------
Name: Xxxxxxx X. Xxxxxxx
----------------------------------
Title:
---------------------------------
JPMORGAN CHASE BANK, N.A. individually
and as Administrative Agent
By: /s/ Xxxxxxxxx Xxxxxx
------------------------------------
Name: Xxxxxxxxx Xxxxxx
----------------------------------
Title: Vice President
---------------------------------
UBS SECURITIES LLC, as Syndication Agent
By: /s/ Xxxxxx X. Xxxx III
------------------------------------
Name: Xxxxxx X. Xxxx III
----------------------------------
Title: Managing Director
---------------------------------
By: /s/ Xxxxxxx X. Xxxx
------------------------------------
Name: Xxxxxxx X. Xxxx
----------------------------------
Title: Director and Counsel
Region Americas Legal
---------------------------------
XXXXXXX XXXXX CAPITAL, a division of
Xxxxxxx Xxxxx Financial Services, Inc.,
individually and as Documentation Agent
By: /s/ Xxxx Xxxxx
------------------------------------
Name: Xxxx Xxxxx
----------------------------------
Title: Vice President
---------------------------------
5
Signature page to the SECOND AMENDMENT
TO THE CREDIT AGREEMENT AND WAIVER,
dated as of June 13, 2005 (this
"Amendment and Waiver"), to the Credit
Agreement, dated as of November 5, 2004,
as amended as of December 22, 2004 (as
so amended, the "Credit Agreement"),
among SPHERIS HOLDING II, INC.
("Holdings"), SPHERIS INC. (as successor
to Spheris Holding, Inc.) (the
"Borrower"), the LENDERS party thereto,
and JPMORGAN CHASE BANK, N.A., as
Administrative Agent (the
"Administrative Agent"), UBS SECURITIES
LLC, as Syndication Agent and XXXXXXX
XXXXX CAPITAL, a division of Xxxxxxx
Xxxxx Financial Services, Inc., as
Documentation Agent.
AVENUE CLO FUND, LIMITED
By: /s/ Xxxxxxx X'Xxxxxxx
------------------------------------
Title: Senior Portfolio Manager
---------------------------------
Signature page to the SECOND AMENDMENT
TO THE CREDIT AGREEMENT AND WAIVER,
dated as of June 13, 2005 (this
"Amendment and Waiver"), to the Credit
Agreement, dated as of November 5, 2004,
as amended as of December 22, 2004 (as
so amended, the "Credit Agreement"),
among SPHERIS HOLDING II, INC.
("Holdings"), SPHERIS INC. (as successor
to Spheris Holding, Inc.) (the
"Borrower"), the LENDERS party thereto,
and JPMORGAN CHASE BANK, N.A., as
Administrative Agent (the
"Administrative Agent"), UBS SECURITIES
LLC, as Syndication Agent and XXXXXXX
XXXXX CAPITAL, a division of Xxxxxxx
Xxxxx Financial Services, Inc., as
Documentation Agent.
GSC PARTNERS CDO FUND V, LIMITED
By: GSCP (NJ), L.P.,
as Collateral Manager
By /s/ Xxxx Xxxxxxxxxxx
-------------------------------------
Name: Xxxx Xxxxxxxxxxx
----------------------------------
Title: Authorized Signatory
---------------------------------
GSC PARTNERS CDO FUND IV, LIMITED
By: GSCP (NJ), L.P.,
as Collateral Manager
By /s/ Xxxx Xxxxxxxxxxx
-------------------------------------
Name: Xxxx Xxxxxxxxxxx
---------------------------------
Title: Authorized Signatory
---------------------------------
GSC PARTNERS GEMINI FUND LIMITED
By: GSCP (NJ), L.P., as Collateral
Monitor
By: GSCP (NJ), INC., its General
Partner
By /s/ Xxxx Xxxxxxxxxxx
-------------------------------------
Name: Xxxx Xxxxxxxxxxx
----------------------------------
Title: Authorized Signatory
---------------------------------
Signature page to the SECOND AMENDMENT
TO THE CREDIT AGREEMENT AND WAIVER,
dated as of June 13, 2005 (this
"Amendment and Waiver"), to the Credit
Agreement, dated as of November 5, 2004,
as amended as of December 22, 2004 (as
so amended, the "Credit Agreement"),
among SPHERIS HOLDING II, INC.
("Holdings"), SPHERIS INC. (as successor
to Spheris Holding, Inc.) (the
"Borrower"), the LENDERS party thereto,
and JPMORGAN CHASE BANK, N.A., as
Administrative Agent (the
"Administrative Agent"), UBS SECURITIES
LLC, as Syndication Agent and XXXXXXX
XXXXX CAPITAL, a division of Xxxxxxx
Xxxxx Financial Services, Inc., as
Documentation Agent.
CANYON CAPITAL CLO 2004-1 LTD.
By: /s/ Xxxxxx X. Xxxxxxxx
------------------------------------
Title: Manager Director
---------------------------------
By: Canyon Capital Advisors LLC,
a Delaware limited liability
company, its Collateral Manager.
Signature page to the SECOND AMENDMENT
TO THE CREDIT AGREEMENT AND WAIVER,
dated as of June 13, 2005 (this
"Amendment and Waiver"), to the Credit
Agreement, dated as of November 5, 2004,
as amended as of December 22, 2004 (as
so amended, the "Credit Agreement"),
among SPHERIS HOLDING II, INC.
("Holdings"), SPHERIS INC. (as successor
to Spheris Holding, Inc.) (the
"Borrower"), the LENDERS party thereto,
and JPMORGAN CHASE BANK, N.A., as
Administrative Agent (the
"Administrative Agent"), UBS SECURITIES
LLC, as Syndication Agent and XXXXXXX
XXXXX CAPITAL, a division of Xxxxxxx
Xxxxx Financial Services, Inc., as
Documentation Agent.
GENERAL ELECTRIC CAPITAL CORPORATION
By: /s/ Xxxxx X. Xxxxxxxx
------------------------------------
Title: Duly Authorized Signatory
---------------------------------
Signature page to the SECOND AMENDMENT
TO THE CREDIT AGREEMENT AND WAIVER,
dated as of June 13, 2005 (this
"Amendment and Waiver"), to the Credit
Agreement, dated as of November 5, 2004,
as amended as of December 22, 2004 (as
so amended, the "Credit Agreement"),
among SPHERIS HOLDING II, INC.
("Holdings"), SPHERIS INC. (as successor
to Spheris Holding, Inc.) (the
"Borrower"), the LENDERS party thereto,
and JPMORGAN CHASE BANK, N.A., as
Administrative Agent (the
"Administrative Agent"), UBS SECURITIES
LLC, as Syndication Agent and XXXXXXX
XXXXX CAPITAL, a division of Xxxxxxx
Xxxxx Financial Services, Inc., as
Documentation Agent.
LONG LANE MASTER TRUST IV
By: /s/ Xxxxxxxx X. Xxxxxxx
------------------------------------
Title: Authorized Agent
---------------------------------
Signature page to the SECOND AMENDMENT
TO THE CREDIT AGREEMENT AND WAIVER,
dated as of June 13, 2005 (this
"Amendment and Waiver"), to the Credit
Agreement, dated as of November 5, 2004,
as amended as of December 22, 2004 (as
so amended, the "Credit Agreement"),
among SPHERIS HOLDING II, INC.
("Holdings"), SPHERIS INC. (as successor
to Spheris Holding, Inc.) (the
"Borrower"), the LENDERS party thereto,
and JPMORGAN CHASE BANK, N.A., as
Administrative Agent (the
"Administrative Agent"), UBS SECURITIES
LLC, as Syndication Agent and XXXXXXX
XXXXX CAPITAL, a division of Xxxxxxx
Xxxxx Financial Services, Inc., as
Documentation Agent.
HARBOUR TOWN FUNDING LLC
By: /s/ Xxxxxxxx X. Xxxxxxx
------------------------------------
Title: Assistant Vice President
---------------------------------
Signature page to the SECOND AMENDMENT
TO THE CREDIT AGREEMENT AND WAIVER,
dated as of June 13, 2005 (this
"Amendment and Waiver"), to the Credit
Agreement, dated as of November 5, 2004,
as amended as of December 22, 2004 (as
so amended, the "Credit Agreement"),
among SPHERIS HOLDING II, INC.
("Holdings"), SPHERIS INC. (as successor
to Spheris Holding, Inc.) (the
"Borrower"), the LENDERS party thereto,
and JPMORGAN CHASE BANK, N.A., as
Administrative Agent (the
"Administrative Agent"), UBS SECURITIES
LLC, as Syndication Agent and XXXXXXX
XXXXX CAPITAL, a division of Xxxxxxx
Xxxxx Financial Services, Inc., as
Documentation Agent.
WB LOAN FUNDING 2, LLC
By: /s/
------------------------------------
Title: President
---------------------------------
Signature page to the SECOND AMENDMENT
TO THE CREDIT AGREEMENT AND WAIVER,
dated as of June 13, 2005 (this
"Amendment and Waiver"), to the Credit
Agreement, dated as of November 5, 2004,
as amended as of December 22, 2004 (as
so amended, the "Credit Agreement"),
among SPHERIS HOLDING II, INC.
("Holdings"), SPHERIS INC. (as successor
to Spheris Holding, Inc.) (the
"Borrower"), the LENDERS party thereto,
and JPMORGAN CHASE BANK, N.A., as
Administrative Agent (the
"Administrative Agent"), UBS SECURITIES
LLC, as Syndication Agent and XXXXXXX
XXXXX CAPITAL, a division of Xxxxxxx
Xxxxx Financial Services, Inc., as
Documentation Agent.
UBS LOAN FINANCE LLC
By: /s/ Xxxxxxx X. Xxxxx
------------------------------------
Title: Director Banking Product
Services, US
---------------------------------
By: /s/ Xxxxxxx Xxxxxxxxx
------------------------------------
Title: Associate Director Banking
Product Services, US
---------------------------------
Signature page to the SECOND AMENDMENT
TO THE CREDIT AGREEMENT AND WAIVER,
dated as of June 13, 2005 (this
"Amendment and Waiver"), to the Credit
Agreement, dated as of November 5, 2004,
as amended as of December 22, 2004 (as
so amended, the "Credit Agreement"),
among SPHERIS HOLDING II, INC.
("Holdings"), SPHERIS INC. (as successor
to Spheris Holding, Inc.) (the
"Borrower"), the LENDERS party thereto,
and JPMORGAN CHASE BANK, N.A., as
Administrative Agent (the
"Administrative Agent"), UBS SECURITIES
LLC, as Syndication Agent and XXXXXXX
XXXXX CAPITAL, a division of Xxxxxxx
Xxxxx Financial Services, Inc., as
Documentation Agent.
Sankaty Advisors, LLC as Collateral
Manager for XXXXX POINT CLO, LTD.,
as Term Lender
By: /s/ Xxxxx X. Xxxxx
------------------------------------
Title: Managing Director
Portfolio Manager
---------------------------------
Signature page to the SECOND AMENDMENT
TO THE CREDIT AGREEMENT AND WAIVER,
dated as of June 13, 2005 (this
"Amendment and Waiver"), to the Credit
Agreement, dated as of November 5, 2004,
as amended as of December 22, 2004 (as
so amended, the "Credit Agreement"),
among SPHERIS HOLDING II, INC.
("Holdings"), SPHERIS INC. (as successor
to Spheris Holding, Inc.) (the
"Borrower"), the LENDERS party thereto,
and JPMORGAN CHASE BANK, N.A., as
Administrative Agent (the
"Administrative Agent"), UBS SECURITIES
LLC, as Syndication Agent and XXXXXXX
XXXXX CAPITAL, a division of Xxxxxxx
Xxxxx Financial Services, Inc., as
Documentation Agent.
Sankaty Advisors, LLC as Collateral
Manager for Race Point II CLO, Limited,
as Term Lender
By: /s/ Xxxxx X. Xxxxx
------------------------------------
Title: Managing Director
Portfolio Manager
---------------------------------
Signature page to the SECOND AMENDMENT
TO THE CREDIT AGREEMENT AND WAIVER,
dated as of June 13, 2005 (this
"Amendment and Waiver"), to the Credit
Agreement, dated as of November 5, 2004,
as amended as of December 22, 2004 (as
so amended, the "Credit Agreement"),
among SPHERIS HOLDING II, INC.
("Holdings"), SPHERIS INC. (as successor
to Spheris Holding, Inc.) (the
"Borrower"), the LENDERS party thereto,
and JPMORGAN CHASE BANK, N.A., as
Administrative Agent (the
"Administrative Agent"), UBS SECURITIES
LLC, as Syndication Agent and XXXXXXX
XXXXX CAPITAL, a division of Xxxxxxx
Xxxxx Financial Services, Inc., as
Documentation Agent.
Sankaty Advisors, LLC, as Collateral
Manager for Loan Funding XI LLC,
as Term Lender
By: /s/ Xxxxx X. Xxxxx
------------------------------------
Title: Managing Director
Portfolio Manager
---------------------------------
Signature page to the SECOND AMENDMENT
TO THE CREDIT AGREEMENT AND WAIVER,
dated as of June 13, 2005 (this
"Amendment and Waiver"), to the Credit
Agreement, dated as of November 5, 2004,
as amended as of December 22, 2004 (as
so amended, the "Credit Agreement"),
among SPHERIS HOLDING II, INC.
("Holdings"), SPHERIS INC. (as successor
to Spheris Holding, Inc.) (the
"Borrower"), the LENDERS party thereto,
and JPMORGAN CHASE BANK, N.A., as
Administrative Agent (the
"Administrative Agent"), UBS SECURITIES
LLC, as Syndication Agent and XXXXXXX
XXXXX CAPITAL, a division of Xxxxxxx
Xxxxx Financial Services, Inc., as
Documentation Agent.
SANKATY HIGH YIELD PARTNERS II, L.P.
By: /s/ Xxxxx X. Xxxxx
------------------------------------
Title: Managing Director
Portfolio Manager
---------------------------------
Signature page to the SECOND AMENDMENT
TO THE CREDIT AGREEMENT AND WAIVER,
dated as of June 13, 2005 (this
"Amendment and Waiver"), to the Credit
Agreement, dated as of November 5, 2004,
as amended as of December 22, 2004 (as
so amended, the "Credit Agreement"),
among SPHERIS HOLDING II, INC.
("Holdings"), SPHERIS INC. (as successor
to Spheris Holding, Inc.) (the
"Borrower"), the LENDERS party thereto,
and JPMORGAN CHASE BANK, N.A., as
Administrative Agent (the
"Administrative Agent"), UBS SECURITIES
LLC, as Syndication Agent and XXXXXXX
XXXXX CAPITAL, a division of Xxxxxxx
Xxxxx Financial Services, Inc., as
Documentation Agent.
Sankaty Advisors, LLC as Collateral
Manager for Race Point CLO, Limited,
as Term Lender
By: /s/ Xxxxx X. Xxxxx
------------------------------------
Title: Managing Director
Portfolio Manager
---------------------------------
Signature page to the SECOND AMENDMENT
TO THE CREDIT AGREEMENT AND WAIVER,
dated as of June 13, 2005 (this
"Amendment and Waiver"), to the Credit
Agreement, dated as of November 5, 2004,
as amended as of December 22, 2004 (as
so amended, the "Credit Agreement"),
among SPHERIS HOLDING II, INC.
("Holdings"), SPHERIS INC. (as successor
to Spheris Holding, Inc.) (the
"Borrower"), the LENDERS party thereto,
and JPMORGAN CHASE BANK, N.A., as
Administrative Agent (the
"Administrative Agent"), UBS SECURITIES
LLC, as Syndication Agent and XXXXXXX
XXXXX CAPITAL, a division of Xxxxxxx
Xxxxx Financial Services, Inc., as
Documentation Agent.
Sankaty Advisors, LLC as Collateral
Manager for Castle Hill III CLO,
Limited, as Term Lender
By: /s/ Xxxxx X. Xxxxx
------------------------------------
Title: Managing Director
Portfolio Manager
---------------------------------
6
THIRD AMENDMENT TO CREDIT AGREEMENT
THIRD AMENDMENT TO CREDIT AGREEMENT, dated as of September __, 2005
(this "Amendment"), to the Credit Agreement, dated as of November 5, 2004, as
amended on December 22, 2004 and June 13, 2005 (as so amended, the "Credit
Agreement"), among SPHERIS HOLDING II, INC. ("Holdings"), SPHERIS INC. (as
successor to Spheris Holding, Inc.) (the "Borrower"), the several lenders from
time to time parties thereto, JPMORGAN CHASE BANK, N.A., as Administrative Agent
(the "Administrative Agent"), UBS SECURITIES LLC, as Syndication Agent and
XXXXXXX XXXXX CAPITAL, a division of Xxxxxxx Xxxxx Financial Services, Inc., as
Documentation Agent.
WHEREAS pursuant to the Credit Agreement, the Lenders have agreed to
extend credit to the Borrower; and
WHEREAS the Borrower has requested that the Credit Agreement be
amended in the manner provided for in this Amendment, and the Lenders are
willing to agree to such amendments as provided for herein;
NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein the parties hereto hereby agree as follows:
1. Defined Terms. Capitalized terms used and not defined herein shall
have the meanings given to them in the Credit Agreement.
2. Amendment to Section 1.1 (Defined Terms). Section 1.1 of the Credit
Agreement is hereby amended by inserting, in proper alphabetical order, the
following new definitions:
"Original Leverage Ratio" shall mean, for purposes of determining the
Borrower's maximum Leverage Ratio for purposes of Section 6.6(a)(viii), the
Leverage Ratio at the end of any fiscal quarter ending during a period set
forth below set forth opposite such period:
Period Leverage Ratio
----------------------------------------- --------------
July 1, 2005 through December 31, 2005 6.25 to 1.00
January 1, 2006 through March 31, 2006 6.00 to 1.00
April 1, 2006 through June 30, 2006 5.75 to 1.00
July 1, 2006 through September 30, 2006 5.50 to 1.00
October 1, 2006 through December 31, 2006 5.00 to 1.00
January 1, 2007 through March 31, 2007 4.75 to 1.00
April 1, 2007 through June 30, 2007 4.50 to 1.00
July 1, 2007 through September 30, 2007 4.25 to 1.00
October 1, 2007 through December 31, 2007 4.00 to 1.00
January 1, 2008 through March 31, 2008 3.75 to 1.00
April 1, 2008 through June 30, 2008 3.50 to 1.00
July 1, 2008 through September 30, 2008 3.25 to 1.00
October 1, 2008 through December 31, 2008 3.00 to 1.00
January 1, 2009 through March 31, 2009 2.75 to 1.00
April 1, 2009 and thereafter 2.50 to 1.00
3. Amendment to Section 6.6 (Restricted Payments). Section 6.6 is
hereby amended by deleting Section 6.6(a)(viii) in its entirety and substituting
therefor the following:
"(viii) Holdings, the Borrower and its Subsidiaries may make
additional Restricted Payments not in excess of $5,000,000 in the aggregate
so long as (A) no Default or Event of Default shall have occurred and be
continuing or would result therefrom and (B) the Borrower would be in Pro
Forma Compliance (assuming for purposes of making such determination that
the Leverage Ratio is less than or equal to the Original Leverage Ratio in
effect at the time such determination is made)."
4. Amendment to Section 6.11 (Interest Coverage Ratio). Section 6.11
of the Credit Agreement is hereby amended by deleting it in its entirety and
substituting therefor the following:
Section 6.11 Interest Coverage Ratio. Permit the Interest Coverage
Ratio for any period of four consecutive fiscal quarters, in each case
taken as one accounting period, ending during any period set forth below to
be less than the ratio set forth opposite such period below:
Period Ratio
----------------------------------------- --------------
July 1, 2005 through September 30, 2005 1.50 to 1.00
October 1, 2005 through December 31, 2005 1.50 to 1.00
2
January 1, 2006 through March 31, 2006 1.50 to 1.00
April 1, 2006 through June 30, 2006 1.50 to 1.00
July 1, 2006 through September 30, 2006 1.60 to 1.00
October 1, 2006 through December 31, 2006 1.70 to 1.00
January 1, 2007 through March 31, 2007 1.70 to 1.00
April 1, 2007 through June 30, 2007 1.80 to 1.00
July 1, 2007 through September 30, 2007 1.90 to 1.00
October 1, 2007 through December 31, 2007 2.00 to 1.00
January 1, 2008 through March 31, 2008 2.20 to 1.00
April 1, 2008 through June 30, 2008 2.20 to 1.00
July 1, 2008 through September 30, 2008 2.40 to 1.00
October 1, 2008 through December 31, 2008 2.40 to 1.00
January 1, 2009 through March 31, 2009 2.50 to 1.00
April 1, 2009 through June 30, 2009 2.60 to 1.00
July 1, 2009 through September 30, 2009 2.70 to 1.00
October 1, 2009 through December 31, 2009 2.80 to 1.00
January 1, 2010 and thereafter 3.00 to 1.00
; provided, that for the purposes of determining the ratio described above
for the fiscal quarter of the Borrower ending September 30, 2005, such
ratio for shall be determined on the basis of Consolidated EBITDA and
Consolidated Interest Expense for the period commencing January 1, 2005.
5. Amendment to Section 6.12 (Maximum Leverage Ratio). Section 6.12 of
the Credit Agreement is hereby amended by deleting it in its entirety and
substituting therefor the following:
Section 6.12 Maximum Leverage Ratio. Permit the Leverage Ratio at the
end of any fiscal quarter ending during a period set forth below to be
greater than the ratio set forth opposite such period below.
3
Period Ratio
----------------------------------------- --------------
July 1, 2005 through September 30, 2005 6.25 to 1.00
October 1, 2005 through December 31, 2005 6.25 to 1.00
January 1, 2006 through March 31, 2006 6.25 to 1.00
April 1, 2006 through June 30, 2006 6.25 to 1.00
July 1, 2006 through September 30, 2006 6.00 to 1.00
October 1, 2006 through December 31, 2006 5.75 to 1.00
January 1, 2007 through March 31, 2007 5.75 to 1.00
April 1, 2007 through June 30, 2007 5.50 to 1.00
July 1, 2007 through September 30, 2007 5.25 to 1.00
October 1, 2007 through December 31, 2007 5.00 to 1.00
January 1, 2008 through March 31, 2008 4.75 to 1.00
April 1, 2008 through June 30, 2008 4.50 to 1.00
July 1, 2008 through September 30, 2008 4.25 to 1.00
October 1, 2008 through December 31, 2008 4.00 to 1.00
January 1, 2009 through March 31, 2009 3.75 to 1.00
April 1, 2009 through June 30, 2009 3.50 to 1.00
July 1, 2009 through September 30, 2009 3.50 to 1.00
October 1, 2009 through December 31, 2009 3.50 to 1.00
January 1, 2010 and thereafter 3.00 to 1.00
6. No Other Amendments; Confirmation. Except as expressly amended
hereby, the provisions of the Credit Agreement are and shall remain in full
force and effect. Nothing herein shall be deemed to entitle the Borrower to a
consent to, or a waiver, amendment, modification or other change of, any of the
terms, conditions, obligations, covenants or agreements contained in the Credit
Agreement or any Loan Document in similar or different circumstances.
4
7. Representations and Warranties. The Borrower hereby represents and
warrants to the Administrative Agent and the Lenders that, as of the date hereof
and after giving effect to the waivers and amendment contained herein:
(a) no Default or Event of Default has occurred and is continuing
other than those described herein; and
(b) the execution, delivery and performance by the Borrower of this
Amendment have been duly authorized by all necessary corporate and other action
and does not and will not require any registration with, consent or approval of,
notice to or action by, any person (including any Governmental Authority) in
order to be effective and enforceable.
8. Conditions Precedent to Effectiveness. This Amendment shall become
effective on the date on which the Administrative Agent shall have received
counterparts hereof duly executed and delivered by the Borrower, the Required
Lenders and Revolving Credit Lenders holding at least a majority in interest of
the Revolving Credit Commitments.
9. Amendment Fee. The Borrower agrees to pay an amendment fee, for the
account of each Lender that delivers an executed signature page to this
Amendment by 5:00 p.m., New York City time, on September 21, 2005, in an amount
equal to 0.20% of the sum of (a) such Lender's Revolving Credit Commitment and
(b) the aggregate principal amount of such Lender's outstanding Term Loans,
which fee shall be payable promptly upon this Amendment becoming effective.
Failure to pay such fee shall be deemed to, and shall, constitute an Event of
Default under the Credit Agreement.
10. Expenses. The Borrower agrees to promptly pay and/or reimburse the
Administrative Agent for its invoiced out-of-pocket expenses in connection with
this Amendment (including the reasonable fees, charges and disbursements of
Xxxxxxx Xxxxxxx & Xxxxxxxx LLP, counsel for the Administrative Agent).
11. Governing Law; Counterparts. (a) This Amendment and the rights and
obligations of the parties hereto shall be governed by, and construed and
interpreted in accordance with, the laws of the State of New York.
(b) This Amendment may be executed by one or more of the parties to
this Amendment on any number of separate counterparts, and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument. This Amendment may be delivered by facsimile transmission of the
relevant signature pages hereof.
5
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be duly executed and delivered by their duly authorized officers as of the day
and year first above written.
SPHERIS HOLDING II, INC.,
By: /s/ Xxxxxxx X. Xxxxxxx
------------------------------------
Name: Xxxxxxx X. Xxxxxxx
----------------------------------
Title: CAO
---------------------------------
SPHERIS INC.
By: /s/ Xxxxxxx X. Xxxxxxx
------------------------------------
Name: Xxxxxxx X. Xxxxxxx
----------------------------------
Title: CAO
---------------------------------
JPMORGAN CHASE BANK, N.A. individually
and as Administrative Agent
By: /s/ Xxxxxxxxx Xxxxxx
------------------------------------
Name: Xxxxxxxxx Xxxxxx
----------------------------------
Title: Vice President
---------------------------------
UBS SECURITIES LLC, individually and as
Syndication Agent
By: Signature not required
------------------------------------
XXXXXXX XXXXX CAPITAL, a division of
Xxxxxxx Xxxxx Financial Services, Inc.,
individually and as Documentation Agent
By: /s/ Xxxx Xxxxx
------------------------------------
Name: Xxxx Xxxxx
----------------------------------
Title: Vice President
---------------------------------
6
Signature page to the THIRD AMENDMENT TO
THE CREDIT AGREEMENT, dated as of
September 12, 2005 (this "Amendment"),
to the Credit Agreement, dated as of
November 5, 2004, as amended on December
22, 2004 and June 13, 2005 (as so
amended, the "Credit Agreement"), among
SPHERIS HOLDING II, INC. ("Holdings"),
SPHERIS INC. (as successor to Spheris
Holding, Inc.) (the "Borrower"), the
LENDERS party thereto, and JPMORGAN
CHASE BANK, N.A., as Administrative
Agent (the "Administrative Agent"), UBS
SECURITIES LLC, as Syndication Agent and
XXXXXXX XXXXX CAPITAL, a division of
Xxxxxxx Xxxxx Financial Services, Inc.,
as Documentation Agent.
AVENUE CLO FUND, LIMITED
By: /s/ Xxxxxxx X'Xxxxxxx
------------------------------------
Title: Senior Portfolio Manager
---------------------------------
Signature page to the THIRD AMENDMENT TO
THE CREDIT AGREEMENT, dated as of
September 12, 2005 (this "Amendment"),
to the Credit Agreement, dated as of
November 5, 2004, as amended on December
22, 2004 and June 13, 2005 (as so
amended, the "Credit Agreement"), among
SPHERIS HOLDING II, INC. ("Holdings"),
SPHERIS INC. (as successor to Spheris
Holding, Inc.) (the "Borrower"), the
LENDERS party thereto, and JPMORGAN
CHASE BANK, N.A., as Administrative
Agent (the "Administrative Agent"), UBS
SECURITIES LLC, as Syndication Agent and
XXXXXXX XXXXX CAPITAL, a division of
Xxxxxxx Xxxxx Financial Services, Inc.,
as Documentation Agent.
Sankaty Advisors, LLC as Collateral
Manager for XXXXX POINT CLO, LTD.,
as Term Lender
[NAME OF LENDER]
By: /s/ Xxxxx X. Xxxxxxx III
------------------------------------
Title: Managing Director
---------------------------------
Signature page to the THIRD AMENDMENT TO
THE CREDIT AGREEMENT, dated as of
September 12, 2005 (this "Amendment"),
to the Credit Agreement, dated as of
November 5, 2004, as amended on December
22, 2004 and June 13, 2005 (as so
amended, the "Credit Agreement"), among
SPHERIS HOLDING II, INC. ("Holdings"),
SPHERIS INC. (as successor to Spheris
Holding, Inc.) (the "Borrower"), the
LENDERS party thereto, and JPMORGAN
CHASE BANK, N.A., as Administrative
Agent (the "Administrative Agent"), UBS
SECURITIES LLC, as Syndication Agent and
XXXXXXX XXXXX CAPITAL, a division of
Xxxxxxx Xxxxx Financial Services, Inc.,
as Documentation Agent.
By: Callidus Debt Partners
CLO Fund III Ltd.
By: Its Collateral Manager,
Callidus Capital Management, LLC
[NAME OF LENDER]
By: /s/ Xxxxx Xxxxxxx
------------------------------------
Title: Senior Managing Director
---------------------------------
Signature page to the THIRD AMENDMENT TO
THE CREDIT AGREEMENT, dated as of
September 12, 2005 (this "Amendment"),
to the Credit Agreement, dated as of
November 5, 2004, as amended on December
22, 2004 and June 13, 2005 (as so
amended, the "Credit Agreement"), among
SPHERIS HOLDING II, INC. ("Holdings"),
SPHERIS INC. (as successor to Spheris
Holding, Inc.) (the "Borrower"), the
LENDERS party thereto, and JPMORGAN
CHASE BANK, N.A., as Administrative
Agent (the "Administrative Agent"), UBS
SECURITIES LLC, as Syndication Agent and
XXXXXXX XXXXX CAPITAL, a division of
Xxxxxxx Xxxxx Financial Services, Inc.,
as Documentation Agent.
Canyon Capital CLO 2004-1 Ltd.
----------------------------------------
[NAME OF LENDER]
By: /s/ X. Xxxxxxxxx X. Xxxxxxx
------------------------------------
Title: Managing Director
---------------------------------
By: Canyon Capital Advisors LLC,
a Delaware limited liability
company, its Collateral Manager
Signature page to the THIRD AMENDMENT TO
THE CREDIT AGREEMENT, dated as of
September 12, 2005 (this "Amendment"),
to the Credit Agreement, dated as of
November 5, 2004, as amended on December
22, 2004 and June 13, 2005 (as so
amended, the "Credit Agreement"), among
SPHERIS HOLDING II, INC. ("Holdings"),
SPHERIS INC. (as successor to Spheris
Holding, Inc.) (the "Borrower"), the
LENDERS party thereto, and JPMORGAN
CHASE BANK, N.A., as Administrative
Agent (the "Administrative Agent"), UBS
SECURITIES LLC, as Syndication Agent and
XXXXXXX XXXXX CAPITAL, a division of
Xxxxxxx Xxxxx Financial Services, Inc.,
as Documentation Agent.
Sankaty Advisors, LLC as Collateral
Manager for Castle Hill III CLO,
Limited, as Term Lender
[NAME OF LENDER]
By: /s/ Xxxxx X. Xxxxxxx III
------------------------------------
Title: Managing Director
---------------------------------
Signature page to the THIRD AMENDMENT TO
THE CREDIT AGREEMENT, dated as of
September 12, 2005 (this "Amendment"),
to the Credit Agreement, dated as of
November 5, 2004, as amended on December
22, 2004 and June 13, 2005 (as so
amended, the "Credit Agreement"), among
SPHERIS HOLDING II, INC. ("Holdings"),
SPHERIS INC. (as successor to Spheris
Holding, Inc.) (the "Borrower"), the
LENDERS party thereto, and JPMORGAN
CHASE BANK, N.A., as Administrative
Agent (the "Administrative Agent"), UBS
SECURITIES LLC, as Syndication Agent and
XXXXXXX XXXXX CAPITAL, a division of
Xxxxxxx Xxxxx Financial Services, Inc.,
as Documentation Agent.
FRIEDBERGMILSTEIN PRIVATE CAPITAL
FUND I
By: /s/ Xxxxx X. Xxxxxx III
------------------------------------
Name: Xxxxx X. Xxxxxx III
----------------------------------
Title: Partner
---------------------------------
Signature page to the THIRD AMENDMENT TO
THE CREDIT AGREEMENT, dated as of
September 12, 2005 (this "Amendment"),
to the Credit Agreement, dated as of
November 5, 2004, as amended on December
22, 2004 and June 13, 2005 (as so
amended, the "Credit Agreement"), among
SPHERIS HOLDING II, INC. ("Holdings"),
SPHERIS INC. (as successor to Spheris
Holding, Inc.) (the "Borrower"), the
LENDERS party thereto, and JPMORGAN
CHASE BANK, N.A., as Administrative
Agent (the "Administrative Agent"), UBS
SECURITIES LLC, as Syndication Agent and
XXXXXXX XXXXX CAPITAL, a division of
Xxxxxxx Xxxxx Financial Services, Inc.,
as Documentation Agent.
----------------------------------------
General Electric Capital Corporation
By: /s/
------------------------------------
Title: Duly Authorized Signatory
---------------------------------
Signature page to the THIRD AMENDMENT TO
THE CREDIT AGREEMENT, dated as of
September 12, 2005 (this "Amendment"),
to the Credit Agreement, dated as of
November 5, 2004, as amended on December
22, 2004 and June 13, 2005 (as so
amended, the "Credit Agreement"), among
SPHERIS HOLDING II, INC. ("Holdings"),
SPHERIS INC. (as successor to Spheris
Holding, Inc.) (the "Borrower"), the
LENDERS party thereto, and JPMORGAN
CHASE BANK, N.A., as Administrative
Agent (the "Administrative Agent"), UBS
SECURITIES LLC, as Syndication Agent and
XXXXXXX XXXXX CAPITAL, a division of
Xxxxxxx Xxxxx Financial Services, Inc.,
as Documentation Agent.
GSC PARTNERS CDO FUND IV, LIMITED
By: GSCP (NJ), L.P.,
as Collateral Manager
By: /s/ Xxxxxx X. Xxxxxx
------------------------------------
Title: Authorized Signatory
---------------------------------
Signature page to the THIRD AMENDMENT TO
THE CREDIT AGREEMENT, dated as of
September 12, 2005 (this "Amendment"),
to the Credit Agreement, dated as of
November 5, 2004, as amended on December
22, 2004 and June 13, 2005 (as so
amended, the "Credit Agreement"), among
SPHERIS HOLDING II, INC. ("Holdings"),
SPHERIS INC. (as successor to Spheris
Holding, Inc.) (the "Borrower"), the
LENDERS party thereto, and JPMORGAN
CHASE BANK, N.A., as Administrative
Agent (the "Administrative Agent"), UBS
SECURITIES LLC, as Syndication Agent and
XXXXXXX XXXXX CAPITAL, a division of
Xxxxxxx Xxxxx Financial Services, Inc.,
as Documentation Agent.
GSC PARTNERS CDO FUND V, LIMITED
By: GSCP (NJ), L.P.,
as Collateral Manager
By: /s/ Xxxxxx X. Xxxxxx
------------------------------------
Title: Authorized Signatory
---------------------------------
Signature page to the THIRD AMENDMENT TO
THE CREDIT AGREEMENT, dated as of
September 12, 2005 (this "Amendment"),
to the Credit Agreement, dated as of
November 5, 2004, as amended on December
22, 2004 and June 13, 2005 (as so
amended, the "Credit Agreement"), among
SPHERIS HOLDING II, INC. ("Holdings"),
SPHERIS INC. (as successor to Spheris
Holding, Inc.) (the "Borrower"), the
LENDERS party thereto, and JPMORGAN
CHASE BANK, N.A., as Administrative
Agent (the "Administrative Agent"), UBS
SECURITIES LLC, as Syndication Agent and
XXXXXXX XXXXX CAPITAL, a division of
Xxxxxxx Xxxxx Financial Services, Inc.,
as Documentation Agent.
GSC PARTNERS GEMINI FUND LIMITED
By: GSCP (NJ), L.P.,
as Collateral Monitor
By: GSCP (NJ), INC., it General
Partner
By: /s/ Xxxxxx X. Xxxxxx
------------------------------------
Title: Authorized Signatory
---------------------------------
Signature page to the THIRD AMENDMENT TO
THE CREDIT AGREEMENT, dated as of
September 12, 2005 (this "Amendment"),
to the Credit Agreement, dated as of
November 5, 2004, as amended on December
22, 2004 and June 13, 2005 (as so
amended, the "Credit Agreement"), among
SPHERIS HOLDING II, INC. ("Holdings"),
SPHERIS INC. (as successor to Spheris
Holding, Inc.) (the "Borrower"), the
LENDERS party thereto, and JPMORGAN
CHASE BANK, N.A., as Administrative
Agent (the "Administrative Agent"), UBS
SECURITIES LLC, as Syndication Agent and
XXXXXXX XXXXX CAPITAL, a division of
Xxxxxxx Xxxxx Financial Services, Inc.,
as Documentation Agent.
HARBOUR TOWN FUNDING LLC
By: /s/ Xxxx X. Fallent
------------------------------------
Title: Assistant Vice President
---------------------------------
Signature page to the THIRD AMENDMENT TO
THE CREDIT AGREEMENT, dated as of
September 12, 2005 (this "Amendment"),
to the Credit Agreement, dated as of
November 5, 2004, as amended on December
22, 2004 and June 13, 2005 (as so
amended, the "Credit Agreement"), among
SPHERIS HOLDING II, INC. ("Holdings"),
SPHERIS INC. (as successor to Spheris
Holding, Inc.) (the "Borrower"), the
LENDERS party thereto, and JPMORGAN
CHASE BANK, N.A., as Administrative
Agent (the "Administrative Agent"), UBS
SECURITIES LLC, as Syndication Agent and
XXXXXXX XXXXX CAPITAL, a division of
Xxxxxxx Xxxxx Financial Services, Inc.,
as Documentation Agent.
Sankaty Advisors, LLC as Collateral
Manager for Loan Funding XI LLC,
as Term Lender
By: /s/ Xxxxx X. Xxxxxxx III
------------------------------------
Title: Managing Director
---------------------------------
Signature page to the THIRD AMENDMENT TO
THE CREDIT AGREEMENT, dated as of
September 12, 2005 (this "Amendment"),
to the Credit Agreement, dated as of
November 5, 2004, as amended on December
22, 2004 and June 13, 2005 (as so
amended, the "Credit Agreement"), among
SPHERIS HOLDING II, INC. ("Holdings"),
SPHERIS INC. (as successor to Spheris
Holding, Inc.) (the "Borrower"), the
LENDERS party thereto, and JPMORGAN
CHASE BANK, N.A., as Administrative
Agent (the "Administrative Agent"), UBS
SECURITIES LLC, as Syndication Agent and
XXXXXXX XXXXX CAPITAL, a division of
Xxxxxxx Xxxxx Financial Services, Inc.,
as Documentation Agent.
LONG LANE MASTER TRUST IV
By: /s/
------------------------------------
Title: Authorized Agent
---------------------------------
Signature page to the THIRD AMENDMENT TO
THE CREDIT AGREEMENT, dated as of
September 12, 2005 (this "Amendment"),
to the Credit Agreement, dated as of
November 5, 2004, as amended on December
22, 2004 and June 13, 2005 (as so
amended, the "Credit Agreement"), among
SPHERIS HOLDING II, INC. ("Holdings"),
SPHERIS INC. (as successor to Spheris
Holding, Inc.) (the "Borrower"), the
LENDERS party thereto, and JPMORGAN
CHASE BANK, N.A., as Administrative
Agent (the "Administrative Agent"), UBS
SECURITIES LLC, as Syndication Agent and
XXXXXXX XXXXX CAPITAL, a division of
Xxxxxxx Xxxxx Financial Services, Inc.,
as Documentation Agent.
Sankaty Advisors, LLC as Collateral
Manager for Race Point CLO, Limited,
as Term Lender
By: /s/ Xxxxx X. Xxxxxxx III
------------------------------------
Title: Managing Director
---------------------------------
Signature page to the THIRD AMENDMENT TO
THE CREDIT AGREEMENT, dated as of
September 12, 2005 (this "Amendment"),
to the Credit Agreement, dated as of
November 5, 2004, as amended on December
22, 2004 and June 13, 2005 (as so
amended, the "Credit Agreement"), among
SPHERIS HOLDING II, INC. ("Holdings"),
SPHERIS INC. (as successor to Spheris
Holding, Inc.) (the "Borrower"), the
LENDERS party thereto, and JPMORGAN
CHASE BANK, N.A., as Administrative
Agent (the "Administrative Agent"), UBS
SECURITIES LLC, as Syndication Agent and
XXXXXXX XXXXX CAPITAL, a division of
Xxxxxxx Xxxxx Financial Services, Inc.,
as Documentation Agent.
Sankaty Advisors, LLC as Collateral
Manager for Race Point II CLO,
Limited, as Term Lender
By: /s/ Xxxxx X. Xxxxxxx III
------------------------------------
Title: Managing Director
---------------------------------
Signature page to the THIRD AMENDMENT TO
THE CREDIT AGREEMENT, dated as of
September 12, 2005 (this "Amendment"),
to the Credit Agreement, dated as of
November 5, 2004, as amended on December
22, 2004 and June 13, 2005 (as so
amended, the "Credit Agreement"), among
SPHERIS HOLDING II, INC. ("Holdings"),
SPHERIS INC. (as successor to Spheris
Holding, Inc.) (the "Borrower"), the
LENDERS party thereto, and JPMORGAN
CHASE BANK, N.A., as Administrative
Agent (the "Administrative Agent"), UBS
SECURITIES LLC, as Syndication Agent and
XXXXXXX XXXXX CAPITAL, a division of
Xxxxxxx Xxxxx Financial Services, Inc.,
as Documentation Agent.
Sankaty High Yield Partners II, L.P.
By: /s/ Xxxxx X. Xxxxxxx III
------------------------------------
Title: Managing Director
---------------------------------
Signature page to the THIRD AMENDMENT TO
THE CREDIT AGREEMENT, dated as of
September 12, 2005 (this "Amendment"),
to the Credit Agreement, dated as of
November 5, 2004, as amended on December
22, 2004 and June 13, 2005 (as so
amended, the "Credit Agreement"), among
SPHERIS HOLDING II, INC. ("Holdings"),
SPHERIS INC. (as successor to Spheris
Holding, Inc.) (the "Borrower"), the
LENDERS party thereto, and JPMORGAN
CHASE BANK, N.A., as Administrative
Agent (the "Administrative Agent"), UBS
SECURITIES LLC, as Syndication Agent and
XXXXXXX XXXXX CAPITAL, a division of
Xxxxxxx Xxxxx Financial Services, Inc.,
as Documentation Agent.
UBS Loan Finance LLC
By: /s/ Xxxxxxx X. Saint
------------------------------------
Title: Director
Banking Products Services, US
---------------------------------
By: /s/ Xxxxxxxxxxx X. Xxxxx
------------------------------------
Title: Associate Director
Banking Products Services, US
---------------------------------
Signature page to the THIRD AMENDMENT TO
THE CREDIT AGREEMENT, dated as of
September 12, 2005 (this "Amendment"),
to the Credit Agreement, dated as of
November 5, 2004, as amended on December
22, 2004 and June 13, 2005 (as so
amended, the "Credit Agreement"), among
SPHERIS HOLDING II, INC. ("Holdings"),
SPHERIS INC. (as successor to Spheris
Holding, Inc.) (the "Borrower"), the
LENDERS party thereto, and JPMORGAN
CHASE BANK, N.A., as Administrative
Agent (the "Administrative Agent"), UBS
SECURITIES LLC, as Syndication Agent and
XXXXXXX XXXXX CAPITAL, a division of
Xxxxxxx Xxxxx Financial Services, Inc.,
as Documentation Agent.
WB LOAN FUNDING 2, LLC
By: /s/ Xxxxx X. Xxxxx
------------------------------------
Title: Xxxxx X. Xxxxx
Associate
---------------------------------
7
SUPPLEMENT NO. 1, dated as of December
22, 2004, to the Guarantee and
Collateral Agreement, dated as of
November 5, 2004 (the "Guarantee and
Collateral Agreement"), among SPHERIS
HOLDING II, INC., a Delaware corporation
("Holdings"), SPHERIS HOLDING, INC., a
Delaware corporation (the "Borrower"),
each subsidiary of the Borrower listed
on Schedule I thereto (each such
subsidiary individually a "Subsidiary
Guarantor" and collectively, the
"Subsidiary Guarantors"; the Subsidiary
Guarantors, Holdings and the Borrower
are referred to collectively herein as
the "Grantors").
A. Reference is made to the Credit Agreement, dated as of November 5, 2004
(as amended, supplemented or otherwise modified from time to time, the "Credit
Agreement"), among the Borrower, Holdings, the lenders named therein (the
"Lenders"), and JPMorgan Chase Bank, N.A. (formerly known as JPMorgan Chase
Bank), as administrative agent (in such capacity, the "Administrative Agent").
B. Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to such terms in the Credit Agreement or the
Guarantee and Collateral Agreement referred to therein, as applicable.
C. The Grantors have entered into the Guarantee and Collateral Agreement in
order to induce the Lenders to make Loans and the Issuing Bank to issue Letters
of Credit. Section 7.16 of the Guarantee and Collateral Agreement provides that
additional Domestic Subsidiaries of the Loan Parties may become Subsidiary
Guarantors and Grantors under the Guarantee and Collateral Agreement by
execution and delivery of an instrument in the form of this Supplement. The
undersigned Subsidiary (the "New Subsidiary") is executing this Supplement in
accordance with the requirements of the Credit Agreement to become a Subsidiary
Guarantor and a Grantor under the Guarantee and Collateral Agreement in order to
induce the Lenders to make additional Loans and the Issuing Bank to issue
additional Letters of Credit and as consideration for Loans previously made and
Letters of Credit previously issued.
Accordingly, the New Subsidiary agrees as follows:
SECTION 1. In accordance with Section 7.16 of the Guarantee and Collateral
Agreement, the New Subsidiary by its signature below becomes a Grantor and
Subsidiary Guarantor under the Guarantee and Collateral Agreement with the same
force and effect as if originally named therein as a Grantor and Subsidiary
Guarantor and the New Subsidiary hereby (a) agrees to all the terms and
provisions of the Guarantee and Collateral Agreement applicable to it as a
Grantor and Subsidiary Guarantor thereunder and (b) represents and warrants that
the representations and warranties made by it as a Grantor and Subsidiary
Guarantor thereunder are true and correct in all material respects on and as of
the date hereof. In furtherance of the foregoing, the New Subsidiary, as
security for the payment and performance in full of the Obligations (as defined
in the Guarantee and Collateral Agreement), does hereby create and grant to the
Administrative Agent, its successors and assigns, for the benefit of the Secured
Parties, their successors and assigns, a
security interest in and lien on all of the New Subsidiary's right, title and
interest in and to the Collateral (as defined in the Guarantee and Collateral
Agreement) of the New Subsidiary. Each reference to a "Grantor" or a "Subsidiary
Guarantor" in the Guarantee and Collateral Agreement shall be deemed to include
the New Subsidiary. The Guarantee and Collateral Agreement is hereby
incorporated herein by reference.
SECTION 2. The New Subsidiary represents and warrants to the Administrative
Agent and the other Secured Parties that this Supplement has been duly
authorized, executed and delivered by it and constitutes its legal, valid and
binding obligation, enforceable against it in accordance with its terms.
SECTION 3. This Supplement may be executed in counterparts (and by
different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract. This Supplement shall become effective when the Administrative
Agent shall have received counterparts of this Supplement that bear the
signature of the New Subsidiary. Delivery of an executed signature page to this
Supplement by facsimile transmission shall be as effective as delivery of a
manually signed counterpart of this Supplement.
SECTION 4. The New Subsidiary hereby represents and warrants that (a) set
forth on Schedule I attached hereto is a true and correct schedule of the
location of any and all Collateral of the New Subsidiary and (b) set forth under
its signature hereto, is the true and correct legal name of the New Subsidiary,
its jurisdiction of formation and the location of its chief executive office.
SECTION 5. Except as expressly supplemented hereby, the Guarantee and
Collateral Agreement shall remain in full force and effect.
SECTION 6. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
SECTION 7. In case any one or more of the provisions contained in this
Supplement should be held invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein and in the Guarantee and Collateral Agreement shall not in any way be
affected or impaired thereby (it being understood that the invalidity of a
particular provision in a particular jurisdiction shall not in and of itself
affect the validity of such provision in any other jurisdiction). The parties
hereto shall endeavor in good-faith negotiations to replace the invalid, illegal
or unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.
SECTION 8. All communications and notices hereunder shall be in writing and
given as provided in Section 7.01 of the Guarantee and Collateral Agreement. All
communications and notices hereunder to the New Subsidiary shall be given to it
at the address set forth under its signature below.
SECTION 9. The New Subsidiary agrees to reimburse the Administrative Agent
for its reasonable out-of-pocket expenses in connection with this Supplement,
including the reasonable fees, other charges and disbursements of counsel for
the Administrative Agent.
IN WITNESS WHEREOF, the New Subsidiary has duly executed this Supplement to
the Guarantee and Collateral Agreement as of the day and year first above
written.
HEALTHSCRIBE, INC.,
By: /s/ Xxxx Xxxxxxxx
------------------------------------
Name: Xxxx Xxxxxxxx
Title:
---------------------------------
Address: 00000 Xxxxxxxx Xxxxxx, Xxxxx
000 Xxxxxxxx, Xxxxxxxx 00000
Legal Name: HealthScribe, Inc.
Jurisdiction
of Formation: Delaware
Location of Chief
Executive Office: 00000 Xxxxxxxx Xxxxxx,
Xxxxx 000 Xxxxxxxx,
Xxxxxxxx 00000
LOCATION OF COLLATERAL
HealthScribe has equipment located at many customer locations throughout the
U.S. The detail below provides a listing of our customer locations. The customer
locations that have equipment with a value greater than $10,000 are marked with
an asterisk (*). In addition, our home-based medical transcriptionists reside in
all 50 states and have computer equipment in their homes with a value under
$2,500.
Customer Name Address 1 Address 2 City St Zip
------------------------------- ------------------------------ ----------------- --------------- -- ----------
Saint Xxxxx Medical Center 0000 X. Xxxxxx Xxx. Xxxxxx XX 00000
Xx. Xxxxx X. Xxxx PSC 0000 Xxxxxxx Xxxxxx Xxxxxxxxxx XX 00000
Xxxxx & Xxxxxxx - UPMC 000 X. Xxxxx Xxx., Xxxxx 000 Xxxxxxxxxx XX 00000
" Allina Health System - Mercy 000 Xxxx 00xx Xx. Xxxxxxxxxxx XX 00000-0000
" Allina Health Systems Xxxxxx Xxxx Xxxxx 00000 000 Xxxx 00xx Xx. Xxxxxxxxxxx XX 00000-0000
Allina Health Systems Xxxxx Xxxx Xxxxx 00000 000 Xxxx 00xx Xx Xxxxxxxxxxx XX 00000-0000
" Allina BUFFALO HOSPITAL 000 XXXXXX XXXXXX XXXXXXX XX 00000
Allina United Pain Center 000 Xxxxx Xxxxx Xxx., Xxx. 000 Xx. Xxxx XX 00000
Allina Health System - Xxxxxx 000 Xxxx 00xx Xx. Xxxxxxxxxxx XX 00000-0000
" Allina Clinics - The Doctors 0000 Xxxxxx Xxxxxxxxxxx XX 00000
Allina Health System - Mercy ED 000 Xxxx 00xx Xx. Xxxxxxxxxxx XX 00000-0000
Allina Health System - Unity ED 000 Xxxx 00xx Xx. Xxxxxxxxxxx XX 00000-0000
Alle-Kiski Medical Cente 0000 Xxxxxxxx Xxxxxx Xxxxxxx Xxxxxxx XX 00000
Customer Name Address 1 Address 2 City St Zip
------------------------------------- ----------------------- ------------- ------------ -- ----------
Andalusia Regional Hospital X.X. Xxx 000 Xxxxxxxxx XX 00000
' ARROWHEAD REGIONAL MEDICAL CTR 000 XXXXX XXXXXX XXXXXX XXXXXX XX 00000
Associated Orthopaedic Surgeons, Inc. 000 Xxxxxxxx Xxxxx Xxxxx 000 Xxxxxxxxxxxx XX 00000
Atlanta Maternal-Fetal Med, PC 0000 X Xxxxxxx Xx Xxxxx 000 Xxxxxxx XX 00000
Atlas Diagnostics, LLC 0000 XX 000xx Xxxxxx Xxxxx 000 Xxxxx Xxxxx XX 00000
Xxxxx XxXxxxxx Hospital 000 Xxxx 00xx Xx. Xxxxx Xxxxx XX 00000
' Baptist Health System East TN 000 Xxxxxx Xxxxxx Xxxxxxxxx XX 00000
Baptist Hospital West 00000 Xxxxxxxx Xxxxx Xxxxxxxxx XX 00000
Baptist Hospital for Women 00000 Xxxxxxxx Xxxxx Xxxxxxxxx XX 00000
Bay Medical Center X.X. Xxx 00000 Xxxxxx Xxxx XX 00000-0000
Xxxxxxx Geriatric Center 0000 Xxxxxx Xxxxx XXXXXXXXXX XX 00000
UMA - NEPHROLOGY ATTN: XXX XXXXX 000 XXXXX XXX XXXXXXX XXXX XX 00000
BINGHAMTON GENERAL HOSPIATL 00-00 XXXXXXXX XXX. XXXXXXXXXX XX 00000
Bluffton Regional Medical Center 000 Xxxxx Xxxx Xxxxxx Xxxxxxxx XX 00000-0000
The Xxxxxxx Center of St. Xxxxxxx X.X. Xxx 0000 Xxxxxxxx XX 00000
Broken Bow Clinic, P.C. 000 Xxxxx X Xxxxxx X.X. Xxx 000 Xxxxxx Xxx XX 00000
Xxxxxx Memorial Hospital 000 Xxxx Xxxxx Xxxxxx Xxxxxx XX 00000
Cabarrus Gastroenterology Assoc 000 Xxxxxxx Xxxx Xxxxx Xxxxx 000 Xxxxxxx XX 00000
Customer Name Address 1 Address 2 City St Zip
---------------------------------------- ---------------------------- ---------------- ------------ -- ----------
Xxxxx X. Xxxxxxx, MD, PA 000 Xxx Xxxx Xxxx Xxxxxxx XX 00000
Xxxxxxxx Xxxxxxxx, MD 0000 Xxxxxxx Xxxx Xxxxxxxxxx XX 00000
Canadian Valley Regional Hospital 0000 Xxxxxx Xxxxxx Xxxxxxx Xxxxx XX 00000
Capital Health System - Xxxxxx 000 Xxxxxxxxx Xxxxxx XX # 000000 Xxxxxxx XX 00000
CARDIOVASCULAR INSTITUTE - UPMC HORIZON 0000 XXXXXXXX XXXXX XXXXXXX XX 00000
Cardiovascular Institute - Presbyterian 000 XXXXXXX XXXXXX X000 XXX XXXXXXXXXX XX 00000
CARDIOVASCULAR INSTITUTE - UPMC ST. 000 XXXXXXXXX XXXX XXXXX 0000 XXXXXXXXXX XX 00000
XXXXXXXX
CareOne at Xxxxxxx Xxx 000 Xxx Xxxxxxxxx Avenue 2 Green Perth Xxxxx XX 00000
Xxxx Xxxxxx Hospital 0000 Xxxxx Xxxxxxx Xxxx Xxxx Xxxxxxxx Xxxxxxx Xxx Xx 00000
Catawba Hospital XX Xxx 000 Attn: Accounts Xxxxxxx XX 00000
Payable
CAYUGA MEDICAL CENTER DIRECTOR OF MEDICAL RECORDS 000 XXXXX XXXXX XXXXXX XX 00000
Cayuga Radiology 000 Xxxxx Xxxxx Xxxxxx XX 00000
Children's Hospital 000 Xxxxx Xxxx Xxx Xxxxxxx XX 00000
The Chambersburg Hospital 000 Xxxxx Xxxxxxx Xxxxxx Xxxxxxxxxxxx XX 00000
Children's Hospital of Omaha 0000 Xxxxx Xxxxxx Xxxxx XX 00000
Christus St. Xxxxxxx Xxxxxxx 0000 Xxxxxxx Xxxxx Xxxxxxxxxx XX 00000
XXXX CMI-Craig Med Assoc-UPMC 0000 XXXXXX XXX XXXXX 000 Xxxxxxxxxx XX 00000
Customer Name Address 1 Address 2 City St Zip
---------------------------------------- ---------------------------- ---------------- ------------ -- ----------
Clarian Health Partners - Radiology X.X. Xxx 0000 Xxxxxxxxxxxx XX 00000-0000
UPMC CMI - Arthritis and Internal 0000 0XX XXXXXX 0XX XXXXX XXXXXXXXXX XX 00000
Medicine
UPMC CMI - Bedford OBGYN Associates 000 XXXXXXXX XXXXX XXXXX 0 XXXXXXX XX 00000
UPMC CMI - Cardiology Specialists 0000 XXXXXX XXXXXX XXXXX 0000 XXXXXXXXXX XX 00000
UPMC CMI - Diagnostic Medical Associates 000 XXXXX XXXXXX XXXXX XXXXX XXXXXXXXXX XX 00000
UPMC CMI - Xxxxxx X. Xxxxxxx, MD and 0000 XXXXXXX XXXXXX XXXXXXXXXX XX 00000
Associates
UPMC CMI - Family Medicine Xxxxxxxxx Twp 000 Xxxxxxx Xxxxx Xxxxxxxxx XX 00000
UPMC CMI - Gold, Xxxxxx And Associates 0000 XXXXXXXXXX XXXX 000 XXXXXXXXX Xxxxxxxxx XX 00000
BUSINESS PARK Township
UPMC CMI - Horizon Infectious Disease 000 XXXXX XXXX XX XXXXXXXXXX XX 00000
UPMC CMI - Horizon Neurology 000 XXXXXXXXXX XXXXX XXXXXXXXX XX 00000
UPMC CMI - Horizon Endocrinology 000 XXXXXXXXXX XXXXX XXXXXXXXX XX 00000
UPMC CMI - Horizon Rheumatology 00 X. Xxxxxxx Xxxxxx Xxxxxxxxxx XX 00000
UPMC CMI - John, Chantz, and Xxxxxxxxxx 000 XXXXXXXXX XX XXXXX 000 XXXXXXXXXX XX 00000
UPMC CMI - Latrobe Minimally Invasive 000 XXXXXXXX XXX XXXXX 000 XXXXXXX XX 00000
Thoracic Surgery
UPMC CMI-Lesnock and Assoc 000 XXXX XXXX XXXXXX XXXXXXXXXX XX 00000
UPMC CMI - Xxxxx Xxxxxxxxxx MD 0000 XXXXXXXXXXX XXXX XXXXXXXXXX XX 00000
UPMC CMI - Ophthalmic Specialists 0000 Xxxxxx Xxxxx Xxxxx 0X XXXXXX XXXX XX 00000
Customer Name Address 1 Address 2 City St Zip
--------------------------------------- ------------------------------ ----------------- -------------- -- -----
UPMC CMI - Ophthalmic Consultants 0000 XXXXXX XXXXX, XXXXX 0X XXXXXX XXXX XX 00000
UPMC CMI - PGH OB-GYN Associates 0000 XXXXXX XXX XXX XXXXXXXXXX XX 00000
UPMC CMI - Primary Care East 0000 XXXXXXX XXX WHITE OAK MALL WHITE OAK PA 15131
UPMC CMI - Primecare Medical Associates 000-000 XXXXXXXX XXXX XXXXXXXXXX XX 00000
UPMC CMI - Russellton Medical Group 0000 XXXXXX XXX XXX XXXXXXXXXX XX 00000
UPMC CMI - SMA KANN HARRIS 000 XXXXX XXXXX XX XXXXX 000 XXXXXXXXXX XX 00000
XXXX XXX - Xxxxxx, Xxxxxxxx, Xxxxx, XXXXX 000X - UNIVERSITY CENTER 000 XXXXXX XXXXXX XXXXXXXXXX XX 00000
Schmeitz and Associates
UPMC CMI - Suburban East Medical Center 0000 XXXXXXX XXXX XXX XXXXXXXXXX XX 00000
UPMC CMI - UFPA Kittanning 000 XXXXXXXX XXXXX XXXXX 000 XXXXXXXXXX XX 00000
UPMC CMI - University Comprehensive 0000 XXXXXXX XXX XXXXXXXXXX XX 00000
Medical Associates
_ UPMC CMI - University General Medical 000 X. XXXXX XXX XXXXX 000 XXXXXXXXXX XX 00000
Associates
UPMC CMI - Womens Health Assoc in OBGYN XXX XXXXXXXX XXXXX XXXXX 000 XXXXXXXXX XX 00000
Coastal - Internal Medicine & Cardio 000 Xxxxxx Xxxx Xxx Xxxx XX 00000
Columbia Medical Practice 0000 Xxxxx Xxxxx Xxxxx Xxxxx 000 Xxxxxxxx XX 00000
COMPREHENSIVE HEART CENTER 000 XXXXXX XXXXXX XXXXX 000 XXXXXXXXXX XX 00000
Ailina - Xxxx Rapids 0000 Xxxxxxxxxx Xxxxx Xxxx Xxxxxx XX 00000
Customer Name Address 1 Address 2 City St Zip
-------------------------------------- ----------------------------- ------------------ ------------- -- ----------
Xxxxxx Health Systems 0 Xxxxxx Xxxxx Xxxxxx XX 00000
Xxxxx Xxxxxxx - Dept. of Surgery Administrator - Dept. Surgery 0000 Xxxx Xxx. - XXX XXXX XX 00000
Box 95
THE CORVALLIS CLINIC 0000 XX Xxxxxxxxx Xxxxxxxxx, XX 00000
Drive
Allina Clinics - Cottage Grove 0000 Xxxx Xxxxx Xxxxxxx Xx. X Xxxxxxx Xxxxx XX 00000
Cross Timbers Community Health Center 0000 XXXX XXXXXXX XX XXXX XX 00000
Cypress Fairbanks Medical Center 00000 Xxxxxxxxxx Xxxxx Xxxxxxx XX 00000
Delaware Cardiovascular Associates 000 Xxxxx Xxxx, Xxxxx 0X Xxxxxxxxxx XX 00000
_ Delaware Neurosurgical Group 0000 Xxxxxxxx-Xxxxxxx Xxxx Xxxxx 000 Xxxxxx XX 00000
UPMC Department of Orthopaedic Surgery 0000 0xx Xxxxxx Xxxxx 0000 Xxxxxxxxxx XX 00000
Des Moines University Clinic 0000 Xxxxx Xxx Xxx Xxxxxx XX 00000
Division of Gastroenterology Mezzanine Level, C-Wing-PUH 000 Xxxxxxx Xxxxxx Xxxxxxxxxx XX 00000
Division of Oncology Suny @ Stonybrook T-17, HSC, Rm 000 Xxxxx Xxxxx XX 00000-0000
THE DOCTORS CLINIC 0000 XXXXXXX XXX Xxxxxxxxx XX 00000
Dupont Hospital 0000 Xxxx Xxxxxx Xxxx Xx. Xxxxx XX 00000
East Houston Regional Medical 00000 Xxxx Xxxxxxx Xxxxxxx XX 00000
Eclipsys El Camino Hospital 0000 Xxxxx Xxxx Xxxxxxxx Xxxx XX 00000
Allina Medical Clinic-Edina 0000 Xxxxxx Xxx. Xxxxx Xxxxx XX 00000
UPMC - Xxxxxx Xxxxx Practice 0000 Xxxxxxxxxxx Xxxx Xxxxxxxxxx XX 00000
Customer Name Address 1 Address 2 City St Zip
--------------------------------------- ------------------------------ --------------------- ------------ -- -----
Englewood Community Hospital Medical Records Department 000 Xxxxxxx Xxxx. Xxxxxxxxx XX 00000
Essex Hand Surgery 000 Xxxxxxxxx Xxxxx Xxxx Xxxxxx XX 00000
Fairview Univ. Medical Center 000 Xxxxxxxx Xx. XX XXX 000 Xxxxxxxxxxx XX 00000
Family Health Center - Bloomfield 0000 Xxxxxx Xxxxxx Xxxxxxxxxx XX 00000
Family Health Center 0000 Xxxxxx Xxxxxx Xxxxxxxxxx XX 00000
FORBES REGIONAL HOSPITAL 0000 XXXXXXXX XXXX XXXXXXXXXXX XX 00000
FORBES REGIONAL HOSPITAL MR Medical Records Department 0000 Xxxxxxxx Xxxx Xxxxxxxxxxx XX 00000
Forbes Regional Hospital - Pain Mgmnt Ambulatory Care Unit 0000 Xxxxxxxx Xxxx Xxxxxxxxxxx XX 00000
Forest City Open MRI Rockford Radiology Associates 0000 Xxxxx Xxxxx Xxx, Xxxxxxxx XX 00000
Suite 1
Alllina Clinics - Forest Lake 0000 Xxxxx Xxxx Xx. Xxxxxx Xxxx XX 00000
FPL-WELL Health Center 0000 Xxxxx Xxx Xxxxx Xxxxxxx Xxxxxxx XX 00000
Community Hospital of Los Gatos 000 Xxxxxxx Xxxx Xxx Xxxxx XX 00000
Xxxxxx Medical Center 8th and Xxxxxx Xxxxxxxxxxxx XX 00000
Xxxxxxx Med Assoc-UPMC 0000 X Xxxxxxxx Xxx, Xxxxx 000 Xxxxxxxxxx XX 00000
GOOD SAMARITAN HOSPITAL 0000 XXXXXXX XXXXXXX XXXX XXXXX XX 00000
Mercy Hospital Grayling 0000 X Xxxxxxxx Xxx Xxxxxxxx XX 00000
Greater Pittsburgh Medical Associates - 0000 Xxxxx 0 Xxxx Xxxxxxx Xxxx XX 00000
UPMC
Customer Name Address 1 Address 2 City St Zip
------------------------------- --------------------------- ----------------------- ------------ -- ----------
Hahnemann University Hospital Broad and Vine Streets Mail Stop 511 Philadelphia PA 19102
Hamden Surgery Center, LLC 0000 Xxxxxxx Xxx, Xxxxx 000 Xxxxxx XX 00000
Hematology Oncology Associates UPMC Shadyside Place 000 X. Xxxxx Xxx, Xxxxxxxxxx XX 00000
Suite 110
_ HEALTH FIRST, INC (HRMC PAIN) 0000 XXXXXXX XXXXXX, XX XXXX XXX XX 00000
HEALTH FIRST, INC (CCH) Transcription Manager 000 X. XXXXX XXXXX XXXX XXXXX XXXXX XX 00000-0000
HEALTH FIRST, INC (HRMC) 000 X. XXXXX XXXXX XXXX XXXXX XXXXX XX 00000-0000
HEALTH FIRST,INC (HRMC CARDIO) 0000 XXXXX XXXXXXX XXXXXX XXXXXXXXX XX 00000
HEALTH FIRST, INC (PBCH) 000 X. XXXXX XXXXX XXXX XXXXX XXXXX XX 00000-0000
HEALTH FIRST, INC (PBCH SLEEP) 0000 Xxxxxxx Xx. Xxxxx 000 Xxxx Xxx XX 00000
HOA, Xxxxxx Xxxxxx Pavillion UPMC Shadyside Place 000 X. Xxxxx Xxx, Xxxxxxxxxx XX 00000
Suite 110
Xxxxx Xxxxxxx, MD 00 Xxxx 00xx Xxxxxx Xxx Xxxx XX 00000
Holy Cross Hospital 0000 Xxxxxx Xxxx Xxxx Xxxxxxxxxxxx XX 00000-0000
UPMC Horizon 000 Xxxxxxxx Xxxxx Xxxxxxx XX 00000
Xxxxx Medical Clinic XX Xxx 000 Xxxxx XX 00000
HUGULEY MEMORIAL MEDICAL (Cardio Pulmonary) X.X Xxx 0000 Xxxxx Xxxxx XX 00000
XXXXXXX MEMORIAL MEDICAL CENTER Accounts Payable P. O. Xxx 0000 Xxxxx Xxxxx XX 00000
Xxxxxx X. Xxxxxxx, MD, PC 0000 Xxxxxx Xxx Xxxxx 000 Xxxxxxxxxx XX 00000
Customer Name Address 1 Address 2 City St Zip
----------------------------------------- ------------------------- ----------------- ----------- -- ----------
IDAHO PEDIATRIC GASTROENTEROLOGY 000 X XXXXX XX XXXXX 000 XXXXX XX 00000
Idaho Pediatric Gastroenterology 000 X. XXXXX, XXXXX 000 Xxxxx XX 00000
- Independent Medical Record Reviews 00 Xxxxxxxxxx Xxxx Xxxxxxxx XX 00000
Inglemoor Care Center 000 X. Xxxxxxxxxx Xxx. Xxxxxxxxxx XX 00000
Integris Grove General Hospital 0000 Xxxxx Xxxx Xxxxx XX 00000
Allina Clinics - Internal Medicine 000 X. Xxxxxx Xxx. Xxxxx 000 Xx. Xxxx XX 00000
Specialties
Internal Medicine Specialists - UPMC 0000 Xxxxxxxx Xxxxx Xxxxxxxxx XX 00000
Allina Clinic - Isles 0000 Xxxxxxxx Xxx. Xxxxxxxxxxx XX 00000
Xxx Xxxxxxxx Childrens Hospital 0000 Xxxxx Xxxxxx Xxxxxxxxx XX 00000
XXXXXXXX MEMORIAL HOSPITAL 000 XXXXX XXXXXX, XX XXXXXXXX XX 00000
Jupiter Medical Center 0000 Xxxxx Xxx Xxxxx Xxxxxxx Xxxxxxx XX 00000-0000
Keokuk Area Hospital 0000 Xxxxxx Xxxxxx Xxxxxx XX 00000
UPMC Keystone Primary Care 0000 Xxxxxxxx Xxxx Xxxxx 000 Xxxxxxxxxxx XX 00000
Kokales Xxxxxxx March and Associates-UPMC 000 Xxxxxx Xxxxxx 0xx Xxxxx Xxxxxxxxxx XX 00000
UPMC CMI Xx. Xxxx 0000 Xxxxxxxxx Xxxx Xxxxx 000 Xxxxxxx XX 00000
UPMC Xxx Regional Xxxxxxx Xxxxxxx Xxxxxx Xxxxxx Xxxxx 0xx Xxxxx 000 Xxxxxx Xx Xxxxxxxxx XX 00000
LIN Practice 000 0xx Xxxxxx Xxxxxxxxxx XX 00000
LSU Health Care Network 0000 Xxxxxxx Xxxxxx Xxxxx 0X0 Xxx Xxxxxxx XX 00000
Customer Name Address 1 Address 2 City St Zip
-------------------------------------- -------------------------- --------------------- -------------- -- -----
Lutheran Hospital Records Mgmt 0000 Xxxx Xxxxxxxxx Xxxx Xxxxx XX 00000
Blvd.
Manville Foot & Ankle Care 000 X. Xxxx Xx. Xxxxxxxx XX 00000
XxXxxx and Associates 000 Xxxxx Xxxxx Xxxx 0000 Xxx Xxxxxxx XX 00000
UPMC McKeesport 0000 Xxxxx Xxxxxx XxXxxxxxxx XX 00000
" Memorial Division of Breast Oncology 0000 X 00xx Xxxxxx Xxxxx 000 Xxxxxxxxx XX 00000
" Memorial Healthscare System Support Purchase Order No. 350759 X.X. Xxx 000000 Xxxxxxxx Xxxxx XX 00000
Serv.
-" Memorial Regional Hospital 0000 Xxxxxxx Xxxxxx Xxxxxxxxx XX 00000
Mercy Hospital 000 Xxxx Xxxxxx Xx. Xxxx Xxxx XX 00000
MERITCARE HOSPITAL TRANSCRIPTION - Route 373 000 0xx Xx X. Xxxxx XX 00000
Meriter Hospital 000 Xxxxx Xxxx Xxxxxx Xxxxxxx XX 00000
MERITER WOMANCARE CLINIC 00 X. Xxxx Xxxxxx. Xxxxxxx XX 00000
Mercy Hospital - Miami 0000 Xxxxx Xxxxx Xxxxxx Xxxxx XX 00000
- Metropolitan Medical Associates 0000 Xxxx Xxxxx Xxxx. Xxxxxxx Xxxxxx Xxxx., Xxxxxxxxx XX 00000
3rd Fl
MIAMI CHILDREN'S HOSPITAL 0000 XXXXXXXXX 00XX XXXXXX XXXXX XX 00000
UPMC Micchia 000 Xxxxxxx Xxxxxx Xxxxx 00000 Xxxxxxxxxx XX 00000
Mid-Atlantic Nephrology Associates, PA 0000 Xxxxxxx Xxxxxx Xxxx Xxxxx 000 Xxxxxxxxx XX 00000
Monroeville Surgery Center 000 Xxxxxxxxx Xxxxx Xxxxxxxxxxx XX 00000
Xxxxxxxxx General Hospital 000 Xxxx Xxxxxx Xxxxxxx XX 00000
Customer Name Address 1 Address 2 City St Zip
------------------------------- ------------------------------ ----------------- --------------- -- ----------
Xxxxxxx Xxxxx Rad 0000 Xxxxx Xxxxxx Xxxxxxx XX 00000
Medical Univ of South Carolina 000 Xxxxxx Xxx. XX Xxx 000000 Xxxxxxxxxx XX 00000
UPMC Natrona Heights 0000 Xxxxxxx Xxxx Xxxxx 0000 Xxxxxxx Xxxxxxx XX 00000
' THE NEBRASKA MEDICAL CENTER 989100 NEBRASKA XXXXXXX XXXXXX XXXXX XX 00000-0000
Northeast Surgical Care 0000 Xxxxxxxx Xxxxxx Xxxxxxxxx XX 00000
Allina - New Ulm Medical Center 0000 Xxxxx Xxxxx Xxxxxx X.X. Xxx 000 Xxx Xxx XX 00000
New York Orthopedic Hospital 000 Xxxx 000xx Xxxxxx Xx XX-0000 Xxx Xxxx XX 00000
Allina Medical Clinic- 000 Xxxxxxxx Xxxx Xxxxxxx Xxxx Xxxx Xxxxxxxxxxx XX 00000
Xxxxxxxxx Xxxx #000 XX 00000
NORTHERN WESTCHESTER HOSP. 000 Xxxx Xxxx Xxxxxx Xxxxx Xxxxx XX 00000
Northern Medical Associates 0000 Xxxxxxx Xxxxx, Xxxxx 000 Xxxxxxxxx XX 00000
North Park Ophthalmology 0000 Xxxxxxxxx Xxxxx Xxxxx 000 Xxxxxxxxxx XX 00000
North Suburban Cardiovascular 0000 XXXXXXXX XXXX XXXXXXX XXXXX, XXXXXXXXXX XX 00000
Associates - UPMC SUITE 201
November - Rock OB/GYN 00000 Xxxxx Xxxxxxx Xxxxx 0000 Xxxxxxxxx XX 00000
Associates - UPMC
Columbia University 0000 XXXXXXXX XXXX 000X XXX XXXX XX 00000
Oncology Hematology Association Accounts Payable XX XXX 000000 Xxxxxxx XX 00000
Orange Park Medical Center 0000 Xxxxxxxx Xxxxxx Xxxxxx Xxxx, XX 00000
OREGON HEALTH SCIENCES UNIV. 0000 X.X. Xxx Xxxxxxx Xxxx Xx. Mail Code OP 17A Xxxxxxxx, XX 00000-0000
Page Hospital X.X. Xxx 0000 Xxxx XX 00000
Customer Name Address 1 Address 2 City St Zip
------------------------------- ------------------------------ ----------------- --------------- -- ----------
Palmetto Health Baptist -
Xxxxxx 000 Xxxxxxxxx Xxxxx Xxxxxx XX 00000
Palmetto Health Alliance XX XXX 000000 Xxxxxxxx XX 00000-0000
Palmetto Health Baptist Xxxxxx xx Xxxxxx Xxxxxx Xxxxxxxx XX 00000
Palomar Pomerado Health 000 X. Xxxxxx Xxxxxxx Xxxxxxxxx XX 00000
PARKRIDGE MEDICAL CENTER 0000 XXXXXXXX XXXXXX XXXXXXXXXXX XX 00000
University of Pittsburgh Cancer 0000 Xxxxxx Xxx Xxxxx Xxxxx, XXXXXXXXXX XX 00000
Institute West Wing
PLASTIC SURGERY ASSOCIATES, PC 0000 Xxxxx Xxxxxx Xxxx XxXxxx XX 00000
Plaza Surgical Center 0000 X. Xxxxxx Xxx Xxxxx 000 Xxxxxx XX 00000
PMRx 0000 Xxxxxxxx Xxxx Xxxxx 000 Xxxxxxxxxx XX 00000
UPMC Presbyterian 0000 Xxxxxx Xxxxx Xxxxxxxxxx XX 00000
UPMC Presbyterian 000 Xxxxxxx Xxxxxx 0X-XXX Xxxxxxxxxx XX 00000
Cardiovascular Services
Parkway Regional Medical Center 000 X.X. 000xx Xxxxxx Xxxxx Xxxxx XX 00000
Beach
Xxxxxxx Hospital 0000 X. Xxxxxxxxx Xxxxxx Xxxxxx XX 00000
Providence Alaska Medical Cent 0000 Xxxxxxxxxx Xx Xxxxxxxxx XX 00000
QuadMed LLC 000 Xxxxx 000xx Xxxxxx Xxxx Xxxxx XX 00000
Rapid City Medical Center 0000 Xx Xxxxxxxx Xxxx Xxxxx Xxxx XX 00000
Raritan Bay Medical Center Transcription Department 000 Xxx Xxxxxxxxx Xxxxx Xxxxx XX 00000-0000
Avenue
Customer Name Address 1 Address 2 City St Zip
---------------------------------- ------------------------------ ------------------- ------------ -- ------
Raritan Foot & Ankle Care 00 X. Xxxxxxxx Xx. Xxxxxxx XX 00000
Riverland Medical Group XX XXX 000 _ Xxxxxxxx XX 00000
Riverside Medical Center 000 Xxxxx Xxxx Xxxxxx Xxxxxxxx XX 00000
Xxxxxxxxx Hematology and Oncology X.X. Xxx 0000 Xxxxxx XX 00000
R. Xxxx Xxxxxx, MD 00 Xxx Xxxxxx Xxxxxxx Xxxx Xxxxxxxxx XX 00000
The Hospital of Saint Raphael Radiation Oncology Cancer Ctr 0000 Xxxxxx Xxxxxx Xxx Xxxxx XX 00000
' THE HOSPITAL OF SAINT RAPHAEL 0000 XXXXXX XXXXXX XXX XXXXX XX 00000
Samaritan Hospital 000 Xxxx Xxxxxxx Xxxx Xxxxx Xxxx XX 00000
San Xxxxx Regional Medical 0000 Xxxxx Xxxxxx Xx Xxx Xxxxx XX 00000
Ear, Nose, and Throat Associates 0000 Xxxxxxxxx Xxxxxx Xxxxxxxx XX 00000
of Savannah
Xxxxxxx X. Xxxxxxx, M.D. 0000 Xxxxxx Xxxxxx Xxxxx 0 Xxxxxx XX 00000
S.E. MISSOURI MENTAL HEALTH CENTER 0000 Xxxx Xxxxxxxx Xxxxxxxx Xxxxxx Xxxxxxxxxx XX 00000
UPMC Presby - Semper Care 0000 Xxxxxx Xxxxx Xxxxxxxxxx XX 00000
UPMC Shadyside - Neurodiapnostic UPMC Health System X.X. Xxx 00000 Xxxxxxxxxx XX 00000
UPMC Shadyside 0000 Xxxxxx Xxx. Xxxxxxxxxx XX 00000
UPMC Shadyside Radiation Oncology UPMC Health System X.X. Xxx 00000; PO# Xxxxxxxxxx XX 00000
1050724
Allina Medical Clinic -Shakopee 0000 Xx. Xxxxxxx Xxx. Xxxxx 000 Xxxxxxxx XX 00000
New London Cancer Center, Inc. 000 Xxxx Xxxxxx Xxx Xxxxxx XX 00000
Customer Name Address 1 Address 2 City St Zip
---------------------------------- ------------------------------ ------------------- ------------ -- ----------
Sleep Clinic of San Francisco 0000 Xxxxx Xxxxxx Xxxxx 000 Xxx Xxxxxxxx XX 00000
SMG Bent-UPMC 0000 X Xxxxxxxx Xxx, Xxxxx 000 Xxxxxxxxxx XX 00000
St. Marys Mercy Medical Center 000 Xxxxxxxxx XX Xxxxx Xxxxxx XX 00000
UPMC South Side Cardiology UPMC South Side Hospital 0000 Xxxx Xx Xxxxxxxxxx XX 00000
' Spalding Rehabilitation Hospital 000 Xxxxxxx Xxxxxx Xxxxxx XX 00000
St Xxxxxxx Hospital Columbus GA XX Xxx 0000 0000 Xxxxxxxxxx Xxxxxxxx XX 00000
Expressway
ST. Xxxxxx Hospital 000 Xxxxxxxx Xx. Xxxxx XX 00000
St Xxxxxx Hospital 00xx Xx. xxx Xxxxxx Xxx. Xxxxxxxxxxxx XX 00000
St. Xxxxxxxxx Hospital 0000 Xxxxxxx Xx. Xxxxx XX 00000
St. Xxxxxxxxx Medical Center 000 X. 00xx Xxxxxx Xxxxxxxxx XX 00000
Stamford MFM Associates Shelburne Rd. @ Xxxx Xxxxx Xx. Xxxxxxxxx Xxxx Xxxxxxxx XX 00000
STAMFORD MFM XX. XXXXX 000 XXXX XXXXX XXXXXX XXXXX X - 00 XXXXXXXX XX 00000
The Stamford Hospital Stamford Hospital XX Xxx 0000 Xxxxxxxx XX 00000
Stamford Surgical Center 00 Xxxxxxxxxx Xxxx Xxxxx X.X. Xxx 0000 Xxxxxxxx XX 00000
Stamford Health System - Radiology Shelboume Rd. at West Broad XX Xxx 0000 Xxxxxxxx XX 00000-0000
Stillwater Heart Center 0000 X. 0xx Xxxxx 000 Xxxxxxxxxx XX 00000
UPMC Health System - St. Xxxxxxxx PO # 925589 XX Xxx 00000 Xxxxxxxxxx XX 00000
StoneyBrook Division of Oncology X-00, XXX, Xxxx 000 Xxxxx Xxxxx XX 00000
Customer Name Address 1 Address 2 City St Zip
------------------------------- ------------------------------ ---------------------- -------------- -- ----------
Summit Medical Group Health Information Management 000 Xxxxxx Xxxxxx Xxxxxx XX 00000
Surgical Specialists of Northem 000 Xxx Xxxx Xxxx - Xxxxx 000 Xxxxxxx XX 00000
New Jersey
Southwest Florida Regional 00000 Xxxxxxx Xxxx Xxxxx XX 00000
Med Ctr
' Swedish Medical Center 000 Xxxx Xxxxxxx Xxxxxx c% Finance Dpt-Xxxxx Xxxxxxxxx XX 00000
Cochrane
UPMC Xxxxxxxxxx Xxx Xxxxxxx Xxxxxx, Xxxxx 000 0000 Xxxxxxx Xxxxxxxxx Xxxxxxxxxx XX 00000
' XXXXXXXX HOSPITAL 0000 XXXXXXX XX XXXX XX 00000
Three Rivers Orthopedic Assoc- 000 XX. XXXXXXXX MED ARTS BLDG SUITE 1040 PITTSBURGH PA 15219
UPMC
' THUNDERBIRD SAMARITAN MEDICAL 0000 Xxxx Xxxxxxxxxxx Xxxx Xxxxxxxx XX 00000
TRINITAS HOSPITAL 225 XXXXXXXXXX ST ELIZABETH NJ 07207
Tri-State Neurosurgical Assoc Presbyterian University Hsptl Department of Pittsburgh PA 15213
Neurosurgery
Tri-State Orthopaedics 5900 Corporate Drive Suite 200 Pittsburgh PA 15237
Truman Medical Center 2301 Holmes Kansas City MO 64108
-Pathology
Truman Hospital Hill 7900 Lee's Summit Rd. Kansas Mo 64139
Tuomey Health Care System 000 Xxxxx Xxxxxxxxxx Xxxxxx Xxxxxx XX 00000
University of California Irvine 000 Xxx Xxxx Xxxxx Xxxx 00 XX 000 Xxxxxx XX 00000
Medical Center
University of Connecticut X-0000 Xxxxxx XX 00000-0000
Universal Mobile Services, Inc. 000 Xxxx Xxxx Xxxx Xxxx XX 00000
Customer Name Address 1 Address 2 City St Zip
------------------------------- ------------------------------ ---------------------- -------------- -- ----------
United Medical Associates 000 Xxxxx Xxxxxx Xxxxxxx Xxxx XX 00000
University of Cincinnati, Div. 000 Xxxxxx Xxxxx Xxx XX 0000 Xxxxxxxxxx XX 00000
of Cardiology
University Family Medical 0000 Xxxxxxx Xxxx., Xxxxx 000 Xxxxxxxxxx XX 00000
Associates
University of Medicine and 000 Xxxxx Xxxxxx Xxxxxx Division of Urology, Xxxxxx XX 00000
Dentistry of New Jersey Room G
University of Michigan MEDICAL INFORMATION SERVICES 0000 Xxxxxxx Xx. Xx XXX XXXXX XX 00000-0000
2723
UPMC ENT Specialists Eye and Ear institute 000 Xxxxxxx Xx. Xxxxx Xxxxxxxxxx XX 00000
300
UPMC Presbyterian Radiation 000 Xxxxxxx Xx. Xxxxxxxxxx XX 00000
Oncology
UPMC MEDICAL THORACIC 0000 Xxxxxx Xxx Xxxxx 000 Xxxxxxxxxx XX 00000
ASSOCIATION
UPMC University Family Medical 0000 Xxxxxxxxxx Xxxx Xxxxxxxxxx XX 00000
Associates - Frankstown
Associated Neurologists, UPMC UPMC Passavant Professional BI 0000 Xxxxxxx Xxxx., Xxxxxxxxxx XX 00000
Suite 2116
UPMC Cancer Centers 0000 Xxxxxx Xxxxxx Xxxxxxxxxx XX 00000
UPMC Family Health Center - New 000 00XX XXXXXX XXXXXXXXX XXXX XXX XXXXXXXXXX XX 00000
Kensington
UPMC Petraqlia Primary Care 000 Xxxxxx Xxxxxx Xxxxxxxxxx XX 00000
UPP Department of Neurology - 0000 XXXXXX XXXXXX, XXXXX 000 XXXXXXXXXX XX 00000
Xxxxx
XXX Division of Reproductive 000 Xxxxxx Xxxxxx Xxxxx 0000 Xxxxxxxxxx XX 00000
Endocrinology and
Infertility
UPP Department of Surgery F1272.1 PUH 000 Xxxxxxx Xxxxxx XXXXXXXXXX XX 00000
Customer Name Address 1 Address 2 City St Zip
------------------------------- ------------------------------ ----------------------- ------------- -- ----------
UPP University Internal 0000 XXXXXXX XXX 0000 XXXXXX XXXX XXXXXXXXXX XX 00000
Medicine Specialists
UPP Department of Urology 0000 XXXXX XXX XXXXX 000 XXXXXXXXXX XX 00000
Vanderbilt Center for Child VU Station B 351810 0000 Xxxxxxxxxx Xxxxx Xxxxxxxxx XX 00000-0000
Development
Venango Internal Medicine 0 Xxxxxxxx Xxxxx Xxx Xxxx XX 00000
Associates - UPMC
Wald & Xxxxxxxxxxx-UPMC 0000 X Xxxxxxxx Xxx, Xxxxx 000 Xxxxxxxxxx XX 00000
University of Colorado - Mail Stop F718, P.O. Box 6508 SPO# 0000032295 Xxxxxx XX 00000-0000
Wardenberg
Xxxxx Xxxxxxx-Dept of Medical 000 X 00xx Xx. XXX 000 Xxx Xxxx XX 00000
Genetics
Xxxxx Xxxxxxx - Neurosurgery 000 Xxxx 00xx Xx. Xxx 00 Xxx Xxxx XX 00000
Weill Med. College of Cornell Administrator, Xxxx.Xxxxxxx 0000 Xxxx Xxx. - Xxx 00 Xxx Xxxx XX 00000
University Surg
Xxxxx Xxxxxxx - 000 X 00xx Xx ST-541 - Box 101 Xxx Xxxx XX 00000
Otorhinolaryngology
Xxxxx Xxxxxxx - Dept. of 000 X. 00xx Xx.- Xxx 000 Xxx Xxxx XX 00000
Pediatric Cardiology
Xxxxx Xxxxxxx - Pediatric 000 X. 00xx Xx - Xxx 000 Xxx Xxxx XX 00000
Neurology
Weill Med. College of Cornell 0000 Xxxx Xxxxxx. Xxx 00 Xxx Xxxx XX 00000
Univ. Oral Surq.y
WESTERN PENNSYLVANIA HOSP. CVI ATTN: XXXXXX XXXXXX, MANAGER 0000 XXXXXXXXXX XXX XXXXXXXXXX XX 00000
WESTERN PENNSYLVANIA HOSPITAL ATTN: SHARIF ZYHIER 0000 XXXXXXXXXX XXX XXXXXXXXXX XX 00000
MR
Western PA Hand and Trauma 0000 Xxxxxxxxx Xxxxx Xxxxxxx XX 00000
Center
XXXXXX MEMORIAL HOSPITAL Cardiopulmonary Department 00-00 Xxxxxxxx Xx. Xxxxxxx Xxxx, XX 00000
XXXXXX MEMORIAL HOSPITAL 00-00 XXXXXXXX XX. XXXXXXX XXXX XX 00000
Customer Name Address 1 Address 2 City St Zip
------------------------------- ------------------------------ ----------------------- ------------- -- ----------
XXXXXXX HOSPITAL HEALTH INFORMATION MANAGEMENT 000 XXXXXXXXX XXX. XXXXXXXXXX XX 00000-0000
Wisconsin Heart Cardiac And 000 XXXXX XXXX XXXXXX XXXXXXX XX 00000
Vascular Specialists
Allina Clinics - Woodbury 0000 Xxxxxx Xxxxx Xx. Xxxxxxxx XX 00000
Allina Medical Clinic -Woodlake 000 Xxxx 00xx Xxxxxx Xxxxxxxxx XX 00000
WorkNet- UPMC McKeesport 0000 Xxxxx Xxx. XxXxxxxxxx XX 00000
Work Partners 0000 Xxxxxx Xxxx, 0xx xxxxx 000 Xxxx Xxxxxxxxxx XX 00000
WPAHS The Institute for Pain 0000 Xxxxxxx Xxx Xxxxxxxxxx XX 00000
Medicine
UPMC - Western Psychiatric 0000 X'Xxxx Xxxxxx Xxxxxxxxxx XX 00000
Yakima Ambulatory Surgical 000 Xxxxx Xxxxxxxx Xxx Xxxxx 000 Xxxxxx XX 00000-0000
Center
Yale University-Cardiothoracic P.O. Box 208062 VIP# 1230976 Xxx Xxxxx XX 00000
Surgery
YALE UNIVERSITY HEMATOLOGY 000 Xxxxxxx Xxxxxx, 0xx Xxxxx VIP 1280448 XXX XXXXX XX 00000-0000
YALE MEDICAL ONCOLOGY DEPT PO BOX 208032 VIP 1320091 XXX XXXXX XX 00000-0000
Yale New Haven Hospital Medical 00 Xxxx Xxxxxx Med. Records- WP108 - Xxx Xxxxx XX 00000
PO#13931
Yale School of Medicine, Dept 000 Xxxxx Xxxxxx VIP 1232049 Xxx Xxxxx XX 00000
of OB/GYN
YALE MEDICAL ONCOLOGY-STEM CELL PO BOX 208032 VIP 1320093 XXX XXXXX XX 00000-0000
Yale Pediatrics Cardiology 000 Xxxxx Xxxxxx XX XXX 000000 Xxx Xxxxx XX 00000-0000
Yale School of Medicine P.O. Box 208062 VIP 1266506 Xxx Xxxxx XX 00000
Customer Name Address 1 Address 2 City St Zip
------------------------------- ------------------------------ ----------------------- ------------- -- ----------
YALE NEW HAVEN HOSPITAL DIAGNOSTIC IMAGING- PO# 189649 00 XXXX XXXXXX XXX XXXXX XX 00000
Bedford Regional Urology, PC XX Xxx 000 Xxxxxxx XX 00000
* These facilities have equipment that is owned by Avicis that is greater
than $10,000.
** The combined organization of Allina Clinics has greater than $10,000 in
equipment.
*** The combined organization of Memorial Hospitals has greater than $10,000 in
equipment.
Schedule I to
Supplement No. 1 to the
Guarantee and
Collateral Agreement
JURISDICTION OF FORMATION
Delaware
Schedule I to
Supplement No. 1 to the
Guarantee and
Collateral Agreement
Pledged Securities of the New Subsidiary
CAPITAL STOCK
Number of Number and Class of Percentage of Equity
Issuer Certificate Registered Owner Equity Interests Interests
------ ----------- ---------------- ------------------- --------------------
HealthScribe - Scribes HealthScribe, Inc.
Acquisition, Inc.
HealthScribe India
Private Limited
Schedule I to
Supplement No. 1 to the
Guarantee and
Collateral Agreement
DEBT SECURITIES
None.
Schedule I to
Supplement No. 1 to the
Guarantee and
Collateral Agreement
INTELLECTUAL PROPERTY
REGISTERED TRADEMARKS
(WITH INT'L AND U.S. FEDERAL AND
STATE TRADEMARK REGISTRIES) REGISTRATION NO. REGISTRATION DATE REGISTRANT
-------------------------------- -------------------- ----------------- ------------------
HEALTHSCRIBE (AND DESIGN) United States July 24, 2001 HealthScribe, Inc.
PTO Reg. Xx. 0000000
XXXXXXXXXXXX Xxxxxx Xxxxxx PTO March 7, 1995
Reg. No. 1883084
REGISTERED PATENTS
(WITH INT'L AND U.S. REGISTRIES) REGISTRATION NO. REGISTRATION DATE REGISTRANT INVENTOR
-------------------------------- -------------------- ----------------- ------------------ --------
None in the U.S.
REGISTERED COPYRIGHTS
(WITH INT'L AND U.S. FEDERAL AND
STATE TRADEMARK REGISTRIES) REGISTRATION NO. REGISTRATION DATE AUTHOR
----------------------------------- -------------------- ----------------- ------------------
Aggregator Gateway computer program Txu-1-019-200 October 10, 2001 HealthScribe, Inc.
Filemovr computer program Txu-1-019-201 October 10, 2001 HealthScribe, Inc.
HealthScribe Internet Txu-1-019-202 October 10, 2001 HealthScribe, Inc.
Transcription Systems (HITS)
Clear Voice computer program Txu-1-019-203 October 10, 2001 HealthScribe, Inc.
HealthScribe delivery client Txu-1-094-388 September 27, 2001 HealthScribe, Inc.
Report manager computer program Txu-1-094-389 September 27, 2001 HealthScribe, Inc.
HealthScribe delivery engine Txu-1-094-390 September 27, 2001 HealthScribe, Inc.
HealthScribe Database Gateway Txu-1-094-391 September 27, 2001 HealthScribe, Inc.
Software
Team Leader Monitor Txu-1-094-392 September 27, 2001 HealthScribe, Inc.
HealthScribe workflow methodology VA-1-056-559 March 21, 2001 HealthScribe, Inc.
SUPPLEMENT NO. 2, dated as of December
22, 2004, to the Guarantee and
Collateral Agreement, dated as of
November 5, 2004 (the "Guarantee and
Collateral Agreement"), among SPHERIS
HOLDING II, INC., a Delaware corporation
("Holdings"), SPHERIS HOLDING, INC., a
Delaware corporation (the "Borrower"),
each subsidiary of the Borrower listed
on Schedule I thereto (each such
subsidiary individually a "Subsidiary
Guarantor" and collectively, the
"Subsidiary Guarantors"; the Subsidiary
Guarantors, Holdings and the Borrower
are referred to collectively herein as
the "Grantors").
A. Reference is made to the Credit Agreement, dated as of November 5, 2004
(as amended, supplemented or otherwise modified from time to time, the "Credit
Agreement"), among the Borrower, Holdings, the lenders named therein (the
"Lenders"), and JPMorgan Chase Bank, N.A. (formerly known as JPMorgan Chase
Bank), as administrative agent (in such capacity, the "Administrative Agent").
B. Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to such terms in the Credit Agreement or the
Guarantee and Collateral Agreement referred to therein, as applicable.
C. The Grantors have entered into the Guarantee and Collateral Agreement in
order to induce the Lenders to make Loans and the Issuing Bank to issue Letters
of Credit. Section 7.16 of the Guarantee and Collateral Agreement provides that
additional Domestic Subsidiaries of the Loan Parties may become Subsidiary
Guarantors and Grantors under the Guarantee and Collateral Agreement by
execution and delivery of an instrument in the form of this Supplement. The
undersigned Subsidiary (the "New Subsidiary") is executing this Supplement in
accordance with the requirements of the Credit Agreement to become a Subsidiary
Guarantor and a Grantor under the Guarantee and Collateral Agreement in order to
induce the Lenders to make additional Loans and the Issuing Bank to issue
additional Letters of Credit and as consideration for Loans previously made and
Letters of Credit previously issued.
Accordingly, the New Subsidiary agrees as follows:
SECTION 1. In accordance with Section 7.16 of the Guarantee and Collateral
Agreement, the New Subsidiary by its signature below becomes a Grantor and
Subsidiary Guarantor under the Guarantee and Collateral Agreement with the same
force and effect as if originally named therein as a Grantor and Subsidiary
Guarantor and the New Subsidiary hereby (a) agrees to all the terms and
provisions of the Guarantee and Collateral Agreement applicable to it as a
Grantor and Subsidiary Guarantor thereunder and (b) represents and warrants that
the representations and warranties made by it as a Grantor and Subsidiary
Guarantor thereunder are true and correct in all material respects on and as of
the date hereof. In furtherance of the foregoing, the New Subsidiary, as
security for the payment and performance in full of the
Obligations (as defined in the Guarantee and Collateral Agreement), does hereby
create and grant to the Administrative Agent, its successors and assigns, for
the benefit of the Secured Parties, their successors and assigns, a security
interest in and lien on all of the New Subsidiary's right, title and interest in
and to the Collateral (as defined in the Guarantee and Collateral Agreement) of
the New Subsidiary. Each reference to a "Grantor" or a "Subsidiary Guarantor" in
the Guarantee and Collateral Agreement shall be deemed to include the New
Subsidiary. The Guarantee and Collateral Agreement is hereby incorporated herein
by reference.
SECTION 2. The New Subsidiary represents and warrants to the Administrative
Agent and the other Secured Parties that this Supplement has been duly
authorized, executed and delivered by it and constitutes its legal, valid and
binding obligation, enforceable against it in accordance with its terms.
SECTION 3. This Supplement may be executed in counterparts (and by
different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract. This Supplement shall become effective when the Administrative
Agent shall have received counterparts of this Supplement that bear the
signature of the New Subsidiary. Delivery of an executed signature page to this
Supplement by facsimile transmission shall be as effective as delivery of a
manually signed counterpart of this Supplement.
SECTION 4. The New Subsidiary hereby represents and warrants that (a) set
forth on Schedule I attached hereto is a true and correct schedule of the
location of any and all Collateral of the New Subsidiary and (b) set forth under
its signature hereto, is the true and correct legal name of the New Subsidiary,
its jurisdiction of formation and the location of its chief executive office.
SECTION 5. Except as expressly supplemented hereby, the Guarantee and
Collateral Agreement shall remain in full force and effect.
SECTION 6. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
SECTION 7. In case any one or more of the provisions contained in this
Supplement should be held invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein and in the Guarantee and Collateral Agreement shall not in any way be
affected or impaired thereby (it being understood that the invalidity of a
particular provision in a particular jurisdiction shall not in and of itself
affect the validity of such provision in any other jurisdiction). The parties
hereto shall endeavor in good-faith negotiations to replace the invalid, illegal
or unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.
SECTION 8. All communications and notices hereunder shall be in writing and
given as provided in Section 7.01 of the Guarantee and Collateral Agreement. All
communications and
notices hereunder to the New Subsidiary shall be given to it at the address set
forth under its signature below.
SECTION 9. The New Subsidiary agrees to reimburse the Administrative Agent
for its reasonable out-of-pocket expenses in connection with this Supplement,
including the reasonable fees, other charges and disbursements of counsel for
the Administrative Agent.
IN WITNESS WHEREOF, the New Subsidiary has duly executed this Supplement to
the Guarantee and Collateral Agreement as of the day and year first above
written.
HEALTHSCRIBE, INC.,
By: /s/ Xxxxx X. Xxxxxxxx
------------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: President
---------------------------------
Address: 00000 Xxxxxxxx Xxxxxx, Xxxxx
000 Xxxxxxxx, Xxxxxxxx 00000
Legal Name: HealthScribe, Inc.
Jurisdiction
of Formation: Delaware
Location of Chief
Executive Office: 00000 Xxxxxxxx Xxxxxx,
Xxxxx 000 Xxxxxxxx,
Xxxxxxxx 00000
Schedule I to
Supplement No. 1 to the
Guarantee and
Collateral Agreement
LOCATION OF COLLATERAL
None.
JURISDICTION OF FORMATION
Delaware
Pledged Securities of the New Subsidiary
CAPITAL STOCK
None.
DEBT SECURITIES
Issuer Principal Amount Date of Note Maturity Date
------ ---------------- ---------------- -------------
HealthScribe, Inc. $866,198.00 October 31, 2004
Schedule I to
Supplement No. 1 to the
Guarantee and
Collateral Agreement
INTELLECTUAL PROPERTY
REGISTERED TRADEMARKS
(WITH INT'L AND U.S. FEDERAL AND
STATE TRADEMARK REGISTRIES) REGISTRATION NO. REGISTRATION DATE REGISTRANT
-------------------------------- -------------------- ----------------- -------------------------------
PRACTICE ANYWHERE (AND DESIGN) United States February 5, 2002 Medical Archival Systems, Inc.
PTO Reg. No. 2537211 (transferred to Health-Scribe -
Scribes Acquisition, Inc.)
S SCRIBES ONLINE (AND DESIGN) United States PTO April 17, 2001 Medical Archival Systems, Inc.
Reg. No. 2444223 (transferred to Health-Scribe -
Scribes Acquisition, Inc.)
