EXECUTION COPY
$350,000,000
CREDIT AGREEMENT
among
THE PITTSTON COMPANY,
as Borrower,
CERTAIN OF ITS SUBSIDIARIES,
as Guarantors,
VARIOUS LENDERS,
FLEET NATIONAL BANK,
as Co-Arranger and Documentation Agent,
WACHOVIA BANK, NATIONAL ASSOCIATION,
and
THE BANK OF NOVA SCOTIA,
as Co-Arrangers and Syndication Agents,
and
JPMORGAN CHASE BANK,
as Administrative Agent
Dated as of September 6, 2002
X.X. XXXXXX SECURITIES INC., as
Sole Advisor, Lead Arranger and Bookrunner
TABLE OF CONTENTS
-----------------
ARTICLE I DEFINITIONS, ETC........................................................................................1
Section 1.1 Definitions............................................................................1
Section 1.2 General...............................................................................18
Section 1.3 Other Definitions and Provisions......................................................19
Section 1.4 Accounting Terms......................................................................19
ARTICLE II CREDIT FACILITIES.....................................................................................19
Section 2.1 Amount and Terms of Credit............................................................19
Section 2.2 Procedure for Advances of Revolving Credit Loans......................................20
Section 2.3 Repayment of Loans....................................................................21
Section 2.4 Competitive Bid Loans and Procedure...................................................22
Section 2.5 Termination of Revolving Credit Facilities............................................24
Section 2.6 Commitment Reductions.................................................................24
ARTICLE III LETTER OF CREDIT FACILITY............................................................................25
Section 3.1 L/C Commitment........................................................................25
Section 3.2 Procedure for Issuance of Letters of Credit...........................................26
Section 3.3 Fees and Other Charges................................................................27
Section 3.4 L/C Participations....................................................................28
Section 3.5 Reimbursement Obligation of the Borrower..............................................29
Section 3.6 Obligations Absolute..................................................................30
Section 3.7 Letter of Credit Payments.............................................................30
Section 3.8 Effect of L/C Application.............................................................30
ARTICLE IV GENERAL LOAN PROVISIONS...............................................................................31
Section 4.1 Interest and Utilization Fee..........................................................31
Section 4.2 Conversion and Continuation of Revolving Credit Loans.................................32
Section 4.3 Facility Fee..........................................................................33
Section 4.4 Pro Rata Treatment; Manner of Payment.................................................33
Section 4.5 Crediting of Payments and Proceeds....................................................34
Section 4.6 Adjustments...........................................................................34
Section 4.7 Nature of Obligations of Lenders Regarding Extensions of Credit; Assumption by
the Administrative Agent..............................................................35
Section 4.8 Changed Circumstances.................................................................35
Section 4.9 Indemnity.............................................................................38
Section 4.10 Capital Requirements..................................................................38
Section 4.11 Taxes.................................................................................39
ARTICLE V CLOSING; CONDITIONS OF CLOSING AND BORROWING...........................................................41
Section 5.1 Closing...............................................................................41
Section 5.2 Conditions to Closing.................................................................41
Section 5.3 Conditions to All Extensions of Credit................................................43
ARTICLE VI REPRESENTATIONS AND WARRANTIES........................................................................44
Section 6.1 Representations and Warranties........................................................44
Section 6.2 Accuracy and Completeness of Information..............................................47
Section 6.3 Labor Matters.........................................................................48
Section 6.4 Survival of Representations and Warranties, Etc.......................................48
ARTICLE VII FINANCIAL INFORMATION AND NOTICES....................................................................48
Section 7.1 Financial Statements, Etc.............................................................48
Section 7.2 Notice of Litigation and Other Matters................................................50
ARTICLE VIII AFFIRMATIVE COVENANTS...............................................................................51
Section 8.1 Payment of Taxes, etc.................................................................51
Section 8.2 Maintenance of Insurance..............................................................51
Section 8.3 Preservation of Corporate Existence, etc..............................................51
Section 8.4 Compliance with Laws, etc.............................................................51
Section 8.5 Compliance with ERISA and the Code....................................................51
Section 8.6 Compliance with Contracts, etc........................................................52
Section 8.7 Access to Properties..................................................................52
Section 8.8 Conduct of Business...................................................................52
Section 8.9 Use of Proceeds.......................................................................52
Section 8.10 Additional Guarantors.................................................................52
ARTICLE IX NEGATIVE COVENANTS....................................................................................53
Section 9.1 Financial Covenants...................................................................53
Section 9.2 Limitations on Liens..................................................................53
Section 9.3 Disposition of Debt and Shares of Restricted Subsidiaries; Issuance of Shares
by Restricted Subsidiaries; Consolidation, Merger or Disposition of Assets............55
Section 9.4 Transactions with Affiliates..........................................................55
Section 9.5 Compliance with Regulations T, U and X................................................55
Section 9.6 Hedging Agreements....................................................................56
Section 9.7 ERISA.................................................................................56
Section 9.8 Limitations on Acquisitions...........................................................56
Section 9.9 Sale Leaseback Transactions...........................................................56
Section 9.10 Limitations on Investments............................................................57
ARTICLE X GUARANTY...............................................................................................58
Section 10.1 Guaranty of Payment...................................................................58
Section 10.2 Obligations Unconditional.............................................................58
Section 10.3 Modifications.........................................................................59
Section 10.4 Waiver of Rights......................................................................59
Section 10.5 Reinstatement.........................................................................59
Section 10.6 Remedies..............................................................................60
Section 10.7 Limitation of Guaranty................................................................60
Section 10.8 Termination of Guaranty Upon Divestiture..............................................60
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ARTICLE XI DEFAULT AND REMEDIES..................................................................................60
Section 11.1 Events of Default.....................................................................60
Section 11.2 Remedies..............................................................................63
Section 11.3 Rights and Remedies Cumulative; Non-Waiver; etc.......................................63
ARTICLE XII THE ADMINISTRATIVE AGENT.............................................................................64
Section 12.1 Appointment...........................................................................64
Section 12.2 Delegation of Duties..................................................................64
Section 12.3 Exculpatory Provisions................................................................64
Section 12.4 Reliance by the Administrative Agent..................................................65
Section 12.5 Notice of Default.....................................................................65
Section 12.6 Non-Reliance on the Agents and Other Lenders..........................................65
Section 12.7 Indemnification.......................................................................66
Section 12.8 The Administrative Agent in Its Individual Capacity...................................66
Section 12.9 Resignation of the Administrative Agent; Successor Administrative Agent...............66
Section 12.10 Syndication Agents; Documentation Agent...............................................67
ARTICLE XIII MISCELLANEOUS.......................................................................................67
Section 13.1 Notices...............................................................................67
Section 13.2 Expenses, Indemnity...................................................................68
Section 13.3 GOVERNING LAW.........................................................................69
Section 13.4 Consent to Jurisdiction; Waiver.......................................................69
Section 13.5 WAIVER OF JURY TRIAL..................................................................69
Section 13.6 Reversal of Payments..................................................................70
Section 13.7 Accounting Matters....................................................................70
Section 13.8 Successors and Assigns; Participations; Confidentiality...............................70
Section 13.9 Disclosure of Information; Confidentiality............................................73
Section 13.10 Amendments, Waivers and Consents......................................................74
Section 13.11 Performance of Duties.................................................................74
Section 13.12 All Powers Coupled with Interest......................................................74
Section 13.13 Acknowledgements......................................................................74
Section 13.14 Survival of Indemnities...............................................................75
Section 13.15 Titles and Captions...................................................................75
Section 13.16 Severability of Provisions............................................................75
Section 13.17 Counterparts..........................................................................75
Section 13.18 Binding Effect; Amendment and Restatement; Term of Agreement..........................75
Section 13.19 Inconsistencies with Other Documents; Independent Effect of Covenants.................76
Section 13.20 Integration...........................................................................76
Section 13.21 Judgment Currency.....................................................................76
SCHEDULES
Schedule 1.1(a) - Commitments as of Closing Date
Schedule 1.1(b) - Unrestricted Subsidiaries of the Borrower as of Closing Date
Schedule 6.1.6 - Subsidiaries of the Borrower as of Closing Date
iii
Schedule 9.2 - Liens as of Closing Date
Schedule 13.1 - Notice Addresses for Lenders
EXHIBITS
Exhibit A - Form of Notice of Borrowing
Exhibit B - Form of Notice of Account Designation
Exhibit C - Form of Notice of Prepayment
Exhibit D - Form of Guarantor Joinder Agreement
Exhibit E - Form of Notice of Conversion/Continuation
Exhibit F - Form of Assignment and Assumption
Exhibit G - Form of Exemption Certificate
iv
CREDIT AGREEMENT dated as of September 6, 2002 among THE
PITTSTON COMPANY, a Virginia corporation (the "Borrower"), certain of the
Borrower's Subsidiaries from time to time party hereto (each a "Guarantor," and
together with the Borrower, the "Credit Parties," and each, a "Credit Party"),
the Lenders from time to time party hereto, FLEET NATIONAL BANK, as a
Co-Arranger and Documentation Agent (in such capacity, the "Documentation
Agent"), WACHOVIA BANK, NATIONAL ASSOCIATION and THE BANK OF NOVA SCOTIA, as
Co-Arrangers and Syndication Agents (in such capacity, the "Syndication
Agents"), and JPMORGAN CHASE BANK, as Administrative Agent (in such capacity,
the "Administrative Agent") (all capitalized terms used herein and defined in
Section 1.1 are used herein as therein defined).
STATEMENT OF PURPOSE
WHEREAS, the Borrower is a party to an existing $362,500,000
credit agreement (as amended from time to time, the "Existing Credit
Agreement"), dated as of October 3, 2000 among the Borrower, certain of its
subsidiaries, as guarantors, various lenders and the agents named therein;
WHEREAS, the Borrower intends to refinance, terminate and
replace the Existing Credit Agreement (the "Refinancing"); and
WHEREAS, to facilitate the Refinancing, and to finance its
working capital needs, capital expenditures, acquisitions and for all other
general corporate purposes, the Borrower wishes to establish with the Lenders
credit facilities providing for revolving loans and letters of credit of up to
$350,000,000 in the aggregate maximum principal amount at any time outstanding,
and the Lenders and the Administrative Agent are willing to establish such
credit facilities on the terms and conditions set forth herein;
NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged by the parties hereto,
such parties hereby agree as follows:
ARTICLE I
DEFINITIONS, ETC.
Section 1.1 Definitions.
The following terms when used in this Agreement shall have the meanings
assigned to them below:
"Administrative Agent" means JPMorgan Chase Bank in its
capacity as Administrative Agent hereunder, and any successor thereto
appointed pursuant to Section 12.9.
"Administrative Agent's Office" means the office of the
Administrative Agent specified in or determined in accordance with the
provisions of Section 13.1.3.
"Affiliate" means, with respect to any Person, any other
Person (other than a Subsidiary) which directly or indirectly through
one or more intermediaries, controls, or is controlled by, or is under
common control with, such first Person or any of its Subsidiaries. The
term "control" means the possession, directly or indirectly, of any
power to direct or cause the direction of the management and policies
of a Person, whether through ownership of voting securities, by
contract or otherwise.
"Agents" means the collective reference to the Syndication
Agents, the Documentation Agent and the Administrative Agent.
"Aggregate Commitment" means the Aggregate Revolving A
Commitment and the Aggregate Revolving B Commitment.
"Aggregate Commitment Percentage" means, as to any Lender at
any time, the ratio of (a) the amount of the Commitment of such Lender
to (b) the Aggregate Commitment.
"Aggregate Revolving A Commitment" means the aggregate
Revolving A Commitment of all Revolving A Lenders to make Revolving A
Credit Loans and participate in Revolving A Letters of Credit, as such
amount may be reduced or modified at any time or from time to time
pursuant to the terms hereof. The Aggregate Revolving A Commitment on
the Closing Date shall be $320,000,000.
"Aggregate Revolving B Commitment" means the aggregate
Revolving B Commitment of all Revolving B Lenders to make Revolving B
Credit Loans and participate in Revolving B Letters of Credit, as such
amount may be reduced or modified at any time or from time to time
pursuant to the terms hereof. The Aggregate Revolving B Commitment on
the Closing Date shall be $30,000,000.
"Agreement" means this Credit Agreement, as amended, restated,
supplemented or otherwise modified.
"Alternate Base Rate" means, at any time, for any day, a rate
per annum (rounded upwards, if necessary, to the next 1/100 of 1%)
equal to the greatest of (a) the Prime Rate in effect on such day, (b)
the Base CD Rate in effect on such day plus 1% and (c) the Federal
Funds Rate in effect on such day plus 1/2 of 1%. For purposes hereof:
"Prime Rate" means 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 necessarily
being intended to be the lowest rate of interest charged by JPMorgan
Chase Bank in connection with extensions of credit to debtors); "Base
CD Rate" means the sum of (a) the product of (i) the Three-Month
Secondary CD Rate and (ii) a fraction, the numerator of which is one
and the denominator of which is one minus the CD Reserve Percentage and
(b) the CD Assessment Rate; and "Three-Month Secondary CD Rate" means,
for any day, the secondary market rate for three-month certificates of
deposit reported as being in effect on such day (or, if such day shall
not be a Business Day, the next preceding Business Day) by the Board
through the public information telephone line of the Federal Reserve
Bank of New York (which rate will, under the current practices of the
Board, be published in Federal Reserve Statistical Release H.15(519)
during the week following such day), or, if such rate shall not be so
reported on such day or such next preceding Business Day, the average
of the secondary market quotations for three-month certificates of
deposit of major money center banks in New York City received at
approximately 10:00 A.M., New York City time, on such day (or, if such
day shall not be a Business Day, on the next preceding Business Day) by
JPMorgan Chase Bank from three New York City negotiable certificate of
deposit dealers of recognized standing selected by it. Any change in
the Alternate Base Rate due to a change in the Prime Rate, the
Three-Month Secondary CD Rate or the Federal Funds Rate shall be
effective as of the opening of business on the effective day of such
change in the Prime Rate, the Three-Month Secondary CD Rate or the
Federal Funds Rate, respectively.
"Alternate Base Rate Loan" means any Loan bearing interest at
a rate based upon the Alternate Base Rate as provided in Section 4.1.1.
2
"Applicable Law" means all applicable provisions of
constitutions, laws, statutes, ordinances, rules, treaties,
regulations, permits, licenses, approvals, interpretations and orders
of Governmental Authorities and all orders and decrees of all courts
and arbitrators.
"Applicable LT Rating" means as to each of Moody's and S&P,
its rating of the Borrower's senior, unsecured, long-term,
non-credit-enhanced debt for borrowed money (or of the unsecured
long-term debt of any other Person, the rating of which by Moody's and
S&P is based upon a senior, unsecured, non-credit-enhanced guarantee by
the Borrower).
"Applicable Percentage" means, for purposes of calculating (a)
the interest rate applicable to Offshore Rate Loans under Section
4.1.1; (b) the interest rate applicable to Alternate Base Rate Loans
under Section 4.1.1; (c) the Utilization Fee under Section 4.1.6; or
(d) the Facility Fee under Section 4.3, the applicable percentage set
forth in the following tables opposite the Applicable LT Rating:
------------------------------------------------------------------------------------------------------
Utilization
Offshore Fee with
Pricing Applicable LT Rate Alternate Base Utilization Facility
Level Rating Loans Rate Loans >50% Fee
------------------------------------------------------------------------------------------------------
I A-/A3 or above 0.375% 0.000% 0.125% 0.125%
------------------------------------------------------------------------------------------------------
II BBB+/Baa1 0.600% 0.000% 0.125% 0.150%
------------------------------------------------------------------------------------------------------
III BBB/Baa2 0.825% 0.000% 0.125% 0.175%
------------------------------------------------------------------------------------------------------
IV BBB-/Baa3 1.025% 0.025% 0.125% 0.225%
------------------------------------------------------------------------------------------------------
V BB+/Ba1 1.200% 0.200% 0.125% 0.300%
------------------------------------------------------------------------------------------------------
VI BB/Ba2 or below 1.350% 0.350% 0.125% 0.400%
------------------------------------------------------------------------------------------------------
For purposes of the foregoing, (i) if the Applicable LT
Ratings established by Moody's and S&P are different but correspond to
consecutive Pricing Levels, then the Pricing Level with a number equal
to the lower Pricing Level number (i.e., corresponding to the better
rating) shall apply (i.e., if Moody's and S&P's Applicable LT ratings
correspond to Pricing Level I and Pricing Level II, respectively, then
Pricing Level I shall apply), and (ii) if the Applicable LT Ratings
established by Moody's and S&P are different and correspond to
non-consecutive Pricing Levels, then the Pricing Level with a number
equal to the higher Pricing Level number (i.e., corresponding to the
worse rating) minus one shall apply (i.e., if Moody's and S&P's
Applicable LT Ratings correspond to Pricing Levels I and IV,
respectively, then Pricing Level III will apply).
The Applicable Percentage shall be adjusted on the date five
(5) Business Days after the date of any change in the Applicable LT
Ratings (each such adjustment date a "Rate Determination Date"). Each
Applicable Percentage shall be effective from a Rate Determination Date
until the next such Rate Determination Date. Adjustments in the
Applicable Percentages shall be effective as to existing Extensions of
Credit as well as any new Extension of Credit made thereafter.
"Approved Fund" has the meaning assigned thereto in
Section 13.8.2.
3
"Arranger" means X.X. Xxxxxx Securities Inc.
"Assignee" has the meaning assigned thereto in Section 13.8.2.
"Assignment and Assumption" means an Assignment and
Assumption, substantially in the form of Exhibit F.
"Bankruptcy Event" means any of the Events of Default set
forth in Sections 11.1.8, 11.1.9 or 11.1.10, or any of those events
which with the passage of time, the giving of notice or any other
condition, would constitute such an Event of Default.
"Board" means the Board of Governors of the Federal Reserve
System of the United States (or any successor thereof).
"Borrower" means The Pittston Company, a Virginia corporation.
"Business Day" means any day other than a Saturday, a Sunday,
a legal holiday or a day on which banking institutions are authorized
or required by law or other governmental action to close in Richmond,
Virginia or New York, New York; provided that in the case of Offshore
Rate Loans, such day is also a day on which dealings between banks are
carried on in U.S. dollar deposits in the London interbank market.
"Capital Lease" means, with respect to any Person who is a
lessee of property, any lease of any property that should, in
accordance with GAAP, be classified and accounted for as a capital
lease on the lessee's balance sheet.
"Capital Lease Obligation" means the amount of the liability
that is capitalized in respect of any Capital Lease in accordance with
GAAP.
"Cash Equivalents" means (a) demand deposits maintained in the
ordinary course of business, (b) securities issued or directly and
fully guaranteed or insured by the United States or any agency or
instrumentality thereof (provided that the full faith and credit of the
United States is pledged in support thereof) having maturities of not
more than twelve months from the date of acquisition, (c) time
deposits, certificates of deposit, master notes and bankers acceptances
of (i) any Lender, (ii) any commercial bank or trust company (or any
Affiliate thereof) having capital and surplus in excess of $500,000,000
or (iii) any bank whose short-term commercial paper rating from S&P is
at least A-2 or the equivalent thereof or from Xxxxx'x is at least P-2
or the equivalent thereof (any such bank, trust company or Affiliate
thereof being an "Approved Institution"), in each case with maturities
of not more than 270 days from the date of acquisition, (d) commercial
paper and variable or fixed rate notes issued by any Approved
Institution (or by the parent company thereof) or any variable rate
notes issued by, or guaranteed by, any domestic corporation rated A-2
(or similar ratings by successor rating agencies) or better by S&P or
P-2 (or similar ratings by successor rating agencies) or better by
Moody's and maturing within six months of the date of acquisition, (e)
repurchase agreements entered into by any Person with a bank or trust
company (including any of the Lenders) or recognized securities dealer
having capital and surplus in excess of $500,000,000 for direct
obligations issued by or fully guaranteed by the United States in which
such Person shall have a perfected first priority security interest
(subject to no other Liens) and having, on the date of purchase
thereof, a fair market value of at least 100% of the amount of the
repurchase obligations, (f) Investments, classified in accordance with
GAAP as current assets, in money market investment programs registered
under the Investment Company Act of 1940, as amended, which are
administered by Approved Institutions,
4
(g) obligations of states, municipalities, counties, political
subdivisions, agencies of the foregoing and other similar entities,
rated at least A, MIG-1 or MIG-2 by Xxxxx'x or at least A by S&P (or
similar ratings by successor rating agencies), (h) unrated obligations
of states, municipalities, counties, political subdivisions, agencies
of the foregoing and other similar entities, supported by irrevocable
letters of credit issued by Approved Institutions, or (i) unrated
general obligations of states, municipalities, counties, political
subdivisions, agencies of the foregoing and other similar entities,
provided that the issuer has other outstanding general obligations
rated at least A, MIG-1 or MIG-2 by Xxxxx'x or A by S&P (or similar
ratings by successor rating agencies).
"CD Assessment Rate" means, for any day as applied to any
Alternate Base Rate Loan, the annual assessment rate in effect on such
day that is payable by a member of the Bank Insurance Fund maintained
by the Federal Deposit Insurance Corporation (the "FDIC") classified as
well-capitalized and within supervisory subgroup "B" (or a comparable
successor assessment risk classification) within the meaning of 12
C.F.R. 'SS' 327.4 (or any successor provision) to the FDIC (or any
successor) for the FDIC's (or such successor's) insuring time deposits
at offices of such institution in the United States.
"CD Reserve Percentage" means, for any day as applied to any
Alternate Base Rate Loan, that percentage (expressed as a decimal)
which is in effect on such day, as prescribed by the Board, for
determining the maximum reserve requirement for a Depositary
Institution (as defined in Regulation D of the Board as in effect from
time to time) in respect of new non-personal time deposits in Dollars
having a maturity of 30 days or more.
"Change in Control" shall be deemed to have occurred if (i)
any person or group of persons (within the meaning of Section 13(d) of
the Securities Exchange Act, as amended) shall obtain, directly or
indirectly, beneficially or of record, ownership or control in one or
more series of transactions of shares representing more than 35% of the
aggregate ordinary voting power represented by the issued and
outstanding capital stock of the Borrower, provided that such person or
group of persons shall be deemed to have obtained such ownership or
control on the date thirty days after the date that such person or
group of persons actually obtains such ownership or control, (ii) a
majority of the seats on the board of directors of the Borrower shall
be occupied by persons other than (x) directors on the date of this
Agreement or (y) directors initially nominated or appointed by action
of the board of directors of the Borrower or (iii) there shall have
occurred under any indenture or other instrument evidencing Debt of the
Borrower or any Restricted Subsidiary for borrowed money in excess of
$25,000,000 a "change in control" (as defined in such indenture or
other instrument evidencing such Debt) beyond any grace period
permitted therein obligating the Borrower or any Restricted Subsidiary
to repurchase, redeem or repay all or any part of such Debt or any
capital stock provided for therein.
"Closing Date" means the date of this Agreement or such later
Business Day upon which each condition described in Section 5.2 and
Section 5.3 shall be satisfied or waived in all respects.
"Code" means the Internal Revenue Code of 1986, and the rules
and regulations thereunder, each as amended, supplemented or otherwise
modified from time to time.
"Commitment" means, as to any Lender, the Revolving A
Commitment and/or the Revolving B Commitment of such Lender.
"Competitive Bid" means an offer by a Lender to make a
Competitive Bid Loan in accordance with Section 2.4.
5
"Competitive Bid Loan" means any Loan made pursuant to Section
2.4 and all such Loans collectively as the context requires.
"Competitive Bid Rate" means the rate of interest per annum
expressed as a percentage rate in the form of a decimal to no more than
four decimal places offered by a Lender making a Competitive Bid with
respect to any Competitive Bid Loan.
"Conduit Lender" means 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 amount pursuant to Section 4.8, 4.9, 4.10, 4.11 or 13.2
that would be greater than the amount that 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.
"Confidential Information Memorandum" means the Confidential
Information Memorandum dated July 2002 and furnished to certain
Lenders.
"Consolidated Debt" means Debt of the Borrower and its
Restricted Subsidiaries, determined on a consolidated basis in
accordance with GAAP after giving appropriate effect to any outside
minority interests in Restricted Subsidiaries.
"Consolidated EBITDA" means, for the Borrower and its
Restricted Subsidiaries for any period, an amount equal to the sum of
(a) Consolidated Net Income for such period plus (b) to the extent
deducted in determining Consolidated Net Income for such period, (i)
Consolidated Interest Expense, (ii) income tax expense, (iii)
depreciation, depletion and amortization, and (iv) all other non-cash
charges, determined on a consolidated basis in accordance with GAAP
after giving appropriate effect to any outside minority interests in
the Restricted Subsidiaries.
"Consolidated Interest Expense" means, for any period, as
applied to the Borrower and its Restricted Subsidiaries, all interest
expense (whether paid or accrued) and capitalized interest, including
without limitation (a) the amortization of debt discount and premium,
(b) the interest component under Capital Leases, and (c) the implied
interest component, discount or other similar fees or charges in
connection with any asset securitization program in each case
determined on a consolidated basis in accordance with GAAP after giving
appropriate effect to any outside minority interests in the Restricted
Subsidiaries.
"Consolidated Lease Rentals" means Lease Rentals of the
Borrower and its Restricted Subsidiaries, determined on a consolidated
basis in accordance with GAAP after giving appropriate effect to any
outside minority interests in the Restricted Subsidiaries.
"Consolidated Net Income" means, for any period, the net
income, after taxes, of the Borrower and its Restricted Subsidiaries
for such period determined on a consolidated basis in accordance with
GAAP after giving appropriate effect to any outside minority interests
in the Restricted Subsidiaries, but excluding, to the extent reflected
in determining such net income, (a) any extraordinary gains and losses
for such period, (b) for any period ending before January 1, 2003, any
loss arising from or relating to the initial classification of any
portion of the Pittston
6
Minerals Group as discontinued operations and any subsequent
adjustments associated with the disposition of such discontinued
operations, (c) any non-cash impairment, write-down or write-off in
the book value of any assets and (d) any non-cash loss in connection
with the disposition of any assets.
"Consolidated Net Worth" means, as of any date, as applied to
the Borrower and its Restricted Subsidiaries, shareholders' equity or
net worth as determined and computed on a consolidated basis in
accordance with GAAP after giving appropriate effect to any outside
minority interests in the Restricted Subsidiaries, provided that in
determining "Consolidated Net Worth" there shall be (a) included any
issuance of preferred stock by the Borrower and (b) excluded (i) any
extraordinary gains and losses, (ii) any loss arising from or relating
to the initial classification of any portion of the Pittston Minerals
Group as discontinued operations and any subsequent adjustments
associated with the disposition of such discontinued operations, to the
extent any such loss or adjustment occurs before January 1, 2003, (iii)
any non-cash impairment, write-down or write-off in the book value of
any assets (including any reduction in shareholders' equity in
connection with a reduction in the value of a prepaid Pension Plan or
Foreign Pension Plan) and (iv) any non-cash loss in connection with the
disposition of any assets.
"Consolidated Total Assets" means, as of any date, the assets
and properties of the Borrower and its Restricted Subsidiaries,
determined on a consolidated basis in accordance with GAAP after giving
appropriate effect to any outside minority interests in the Restricted
Subsidiaries.
"Contaminant" means any waste, hazardous material, hazardous
substance, toxic substance, hazardous waste, special waste, petroleum
or petroleum-derived substance or waste that is regulated under any
Environmental Law.
"Credit Facilities" means the collective reference to the
Revolving A Credit Facility, the Revolving B Credit Facility and the
L/C Facility or any of them, as the context requires.
"Credit Parties" means, collectively, the Borrower and the
Guarantors; "Credit Party" means any one of them.
"Current SEC Reports" means the most recent report on Form
10-K, or any successor form, and any amendments thereto filed by the
Borrower with the Securities and Exchange Commission (the "Commission")
and any reports on Forms 10-Q and/or 8-K, or any successor forms, and
any amendments thereto, filed by the Borrower with the Commission after
the date of such report on Form 10-K.
"Debt" of any Person means at any date, without duplication,
the sum of the following determined and calculated in accordance with
GAAP: (a) all obligations of such Person for borrowed money, (b) all
obligations of such Person issued or assumed as the deferred purchase
price of property or services purchased by such Person (other than
trade debt incurred in the ordinary course of business and due within
six months of the incurrence thereof) which would appear as liabilities
on a balance sheet of such Person, (c) all Debt of others secured by
(or for which the holder of such Debt has an existing right, contingent
or otherwise, to be secured by) any Lien on, or payable out of the
proceeds of production from, property owned or acquired by such Person,
whether or not the obligations secured thereby have been assumed,
provided that for purposes hereof the amount of such Debt shall be
calculated at the greater of (i) the amount of such Debt as to which
there is recourse to such Person and (ii) the fair market value of the
property which is subject to the Lien, (d) all Support Obligations of
such Person with respect to
7
Debt of others, (e) the principal portion of all obligations of such
Person under Capital Leases, (f) the maximum amount of all drafts
drawn under standby letters of credit issued or bankers' acceptances
facilities created for the account of such Person (to the extent
unreimbursed), and (g) the outstanding attributed principal amount
under any asset securitization program of such Person. The Debt of any
Person shall include the Debt of any partnership or joint venture in
which such Person is a general partner or a joint venturer, but only
to the extent to which there is recourse to such Person for payment of
such Debt.
"Default" means any of the events specified in Section 11.1
which with the passage of time, the giving of notice or both, would
constitute an Event of Default.
"Documentation Agent" has the meaning assigned thereto in the
recitals hereto.
"Dollar Equivalent" means, on any Business Day with respect to
any amount denominated in any Optional Currency, the amount of Dollars
that would be required to purchase the amount of such Optional Currency
based upon the spot selling rate at which JPMorgan Chase London offers
to sell such Optional Currency for Dollars in the London foreign
exchange market at approximately 11:00 a.m. London time on such
Business Day for delivery two Business Days later, and, with respect to
any amount denominated in Dollars, such amount.
"Dollars" or "$" means, unless otherwise qualified, dollars in
lawful currency of the United States.
"Environmental Laws" means any and all federal, state, local
and foreign laws, statutes, ordinances, rules, regulations, permits,
licenses, approvals, binding interpretations and orders of courts or
Governmental Authorities, relating to the protection of human health or
the environment, including, but not limited to, requirements pertaining
to the manufacture, processing, distribution, use, treatment, storage,
disposal, transportation, handling, reporting, licensing, permitting,
investigation or remediation of Hazardous Materials.
"ERISA" means the Employee Retirement Income Security Act of
1974, and the rules and regulations thereunder, each as amended,
supplemented or otherwise modified from time to time.
"ERISA Affiliate" means any Person who together with the
Borrower is treated as a single employer within the meaning of Section
414(b), (c), (m) or (o) of the Code or Section 4001(b) of ERISA.
"Eurodollar Reserve Percentage" means, for any day, the
percentage (expressed as a decimal and rounded upwards, if necessary,
to the next higher 1/1000th of 1%) which is in effect for such day as
prescribed by the Federal Reserve Board (or any successor) for
determining the maximum reserve requirement (including without
limitation any basic, supplemental or emergency reserves) in respect of
eurocurrency liabilities or any similar category of liabilities for a
member bank of the Federal Reserve System in New York City and to which
the Administrative Agent or any Lender is then subject.
"Event of Default" means any of the events specified in
Section 11.1, provided that any requirement for passage of time, giving
of notice, or any other condition, has been satisfied.
"Existing Credit Agreement" has the meaning assigned thereto
in the recitals hereto.
8
"Existing Letter of Credit" means the Irrevocable Standby
Letter of Credit No. 0000000 issued by Bank of America, N.A., for the
account of the Borrower in favor of Liberty Mutual Insurance Company
originally issued under the Existing Credit Agreement.
"Extension of Credit" means, as to any Lender, (a) any
component of such Lender's Extensions of Credit or (b) the making of,
or participation in, a Loan by such Lender or the issuance or extension
of, or participation in, a Letter of Credit by such Lender, as the
context may require.
"Extensions of Credit" means, as to any Lender at any time, an
amount equal to the sum of (a) the aggregate principal amount of all
Revolving Credit Loans made by such Lender then outstanding, (b) if
such Lender is a Revolving A Lender, such Lender's Revolving A
Commitment Percentage of the Revolving A L/C Obligations then
outstanding, (c) if such Lender is a Revolving B Lender, such Lender's
Revolving B Commitment Percentage of the Revolving X X/C Obligations
then outstanding and (c) the aggregate principal amount of all
Competitive Bid Loans made by such Lender then outstanding.
"Facility Fee" has the meaning assigned thereto in
Section 4.3.
"FDIC" means the Federal Deposit Insurance Corporation, or any
successor thereto.
"Federal Funds Rate" means, 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.
"Financial Letters of Credit" means any Letter of Credit
issued to any Person other than an Affiliate of the Borrower to secure
the payment by any such Person of its financial obligations, or to
provide counter or "back-up" guarantees in support of bank guarantees,
letters of credit or other credit facilities afforded to the Borrower
or any of its Subsidiaries, or to support local currency borrowings
outside the United States.
"Fiscal Year" means the fiscal year of the Borrower ending on
December 31 in any year.
"Foreign Lender" means any Lender (including any Participant)
that is not a "U.S. Person" as defined in Section 7701(a)(30) of the
Code.
"Foreign Pension Plan" means any plan, fund (including,
without limitation, any superannuation fund) or other similar program
established or maintained outside the United States of America by the
Borrower or any one or more of its Subsidiaries primarily for the
benefit of employees of the Borrower or such Subsidiaries residing
outside the United States of America, which plan, fund or other similar
program provides, or results in, retirement income, a deferral of
income in contemplation of retirement or payments to be made upon
termination of employment, and which plan is not subject to ERISA or
the Code.
"Foreign Subsidiary" means each Subsidiary of the Borrower
that is not organized under the laws of the United States or any State
or territory thereof.
9
"GAAP" means generally accepted accounting principles in the
United States, as recognized by the American Institute of Certified
Public Accountants and the Financial Accounting Standards Board,
consistently applied and maintained on a consistent basis throughout
the period indicated, subject to Section 1.4.
"Governmental Approvals" means all authorizations, consents,
approvals, licenses and exemptions of, registrations and filings with,
and reports to, all Governmental Authorities.
"Governmental Authority" means any nation, province, state or
political subdivision thereof, and any government or any Person
exercising executive, legislative, regulatory or administrative
functions of or pertaining to government, and any corporation or other
entity owned or controlled, through stock or capital ownership or
otherwise, by any of the foregoing.
"Guaranteed Obligations" means, without duplication, all of
the obligations of the Borrower to the Lenders and the Administrative
Agent, whenever arising, under this Agreement, the Notes or any other
Loan Document (including, but not limited to, obligations with respect
to principal, interest and fees).
"Guarantor" means each Subsidiary of the Borrower identified
as a "Guarantor" on the signature pages hereto and any Material
Domestic Subsidiary that becomes a Guarantor hereunder after the
Closing Date by execution of a Guarantor Joinder Agreement pursuant to
Section 8.10.
"Guarantor Joinder Agreement" means a Guarantor Joinder
Agreement executed by a Guarantor and the Administrative Agent in
substantially the form of Exhibit D, as amended, restated, supplemented
or otherwise modified.
"Hazardous Materials" means any substances or materials (a)
which are or become regulated or defined as hazardous wastes, hazardous
substances, pollutants, contaminants, chemical substances or mixtures
or toxic substances under any Environmental Law, (b) which are toxic,
explosive, corrosive, flammable, infectious, radioactive, carcinogenic,
mutagenic or otherwise harmful to human health or the environment and
are or become regulated by any Governmental Authority, (c) the presence
of which require investigation or remediation under any Environmental
Law, (d) the discharge or emission or release of which requires a
permit or license under any Applicable Law or other Governmental
Approval, or (e) which contain, without limitation, asbestos,
polychlorinated biphenyls, urea formaldehyde foam insulation, petroleum
hydrocarbons, petroleum derived substances or waste, crude oil, nuclear
fuel, natural gas or synthetic gas.
"Hedging Agreement" means any agreement with respect to an
interest rate swap, collar, cap, floor or forward rate agreement,
foreign currency agreement or other agreement executed to protect the
Borrower or any Subsidiary against fluctuations in the prices of
commodities, and any confirming letter executed pursuant to such
hedging agreement, all as amended, restated or otherwise modified from
time to time.
"Interest Coverage Ratio" means, as of the last day of any
fiscal quarter, the ratio of (a) Consolidated EBITDA to (b)
Consolidated Interest Expense, in each case for the period of four (4)
consecutive fiscal quarters ending as of such day.
"Interest Period" has the meaning assigned thereto in
Section 4.1.2.
10
"Investment" in any Person means (a) the acquisition (whether
for cash, property, services, assumption of indebtedness, securities or
otherwise) of capital stock, bonds, notes, debentures, partnership,
joint ventures or other ownership interests or other securities of such
Person, (b) any deposit with, or advance, loan or other extension of
credit to, such Person (other than deposits made in connection with the
purchase of equipment or other assets in the ordinary course of
business) or (c) any other capital contribution to or investment in
such Person.
"Issuing Lender" means Bank of America, N.A., in its capacity
as issuer of the Existing Letter of Credit, JPMorgan Chase Bank in its
capacity as issuer of any Letter of Credit (other than the Existing
Letter of Credit), and any other Lender mutually acceptable and on
terms satisfactory to the Borrower and the Administrative Agent.
"Labor Laws" means any and all federal, state, local and
foreign statutes, laws, regulations, ordinances, rules, judgments and
orders relating to employment, equal employment opportunity,
nondiscrimination, immigration, wages, hours, benefits, collective
bargaining, the payment of social security and similar taxes,
occupational safety and health, and plant closing.
"L/C Application" means an application, in the form specified
by any Issuing Lender from time to time, requesting such Issuing Lender
to issue a Letter of Credit.
"L/C Commitment" means the sum of the Revolving A L/C
Commitment and the Revolving X X/C Commitment.
"L/C Facility" means the letter of credit facilities
established pursuant to Article III hereof.
"L/C Fees" means the Revolving A L/C Fee and the Revolving B
L/C Fee.
"L/C Obligations" means at any time, an amount equal to the
sum of the Revolving A L/C Obligations and the Revolving X X/C
Obligations.
"L/C Participants" means the Revolving A L/C Participants and
the Revolving X X/C Participants.
"Lease" means a lease, other than a Capital Lease, of real or
personal property.
"Lease Rentals" for any period means the sum of the rental and
other obligations to be paid by the lessee under a Lease during the
remaining term of such Lease (excluding any extension or renewal
thereof at the option of the lessor or the lessee unless such option
has been exercised), excluding any amount required to be paid by the
lessee (whether or not therein designated as rental or additional
rental) on account of maintenance and repairs, insurance, taxes,
assessments, water rates and similar charges.
"Lender" means each Person executing this Agreement as a
Lender as set forth on the signature pages hereto and each Person that
hereafter becomes a party to this Agreement as a Lender pursuant to
Section 13.8.2, other than any party hereto that ceases to be a party
hereto pursuant to any Assignment and Assumption; provided, that unless
the context otherwise requires, each reference herein to the Lenders
shall be deemed to include any Conduit Lender.
"Lending Office" means, with respect to any Lender, the office
of such Lender maintaining such Lender's Aggregate Commitment
Percentage of the Revolving Credit Loans.
11
"Letters of Credit" means the collective reference to the
Revolving A Letters of Credit and the Revolving B Letters of Credit.
"Leverage Ratio" means, as of the date of any determination
with respect to the Borrower, the ratio of (a) the sum of (i)
Consolidated Debt as of such date, plus (ii) the amount by which (A)
the aggregate amount, as of the preceding December 31 (or as of such
date if such date is December 31), of Consolidated Lease Rentals under
non-cancellable Leases entered into by the Borrower or any of its
Subsidiaries, discounted to present value at 10% and net of aggregate
minimum non-cancellable sublease rentals, determined on a basis
consistent with Note 12 to the Borrower's consolidated financial
statements at and for the period ended December 31, 2001, included in
the Borrower's 2001 annual report to shareholders, exceeds (B)
$350,000,000, to (b) the sum of (i) the amount determined pursuant to
clause (a), plus (ii) Consolidated Net Worth as of such date.
"LIBOR" means, for any Offshore Rate Loan for any Interest
Period therefor, the rate per annum (rounded upwards, if necessary, to
the nearest 1/1000th of 1%) appearing on Telerate screen 3750 (or any
successor or equivalent screen) as the London interbank offered rate
for deposits in Dollars and in the approximate amount of the Loan to be
made or continued as, or converted into, such Offshore Rate Loan at
approximately 11:00 a.m. (London time) two (2) Business Days prior to
the first day of such Interest Period for a term comparable to such
Interest Period; provided, however, if more than one rate is specified
on Telerate screen 3750 the relevant rate shall be the arithmetic mean
of all such rates. If for any reason such rate is not available, the
term "LIBOR" means, for any Offshore Rate Loan for any Interest Period
therefor,
(a) the rate per annum (rounded upwards, if necessary, to the
nearest 1/1000th of 1%) appearing on Reuters Screen LIBO Page as the
London interbank offered rate for deposits in Dollars and in the
approximate amount of the Loan to be made or continued as, or
converted into, such Offshore Rate Loan at approximately 11:00 a.m.
(London time) two (2) Business Days prior to the first day of such
Interest Period for a term comparable to such Interest Period;
provided, however, if more than one rate is specified on Reuters
Screen LIBO Page, the relevant rate shall be the arithmetic mean of
all such rates, or
(b) if no rate is available on the Reuters Screen LIBO page,
then the rate determined by the Administrative Agent at which Dollars
in the approximate amount of the Loan to be made or continued as, or
converted into, such Offshore Rate Loan are offered by leading banks
in the London interbank market at approximately 11:00 a.m. (London
time) two (2) Business Days prior to the first day of the applicable
Interest Period (rounded upwards, if necessary, to the nearest
1/1000th of 1%).
"Lien" means, with respect to any asset, any mortgage, lien,
pledge, charge, security interest or encumbrance of any kind in respect
of such asset. For the purposes of this Agreement, a Person shall be
deemed to own subject to a Lien any asset which it has acquired or
holds subject to the interest of a vendor or lessor under any
conditional sale agreement, Capital Lease or other title retention
agreement relating to such asset.
"Loan Documents" means, collectively, this Agreement, the
Notes, the L/C Applications, any Guarantor Joinder Agreement and each
other document, instrument and agreement executed and delivered by any
Credit Party for the benefit of the Administrative Agent or any Lender
in connection with this Agreement, all as may be amended, restated or
otherwise modified.
12
"Loans" means the collective reference to the Revolving Credit
Loans and the Competitive Bid Loans; "Loan" means any one of such
Loans.
"Margin Stock" has the meaning given such term under
Regulation U of the Board.
"Material Adverse Effect" means (a) a material adverse effect
on the financial condition or results of operations of the Borrower and
its Restricted Subsidiaries taken as a whole that would impair the
ability of the Credit Parties to perform their obligations under the
Loan Documents or (b) a material adverse effect on the rights or
remedies of the Lenders or the Administrative Agent under the Loan
Documents.
"Material Domestic Subsidiary" means any Subsidiary of the
Borrower which (a) is organized under the laws of the United States,
any state thereof or the District of Columbia and (b) together with its
Subsidiaries, (i) owns more than twenty percent (20%) of Consolidated
Total Assets or (ii) accounts for more than twenty percent (20%) of
Consolidated EBITDA.
"Moody's" means Xxxxx'x Investors Service, Inc.
"Multiemployer Plan" means a "multiemployer plan" as defined
in Section 4001(a)(3) of ERISA to which the Borrower or any ERISA
Affiliate is making, has made, is accruing or has accrued an obligation
to make, contributions within the preceding six years.
"Notes" means any promissory note evidencing Loans.
"Notice of Account Designation" has the meaning assigned
thereto in Section 2.2.2.
"Notice of Borrowing" has the meaning assigned thereto in
Section 2.2.1.
"Notice of Conversion/Continuation" has the meaning assigned
thereto in Section 4.2.
"Notice of Prepayment" has the meaning assigned thereto in
Section 2.3.3.
"Obligations" means, in each case, whether now in existence or
hereafter arising: (a) the principal of and interest on (including
interest accruing after the filing of any bankruptcy or similar
petition) the Loans, (b) all payment and other obligations owing by the
Credit Parties to any Lender or Affiliate of a Lender or the
Administrative Agent under any Hedging Agreement with any Lender or
Affiliate of a Lender (which Hedging Agreement is permitted hereunder),
and (c) all other fees and commissions (including attorney's fees),
charges, indebtedness, loans, liabilities, financial accommodations,
obligations, covenants and duties owing by the Credit Parties to the
Lenders or the Administrative Agent, of every kind, nature and
description, direct or indirect, absolute or contingent, due or to
become due, contractual or tortious, liquidated or unliquidated, and
whether or not evidenced by any note, in each case under or in respect
of this Agreement or any of the other Loan Documents.
"Offshore Rate" means, for any Interest Period, with respect
to an Offshore Rate Loan, the rate of interest per annum (rounded
upward to the next 1/1000th of 1%) determined by the Administrative
Agent as follows:
LIBOR
------------------------------------
Offshore Rate = 1.00- Eurodollar Reserve Percentage
13
The Offshore Rate shall be adjusted automatically as to all
Offshore Rate Loans then outstanding as of the effective date of any
change in the Eurodollar Reserve Percentage.
"Offshore Rate Loan" means a Revolving Credit Loan bearing
interest at a rate based upon the Offshore Rate as provided in Section
4.1.1.
"Operating Lease" means, as to any Person, as determined in
accordance with GAAP, any lease of property (whether real, personal or
mixed) by such Person as lessee which is not a Capital Lease.
"Optional Currency" means Canadian dollars, euros, British
pounds sterling and Japanese yen.
"Other Taxes" has the meaning assigned thereto in Section
4.11.2.
"Participant" has the meaning assigned thereto in Section
13.8.3.
"PBGC" means the Pension Benefit Guaranty Corporation referred
to and defined in ERISA or any successor agency.
"Pension Plan" means any employee pension benefit plan (within
the meaning of Section 3(2) of ERISA), other than a Multiemployer Plan,
which is subject to the provisions of Title IV of ERISA or Section 412
of the Code and is maintained for the employees of the Borrower or any
of its ERISA Affiliates.
"Performance Letters of Credit" means any trade or documentary
Letter of Credit issued to secure the performance by any Person of its
obligations, or to guarantee or otherwise secure any Person's
obligations relating to a bid, advance payment or security deposit,
retention release, custom and duty deferment guaranty or bond, warranty
or performance bond or other guaranty.
"Person" means an individual, corporation, limited liability
company, partnership, association, trust, business trust, joint
venture, joint stock company, pool, syndicate, sole proprietorship,
unincorporated organization, Governmental Authority or any other form
of entity or group thereof.
"Pittston Minerals Group" means Pittston Minerals Group,
Inc., and its Subsidiaries.
"Plan" means at a particular time, any employee benefit plan
that is covered by ERISA and in respect of which the Borrower or any
ERISA Affiliate is (or if such plan were terminated at such time,
would, under Section 4069 of ERISA be deemed to be) an "employer" as
defined in Section 3(5) of ERISA.
"Prior Bank Commitment" means the Borrower's committed credit
facility evidenced by the Existing Credit Agreement.
"Real Property" of any Person means all the right, title and
interest of such Person in and to land, improvements and fixtures,
including leaseholds.
14
"Reimbursement Obligation" means the obligation of the
Borrower to reimburse each Issuing Lender pursuant to Section 3.5 for
amounts drawn under Letters of Credit issued at the request of the
Borrower.
"Refinancing" has the meaning assigned thereto in the recitals
hereto.
"Register" has the meaning assigned thereto in Section 13.8.2.
"Reportable Event" means an event described in Section 4043(c)
of ERISA with respect to a Pension Plan that is subject to Title IV of
ERISA other than those events as to which the thirty (30) day notice
period is waived under subsection .22, .23, .27 or .28 of PBGC
Regulation Section 4043.
"Required Lenders" means, at any date, any combination of
Lenders who hold more than fifty percent (50%) of the Aggregate
Commitment then in effect or, if the Aggregate Commitment has been
terminated, any combination of Lenders who collectively hold more than
fifty percent (50%) of the aggregate unpaid principal amount of the
Extensions of Credit (excluding the aggregate unpaid principal amount
of Competitive Bid Loans); provided that, for purposes of declaring the
Loans to be due and payable pursuant to Article XI, and for all
purposes after the Loans become due and payable pursuant to Article XI,
the outstanding Competitive Bid Loans of the Lenders shall be included
in the Lenders' respective Aggregate Commitment Percentages in
determining the Required Lenders.
"Responsible Officer" means any of the following: the chief
executive officer or chief financial officer of the Borrower or any
other officer of the Borrower proposed by the Borrower and reasonably
acceptable to the Administrative Agent.
"Restricted Subsidiary" means:
(i) any Subsidiary of the Borrower at the date of this
Agreement other than a Subsidiary designated as an Unrestricted
Subsidiary in Schedule 1.1(b);
(ii) any Material Domestic Subsidiary of the Borrower;
(iii) any Subsidiary of the Borrower that is a Guarantor;
(iv) any Subsidiary of the Borrower that owns, directly or
indirectly, any of the capital stock of any Guarantor; and
(v) any Person that becomes a Subsidiary of the Borrower
after the date hereof unless prior to such Person becoming a
Subsidiary the board of directors of the Borrower designates such
Subsidiary as an Unrestricted Subsidiary, in accordance with the
following paragraph.
A Restricted Subsidiary (other than any Material Domestic Subsidiary,
any Subsidiary that is a Guarantor or any Subsidiary that owns,
directly or indirectly, any of the capital stock of any Guarantor) may
be designated by the board of directors of the Borrower as an
Unrestricted Subsidiary by written notice to the Administrative Agent,
but only if (a) the Subsidiary owns no shares, directly or indirectly,
of the Borrower or any Restricted Subsidiary and (b) immediately after
such designation, the Leverage Ratio is not greater than 0.55 to 1.00
and the Interest Coverage Ratio is at least 3.00 to 1.00. An
Unrestricted Subsidiary may be designated by the
15
board of directors of the Borrower as a Restricted Subsidiary by
written notice to the Administrative Agent, but only if immediately
after such designation (x) the Borrower shall be in compliance with
Section 9.2 and (y) the Leverage Ratio is not greater than 0.55 to
1.00 and the Interest Coverage Ratio is at least 3.00 to 1.00.
"Revolving A Commitment" means as to any Lender, the
obligation of such Lender to make Revolving A Credit Loans for the
account of the Borrower and participate in Revolving A Letters of
Credit in an aggregate principal and/or stated amount at any time
outstanding not to exceed the amount set forth under "Revolving A
Commitment" opposite such Lender's name on Schedule 1.1(a) hereto as
such amount may be reduced or modified at any time or from time to time
pursuant to the terms hereof.
"Revolving A Commitment Percentage" means, with respect to any
Lender at any time, the ratio (expressed as a percentage) of (a) the
amount of the Revolving A Commitment of such Lender at such time to (b)
the Aggregate Revolving A Commitment.
"Revolving A Credit Facility" means the multi-year revolving
credit facility established pursuant to Section 2.1.1(a) hereof.
"Revolving A Credit Loans" has the meaning assigned thereto in
Section 2.1.1(a).
"Revolving A L/C Commitment" means $91,428,571.
"Revolving A L/C Fee" has the meaning assigned thereto in
Section 3.3.1.
"Revolving A L/C Obligations" means at any time, an amount
equal to the sum of (a) the aggregate undrawn and unexpired amount of
the then outstanding Revolving A Letters of Credit and (b) the
aggregate amount of drawings under Revolving A Letters of Credit which
have not then been reimbursed pursuant to Section 3.5, provided that
for purposes of determining the amount of Revolving A L/C Obligations
at any such time, any portion of such amount that is denominated in an
Optional Currency shall be included in such amount as the Dollar
Equivalent thereof at such time.
"Revolving A L/C Participants" means the collective reference
to all the Revolving A Lenders other than the applicable Issuing
Lender.
"Revolving A Lender" means each Lender with a Revolving A
Commitment or that holds a Revolving A Credit Loan.
"Revolving A Letters of Credit" has the meaning assigned
thereto in Section 3.1.1.
"Revolving B Commitment" means as to any Lender, the
obligation of such Lender to make Revolving B Credit Loans for the
account of the Borrower and participate in Revolving B Letters of
Credit in an aggregate principal and/or stated amount at any time
outstanding not to exceed the amount set forth under "Revolving B
Commitment" opposite such Lender's name on Schedule 1.1(a) hereto as
such amount may be reduced or modified at any time or from time to time
pursuant to the terms hereof.
"Revolving B Commitment Percentage" means, with respect to any
Lender at any time, the ratio (expressed as a percentage) of (a) the
amount of the Revolving B Commitment of such Lender at such time to (b)
the Aggregate Revolving B Commitment.
16
"Revolving B Credit Facility" means the multi-year revolving
credit facility established pursuant to Section 2.1.1(b) hereof.
"Revolving B Credit Loans" has the meaning assigned thereto in
Section 2.1.1(b).
"Revolving X X/C Commitment" means $8,571,429.
"Revolving X X/C Fee" has the meaning assigned thereto in
Section 3.3.2.
"Revolving X X/C Obligations" means at any time, an amount
equal to the sum of (a) the aggregate undrawn and unexpired amount of
the then outstanding Revolving B Letters of Credit and (b) the
aggregate amount of drawings under Revolving B Letters of Credit which
have not then been reimbursed pursuant to Section 3.5.
"Revolving X X/C Participants" means the collective reference
to all the Revolving B Lenders other than the applicable Issuing
Lender.
"Revolving B Lender" means each Lender with a Revolving B
Commitment or that holds a Revolving B Credit Loan.
"Revolving B Letters of Credit" has the meaning assigned
thereto in Section 3.1.2.
"Revolving Credit Facilities" means the collective reference
to the Revolving A Credit Facility and the Revolving B Credit Facility.
"Revolving Credit Loan" means any loan (other than a
Competitive Bid Loan) made to the Borrower pursuant to Section 2.2.
"Sale and Leaseback Transaction" means the sale by the
Borrower or a Restricted Subsidiary to any Person (other than any
Credit Party) of any property or asset and, as part of the same
transaction or series of transactions, the leasing as lessee by the
Borrower or any Restricted Subsidiary of the same or another property
or asset which it intends to use for substantially the same purpose.
"S&P" means Standard & Poor's Ratings Services.
"Specified Maturity Date" means September 6, 2005.
"Subsidiary" means, with respect to any Person (the "parent")
at any date, any corporation, limited liability company, partnership,
association or other entity the accounts of which would be consolidated
with those of the parent in the parent's consolidated financial
statements if such financial statements were prepared in accordance
with GAAP as of such date, as well as any other corporation, limited
liability company, partnership, association or other entity (a) of
which securities or other ownership interests representing more than
fifty percent (50%) of the equity or more than fifty percent (50%) of
the ordinary voting power or, in the case of a partnership, more than
fifty percent (50%) of the general partnership interests are, as of
such date, owned, controlled or held, or (b) that is, as of such date,
otherwise controlled, by the parent or one or more subsidiaries of the
parent or by the parent and one or more subsidiaries of the parent.
Unless otherwise qualified, references to "Subsidiary" or
"Subsidiaries" herein shall refer to those of the Borrower.
17
"Support Obligation" means, with respect to any Person, at any
date without duplication, any Debt of another Person that is
guaranteed, directly or indirectly in any manner, by such Person or
endorsed (otherwise than for collection or deposit in the ordinary
course of business) or discounted with recourse by such Person or any
Debt of another Person that has the substantially equivalent or similar
economic effect of being guaranteed by such Person or of otherwise
making such Person contingently liable therefor, through an agreement
or otherwise, including, without limitation, an agreement (i) to
purchase, or to advance or supply funds for the payment or purchase of,
such Debt, or (ii) to make any loan, advance, capital contribution or
other investment in such other Person to assure a minimum equity, asset
base, working capital or other balance sheet condition for any date, or
to provide funds for the payment of any liability, dividend or stock
liquidation payment, or otherwise to supply funds to or in any manner
invest in such other Person (unless such investment is expected to
constitute a permitted investment under Section 9.10).
"Syndication Agents" has the meaning assigned thereto in the
recitals hereto.
"Taxes" has the meaning assigned thereto in Section 4.11.1.
"Termination Date" means the earliest of the dates referred to
in Section 2.5.
"UCC" means, with respect to any Letter of Credit, the Uniform
Commercial Code as in effect in the State in which the corporate
headquarters of the relevant Issuing Lender is located or such other
jurisdiction as is acceptable to the relevant Issuing Lender, as
amended, restated or otherwise modified from time to time.
"Unfunded Current Liability" of any Pension Plan means the
amount, if any, by which the actuarial present value of the accumulated
plan benefits under the Pension Plan as of the close of its most recent
year, determined in accordance with actuarial assumptions at such time
consistent with Statement of Financial Accounting Standards No 87,
exceeds the sum of (a) the market value of the assets allocable thereto
and (b) $5,000,000.
"Uniform Customs" means the Uniform Customs and Practice for
Documentary Credits (1993 Revision), International Chamber of Commerce
Publication No. 500.
"United States" and "U.S." mean the United States of America.
"Unrestricted Subsidiary" means any Subsidiary other than a
Restricted Subsidiary.
"Utilization" means, for any day, (a) (x) the aggregate
principal amount of all outstanding Loans plus (y) the Dollar
Equivalent of the then outstanding L/C Obligations divided by (b) the
Aggregate Commitment, the result being expressed as a percentage.
"Utilization Fee" means, for any day, a per annum rate equal
to the Applicable Percentage for the Utilization Fee on such day.
Section 1.2 General.
Unless otherwise specified, a reference in this Agreement to a
particular section, subsection, Schedule or Exhibit is a reference to that
section, subsection, Schedule or Exhibit of this Agreement. Wherever from the
context it appears appropriate, each term stated in either the singular or
plural shall include the singular and plural, and pronouns stated in the
masculine, feminine or neuter
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gender shall include the masculine, feminine and neuter. Any reference herein to
"New York City time" or "London time" shall refer to the applicable time of day
in New York City or London, England, as applicable.
Section 1.3 Other Definitions and Provisions.
1.3.1 Use of Capitalized Terms. Unless otherwise defined
therein, all capitalized terms defined in this Agreement shall have the defined
meanings provided herein when used in this Agreement and the other Loan
Documents or any certificate, report or other document made or delivered
pursuant to this Agreement.
1.3.2 Miscellaneous. The words "hereof," "herein" and
"hereunder" and words of similar import when used in this Agreement shall refer
to this Agreement as a whole and not to any particular provision of this
Agreement.
Section 1.4 Accounting Terms.
Except as otherwise expressly provided herein, all accounting
terms used herein shall be interpreted, and all financial statements and
certificates and reports as to financial matters required to be delivered to the
Administrative Agent or the Lenders hereunder shall be prepared, in accordance
with GAAP applied on a consistent basis. All calculations made for the purposes
of determining compliance with this Agreement shall (except as otherwise
expressly provided herein) be made by application of GAAP applied on a basis
consistent with the most recent annual or quarterly financial statements
delivered pursuant to Section 7.1 (or, prior to the delivery of the first
financial statements pursuant to Section 7.1, consistent with the annual audited
financial statements referenced in Section 6.1.7); provided, however, if (a) the
Borrower shall object to determining such compliance on such basis at the time
of delivery of such financial statements due to any change in GAAP or the rules
promulgated with respect thereto or (b) the Administrative Agent or the Required
Lenders shall so object in writing within 60 days after delivery of such
financial statements, then such calculations shall be made on a basis consistent
with the most recent financial statements delivered by the Borrower to the
Administrative Agent or the Lenders as to which no such objection shall have
been made.
ARTICLE II
CREDIT FACILITIES
Section 2.1 Amount and Terms of Credit.
2.1.1 Description of Facilities. Upon the terms and subject to
the conditions set forth in this Agreement:
(a) (i) the Revolving A Lenders hereby grant to the Borrower a
multi-year revolving credit facility (the "Revolving A Credit Facility")
pursuant to which each Revolving A Lender severally agrees to make revolving
credit loans (the "Revolving A Credit Loans") to the Borrower in Dollars in
accordance with Section 2.2 and (ii) the parties hereto agree that each
Revolving A Lender may, in its sole discretion, make bids to make Competitive
Bid Loans to the Borrower in Dollars in accordance with Section 2.4; provided
that: (1) the aggregate principal amount of all outstanding Revolving A Credit
Loans (after giving effect to any amount requested) shall not exceed the
Aggregate Revolving A Commitment minus all outstanding Revolving A L/C
Obligations; (2) the sum of the aggregate principal amount of outstanding
Revolving A Credit Loans made by any Revolving A Lender and such Lender's share
of Revolving A L/C Obligations shall not at any time exceed such Lender's
Revolving A
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Commitment; and (3) the aggregate principal amount of all outstanding Revolving
Credit Loans, the aggregate amount of all outstanding L/C Obligations and the
aggregate principal amount of all outstanding Competitive Loans shall not exceed
the Aggregate Commitment. Each Revolving A Credit Loan made by a Revolving A
Lender under the Revolving A Credit Facility shall be in a principal amount
equal to such Lender's Revolving A Commitment Percentage of the aggregate
principal amount of Revolving A Credit Loans requested under such facility on
such occasion.
(b) (i) the Revolving B Lenders hereby grant to the Borrower a
multi-year revolving credit facility (the "Revolving B Credit Facility")
pursuant to which each Revolving B Lender severally agrees to make revolving
credit loans (the "Revolving B Credit Loans") to the Borrower in Dollars in
accordance with Section 2.2 and (ii) the parties hereto agree that each
Revolving B Lender may, in its sole discretion, make bids to make Competitive
Bid Loans to the Borrower in Dollars in accordance with Section 2.4; provided
that: (1) the aggregate principal amount of all outstanding Revolving B Credit
Loans (after giving effect to any amount requested) shall not exceed the
Aggregate Revolving B Commitment minus all outstanding Revolving X X/C
Obligations; (2) the sum of the aggregate principal amount of outstanding
Revolving B Credit Loans made by any Revolving B Lender and such Lender's share
of Revolving X X/C Obligations shall not at any time exceed such Lender's
Revolving B Commitment; and (3) the aggregate principal amount of all
outstanding Revolving Credit Loans, the aggregate amount of all outstanding L/C
Obligations and the aggregate principal amount of all outstanding Competitive
Loans shall not exceed the Aggregate Commitment. Each Revolving B Credit Loan
made by a Revolving B Lender under the Revolving B Credit Facility shall be in a
principal amount equal to such Lender's Revolving B Commitment Percentage of the
aggregate principal amount of Revolving B Credit Loans requested under such
facility on such occasion.
2.1.2 Application of Facilities. The Credit Facilities
established hereby shall be used by the Borrower and its Restricted Subsidiaries
for any lawful purpose, including, without being limited to:
(a) refinance existing Debt of the Borrower and its
Subsidiaries outstanding under the Prior Bank Commitment; and
(b) finance the working capital, capital expenditures,
acquisitions permitted under this Agreement and general corporate
purposes of the Borrower and its Subsidiaries; provided, however, that
no portion of the proceeds of any Loan shall be used to fund any such
acquisition unless at such time (to the extent required by law and/or
the corporate governance or other organizational documents of the
subject company) the board of directors of the subject company shall
have either (i) approved such acquisition or recommended it to
shareholders or (ii) taken a position that it will neither recommend
for or against such acquisition;
and, accordingly, the Borrower shall apply all amounts borrowed by it hereunder
in or towards satisfaction of such purposes and neither the Administrative Agent
nor any Lender shall be obligated to see to the application thereof.
2.1.3 Lender Agreement. Each Lender severally agrees, and by
making any advance hereunder shall be deemed severally to represent, that none
of the funds made available by such Lender with respect to any Revolving Credit
Loan or any Competitive Bid Loan constitute "plan assets" within the meaning of
29 C.F.R. Section 2510.3-101.
Section 2.2 Procedure for Advances of Revolving Credit Loans.
2.2.1 Requests for Revolving Credit Loans. The Borrower shall
give the Administrative Agent irrevocable prior written notice in the form
attached hereto as Exhibit A (a "Notice of Borrowing")
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not later than (i) 11:00 a.m. (New York City time) on the same Business Day as
each Alternate Base Rate Loan and (ii) 12:00 noon (New York City time) at least
three (3) Business Days before each Offshore Rate Loan, of its intention to
borrow, specifying (A) the date of such borrowing, which shall be a Business
Day, (B) the amount of such borrowing, which shall be in an amount equal to the
unused amount of the Aggregate Commitment, or if less, (x) with respect to
Alternate Base Rate Loans, in an aggregate principal amount of $1,000,000 or a
whole multiple of $1,000,000 in excess thereof, and (y) with respect to Offshore
Rate Loans, in an aggregate principal amount of $5,000,000 or a whole multiple
of $1,000,000 in excess thereof, (C) whether such Revolving Credit Loan is to be
an Offshore Rate Loan or Alternate Base Rate Loan, (D) in the case of an
Offshore Rate Loan, the duration of the Interest Period applicable thereto, and
(E) the aggregate principal amount of all Competitive Bid Loans to the Borrower
outstanding. Any Revolving Credit Loan borrowed pursuant to any Notice of
Borrowing shall be applied between the Revolving A Commitment and the Revolving
B Commitment in accordance with Section 4.4. Notices received after 11:00 a.m.
(New York City time) or 12:00 noon (New York City time), as applicable, shall be
deemed received on the next Business Day. The Administrative Agent shall
promptly notify the Lenders of each Notice of Revolving Credit Borrowing.
2.2.2 Disbursement of Revolving Credit Loans. Each Lender will
make available to the Administrative Agent, for the account of the Borrower, at
the Administrative Agent's Office in funds immediately available to the
Administrative Agent, such Lender's Revolving A Commitment Percentage of the
Revolving A Credit Loans to be made on such borrowing date and such Lender's
Revolving B Commitment Percentage of the Revolving B Credit Loans to be made on
such borrowing date, as applicable, no later than 2:00 p.m. (New York City time)
on the proposed borrowing date. The Borrower hereby irrevocably authorizes the
Administrative Agent to disburse the proceeds of each borrowing requested by the
Borrower pursuant to this Section 2.2 in immediately available funds by
crediting or wiring such proceeds to the deposit account of the Borrower
identified in the most recent notice of account designation, substantially in
the form of Exhibit B hereto (a "Notice of Account Designation"), delivered by
the Borrower to the Administrative Agent or as may be otherwise agreed upon by
the Borrower and the Administrative Agent from time to time. Subject to Section
4.7 hereof, the Administrative Agent shall not be obligated to disburse the
portion of the proceeds of any Revolving A Credit Loan or Revolving B Credit
Loan requested pursuant to this Section 2.2 for which any Lender is responsible
to the extent that such Lender has not made available to the Administrative
Agent its Revolving A Commitment Percentage of such Revolving A Credit Loan or
its Revolving B Commitment Percentage of such Revolving B Revolving Credit Loan,
as applicable.
Section 2.3 Repayment of Loans.
2.3.1 Repayment on Termination Date. The Borrower agrees to
repay the outstanding principal amount of all Loans made to it under, and its
Reimbursement Obligation under, the Revolving Credit Facilities in full on the
Termination Date, with all accrued but unpaid interest thereon.
2.3.2 Mandatory Repayment of Loans. (a) If at any time the sum
of the outstanding principal amount of all Revolving A Credit Loans made under
the Revolving A Credit Facility and all outstanding Revolving A L/C Obligations
exceeds the Aggregate Revolving A Commitment, the Borrower agrees to repay
immediately upon notice from the Administrative Agent, by payment to the
Administrative Agent for the account of the Revolving A Lenders, Revolving A
Credit Loans, Revolving A L/C Obligations or Competitive Bid Loans and/or
furnish cash collateral reasonably satisfactory to the Administrative Agent, in
an amount equal to such excess. Such cash collateral shall be applied in
accordance with Section 11.2.2. Any repayment of such Offshore Rate Loans other
than on the last day of the Interest Period applicable thereto shall be
accompanied by any amount required to be paid pursuant to Section 4.9 hereof.
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(b) If at any time the sum of the outstanding principal amount
of all Revolving B Credit Loans made under the Revolving B Credit Facility and
all outstanding Revolving X X/C Obligations exceeds the Aggregate Revolving B
Commitment, the Borrower agrees to repay immediately upon notice from the
Administrative Agent, by payment to the Administrative Agent for the account of
the Revolving B Lenders, Revolving B Credit Loans, Revolving X X/C Obligations
or Competitive Bid Loans and/or furnish cash collateral reasonably satisfactory
to the Administrative Agent, in an amount equal to such excess. Such cash
collateral shall be applied in accordance with Section 11.2.2. Any repayment of
such Offshore Rate Loans other than on the last day of the Interest Period
applicable thereto shall be accompanied by any amount required to be paid
pursuant to Section 4.9 hereof.
2.3.3 Optional Repayments. The Borrower may at any time and
from time to time repay the Revolving Credit Loans made to it, in whole or in
part, upon at least three (3) Business Days irrevocable notice to the
Administrative Agent with respect to Offshore Rate Loans and upon one (1)
Business Day irrevocable notice with respect to Alternate Base Rate Loans, in
the form attached hereto as Exhibit C (a "Notice of Prepayment") specifying the
date and amount of repayment and whether the repayment is of Revolving A Credit
Loans and/or Revolving B Credit Loans and of Offshore Rate Loans and/or
Alternate Base Rate Loans, or a combination thereof, and, if of a combination,
the amount allocable to each. Upon receipt of such notice, the Administrative
Agent shall promptly notify each Revolving A Lender or Revolving B Lender, as
applicable. If any such notice is given, the amount specified in such notice
shall be due and payable on the date set forth in such notice. Partial
repayments shall be in an aggregate amount of $1,000,000 or a whole multiple of
$1,000,000 in excess thereof with respect to Alternate Base Rate Loans, and
$5,000,000 or a whole multiple of $1,000,000 in excess thereof with respect to
Offshore Rate Loans.
2.3.4 Limitation on Repayment of Offshore Rate Loans. The
Borrower may not repay any Offshore Rate Loan on any day other than on the last
day of the Interest Period applicable thereto unless such repayment is
accompanied by any amount required to be paid pursuant to Section 4.9 hereof.
2.3.5 Limitation on Repayment of Competitive Bid Loans. The
Borrower may not repay any Competitive Bid Loan on any day other than on the
last day of the Interest Period applicable thereto except, and on such terms, as
agreed to by the Borrower and the Lender which made such Competitive Bid Loan.
Section 2.4 Competitive Bid Loans and Procedure.
(a) Subject to the terms and conditions set forth herein, from
time to time until the expiration or termination of the Aggregate Commitment,
each Lender may (but shall not have any obligation to) submit Competitive Bids
under the Revolving Credit Facilities, and the Borrower may (but shall not have
any obligation to) accept Competitive Bids and borrow Competitive Bid Loans,
which shall be denominated in Dollars; provided that the sum of the aggregate
principal amount of outstanding Revolving Credit Loans made under the Revolving
Credit Facilities plus the aggregate principal amount of outstanding Competitive
Bid Loans made thereunder shall not at any time exceed the Aggregate Commitment
less the sum of all outstanding L/C Obligations. Unless otherwise mutually
agreed with the Administrative Agent, the Borrower shall administer the bidding
and acceptance process for Competitive Bid Loans in accordance with the terms
and conditions of this Section 2.4.
(b) Each Competitive Bid shall be submitted by telecopy or
electronic mail to the Borrower or by telephone (promptly confirmed in writing
to the Borrower) not later than 10:30 a.m. (New York City time) on the proposed
date of such borrowing and, unless timely accepted, shall automatically lapse at
11:30 a.m. (New York City time) on such date. A Competitive Bid may be for an
amount greater than (or less than) such Lender's Commitment. Each Competitive
Bid shall be irrevocable and shall
22
specify (i) the principal amount (which shall be a minimum of $500,000 and an
integral multiple of $100,000 in excess thereof) of the Competitive Bid Loan or
Loans that the applicable Lender is willing to make, (ii) the Competitive Bid
Rate or Rates at which such Lender is prepared to make such Loan or Loans
(expressed as a percentage rate per annum in the form of a decimal to no more
than four decimal places) and (iii) the Interest Period applicable to each such
Loan and the last day thereof. The Borrower may accept or reject any Competitive
Bid; provided that the Borrower shall not accept a Competitive Bid made at a
particular Competitive Bid Rate if the Borrower rejects a Competitive Bid made
at a lower Competitive Bid Rate, unless the Borrower determines in its good
faith judgment that the overall cost of accepting the Competitive Bid made at
the lower Competitive Bid Rate (due to fees or other expenses in connection with
such Competitive Bid) exceeds that of the Competitive Bid made at the higher
Competitive Bid Rate.
(c) The provisions of the preceding paragraph notwithstanding,
if Competitive Bids were made by Lenders on a Business Day with respect to a
particular Interest Period and such bids lapsed at 11:30 a.m. (New York City
time) on such Business Day pursuant to the preceding paragraph, the Borrower
may, in its sole and absolute discretion, subject only to the provisions of this
paragraph, contact one or more of such Lenders, by telephone, telecopy or email,
prior to 3:00 p.m. (New York City time) on such Business Day to request that
such Lenders reinstate such Competitive Bids for such Interest Period or provide
new Competitive Bids for such Interest Period on such Business Day. Each
Competitive Bid so reinstated shall be submitted by telecopy or electronic mail
to the Borrower or by telephone (promptly confirmed in writing to the Borrower)
on the proposed date of such borrowing. Notwithstanding anything to the contrary
in any Competitive Bid reinstated or submitted pursuant to this paragraph, each
such Competitive Bid shall be irrevocable in respect of the date on which it is
to reinstated or submitted and shall automatically expire at the earlier of (a)
3:00 p.m. (New York City time) on the date submitted and (b) one hour after such
Competitive Bid is received by the Borrower.
(d) The Borrower may, in its sole and absolute discretion,
subject only to the provisions of this paragraph accept any Competitive Bid
submitted under this Section by notifying the Lender submitting such Competitive
Bid by telephone, telecopy or email not later than the expiration time of such
bid, which acceptance notice shall be further confirmed to such Lender and to
the Administrative Agent in writing by telecopy or email not later than the
close of business on the date of acceptance, indicating the Interest Period and
the agreed interest rate on and principal amount of the Competitive Bid Loan to
be made by such Lender on such Business Day. A notice given by the Borrower
pursuant to this paragraph shall be irrevocable.
(e) Not later than 5:00 p.m. (New York City time) on the
proposed borrowing date, each Lender whose Competitive Bid has been accepted
will disburse its Competitive Bid Loan in immediately available funds by
crediting or wiring such proceeds to the deposit account of the Borrower
identified in its most recent Notice of Account Designation. Each such Lender
shall furnish account wiring instructions to the Borrower for the payment of
principal and interest.
(f) At the written request of any Lender, the Borrower shall
disclose to the Administrative Agent the Competitive Bids received and accepted
by the Borrower on any date specified in such request, provided that such date
is not more than 30 days prior to the date on which such request is received by
the Borrower.
(g) While any Competitive Bid Loan is outstanding, the
Commitment of each Lender shall be deemed used for all purposes by an amount
equal to its pro rata share (based on its respective Aggregate Commitment
Percentage) of the principal amount of such Competitive Bid Loan.
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(h) (i) 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 Competitive Bid Loan made by such
Lender to the Borrower from time to time, including the amounts of principal and
interest payable and paid to such Lender from time to time hereunder.
(ii) The entries maintained in the accounts maintained
pursuant to paragraph (i) shall be prima facie evidence of the
existence and amounts of the Obligations therein recorded;
provided, however, that the failure of the Administrative Agent
or any Lender to maintain such accounts or any error therein
shall not in any manner affect the obligation of the Borrower to
repay the Obligations in accordance with their terms.
(i) Unless such Competitive Bid Loan is renewed at the
Lender's option upon request of the Borrower, the Borrower shall repay the
outstanding principal amount of each Competitive Bid Loan made to it in full on
the last day of the Interest Period applicable thereto, with all accrued but
unpaid interest thereon. Competitive Bid Loans may not be repaid prior to the
last day of the applicable Interest Period except in accordance with Sections
2.3.2 and 2.3.5.
Section 2.5 Termination of Revolving Credit Facilities.
The Revolving Credit Facilities shall terminate on the
earliest of (a) the Specified Maturity Date, (b) the date of termination of the
Revolving Credit Facilities by the Administrative Agent on behalf of the Lenders
pursuant to Section 11.2.1 and (c) the date of termination by the Borrower
pursuant to Section 2.6.
Section 2.6 Commitment Reductions.
2.6.1 Voluntary Reduction. The Borrower shall have the right
at any time and from time to time, upon at least three (3) Business Days' prior
written notice to the Administrative Agent, to permanently reduce (except as
provided below), without premium or penalty, (a) the entire Aggregate Commitment
at any time or (b) portions of the Aggregate Revolving A Commitment and the
Aggregate Revolving B Commitment from time to time, in an aggregate principal
amount not less than $5,000,000 or any whole multiple of $1,000,000 in excess
thereof. Upon receipt of such notice, the Administrative Agent shall promptly
notify each Revolving A Lender and Revolving B Lender, as applicable.
2.6.2 Payments Related to a Voluntary Reduction.
(a) Each permanent reduction of the Aggregate Revolving A
Commitment made pursuant to this Section 2.6 shall be accompanied, if necessary,
by a payment of principal sufficient to reduce (or cash collateralize) the
aggregate outstanding Revolving A Credit Loans and Revolving A L/C Obligations,
as applicable, to the amount of the new Aggregate Revolving A Commitment after
such reduction to the Aggregate Revolving A Commitment and, if the Aggregate
Revolving A Commitment as so reduced is less than the aggregate amount of all
outstanding Revolving A Letters of Credit, as the case may be, the Borrower
shall be required to deposit in a cash collateral account opened by the
Administrative Agent an amount equal to the amount by which the aggregate then
undrawn and unexpired amount of such Revolving A Letters of Credit exceeds the
amount of the Aggregate Revolving A Commitment as so reduced. Such cash
collateral shall be maintained and applied in accordance with Section 11.2.2.
Any reduction of the Aggregate Revolving A Commitment to zero (including upon
termination of the Revolving Credit Facilities on the Termination Date) shall be
accompanied by payment of all outstanding Revolving A Credit Loans (and
furnishing of cash collateral satisfactory to the Administrative Agent for all
Revolving A L/C Obligations) and shall result in the termination of the
Aggregate Revolving A Commitment and the Revolving A Credit Facility. If any
reduction of the
24
Aggregate Revolving A Commitment requires the repayment of any Offshore Rate
Loan, such repayment shall be accompanied by any amount required to be paid
pursuant to Section 4.9 hereof. Notwithstanding anything herein to the contrary,
the Aggregate Revolving A Commitment may not be permanently reduced by an amount
such that the Aggregate Revolving A Commitment (after giving effect thereto)
would be less than the aggregate amount of all unpaid principal of and interest
(for the applicable Interest Periods) on outstanding Competitive Bid Loans under
the Revolving A Credit Facility.
(b) Each permanent reduction of the Aggregate Revolving B
Commitment made pursuant to this Section 2.6 shall be accompanied, if necessary,
by a payment of principal sufficient to reduce (or cash collateralize) the
aggregate outstanding Revolving B Credit Loans and Revolving X X/C Obligations,
as applicable, to the amount of the new Aggregate Revolving B Commitment after
such reduction to the Aggregate Revolving B Commitment and, if the Aggregate
Revolving B Commitment as so reduced is less than the aggregate amount of all
outstanding Revolving B Letters of Credit, as the case may be, the Borrower
shall be required to deposit in a cash collateral account opened by the
Administrative Agent an amount equal to the amount by which the aggregate then
undrawn and unexpired amount of such Revolving B Letters of Credit exceeds the
amount of the Aggregate Revolving B Commitment as so reduced. Such cash
collateral shall be applied in accordance with Section 11.2.2. Any reduction of
the Aggregate Revolving B Commitment to zero (including upon termination of the
Revolving Credit Facilities on the Termination Date) shall be accompanied by
payment of all outstanding Revolving B Credit Loans (and furnishing of cash
collateral satisfactory to the Administrative Agent for all Revolving X X/C
Obligations) and shall result in the termination of the Aggregate Revolving B
Commitment and the Revolving B Credit Facility. If any reduction of the
Aggregate Revolving B Commitment requires the repayment of any Offshore Rate
Loan, such repayment shall be accompanied by any amount required to be paid
pursuant to Section 4.9 hereof. Notwithstanding anything herein to the contrary,
the Aggregate Revolving B Commitment may not be permanently reduced by an amount
such that the Aggregate Revolving B Commitment (after giving effect thereto)
would be less than the aggregate amount of all unpaid principal of and interest
(for the applicable Interest Periods) on outstanding Competitive Bid Loans under
the Revolving B Credit Facility.
ARTICLE III
LETTER OF CREDIT FACILITY
Section 3.1 L/C Commitment.
3.1.1 Subject to the terms and conditions hereof, each Issuing
Lender, in reliance on the agreements of the Revolving A Lenders set forth in
Section 3.4.1, agrees to issue letters of credit ("Revolving A Letters of
Credit") for the account of the Borrower on any Business Day from the Closing
Date to but not including the Termination Date in such form as may be requested
by the Borrower and approved from time to time by such Issuing Lender; provided,
that no Issuing Lender shall have any obligation to issue any Revolving A Letter
of Credit if, after giving effect to such issuance, (a) the Revolving A L/C
Obligations would exceed the Revolving A L/C Commitment or (b) the sum of (i)
the aggregate principal amount of outstanding Revolving A Credit Loans, (ii) the
aggregate principal amount of Revolving A L/C Obligations and (iii) the
aggregate principal amount of Competitive Bid Loans made under the Revolving A
Credit Facility, would exceed the Aggregate Revolving A Commitment. Each
Revolving A Letter of Credit shall be denominated in Dollars or any Optional
Currency; provided that the sum of the Dollar Equivalents of the then
outstanding Revolving A L/C Obligations in Optional Currencies (determined in
accordance with the last sentence of Section 3.2) shall not exceed $50,000,000
at any time.
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3.1.2 Subject to the terms and conditions hereof, each Issuing
Lender, in reliance on the agreements of the other Revolving B Lenders set forth
in Section 3.4.2, agrees to issue letters of credit ("Revolving B Letters of
Credit") for the account of the Borrower on any Business Day from the Closing
Date to but not including the Termination Date in such form as may be requested
by the Borrower and approved from time to time by such Issuing Lender; provided,
that no Issuing Lender shall have any obligation to issue any Revolving B Letter
of Credit if, after giving effect to such issuance, (a) the Revolving X X/C
Obligations would exceed the Revolving X X/C Commitment or (b) the sum of (i)
the aggregate principal amount of outstanding Revolving B Credit Loans, (ii) the
aggregate principal amount of Revolving X X/C Obligations and (iii) the
aggregate principal amount of Competitive Bid Loans made under Revolving B,
would exceed the Aggregate Revolving B Commitment. Each Revolving B Letter of
Credit shall be denominated in Dollars.
3.1.3 Prior to the Closing Date, the Issuing Lender has issued
the Existing Letter of Credit which, from and after the Closing Date, shall
constitute a Letter of Credit for all purposes hereunder, subject to allocation
in accordance with Section 3.1.5.
3.1.4 Each Letter of Credit shall (a) be a letter of credit
issued to support obligations of the Borrower or any of its Restricted
Subsidiaries, contingent or otherwise, (b) expire on a date not later than one
year after the date of issuance thereof and not later than the date which is
five Business Days prior to the Specified Maturity Date, and (c) be subject to
the Uniform Customs and, to the extent not inconsistent therewith, the laws of
the State in which the corporate headquarters of the relevant Issuing Lender is
located or such other jurisdiction as is acceptable to the relevant Issuing
Lender. No Issuing Lender shall at any time be obligated to issue any Letter of
Credit hereunder if such issuance would conflict with, or cause such Issuing
Lender or any L/C Participant to exceed any limits imposed by, any Applicable
Law. References herein to "issue" and derivations thereof with respect to
Letters of Credit shall also include extensions or modifications of any existing
Letters of Credit, unless the context otherwise requires.
3.1.5 Allocation of Letters of Credit. Each Letter of Credit
that is denominated in Dollars shall be deemed to constitute in part a Letter of
Credit issued under the Revolving A L/C Commitment and in part a Letter of
Credit issued under the Revolving X X/C Commitment in pro rata proportions
according to the Revolving A L/C Commitment and the Revolving X X/C Commitment,
provided that so long as any Letter of Credit denominated in an Optional
Currency is issued under the Revolving A Facility, the Borrower may determine
that any Letter of Credit denominated in Dollars shall be deemed to constitute
in part a Letter of Credit issued under the Revolving A L/C Commitment and in
part a Letter of Credit issued under the Revolving X X/C Commitment in such
proportions as the Borrower determines, and such determination shall be binding
on the Lenders. Such determination may be changed from time to time so long as
at the time of any such determination, such Letter of Credit would be required
to be issued by the Issuing Lender hereunder if it were not already outstanding.
Section 3.2 Procedure for Issuance of Letters of Credit.
The Borrower may from time to time request that any Issuing
Lender issue a Letter of Credit (or amend, extend or renew an outstanding Letter
of Credit) by delivering to such Issuing Lender at any address mutually
acceptable to the Borrower and such Issuing Lender an L/C Application therefor,
completed to the satisfaction of such Issuing Lender, and such other
certificates, documents and other papers and information as such Issuing Lender
may reasonably request. The L/C Application will contain a representation and
warranty that the conditions specified in Section 5.3 hereof have been satisfied
or waived in writing by the Administrative Agent as of the date of the L/C
Application. The L/C Application will also state the aggregate principal amount
of all Competitive Bid Loans outstanding under the Revolving Credit Facilities.
Upon receipt of any L/C Application, such Issuing Lender shall process
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such L/C Application and the certificates, documents and other papers and
information delivered to it in connection therewith in accordance with its
customary procedures and shall, subject to Section 3.1, this Section 3.2 and
Article V hereof, promptly issue the Letter of Credit (or amend, extend or renew
the outstanding Letter of Credit) requested thereby (but in no event shall any
Issuing Lender be required to issue any Letter of Credit (or amend, extend or
renew an outstanding Letter of Credit) earlier than three (3) Business Days
after its receipt of the L/C Application therefor and all such other
certificates, documents and other papers and information relating thereto) by
issuing the original of such Letter of Credit to the beneficiary thereof or as
otherwise may be agreed by such Issuing Lender and the Borrower. Within fifteen
(15) Business Days after the end of each calendar quarter, each Issuing Lender
(or the Administrative Agent if the Administrative Agent agrees to undertake
such action) shall report to each Lender all Letters of Credit issued by it
during the previous calendar quarter and the average daily undrawn and unexpired
amounts for all Letters of Credit for each day in such calendar quarter. Each
Issuing Lender (or the Administrative Agent if the Administrative Agent agrees
to undertake such action) shall calculate the Dollar Equivalent of each
outstanding Letter of Credit denominated in an Optional Currency as of the end
of each calendar month and shall notify the Administrative Agent and the
Borrower of such calculation, and such calculation shall be the basis of any
determination of the amount of outstanding Revolving A L/C Obligations for
purposes hereof until the next such calculation.
Section 3.3 Fees and Other Charges.
3.3.1 The Borrower agrees to pay to the Administrative Agent,
for the account of each Issuing Lender and the Revolving A L/C Participants, a
letter of credit fee (the "Revolving A L/C Fee") in Dollars with respect to each
Revolving A Letter of Credit issued by such Issuing Lender in an amount
determined as follows:
(a) as to Performance Letters of Credit, the Dollar Equivalent of
the average daily undrawn amount of such issued Letters of Credit as
reported by such Issuing Lender (or the Administrative Agent) pursuant
to Section 3.2 times 50% of the Applicable Percentage for Offshore
Rate Loans then in effect as to the Revolving Credit Facilities; and
(b) as to Financial Letters of Credit, the Dollar Equivalent of
the average daily undrawn amount of such issued Letters of Credit as
reported by such Issuing Lender (or the Administrative Agent) pursuant
to Section 3.2 times the Applicable Percentage for Offshore Rate Loans
then in effect as to the Revolving Credit Facilities.
3.3.2 The Borrower agrees to pay to the Administrative Agent,
for the account of each Issuing Lender and the Revolving X X/C Participants, a
letter of credit fee (the "Revolving X X/C Fee") in Dollars with respect to each
Revolving B Letter of Credit issued by such Issuing Lender in an amount
determined as follows:
(a) as to Performance Letters of Credit, the Dollar Equivalent of
the average daily undrawn amount of such issued Letters of Credit as
reported by such Issuing Lender (or the Administrative Agent) pursuant
to Section 3.2 times 50% of the Applicable Percentage for Offshore
Rate Loans then in effect as to the Revolving Credit Facilities; and
(b) as to Financial Letters of Credit, the Dollar Equivalent of
the average daily undrawn amount of such issued Letters of Credit as
reported by such Issuing Lender (or the Administrative Agent) pursuant
to Section 3.2 times the Applicable Percentage for Offshore Rate Loans
then in effect as to the Revolving Credit Facilities.
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The L/C Fees shall be calculated quarterly in arrears on the
last Business Day of each calendar quarter and payable on the third Business Day
following such date, commencing on the first of such dates to occur after the
Closing Date, and on the Termination Date.
3.3.3 The Administrative Agent shall, promptly following its
receipt thereof, distribute to the Issuing Lender and the Revolving A L/C
Participants the Revolving A L/C Fee received by the Administrative Agent in
accordance with their respective Revolving A Commitment Percentages. The
Administrative Agent shall, promptly following its receipt thereof, distribute
to the Issuing Lender and the Revolving X X/C Participants the Revolving X X/C
Fee received by the Administrative Agent in accordance with their respective
Revolving B Commitment Percentages.
3.3.4 In addition to the L/C Fees, the Borrower agrees to pay
to any Issuing Lender that has issued a Letter of Credit at the request of the
Borrower, for such Issuing Lender's own account without sharing by the other
Lenders, (i) a fronting fee of 0.125% per annum based on the Dollar Equivalent
of the aggregate stated amount of such Letter of Credit for the stated duration
thereof, and (ii) customary charges of such Issuing Lender with respect to the
issuance, amendment, transfer, administration, cancellation and conversion of,
and drawings under, such Letters of Credit.
Section 3.4 L/C Participations.
3.4.1 Each Issuing Lender irrevocably agrees to grant and
hereby grants to each Revolving A L/C Participant, and, to induce such Issuing
Lender to issue Revolving A Letters of Credit hereunder, each Revolving A L/C
Participant irrevocably agrees to accept and purchase and hereby accepts and
purchases from such Issuing Lender, on the terms and conditions hereinafter
stated, for such Revolving A L/C Participant's own account and risk, an
undivided interest equal to such Revolving A L/C Participant's Revolving A
Commitment Percentage in such Issuing Lender's obligations and rights under each
Revolving A Letter of Credit issued hereunder and the amount of each draft paid
by such Issuing Lender thereunder. Each Revolving A L/C Participant
unconditionally and irrevocably agrees with each Issuing Lender that, if a draft
is paid under any Revolving A Letter of Credit for which such Issuing Lender is
not reimbursed in full by the Borrower in accordance with the terms of this
Agreement, such Revolving A L/C Participant shall pay to such Issuing Lender
upon demand at such Issuing Lender's address for notices specified herein an
amount equal to such Revolving A L/C Participant's Revolving A Commitment
Percentage of the amount of such draft, or any part thereof, which is not so
reimbursed. No such demand shall be made by the Issuing Lender prior to its
electing to convert the reimbursement payment to Dollars as contemplated by
Section 3.5.
3.4.2 Each Issuing Lender irrevocably agrees to grant and
hereby grants to each Revolving X X/C Participant, and, to induce such Issuing
Lender to issue Revolving B Letters of Credit hereunder, each Revolving X X/C
Participant irrevocably agrees to accept and purchase and hereby accepts and
purchases from such Issuing Lender, on the terms and conditions hereinafter
stated, for such Revolving X X/C Participant's own account and risk, an
undivided interest equal to such Revolving X X/C Participant's Revolving B
Commitment Percentage in such Issuing Lender's obligations and rights under each
Revolving B Letter of Credit issued hereunder and the amount of each draft paid
by such Issuing Lender thereunder. Each Revolving X X/C Participant
unconditionally and irrevocably agrees with each Issuing Lender that, if a draft
is paid under any Revolving B Letter of Credit for which such Issuing Lender is
not reimbursed in full by the Borrower in accordance with the terms of this
Agreement, such Revolving X X/C Participant shall pay to such Issuing Lender
upon demand at such Issuing Lender's address for notices specified herein an
amount equal to such Revolving X X/C Participant's Revolving B Commitment
Percentage of the amount of such draft, or any part thereof, which is not so
reimbursed.
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3.4.3 Upon becoming aware of any amount required to be paid by
any L/C Participant to any Issuing Lender pursuant to Section 3.4.1 or Section
3.4.2 in respect of any unreimbursed portion of any payment made by such Issuing
Lender under any Letter of Credit, the Administrative Agent shall notify each
Revolving A L/C Participant, in the case of Revolving A Letters of Credit, or
each Revolving X X/C Participant, in the case of Revolving B Letters of Credit,
of the amount and due date of such required payment and such L/C Participant
shall pay to such Issuing Lender the amount specified on the applicable due
date. If any such amount is paid to such Issuing Lender after the date such
payment is due, such L/C Participant shall pay to such Issuing Lender on demand,
in addition to such amount, the product of (i) such amount, times (ii) the daily
average Federal Funds Rate as determined by the Administrative Agent during the
period from and including the date such payment is due to the date on which such
payment is immediately available to such Issuing Lender, times (iii) a fraction
the numerator of which is the number of days that elapse during such period and
the denominator of which is 360. A certificate of any Issuing Lender with
respect to any amounts owing under this Section 3.4.3 shall be conclusive in the
absence of manifest error. With respect to payment to any Issuing Lender of the
unreimbursed amounts described in this Section 3.4.3, if the L/C Participants
receive notice that any such payment is due (A) prior to 1:00 p.m. (New York
City time) on any Business Day, such payment shall be due that Business Day, and
(B) after 1:00 p.m. (New York City time) on any Business Day, such payment shall
be due on the following Business Day.
3.4.4 Whenever, at any time after any Issuing Lender has made
payment under any Letter of Credit and has received from any L/C Participant the
Revolving A Commitment Percentage or Revolving B Commitment Percentage, as
applicable, of such payment in accordance with this Section 3.4, such Issuing
Lender receives any payment related to such Letter of Credit (whether directly
from the Borrower or otherwise, or any payment of interest on account thereof),
such Issuing Lender will distribute to such L/C Participant its pro rata share
thereof in accordance with such L/C Participant's Revolving A Commitment
Percentage or Revolving B Commitment Percentage, as applicable; provided, that
in the event that any such payment received by such Issuing Lender shall be
required to be returned by such Issuing Lender, such L/C Participant shall
return to such Issuing Lender the portion thereof previously distributed by such
Issuing Lender to it.
Section 3.5 Reimbursement Obligation of the Borrower.
The Borrower agrees to reimburse each Issuing Lender on each
date such Issuing Lender or the Administrative Agent notifies the Borrower of
the date and amount of a draft paid under any Letter of Credit requested by the
Borrower for the amount of (i) such draft so paid and (ii) any taxes, fees,
charges or other costs or expenses incurred by any Issuing Lender in connection
with such payment. Each such payment shall be made to the appropriate Issuing
Lender at its address for notices specified herein in the currency in which such
Letter of Credit is denominated (except that, in the case of any Letter of
Credit denominated in any Optional Currency, in the event that such payment is
not made to the Issuing Lender on the date of receipt by the Borrower of such
notice, such payment shall be made in Dollars, in an amount equal to the Dollar
Equivalent of the amount of such payment) and in immediately available funds.
Interest shall be payable on any and all amounts remaining unpaid by the
Borrower under this Article III from the date such amounts become payable
(whether at stated maturity, by acceleration or otherwise) until payment in full
at the rate which would be payable on any outstanding Alternate Base Rate Loans
which were then overdue. If the Borrower fails to timely reimburse such Issuing
Lender on the date the Borrower receives the notice referred to in this Section
3.5, the Borrower shall be deemed to have timely given a Notice of Borrowing
pursuant to Section 2.2 hereunder to the Administrative Agent requesting the
Lenders to make a Alternate Base Rate Loan under the Revolving A Credit Facility
or the Revolving B Credit Facility, as applicable, on such date in an amount
equal to the Dollar Equivalent of the amount of such draft paid, together with
any taxes, fees, charges or other costs or expenses incurred by any Issuing
Lender and to be reimbursed pursuant to this Section 3.5 and, regardless
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of whether or not the conditions precedent specified in Article V have been
satisfied, the applicable Lenders shall make Alternate Base Rate Loans in such
amount, the proceeds of which shall be applied to reimburse such Issuing Lender
for the amount of the related drawing and costs and expenses. Any conversion by
the Issuing Lender of any payment to be made by the Borrower in respect of any
Letter of Credit denominated in any Optional Currency into Dollars in accordance
with this Section 3.5 (using the conversion mechanism set forth in the
definition of Dollar Equivalent) shall be conclusive and binding upon the
Borrower and the Lenders in the absence of manifest error; provided that upon
the request of any Lender, the Issuing Lender shall provide to such Lender a
certificate including reasonably detailed information as to the calculation of
such conversion. Notwithstanding the foregoing, nothing in this Section 3.5
shall obligate the Lenders to make such Alternate Base Rate Loans if the making
of such Alternate Base Rate Loans would violate the automatic stay under federal
bankruptcy laws.
Section 3.6 Obligations Absolute.
The Borrower's obligations under this Article III (including
without limitation the Reimbursement Obligation) shall be absolute and
unconditional under any and all circumstances and irrespective of any set-off,
counterclaim or defense to payment which the Borrower may have or have had
against any Issuing Lender or any beneficiary of a Letter of Credit. The
Borrower also agrees with each Issuing Lender that no Issuing Lender shall be
responsible for, and the Borrower's Reimbursement Obligation under Section 3.5
shall not be affected by, among other things, the validity or genuineness of
documents or of any endorsements thereon, even though such documents shall in
fact prove to be invalid, fraudulent or forged, or any dispute between or among
the Borrower and any beneficiary of any Letter of Credit or any other party to
which such Letter of Credit may be transferred or any claims whatsoever of the
Borrower against any beneficiary of such Letter of Credit or any such
transferee. No Issuing Lender shall be liable for any error, omission,
interruption or delay in transmission, dispatch or delivery of any message or
advice, however transmitted, in connection with any Letter of Credit, except for
errors or omissions caused by such Issuing Lender's gross negligence or willful
misconduct. The Borrower agrees that any action taken or omitted by any Issuing
Lender under or in connection with any Letter of Credit or the related drafts or
documents, if done in the absence of gross negligence or willful misconduct and
in accordance with the standards of care specified in the Uniform Customs and,
to the extent not inconsistent therewith, the UCC, shall be binding on the
Borrower and shall not result in any liability of such Issuing Lender to the
Borrower. The responsibility of each Issuing Lender to the Borrower in
connection with any draft presented for payment under any Letter of Credit
shall, in addition to any payment obligation expressly provided for in such
Letter of Credit, be limited to determining that the documents (including each
draft) delivered under such Letter of Credit in connection with such presentment
are in conformity with such Letter of Credit.
Section 3.7 Letter of Credit Payments.
If any draft shall be presented for payment under any Letter
of Credit, the Issuing Lender shall promptly notify the Borrower of the date and
Dollar or Optional Currency amount thereof.
Section 3.8 Effect of L/C Application.
To the extent that any provision of any L/C Application
related to any Letter of Credit is inconsistent with the provisions of this
Article III, the provisions of this Article III shall apply.
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ARTICLE IV
GENERAL LOAN PROVISIONS
Section 4.1 Interest and Utilization Fee.
4.1.1 Interest Rate Options. Subject to the provisions of this Section
4.1, at the election of the Borrower, the aggregate principal balance of any
Revolving Credit Loans shall bear interest at (i) the Alternate Base Rate plus
the Applicable Percentage for Alternate Base Rate Loans or (ii) the Offshore
Rate plus the Applicable Percentage for Offshore Rate Loans; provided that such
interest rate shall be increased by any amount required pursuant to Section
4.1.6. The Borrower shall select the rate of interest and Interest Period, if
any, applicable to any Revolving Credit Loan at the time a Notice of Borrowing
is given pursuant to Section 2.2 or at the time a Notice of
Conversion/Continuation is given pursuant to Section 4.2. Each Revolving Credit
Loan or portion thereof bearing interest based on the Alternate Base Rate shall
be a "Alternate Base Rate Loan," and each Revolving Credit Loan or portion
thereof bearing interest based on the Offshore Rate shall be an "Offshore Rate
Loan." Any Revolving Credit Loan or any portion thereof as to which the Borrower
has not duly specified an interest rate as provided herein shall be deemed a
Alternate Base Rate Loan. A Competitive Bid Loan will bear interest at the
Competitive Bid Rate specified in the Competitive Bid accepted by the Borrower
with respect to such Competitive Bid Loan.
4.1.2 Interest Periods. In connection with each Offshore Rate Loan and
each Competitive Bid Loan, the Borrower, by giving notice at the times described
in Section 4.1.1, shall elect an interest period (each, an "Interest Period") to
be applicable to such Revolving Credit Loan or such Competitive Bid Loan, which
Interest Period shall, unless otherwise agreed by the Administrative Agent and
the Lenders, be a period of one (1), two (2), three (3), six (6) or, if
available to all the Lenders, nine (9) or twelve (12), months with respect to
each Offshore Rate Loan and a period of one (1) day to one hundred eighty-three
(183) days with respect to each Competitive Bid Loan; provided that:
(a) the Interest Period shall commence on the date of advance of or
conversion to any Offshore Rate Loan and, in the case of immediately
successive Interest Periods, each successive Interest Period shall commence
on the date on which the next preceding Interest Period expires;
(b) if any Interest Period would otherwise expire on a day that is not
a Business Day, such Interest Period shall expire on the next succeeding
Business Day; provided, that if any Interest Period with respect to an
Offshore Rate Loan would otherwise expire on a day that is not a Business
Day but is a day of the month after which no further Business Day occurs in
such month, such Interest Period shall expire on the next preceding
Business Day;
(c) any Interest Period with respect to an Offshore Rate Loan 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 the relevant
calendar month at the end of such Interest Period;
(d) no Interest Period shall extend beyond the Termination Date; and
(e) there shall be no more than nine (9) Offshore Rate Loans
outstanding hereunder at any time (it being understood that, for purposes
hereof, Offshore Rate Loans with different Interest Periods shall be
considered as separate Offshore Rate Loans, even if they begin on the same
date, although borrowings, extensions and conversions may, in accordance
with the
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provisions hereof, be combined by the Borrower at the end of existing
Interest Periods to constitute a new Offshore Rate Loan with a single
Interest Period).
4.1.3 Default Rate. Subject to Section 11.3, unless otherwise agreed by
the Administrative Agent and the Required Lenders, upon the occurrence and
during the continuance of an Event of Default, (a) the Borrower shall no longer
have the option to request Offshore Rate Loans, (b) all outstanding Offshore
Rate Loans shall bear interest at a rate per annum equal to two percent (2%) in
excess of the rate then applicable to such Offshore Rate Loans until the end of
the applicable Interest Period and thereafter at a rate per annum equal to two
percent (2%) in excess of the rate then applicable to Alternate Base Rate Loans,
(c) all outstanding Alternate Base Rate Loans shall bear interest at a rate per
annum equal to two percent (2%) in excess of the rate then applicable to
Alternate Base Rate Loans and (iv) each outstanding Competitive Bid Loan shall
bear interest at a rate per annum equal to two percent (2%) in excess of the
rate then applicable to such Competitive Bid Loan. Interest shall continue to
accrue on the amount of Loans outstanding after the filing by or against the
Borrower of any petition seeking any relief in bankruptcy or under any act or
law pertaining to insolvency or debtor relief, whether state, federal or
foreign.
4.1.4 Interest Payment and Computation. Interest on each Alternate Base
Rate Loan shall be payable in arrears on the last Business Day of each calendar
quarter commencing on the first of such dates to occur after the Closing Date,
and interest on each Offshore Rate Loan and each Competitive Bid Loan shall be
payable on the last day of each Interest Period applicable thereto, and if such
Interest Period exceeds three (3) months, at the end of each three (3) month
interval during such Interest Period. Interest on all Loans and all fees payable
hereunder shall be computed on the basis of a 360-day year and assessed for the
actual number of days elapsed; provided that interest on Loans bearing interest
at a rate based upon the Prime Rate shall be computed on the basis of a 365- or
366-day year, as applicable.
4.1.5 Maximum Rate. In no contingency or event whatsoever shall the
aggregate of all amounts deemed interest hereunder charged or collected pursuant
to the terms of this Agreement exceed the highest rate permissible under any
Applicable Law which a court of competent jurisdiction shall, in a final
determination, deem applicable hereto. In the event that such a court determines
that the Lenders have charged or received interest hereunder in excess of the
highest applicable rate, the rate in effect hereunder shall automatically be
reduced to the maximum rate permitted by Applicable Law and the Lenders shall at
the Borrower's option (or if an Event of Default has occurred and is then
continuing, at the Administrative Agent's option), (i) promptly refund to the
Borrower any interest received by Lenders in excess of the maximum lawful rate
or (ii) apply such excess to the principal balance of the Obligations. It is the
intent hereof that the Borrower not pay or contract to pay, and that neither the
Administrative Agent nor any Lender receive or contract to receive, directly or
indirectly in any manner whatsoever, interest in excess of that which may be
paid by the Borrower under Applicable Law.
4.1.6 Utilization Fee. In the case of all Loans, on each day that
Utilization is greater than 50%, the otherwise applicable interest rate shall be
increased by the Applicable Percentage for Utilization Fee.
Section 4.2 Conversion and Continuation of Revolving Credit Loans.
Provided that no Default or Event of Default has occurred and is then
continuing, and subject to the terms of this Agreement, the Borrower shall have
the option (a) to convert all or any portion of its outstanding Alternate Base
Rate Loans in a principal amount equal to $5,000,000 or any whole multiple of
$1,000,000 in excess thereof into one or more Offshore Rate Loans and (b)(i) to
convert all or any part of its outstanding Offshore Rate Loans in a principal
amount equal to $1,000,000 or a whole multiple of $1,000,000 in excess thereof
into Alternate Base Rate Loans or (ii) to continue Offshore Rate
32
Loans as Offshore Rate Loans for an additional Interest Period; provided that if
any conversion or continuation is made prior to the expiration of any Interest
Period, the Borrower shall pay any amount required to be paid pursuant to
Section 4.9 hereof. Whenever the Borrower desires to convert or continue
Revolving Credit Loans as provided above, the Borrower shall give the
Administrative Agent irrevocable prior written notice in the form attached as
Exhibit E (a "Notice of Conversion/Continuation") not later than 12:00 noon (New
York City time) three (3) Business Days before the day on which a proposed
conversion or continuation of such Revolving Credit Loan is to be effective
(except in the case of a conversion of an Offshore Rate Loan to a Alternate Base
Rate Loan, in which case same day notice not later than 11:00 a.m. (New York
City time) by the Borrower shall be sufficient) specifying (A) the Revolving
Credit Loans to be converted or continued and, in the case of any Offshore Rate
Loan to be converted or continued, the last day of the Interest Period therefor,
(B) the effective date of such conversion or continuation (which shall be a
Business Day), (C) the principal amount of such Revolving Credit Loans to be
converted or continued and (D) the Interest Period to be applicable to such
converted or continued Offshore Rate Loan. The Administrative Agent shall
promptly notify the Lenders of such Notice of Conversion/Continuation.
Section 4.3 Facility Fee
The Borrower agrees to pay to the Administrative Agent, for the account
of the Lenders, a non-refundable facility fee (the "Facility Fee") at a rate per
annum equal to the Applicable Percentage for Facility Fee on the average daily
amount of the Aggregate Commitment during the applicable period, regardless of
usage (or if any Revolving Credit Loan or L/C Obligation remains outstanding
after the Termination Date on the aggregate average daily amount thereof). The
Facility Fee shall apply to the period commencing on the Closing Date and ending
on the termination of the Aggregate Commitment (or, if later, the date of
payment in full of all Revolving Credit Loans and L/C Obligations) and shall be
payable in arrears on the last Business Day of each calendar quarter for the
immediately preceding calendar quarter (or portion thereof), beginning with the
first such date to occur after the Closing Date (or after the Termination Date
upon demand). Such Facility Fee shall be distributed by the Administrative Agent
to the Lenders pro rata in accordance with the Lenders' respective Aggregate
Commitment Percentages.
Section 4.4 Pro Rata Treatment; Manner of Payment.
(a) Each payment by the Borrower on account of any facility fees shall
be applied pro rata according to the respective Revolving A Commitment
Percentages and Revolving B Commitment Percentages, as the case may be, of the
relevant Lenders. Each payment on account of principal or interest on the
Revolving A Credit Loans and the Revolving B Credit Loans shall be applied pro
rata according to the respective outstanding principal amounts of the Revolving
A Credit Loans and the Revolving B Credit Loans, as the case may be, then held
by the Lenders. Each borrowing by the Borrower from the Lenders hereunder, each
Letter of Credit denominated in Dollars, each optional prepayment and each
Commitment reduction by the Borrower shall be applied pro rata according to the
Revolving A Commitment Percentages and Revolving B Commitment Percentages;
provided that, so long as any Letter of Credit denominated in an Optional
Currency is outstanding, to the extent permitted by the availability under the
Revolving A Commitments and the Revolving B Commitments and to the extent, in
the Borrower's determination, practicable to do so, each borrowing, each
optional prepayment and each Commitment reduction by the Borrower and each
determination by the Borrower under Section 3.1.5 shall be applied so as to make
utilization of the Revolving A Commitment and the Revolving B Commitment as pro
rata as practicable.
(b) Each payment by any Credit Party on account of the principal of or
interest on the Loans or of any fee, commission or other amounts (including the
Reimbursement Obligation) payable to
33
the Lenders under this Agreement shall be made on the date specified for payment
under this Agreement to the Administrative Agent at the Administrative Agent's
Office for the account of the Lenders (other than as set forth below), in
Dollars, in immediately available funds and shall be made without any set-off,
counterclaim or deduction whatsoever. Such payments shall be made no later than
3:00 p.m. (New York City time) on the relevant date. Any payment received after
3:00 p.m. (New York City time) shall be deemed to have been made on the next
succeeding Business Day for all purposes. Each payment to the Administrative
Agent of the L/C Fees shall be made in like manner, but for the account of the
Issuing Lenders and the L/C Participants. Each payment to the Administrative
Agent of Administrative Agent's fees or expenses shall be made for the account
of the Administrative Agent and any amount payable to any Lender under Section
4.8, 4.9, 4.10, 4.11 or 13.2 shall be paid to the Administrative Agent for the
account of the applicable Lender. The Administrative Agent shall distribute any
such payments received by it for the account of any other Lender to such Lender
promptly following receipt thereof and shall wire advice of the amount of such
credit to such Lender. Subject to Section 4.1.2(b), if any payment under this
Agreement shall be specified to be made upon a day which is not a Business Day,
it shall be made on the next succeeding day which is a Business Day and such
extension of time shall in such case be included in computing any interest if
payable along with such payment.
Section 4.5 Crediting of Payments and Proceeds.
In the event that any Credit Party shall fail to pay any of the
Obligations when due and the Obligations have been accelerated pursuant to
Section 11.2, all payments received by the Lenders upon the Obligations and all
net proceeds from the enforcement of the Obligations shall be applied first to
all expenses then due and payable by the Credit Parties hereunder, then to all
indemnity obligations then due and payable by the Credit Parties hereunder, then
to all Administrative Agent's fees then due and payable, then to all commitment
and other fees and commissions then due and payable, then to accrued and unpaid
interest on the Loans, the Reimbursement Obligations and any termination
payments due in respect of a Hedging Agreement with any Lender or Affiliate of a
Lender (which Hedging Agreement is permitted hereunder) (pro rata in accordance
with all such amounts due), then to the principal amount of the Loans and
Reimbursement Obligations (pro rata in accordance with all such amounts due) and
then to the cash collateral account described in Section 11.2.2 hereof to the
extent of any L/C Obligations then outstanding, in that order.
Section 4.6 Adjustments.
Except to the extent that this Agreement expressly provides for
payments to be allocated to a particular Lender or to the Lenders under a
particular Credit Facility, if any Lender (a "Benefited Lender") shall at any
time receive any payment of all or part of the Obligations owing to it, or
interest thereon, or if any Lender shall at any time receive any collateral in
respect to the Obligations owing to it (whether voluntarily or involuntarily, by
set- off or otherwise) in a greater proportion than any such payment to and
collateral received by any other Lender, if any, in respect of the Obligations
owing to such other Lender, or interest thereon, such Benefited Lender shall
purchase for cash from the other Lenders such portion of each such other
Lender's Extensions of Credit, or shall provide such other Lenders with the
benefits of any such collateral, or the proceeds thereof, as shall be necessary
to cause such Benefited Lender to share the excess payment or benefits of such
collateral or proceeds ratably with each of the Lenders; provided, that if all
or any portion of such excess payment or benefits is thereafter recovered from
such Benefited Lender, such purchase shall be rescinded, and the purchase price
and benefits returned to the extent of such recovery, but without interest. The
Borrower agrees that each Lender so purchasing a portion of another Lender's
Extensions of Credit may exercise all rights of payment (including, without
limitation, rights of set-off) with respect to such portion as fully as if such
Lender were the direct holder of such portion.
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Section 4.7 Nature of Obligations of Lenders Regarding Extensions of
Credit; Assumption by the Administrative Agent.
The obligations of the Lenders under this Agreement to make the Loans
and issue or participate in Letters of Credit are several and are not joint or
joint and several. Unless the Administrative Agent shall have received notice
from a Lender prior to a proposed borrowing date that such Lender will not make
available to the Administrative Agent such Lender's ratable portion of the
Revolving Credit Loans to be borrowed (which notice shall not release such
Lender from its obligations hereunder), the Administrative Agent may assume that
such Lender has made such portion or amount available to the Administrative
Agent on the proposed borrowing date in accordance with Section 2.2.2, and the
Administrative Agent may, in reliance upon such assumption, make available to
the Borrower on such date a corresponding amount. If such amount is made
available to the Administrative Agent on a date after such borrowing date, such
Lender shall pay to the Administrative Agent on demand an amount, until paid,
equal to the product of (a) the amount not made available by such Lender in
accordance with the terms hereof, times (b) the daily average Federal Funds Rate
during such period as determined by the Administrative Agent, times (c) a
fraction the numerator of which is the number of days that elapse from and
including such borrowing date to the date on which such amount not made
available by such Lender in accordance with the terms hereof shall have become
immediately available to the Administrative Agent and the denominator of which
is 360. A certificate of the Administrative Agent with respect to any amounts
owing under this Section 4.7 shall be conclusive, absent manifest error. If such
Lender's Commitment Percentage of such Revolving Credit Loans is not made
available to the Administrative Agent by such Lender within three (3) Business
Days of such borrowing date, the Administrative Agent shall be entitled to
recover such amount made available by the Administrative Agent with interest
thereon at the rate per annum applicable to such borrowing, on demand, from the
Borrower. The failure of any Lender to make available its Commitment Percentage
of any Revolving Credit Loan or a Competitive Bid Loan shall not relieve it or
any other Lender of its obligation hereunder to make its Commitment Percentage
of such Revolving Credit Loan or any Competitive Bid Loan respectively,
available on the borrowing date, but no Lender shall be responsible for the
failure of any other Lender to make its Commitment Percentage of such Revolving
Credit Loan or any Competitive Bid Loan available on the borrowing date.
Section 4.8 Changed Circumstances.
4.8.1 Circumstances Affecting Offshore Rate Availability. If with
respect to any Interest Period: (i) the Administrative Agent or any Lender
(after consultation with the Administrative Agent) shall determine that for any
reason adequate and reasonable means do not exist for determining the Offshore
Rate for any requested Interest Period with respect to a proposed Offshore Rate
Loan or (ii) the Required Lenders reasonably and in good faith determine (which
determination shall be conclusive) and notify the Administrative Agent that the
LIBOR Rate will not adequately and fairly reflect the cost to the Required
Lenders of funding Offshore Rate Loans for such Interest Period, then the
Administrative Agent shall forthwith give notice thereof to the Borrower.
Thereafter, until the Administrative Agent notifies the Borrower that such
circumstances no longer exist, the obligation of the Lenders to make Offshore
Rate Loans and the right of the Borrower to convert any Revolving Credit Loan to
or continue any Revolving Credit Loan as an Offshore Rate Loan shall be
suspended, and the Borrower shall repay in full (or cause to be repaid in full)
the then outstanding principal amount of each such Offshore Rate Loan together
with accrued interest thereon, on the last day of the then current Interest
Period applicable to such Offshore Rate Loan or convert the then outstanding
principal amount of each such Offshore Rate Loan to a Alternate Base Rate Loan
as of the last day of such Interest Period.
4.8.2 Laws Affecting Offshore Rate Availability. If, after the date
hereof, the introduction of, or any change in, any Applicable Law or any change
in the interpretation or
35
administration thereof by any Governmental Authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance
by any Lender (or any of their respective Lending Offices) with any request or
directive (whether or not having the force of law) issued after the date hereof
of any such Governmental Authority, central bank or comparable agency, shall
make it unlawful or impossible for any of the Lenders (or any of their
respective Lending Offices) to honor its obligations hereunder to make or
maintain any Offshore Rate Loan, such Lender shall promptly give notice thereof
to the Administrative Agent and the Administrative Agent shall promptly give
notice to the Borrower and the other Lenders. Thereafter, until the
Administrative Agent notifies the Borrower that such circumstances no longer
exist, (i) the obligations of the affected Lender or Lenders to make Offshore
Rate Loans and the right of the Borrower to convert any Revolving Credit Loan of
the affected Lender or Lenders or continue any Revolving Credit Loan of the
affected Lender or Lenders as an Offshore Rate Loan shall be suspended and
thereafter the Borrower may select from the affected Lender or Lenders only
Alternate Base Rate Loans hereunder, (ii) if any of the Lenders may not lawfully
continue to maintain an Offshore Rate Loan to the end of the then current
Interest Period applicable thereto, the applicable Offshore Rate Loan of the
affected Lender or Lenders shall immediately be converted to a Alternate Base
Rate Loan for the remainder of such Interest Period and the Borrower shall pay
any amount required to be paid pursuant to Section 4.9 in connection therewith
and (iii) if any of the Lenders may not lawfully continue to maintain a
Competitive Bid Loan which bears interest at a rate based on the Offshore Rate
to the end of the then current Interest Period applicable thereto at such rate
of interest, such Competitive Bid Loan of the affected Lender shall immediately
be converted to a Alternate Base Rate Loan for the remainder of such Interest
Period. The Borrower shall repay the outstanding principal amount of any
Competitive Bid Loans converted into Alternate Base Rate Loans in accordance
with clause (iii) of this Section 4.8.2, together with all accrued but unpaid
interest thereon and any amount required to be paid pursuant to Section 4.9
hereof, on the last day of the Interest Period applicable to such Competitive
Bid Loans.
4.8.3 Increased Costs. If, after the date hereof, the introduction of,
or any change in, any Applicable Law, or in the interpretation or administration
thereof by any Governmental Authority, central bank or comparable agency charged
with the interpretation or administration thereof, or compliance by any of the
Lenders (or any of their respective Lending Offices) with any request or
directive (whether or not having the force of law) issued after the date hereof
of such Authority, central bank or comparable agency:
(a) shall subject any of the Lenders (or any of their respective
Lending Offices) to any tax, duty or other charge with respect to any Loan,
Letter of Credit or L/C Application or shall change the basis of taxation
of payments to any of the Lenders (or any of their respective Lending
Offices) of the principal of or interest on any Loan, Letter of Credit or
L/C Application or any other amounts due under this Agreement in respect
thereof (except for changes in the rate of tax on the overall net income of
any of the Lenders or any of their respective Lending Offices imposed by
the jurisdiction in which such Lender is organized or is or should be
qualified to do business or such Lending Office is located); or
(b) shall impose, modify or deem applicable any reserve (including,
without limitation, any imposed by the Board other than those used to
calculate the Offshore Rate), special deposit, insurance or capital or
similar requirement against assets of, deposits with or for the account of,
or credit extended by any of the Lenders (or any of their respective
Lending Offices) or shall impose on any of the Lenders (or any of their
respective Lending Offices) or the foreign exchange and interbank markets
any other condition affecting any Loan;
and the result of any event of the kind described in this Section 4.8.3, is to
increase the costs to any of the Lenders of maintaining any Offshore Rate Loan
or Competitive Bid Loan or of issuing or participating in
36
Letters of Credit or to reduce the yield or amount of any sum received or
receivable by any of the Lenders under this Agreement or any Letter of Credit or
L/C Application in an amount deemed by such Lender to be material, then such
Lender may promptly notify the Administrative Agent, and the Administrative
Agent shall promptly notify the Borrower of such fact and demand compensation
therefor and, within fifteen (15) days after such notice by the Administrative
Agent, the Borrower shall pay to such Lender such additional amount or amounts
as will compensate such Lender or Lenders for such increased cost or reduction;
provided, however, that to the extent any reduction in the rate of return on
such Lender's capital results both from its obligations hereunder and from
developments in its business or financial position not related to this
Agreement, such Lender shall, in determining the amount necessary to compensate
it under this Section 4.8.3, attempt in good faith to take account of the
relative contributions of such obligations hereunder and such other developments
or change in its financial position to such reduction. The Administrative Agent
and the applicable Lender will promptly notify the Borrower of any event of
which it has knowledge which will entitle such Lender to compensation pursuant
to this Section 4.8.3; provided that the Administrative Agent shall incur no
liability whatsoever to the Lenders or the Borrower in the event it fails to do
so. The amount of such compensation shall be determined, in the applicable
Lender's reasonable discretion, based upon the assumption that such Lender
funded its Commitment Percentage of the Offshore Rate Loans, or the amount of
any Competitive Bid Loans made by such Lender, in the London interbank market
and using any reasonable attribution or averaging methods which such Lender
deems appropriate and practical. A certificate of such Lender setting forth in
reasonable detail the basis for determining such amount or amounts necessary to
compensate such Lender shall be forwarded to the Borrower through the
Administrative Agent and shall be conclusively presumed to be correct save for
manifest error.
4.8.4 Mitigation. If any Lender demands compensation under Section
4.8.3 or if the obligation of any Lender to make Offshore Rate Loans is
suspended under Section 4.8.2, then such Lender will use reasonable efforts to
designate a different Lending Office for each affected Loan if such designation
would avoid the need for, or reduce the amount of, such compensation or permit
such Lender to make and maintain Offshore Rate Loans under Section 4.8.2 and
would not, in the sole judgment of such Lender, be otherwise disadvantageous to
such Lender. A certificate of such Lender setting forth the additional amount or
amounts required to compensate such Lender in respect of any increased costs,
the changes as a result of which such amounts are due and the manner of
computing such amounts shall be deemed conclusive, provided that the
determinations set forth in such certificate are made reasonably and in good
faith. If any Lender demands compensation from the Borrower under this Section
4.8 more than one hundred eighty (180) days after such Lender had knowledge of
the occurrence of the event giving rise to such compensation, the Borrower shall
not be obligated to reimburse such Lender for amounts incurred as a result of
the occurrence of such event more than one hundred eighty (180) days prior to
the date on which the Lender made such demand (provided that if the event giving
rise to the compensation or indemnification is retroactive, then the one hundred
eighty (180) day period referred to above shall be extended to include the
period of retroactive effect). Notwithstanding any other provisions of this
Section 4.8, no Lender shall demand compensation for any increased cost or
reduction referred to above if it shall not at the time be the general policy or
practice of such Lender to demand such compensation in similar circumstances
under comparable provisions of other credit agreements, if any.
4.8.5 Replacement of a Lender. If (a) any Lender demands compensation
under Section 4.8.3 (which compensation is not demanded by all of the Lenders)
and the Borrower deems such additional amounts to be material or (b) the
obligation of any Lender to make or maintain Offshore Rate Loans is suspended
under Section 4.8.1 or Section 4.8.2, then, in each case, the Borrower may, so
long as no Default or Event of Default has occurred and is continuing, obtain,
at the Borrower's expense, one or more other Lenders or, with the consent of the
Administrative Agent, one or more replacement financial institutions reasonably
satisfactory to the Administrative Agent (if not already a Lender) and willing
to replace such Lender, and such Lender shall execute and deliver to such
replacement Lender an
37
Assignment and Assumption with respect to such Lender's entire interest under
this Agreement for an amount equal to the principal balance of all Loans and L/C
Obligations held by the affected Lender and all accrued interest and fees with
respect thereto through the date of such assignment, provided that the Borrower
shall have paid to such affected Lender the compensation that it is entitled to
receive under Section 4.8 through the date of such assignment. Upon the
execution by such replacement Lender of such Assignment and Assumption and
compliance with the requirements of Section 13.8.2 hereof, such replacement
Lender shall succeed to all of such Lender's rights and duties under this
Agreement. If the Borrower exercises its election under this Section 4.8.5 to
replace a Lender, the Borrower shall pay the registration and processing fee
payable to the Administrative Agent under Section 13.8.2.
Section 4.9 Indemnity.
The Borrower hereby indemnifies each of the Lenders against any loss,
cost or expense incurred by a Lender as a result of (a) any failure by the
Borrower to borrow, convert or repay any amount in connection with any Offshore
Rate Loan hereunder on the date specified therefor in the applicable Notice of
Borrowing or Notice of Continuation/Conversion or any Competitive Bid accepted
by the Borrower in accordance with the terms of this Agreement, (b) any payment,
prepayment or conversion of any Offshore Rate Loan on a date other than the last
day of the Interest Period therefor. The amount of such loss or expense shall be
determined, in the applicable Lender's reasonable discretion, based upon the
assumption that such Lender funded its Commitment Percentage of the Offshore
Rate Loans in the London interbank market and using any reasonable attribution
or averaging methods which such Lender deems appropriate and practical. A
certificate of such Lender setting forth in reasonable detail the basis for
determining such amount or amounts necessary to compensate such Lender shall be
forwarded to the Borrower through the Administrative Agent and shall be
conclusively presumed to be correct save for manifest error.
Section 4.10 Capital Requirements.
If either (a) the introduction of, or any change or proposed change in,
or in the interpretation of, any Applicable Law, or (b) compliance with any
guideline or request issued after the date hereof from any central bank or
comparable agency or other Governmental Authority (whether or not having the
force of law), has or would have the effect of reducing the rate of return on
the capital of, or has affected or would affect the amount of capital required
to be maintained by, any Lender or any corporation controlling such Lender as a
consequence of, or with reference to any Lender's Commitment and other
commitments of this type, below the rate which the Lender or such other
corporation could have achieved but for such introduction, change or compliance
by an amount such Lender deems material, then within five (5) Business Days
after written demand by any such Lender, the Borrower shall pay to such Lender
from time to time as specified by such Lender additional amounts sufficient to
compensate such Lender or other corporation for such reduction; provided,
however, that to the extent any reduction in the rate of return on such Lender's
capital results both from its obligations hereunder and from developments in its
business or financial position not related to this Agreement, such Lender shall,
in determining the amount necessary to compensate it under this Section, attempt
in good faith to take account of the relative contributions of such obligations
hereunder and such other developments or change in its financial position to
such reduction. A certificate of such Lender setting forth in reasonable detail
the basis for determining such amounts necessary to compensate such Lender shall
be forwarded to the Borrower through the Administrative Agent and shall be
conclusively presumed to be correct save for manifest error.
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Section 4.11 Taxes.
4.11.1 Payments Free and Clear. Any and all payments by the Borrower
hereunder or under the Letters of Credit shall be made free and clear of and
without deduction for any and all present or future taxes, levies, imposts,
deductions, charges or withholding, and all liabilities with respect thereto,
excluding (i) in the case of each Lender and the Administrative Agent, income or
franchise taxes imposed on (or measured by) its net income imposed by any
Governmental Authority, (ii) in the case of each Lender, any withholding taxes
payable with respect to payments hereunder or under the other Loan Documents
under laws (including, without limitation, any statute, treaty, ruling,
determination or regulation) in effect on the Closing Date for such Lender (or
such later date on which such Lender becomes a Lender hereunder) or on the date,
if any, on which such Lender changes any applicable Lending Office by
designating a different applicable Lending Office (other than pursuant to
section 4.11.7(b)), but not excluding any withholding taxes payable solely as a
result of any change in such laws occurring after the Closing Date (or such
later date on which such Lender becomes a Lender hereunder) or after the date of
designation of such new Lending Office, as the case may be, and (iii) any branch
profits tax imposed by the United States of America or any similar tax imposed
by any other jurisdiction (all such non-excluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities being hereinafter referred to
as "Taxes"). If the Borrower shall be required by law to deduct any Taxes from
or in respect of any sum payable hereunder or under any Letter of Credit to any
Lender or the Administrative Agent, (A) the sum payable shall be increased as
may be necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section 4.11) such
Lender or the Administrative Agent (as the case may be) receives an amount equal
to the amount such party would have received had no such deductions been made,
(B) the Borrower shall make such deductions, (C) the Borrower shall pay the full
amount deducted to the relevant taxing authority or other authority in
accordance with applicable law, and (D) the Borrower shall deliver to the
Administrative Agent evidence of such payment to the relevant taxing authority
or other authority in the manner provided in Section 4.11.4. The Borrower shall
not, however, be required to pay any amounts pursuant to clause (A) of the
preceding sentence to any Foreign Lender or the Administrative Agent not
organized under the laws of the United States of America or a state thereof (or
the District of Columbia) if such Foreign Lender or the Administrative Agent
fails to comply with the requirements of Section 4.11.5.
4.11.2 Stamp and Other Taxes. In addition, the Borrower shall pay any
present or future stamp, registration, recordation or documentary taxes or any
other similar fees or charges or excise taxes, levies of the United States or
any state or political subdivision thereof or any applicable foreign
jurisdiction which arise from any payment made hereunder or from the execution,
delivery or registration of, or otherwise similarly with respect to, this
Agreement, the Loans, the Letters of Credit, the other Loan Documents, or the
perfection of any rights or security interest in respect thereto (hereinafter
referred to as "Other Taxes").
4.11.3 Indemnity.
(a) The Borrower shall indemnify each Lender and the Administrative
Agent ("Lender's Indemnitees") for the full amount of Taxes that the Borrower
should have withheld, but failed to withhold, pursuant to Section 4.11.1 and
Other Taxes (including, without limitation, any Taxes and Other Taxes imposed by
any jurisdiction on amounts payable under this Section 4.11) paid by such Lender
or the Administrative Agent (as the case may be) and any liability (including
interest and penalties, if any) arising therefrom or with respect thereto.
(b) (i) In the event a claim against Lender's Indemnitees arises that
is covered by the indemnity provisions of this Section 4.11.3, notice shall be
given promptly by such Lender or the Administrative Agent (as the case may be)
to Borrower.
39
(ii) If the Borrower would be liable for the entire amount of such
claim pursuant to this Section 4.11.3, then the Borrower shall have the
right to contest and defend by all appropriate legal proceedings any such
third-party claim and to control all settlements of any such third-party
claim (unless such Lender or the Administrative Agent agrees to assume the
cost of settlement and to forgo such indemnity) and to select lead counsel
to defend any and all such third-party claims at the sole cost and expense
of Borrower, as the case may be; provided, however, that Borrower may not
effect any settlement that could result in any cost, expense or liability
to Lender's Indemnitees unless such Lender or the Administrative Agent
consents in writing to such settlement, which consent shall not be
unreasonably withheld. Any of Lender's Indemnitees may select and engage
counsel to participate in any defense, in which event such counsel shall be
at the sole cost and expense of the party selecting and engaging such
counsel. In connection with any such claim, action or proceeding, the
parties shall cooperate with each other and provide each other with access
to relevant books and records in their possession.
(iii) If the Borrower would be liable for only a portion of such claim
pursuant to this Section 4.11.3, then the Borrower shall have the right to
consult with such Lender or the Administrative Agent (as the case may be)
regarding such claim, any settlement and the selection of lead counsel to
defend such claim.
(iv) If a Lender or the Administrative Agent shall become aware that it
is or may be entitled to receive a refund, credit or reduction (including
interest and penalties, if any) in respect of Taxes or Other Taxes, it
promptly shall notify the Borrower of the availability of such refund,
credit or reduction and shall, within thirty (30) days after receipt of a
request by the Borrower pursue or timely claim such refund, credit or
reduction at the Borrower's expense. If any Lender or the Administrative
Agent receives a refund or realizes a credit or reduction in tax in respect
of any Taxes or Other Taxes withheld by the Borrower or for which such
Lender or the Administrative Agent has received payment from the Borrower
hereunder, it promptly shall repay the amount of such refund to the
Borrower, net of all out-of-pocket expenses of the Administrative Agent or
such Lender and without interest (other than any interest paid by the
relevant Governmental Authority with respect to such refund; provided, that
the Borrower, upon the request of the Administrative Agent or such Lender,
agrees to repay the amount paid over to the Borrower (plus any penalties,
interest or other charges imposed by the relevant Governmental Authority)
to the Administrative Agent or such Lender in the event the Administrative
Agent or such Lender is required to repay such refund to such Governmental
Authority. This Section shall not be construed to require the
Administrative Agent or any Lender to make available its tax returns (or
any other information relating to its taxes which it deems confidential) to
the Borrower or any other person.
4.11.4 Evidence of Payment. Within thirty (30) days after the date of
any payment of Taxes or Other Taxes, the Borrower shall furnish to the
Administrative Agent, at its address referred to in Section 13.1, the original
or a certified copy of a receipt evidencing payment thereof or other evidence of
payment satisfactory to the Administrative Agent.
4.11.5 Delivery of Tax Forms. Each Foreign Lender shall deliver to the
Borrower and the Administrative Agent (or, in the case of a Participant, to the
Lender from which the related participation shall have been purchased) two
copies of either U.S. Internal Revenue Service Form W-8BEN or Form W-8ECI, or,
in the case of a Foreign Lender claiming exemption from U.S. federal withholding
tax under Section 871(h) or 881(c) of the Code with respect to payments of
"portfolio interest", a statement substantially in the form of Exhibit G and a
Form W-8BEN, or any subsequent versions thereof or successors thereto, properly
completed and duly executed by such Foreign Lender claiming complete exemption
from, or a reduced rate of, U.S. federal withholding tax on all payments by
40
the Borrower under this Agreement and the other Loan Documents. Such forms shall
be delivered by each Foreign Lender on or before the date it becomes a party to
this Agreement (or, in the case of any Participant, on or before the date such
Participant purchases the related participation). In addition, each Foreign
Lender shall deliver such forms promptly upon the obsolescence or invalidity of
any form previously delivered by such Foreign Lender. Each Foreign Lender shall
promptly notify the Borrower at any time it determines that it is no longer in a
position to provide any previously delivered certificate to the Borrower (or any
other form of certification adopted by the U.S. taxing authorities for such
purpose). Notwithstanding any other provision of this paragraph, a Foreign
Lender shall not be required to deliver any form pursuant to this paragraph that
such Foreign Lender is not legally able to deliver.
4.11.6 Survival. Without prejudice to the survival of any other
agreement of the Borrower hereunder, the agreements and obligations of the
Borrower contained in this Section 4.11 shall survive the payment in full of the
Obligations and the termination of the Aggregate Commitment, but shall be
limited in duration to the applicable statute of limitations for Taxes or Other
Taxes for which indemnification is sought.
4.11.7 Additional Provisions
(a) The Borrower shall not be required to indemnify any Lender or to
pay any additional amounts to any Lender in respect of Taxes or Other Taxes
pursuant to this Section 4.11 to the extent that (i) the obligation to pay
such additional amounts would not have arisen but for a failure by such
Lender to comply with the provisions of this Section 4.11 or (ii) the
obligation with respect to such Taxes or Other Taxes existed on the Closing
Date (or later date on which such Lender became a Lender hereunder) in
respect of such Lender or, with respect to payments to a newly designated
Lending Office, existed on the date such Lender designated such new Lending
Office with respect to a Loan (other than pursuant to Section 4.11.7(b)).
(b) Any Lender or the Administrative Agent claiming any additional
amount payable pursuant to this Section 4.11 shall use all reasonable
efforts (consistent with legal and regulatory restrictions) that would
avoid the need for or reduce the amount of any such additional amounts
which may thereafter accrue (including but not limited to filing any
certificate or document requested by the Borrower or changing the
jurisdiction of its applicable Lending Office).
ARTICLE V
CLOSING; CONDITIONS OF CLOSING AND BORROWING
Section 5.1 Closing.
The parties hereto shall execute and deliver this Agreement as of 11:00
a.m. (New York City time) on September 6, 2002 or on such other date and at such
other time as the parties hereto shall mutually agree.
Section 5.2 Conditions to Closing.
The obligations of the Lenders to close this Agreement are subject to
the satisfaction or waiver of each of the following conditions:
5.2.1 Executed Loan Documents. This Agreement and all other applicable
Loan Documents shall have been duly authorized, executed and delivered to the
Administrative Agent by the parties thereto, shall be in full force and effect
and no default (including without limitation a Default)
41
shall exist thereunder, and the Credit Parties shall have delivered original
counterparts thereof to the Administrative Agent.
5.2.2 Closing Certificates; etc.
(a) Officers' Certificates. The Administrative Agent shall have
received a certificate from a Responsible Officer on behalf of each Credit
Party, in form and substance reasonably satisfactory to the Administrative
Agent, to the effect that all representations and warranties of such Credit
Party contained in this Agreement and the other Loan Documents are true and
correct in all material respects; that such Credit Party is not in
violation of any of the covenants contained in this Agreement and the other
Loan Documents; that, after giving effect to the transactions contemplated
by this Agreement, no Default or Event of Default has occurred and is
continuing; and that each of the closing conditions has been satisfied or
waived (assuming satisfaction of the Administrative Agent where not advised
otherwise).
(b) General Certificates. The Administrative Agent shall have received
a certificate of the secretary, assistant secretary or general counsel of
each Credit Party certifying as to the incumbency and genuineness of the
signature of each officer of such Credit Party executing Loan Documents to
which it is a party and certifying that attached thereto is a true, correct
and complete copy of (A) the articles of incorporation of such Credit Party
and all amendments thereto, certified as of a recent date by the
appropriate Governmental Authority in its jurisdiction of incorporation,
(B) the bylaws of such Credit Party as in effect on the date of such
certifications, (C) resolutions duly adopted by the Board of Directors of
such Credit Party authorizing, as applicable, the borrowings contemplated
hereunder and the execution, delivery and performance of this Agreement and
the other Loan Documents to which it is a party, and (D) each certificate
required to be delivered pursuant to Section 5.2.2(c).
(c) Certificates of Good Standing. The Administrative Agent shall have
received long-form certificates as of a recent date of the good standing or
active status, as applicable, of the Credit Parties under the laws of their
respective jurisdictions of organization and short-form certificates as of
a recent date of the good standing of the Borrower under the laws of each
other jurisdiction where the Borrower is qualified to do business and where
a failure to be so qualified would have a Material Adverse Effect.
(d) Opinions of Counsel. The Administrative Agent shall have received
opinions in form and substance reasonably satisfactory to the
Administrative Agent of the Vice President, General Counsel and Secretary
of the Borrower and of Hunton & Xxxxxxxx, counsel to the Credit Parties,
addressed to the Administrative Agent and the Lenders with respect to the
Credit Parties, the Loan Documents and such other matters as the
Administrative Agent shall reasonably request.
5.2.3 Consents; Defaults.
(a) Governmental and Third Party Approvals. All governmental and third
party approvals necessary or, in the reasonable discretion of the
Administrative Agent, advisable in connection with the Refinancing and the
financing contemplated hereby shall have been obtained and be in full force
and effect, and all applicable waiting periods shall have expired without
any action being taken or threatened by any competent authority that would
restrain, prevent or otherwise impose adverse conditions on the Refinancing
or the financing thereof. Additionally, there shall not exist any judgment,
order, injunction or other restraint issued or filed or a hearing seeking
injunctive relief or other restraint pending or notified prohibiting the
transactions
42
contemplated by this Agreement and the other Loan Documents or otherwise
referred to herein or therein.
(b) No Event of Default. No Default or Event of Default shall have
occurred and be continuing.
5.2.4 No Material Adverse Effect. Since December 31, 2001 nothing shall
have occurred (and neither the Administrative Agent nor the Lenders shall have
become aware of any facts or conditions not previously known) which has had a
Material Adverse Effect.
5.2.5 Financial Matters.
(a) Financial Statements. The Administrative Agent and each Lender
shall have received the Annual Report on Form 10-K of the Borrower for the
fiscal year ended as of December 31, 2001 and the Quarterly Report on Form
10-Q of the Borrower for the six month period ended as of June 30, 2002.
(b) Projections. The Borrower shall have delivered to the
Administrative Agent and each Lender a projected consolidated balance sheet
of the Borrower and its Subsidiaries for each fiscal year of the Borrower
ending after the Closing Date continuing through and including fiscal year
2005, the related consolidated statements of projected cash flow, projected
changes in financial position and projected income and a description of the
underlying assumptions applicable thereto and such projections shall be
reasonably satisfactory to the Administrative Agent.
(c) Payment at Closing. The Borrower shall have paid any accrued and
unpaid fees or commissions due hereunder (including, without limitation,
reasonable legal fees and expenses) to the Administrative Agent and
Lenders, and to any other Person such amount as may be due thereto in
connection with the transactions contemplated hereby, including all taxes,
fees and other charges in connection with the execution, delivery,
recording, filing and registration of any of the Loan Documents.
5.2.6 Litigation. Except as set forth in the Current SEC Reports, as of
the Closing Date, there shall be no actions, suits or proceedings pending or, to
the best knowledge of the Borrower, threatened (i) with respect to this
Agreement or any other Loan Document or (ii) which the Administrative Agent or
the Required Lenders shall reasonably determine would have a Material Adverse
Effect.
5.2.7 Termination of Prior Bank Commitment. The Prior Bank Commitment
shall have been (or will be upon the initial borrowing hereunder and the
application of the proceeds thereof) (i) paid in full, (ii) the obligations of
the Borrower thereunder satisfied and the commitment of the lenders thereunder
terminated and (iii) either (A) all outstanding promissory notes issued by the
Borrower with respect thereto canceled and the originally executed copies
thereof returned to the Borrower or the Administrative Agent (who shall promptly
forward such notes to the Borrower) or (B) the Administrative Agent otherwise
shall have received evidence satisfactory to it that such Prior Bank Commitment
has been terminated.
Section 5.3 Conditions to All Extensions of Credit.
The obligation of each Lender to make any Extension of Credit hereunder
(including the initial Extension of Credit to be made hereunder) is subject to
the satisfaction of the following conditions precedent on the relevant borrowing
or issue date, as applicable:
43
5.3.1 Continuation of Representations and Warranties. The
representations and warranties contained in Article VI shall be true and correct
in all material respects on and as of such borrowing or issuance date with the
same effect as if made on and as of such date, except for any representation and
warranty made as of an earlier date, which representation and warranty shall
remain true and correct in all material respects as of such earlier date.
5.3.2 No Existing Default. Immediately after the making of the
requested borrowing, no Default or Event of Default shall have occurred and be
continuing hereunder (i) on the borrowing date with respect to such Loan or
after giving effect to the Loans to be made on such date or (ii) on the issue
date with respect to such Letter of Credit or after giving effect to such
Letters of Credit on such date.
5.3.3 Notice of Borrowing. The Administrative Agent shall have received
a Notice of Borrowing from the relevant Borrower in accordance with Section
2.2.1 and a Notice of Account Designation specifying the account or accounts to
which the proceeds of any Loans made after the Closing Date are to be disbursed.
The occurrence of the Closing Date and the acceptance by the Borrower of the
benefits of each Extension of Credit hereunder shall constitute a representation
and warranty by the Borrower to the Administrative Agent and each of the Lenders
that all the conditions specified in Sections 5.2 and 5.3 and applicable to such
borrowing have been satisfied as of that time. All of the certificates, legal
opinions and other documents and papers referred to in Sections 5.2 and 5.3,
unless otherwise specified, shall be delivered to the Administrative Agent for
the account of each of the Lenders and in sufficient counterparts or copies for
each of the Lenders and shall be in form and substance reasonably satisfactory
to the Administrative Agent.
ARTICLE VI
REPRESENTATIONS AND WARRANTIES
Section 6.1 Representations and Warranties.
To induce the Administrative Agent and Lenders to enter into this
Agreement and to induce the Lenders to make Extensions of Credit, the Borrower
hereby represents and warrants to the Administrative Agent and Lenders that:
6.1.1 Corporate Existence. The Borrower (a) is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation or formation; (b) has the requisite power and authority to own its
property and assets and to carry on its business as now conducted; (c) is
qualified to do business in every jurisdiction where such qualification is
required, except where the failure so to qualify would not have a Material
Adverse Effect; and (d) has all Governmental Approvals required by any
Applicable Law for it to conduct its business, except where the failure to have
such Governmental Approvals would not have a Material Adverse Effect.
6.1.2 Non-Contravention. Each Credit Party has the corporate power to
execute and deliver and to perform its obligations under the Loan Documents and
to borrow hereunder. The execution, delivery, and performance by each of the
Credit Parties of the Loan Documents to which it is a party have been duly
authorized by all necessary corporate action and do not and will not (i) require
any consent or approval of the shareholders of such Credit Party, (ii) violate
any provision of any law, rule, regulation (including, without limitation,
Regulation T, U or X of the Board), order, writ, judgment, injunction, decree,
determination, or award presently in effect having applicability to such Credit
Party or any Restricted Subsidiary or of the charter or bylaws of such Credit
Party or any Restricted Subsidiary,
44
(iii) result in a breach of or constitute a default under any indenture or loan
or credit agreement or any other agreement, lease, or instrument to which such
Credit Party or any Restricted Subsidiary is a party or by which it or its
properties may be bound or affected, or (iv) result in the creation of a Lien of
any nature upon or with respect to any of the properties now owned or hereafter
acquired by such Credit Party or any Restricted Subsidiary; and each Credit
Party and each Restricted Subsidiary is not in default under any such order,
writ, judgment, injunction, decree, determination, or award or any such
indenture, agreement, lease, or instrument or in default under any such law,
rule, or regulation, which default would have a Material Adverse Effect.
6.1.3 No Consent. No authorization, consent, approval, license,
exemption of, or filing or registration with, or any other action in respect of
any Governmental Authority is or will be necessary for the valid execution,
delivery or performance by any Credit Party of the Loan Documents to which it is
a party.
6.1.4 Execution and Delivery; Binding Obligations. The Loan Documents
have been duly executed and delivered by each Credit Party thereto. The Loan
Documents constitute legal, valid, and binding obligations of the Credit Parties
enforceable in accordance with their respective terms, except as such
enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar state or federal debtor relief laws from time to time in effect which
affect the enforcement of creditors' rights in general and the availability of
equitable remedies.
6.1.5 Title to Properties. The Borrower and each Restricted Subsidiary
has good and marketable title to all of the material assets and properties owned
by it, and valid leasehold interests in all material assets and properties
leased by it, free and clear of all Liens except such as are permitted by
Section 9.2 and except for covenants, restrictions, rights, easements and minor
irregularities in title which do not interfere with the occupation, use and
enjoyment by the Borrower or such Restricted Subsidiary of such properties and
assets in the normal course of business as presently conducted or materially
impair the value thereof for such business.
6.1.6 Subsidiaries. Each Subsidiary of the Borrower is listed on
Schedule 6.1.6, including the jurisdiction of organization, classes of capital
stock, ownership and ownership percentages thereof. All the outstanding capital
stock of the Borrower's Subsidiaries shown in Schedule 6.1.6 hereto as being
owned by the Borrower or any of its Subsidiaries have been duly authorized and
validly issued, are fully paid and nonassessable and are free and clear of any
Lien except as set forth on Schedule 9.2. No Subsidiary owns any capital stock
of the Borrower. Each of the Restricted Subsidiaries of the Borrower is duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization; and each Restricted Subsidiary (i) has the
requisite power and authority to own its property and assets and to carry on its
business as now conducted, (ii) is qualified to do business in every
jurisdiction where such qualification is required, except where the failure so
to qualify would not have a Material Adverse Effect and (iii) has all
Governmental Approvals required by any Applicable Law for it to conduct its
business, except where the failure to have such Governmental Approvals would not
have a Material Adverse Effect.
6.1.7 Financial Statements.
(a) The consolidated balance sheet of the Borrower and its Subsidiaries
as at December 31, 2001, and the related consolidated statements of
operations, shareholders' equity and cash flow of the Borrower and its
Subsidiaries for the fiscal year then ended, certified by KPMG LLP,
independent public accountants, copies of which have been delivered to the
Lenders, fairly present the consolidated financial condition of the
Borrower and its Subsidiaries as at such date
45
and the consolidated results of the operations of the Borrower and its
Subsidiaries for the period ended on such date, all prepared in accordance
with GAAP applied on a consistent basis.
(b) The unaudited consolidated balance sheet of the Borrower and its
Subsidiaries as at June 30, 2002, the related unaudited consolidated
statement of operations and cash flows of the Borrower and its Subsidiaries
for the fiscal quarter then ended, copies of which have been delivered to
the Lenders, fairly present the consolidated financial condition of the
Borrower and its Subsidiaries as at such date and the consolidated results
of the operations of the Borrower and its Subsidiaries for the period ended
on such date, subject to normal recurring year-end adjustments, all
prepared in accordance with GAAP (except for the omission of notes) applied
on a consistent basis; and there has been no material adverse change in
such condition or operations since December 31, 2001 that has had a
Material Adverse Effect.
6.1.8 Litigation. (a) There are no actions, suits, or proceedings
pending or, to the knowledge of a Responsible Officer of any Credit Party,
threatened, against any Credit Party or any Restricted Subsidiary or the
properties of any Credit Party or any Restricted Subsidiary before any
Governmental Authority or arbitrator that would have a Material Adverse Effect.
(b) Neither any Credit Party nor any Restricted Subsidiary is in
default (in any respect which would have a Material Adverse Effect) with respect
to any law, rule, regulation, order, writ, judgment, injunction, decree,
determination or award presently in effect and applicable to any Credit Party or
any Restricted Subsidiary.
6.1.9 Taxes. The Borrower and each Restricted Subsidiary has filed all
material tax returns (Federal, state, and local) required to be filed and paid
all taxes shown thereon to be due, including interest and penalties, or provided
adequate reserves, in accordance with GAAP, for the payment thereof.
6.1.10 ERISA. (a) Each Plan has complied with and has been administered
in all material respects in accordance with the applicable provisions of ERISA
and the Code. No Pension Plan has terminated under circumstances giving rise to
liability of the Borrower or any ERISA Affiliate to the PBGC under Section 4062,
4063 or 4064 of ERISA, which liability remains unpaid in whole or in part, and
no lien under Section 4068 of ERISA exists with respect to the assets of the
Borrower or any ERISA Affiliate. No Reportable Event has occurred with respect
to any Pension Plan, except for Reportable Events previously disclosed in
writing to the Lenders that would not have a Material Adverse Effect. No
accumulated funding deficiency within the meaning of Section 302 of ERISA or
Section 412 of the Code (whether or not waived) exists with respect to any
Pension Plan, nor does any lien under Section 302 of ERISA or Section 412 of the
Code exist with respect to any Pension Plan.
(b) Neither the Borrower nor any ERISA Affiliate has completely or
partially withdrawn from any one or more Multiemployer Plans under circumstances
which have given rise to or would give rise to withdrawal liability under ERISA
which, in the aggregate, would have a Material Adverse Effect and which has not
been fully paid as of the date hereof. Neither the Borrower nor any ERISA
Affiliate has received notice that any Multiemployer Plan is in reorganization
(within the meaning of Section 4241 of ERISA), is insolvent (within the meaning
of Section 4245 of ERISA), or has terminated under Title IV of ERISA, nor, to
the best knowledge of the Borrower, is any such reorganization, insolvency or
termination reasonably likely to occur, where such reorganization, insolvency or
termination has resulted in an increase in the contributions required to be made
to such Multiemployer Plan in an amount that would have a Material Adverse
Effect. Neither the Borrower nor any ERISA Affiliate has failed to make any
contribution to a Multiemployer Plan which is required under ERISA or an
applicable collective bargaining agreement in an amount which is material in the
aggregate (except to the extent there is a good
46
faith dispute as to whether any contribution is owed, the amount owed or the
existence of facts that would give rise to a withdrawal). Neither the Borrower
nor any ERISA Affiliate would become subject to any liability under ERISA in an
amount that would have a Material Adverse Effect if the Borrower or any such
ERISA Affiliate were to withdraw completely from all Multiemployer Plans as of
June 30, 2002.
6.1.11 No Default. No Default and no Event of Default has occurred and
is continuing.
6.1.12 Federal Reserve Regulations.
(a) Neither the Borrower nor any Subsidiary of the Borrower is engaged
principally, or as one of its important activities, in the business of
extending credit for the purpose of purchasing or carrying Margin Stock.
(b) No part of the proceeds of the Loans will be used, whether directly
or indirectly, and whether immediately, incidentally or ultimately, for any
purpose which entails a violation of, or which is inconsistent with, the
provisions of the Regulations of the Board, including, without limitation,
Regulations T, U or X.
6.1.13 Investment Company Act. Neither the Borrower nor any Subsidiary
is an "investment company" or a company controlled by an "investment company" as
each term is defined in the Investment Company Act of 1940 or subject to
regulation thereunder.
6.1.14 Environmental Matters. In the ordinary course of its business,
the Borrower conducts an ongoing review of the effect of Environmental Laws and
laws relating to occupational safety and health on the business, operations and
properties of the Borrower and its Subsidiaries, in the course of which it
identifies and evaluates associated liabilities and costs (including any capital
or operating expenditures required for clean-up, closure or restoration of
properties presently or previously owned, any capital or operating expenditures
required to achieve or maintain compliance with environmental protection and
occupational health and safety standards imposed by law or as a condition of any
license, permit or contract, any related constraints on operating activities,
including any periodic or permanent shutdown of any facility or reduction in the
level of or change in the nature of operations conducted thereat and any actual
or potential liabilities to third parties, including employees, and any related
costs and expenses). On the basis of this review, the Borrower represents and
warrants that applicable Environmental Laws and laws relating to occupational
health and safety do not, and would not have a Material Adverse Effect. The
Borrower and each Restricted Subsidiary has obtained and holds all material
permits, licenses and approvals required under Environmental Laws which are
necessary for the conduct of its business and the operation of its facilities,
and the Borrower and its Restricted Subsidiaries have not received any written
notice of any failure to be in compliance with the terms and conditions of such
permits, licenses and approvals, which failure would have a Material Adverse
Effect.
Section 6.2 Accuracy and Completeness of Information.
The financial statements referenced in Section 6.1.7, the financial
statements provided to the Administrative Agent pursuant to Sections 7.1.1(a)
and 7.1.1(b) and the written information with respect to the Credit Parties
contained in this Agreement, taken as a whole, does not contain any material
misstatement of fact or omit to state any material fact necessary to make the
statements therein, in light of the circumstances under which such statements
were then made, not misleading. There is no fact known to any Responsible
Officer of the Borrower or any equivalent officer of any other Credit Party as
of the Closing Date that would have a Material Adverse Effect that has not been
expressly disclosed herein, in the other Loan Documents, in the Confidential
Information Memorandum or in any other documents,
47
certificates and statements furnished to the Administrative Agent and the
Lenders as of the Closing Date for use in connection with the transactions
contemplated hereby.
Section 6.3 Labor Matters.
Neither any Credit Party nor any Restricted Subsidiary is engaged in
any unfair labor practice under the National Labor Relations Act, as amended,
that would have a Material Adverse Effect. There is (a) no unfair labor practice
complaint pending against any Credit Party or any Restricted Subsidiary or, to
the knowledge of any Responsible Officer of any Credit Party, threatened against
any Credit Party or any Restricted Subsidiary, before the National Labor
Relations Board, except for any such complaint that would not have a Material
Adverse Effect; (b) no strike, labor dispute, slowdown or stoppage pending
against any Credit Party or any Restricted Subsidiary or, to the knowledge of
any Responsible Officer of any Credit Party, threatened against any Credit Party
or any Restricted Subsidiary, except for any such strike, labor dispute,
slowdown or stoppage that would not have a Material Adverse Effect; and (c) no
union representation question exists with respect to the employees of any Credit
Party or any Restricted Subsidiary, except for any such question that would not
have a Material Adverse Effect.
Section 6.4 Survival of Representations and Warranties, Etc.
All representations and warranties set forth in this Article VI and all
representations and warranties contained in any certificate related hereto, or
any of the Loan Documents (including but not limited to any such representation
or warranty made in or in connection with any amendment thereto) shall
constitute representations and warranties made under this Agreement. All
representations and warranties made under this Article VI shall be made or
deemed to be made at and as of the Closing Date, shall survive the Closing Date
and shall not be waived by the execution and delivery of this Agreement, any
investigation made by or on behalf of the Lenders or any borrowing hereunder.
ARTICLE VII
FINANCIAL INFORMATION AND NOTICES
Until all the Obligations (other than Obligations under Hedging
Agreements) have been paid and satisfied in full and the Termination Date,
unless consent has been obtained in the manner set forth in Section 13.10
hereof, the Borrower will:
Section 7.1 Financial Statements, Etc.
7.1.1 Financial Statements. Furnish or cause to be furnished to the
Administrative Agent at its address as set forth in Section 13.1, or such other
office as may be designated in writing by the Administrative Agent from time to
time for delivery to each Lender:
(a) annually, as soon as available, but in any event within 120 days
after the last day of each Fiscal Year, a consolidated balance sheet of the
Borrower and its Subsidiaries, as at such last day of such Fiscal Year, and
consolidated statements of operations, shareholders' equity and cash flow
for the Borrower and its Subsidiaries for such Fiscal Year, each prepared
in accordance with GAAP, in reasonable detail, and audited by KPMG LLP or
any other firm of independent certified public accountants of recognized
national standing and whose opinion shall not be qualified with respect to
scope limitations imposed by the Borrower or any Subsidiary, the status of
the Borrower and its Subsidiaries as a going concern or the accounting
principles followed by the Borrower or any Subsidiary not in accordance
with GAAP;
48
(b) as soon as available, but in any event within 60 days after the end
of each of the first three fiscal quarterly periods of each Fiscal Year, a
consolidated balance sheet of the Borrower and its Subsidiaries as at the
last day of such fiscal quarter and consolidated statements of operations
and cash flows for the Borrower and its Subsidiaries for such fiscal
quarter, and for the then current Fiscal Year through the end of such
fiscal quarter, prepared in accordance with GAAP (except for omission of
notes and subject to year-end adjustments);
(c) at the same time as it delivers the financial statements required
under the provisions of clause (a) above, a certificate signed by the chief
financial officer or the chief executive officer of the Borrower to the
effect that such officer has made due inquiry and that to the best of the
knowledge of such officer except as stated therein no Default or Event of
Default has occurred hereunder and that such officer has made due inquiry
and that to the best of the knowledge of such officer except as stated
therein no default has occurred under any other agreement to which the
Borrower is a party or by which it is bound, or by which any of its
properties or assets may be affected, which would have a Material Adverse
Effect and specifying in reasonable detail the exceptions, if any, to such
statements;
(d) at the same time as it delivers the financial statements required
under the provisions of clauses (a) and (b) above, a statement of a
financial officer of the Borrower showing the Leverage Ratio and Interest
Coverage Ratio by reasonably detailed calculation thereof as of the last
day of the fiscal period to which such financial statements relate;
(e) at the same time as it delivers the financial statements required
under the provisions of clause (b) above, a certificate signed by a
financial officer of the Borrower and stating that such officer has made
due inquiry and that to the best of his knowledge no Default or Event of
Default has occurred and is continuing, or, if a Default or Event of
Default has occurred and is continuing, specifying the nature and extent
thereof;
(f) at the same time as it delivers the financial statements required
under the provisions of clauses (a) and (b) above, a statement of a
financial officer of the Borrower showing the aggregate principal amount of
Competitive Bid Loans outstanding as of the last day of the fiscal period
as to which such financial statements relate; and
(g) immediately, but in any event within three (3) Business Days after
a Responsible Officer of any Credit Party obtains knowledge of the
occurrence of any Default or Event of Default, a certificate of the chief
financial officer or the chief executive officer of the Borrower setting
forth the details thereof and the action which the Borrower is taking or
proposes to take with respect thereto.
7.1.2 Books and Records. Keep, and cause each Restricted Subsidiary to
keep, proper books of record and accounts in which full, true and correct
entries in accordance with GAAP shall be made of all dealings or transactions in
relation to its business and activities and the business and activities of its
Restricted Subsidiaries;
7.1.3 Additional Information. Furnish, and cause each Restricted
Subsidiary to furnish, with reasonable promptness such other financial
information as any Lender may reasonably request, provided that the Borrower
shall not be required to furnish any information that would result in violation
of any confidentiality agreement by which it is bound but, at the request of a
Lender, shall use its reasonable best efforts to obtain a waiver of such
agreement to permit furnishing of such information under this provision;
49
7.1.4 SEC Filings. Promptly after the same are available, furnish or
make available copies of all current reports on Form 8-K, quarterly reports on
Form 10-Q, annual reports on Form 10-K (or similar corresponding reports) and
registration statements or statements which the Borrower or any Subsidiary may
be required to file with the Securities and Exchange Commission (excluding
registration statements filed pursuant to employee stock option or benefit
plans);
7.1.5 Change in Debt Rating. Within three (3) Business Days after any
Responsible Officer of the Borrower receives notice of any change in the
Applicable LT Rating, furnish written notice of such change and the new
Applicable LT Rating to the Administrative Agent.
7.1.6 Notice of Environmental Matters. Furnish, and cause each
Restricted Subsidiary to furnish, to the Administrative Agent for delivery to
each Lender, as soon as reasonably practicable after receipt by the Borrower or
any Restricted Subsidiary, a copy of any written notice or claim to the effect
that the Borrower or any Restricted Subsidiary is liable to any Person as a
result of the presence or release of any Contaminant which claim would have a
Material Adverse Effect.
Section 7.2 Notice of Litigation and Other Matters.
Promptly (but in no event later than three (3) Business Days after a
Responsible Officer of any Credit Party obtains knowledge thereof ) furnish
telephonic (confirmed in writing to the Administrative Agent for delivery to
each Lender) or written notice to the Administrative Agent for delivery to each
Lender of:
(a) the commencement of all proceedings by or before any Governmental
Authority and all actions and proceedings in any court or before any
arbitrator against any of the Credit Parties or any Restricted Subsidiary
thereof or any of their respective properties, assets or businesses (i)
which in the reasonable judgment of the Credit Parties would have a
Material Adverse Effect, (ii) with respect to any material Debt of the
Credit Parties or any of their Restricted Subsidiaries or (iii) with
respect to any Loan Document;
(b) any notice of any violation received by any of the Credit Parties
or any Restricted Subsidiary thereof from any Governmental Authority
including, without limitation, any notice of violation of Environmental
Laws, which in the reasonable judgment of the Credit Parties in any such
case would have a Material Adverse Effect; and
(c) (i) any unfavorable determination letter from the Internal Revenue
Service regarding the qualification of a Plan under Section 401(a) of the
Code (along with a copy thereof) which would have a Material Adverse
Effect, (ii) all notices received by any of the Credit Parties or any ERISA
Affiliate of the PBGC's intent to terminate any Pension Plan or to have a
trustee appointed to administer any Pension Plan, (iii) all notices
received by any of the Credit Parties or any ERISA Affiliate from any
Multiemployer Plan sponsor concerning the imposition or amount of
withdrawal liability pursuant to Section 4202 of ERISA which would have a
Material Adverse Effect, (iv) the Credit Parties obtaining knowledge or
reason to know that the Credit Parties or any ERISA Affiliate has filed or
intends to file a notice of intent to terminate any Pension Plan under a
distress termination within the meaning of Section 4041(c) of ERISA, (v)
the occurrence of a Reportable Event, (vi) a failure to make any required
contribution to a Pension Plan which would have a Material Adverse Effect,
and (vii) the creation of any lien in favor of the PBGC or a Pension Plan
which would have a Material Adverse Effect.
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ARTICLE VIII
AFFIRMATIVE COVENANTS
Until all of the Obligations (other than any Obligations under any
Hedging Agreement) have been paid and satisfied in full and the Aggregate
Commitment has expired or been terminated, unless consent has been obtained in
the manner provided for in Section 13.10, the Borrower will:
Section 8.1 Payment of Taxes, etc.
Pay and discharge, and cause each Restricted Subsidiary to pay and
discharge, all material taxes, assessments and governmental charges or levies
imposed upon it or upon its income or profits, or upon any properties belonging
to it, prior to the date on which penalties attach thereto, and all lawful
material claims which, if unpaid, might become a lien or charge upon any
properties of the Borrower or any Restricted Subsidiary; provided, however, that
neither the Borrower nor any Restricted Subsidiary shall be required to pay any
such tax, assessment, charge, levy or claim which is being contested in good
faith and by proper proceedings and against which it is maintaining adequate
reserves in accordance with GAAP.
Section 8.2 Maintenance of Insurance.
Maintain, and cause each Restricted Subsidiary to maintain, insurance
with responsible and reputable insurance companies or associations (or, to the
extent consistent with prudent business practice, through its own program of
self-insurance) in such amounts and covering such risks as is usually carried by
companies engaged in similar businesses and owning similar properties in the
same general areas in which the Borrower or such Restricted Subsidiary operates.
Section 8.3 Preservation of Corporate Existence, etc.
Preserve and maintain, and cause each Restricted Subsidiary to preserve
and maintain, its corporate existence and material rights, franchises and
privileges; provided, however, that nothing herein contained shall prevent any
merger or consolidation permitted by Section 9.3; and provided further that the
Borrower shall not be required to preserve or to cause any Restricted Subsidiary
to preserve its corporate existence or any such rights, franchises or privileges
if the Borrower shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Borrower and its Restricted
Subsidiaries taken as a whole and that the loss thereof is not disadvantageous
in any material respect to the Borrower and its Restricted Subsidiaries taken as
a whole.
Section 8.4 Compliance with Laws, etc
Comply, and cause each Restricted Subsidiary to comply, with the
requirements of all applicable laws, rules, regulations and orders (other than
laws, rules, regulations, and orders which are not final and are being contested
in good faith by proper proceedings) of any Governmental Authority (including
Labor Laws and Environmental Laws), noncompliance with which would have a
Material Adverse Effect.
Section 8.5 Compliance with ERISA and the Code.
Comply, and cause each of its ERISA Affiliates to comply, with the
minimum funding standards under ERISA with respect to its Pension Plans and use
its best efforts, and cause each ERISA
51
Affiliates to use its best efforts, to comply in all material respects with all
other applicable provisions of ERISA and the Code and the regulations and
interpretations promulgated thereunder.
Section 8.6 Compliance with Contracts, etc.
Perform, and cause each Restricted Subsidiary to perform, all of its
obligations under the terms of each mortgage, indenture, security agreement,
loan agreement or credit agreement and each other agreement, contract or
instrument by which it is bound, except where the failure to do so would not
have a Material Adverse Effect.
Section 8.7 Access to Properties.
Permit, and cause its Restricted Subsidiaries to permit, any
representatives designated by the Administrative Agent or any Lender, upon
reasonable prior notice to the Borrower, to visit the properties of the Borrower
or any Restricted Subsidiary at reasonable times and as often as reasonably
requested.
Section 8.8 Conduct of Business.
Engage in, and cause its Restricted Subsidiaries to engage in, only in
those businesses in which the Borrower and its Restricted Subsidiaries are
engaged on the Closing Date and such other businesses reasonably related or
complementary thereto or in furtherance thereof, or in other lines of business
which are insignificant when viewed in the overall context of the businesses
then engaged in by the Borrower and its Restricted Subsidiaries taken as a
whole.
Section 8.9 Use of Proceeds.
Use the proceeds of the Loans solely for the purposes set forth in
Section 2.1.2.
Section 8.10 Additional Guarantors.
In the event that any Person (other than any Subsidiary of the Borrower
existing on the Closing Date) becomes a wholly-owned (directly or indirectly)
Material Domestic Subsidiary after the Closing Date pursuant to an acquisition
(whether of stock or assets) or a merger, Borrower shall, within thirty (30)
days after the end of the fiscal quarter in which such Person becomes a Material
Domestic Subsidiary, cause such Material Domestic Subsidiary to become a
Guarantor by execution and delivery of a Guarantor Joinder Agreement and by
delivery of such other documentation as the Administrative Agent may reasonably
request in connection therewith, including, without limitation, certified
resolutions of such Material Domestic Subsidiary, certified organizational and
authorizing documents of such Material Domestic Subsidiary, favorable opinions
of counsel to such Material Domestic Subsidiary (which shall cover, among other
things, the legality, validity, binding effect and enforceability of the
Guarantor Joinder Agreement) and other items of the type required to be
delivered pursuant to Section 5.2.2, all in form, content and scope reasonably
satisfactory to the Administrative Agent; provided, however, that no such Person
which becomes a Material Domestic Subsidiary pursuant to any such acquisition or
merger shall be required to become a Guarantor if the incurrence of such
obligation would violate any material agreement binding on such Person and in
existence on the date of such acquisition or merger.
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ARTICLE IX
NEGATIVE COVENANTS
Until all of the Obligations (other than any Obligations under any
Hedging Agreement) have been paid and satisfied in full and Aggregate Commitment
has expired or been terminated unless consent has been obtained in the manner
set forth in Section 13.10, the Borrower will not:
Section 9.1 Financial Covenants.
9.1.1 Maximum Leverage Ratio. Commencing with the end of the first
fiscal quarter ending after the Closing Date, permit the Leverage Ratio as of
the end of each fiscal quarter to be greater than 55%.
9.1.2 Minimum Interest Coverage Ratio. Commencing with the end of the
first fiscal quarter ending after the Closing Date, permit the Interest Coverage
Ratio as of the end of each fiscal quarter to be less than 3.00 to 1.00.
Section 9.2 Limitations on Liens.
Create, incur, assume or suffer to exist, or permit any Restricted
Subsidiary to create, incur, assume or suffer to exist, any Lien on, or with
respect to, any of their assets or properties (including without limitation
shares of capital stock or other ownership interests), real or personal, whether
now owned or hereafter acquired, except:
(a) Liens existing on the Closing Date and set forth on Schedule 9.2;
(b) Liens for taxes, assessments and other governmental charges or
levies not yet due or as to which the period of grace, if any, related thereto
has not expired or which are being contested in good faith and by appropriate
proceedings if adequate reserves are maintained to the extent required by GAAP;
(c) The claims of materialmen, mechanics, carriers, warehousemen,
processors or landlords for labor, materials, supplies or rentals incurred in
the ordinary course of business, (i) which are not overdue for a period of more
than thirty (30) days or (ii) which are being contested in good faith and by
appropriate proceedings if adequate reserves are maintained to the extent
required by GAAP;
(d) Liens consisting of deposits or pledges made in the ordinary course
of business (i) in connection with, or to secure payment of, obligations under
workers' compensation, unemployment insurance or similar legislation or
obligations under customer service contracts, or (ii) to secure (or to obtain
letters of credit that secure) the performance of tenders, statutory
obligations, surety bonds, appeal bonds, bids, leases (other than Capital
Leases), performance bonds, purchase, construction or sales contracts and other
similar obligations, in each case not incurred or made in connection with the
borrowing of money, the obtaining of advances or credit or the payment of the
deferred purchase price of property;
(e) Liens constituting encumbrances in the nature of zoning
restrictions, easements and rights or restrictions of record on the use of real
property, which in the aggregate are not substantial in amount and which do not,
in any case, detract from the value of any material parcel of real property or
impair the use thereof in the ordinary conduct of business;
53
(f) Liens in favor of the Administrative Agent for the benefit of the
Administrative Agent and the Lenders;
(g) Liens on the property or assets of any Restricted Subsidiary
existing at the time such Restricted Subsidiary becomes a Subsidiary of a Credit
Party and not incurred in contemplation thereof, as long as the outstanding
principal amount of the Debt secured thereby is not voluntarily increased by
such Restricted Subsidiary after the date such Restricted Subsidiary becomes a
Subsidiary of such Credit Party;
(h) Liens on the property or assets of the Credit Parties or any
Restricted Subsidiary securing Debt which is incurred to finance the acquisition
of such property or assets, provided that (i) each such Lien shall be created
simultaneously with, or within twelve months after, the acquisition of the
related property or assets; (ii) each such Lien does not at any time encumber
any property other than the related property or assets financed by such Debt;
(iii) the principal amount of Debt secured by each such Lien is not increased;
and (iv) the principal amount of Debt secured by each such Lien shall at no time
exceed 100% of the original purchase price of such related property or assets at
the time acquired;
(i) Liens consisting of judgment or judicial attachment Liens, provided
that (i) the claims giving rise to such Liens are being diligently contested in
good faith by appropriate proceedings, (ii) adequate reserves for the
obligations secured by such Liens have been established and (iii) enforcement of
such Liens has been stayed;
(j) Liens created or deemed to exist in connection with any asset
securitization program (including any related filings of any financing
statements), but only to the extent that such Liens attach to the assets
actually sold, contributed, financed or otherwise conveyed or pledged in
connection with such securitization program;
(k) Liens on property or assets of the Borrower or any Restricted
Subsidiary securing indebtedness owing to the Borrower or any other Credit
Party;
(l) Liens on coal reserves leased by the Borrower or by any Restricted
Subsidiary as lessee, securing Debt to the lessors thereof, arising out of such
leases;
(m) Liens on any Margin Stock purchased or carried by the Borrower or
any of its Subsidiaries;
(n) The extension, renewal or replacement of any Lien permitted by
clauses (a), (g), (h) or (l), but only if the principal amount of Debt secured
by the Lien immediately prior thereto is not increased and the Lien is not
extended to other property; and
(o) In addition to any Lien permitted by clauses (a) through (n),
immediately after giving effect to any concurrent repayment of secured Debt,
Liens securing Debt of the Borrower or any Restricted Subsidiary so long as the
sum of (A) the aggregate principal amount of all such secured Debt plus (B) the
aggregate amount of Consolidated Lease Rentals (excluding Consolidated Lease
Rentals under Leases in effect as of December 31, 2001 (and any renewal,
extension or replacement thereof) and Leases with respect to property not owned
by the Borrower on such date), discounted to present value at ten percent (10%),
compounded annually, arising out of all Sale and Leaseback Transactions to which
the Borrower or any of its Restricted Subsidiaries is then a party (including
Sale and Leaseback Transactions, if any, entered into pursuant to Section 9.9),
does not exceed 10% of Consolidated Net Worth; provided that the sale or
transfer of (i) coal, oil, gas or other minerals in place for a period of time
until, or in an amount such that, the transferee will realize therefrom a
specified amount of money (however
54
determined) or a specified amount of such coal or other minerals or (ii) any
other interest in property of the character commonly referred to as a
"production payment" shall not be deemed to constitute Debt secured by a Lien.
Section 9.3 Disposition of Debt and Shares of Restricted Subsidiaries;
Issuance of Shares by Restricted Subsidiaries; Consolidation, Merger or
Disposition of Assets.
(a) Sell or otherwise dispose of, or permit any Restricted Subsidiary
to sell or otherwise dispose of, any capital stock or any Debt of any
Restricted Subsidiary, other than the sale of the capital stock of any
member of the Pittston Minerals Group, (b) in the case of any Restricted
Subsidiary, issue, sell or otherwise dispose of any of such Restricted
Subsidiary's capital stock (other than directors' qualifying shares, to
satisfy preemptive rights or in connection with a split or combination of
shares or a dividend in shares) except to the Borrower or another
Restricted Subsidiary, (c) liquidate, wind-up or dissolve itself (or suffer
any liquidation or dissolution), or permit any Restricted Subsidiary to
liquidate, wind-up or dissolve itself (or suffer any liquidation or
dissolution), or (d) directly or indirectly, or permit any Restricted
Subsidiary to directly or indirectly, consolidate with or merge with or
into or sell, lease or otherwise dispose of all or substantially all of its
assets (other than the sale of all or any part of the assets of any member
of the Pittston Minerals Group) to any Person, unless, after giving effect
thereto, all of the following conditions shall be met:
(i) the Leverage Ratio shall not be greater than 0.55 to 1.00 and
the Interest Coverage Ratio shall not be less than 3.00 to 1.00;
(ii) in the case of a merger or consolidation, (A) if the
Borrower is a party thereto, the Borrower shall be the surviving
corporation, (B) if the Borrower is not a party thereto and another
Credit Party is a party thereto, a Credit Party shall be the surviving
corporation and (C) if no Credit Party is a party thereto, a Restricted
Subsidiary shall be the surviving corporation;
(iii) in the case of a liquidation, winding-up or dissolution,
any Credit Party (other than the Borrower) or any Restricted Subsidiary
may liquidate, wind-up or dissolve itself into a Credit Party or a
Restricted Subsidiary; and
(iv) no Default or Event of Default has occurred and is
continuing.
Provided that the conditions of this Section 9.3 are satisfied, none of the
foregoing provisions shall be deemed to prohibit the Borrower or any of its
Restricted Subsidiaries from selling, transferring, assigning or otherwise
disposing of Margin Stock for fair market value or selling, contributing,
financing or otherwise conveying or pledging assets in connection with any asset
securitization program permitted by Section 9.2(j).
Section 9.4 Transactions with Affiliates.
Engage, or permit any Restricted Subsidiary to engage, directly or
indirectly, in any transaction with an Affiliate (other than a Credit Party) on
terms more favorable to the Affiliate than would have been obtainable in
arm's-length dealing.
Section 9.5 Compliance with Regulations T, U and X.
In the case of the Borrower and any Subsidiary of the Borrower,
purchase or carry any Margin Stock or incur, create or assume any obligation for
borrowed money or other liability or make any investment, capital contribution,
loan, advance or extension of credit or sell or otherwise dispose of any
55
assets or pay any dividend or make any other distribution to its shareholders or
take or permit to be taken any other action or permit to occur or exist any
event or condition if such action, event or condition would result in this
Agreement, the Loans, the use of the proceeds thereof or the other transactions
contemplated hereby violating Regulation T, U or X.
Section 9.6 Hedging Agreements.
Enter into or permit to exist, or permit any Restricted Subsidiary to
enter into or permit to exist, Hedging Agreements for the purpose of speculation
and not for the purpose of hedging risks associated with the businesses of the
Borrower and its Restricted Subsidiaries.
Section 9.7 ERISA.
(a) Terminate, or permit any of its ERISA Affiliates to terminate, any
Pension Plan under circumstances which would reasonably result in a material
liability of the Borrower or any ERISA Affiliate to the PBGC, or permit to exist
the occurrence of any Reportable Event or any other event or condition which
presents a material risk of such a termination by the PBGC; (b) engage, or
permit any of its Subsidiaries or any Pension Plan to engage, in a "prohibited
transaction" (within the meaning of Section 406 of ERISA or Section 4975 of the
Code) that would reasonably result in material liability of the Borrower or any
of its Restricted Subsidiaries; (c) fail, or permit any of its Restricted
Subsidiaries to fail, to make any contribution to a Multiemployer Plan which is
required by ERISA or an applicable collective bargaining agreement in an amount
which is material (except to the extent there is a good faith dispute as to
whether any contribution is owed, the amount owed or the existence of facts that
would give rise to a withdrawal); or (d) completely or partially withdraw, or
permit any of its ERISA Affiliates to completely or partially withdraw, from a
Multiemployer Plan, if such complete or partial withdrawal will result in any
material withdrawal liability under Title IV of ERISA; or (e) enter into any new
Plan or modify any existing Plan so as to increase its obligations thereunder
which could result in any material liability to the Borrower or any ERISA
Affiliate. For purposes of this Section 9.7, an amount is material if it would
have a Material Adverse Effect after aggregation with all other liabilities
described in this Section 9.7.
Section 9.8 Limitations on Acquisitions.
Acquire, or permit any Restricted Subsidiary to acquire, all or any
portion of the capital stock or other ownership interest in any Person which is
not then a Restricted Subsidiary or any assets collectively constituting a
business unit of a Person which is not then a Restricted Subsidiary, unless:
(a) the aggregate consideration paid by the acquiror in such
transaction does not exceed 10% of Consolidated Total Assets as of the end of
the Fiscal Year most recently ended; or
(b) in the event that the aggregate consideration to be paid by the
acquiror in such transaction exceeds 10% of Consolidated Total Assets as of the
end of the Fiscal Year most recently ended, (i) the Borrower shall have notified
the Administrative Agent at least five Business Days prior to the consummation
thereof that such an acquisition is pending (furnishing with such information
reasonably acceptable to the Administrative Agent demonstrating pro forma
compliance with the financial covenants set forth in Section 9.1), and (ii)
after giving effect to such acquisition on a pro forma basis, no Default or
Event of Default would exist under Section 9.1. Any notice delivered to the
Administrative Agent pursuant to this Section 9.8 shall be kept confidential by
the Administrative Agent in accordance with Section 13.9 below.
Section 9.9 Sale Leaseback Transactions.
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Sell or transfer, or permit any Restricted Subsidiaries to sell or
transfer, any material property or assets owned by the Borrower or any
Restricted Subsidiary on the Closing Date to any Person (other than any Credit
Party) with the intention of taking back a lease of such property or assets or
any similar property or assets, if the sum of (A) the amount of Consolidated
Lease Rentals, discounted to present value at 10%, compounded annually, which
would arise out of such proposed Sale and Leaseback Transaction, plus (B) the
aggregate amount of Consolidated Lease Rentals (excluding Consolidated Lease
Rentals under Leases in effect as of December 31, 2001 (and any renewal,
extension or replacement thereof) and Leases with respect to property not owned
by the Borrower on such date), discounted to present value at ten percent (10%),
compounded annually, arising out of all other Sale and Leaseback Transactions to
which the Borrower or any of its Restricted Subsidiaries is then a party, plus
(C) the aggregate principal amount of all Debt of the Borrower or any Restricted
Subsidiary secured by Liens incurred in reliance on Section 9.2(o), would exceed
10% of Consolidated Net Worth.
Section 9.10 Limitations on Investments.
Make or permit to exist, or permit any Restricted Subsidiary to make or
permit to exist, any Investment, other than Investments which are:
(a) cash and Cash Equivalents;
(b) current assets generated in the ordinary course of business;
(c) accounts receivable created, acquired or made in the ordinary
course of business and payable or dischargeable in accordance with customary
trade terms;
(d) Investments consisting of capital stock, obligations, securities or
other property received in settlement of accounts receivable (created in the
ordinary course of business) from bankrupt obligors;
(e) advances to employees for moving and travel expenses, drawing
accounts and similar expenditures in the ordinary course of business;
(f) advances or loans to directors, officers and employees that do not
exceed $25,000,000 in the aggregate at any one time outstanding;
(g) advances or loans to customers and suppliers in the ordinary course
of business in an aggregate amount consistent with the past practice of the
Person making such advance or loan;
(h) loans to shareholders intended to constitute dividends on, or
payment on account of, any capital stock;
(i) Investments or Support Obligations by the Borrower and its
Restricted Subsidiaries existing on the Closing Date;
(j) Investments by the Borrower or its Restricted Subsidiaries in any
Credit Party or any other Subsidiary (provided that such Investment would not
otherwise constitute a breach of Section 9.8);
(k) Support Obligations of the Borrower or its Restricted Subsidiaries
for the benefit of any Credit Party or any other Subsidiary;
57
(l) acquisitions permitted by Section 9.8 and Investments consisting of
capital stock, obligations, securities or other property received in connection
with any merger or sale permitted by Section 9.3;
(m) Investments in connection with the management of Pension Plans and
other benefit plans of the Borrower and its Subsidiaries (including without
limitation The Pittston Company Employee Welfare Benefit Trust);
(n) Hedging Agreements permitted by Section 9.6; and
(o) Investments of a nature not contemplated in the foregoing
subsections in an amount not to exceed 10% of Consolidated Net Worth.
ARTICLE X
GUARANTY
Section 10.1 Guaranty of Payment.
Subject to Section 10.7 below, each Guarantor hereby unconditionally
guarantees to each Lender and the Administrative Agent the prompt payment of the
Guaranteed Obligations in full when due (whether at stated maturity, as a
mandatory prepayment, by acceleration or otherwise). This guaranty is a guaranty
of payment and not solely of collection and is a continuing guaranty and shall
apply to all Guaranteed Obligations whenever arising.
Section 10.2 Obligations Unconditional.
The obligations of the Guarantors hereunder are absolute and
unconditional, irrespective of the value, genuineness, validity, regularity or
enforceability of this Agreement, or any other agreement or instrument referred
to herein, to the fullest extent permitted by Applicable Law, irrespective of
any other circumstance whatsoever which might otherwise constitute a legal or
equitable discharge or defense of a surety or guarantor. Each Guarantor agrees
that this guaranty may be enforced by the Lenders without the necessity at any
time of resorting to or exhausting any security or collateral and without the
necessity at any time of having recourse to this Agreement or any other Loan
Document or any collateral, if any, hereafter securing the Guaranteed
Obligations or otherwise and each Guarantor hereby waives the right to require
the Lenders to proceed against any other Guarantor or any other Person
(including a co-guarantor) or to require the Lenders to pursue any other remedy
or enforce any other right. Each Guarantor further agrees that it shall have no
right of subrogation, indemnity, reimbursement or contribution against any other
Guarantor (or any other guarantor of the Guaranteed Obligations) for amounts
paid under this guaranty until such time as the Lenders have been paid in full,
all commitments under this Agreement have been terminated and no Person or
Governmental Authority shall have any right to request any return or
reimbursement of funds from the Lenders in connection with monies received under
this Agreement. Each Guarantor further agrees that nothing contained herein
shall prevent the Lenders from suing on this Agreement or any other Loan
Document or foreclosing its security interest in or Lien on any collateral, if
any, securing the Guaranteed Obligations or from exercising any other rights
available to it under this Agreement or any instrument of security, if any, and
the exercise of any of the aforesaid rights and the completion of any
foreclosure proceedings shall not constitute a discharge of any Guarantor's
obligations hereunder; it being the purpose and intent of each Guarantor that
its obligations hereunder shall be absolute, independent and unconditional under
any and all circumstances. Neither a Guarantor's obligations under this guaranty
nor any remedy for the enforcement thereof shall be impaired, modified, changed
or released in any manner whatsoever by an impairment, modification,
58
change, release or limitation of the liability of any other Guarantor or by
reason of the bankruptcy or insolvency of such other Guarantor. Each Guarantor
waives any and all notice of the creation, renewal, extension or accrual of any
of the Guaranteed Obligations and notice of or proof of reliance of by the
Administrative Agent or any Lender upon this guaranty or acceptance of this
guaranty. The Guaranteed Obligations, and any of them, shall conclusively be
deemed to have been created, contracted or incurred, or renewed, extended,
amended or waived, in reliance upon this guaranty. All dealings between the
Borrower and the Guarantors, on the one hand, and the Administrative Agent and
the Lenders, on the other hand, likewise shall be conclusively presumed to have
been had or consummated in reliance upon this guaranty.
Section 10.3 Modifications.
Each Guarantor agrees that (a) all or any part of the security which
hereafter may be held for the Guaranteed Obligations, if any, may be exchanged,
compromised or surrendered from time to time; (b) the Lenders shall not have any
obligation to protect, perfect, secure or insure any such security interests or
Liens which hereafter may be held, if any, for the Guaranteed Obligations or the
properties subject thereto; (c) the time or place of payment of the Guaranteed
Obligations may be changed or extended, in whole or in part, to a time certain
or otherwise, and may be renewed or accelerated, in whole or in part; (d) the
Borrower and any other party liable for payment under this Agreement may be
granted indulgences generally; (e) any of the provisions of this Agreement or
any other Loan Document may be modified, amended or waived; (f) any party
(including any co-guarantor) liable for the payment thereof may be granted
indulgences or be released; and (g) any deposit balance for the credit of the
Borrower or any other party liable for the payment of the Guaranteed Obligations
or liable upon any security therefor may be released, in whole or in part, at,
before or after the stated, extended or accelerated maturity of the Guaranteed
Obligations, all without notice to or further assent by such Guarantor, which
shall remain bound thereon, notwithstanding any such exchange, compromise,
surrender, extension, renewal, acceleration, modification, indulgence or
release.
Section 10.4 Waiver of Rights.
Each Guarantor expressly waives to the fullest extent permitted by
applicable law: (a) notice of acceptance of this guaranty by the Lenders and of
all Extensions of Credit to the Borrower by the Lenders; (b) presentment and
demand for payment or performance of any of the Guaranteed Obligations; (c)
protest and notice of dishonor or of default (except as specifically required in
this Agreement) with respect to the Guaranteed Obligations or with respect to
any security therefor; (d) notice of the Lenders obtaining, amending,
substituting for, releasing, waiving or modifying any Lien, if any, hereafter
securing the Guaranteed Obligations, or the Lenders' subordinating,
compromising, discharging or releasing such Liens, if any; (e) all other notices
to which the Borrower might otherwise be entitled in connection with the
guaranty evidenced by this Article X; and (f) demand for payment under this
guaranty.
Section 10.5 Reinstatement.
The obligations of each Guarantor under this Article X shall be
automatically reinstated if and to the extent that for any reason any payment by
or on behalf of any Person in respect of the Guaranteed Obligations is rescinded
or must be otherwise restored by any holder of any of the Guaranteed
Obligations, whether as a result of any proceedings in bankruptcy or
reorganization or otherwise, and each Guarantor agrees that it will indemnify
the Administrative Agent and each Lender on demand for all reasonable costs and
expenses (including, without limitation, reasonable fees and expenses of
counsel) incurred by the Administrative Agent or such Lender in connection with
such rescission or restoration, including any such costs and expenses incurred
in defending against any claim alleging that such payment
59
constituted a preference, fraudulent transfer or similar payment under any
bankruptcy, insolvency or similar law.
Section 10.6 Remedies.
Each Guarantor agrees that, as between such Guarantor, on the one hand,
and the Administrative Agent and the Lenders, on the other hand, the Guaranteed
Obligations may be declared to be forthwith due and payable as provided in
Section 11.2 (and shall be deemed to have become automatically due and payable
in the circumstances provided in Section 11.2) notwithstanding any stay,
injunction or other prohibition preventing such declaration (or preventing such
Guaranteed Obligations from becoming automatically due and payable) as against
any other Person and that, in the event of such declaration (or such Guaranteed
Obligations being deemed to have become automatically due and payable), such
Guaranteed Obligations (whether or not due and payable by any other Person)
shall forthwith become due and payable by such Guarantor.
Section 10.7 Limitation of Guaranty.
Notwithstanding any provision to the contrary contained herein, to the
extent the obligations of a Guarantor shall be adjudicated to be invalid or
unenforceable for any reason (including, without limitation, because of any
applicable state or federal law relating to fraudulent conveyances or transfers)
then the obligations of such Guarantor hereunder shall be limited to the maximum
amount that is permissible under Applicable Law (whether federal or state and
including, without limitation, the Federal Bankruptcy Code (as now or
hereinafter in effect)).
Section 10.8 Termination of Guaranty Upon Divestiture.
The obligations of any Guarantor under this Article X shall
automatically terminate as to such Guarantor upon any consolidation, merger,
sale or other disposition made in accordance with Section 9.3 as a result of
which such Guarantor is no longer a Subsidiary of the Borrower immediately after
the consummation of such transaction. For the avoidance of doubt, the
obligations of Pittston Minerals Group, Inc. and Pittston Coal Company, as
Guarantors shall automatically terminate upon the sale of the capital stock of
any member of the Pittston Minerals Group to a Person which is not an Affiliate
of the Borrower or the sale of all or any substantial part of the assets of any
member of the Pittston Minerals Group to any such Person.
ARTICLE XI
DEFAULT AND REMEDIES
Section 11.1 Events of Default.
Each of the following shall constitute an Event of Default, whatever
the reason for such event and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment or order of any court
or any order, rule or regulation of any Governmental Authority or otherwise:
11.1.1 Default in Payment of Principal of or Interest or Fees on Loans
and Reimbursement Obligation. The Borrower shall default in any payment of
principal of, or any interest or fees on, any Loan or Reimbursement Obligation
when and as due (whether at maturity, by reason of acceleration or otherwise),
and such default shall continue unremedied for three (3) Business Days.
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11.1.2 Other Payment Default. The Borrower shall default in the payment
when and as due (whether at maturity, by reason of acceleration or otherwise) of
any other amounts owing on any Loan or Reimbursement Obligation or the payment
of any other Obligation (other than any Obligation under any Hedging Agreement),
and such default shall continue unremedied for three (3) Business Days after
written notice thereof from the Administrative Agent or any Lender.
11.1.3 Misrepresentation. Any representation, warranty or statement
made or deemed to be made by the Borrower under this Agreement, any Loan
Document or any amendment hereto or thereto or in any certificate delivered to
the Administrative Agent or to any Lender pursuant hereto and thereto, shall at
any time prove to have been incorrect in any material respect when made or
deemed made.
11.1.4 Default in Performance of Certain Covenants. The Borrower shall
default in the performance or observance of any covenant or agreement contained
in Section 9.1, 9.3, 9.5 or 9.8(b)(ii).
11.1.5 Default in Performance of Other Covenants and Conditions. Any
Credit Party shall default in the performance or observance of any term,
covenant, condition or agreement contained in this Agreement (other than as
specifically provided for in Sections 11.1.1 through 11.1.4) or any other Loan
Document and such default shall continue for a period of thirty (30) days after
the earlier of a Responsible Officer of the Borrower having actual knowledge of
such default or receipt by the Borrower of written notice thereof from the
Administrative Agent or any Lender.
11.1.6 Debt Cross-Default. The Borrower or any Restricted Subsidiary
shall (a) default in the payment when due, beyond any grace period permitted
from time to time, of any Debt (other than Debt incurred by any Credit Party
under this Agreement) heretofore or hereafter issued, assumed, guaranteed,
contracted or incurred by it, and the aggregate amount of such Debt equals or
exceeds $25,000,000 (or equivalent), (b) default in the performance or
observance of any other covenant or provision of any agreement or instrument
under or by which any Debt (other than Debt incurred by any Credit Party under
this Agreement) is created, evidenced or secured, if the effect of such default
pursuant to this clause (b) is to cause, or to permit the holder or holders of
such Debt (or a trustee on its or their behalf) to cause, and such holder or
holders or trustees does cause, such Debt to become due prior to its stated
maturity, and the aggregate amount of the Debt the maturity of which is so
accelerated pursuant to this clause (b) equals or exceeds $25,000,000 (or
equivalent), or (c) be required to prepay any Debt (other than (A) Debt incurred
by any Credit Party under this Agreement, (B) the redemption of any preferred
stock classified as Debt pursuant to any mandatory redemption provision, and (C)
any conversion of Debt (including preferred stock classified as Debt) to capital
stock pursuant to any conversion right or option) prior to the maturity thereof
other than by regularly scheduled principal payments if the aggregate amount of
such Debt which is required to be prepaid equals or exceeds $25,000,000.
11.1.7 Change in Control. A Change in Control shall have occurred.
11.1.8 Voluntary Bankruptcy Proceeding. Any Credit Party shall (i)
commence a voluntary case under the federal bankruptcy laws (as now or hereafter
in effect), (ii) file a petition seeking to take advantage of any other laws,
domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding
up or composition for adjustment of debts, (iii) consent to or fail to contest
in a timely and appropriate manner any petition filed against it in an
involuntary case under such bankruptcy laws or other laws, (iv) apply for or
consent to, or fail to contest in a timely and appropriate manner, the
appointment of, or the taking of possession by, a receiver, custodian, trustee
or liquidator of itself or of a substantial part of its property, domestic or
foreign, (v) admit in writing its inability to pay its debts as they become due,
(vi) make a general assignment for the benefit of creditors, or (vii) take any
corporate action for the purpose of authorizing any of the foregoing.
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11.1.9 Involuntary Bankruptcy Proceeding. A case or other proceeding
shall be commenced against any Credit Party in any court of competent
jurisdiction seeking (i) relief under the federal bankruptcy laws (as now or
hereafter in effect) or under any other laws, domestic or foreign, relating to
bankruptcy, insolvency, reorganization, winding up or composition for adjustment
of debts, or (ii) the appointment of a trustee, receiver, custodian, liquidator
or the like for any Credit Party or for all or any substantial part of their
respective assets, domestic or foreign, and such case or proceeding shall
continue without dismissal or stay for a period of sixty (60) consecutive days,
or an order granting the relief requested in such case or proceeding (including,
but not limited to, an order for relief under such federal bankruptcy laws)
shall be entered.
11.1.10 Similar Events. Any event occurs or any proceeding is taken
with respect to any Credit Party in any jurisdiction to which it is subject
which has an effect equivalent or similar to any of the events set forth in
Sections 11.1.8 or 11.1.9.
11.1.11 Judgment. A judgment or order for the payment of money which
causes the aggregate amount of all such judgments to exceed $25,000,000 in any
Fiscal Year shall be entered against the Borrower or any Restricted Subsidiary
by any court and such judgment or order shall not, within sixty (60) days after
entry thereof, be bonded, discharged or stayed pending appeal, or shall not be
discharged within sixty (60) days after the expiration of such stay.
11.1.12 Guaranty. At any time after the execution and delivery thereof,
the guaranty given by a Guarantor hereunder or any provision thereof shall cease
to be in full force or effect as to such Guarantor, except as provided in
Sections 10.7 and 10.8, or such Guarantor or any Person acting by or on behalf
of such Guarantor shall deny or disaffirm such Guarantor's obligations under
such guaranty.
11.1.13 ERISA. An event described in each clause (i), (ii) and (iii)
below shall have occurred: (i) any Pension Plan shall fail to satisfy the
minimum funding standard required for any plan year or part thereof under
Section 412 of the Code or Section 302 of ERISA or a waiver of such standard or
extension of any amortization period is sought or granted under Section 412 of
the Code or Section 303 or 304 of ERISA, a Reportable Event shall have occurred,
a contributing sponsor (as defined in Section 4001(a)(13) of ERISA) of a Pension
Plan subject to Title IV of ERISA shall be subject to the advance reporting
requirement of PBGC Regulation Section 4043.61 and an event described in
subsection .62, .63, .64, .65, .66, .67 or .68 of PBGC Regulation Section 4043
shall be reasonably expected to occur with respect to such Pension Plan within
the following thirty (30) days, any Pension Plan which is subject to Title IV of
ERISA shall have had or is likely to have a trustee appointed to administer such
Pension Plan, any Pension Plan which is subject to Title IV of ERISA is, shall
have been or is likely to be terminated or to be the subject of termination
proceedings under ERISA, any Pension Plan shall terminate for purposes of Title
IV of ERISA, any Pension Plan shall have an Unfunded Current Liability, a
contribution required to be made with respect to a Pension Plan or a Foreign
Pension Plan has not been timely made, the Credit Parties or any of their
Subsidiaries or any ERISA Affiliate has incurred or is likely to incur any
liability to or on account of a Pension Plan under Section 409, 502(i), 502(1),
515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section 401(a)(29),
4971 or 4975 of the Code or on account of a group health plan (as defined in
Section 607(1) of ERISA or Section 4980B(g)(2) of the Code) under Section 4980B
of the Code, or the Credit Parties or any of their Subsidiaries has incurred or
is likely to incur liabilities pursuant to one or more employee welfare benefit
plans (as defined in Section 3(1) of ERISA) that provide benefits to retired
employees or other former employees (other than as required by Section 601 of
ERISA) or Pension Plans or Foreign Pension Plans; (ii) there shall result from
any such event or events the imposition of a lien, the granting of a security
interest or a liability or a material risk of such a lien being imposed, such
security interest being granted or such liability being incurred, and (iii) such
lien, security interest or liability, individually, or in the aggregate, has a
Material Adverse Effect.
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11.1.14 Material Adverse Effect. The occurrence of any circumstance,
development, event or condition which has a Material Adverse Effect.
Section 11.2 Remedies.
Upon the occurrence of an Event of Default, with the consent of the
Required Lenders, the Administrative Agent may, or upon the request of the
Required Lenders, the Administrative Agent shall, by notice to the Borrower and
each of the other Credit Parties:
11.2.1 Acceleration: Termination of Facilities. Declare the principal
of and interest on the Loans and the Reimbursement Obligations at the time
outstanding, and all other amounts owed to the Lenders and to the Administrative
Agent under this Agreement or any of the other Loan Documents (other than any
Hedging Agreement) (including, without limitation, all L/C Obligations, whether
or not the beneficiaries of the then outstanding Letters of Credit shall have
presented the documents required thereunder) and all other Obligations (other
than Obligations owing under any Hedging Agreement), to be forthwith due and
payable, whereupon the same shall immediately become due and payable without
presentment, demand, protest or other notice of any kind, all of which are
expressly waived, anything in this Agreement or the other Loan Documents to the
contrary notwithstanding, and terminate the Credit Facilities and any right of
the Borrower to request borrowings or Letters of Credit thereunder; provided,
that upon the occurrence of an Event of Default specified in Sections 11.1.8,
11.1.9 or 11.1.10 with respect to any of the Credit Parties, the Credit
Facilities shall be automatically terminated and all Obligations (other than
obligations owing under any Hedging Agreement) shall automatically become due
and payable.
11.2.2 Letters of Credit. With respect to all Letters of Credit with
respect to which presentment for honor shall not have occurred at the time of an
acceleration pursuant to the preceding paragraph, require the Borrower at such
time to deposit or cause to be deposited in a cash collateral account opened by
the Administrative Agent an amount equal to the Dollar Equivalent of the
aggregate then undrawn and unexpired amount of such Letters of Credit. In the
case of any such Letter of Credit denominated in an Optional Currency, the
Dollar Equivalent of the amount deposited in respect of such Letter of Credit
shall be calculated at the end of each calendar month in accordance with the
last sentence of Section 3.2. In the event that the Dollar Equivalent of such
amount at the time of any such calculation exceeds the amount deposited in such
cash collateral account with respect to such Letter of Credit, the Borrower
agrees to promptly deposit or cause to be deposited into such cash collateral
account an amount equal to such excess. Amounts held in such cash collateral
account shall be applied by the Administrative Agent to the payment of drafts
drawn under such Letters of Credit, and the unused portion thereof, if any,
remaining after all such Letters of Credit shall have expired or been fully
drawn upon shall be applied to repay any other unpaid Obligations. After all
such Letters of Credit shall have expired or been fully drawn upon, the
Reimbursement Obligations shall have been satisfied and all other Obligations
shall have been paid in full, the balance, if any, in such cash collateral
account shall be promptly returned to the Borrower.
11.2.3 Rights of Collection. Exercise on behalf of the Lenders all of
its other rights and remedies under this Agreement, the other Loan Documents and
Applicable Law, in order to satisfy all of the Obligations.
Section 11.3 Rights and Remedies Cumulative; Non-Waiver; etc.
The enumeration of the rights and remedies of the Administrative Agent
and the Lenders set forth in this Agreement is not intended to be exhaustive and
the exercise by the Administrative Agent and the Lenders of any right or remedy
shall not preclude the exercise of any other rights or remedies, all
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of which shall be cumulative, and shall be in addition to any other right or
remedy given hereunder or under the Loan Documents or that may now or hereafter
exist in law or in equity or by suit or otherwise. No delay or failure to take
action on the part of the Administrative Agent or any Lender in exercising any
right, power or privilege shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right, power or privilege preclude other
or further exercise thereof or the exercise of any other right, power or
privilege or shall be construed to be a waiver of any Event of Default. No
course of dealing between the Credit Parties, the Administrative Agent and the
Lenders or their respective agents or employees shall be effective to change,
modify or discharge any provision of this Agreement or any of the other Loan
Documents or to constitute a waiver of any Event of Default.
ARTICLE XII
THE ADMINISTRATIVE AGENT
Section 12.1 Appointment.
Each of the Lenders hereby irrevocably designates and appoints JPMorgan
Chase Bank as Administrative Agent of such Lender under this Agreement and the
other Loan Documents for the term hereof and each such Lender irrevocably
authorizes JPMorgan Chase Bank as Administrative Agent for such Lender, 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 such other Loan Documents, together with such other powers as are reasonably
incidental thereto. Notwithstanding any provision to the contrary elsewhere in
this Agreement or such other Loan Documents, the Administrative Agent shall not
have any duties or responsibilities, except those expressly set forth herein and
therein, or any fiduciary relationship with any Lender, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities shall
be read into this Agreement or the other Loan Documents or otherwise exist
against the Administrative Agent. Any reference to the Administrative Agent in
this Article XII shall be deemed to refer to the Administrative Agent solely in
its capacity as Administrative Agent and not in its capacity as a Lender.
Section 12.2 Delegation of Duties.
The Administrative Agent may execute any of its respective duties under
this Agreement and the other Loan Documents by or through agents or
attorneys-in-fact and shall be entitled 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 the Administrative Agent with reasonable care.
Section 12.3 Exculpatory Provisions.
Neither any Agent nor any of its officers, directors, employees,
agents, attorneys-in-fact, Subsidiaries or Affiliates shall be (a) liable for
any action lawfully taken or omitted to be taken by it or such Person under or
in connection with this Agreement or the other Loan Documents (except for
actions occasioned solely by its or such Person's own gross negligence or
willful misconduct), or (b) responsible in any manner to any of the Lenders for
any recitals, statements, representations or warranties made by any Credit Party
or any of its Subsidiaries or any officer thereof contained in this Agreement or
the other Loan Documents 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 the other Loan Documents or for the value,
validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement or the other Loan Documents or for any failure of any Credit Party or
any of its Subsidiaries to perform its
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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 to inspect the properties, books or records of any Credit Party or
any of its Subsidiaries.
Section 12.4 Reliance by the Administrative Agent.
The Administrative Agent shall be entitled to rely, and shall be fully
protected in relying, upon any note, writing, resolution, notice, consent,
certificate, affidavit, letter, cablegram, telegram, telecopy, telex or teletype
message, statement, order or other document or communications 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,
without limitation, counsel to the Credit Parties), 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 such Note shall have been transferred in accordance with Section 13.8
hereof. The Administrative Agent shall be fully justified in failing or refusing
to take any action under this Agreement and the other Loan Documents unless it
shall first receive such advice or concurrence of the Required Lenders (or, when
expressly required hereby or by the relevant other Loan Document, all the
Lenders) as it deems appropriate or it shall first be indemnified to its
satisfaction by the Lenders against any and all liability and expense which 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 in accordance with a request of the
Required Lenders (or, when expressly required hereby, all the Lenders), and such
request and any action taken or failure to act pursuant thereto shall be binding
upon all the Lenders.
Section 12.5 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 hereunder unless it
has received notice from a Lender or the Credit Parties 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, it shall promptly 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;
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, except to the extent that other provisions of this Agreement expressly
require that any such action be taken or not be taken only with the consent and
authorization or the request of the Lenders or Required Lenders, as applicable.
Section 12.6 Non-Reliance on the Agents and Other Lenders.
Each Lender expressly acknowledges that neither the Agents nor any of
their respective officers, directors, employees, agents, attorneys-in-fact,
Subsidiaries or Affiliates has made any representations or warranties to it and
that no act by any Agent hereafter taken, including any review of the affairs of
the Credit Parties or any of their respective Subsidiaries, 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 Credit Parties and their respective Subsidiaries and
made its own decision to make its Loans and issue or participate in
65
Letters of Credit 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 Credit Parties and their respective Subsidiaries.
Except for notices, reports and other documents expressly required to be
furnished to the Lenders by the Administrative Agent hereunder or by the other
Loan Documents, 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, financial and other condition or
creditworthiness of any Credit Party or any of its Subsidiaries which may come
into the possession of the Administrative Agent or any of its respective
officers, directors, employees, agents, attorneys-in-fact, Subsidiaries or
Affiliates.
Section 12.7 Indemnification.
The Lenders agree to indemnify the Administrative Agent in its capacity
as such (to the extent not reimbursed by the Credit Parties and without limiting
any obligation of the Credit Parties to do so), ratably according to the
respective amounts of their Aggregate Commitment 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 Aggregate Commitment
shall have terminated and the Loans shall have been paid in full, ratably in
accordance with such Aggregate Commitment 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 which may at any time (including, without limitation, at any
time following the payment of the Obligations or any Reimbursement Obligation)
be imposed on, incurred by or asserted against the Administrative Agent in any
way relating to or arising out of the Aggregate Commitment, this Agreement or
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 the Administrative 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 to the extent they result
from the Administrative Agent's bad faith, gross negligence or willful
misconduct. The agreements in this Section 12.7 shall survive the payment of the
Loans, any Reimbursement Obligation and all other amounts payable hereunder and
the termination of this Agreement.
Section 12.8 The Administrative Agent in Its Individual Capacity.
The Administrative Agent and its respective Subsidiaries and Affiliates
may make loans to, accept deposits from and generally engage in any kind of
business with the Credit Parties as though the Administrative Agent were not an
Administrative Agent hereunder. With respect to any Loans made or renewed by it
and with respect to any Letter of Credit issued by it or participated in by it,
the Administrative 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 Administrative Agent, and the terms "Lender" and
"Lenders" shall include the Administrative Agent in its individual capacity.
Section 12.9 Resignation of the Administrative Agent; Successor
Administrative Agent.
Subject to the appointment and acceptance of a successor as provided
below, the Administrative Agent may resign at any time by giving notice thereof
to the Lenders and the Credit Parties. Upon any such resignation, the Required
Lenders shall have the right, subject to the approval of
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the Borrower so long as no Default or Event of Default has occurred and is
continuing (which approval will not be unreasonably withheld), to appoint from
among the other Lenders a successor Administrative Agent. If no successor
Administrative Agent shall have been so appointed by the Required Lenders and
been approved by the Borrower (if the approval of the Borrower is required) or
have accepted such appointment within thirty (30) days after the Administrative
Agent's giving of notice of resignation, then the Administrative Agent may
appoint, subject to the approval of the Borrower so long as no Default or Event
of Default has occurred and is continuing (which approval will not be
unreasonably withheld), a successor Administrative Agent, which successor shall
have minimum capital and surplus of at least $500,000,000. Upon the acceptance
of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall thereupon
succeed to and become vested with all rights, powers, privileges and duties of
the retiring Administrative Agent, and the retiring Administrative Agent shall
be discharged from its duties and obligations hereunder. After any retiring
Administrative Agent's resignation hereunder as Administrative Agent, the
provisions of this Section 12.9 shall continue in effect for its benefit in
respect of any actions taken or omitted to be taken by it while it was acting as
Administrative Agent.
Section 12.10 Syndication Agents; Documentation Agent.
The Syndication Agents and the Documentation Agent, in their capacities
as such, shall have no duties or responsibilities, and shall incur no liability,
under this Agreement and the other Loan Documents.
ARTICLE XIII
MISCELLANEOUS
Section 13.1 Notices.
13.1.1 Method of Communication. Except as otherwise provided in Article
II, all notices and communications hereunder shall be in writing. Any notice
shall be effective if delivered by hand delivery or sent via telecopy,
recognized overnight courier service or certified mail, return receipt
requested, and shall be deemed to have been delivered (i) on the date of
delivery if delivered by hand, (ii) on the Business Day of (or next following)
transmission when transmitted or sent by telecopy, (iii) on the next Business
Day after delivery to a recognized overnight courier service and (iv) on the
fifth Business Day following the date sent by certified mail, return receipt
requested. A telephonic notice to the Administrative Agent as understood by the
Administrative Agent will be deemed to be the controlling and proper notice in
the event of a discrepancy with or failure to receive a confirming written
notice. Notices and other communications to the Lenders hereunder may also be
delivered or furnished by electronic communications pursuant to procedures
approved by the Administrative Agent; provided that the foregoing shall not
apply to notices pursuant to Article II unless otherwise agreed by the
Administrative Agent and the applicable Lender. The Administrative Agent or the
Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided that approval of such procedures may be
limited to particular notices or communications.
13.1.2 Addresses for Notices. Notices to any party shall be sent to it
at the following addresses, or any other address as to which all the other
parties (or the Administrative Agent and the Borrower in the case of any Lender)
are notified in writing.
If to the Borrower: The Pittston Company
0000 Xxxxxxxx Xxxxx
X.X. Xxx 00000
00
Xxxxxxxx, XX 00000
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
Attention: Treasurer
If to the initial Guarantors:
To the addresses set forth below their respective
signatures on the signature pages hereto
If to any subsequent Guarantors:
To the address set forth in the related Guarantor Joinder
Agreement
If to JPMorgan Chase Bank as
Administrative Agent:
JPMorgan Chase Bank
0 Xxxxxxxxxx Xxxxx
Xxxxxx, XX 00000
Attn: Xxxxxx Xxxxx
Telephone: (000) 000-0000
Telecopy: (000) 000-0000
If to any Lender:
To the address set forth on Schedule 13.1 hereto
13.1.3 Administrative Agent's Office. The Administrative Agent
hereby designates its office located at the address set forth above, or any
subsequent office which shall have been specified for such purpose by written
notice to the Credit Parties and the Lenders, as the Administrative Agent's
Office referred to herein, to which payments due are to be made and at which
Loans will be disbursed.
Section 13.2 Expenses, Indemnity.
Each party to this Agreement agrees to pay all its own fees
and expenses in connection with the Loan Documents and any amendment,
modification or waiver of the terms thereof; provided, however, that the
Borrower agrees to (a) pay all reasonable out-of-pocket expenses of the
Administrative Agent and the Arranger in connection with (i) the preparation,
execution and delivery of this Agreement and each other Loan Document, whenever
the same shall be executed and delivered, including without limitation the
reasonable out-of-pocket syndication and due diligence expenses and reasonable
fees and disbursements of one counsel representing the Administrative Agent and
(ii) where applicable, the preparation, execution and delivery of any waiver,
amendment or consent by the Administrative Agent, the Arranger or the Lenders
relating to this Agreement or any other Loan Document, including without
limitation reasonable fees and disbursements of counsel representing the
Administrative Agent and the Lenders, and (b) pay all reasonable out-of-pocket
expenses of the Administrative Agent, the Arranger and each Lender actually
incurred in connection with the enforcement of any rights and remedies of the
Administrative Agent, the Arranger and the Lenders under the Credit Facilities,
including, to the extent reasonable under the circumstances, consulting with
accountants, attorneys and other Persons concerning the nature, scope or value
of any right or remedy of the Administrative Agent, the Arranger or any Lender
hereunder or under any other Loan Document or any factual matters in connection
therewith, which expenses shall include without limitation the reasonable fees
and disbursements of such Persons. The
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Borrower hereby indemnifies, exonerates and holds the Administrative Agent, the
Arranger and the Lenders, and each of their respective Affiliates, officers,
directors, employees and agents (each an "Indemnitee") free and harmless from
and against any and all losses, penalties, fines, liabilities, settlements,
damages, costs and expenses (including, without limitation, reasonable
attorneys' fees and disbursements, reasonable consultants' fees and settlement
costs) (collectively, the "Indemnified Liabilities") incurred by any Indemnitee
in connection with any claim, investigation, litigation or other proceeding
(whether or not the Administrative Agent, the Arranger or any Lender is a party
thereto) and the prosecution and defense thereof, arising out of or in any way
connected with the Credit Facilities, the Loans, the Letters of Credit, this
Agreement or any other Loan Document or as a result of the breach of any of the
Credit Parties' obligations hereunder, except for any such Indemnified
Liabilities arising for the account of a particular Indemnitee by reason of the
relevant Indemnitee's gross negligence or willful misconduct as determined by a
final and nonappealable decision of a court of competent jurisdiction. If and to
the extent that the foregoing undertaking may be unenforceable for any reason,
the Borrower hereby agrees to make the maximum contribution to the payment and
satisfaction of each of the Indemnified Liabilities which is permissible under
applicable law.
Section 13.3 GOVERNING LAW
THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK.
Section 13.4 Consent to Jurisdiction; Waiver.
Each of the parties hereto hereby irrevocably and unconditionally:
(a) submits for itself and its property in any legal action or
proceeding relating to this Agreement and the other Loan Documents to which
it is a party, or for recognition and enforcement of any judgment in
respect thereof, to the non-exclusive general jurisdiction of the courts of
the State of New York, the courts of the United States for the Southern
District of New York, and appellate courts from any thereof;
(b) consents that any such action or proceeding may be brought in such
courts and waives any objection that it may now or hereafter have to the
venue of any such action or proceeding in any such court or that such
action or proceeding was brought in an inconvenient court and agrees not to
plead or claim the same;
(c) agrees that service of process to any Credit Party in any such
action or proceeding may be effected by mailing a copy thereof by
registered or certified mail (or any substantially similar form of mail),
postage prepaid, to the Borrower at its address set forth in Section 13.1
or at such other address of which the Administrative Agent shall have been
notified pursuant thereto;
(d) agrees that nothing herein shall affect the right to effect service
of process in any other manner permitted by law or shall limit the right to
xxx in any other jurisdiction; and
(e) waives, to the maximum extent not prohibited by law, any right it
may have to claim or recover in any legal action or proceeding referred to
in this Section any exemplary or punitive damages.
Section 13.5 WAIVER OF JURY TRIAL.
69
EACH CREDIT PARTY, THE ADMINISTRATIVE AGENT AND EACH LENDER HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN.
Section 13.6 Reversal of Payments.
To the extent any Credit Party makes a payment or payments to the
Administrative Agent for the ratable benefit of the Lenders or the
Administrative Agent receives any payment or proceeds of the collateral which
payments or proceeds or any part thereof are subsequently invalidated, declared
to be fraudulent or preferential, set aside and/or required to be repaid to a
trustee, receiver or any other party under any bankruptcy law, state or federal
law, common law or equitable cause, then, to the extent of such payment or
proceeds repaid, the Obligations or part thereof intended to be satisfied shall
be revived and continued in full force and effect as if such payment or proceeds
had not been received by the Administrative Agent.
Section 13.7 Accounting Matters.
Except as otherwise expressly provided herein, all terms of an
accounting or financial nature shall be construed in accordance with GAAP, as in
effect from time to time, provided that, if the Borrower notifies the
Administrative Agent that the Credit Parties request an amendment to any
provision hereof to eliminate the effect of any change occurring after the date
hereof in GAAP or in the application thereof on the operation of such provision
(or if the Administrative Agent notifies the Credit Parties that the Required
Lenders request an amendment to any provision hereof for such purpose),
regardless of whether any such notice is given before or after such change in
GAAP or in the application thereof, then such provision shall be interpreted on
the basis of GAAP as in effect and applied immediately before such change shall
have become effective until such notice shall have been withdrawn or such
provision amended in accordance therewith.
Section 13.8 Successors and Assigns; Participations; Confidentiality.
13.8.1 Benefit of Agreement. 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
Lender that issues any Letter of Credit), except that (i) the Credit Parties may
not assign or otherwise transfer any of their rights or obligations hereunder
without the prior written consent of each Lender (and any attempted assignment
or transfer by any Credit Party without such consent shall be null and void),
(ii) no Lender may assign or otherwise transfer its rights or obligations
hereunder except in accordance with this Section and (iii) except as permitted
by Section 12.9, the Administrative Agent may not assign or transfer any of its
rights or obligations under this Agreement.
13.8.2 Assignment by Lenders. (a) Subject to the conditions set forth
in paragraph 13.8.2(b), 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:
(i) the Borrower, provided that no consent of the Borrower shall
be required for an assignment to (1) a Lender, (2) an affiliate of a
Lender, (3) an Approved Fund (as defined below) or (4) if an Event of
Default under Section 11.1.1, 11.1.2, 11.1.8, 11.1.9 or 11.1.10 has
occurred and is continuing, any other Person (unless such Person is
engaged in one or more lines of business as the Borrower or any of its
Subsidiaries or is an Affiliate of such Person, other than
70
as a result of the holding of securities of such Person solely as a passive
investment, in which case the Borrower's consent shall be required under
all circumstances); and
(ii) the Administrative Agent, provided that no consent of the
Administrative Agent shall be required for an assignment to an Assignee
that is a Lender immediately prior to giving effect to such assignment.
(b) Assignments shall be subject to the following additional
conditions:
(i) 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
Credit Facility, the amount of the Commitment 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 $10,000,000 and the
remaining Commitment or Loans of such Lender shall not be less than
$10,000,000, unless each of the Borrower and the Administrative Agent
otherwise consent, provided that (A) no such consent of the Borrower
shall be required if an Event of Default has occurred and is continuing
and (B) such amounts shall be aggregated in respect of each Lender and
its affiliates or Approved Funds, if any;
(ii) 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;
(iii) the Assignee, if it shall not be a Lender, shall deliver
to the Administrative Agent an administrative questionnaire; and
(iv) such assignment shall not, without the consent of the
Borrower, on behalf of itself and the other Credit Parties, require the
Borrower or any other Credit Party to file a registration statement with
the Securities and Exchange Commission (or any securities exchange) or
apply to qualify the Loans (or any Notes) under the blue sky laws of any
state.
For the purposes of this Section 13.8.2, the term "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; provided that no Approved Fund
shall be entitled to receive any amount pursuant to Sections 4.8, 4.9, 4.10,
4.11 or 13.2 that would be greater than the amount the assigning Lender would
have been entitled to receive in respect of the portion of the Commitment and
Loans assigned to such Approved Fund by such Lender.
(c) Subject to acceptance and recording thereof pursuant to paragraph
13.8.2(d) 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 and subject
to the requirements of Sections 4.8, 4.9, 4.10, 4.11 and 13.2). Any assignment
or transfer by a Lender of rights or obligations under this Agreement that does
not comply with this Section 13.8.2 shall be treated for purposes of this
Agreement
71
as a sale by such Lender of a participation in such rights and obligations in
accordance with Section 13.8.3.
(d) 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 Commitment 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, in the absence of manifest error, and the Borrower, the
Administrative Agent, the Issuing Lender 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. The Register shall be available for inspection by the Borrower, the
Issuing Lender and any Lender, at any reasonable time and from time to time upon
reasonable prior notice.
(e) 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)(ii)
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.
(f) 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 13.8.2, and any such assignment shall be
effective upon being recorded in the Register in accordance with Section
13.8.2(d). Each of 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. The foregoing shall not limit the
rights of any Credit Party, any Lender and the Administrative Agent to file any
claim in or otherwise take any action with respect to any existing insolvency
proceeding that was not instituted by such party.
13.8.3 Participations. (a) 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 (i) such Participation
shall be in an amount not less than $5,000,000, (ii) such Lender's obligations
(including, without limitation, its Commitment) under this Agreement shall
remain unchanged, (iii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations and (iv) the Borrower,
the Administrative Agent, the Issuing Lender 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 may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver that (A) requires
the consent of each Lender directly affected thereby pursuant to clauses (a),
(b), (c) or (d) of the first proviso to the first
72
sentence of Section 13.10 and (B) directly affects such Participant. Subject to
paragraph (b) of this Section, the Borrower agrees that each Participant shall
be entitled to the benefits and subject to the requirements of Sections 4.8,
4.9, 4.10, 4.11 and 13.2 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to paragraph (b) of this Section.
(b) No Participant shall be entitled to receive any greater payment
under Sections 4.8, 4.9, 4.10 or 4.11 than the applicable participating Lender
would have been entitled to receive with respect to the participation sold to
such Participant, unless the Borrower specifically consents to such right. Any
Participant that is a Non-U.S. Lender shall not be entitled to the benefits of
Section 4.11 unless such Participant complies with Section 4.11.5.
13.8.4 Certain Pledges or Assignments. (a) 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 (i)
release a Lender from any of its obligations hereunder, (ii) substitute any such
pledgee or assignee for such Lender as a party hereto or (iii) grant any such
pledgee or assignee any rights as a Lender or Participant.
(b) The Borrower, upon receipt of written notice from the relevant
Lender, agrees to issue Notes to any Lender requiring Notes to facilitate
transactions of the type described in paragraph (a) above.
Section 13.9 Disclosure of Information; Confidentiality. Each of the
Administrative Agent, the Issuing Lender and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its Affiliates, directors, officers, 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), (b) to the extent requested by any regulatory
authority, (c) to the extent required by applicable laws or regulations or by
any subpoena or similar legal process (after providing notice to the Borrower,
to the extent practicable, to permit an opportunity to seek a protective order
or injunctive relief), (d) to any other party to this Agreement, (e) in
connection with the exercise of any remedies hereunder or any suit, action or
proceeding relating to this Agreement or the enforcement of rights hereunder,
(f) subject to an agreement containing provisions substantially the same as
those of this Section, to any assignee of or participant in, or any prospective
assignee of or participant in, any of its rights or obligations under this
Agreement, (g) with the prior written consent of the Borrower, (h) to the extent
such Information (i) becomes publicly available other than as a result of a
breach of this Section by the disclosing party or (ii) becomes available to the
Administrative Agent, the Issuing Lender or any Lender on a nonconfidential
basis from a source other than the Credit Parties unless the Administrative
Agent, the Issuing Lender or such Lender, as applicable, has actual knowledge
that the disclosure of such Information by such source constituted a breach of
an obligation of such source to maintain confidentiality of such Information,
(i) to Gold Sheets and other similar bank trade publications, such information
to consist of deal terms and other information (customarily found in such
publications) upon the Borrower's prior review and approval or (j) to the
National Association of Insurance Commissioners or any similar organization or
any nationally recognized rating agency that requires access to information
about a Lender's investment portfolio in connection with ratings issued with
respect to such Lender. For the purposes of this Section, "Information" means
all information received from the Credit Parties or any of their Subsidiaries
relating to the Credit Parties or their business, other than any such
information that is available to the Administrative Agent, the Issuing Lender or
any Lender on a nonconfidential basis prior to disclosure by the Credit Parties.
Any Person required to maintain the confidentiality of Information as provided
in this
73
Section 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 to its own
confidential information.
Section 13.10 Amendments, Waivers and Consents.
Except as set forth below, any term, covenant, agreement or condition
of this Agreement or any of the other Loan Documents may be amended or waived by
the Lenders and any consent may be given by the Lenders, if, but only if, such
amendment, waiver or consent is in writing signed by the Required Lenders (or by
the Administrative Agent with the consent of the Required Lenders) and delivered
to the Administrative Agent and, in the case of an amendment, signed by the
Credit Parties; provided, that no amendment, waiver or consent shall, without
the consent of each Lender affected thereby, (a) increase the amount or extend
the time of the obligation of the Lenders to make Loans or issue or participate
in Letters of Credit, (b) extend the originally scheduled time or times of
payment of the principal of any Loan or Reimbursement Obligation or the time or
times of payment of interest or fees on any Loan or Reimbursement Obligation,
(c) reduce the rate of interest or fees payable on any Loan or Reimbursement
Obligation, (d) reduce the principal amount of any Loan or Reimbursement
Obligation, (e) permit any subordination of the principal or interest on any
Loan or Reimbursement Obligation or (f) permit any assignment (other than as
specifically permitted or contemplated in this Agreement) of any of the Credit
Parties' rights and obligations hereunder; provided further, no amendment,
waiver or consent shall, without the consent of each Lender, (A) release any
Guarantor from its guaranty hereunder other than upon the disposition by the
Borrower of its interest in such Guarantor in accordance with the terms of this
Agreement or (B) amend the provisions of this Section 13.9 or the definition of
Required Lenders. In addition, no amendment, waiver or consent to the provisions
of (i) Article XII shall be made without the written consent of the
Administrative Agent and (ii) Article III shall be made without the written
consent of each Issuing Lender.
Notwithstanding the fact that the consent of all the Lenders is
required in certain circumstances as set forth above, (x) each Lender is
entitled to vote as such Lender sees fit on any bankruptcy reorganization plan
that affects the Loans, and each Lender acknowledges that the provisions of
Section 1126(c) of the Federal Bankruptcy Code (as now or hereafter in effect)
supersedes the unanimous consent provisions set forth herein and (y) the
Required Lenders may consent to allow a Credit Party to use cash collateral in
the context of a bankruptcy or insolvency proceeding.
Section 13.11 Performance of Duties.
The Credit Parties' obligations under this Agreement and each of the
Loan Documents shall be performed by the Credit Parties at their sole cost and
expense.
Section 13.12 All Powers Coupled with Interest.
All powers of attorney and other authorizations granted to the Lenders,
the Administrative Agent and any Persons designated by the Administrative Agent
or any Lender pursuant to any provisions of this Agreement or any of the other
Loan Documents shall be deemed coupled with an interest and shall be irrevocable
so long as any of the Obligations remain unpaid or unsatisfied or the Credit
Facilities has not been terminated.
Section 13.13 Acknowledgements. Each of the Credit Parties hereby
acknowledges that:
74
(a) it has been advised by counsel in the negotiation, execution and
delivery of this Agreement and the other Loan Documents;
(b) neither the Administrative Agent nor any Lender has any fiduciary
relationship with or duty to any Credit Party arising out of or in connection
with this Agreement or any of the other Loan Documents, and the relationship
between Administrative Agent and Lenders, on one hand, and the Credit Parties,
on the other hand, in connection herewith or therewith is solely that of debtor
and creditor; and
(c) no joint venture is created hereby or by the other Loan Documents
or otherwise exists by virtue of the transactions contemplated hereby among the
Lenders or among the Credit Parties and the Lenders.
Section 13.14 Survival of Indemnities.
Notwithstanding any termination of this Agreement, the indemnities to
which the Administrative Agent and the Lenders are entitled under the provisions
of this Article XIII and any other provision of this Agreement and the Loan
Documents shall continue in full force and effect after the termination of the
Lenders' commitments hereunder and shall protect the Administrative Agent and
the Lenders against events arising after such termination as well as before,
including after the Borrower's acceptance of the Lenders' commitments for the
Credit Facilities, notwithstanding any failure of such facility to close.
Section 13.15 Titles and Captions.
Titles and captions of Articles, Sections and subsections in this
Agreement are for convenience only, and neither limit nor amplify the provisions
of this Agreement.
Section 13.16 Severability of Provisions.
Any provision of this Agreement or any other Loan Document which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective only to the extent of such prohibition or unenforceability
without invalidating the remainder of such provision or the remaining provisions
hereof or thereof or affecting the validity or enforceability of such provision
in any other jurisdiction.
Section 13.17 Counterparts.
This Agreement may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and shall be binding upon all
parties, their successors and assigns, and all of which taken together shall
constitute one and the same agreement. Delivery of any executed counterpart of a
signature page of this Agreement by telecopy shall be effective as delivery of a
manually executed counterpart of this Agreement.
Section 13.18 Binding Effect; Amendment and Restatement; Term of
Agreement.
13.18.1 This Agreement shall become effective at such time, on or after
the Closing Date, that the conditions precedent set forth in Section 5.2 have
been satisfied or waived and when it shall have been executed by each of the
Credit Parties and the Administrative Agent, and the Administrative Agent shall
have received copies of the signature pages hereto (telefaxed or otherwise)
which, when taken together, bear the signatures of each Lender (including the
Issuing Lender), and thereafter this Agreement
75
shall be binding upon and inure to the benefit of each Credit Party, each Lender
(including the Issuing Lender) and the Administrative Agent, together with their
permitted successors and assigns.
13.18.2 This Agreement shall remain in effect from the Closing Date
through and including the date upon which all Obligations (other than
obligations owing by any Credit Party to any Lender or Affiliate of a Lender or
the Administrative Agent under any Hedging Agreement) shall have been
indefeasibly and irrevocably paid and satisfied in full. No termination of this
Agreement shall affect the rights and obligations of the parties hereto arising
prior to such termination.
Section 13.19 Inconsistencies with Other Documents; Independent Effect
of Covenants.
13.19.1 In the event there is a conflict or inconsistency between this
Agreement and any other Loan Document, the terms of this Agreement shall
control, provided, that in the event there is a conflict or inconsistency
between this Agreement and the letter agreement between the Administrative Agent
and the Borrower dated as of July 17, 2002 governing certain fees (the "Fee
Letter Agreement"), which conflict or inconsistency relates solely to a matter
affecting (i) the Administrative Agent and/or its Affiliates on one hand and
(ii) the Borrower on the other, the Fee Letter Agreement shall control.
13.19.2 The Borrower expressly acknowledges and agrees that each
covenant contained in Article VIII and Article IX hereof shall be given
independent effect.
Section 13.20 Integration. This Agreement and the other Loan Documents
represent the entire agreement of the Credit Parties, the Administrative Agent
and the Lenders with respect to the subject matter hereof and thereof, and there
are no promises, undertakings, representations or warranties by the
Administrative Agent or any Lender relative to the subject matter hereof not
expressly set forth or referred to herein or in the other Loan Documents.
Section 13.21 Judgment Currency. The obligations of any Credit Party in
respect of any sum due to any Agent or any Lender hereunder or under any Loan
Document shall, notwithstanding any judgment in a currency (the "judgment
currency") other than the currency in which such sum originally due to such
party is denominated (the "original currency"), be discharged only to the extent
that on the Business Day following receipt by such party of any sum adjudged to
be so due in the judgment currency such party may in accordance with normal
banking procedures purchase the original currency with the judgment currency. If
the amount of the original currency so purchased is less than the sum originally
due to such party in the original currency, such Credit Party agrees, as a
separate obligation and notwithstanding any such judgment, to indemnify such
party against such loss, and if the amount of the original currency so purchased
exceeds the sum originally due to such party to this Agreement, such party
agrees to remit to the Credit Party, as the case may be, such excess. This
covenant shall survive the termination of this Agreement and payment of the
Loans and all other amounts payable hereunder.
{Signature pages to follow}
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IN WITNESS WHEREOF, the parties hereto have caused their duly
authorized officers to execute and deliver this Agreement as of the date first
above written.
BORROWER: THE PITTSTON COMPANY,
a Virginia corporation
By: /s/ Xxxxx X. Xxxxxxxx
--------------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Vice President - Corporate Finance
and Treasurer
GUARANTORS: PITTSTON SERVICES GROUP INC.,
a Virginia corporation
By: /s/ Xxxxx X. Xxxxxxxx
---------------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Vice President and Treasurer
Notice Address:
Pittston Services Group Inc.
0000 Xxxxxxxx Xxxxx
X. X. Xxx 00000
Xxxxxxxx, Xxxxxxxx 00000-0000
Attn: Xxxxx X. Xxxxxxxx, Vice President
and Treasurer
Facsimile: (000) 000-0000
PITTSTON MINERALS GROUP INC.,
a Virginia corporation
By: /s/ Xxxxx X. Xxxxxxxx
---------------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Vice President and Treasurer
Notice Address:
Pittston Minerals Group Inc.
0000 Xxxxxxxx Xxxxx
X. X. Xxx 00000
Xxxxxxxx, Xxxxxxxx 00000-0000
Attn: Xxxxx X. Xxxxxxxx, Vice President
and Treasurer
Facsimile: (000) 000-0000
PITTSTON COAL COMPANY,
a Delaware corporation
By: /s/ Xxxxx X. Xxxxxxxx
-----------------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Vice President and Treasurer
Notice Address:
Pittston Coal Company
000 X.X. Xxxx Xxxxxx
Xxxxx 19
P. O. Box 5100
Xxxxxxx, Xxxxxxxx 00000
Attn: Xxxxx X. Xxxxxx, Vice President
and Chief Financial Officer
Facsimile: (000) 000-0000
BAX HOLDING COMPANY,
a Virginia corporation
By: /s/ Xxxxx X. Xxxxxxxx
----------------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Vice President and Treasurer
Notice Address:
BAX Holding Company
0000 Xxxxxxxx Xxxxx
X. X. Xxx 00000
Xxxxxxxx, Xxxxxxxx 00000-0000
Attn: Xxxxx X. Xxxxxxxx, Vice President
and Treasurer
Facsimile: (000) 000-0000
BAX GLOBAL INC.,
a Delaware corporation
By: /s/ Xxxxx X. Xxxxxxxx
---------------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Treasurer and Assistant Secretary
Notice Address:
BAX Global Inc.
00000 Xxxxxxxxx Xxxxxx
Xxxxxx, Xxxxxxxxxx 00000
Attn: Xxxxxx Xxxxxxx, Executive Vice President
and Chief Financial Officer
Facsimile: (000) 000-0000
BRINK'S HOLDING COMPANY,
a Delaware corporation
By: /s/ Xxxxx X. Xxxxxxxx
----------------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Vice President and Treasurer
Notice Address:
Brink's Holding Company
0000 Xxxxxxxx Xxxxx
X. X. Xxx 00000
Xxxxxxxx, Xxxxxxxx 00000-0000
Attn: Xxxxx X. Xxxxxxxx, Vice President
and Treasurer
Facsimile: (000) 000-0000
BRINK'S, INCORPORATED,
a Delaware corporation
By: /s/ Xxxxxxx X. Xxx
-----------------------------------------
Name: Xxxxxxx X. Xxx
Title: Chairman of the Board
and Chief Executive Officer
Notice Address:
Brink's, Incorporated
Xxx Xxxxxxxx Xxxxxx
Xxxxxx, Xxxxxxxxxxx 00000-0000
Attn: Xxxxxxxxxxx X. Xxxxxxx, Senior Vice
President and Chief Financial Officer
Facsimile: (000) 000-0000
BRINK'S HOME SECURITY, INC.,
a Delaware corporation
By: /s/ Xxxxx X. Xxxxxxxx
-----------------------------------------
Name: Xxxxx X. Xxxxxxxx
Title: Assistant Treasurer
Notice Address:
Brink's Home Security, Inc..
0000 Xxxxxx Xxxxxxxxx
Xxxxxx, Xxxxx 00000
Attn: Xxxxxxx X. Xxxxxx, Senior Vice President -
Finance/Planning
Facsimile: (000) 000-0000
LENDERS: JPMORGAN CHASE BANK,
as Administrative Agent and a Lender
By: /s/ Xxxxxx B.V.W. Xxxxx
----------------------------------------
Name: Xxxxxx B.V.W. Xxxxx
Title: Vice President
BNP PARIBAS, as a Lender
By: /s/ Xxxxxx Xxxxxxxx
----------------------------------------
Name: Xxxxxx Xxxxxxxx
Title: Vice President
BNP PARIBAS, as a Lender
By: /s/ Xxxxx Xxxxxx
----------------------------------------
Name: Xxxxx Xxxxxx
Title: Managing Director
BANK OF AMERICA, N.A.
as a Lender
By: /s/ Xxxx X. Xxxxxxxx
---------------------------------------
Name: Xxxx X. Xxxxxxxx
Title: Managing Director
BANK OF CHINA, NEW YORK BRANCH,
as a Lender
By: /s/ Xxxxxx Xxxxx
----------------------------------------
Name: Xxxxxx Xxxxx
Title: General Manager
BANK OF COMMUNICATIONS, NEW YORK
BRANCH, as a Lender
By: /s/ De Cai Li
-----------------------------------------
Name: De Cai Li
Title: General Manager
The Bank of East Asia, Limited, New York Branch,
as a Lender
By: /s/ Xxx Xxxx
-------------------------------------------------
Name: Xxx Xxxx
Title: Head of Credit
By: /s/ Xxxxxxx Xxxx
-------------------------------------------------
Name: Xxxxxxx Xxxx
Title: Senior Business Manager
THE BANK OF NOVA SCOTIA,
as Syndication Agent and a Lender
By: /s/ Xxxx X. Xxxxxx
-----------------------------------------------
Name: Xxxx X. Xxxxxx
Title: Managing Director
BARCLAYS BANK PLC, as a Lender
By: /s/ Xxxx Xxxxx
-------------------------------------------------
Name: Xxxx Xxxxx
Title: Relationship Director
CITIC Ka Wah Bank Ltd., New York Branch, as a Lender
By: /s/ Xxxxxxx Xxxx
-----------------------------------------------
Name: Xxxxxxx Xxxx
Title: Vice President
Xxxxx Xxx Commercial Bank, Ltd., New York
Branch, as a Lender
By: /s/ Ming-Xxxxx Xxx
------------------------------------------------
Name: Ming-Xxxxx Xxx
Title: VP & General Manager
FLEET NATIONAL BANK,
as Documentation Agent and a Lender
By: /s/ Xxxxxxx X. Xxxxx
-------------------------------------------------
Name: Xxxxxxx X. Xxxxx
Title: Managing Director
KBC BANK NV, as a Lender
By: /s/ Xxxxxx Xxxxxxxx
-------------------------------------------------
Name: Xxxxxx Xxxxxxxx
Title: First Vice President
By: /s/ Xxxx Xxxxxx
-------------------------------------------------
Name: Xxxx Xxxxxx
Title: Vice President
US Bank N.A., as a Lender
By: /s/ Xxxxxxx X. Xxxx
-------------------------------------------------
Name: Xxxxxxx X. Xxxx
Title: Vice President
WACHOVIA BANK, NATIONAL ASSOCIATION,
as Syndication Agent and a Lender
By: /s/ Xxxxxxxxx Xxxxxxxxxxx
------------------------------------------------
Name: Xxxxxxxxx Xxxxxxxxxxx
Title: Vice President
