EXHIBIT 10.41
CREDIT AGREEMENT
dated as of January 15, 1998
among
LAW COMPANIES GROUP, INC.,
as Borrowers' Representative
and a Guarantor
LAW ENGINEERING AND ENVIRONMENTAL SERVICES, INC.
AND XXXX LTD.,
as Borrowers,
LAW ENVIRONMENTAL CONSULTANTS, INC.
LAW INTERNATIONAL, INC.
XXXX INTERNATIONAL HOLDINGS, INC.
and
XXXX HOLDINGS LTD.
as Guarantors
BANK OF AMERICA NATIONAL TRUST AND SAVINGS
ASSOCIATION, ACTING INDIVIDUALLY AND THROUGH ITS LONDON BRANCH,
as Issuing Bank, Overdraft Bank, International Agent and a Lender,
BANK OF AMERICA, FSB,
as U.S. Agent and a Lender
and
ANY OTHER FINANCIAL INSTITUTIONS FROM TIME TO TIME PARTY HERETO,
as Lenders
iv
TABLE OF CONTENTS
Page
ARTICLE I.DEFINITIONS.........................................................1
1.1 Certain Defined Terms.....................................................1
1.2 Other Interpretive Provisions............................................25
ARTICLE II.THE CREDIT........................................................26
2.1 Amounts and Terms of Revolving Loan Commitment...........................26
2.2 Amounts and Terms of CAPEX Loan Commitment...............................27
2.3 Loan Accounts............................................................27
2.4 Manner of Borrowing and Disbursement.....................................28
2.5 Conversion and Continuation Elections....................................29
2.6 Voluntary Termination or Reduction of Commitments........................30
2.7 Mandatory Reduction of Commitments.......................................30
2.8 Optional Prepayments.....................................................31
2.9 Mandatory Repayments.....................................................31
2.10 Repayment...............................................................32
2.11 Interest................................................................32
2.12 Fees....................................................................33
2.13 Computation of Fees and Interest........................................33
2.14 Payments by the Borrowers...............................................34
2.15 Payments by the Lenders.................................................34
2.16 Sharing of Payments, Etc................................................35
2.17 Application of Payments.................................................36
2.18 Foreign Exchange Facility...............................................36
2.19 Guaranty................................................................38
ARTICLE 3.THE LETTERS OF CREDIT..............................................41
3.1 The Letter of Credit Subfacility................... .....................41
3.2 Issuance, Amendment and Renewal of Letters of Credit.....................42
3.3 Risk Participations, Drawings and Reimbursements.........................44
3.4 Repayment of Participations in Letters of Credit.........................45
3.5 Role of the Issuing Bank.................................................45
3.6 Obligations Absolute.....................................................46
3.7 Cash Collateral Pledge...................................................47
3.8 Letter of Credit Fees....................................................47
3.9 Uniform Customs and Practice.............................................47
ARTICLE 4.TAXES, YIELD PROTECTION AND ILLEGALITY.............................47
4.1 Taxes....................................................................47
4.2 Illegality...............................................................49
4.3 Increased Costs and Reduction of Return..................................50
4.4 Funding Losses...........................................................50
4.5 Inability to Determine Rates.............................................51
4.6 Certificates of Lenders..................................................51
4.7 Substitution of Lenders..................................................51
4.8 Survival.................................................................52
ARTICLE 5.CONDITIONS PRECEDENT...............................................52
5.1 Conditions of Initial Loans..............................................52
5.2 Conditions to All Credit Extensions......................................54
ARTICLE 6.REPRESENTATIONS AND WARRANTIES.....................................55
6.1 Corporate Existence and Power............................................55
6.2 Corporate Authorization; No Contravention................................55
6.3 Governmental Authorization...............................................56
6.4 Binding Effect...........................................................56
6.5 Litigation...............................................................56
6.6 No Default...............................................................56
6.7 ERISA Compliance.........................................................56
6.8 Use of Proceeds; Margin Regulations......................................57
6.9 Title to Properties......................................................57
6.10 Taxes...................................................................57
6.11 Financial Condition, Fiscal Year........................................58
6.12 Environmental Matters...................................................58
6.13 Collateral Documents....................................................58
6.14 Regulated Entities......................................................59
6.15 No Burdensome Restrictions..............................................59
6.16 Business and Collateral Locations.......................................59
6.17 Real Property...........................................................59
6.18 Intellectual Property; Licenses.........................................60
6.19 Subsidiaries............................................................60
6.20 Joint Ventures..........................................................60
6.21 Solvency................................................................61
6.22 Swap Obligations........................................................61
6.23 Material Contracts; Labor Matters.......................................61
6.24 Insurance...............................................................61
6.25 Year 2000 Compliance....................................................61
6.26 Full Disclosure.........................................................61
ARTICLE 7.AFFIRMATIVE COVENANTS..............................................62
7.1 Financial Statements.....................................................62
7.2 Certificates; Other Information..........................................62
7.3 Borrowing Base Certificate...............................................63
7.4 Notices..................................................................63
7.5 Preservation of Corporate Existence, Etc.................................64
7.6 Maintenance of Property and Management...................................65
7.7 Insurance................................................................65
7.8 Payment of Obligations...................................................65
7.9 Compliance with Laws.....................................................65
7.10 Compliance with ERISA...................................................66
7.11 Inspection of Property and Books and Records............................66
7.12 Environmental Laws......................................................66
7.13 Use of Proceeds.........................................................66
7.14 Further Assurances......................................................66
7.15 Additional Guarantors...................................................67
7.16 Required Swap Contracts.................................................67
ARTICLE 8.NEGATIVE COVENANTS.................................................68
8.1 Liens....................................................................68
8.2 Liquidation: Change in Ownership or Name; Disposition or Acquisition
of Assets; Etc...............................................................69
8.3 Consolidations and Mergers...............................................70
8.4 Loans and Investments....................................................70
8.5 Acquisitions.............................................................71
8.6 Indebtedness.............................................................71
8.7 Transactions with Affiliates.............................................72
8.8 Use of Proceeds..........................................................72
8.9 Contingent Obligations...................................................72
8.10 Joint Ventures..........................................................73
8.11 Restricted Payments.....................................................73
8.12 ERISA...................................................................73
8.13 Change in Business......................................................73
8.14 Accounting Changes......................................................73
8.15 Intellectual Property...................................................73
8.16 Negative Pledges, Etc...................................................74
ARTICLE 0.XXXXXXXXX COVENANTS................................................74
9.1 Capital Expenditures.....................................................74
9.2 Leverage Ratio...........................................................74
9.3 Fixed Charge Coverage....................................................74
9.4 EBITDA...................................................................75
ARTICLE 00.XXXXXX OF DEFAULT.................................................75
10.1 Event of Default........................................................75
10.2 Remedies................................................................77
10.3 Specified Swap Contract Remedies........................................78
10.4 Rights Not Exclusive....................................................78
ARTICLE 11.THE AGENT.........................................................78
11.1 Appointment and Authorization; "Agent" and "Issuing Bank"...............78
11.2 Delegation of Duties....................................................79
11.3 Liability of Agent......................................................79
11.4 Reliance by Agent.......................................................79
11.5 Notice Of Default.......................................................79
11.6 Credit Decision.........................................................80
11.7 Indemnification of Agent................................................80
11.8 Agent in Individual Capacity............................................80
11.9 Successor Agent; Successor Issuing Bank.................................81
11.10 Withholding Tax........................................................81
11.11 Collateral Matters.....................................................82
ARTICLE 12.MISCELLANEOUS.....................................................83
12.1 Amendments and Waivers..................................................83
12.2 Notices.................................................................84
12.3 No Waiver; Cumulative Remedies..........................................85
12.4 Costs and Expenses......................................................85
12.5 Obligors' Indemnification...............................................85
12.6 Marshalling; Payments Set Aside.........................................86
12.7 Successors and Assigns..................................................86
12.8 Assignments and Participations..........................................86
12.9 Confidentiality.........................................................88
12.10 Set-off................................................................88
12.11 Automatic Debits of Fees Upon Default..................................89
12.12 Notification of Addresses, Lending Offices, Etc........................89
12.13 Counterparts...........................................................89
12.14 Severability...........................................................89
12.15 No Third Parties Benefited.............................................89
12.16 Governing Law and Jurisdiction.........................................89
12.17 WAIVER OF JURY TRIAL...................................................90
12.18 Conflicts..............................................................90
12.20 Entire Agreement.......................................................91
-1-
CREDIT AGREEMENT
PREAMBLE: THIS CREDIT AGREEMENT, dated as of January 15, 1998 (the
"Agreement Date"), is made by and among LAW COMPANIES GROUP, INC., a corporation
organized under the laws of the State of Georgia, United States ("LCGI"), as
Borrowers' Representative and as a Guarantor; LAW ENGINEERING AND ENVIRONMENTAL
SERVICES, INC., a corporation organized under the laws of the State of Georgia,
United States ("U.S. Borrower"), and XXXX LTD, a company organized under the
laws of the United Kingdom ("International Borrower"; the International Borrower
and the U.S. Borrower sometimes hereinafter called, collectively, herein the
"Borrowers" or, individually, a "Borrower"), as Borrowers; LAW ENVIRONMENTAL
CONSULTANTS, INC., a corporation organized under the laws of the State of
Georgia, United States ("LECI"), LAW INTERNATIONAL, INC., a corporation
organized under the laws of the State of Georgia, United States ("LII"), XXXX
INTERNATIONAL HOLDINGS, INC., a corporation organized under the laws of the
State of Delaware ("GIH"), and XXXX HOLDINGS LTD., a corporation organized under
the laws of the United Kingdom ("GHL"; GHL, GIH, LII and LECI, together with
other Subsidiaries becoming Guarantors hereafter pursuant to the operation and
effect of Section 7.15, are sometimes hereinafter called, collectively, the
"Subsidiary Guarantors" and, individually, a "Subsidiary Guarantor"), as
additional Guarantors; BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, a
national banking association organized under the laws of the United States
("BOA"), acting individually and through its London Branch (in such latter
capacity, BOA is sometimes called herein, "XXXX"), as Issuing Bank, Overdraft
Bank, International Agent and a Lender; BANK OF AMERICA, FSB, a federal savings
bank organized under the laws of the United States ("BOAFSB"), as U.S. Agent and
a Lender; and any other financial institutions party hereto from time to time
(herein sometimes called, collectively, together with BOA, XXXX and BOAFSB, the
"Lenders" or, individually, a "Lender"), as Lenders; for the purpose of setting
forth the terms, covenants and conditions governing certain credit facilities
which the Lenders are making available to the Borrowers at the request of LCGI,
as their representative (LCGI, acting in such capacity, herein sometimes called
the "Borrowers' Representative"), consisting, initially, of (i) a $40 million
revolving credit facility being made available to the U.S. Borrower, (ii) a
(pound)11 million combined revolving credit and overdraft facility being made
available to the International Borrower, (iii) a $2,664,000 credit facility,
initially, increasing ultimately to $7,992,000, for capital expenditures being
made available to the U.S. Borrower, and (iv) a (pound) 800,000 credit facility,
initially, increasing ultimately to (pound)2,400,000, for capital expenditures
being made available to the International Borrower. NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:
ARTICLE I.
DEFINITIONS
I.1 Certain Defined Terms. The following terms have the following
meanings:
"Affiliate" means, as to any Person, any other Person which, directly
or indirectly, is in control of, is controlled by, or is under common
control with, such Person. A Person shall be deemed to control another
Person if the controlling Person possesses, directly or indirectly, the
power to direct or cause the direction of the management and policies of
the other Person, whether through the ownership of voting securities,
membership interests, by contract, or otherwise.
"Agent" shall mean either the U.S. Agent or the International Agent;
and "Agents" shall refer, collectively, thereto; provided, however, that
wherever the term "Agent" is used, unless otherwise expressly provided or
where the context otherwise clearly requires, "Agent" shall mean the U.S.
Agent.
"Agent-Related Persons" means each Agent, Issuing Bank and the
Overdraft Bank, together with their respective Affiliates and the officers,
directors, employees, agents and attorneys-in-fact of such Persons and
Affiliates.
"Agent's Payment Office" means the address for payments to each Agent
set forth on Rider 1 or such other address as each Agent may from time to
time specify.
"Aggregate Revolving Credit Obligations" means, as of any particular
time, the sum of (a) the Aggregate Revolving Dollar Obligations, plus
(b) the Equivalent Amount (in Dollars) of the Aggregate Revolving Pound
Obligations.
"Aggregate Revolving Dollar Obligations" means, as of any particular
time, the sum of (a) all Revolving Dollar Loans then outstanding, plus (b)
all U.S. L/C Obligations then outstanding.
"Aggregate Revolving Pound Obligations" means, as of any particular
time, the sum of (a) all Revolving Pound Loans then outstanding, including
the Equivalent Amount (in Pounds) of any such Revolving Pound Loans made in
Alternative Currencies, plus (b) all International L/C Obligations then
outstanding, including the Equivalent Amount (in Pounds) of any
International L/C Obligations issued in Alternative Currencies, plus (c)
all Overdraft Pound Loans then outstanding.
"Agreement" means this Credit Agreement, as it may be amended or
modified from time to time.
"Agreement Date" means the date first specified as such hereinabove.
"Alternative Currencies" means any currencies other than Pounds
approved by the International Agent from time to time for the issuance of
International Letters of Credit or the making of Revolving Pound Loans,
Overdraft Pound Loans or CAPEX Pound Loans.
"Applicable Percentage" means the appropriate applicable percentage(s)
per annum corresponding to the Leverage Ratio in effect as of the most
recent Calculation Date (as defined below) as shown below:
------------ --------------- --------------- --------------- -------------- --------------- -------------------- ----------------
Pricing Leverage Ratio LIBOR Rate Overdraft Base Rate Unused Line U.S. Letter of International
Level and LIBOR Pound Loan Percentage Fee Percentage Credit Fee Letter of
Daily Rate Rate Percentage Credit Fee
Percentage Percentage Percentage
------------ --------------- --------------- --------------- -------------- --------------- -------------------- ----------------
------------ --------------- --------------- --------------- -------------- --------------- -------------------- ----------------
I greater than 2.00% 2.00% -.00% .30% 1.50% 1.75%
2.75:1
------------ --------------- --------------- --------------- -------------- --------------- -------------------- ----------------
------------ --------------- --------------- --------------- -------------- --------------- -------------------- ----------------
II 2.25:1 to 1.75% 1.75% -.00% .25% 1.25% 1.75%
2.75:1
------------ --------------- --------------- --------------- -------------- --------------- -------------------- ----------------
------------ --------------- --------------- --------------- -------------- --------------- -------------------- ----------------
III Below 2.25:1 1.50% 1.50% -.25% .20% 1.25% 1.75%
------------ --------------- --------------- --------------- -------------- --------------- -------------------- ----------------
The Applicable Percentage for Loans, Unused Line Fees and Letter of
Credit Fees shall, in each case, be determined by the U.S. Agent and
adjusted quarterly on that date (each, a "Calculation Date") which is five
(5) Business Days after the date by which the Borrowers' Representative is
required to provide a Compliance Certificate to the U.S. Agent in
accordance with the provisions of Section 7.2(a); provided, however, that
the initial Applicable Percentage for Loans, Unused Line Fees and Letter of
Credit Fees shall be based on Pricing Level I (as shown above), and shall
remain at Pricing Level I until the first Calculation Date subsequent to
March 31, 1998 and, thereafter, the Pricing Level shall be determined by
the then current Leverage Ratio calculated as of the most recent
Calculation Date; and, provided, further, that if the Borrowers'
Representative fails to provide a Compliance Certificate required by
Section 7.2(a) on or before the then most recent Calculation Date, the
Applicable Percentage for Loans, Unused Line Fees and Letter of Credit Fees
shall be based on Pricing Level I unless and until such time that an
appropriate Compliance Certificate is provided to the Agent whereupon the
Pricing Level shall be determined by the then current Leverage Ratio. Each
Applicable Percentage shall be effective from one Calculation Date until
the next Calculation Date. Any adjustment in the Applicable Percentage
shall be applicable to all existing Loans and Letters of Credit existing on
the as well as any new Loans made or Letters of Credit issued subsequent
thereto but prior to the next.
"Assignee" has the meaning specified in Section 12.8(a).
"Assignment of Intercompany Notes" means all documents and instruments
executed by each Borrower in connection with the satisfaction of the
obligations of such Borrower set forth in Section 8.6(h); as the same may
be modified, supplemented or amended from time to time.
"Attorney Costs" means and includes the reasonable fees and
disbursements of any law firm or other external counsel, the reasonable
allocated cost of internal legal services and the reasonable disbursements
of internal counsel.
"Available Commitment" means, collectively, the Available Revolving
Dollar Loan Commitment and the Equivalent Amount (in Dollars) of the
Available Pound Loan Commitment.
"Available Revolving Dollar Loan Commitment" means, as of any
particular time, (a) the amount of the Revolving Dollar Loan Commitment,
minus (b) all Aggregate Revolving Dollar Obligations then outstanding.
"Available Revolving Pound Loan Commitment" means, as of any
particular time, (a) the amount of the Revolving Pound Loan Commitment,
minus (b) all Aggregate Revolving Pound Obligations then outstanding.
"Bankruptcy Code" means the Federal Bankruptcy Reform Act of 1978 (11
U.S.C. Section 101, et seq.);
"Base Rate" means, for any day, the rate of interest in effect for
such day as publicly announced from time to time by the Reference Bank at
its home office as its "reference rate." The "reference rate" is a rate set
by the Reference Bank based upon various factors including its costs and
desired return, general economic conditions and other factors, and is used
as a reference point for pricing some loans, which may be priced at, above,
or below such announced rate. Any change in the reference rate announced by
the Reference Bank shall take effect at the opening of business on the day
specified in the public announcement of such change.
"Base Rate Loan" means a Loan that bears interest at a per annum rate
equal to the Base Rate in effect from time to time plus the Applicable
Percentage.
"BOA" has the meaning given to such term in the preamble to this
Agreement.
"BOAFSB" has the meaning given to such term in the preamble to this
Agreement.
"XXXX" has the meaning given to such term in the preamble to this
Agreement.
"Borrowers' Representative" has the meaning given to such term in the
preamble to this Agreement.
"Borrowers" and "Borrower" shall have the meanings given to such terms
in the preamble to this Agreement.
"Borrowing" means a borrowing hereunder consisting of Loans of the
same Type made to a Borrower on the same day by the Lenders under Article
II, and, other than in the case of Base Rate Loans, Overdraft Pound Loans
and LIBOR Daily Rate Loans, having the same Interest Period.
"Borrowing Base" means, at any particular time, the lesser of: (i) the
Revolving Loan Amount; or (ii) the product of (a) 2.75 times (b) EBITDA for
the most recent twelve (12) fiscal month period of LCGI for which monthly
financial statements are then available.
"Borrowing Base Certificate" means a document substantially in the
form of Exhibit A hereto, with appropriate insertions, or such other form
as shall be acceptable to the Agent, as it may be amended or modified from
time to time, pursuant to which a Responsible Officer of the Borrowers'
Representative shall certify the Borrowing Base.
"Borrowing Base Deficiency" means any condition wherein the Aggregate
Revolving Credit Obligations exceed the Borrowing Base as set forth on the
most recent Borrowing Base Certificate delivered to the U.S. Agent or as
otherwise reasonably determined by the U.S. Agent.
"Borrowing Date" means any date on which a Borrowing occurs under
Section 2.3.
"Borrowing Limitations" has the meaning set forth in Section 2.4(a).
"Business Day" means any day other than a Saturday, Sunday or other
day on which commercial banks in Atlanta, Georgia are authorized or
required by law to close and, if the applicable Business Day relates to any
LIBOR Rate Loan, LIBOR Daily Rate Loan, Revolving Pound Loan, Overdraft
Pound Loan or International L/C Obligation, means such a day on which
dealings are carried on in London, England and any other applicable
offshore dollar interbank market.
"CAPEX Dollar Loan Amount" means an amount of up to Two Million Six
Hundred Sixty-Four Thousand Dollars ($2,664,000), initially; increasing to
Five Million Three Hundred Twenty-Eight Thousand Dollars ($5,328,000) on
the first anniversary of the Agreement Date; and increasing to Seven
Million Nine Hundred Ninety-Two Thousand Dollars ($7,992,000) on the second
anniversary of the Closing Date; as it may be reduced at any time or from
time to time by the U.S. Borrower pursuant to Section 2.6.
"CAPEX Dollar Loan Commitment" means the several obligations of the
U.S. Lenders to make advances of loaned funds in an aggregate amount of up
to the CAPEX Dollar Loan Amount to the U.S. Borrower pursuant to the terms
hereof.
"CAPEX Dollar Loan Notes" means those certain Promissory Notes, each
to be dated as of the disbursement date of the CAPEX Dollar Loan
corresponding thereto, issued by the U.S. Borrower to each U.S. Lender, to
evidence its Pro Rata Share of each CAPEX U.S. Loan made pursuant to
Section 2.2, in substantially the form of Exhibit B hereto; and any
extensions, renewals, or amendments to, or replacements of, the foregoing.
"CAPEX Dollar Loans" means, collectively, all advances of loaned funds
made by the U.S. Lenders to the U.S. Borrower under the CAPEX Dollar Loan
Commitments, not to exceed, in aggregate principal amount, the CAPEX Dollar
Loan Commitment, and evidenced by the CAPEX Dollar Loan Notes. "CAPEX Loan"
shall refer, individually, thereto.
"CAPEX Loan Commitment" means, collectively, the CAPEX Dollar Loan
Commitment and the CAPEX Pound Loan Commitment.
"CAPEX Loan Notes" means, collectively, the CAPEX Dollar Loan Notes
and the CAPEX Pound Loan Notes. "CAPEX Loan Note" shall refer individually
thereto.
"CAPEX Loans" means, collectively, the CAPEX Dollar Loans and the
CAPEX Pound Loans. "CAPEX Loan" shall refer individually thereto.
"CAPEX Pound Amount" means an amount of up to Eight Hundred Thousand
Pounds (800,000), initially; increasing to One Million Six Hundred
Thousand Pounds (1,600,000) on the first anniversary of the Agreement
Date; and increasing to Two Million Four Hundred Thousand Pounds
(2,400,000) on the second anniversary of the Agreement Date; as it may be
reduced at any time or from time to time by the International Borrower
pursuant to Section 2.6.
"CAPEX Pound Loan Commitment" means the several obligations of the
International Lenders to make advances of loaned funds in an aggregate
amount of up to the CAPEX Pound Loan Amount to the International Borrower
pursuant to the terms hereof.
"CAPEX Pound Loan Notes" means those certain Promissory Notes, each to
be dated as of the disbursement date of the CAPEX Pound Loan corresponding
thereto, issued by the International Borrower to each International Lender,
to evidence its Pro Rata Share of each CAPEX Pound Loan made pursuant to
Section 2.2, in substantially the form of Exhibit C hereto; and any
extensions, renewals, or amendments to, or replacements of, the foregoing.
"CAPEX Pound Loans" means, collectively, all advances of loaned funds
made by the International Lenders to the International Borrower under the
CAPEX Pound Loan Commitment, not to exceed, in aggregate principal amount,
the CAPEX Pound Loan Commitment, and evidenced by the CAPEX Pound Loan
Notes. "CAPEX Pound Loan" shall refer individually thereto.
"Capital Adequacy Regulation" means any guideline, request or
directive of any central bank or other Governmental Authority, or any other
law, rule or regulation, whether or not having the force of law (but which
any affected Lenders recognize as having the force of law), in each case,
regarding capital adequacy of any bank or of any corporation controlling a
bank.
"Capital Expenditures" means, for any fiscal year of LCGI and its
consolidated Subsidiaries, the sum of (a) the aggregate amount of all
expenditures of or Indebtedness incurred by such Persons for fixed or
capital assets made during such period which, in accordance with GAAP,
would be classified as capital expenditures, and (b) the aggregate amount
of all Capitalized Lease Obligations of such Persons incurred during such
period, and (c) the aggregate amount of all capitalized research and
development costs as shown on the consolidated balance sheet and cash flow
statement of LCGI, and such consolidated Subsidiaries for such fiscal year.
"Capital Stock" means, as applied to any Person, any capital stock of
such Person, regardless of class or designation, and all warrants, options,
purchase rights, conversion or exchange rights, voting rights, calls or
claims of any character with respect thereto.
"Capitalized Lease" means any lease which is or should be capitalized
on the balance sheet of the lessee in accordance with GAAP.
"Capitalized Lease Obligations" means, with respect to any Person, all
monetary obligations of such Person under any Capitalized Leases, and, for
purposes of this Agreement and each other Loan Document, the amount of such
obligations shall be the capitalized amount thereof, determined in
accordance with GAAP, and the stated maturity thereof shall be the date of
the last payment of rent or any other amount due under such Capitalized
Lease prior to the first date upon which such Capitalized Lease may be
terminated by the lessee without payment of a penalty.
"Cash Collateralize" means to pledge and deposit with or deliver to
the appropriate Collateral Agent, for the benefit of the Issuing Bank and
the Lenders, as additional collateral for the L/C Obligations, cash or
deposit account balances pursuant to documentation in form and substance
reasonably satisfactory to such Collateral Agent and the Issuing Bank
(which documents are hereby consented to by the Lenders). Derivatives of
such term shall have corresponding meaning. Cash collateral shall be
maintained in blocked, non-interest bearing deposit accounts as directed by
the appropriate Collateral Agent.
"CERCLA" has the meaning specified in the definition of "Environmental
Laws."
"Change in Control" means the occurrence of any of the following: (a)
any Person (other than a Person that, as of the Agreement Date, owns, or
has the right vote, ten percent (10%) or more of the outstanding shares of
voting securities of LCGI) or group (as such term is defined in Rule 13d-5
under the Exchange Act) of Persons shall as a result of a tender or
exchange offer, open market purchase, merger, privately negotiated
purchases or otherwise, have become, directly or indirectly, the beneficial
owner (within the meaning of Rule 13d-3 of the Exchange Act) of securities
having twenty percent (20%) or more of the ordinary voting power of the
then outstanding securities of LCGI; or (b) subsequent to the Agreement
Date, either Xxxxx Xxxxx or Xxxxxx Xxxxxxx shall cease to be actively
involved in the day-to-day executive management of LCGI, unless such
individual is replaced with an individual equally acceptable to the U.S.
Agent as soon as practicable but in any event within ninety (90) days.
"Code" means the Internal Revenue Code of 1986, and regulations
promulgated thereunder.
"Collateral" means all property and interests in property and proceeds
thereof now owned or hereafter acquired by any Person in or upon which a
Lien now or hereafter exists in favor of any Obligee, individually or as
agent for itself and/or other Obligees, whether under this Agreement or
under any other Collateral Documents.
"Collateral Agent" means: (i) BOAFSB with respect to all U.S.
Collateral; and (ii) XXXX, with respect to all International Collateral.
"Collateral Documents" means, collectively, (i) the Security
Agreements, the Stock Pledge Agreements, the Assignment of Intercompany
Notes, and all other security agreements, mortgages, deeds of trust, patent
and trademark assignments, lease assignments, guarantees and other similar
agreements between or among any Obligors and Obligees, now or hereafter
delivered to any Obligees pursuant to or in connection with the
transactions contemplated hereby, and all financing statements (or
comparable documents now or hereafter filed in accordance with the Uniform
Commercial Code or comparable law) against any Obligor as debtor in favor
of any Obligee, as secured party, and (ii) any amendments, supplements,
modifications, renewals, replacements, consolidations, substitutions and
extensions of any of the foregoing.
"Commitments" means, collectively, the Revolving Dollar Loan
Commitment, the Revolving Pound Loan Commitment, the CAPEX Dollar Loan
Commitment and the CAPEX Pound Loan Commitment.
"Commitment Percentages" means the percentages in which the Lenders
are severally bound to satisfy the Commitments as shall be in effect from
time to time; such percentages as of the Agreement Date are as set forth on
Rider 2 hereto.
"Compliance Certificate" means a certificate substantially in the form
of Exhibit D.
"Contingent Obligation" means, as to any Person, any direct or
indirect liability of that Person, whether or not contingent, with or
without recourse, (a) with respect to any Indebtedness, lease, dividend,
letter of credit or other obligation (the "primary obligations") of another
Person (the "primary obligor"), including any obligation of that Person (i)
to purchase, repurchase or otherwise acquire such primary obligations or
any security therefor, (ii) to advance or provide funds for the payment or
discharge of any such primary obligation, or to maintain working capital or
equity capital of the primary obligor or otherwise to maintain the net
worth or solvency or any balance sheet item, level of income or financial
condition of the primary obligor, (iii) to purchase property, securities or
services primarily for the purpose of assuring the owner of any such
primary obligation of the ability of the primary obligor to make payment of
such primary obligation, or (iv) otherwise to assure or hold harmless the
holder of any such primary obligation against loss in respect thereof
(each, a "Guaranty Obligation"); (b) with respect to any Surety Instrument
(other than any Letter of Credit) issued for the account of that Person or
as to which that Person is otherwise liable for reimbursement of drawings
or payments; (c) to purchase any materials, supplies or other property
from, or to obtain the services of, another Person if the relevant contract
or other related document or obligation requires that payment for such
materials, supplies or other property, or for such services, shall be made
regardless of whether delivery of such materials, supplies or other
property is ever made or tendered, or such services are ever performed or
tendered, or (d) in respect of any Swap Contract. The amount of any
Contingent Obligation (other than any in respect of the Swap Contracts)
shall, in the case of Guaranty Obligations, be deemed equal to the stated
or determinable amount of the primary obligation in respect of which such
Guaranty Obligation is made or if less, the maximum stated amount of the
Guaranty Obligation or, if not stated or if indeterminable, the maximum
reasonably anticipated liability in respect thereof; and in the case of
other Contingent Obligations other than in respect of Swap Contracts, shall
be equal to the maximum reasonably anticipated liability in respect thereof
and, in the case of Contingent Obligations in respect of Swap Contracts
shall be equal to the amount that would be determined if such Swap Contract
were terminated on such date of determination, taking into account any
legally enforceable netting arrangement relating to such Swap Contract
(such amount, "Swap Termination Value").
"Contractual Obligation" means, as to any Person, any provision of any
security issued by such Person or of any agreement, undertaking, contract,
indenture, mortgage, deed of trust or other instrument, document or
agreement to which such Person is a party or by which it or any of its
property is bound.
"Conversion/Continuation Date" means any date on which, under
Section 2.5, a Borrower, acting through the Borrowers' Representative (a)
converts Loans of one Type to another Type, or (b) continues as Loans of
the same Type, but with a new Interest Period, Loans having Interest
Periods expiring on such date.
"Credit Extension" means and includes (a) the making of any Loans
hereunder, (b) the Issuance of any Letters of Credit hereunder, and (c) the
taking of any other action similar in effect thereto by any Obligee.
"Default" means any event or circumstance which, with the giving of
notice, the lapse of time, or both, would (if not cured or otherwise
remedied during such time) constitute an Event of Default.
"Default Rate" means a simple per annum interest rate equal to two
percent (2%) per annum in excess of the interest rate otherwise then
applicable to any Obligations.
"Dollars", "dollars" or "$" shall mean lawful money of the United
States.
"EBITDA" means, for any period, for LCGI, on a consolidated basis, the
net income for such period (computed without regard to any extraordinary
gains or extraordinary losses), plus without duplication, and to the extent
reflected as charges in the statement of net income for such period, the
sum of (a) income taxes, (b) interest expense, (c) depreciation and
amortization expense.
"EBIRT" means, for any particular fiscal period, for LCGI, on a
consolidated basis, the net income for such period (computed without regard
to any extraordinary gains or extraordinary losses), plus (i) without
duplication, to the extent reflected as charges in the statement of net
income for such period, the sum of (a) income taxes, (b) interest expense,
(c) rent expense.
"Eligible Assignee" means (a) a commercial bank or other financial
institution organized under the laws of the United States, any state
thereof or England, and having a combined capital and surplus of at least
One Hundred Million Dollars ($100,000,000) (or the Equivalent Amount
thereof in Pounds); (b) a commercial bank or other financial institution
organized under the laws of any other country which is a member of the
Organization for Economic Cooperation and Development (the "OECD"), or a
political subdivision of any such country, and having a combined capital
and surplus of at least One Hundred Million Dollars ($100,000,000) (or the
Equivalent Amount thereof in Pounds or Alternative Currency, as the case
may be); and (c) a Person that is primarily engaged in the business of
commercial banking or asset based lending and that is an Affiliate of a
Lender.
"Eligible Capital Assets" means new or used equipment, machinery or
fixtures purchased by a Borrower on or subsequent to the Agreement Date
which are used or useful in the ordinary course of such Borrower's business
operations and which the appropriate Agent, in the reasonable exercise of
its discretion, otherwise determines to be eligible for financing with one
or more CAPEX Loans.
"Environmental Claims" means all claims by any Governmental Authority
or other Person alleging potential liability or responsibility for
violation of any Environmental Laws.
"Environmental Laws" means the Resource Conservation and Recovery Act,
42 U.S.C. Section 690 et seq., the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended ("CERCLA"), any
so-called "Superfund" or "Superlien" law, the Toxic Substances Control Act,
and any successor statute of similar import, together with the regulations
thereunder, in each case as in effect from time to time, and any other
applicable federal, English, European community, state or local statute,
law, ordinance, code, rule, regulation, guideline, order or decree, or
other requirement regulating, relating to, or imposing liability or
standards of conduct (including, but not limited to, permit requirements,
and emission or effluent restrictions) concerning any Hazardous Materials
or any hazardous, toxic or dangerous waste, substance or constituent, or
any pollutant or contaminant or other substance, whether solid, liquid or
gas, or otherwise relating to public health and safety and/or protection of
the environment, as now or at any time hereafter in effect. References to
sections of any such statute shall be construed to also refer to any
successor sections.
"Equivalent Amount" means (i) whenever this Agreement requires or
permits a determination on any date of the equivalent in Dollars of an
amount expressed in Pounds, the equivalent amount in Dollars of an amount
expressed in Pounds as determined by the appropriate Agent, in good faith,
on such date on the basis of the Spot Rate for the purchase of Dollars with
such Pounds on the relevant Computation Date provided for hereunder; or
(ii) whenever this Agreement or any other Loan Document requires or permits
a determination on any date of the equivalent amount in Pounds of an amount
expressed in any Alternative Currency, the equivalent amount in Pounds of
an amount expressed in the Alternative Currency as determined by the
appropriate Agent, in good faith, on such date on the basis of the Spot
Rate for the purchase of such Pounds with the Alternative Currency on the
relevant computation date provided for hereunder.
"ERISA" means the Employee Retirement Income Security Act of 1974, and
regulations promulgated thereunder.
"ERISA Affiliate" means any trade or business (whether or not
incorporated) under common control with either Borrower within the meaning
of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the
Code for purposes of provisions relating to Section 412 of the Code)
"ERISA Event" means (a) a Reportable Event with respect to a Pension
Plan; (b) a withdrawal by either Borrower or any ERISA Affiliate from a
Pension Plan subject to Section 4063 of ERISA during a plan year in which
it was a substantial employer (as defined in Section 4001(a)(2) of ERISA)
or a cessation of operations which is treated as such a withdrawal under
Section 4062(e) of ERISA; (c) a complete or partial withdrawal by either
Borrower or any ERISA Affiliate from a Multiemployer Plan or notification
that a Multiemployer Plan is in reorganization; (d) the filing of a notice
of intent to terminate, the treatment of a Plan amendment as a termination
under Section 4041 or 4041A of ERISA, or the commencement of proceedings by
the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or
condition which might reasonably be expected to constitute grounds under
Section 4042 of ERISA for the termination of, or the appointment of a
trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the
imposition of any liability under Title IV of ERISA, other than PBGC
premiums due but not delinquent under Section 4007 of ERISA, upon either
Borrower or any ERISA Affiliate.
"Estimated Remediation Costs" means all costs associated with
performing work to remediate contamination of real property or groundwater,
including engineering and other professional fees and expenses, costs to
remove, transport and dispose of contaminated soil, costs to "cap" or
otherwise contain contaminated soil, and costs to pump and treat water and
monitor water quality.
"Event of Default" means any of the events or circumstances specified
in Section 10.1.
"Exchange Act" means the Securities Exchange Act of 1934, and
regulations promulgated thereunder.
"FDIC" means the Federal Deposit Insurance Corporation, and any
Governmental Authority succeeding to any of its principal functions.
"Federal Funds Rate" means, for any day, the rate set forth in the
weekly statistical release designated as H.15 (519), or any successor
publication, published by the Federal Reserve Bank of New York (including
any such successor, H.15 (519)) on the preceding Business Day opposite the
caption "Federal Funds (Effective)"; or, if for any relevant day such rate
is not so published on any such preceding Business Day, the rate for such
day will be the arithmetic mean as determined by the Agent of the rates for
the last transaction in overnight Federal funds arranged prior to 12:00
p.m. (New York City time) on that day by each of three leading brokers of
Federal funds transactions in New York, New York selected by the Agent.
"Fee Letter" has the meaning specified in Section 2.12(a).
"FEMA" has the meaning specified in Section 2.18.
"Foreign Exchange Agreement" means a foreign currency exchange hedging
product agreement providing foreign currency exchange protection, and
arising at any time between either Borrower, on the one hand, and one or
more of the Lenders (or an Affiliate of a Lender), on the other hand, as
such agreement may be modified, supplemented or amended, and in effect from
time to time.
"FRB" means the Board of Governors of the Federal Reserve System, and
any Governmental Authority succeeding to any of its principal functions.
"Funded Debt" means, without double-counting, with respect to LCGI on
a consolidated basis with its Subsidiaries for any twelve (12) month fiscal
period, the arithmetic average Equivalent Amount in Dollars outstanding
during such period of the following: (i Indebtedness for money borrowed;
(ii) Indebtedness represented by notes payable and drafts accepted
representing extensions of credit, (iii) all obligations evidenced by
bonds, debentures, notes or other similar instruments, (iv) all
Indebtedness upon which interest charges are customarily paid, (v) all
Capitalized Lease Obligations, (vi) all reimbursement obligations with
respect to outstanding letters of credit, including Letters of Credit,
(vii) all Indebtedness issued or assumed as full or partial payment for
property or services (other than accrued expenses and trade payables
arising in the ordinary course of business, but only if and so long as such
accounts are payable on trade terms customary in the industry), whether or
not any such notes, drafts, obligations or Indebtedness represent
Indebtedness for money borrowed, and (viii) the principal balance
outstanding under any synthetic lease, tax retention operating lease,
off-balance sheet loan or similar off-balance sheet financing product where
such transaction is considered borrowed money indebtedness for tax purposes
but is classified as an operating lease in accordance with GAAP.
"Further Taxes" means any and all present or future taxes, levies,
assessments, imposts, duties, deductions, fees, withholdings or similar
charges (including, without limitation, net income taxes and franchise
taxes), and all liabilities with respect thereto, imposed by any
jurisdiction on account of amounts payable or paid pursuant to Section 4.1.
"FX Lender" has the meaning set forth in Section 2.18.
"FX Trading Office" means the office (if any) designated as the FX
Trading Office on Rider 1, or such other office as BOAFSB may designate
from time to time.
"GAAP" means generally accepted accounting principles set forth from
time to time in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants
and statements and pronouncements of the Financial Accounting Standards
Board (or agencies with similar functions of comparable stature and
authority within the U.S. accounting profession), which are applicable to
the circumstances as of the date of determination.
"Governmental Authority" means any nation or government, any state or
other political subdivision thereof, any central bank (or similar monetary
or regulatory authority) thereof, any entity exercising executive,
legislative, judicial, 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.
"Guarantors" means, collectively, (i) LCGI, as to both Borrowers, (ii)
the U.S. Borrower, as to the International Borrower, (iii) any U.S.
Subsidiary which is a Subsidiary Guarantor, as to both Borrowers, and (iv)
any International Subsidiary which is a Subsidiary Guarantor, as to the
International Borrower. "Guarantor" shall refer, individually, thereto. The
term "Guarantor" shall be subject further to the limitations set forth in
Section 2.19(a).
"Guaranty Obligation" has the meaning specified in the definition of
"Contingent Obligation" in Sectin 1.1.
"Hazardous Materials" means all those substances that are regulated
by, or which may form the basis of liability under, any Environmental Law,
including any substance identified under any Environmental Law as a
pollutant, contaminant, hazardous waste, hazardous constituent, special
waste, hazardous substance, hazardous material, or toxic substance, or
petroleum or petroleum derived substance or waste.
"Honor Date" has the meaning specified in Subsection 3.3(b).
"Indebtedness" of any Person means, without duplication, (a) all
indebtedness for borrowed money; (b) all obligations issued, undertaken or
assumed as the deferred purchase price of property or services (other than
trade payables entered into in the ordinary course of business on ordinary
terms); (c) all non-contingent reimbursement or payment obligations with
respect to Surety Instruments; (d) all obligations evidenced by notes,
bonds, debentures or similar instruments, including obligations so
evidenced incurred in connection with the acquisition of property, assets
or businesses; (e) all indebtedness created or arising under any
conditional sale or other title retention agreement, or incurred as
financing, in either case with respect to property acquired by the Person
(even though the rights and remedies of the seller or bank under such
agreement in the event of default are limited to repossession or sale of
such property); (f) all obligations with respect to capital leases; (g) all
indebtedness referred to in clauses (a) through (f) above secured by (or
for which the holder of such Indebtedness has an existing right, contingent
or otherwise, to be secured by) any Lien upon or in property (including
accounts and contracts rights) owned by such Person, even though such
Person has not assumed or become liable for the payment of such
Indebtedness; and (h) all Guaranty Obligations in respect of indebtedness
or obligations of others of the kinds referred to in clauses (a) through
(g) above. For all purposes of this Agreement, the Indebtedness of any
Person shall include all recourse Indebtedness of any partnership or joint
venture or limited liability company in which such Person is a general
partner or a joint venturer or a member.
"Indemnified Obligations" has the meaning specified in Section 12.5.
"Indemnified Person" has the meaning specified in Section 12.5.
"Independent Auditor" has the meaning specified in Subsection 7.1(a).
"Insolvency Proceeding" means, with respect to any Person, (a) any
case, action or proceeding with respect to such Person before any court or
other Governmental Authority relating to bankruptcy, reorganization,
insolvency, liquidation, receivership, dissolution, winding-up or relief of
debtors, or (b) any general assignment for the benefit of creditors,
composition, Marshalling of assets for creditors, or other, similar
arrangement in respect of its creditors generally or any substantial
portion of its creditors; undertaken under U.S. Federal, state or foreign
law, including the Bankruptcy Code.
"Interest Payment Date" means: (i) as to any LIBOR Rate Loan, the last
day of each Interest Period applicable to such LIBOR Rate Loan; provided,
however, that if any Interest Period for a LIBOR Rate Loan exceeds
three (3) months, the dates that fall at the three (3) month intervals,
after the beginning and prior to the end of such Interest Period, shall
also be Interest Payment Dates; and (ii) as to any Base Rate Loan, LIBOR
Daily Rate Loan and Overdraft Pound Loan, the last Business Day of each
month following its disbursement or the date on which such Loan is paid in
full or converted into another Type of Loan.
"Interest Period" means, as to any LIBOR Rate Loan, the period
commencing on the Borrowing Date of such Loan or on the
Conversion/Continuation Date on which the Loan is converted into or
continued as an LIBOR Rate Loan, and ending on the date one (1), two (2),
three (3) or six (6) months thereafter as selected by the Borrowers'
Representative in its Notice of Borrowing or Notice of
Conversion/Continuation; provided that:
(1) if any Interest Period would otherwise end on a day that is not a
Business Day, that Interest Period shall be extended to the following
Business Day unless, in the case of an LIBOR Rate Loan, the result of such
extension would be to carry such Interest Period into another calendar
month, in which event such Interest Period shall end on the preceding
Business Day;
(2) any Interest Period pertaining to an LIBOR 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 calendar
month at the end of such Interest Period; (3) no Interest Period shall
extend beyond the Maturity Date.
"International Agent" means XXXX, acting in such capacity hereunder
and under the other Loan Documents.
"International Borrower" has the meaning given to such term in the
preamble to this Agreement.
"International Collateral" means any Collateral in which a Lien is
hereafter granted by a International Obligor in favor of the Collateral
Agent.
"International L/C Commitment" means the commitment of the Issuing
Bank to issue International Letters of Credit, and of the International
Lenders severally to participate in International Letters of Credit, from
time to time Issued under Article III, of which not more than Eleven
Million Pounds Sterling (11,000,000) (or the Equivalent Amount in any
Alternative Currencies) shall be made available to the International
Borrower and the International Subsidiaries at any one time, as the same
shall or may be reduced as a result of the reduction in the L/C Commitment
pursuant to Section2.6 or Section 2.7; provided that the International L/C
Commitment is a part of the Revolving Pound Loan Commitment, and not a
separate, independent commitment.
"International L/C Obligations" means at any time, the sum of: (a) the
aggregate undrawn amount of all International Letters of Credit (in Pounds
or the Equivalent Amount in Pounds of any Alternative Currencies) plus
(b) the aggregate amount of all then unreimbursed drawings under
International Letters of Credit in Pounds (or the Equivalent Amount in
Pounds of any Alternative Currencies).
"International Lenders" means those Lenders listed as "International
Lenders" on Rider 2 hereto and any assignees of International Lenders which
hereafter become parties hereto pursuant to and in accordance with Section
11.8 hereof; and "International Lender" shall refer, individually thereto.
As of the Agreement Date, XXXX is the only International Lender.
"International Letter of Credit" means any Letter of Credit other than
a U.S. Letter of Credit.
"International Obligors" means, collectively, the International
Borrower and each International Subsidiary which is, or hereafter becomes,
a Subsidiary Guarantor.
"International Subsidiary" means any direct or indirect Subsidiary of
an Obligor, whether existing on the Agreement Date or subsequent thereto,
which is not a U.S. Subsidiary.
"IRS" means the Internal Revenue Service, and any Governmental
Authority succeeding to any of its principal functions under the Code.
"Issuance Date" has the meaning specified in Section 3.1(a).
"Issue" means, with respect to any Letter of Credit, to issue or to
extend the expiry of, or to renew or increase the amount of, such Letter of
Credit; and the terms "Issued," "Issuing" and "Issuance" have corresponding
meanings.
"Issuing Bank" means (i) BOA, for U.S. Letters of Credit, and (ii)
XXXX, for International Letters of Credit; together with any replacement
letter of credit issuer arising under Section 11.9
"Joint Venture" means a single-purpose corporation, partnership,
limited liability company, joint venture or other, similar legal
arrangement (whether created by contract or conducted through a separate
legal entity) now or hereafter formed by the LCGI or any of its
Subsidiaries with another Person in order to conduct a common venture or
enterprise with such Person.
"Judgment Currency" has the meaning ascribed to such term in
Section 2.17(c) hereof.
"LCGI" has the meaning specified in the preamble to this Agreement.
"L/C Amendment Application" means an application form for amendment of
outstanding standby or commercial documentary letters of credit as shall at
any time be in use at the Issuing Bank, as the Issuing Bank shall request.
"L/C Application" means an application form for issuances of standby
letters of credit as shall at any time be in use at the Issuing Bank, as
the Issuing Bank shall request.
"L/C Commitments" means, collectively, the U.S. L/C Commitment and the
International L/C Commitment.
"L/C-Related Documents" means the Letters of Credit, the L/C
Applications, the L/C Amendment Applications and any other document
relating to any Letter of Credit, including any of the Issuing Bank's
standard form documents for letter of credit issuances.
"Lenders" means those financial institutions whose names are set forth
on the signature pages hereof under the heading "Lenders" and the Overdraft
Bank and any assignees of the Lenders and the Overdraft Bank who hereafter
become parties hereto pursuant to and in accordance with Section 12.8
hereof; and "Lender" shall mean any one of the foregoing Lenders. In
addition to the foregoing, unless the context otherwise clearly requires,
the term "Lender" shall also include any such institution, or Affiliate of
such institution (as the case may be), in its capacity as a Swap Provider
or FX Lender.
Lending Office" means, as to the Agent or any Lender, the office or
offices of the Agent or such Lender specified as its "Lending Office" or
"U.S. Lending Office" or "International Lending Office", as the case may
be, on Rider 1, or such other office or offices as the Lender may from time
to time notify the Borrowers' Representative and each Agent.
"Letters of Credit" means any commercial or standby letters of credit
(or contracts of guaranty, surety or indemnify substantially similar in
effect thereto) Issued by the Issuing Bank pursuant to Article III.
"Leverage Ratio" shall mean the ratio of (i) total Funded Debt, to
(ii) EBITDA; in each case, determined for the twelve (12) fiscal months
period ending on a fiscal quarter end of LCGI.
"LIBOR Rate" means, for each Interest Period in respect of LIBOR Rate
Loans comprising part of the same Borrowing, an interest rate per annum
(rounded upward to the nearest 1/16th of l%) determined by the appropriate
Agent pursuant to the following formula:
(a) With respect to LIBOR Rate Loans denominated in Dollars, as
follows:
-------------------- ------------------------------------------------------
LIBOR Rate = LIBOR
------------------------------------------------------
------------------------------------------------------
1.00 - Offshore Reserve Percentage
-------------------- ------------------------------------------------------
Where,
"Offshore Reserve Percentage" means for any day for any Interest
Period the maximum reserve percentage (expressed as a decimal, rounded
upward to the nearest 1/16th of 1%) in effect on such day (whether or not
applicable to any Lender) under regulations issued from time to time by the
FRB for determining the maximum reserve requirement (including any
emergency, supplemental or other marginal reserve requirement) with respect
to eurocurrency funding (currently referred to as "Eurocurrency
liabilities") having a term comparable to such Interest Period, with the
LIBOR Rate to be adjusted automatically as of the date on which any change
in the Offshore Reserve Percentage becomes effective; and
"LIBOR" means the rate of interest per annum determined by the U.S.
Agent to be the arithmetic mean (rounded upward to the nearest 1/16th of
1%) of the rates of interest per annum notified to such Agent by the
Reference Bank as the rate of interest at which dollar deposits in the
approximate amount of the Loan to be made or continued as, or converted
into, a LIBOR Rate Loan by such Reference Bank and having a maturity
comparable to such Interest Period would be offered to major banks in the
London interbank market at their request at or about 11:00 a.m. (Atlanta
time) on the second Business Day prior to the commencement of such Interest
Period.
(b) With respect to LIBOR Rate Loans denominated in Pounds or
Alternative Currencies, as follows:
LIBOR Rate = LIBOR + MLA Cost
Where,
"LIBOR" means the rate of interest equal to the average among interest
rates (rounded upwards, if necessary, to the nearest 1/16 of 1%) as of
11:00 a.m. (London Time), on the Business Day of the commencement of such
Interest Period for a period comparable to such Interest Period, at which
deposits in Pounds in Same Day Funds are offered to the International Agent
in the London interbank market in the approximate amount of the Loan to be
made or continued as, or converted into, a LIBOR Rate Loan denominated in
Pounds or the Equivalent Amount, in Pounds, of a LIBOR Rate Loan
denominated in an Alternative Currency.
"MLA Cost" means, subject to paragraph 3 below, the rate per annum
determined by the International Agent to be equal to the arithmetic mean
(rounded to three decimal places with the mid-point rounded up) of the
respective rates determined by the International Agent as the rate
resulting from the application of the following formula:
A (D-E) + BD + C (D-F)
100 - (B+C)
where on the date upon which the calculation falls to be made:
"A" is the level of secured loans which the Reference Bank is required
by the Bank of England to maintain with members of the London Discount
Market Association, gilt-edged market makers and Stock Exchange money
brokers or certain marketable or callable securities approved by the Bank
of England, expressed as a percentage of Eligible Liabilities;
"B" is the level of interest free cash balances which the Reference
Bank is required to maintain with the Bank of England, expressed as a
percentage of Eligible Liabilities;
"C" is the level of interest-bearing Special Deposits which the
Reference Bank is required to maintain with the Bank of England, expressed
as a percentage of Eligible Liabilities;
"D" is the interest rate expressed as a percentage per annum at which
one, two or three months (as the case may be) sterling deposits are offered
to the Reference Bank in the London Interbank Market at or about 11:00 a.m.
(London time);
"E" is the lower of D (above) and the interest rate expressed as a
percentage per annum offered by discount houses for secured one, two or
three month callable fixtures (as the case may be) at or about 11:00 a.m.
(London time); and
"F" is the lower of D (above) and the interest rate expressed as a
percentage per annum payable by the Bank of England to the Reference Bank
on interest-bearing Special Deposits.
1. For purposes hereof, Eligible Liabilities and Special Deposits have
the meanings given to them at the time of application of the formula by the
Bank of England.
2. The MLA Cost shall be calculated by the International Agent at or
about 11:00 a.m. (London time) on the first day of each Interest Period
and, if necessary, on days falling at intervals of three (3) months
thereafter during such Interest Period; the MLA Cost so calculated shall
apply from and including the date on which the calculation is made to, but
excluding, the date on which the MLA Cost is next calculated or, as the
case may require, the last day of the Interest Period in question.
3. If there is any change in applicable law or regulation, or the
interpretation thereof, by any governmental authority charged with the
administration thereof, or in the nature of any request or requirement by
the Bank of England, or other applicable banking authority, the effect of
which is to impose, modify or deem applicable any reserve, special deposit,
liquidity or similar requirements against assets held by, or deposits in,
or for the account of, or advances by the Reference Bank, or in any other
respect whatsoever, the International Lender shall be entitled to vary the
above formula so as (but only so as) to restore the position, in terms of
overall return to that which prevailed before such change became necessary.
The Reference Bank shall notify the Borrowers' Representative of any
necessary variation to the formula and the formula, as so varied, shall be
the formula for the purposes hereof with effect from the date of
notification; however, such change shall not affect the MLA Cost in respect
of any period of calculation which commenced before the date of such
notification.
4. The LIBOR Rate shall be adjusted automatically as of the effective
date of any change in the MLA Cost.
"LIBOR Daily Rate" means the rate of interest equal to the average
among interest rates (rounded upwards, if necessary, to the nearest 1/16th
of 1%) as of 11:00 a.m. (London time), on any Business Day at which
deposits in Pounds in Same Day Funds are offered to the International Agent
in the London interbank market for a period of less than thirty (30) days
in the approximate amount of the Loan to be made or continued as, or
converted into, a LIBOR Daily Rate Loan denominated in Pounds or the
Equivalent Amount in Pounds of any such Loan denominated in an Alternative
Currency.
"LIBOR Daily Rate Loan" means a Loan that bears interest based on the
then effective LIBOR Daily Rate plus the Applicable Percentage.
"LIBOR Rate Loan" means a Loan that bears interest based on the then
effective LIBOR Rate plus the Applicable Percentage.
"Lien" means any security interest, mortgage, deed of trust, pledge,
hypothecation, assignment, charge or deposit arrangement, encumbrance, lien
(statutory or other) or preferential arrangement of any kind or nature
whatsoever in respect of any property (including those created by, arising
under or evidenced by any conditional sale or other title retention
agreement, the interest of a lessor under a capital lease, any financing
lease having substantially the same economic effect as any of the
foregoing, or the filing of any financing statement naming the owner of the
asset to which such lien relates as debtor, under the Uniform Commercial
Code or any comparable law) and any contingent or other agreement to
provide any of the foregoing, but not including the interest of a lessor
under an operating lease.
"Loans" means, collectively, Revolving Loans, Overdraft Pound Loans
and CAPEX Loans. "Loan" shall refer, individually, thereto.
"Loan Documents" means this Agreement, any Notes, the Collateral
Documents, the L/C-Related Documents, the Fee Letter, any Foreign Exchange
Agreements, any Specified Swap Contracts, and all other documents executed
and/or delivered by any Obligor to any Obligee in connection with the
transactions contemplated by this Agreement.
"Majority Lenders" means at any time of determination (a) if there are
less than three (3) Lenders hereunder, all of the Lenders, and (b) if there
are three (3) or more Lenders hereunder, at least (i) two (2) Lenders the
total of whose Loans outstanding equals or exceeds fifty percent (50%) of
the total principal amount of all Loans then outstanding hereunder
(including the Equivalent Amount in Dollars of the total principal amount
of the Pounds Loans outstanding as of the most recent computation date).
"Margin Stock" means "margin stock" as such term is defined in
Regulation G, T, U or X of the FRB.
"Material Adverse Effect" means (a) a material adverse change in, or a
material adverse effect upon, the operations, business, properties or
condition (financial or otherwise) of LCGI and its consolidated
Subsidiaries, taken as a whole; (b) a material impairment of the ability of
any Obligor to perform under any Loan Document to which it is a party or to
avoid any Event of Default; or (c) a material adverse effect upon (i) the
legality, validity, binding effect or enforceability against any Obligor in
respect of any Loan Document, or (ii) the perfection or priority of any
Lien granted under any of the Collateral Documents. As used herein, to the
extent applicable, "material" shall be equivalent to the "Material Amount."
"Material Amount" shall mean Five Hundred Thousand Dollars ($500,000)
or, as appropriate, the Equivalent Amount in Dollars of any sum denominated
in Pounds or Alternative Currencies.
"Material Subsidiary" means (i) the Subsidiary Guarantors, (ii) those
additional Subsidiaries of LCGI (if any) listed on Schedule 6.19 hereto,
and identified as such thereon, and (iii) any other Subsidiary of LCGI,
hereafter created, which (a) owns assets having an aggregate market value
equal to or greater than five percent (5%) of all assets of LCGI and its
Subsidiaries, on a consolidated basis, or (b) has gross revenues which in
the aggregate are equal to or greater than five percent (5%) of the gross
revenues of LCGI and its Subsidiaries, on a consolidated basis; provided,
however, that, in any event, notwithstanding the foregoing, Xxxx Africa
Consulting Engineers, Ltd. and its Subsidiaries shall not at any time be
considered Material Subsidiaries.
"Maturity Date" means January 15, 2001, or such earlier date on which
payment of all the Loans shall be due (whether by acceleration or
otherwise) upon the terms and conditions set forth herein; provided,
however, that, at the sole option of the Lenders, by giving written
affirmation to the Borrowers' Representative to such effect, the "Maturity
Date" may be extended for up to two (2) years subsequent to January 15,
2001; that is, until January 15, 2003, in one (1) year increments, at the
request of Borrowers' Representatives made in writing to the U.S. Agent not
earlier than ninety (90) days, and not later than sixty (60) days, before
the first anniversary of the Agreement Date. Any such request to which the
Borrowers' Representative does not receive an affirmation in writing from
the U.S. Agent within ten (10) Business Days of the date on which such
request was made shall be deemed to be a negative response.
"Maximum CAPEX Loan Advance" means, for any CAPEX Loan, a sum equal to
eighty percent (80%) of (i) invoiced cost to the Borrower requesting such
advance, for expenditures in respect of Eligible Capital Assets which are
new (which, for purposes hereof, shall mean purchased within six (6) months
or less from the date of the request for a CAPEX Loan) or, if used, have an
invoiced cost to such Borrower of less than Five Hundred Thousand Dollars
($500,000) (or the Equivalent Amount in Dollars, if such cost is
denominated in Pounds or an Alternative Currency); or (ii) the lower of
invoiced cost to such Borrower for, or the Appraised Value (as defined
hereinbelow in this definition) of, any other Eligible Capital Assets of
such Borrower, to the extent not governed by clause (i) above. For purposes
hereof, "Appraised Value" means the orderly liquidation value of an
Eligible Capital Asset, as determined by an independent appraiser, selected
by Borrowers' Representative, and reasonably acceptable to the appropriate
Agent.
"Mortgage" means any deed of trust, mortgage, leasehold mortgage,
assignment of rents or other document creating a Lien on real property or
any interest in real property.
"Mortgaged Property" means all property subject to a Lien pursuant to
a Mortgage. Initially, Mortgaged Property shall be limited to that Real
Property owned by the U.S. Obligors and identified as such on Schedule 6.17
hereto.
"Multiemployer Plan" means a "multiemployer plan", within the meaning
of Section 4001(a)(3) of ERISA, to which either Borrower or any ERISA
Affiliate makes, is making, or is obligated to make contributions or,
during the preceding three calendar years, has made, or been obligated to
make, contributions.
"Notes" means, collectively, the Revolving Loan Notes and the CAPEX
Loan Notes. "Note" shall refer, individually, thereto.
"Notice of Borrowing" means a notice in substantially the form of
Exhibit E.
"Notice of Conversion/Continuation" means a notice in substantially
the form of Exhibit F.
"Obligations" means all advances, debts, liabilities, obligations,
covenants and duties arising under any Loan Document owing by any Obligor
to any Obligee, whether direct or indirect (including those acquired by
assignment), absolute or contingent, joint or several, due or to become
due, now existing or hereafter arising. The term "Obligations" shall
include all Loans, L/C Obligations, all obligations under any FEMA, all
obligations under any Specified Swap Contract, all interest, fees, charges,
and Attorney Costs, and all obligations in respect of Indemnified
Obligations.
"Obligee" means, individually, each Lender, each Issuing Bank, the
Overdraft Bank, each Agent, each Collateral Agent, each Agent-Related
Person, each Indemnified Person and each Swap Provider. "Obligees" means
all such Persons, collectively.
"Obligor" means, individually, LCGI, each Borrower, any Guarantor, and
each other Person who is or shall become primarily or secondarily liable on
any of the Obligations, or on whose property any Obligee holds a Lien as
security for any of the Obligations. "Obligors" means all such Persons,
collectively.
"Original Currency" has the meaning ascribed to such term in
Section 2.16 hereof.
"Organization Documents" means, (i) for any corporation, the
certificate or articles of incorporation (or the foreign equivalent
thereof, if any), the bylaws (or the foreign equivalent thereof, if any),
any certificate of determination or instrument relating to the rights of
preferred shareholders of such corporation, any shareholder rights
agreement, and all applicable resolutions of the board of directors (or any
committee thereof) of such corporation; (ii) for any partnership (general
or limited), its articles of partnership and any partnership agreement; and
(iii) for any limited liability company, its articles of organization and
any operating agreement.
"Other Taxes" means any present or future stamp, court or documentary
taxes or any other excise or property taxes, charges or similar levies
which arise from any payment made hereunder or from the execution,
delivery, performance, enforcement or registration of, or otherwise with
respect to, this Agreement or any other Loan Documents.
"Overdraft Amount" means the sum of Four Million Pounds (4,000,000),
initially, as it shall or may be reduced from time to time hereafter
pursuant to the operation and effect of Sections 2.6 and 2.7.
"Overdraft Bank" means XXXX.
"Overdraft Current Account" means each current account in the name of
the International Borrower with the Overdraft Bank.
"Overdraft Facility" means the overdraft facility granted by the
Overdraft Bank to the International Borrower pursuant to Subsection 2.1(b).
"Overdraft Outstandings" means, as of any particular time, the amount
at that time of the debit balance on the Overdraft Current Accounts.
"Overdraft Pound Loan Commitment" means the Overdraft Bank's
obligation to make funds available to the International Borrower under the
Overdraft Facility, and the several obligations of the International
Lenders to participate in such credit extensions, in an aggregate amount up
to the Overdraft Amount; provided that the Overdraft Pound Loan Commitment
is a part of the Revolving Pound Loan Commitment, and not a separate,
independent commitment.
"Overdraft Pound Loans" means, collectively, the amounts advanced by
the Overdraft Bank to the International Borrower under the Overdraft Pound
Loan Commitment, not to exceed the Overdraft Amount.
"Overdraft Rate" shall mean the interest rate imposed from time to
time by the Reference Bank in London, England on outstanding overdrafts.
Such interest may be different for different amounts, periods outstanding
and customers.
"Participant" has the meaning specified in Subsection 12.8(d).
"PBGC" means the Pension Benefit Guaranty Corporation, or any
Governmental Authority succeeding to any of its principal functions under
ERISA.
"Pension Plan" means a pension plan (as defined in Section 3(2) of
ERISA) subject to Title IV of ERISA which either Borrower sponsors,
maintains, or to which it makes, is making, or is obligated to make
contributions, or in the case of a multiple employer plan (as described in
Section 4064(a) of ERISA) has made contributions at any time during the
immediately preceding five (5) plan years.
"Permitted Liens" has the meaning specified in Section 8.1.
"Permitted Swap Obligations" means obligations of an Obligor or any of
its Material Subsidiaries under Swap Contracts incurred either: (i)
pursuant to Section 7.16; or (ii) if, other than pursuant to Section 7.16,
in the ordinary course of such Person's business, and not for speculative
purposes; provided, however, that: (a) the aggregate Swap Termination Value
of all Swap Contracts outstanding at any one time, inclusive of those
described in both clauses (i) and (ii) above, shall not exceed Two Million
Five Hundred Thousand Dollars ($2,500,000); and (b) the term of any Swap
Contract is made co-terminous with the term of this Agreement.
"Person" means an individual, partnership, corporation, limited
liability company, business trust, joint stock company, trust,
unincorporated association, joint venture or Governmental Authority.
"Plan" means an employee benefit plan (as defined in Section 3(3) of
ERISA) which either Borrower sponsors or maintains or to which either
Borrower makes, is making, or is obligated to make contributions and
includes any Pension Plan.
"Pledge Agreement" means a pledge agreement issued by an Obligor in
favor of the Agent in respect of any Material Subsidiary which is a direct
Subsidiary of such Obligor, pledging to the Agent the capital stock,
membership interests, partnership shares or any other, similar indicia of
equity ownership owned by such Obligor in such Material Subsidiary; each to
be in form and substance satisfactory to the Agent. The initial Pledge
Agreement, to be signed by the Obligors on the Agreement Date, shall be
substantially in the form of Exhibit G hereto.
"Pledged Collateral" has the meaning specified in the Pledge Agreement.
"Pro Rata Share" means, as to any Lender at any time, in reference to
any Commitment or all Commitments, as the case may be, the percentage
equivalent (expressed as a decimal, and rounded to the ninth decimal place)
at such time of such Lender's Commitment divided by the combined
Commitments of all Lenders.
"Pounds" or "Pound" means British Pounds Sterling.
"Reference Bank" means BOA, except that for purposes of determining
the interest rate payable on Revolving Pound Loans (including Overdraft
Pound Loans), XXXX shall be deemed the "Reference Bank."
"Real Property" of any Person means the real property owned by such
Person, including the Real Property of the U.S. Obligors identified on
Schedule 6.17 hereto.
"Reportable Event" means, any of the events set forth in
Section 4043(c) of ERISA or the regulations thereunder, other than any such
event for which the thirty (30) day notice requirement under ERISA has been
waived in regulations issued by the PBGC.
"Requirement of Law" means, as to any Person, any law (statutory or
common), treaty, rule or regulation or determination of an arbitrator or of
a Governmental Authority, in each case applicable to or binding upon the
Person or any of its property or to which the Person or any of its property
is subject.
"Responsible Officer" means, with respect to any Obligor, the
president, chief executive officer, the chief operating officer, the chief
financial officer thereof, the corporate controller, the general counsel or
any other officer having substantially the same authority.
"Resulting Currency" has the meaning ascribed to such term in
Section 2.17 hereof.
"Revolving Dollar Loan Amount" means the sum of Forty Million Dollars
($40,000,000), initially; as it shall or may be reduced from time to time
hereafter pursuant to the operation and effect of Section 2.6 and
Section 2.7.
"Revolving Dollar Loan Commitment" means the several obligations of
the U.S. Lenders to make advances of loaned funds in an aggregate amount up
to the Revolving Dollar Loan Amount to the U.S. Borrower.
"Revolving Dollar Loan Notes" means those certain Promissory Notes,
dated as of the Agreement Date, in an aggregate principal amount equal to
the Revolving Dollar Loan Commitment, issued by the U.S. Borrower to each
U.S. Lender, pursuant to Section 2.3(b), in substantially the form of
Exhibit H hereto; and any extensions, renewals, or amendments to, or
replacements of, the foregoing.
"Revolving Dollar Loans" means, collectively, the amounts advanced by
the U.S. Lenders to the U.S. Borrower under the Revolving Dollar Loan
Commitment, not to exceed the amount of the Revolving Dollar Loan Amount,
and evidenced by the Revolving Dollar Loan Notes.
"Revolving Loan Amount" means the sum of Fifty-Eight Million Dollars
($58,000,000), initially; reducing to Forty-Eight Million Dollars
($48,000,000), effective on January 1, 1999; and reducing further to
Forty-Three Million Dollars ($43,000,000), effective on January 1, 2000.
"Revolving Loan Commitment" means, collectively, the Revolving Dollar
Loan Commitment and the Revolving Pound Loan Commitment.
"Revolving Loan Notes" means, collectively, the Revolving Dollar Loan
Notes and the Revolving Pound Loan Notes. "Revolving Loan Note" shall
refer, individually, thereto.
"Revolving Loans" means, collectively, the Revolving Dollar Loans and
the Revolving Pound Loans. "Revolving Loan" shall refer, individually,
thereto.
"Revolving Pound Loan Amount" means the sum of Eleven Million Pounds
Sterling (11,000,000), initially, as it shall or may be reduced from time
to time hereafter pursuant to the operation and effect of Section 2.6 and
Section 2.7.
"Revolving Pound Loan Commitment" means the several obligations of the
International Lenders to make advances of loaned funds in an aggregate
amount up to the Revolving Pound Loan Amount to the International Borrower;
together with the Overdraft Pound Loan Commitment.
"Revolving Pound Loans" means, collectively, the amounts advanced by
the International Lenders to the International Borrower under the Revolving
Pound Loan Commitment, not to exceed the Revolving Pound Loan Amount, and
evidenced by the Revolving Pound Loan Notes.
"Revolving Pound Loan Notes" means those certain Promissory Notes,
dated as of the Agreement Date, in an aggregate principal amount equal to
the Revolving Pound Loan Commitment, issued by the International Borrower
to each International Lender, pursuant to Section 2.3(b), in substantially
the form of Exhibit I hereto; and any extensions, renewals, or amendments
to, or replacements of, the foregoing.
"Same Day Funds" means (i) with respect to disbursements and payments
in Dollars, immediately available funds, and (ii) with respect to
disbursements and payments in Pounds or Alternative Currencies, same day or
other funds as may be determined by the International Agent to be customary
in the place of disbursements or payment for the settlement of
international banking transactions in Pounds or such Alternative
Currencies.
"Security Agreements" means, collectively, (i) a Security Agreement
executed by each U.S. Obligor in favor of BOAFSB, as Collateral Agent, in
which such U.S. Obligor shall grant a security interest to such Collateral
Agent in all, or substantially all, of its personal property and fixtures,
including its accounts, contract rights, general intangibles, chattel
paper, instruments, inventory, documents and equipment, as security for all
Obligations, and (ii) that certain Debenture of even date herewith executed
by the International Borrower in favor of XXXX, as Collateral Agent, in its
accounts, contract rights, chattel paper, instruments and general
intangibles, as security for certain of the Obligations; as each of the
same may be amended, modified or supplemented from time to time. "Security
Agreement" means any of the foregoing. The initial Security Agreement, to
be signed by the U.S. Obligors on the Agreement Date, shall be
substantially in the form of Exhibit J hereto; and the initial Debenture,
to be signed by the International Borrower on the Agreement Date, shall be
substantially in the form of Exhibit K hereto.
"SEC" means the Securities and Exchange Commission, or any
Governmental Authority succeeding to any of its principal functions.
"Solvent" means, as to any Person at any time, that (a) the fair value
of the property of such Person is greater than the amount of such Person's
liabilities (including disputed, contingent and unliquidated liabilities)
as such value is established and liabilities evaluated for purposes of the
Bankruptcy Code and, in the alternative, for purposes of the Uniform
Fraudulent Transfer Act; (b) the present fair saleable value of the
property of such person is not less than the amount that will be required
to pay the probable liability of such Person on its debts as they become
absolute and matured; (c) such Person is able to realize upon its property
and pay its debts and other liabilities (including disputed, contingent and
unliquidated liabilities) as they mature in the normal course of business;
(d) such Person does not intend to, and does not believe that it will,
incur debts or liabilities beyond such Person's ability to pay as such
debts and liabilities mature; and (e) such Person is not engaged in
business or a transaction, and is not about to engage in business or a
transaction, for which such Person's property would constitute unreasonably
small capital.
"Specified Swap Contract" means any Swap Contract made or entered into
at any time, or in effect at any time (whether heretofore or hereafter),
whether directly or indirectly, and whether as a result of assignment or
transfer or otherwise, between an Obligor and any Swap Provider which Swap
Contract is or was intended by the parties hereto to have been entered
into, in part or entirely, for purposes of mitigating interest rate or
currency exchange risk in accordance with Section 7.16 (which intent shall
conclusively be deemed to exist if a Borrower so represents to the Swap
Provider in writing).
"Spot Rate" for a currency means the rate quoted by the appropriate
Agent as the spot rate for the purchase by such Agent of such currency with
another currency at approximately 9:00 a.m. (Atlanta time), in the case of
conversions from Pounds to Dollars, and 9:00 a.m. (London time), in the
case of conversions from Alternative Currencies to Pounds, on that date
which is two (2) Business Days prior to the date as of which the foreign
exchange computation is made.
"Subordinated Debt" means Indebtedness which is subordinated in right
and claim to the rights and claims of the Obligees in respect of the
Obligations on terms and conditions satisfactory to the U.S. Agent pursuant
to a currently effective Subordination Agreement.
"Subordination Agreement" means a written agreement either directly in
favor of the Lenders (or the U.S. Agent, on the Lenders' behalf) or
contained in any instrument evidencing Subordinated Debt, setting forth
terms and conditions of subordination satisfactory to the Agent in respect
of Subordinated Debt; provided however, that if such agreement is contained
in the instrument evidencing Subordinated Debt and not specific to the
Obligations, the U.S. Agent may require, as a condition to such debt being
considered as Subordinated Debt, that a Responsible Officer of the
Borrowers' Representative certify in writing to the U.S. Agent that such
agreement was intended to apply to, and shall apply to, the Obligations and
that the Lenders are entitled to rely thereon as third party beneficiaries,
to be substantially in the form of Exhibit L attached hereto.
"Subsidiary" of a Person means any corporation, association,
partnership, limited liability company, joint venture or other business
entity of which more than fifty percent (50%) of the voting stock ,
membership interests or other equity interests (in the case of Persons
other than corporations), is owned or controlled directly or indirectly by
the Person, or one or more of the Subsidiaries of the Person, or a
combination thereof.
"Subsidiary Guarantor" and "Subsidiary Guarantors" have the meaning
specified in the preamble to this Agreement.
"Surety Instruments" means with respect to a Person all letters of
credit (including standby and commercial), banker's acceptances, shipside
bonds, surety bonds and similar instruments of such Person.
"Swap Contract" means any agreement, whether or not in writing,
relating to any transaction that is a rate swap, basis swap, forward rate
transaction, commodity swap, commodity option, equity or equity index swap
or option, bond, note or xxxx option, interest rate option, forward foreign
exchange transaction, cap, collar or floor transaction, currency swap,
cross-currency rate swap, swaption, currency option or any other, similar
transaction (including any option to enter into any of the foregoing) or
any combination of the foregoing, and, unless the context otherwise clearly
requires, any master agreement relating to or governing any or all of the
foregoing.
"Swap Provider" means any Lender, or any Affiliate of any Lender, that
is at the time of determination party to a Swap Contract with a Borrower or
any Subsidiary.
"Swap Termination Value" has the meaning specified in the definition
of "Contingent Obligation."
"Taxes" means any and all present or future taxes, levies,
assessments, imposts, duties, deductions, fees, withholdings or similar
charges, and all liabilities with respect thereto, excluding, in the case
of each Lender, the Overdraft Bank, the Issuing Bank and the Agent,
respectively, taxes imposed on or measured by its net income by the
jurisdiction (or any political subdivision thereof) under the laws of which
such Lender, the Overdraft Bank, the Issuing Bank or the Agent, as the case
may be, is organized or maintains a Lending Office.
"Type" means a type of Loan; that is, either a Base Rate Loan or a
LIBOR Rate Loan.
"UCC" means the Uniform Commercial Code as in effect in the State of
Georgia from time to time or any other applicable jurisdiction.
"Unfunded Pension Liability" means the excess of a Plan's benefit
liabilities under Section 4001(a) (16) of ERISA, over the current value of
that Plan's assets, determined in accordance with the assumptions used for
funding the Pension Plan pursuant to Section 412 of the Code for the
applicable plan year.
"United States" and "U.S." each means the United States of America.
"U.S. Agent" shall mean BOAFSB, acting in such capacity hereunder and
under the other Loan Documents.
"U.S. Borrower" has the meaning specified in the preamble to this
Agreement.
"U.S. Collateral" means all Collateral, other than International
Collateral.
"U.S. Lenders" means those Lenders listed as "U.S. Lenders" on Rider2
hereto and any assignees of such U.S. Lenders which hereafter become
parties hereto and in accordance with Section 11.8 hereof; and "U.S.
Lender" shall refer, individually, thereto. As of the Agreement Date,
BOAFSB is the only U.S. Lender.
"U.S. L/C Commitment" means the commitment of the Issuing Bank to
Issue U.S. Letters of Credit, and of the U.S. Lenders severally to
participate in U.S. Letters of Credit, from time to time Issued under
Article III, not to exceed Three Million Dollars ($3,000,000), as the same
shall or may be reduced as a result in the reduction of L/C Commitments
pursuant to Section 2.6 or Section 2.7; provided, however, that the U.S.
L/C Commitment is a part of the Revolving Dollar Loan Commitment, and not a
separate, independent commitment.
"U.S. L/C Obligations" means the sum of (a) the aggregate undrawn
amount of all U.S. Letters of Credit then outstanding, plus (b) the
aggregate amount of all then unreimbursed drawings under all U.S. Letters
of Credit.
"U.S. Letter of Credit" means a Letter of Credit issued on behalf of
the U.S. Borrower or a U.S. Subsidiary.
"U.S. Obligors" means, collectively, LCGI, the U.S. Borrower and each
U.S. Subsidiary which is, or hereafter becomes, a Subsidiary Guarantor.
"U.S. Subsidiary" means any direct or indirect Subsidiary of an
Obligor which is domiciled, incorporated or organized under the laws of any
State of the United States or the District of Columbia, whether existing on
the Agreement Date or subsequent thereto.
I.2 Other Interpretive Provisions.
The meanings of defined terms are equally applicable to the singular
and plural forms of the defined terms. The words "hereof", "herein",
"hereunder" and similar words refer to this Agreement as a whole and not to
any particular provision of this Agreement; and subsection, Section,
Schedule and Exhibit references are to this Agreement unless otherwise
specified. The term "documents" includes any and all instruments,
documents, agreements, certificates, indentures, notices and other
writings, however evidenced. The term "including" is not limiting and means
"including without limitation." In the computation of periods of time from
a specified date to a later specified date, the word "from" means "from and
including"; the words "to" and "until" each mean "to but excluding", and
the word "through" means "to and including." The term "property" includes
any kind of property or asset, real, personal or mixed, tangible or
intangible. Unless otherwise expressly provided herein, (i) references to
agreements (including this Agreement) and other contractual instruments
shall be deemed to include all subsequent amendments and other
modifications thereto, but only to the extent such amendments and other
modifications are not prohibited by the terms of any Loan Document, and
(ii) references to any statute or regulation are to be construed as
including all statutory and regulatory provisions consolidating, amending,
replacing, supplementing or interpreting the statute or regulation. The
captions and headings of this Agreement are for convenience of reference
only and shall not affect the interpretation of this Agreement. This
Agreement and other Loan Documents may use several different limitations,
tests or measurements to regulate the same or similar matters. All such
limitations, tests and measurements are cumulative and shall each be
performed in accordance with their terms. Unless otherwise expressly
provided, any reference any Obligee, or group of Obligees by way of
consent, approval or waiver shall be deemed modified by the phrase "in
its/their sole discretion, exercised in good faith and in a commercially
reasonable manner." This Agreement and the other Loan Documents are the
result of negotiations among and have been reviewed by counsel to the
Obligees and the Obligors, and are the product of all parties. Accordingly,
they shall not be construed against any Obligee or Obligor merely because
of its involvement in their preparation. Each definition of an agreement in
this Article 1 shall include such agreement as modified, amended, or
supplemented from time to time with the prior written consent of the
Borrowers' Representative and the Majority Lenders, except as provided in
Section 12.1 hereof. Except where the context otherwise' requires,
definitions imparting the singular shall include the plural and vice versa.
Except where otherwise specifically restricted, reference to a party to a
Loan Document includes that party and its successors and permitted assigns.
All terms used herein which are defined in Article 9 of the Uniform
Commercial Code in effect in the State of Georgia on the date hereof and
which are not otherwise defined herein shall have the same meanings herein
as set forth therein. All accounting terms used herein without definition
shall be used as defined under GAAP. For all purposes of this Agreement
(other than for purposes of the preparation of any financial statements
delivered pursuant hereto), the equivalent of any Pounds or Alternative
Currency shall be determined at the Spot Rate and all covenants shall be
calculated in the Equivalent Amount of Dollars. References herein to
"fiscal year" shall mean the fiscal year of LCGI and references herein to
"fiscal quarter" or "fiscal month" shall mean the fiscal quarters or fiscal
months of LCGI.
ARTICLE II.
THE CREDIT
II.1 Amounts and Terms of Revolving Loan Commitment.
(a) Each U.S. Lender severally agrees, on the terms and conditions
hereinafter set forth, to make Revolving Dollar Loans to the U.S. Borrower
from time to time on any Business Day during the period from the Agreement
Date to the Maturity Date, in an aggregate amount (determined in Dollars),
not to exceed at any time the lesser of (a) the Revolving Dollar Loan
Commitment of such Lender as set forth in the definition of Commitment
Percentages in Section 1.1 hereof, or (b) the Available Revolving Dollar
Loan Commitment; provided, however, that, after giving effect to any such
Revolving Dollar Loan, the aggregate principal amount (determined in
Dollars) of all outstanding Revolving Dollar Loans shall not exceed the
aggregate amount of the Revolving Dollar Loan Commitment; provided further
that, after giving effect to the making of such Revolving Dollar Loan, the
U.S. Borrower shall remain in compliance with all relevant limitations set
forth in Section 3.1(a) concerning the issuance of U.S. Letters of Credit.
Within the limits of each U.S. Lender's Revolving Dollar Loan Commitment,
and subject to subsection (c) below and the other terms and conditions
hereof, the U.S. Borrower may borrow under this Section2.1(a), may prepay
pursuant to Section 2.8 and reborrow pursuant to this Section 2.1(a), and
shall prepay (as necessary) pursuant to Section 2.7.
(b) (i) Each International Lender severally agrees, on the terms and
conditions hereinafter set forth, to make Revolving Pound Loans to the
International Borrower and (ii) the Overdraft Bank agrees, on the terms and
conditions hereinafter set forth, to allow the International Borrower to
make drawings under the Overdraft Facility by presentation to the Overdraft
Bank of any checks drawn by the International Borrower and/or other
instructions from the International Borrower for payment (and such checks
and/or instructions shall be honored by the Overdraft Bank); in each case,
from time to time on any Business Day during the period from the Agreement
Date to the Maturity Date, in an aggregate amount (determined in Pounds)
not to exceed at any time the lesser of (a) the Revolving Pound Loan
Commitment of such Lender as set forth in the definition of Commitment
Percentages in Section 1.1 hereof, or (b) the Available Revolving Pound
Loan Commitment; provided, however, that after giving effect to any such
Revolving Pound Loan or Overdraft Pound Loan, the aggregate principal
amount (determined in Pounds or the Equivalent Amount in Pounds of any
Alternative Currencies) of all outstanding Revolving Pound Loans and
Overdraft Pound Loans shall not exceed the aggregate amount of the
Revolving Pound Loan Commitment; provided further, that Overdraft
Outstandings shall not exceed the Overdraft Amount; provided, further, that
the liability of the International Borrower in respect of any drawing made
pursuant to the Overdraft Facility shall not be affected in any way if such
drawing is made in contravention of the terms and conditions hereinafter
set forth; and provided, further, that, after giving effect to the making
of any Revolving Pound Loans, the International Borrower remains in
compliance with all relevant limitations set forth in Section 3.1(a)
concerning the issuance of International Letters of Credit. Within the
limits of each International Lender's Pound Loan Commitment, and subject to
subsection (c) below and the other terms and conditions thereof, the
International Borrower may borrow under this Section 2.1(b), may prepay
pursuant to Section 2.8 and reborrow pursuant to this Section 2.1(b), and
shall prepay (as necessary) pursuant to Section 2.7.
(c) In addition to the foregoing limitations, in no event shall
Aggregate Revolving Credit Obligations outstanding, measured monthly by the
U.S. Agent as of the last day of each fiscal month of the Borrowers,
commencing with the fiscal month ending closest to January 31, 1998, ever
exceed the Borrowing Base.
II.2 Amounts and Terms of CAPEX Loan Commitment.
(a) Each U.S. Lender severally agrees, on the terms and conditions
hereinafter set forth, to make CAPEX Dollar Loans to the U.S. Borrower from
time to time on any Business Day during the period from the Agreement Date
to the Maturity Date, in an aggregate amount (determined in Dollars), not
to exceed at any time the CAPEX Dollar Loan Commitment of such Lender as
set forth in the definition of Commitment Percentages in Section 1.1
hereof; provided, however, that, after giving effect to any such CAPEX
Dollar Loan, the aggregate principal amount (determined in Dollars) of all
outstanding CAPEX Dollar Loans shall not exceed the aggregate amount of the
CAPEX Dollar Loan Commitment. Within the limits of each U.S. Lender's CAPEX
Dollar Loan Commitment, and subject to the other terms and conditions
hereof, the U.S. Borrower may borrow under this Section 2.2(a), may prepay
pursuant to Section 2.8, and shall prepay pursuant to Section 2.7. No
amount of any CAPEX Dollar Loan may be reborrowed, once repaid, however,
and the total number of CAPEX Dollar Loans outstanding at any one time
shall not exceed twelve (12).
(b) Each International Lender severally agrees, on the terms and
conditions hereinafter set forth, to make CAPEX Pound Loans to the
International Borrower from time to time on any Business Day during the
period from the Agreement Date to the Maturity Date, in an aggregate amount
(determined in Pounds or the Equivalent Amount in Pounds of any Alternative
Currencies), not to exceed at any time the CAPEX Pound Loan Commitment of
such Lender as set forth in the definition of Commitment Percentages in
Section 1.1 hereof; provided, however, that after giving effect to any such
CAPEX Pound Loan, the aggregate principal amount (determined in Pounds or
the Equivalent Amount in Pounds of any Alternative Currencies), of all
outstanding CAPEX Pound Loans shall not exceed the aggregate amount of the
CAPEX Pound Loan Commitment. Within the limits of each International
Lender's CAPEX Pound Loan Commitment, and subject to the other terms and
conditions thereof, the International Borrower may borrow under this
Section 2.1(b), may prepay pursuant to Section 2.8 , and shall prepay
pursuant to Section 2.7. No amount of any CAPEX Pound Loan may be
reborrowed, once repaid, however, and the total number of CAPEX Pound Loans
outstanding at any one time shall not exceed twelve (12).
(c) In addition to the foregoing limitations, (i) in no event shall
CAPEX Loans outstanding, measured in Dollars using the Equivalent Amount in
Dollars of all CAPEX Pound Loans, determined monthly as of the last day of
each fiscal month, commencing with the fiscal month ending closest to
January 31, 1998, ever exceed the sum of Four Million Dollars ($4,000,000),
initially; increasing to Eight Million Dollars ($8,000,000) on the first
anniversary of the Agreement Date; and increasing to Twelve Million Dollars
($12,000,000) on the second anniversary of the Agreement Date; nor (ii)
shall any CAPEX Loan ever exceed the Maximum CAPEX Loan Advance.
II.3 Loan Accounts.
(a) The Loans made by each Lender and the Overdraft Bank and the
Letters of Credit issued by the Issuing Bank shall be evidenced by one or
more accounts or records maintained by the appropriate Agent on behalf of
such Lender, the Overdraft Bank or the Issuing Bank, as the case may be, in
the ordinary course of business. The accounts or records so maintained by
such Agent, the Issuing Bank or the Overdraft Bank shall be prima facie
evidence of the amount of the Loans made by the Lenders to each Borrower,
the Overdraft Pound Loans made by the Overdraft Bank to the International
Borrower and the Letters of Credit Issued for the account of each Borrower,
and the interest and payments thereon. Any failure so to record or any
error in doing so shall not, however, limit or otherwise affect the
obligation of any Obligor hereunder to pay any amount owing with respect to
the Loans or any Letter of Credit.
(b) The Loans made by each Lender shall be evidenced by a Note payable
to the order of such Lender (i) in an amount equal to its Revolving Dollar
Loan Commitment, in the case of Revolving Dollar Loans, for each U.S.
Lender, (ii) in an amount equal to its Revolving Pound Loan Commitment, in
the case of Revolving Pound Loans, for each International Lender, (iii) in
an amount equal to its Pro Rata Share of each CAPEX Pound Loan, for each
U.S. Lender, and (iv) in an amount equal to its Pro Rata Share of each
CAPEX Pound Loan, for each International Lender. Overdraft Pound Loans
shall not be separately evidenced by promissory notes, initially, but the
International Agent shall have the right to require that one or more
Overdraft Pound Loans being separately evidenced by promissory notes. Each
such Lender shall endorse on the schedules annexed to its Note(s) the date,
amount and maturity of each Loan made by it and the amount of each payment
of principal made by the Borrowers with respect thereto. Each such Lender
is irrevocably authorized by each Borrower to endorse its Note(s) and each
Lender's record shall be prima facie evidence of the amount of such Loans;
provided, however, that the failure of a Lender to make, or an error in
making, a notation thereon with respect to any Loan shall not limit or
otherwise affect the obligations of any Obligor hereunder or under any such
Note to such Lender.
II.4 Manner of Borrowing and Disbursement.
(a) Each advance of a Loan (other than an Overdraft Pound Loan) shall
be made upon the Borrowers' Representative's irrevocable written notice
delivered to (i) BOAFSB, as the U.S. Agent, in respect of any Revolving
Dollar Loans and CAPEX Dollar Loans, and (ii) XXXX, as the International
Agent, in respect of any Revolving Pound Loans and CAPEX Pound Loans; each
to be delivered in accordance with Section 12.2, in the form of a Notice of
Borrowing, within the following time periods: (i) for Base Rate Loans, at
least one (1) Business Day prior to the requested advance date, (ii) for
LIBOR Rate Loans, at least three (3) Business Days prior to the requested
advance date and (iii) for LIBOR Daily Rate Loans, on the requested advance
date. Each such Notice of Borrowing shall specify: (1) the amount of the
Loan, which (except for LIBOR Daily Rate Loans) shall be in an aggregate
minimum principal amount of Two Hundred Fifty Thousand Dollars ($250,000)
or any multiple of Fifty Thousand Dollars ($50,000) in excess thereof, for
Revolving Dollar Loans, and One Hundred Fifty Thousand Pounds (150,000)
or any multiple of Fifty Thousand Pounds (50,000) in excess thereof, for
Revolving Pound Loans, or the Equivalent Amount thereof in Pounds for
Revolving Pound Loans made in Alternative Currencies (the foregoing
limitations called the "Borrowing Limitations"), (2) the requested advance
date, which shall be a Business Day; (3) whether the Loan is to be a LIBOR
Rate Loan, a LIBOR Daily Rate Loan or a Base Rate Loan; (4) for LIBOR Rate
Loans, the duration of the Interest Period applicable to such Loans
included in such notice. If the Notice of Borrowing shall fail to specify
the duration of the Interest Period for any LIBOR Rate Loan, such Interest
Period shall be three (3) months; (5) whether the Loan is to be a CAPEX
Loan or a Revolving Loan; (6) whether a Revolving Loan is to be a Revolving
Dollar Loan or Revolving Pound Loan; (7) if the Loan is to be a Revolving
Pound Loan or a CAPEX Pound Loan, whether such Loan is to be made in Pounds
or an Alternative Currency; (8) whether a CAPEX Loan is to be a CAPEX
Dollar Loan or a CAPEX Pound Loan; and (9) the name of the Borrower on
behalf of whom the Loan is requested. Notwithstanding the foregoing,
however, with respect to any Loans to be made on the Agreement Date, (i)
Borrowings shall be limited to Revolving Loans only, (ii) any Notice of
Borrowing in regard thereto shall be delivered, for Revolving Dollar Loans,
to the U.S. Agent by not later than 12:00 noon (Atlanta time) on the
Agreement Date and delivered, for Revolving Pound Loans, to the
International Agent by not later than 12:00 noon (London time) on the
Agreement Date; and (iii) all such Loans shall be Base Rate Loans, if
Revolving Dollar Loans, or LIBOR Daily Rate Loans, if Revolving Pound
Loans, and remain so for at least three (3) Business Days.
(b) Each U.S. Lender will make the amount of its Commitment Percentage
of each Revolving Dollar Loan or CAPEX Dollar Loan available to the U.S.
Agent for the account of the U.S. Borrower by transferring such amount by
wire transfer to the U.S. Agent's Office on the advance date requested by
the Borrowers' Representative in Same Day Funds by 12:00 noon (Atlanta
time). Each International Lender will make the amount of its Commitment
Percentage of each Revolving Pound Loan or CAPEX Pound Loan available
directly to the International Borrower by transferring such amount by wire
transfer to the International Borrower's account at the International
Agent's office on the advance date requested by the Borrowers'
Representative in Same Day Funds by 12:00 noon (London time).
(c) The proceeds of all such Loans will then be made available to the
applicable Borrower by the appropriate Agent by transferring the amounts so
made available by wire transfer pursuant to the instructions of the
Borrowers' Representative, or, in the absence of such instructions,
crediting the amounts so made available to the account of the applicable
Borrower maintained with such Agent or an Affiliate of such Agent.
(d) Unless the Majority Lenders shall otherwise agree, during the
existence of a Default or an Event of Default, neither the Borrowers'
Representative nor either Borrower may elect to have a Loan made as, or
converted into or continued as, an LIBOR Rate Loan.
II.5 Conversion and Continuation Elections.
(a) The Borrowers' Representative may, upon irrevocable written notice
to the appropriate Agent in accordance with Section 2.4(b), subject to the
Borrowing Limitations:
(1) elect to convert on any Business Day, any Base Rate Loans (or any
part thereof) into LIBOR Rate Loans;
(2) elect to convert on the last day of the applicable Interest Period
any LIBOR Rate Loans having Interest Periods maturing on such day (or any
part thereof) into Base Rate Loans; or
(3) elect to renew on the last day of the current Interest Period any
LIBOR Rate Loan maturing at the end of such Interest Period (or any part
thereof);
provided, that if the aggregate amount of LIBOR Rate Loans denominated
in Dollars comprising part of the same Borrowing shall have been reduced,
by payment, prepayment, or conversion of part thereof to be less than Two
Hundred Fifty Thousand Dollars ($250,000) or One Hundred Twenty-Five
Thousand Pounds (125,000) (or the Equivalent Amount in Pounds of any
Alternative Currency), such LIBOR Rate Loans shall automatically convert
into Base Rate Loans, and on and after such date the right of the
Borrowers' Representative to continue such Loans as, and convert such Loans
into, LIBOR Rate Loans, shall terminate.
(b) The Borrowers' Representative shall deliver a Notice of
Conversion/Continuation in accordance with Section 11.2 to be received by
the U.S. Agent not later than 12:00 noon (Atlanta time), in the case of
Revolving Dollar Loans, and to be received by the International Agent by
not later than 12:00 noon (London time), in the case of Revolving Pound
Loans, in each case, at least (i) three (3) Business Days in advance of the
Conversion Date or Continuation Date, if the Loans are to be converted into
or continued as LIBOR Rate Loans; or (ii) one (1) Business Day in advance
of the Conversion Date, if the Loans are to be converted into Base Rate
Loans, specifying: (1) the proposed Conversion Date or Continuation Date;
(2) the aggregate amount of Loans to be converted or renewed; (3) the
nature of the proposed conversion or continuation; and (4) the duration of
the requested Interest Period.
(c) If upon the expiration of any Interest Period applicable to any
LIBOR Rate Loan, the Borrowers' Representative has failed to select timely
a new Interest Period to be applicable thereto, or upon the request of the
Majority Lenders if any Default or Event of Default shall then exist, the
Borrowers' Representative shall be deemed to have elected to convert such
LIBOR Rate Loan into a Base Rate Loan, for Revolving Dollar Loans, or a
LIBOR Rate Loan, for Revolving Pound Loans, effective as of the expiration
date of such current Interest Period.
(d) Upon receipt of a Notice of Conversion/Continuation, the
appropriate Agent will promptly notify each Lender thereof, or, if no
timely notice is provided by the Borrowers' Representative, such Agent will
promptly notify each Lender of the details of any automatic conversion. All
conversions and continuations shall be made pro rata according to the
respective outstanding principal amounts of the Loans with respect to which
the notice was given held by each Lender.
II.6 Voluntary Termination or Reduction of Commitments. The Borrowers'
Representative may, upon not less than five (5) Business Days' prior notice
to the U.S. Agent, terminate any Commitment or permanently reduce any
Commitment by an aggregate minimum amount of One Million Dollars
($1,000,000) or, to the extent that such Commitment is denominated in
Pounds, Five Hundred Thousand Pounds (500,000), or any multiple of One
Million Dollars ($1,000,000) or, as appropriate, Five Hundred Thousand
Pounds (500,000) in excess thereof; provided that no such reduction or
termination shall be permitted if, after giving effect thereto and to any
prepayments of the Loans made on the effective date thereof, (a) the then
outstanding principal amount of the Loans would exceed the amount of the
corresponding Commitments then in effect, (b) the aggregate amount of all
Revolving Loans, Overdraft Pound Loans and L/C Obligations together would
exceed the aggregate amount of the Revolving Loan Commitments then in
effect, (c) the aggregate amount of all L/C Obligations then outstanding
would exceed the corresponding L/C Commitments then in effect, or (d) the
Overdraft Outstandings would exceed the Overdraft Amount; provided,
further, that once reduced in accordance with this Section 2.6, the
Commitment so reduced may not be increased. Any reduction of the Commitment
shall be applied to each Lender's Commitment pro rata in accordance with
such Lender's Commitment Percentage. All accrued commitment and letter of
credit fees to, but not including, the effective date of any reduction or
termination of a Commitment, shall be paid on the effective date of such
reduction or termination of any such request. The U.S. Agent will promptly
notify the Lenders and, if applicable, the Issuing Bank and/or the
Overdraft Bank of any reduction of a Commitment by the Borrowers hereunder.
II.7 Mandatory Reduction of Commitments. In addition to any voluntary
reduction of Commitments pursuant to Section 2.6, the Revolving Loan
Commitments shall be subject to mandatory reduction as follows: (i) by a
total of Ten Million Dollars ($10,000,000), effective as of January 1,
1999; and (ii) by a total of an additional Five Million Dollars
($5,000,000), effective as of January 1, 2000. The Borrowers'
Representative shall have the right, by giving written notice to the U.S.
Agent to such effect not later than five (5) Business Days prior to a
specified reduction date, to select an allocation between the Revolving
Dollar Loan Commitment or the Revolving Pound Loan Commitment; otherwise,
such reduction shall be allocated between the Commitments in a manner
determined by the U.S. Agent; provided, however, that (i) the U.S. L/C
Commitment shall not be reduced as a result of any such reduction unless
and until the Revolving Dollar Loan Commitment is reduced to the amount of
U.S. L/C Commitment, and, then, such reductions shall be pro tanto; (ii)
any reduction in the Revolving Pound Loan Commitment shall reduce, pro
tanto, the International L/C Commitment; and (iii) the Overdraft Pound Loan
Commitment shall not be reduced as a result of any such reduction unless
and until the Revolving Pound Loan Commitment is reduced to the amount of
the Overdraft Pound Loan Commitment and, then, such reductions shall be pro
tanto. If, as a result of any such required reduction of the Loan
Commitments, (i) Aggregate Credit Obligations then exceed the Revolving
Loan Commitment, (ii) Aggregate Revolving Dollar Obligations then exceed
the Revolving Dollar Loan Commitment, (iii) Aggregate Revolving Pound
Obligations then exceed the Revolving Pound Loan Commitment, or (iv) a
Borrowing Base Deficiency exists, the Borrowers shall be obliged, in each
case, immediately to reduce the principal amounts of the Revolving Loans
then outstanding by an amount necessary to reduce such deficiency. The U.S.
Agent will promptly notify the Lenders and, if applicable, the Issuing Bank
and/or the Overdraft Bank of such reductions of Commitments hereunder.
II.8 Optional Prepayments. Subject to Section 4.4, the Borrowers'
Representative may, at any time or from time to time, (a) upon at least
three (3) Business Days' notice to the International Agent with respect to
LIBOR Rate Loans or LIBOR Daily Rate Loans denominated in other than Pounds
or Dollars, (b) on the same Business Day's notice to the International
Agent with respect to LIBOR Daily Rate Loans denominated in Pounds or
Dollars and Overdraft Pound Loans, and (c) upon at least one (1) Business
Day's notice to the U.S. Agent with respect to Base Rate Loans, prepay
Loans in whole or in part, but (except for LIBOR Daily Rate Loans and
Overdraft Pound Loans) in minimum amounts of Two Hundred Fifty Thousand
Dollars ($250,000) (or, in the case of Revolving Pound Loans which are
LIBOR Rate Loans, One Hundred Twenty-Five Thousand Pounds (125,000) or
the Equivalent Amount in Pounds of any Alternative Currency) or any
multiple of Fifty Thousand Dollars ($50,000) (or, in the case of Revolving
Pound Loans which are LIBOR Rate Loans, Twenty-Five Thousand Pounds
(25,000), or the Equivalent Amount thereof in Pounds of any Alternative
Currency) in excess thereof. The Borrowers' Representative shall deliver a
notice of prepayment in accordance with Section 11.1 to be received by the
U.S. Agent, not later than 12:00 noon (Atlanta time), in the case of
Revolving Dollar Loans or CAPEX Dollar Loans, and received by XXXX, as the
Agent, not later than 12:00 noon (London time), in the case of Revolving
Pound Loans and CAPEX Pound Loans. If such notice is given by the
Borrowers' Representative, the Borrowers shall make such prepayment and the
payment amount specified in such notice shall be due and payable on the
date specified therein, together with accrued interest to each such date on
the amount prepaid and any amounts required pursuant to Section 4.4.
II.9 Mandatory Repayments.
(a) If at any time and for any reason there shall exist a Borrowing
Base Deficiency, the Borrowers shall immediately pay to the appropriate
Agent an amount equal to the Borrowing Base Deficiency, allocated pro rata
between the Loans to each Borrower then outstanding, which payment shall
constitute a mandatory repayment of the Loans hereunder.
(b) If on any date any L/C Obligations exceed the corresponding L/C
Commitment, the Borrower obligated therefor shall Cash Collateralize on
such date the outstanding Letters of Credit in an amount equal to the
excess of the maximum amount then available to be drawn under the Letters
of Credit over the Aggregate L/C Commitment.
(c) If on any date the Overdraft Outstandings exceed the Overdraft
Amount, the International Borrower shall repay to the Overdraft Bank an
amount equal to the excess of the Overdraft Amount.
(d) Any prepayments made pursuant to clauses (a) or (b) of this
Section 2.9 shall be applied first to any Base Rate Loans then outstanding,
then to any LIBOR Daily Rate Loans then outstanding, then to LIBOR Rate
Loans in Dollars with the shortest Interest Periods remaining, and then to
LIBOR Rate Loans with the shortest Interest Periods remaining. The
Borrowers shall pay, together with each prepayment under this Section 2.9,
accrued interest on the amount prepaid and any amounts required pursuant to
Section 4.4.
II.10 Repayment.
(a) Payment of all Obligations then outstanding shall be due and
payable on the Maturity Date. Prior thereto, each CAPEX Loan shall be
payable in equal, or nearly equal, quarterly installments (based on a five
(5) year level principal payment amortization), beginning on the first day
of the first calendar quarter following the disbursement date for such
CAPEX Loan, and continuing on each succeeding January 1, April 1, July 1
and October 1 preceding the Maturity Date.
(b) The International Borrower may repay and reborrow amounts under
the Overdraft Facility, subject to Sections 2.1(b) and 2.6 to 2.8, at any
time; provided that the Overdraft Bank may demand repayment of the
Overdraft Outstandings, or any part thereof, at any time; and, provided,
further, that the International Borrower shall repay all Overdraft
Outstandings, together with any interest thereon and shall cease to make
drawings thereunder, on the Maturity Date.
II.11 Interest. Interest on Loans shall be payable as follows:
(a) Interest on Base Rate Loans shall be payable monthly in arrears
following their disbursement, on each Interest Payment Date, until paid in
full. Interest shall accrue and be payable on each Base Rate Loan at a rate
per annum equal to the Base Rate plus the Applicable Percentage.
(b) Interest on LIBOR Daily Rate Loans shall be payable monthly in
arrears following their disbursement, on each Interest Payment Date, until
on each Interest Payment Date, paid in full. Interest shall accrue and be
payable on each LIBOR Daily Rate Loan at a rate per annum equal to the
Daily LIBOR Rate plus the Applicable Percentage.
(c) Interest on LIBOR Rate Loans shall be payable in arrears following
their disbursement on each Interest Payment Date. Interest shall accrue and
be payable on each LIBOR Rate Loan at a rate per annum equal to the LIBOR
Rate plus the Applicable Percentage.
(d) Interest on Overdraft Pound Loans shall accrue and be payable at a
rate per annum rate equal to the Overdraft Rate from time to time plus the
Applicable Percentage. Interest so accrued will be payable monthly in
arrears on each Interest Payment Date, by debit to the Overdraft Current
Accounts, and on any demand for payment of the Overdraft Loans.
(e) Upon the occurrence of an Event of Default, interest on the
outstanding Obligations shall accrue at the Default Rate from the date of
such Event of Default. Interest accruing at the Default Rate shall be
payable on demand at the request of the Majority Banks and in any event on
the Maturity Date and shall accrue until the earliest to occur of (i)
waiver in writing by the Majority Lenders of the applicable Event of
Default, (ii) agreement by the Majority Lenders to rescind the charging of
interest at the Default Rate, or (iii) payment in full of the Obligations.
The Lenders shall not be required to (i) accelerate the maturity of the
Loans, or (ii) exercise any other rights or remedies under the Loan
Documents in order to charge interest hereunder at the Default Rate.
(f) Anything herein to the contrary notwithstanding, the obligations
of the Borrowers to any Lender hereunder shall be subject to the limitation
that payments of interest shall not be required for any period for which
interest is computed hereunder, to the extent (but only to the extent) that
contracting for or receiving such payment by such Lender would be contrary
to the provisions of any law applicable to such Lender limiting the highest
rate of interest that may be lawfully contracted for, charged or received
by such Lender, and in such event the Borrowers shall pay such Lender
interest at the highest rate permitted by applicable law.
(g) If the Borrowers' Representative fails to give the appropriate
Agent timely notice of its selection of an LIBOR Rate Basis, or if for any
reason a determination of an LIBOR Rate Basis for any Loan is not timely
concluded, the Base Rate shall apply to such Loan.
(h) At no time may the number of outstanding LIBOR Rate Loans exceed
twelve (12).
II.12 Fees.
(a) The Borrowers shall pay a closing fee to the U.S. Agent for the
U.S. Agent's own account, as required by that certain letter agreement
("Fee Letter") between the Borrowers and the Agent dated December 4, 1997.
(b) The Borrowers shall pay to the applicable Agent for the account of
the Lenders an unused line fee on the average daily unused portion of the
aggregate Commitments (without duplication), computed on a quarterly basis
in arrears on the last Business Day of each calendar quarter based upon the
daily utilization for that calendar quarter, as calculated by such Agent,
equal to the Applicable Percentage corresponding to such fee. Such fee
shall accrue from the Agreement Date to the Maturity Date and shall be due
and payable quarterly in arrears on the last Business Day of each calendar
quarter commencing on March 31, 1998 through the Maturity Date, with the
final payment to be made on the Maturity Date; provided that, in connection
with any reduction or termination of the Commitments under Sections 2.6 or
2.7, the accrued unused line fee calculated for the period ending on such
date shall also be paid on the date of such reduction or termination, with
the following quarterly payment being calculated on the basis of the period
from such reduction or termination date to such monthly payment date. The
fee provided in this Section shall accrue at all times after the
above-mentioned commencement date, including at any time during which one
or more conditions in Article V are not met. The U.S. Agent shall compute,
collect and allocate the commitment fee due the U.S. Lenders based on their
respective Commitments using Dollars; and the International Agent shall
compute the commitment fee due the International Lenders based on their
respective Commitments using Pounds or, as appropriate, the Equivalent
Amount in Pounds for Obligations denominated in Alternative Currencies.
II.13 Computation of Fees and Interest. All computations of interest
on Revolving Pound Loans and Overdraft Pound Loans shall be made on the
basis of a 365-day year and actual days elapsed. All other computations of
fees and interest hereunder shall be made on the basis of a 360-day year
and actual days elapsed (which results in more interest being paid than if
computed on the basis of a 365-day year) . Interest and fees shall accrue
during each period during which interest or such fees are computed from the
first day thereof to the last day thereof. Each determination of an
interest rate by an Agent shall be prima facie evidence of such rate. Any
change in the interest rate on a Loan resulting from a change in the
Offshore Reserve Percentage shall become effective as of the opening of
business on the day on which such change in Offshore Reserve Percentage
becomes effective. The appropriate Agent will notify the Borrowers'
Representative and the Lenders of the effective date and the amount of such
change, provided that any failure to do so shall not relieve the Borrowers
of any liability hereunder or provide the basis for any claim against the
Agent. Each determination of an Equivalent Amount by the appropriate Agent
shall be prima facie evidence of such Equivalent Amount.
II.14 Payments by the Borrowers.
(a) All payments (including prepayments) to be made by the Borrowers
on account of principal, interest, fees and other amounts required
hereunder shall be made without set-off, recoupment or counterclaim shall
be made to the appropriate Agent for the ratable account of the applicable
Lenders at such Agent's Office. Such payments shall be made in Same Day
Funds, (i) in the case of payments on or in respect of Revolving Dollar
Loans and CAPEX Dollar Loans, to the U.S. Agent no later than 12:00 noon
(Atlanta time) on the date specified herein, and (ii) in the case of
payments on or in respect of Revolving Pound Loans, Overdraft Pound Loans
and CAPEX Pound Loans, to the International Agent no later than 12:00 noon
(London time) on the date specified herein. The appropriate Agent will
promptly distribute to each applicable Lender its Commitment Percentage of
such principal, interest, fees or other amounts, in like funds as received.
Any payment which is received by the appropriate Agent later than the times
specified in clauses (i) and (ii) above, shall be deemed to have been
received on the immediately succeeding Business Day and any applicable
interest or fee shall continue to accrue.
(b) Whenever any payment hereunder shall be stated to be due on a day
other than a Business Day, such payment shall be made on the next
succeeding Business Day, and such extension of time shall in such case be
included in the computation of interest or fees, as the case may be;
subject to the provisions set forth in the definition of "Interest Period"
herein.
(c) Unless the appropriate Agent shall have received notice from the
Borrowers' Representative prior to the date on which any payment is due to
the Lenders hereunder that the Borrowers will not make such payment in full
as and when required hereunder, such Agent may assume that the Borrowers
have made such payment in full to such Agent on such date in Same Day Funds
and such Agent may (but shall not be so required), in reliance upon such
assumption, cause to be distributed to each applicable Lender on such due
date an amount equal to the amount then due such Lender. If and to the
extent the Borrowers shall not have made such payment in full to such
Agent, each such Lender shall repay to such Agent on demand such amount
distributed to such Lender, together with interest thereon for each day
from the date such amount is distributed to such Lender until the date such
Lender repays such amount to such Agent, at the Federal Funds Rate as in
effect for each such day.
II.15 Payments by the Lenders.
(a) Unless the appropriate Agent shall have received notice from an
applicable Lender on the Agreement Date or, with respect to each Borrowing
of a Loan denominated in Dollars after the Agreement Date, at least one (1)
Business Day prior to the date of any such proposed Loan that such Lender
will not make available to such Agent as and when required hereunder for
the account of the Borrowers the amount of that Lender's Commitment
Percentage of the Loan, such Agent may assume that each such Lender has
made such amount available to such Agent in Same Day Funds on the advance
date and such Agent may (but shall not be so required), in reliance upon
such assumption, make available to a Borrower on such date a corresponding
amount. If and to the extent any such Lender shall not have made its full
amount available to such Agent in Same Day Funds and the Agent in such
circumstances has made available to such Borrower such amount, that Lender
shall on the next Business Day following the date of such advance make such
amount available to such Agent, together with interest at the Federal Funds
Rate for and determined as of each day during such period. A notice of such
Agent submitted to any such Lender with respect to amounts owing under this
Section 2.15(a) shall be conclusive, absent manifest error. If such amount
is so made available, such payment to such Agent shall constitute such
Lender's Loan on the date of advance for all purposes of this Agreement. If
such amount is not made available to such Agent on the next Business Day
following the date of such advance, such Agent shall notify the Borrowers'
Representative of such failure to fund and, upon demand by such Agent, the
appropriate Borrower shall pay such amount to such Agent for such Agent's
account, together with interest thereon for each day elapsed since the date
of such advance, at a rate per annum equal to the interest rate applicable
at the time to the Loans comprising such advance. The foregoing provisions
of this paragraph (a) shall only apply to Loans denominated in Dollars.
Each International Lender will advance each Revolving Pound Loans and CAPEX
Pound Loans directly to the International Borrower, in accordance with
Section 2.4 hereof, and will promptly deliver a notice confirming such Loan
to the International Agent.
(b) The failure of any Lender to make any Loan on any date of
Borrowing shall not relieve any other Lender of any obligation hereunder to
make a Loan on the date of such borrowing, but no Lender shall be
responsible for the failure of any other Lender to make the Loan to be made
by such other Lender on the date of any borrowing. In the event that, at
any time when the Borrowers are not in Default, a Lender for any reason
(other than the failure of the Borrowers to satisfy the conditions herein
to an advance of a Loan or the appropriate Agent's failure to give notice
of such advance as required hereunder) fails or refuses to fund its portion
of a Loan, then, until such time as such Lender has funded its portion of
such Loan, or all other Lenders have received payment in full (whether by
payment or repayment) of the principal and interest due in respect of such
Loan, such non-funding Lender shall (i) have no right to vote regarding any
issue on which voting is required or advisable under this Agreement or any
other Loan Document, and (ii) shall be entitled to receive no payments of
principal, interest or fees from either Borrower in respect of such Loan
which such Lender failed to make.
II.16 Sharing of Payments, Etc. If, other than as expressly provided
elsewhere herein, any Lender shall obtain on account of any Loan made by it
any payment (whether voluntary, involuntary, through the exercise of any
right of set-off, or otherwise) in excess of its Commitment Percentage of
payments on account of such Loan obtained by all other applicable Lenders,
such Lender shall forthwith (i) notify the appropriate Agent of such fact,
and (ii) purchase from the other Lenders such participations in the related
Loans made by them as shall be necessary to cause such purchasing Lender to
share the excess payment ratably with each of them; provided, however, that
if all or any portion of such excess payment is thereafter recovered from
the purchasing Lender such purchase shall to that extent be rescinded and
each other Lender shall repay to the purchasing Lender the purchase price
paid therefor, together with an amount equal to such paying Lender's
Commitment Percentage (according to the proportion of (i) the amount of
such paying Lender's required repayment to (ii) the total amount so
recovered from the purchasing Lender, of any interest or other amount paid
or payable by the purchasing Lender in respect of the total amount so
recovered. Each Borrower agrees that any Lender so purchasing a
participation from another Lender pursuant to this Section 2.16 may, to the
fullest extent permitted by law, exercise all its rights of payment
(including the right of set-off) with respect to such participation as
fully as if such Lender were the direct creditor of such Borrower in the
amount of such participation. The appropriate Agent will keep records
(which shall be conclusive and binding in the absence of manifest error) of
participations purchased pursuant to this Section 2.16 and will in each
case notify the applicable Lenders following any such purchases or
repayments.
II.17 Application of Payments.
(a) Payments made to any Obligee (from realization on collateral for
the Obligations or otherwise), shall be distributed in the following order
of priority subject at all times to the limitations set forth in Section
2.19(a) in respect of each Obligor's own liabilities hereunder: FIRST, to
the costs and expenses (including Attorneys' Costs), if any, incurred by
such Obligee in the collection of such amounts under this Agreement or of
the Loan Documents, including, without limitation, any costs incurred in
connection with the sale or disposition of any Collateral; SECOND, to any
fees then due and payable to such Obligee and each other Obligee under this
Agreement or any other Loan Document; THIRD, to the payment of interest
then due and payable on the Loans; FOURTH, to the extent there are any
unreimbursed drawings under any Letter of Credit, to the Issuing Bank in
respect of such unreimbursed drawings then outstanding; FIFTH, to the
payment of principal then due and payable on the Loans; SIXTH, to any other
Obligations not otherwise referred to in this Section 2.17(a) in such order
among the Obligees to whom such Obligations are owing as they shall
mutually determine; SEVENTH, to damages incurred by any Obligee by reason
of any breach hereof or of any other Loan Document; and EIGHTH, upon
satisfaction in full of all Obligations, to the Borrowers' Representative
or as otherwise required by law.
(b) The Obligations shall, notwithstanding any judgment of any court,
arbitral tribunal or similar authority specifying judgment in any currency
(as so specified, the "Judgment Currency") other than the currency in which
such Obligations were originally denominated (as applicable, the "Original
Currency"), be discharged only to the extent that, on the date when
received by an Obligee, the sum adjudged to be so due in the Judgment
Currency, after conversion to the Original Currency in accordance with the
following Section 2.17(c), is equal to the amount of the Obligations when
denominated in the Original Currency. If the amount of the Judgment
Currency, after being so converted, is less than the amount of the Original
Currency, each Obligor agrees to indemnify each Obligee against such
difference, and if the amount of the Judgment Currency, after being so
converted, is greater than the amount of the Original Currency, each
Obligee shall remit such excess to the Borrowers' Representative.
(c) Except where otherwise expressly provided in this Agreement, in
any case where any Original Currency is to be converted into another
currency (as applicable, a "Resulting Currency"), the appropriate Agent
shall convert the Original Currency into the Resulting Currency using the
applicable Spot Rate, and the calculations of such Agent thereof shall be
prima facie evidence of the Resulting Currency amount.
II.18 Foreign Exchange Facility.
(a) BOAFSB or its Affiliate (a "FX Lender"), at its discretion may
enter into a Foreign Exchange Agreement at any time or from time to time
with a Borrower subsequent to the Agreement Date, but shall have no
obligation, or commitment, to do so, and may set limits on both foreign
exchange contract limits and settlement limits. That is, as used herein, a
"foreign exchange contract limit" is the maximum limit on the net
difference between the total Foreign Exchange Agreements outstanding less
the total Foreign Exchange Agreements for which a Borrower has already
compensated the FX Lender and a "settlement limit" is the maximum limit on
the gross total amount of all sale and purchase contracts on which delivery
is to be effected and settlement allowed on any one banking day.
(b) Foreign Exchange Agreements will be in form and substance
satisfactory to the FX Lender and the Borrowers' Representative.
(c) Each Foreign Exchange Agreement will be co-terminous with the
Maturity Date and in addition no Foreign Exchange Agreement shall have a
tenor longer than 365 days.
(d) Each Borrower understands the risks of, and is financially able to
bear any losses resulting from, entering into Foreign Exchange Agreements.
The FX Lender shall not be liable for any loss suffered by a Borrower as a
result of a Foreign Exchange Agreement. Each Borrower will enter into each
Foreign Exchange Agreement in reliance only upon such Borrower's own
judgment. Each Borrower acknowledges that in entering into any Foreign
Exchange Agreement with such Borrower the FX Lender is not acting as a
fiduciary. Each Borrower understands that neither the FX Lender nor either
Borrower has any obligation to enter into any particular Foreign Exchange
Agreement with the other.
(e) Each Borrower will enter into Foreign Exchange Agreements only in
connection with the conduct of its business or to manage the risk of an
asset or liability owned or incurred in the conduct of its business, and
not for speculative purposes in any event.
(f) Each Borrower hereby requests the FX Lender to rely upon and
execute such Borrower's telephonic instructions regarding Foreign Exchange
Agreements, and such Borrower agrees that the FX Lender shall incur no
liability for its acts or omissions which result from interruption of
communications, misunderstood communications or instructions from
unauthorized persons, unless caused by the gross negligence or wilful
misconduct of the FX Lender or its officers or employees as determined by a
final judgment of a court of competent jurisdiction. Each Borrower agrees
to protect the FX Lender and hold it harmless from any and all loss,
damage, claim, expense (including the reasonable fees of outside counsel
and the allocated costs of staff counsel) or inconvenience, however
arising, which the FX Lender suffers or incurs or might suffer or incur,
based on or arising out of said acts or omissions.
(g) Each Borrower agrees to promptly review all confirmations sent to
such Borrower by the FX Lender. Each Borrower understands that these
confirmations are not legal contracts but only evidence of the valid and
binding oral contract which such Borrower has already entered into with the
FX Lender. Each Borrower agrees to promptly execute and return to the FX
Lender confirmations which accurately reflect the terms of a Foreign
Exchange Agreement, and immediately contact the FX Lender if such Borrower
believes a confirmation is not accurate. In the event of a conflict,
inconsistency or ambiguity between the provisions of this Agreement and the
provisions of a confirmation, the provisions of this Agreement will
prevail.
(h) Each Borrower agrees that the FX Lender may electronically record
all telephonic conversations with such Borrower relating to Foreign
Exchange Agreements and that such tape recordings may be submitted in
evidence to any court or in any other proceedings relating to such
contracts. Each Borrower agrees that in the event of a conflict,
inconsistency or ambiguity between the terms of a Foreign Exchange
Agreement as reflected in a tape recording and the terms stated on a
confirmation, the terms reflected in the tape recording shall control.
(i) Any sum owing to the FX Lender under a Foreign Exchange Agreement
from time to time shall constitute part of the Obligations. Unless
otherwise agreed in writing between the FX Lender and such Borrower, any
such sum shall bear interest from and after the due date for the payment
thereof (if payment is not made when due), on the same basis as is then
(and thereafter) applicable to Revolving Dollar Loans which are Base Rate
Loans, if such sums are owing by the U.S. Borrower, or to Revolving Pound
Loans which are LIBOR Daily Rate Loans, if such sums are owing by the
International Borrower. Each Borrower hereby authorizes the FX Lender to
debit such Borrower's account with the FX Lender for payments due from such
Borrower to the FX Lender with respect to any Foreign Exchange Agreement.
Each Borrower acknowledges, subject at all times to the limitations set
forth in Section 2.19(a) in respect of each Borrower's own liabilities
hereunder, that collateral pledged to secure the Borrower's performance of
their obligations under this Agreement secures not only the Borrower's
obligation to repay advances hereunder but also secures such Borrower's
performance of each and every obligation hereunder, including but not
limited to such Borrower's performance of its obligations under Foreign
Exchange Agreements with the FX Lender.
(j) In addition to any other rights or remedies which the FX Lender
may have under this Agreement or otherwise, upon the occurrence of an Event
of Default under this Agreement and until such Event of Default is waived
in writing by the Lenders in accordance with Section 12.1 hereof, the FX
Lender may: (1) suspend performance of its obligations to either Borrower
under any Foreign Exchange Agreement; (2) declare all Foreign Exchange
Agreements, interest and any other amounts which are payable by either
Borrower to the FX Lender immediately due and payable; and (3) without
notice to either Borrower, close out any or all Foreign Exchange Agreements
or positions of each Borrower with the FX Lender. The FX Lender shall not
be under any obligation to exercise any such rights or remedies or to
exercise them at a time or in a manner beneficial to either Borrower. Each
Borrower shall be and remain liable for any amounts owing to the FX Lender
after exercise of any such rights and remedies.
(k) Either of the Borrowers and the FX Lender may enter into an
Foreign Exchange Master Agreement (as amended, modified or renewed, the
"FEMA") . All foreign exchange transactions entered into between a Borrower
and the FX Lender shall be subject to the provisions of this Agreement and
the FEMA in the event of any conflict or inconsistency between the
provisions of this Agreement and the provisions of the FEMA, the provisions
of the FEMA shall control, except that with respect to provisions governing
which portions of the Collateral and which guarantees secure which
Obligations, the provisions of this Agreement control. The occurrence of an
Event of Default under the FEMA shall also constitute an Event of Default
under this Agreement.
II.19 Guaranty.
(a) Each Guarantor hereby unconditionally guarantees to each Obligee
and their respective successors and assigns and the subsequent holders of
the Notes, irrespective of the validity and enforceability of this
Agreement, the Notes, or the other Loan Documents or the Obligations
hereunder of the Borrowers or a Borrower, as the case may be, the value or
sufficiency of any Collateral or any other circumstance that might
otherwise affect the liability of a guarantor, that all Obligations shall
be promptly paid in full when due, whether at stated maturity, by
acceleration or otherwise, in accordance with the terms hereof and of the
other Loan Documents. Failing payment when due of any amount so guaranteed
for whatever reason, such Guarantor will be obligated to pay the same
immediately. Notwithstanding the foregoing, however, or any term of any
Loan Document to the contrary, (i) neither the International Borrower, nor
any International Subsidiary, shall, in any event, be deemed to be a
Guarantor in respect of any Obligations of the U.S. Borrower or any U.S.
Subsidiary, and (ii) no International Collateral shall secure the payment
or performance of the Obligations of the U.S. Borrower or any U.S.
Subsidiary.
(b) Each Guarantor hereby waives presentment, protest, demand of
payment, notice of dishonor and all other notices and demands whatsoever.
Each Guarantor further agrees that, as between such Guarantor, on the one
hand, and the Obligees, on the other hand, (i) the maturity of the
Obligations guaranteed hereby may be accelerated as provided in
Section 10.2 hereof for the purposes of this guarantee, notwithstanding any
stay, injunction or other prohibition preventing such acceleration in
respect of the Obligations guaranteed hereby, and (ii) in the event of any
declaration of acceleration of such Obligations as provided in Section 10.2
hereof, such Obligations (whether or not due and payable) shall forthwith
become due and payable by each Borrower for purposes of this guaranty. The
obligations of each Guarantor under this Section 2.19 shall be
automatically reinstated if and to the extent that for any reason any
payment by or on behalf of a Borrower or any other Guarantor is rescinded
or must otherwise be restored by any holder of any of the Obligations
guaranteed hereunder, whether as a result of any proceedings in bankruptcy
or reorganization or otherwise, and each Guarantor agrees that it will
indemnify the Obligees on demand for all reasonable costs and expenses
(including, without limitation, reasonable fees and expenses of counsel)
incurred by the Obligees in connection with such rescission or restoration.
(c) The guaranty of each Guarantor set forth herein shall remain in
full force and effect until all Obligations are indefeasibly paid in full.
No payment or payments made by a Borrower or any other Person or received
or collected by an Obligee from a Borrower or any other Person by virtue of
any action or proceeding or any set-off or appropriation or application at
any time or from time to time in reduction of or in payment of the
Obligations shall be deemed to modify, reduce, release or otherwise affect
the liability of such Guarantor pursuant to this Section 2.19, which
liability shall, notwithstanding any such payment or payments, other than
payments made by such Borrower in respect of the Obligations, remain for
the Obligations until all Obligations are paid in full. Each Guarantor
agrees that whenever, at any time, or from time to time, it shall make any
payment to any Obligee on account of its liability under this Section 2.19,
it will notify the appropriate Agent in writing that such payment is made
under its guaranty obligations of this Section 2.19 for such purpose.
Anything herein, or in any other Loan Document, to the contrary
notwithstanding, the maximum liability of each Guarantor under this
Section 2.19 shall in no event exceed the amount which can be guaranteed by
such Guarantor under applicable federal or state laws relating to the
insolvency of debtors.
(d) Without in any manner limiting the generality of the foregoing,
each Guarantor agrees that each Obligee may, in accordance with
Section 12.1 hereof, from time to time, consent to any action or non-action
of either Borrower or any other Obligor which, in the absence of such
consent, violates or may violate this Agreement, with or without
consideration, on such terms and conditions as may be acceptable to such
Obligee, without in any manner affecting or impairing the liability of any
Guarantor hereunder. Each Guarantor waives any defense arising by reason of
any inability to pay or any defense based on bankruptcy or insolvency or
other similar limitations on creditors' remedies. Each Guarantor authorizes
each Obligee, without notice or demand and without affecting such
Guarantor's liability hereunder or under any of the other Loan Documents,
from time to time to: (i) accelerate (or, in accordance with Section 12.1
hereof, renew, extend, or otherwise change the time or place for payment
of, or otherwise change the terms of) the Notes or the Obligations or any
part thereof including, without limitation, increase or decrease of the
rate of interest thereon; (ii) take and hold security, and exchange,
enforce, waive and release any collateral or security or any part thereof
or any such other security or surrender, modify, impair, change, alter,
renew, continue, compromise or release in whole or in part of any such
security, or fail to perfect its interest in any such security or to
establish its priority with respect thereof; (iii) apply such security and
direct the order or manner or sale thereof as the Agent and Majority
Lenders in their sole discretion may determine; (iv) release or substitute
either Borrower or any other Guarantor, in whole or in part or any of the
endorsers or guarantors of the Obligations or any part thereof; (v) settle
or compromise any or all of the Obligations with either Borrower or any
other Guarantor or any endorser or guarantor of the Obligations; and (vi)
subordinate any or all of the Obligations to any other obligations of or
claim against either Borrower or any other Guarantor, whether owing to or
existing in favor of such Obligee or any other party.
(e) Each Obligee may, at its election, exercise any right or remedy
that it may have against either Borrower or any Guarantor or any security
now or hereafter held by or for the benefit of the Obligees, including,
without limitation, the right to foreclose upon any such security by
judicial or nonjudicia1 sale, without affecting or impairing in any way the
liability of either Borrower or any Guarantor, except to the extent the
Obligations may thereby be paid. Each Guarantor waives any defense arising
out of the absence, impairment or loss of any right of reimbursement or
other right or remedy against either Borrower or any other Guarantor or any
such security, whether resulting from the election by any Obligee to
exercise any right or remedy they may have against either Borrower or any
other Guarantor, any defect in, failure of, or loss or absence of priority
with respect to the interest of any Obligee in such security, or otherwise.
In the event that any foreclosure sale is deemed to be not commercially
reasonable, each Guarantor waives any right that it may have to have any
portion of the Obligations discharged except to the extent of the amount
actually bid and received by the Lenders at any such sale. No Obligee shall
be required to institute or prosecute proceedings to recover any deficiency
as a condition of payment hereunder or enforcement hereof.
(f) Each Guarantor waives the benefit of any statute of limitations
affecting its liability hereunder or the enforcement thereof, to the extent
permitted by law. Any part performance of the Obligations by a Borrower, or
any other event or circumstances, which operate to toll any statute of
limitations as to such Borrower, shall not operate to toll the statute of
limitations as to the other Borrower or any other Guarantor. Each Guarantor
waives any defense arising by reason of any disability or other defense of
either Borrower or any other Guarantor or by reason of the cessation from
any cause whatsoever of the liability of the other Borrower or any other
Guarantor. Each Guarantor waives any setoff, defense or counterclaim which
any other Borrower may have or claim to have against any Obligee.
(g) Each Guarantor expressly represents and acknowledges that any
financial accommodations by any Obligee to either Borrower hereunder and
under the other Loan Documents are and will be of direct interest, benefit
and advantage to such Guarantor. Each Guarantor acknowledges that any
notice given by any Obligee to either Borrower or the Borrowers'
Representative shall be effective with respect to all Guarantors. Each
Guarantor shall be entitled to subrogation and contribution rights from and
against any other Guarantor to the extent such Guarantor is required to pay
to any Obligee any amount in excess of the Loans advanced hereunder
directly to such Borrower or as otherwise available under Applicable Law;
provided, however, that such subrogation and contribution rights are and
shall be subject to the terms and conditions of Section 2.19(b) hereof. The
provisions of this Section 2.19(g) shall in no way limit the obligations
and liabilities of any Guarantor to the Obligees and each Guarantor shall
remain liable to the Obligees for the full amount of the Obligations.
(h) No Guarantor will exercise any rights which it may acquire by way
of subrogation hereunder or under any other Loan Document or at law by any
payment made hereunder or otherwise, nor shall any Guarantor seek or be
entitled to seek any contribution or reimbursement from any other Guarantor
in respect of payments made by such Guarantor hereunder or under any other
Loan Document, until all Obligations are paid in full and all Commitments
are terminated. If any amounts shall be paid to any Guarantor on account of
such subrogation or contribution rights at any time when all of the
Obligations shall not have been paid in full, such amount shall be held by
such Guarantor in trust for the Obligees, segregated from other funds of
such Guarantor, and shall, forthwith upon receipt by such Guarantor, be
turned over to the appropriate Obligees in the exact form received by such
Guarantor (duly endorsed by such Guarantor to such Obligee, if required),
to be applied against the Obligations, whether mature or unmatured, as
provided for herein.
(i) Notwithstanding any provision to the contrary contained
hereinabove, to the extent the obligations of any Guarantor hereunder 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 Bankruptcy Code).
ARTICLE III.
THE LETTERS OF CREDIT
III.1 The Letter of Credit Subfacility.
(a) On the terms and conditions set forth herein, including, but not
limited to, the conditions set forth in Section 5.2, (i) the Issuing Bank
agrees, (A) from time to time on any Business Day during the period from
the Agreement Date to the Maturity Date to issue Letters of Credit for the
account of the requesting Borrower, and to amend or renew Letters of Credit
previously issued by it, in accordance with Subsections 3.2 (c) and 3.2
(d), and (B) to honor drafts under the Letters of Credit; (ii) the U.S.
Lenders severally agree to participate in U.S. Letters of Credit Issued for
the account of the U.S. Borrower; and (iii) the International Lenders
severally agree to participate in International Letters of Credit issued
for the account of the International Borrower; provided, that the Issuing
Bank shall not Issue any Letter of Credit if as of the date of Issuance of
such Letter of Credit (the "Issuance Date") and after giving effect to the
issuance of such Letters of Credit: (i) U.S. L/C Obligations exceed the
U.S. L/C Commitment; (ii) International L/C Obligations exceed the
International L/C Commitment; (iii) the participation of any U.S. Lender in
the U.S. L/C Obligations then outstanding, when aggregated with all
Revolving Dollar Loans of such Lender then outstanding, exceeds such
Lender's Revolving Dollar Loan Commitment; (iv) the participation of any
International Lender in the International L/C Obligations then outstanding,
when aggregated with all Revolving Pound Loans of such Lender then
outstanding, exceeds such Lender's Revolving Pound Loan Commitment;
(v) total U.S. L/C Obligations then outstanding, when aggregated with total
Revolving Dollar Loans then outstanding, exceeds the Revolving Dollar Loan
Commitment; or (vi) total International L/C Obligations then outstanding,
in Pounds (or the Equivalent Amount in Pounds of any L/C Obligations issued
in Alternative Currencies), when aggregated with total Revolving Pound
Loans and Overdraft Pound Loans outstanding (or the Equivalent Amount in
Pounds of any such Loans made in Alternative Currencies), exceeds the
Revolving Pound Loan Commitment. Within the foregoing limits, and subject
to the other terms and conditions hereof, the Borrowers' ability to obtain
Letters of Credit shall be fully revolving, and, accordingly, the Borrowers
may, during the foregoing period, obtain Letters of Credit to replace
Letters of Credit which have expired or which have been drawn upon and
reimbursed.
(b) No Issuing Bank shall be obligated to Issue any Letter of Credit,
however, if:
(i) any order, judgment or decree of any Governmental Authority or
arbitrator shall by its terms purport to enjoin or restrain such Issuing
Bank from Issuing such Letter of Credit, or any Requirement of Law
applicable to such Issuing Bank or any request or directive (whether or not
having the force of law) from any Governmental Authority with jurisdiction
over such Issuing Bank shall prohibit, or request that such Issuing Bank
refrain from, the Issuance of Letters of Credit generally or such Letter of
Credit in particular or shall impose upon such Issuing Bank with respect to
such Letter of Credit any restriction, reserve or capital requirement (for
which such Issuing Bank is not otherwise compensated hereunder) not in
effect on the Agreement Date, or shall impose upon such Issuing Bank any
unreimbursed loss, cost or expense which was not applicable on the
Agreement Date and which such Issuing Bank in good xxxxx xxxxx material to
it;
(ii) any requested Letter of Credit does not provide for drafts, or is
not otherwise in form and substance reasonably acceptable to such Issuing
Bank, or the Issuance of a Letter of Credit shall violate any applicable
policies of such Issuing Bank;
(iii) except for those Letters of Credit described on Schedule 3.1.,
to be issued on or about the Agreement Date, and except, in respect of
International Letters of Credit, as may be necessary to accommodate local
laws prescribing acceptable letter of credit issuers, provided that the
International Agent approves such letter of credit issuer, any Letter of
Credit is for the purpose of supporting the issuance of any letter of
credit by any other Person;
(iv) such Letter of Credit is in a face amount less than Ten Thousand
Dollars ($10,000), for U.S. Letters of Credit only;
(v) any Issuing Bank has received written notice from any Lender, the
Agent or the Borrowers' Representative, on or prior to the Business Day
prior to the requested date of Issuance of such Letter of Credit, that one
or more of the applicable conditions contained in Section 5.2 is not then
satisfied;
(vi) the expiry date of any requested Letter of Credit is (A) more
than 365 days after the date of Issuance, for U.S. Letters of Credit only,
unless the Agent has approved such expiry date in writing, or (B) after the
Maturity Date; provided, however, that, subject to compliance with
Section 3.7, up to One Million Pounds (1,000,000) in International
Letters of Credit may be issued with expiring days longer than as specified
hereinabove or which have automatic renewal provisions.
(c) BOA, as Issuing Bank, shall only Issue Letters of Credit in
Dollars, and XXXX, as Issuing Bank, shall only Issue Letters of Credit in
Pounds or Alternative Currencies. All references herein to "Issuing Bank"
with respect to Letters of Credit Issued or requested to be Issued in (a)
Dollars, shall refer to BOA in its capacity as Issuing Bank, and (h) Pounds
or Alternative Currencies, shall refer to XXXX in its capacity as Issuing
Bank.
III.2 Issuance, Amendment and Renewal of Letters of Credit.
(a) Each Letter of Credit shall be issued upon the irrevocable written
request of the Borrowers' Representative received by the Issuing Bank (with
a copy sent by the Borrowers' Representative to the appropriate Agent) at
least three (3) Business Days with respect to U.S. Letters of Credit, and
at least three (3) Business Days with respect to International Letters of
Credit (or such shorter time as the Issuing Bank may agree in a particular
instance in its sole discretion) prior to the proposed date of issuance.
Each such request for issuance of a Letter of Credit shall be by facsimile,
confirmed immediately in the form of an L/C Application, or electronically
using the Issuing Bank's automated personal computer based letter of credit
initiation software, and shall specify in form and detail reasonably
satisfactory to the Issuing Bank: (i) the proposed date of issuance of the
Letter of Credit (which shall be a Business Day); (ii) the face amount of
the Letter of Credit; (iii) the expiry date of the Letter of Credit; (iv)
the name and address of the beneficiary thereof; (v) the documents to be
presented by the beneficiary of the Letter of Credit in case of any drawing
thereunder; (vi) the full text of any certificate to be presented by the
beneficiary in case of any drawing thereunder; (vii) whether the Letter of
Credit is to be Issued in Dollars, Pounds or an Alternative Currency, and
(viii) such other matters as the Issuing Bank may require.
(b) At least two (2) Business Days prior to the Issuance of any Letter
of Credit, the Issuing Bank will confirm with the appropriate Agent in
writing that such Agent has received a copy of the L/C Application or L/C
Amendment Application from the Borrowers' Representative and, if not, the
Issuing Bank will provide the Agent with a copy thereof. Unless the Issuing
Bank has received notice on or before the Business Day immediately
preceding the date the Issuing Bank is to issue a requested Letter of
Credit from the Agent (A) directing the Issuing Bank not to issue such
Letter of Credit because such issuance is not then permitted under
Subsection 3.1(a) (ii) as a result of the limitations set forth in clauses
(1) through (5) thereof or Subsection 3.1 (b) (ii); or (B) that one or more
conditions specified in Article V are not then satisfied; then, subject to
the terms and conditions hereof, the Issuing Bank shall, on the requested
date issue a Letter of Credit for the account of the applicable Borrower in
accordance with the Issuing Bank's usual and customary business practices.
(c) From time to time while a Letter of Credit is outstanding and
prior to the Maturity Date, the Issuing Bank will, upon the written request
of the Borrowers' Representative received by the Issuing Bank (with a copy
sent by the Borrowers' Representative to the appropriate Agent) at least
two (2) Business Days (or such shorter time as the Issuing Bank may agree
in a particular instance in its sole discretion) prior to the proposed date
of amendment, amend any Letter of Credit issued by it. Each such request
for amendment of a Letter of Credit shall be made by facsimile, confirmed
immediately in the form of an L/C Amendment Application, or electronically
using the Issuing Bank's automated personal computer based letter of credit
initiation software, and shall specify in form and detail reasonably
satisfactory to the Issuing Bank: (i) the Letter of Credit to be amended;
(ii) the proposed date of amendment of the Letter of Credit (which shall be
a Business Day); (iii) the nature of the proposed amendment; and (iv) such
other matters as the Issuing Bank may require. The Issuing Bank shall be
under no obligation to amend any Letter of Credit if: (A) the Issuing Bank
would have no obligation at such time to issue such Letter of Credit in its
amended form under the terms of this Agreement; or (B) the beneficiary of
any such Letter of Credit does not accept the proposed amendment to the
Letter of Credit. The appropriate Agent will promptly notify the applicable
Lenders of the receipt by it of any L/C Application or L/C Amendment
Application.
(d) The Issuing Bank and the Lenders agree that, while a Letter of
Credit is outstanding and prior to the Maturity Date, at the option of the
Borrowers' Representative and upon the written request of the Borrowers'
Representative received by the Issuing Bank (with a copy sent by the
Borrowers' Representative to the Agent) at least two (2) Business Days (or
such shorter time as the Issuing Bank may agree in a particular instance in
its sole discretion) prior to the proposed date of notification of renewal,
the Issuing Bank shall be entitled to authorize the renewal of any Letter
of Credit issued by it. Each such request for renewal of a Letter of Credit
shall be made by facsimile, confirmed immediately in the form of an L/C
Amendment Application, or electronically using the Issuing Bank's automated
personal computer based letters of credit software, and shall specify in
form and detail reasonably satisfactory to the Issuing Bank: (i) the Letter
of Credit to be renewed; (ii) the proposed date of notification of renewal
of the Letter of Credit (which shall be a Business Day); (iii) the revised
expiry date of the Letter of Credit; and (iv) such other matters as the
Issuing Bank may require. The Issuing Bank shall be under no obligation so
to renew any Letter of Credit if: (A) the Issuing Bank would have no
obligation at such time to issue or amend such Letter of Credit in its
renewed form under the terms of this Agreement; or (B) the beneficiary of
any such Letter of Credit does not accept the proposed renewal of the
Letter of Credit.
(e) The Issuing Bank may, at its election (or as required by the U.S.
Agent at the direction of the Majority Lenders) deliver any notices of
termination or other communications to any Letter of Credit beneficiary or
transferee, and take any other action as necessary or appropriate, at any
time and from time to time, in order to cause the expiry date of such
Letter of Credit to be a date not later than the Maturity Date.
(f) This Agreement shall control in the event of any conflict with any
L/C-Related Document (other than any Letter of Credit).
(g) The Issuing Bank will also deliver to the appropriate Agent,
concurrently or promptly following its delivery of a Letter of Credit, or
amendment to or renewal of a Letter of Credit, to an advising bank or a
beneficiary, a true and complete copy of each such Letter of Credit or
amendment to or renewal of a Letter of Credit.
III.3 Risk Participations, Drawings and Reimbursements.
(a) Immediately upon the Issuance of each Letter of Credit each
applicable Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the Issuing Bank a participation
in such Letter of Credit and each drawing thereunder in an amount equal to
the product of (i) the Commitment Percentage of such Lender, times (ii) the
maximum amount available to be drawn under such Letter of Credit and the
amount of such drawing, respectively. Only International Lenders shall
participate in International Letters of Credit and only U.S. Lenders shall
participate in any U.S. Letters of Credit. For purposes of Section 2.1,
each Issuance of a Letter of Credit shall be deemed to utilize the
Commitment of each Lender by an amount equal to the amount of such
participation.
(b) In the event of any request for a drawing under a Letter of Credit
by the beneficiary or transferee thereof, the Issuing Bank will promptly
notify the Borrowers' Representative. The appropriate Borrower then shall
reimburse the Issuing Bank prior to 12:00 noon (Atlanta time) for U.S.
Letters of Credit, and by 12:00 noon (London time) for International
Letters of Credit on each date that any amount is Paid by the Issuing Bank
under any Letter of Credit (each such date, an "Honor Date"), in an amount
equal to the amount so paid by the Issuing Bank. In the event a Borrower
fails to reimburse the Issuing Bank for the full amount of any drawing
under any Letter of Credit by 12:00 noon (Atlanta time), for U.S. Letters
of Credit, and by 12:00 noon (London time) for International Letters of
Credit on the Honor Date, the Issuing Bank will promptly notify the
appropriate Agent and such Agent will promptly notify each affected Lender
thereof, and such Borrower shall be deemed to have requested that Revolving
Dollar Loans or, with respect to International Letters of Credit, Revolving
Pound Loans, be made by the affected Lenders to be disbursed on the Honor
Date under such Letter of Credit. Any notice given by the Issuing Bank or
the Agent pursuant to this Subsection 3.3(b) may be oral if immediately
confirmed in writing (including by facsimile); provided that the lack of
such an immediate confirmation shall not affect the conclusiveness or
binding effect of such notice.
(c) Each Lender shall upon any notice pursuant to Subsection 3.3(b)
make available to the appropriate Agent for the account of the relevant
Issuing Bank an amount in Dollars or Pounds, as applicable, and in
immediately available funds equal to its Commitment Percentage of the
amount of the drawing, whereupon the participating Lenders shall each be
deemed to have made a Loan consisting of a Revolving Dollar Loan (or, in
the case of International Letters of Credit, a Revolving Pound Loan) to the
Borrower for whose account such Letter of Credit was issued in that amount.
If any Lender so notified fails to make available to the appropriate Agent
for the account of the Issuing Bank the amount of such Lender's Commitment
Percentage of the amount of the drawing by no later than 3:00 p.m. (Atlanta
time) for U.S. Letters of Credit, and not later than 3:00 p.m. (London
time) for International Letters of Credit on the Honor Date, then interest
shall accrue on such Lender's obligation to make such payment, from the
Honor Date to the date such Lender makes such payment, at a rate per annum
equal to the Federal Funds Rate in effect from time to time during such
period. The appropriate Agent will promptly give notice of the occurrence
of the Honor Date, but failure of such Agent to give any such notice on the
Honor Date or in sufficient time to enable any Lender to effect such
payment on such date shall not relieve such Lender from its obligations
under this Section 3.3.
(d) Each Lender's obligation in accordance with this Agreement to make
the Loans, as contemplated by this Section 3.3, as a result of a drawing
under a Letter of Credit, shall be absolute and unconditional and without
recourse to the Issuing Bank and shall not be affected by any circumstance,
including (i) any set-off, counterclaim, recoupment, defense or other right
which such Lender may have against the Issuing Bank, either Borrower or any
other Person for any reason whatsoever; (ii) the occurrence or continuance
of a Default, an Event of Default or a Material Adverse Effect; or (iii)
any other circumstance, happening or event whatsoever, whether or not
similar to any of the foregoing.
III.4 Repayment of Participations in Letters of Credit.
(a) Upon (and only upon) receipt by the appropriate Agent for the
account of the Issuing Bank of immediately available funds from the
Borrowers (i) in reimbursement of any payment made by the Issuing Bank
under the Letter of Credit with respect to which any Lender has paid the
Agent for the account of the Issuing Bank for such Lender's participation
in the Letter of Credit pursuant to Section 3.3 or (ii) in payment of
interest thereon, the Agent will pay to each Lender, in the same funds as
those received by the Agent for the account of the Issuing Bank, the amount
of such Lender's pro rata share of such funds (determined in accordance
with its Commitment Percentage), and the Issuing Bank shall receive the
amount of the pro rata share of such funds of any Lender that did not so
pay the Agent for the account of the Issuing Bank.
(b) If the appropriate Agent or the Issuing Bank is required at any
time to return to either Borrower, or to a trustee, receiver, liquidator,
custodian, or any official in any Insolvency Proceeding, any portion of the
payments made by either Borrower to such Agent for the account of the
Issuing Bank pursuant to Subsection 3.4(a) in reimbursement of a payment
made under the Letter of Credit or interest or fee thereon, each Lender
shall, on demand of such Agent, forthwith return to such Agent or the
Issuing Bank the amount of its pro rata share of any amounts so returned by
the Agent or the Issuing Bank plus interest thereon from the date such
demand is made to the date such amounts are returned by such Lender to such
Agent or the Issuing Bank, at a rate per annum equal to the Federal Funds
Rate in effect from time to time.
III.5 Role of the Issuing Bank.
(a) Each Lender and each Borrower agrees that, in paying any drawing
under a Letter of Credit, the Issuing Bank shall not have any
responsibility to obtain any document (other than any sight draft,
documents and certificates expressly required by the Letter of Credit) or
to ascertain or inquire as to the validity or accuracy of any such document
or the authority of the Person executing or delivering any such document.
(b) No Agent-Related Person nor any of the respective correspondents,
participants or assignees of any Issuing Bank shall be liable to any Lender
for: (i) any action taken or omitted in connection herewith at the request
or with the approval of the Lenders (including the Majority Lenders, as
applicable); (ii) any action taken or omitted in the absence of gross
negligence or willful misconduct as determined by a final non-appealable
order of a court of competent jurisdiction; or (iii) the due execution,
effectiveness, validity or enforceability of any L/C-Related Document.
(c) Each Borrower hereby assumes all risks of the acts or omissions of
any beneficiary or transferee with respect to its use of any Letter of
Credit; provided, however, that this assumption is not intended to, and
shall not, preclude such Borrower's pursuing such rights and remedies as it
may have against the beneficiary or transferee at law or under any other
agreement. No Agent-Related Person, nor any of the respective
correspondents, participants or assignees of any Issuing Bank, shall be
liable or responsible for any of the matters described in clauses (i)
through (vii) of Section 3.6; provided, however, anything in such clauses
to the contrary notwithstanding, that such Borrower may have a claim
against the Issuing Bank, and the Issuing Bank may be liable to such
Borrower, to the extent, but only to the extent, of any direct, as opposed
to consequential or exemplary, damages suffered by such Borrower which such
Borrower proves were caused by the Issuing Bank's willful misconduct or
gross negligence as determined by a final non-appealable order of a court
of competent jurisdiction. In furtherance and not in limitation of the
foregoing: (i) the Issuing Bank may accept documents that appear on their
face to be in order, without responsibility for further investigation,
regardless of any notice or information to the contrary; and (ii) the
Issuing Bank shall not be responsible for the validity or sufficiency of
any instrument transferring or assigning or purporting to transfer or
assign a Letter of Credit or the rights or benefits thereunder or proceeds
thereof, in whole or in part, which may prove to be invalid or ineffective
for any reason.
III.6 Obligations Absolute. The obligations of each Borrowers under
this Agreement and any L/C-Related Document to reimburse the Issuing Bank
for a drawing under a Letter of Credit issued for its account, and to repay
any drawing under any such Letter of Credit converted into Loans, shall be
unconditional and irrevocable, and shall be paid strictly in accordance
with the terms of this Agreement and each such other L/C-Related Document
under all circumstances, including the following: (i) any lack of validity
or enforceability of this Agreement or any L/C-Related Document; (ii) any
change in the time, manner or place of payment of, or in any other term of,
all or any of the obligations of either Borrower in respect of any Letter
of Credit or any other amendment or waiver of or any consent to departure
from all or any of the L/C-Related Documents; (iii) the existence of any
claim, set-off, defense or other right that either Borrower may have at any
time against any beneficiary or any transferee of any Letter of Credit (or
any Person for whom any such beneficiary or any such transferee may be
acting), the Issuing Bank or any other Person, whether in connection with
this Agreement, the transactions contemplated hereby or by the L/C-Related
Documents or any unrelated transaction; (iv) any draft, demand, certificate
or other document presented under any Letter of Credit proving to be forged
or fraudulent (other than by an action of any of the Lenders or the Issuing
Bank or any of their employees), or invalid or insufficient in any respect
or any statement therein being untrue or inaccurate in any respect; or any
loss or delay in the transmission or otherwise of any document required in
order to make a drawing under any Letter of Credit; (v) any payment by the
Issuing Bank under any Letter of Credit against presentation of a draft or
certificate that does not strictly comply with the terms of any Letter of
Credit; (vi) any payment made by the Issuing Bank under any Letter of
Credit to any Person purporting to be a trustee in bankruptcy,
debtor-in-possession, assignee for the benefit of creditors, liquidator,
receiver or other representative of or successor to any beneficiary or any
transferee of any Letter of Credit, including any arising in connection
with any Insolvency Proceeding; (vii) any exchange, release or
non-perfection of any Collateral, or any release or amendment or waiver of
or consent to departure from any other guarantee, for all or any of the
obligations of either Borrower in respect of any Letter of Credit; or
(viii) any other circumstance or happening whatsoever, whether or not
similar to any of the foregoing, including any other circumstance that
might otherwise constitute a defense available to, or a discharge of,
either Borrower or any Obligor.
III.7 Cash Collateral Pledge. Upon (i) the request of the appropriate
Agent, if, as of the Maturity Date, any Letters of Credit may for any
reason remain outstanding and partially or wholly undrawn, or (ii) the
occurrence of the circumstances described in Subsection 2.9(a) requiring
the Borrowers to Cash Collateralize Letters of Credit, then, the Borrowers
shall immediately Cash Collateralize the L/C Obligations in an amount equal
to such L/C Obligations.
III.8 Letter of Credit Fees.
(a) The Borrowers shall pay to the appropriate Agent for the account
of each of the Lenders a letter of credit fee with respect to the Letters
of Credit equal to product of the Applicable Percentage times the average
daily maximum available to be drawn under the outstanding Letters of
Credit, computed on a monthly basis in arrears on the last Business Day of
each month based upon Letters of Credit outstanding for that month as
calculated by such Agent; provided, however, only International Lenders
will receive such fee with respect to International Letters of Credit, and
only U.S. Lenders will receive such fee with respect to any U.S. Letters of
Credit. With respect to International Letters of Credit issued in
Alternative Currencies, such fee shall be based on the Equivalent Amounts
thereof in Pounds. Such letter of credit fees shall be due and payable
monthly in arrears on the last Business Day of each calendar month during
which Letters of Credit are outstanding, commencing on the first such date
to occur after the Agreement Date, through the Maturity Date (or such later
date upon which the outstanding Letters of Credit shall expire), with the
final payment to be made on the Maturity Date (or such later expiration
date).
(b) The Borrowers shall pay to the Issuing Bank from time to time on
demand the normal issuance, presentation, amendment and other processing
fees, and other standard costs and charges, of the Issuing Bank relating to
letters of credit as from time to time in effect plus any legal costs
reasonable in amount and actually incurred. Such charges shall include,
without limitation, initially, a minimum issuance charge per annum of One
Hundred Dollars ($100) for U.S. Letters of Credit and a minimum charge of
One Hundred Fifty Pounds (150) for International Letters of Credit, due
and payable upon issuance. The Issuing Bank will, to the extent
practicable, notify the Borrowers' Representative of all such charges (or
any changes therein) before each affected Letter of Credit is issued,
amended, renewed or continued.
III.9 Uniform Customs and Practice. The Uniform Customs and Practice
for Documentary Credits as published by the International Chamber of
Commerce most recently at the time of issuance of any Letter of Credit
shall apply to all Letters of Credit, and be deemed incorporated by
reference therein.
ARTICLE IV.
TAXES, YIELD PROTECTION AND ILLEGALITY
IV.1 Taxes.
(a) Any and all payments by either Borrower to each Obligee under this
Agreement and any other Loan Document shall be made free and clear of, and
without deduction or withholding for, any Taxes. In addition, the Borrowers
shall pay all Other Taxes.
(b) If either Borrower shall be required by law to deduct or withhold
any Taxes, Other Taxes or Further Taxes from or in respect of any sum
payable hereunder to any Obligee, then:
(i) the sum payable shall be increased as necessary so that, after
making all required deductions and withholdings (including deductions and
withholdings applicable to additional sums payable under this Section),
such Obligee receives and retains an amount equal to the sum it would have
received and retained had no such deductions or withholdings been made;
(ii) such Borrower shall make such deductions and withholdings;
(iii) such Borrower shall pay the full amount deducted or withheld to
the relevant taxing authority or other authority in accordance with
applicable law; and
(iv) without duplication, such Borrower shall also pay to each
Obligee, at the time interest is paid, Further Taxes in the amount that
such Obligee specifies as necessary to preserve the after-tax yield that
such Obligee would have received if such Taxes, Other Taxes or Further
Taxes had not been imposed.
(c) Each Borrower agrees to indemnify and hold harmless each affected
Obligee for the full amount of (i) Taxes, (ii) Other Taxes, and (iii)
Further Taxes in the amount that such Obligee specifies as necessary to
preserve, after taking into account any increases in the sums paid by the
Borrowers pursuant to Section 4.1(b), the after-tax yield that such Obligee
would have received if such Taxes, Other Taxes or Further Taxes had not
been imposed and deducted or withheld by such Borrower, and any liability
(including penalties, interest, additions to tax and expenses) arising
therefrom or with respect thereto as a result of such Borrower's failure to
timely remit payment following such Obligee's demand therefor, whether or
not such Taxes, Other Taxes or Further Taxes were correctly or legally
asserted. Payment under this indemnification shall be made within thirty
(30) days after the date that such Obligee makes written demand therefor
upon a Borrower. No Obligee shall be indemnified, however, pursuant hereto
for any Taxes, Other Taxes or Further Taxes incurred or accrued more than
ninety (90) days prior to the date on which such demand is made.
(d) Within thirty (30) days after the date of any payment by either
Borrower of Taxes, Other Taxes or Further Taxes, such Borrower shall
furnish to each affected Obligee the original or a certified copy of a
receipt evidencing payment thereof, or other evidence of payment
satisfactory to such Obligee.
(e) If either Borrower is required to pay any amount to any Obligee
pursuant to Subsection (b) or (c) of this Section, then such Obligee shall
use reasonable efforts (consistent with legal and regulatory restrictions)
to change the jurisdiction of its Lending Office (if appropriate) so as to
eliminate any such additional payment by such Borrower which may thereafter
accrue, if such change in the sole judgment of such Obligee, is not
otherwise disadvantageous to such Obligee.
(f) If following any deduction or withholding as is referred to in
clause 4.1(b) from any payment by either Borrower and the receipt by any
Obligee of the payments by either Borrower required pursuant to clauses
4.1(b) or 4.1(c), such Obligee shall receive or be granted a credit against
or remission for any Taxes payable by it or shall receive a repayment of
any Taxes, Other Taxes or Further Taxes so withheld, then, such Obligee
shall, subject to the relevant Borrower having made any increased payment
in accordance with clause 4.1(b) or any payment under clause 4.1(c),
reimburse the relevant Borrower with such amount as such Obligee shall in
its absolute discretion certify to be the proportion of such credit,
remission or repayment as will leave such Obligee (after such
reimbursement) in no worse position than it would have been in had there
been no such deduction or withholding from the payment by such Borrower as
aforesaid. Such reimbursement shall be made forthwith upon the relevant
Obligee certifying that the amount of such credit or remission has been
received by it; provided that such Obligee shall not unreasonably delay
before so certifying. Nothing contained in this Agreement shall oblige the
relevant Obligee to disclose to the Borrowers or any other Person any
information regarding its tax affairs or tax computations or interfere with
the right of the relevant Obligee to arrange its tax affairs in whatever
manner it thinks fit and, in particular, no Obligee shall be under any
obligation to claim relief from its corporate profits, tax liability or
similar tax liabilities in respect of such tax in priority to any other
claims, reliefs, credits or deductions available to it but subject thereto
each shall use all reasonable efforts to obtain any such available credit,
remission or repayment.
(g) Each Lender shall use its reasonable efforts (consistent with its
internal policies and legal and regulatory restrictions) to select a
jurisdiction for its applicable lending office or change the jurisdiction
of its applicable lending office, as the case may be, so as to avoid the
imposition of any Taxes, Other Taxes or Further Taxes or to eliminate the
amount of any such additional amounts which may thereafter accrue; provided
that no such selection or change of the jurisdiction for its applicable
lending office shall be made if, in the reasonable judgment of such Lender,
such selection or change would be disadvantageous to such Lender.
(h) Notwithstanding any other provision of this Section 4.1, no
Obligor shall be obliged to increase the amount of any payment to any
Obligee pursuant hereto if the requirement to make the relevant deduction
or withholding arises as a consequence of (i) that such Obligee not being a
bank within the meaning of Section 840(A) of the Income and Corporation Tax
Act of 1988 of the United Kingdom; or (ii) that such Obligor failing to
bring all interest received by it hereunder into account as a trading
receipt of a bona fide banking business in the United Kingdom.
IV.2 Illegality.
(a) If any Lender reasonably determines that the introduction of any
Requirement of Law, or any change in any Requirement of Law, or in the
interpretation or administration of any Requirement of Law, has made it
unlawful, or that any central bank or other Governmental Authority has
asserted that it is unlawful, for any Lender or its applicable Lending
Office to make LIBOR Daily Rate Loans or LIBOR Rate Loans, or both, then,
on notice thereof by the Lender to the Borrowers' Representative through
the appropriate Agent, any obligation of that Lender to make LIBOR Daily
Rate Loans or LIBOR Rate Loans, or both, as the case may be, shall be
suspended until the Lender notifies such Agent and the Borrowers'
Representative that the circumstances giving rise to such determination no
longer exist.
(b) If any Lender reasonably determines that it is unlawful to
maintain any LIBOR Daily Rate Loan or LIBOR Rate Loan, the Borrower so
affected shall, upon the receipt by the Borrowers' Representative of notice
of such fact and demand from such Lender (with a copy to the appropriate
Agent), prepay in full such LIBOR Daily Rate Loan or LIBOR Rate Loan of
that Lender then outstanding, together with interest accrued thereon and
amounts required under Section 4.4, either on the last day of the Interest
Period thereof, if the Lender may lawfully continue to maintain such LIBOR
Rate Loan or LIBOR Daily Rate Loan to such day, or immediately, if the
Lender may not lawfully continue to maintain such LIBOR Rate Loanor LIBOR
Daily Rate Loan. If a Borrower is required to so prepay any LIBOR Rate Loan
or LIBOR Daily Rate Loan, then concurrently with such prepayment, the
Borrower shall borrow from the affected Lender, in the amount of such
repayment, a Base Rate Loan, if such Loan is a Revolving Dollar Loan, or an
Overdraft Pound Loan, if such Loan is a Revolving Pound Loan.
(c) If the obligation of any Lender to make or maintain LIBOR Daily
Rate Loans or LIBOR Rate Loans has been so terminated or suspended, the
Borrowers' Representative may elect, by giving notice to the Lender through
the appropriate Agent that all Loans which would otherwise be made by the
Lender as LIBOR Daily Rate Loans or LIBOR Rate Loans shall be made instead
as a Base Rate Loan, if such Loan is a Revolving Dollar Loan, or an
Overdraft Pound Loan, if such Loan is a Revolving Pound Loan.
IV.3 Increased Costs and Reduction of Return.
(a) If any Lender reasonably determines that, due to either (i) the
introduction of or any change (other than any change by way of imposition
of or increase in reserve requirements included in the calculation of the
LIBOR Rate or in respect of the assessment rate payable by any Lender to
the FDIC for insuring U.S. deposits) in or in the interpretation of any law
or regulation or (ii) the compliance by that Lender with any guideline or
request from any central bank or other Governmental Authority (whether or
not having the force of law, but which lenders in such jurisdiction
generally recognize as having the force of law), there shall be any
increase in the cost to such Lender of agreeing to make or making, funding
or maintaining any LIBOR Rate Loans or participating in Letters of Credit,
or, in the case of the Issuing Bank, any increase in the cost to the
Issuing Bank of agreeing to issue, issuing or maintaining any Letter of
Credit or of agreeing to make or making, funding or maintaining any unpaid
drawing under any Letter of Credit, then the Borrowers shall be liable for,
and shall from time to time, upon demand on the Borrowers' Representative
(with a copy of such demand to be sent to the appropriate Agent), pay to
such Agent for the account of such Lender, additional amounts as are
sufficient to compensate such Lender for such increased costs.
(b) If any Lender, the Overdraft Bank or the Issuing Bank shall have
reasonably determined that (i) the introduction of any Capital Adequacy
Regulation, (ii) any change in any Capital Adequacy Regulation, (iii) any
change in the interpretation or administration of any Capital Adequacy
Regulation by any central bank or other Governmental Authority charged with
the interpretation or administration thereof, or (iv) compliance by such
Lender, the Overdraft Bank or the Issuing Bank (or its Lending Office) or
any corporation controlling such Lender, the Overdraft Bank or the Issuing
Bank with any Capital Adequacy Regulation, affects or would affect the
amount of capital required or expected to be maintained by such Lender or
the Issuing Bank or any corporation controlling such Lender or the Issuing
Bank and (taking into consideration such Lender's, the Overdraft Bank's or
the Issuing Bank's, as applicable, or such corporation's policies with
respect to capital adequacy and such Lender's, the Overdraft Bank or the
Issuing Bank's, as applicable, desired return on capital) determines that
the amount of such capital is increased as a consequence of its Commitment,
L/C Commitment, loans, credits or obligations under this Agreement, then,
upon demand of such Lender, the Overdraft Bank or the Issuing Bank to the
Borrowers' Representative through the Agent, the Borrowers shall pay to
such Lender, from time to time as specified by such Lender, the Overdraft
Bank's or the Issuing Bank, as applicable, additional amounts sufficient to
compensate the Lender, the Overdraft Bank or the Issuing Bank for such
increase.
IV.4 Funding Losses. Each Borrower shall reimburse each Lender and
hold each Lender harmless from any loss or expense which such Lender may
sustain or incur as a consequence of:
(a) the failure of such Borrower to make on a timely basis any payment
of principal of any LIBOR Rate Loan;
(b) the failure of such Borrower to borrow, continue or convert a Loan
after the Borrowers' Representative has given (or is deemed to have given)
a Notice of Borrowing or a Notice of Conversion/ Continuation;
(c) the failure of such Borrower to make any prepayment in accordance
with any notice delivered under Section 2.9; or
(d) the prepayment (including pursuant to Sections 2.7, 2.8 or 2.9) or
other payment (including after acceleration thereof) of an LIBOR Rate Loan
on a day that is not the last day of the relevant Interest Period or the
conversion pursuant to Section 2.5 of any LIBOR Rate Loan to another Type
of Loan on a day that is not the last day of the respective Interest
Period; including any such loss or expense arising from the liquidation or
reemployment of funds obtained by it to maintain its LIBOR Rate Loans
hereunder or from fees payable to terminate the deposits from which such
funds were obtained or from charges relating to any LIBOR Rate Loans;
including any such loss or expense arising from the liquidation or
reemployment of funds obtained by it to maintain its LIBOR Rate Loans or
from fees payable to terminate the deposits from which such funds were
obtained. For purposes of calculating amounts payable by the Borrowers to
the Lenders under this Section and under Section 4.3 (a), each LIBOR Rate
Loan made by a Lender (and each related reserve, special deposit or similar
requirement) shall be conclusively deemed to have been funded at the LIBOR
Rate used in determining the LIBOR Rate for such LIBOR Rate Loan by a
matching deposit or other borrowing in the interbank eurodollar market for
a comparable amount and for a comparable period, whether or not such LIBOR
Rate Loan is in fact so funded.
IV.5 Inability to Determine Rates. If the appropriate Agent determines
that for any reason adequate and reasonable means do not exist for
determining the LIBOR Rate for any requested Interest Period with respect
to a proposed LIBOR Rate Loan, or that the LIBOR Rate applicable pursuant
to Section 2.11(a) for any requested Interest Period with respect to a
proposed LIBOR Rate Loan does not adequately and fairly reflect the cost to
the Lenders of funding such Loan, such Agent will promptly so notify the
Borrowers' Representative and each Lender. Thereafter, the obligation of
the affected Lenders to make or maintain LIBOR Rate Loans hereunder shall
be suspended until such Agent upon the instruction of the affected Lenders
revokes such notice in writing. Upon receipt of such notice, the Borrowers'
Representative may revoke any Notice of Borrowing or Notice of
Conversion/Continuation then submitted by it. If the Borrowers'
Representative does not revoke such Notice, the affected Lenders shall
make, convert or continue the Loans, as proposed by the Borrowers'
Representative, in the amount specified in the applicable notice submitted
by the Borrowers' Representative, but such Loans shall be made, converted
or continued as Base Rate Loans, in the case of Revolving Dollars Loans,
and Overdraft Pound Loans, in the case of Revolving Pound Loans.
IV.6 Certificates of Lenders. Any Lender claiming reimbursement or
compensation under this Article IV shall deliver to the Borrowers'
Representative (with a copy to the U.S. Agent) a certificate setting forth
in reasonable detail the amount payable to such Lender hereunder and such
certificate shall be prima facie evidence of the amounts due thereunder.
IV.7 Substitution of Lenders. Upon the receipt by the Borrower's
Representative from any Lender (an "Affected Lender") of a claim for
compensation under Section 4.3, the Borrowers may: (i) request the Affected
Bank to use its best efforts to obtain a replacement bank or financial
institution satisfactory to the Borrower and to the appropriate Agent (a
"Replacement Lender") to acquire and assume all or a ratable part of all of
such Affected Bank's Loans and Commitments, and if such Affected Lenders or
any Affiliate thereof is a Swap Provider, all Specified Swap Contracts of
such Affected Lender and Affiliate; (ii) request one more of the other
Lenders to acquire and assume all or part of such Affected Lender's Loans
and Commitment; or (iii) designate a Replacement Lender. Any such
designation of a Replacement Bank under clause (i) or (iii) shall be
subject to the prior written consent of the U.S. Agent (which consent shall
not be unreasonably withheld).
IV.8 Survival. The agreements and obligations of the Borrowers in this
Article IV shall survive the payment of all other Obligations.
ARTICLE V.
CONDITIONS PRECEDENT
V.1 Conditions of Initial Loans. The obligation of the Lenders to
undertake the Commitments and to make the initial Loan hereunder on the
Agreement Date, the obligation of any Issuing Bank to issue the initial
Letter of Credit and the obligation of the Overdraft Bank to provide the
Overdraft Facility is subject to the condition that, unless otherwise
waived, suspended or deferred by written agreement of the U.S. Agent on the
Agreement Date, the appropriate Agent shall have received on or before the
Agreement Date all of the following, in such form and substance as shall be
satisfactory to such Agent:
(1) This duly executed Agreement;
(2) A duly executed Note to the order of each Lender in the amount of
such Lender's Commitment Percentage;
(3) A loan certificate signed by an officer of each Obligor in
substantially the form of Exhibit M attached hereto, including a
certificate of incumbency with respect to at least two executive officers
of such Person, together with appropriate attachments which shall include,
without limitation, the following: (A) a copy of the Certificate of
Incorporation (or the foreign equivalent thereof, if any exists) of such
Person, certified (if such Person is organized under the laws of a United
States jurisdiction) to be true, complete and correct by the Secretary of
State for the jurisdiction of its incorporation, (B) a true, complete and
correct copy of the By-Laws of such Obligor (or the foreign equivalent
thereof, if any exists), (C) a true, complete and correct copy of the
resolutions of such Obligor authorizing the borrowing hereunder and the
execution, delivery and performance by such Obligor of the Loan Documents
(or the foreign equivalent thereof, if any exists), (D) certificates of
good standing (or the foreign equivalent thereof, if any exists) from such
Obligor's jurisdiction of incorporation, (E) with respect to any U.S.
Obligors, copies of certain employment contracts for key management level
employees of such Obligor, and (F) a copy of any shareholders' or voting
trust or other similar agreement among the shareholders of such Obligor
certified to be true, complete and correct by a Responsible Officer of such
Obligor;
(4) Security Agreements, duly executed by each Obligor, as applicable;
(5) Pledge Agreements, duly executed by each Obligor, in respect of
any Material Subsidiary whose Capital Stock is owned by it, limited to
sixty-five percent (65%) of such Capital Stock, in the case of
International Subsidiaries, as applicable;
(6) A Debenture, duly executed by the International Borrower;
(7) Opinions of counsel to the Obligors, each in form and substance
satisfactory to the Agent and its counsel;
(8) Payment of all documentary stamp, intangible taxes or recording
fees payable in connection with the recording of any of the Loan Documents
including such sums, if any, due in connection with any future Loans;
(9) Lien search results (or the equivalent thereof) with respect to
each U.S. Obligor and the International Borrower from all appropriate
jurisdictions and filing offices;
(10) Original Uniform Commercial Code financing statements (or the
foreign equivalent thereof) signed by each U.S. Obligor as debtor and
naming the respective Collateral Agent as secured party to be filed in all
appropriate jurisdictions, in such form as shall be satisfactory to the
U.S. Agent;
(11) Funds sufficient to pay any filing or recording tax or fee in
connection with any and all UCC-1 financing statements and any Mortgages;
(12) With respect to any Mortgaged Property, an ALTA Form B (or other
form acceptable to the Agent mortgagee policy of title insurance or a
binder issued by a title insurance company satisfactory to the Agent
insuring (or undertaking to insure, in the case of a binder) that the
Mortgage creates and constitutes a valid first Lien against the Mortgaged
Property in favor of the U.S. Agent, subject only to exceptions acceptable
to the U.S. Agent, with such endorsements and affirmative insurance as the
U.S. Agent may reasonably request;
(13) Evidence that BOAFSB, as Collateral Agent, has been named as loss
payee under all policies of casualty insurance, as its interests as
Collateral Agent may appear, and as additional insured under all policies
of liability insurance (excluding workers' compensation insurance),
required by the Mortgage;
(14) Evidence that any Mortgaged Property is not in a "special flood
hazard area" according to federal guidelines or, if it is, and flood
insurance is available, that such insurance has been obtained;
(15) Current ALTA surveys and surveyor's certification as to all real
property and all land covered by a lease in respect of which there is
delivered a Mortgage, or as may be reasonably required by the Agent, each
in form and substance satisfactory to the U.S. Agent;
(16) Appraisals of each Mortgaged Property, in such form, from such
appraisers, and using such methodologies as shall be acceptable to the U.S.
(17) Proof of payment of all title insurance premiums, documentary
stamp or intangible taxes, recording fees and mortgage taxes payable in
connection with the recording of any Mortgage or the issuance of the title
insurance policies (whether due on the Closing Date or in the future)
including sums due in connection with any future advances;
(18) Such consents, estoppels, subordination agreements and other
documents and instruments executed by landlords, tenants and other Persons
party to material contracts relating to any Collateral as to which the U.S.
Agent shall be granted a Lien for the benefit of the Lenders and the
Issuing Bank, as may be reasonably requested by the U.S. Agent; and
(19) Evidence that all other actions necessary or, in the opinion of
the Agent, desirable to perfect and protect the first priority Lien created
by the Collateral Documents, and to enhance the Agent's ability to preserve
and protect its interests in and access to the Collateral, have been taken;
(20) Standard lenders' payable endorsements with respect to the
insurance policies or other instruments or documents evidencing insurance
coverage on the properties of the Company in accordance with Section 7.7.
(21) A duly executed Borrowing Base Certificate dated as of the
Agreement Date;
(22) Unaudited consolidating and consolidated financial statements for
LCGI and its Subsidiaries for the nine (9) month period ending September
30, 1997, together with LCGI's 10-Q report to the SEC as of such fiscal
quarter end;
(23) Copies of certificates of insurance, loss payee endorsements (or
their foreign equivalent, if any), with respect to the insurance policies
covering the assets (other than real property) of Borrowers and otherwise
meeting the requirements of Section 7.6 hereof;
(24) Copies of any pay-off letters, termination statements, canceled
mortgages and the like required by the Agent or the Lenders in connection
with the removal of any Liens (other than Permitted Liens) against the
assets of the Borrowers (including, but not limited to, the release of all
Liens of SunTrust Bank, Atlanta against the assets of the Borrowers and a
letter from Barclays Bank, PLC addressed to LCGI, as Borrowers'
Representatives, and stating the agreement of Barclays Bank PLC to release
its Liens against the assets of Xxxx upon receipt of a Letter of Credit);
(25) Payment of all fees and expenses payable to the Agent in
connection with the execution and delivery of this Agreement, including,
without limitation, fees and expenses of counsel to the Agent;
(26) A certificate, to be substantially in the form of Exhibit M
attached hereto, signed by a Responsible Officer of LCGI, dated as of the
Agreement Date, stating that: (a) the representations and warranties
contained in Article VI are true and correct on and as of such date; (b) no
Default or Event of Default exists or would result from the initial
Borrowing on the Agreement Date; and (c) there has not occurred since
November 30, 1997, any event or circumstance that has resulted or could
reasonably be expected to result in a Material Adverse Effect; and
(27) Such other approvals, opinions, documents or materials as the
Agent, any Issuing Bank or any Lender may reasonably request.
V.2 Conditions to All Credit Extensions. The obligation of the Lenders
to make each Loan, including the initial Loan hereunder, or to continue or
convert any Loan under Section 2.4, and the obligation of the Issuing Bank
to Issue any Letter of Credit (including the initial Letter of Credit) is
subject to the satisfaction of the following conditions precedent on the
relevant Borrowing Date, Conversion Date, Continuation Date or Issuance
Date:
(a) The appropriate Agent shall have received (with, in the case of
the initial Loan only, a copy for each affected Lender) a Notice of
Borrowing or a Notice of Conversion/Continuation, as applicable or in the
case of any Issuance of any Letter of Credit, the Issuing Bank and the
appropriate Agent shall have received an L/C Application or L/C Amendment
Application, as required under Section 3.2;
(b) The representations and warranties in Article VI shall be true and
correct in all material respects, and shall be deemed to be made, at and as
of the Agreement Date and the date of the Borrowing of each Loan which will
increase the principal amount of the Loans outstanding, or upon the
issuance of each Letter of Credit hereunder, except to the extent such
representations and warranties (a) relate expressly to an earlier date, (b)
were previously fulfilled in accordance with the terms hereof and to the
extent subsequently inapplicable, or (c) are modified as a result of
activities of the Borrowers or changes in circumstances, in any case as
permitted hereunder or as consented to or waived in writing in accordance
with Section 12.1 hereof, and all representations and warranties made under
this Agreement shall survive, and not be waived by, the execution hereof by
the Agent, the Issuing Banks, and the Lenders, or by the making of any Loan
or the issuance of any Letter of Credit under this Agreement.
(c) No Default, Event of Default or Borrowing Base Deficiency shall
exist or shall result from such Borrowing or continuation or conversion or
Issuance.
Each Notice of Borrowing, Notice of Conversion/Continuation and L/C
Application or L/C Amendment Application submitted by the Borrowers'
Representative hereunder shall constitute a representation and warranty by
the Borrowers hereunder, as of the date of each such notice and as of each
Borrowing Date, Conversion/Continuation Date, or Issuance Date, as
applicable, that the conditions in this Section 5.2 are satisfied.
ARTICLE VI.
REPRESENTATIONS AND WARRANTIES
Each Obligor represents and warrants to Obligee that:
VI.1 Corporate Existence and Power. Such Obligor:rate Existence and
Power
(a) is a corporation duly organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation;
(b) has the power and authority and all governmental licenses,
authorizations, consents and approvals to own its assets, carry on its
business and to execute, deliver, and perform its obligations under the
Loan Documents;
(c) is duly qualified as a foreign corporation and in good standing
under the laws of each jurisdiction where its ownership, lease or operation
of property or the conduct of its business requires such qualification or
license and the failure to be so qualified would have a Material Adverse
Effect on such Borrower; and
(d) is in compliance with all material Requirements of Law.
VI.2 Corporate Authorization; No Contravention. The execution,
delivery and performance by each Obligor of this Agreement and each other
Loan Document, have been duly authorized by all necessary corporate action,
and do not and will not:
(a) contravene the terms of such Obligor's Organization Documents;
(b) conflict with or result in any material breach or contravention
of, or the creation of any material Lien under, any document evidencing any
Contractual Obligation to which any Obligor is a party or any order,
injunction, writ or decree of any Governmental Authority to which any
Obligor or any of its property is subject; or
(c) violate any Requirement of Law.
VI.3 Governmental Authorization. Except as disclosed on Schedule 6.3,
no approval, consent, exemption, authorization, or other action by, or
notice to, or filing with, any Governmental Authority (except for
recordings or filings in connection with the Liens granted to the Agent or
a Collateral Agent under the Collateral Documents) is necessary or required
in connection with the execution, delivery or performance by, or
enforcement against, any Obligor of the Agreement or any other Loan
Document.
VI.4 Binding Effect. This Agreement and each other Loan Document to
which such Obligor is a party constitute the legal, valid and binding
obligations of such Obligor enforceable against such Obligor in accordance
with their respective terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, or similar laws affecting the
enforcement of creditors' rights generally or by equitable principles
relating to enforceability.
VI.5 Litigation. Except as specifically disclosed in Schedule 6.5,
there are no actions, suits, proceedings, claims or disputes pending, or to
the knowledge of the Borrowers, threatened or contemplated, at law, in
equity, in arbitration or before any Governmental Authority, against any
Obligor, any Material Subsidiaries or any of their respective properties
that involve an amount in excess of the Material Amount and that is not
fully covered by insurance, and none of the matters disclosed on Schedule
6.5:
(a) purport to affect or pertain to this Agreement or any other Loan
Document, or any of the transactions contemplated hereby or thereby; or
(b) if determined adversely to such Obligor or any Subsidiary, would
reasonably be expected to have a Material Adverse Effect.
No injunction, writ, temporary restraining order or any order of any
nature has been issued by any court or other Governmental Authority
purporting to enjoin or restrain the execution, delivery or performance of
this Agreement or any other Loan Document, or directing that the
transactions provided for herein or therein not be consummated as herein or
therein provided.
VI.6 No Default. No Default or Event of Default exists or would result
from the incurring of any Obligations by the Obligors or from the grant or
perfection of the Liens of the Obligees on the Collateral. Neither any
Obligor nor any Material Subsidiary is in default under or with respect to
any Contractual Obligation in any respect (including the granting or
perfection of Liens on the Collateral) which, individually or together with
all such defaults, could reasonably be expected to result in liability to
LCGI or such Subsidiary in excess of the Material Amount.
VI.7 ERISA Compliance. Except as specifically disclosed in Schedule
6.7:
(a) Each Plan is in compliance in all material respects with the
applicable provisions of ERISA, the Code and other federal or state law.
Each Plan which is intended to qualify under Section 401(a) of the Code has
received a favorable determination letter from the IRS and, to the
knowledge of the Borrowers, nothing has occurred which would cause the loss
of such qualification. Each Borrower and each ERISA Affiliate has made all
required contributions to any Plan subject to Section 412 of the Code, and
no application for a funding waiver or an extension of any amortization
period pursuant to Section 412 of the Code has been made with respect to
any Plan.
(b) There are no pending or, to the knowledge of the Obligors,
threatened claims, actions or lawsuits, or action by any Governmental
Authority, with respect to any Plan which has resulted or could reasonably
be expected to result in liability to LCGI or any Subsidiary in excess of
the Material Amount. There has been no prohibited transaction or violation
of the fiduciary responsibility rules with respect to any Plan which has
resulted or could reasonably be expected to result in liability to LCGI or
any Subsidiary in excess of the Material Amount.
(c) (i) No ERISA Event has occurred or is reasonably expected to
occur; (ii) no Pension Plan has any Unfunded Pension Liability; (iii)
neither any Obligor nor any ERISA Affiliate has incurred, or reasonably
expects to incur, any liability under Title IV of ERISA with respect to any
Pension Plan (other than premiums due and not delinquent under Section 4007
of ERISA); (iv) neither either Borrower nor any ERISA Affiliate has
incurred, or reasonably expects to incur, any liability (and no event has
occurred which, with the giving of notice under Section 4219 of ERISA,
would result in such liability) under Section 4201 or 4243 of ERISA with
respect to a Multiemployer Plan; and (v) neither either Borrower nor any
ERISA Affiliate has engaged in a transaction that could be subject to
Section 4069 or 4212(c) of ERISA.
VI.8 Use of Proceeds: Margin Regulations. The proceeds of the Loans
are to be used solely for the purposes set forth in and permitted by
Section 7.13 and Section 8.7. No Borrower is generally engaged in the
business of purchasing or selling Margin Stock or extending credit for the
purpose of purchasing or carrying Margin Stock.
VI.9 Title to Properties. Such Obligor and each of the Material
Subsidiaries have good record and marketable title in fee simple to, or
valid leasehold interests in, all real property necessary or used in the
ordinary conduct of their respective businesses, except for such defects in
title as could not, individually or in the aggregate, have a Material
Adverse Effect. As of the Agreement Date, the property of each Obligor and
the Material Subsidiaries is subject to no Liens (other than any being
released upon closing of the transactions contemplated herein), other than
Permitted Liens.
VI.10 Taxes. Except as disclosed on Schedule 6.10, each Obligor and
the Material Subsidiaries have filed all Federal and other tax returns and
reports required to be filed, and have paid all Federal and other taxes,
assessments, fees and other governmental charges levied or imposed upon
them or their properties, income or assets otherwise due and payable,
except those which are being contested in good faith by appropriate
proceedings and for which adequate reserves have been provided in
accordance with GAAP. There is no proposed tax assessment against any
Obligor or any Material Subsidiary that would, if made, result in liability
to such Obligor or any such Subsidiary in excess of the Material Amount.
The charges, accruals, and reserves on the books of LCGI and its
Subsidiaries in respect of taxes are, in the reasonable judgment of
Obligors, adequate. Except as disclosed on Schedule 6.10, neither any
Obligor nor any Material Subsidiary is presently being audited by, or
received notice of any future audit from, the Internal Revenue Service or
any other tax authority.
VI.I Financial Condition, Fiscal Year
(a) The financial statements of LCGI and its Subsidiaries most
recently delivered to the Agent: (i) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as
otherwise expressly noted therein (subject, in the case of interim
financial statements, to ordinary, good faith, year-end accounting
adjustments in accordance with GAAP); (ii) present fairly in all material
respects the financial condition of LCGI and its Subsidiaries as of the
date thereof and results of operations for the period covered thereby; and
(iii) show all material Indebtedness and other liabilities, direct or
contingent, of LCGI and its consolidated Subsidiaries as of the date
thereof;
(b) Since September 30, 1997, there has been no Material Adverse
Effect.
(c) The fiscal year of LCGI and each Material Subsidiary ends on (or
about) December 31.
VI.12 Environmental Matters. Except as disclosed in Schedule 6.12:
(a) the on-going operations of each Obligor and each of the Material
Subsidiaries comply in all respects with all material Environmental Laws,
except such non-compliance which would not (if enforced in accordance with
applicable law) result in liability in excess of Two Hundred Fifty Thousand
Dollars ($250,000), in the aggregate.
(b) each Obligor and each of the Material Subsidiaries have obtained
all material licenses, permits, authorizations and registrations required
under any Environmental Law ("Environmental Permits") and necessary for
their respective ordinary course operations, all such Environmental Permits
are in good standing, and each Obligor and each of the Material
Subsidiaries are in compliance with all material terms and conditions of
such Environmental Permits.
(c) neither any Obligor, nor any of the Material Subsidiaries, nor any
of its or their respective present property or operations, is subject to
any outstanding written order from or agreement with any Governmental
Authority, nor subject to any judicial or docketed administrative
proceeding, respecting any Environmental Law, Environmental Claim or
Hazardous Material.
(d) there are no Hazardous Materials or other conditions or
circumstances existing with respect to any property of each Obligor or any
Material Subsidiary, or arising from operations of such Obligor or any of
its Material Subsidiaries that would reasonably be expected to give rise to
Environmental Claims with a potential liability to each Obligor or any
Material Subsidiaries in excess of the Material Amount, in the aggregate,
for any such condition, circumstance or property. In addition (i) neither
any Obligor nor any Material Subsidiary has any underground storage tanks
(x) that are not properly registered or permitted under applicable
Environmental Laws, or (y) that are leaking or disposing of Hazardous
Materials off-site, and (ii) each Obligor and each of the Material
Subsidiaries have notified all of their employees of the existence, if any,
of any health hazard arising from the conditions of their employment and
have met all notification requirements under Title III of CERCLA and all
other Environmental Laws.
VI.13 Collateral Documents
(a) The provisions of each of the Collateral Documents are effective
to create in favor of the appropriate Collateral Agent for the benefit of
the Obligees, a legal, valid and enforceable first priority security
interest in all right, title and interest of such Obligor in the collateral
described therein; and financing statements have been filed in the offices
in all of the jurisdictions listed in the schedule to the Security
Agreement and each such Security Agreement has been filed in the U.S.
Patent and Trademark Office and the U.S. Copyright Office.
(b) Each Mortgage when delivered will be effective to grant to BOAFSB,
as Collateral Agent, for the benefit of the Obligees a legal, valid and
enforceable deed of trust/mortgage lien on all the right, title and
interest of the mortgagor under such Mortgage in the mortgaged property
described therein. When each such Mortgage is duly recorded in the offices
listed on the schedule to such Mortgage and the mortgage recording fees and
taxes in respect thereof are paid and compliance is otherwise had with the
formal requirements of state law applicable to the recording of real estate
mortgages generally, each such mortgaged property, subject to the
encumbrances and exceptions to title set forth therein and except as noted
in the title policies delivered to the Agent pursuant to Section 6.1, is
subject to a legal, valid, enforceable and perfected first priority deed of
trust; and when financing statements have been filed in the offices
specified in such Mortgage, such Mortgage also creates a legal, valid,
enforceable and perfected first lien on, and security interest in, all
right, title and interest of such Obligor under such Mortgage in all
personal property and fixtures which is covered by such Mortgage, subject
to no other Liens, except the encumbrances and exceptions to title set
forth therein and except as noted in the title policies delivered to
BOAFSB, as Collateral Agent pursuant to Section 3.1, and Permitted Liens.
(c) All representations and warranties of such Obligor and any of its
Material Subsidiaries party thereto contained in the Collateral Documents
are true and correct.
VI.14 Regulated Entities. No Obligor nor any Material Subsidiary is an
"Investment Company" within the meaning of the Investment Company Act of
1940. No Borrower is subject to regulation under the Public Utility Holding
Company Act of 1935, the Federal Power Act, the Interstate Commerce Act,
any state public utilities code, or any other Federal or state statute or
regulation limiting its ability to incur Indebtedness.
VI.15 No Burdensome Restrictions. No Obligor nor any Material
Subsidiary is a party to or bound by any Contractual Obligation, or subject
to any restriction in any Organization Document, or any Requirement of Law,
which could reasonably be expected to have a Material Adverse Effect.
VI.16 Business and Collateral Locations
(a) On the date of this Agreement the office where each Obligor keeps
its books and records concerning its Accounts and other Collateral, and
such Obligor's chief place of business and chief executive office, is
located at the respective address set forth on Schedule 6.16(a) which
contains a complete and accurate list, as of the date of this Agreement, of
all of the places of business of each Obligor.
(b) Schedule 6.16(b) contains a complete and accurate list, as of the
date of this Agreement, of the locations of all Collateral of each Obligor.
VI.17 Real Property. Schedule 6.17 contains a complete and accurate
list, as of the date of this Agreement, of (a) the address and legal
descriptions of any Real Property owned by each Obligor or any of its
Material Subsidiaries and (b) the name and mailing address of the landlord,
and the property address, of all Real Property not owned by an Obligor on
which any Fixtures or Equipment owned by any Obligor is located (to the
extent such information is not included on Schedule 6.16).
VI.18 Intellectual Property; Licenses. Each Obligor owns directly or
is entitled to use, by license or otherwise, adequate Intellectual Property
to continue to conduct its business as heretofore conducted by it, and all
Intellectual Property existing on the date hereof, (together with in the
case of Patents, trademarks and copyrights, the date of issuance thereof),
is listed on Schedule 6.18. With respect to Intellectual Property of any
Obligor, unless such Intellectual Property is immaterial to business
operations, has become obsolete or is no longer used or useful in the
conduct of the business of such Borrower, and except as described on
Schedule 6.18:
(a) It is valid and enforceable, is subsisting, and has not been
adjudged invalid or unenforceable, in whole or in part;
(b) Unless and except to the extent that its failure to do so has not
had, and could not be reasonably expected to have a Material Adverse
Effect, such Obligor has made all necessary filings and recordations to
protect its interest therein, including, without limitation, recordations
of all of its interest in its patent property, trademark property in the
United States Patent and Trademark Office and, to the extent necessary for
the conduct of such Obligor's business, in corresponding offices throughout
the world and its claims to its copyright property in the United States
Copyright Office and, to the extent necessary for the conduct of such
Obligor's business, in corresponding offices throughout the world;
(c) Except as set forth on Schedule 6.18, such Obligor is the
exclusive owner of the entire and unencumbered right, title and interest in
and to such Intellectual Property owned by it and no claim has been made
that the use of any of its owned Intellectual Property does or may violate
the asserted rights of any third party; and
(d) Unless and except to the extent that its failure to do so has not
had, and could not be reasonably expected to have a Material Adverse
Effect, such Obligor has performed, and such Borrower will continue to
perform, all acts, and such Borrower has paid and will continue to pay, all
required fees and taxes, to maintain each and every item of such
Intellectual Property in full force and effect throughout the world, as
applicable.
Except as set forth on Schedule 6.18, each Obligor owns directly or is
entitled to use, by license or otherwise, all patents, trademarks,
copyrights, mask works, licenses, technology, knowhow, processes and rights
with respect to any of the foregoing used in, necessary for or of
importance to the conduct of such Obligor's business, the lack of ownership
of, or entitlement to, would have a Material Adverse Effect.
VI.19 Subsidiaries. Schedule 6.19 sets forth, for each Obligor, a
complete and accurate list of such Obligor's Subsidiaries, and, for each
such Subsidiary, a complete and accurate statement of (a) such Obligor's
percentage ownership of each of such Subsidiaries (including a description
of the outstanding Capital Stock of such Subsidiary), (b) the state or
other jurisdiction of formation or incorporation of each such Subsidiary,
(c) each state or other jurisdiction in which each such Domestic Subsidiary
is qualified to do business on the date of this Agreement, (d) all of such
Subsidiary's trade names, trade styles or doing business forms on the date
of this Agreement, and (e) whether such Subsidiary is a Material
Subsidiary. Except as thus disclosed on Schedule 6.19, there are no other
Material Subsidiaries on the Agreement Date.
VI.20 Joint Ventures. Neither any Obligor nor any Material
Subsidiaries is a partner or joint venturer in any Joint Venture other than
(i) the Joint Ventures listed on Schedule 6.20, which sets forth, for each
Joint Venture, a complete and accurate statement of (a) the percentage
ownership of each such partnership or joint venture by LCGI or any Material
Subsidiaries, and (b) the state, country or other jurisdiction of formation
or incorporation, as appropriate, of each Joint Venture.
VI.21 Solvency. Each Obligor and each Material Subsidiary are Solvent.
VI.22 Swap Obligations. No Obligor nor any of the Material
Subsidiaries has incurred any outstanding obligations under any Swap
Contracts, other than as may be listed on Schedule 6.22. LCGI has
undertaken its own independent assessment of its consolidated assets,
liabilities and commitments and has considered appropriate means of
mitigating and managing risks associated with such matters and has not
relied on any Swap Provider or any Affiliate of any Swap Provider in
determining whether to enter into any Swap Contract.
VI.23 Material Contracts; Labor Matters. Schedule 6.23 contains a
list, as of the date of this Agreement, of all, or substantially all,
contracts or agreements to which any Obligor or Material Subsidiary is a
party which is for one (1) year or longer and provide for payment by such
Person of One Million Dollars ($1,000,000) (or the Equivalent Amount
thereof in Pounds or Alternative Currencies) or more and, upon the request
of the Agent or any Lender, such Obligor will provide the Agent or such
Lender, as applicable, with a copy of any such contract or agreement.
Except as disclosed on Schedule 6.23: (a) no labor contract to which any
Obligor or Material Subsidiary is a party or is otherwise subject is
scheduled to expire prior to the Maturity Date; (b) no Obligor or Material
Subsidiary has, within the two (2) year period preceding the date of this
Agreement, taken any action which would have constituted or resulted in a
"plant closing" or "mass layoff" within the meaning of the Federal Worker
Adjustment and Retraining Notification Act of 1988 or any similar
applicable federal, state or local law, and no Obligor or any Material
Subsidiary has a reasonable expectation that any such action is or will be
required at any time prior to the Maturity Date; and (c) on the Agreement
Date (i) no Obligor or Material Subsidiary is a party to any labor dispute
(other than any immaterial disputes with its employees as individuals and
not affecting its relations with any labor group or its workforce as a
whole) and (ii) there are no pending or, to such Obligor's knowledge,
threatened strikes or walkouts relating to any labor contracts to which any
Obligor or Material Subsidiary is a party or is otherwise subject.
VI.24 Insurance. The Obligors have insurance meeting the requirements
of Section 7.7 hereof, and such insurance policies are in full force and
effect. As of the Agreement Date, all insurance maintained by any Obligor
is described on Schedule 6.24 hereto.
VI.25 Year 2000 Compliance. LCGI has conducted a comprehensive review
and assessment of its and the Material Subsidiaries' computer applications
with respect to the "year 2000 problem" (that is, the risk that computer
applications may not be able to properly perform date-sensitive functions
after December 31, 1999) and, based on that review, if any, LCGI does not
believe the year 2000 problem will result in a change having a Material
Adverse Effect.
VI.26 Full Disclosure. None of the representations or warranties made
by the Obligors in the Loan Documents as of the date such representations
and warranties are made or deemed made, and none of the statements
contained in any report, or certificate furnished by or on behalf of the
Borrowers in connection with the Loan Documents, contains any untrue
statement of a material fact or omits any material fact required to be
stated therein or necessary to make the statements made therein, in light
of the circumstances under which they are made, not misleading as of the
time when made or delivered.
ARTICLE VII.
AFFIRMATIVE COVENANTS
So long as any Lender or the Overdraft Bank shall have any Commitment
hereunder, or the Issuing Bank shall have any L/C Commitment hereunder, or
any Loan or other Obligation shall remain unpaid or unsatisfied, or any
Letter of Credit shall remain outstanding, unless the Majority Lenders
waive compliance in writing:
VII.1 Financial Statements. The Borrowers' Representative shall
deliver to the U.S. Agent, in form and detail satisfactory to such Agent:
(a) as soon as available, but not later than ninety (90) days after
the end of each fiscal year, a copy of the audited balance sheet of LCGI
and its Subsidiaries as at the end of such year and the related statements
of income or operations, shareholders' equity and cash flows for such year,
on a consolidated and consolidating basis, setting forth in each case in
comparative form the figures for the previous fiscal year, and accompanied
by the opinion of Ernst & Young or any other nationally-recognized
independent public accounting firm selected by LCGI which is reasonably
acceptable to the Agent ("Independent Auditor") which report shall state
that such consolidated financial statements present fairly in all material
respects the financial position for the periods indicated in conformity
with GAAP applied on a basis consistent with prior years. Such opinion
shall not be qualified or limited because of a restricted or limited
examination by the Independent Auditor of any material portion of LCGI's or
any Subsidiary's records, and
(b) as soon as available, but not later than thirty (30) days after
the end of each of fiscal month, a copy of the unaudited balance sheet of
LCGI and its Subsidiaries as of the end of such month and the related
statement of income, on a consolidating and consolidated basis, certified
by a Responsible Officer as presenting fairly in all material respects, in
accordance with GAAP (subject to ordinary, good faith, year-end accounting
adjustments in accordance with GAAP), the financial position and the
results of operations of LCGI and the Subsidiaries.
VII.2 Certificates; Other Information. The Borrowers' Representative
shall furnish to the U.S. Agent:
(a) concurrently with the delivery of the financial statements
referred to in Subsections 7.1(b) for the months ending at each fiscal
quarter end, a Compliance Certificate executed by a Responsible Officer of
LCGI;
(b) promptly, copies of all financial statements and reports that LCGI
sends to its shareholders;
(c) promptly, from time to time, as the U.S. Agent may reasonably
request, a written report of any material change in the information set
forth in Schedule 6.19 or Schedule 6.20 concerning, respectively, any of
the Subsidiaries or Joint Venture;
(d) promptly, from time to time, as the U.S. Agent may reasonably
request, but at least annually, within thirty (30) days after each fiscal
year end, a written report of any material change to the list of patents,
trademarks, copyrights and other Intellectual Property information set
forth in Schedule 6.18;
(e) promptly, from time to time, as the U.S. Agent may reasonably
request, but at least quarterly, within thirty (30) days after each quarter
end, a written report of any material change to the list of contracts set
forth in Schedule 6.23.
(f) promptly after, but in any event within ten (10) days after, the
sending thereof, copies of all financial statements, reports and other
information which LCGI files with the Securities and Exchange Commission;
(g) promptly after, but in any event within ten (10) days after, the
preparation of same, copies of all material press releases issued by LCGI
or any Subsidiary;
(h) as soon as available but not later than thirty (30) days prior to
the end of any fiscal year, copies of any annual budget or projections for
the next fiscal year prepared by LCGI; and
(i) promptly, such additional information regarding the business,
financial or corporate affairs of LCGI or any Subsidiary as the U.S. Agent
may from time to time reasonably request;
VII.3 Borrowing Base Certificate. The Borrowers' Representative shall
deliver to U.S. Agent a Borrowing Base Certificate signed by a Responsible
Officer as of the end of each fiscal month as soon as available each month,
but in any event not later than thirty (30) days after the end of such
fiscal month.
VII.4 Notices. The Borrowers' Representative shall promptly notify the
U.S. Agent:
(a) of the occurrence of any Event of Default, and of the occurrence
or existence of any event or circumstance that could reasonably be expected
to result in an Event of Default;
(b) of (i) any breach or non-performance of, or any default under, any
Contractual Obligation of any Obligor; or (ii) any dispute, litigation,
investigation, proceeding or suspension which may exist at any time between
LCGI or any of its Subsidiaries and any Governmental Authority; which, in
either case, could reasonably be expected to result in a Material Adverse
Effect.
(c) (x) of the commencement of, or any material development in, any
litigation or proceeding by, against or affecting LCGI or any Material
Subsidiary (i) in which the amount of damages claimed exceeds the Material
Amount, (ii) in which injunctive or similar relief is sought and which, if
adversely determined, would reasonably be expected to have a Material
Adverse Effect, or (iii) in which the relief sought is an injunction or
other stay of the performance of this Agreement or any Loan Document, or
(y) of the entry of any judgment against any Obligor in excess of the
Material Amount;
(d) of any material change or proposed material change in any of the
information set forth on Schedule 6.16 or Schedule 6.17, including but not
limited to (i) any change in the location of the chief executive office or
chief place of business, and (ii) any opening, closing or other change in
the list of offices and other places of business.
(e) any change in the name of any Obligor;
(f) any material change in the insurance information set forth in
Schedule 6.24;
(g) any material payment default by any Account Debtor, or other
Person obligated to an Obligor, under any contract, chattel paper, note or
other evidence of amounts payable or due or to become due to either
Borrower if the amount payable under such contract, chattel paper, note or
other evidence of amounts payable or due or to become due is a Material
Amount or greater;
(h) upon, but in no event later than five (5) Business Days after,
becoming aware of (i) any enforcement, cleanup, removal or other
governmental or regulatory actions instituted, completed or threatened
against any Obligor or any Material Subsidiary or any of their respective
properties pursuant to any applicable Environmental Laws, (ii) all other
Environmental Claims, and (iii) any material environmental or similar
condition on any real property adjoining or in the vicinity of the Real
Property of any Obligor or any Material Subsidiary that could reasonably be
anticipated to cause such property or any part thereof to be subject to any
restrictions on the ownership, occupancy, transferability or use of such
property under any Environmental Laws;
(i) of the occurrence of any of the following events affecting any
Obligor or any ERISA Affiliate (but in no event more than five (5) Business
Days after such event), and deliver to the Agent and each Lender a copy of
any notice with respect to such event that is filed with a Governmental
Authority and any notice delivered by a Governmental Authority to either
Borrower or any ERISA Affiliate with respect to such event: (i) an ERISA
Event; (ii) material increase in the Unfunded Pension Liability of any
Pension Plan; (iii) the adoption of, or the commencement of contributions
to, any Plan subject to Section 412 of the Code by either Borrower or any
ERISA Affiliate; or (iv) the adoption of any amendment to a Plan subject to
Section 412 of the Code, if such amendment results in a material increase
in contributions or Unfunded Pension Liability; and
(j) of any material change in accounting policies or financial
reporting practices by any Obligor or any of the Material Subsidiaries;
(k) of the entry by any Obligor or any Material Subsidiary into any
Specified Swap Contract, together with the details thereof;
(l) of the occurrence of any default, event of default, termination
event or other event under any Specified Swap Contract that after the
giving of notice, passage of time or both, would permit either counterparty
to such Specified Swap Contract to terminate early any or all trades
relating to such contract; and
(m) upon the request from time to time of either Agent, termination or
unwind amounts, together with a description of the method by which such
amounts were determined, relating to any then-outstanding Swap Contracts to
which any Obligor is party.
Each notice under this Section shall be accompanied by a written
statement by a Responsible Officer of the Borrowers' Representative setting
forth details of the occurrence referred to therein, and stating what
action such Borrower or any affected Subsidiary proposes to take with
respect thereto and at what time. Each notice under Section 7.4(a) shall
describe with particularity any and all clauses or provisions of this
Agreement or other Loan Document that have been (or foreseeably will be)
breached or violated.
VII.5 Preservation of Corporate Existence, Etc. Except as otherwise
expressly provided in Section 8.3, each Obligor shall, and shall cause each
of its Material Subsidiaries to: (a) preserve and maintain in full force
and effect its corporate existence and good standing under the laws of its
state or jurisdiction of incorporation; (b) preserve and maintain in full
force and effect all governmental rights, privileges, qualifications,
permits, licenses and franchises necessary or desirable (in any material
respect) to the normal conduct of its business; (c) use reasonable efforts,
in the ordinary course of business, to preserve its business organization
and goodwill; and (d) preserve or renew all of its registered patents,
trademarks, trade names and service marks to the extent the same are
necessary for or of importance to the conduct of the Borrower's business.
VII.6 Maintenance of Property and Management. Each Obligor shall, and
shall cause each of its Material Subsidiaries to, maintain and preserve (i)
all its respective property which is used or useful in its business in good
working order and condition, ordinary wear and tear excepted and make all
necessary repairs thereto and renewals and replacements thereof and (ii)
its executive management in substantially the same manner and with
substantially the same Persons as existing on the Agreement Date. In
furtherance of the foregoing, by the Agreement Date, LCGI shall have
entered into, and shall maintain at all times thereafter during the term of
this Agreement, executive management contracts with Xxxxx Xxxxx, as chief
executive officer, and Xxxxxx Xxxxxxx, as chief financial officer, each in
a form and substance satisfactory to the Agent, and as to which the Agent
shall have received a certified copy, as signed.
VII.7 Insurance. Each Obligor shall, and shall cause each of Material
Subsidiaries to, maintain, with financially sound and reputable independent
insurers, insurance with respect to its properties and business against
loss or damage of the kinds customarily insured against by Persons engaged
in the same or similar business, of such types and in such amounts as are
customarily carried under similar circumstances by such other Persons,
including workers' compensation insurance, public liability and property
and casualty insurance. All casualty insurance maintained by the Borrowers
shall name the Agent as loss payee and all liability insurance (excluding
professional liability and workers' compensation insurance) shall name the
Agent as additional insured for the benefit of the Issuing Bank and the
Lenders, as their interests may appear. All policies of insurance required
to be maintained under this Agreement shall be in form and with insurers
recognized as adequate by the Agent and all such policies shall be in such
amounts as may be reasonably satisfactory to the Agent and shall, by an
endorsement or independent instrument furnished to the Agent provide that
the insurance companies will give Agent at least thirty (30) days prior
written notice before any such policy or policies of insurance shall be
materially altered or canceled. On the Agreement Date, and upon the
renewal, replacement, or addition of each policy of insurance thereafter,
the Borrowers' Representative shall deliver to Agent a copy of each policy
of insurance and a certificate of insurance that evidences the existence of
each policy of insurance, payment of all premiums therefor and compliance
with all provisions of this Agreement. In addition, the Borrowers'
Representative shall notify the U.S. Agent promptly of any occurrence
causing a loss or decline in value in excess of the Material Amount in the
aggregate of any real or personal property and the estimated (or actual, if
available) amount of such loss or decline.
VII.8 Payment of Obligations. Each Obligor shall, and shall cause each
of its Material Subsidiaries to, pay and discharge as the same shall become
due and payable, all their respective obligations and liabilities,
including: (a) all tax liabilities, assessments and governmental charges or
levies upon it or its properties or assets, unless the same are being
contested in good faith by appropriate proceedings and adequate reserves in
accordance with GAAP or its foreign equivalent are being maintained by LCGI
or such Subsidiary; (b) all lawful claims which, if unpaid, would by law
become a Lien upon its respective property; and (c) all Indebtedness as and
when due and payable.
VII.9 Compliance with Laws. Each Obligor shall, and shall cause each
of its Material Subsidiaries to, comply in all material respects with all
Requirements of Law of any Governmental Authority having jurisdiction over
it or its business (including the Federal Fair Labor Standards Act), except
such as may be contested in good faith or as to which a bona fide dispute
may exist.
VII.10 Compliance with ERISA. Each Obligor shall, and shall cause each
of its ERISA Affiliates to: (a) maintain each Plan in compliance in all
material respects with the applicable provisions of ERISA, the Code and
other federal or state law; (b) with respect to a Plan which has received a
favorable determination from the IRS as to its qualified status under
Section 401(a) of the Code, take all reasonable, necessary and appropriate
actions in order to preserve such determined status; and (c) make all
required contributions to any Plan subject to Section 412 of the Code.
VII.11 Inspection of Property and Books and Records. Each Obligor
shall, and shall cause each of its Material Subsidiaries to, maintain and
shall cause each Material Subsidiary to maintain proper books of record and
account, in which full, true and correct entries in conformity with GAAP,
or its foreign equivalent, consistently applied shall be made of all
financial transactions and matters involving the assets and business of
such Obligor and such Subsidiary. The Obligors shall permit representatives
and independent contractors of the Agent or any Lender to visit and inspect
any of their respective properties, to examine their respective corporate,
financial and operating records, and make copies thereof or abstracts
therefrom, to inspect and audit Collateral, and to discuss their respective
affairs, finances and accounts with their respective directors, officers,
and independent public accountants, all at the expense of the Borrowers and
at such reasonable times during normal business hours and as often as may
be reasonably desired, upon reasonable advance notice to the Borrowers'
Representative; provided, however, when an Event of Default exists the
Agent or any Lender may do any of the foregoing at any time and without
advance notice.
VII.12 Environmental Laws
(a) Each Obligor shall, and shall cause each of its Material
Subsidiaries to, conduct its operations and keep and maintain its property
in compliance in all material respects with all Environmental Laws.
(b) Upon the written request of the U.S. Agent, the Borrowers'
Representative shall submit to the U.S. Agent at the Borrowers' sole cost
and expense, at reasonable intervals, a report providing an update of the
status of any environmental, health or safety compliance, hazard or
liability issue identified in any notice or report required pursuant to
Subsection 7.4(h), that could, individually or in the aggregate, result in
liability in excess of the Material Amount.
VII.13 Use of Proceeds. Each Borrower shall use the proceeds of the
Revolving Loans made hereunder to refinance certain Indebtedness, for
working capital and for other general corporate purposes not in
contravention of any Requirement of Law or of this Agreement. Each Borrower
shall use the proceeds of each CAPEX Loan solely to finance its purchase,
or refinance any Indebtedness incurred initially in its purchase, of
Eligible Capital Assets.
VII.14 Further Assurances
(a) Each Obligor shall, and shall cause each of its Material
Subsidiaries to, ensure that all written information, exhibits and reports
furnished to each Agent or the Lenders do not and will not contain any
untrue statement of a material fact and do not and will not omit to state
any material fact or any fact necessary to make the statements contained
therein not misleading in light of the circumstances in which made, and
will promptly disclose to each Agent and the Lenders and correct any
material defect or error that may be discovered therein or in any Loan
Document or in the execution, acknowledgment or recordation thereof.
(b) Promptly upon request by the appropriate Agent, the Obligors
shall, and shall cause each of their respective Material Subsidiaries to,
do, execute, acknowledge, deliver, record, re-record, file, re-file,
register and re-register, any and all such further acts, deeds,
conveyances, security agreements, mortgages, assignments, estoppel
certificates, financing statements and continuations thereof, termination
statements, notices of assignment, transfers, certificates, assurances and
other instruments as such Agent may reasonably require from time to time in
order (i) to carry out more effectively the purposes of this Agreement or
any other Loan Document, (ii) to subject to the Liens created by any of the
Collateral Documents any of the properties, rights or interests covered by
any of the Collateral Documents, (iii) to perfect and maintain the
validity, effectiveness and priority of any of the Collateral Documents and
the Liens intended to be created thereby, and (iv) to better assure,
convey, grant, assign, transfer, preserve, protect and confirm to such
Agent or any Obligee the rights granted or now or hereafter intended to be
granted to the Agent, the Issuing Bank or the Lenders under any Loan
Document or under any other document executed in connection therewith.
VII.15 Additional Guarantors. At the time any Person becomes a
Material Subsidiary of an Obligor, Borrowers' Representative shall so
notify the Agent and promptly thereafter (but in any event within thirty
(30) days after the date thereof) such Person or, as appropriate, that
Person which owns the capital stock of such Person, shall (a) execute a
Joinder Agreement in substantially the same form as Exhibit O, (b) cause
all of the capital stock of such Person (if it is a U.S. Subsidiary) or
sixty-five percent (65%) of the capital stock of such Person (if it is a
International Subsidiary) to be delivered to the appropriate Collateral
Agent (together with undated stock powers signed in blank) and pledged to
the appropriate Collateral Agent pursuant to an appropriate pledge
agreement in substantially the form of the Pledge Agreement (or a joinder
to the existing Pledge Agreement) and otherwise in a form reasonably
acceptable to the appropriate Collateral Agent, (c) if such Person is a
U.S. Subsidiary, grant a security interest in all, or substantially all, of
its assets to the appropriate Collateral Agent pursuant to a security
agreement in substantially the form of the Security Agreement (or a joinder
to the existing Security Agreement) and otherwise in a form reasonably
acceptable to the Collateral Agent, (d) if such Person is a U.S. Subsidiary
and owns or leases any real property, execute any and all necessary
mortgages, deeds of trust, deeds to secure debt or other appropriate real
estate collateral documentation in a form acceptable to the appropriate
Collateral Agent (or cause to be delivered in a commercially reasonable
manner a landlord waiver or estoppel letter with respect thereto in a form
acceptable to the appropriate Collateral Agent) and (e) deliver such other
documentation as the appropriate Collateral Agent may reasonably request in
connection with the foregoing, including, without limitation, appropriate
UCC-1 financing statements, real estate title insurance policies,
appraisals, environmental reports, landlord's waivers, certified
resolutions and other organizational and authorizing documents of such
Person and favorable opinions of counsel to such Person (which shall cover,
among other things, the legality, validity, binding effect and
enforceability of the documentation referred to above), all in form,
content and scope reasonable satisfactory to the appropriate Collateral
Agent.
VII.16 Required Swap Contracts. As soon as practicable, but in any
event by not later than ninety (90) days after the Agreement Date, LCGI
shall have entered into, and thereafter shall maintain for the entire term
of this Agreement, Swap Contracts having terms and conditions satisfactory
to the U.S. Agent for not less than fifty percent (50%) of that portion of
its Funded Debt consisting of borrowed funds payable at variable interest
rates.
VII.17 Mortgaged Property. The Collateral Agent shall have the
continuing right, upon giving at least thirty (30) days written notice to
the Borrowers' Representative to such effect (unless an Event of Default
then exists, in which case no such prior notice need be given) to require
that any real property of the U.S. Obligors set forth on Schedule 6.17 or
acquired by any U.S. Obligor subsequent to the Closing Date, become
Mortgaged Property, in which event the Borrowers' Representative shall
cause such U.S. Obligor to comply promptly in all respects with the
conditions set forth in Sections 5.1 and 6.13 hereof as they relate to
Mortgaged Property or a Mortgage in specific regard to such real property,
all at U.S. Borrower's expense.
ARTICLE VIII.
NEGATIVE COVENANTS
So long as any Lender shall have any Commitment hereunder, or any
Issuing Bank shall have any L/C Commitment hereunder, or any Loan or other
Obligation shall remain unpaid or unsatisfied, or any Letter of Credit
shall remain outstanding, unless the Majority Lenders waive compliance in
writing:
VII.1 Liens. The Obligors shall not, and shall not suffer or permit
any of their respective Material Subsidiaries to, directly or indirectly,
make, create, incur, assume or suffer to exist any Lien upon or with
respect to any part of its or their respective property or assets, whether
now owned or hereafter acquired, other than the following ("Permitted
Liens") :
(a) any Lien existing on property of LCGI or any Material Subsidiary
on the Agreement Date and set forth in Schedule 8.1 securing Indebtedness
outstanding on such date;
(b) any Lien created under any Loan Document;
(c) Liens for taxes, fees, assessments or other governmental charges
which are not delinquent or remain payable without penalty, or to the
extent that non-payment thereof is permitted by Section 7.8, provided that
no notice of lien has been filed or recorded;
(d) carriers', warehousemen's, mechanics', landlords' materialmen's,
repairmen's or other similar Liens arising in the ordinary course of
business which are not overdue for a period longer than sixty (60) days
delinquent or remain payable without penalty or which are being contested
in good faith and by appropriate proceedings, which proceedings have the
effect of preventing the forfeiture or sale of the property subject
thereto;
(e) Liens (other than any Lien imposed by ERISA and other than on the
Collateral) consisting of pledges or deposits required in the ordinary
course of business in connection with workers' compensation, unemployment
insurance and other social security legislation;
(f) Liens (other than Liens on the Collateral) on the property of LCGI
or any Material Subsidiary securing (i) the nondelinquent performance of
bids, trade contracts (other than for borrowed money), leases, statutory
obligations, (ii) contingent obligations on surety and appeal bonds, and
(iii) other nondelinquent obligations of a like nature; in each case,
incurred in the ordinary course of business , provided all such Liens in
the aggregate would not (even if enforced) cause a Material Adverse Effect;
(g) Liens (other than Liens on the Collateral) consisting of judgment
or judicial attachment liens, provided that the enforcement of such Liens
is effectively stayed and all such Liens in the aggregate at any time
outstanding for LCGI and its Material Subsidiaries do not exceed the
Material Amount;
(h) easements, rights-of-way, restrictions and other similar
encumbrances incurred in the ordinary course of business which, in the
aggregate, are not substantial in amount, and which do not in any case
materially detract from the value of the property subject thereto or
interfere with the ordinary conduct of the businesses of LCGI and its
Material Subsidiaries;
(i) Liens on assets of Persons which become Material Subsidiaries
after the date of this Agreement, provided, however, that such Liens
existed at the time the respective Persons became Subsidiaries and were not
created in anticipation thereof and do not exceed the Material Amount;
(j) purchase money security interests on any property acquired or held
by a Borrower or its Material Subsidiaries in the ordinary course of
business, securing Indebtedness incurred or assumed for the purpose of
financing all or any part of the cost of acquiring fixed assets; provided
that (i) any such Lien attaches to such fixed assets; concurrently with or
within twenty (20) days after the acquisition thereof, (ii) such Lien
attaches solely to the fixed assets so acquired in such transaction, (iii)
the principal amount of the Indebtedness secured thereby does not exceed
one hundred percent (100%) of the cost of such fixed assets; and (iv) the
principal amount of the Indebtedness secured by any and all such purchase
money security interests (exclusive of Capitalized Leases and any CAPEX
Loans) shall not exceed, in the aggregate, One Million Five Hundred
Thousand Dollars ($1,500,000) in any fiscal year of LCGI;
(k) Liens securing obligations in respect of Capitalized Leases on
assets subject to such leases, provided that such Capital Leases are
otherwise permitted hereunder;
(l) Liens arising solely by virtue of any statutory or common law
provision relating to banker's liens, rights of set-off or similar rights
and remedies as to deposit accounts or other funds maintained with a
creditor depository institution; provided that (i) such deposit account is
not a dedicated cash collateral account and is not subject to restrictions
against access by LCGI on such Subsidiary in excess of those set forth by
regulations promulgated by the FRB, and (ii) such deposit account is not
intended by LCGI or any Subsidiary to provide collateral to the depository
institution;
(m) deposits to secure, or in lieu of, surety and appeal bonds to
which any Obligor is a party;
(n) deposits in connection with the prosecution or defense of any
claim in any court or before any administrative commission or agency; and
(o) Liens granted in any intercompany note provided that such Liens
are, by their express terms, subject and subordinate to any Liens granted
or arising pursuant hereto in favor of the Collateral Agreement, and,
provided, further, that all such Liens are assigned to the Collateral
Agent.
VIII.2 Liquidation, Change in Ownership or Name; Disposition or
Acquisition of Assets; Etc. The Obligors shall not, and shall not suffer or
permit any of their respective Material Subsidiaries to, directly or
indirectly:
(a) Liquidate or dissolve itself (or suffer any liquidation or
dissolution) or otherwise wind up its business;
(b) Sell, lease, abandon, transfer or otherwise dispose of, in a
single transaction or a series of related transactions, any assets,
property or business except (i) in the ordinary course of business at the
fair market value thereof and for cash or cash equivalents, (ii) for
physical assets used, consumed or otherwise disposed of in the ordinary
course of business, (iii) other assets, the fair market value of which does
not exceed in the aggregate, for LCGI and the Material Subsidiaries, the
Material Amount in any fiscal year, or (iv) to another Obligor, so long as
buyer and seller are both U.S. Obligors or both International Obligors.
(c) Create any Material Subsidiary, unless (i) if such Material
Subsidiary is organized or operated in the United States or the United
Kingdom, any such Subsidiary executes at the time of its creation a
security agreement in favor of the Collateral Agent, and all UCC-l
financing statements (or the equivalent thereof) necessary to perfect the
security interest of the Collateral Agent granted by the security
agreement, all in form and substance satisfactory to the Agent, (ii) such
Subsidiary executes at the time of its creation a guaranty agreement in
favor of the Agent, in form and substance satisfactory to the Agent,
pursuant to Section 7.15, (iii) the Agent receives such opinion letters as
it may reasonably request regarding the documents delivered pursuant to
clauses (i) and (ii) above (and, if applicable, the perfection of Liens
created thereunder), and (iv) no Default exists immediately prior to or
after the creation of such Subsidiary.
(d) Change its name without giving the Agent thirty (30) days prior
written notice of its intention to do so and complying with all reasonable
requirements of the Agent in regard thereto.
VIII.3 Consolidations and Mergers. Except as permitted by Section 8.2
and Section 8.5, the Obligors shall not, and shall not suffer or permit any
of their respective Material Subsidiaries to, merge, consolidate with or
into, or convey, transfer, lease or otherwise dispose of (whether in one
transaction or in a series of transactions all or substantially all of its
assets (whether now owned or hereafter acquired) to or in favor of any
Person, except any Material Subsidiary (other than a Borrower) may merge
with (a) either Borrower, provided that such Borrower shall be the
continuing or surviving corporation, (b) any other Material Subsidiary, and
(c) any other Subsidiary, provided that (i) such Material Subsidiary shall
be the continuing or surviving corporation, and (ii) no Default or Event of
Default shall exist hereunder, both before and after giving effect to such
Merger.
VIII.4 Loans and Investments The Obligors shall not purchase or
acquire, or make any commitment therefor, any Capital Stock, equity
interest, or any obligations or other securities of, or any interest in,
any Person, or make or commit to make any advance, loan, extension of
credit or capital contribution to or any other investment in, any Person
including any Affiliate of LCGI, excluding, however, any acquisition
transaction governed by Section 8.5 (together, "Investments"), except:
(a) an Obligor or any of its Material Subsidiaries may purchase or
otherwise acquire and own (i) marketable, direct obligations of the United
States of America and its agencies maturing within three hundred sixty-five
(365) days of the date of purchase, (ii) commercial paper issued by
corporations, each of which shall (A) have a consolidated net worth of at
least Two Hundred Fifty Million Dollars ($250,000,000), and (B) conduct
substantially all of its business in the United States of America, which
commercial paper will mature within one hundred eighty (180) days from the
date of the original issue thereof and is rated "P-1" or better by Xxxxx'x
Investors Service, Inc., or "A-I" or better by Standard & Poor's
Corporation, (iii) certificates of deposit maturing within three hundred
sixty-five (365) days of the date of purchase and issued by a United States
national or state bank having deposits totaling more than Two Hundred Fifty
Million Dollars ($250,000,000), and whose short-term debt is rated "P-1" or
better by Xxxxx'x Investors Service, Inc. or "A-I" or better by Standard &
Poor's Corporation, and (iv) up to One Million Dollars ($1,000,000) per
institution and up to $1,000,000 in the aggregate in (A) short-term
obligations issued by any local commercial bank or trust company located in
those areas where LCGI or such Subsidiary conducts its business, whose
deposits are insured by the Federal Deposit Insurance Corporation, or (B)
commercial bank-insured money market funds, or any combination of
investments described in clauses (A) and (B);
(b) Investments constituting extensions of credit in the nature of
accounts receivable or notes receivable arising from the sale or lease of
goods or services in the ordinary course of business;
(c) Investments in the nature of (i) extensions of credit by a
Borrower or any of its Material Subsidiaries to another of its
Subsidiaries, in accordance with Section 8.6 hereof;
(d) Investments permitted under Section 8.5;
(e) Investments constituting Permitted Swap Obligations or payments or
advances under Swap Contracts relating to Permitted Swap Obligations.
(f) Investments in existence as of the Agreement Date and described in
Schedule 8.4.
VII.5 Acquisitions. No Obligor shall enter into, nor permit any
Material Subsidiary to enter into, any transaction or series of related
transactions for the purpose of or resulting, directly or indirectly, in
(a) the acquisition of all or substantially all of the assets of a Person,
or of any business or division of a Person, (b the acquisition of in
excess of fifty percent (50%) of the capital stock, partnership interests,
membership interests or equity of any Person, or otherwise causing any
Person to become a Subsidiary, or (c) a merger or consolidation or any
other combination with another Person (other than a Person that is a
Subsidiary provided that LCGI or a Subsidiary is the surviving entity)
(herein, an "acquisition"), unless: (i) the corporation, partnership, joint
venture, operating assets or line of business acquired is in a
substantially similar line of business as the Borrowers; (ii) the
corporation, joint venture or partnership in which any interest is acquired
shall not have had a net operating loss for the twelve-month period ending
on the last day of the last fiscal month preceding the applicable
acquisition date; (iii) the acquisition is not being contested by the board
of directors (or similar governing body) of the entity being acquired; that
is, it is not a "hostile" acquisition; (iv) the purchase price (including
the amount of all liabilities assured by either Borrower or Guarantor)
(A) of any such acquisition shall not exceed Two Million Dollars
($2,000,000) in the aggregate or (B) for all such acquisitions shall not
exceed Seven Million Five Hundred Thousand Dollars ($7,500,000) in the
aggregate; (v) no Event of Default or Default shall exist at the time of
such acquisition; (vi) not more than two (2) such acquisitions shall
involve corporations, partnerships, joint ventures, operating assets or
lines of business which are more than fifty percent (50%) located outside
the United States; (vii) after giving effect to each such acquisition, the
Available Commitment is at least Five Million Dollars ($5,000,000); and
(vi) the Agent contemporaneously with the closing of such acquisition shall
have received (A) such documents and instruments as may be necessary to
grant or confirm to the Agent or a Collateral Agent a Lien on or security
interest in all of the assets so acquired, and (B) if an entity is acquired
and not merged into a Borrower or a Guarantor, a guaranty of the
Obligations executed by such entity in the form and substance satisfactory
to the Agent.
VII.6 Indebtedness. The Obligors shall not, and shall not suffer or
permit any of their respective Material Subsidiaries to, create, incur,
assume, suffer to exist, or otherwise become or remain directly or
indirectly liable with respect to, any Indebtedness, except:
(a) Indebtedness incurred pursuant to this Agreement and the other
Loan Documents;
(b) Indebtedness consisting of Contingent Obligations permitted
pursuant to Section 8.9;
(c) all Indebtedness existing on the Agreement Date and set forth in
Schedule 8.6;
(d) Indebtedness secured by Liens permitted by Section 8. 1 (i) and
(j);
(e) Indebtedness incurred in connection with Capital Leases entered
into by LCGI or any Subsidiary to finance the acquisition of equipment (and
in compliance with Section 8.1(j).
(f) Trade or accounts payable and/or similar obligations, and accrued
expenses, incurred in the ordinary course of business, other than for
borrowed money;
(g) Subordinated Debt (including that set forth and identified as such
on Schedule 8.6); provided, however, that (i) no Subordinated Debt may be
prepaid, in whole or in part, at any time; (ii) no Subordinated Debt may be
repaid, nor may any interest, fees or other charges be paid thereon or in
connection therewith, except in accordance with, and subject to, the
Subordination Agreement corresponding thereto or, if and to the extent that
the subordination of any such Debt is, by its terms, dependent on the terms
of this Agreement relevant thereto, then, as set forth below in this
subsection and as contained in Section 12.19 below; (iii) no principal
amount of Subordinated Debt may be repaid, in any event, in 1998; and (iv)
total principal payments in respect of all such Subordinated Debt shall not
exceed, in any event, in any fiscal year of LCGI subsequent to 1998, the
lesser of (i) Four Million Dollars ($4,000,000) or (ii) a sum, determined
as of the last day of LCGI's prior fiscal year, equal in amount to the
amount (if any) by which (A) EBITDA, for the twelve (12) fiscal month
period ending on the last day of such preceding fiscal year, multiplied by
two (2), exceeds (B) total Funded Debt, determined for the same said
period;
(h) Indebtedness owing to a Borrower or any Material Subsidiary by one
of its Subsidiaries, not to exceed, however, in aggregate amount, Five
Hundred Thousand Dollars ($500,000) in any fiscal year of LCGI, and,
provided, further, that all such Indebtedness shall be evidenced by
intercompany notes receivable from the borrowing Subsidiary, which shall be
assigned to the Collateral Agent; and
(i) Other Indebtedness, in addition to that described in subsections
(a) through (h) above, not to exceed, in aggregate amount, the sum of One
Million Dollars ($1,000,000).
VII.7 Transactions with Affiliates. The Obligors shall not, and shall
not suffer or permit any of their respective Material Subsidiaries to,
enter into any material transaction with any Affiliate of LCGI, except upon
fair and reasonable terms fully disclosed to Agent and no less favorable to
LCGI or such Subsidiary than it would obtain in a comparable arms length
transaction with a Person not an Affiliate of LCGI.
VII.8 Use of Proceeds. The Borrowers shall not use any portion of the
Loan proceeds or any Letter of Credit, directly or indirectly, (i) to
purchase or carry Margin Stock, (ii) to repay or otherwise refinance
indebtedness of either Borrower or others incurred to purchase or carry
Margin Stock, (iii) to extend credit for the purpose of purchasing or
carrying any Margin Stock, or (iv) to acquire any security in any
transaction that is subject to Sections 13 or 14 of the Exchange Act.
VIII.9 Contingent Obligations. The Obligors shall not, and shall not
suffer or permit any of their respective Material Subsidiaries to, create,
incur, assume or suffer to exist any Contingent Obligations, except:
(a) endorsements for collection or deposit in the ordinary course of
business;
(b) Contingent Obligations of a Borrower or its Material Subsidiaries
existing as of the Agreement Date and listed in Schedule 8.9;
(c) Guaranty Obligations entered into by a Borrower or any Material
Subsidiary after the Agreement Date with respect to obligations of an
Affiliate of LCGI and not exceeding Five Hundred Thousand Dollars
($500,000) in the aggregate at any time outstanding; and
(d) Permitted Swap Obligations.
VIII.10 Joint Ventures. The Obligors shall not, and shall not suffer
or permit any of their respective Material Subsidiaries to, enter into any
Joint Venture, other than in the ordinary course of business.
VIII.11 Restricted Payments. The Obligors shall not, and shall not
suffer or permit any of their respective Material Subsidiaries to, declare
or make any dividend payment or other distribution of assets, properties,
cash, rights, obligations or securities on account of any shares of any
class of its Capital Stock, or purchase, redeem or otherwise acquire for
value any shares of its Capital Stock or any warrants, rights or options to
acquire such shares, now or hereafter outstanding; except that as
applicable:
(a) any Obligor or Material Subsidiary may declare and make dividend
payments or other distributions payable solely in its common stock;
(b) Any Obligor or Material Subsidiary may declare and pay dividends
to LCGI or to any other Obligor; and
(c) Provided no Event of Default exists or would result therefrom,
LCGI may pay dividends and make distributions on or in respect of (i) that
portion of its Capital Stock consisting of Preferred Stock in an aggregate
amount not to exceed Eight Hundred Thousand Dollars ($800,000) per fiscal
year of LCGI.
VIII.12 ERISA. The Obligors shall not, and shall not suffer or permit
any of their respective ERISA Affiliates to: (a) engage in a prohibited
transaction or violation of the fiduciary responsibility rules with respect
to any Plan which has resulted or could reasonably expected to result in
liability of the Borrower in an aggregate amount in excess of the Material
Amount; or (b) engage in a transaction that could be subject to
Section 4069 or 4212(c) of ERISA.
VIII.13 Change in Business. The Obligors shall not, and shall suffer
or permit any of their respective Material Subsidiaries to, engage in any
material line of business substantially different from those lines of
business carried on by the Borrowers or such Subsidiaries on the Agreement
Date; provided, however, nothing contained herein shall prevent any of the
Obligors from expanding the locations in which they do business.
VIII.24 Accounting Changes. The Obligors shall not, and shall not
suffer or permit any of their respective Material Subsidiaries to, make any
significant change in accounting treatment or reporting practices, except
as required by GAAP or its foreign equivalent, or change the fiscal year of
LCGI or of any Material Subsidiary.
VIII.15 Intellectual Property. Each Obligor agrees that it will, with
respect to the Intellectual Property of such Obligor or any of its Material
Subsidiaries which is necessary for or of importance to the conduct of the
business of such Person, unless such Intellectual Property has become
obsolete:
(a) Not, do any act, or omit to do any act, whereby any of its
respective Patent Property may lapse or become abandoned or dedicated to
the public or unenforceable;
(b) Not, and not permit any licensee of it to: (i) fail to continue to
use any of the trademark property in order to maintain all of such
trademark property in full force free from any claim of abandonment for
non-use; (ii) fail to maintain as in the past in all material respects the
quality of products and services offered under all of the trademark
property; (iii) fail to employ all of the trademark property registered
with any Federal or state or foreign authority with an appropriate notice
of such registration; (iv) adopt or use any other trademark which is
confusingly similar or a colorable imitation of any of the trademark
property; (v) use any of the trademark property registered with any Federal
or state or foreign authority except for the uses for which registration or
application for registration of all of such trademark property has been
made; or (vi) do or permit any act or knowingly omit to do any act whereby
any of the trademark property may lapse or become invalid or unenforceable;
(c) Not, do or permit any act or knowingly omit to do any act whereby
any of the copyright property may lapse or become invalid or unenforceable
or placed in the public domain except upon expiration of the end of an
unrenewable term of a registration thereof;
VIII.16 Negative Pledges. The Obligors will not, and not permit any of
their respective Material Subsidiaries to, enter into any agreement
(excluding this Agreement and any Loan Document) prohibiting (a) the
creation or assumption of any Lien upon its properties, revenues or assets,
whether now owned or hereafter acquired, or (b) the ability of the
Borrowers to amend or otherwise modify this Agreement or any other Loan
Document.
ARTICLE IX.
FINANCIAL COVENANTS
So long as any Lender shall have any Commitment hereunder, or any
Issuing Bank shall have any L/C Commitment hereunder, or any Loan or other
Obligation shall remain unpaid or unsatisfied, or any Letter of Credit
shall remain outstanding, unless the Majority Lenders waive compliance in
writing:
IX.1 Capital Expenditures. Total Capital Expenditures of LCGI and its
Subsidiaries on a consolidated basis, shall not exceed Seven Million
Dollars ($7,000,000), in the aggregate, per each Fiscal Year.
IX.2 Leverage Ratio. The Leverage Ratio, measured quarterly, as of
each fiscal quarter end of LCGI, commencing on the fiscal quarter ending
closest to March 31, 1998, shall not exceed: (i) 3.25:1, for all
measurements during the period from the Agreement Date through the fiscal
month ending closest to June 30, 1998; (ii) 3.00:1, for all measurements
during the period from the fiscal month beginning closest to July 1, 1998
through the fiscal month ending closest to June 30, 1999; and (iii) 2.75:1,
for all measurements from and after the fiscal month beginning closest to
July 1, 1999.
IX.3 FIxed Charge Coverage. The ratio of: (a) EBIRT, measured
quarterly for the twelve (12) fiscal months period ending on the last day
of each fiscal quarter of LCGI, commencing on the fiscal quarter ending
closest to March 31, 1998, to (b) the sum of interest expense and rent
expense in connection with operating leases for the same said period, to
the extent each is included in the statement of net income for such period,
shall be greater than: (i) 1.20:1, for all measurements during the period
from the Agreement Date through the fiscal month ending closest to
December 31, 1998; (ii) 1.40:1, for all measurements during the period from
the fiscal month beginning closest to January 1, 1999 through the fiscal
month ending closest to December 31, 1999; and (iii) 1.65:1, for all
measurements during from and after the fiscal month beginning closest to
January 1, 2000.
IX.4 EBITDA. EBITDA: (i) calculated on a trailing four (4) fiscal
quarters' basis at the close of each fiscal quarter of LCGI, commencing
with the fiscal quarter ended closest to January 31, 1998, shall be at
least Sixteen Million Dollars ($16,000,000); and (ii) calculated on a
quarterly basis, at the close of each fiscal quarter of LCGI, commencing
with the fiscal quarter ended closest to March 31, 1998, shall be at least
One Dollar ($1.00); provided, however, that, for purposes only of
calculating EBITDA in this clause (ii), there shall be excluded from such
calculation any charges against net income taken in such quarter in respect
of losses sustained in the buyout of lease (or sublease) obligations, to
the extent made in accordance with GAAP, and not to exceed Three Million
Dollars ($3,000,000) in such exclusions in any one fiscal year.
ARTICLE X.
EVENTS OF DEFAULT
X.1 Event of Default. Any of the following shall constitute an "Event
of Default":
(a) The Borrowers fail to pay, (i) when and as required to be paid
herein, any amount of principal of any Loan or of any L/C Obligation, or
(ii) within three (3) days after the same becomes due, payment of any
interest, fee or any other amount payable hereunder or under any other Loan
Document; or
(b) Any representation or warranty by any Obligor made or deemed made
herein, in any other Loan Document or which is contained in any
certificate, document or financial or other statement by such Obligor, or
any Responsible Officer, furnished at any time under this Agreement, or in
or under any other Loan Document is incorrect in any material respect on or
as of the date made or deemed made; or
(c) Any Obligor fails to perform or observe any term, covenant or
agreement contained in Sections 7.1, 7.2, 7.3, 7.4, or 7.14 or in Articles
VIII or IX (other than Section 8.4); or
(d) Any Obligor party thereto fails to perform or observe any other
term, covenant or agreement contained in this Agreement or any other Loan
Document and such default shall continue unremedied for the earlier of (i)
the applicable cure period in such Loan Document, if any, or (ii) a period
of [twenty-one (21)] days after the earlier of (A) the date upon which a
Responsible Officer knew or reasonably should have known of such failure or
(B) the date upon which written notice thereof is given to the Borrowers'
Representative by the Agent or any Lender; or
(e) either (i) any Obligor (A) fails to make any payment in respect of
any Indebtedness or Contingent Obligation having an aggregate principal
amount (including undrawn committed or available amounts and including
amounts owing to all creditors under any combined or syndicated credit
arrangement) of more than the Material Amount when due (whether by
scheduled maturity, required prepayment, acceleration, demand, or
otherwise) and such failure continues after the applicable grace or notice
period, if any, specified in the relevant document on the date of such
failure; or (B) fails to perform or observe any other condition or
covenant, or any other event shall occur or condition exist, under any
agreement or instrument relating to any such Indebtedness or Contingent
Obligation, and such failure continues after the applicable grace or notice
period, if any, specified in the relevant document on the date of such
failure if the effect of such failure, event or condition is to cause, or
to permit the holder or holders of such Indebtedness or beneficiary or
beneficiaries of such Indebtedness (or a trustee or agent on behalf of such
holder or holders or beneficiary or beneficiaries) to cause such
Indebtedness to be declared to be due and payable prior to its stated
maturity, or such Contingent Obligation to become payable or cash
collateral in respect thereof to be demanded; or (ii) there occurs under
any Swap Contract an Early Termination Date (as defined in such Swap
Contract) resulting from (1) any event of default under such Swap Contract
as to which the Company or any Subsidiary is the Defaulting Party (as
defined in such Swap Contract) or (2) any Termination Event (as so defined)
as to which such Obligor is an Affected Party (as so defined), and, in
either event, the Swap Termination Value owed by the such Obligor as a
result thereof is greater than the Material Amount;
(f) An Obligor or any Material Subsidiary (i) ceases or fails to be
Solvent, or generally fails to pay, or admits in writing its inability to
pay, its debts as they become due, subject to applicable grace periods, if
any, whether at stated maturity or otherwise; (ii) voluntarily ceases to
conduct its business in the ordinary course; (iii) commences any Insolvency
Proceeding with respect to itself; or (iv) takes any action to effectuate
or authorize any of the foregoing; or
(g) either (i) Any involuntary Insolvency Proceeding is commenced or
filed against any Obligor or any Material Subsidiary, or any writ,
judgment, warrant of attachment, execution or similar process, is issued or
levied against a substantial part of an Obligor's or any Material
Subsidiary's properties, and any such proceeding or petition shall not be
dismissed, or such writ, judgment, warrant of attachment, execution or
similar process shall not be released, vacated or fully bonded within sixty
(60) days after commencement, filing or levy; (ii) any Obligor or any
Material Subsidiary admits the material allegations of a petition against
it in any Insolvency Proceeding, or an order for relief (or similar order
under non-U.S. law) is ordered in any Insolvency Proceeding; or (iii) any
Obligor or any Material Subsidiary acquiesces in the appointment of a
receiver, trustee, custodian, conservator, liquidator, mortgagee in
possession (or agent therefor), or other similar Person for itself or a
substantial portion of its property or business; or
(h) either (i) An ERISA Event shall occur with respect to a Pension
Plan or Multiemployer Plan which has resulted or could reasonably be
expected to result in liability of the Borrower under Title IV of ERISA to
the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in
excess of the Material Amount; or (ii) the aggregate amount of Unfunded
Pension Liability among all Pension Plans at any time exceeds the Material
Amount; or (iii) the Borrower or any ERISA Affiliate shall fail to pay when
due, after the expiration of any applicable grace period, any installment
payment with respect to its withdrawal liability under Section 4201 of
ERISA under a Multiemployer Plan in an aggregate amount in excess of the
Material Amount; or
(i) One or more non-interlocutory judgments, noninterlocutory orders,
decrees or arbitration awards is entered against any Obligor or any
Material Subsidiary in the aggregate a liability (to the extent not covered
by independent third-party insurance as to which the insurer does not
dispute coverage) as to any single or related series of transactions,
incidents or conditions, of the Material Amount or more, and the same shall
remain unvacated and unstayed pending appeal for a period of sixty (60)
days after the entry thereof; or
(j) Any non-monetary judgment, order or decree is entered against any
Obligor or any Material Subsidiary which does or would reasonably be
expected to have a Material Adverse Effect, and there shall be any period
of sixty (60) consecutive days during which a stay of enforcement of such
judgment or order, by reason of a pending appeal or otherwise, shall not be
in effect; or
(k) There occurs any Change of Control; or
(l) Any event described in the definition of "Material Adverse Effect"
set forth herein shall occur; or
(m) Any Loan Document executed by an Obligor is for any reason
partially (including with respect to future advances) or wholly revoked or
invalidated, or otherwise ceases to be in full force and effect, or any
Obligor contests in any manner the validity or enforceability thereof or
denies that it has any further liability or obligation thereunder and such
revocation, invalidation, lack of effort or lack of enforceability remains
in effect for a period of twenty-one (21) days or more;
(n) either (i) any provision of any Collateral Document shall for any
reason cease to be valid and binding on or enforceable against the Obligor
party thereto or any such Obligor shall so state in writing or bring an
action to limit its obligations or liabilities thereunder; or (ii) any
Collateral Document shall for any reason (other than pursuant to the terms
thereof) cease to create a valid security interest in the Collateral
purported to be covered thereby or such security interest shall for any
reason cease to be a perfected and first priority security interest subject
only to Permitted Liens and such condition remains in effect for twenty-one
(21) days; or
(o) Any Subordination Agreement or the subordination provisions of any
agreement or instrument governing any other Subordinated Debt is for any
reason revoked or invalidated, or otherwise cease to be in full force and
effect, or any Person party thereto contests in any manner the validity or
enforceability thereof or denies that it has any further liability or
obligation thereunder, or the Indebtedness hereunder is for any reason
subordinated or does not have the priority contemplated by this Agreement
or the Subordination Agreement or such subordination provisions.
X.2 Rememdies. If any Event of Default occurs, the U.S. Agent shall,
at the request of, or may, with the consent of, the Majority Lenders,
(a) declare the Commitment of each Lender to make Loans and any
obligation of the Issuing Bank to Issue Letters of Credit to be terminated,
whereupon such Commitments and obligation shall be terminated;
(b) declare an amount equal to the maximum aggregate amount that is or
at any time thereafter may become available for drawing under any
outstanding Letters of Credit (whether or not any beneficiary shall have
presented, or shall be entitled at such time to present, the drafts or
other documents required to draw under such Letters of Credit) to be
immediately due and payable, and declare the unpaid principal amount of all
outstanding Loans, all interest accrued and unpaid thereon, and all other
amounts owing or payable hereunder or under any other Loan Document to be
immediately due and payable, without presentment, demand, protest or other
notice of any kind, all of which are hereby expressly waived by the
Borrower; and
(c) exercise on behalf of itself, the Issuing Bank or the Lenders all
rights and remedies available to it, the Collateral Agents, the Issuing
Bank or the Lenders under the Loan Documents or applicable law;
provided, however, that upon the occurrence of any event specified in
Subsection (y) or of Section 8.1, with respect to either Borrower, the
obligation of each Lender to make Loans and any obligation of the Issuing
Bank to Issue Letters of Credit shall automatically terminate and the
unpaid principal amount of all outstanding Loans and all interest and other
amounts as aforesaid shall automatically become due and payable without
further act of the Agent, the Issuing Bank or any Lender.
X.3 Specified Swap Contract Remedies. Notwithstanding any other
provision of this Article X, and in addition thereto, each Swap Provider
shall have the right, with prior notice to the U.S. Agent, but without the
approval or consent of the U.S. Agent or the other Lenders, with respect to
any Specified Swap Contract of such Swap Provider, (a) to declare an event
of default, termination event or other similar event thereunder and to
create an Early Termination Date, (b) to determine net termination amounts
in accordance with the terms of such Specified Swap Contracts and to
set-off amounts between Specified Swap Contracts, and (c) to prosecute any
legal action against the Obligor party thereto to enforce net amounts owing
to such Swap Provider.
X.4 Rights not Exclusive. The rights provided for in this Agreement
and the other Loan Documents are cumulative and are not exclusive of any
other rights, powers, privileges or remedies provided by law or in equity,
or under any other instrument, document or agreement now existing or
hereafter arising.
ARTICLE XI.
THE AGENT
XI.1 Appointment and Authorization; "Agent" and "Issuing Bank"
(a) Each Lender, the Overdraft Bank, each Issuing Bank and each
Collateral Agent hereby irrevocably (subject to Section 11.9) appoints,
designates and authorizes the Agent to take such action on its behalf under
the provisions of this Agreement and each other Loan Document and to
exercise such powers and perform such duties as are expressly delegated to
it by the terms of this Agreement or any other Loan Document, together with
such powers as are reasonably incidental thereto. Notwithstanding any
provision to the contrary contained elsewhere in this Agreement or in any
other Loan Document, the Agent shall not have any duties or
responsibilities, except those expressly set forth herein, nor shall the
Agent have or be deemed to have any fiduciary relationship with any Lender,
and no implied covenants, functions, responsibilities, duties, obligations
or liabilities shall be read into this Agreement or any other Loan Document
or otherwise exist against the Agent. Without limiting the generality of
the foregoing sentence, the use of the term "agent" in this Agreement with
reference to the Agent is not intended to connote any fiduciary or other
implied (or express) obligations arising under agency doctrine of any
applicable law. Instead, such term is used merely as a matter of market
custom, and is intended to create or reflect only an administrative
relationship between independent contracting parties.
(b) The Issuing Bank shall act on behalf of the Lenders with respect
to any Letters of Credit Issued by it and the documents associated
therewith until such time and except for so long as the Agent may agree at
the request of the Majority Lenders to act for such Issuing Bank with
respect thereto; provided, however, that the Issuing Bank shall have all of
the benefits and immunities (i) provided to the Agent in this Article XI
with respect to any acts taken or omissions suffered by the Issuing Bank in
connection with Letters of Credit Issued by it or proposed to be Issued by
it and the application and agreements for letters of credit pertaining to
the Letters of Credit as fully as if the term "Agent", as used in this
Article XI, included the Issuing Bank with respect to such acts or
omissions, and (ii) as additionally provided in this Agreement with respect
to the Issuing Bank.
X1.2 Delegation of Duties. The Agent may execute any of its duties
under this Agreement or any other Loan Document by or through agents,
employees or attorneys-in-fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties. The Agent shall not be
responsible for the negligence or misconduct of any agent or
attorney-in-fact that it selects with reasonable care.
XI.3 Liability of Agent. None of the Agent-Related Persons shall (i)
be liable for any action taken or omitted to be taken by any of them under
or in connection with this Agreement or any other Loan Document or the
transactions contemplated hereby (except for its own gross negligence or
willful misconduct as determined by a final non-appealable order of a court
of competent jurisdiction), or (ii) be responsible in any manner to any of
the Lenders for any recital, statement, representation or warranty made by
either Borrower or any Subsidiary or Affiliate of either Borrower, or any
officer thereof, contained in this Agreement or in any other Loan Document,
or in any certificate, report, statement or other document referred to or
provided for in, or received by the Agent under or in connection with, this
Agreement or any other Loan Document, or for the value of or title to any
Collateral, or the validity, effectiveness, genuineness, enforceability or
sufficiency of this Agreement or any other Loan Document, or for any
failure of either Borrower or any other party to any Loan Document to
perform its obligations hereunder or thereunder. No Agent-Related Person
shall be under any obligation to any Lender to ascertain or to inquire as
to the observance or performance of any of the agreements contained in, or
conditions of, this Agreement or any other Loan Document, or to inspect the
properties, books or records of either Borrower or any Guarantor.
XI.4 Reliance by Agent
(a) The Agent shall be entitled to rely, and shall be fully protected
in relying, upon any writing, resolution, notice, consent, certificate,
affidavit, letter, telegram, facsimile, telex or telephone message,
statement or other document or conversation believed by it to be genuine
and correct and to have been signed, sent or made by the proper Person or
Persons, and upon advice and statements of legal counsel (including counsel
to the Borrowers), independent accountants and other experts selected by
the Agent. The Agent shall be fully justified in failing or refusing to
take any action under this Agreement or any other Loan Document unless it
shall first receive such advice or concurrence of the Majority Lenders as
it deems appropriate and, if it so requests, 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 Agent shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement or any other
Loan Document in accordance with a request or consent of the Majority
Lenders and such request and any action taken or failure to act pursuant
thereto shall be binding upon all of the Lenders.
(b) For purposes of determining compliance with the conditions
specified in Section 5.1, each Lender that has executed this Agreement
shall be deemed to have consented to, approved or accepted or to be
satisfied with, each document or other matter either sent by the Agent to
such Lender for consent, approval, acceptance or satisfaction, or required
thereunder to be consented to or approved by or acceptable or satisfactory
to the Lender.
XI.5 Notice of Default. The Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default,
except with respect to defaults in the payment of principal, interest and
fees required to be paid to the Agent for the account of the Lenders,
unless the Agent shall have received written notice from a Lender or the
Borrowers' Representative referring to this Agreement, describing such
Default or Event of Default and stating that such notice is a "notice of
default". The Agent will notify the Lenders of its receipt of any such
notice, and will notify the Borrowers' Representative if such notice is
given by a Lender. The Agent shall take such action with respect to such
Default or Event of Default as may be requested by the Majority Lenders in
accordance with Article XII; provided, however, that unless and until the
Agent has received any such request, the 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 or
in the best interest of the Lenders.
XI.6 Credit Decision. Each Lender acknowledges that none of the
Agent-Related Persons has made any representation or warranty to it, and
that no act by the Agent hereinafter taken, including any review of the
affairs of the Borrowers shall be deemed to constitute any representation
or warranty by any Agent-Related Person to any Lender. Each Lender
represents to the Agent that it has, independently and without reliance
upon any Agent-Related Person and based on such documents and information
as it has deemed appropriate, made its own appraisal of and investigation
into the business, prospects, operations, property, financial and other
condition and creditworthiness of the Borrowers, the value of and title to
any Collateral, and all applicable bank regulatory laws relating to the
transactions contemplated hereby, and made its own decision to enter into
this Agreement and to extend credit to the Borrowers hereunder. Each Lender
also represents that it will, independently and without reliance upon any
Agent-Related Person 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
investigations as it deems necessary to inform itself as to the business,
prospects, operations, property, financial and other condition and
creditworthiness of the Borrowers. Except for notices, reports and other
documents expressly herein required to be furnished to the Lenders by the
Agent, the Agent shall not have any duty or responsibility to provide any
Lender with any credit or other information concerning the business,
prospects, operations, property, financial and other condition or
creditworthiness of the Borrowers which may come into the possession of any
of the Agent-Related Persons.
XI.7 Indemnification of Agent. Whether or not the transactions
contemplated hereby are consummated, the Lenders shall indemnify upon
demand the Agent-Related Persons (to the extent not reimbursed by or on
behalf of the Borrowers and without limiting the obligation of the
Borrowers to do so), pro rata, from and against any and all Indemnified
Obligations; provided, however, that no Lender shall be liable for the
payment to the Agent-Related Persons of any portion of such Indemnified
Obligations resulting solely from such Person's gross negligence or willful
misconduct as determined by a final non-appealable order of a court of
competent jurisdiction. Without limitation of the foregoing, each Lender
shall reimburse the Agent upon demand for its ratable share of any costs or
out-of-pocket expenses (including Attorney Costs) incurred by the Agent in
connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement, any other Loan Document, or any
document contemplated by or referred to herein, to the extent that the
Agent is not reimbursed for such expenses by or on behalf of the Borrowers.
The undertaking in this Section shall survive the payment of all
Obligations hereunder and the resignation or replacement of the Agent.
XI.8 Agent in Individual Capacity.. BOAFSB and its Affiliates may make
loans to, issue letters of credit for the account of, accept deposits from,
acquire equity interests in and generally engage in any kind of banking,
trust, financial advisory, underwriting or other business with LCGI and its
Subsidiaries and Affiliates as though BOAFSB were not the Agent hereunder
and without notice to or consent of the Lenders. The Lenders acknowledge
that, pursuant to such activities, BOAFSB or its Affiliates may receive
information regarding LCGI or its Affiliates (including information that
may be subject to confidentiality obligations in favor of LCGI or such
Subsidiary) and acknowledge that the Agent shall be under no obligation to
provide such information to them.
XI.9 Successor Agent; Successor Issuing Bank
(a) The Agent may and at the request of the Majority Lenders shall,
resign as Agent upon thirty (30) days' notice to the Lenders and the
Borrowers' Representative. If the Agent resigns under this Agreement, the
Majority Lenders shall appoint from among the Lenders a successor agent for
the Lenders which successor agent shall be approved by the Borrowers'
Representative. If no successor agent is appointed prior to the effective
date of the resignation of the Agent, the Agent may appoint, after
consulting with the Lenders and the Borrowers' Representative, a successor
agent from among the Lenders. Upon the acceptance of its appointment as
successor agent hereunder, such successor agent shall succeed to all the
rights, powers and duties of the retiring Agent and the term "Agent" shall
mean such successor agent and the retiring Agent's appointment, powers and
duties as Agent shall be terminated. After any retiring Agent's resignation
hereunder as Agent, the provisions of this Article XI and Sections 12.4 and
12.5 shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was Agent under this Agreement. If no successor agent
has accepted appointment as Agent by the date which is thirty (30) days
following a retiring Agent's notice of resignation, the retiring Agent's
resignation shall nevertheless thereupon become effective and the Lenders
shall perform all of the duties of the Agent hereunder until such time, if
any, as the Majority Lenders appoint a successor agent as provided for
above.
(b) The Issuing Bank may, and at the request of the Majority Lenders
shall, resign as Issuing Bank upon thirty (30) days' notice to the Lenders
and the Borrowers' Representative. If the Issuing Bank resigns under this
Agreement, the Majority Lenders shall appoint from among the Lenders a
successor issuing bank for the Lenders. If no successor issuing bank is
appointed prior to the effective date of the resignation of the Issuing
Bank, the Issuing Bank may appoint, after consulting with the Lenders and
the Borrowers' Representative, a successor issuing bank from among the
Lenders. Upon the acceptance of its appointment as successor issuing bank
hereunder, such successor issuing bank shall succeed to all the rights,
powers and duties of the retiring Issuing Bank and the term "Issuing Bank"
shall mean such successor issuing bank and the retiring Issuing Bank's
appointment, powers and duties as Issuing Bank shall be terminated. After
any retiring Issuing Bank's resignation hereunder as Issuing Bank, the
provisions of Article III and Sections 11.7, 12.4 and 12.5 shall inure to
its benefit as to any actions taken or omitted to be taken by it while it
was Issuing Bank under this Agreement. If no successor issuing bank has
accepted appointment as Issuing Bank by the date which is thirty (30) days
following a retiring Issuing Bank's notice of resignation, the retiring
Issuing Bank's resignation shall nevertheless thereupon become effective
and the Lenders shall perform all of the duties of the Issuing Bank
hereunder until such time, if any, as the Majority Lenders appoint a
successor issuing bank as provided for above.
XI.10 Withholding Tax
(a) If any Lender is a "foreign corporation, partnership or trust"
within the meaning of the Code and such Lender claims exemption from, or a
reduction of, U.S. withholding tax under Sections 1441 or 1442 of the Code,
such Lender agrees with and in favor of the Agent, to deliver to the Agent
and the Borrowers' Representative:
(i) if such Lender claims an exemption from, or a reduction of,
withholding tax under a United States tax treaty, two properly
completed and executed copies of IRS Form 1001 before the payment of
any interest in the first calendar year and before the payment of any
interest in each third succeeding calendar year during which interest
may be paid under this Agreement;
(ii) if such Lender claims that interest paid under this
Agreement is exempt from United States withholding tax because it is
effectively connected with a United States trade or business of such
Lender, two properly completed and executed copies of IRS Form 4224
before the payment of any interest is due in the first taxable year of
such Lender and in each succeeding taxable year of such Lender during
which interest may be paid under this Agreement; and
(iii) such other form or forms as may be required under the Code
or other laws of the United States as a condition to exemption from,
or reduction of, United States withholding tax.
Such Lender agrees to promptly notify the Agent of any change in
circumstances which would modify or render invalid any claimed exemption or
reduction.
(b) If any Lender claims exemption from, or reduction of, withholding
tax under a United States tax treaty by providing IRS Form 1001 and such
Lender sells, assigns, grants a participation in, or otherwise transfers
all or part of the Obligations to such Lender, such Lender agrees to notify
the Agent and the Borrowers' Representative of the percentage amount in
which it is no longer the beneficial owner of Obligations to such Lender.
To the extent of such percentage amount, the Agent will treat such Lender's
IRS Form 1001 as no longer valid.
(c) If any Lender claiming exemption from United States withholding
tax by filing IRS Form 4224 with the Agent sells, assigns, grants a
participation in, or otherwise transfers all or part of the Obligations to
such Lender, such Lender agrees to undertake sole responsibility for
complying with the withholding tax requirements imposed by Sections 1441
and 1442 of the Code.
(d) If any Lender is entitled to a reduction in the applicable
withholding tax, the Agent may withhold from any interest payment to such
Lender an amount equivalent to the applicable withholding tax after taking
into account such reduction. However, if the forms or other documentation
required by Subsection (a) of this Section are not delivered to the Agent,
then the Agent may withhold from any interest payment to such Lender not
providing such forms or other documentation an amount equivalent to the
applicable withholding tax imposed by Sections 1441 and 1442 of the Code,
without reduction.
(e) If the IRS or any other Governmental Authority of the United
States or other jurisdiction asserts a claim that the Agent did not
properly withhold tax from amounts paid to or for the account of any Lender
(because the appropriate form was not delivered or was not properly
executed, or because such Lender failed to notify the Agent of a change in
circumstances which rendered the exemption from, or reduction of,
withholding tax ineffective, or for any other reason) such Lender shall
indemnify the Agent fully for all amounts paid, directly or indirectly, by
the Agent as tax or otherwise, including penalties and interest, and
including any taxes imposed by any jurisdiction on the amounts payable to
the Agent under this Section, together with all costs and expenses
(including Attorney Costs) . The obligation of the Lenders under this
Subsection shall survive the payment of all Obligations and the resignation
or replacement of the Agent.
XI.11 Collateral Matters
(a) The Agents and the Collateral Agents are authorized on behalf of
the Issuing Bank and all the Lenders, without the necessity of any notice
to or further consent from the Issuing Bank or the Lenders, from time to
time to take any action with respect to any Collateral or the Collateral
Documents which may be necessary to perfect and maintain perfected the
security interest in and Liens upon the Collateral granted pursuant to the
Collateral Documents.
(b) The Lenders and the Issuing Bank irrevocably authorize the Agent
and the Collateral Agents, at their respective option and in their
respective discretion, to release any Lien granted to or held by the Agent
or such Collateral Agent upon any Collateral (i) upon termination of the
Commitment and payment in full of all Loans and all other Obligations known
to the Agent and payable under this Agreement or any other Loan Document;
(ii) constituting property sold or to be sold or disposed of as part of or
in connection with any disposition permitted hereunder; (iii) constituting
property in which no Borrower owned an interest at the time the Lien was
granted or at any time thereafter; (iv) constituting property leased to a
Borrower under a lease which has expired or been terminated in a
transaction permitted under this Agreement or is about to expire and which
has not been, and is not intended by such Borrower to be, renewed or
extended; (v) consisting of an instrument evidencing Indebtedness or other
debt instrument, if the indebtedness evidenced thereby has been paid in
full; or (vi) if approved, authorized or ratified in writing by the
Majority Lenders or all the Lenders, as the case may be, as provided in
Section 12.1(f). Upon request by the Agent at any time, the Lenders will
confirm in writing the Agent's or the Collateral Agent's authority to
release particular types or items of Collateral pursuant to this Subsection
11.11(b), provided that the absence of any such confirmation for whatever
reason shall not affect the Agent's or the Collateral Agent's rights under
this Section 11.11.
(c) Each reference herein to any right granted to, benefit conferred
upon or power exercisable by the "Agent" shall be a reference to the Agent
for itself and for the ratable benefit of the Issuing Bank and the Lenders,
and each action taken or right exercised hereunder shall be deemed to have
been so taken or exercised by the Agent for itself and for the ratable
benefit of the Issuing Bank and the Lenders.
(d) Whenever the word "Agent" is used in this Article 11, such term
shall refer to each Agent.
ARTICLE XII.
MISCELLANEOUS
XII.1 Amendments and Waivers. No amendment or waiver of any provision
of this Agreement or any other Loan Document, and no consent with respect
to any departure by any Obligor therefrom, shall be effective unless the
same shall be in writing and signed by the Majority Lenders (or by the U.S.
Agent at the written request of the Majority Lenders) and the Borrowers'
Representative and acknowledged by the U.S. Agent, and then any such waiver
or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided, however, that no such waiver,
amendment, or consent shall, unless in writing and signed by all the
Lenders and the Borrowers' Representative and acknowledged by the U.S.
Agent, do any of the following:
(a) increase or extend the Commitment of any Lender;
(b) postpone or delay any date fixed by this Agreement or any other
Loan Document for any payment of principal, interest, fees or other amounts
due to the Lenders (or any of them) hereunder or under any other Loan
Document;
(c) reduce the principal of, or the rate of interest specified herein
on any Loan, or any fees or other amounts payable hereunder or under any
other Loan Document;
(d) increase the amount of the Commitment or change the Commitment
Percentages or of the aggregate unpaid principal amount of the Loans which
is required for the Lenders or any of them to take any action hereunder; or
(e) amend the definition of "Majority Lenders", this Section or any
provision herein providing for consent or other action by all Lenders; or
(f) discharge any Obligor, or release any portion of the Collateral
except as otherwise may be provided herein or in the Collateral Document or
except where the consent of the Majority Lenders only is specifically
provided for;
and, provided, further, that (i) no amendment, waiver or consent
shall, unless in writing and signed by the Issuing Bank in addition to the
Majority Lenders or all the Lenders, as the case may be, affect the rights
or duties of the Issuing Bank under this Agreement or any L/C-Related
Document relating to any Letter of Credit Issued or to be Issued by it,
(ii) no amendment, waiver or consent shall, unless in writing and signed by
the Overdraft Bank, affect its rights or duties in respect of the Overdraft
Facility; (iii) no amendment, waiver or consent shall, unless in writing
and signed by the affected Agent in addition to the Majority Lenders or all
the Lenders, as the case may be, affect the rights or duties of such Agent
under this Agreement or any other Loan Document, and (iv) the Fee Letter
may be amended, or rights or privileges thereunder waived, in a writing
executed by the parties thereto.
XII.2 Notices
(a) All notices, requests, consents, approvals, waivers and other
communications shall be in writing (including, unless the context expressly
otherwise provides, by facsimile transmission) and mailed, faxed or
delivered, to the address or facsimile number specified for notices on
Rider 3; or, as directed to the Borrowers' Representative or either Agent,
to such other address as shall be designated by such party in a written
notice to the other parties, and as directed to any other party, at such
other address as shall be designated by such party in a written notice to
the Borrowers' Representative and such Agent.
(b) All such notices, requests and communications shall, when
transmitted by overnight delivery, or faxed, be effective when delivered
for overnight (next-day) delivery, or transmitted in legible form by
facsimile machine, respectively, or if mailed, upon the third Business Day
after the date deposited into the U.S. mail (certified mail or registered
mail, return receipt requested), or if delivered, upon delivery; except
that notices pursuant to Article II, IV or XI to an Agent shall not be
effective until actually received by such Agent, and notices pursuant to
Article III to the Issuing Bank or the Overdraft Bank shall not be
effective until actually received by the Issuing Bank or the Overdraft
Bank, as the case may be, at the respective address specified for the
"Issuing Bank" and the "Overdraft Bank" on the applicable signature page
hereof.
(c) Any agreement of the Agent and the Lenders herein to receive
certain notices by telephone or facsimile is solely for the convenience and
at the request of the Borrowers. Each Agent and the Lenders shall be
entitled to rely on the authority of Borrowers' Representative or any other
Person at any time purporting to be a Person authorized by the Borrowers to
give such notice and the Agent and the Lenders shall not have any liability
to the Borrower or other Person on account of any action taken or not taken
by the Agent or the Lenders in reliance upon such telephonic or facsimile
notice. The obligation of the Borrowers to repay the Loans and L/C
Obligations shall not be affected in any way or to any extent by any
failure by the Agent and the Lenders to receive written confirmation of any
telephonic or facsimile notice.
XII.3 No Waiver; Cumulative Remedies. No failure to exercise and no
delay in exercising, on the part of either Agent, the Issuing Bank or any
Lender, any right, remedy, power or privilege hereunder, shall operate as a
waiver thereof; nor shall any single or partial exercise of any right,
remedy, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege.
XII.4 The Obligors shall:
(a) whether or not the transactions contemplated hereby are
consummated, pay or reimburse each Obligee within five (5) Business Days
after demand for all reasonable costs and expenses incurred by it in
connection with the development, preparation, delivery, administration and
execution of, and any amendment, supplement, waiver or modification to (in
each case, whether or not consummated), this Agreement, any Loan Document
and any other documents prepared in connection herewith or therewith, and
the consummation of the transactions contemplated hereby and thereby,
including reasonable Attorney Costs, not to exceed, however, Fifty Thousand
Dollars ($50,000) in legal fees as to all Obligees collectively; and
(b) pay or reimburse each Obligee within five (5) Business Days after
demand for all reasonable costs and expenses (including Attorney Costs)
incurred by them in connection with the (i) custody, preservation, use or
operation of, or the sale of, collection from, or other realization upon,
any of the Collateral, and (ii) exercise, enforcement, attempted
enforcement, or preservation of any rights or remedies under this Agreement
or any other Loan Document during the existence of an Event of Default or
after acceleration of the Loans (including in connection with any "workout"
or restructuring regarding the Loans, and including in any Insolvency
Proceeding or appellate proceeding); and
(c) pay or reimburse each Collateral Agent within five (5) Business
Days after demand for all reasonable appraisal (including the allocated
cost of internal appraisal services), audit, environmental inspection and
review (including the allocated cost of such internal services), search and
filing costs, fees and expenses, incurred or sustained by such Collateral
Agent in connection with the matters referred to under Subsections (a) and
(b) of this Section.
XII.5 Obligors' Indemnification
(a) Whether or not the transactions contemplated hereby are
consummated, the Obligors shall indemnify, defend and hold each Obligee and
each of its respective officers, directors, employees, counsel, agents and
attorneys-in-fact (each, an "Indemnified Person") harmless from and against
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, charges, expenses and disbursements (including
Attorney Costs) of any kind or nature whatsoever which may at any time
(including at any time following repayment of the Loans and termination of
any Foreign Exchange Agreements, the termination of any Swap Contracts, the
termination of any Letters of Credit and the termination, resignation or
replacement of the Agent or replacement of any Lender) be imposed on,
incurred by or asserted against any such Person in any way relating to or
arising out of this Agreement or any document contemplated by or referred
to herein, or the transactions contemplated hereby, or any action taken or
omitted by any such Person under or in connection with any of the
foregoing, including with respect to any investigation, litigation or
proceeding (including any Insolvency Proceeding or appellate proceeding)
related to or arising out of this Agreement or the Foreign Exchange
Agreements, the Swap Contracts or the Loans or Letters of Credit or the use
of the proceeds thereof, whether or not any Indemnified Person is a party
thereto (all the foregoing, collectively, the "Indemnified Obligations");
provided, that the Obligors shall have no obligation hereunder to any
Indemnified Person with respect to Indemnified Obligations resulting from
the gross negligence or willful misconduct of such Indemnified Person as
determined by a final non-appealable order of a court of competent
jurisdiction. The agreements in this Section shall survive payment of all
other Obligations.
(b) The Obligors shall indemnify, defend and hold harmless each
Indemnified Person, from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, charges,
expenses or disbursements (including Attorney Costs and the allocated cost
of internal environmental audit or review services), which may be incurred
by or asserted against such Indemnified Person in connection with or
arising out of any pending or threatened investigation, litigation or
proceeding, or any action taken by any Person, with respect to any
Environmental Claim. No action taken by legal counsel chosen by the Agent
or any Lender in defending against any such investigation, litigation or
proceeding or requested remedial, removal or response action shall vitiate
or any way impair the Obligors' obligation and duty hereunder to indemnify
and hold harmless the Agent and each Lender. In no event shall any site
visit, observation, or testing by the Agent or any Lender (or any
contractee of the Agent or any Lender) be deemed a representation or
warranty that Hazardous Materials are or are not present in, on, or under,
the site, or that there has been or shall be compliance with any
Environmental Law. Neither the Obligors nor any other Person is entitled to
rely on any site visit, observation, or testing by the Agent or any Lender.
No Obligee owes any duty of care to protect the Obligors or any other
Person against, or to inform the Obligors or any other party of, any
Hazardous Materials or any other adverse condition affecting any site or
property. No Obligee shall be obligated to disclose to the Obligors or any
other Person any report or findings made as a result of, or in connection
with, any site visit, observation, or testing by such Obligee.
(c) The obligations in this Section shall survive payment of all other
Obligations. At the election of any Indemnified Person, the Obligors shall
defend such Indemnified Person using legal counsel satisfactory to such
Indemnified Person in such Person's sole discretion, at the sole cost and
expense of the Obligors. All amounts owing under this Section shall be paid
within thirty (30) days after demand.
XII.6 Marshalling; Payments Set Aside. No Obligee shall be under any
obligation to xxxxxxxx any assets in favor of the Obligors or any other
Person or against or in payment of any or all of the Obligations. To the
extent that the Obligors make a payment to any Obligee, or any Obligee
exercise its right of set-off, and such payment or the proceeds of such
set-off or any part thereof are subsequently invalidated, declared to be
fraudulent or preferential, set aside or required (including pursuant to
any settlement entered into by such Obligee in its discretion) to be repaid
to a trustee, receiver or any other party, in connection with any
Insolvency Proceeding or otherwise, then (a) to the extent of such recovery
the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not
been made or such set-off had not occurred, and (b) each Lender severally
agrees to pay to the Agent upon demand its pro rata share of any amount so
recovered from or repaid by the Agent.
XII.7 Successors and Assigns. The provisions of this Agreement shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns, except that none of the Obligors may not
assign or transfer any of their rights or obligations under this Agreement
without the prior written consent of the Agent and each Lender.
X.II.8 Assignments and Participations
(a) Any Lender may assign and delegate to one or more Eligible
Assignees which are either (a) Affiliates of such Lender, organized in the
same country as Lender, or (b) otherwise approved in writing by the U.S.
Agent and, unless an Event of Default then exists, LCGI, such approval not
to be unreasonably withheld, conditional or delayed (each an "Assignee")
all, or any ratable part of all, of the Loans, the Revolving Loan
Commitment, the CAPEX Loan Commitment, the L/C Obligations and the other
rights and obligations of such Lender hereunder, in a minimum amount
(without duplication) of Ten Million Dollars ($10,000,000) or, as
appropriate, the Equivalent Amount in Pounds; provided, however, that,
immediately subsequent to such assignment, the selling Lender's ratable
share of all such Loans and Commitments (without duplication) either has
been reduced to zero; i.e., its entire share has been sold, or equals at
least Ten Million Dollars ($10,000,000); and, provided, further, that the
Obligors and the Agent may continue to deal solely and directly with such
Lender in connection with the interest so assigned to an Assignee until (i)
written notice of such assignment, together with payment instructions,
addresses and related information with respect to the Assignee, shall have
been given to the Obligors and the Agent by such Lender and the Assignee;
(ii) such Lender and its Assignee shall have delivered to the Obligors and
the Agent an Assignment and Acceptance in the form of Exhibit P
("Assignment and Acceptance"), together with any Note or Notes subject to
such assignment and (iii) the assignor Lender or Assignee has paid to the
Agent a processing fee in the amount of Five Thousand Dollars ($5,000).
(b) From and after the date that the Agent notifies the assignor
Lender that it has received (and provided its consent with respect to) an
executed Assignment and Acceptance and payment of the above-referenced
processing fee, (i) the Assignee thereunder shall be a party hereto and, to
the extent that rights and obligations hereunder have been assigned to it
pursuant to such Assignment and Acceptance, shall have the rights and
obligations of a Lender under the Loan Documents, and (ii) the assignor
Lender shall, to the extent that rights and obligations hereunder and under
the other Loan Documents have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights and be released from its
obligations under the Loan Documents.
(c) Within five (5) Business Days after its receipt of notice by the
Agent that it has received an executed Assignment and Acceptance and
payment of the processing fee, (and provided that it consents to such
assignment in accordance with Subsection 11.8(a)), the Borrower shall
execute and deliver to the Agent, new Notes evidencing such Assignee's
assigned Loans and Commitment and, if the assignor Lender has retained a
portion of its Loans and its Commitment, replacement Notes in the principal
amount of the Loans retained by the assignor Lender (such Notes to be in
exchange for, but not in payment of, the Notes held by such Lender).
Immediately upon each Assignee's making its processing fee payment under
the Assignment and Acceptance, this Agreement shall be deemed to be amended
to the extent, but only to the extent, necessary to reflect the addition of
the Assignee and the resulting adjustment of the Revolving Commitments
arising therefrom. The Commitment Percentage allocated to each Assignee
shall reduce the Commitment Percentage of the assigning Lender pro tanto.
(d) Any Lender may at any time sell to one or more commercial Lenders
or other Persons not Affiliates of the Borrower (a "Participant")
participating interests in any Loans, the Commitment of that Lender and the
other interests of that Lender (the "originating Lender") hereunder and
under the other Loan Documents; provided, however, that (i) the Originating
Lender's obligations under this Agreement shall remain unchanged, (ii) the
Originating Lender shall remain solely responsible for the performance of
such obligations, (iii) the Borrower and the Agent shall continue to deal
solely and directly with the originating Lender in connection with the
Originating Lender's rights and obligations under this Agreement and the
other Loan Documents, and (iv) no Lender shall transfer or grant any
participating interest under which the Participant has rights to approve
any amendment to, or any consent or waiver with respect to, this Agreement
or any other Loan Document, except to the extent such amendment, consent or
waiver would require unanimous consent of the Lenders as described in the
first proviso to Section 12.1. In the case of any such participation, the
Participant shall not have any rights under this Agreement, or any of the
other Loan Documents, and all amounts payable by the Borrower hereunder
shall be determined as if such Lender had not sold such participation;
except that, if amounts outstanding under this Agreement are due and
unpaid, or shall have been declared or shall have become due and payable
upon the occurrence of an Event of Default, each Participant shall be
deemed to have the right of set-off in respect of its participating
interest in amounts owing under this Agreement to the same extent as if the
amount of its participating interest were owing directly to it as a Lender
under this Agreement.
(e) Notwithstanding any other provision in this Agreement, any Lender
may at any time create a security interest in, or pledge, all or any
portion of its rights under and interest in this Agreement and the Note
held by it in favor of any Federal Reserve Lender in accordance with
Regulation A of the FRB or U.S. Treasury Regulation 31 CFR Section 203.14,
and such Federal Reserve Lender may enforce such pledge or security
interest in any manner permitted under applicable law.
XII.9 Confidentiality. Each Lender agrees to take and to cause its
Affiliates to take normal and reasonable precautions and exercise due care
to maintain the confidentiality of all information identified as
"confidential" or "secret" by the Borrower and provided to it by the
Obligors, or by the Agent on such Obligor's behalf, under this Agreement or
any other Loan Document, and neither it nor any of its Affiliates shall use
any such information other than in connection with or in enforcement of
this Agreement and the other Loan Documents or in connection with other
business now or hereafter existing or contemplated with the Obligors or any
Subsidiary; except to the extent such information (i) was or becomes
generally available to the public other than as a result of disclosure by
the Lender, or (ii) was or becomes available on a non-confidential basis
from a source other than the Obligor, provided that such source is not
bound by a confidentiality agreement with the Obligor known to the Lender;
provided, however, that any Lender may disclose such information (A) at the
request or pursuant to any requirement of any Governmental Authority to
which the Lender is subject or in connection with an examination of such
Lender by any such authority; (B) pursuant to subpoena or other court
process; (C) when required to do so in accordance with the provisions of
any applicable Requirement of Law; (D) to the extent reasonably required in
connection with any litigation or proceeding to which the Agent, any Lender
or their respective Affiliates may be party; (E) to the extent reasonably
required in connection with the exercise of any remedy hereunder or under
any other Loan Document; (F) to such Lender's independent auditors and
other professional advisors; (G) to any Participant or Assignee, actual or
potential, provided that such Person agrees in writing to keep such
information confidential to the same extent required of the Lenders
hereunder; (H) as to any Lender or its Affiliate, as expressly permitted
under the terms of any other document or agreement regarding
confidentiality to which the Obligor is party or is deemed party with such
Lender or such Affiliate; and (I) to its Affiliates.
XII.10 Set-Off. In addition to any rights and remedies of the Lenders
provided by law, if an Event of Default exists or the Loans have been
accelerated, each Lender is authorized at any time and from time to time,
without prior notice to the Borrowers, any such notice being waived by the
Obligors to the fullest extent permitted by law, to set off and apply any
and all deposits (general or special, time or demand, provisional or final)
at any time held by, and other indebtedness at any time owing by, such
Lender to or for the credit or the account of the Obligor against any and
all Obligations owing to such Lender, now or hereafter existing,
irrespective of whether or not the Agent or such Lender shall have made
demand under this Agreement or any Loan Document and although such
Obligations may be unmatured. Each Lender agrees promptly to notify the
Borrowers' Representative and the Agent after any such set-off and
application made by such Lender; provided, however, that the failure to
give such notice shall not affect the validity of such set-off and
application.
XII.11 Automatic Debits of Fees Upon Default. With respect to any
commitment fee, arrangement fee, or other fee, or any other cost or expense
(including Attorney Costs) due and payable to the or any Lender under the
Loan Documents, the Borrower hereby irrevocably authorizes the Agent to
debit any deposit account of any Obligor with the Agent in an amount such
that the aggregate amount debited from all such deposit accounts does not
exceed such fee or other cost or expense, provided that the same is not
paid when due. If there are insufficient funds in such deposit accounts to
cover the amount of the fee or other cost or expense then due, such debits
will be reversed (in whole or in part, in the Agent's sole discretion) and
such amount not debited shall be deemed to be unpaid. No such debit under
this Section shall be deemed a set-off.
XII.12 Notification of Addresses, Lending Offices, Etc. Each Lender
and the Issuing Bank shall notify the Agent in writing of any changes in
the address to which notices to such Lender or Issuing Bank should be
directed, of addresses of any Lending Office, of payment instructions in
respect of all payments to be made to it hereunder and of such other
administrative information as the Agent shall reasonably request.
XII.13 Counterparts. This Agreement may be executed in any number of
separate counterparts, each of which, when so executed, shall be deemed an
original, and all of said counterparts taken together shall be deemed to
constitute but one and the same instrument.
XII.14.Severability. The illegality or unenforceability of any
provision of this Agreement or any instrument or agreement required
hereunder shall not in any way affect or impair the legality or
enforceability of the remaining provisions of this Agreement or any
instrument or agreement required hereunder.
XII.15 No Third Parties Benefited. This Agreement is made and entered
into for the sole protection and legal benefit of the Borrowers, the
Lenders, the Issuing Bank, the Agent and the Agent-Related Persons, and
their permitted successors and assigns, and no other Person shall be a
direct or indirect legal beneficiary of, or have any direct or indirect
cause of action or claim in connection with, this Agreement or any of the
other Loan Documents.
XII.16 Governing Law and Jurisdiction
(a) THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF GEORGIA; PROVIDED THAT EACH
OBLIGEE SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW OF THE UNITED
STATES.
(b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF
GEORGIA OR OF THE FEDERAL COURTS OF THE UNITED STATES SITTING IN THE STATE
OF GEORGIA AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE
OBLIGORS AND THE OBLIGEES CONSENTS, FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH FURTHER
WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OF ANY
SUCH LITIGATION BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY
NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH
JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO.
THE OBLIGORS AND THE OBLIGEES EACH FURTHER WAIVE PERSONAL SERVICE OF ANY
SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS
PERMITTED BY GEORGIA LAW.
(c) Nothing contained in this Section shall override any contrary
provision contained in any Specified Swap Contract.
XII.17 WAIVER OF JURY TRIAL. TO THE EXTENT PERMITTED BY APPLICABLE
LAW, THE OBLIGORS AND THE OBLIGEES EACH WAIVE THEIR RESPECTIVE RIGHTS TO A
TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF
OR RELATED TO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING OR OTHER
LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER
PARTY OR ANY AGENT-RELATED PERSON, PARTICIPANT OR ASSIGNEE, WHETHER WITH
RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. THE BORROWERS, THE
LENDERS, THE ISSUING BANK, AND THE AGENT EACH FURTHER AGREES THAT ANY SUCH
CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY.
WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR
RESPECTIVE RIGHTS TO A TRIAL BY JURY ARE WAIVED BY OPERATION OF THIS
SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN
WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS
AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY PROVISION HEREOF OR THEREOF.
THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS
OR MODIFICATIONS TO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS.
XII.18 Conflicts. In the event of any conflict between the terms of
this Agreement and the terms of any other Loan Document, the terms of this
Agreement shall control unless and except to the limited extend that by the
terms of such other Loan Document the terms of such other Loan Documents
shall be controlling.
XII.19 Subordinated Debt. If and to the extent that the instrument(s)
evidencing any Subordinated Debt refer to this Agreement for the terms of
subordination in respect of such Debt, then, in addition to the terms of
Section 8.6(g) in regard thereto, the following terms shall apply to, and
govern the payment of, such Subordinated Debt:
(a) All such Debt is hereby subordinated and made junior in right of
payment to the Obligations. No collateral shall be granted or obtained as
security for such Debt. For so long as any Obligations are outstanding, no
direct or indirect payment (by set-off or otherwise) shall be made or
agreed to be made on account of such Debt, or in respect of any redemption,
retirement, purchase or other acquisition of such Debt, and no accrued
interest may be paid on such Debt, if, on or prior to the date of such
payment, the holder of such Debt shall have knowledge that, or have
received written notice from the U.S. Agent that, any Default or Event of
Default exists or would occur upon or by reason of such payment being made.
(b) In the event of any Insolvency Proceeding, (i) all Obligations
shall first be indefeasibly paid in full, before any payment or
distribution shall be made in respect of such Debt; (ii) any payment or
distribution of assets of any Obligor which would otherwise (but for this
Agreement) be payable or deliverable in respect of such Debt shall be paid
or delivered directly to the Agent for application to and payment of the
Obligations in accordance with the priorities established hereby until all
Obligations shall have been indefeasibly paid in full; (iii) the holder of
such Debt agrees to cooperate with Agent's reasonable requests relating to
the collection of payments and distributions under such Debt for the
account of the Lenders; and (iv) the Agent is hereby irrevocably authorized
and empowered (in its own name or in the name of the holder of such Debt or
otherwise), but shall have no obligation, if, after demand such holder
refuses to do so, to demand, xxx for, collect and receive every payment or
distribution referred to in clause (ii) above and give acquittance therefor
and to file claims and proofs of claim and take such other action
(including, without limitation, voting) as it may deem reasonably necessary
or advisable for the exercise or enforcement of any of its rights or
interest hereunder.
(c) If any payment, distribution or security, whether in cash,
securities or other property, shall be received by the holder of such Debt
in contravention of any of the terms hereof, such payment, distribution or
security shall be received and held in trust for the benefit of, and shall
be promptly paid over and delivered and transferred to, the Agent, on
behalf of the Lenders for application to the payment of the Obligations to
the extent necessary to cause the Obligations to be indefeasibly paid in
full.
(d) Until all Obligations shall have been indefeasibly paid in full,
the holder of such Debt hereby waives any and all subrogation rights and
all other rights as to the Lenders. At such time as the Obligations have
been indefeasibly paid in full, the holder of such Debt shall be
subrogated, from and after such time, to any rights of the Lenders to
receive any further payments from or distributions of assets of any
Obligors until such Debt shall be paid in full. For purposes of such
subrogation, no payments or distributions to the Lenders of any cash,
property or securities to which the holder of such Debt would be entitled
except for the provisions of this Agreement shall, as between the Obligor
on such Debtor and its creditors (other than the Lenders) on the one hand
and the holder of such Debt on the other hand, be deemed to have been made
as a payment by the Obligors to or on account of the Obligations.
(e) For so long as the Obligations are outstanding, the holder of such
Debt shall not (i) secure, ask, demand or xxx for any payment, distribution
or the remedy in respect of this Note, (ii) commence, or join with any
other creditor in commencing any Insolvency Proceeding, or (iii) declare
any amount of such Debt to be due and payable, in each case during the
times that such holder be prohibited from receiving any payments in respect
of such Debt hereunder; provided, however, that such restrictions shall
terminate automatically upon the commencement of an Insolvency Proceeding.
(f) The provisions of this Agreement shall continue to be effective or
be reinstated, as the case may be, if at any time any payment in respect of
the Obligations is rescinded or must otherwise be returned by the Lenders
in the event of any Insolvency Proceeding, all as though such payment had
not been made.
(g) For so long as the Obligations are outstanding, the holder of such
Debt agrees not to accept prepayment of any amounts outstanding under such
Debtor, and to the extent any Obligor delivered any such prepayments to
such holder, it agrees to hold such amounts in trust for, and to deliver
such amounts promptly to Agent, on behalf of the Lenders.
XII.20 Entire Agreement. This Agreement, together with the other Loan
Documents, embodies the entire agreement and understanding among the
Obligors and the Obligees, and supersedes all prior or contemporaneous
agreements and understandings of such Persons, verbal or written, relating
to the subject matter hereof and thereof.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed and delivered and have hereunto affixed their respective
seals by, through and in the presence of their respective proper and duly
authorized officers as of the day and year first above written.
---------------------------------- ---------------------------------------------
U.S. Agent: BANK OF AMERICA, FSB (SEAL)
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
By:
Title:
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
U.S. Lender: BANK OF AMERICA, FSB (SEAL)
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
By:
Title:
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
Issuing Banks (U.S.): BANK OF AMERICA NATIONAL TRUST AND SAVINGS
ASSOCIATION (SEAL)
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
By:
Title:
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
International Lender: BANK OF AMERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION, acting through its
London Branch (SEAL)
By:
Title:
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
International Agent: BANK OF AMERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION, acting through its
London Branch (SEAL)
By:
Title:
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
Issuing Bank (International): BANK OF AMERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION, acting through its
London Branch (SEAL)
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
By:
Title:
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
Overdraft Bank: BANK OF AMERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION, acting through its
London Branch (SEAL)
By:
Title:
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
Borrower's Representative and LAW COMPANIES GROUP, INC. SEAL)
Guarantor:
By:
Title:
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
Borrowers: LAW ENGINEERING AND ENVIRONMENTAL
SERVICES, INC. (SEAL)
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
By:
Title:
Attest:
Title:
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
XXXX LTD. (SEAL)
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
By:
Title:
Attest:
Title:
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
Additional Guarantors: LAW ENGINEERING CONSULTANTS, INC. (SEAL)
By:
Title:
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
LAW INTERNATIONAL, INC. (SEAL)
By:
Title:
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
XXXX INTERNATIONAL HOLDINGS, INC. (SEAL)
By:
Title:
--------------------------------- ---------------------------------------------
--------------------------------- ---------------------------------------------
XXXX HOLDINGS LTD. (SEAL)
By:
Title:
--------------------------------- ---------------------------------------------
Rider 1
U.S. Agent's Payment Office:
International Agent's Payment Office:
Bank of America, FSB
0000 Xxxxxxxxx Xxxxxx
Xxxxx 0000
Xxxxxxx, XX 00000
Attn: Xxxxxx X. Xxxxxx, Xx., Vice President
Bank of America, NT & SA
Bank of America House
00 Xxxxxxxx Xxxx
Xxxxxxx Xxxx, Xxxxxxx
XX0 0XX
Attn: T. Yogendren, Account Admin.
U.S. Lending Office:
International Lending Office:
Bank of America, FSB
0000 Xxxxxxxxx Xxxxxx
Xxxxx 0000
Xxxxxxx, XX 00000
Attn: Xxxxxx X. Xxxxxx, Xx., Vice President
Bank of America, NT & SA
Bank of America House
00 Xxxxxxxx Xxxx
Xxxxxxx Xxxx, Xxxxxxx
XX0 0XX
Attn: T. Yogendren, Account Admin.
FX Trading Office (U.S.):
Bank of America, FSB
0000 Xxxxxxxxx Xxxxxx
Xxxxx 0000
Xxxxxxx, XX 00000
Attn: Xxxxxx X. Xxxxxx, Xx., Vice President
FX Trading Office (International):
Bank of America, NT & SA
Bank of America House
00 Xxxxxxxx Xxxx
Xxxxxxx Xxxx, Xxxxxxx
XX0 0XX
Attn: Xxxxx Xxxxxx, Trade Finance Services
Rider 2
Commitments
U.S. Lenders
Initial U.S. Lender: Bank of America, FSB
Initial Revolving Dollar Loan Commitment: $40,000,000
Initial U.S. L/C Commitment: $3,000,000
Initial CAPEX Dollar Loan Commitment: $2,664,000
International Lenders
Initial International Lender: Bank of America National Trust and Savings
Association, London Branch
Initial Revolving Pound Loan Commitment: (pound) 11,000,000
Initial International L/C Commitment: (pound)11,000,000
Initial CAPEX Pound Loan Commitment: (pound) 800,000
Initial Overdraft Pound Loan Commitment: (pound) 4,000,000
Rider 3
Notice Address for U.S. Agent:
c/o Xx. Xxxxxx X. Xxxxxx, Xx.
Vice President
Bank of America, FSB
0000 Xxxxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxxxx 00000
Notice Address for International Agent:
c/o Mr. Xxxxx Xxxxxx
Bank of America, London
0 Xxxx Xxxxxx
0xx Xxxxx
Xxxxxx X0 0XX
Xxxxxxx
Notice Address for All Obligors:
c/o Xx. Xxxxxx X. Xxxxxxx
Executive Vice President and
Chief Financial Officer
Law Engineering and Environmental
Services, Inc.
0 Xxxxxxx Xxxxx, Xxxxx 0000
Xxxxxxx, Xxxxxxx 00000
List of Riders, Exhibits and Schedules
Riders
Rider 1 Agent's Payment Office, FX Trading Office, Lenders, Lending Offices
Rider 2 Commitments, Commitment Percentages Rider 3 Notice Addresses (All
Parties)
Exhibits
Exhibit A Form of Borrowing Base Certificate
Exhibit B Form of CAPEX Dollar Loan Note
Exhibit C Form of CAPEX Pound Loan Note
Exhibit D Form of Compliance Certificate
Exhibit E Form of Notice of Borrowing
Exhibit F Form of Notice of Conversion/Continuation
Exhibit G Form of Pledge Agreement
Exhibit H Form of Revolving Dollar Loan Note
Exhibit I Form of Revolving Pound Loan Note
Exhibit J Form of Security Agreement
Exhibit K Form of Debenture
Exhibit L Form of Certificate Regarding Subordination
Exhibit M Form of Loan Certificate
Exhibit N Form of Closing Certificate
Exhibit O Form of Joinder Agreement
Exhibit P Form of Assignment and Acceptance
Schedules
Schedule 3.1 Certain Back-to-Back Letters of Credit
Schedule 6.5 Litigation
Schedule 6.7 ERISA Matters
Schedule 6.10 Taxes
Schedule 6.12 Environmental Matters
Schedule 6.16 Business (a) and Collateral Locations (b)
Schedule 6.17 Real Property
Schedule 6.18 Intellectual Property
Schedule 6.19 Subsidiaries
Schedule 6.20 Joint Ventures
Schedule 6.22 Swap Obligations
Schedule 6.23 Material Contracts; Labor Matters
Schedule 6.24 Insurance
Schedule 8.1 Permitted Liens
Schedule 8.4 Investments
Schedule 8.6 Indebtedness, Subordinated Debt
Schedule 8.9 Contingent Obligations
EXHIBIT A
BORROWING BASE CERTIFICATE
Date: ______________, _____
This certificate is given by the undersigned, a Responsible Officer of Law
Companies Group, Inc., a Georgia corporation ("LCGI"), as "Borrowers'
Representative", pursuant to Section 7.3 of that certain Credit Agreement dated
as of January 15, 1998, among LCGI, certain of its Subsidiaries, Bank of
America, FSB, individually as a Lender and as Agent, and certain other financial
institutions party thereto, as such agreement may have been amended, restated,
supplemented or otherwise modified from time to time (the "Credit Agreement").
Capitalized terms used herein without definition shall have the meanings set
forth in the Credit Agreement.
The officer executing this certificate is a Responsible Officer of LCGI and
as such is duly authorized to execute and deliver this certificate on behalf of
LCGI. By executing this certificate, such officer hereby certifies to Agent
that:
(a) Attached hereto as Exhibit A is a computation of the Borrowing Base as
of the above date and the calculations made with respect thereto;
(b) Based on such computation, the Borrowing Base as of the above date is:
$________________________
IN WITNESS WHEREOF, the undersigned in the capacity specified below,
has duly executed this Certificate on behalf of LCGI (but shall have no
personal liability for the accuracy of the contents thereof) as of the date
first above written.
By:_____________________________________
Name:_____________________
Title: _____________________
EXHIBIT B
CAPEX DOLLAR LOAN NOTE
Atlanta, Georgia
$-------------- ---------- --, ----
FOR VALUE RECEIVED, the undersigned ("Borrower"), promises to pay to
the order of BANK OF AMERICA, FSB, a federal savings bank organized under the
laws of the United States ("BOAFSB"; BOAFSB, together with any other holder
hereof, sometimes referred to herein as the "Holder"), the principal sum of
________________ DOLLARS ($____________), or such lesser amount as may be
outstanding under BOAFSB's "CAPEX Dollar Loan Commitment" (as that term is
defined in the "Credit Agreement", hereinafter defined), in lawful money of the
United States of America, payable in installments in such amounts and at such
times as are provided in the Credit Agreement, together with interest on the
unpaid principal balance hereof from the date hereof until the payment in full
of this Note at the applicable rate specified in the Credit Agreement, payable
at the times and in the manner provided in the Credit Agreement.
This Note is a "CAPEX Dollar Loan Note" issued to evidence a
"CAPEX Dollar Loan" made by BOAFSB to Borrower pursuant to the Credit Agreement,
dated as of January 15, 1998 (herein, as it may be amended, modified or
supplemented called the "Credit Agreement"; capitalized terms used herein and
not defined herein have the meanings assigned to them in the Credit Agreement),
among Law Companies Group, Inc., a Georgia corporation, certain of its
Subsidiaries, BOAFSB, individually as a Lender and as Agent, and certain other
financial institutions party thereto, to which reference is hereby made for a
statement of the terms, conditions and covenants under which the loans evidenced
hereby were made and are to be repaid, including, but not limited to, those
related to voluntary or mandatory prepayment of the indebtedness represented
hereby, to the interest rate payable hereunder and to the maturity of the
indebtedness represented hereby upon the termination of the Credit Agreement.
Payment of this Note is secured by the Collateral and the Holder is entitled to
the benefit of all of the Collateral Documents.
THIS NOTE SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF GEORGIA, WITHOUT
REGARD TO CONFLICTS OF LAW PRINCIPLES.
Borrower hereby waives presentment, demand for payment,
protest and notice of protest, notice of dishonor and all other notices in
connection with this Note.
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WITNESS THE DUE EXECUTION HEREOF BY THE RESPECTIVE DULY
AUTHORIZED OFFICERS OF THE UNDERSIGNED, UNDER SEAL, AS OF THE DATE FIRST ABOVE
WRITTEN.
LAW ENGINEERING AND ENVIRONMENTAL SERVICES, INC.
By:______________________________
Name:___________________________
Title:____________________________
Attest:____________________________
Name:_________________________
Title:__________________________
[SEAL]
EXHIBIT C
CAPEX POUND LOAN NOTE
London, England
(pound)-------------- ---------- --, ----
FOR VALUE RECEIVED, the undersigned ("Borrower"), promises to pay to
the order of BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, LONDON
BRANCH ("XXXX"; XXXX, together with any other holder hereof, sometimes referred
to herein as the "Holder"), the principal sum of ________________ POUNDS
((pound)____________), or such lesser amount as may be outstanding under
BOAFSB's "CAPEX Pound Loan Commitment" (as that term is defined in the "Credit
Agreement", hereinafter defined), in lawful money of the United Kingdom, payable
in installments in such amounts and at such times as are provided in the Credit
Agreement, together with interest on the unpaid principal balance hereof from
the date hereof until the payment in full of this Note at the applicable rate
specified in the Credit Agreement, payable at the times and in the manner
provided in the Credit Agreement.
This Note is a "CAPEX Pound Loan Note" issued to evidence a
"CAPEX Dollar Loan" made by XXXX to Borrower pursuant to the Credit Agreement,
dated as of January 15, 1998 (herein, as it may be amended, modified or
supplemented called the "Credit Agreement"; capitalized terms used herein and
not defined herein have the meanings assigned to them in the Credit Agreement),
among Law Companies Group, Inc., a Georgia corporation, certain of its
Subsidiaries, XXXX, individually as a Lender and as Agent, and certain other
financial institutions party thereto, to which reference is hereby made for a
statement of the terms, conditions and covenants under which the loans evidenced
hereby were made and are to be repaid, including, but not limited to, those
related to voluntary or mandatory prepayment of the indebtedness represented
hereby, to the interest rate payable hereunder and to the maturity of the
indebtedness represented hereby upon the termination of the Credit Agreement.
Payment of this Note is secured by the Collateral and the Holder is entitled to
the benefit of all of the Collateral Documents, subject to the terms thereof and
of the Credit Agreement limiting such security.
THIS NOTE SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF GEORGIA, WITHOUT
REGARD TO CONFLICTS OF LAW PRINCIPLES.
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--
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Borrower hereby waives presentment, demand for payment,
protest and notice of protest, notice of dishonor and all other notices in
connection with this Note.
WITNESS THE DUE EXECUTION HEREOF BY THE RESPECTIVE DULY
AUTHORIZED OFFICERS OF THE UNDERSIGNED, UNDER SEAL, AS OF THE DATE FIRST ABOVE
WRITTEN.
XXXX LTD.
By:______________________________
Name:___________________________
Title:____________________________
Attest:____________________________
Name:_________________________
Title:__________________________
[SEAL]
EXHIBIT D
COMPLIANCE CERTIFICATE
Date: __________, _____
This certificate is given by LAW COMPANIES GROUP, INC., a
Georgia corporation ("LCGI"), as "Borrowers' Representative", pursuant to
Section 7.2(a) of that certain Credit Agreement dated as of January 15, 1998
among LCGI, certain of its Subsidiaries, Bank of America, FSB, individually as a
Lender and as Agent, and certain other financial institutions party thereto, as
such agreement may have been amended, restated, supplemented or otherwise
modified from time to time (the "Credit Agreement"). Capitalized terms used
herein without definition shall have the meanings set forth in the Credit
Agreement.
The officer executing this certificate is a Responsible
Officer of Obligor and as such is duly authorized to execute and deliver this
certificate on behalf of Obligor. By executing this certificate such officer
hereby certifies to Agent, Lenders, the Issuing Bank and the Overdraft Bank
that:
(a) the financial statements delivered with this certificate in accordance
with Section 7.1(b) of the Credit Agreement fairly present, in all material
respects, in accordance with GAAP (subject to ordinary, good faith year-end
accounting adjustments in accordance with GAAP), the financial position and
results of operations of LCGI and its Subsidiaries as of the date of such
financial statements;
(b) I have reviewed the terms of the Credit Agreement and the other Loan
Documents and have made, or caused to be made under my supervision, a review in
reasonable detail of the transactions and conditions of Obligor and its
Subsidiaries during the accounting period covered by such financial statements;
(c) such review has not disclosed the existence during or at the end of
such accounting period, and I have no knowledge of the existence as of the date
hereof, of any condition or event that constitutes a Default or an Event of
Default, except as set forth in Schedule A hereto which includes a description
of the nature and period of existence of such Default or Event of Default and
what action Obligor has taken, is undertaking and proposes to take with respect
thereto; and
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(d) Obligor and its Subsidiaries are in compliance with the covenants
contained in Article IX of the Credit Agreement, as demonstrated by the
calculations set forth in Schedule B hereto, except as set forth in such
Schedule B and described in Schedule A.
IN WITNESS WHEREOF, Obligor has caused this Certificate to be executed by
its Responsible Officer this ____ day of ___________, _____.
---------------------------------
By_____________________________
Name:____________________
Title:_____________________
SCHEDULE A TO COMPLIANCE CERTIFICATE
Events of Default
SCHEDULE B TO COMPLIANCE CERTIFICATE
COVENANT CALCULATIONS
EXHIBIT E
NOTICE OF BORROWING
TO: __________________________, as Agent
DATE: _______________ __, ____
This Notice of Borrowing is delivered to you pursuant to Section 2.4 of the
Credit Agreement, dated as of January 15, 1998, among the undersigned, certain
of its Subsidiaries, Bank of America, FSB, individually as a Lender and as
Agent, and certain other financial institutions party thereto, as such agreement
may have been amended, restated, supplemented or otherwise modified from time to
time (the "Credit Agreement"). Unless otherwise defined, terms used herein have
the meanings provided in the Credit Agreement.
The undersigned, as Borrowers' Representative, hereby requests that the
[U.S.] [International] Lenders make a Loan pursuant to the Credit Agreement to
the Borrower specified in Schedule A attached hereto of the Type, on the date,
and in the principal amount specified on Schedule A attached hereto by
disbursing such amount in accordance with our instructions previously delivered
to the Agent.
The undersigned hereby acknowledges that the delivery of this Notice of
Borrowing and the acceptance by the Borrower specified on Schedule A hereto of
the proceeds of the Loan requested hereby, constitute a representation and
warranty that, on the Borrowing date of such Loan (a) the representations and
warranties set forth in Article VI of the Credit Agreement are true and correct
as if made on the date of Borrowing of the Loan requested hereby, except to the
extent such representations and warranties (i) relate expressly to an earlier
date, (ii) were previously fulfilled in accordance with the terms of the Credit
Agreement, to the extent subsequently inapplicable or (iii) were modified as a
result of the activities of the Borrowers or changes in circumstances in any
case as permitted under the Credit Agreement or as consented to or waived in
accordance with Section 12.1 of the Credit Agreement and (b) no Default, Event
of Default or Borrowing Base Deficiency exists or shall result from such
Borrowing.
The undersigned agrees that if, prior to the time of the making of the Loan
requested hereby, any matter certified to herein by the undersigned will not be
true and correct at such time as if then made, the undersigned will immediately
so notify the Agent.
Sincerely yours,
LAW COMPANIES GROUP, INC.
By:_______________________________
Name:____________________
Title:_____________________
SCHEDULE A
1. The amount of the Loan is: $_______________.
2. The requested advance date for such Loan is:_________________, ______.
3. The Loan is a ______ LIBOR Daily Rate Loan ______ LIBOR Rate Loan _____
Base Rate Loan.
4. If a LIBOR Loan, the Interest Period selected for such Loan is __1, __2,
__3, __6 month(s).
5. Such Loan is a ______ Revolving Dollar Loan _____ Revolving Pound Loan
_____ CAPEX Dollar Loan _____ CAPEX Pound Loan.
6. If such Loan is to be a Revolving Pound Loan or a CAPEX Pound Loan, the
Loan is to be made in _____ Pounds _____ the following Alternative
Currency: ____________________. 7. The Borrower of the requested Loan is
_______________.
EXHIBIT F
NOTICE OF CONVERSION/CONTINUATION
TO: _____________________, as Agent
DATE: _______________ __, ____
This Notice of Conversion/Continuation is delivered to you
pursuant to Section 2.5 of the Credit Agreement, dated as of January 15, 1998,
among the undersigned, certain of its Subsidiaries, Bank of America, FSB,
individually as a Lender and as Agent, and certain other financial institutions
party thereto, as such agreement may have been amended, restated, supplemented
or otherwise modified from time to time (the "Credit Agreement"). Unless
otherwise defined, terms used herein have the meanings provided in the Credit
Agreement.
The undersigned, as Borrowers' Representative, hereby requests
that on the Conversion/Continuation Date specified on Schedule A attached hereto
Loans of the Type and in the amount specified on Schedule A made to the Borrower
specified on Schedule A be converted or renewed as specified on Schedule A.
The undersigned hereby acknowledges that the delivery of this
Notice of Conversion/Continuation constitutes a representation and warranty
that, on the Conversion/Continuation Date for the Loans described on Schedule A
(a) the representations and warranties set forth in Article VI of the Credit
Agreement are true and correct as if made on such Conversion/Continuation Date,
except to the extent such representations and warranties (i) relate expressly to
an earlier date, (ii) were previously fulfilled in accordance with the terms of
the Credit Agreement, to the extent subsequently inapplicable or (iii) were
modified as a result of the activities of the Borrowers or changes in
circumstances in any case as permitted under the Credit Agreement or as
consented to or waived in accordance with Section 12.1 of the Credit Agreement
and (b) no Default, Event of Default or Borrowing Base Deficiency exists or
shall result from the conversion or renewal requested hereby.
The undersigned agrees that if, prior to the time of the
conversion or renewal effected hereby, any matter certified to herein by the
undersigned will not be true and correct at such time as if then made, the
undersigned will immediately so notify the Agent.
Sincerely yours,
LAW COMPANIES GROUP, INC.
By:_______________________________
Name:____________________
Title:_____________________
SCHEDULE A
1. The amount of the Loans requested to be converted or renewed is: $_______.
2. The type of the Loan(s) to be converted is: _________________ [Base Rate
Loan(s) or Eurodollar Rate Loan(s)].
3. The requested conversion or renewal is as
follows:______________________________
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4. If conversion to, or renewal of, a Eurodollar Loan is requested, the
Interest Period selected for such Eurodollar Loan is __1, __2, __3, __6
month(s).
EXHIBIT G
PLEDGE AGREEMENT
THIS PLEDGE AGREEMENT (this "Pledge Agreement"), dated as of
January 15, 1998, between the undersigned, ______________, a ________________
(herein called the "Pledgor"), and BANK OF AMERICA, FSB, a federal savings bank
organized under the laws of the United States ("BOAFSB"), as agent for itself
and each other "Obligee" (as defined in Credit Agreement defined below) (BOAFSB,
acting in such capacity, herein called "Collateral Agent").
W I T N E S S E T H:
WHEREAS, Pledgor is the owner of those shares of capital stock
of the company or companies (individually, an " Owned Subsidiary" and,
collectively, the "Owned Subsidiaries") specified on Schedule "A" attached
hereto and by reference made party hereof, in the amounts specified on Schedule
"A" (all such owned shares, together with other shares delivered or required to
be delivered hereunder, hereinafter called the "Pledged Shares"); and
WHEREAS, pursuant to a Credit Agreement, dated as of even date
herewith, by and among Pledgor, certain of its subsidiaries or affiliates,
BOAFSB, individually as a Lender and as Agent, and certain other "Obligees"
(herein, as the same may be amended, modified, supplemented or renewed from time
to time, called the "Credit Agreement"), Lenders agreed to make "Loans" (as
defined therein) to "Borrowers" (as defined therein), and the Issuing Bank
agreed to issue "Letters of Credit" (as defined therein) for the account of
Borrowers, in each case subject to the terms and conditions of the Credit
Agreement; and
WHEREAS, [pursuant to the Credit Agreement, Pledgor has
guaranteed the payment and performance by Borrowers of their "Obligations" (as
defined in the Credit Agreement)] [Pledgor, as a "Borrower" under the Credit
Agreement, will obtain financial accommodations thereunder]; and
[WHEREAS, Pledgor is the owner, directly or indirectly, of all
of the issued and outstanding stock of Borrowers, and, as such, financial
accommodations to Borrowers will inure to the direct and material benefit of
Pledgor]; and
WHEREAS, it is a condition precedent to the making of such
financial accommodations that Pledgor execute and deliver this Pledge Agreement
and therefore, Pledgor is willing to execute and deliver this Pledge Agreement;
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NOW, THEREFORE, in consideration of any loan, advance or other
financial accommodation heretofore or hereafter at any time made or granted by
Lenders, the Overdraft Bank and the Issuing Bank to Borrowers pursuant to the
Credit Agreement, Pledgor agrees with Collateral Agent that:
SECTION 1. Pledge. To secure the due and punctual payment of
the Obligations (as hereinafter defined), Pledgor hereby pledges, hypothecates,
assigns, transfers, sets over and delivers unto Collateral Agent, for its
benefit and the ratable benefit of all Obligees, and hereby grants to the
Collateral Agent, for its benefit and the ratable benefit of all Obligees, a
security interest in the following:
(i) the Pledged Shares and the certificates representing
the Pledged Shares, and all cash, securities,
dividends, rights, and other property at any time and
from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or
all of the Pledged Shares (except as provided in
Section 5(a)(ii) of this Pledge Agreement);
(ii) all additional shares of stock in any Owned
Subsidiary at any time and from time to time acquired
by Pledgor in any manner, and the certificates
representing such additional shares, and also cash,
securities, dividends, rights, and other property at
any time and from time to time received, receivable
or otherwise distributed in respect of or in exchange
for any or all of such shares; and
(iii)all other property hereafter delivered to the Collateral
Agent in substitution for or in addition to any of
the foregoing, all certificates and instruments
representing or evidencing such property and all
cash, securities, interest, dividends, rights, and
other property at any time and from time to time
received, receivable or otherwise distributed in
respect of or in exchange for any or all thereof.
(all such Pledged Shares, additional shares, certificates, notes, instruments,
cash, securities, interest, dividends, rights, and other property being herein
collectively called the "Collateral");
TO HAVE AND TO HOLD the Collateral, together with all rights,
titles, interest, privileges, and preferences appertaining or incidental
thereto, unto the Collateral Agent, its successors and assigns, forever,
subject, however, to the terms, covenants, and conditions hereinafter set forth.
The term "Obligations," as used herein, shall mean all
"Obligations" of Pledgor and the Borrowers under the Credit Agreement (as such
term is defined therein).
SECTION 2. Warranties and Further Assurances.
(a) Pledgor warrants to the Collateral Agent that Pledgor is, or
at the time of any future delivery, pledge, assignment, or
transfer will be, the lawful owner of the Collateral, free of
all claims and liens other than the security interest
hereunder (and any security interest therein held by SunTrust
Bank, Atlanta, Barclays Bank PLC and/or National Bank of
Canada, all of which are to be released concurrently with the
funding of the initial Loans under the Credit Agreement), with
full right to deliver, pledge, assign and transfer the
Collateral to the Collateral Agent as Collateral hereunder.
(b) Pledgor agrees to deliver to the Collateral Agent from time to
time upon request of the Collateral Agent such stock powers
and similar documents, satisfactory in form and substance to
the Collateral Agent, with respect to the Collateral as the
Collateral Agent may reasonably request. Pledgor agrees not to
sell, assign, exchange, pledge or otherwise transfer or
encumber any of its right to any of the Collateral, unless and
except pursuant hereto.
SECTION 3. Care of Collateral. The Collateral Agent shall be deemed to
have exercised reasonable care with respect to the interest of Pledgor in the
custody and preservation of the Collateral if it takes such action for that
purpose as Pledgor shall reasonably request in writing, but the failure of the
Collateral Agent to comply with any such request shall not of itself be deemed a
failure to exercise reasonable care, and no failure of the Collateral Agent to
preserve or protect any rights with respect to the Collateral against prior
parties, or to do any act with respect to preservation of the Collateral not so
requested by Pledgor, shall be deemed a failure to exercise reasonable care in
the custody or preservation of the Collateral.
SECTION 4. Certain Rights Regarding Collateral and Obligations.
(a) The Collateral Agent may from time to time, if a Default (as
hereinafter defined) exists hereunder, without notice to
Pledgor, take all or any of the following actions:
(i) transfer all or any part of the Collateral into the
name of the Collateral Agent or its nominee, with or
without disclosing that such Collateral is subject to
the lien and security interest hereunder,
(ii) notify the parties obligated on any of the Collateral
to make payment to the Collateral Agent of any
amounts due or to become due thereunder,
(iii) enforce collection of any of the Collateral by suit
or otherwise, and surrender, release or exchange all
or any part thereof or compromise or extend or renew
for any period (whether or not longer than the
original period) any obligations of any nature of any
party with respect thereto,
(iv) take control of any proceeds of the Collateral, and
(v) resort to the Collateral for payment of any of the
Obligations whether or not it shall have resorted to
any other property securing the Obligations or shall
have proceeded against any party primarily or
secondarily liable on any of the Obligations.
(b) The Collateral Agent may, furthermore from time to time,
whether before or after any of the Obligations shall become
due and payable, without notice to Pledgor, take all or any of
the following actions:
(i) retain or obtain a security interest in any property,
in addition to the Collateral, to secure any of the
Obligations, (ii) retain or obtain the primary or
secondary liability of any party or parties, in
addition to Pledgor with respect to any of the
Obligations,
(iii) extend or renew for any period (whether or not longer
than the original period) or exchange any of the
Obligations or release or compromise any obligation of
any nature of any party with respect thereto, and
(iv) surrender, release or exchange all or any part of any
property, in addition to the Collateral, securing any
of the Obligations, or compromise or extend or renew
for any period any obligations of any nature of any
party with respect to any such property.
SECTION 5. Voting Right and Dividends.
(a) So long as no Default (as hereinafter defined) shall have
occurred and be continuing:
(i) Pledgor shall have the right to vote the Pledged Shares
in a manner consistent with the terms of the Credit
Agreement and the other "Loan Documents" (as that term
is defined in the Credit Agreement);
(ii) Pledgor shall be entitled to receive any and all cash
dividends on the Pledged Shares, which it is otherwise
entitled to receive, but any and all stock and/or
liquidating dividends, distributions in property,
returns of capital or other distributions made on or in
respect of the Pledged Shares, whether resulting from a
subdivision, combination or reclassification of the
outstanding capital stock of any issuer thereof or
received in exchange for the Pledged Shares or any part
thereof or as a result of any merger, consolidation,
acquisition or other exchange of assets to which any
issuer may be a party or otherwise, and any and all
cash and other property received in exchange for any
Collateral shall be and become part of the Collateral
pledged hereunder and, if received by Pledgor, shall
forthwith be delivered to the Collateral Agent or its
designated nominee (accompanied, if appropriate, by
proper instruments of assignment and/or stock power
executed by Pledgor in accordance with the Collateral
Agent's instructions) to be held subject to the terms
of this Pledge Agreement; and (iii) If the Pledged
Shares shall have been registered in the name of the
Collateral Agent or its subagent, the Collateral Agent
shall execute and deliver (or cause to be executed and
delivered) to Pledgor all such dividend orders and
other instruments as Pledgor may request for the
purpose of enabling Pledgor to receive the dividends or
other payments which it is authorized to receive and
retain pursuant to subparagraph (ii) above.
(b) Upon the occurrence and during the continuance of a Default: (i)
after written notice from the Collateral Agent to Pledgor, all
rights of Pledgor pursuant to Section 5(a)(i) to vote the Pledged
Shares shall cease and Collateral Agent or its designated nominee
shall have the sole and exclusive authority to exercise such
rights, (ii) all rights of Pledgor pursuant to Section 5(a)(ii)
and 5(a)(iii) shall cease, and (iii) the Collateral Agent shall
have the sole and exclusive right and authority to receive and
retain the dividends which Pledgor would otherwise be authorized
to receive and retain pursuant to Section 5(a)(ii) hereof. Any
and all money and other property paid over to or received by the
Collateral Agent pursuant to the provisions of this paragraph (b)
shall be retained by the Collateral Agent as additional
Collateral hereunder and be applied in accordance with the
provisions hereof.
SECTION 6. Default.
(a) The occurrence of any of the following shall constitute a
"Default" hereunder: nonpayment, when due, whether by
acceleration or otherwise, of any amount due and payable on any
of the Obligations; an "Event of Default" (as defined in the
Credit Agreement); any representation of Pledgor contained herein
or given pursuant hereto shall be untrue in any material respect;
or Pledgor shall default in the performance of any agreement
contained herein which is not cured to Collateral Agent's
satisfaction within twenty-one (21) days after the earlier of (i)
the ------- date upon which a "Responsible Officer" (as defined
in the Credit Agreement) knew or reasonably should have known of
such failure or (ii) the date upon which written notice thereof
is given to Pledgor by Collateral Agent. Upon such Default, (i)
the Collateral Agent may exercise from time to time any rights
and remedies available to it under the Uniform Commercial Code as
in effect from time to time in Georgia or otherwise available to
it, and (ii) the Collateral Agent may, without demand or notice
of any kind, appropriate and apply toward the payment of such of
the Obligations, and in such order or application, as the
Collateral Agent may from time to time elect, any balances,
credits, deposits, accounts or moneys of Pledgor then
constituting part of, or proceeds from, the Collateral. If any
notification of intended disposition of any of the Collateral is
required by law, such notification, if mailed, shall be deemed
reasonably and properly given if mailed at least ten (10) days
before such disposition, via certified or registered mail, return
receipt requested with proper postage prepaid, addressed to
Pledgor, either at the address of Pledgor shown below, or at any
other address of Pledgor as then appearing on the records of the
Collateral Agent. Any proceeds of any disposition of Collateral
may be applied by the Collateral Agent to the payment of
reasonable expenses in connection with the Collateral, including
"Attorney Costs" (as defined in the Credit Agreement), and any
balance of such proceeds may be applied by the Collateral Agent
toward the payment of such of the Obligations and in such order
of application, as provided in Section 7 hereof. All rights and
remedies of the Collateral Agent expressed hereunder are in
addition to all other rights and remedies possessed by it,
including those under any other agreement or instrument relating
to any of the Obligations or security therefor. No delay on the
part of the Collateral Agent in the exercise of any right or
remedy shall operate as a waiver thereof, and no single or
partial exercise by the Collateral Agent of any right or remedy
shall preclude other or further exercise thereof or the exercise
of any other right or remedy. No action of the Collateral Agent
permitted here under shall impair or affect the rights of the
Collateral Agent in and to the Collateral.
(b) Pledgor agrees that in any sale of any of the Collateral whenever
a Default hereunder shall have occurred and be continuing, the
Collateral Agent is hereby authorized to comply with any
limitation or restriction in connection with such sale as it may
be advised by counsel is necessary in order to avoid any
violation of applicable law (including, without limitation,
compliance with such procedures as may restrict the number of
prospective bidders and purchasers, require that such prospective
bidders and purchasers have certain qualifications, and restrict
such prospective bidders and purchasers to persons who will
represent and agree that they are purchasing for their own
account for investment and not with a view to the distribution or
resale of such Collateral), or in order to obtain any required
approval of the sale or of the purchaser by any governmental
regulatory authority or official, and Pledgor further agrees that
such compliance shall not result in such sale being considered or
deemed not to have been made in a commercially reasonable manner,
nor shall the Collateral Agent be liable or accountable to
Pledgor for any discount allowed by the reason of the fact that
such Collateral is sold in compliance with any such limitation or
restriction.
SECTION 7. Application of Proceeds of Sale or Cash Held as Collateral. The
proceeds of sale of Collateral sold pursuant to Section 6 hereof and/or,
after a Default, the cash held as Collateral hereunder, shall be applied by
the Collateral Agent as follows:
First: to payment of the reasonable costs and expenses of such sale
actually incurred by Collateral Agent, including the out-of-pocket expenses
of the Collateral Agent and Attorney Costs, and to the payment of all
advances made by the Collateral Agent for the account of Pledgor hereunder
and the payment of all costs and expenses incurred by the Collateral Agent
in connection with the administration and enforcement of this Pledge
Agreement, to the extent that such advances, costs and expenses shall not
have been reimbursed to the Collateral Agent;
Second: to the payment of interest accrued and unpaid on any Obligations to
and including the date of such application and then to the payment or
prepayment of principal of any of the Obligations and then to the payment
of the balance of the Obligations; and
Third: the balance, if any, of such proceeds shall be paid to Pledgor,
its successors and assigns, or as a court of competent jurisdiction
otherwise may direct.
SECTION 8. Authority of Collateral Agent. The Collateral Agent shall
have and be entitled to exercise all such powers hereunder as are
specifically delegated to the Collateral Agent by the terms hereof,
together with such powers as are incidental thereto. The Collateral
Agent may execute any of its duties hereunder by or through agents or
employees and shall be entitled to retain counsel and to act in
reliance upon the advice of such counsel concerning all matters
pertaining to its duties hereunder. Neither the Collateral Agent, nor
any director, officer or employee of the Collateral Agent, shall be
liable for any action taken or omitted to be taken by it or them
hereunder or in connection herewith, except for its or their own gross
negligence or willful misconduct. Pledgor hereby agrees to reimburse
the Collateral Agent, on demand, for all reasonable expenses incurred
by the Collateral Agent in connection with the administration and
enforcement of this Agreement (including expenses incurred by any
sub-agent employed by the Collateral Agent) and agrees to indemnify
and hold harmless the Collateral Agent and/or any such sub-agent from
and against any and all liability incurred by the Collateral Agent (or
such sub-agent) hereunder or in connection herewith, unless such
liability shall be due to willful misconduct or gross negligence on
the part of the Collateral Agent or such sub-agent.
SECTION 9. Termination. This Pledge Agreement shall terminate when all
the Obligations and all obligations of Pledgor hereunder have been
fully paid and satisfied, at which time the Collateral Agent shall
reassign and redeliver (or cause to be reassigned and redelivered) to
Pledgor, or to such person or persons as Pledgor shall designate,
against receipt, such of the Collateral (if any) as shall not have
been sold or otherwise applied by the Collateral Agent pursuant to the
terms hereof and shall still be held by it hereunder, together with
appropriate instruments of reassignment and release. Any such
reassignment shall be without recourse upon or warranty by the
Collateral Agent (other than a limited warranty of title) and at the
expense of Pledgor.
SECTION 10. Notices. Except as otherwise may be expressly provided
herein, any notice hereunder to Pledgor or Collateral Agent shall be
given in the manner set forth in the Credit Agreement.
SECTION 11. Binding Agreement; Assignment. This Pledge Agreement, and
the terms, covenants and conditions hereof, shall be binding upon and
inure to the benefit of the parties hereto, and their respective
successors and assigns, except that Pledgor shall not be permitted to
assign this Pledge Agreement or any interest herein or in the
Collateral, or any part thereof, or otherwise pledge, encumber or
grant any option with respect to the Collateral, or any part thereof,
or any cash or property held by the Collateral Agent as Collateral
under this Pledge Agreement.
SECTION 12. Miscellaneous. Neither this Pledge Agreement nor any
provision hereof may be amended, modified, waived, discharged or
terminated orally nor may any of the Collateral be released or the
pledge of the security interest created hereby extended, except by an
instrument in writing duly signed by or on behalf of the Collateral
Agent hereunder. The section headings used herein are for convenience
of reference only and shall not define or limit the provisions of this
Pledge Agreement.
SECTION 13. Governing Law; Interpretation. THIS PLEDGE AGREEMENT SHALL
BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE INTERNAL LAWS OF THE STATE OF GEORGIA, WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES. Wherever possible each provision of this
Pledge Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of the
Pledge Agreement shall be prohibited by or invalid under such law,
such provision shall be ineffective to the extent of such prohibition
or invalidity, without invalidating the remainder of such provision or
the remaining provisions of this Pledge Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Pledge
Agreement to be duly executed, under seal, by their respective
officers thereunto duly authorized as of the date first above written.
PLEDGOR:
------------------------------
By: ___________________________
Name:______________________
Title:_______________________
Attest: _________________________
Name:_________________________
Title:_______________________
[SEAL]
"COLLATERAL AGENT"
BANK OF AMERICA, FSB
By: _____________________________
Name:_______________________
Title:________________________
SCHEDULE "A"
Schedule of Pledged Shares
Owned Shares No. Shares Stock Certificate No.
STOCK POWER
FOR VALUE RECEIVED, the undersigned does hereby sell, assign and
transfer unto __________________ shares of the ____________ Stock of
_______________________ (the "Company"), standing in its name on the books of
said Company represented by Certificate No. __ herewith and does hereby
irrevocably constitute and appoint ________________________ attorney to transfer
the said stock on the books of the within named Company with full power of
substitution in the premises.
Date: January 15, 1998 _____________________________________
By:
Name:_________________________
Title:__________________________
In Presence of
--------------------------
Notary Public
My Commission Expires:
-------------------------
[NOTARIAL SEAL]
EXHIBIT H
REVOLVING DOLLAR LOAN NOTE
Atlanta, Georgia
$_____________ January 15 , 1998
FOR VALUE RECEIVED, the undersigned ("Borrower"), promises to
pay to the order of ____________________________________ ("Lender"; Lender,
together with any other holder hereof, sometimes referred to herein as the
"Holder"), the principal sum of __________________________________
($___________), or such lesser amount as may be outstanding under Lender's
"Revolving Dollar Loan Commitment" (as that term is defined in the "Credit
Agreement," hereinafter defined) in lawful money of the United States of America
at such time or times as are provided in the Credit Agreement and, in any event,
on the "Maturity Date" (as that term is defined in the Credit Agreement),
together with interest on the unpaid principal balance hereof from the date
hereof until the payment in full of this Note at the applicable rate specified
in the Credit Agreement, payable at the times and in the manner provided in the
Credit Agreement.
This Note is a "Revolving Dollar Loan Note" issued to evidence
the "Revolving Dollar Loans" (as such terms are defined in the Credit Agreement)
made available by Lender to Borrower pursuant to the Credit Agreement, dated of
even date herewith (herein, as at any time amended, modified or supplemented,
called the "Credit Agreement"; capitalized terms used herein and not defined
herein have the meanings assigned to them in the Credit Agreement), among Law
Companies Group, Inc., a Georgia corporation, certain of its subsidiaries,
Lender, [individually as a Lender and as Agent], and certain other financial
institutions party thereto, to which reference is hereby made for a statement of
the terms, conditions and covenants under which the loan evidenced hereby were
made and are to be repaid, including, but not limited to, those related to
voluntary or mandatory prepayment of the indebtedness represented hereby, to the
interest rate payable hereunder and to the maturity of the indebtedness
represented hereby upon the termination of the Credit Agreement. Payment of this
Note is secured by the Collateral and Holder is entitled to the benefit of all
of the Collateral Documents.
THIS NOTE SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF GEORGIA, WITHOUT
REGARD TO CONFLICTS OF LAW PRINCIPLES.
--
--
--
Borrower hereby waives presentment, demand for payment,
protest and notice of protest, notice of dishonor and all other notices in
connection with this Note.
WITNESS THE DUE EXECUTION HEREOF BY THE RESPECTIVE DULY
AUTHORIZED OFFICERS OF THE UNDERSIGNED, UNDER SEAL, AS OF THE DATE FIRST ABOVE
WRITTEN.
LAW ENGINEERING AND ENVIRONMENTAL
SERVICES, INC.
By:______________________________
Xxxxxx X. Xxxxxxx,
Executive Vice President
and Chief Financial Officer
Attest:____________________________
Xxxxxx X. Xxxxxxxx,
Executive Vice President,
General Counsel and Secretary
[SEAL]
EXHIBIT I
REVOLVING POUND LOAN NOTE
London, England
(pound)_________________ January 15, 1998
FOR VALUE RECEIVED, the undersigned ("Borrower"), promises to
pay to the order of __________________________________ ("Lender"; Lender,
together with any other holder hereof, sometimes referred to herein as the
"Holder"), the principal sum of ____________________________________ POUNDS
STERLING ((pound) ____________) or such lesser amount as may be outstanding
under Lender's "Revolving Pound Loan Commitment" (as that term is defined in the
"Credit Agreement," hereinafter defined),in lawful money of the United Kingdom
at such time or times as are provided in the Credit Agreement and, in any event,
on the "Maturity Date" (as that term is defined in the Credit Agreement),
together with interest on the unpaid principal balance hereof from the date
hereof until the payment in full of this Note at the applicable rate specified
in the Credit Agreement, payable at the times and in the manner provided in the
Credit Agreement.
This Note is a "Revolving Pound Loan Note" issued to evidence
the "Revolving Pound Loans" (as such terms are defined in the Credit Agreement)
made available by Lender to Borrower pursuant to the Credit Agreement, dated of
even date herewith (herein, as at any time amended, modified or supplemented,
called the "Credit Agreement"; capitalized terms used herein and not defined
herein have the meanings assigned to them in the Credit Agreement), among Law
Companies Group, Inc., a Georgia corporation, certain of its Subsidiaries,
Lender[, individually as a Lender and as Agent], and certain other financial
institutions party thereto, to which reference is hereby made for a statement of
the terms, conditions and covenants under which the loan evidenced hereby were
made and are to be repaid, including, but not limited to, those related to
voluntary or mandatory prepayment of the indebtedness represented hereby, to the
interest rate payable hereunder and to the maturity of the indebtedness
represented hereby upon the termination of the Credit Agreement. Payment of this
Note is secured by the Collateral and Holder is entitled to the benefit of all
of the Collateral Documents, subject to the terms thereof and of the Credit
Agreement limiting such security.
THIS NOTE SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF GEORGIA, WITHOUT
REGARD TO CONFLICTS OF LAW PRINCIPLES.
--
--
--
Borrower hereby waives presentment, demand for payment,
protest and notice of protest, notice of dishonor and all other notices in
connection with this Note.
WITNESS THE DUE EXECUTION HEREOF BY THE RESPECTIVE DULY
AUTHORIZED OFFICERS OF THE UNDERSIGNED, UNDER SEAL, AS OF THE DATE FIRST ABOVE
WRITTEN.
XXXX LTD.
By:______________________________
Name:___________________________
Title:____________________________
Attest:____________________________
Name:_________________________
Title:__________________________
[SEAL]
EXHIBIT J
SECURITY AGREEMENT
THIS SECURITY AGREEMENT, dated as of January 15, 1998, made by
_______________________, a __________________________ (the "Obligor") in favor
of BANK OF AMERICA, FSB, a federal savings bank organized under the laws of the
United States ("BOAFSB"), as agent for itself, and each other "Obligee" (as
defined in the Credit Agreement defined below) (BOAFSB, acting in such capacity,
herein called "Collateral Agent");
W I T N E S S E T H :
WHEREAS, pursuant to the Credit Agreement, dated as of even
date herewith, by and among Law Companies Group, Inc., a Georgia corporation,
certain of its subsidiaries, BOAFSB, individually as a Lender and as Agent, and
certain of the other "Obligees" (herein, as the same may from time to time be
amended, modified or supplemented, the "Credit Agreement"), Lenders agreed to
make Loans to the Borrowers and the Issuing Bank agreed to issue Letters of
Credit for the account of the Borrowers, in each case, subject to the terms and
conditions set forth therein; and
WHEREAS, an express condition precedent to Borrowers' receipt
of any such financial accommodations is that Obligor shall have executed and
delivered to Collateral Agent this Security Agreement;
NOW, THEREFORE, in consideration of the premises and of the
mutual covenants herein contained and for other good and valuable consideration,
the receipt of which is hereby acknowledged, the parties hereto agree as
follows:
1. Defined Terms. Unless otherwise defined herein, terms defined in the
Credit Agreement are used herein as therein defined, and the following terms
shall have the following meanings (such meanings being equally applicable to
both the singular and plural forms of the terms defined):
"Account Debtor" shall mean any "account debtor," as such term
is defined in Section 9-105(1)(a) of the UCC.
-3-
"Accounts" shall mean any "accounts," as such term is defined
in Section 9-106 of the UCC, now owned or hereafter acquired by Obligor
or in which Obligor now has or hereafter acquires any rights, and, in
any event, shall include, without limitation, all accounts receivable,
book debts and other forms of obligations (other than forms of
obligations evidenced by Chattel Paper, Documents or Instruments) now
owned or hereafter received or acquired by or belonging or owing to
Obligor (including, without limitation, under any trade names, styles
or divisions thereof), whether arising out of goods sold or leased or
services rendered by Obligor or from any other transaction, whether or
not the same involves the sale or lease of goods or services by Obligor
(including, without limitation, any such obligation, which might be
characterized as an account or contract right under the UCC) and all of
Obligor's rights in, to and under all purchase orders or receipts now
owned or hereafter acquired by it for goods or services, and all of
Obligor's rights to any goods represented by any of the foregoing
(including, without limitation, unpaid seller's rights of rescission,
replevin, reclamation and stoppage in transit and rights to returned,
reclaimed or repossessed goods), and all moneys due or to become due to
Obligor under all contracts for the sale of goods or the performance of
services or both by Obligor (whether or not yet earned by performance
on the part of Obligor or in connection with any other transaction),
now in existence or hereafter occurring, including, without limitation,
the right to receive the proceeds of said purchase orders and
contracts, and all collateral security and guarantees of any kind given
by any Person with respect to any of the foregoing.
"Chattel Paper" shall mean any "chattel paper," as such term
is defined in Section 9-105(1)(b) of the UCC, now owned or hereafter
acquired by Obligor or in which Obligor now has or hereafter acquires
any rights and wherever located.
"Collateral" shall have the meaning assigned to such term in
Section 2 of this Security Agreement.
"Contracts" shall mean all contracts, undertakings, or other
agreements (other than rights evidenced by Chattel Paper, Documents or
Instruments) in or under which Obligor may now or hereafter have any
right, title or interest, including, without limitation, with respect
to an Account, any agreement relating to the terms of payment or the
terms of performance thereof.
"Documents" shall mean any "documents," as such term is
defined in Section 9-105(1)(f) of the UCC, now owned or hereafter
acquired by Obligor or in which Obligor now has or hereafter acquires
any rights and wherever located.
"Equipment" shall mean any "equipment," as such term is
defined in Section 9-109(2) of the UCC, now owned or hereafter acquired
by Obligor or in which Obligor now has or hereafter acquires any rights
and wherever located, and, in any event, shall include, without
limitation, all machinery, equipment, molds, furnishings, fixtures,
motor vehicles and computers and other electronic data-processing and
other office equipment now owned or hereafter acquired by Obligor or in
which Obligor now has or hereafter acquires any rights and wherever
located, and any and all additions, substitutions and replacements of
any of the foregoing, wherever located, together with all attachments,
components, parts, equipment and accessories installed thereon or
affixed thereto.
"General Intangibles" shall mean any "general intangibles," as
such term is defined in Section 9-106 of the UCC, now owned or
hereafter acquired by Obligor or in which Obligor now has or hereafter
acquires any rights, and, in any event, shall include, without
limitation, all right, title and interest which Obligor may now or
hereafter have in or under any Contract, causes of action, franchises,
tax refund claims, customer lists, Trademarks, Patents, rights in
intellectual property, Licenses, permits, copyrights, trade secrets,
proprietary or confidential information, inventions and discoveries
(whether patented or patentable or not) and technical information,
procedures, designs, knowledge, know-how, software, data bases,
business records data, skill, expertise, experience, processes, models,
drawings, materials and records, goodwill, all claims under Guarantees,
security interests or other security held by or granted to Obligor to
secure payment of the Accounts by an Account Debtor obligated thereon,
all rights of indemnification and all other intangible property of any
kind and nature.
"Instruments" shall mean any "instrument," as such term is
defined in Section 9-105(1)(i) of the UCC, now owned or hereafter
acquired by Obligor or in which Obligor now has or hereafter acquires
any rights and wherever located, other than instruments that
constitute, or are a part of a group of writings that constitute,
Chattel Paper.
"Inventory" shall mean any "inventory," as such term is
defined in Section 9-109(4) of the UCC, now owned or hereafter acquired
by Obligor or in which Obligor now has or hereafter acquires any rights
and wherever located, and, in any event, shall include, without
limitation, all inventory, merchandise, goods and other personal
property, now owned or hereafter acquired by Obligor or in which
Obligor now has or hereafter acquires any rights and wherever located,
which are held for sale or lease or are furnished or are to be
furnished under a contract of service or which constitute raw
materials, work in process or materials used or consumed or to be used
or consumed in Obligor's business, or the processing, packaging,
delivery or shipping of the same, and all finished goods.
"License" shall mean any Patent License, Trademark License or
other license as to which Collateral Agent has been granted a security
interest hereunder.
"Patent License" shall mean all of the following now owned or
hereafter acquired by Obligor or in which Obligor now has or hereafter
acquires any rights: to the extent assignable by Obligor, any written
agreement granting any right to make, use, sell and/or practice any
invention or discovery that is the subject matter of a Patent.
"Patent" or "Patents" shall mean one or all of the following
now or hereafter owned by Obligor or in which Obligor now has or
hereafter acquires any rights: (i) all letters patent of the United
States or any other country and all applications for letters patent of
the United States or any other country, (ii) all reissues,
continuations, continuations-in-part, divisions, reexaminations or
extensions of any of the foregoing, and (iii) all inventions disclosed
in and claimed in the Patents and any and all trade secrets and knowhow
related thereto.
"Proceeds" shall mean "proceeds," as such term is defined in
Section 9-306(1) of the UCC and, in any event, shall include, without
limitation, (i) any and all proceeds of any insurance, indemnity,
warranty or guaranty payable to Obligor from time to time with respect
to any of the Collateral, (ii) any and all payments (in any form
whatsoever) made or due and payable to Obligor from time to time in
connection with any requisition, confiscation, condemnation, seizure or
forfeiture of all or any part of the Collateral by any governmental
body, authority, bureau or agency (or any person acting under color of
governmental authority), (iii) any claim of Obligor against third
parties (A) for past, present or future infringement of any Patent or
Patent License or (B) for past, present or future infringement or
dilution of any Trademark or Trademark License or for injury to the
goodwill associated with any Trademark, Trademark registration or
Trademark licensed under any Trademark License, (iv) any and all other
amounts from time to time paid or payable under or in connection with
any of the Collateral, and (v) the following types of property acquired
with cash proceeds: Accounts, Chattel Paper, Contracts, Documents,
General Intangibles, Equipment and Inventory.
"Secured Obligations" shall mean, collectively, (i) all of the
unpaid principal amount of, and accrued interest on, the Notes, (ii)
all prepayment, commitment and other fees owing by any Obligor from
time to time under the Credit Agreement, (iii) all other Obligations
and (iv) all obligations of Obligor to Collateral Agent.
"Security Agreement" shall mean this Security Agreement, as
the same may from time to time be amended, modified or supplemented and
shall refer to this Security Agreement as in effect of the date such
reference becomes operative.
"Supplemental Documentation" shall have the meaning assigned
to it in Section 5(a) of this Security Agreement.
"Trademark License" shall mean all of the following now owned
or hereafter acquired by Obligor or in which Obligor now has or
hereafter acquires any rights: any written agreement granting any right
to use any Trademark or Trademark registration.
"Trademark" or "Trademarks" shall mean one or all of the
following now owned or hereafter acquired by Obligor or in which
Obligor now has or hereafter acquires any rights: (i) all trademarks,
trade names, corporate names, business names, trade styles, service
marks, logos, other source or business identifiers, prints and labels
on which any of the foregoing have appeared or appear, designs and
general intangibles of like nature, now existing or hereafter adopted
or acquired, all registrations and recordings thereof, and all
applications in connection therewith, including, without limitation,
registrations, recordings and applications in the United States Patent
and Trademark Office or in any similar office or agency of any State of
the United States or any other country or any political subdivision
thereof, (ii) all extensions or renewals thereof and (iii) the goodwill
symbolized by any of the foregoing.
"UCC" shall mean the Uniform Commercial Code as the same may,
from time to time, be in effect in the State of Georgia; provided,
however, in the event that, by reason of mandatory provisions of law,
any or all of the attachment, perfection or priority of Collateral
Agent's security interest in any Collateral is governed by the Uniform
Commercial Code as in effect in a jurisdiction other than the State of
Georgia, the term "UCC" shall mean the Uniform Commercial Code as in
effect in such other jurisdiction for purposes of the provisions hereof
relating to such attachment, perfection or priority and for purposes of
definitions related to such provisions.
2. Grant of Security Interest. (a) Collateral. As collateral security
for the prompt and complete payment and performance when due (whether at stated
maturity, by acceleration or otherwise) of all the Secured Obligations and to
induce Lenders, the Overdraft Bank, and Issuing Bank to enter into the Credit
Agreement and to make Loans and issue Letters of Credit in accordance with the
terms thereof, Obligor hereby grants to Collateral Agent, for its benefit and
the ratable benefit of the Agent, Lenders, the Issuing Bank, the Overdraft Bank
and all other Persons to whom Obligations are owed from time to time, a security
interest in all of Obligor's right, title and interest in, to and under the
following (all of which being hereinafter collectively called the "Collateral"):
(i) all Accounts of Obligor;
(ii) all Chattel Paper of Obligor;
(iii) all Contracts of Obligor;
(iv) all Documents of Obligor;
(v) all Equipment of Obligor;
(vi) all General Intangibles of Obligor;
(vii) all Instruments of Obligor;
(viii) all Inventory of Obligor;
(ix) all other goods and personal property of Obligor, whether
tangible or intangible, including without limitation, all bank accounts
of Obligor, now owned or hereafter acquired by Obligor or in which
Obligor now has or hereafter acquires any rights and wherever located;
and
(x) to the extent not otherwise included, all Proceeds of each
of the foregoing and all accessions to, substitutions and replacements
for, and rents, profits and products of each of the foregoing and all
books and records relating to each of the foregoing.
(b) Property in Possession. In addition, as collateral
security for the prompt and complete payment when due of the Secured Obligations
and in order to induce Lenders and the Issuing Bank as aforesaid, Collateral
Agent is hereby granted a lien and security interest in all property of Obligor
held by Collateral Agent, including, without limitation, all property of every
description, now or hereafter in the possession or custody of or in transit to
Collateral Agent for any purpose, including safekeeping, collection or pledge,
for the account of Obligor, or as to which Obligor may have any right or power.
3. Rights of Collateral Agent; Limitations on Collateral Agent's
Obligations; License.
(a) Obligor Remains Liable. It is expressly agreed by Obligor
that, anything herein to the contrary notwithstanding, Obligor shall remain
liable under each of its Contracts and each of its Licenses to observe and
perform all of the material conditions and material obligations to be observed
and performed by it thereunder and Obligor shall perform all of its material
duties and material obligations thereunder, all in accordance with and pursuant
to the terms and provisions of each such Contract or License. Collateral Agent
shall not have any obligation or liability under any Contract or License by
reason of or arising out of this Security Agreement or the granting to
Collateral Agent of a security interest therein or the receipt by Collateral
Agent of any payment relating to any Contract or License pursuant hereto, nor
shall Collateral Agent be required or obligated in any manner to perform or
fulfill any of the obligations of Obligor under or pursuant to any Contract or
License, or to make any payment, or to make any inquiry as to the nature or the
sufficiency of any payment received by it or the sufficiency of any performance
by any party under any Contract or License, or to present or file any claim, or
to take any action to collect or enforce any performance or the payment of any
amounts which may have been assigned to it or to which it may be entitled at any
time or times.
(b) Direct Collection. Collateral Agent may at any time after
the occurrence of, and during the continuance of, any Event of Default open
Obligor's mail and collect any and all amounts due from Account Debtors, and
notify Account Debtors of Obligor, parties to the Contracts of Obligor, obligors
of Instruments of Obligor and obligors in respect of Chattel Paper of Obligor
that the Accounts and the right, title and interest of Obligor in and under such
Contracts, such Instruments and such Chattel Paper have been assigned to
Collateral Agent and that payments shall be made directly to Collateral Agent or
to a lockbox designated by Collateral Agent. Upon the request of Collateral
Agent made at any time after the occurrence of, and during the continuance of,
an Event of Default, Obligor will so notify such Account Debtors, parties to
such Contracts, obligors of such Instruments and obligors in respect of such
Chattel Paper. Collateral Agent also may at any time after the occurrence of,
and during the continuance of, any Event of Default, in its own name or in the
name of Obligor, communicate with such Account Debtors, parties to such
Contracts, obligors of such Instruments and obligors in respect of such Chattel
Paper to verify with such Persons to Collateral Agent's sole satisfaction the
existence, amount and terms of any such Accounts, Contracts, Instruments or
Chattel Paper.
(c) Test Verifications. At any time after the occurrence of,
and during the continuance of, an Event of Default, Collateral Agent shall have
the right to make test verifications of the Accounts in any reasonable manner
and through any reasonable medium that it considers advisable, and Obligor
agrees to furnish all such assistance and information as Collateral Agent may
require in connection therewith.
4. Representations and Warranties. Obligor hereby represents and
warrants that:
(a) Sole Owner. Except for Permitted Liens, Obligor is the
sole owner or lessee or authorized licensee of each item of the Collateral in
which it purports to grant a security interest hereunder, having good and
sufficient title thereto, or a valid interest as a lessee or licensee
thereunder, free and clear of any and all Liens, and, in the case of Patents and
Trademarks, free and clear of licenses, registered user agreements and covenants
not to xxx third persons.
(b) No Security Agreement. No effective security agreement,
financing statement, equivalent security or lien instrument or continuation
statement covering all or any part of the Collateral is on file or of record in
any public office, except such as may have been filed by Obligor in favor of
Collateral Agent pursuant to this Security Agreement and except such as may have
been filed to evidence Permitted Liens (or to evidence Liens in favor of
SunTrust Bank, Atlanta, Barclays Bank PLC and/or National Bank of Canada, all of
which will be terminated concurrently with the funding of the initial Loans
under the Credit Agreement).
(c) Financing Statements. Upon the filing of appropriate
financing statements in the jurisdictions listed in Schedule I hereto and, upon
the filing of the collateral assignments of Patents and Trademarks to be filed
in the United States Patent and Trademark Office, this Security Agreement is
effective to create a valid and continuing first priority lien on and first
priority perfected security interest in the Collateral (subject to the existence
of Permitted Liens) with respect to which a security interest may be perfected
by filing pursuant to the UCC or by the filing of an appropriate document in the
United States Patent and Trademark Office in favor of Collateral Agent, prior to
all other Liens, and is enforceable as such as against creditors of and
purchasers from Obligor (other than purchasers of Inventory in the ordinary
course of business) and as against any purchaser of real property where any of
the Equipment is located and any present or future creditor obtaining a Lien on
such real property. Upon such filing, all action requested by Collateral Agent
as necessary or desirable to protect and perfect such security interest in each
item of the Collateral will have been duly taken.
(d) Locations. Obligor's chief executive office, principal
place of business and the place where its records concerning the Collateral are
kept and the locations of its Inventory and Equipment are set forth on Schedule
II hereto, and Obligor will not change such principal place of business or
remove such records or Inventory or Equipment (except for removal of Inventory
for transfer from one such location to another or upon its sale) unless it has
taken such action (if any) as is necessary to cause the security interest of
Collateral Agent in the Collateral to continue to be perfected and has given
thirty (30) days' prior written notice thereof to Collateral Agent. Any new
place of business of Obligor or Collateral location shall be within the United
States of America.
(e) Patents. As of the date hereof, (i) the Patents are
subsisting, valid and enforceable, (ii) Obligor is aware of no prior art that
will cause the invention in any patent application owned by Obligor to be
declared unpatentable or that will provide the basis for a claim of infringement
against Obligor, (iii) to the best of Obligor's knowledge, no claim has been
made that the practicing of any Patent by Obligor does or may violate the rights
of any third person, and (iv) Obligor has used and will continue to use for the
duration of this Security Agreement, reasonably necessary statutory notice if
required to maintain the Patents in connection with any of its products covered
by any of the Patents.
(f) Trademarks. The Trademarks and, to the best of Obligor's
knowledge, any trademarks in which Obligor has been granted rights pursuant to
Trademark Licenses are subsisting and have not been adjudged invalid or
unenforceable; each of the Trademarks and, to the best of Obligor's knowledge,
any trademark in which Obligor has been granted rights pursuant to Trademark
Licenses is valid and enforceable; no claim has been made that the use of any of
the Trademarks or any trademark in which Obligor has been granted rights
pursuant to the Trademark Licenses does or may violate the rights of any third
person; upon registration of its Trademarks, Obligor will use for the duration
of this Security Agreement, proper statutory notice in connection with its use
of the Trademarks; and Obligor will use for the duration of this Security
Agreement, consistent standards of quality in its manufacture of products sold
under the Trademarks and any Trademarks in which Obligor has been granted rights
pursuant to the Trademark Licenses.
5. Covenants. Obligor covenants and agrees with Collateral Agent that
from and after the date of this Security Agreement and until the Secured
Obligations then due and payable are fully satisfied and the Credit Agreement
has been terminated:
(a) Further Documentation; Pledge of Instruments. At any time
and from time to time, upon the written request of Collateral Agent, and at the
sole expense of Obligor, Obligor will promptly and duly execute and deliver any
and all such further instruments, documents and agreements and take such further
action as Collateral Agent may reasonably deem desirable to obtain the full
benefits of this Security Agreement and of the rights and powers herein granted,
including, without limitation, using its best efforts to secure all consents and
approvals necessary or appropriate for the assignment to Collateral Agent of any
License or Contract held by Obligor or in which Obligor has any rights not
heretofore assigned, the filing of any financing or continuation statements
under the UCC with respect to the liens and security interests granted hereby
and transferring Collateral to Collateral Agent's possession (if a security
interest in such Collateral can be perfected only by possession). Obligor hereby
irrevocably makes, constitutes and appoints Collateral Agent (and all Persons
designated by Collateral Agent for that purpose) as Obligor's true and lawful
attorney, effective upon the failure or refusal of Obligor upon request to
execute and/or deliver to Collateral Agent any financing statement, continuation
statement, instrument, document, or agreement which Collateral Agent may
reasonably deem desirable to obtain the full benefits of this Security Agreement
and of the rights and powers granted hereunder (herein, "Supplemental
Documentation"), to sign the Obligor's name on any such Supplemental
Documentation and to deliver any such Supplemental Documentation to such Person
as Collateral Agent, in its sole discretion, shall elect. Obligor also hereby
authorizes Collateral Agent to file any financing or continuation statement
without the signature of Obligor to the extent permitted by applicable law.
Obligor agrees that a carbon, photographic, photostatic, or other reproduction
of this Security Agreement or of a financing statement is sufficient as a
financing statement and may be filed by Collateral Agent in any filing office.
If any amount payable under or in connection with any of the Collateral shall be
or become evidenced by any Instrument or Document, such Instrument or Document
shall be immediately pledged to Collateral Agent hereunder, and, if requested by
Collateral Agent, shall be duly endorsed in a manner satisfactory to Collateral
Agent and delivered to Collateral Agent.
(b) Indemnification. In any suit, proceeding or action brought
by Collateral Agent relating to any Account, Chattel Paper, Contract, General
Intangible or Instrument for any sum owing thereunder, or to enforce any
provision of any Account, Chattel Paper, Contract, General Intangible or
Instrument, Obligor will save, indemnify and keep Collateral Agent harmless from
and against all expense, loss or damage suffered by reason of any defense, set
off, counterclaim, recoupment or reduction of liability whatsoever of the
obligor thereunder, arising out of a breach by Obligor of any obligation
thereunder or arising out of any other agreement, indebtedness or liability at
any time owing to, or in favor of, such obligor or its successors from Obligor,
and all such obligations of Obligor shall be and remain enforceable against and
only against Obligor and shall not be enforceable against Collateral Agent.
(c) Limitation on Liens on Collateral. Obligor will not
create, permit or suffer to exist, and will defend the Collateral against and
take such other action as is necessary to remove, any Lien on the Collateral
except Permitted Liens, and will defend the right, title and interest of
Collateral Agent in and to any of Obligor's rights under the Chattel Paper,
Contracts, Documents, General Intangibles and Instruments and to the Equipment
and Inventory and in and to the Proceeds thereof against the claims and demands
of all Persons whomsoever.
(d) Maintenance of Insurance. Obligor will maintain, with
financially sound and reputable companies, casualty and liability insurance
policies with respect to the Collateral which conform in all respects to the
requirements of the Credit Agreement in respect thereof.
(e) Limitations on Disposition. Obligor will not sell, lease,
transfer or otherwise dispose of any of the Collateral, or attempt or contract
to do so except as may be expressly permitted to Obligor under the Credit
Agreement.
(f) Right of Inspection. Collateral Agent shall at all times
have the rights of inspection set forth in the Credit Agreement. Without
limitation of the foregoing, Collateral Agent and its representatives shall also
have the right, with reasonable notice and at all reasonable times, to enter
into and upon any premises where any of the Equipment or Inventory is located
for the purpose of inspecting the same, observing its use or otherwise
protecting its interests therein.
(g) Continuous Perfection. Obligor will not change its name,
identity or corporate structure in any manner which might make any financing or
continuation statement filed in connection herewith seriously misleading within
the meaning of Section 9-402(7) of the UCC (or any other then applicable
provision of the UCC) unless Obligor shall have given Collateral Agent at least
five (5) days' prior written notice thereof and shall have taken all action (or
made arrangements to take such action substantially simultaneously with such
change if it is impossible to take such action in advance) necessary or
reasonably requested by Collateral Agent to amend such financing statement or
continuation statement so that it is not seriously misleading.
(h) Consignment of Inventory. The Obligor shall not, at any
time during the term of this Security Agreement, place any Inventory on
consignment with any Person.
6. Covenants Regarding Specific Collateral. Obligor covenants and
agrees with Collateral Agent that from and after the date of this Security
Agreement and until the Secured Obligations then due and payable have been fully
satisfied and the Credit Agreement has been terminated:
(a) Covenants Relating to Accounts, Etc.
(i) Obligor will perform and comply with all material
obligations in respect of Accounts, Chattel Paper, Contracts
and Licenses and all other material agreements to which it
is a party or by which it is bound, unless and except to the
extent that the same are being properly contested in good
faith.
(ii) Obligor will not, without Collateral Agent's prior
written consent, after the occurrence of, and during the
continuance of, any Default or Event of Default, grant any
extension of the time of payment of any of the Accounts,
Chattel Paper or Instruments, compromise, compound or settle
the same for less than the full amount thereof, release,
wholly or partly, any Person liable for the payment thereof,
or allow any credit or discount whatsoever thereon other
than trade discounts granted in the ordinary course of
business of Obligor.
(iii) Collateral Agent may rely, in determining the
collateral value to the Lenders of the Accounts from time to
time, on all statements or representations made by Obligor
on or with respect to the Accounts in any certificate,
schedule or report and, unless otherwise indicated in
writing by Obligor, that: (A) They are genuine, are in all
respects what they purport to be, are not evidenced by a
judgment and are only evidenced by one, if any, executed
original instrument, agreement, contract, or document,
which, if requested by Collateral Agent, has been delivered
to Collateral Agent; (B) They represent undisputed, bona
fide transactions completed in accordance with the terms and
provisions contained in any documents related thereto; (C)
Except as set forth in Subsection (D) below, the amounts of
the face value shown on any certificate or report provided
to Collateral Agent, and/or any invoices and statements
delivered to Collateral Agent with respect to any Account
are actually and absolutely owing to Obligor and are not
contingent for any reason; (D) There are no setoffs,
counterclaims or disputes existing or asserted with respect
thereto and Obligor has not made any agreement with any
Account Debtor thereunder for any deduction therefrom,
except for discounts, rebates or allowances by Obligor in
the ordinary course of its business for prompt payments, all
of which discounts, rebates or allowances are reflected in
the calculation of the face value of each respective invoice
related thereto or have been disclosed by Obligor to
Collateral Agent in writing; (E) There are no facts, events,
or occurrences which in any way impair the validity or
enforceability thereof or reduce the amount payable
thereunder from the amount of the invoice face value shown
on any such certificate or report and on all contracts,
invoices and statements delivered to Collateral Agent with
respect thereto; (F) To the best of Obligor's knowledge, all
Account Debtors thereunder (x) had the capacity to contract
at the time any contract or other document giving rise to
the Account was executed and (y) are solvent; (G) Obligor
has no knowledge of any fact or circumstance which would
impair the validity or collectibility thereof; (H) To the
best of Obligor's knowledge, there are no proceedings or
actions which are threatened or pending against any Account
Debtor thereunder which might result in any material adverse
change in its financial condition; (I) No security interest
therein has been granted by Obligor to any Person other than
that granted to Collateral Agent pursuant hereto; and (J)
Each invoice or other evidence of payment obligation
furnished to Account Debtors with respect to outstanding
Accounts is issued in Obligor's company name; provided,
however, that Obligor may use other trade styles different
from its company name from time to time for invoicing
purposes so long as (i) Obligor shall notify Collateral
Agent in writing thereof prior to the use of such trade
styles; (ii) the Accounts so created and the payments
received with respect thereto shall be and remain Obligor's
property; (iii) no other Person shall have any interest in
such Accounts; and (iv) the trade styles so used are names
either owned by Obligor or for the use of which Obligor
shall have obtained prior approval.
(b) Maintenance of Equipment. Subject to Obligor's right to
dispose of Equipment from time to time to the extent expressly provided to
Obligor in the Credit Agreement, Obligor will at all times maintain and preserve
the Equipment in use or useful in the conduct of its business and keep the same
in good repair, working order and condition (taking into account ordinary wear
and tear) and from time to time make, or cause to be made, all needful and
proper repairs, renewals and replacements, betterments and improvements thereto
consistent with industry practice so that the business carried on in connection
therewith may be properly and advantageously conducted at all times.
(c) Covenants Regarding Patent and Trademark Collateral.
(i) Obligor shall notify Collateral Agent immediately
if it knows or has reason to know that any Patent or any
registration relating to any Trademark which is material to
the conduct of Obligor's business may become abandoned,
cancelled or declared invalid, or if any Trademark or the
invention disclosed in any of the Patents is dedicated to
the public domain, or of any adverse determination or
development in any proceeding in the United States Patent
and Trademark Office, in analogous offices or agencies in
other countries or in any court regarding Obligor's
ownership of any Patent or Trademark which is material to
the conduct of Obligor's business, its right to register the
same, or to keep and maintain the same.
(ii) If Obligor, either itself or through any
Collateral Agent, employee, licensee or designee, applies
for a patent or files an application for the registration of
any Trademark with the United States Patent and Trademark
Office or any analogous office or agency in any other
country or any political subdivision thereof or otherwise
obtains rights in any Patent or Trademark, Obligor will
promptly inform Collateral Agent, and, upon request of
Collateral Agent, execute and deliver any and all
agreements, instruments, documents, and papers as Collateral
Agent may request to evidence Collateral Agent's security
interest in such Patent or Trademark and the General
Intangibles, including, without limitation, in the case of
Trademarks, the goodwill of Obligor, relating thereto or
represented thereby.
(iii) Obligor will take all necessary actions to
prosecute vigorously each application and to attempt to
obtain the broadest Patent or registration of a Trademark
therefrom and to maintain each Patent and Trademark
registration which is material to the conduct of Obligor's
business, including, without limitation, with respect to
Patents, payments of required maintenance fees, and, with
respect to Trademarks, filing of applications for renewal,
affidavits of use and affidavits of incontestability. In the
event that Obligor fails to take any of such actions,
Collateral Agent may do so in Obligor's name or in
Collateral Agent's name and all reasonable expenses incurred
by Collateral Agent in connection therewith shall be paid by
Obligor in accordance with Section 9 hereof.
(iv) Obligor shall use its best efforts to detect
infringers of the Patents and Trademarks. In the event that
any of the Patents or Trademarks is infringed,
misappropriated or diluted by a third party, Obligor shall
notify Collateral Agent promptly after it learns thereof and
shall, if such Patents or Trademarks is material to the
conduct of Obligor's business, promptly take appropriate
action to protect such Patents or Trademarks. In the event
that Obligor fails to take any such actions Collateral Agent
may do so in Obligor's name or Collateral Agent's name and
all expenses incurred by Collateral Agent in connection
therewith shall be paid by Obligor in accordance with
Section 9 hereof.
7. Reporting and Recordkeeping. Obligor covenants and agrees with
Collateral Agent that from and after the date of this Security Agreement and
until the Secured Obligations have been fully satisfied and the Credit Agreement
has been terminated:
(a) Maintenance of Records Generally. Obligor will keep and
maintain at its own cost and expense satisfactory and complete records of the
Collateral, including, without limitation, a record of all payments received and
all credits granted with respect to the Collateral and all other dealings with
the Collateral. If requested, the Collateral Agent on the date hereof or at any
time hereafter, all Chattel Paper will be marked with the following legend:
"This writing and the obligations evidenced or secured hereby are subject to the
security interest of Bank of America, FSB, as Collateral Agent". If requested by
Collateral Agent, the security interest of Collateral Agent shall be noted on
the certificate of title of each vehicle. For Collateral Agent's further
security, Obligor agrees that Collateral Agent shall have a special property
interest in all of Obligor's books and records pertaining to the Collateral and,
upon the occurrence and during the continuation of any Event of Default, Obligor
shall deliver and turn over any such books and records to Collateral Agent or to
its representatives at any time on demand of Collateral Agent. Prior to the
occurrence of a Default or an Event of Default and upon reasonable notice from
Collateral Agent, Obligor shall permit any representative of Collateral Agent to
inspect such books and records and will provide photocopies thereof to
Collateral Agent.
(b) Special Provisions Regarding Maintenance of Records.
(i) Obligor shall deliver to Collateral Agent such
reports and schedules with respect to the Accounts as may be
required by the Credit Agreement or as Collateral Agent may
reasonably request from time to time, and upon the request
of Collateral Agent, invoice registers and copies, (or
originals to the extent necessary or advisable for
Collateral Agent to collect on Accounts after the occurrence
of an Event of Default), of all invoices, shipping receipts,
orders and other documents relating to the creation of the
Accounts listed on such certificates, reports and schedules.
Obligor shall keep complete and accurate records of its
Accounts.
(ii) Obligor shall maintain accurate, itemized records
itemizing and describing the kind, type, quantity and value
of its Equipment and shall furnish Collateral Agent with a
current schedule containing the foregoing information on an
annual basis and more often if requested by Collateral
Agent.
(c) Further Identification of Collateral. Obligor will if so
requested by Collateral Agent furnish to Collateral Agent, as often as
Collateral Agent reasonably requests, statements and schedules further
identifying and describing the Collateral and such other reports in connection
with the Collateral as Collateral Agent may reasonably request, all in
reasonable detail.
(d) Notices. Obligor will advise Collateral Agent promptly, in
reasonable detail, (i) of any material lien, security interest, encumbrance or
claim made or asserted against any of the Collateral, (ii) of any material
change in the composition of the Collateral, and (iii) of the occurrence of any
other event which would have a Material Adverse Effect on the aggregate value of
the Collateral or on the security interests created hereunder.
8. Collateral Agent's Appointment as Attorney-in-Fact. Obligor hereby
irrevocably constitutes and appoints Collateral Agent and any officer of
Collateral Agent thereof, with full power of substitution, as its true and
lawful attorney-in-fact with full irrevocable power and authority in the place
and stead of Obligor and in the name of Obligor or in its own name, from time to
time in Collateral Agent's discretion, for the purpose of carrying out the terms
of this Security Agreement, to take any and all appropriate action and to
execute and deliver any and all documents and instruments which may be necessary
or desirable to accomplish the purposes of this Security Agreement and, without
limiting the generality of the foregoing, hereby gives Collateral Agent the
power and right, on behalf of Obligor, without notice to or assent by Obligor to
do the following:
(i) to ask, demand, collect, receive and give
acquittances and receipts for any and all moneys due and to
become due under any Collateral and, in the name of Obligor
or its own name or otherwise, to take possession of and
endorse and collect any checks, drafts, notes, acceptances
or other Instruments for the payment of moneys due under any
Collateral and to file any claim or to take any other action
or proceeding in any court of law or equity or otherwise
deemed appropriate by Collateral Agent for the purpose of
collecting any and all such moneys due under any Collateral
whenever payable and to file any claim or to take any other
action or proceeding in any court of law or equity or
otherwise deemed appropriate by Collateral Agent for the
purpose of collecting any and all such moneys due under any
Collateral whenever payable;
(ii) to pay or discharge taxes, liens, security
interests or other Liens levied or placed on or threatened
against the Collateral, to effect any repairs or any
insurance called for by the terms of this Security Agreement
and to pay all or any part of the premiums therefor and the
costs thereof; and
(iii) (A) to direct any party liable for any payment
under any of the Collateral to make payment of any and all
moneys due, and to become due thereunder, directly to
Collateral Agent or as Collateral Agent shall direct; (B) to
receive payment of and receipt for any and all moneys,
claims and other amounts due, and to become due at any time,
in respect of or arising out of any Collateral; (C) to sign
and endorse any invoices, freight or express bills, bills of
lading, storage or warehouse receipts, drafts against
debtors, assignments, verifications and notices in
connection with accounts and other Documents constituting or
relating to the Collateral; (D) to commence and prosecute
any suits, actions or proceedings at law or in equity in any
court of competent jurisdiction to collect the Collateral or
any part thereof and to enforce any other right in respect
of any Collateral; (E) to defend any suit, action or
proceeding brought against Obligor with respect to any
Collateral; (F) to settle, compromise or adjust any suit,
action or proceeding described above and, in connection
therewith, to give such discharges or releases as Collateral
Agent may deem appropriate; (G) to license or, to the extent
permitted by an applicable license, sublicense, whether
general, special or otherwise, and whether on an exclusive
or non-exclusive basis, any Patent or Trademark, throughout
the world for such term or terms, on such conditions, and in
such manner, as Collateral Agent shall in its sole
discretion determine; and (H) generally to sell, transfer,
pledge, make any agreement with respect to or otherwise deal
with any of the Collateral as fully and completely as though
Collateral Agent were the absolute owner thereof for all
purposes, and to do, at Collateral Agent's option and
Obligor's expense, at any time, or from time to time, all
acts and things which Collateral Agent reasonably deems
necessary to protect, preserve or realize upon the
Collateral and Collateral Agent's Lien therein, in order to
effect the intent of this Security Agreement, all as fully
and effectively as Obligor might do.
(a) Collateral Agent agrees that, except upon the occurrence
and during the continuation of an Event of Default, it will not exercise the
power of attorney or any rights granted to Collateral Agent pursuant to this
Section 8 except for the rights granted under clause (ii) above, provided that
the foregoing shall not limit Collateral Agent's rights under the power of
attorney granted in Section 5(a) hereof. Obligor hereby ratifies, to the extent
permitted by law, all that said attorneys shall lawfully do or cause to be done
by virtue hereof. The power of attorney granted pursuant to this Section 8 is a
power coupled with an interest and shall be irrevocable until the Secured
Obligations are paid in full.
(b) The powers conferred on Collateral Agent hereunder are
solely to protect Collateral Agent's interests in the Collateral and shall not
impose any duty upon it to exercise any such powers. Collateral Agent shall be
accountable only for amounts that it actually receives as a result of the
exercise of such powers and neither it nor any of its officers, directors,
employees or agents shall be responsible to Obligor for any act or failure to
act, except for its own gross negligence or willful misconduct.
(c) Obligor also authorizes Collateral Agent, at any time and
from time to time upon the occurrence and during the continuation of any Event
of Default, (i) to communicate in its own name with any party to any Contract
with regard to the assignment of the right, title and interest of Obligor in and
under the Contracts hereunder and other matters relating thereto and (ii) to
execute, in connection with the sale provided for in Section 10 hereof, any
endorsements, assignments or other instruments of conveyance or transfer with
respect to the Collateral.
9. Performance by Collateral Agent of Obligor's Obligations. If Obligor
fails to perform or comply with any of its agreements contained herein and
Collateral Agent, as provided for by the terms of this Security Agreement, shall
(after giving any notices thereof to Obligor which are required under the Credit
Agreement) itself perform or comply, or otherwise cause performance or
compliance, with such agreement, the reasonable expenses of Collateral Agent
incurred in connection with such performance or compliance, together with
interest thereon at the rate then in effect in respect of the Revolving Loan,
shall be payable by Obligor to Collateral Agent on demand and shall constitute
Secured Obligations secured hereby.
10a Remedies and Rights Upon Default.
(a) If an Event of Default shall occur and be continuing,
Collateral Agent may exercise in addition to all other rights and
remedies granted to it in this Security Agreement and in any other
instrument or agreement securing, evidencing or relating to the
Secured Obligations, all rights and remedies of a secured party under
the UCC. Without limiting the generality of the foregoing, Obligor
expressly agrees that in any such event Collateral Agent, without
demand of performance or other demand, advertisement or notice of any
kind (except the notice specified below of time and place of public or
private sale) to or upon Obligor or any other person (all and each of
which demands, advertisements and/or notices are hereby expressly
waived to the maximum extent permitted by the UCC and other applicable
law), may forthwith collect, receive, appropriate and realize upon the
Collateral, or any part thereof, and/or may forthwith sell, lease,
assign, give an option or options to purchase, or sell or otherwise
dispose of and deliver said Collateral (or contract to do so), or any
part thereof, in one or more parcels at public or private sale or
sales, at any exchange or broker's board or at any of Collateral
Agent's offices or elsewhere at such prices as it may deem best, for
cash or on credit or for future delivery without assumption of any
credit risk. Collateral Agent shall have the right upon any such
public sale or sales, and, to the extent permitted by law, upon any
such private sale or sales, to purchase the whole or any part of said
Collateral so sold, free of any right or equity of redemption, which
equity of redemption Obligor hereby releases. Obligor further agrees,
at Collateral Agent's request, to assemble the Collateral and make it
available to Collateral Agent at places which Collateral Agent shall
reasonably select, whether at Obligor's premises or elsewhere.
Collateral Agent shall apply the net proceeds of any such collection,
recovery, receipt, appropriation, realization or sale, as provided in
Section 10(d) hereof, Obligor remaining liable for any deficiency
remaining unpaid after such application, and only after so paying over
such net proceeds and after the payment by Collateral Agent of any
other amount required by any provision of law, including Section
9-504(1)(c) of the UCC, need Collateral Agent account for the surplus,
if any, to Obligor. To the maximum extent permitted by applicable law,
Obligor waives all claims, damages, and demands against Collateral
Agent arising out of the repossession, retention or sale of the
Collateral except such as arise out of the gross negligence or wilful
misconduct of Collateral Agent. Obligor agrees that Collateral Agent
need not give more than ten (10) days' notice (which notification
shall be deemed given when mailed or delivered on an overnight basis,
postage prepaid, addressed to Obligor at its address referred to in
Section 14 hereof) of the time and place of any public sale or of the
time after which a private sale may take place and that such notice is
reasonable notification of such matters. Obligor shall remain liable
for any deficiency if the proceeds of any sale or disposition of the
Collateral are insufficient to pay all amounts to which Collateral
Agent is entitled, Obligor also being liable for the reasonable fees
actually incurred of any attorneys to collect such deficiency.
(b) Obligor also agrees to pay all reasonable costs of Collateral
Agent, including, without limitation, reasonable attorneys' fees,
incurred in connection with the enforcement of any of its rights and
remedies hereunder.
(c) Obligor hereby waives presentment, demand, protest or any
notice (to the maximum extent permitted by applicable law) of any kind
in connection with this Security Agreement or any Collateral, except
for any notices which are expressly required to be given under the
Credit Agreement or hereunder.
(d) The Proceeds of any sale, disposition or other realization
upon all or any part of the Collateral shall be distributed by
Collateral Agent in the manner prescribed therefor in the Credit
Agreement.
11a Grant of License to Use Patent and Trademark Collateral.
For the purpose of enabling Collateral Agent to exercise rights
and remedies under Section 10 hereof at such time as Collateral Agent,
without regard to this Section 11, shall be lawfully entitled to
exercise such rights and remedies, Obligor hereby grants to Collateral
Agent an irrevocable, non-exclusive license (exercisable without
payment of royalty or other compensation to Obligor) to use, license
or sublicense any Patent or Trademark, now owned or hereafter acquired
by Obligor, and wherever the same may be located, and including,
without limitation, in such license reasonable access to all media in
which any of the licensed items may be recorded or stored and to all
computer and automatic machinery software and programs used for the
compilation or printout thereof.
12a Limitation on Collateral Agent's Duty in Respect of Collateral.
Collateral
Agent shall not have any duty as to any Collateral in its
possession or control or in the possession or control of any agent or
nominee of it or any income thereon or as to the preservation of
rights against prior parties or any other rights pertaining thereto,
except that Collateral Agent shall use reasonable care with respect to
the Collateral in its possession or under its control. Upon request of
Obligor, Collateral Agent shall account for any moneys received by it
in respect of any foreclosure on or disposition of the Collateral.
13a Term of Agreement; Reinstatement.
This Agreement and the security interests granted hereunder shall
remain in full force and effect until the Secured Obligations have
been paid in full and the Credit Agreement has been terminated.
Further this Agreement shall remain in full force and effect and
continue to be effective should any petition be filed by or against
Obligor for liquidation or reorganization, should Obligor become
insolvent or make an assignment for the benefit of creditors or should
a receiver or trustee be appointed for all or any significant part of
Obligor's assets, and shall continue to be effective or be reinstated,
as the case may be, if at any time payment and performance of the
Secured Obligations, or any part thereof, is, pursuant to applicable
law, rescinded or reduced in amount, or must otherwise be restored or
returned by any obligee of the Secured Obligations, whether as a
"voidable preference", "fraudulent conveyance", or otherwise, all as
though such payment or performance had not been made. In the event
that any payment, or any part thereof, is rescinded, reduced, restored
or returned, the Secured Obligations shall be reinstated and deemed
reduced only by such amount paid and not so rescinded, reduced,
restored or returned.
14a Notices.
Except as otherwise provided herein, whenever it is provided
herein that any notice, demand, request, consent, approval,
declaration or other communication shall or may be given to or served
upon any of the parties by any other party, or whenever any of the
parties desires to give or serve upon any other party any other
communication with respect to this Security Agreement, each such
notice, demand, request, consent, approval, declaration or other
communication shall be in writing and shall be delivered in the manner
and to the addresses set forth in Section 12.2 of the Credit
Agreement.
15a Severability.
Any provision of this Security Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof, and any such
prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other
jurisdiction.
16a No Waiver; Cumulative Remedies.
Collateral Agent shall not by any act, delay, omission or
otherwise be deemed to have waived any of its rights or remedies
hereunder, and no waiver shall be valid unless in writing, signed by
Collateral Agent, and then only to the extent therein set forth. A
waiver by Collateral Agent of any right or remedy hereunder on any one
occasion shall not be construed as a bar to any right or remedy which
Collateral Agent would otherwise have had on any future occasion. No
failure to exercise nor any delay in exercising on the part of
Collateral Agent, any right, power or privilege hereunder, shall
operate as a waiver thereof, nor shall any single or partial exercise
of any right, power or privilege hereunder preclude any other or
future exercise thereof or the exercise of any other right, power or
privilege. The rights and remedies hereunder provided are cumulative
and may be exercised singly or concurrently, and are not exclusive of
any rights and remedies provided by law. None of the terms or
provisions of this Security Agreement may be waived, altered, modified
or amended except by an instrument in writing, duly executed by
Collateral Agent and, where applicable, by Obligor.
17a Successor and Assigns; Governing Law.
(a) This Security Agreement and all obligations of Obligor
hereunder shall be binding upon the successors and assigns of Obligor,
and shall, together with the rights and remedies of Collateral Agent
hereunder, inure to the benefit of Collateral Agent, all future
holders of the Notes and their respective successors and assigns. No
sales of participations, other sales, assignments, transfers or other
dispositions of any agreement governing or instrument evidencing the
Obligations or any portion thereof or interest therein shall in any
manner affect the security interest granted to Collateral Agent
hereunder.
(b) THIS SECURITY AGREEMENT SHALL BE GOVERNED BY, AND BE
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
GEORGIA, WITHOUT REGARD TO THE PROVISIONS THEREOF REGARDING CONFLICTS
OF LAWS.
18a Use and Protection of Patent and Trademark Collateral.
Notwithstanding anything to the contrary contained herein, unless
an Event of Default has occurred and is continuing, Collateral Agent
shall from time to time execute and deliver, upon the written request
of Obligor, any and all instruments, certificates or other documents,
in the form so requested, necessary or appropriate in the judgment of
Obligor to permit Obligor to continue to exploit, license, use, enjoy
and protect the Patents and Trademarks.
19a Further Indemnification.
Obligor agrees to pay, and to save Collateral Agent harmless
from, any and all liabilities with respect to, or resulting from any
delay in paying, any and all excise, sales or other similar taxes
which may be payable or determined to be payable with respect to any
of the Collateral or in connection with any of the transactions
contemplated by this Security Agreement.
IN WITNESS WHEREOF, Obligor has caused this Security Agreement
to be executed and delivered by its duly authorized officers, under seal, on the
date first set forth above.
-----------------------------------------
By:______________________________________
Name:________________________________
Title:_________________________________
Attest:___________________________________
Name:______________________________
Title:_______________________________
[SEAL]
Accepted and Acknowledged by:
BANK OF AMERICA, FSB,
Collateral Agent
By:_____________________________________
Name:________________________________
Title:_________________________________
SCHEDULE I
FILINGS
SCHEDULE II
LOCATION OF RECORDS AND CERTAIN COLLATERAL
EXHIBIT K
DATED January 15, 1998
XXXX LTD., a company
organized under the laws of the United Kingdom
- and -
BANK OF AMERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION, a national banking association
organized under the laws of the United States,
acting through its London Branch, as Collateral Agent
DEBENTURE
- 2 -
Date: January 15, 1998
Parties:
1. "The Chargee": Bank of America National Trust and Savings Association, a
national banking association, organized under the laws of the United
States, acting through its London Branch (registered no. ____________), as
Collateral Agent for itself, the other Lenders, the Issuing Bank, the
Overdraft Bank and all other Obligees under the Credit Agreement (defined
below), whose registered office is at
---------------------------------------------------------------------------
2. "The Company": Xxxx Ltd., a company organized under the laws of the United
Kingdom (registered no. ____________), whose registered office is at
--------------------------------------------------------------------------.
IT IS HEREBY AGREED as follows:
3. INTERPRETATION
3.1 In this Debenture and the Schedule hereto:
"Acts" means the Law of Property Xxx 0000 and the Insolvency Xxx 0000
(or any statutory modification or re-enactment of those acts for the
time being in force).
"Assets" means the property, undertaking and assets of the Company
expressed to be charged to the Chargee now or hereafter under Clause 2.
"Beneficiaries" means BOA, as a Lender and as Agent under the Credit
Agreement, BOAFSB, as a Lender and as Agent under the Credit Agreement,
the other Lenders, the Issuing Bank, the Overdraft Bank and all other
Obligees to whom Indebtedness is owed from time to time.
"Chargee" shall include, unless the context otherwise requires, the
Chargee and the Chargee's successors and assigns and all its branches
from time to time, whether in England or otherwise;
"Credit Agreement" means the Credit Agreement, dated as of even dated
herewith, among LCGI, the Company, as a borrower, certain other direct
and indirect subsidiaries of LCGI, as borrowers or guarantors, BOA,
acting individually and through its London Branch, as Issuing Bank and
the Overdraft Bank, Agent and a Lender, BOAFSB, as Agent and a Lender,
and all other Lenders, as such agreement may be amended or modified
from time to time.
"Enforcement Event" means any of the following events: (a) demand by
the Chargee hereunder for the payment or discharge of the Indebtedness,
when due; (b) the occurrence of an Event of Default; (c) the
presentation of a petition for the making of an administration order in
relation to the Company; or (d) the making of an order for the
compulsory winding-up of the Company or on the convening of a meeting
for the passing of a resolution for the voluntary winding-up of the
Company.
"Indebtedness" means all of the Company's obligations (as and when the
same become due) to pay principal, interest and other amounts under the
Credit Agreement, the Revolving Loan Notes, the CAPEX Loan Notes and
the other Loan Documents, all obligations of the Company in respect of
Letters of Credit issued by the Issuing Bank from time to time, all
other "Obligations" (as defined in the Credit Agreement) of the Company
owing at any time or from time to time to any Obligee and any other
reasonable costs, charges and legal expenses (on a full indemnity
basis) charged or incurred by the Chargee and including those arising
from the Chargee perfecting or enforcing or attempting to enforce this
Debenture or any other security (and its rights thereunder) held by the
Chargee from time to time.
"Receiver" has the meaning given to it in Clause 4.1.
"Subsidiary" has the meaning ascribed thereto in section 739 of the
Companies Xxx 0000.
3.2 Clause headings are for ease or reference only.
3.3 Xxx Xxxxxxxxxxxxxx Xxx 0000 shall apply to this Debenture as if it
were an enactment.
3.4 All capitalized terms used herein, e.g., "Obligees", but not expressly
defined herein, shall have the meanings given to such terms in the
Credit Agreement.
3.5 Notwithstanding anything to the contrary in this Agreement or in any
other Loan Document, (i) neither the International Borrower, nor any
International Subsidiary, shall, in any event, be deemed to be a
Guarantor in respect of any Obligations of the U.S. Borrower or any
U.S. Subsidiary, and (ii) no International Collateral shall secure the
payment or performance of the Obligations of the U.S. Borrower and any
U.S. Subsidiary.
4. CHARGE
4.1 The Company hereby covenants on demand to pay or discharge the
Indebtedness to the Chargee, the Lenders, the Issuing Bank and all
other Obligees to whom such Indebtedness is owed from time to time. As
security for the payment and discharge of the Indebtedness, the
Company, with full title guarantee, hereby charges to the Chargee, as
trustee for its benefit and the ratable benefit of each of the
Beneficiaries:
4.1.1 by way of fixed charge, all the goodwill and uncalled capital for the
time being of the Company; 4.1.2 by way of fixed charge, all book
debts and other debts now and in the future due or owing to the
Company;
4.1.3 by way of fixed charge, all intellectual property rights, choses in
action and claims now and in the future belonging to the Company;
4.1.4 by way of fixed charge, all rights and claims to which the
Company is now or may hereafter become entitled in relation to all
moneys now or at any time hereafter standing to the credit of any bank
accounts opened or maintained with the Chargee, together with all
rights relating or attaching thereto;
4.1.5 by way of floating charge, all the Company's present and future
undertakings and assets other than any assets for the time being
effectively charged to the Chargee by way of fixed charge and all
moneys paid into the account referred to in Clause 3.3.9 in respect of
the book and other debts subject to a fixed charge under Clause 2.1.2.
5. COVENANTS
5.1 For the purpose of Section 94(1) of the Law of Property Xxx 0000, the
Chargee hereby covenants with the Company that it will make further
advances to the Company on the terms and subject to the conditions of
the Credit Agreement.
5.2 The Company shall not without the consent in writing of the Chargee:
5.2.1 (except for charges in favor of the Chargee created under of pursuant
to this Debenture and except for "Permitted Liens", as defined in the
Credit Agreement) create or permit to subsist any mortgage, charge or
lien on any of its undertaking or assets;
5.2.2 sell, transfer, hire-out, lend or otherwise dispose of its
undertakings and other assets or any part of them, except as permitted
pursuant to Section 8.2 of the Credit Agreement;
1.1.1
5.2.3 grant or accept a surrender of any lease or licence
of or part with or share possession or occupation of
or enter into any onerous or restrictive obligation
in respect of the Assets or any part of them.
5.3 The Company shall:
5.3.1 promptly deposit with the Chargee all deeds and documents of title and
all insurance policies relating to the Assets; 5.3.2 keep such of the
Assets as are insurable comprehensively insured to the Chargee's
satisfaction in writing (and, if so required by the chargee, in the
joint names of itself and the Chargee) against loss or damage by fire
and such other risks as the Chargee may require, to their full
replacement value and, where such insurance is not in joint names,
procure that the Chargee's interest is noted on all policies under
this Clause 3.3.2; 5.3.3 duly and promptly pay all premiums and other
moneys necessary for maintaining the insurances required under Clause
3.3.2 and on demand produce the insurance policies and premium
receipts to the Chargee;
5.3.4 carry on and conduct its affairs and business in a proper and
efficient manner and shall not (save with the prior written consent of
the Chargee) make any substantial alterations to the nature of any
such business; 5.3.5 punctually pay or cause to be paid all rents,
rates, taxes, duties, assessments, fees, debts and all other amounts
due in respect of the Company's business and the Assets; 5.3.6 give,
or procure the giving, to the Chargee or any Lender or any person or
persons appointed by the Chargee or any Lender for this purpose such
information (including books and records) as to all matters relating
to the Assets or otherwise relating to its business or affairs as it
or they shall require and access to all premises as it or they shall
require, all in accordance with the provisions of Section 7.11 of the
Credit Agreement;
5.3.7 keep all buildings and all plant, machinery, fixtures, fittings and
other effects in good repair and working order;
5.3.8 deal with its book or other debts or securities for money in
accordance with directions from the Chargee from time to time (which
directions can include assignments thereof to the Chargee with or
without notice to debtors) and, in default of such directions, to get
them in and realize them in the ordinary and proper course of its
business; 5.3.9 if Chargee shall so require, pay into such account as
the Chargee may designate by notice to the Company from time to time
all moneys which it may receive in respect of the book debts and other
debts charged by Clause 2.1.2; and 5.3.10 promptly notify the Chargee
of any meeting to discuss, or any proposal or application for the
appointment of an administrator, receiver, liquidator or similar
official in respect of the Company or any of its assets and, if any
such official is appointed, of his appointment.
5.4 If the Company fails to perform any of its obligations under Clauses
3.3.2, 3.3.3, 3.3.5 or 3.3.6, the Chargee may take out or renew any
insurance or settle such liability or effect such repairs and take such
other action as it may deem appropriate to remedy such failure and
recover the premiums and other costs and expenses so incurred from the
Company on demand.
6. RECEIVER
6.1 On or at any time after the occurrence of an Enforcement Event (or if
so requested by the Company), the Chargee may appoint by writing any
person or persons to be an administrative receiver or a receiver and
manager or receivers and managers ("the Receiver", which expression
shall include any substituted receiver(s) and manager(s)), of all or
any part of the Assets. Without limiting the Chargee's rights under
this Clause 4.1 or at law, the Chargee may, whether or not any demand
has been made for payment of the Indebtedness, appoint a Receiver if
the Chargee shall determine that the security created by this Debenture
shall be in jeopardy.
6.2 The Chargee may from time to time determine the remuneration of the
Receiver and may remove the Receiver and appoint another in his place.
6.3 The Receiver shall be the Company's agent and shall have all powers
conferred upon an administrative receiver, a receiver and a receiver
and manager by the Acts. The Company alone shall be responsible for his
acts and omissions and for his remuneration. In particular, but without
limiting any general powers or the Chargee's power of sale, the
Receiver shall have power:
6.3.1 to take possession of collect and get in all or any part of the
Assets and for that purpose to take any proceedings in the Company's
name or otherwise as he shall think fit; 1.1.1
6.3.2 to carry on or concur in carrying on the Company's business and raise
money from the Chargee or others on the security of all or any part of
the Assets and manage, conduct, amalgamate, develop the same (and
concur in so doing) as he may think fit;
6.3.3 to sell, lease, hire-out or exchange the Company's business and the
Assets or any part of it or them (and concur in so doing) in such
manner and on such terms as he may think fit and to exercise all
rights, powers and discretions incidental to the ownership thereof;
6.3.4 to sell, let and/or terminate or to accept surrenders of leases
or tenancies of any part of the Assets, in such manner and on such
terms as he thinks fit; 6.3.5 to take, continue or defend any
proceedings and make any arrangement or compromise which the Chargee
as he shall think fit
6.3.6 to make and effect all repairs, improvements and insurance;
6.3.7 to appoint managers, officers and agents for any of the above
purposes, at such salaries and on such terms as the Receiver may
determine;
6.3.8 to call up any of the Company's uncalled capital;
6.3.9 to promote the formation of a subsidiary company or companies of the
Company, so that such subsidiary may purchase, lease, license or
otherwise acquire interests in all or any part of the Assets; and
6.3.10 to make any arrangement or compromise or disclaim, alter, enter into
or cancel any contract or liability or redeem any security which he
may think expedient;
6.3.11 to employ professional advisers and others as he deems necessary;
6.3.12 to do all other acts and things which he may consider to be
incidental or conductive to any of the above powers.
6.4 On or At any time after the occurrence of an Enforcement Event (or if
so requested by the Company) the Chargee may without further notice and
without first appointing a Receiver take possession of and hold all or
any part of the Assets and exercise all or any of the powers conferred
on mortgagees by the Acts as hereby varied or extended and all the
powers, authorities or discretions hereby conferred expressly or by
implication on any Receiver.
6.5 Section 109(1) of the Law of Property Act 1925 shall not apply to this
Debenture.
6.6 Any moneys received under this Debenture shall be applied, after the
discharge of all sums, obligations and liabilities having priority
thereto, in the following manner and order.
6.6.1 first, in satisfaction of all costs, charges and expenses properly
incurred and payments properly made by the Chargee or the Receiver and
of the remuneration of the Receiver;
6.6.2 secondly, in or towards satisfaction of the Indebtedness in such order
as the "Majority Lenders" (as defined in the Credit Agreement) shall
determine; and
6.6.3 thirdly, the surplus (if any) shall be paid to the person or persons
entitled to it.
7. MISCELLANEOUS
7.1 No statutory or other power of granting or agreeing to grant or of
accepting or agreeing to accept surrenders of leases or tenancies of
any part of any properties may be exercised by the Company without the
Chargee's prior written consent. The Chargee shall, as far is it is
lawful, be entitled to consolidate all or any of the security created
hereunder with any other securities, whether now in existence or
hereafter created. Section 93 of the Law of Property Xxx 0000 shall not
apply.
7.2 By notice in writing to the Company, the Chargee may at any time
convert the floating charge created by Clause 2.1.4 into a specific
charge over any Assets specified in the notice which the Chargee
considers to be in danger of being seized or sold under any form of
distress, attachment or other legal process (including a mareva
injunction) or to be otherwise in jeopardy. The Company at its expense
shall at any time on the Chargee's request promptly execute and deliver
to the Chargee any other or further mortgage, charge or other
instrument conferring a fixed charge on any of its assets (including
any of the Assets charged by Clause 2.1.5) or such other charge as the
Chargee may in its discretion think fit for securing the Indebtedness.
7.3 This Debenture shall be:
7.3.1 a continuing security to the Chargee, notwithstanding any settlement
of account or other matter or thing whatever;
7.3.2 without prejudice and in addition to any other security for the
Indebtedness (whether by way of mortgage, equitable charge or
otherwise) which the Chargee may hold now or hereafter on all or any
part of the Assets; and 1.1.1
7.3.3 in addition to any rights, powers and remedies at law.
7.4 Section 103 of the Law of Property Xxx 0000 shall not apply.
Notwithstanding any other provision of this Debenture, the statutory
power of sale shall be exercisable at any time after the execution of
this Debenture without notice to the Company. The Chargee shall not
exercise its power of sale until an Enforcement Event has occurred, but
this provision shall not affect a purchaser or put him on inquiry
whether such Enforcement Event has occurred.
7.5 No failure or delay on the Chargee's part in the exercise of any of its
rights, powers, and remedies (in this Clause 5 "rights(s)") under this
Debenture or at law shall operate or be construed as a waiver. No
waiver of any of the Chargee's rights shall preclude any further or
other exercise of that right or of any other right.
7.6 The Chargee may give time or other indulgence or make any other
arrangement, variation or release with any person in respect of the
Indebtedness or any other security or guarantee for the Indebtedness
without derogating from the Company's liabilities or the Chargee's
rights under this Debenture.
7.7 The Company certifies that the charges created by this Debenture do not
contravene any provision of its memorandum and articles of association
or any agreement binding on it or any of the Assets.
7.8 Subject only to Clause 10, on final payment and discharge of the
Indebtedness the Chargee will, at the request and cost of the Company,
re-assign to the Company the property assigned by or pursuant to these
presents.
7.9 A certificate of the Chargee as to the amount of the Indebtedness or
any of it or any other matter connected with it or this Debenture
shall, in the absence of manifest error, be conclusive evidence of the
facts stated in it.
7.10 The Company shall, on demand by the Chargee, execute and deliver all
such transfers, assignments, deeds or other documents, together with
any notices required in relation thereto, as the Chargee may require to
perfect its rights under this Debenture or to give effect to any sale
or disposal of any of the Assets.
8. POWER OF ATTORNEY
By way of security, the Company hereby irrevocably appoints the Chargee and any
Receiver jointly and severally as its attorney, with full power of delegation,
for it and in its name and on its behalf and as its act and deed or otherwise,
to seal, deliver and otherwise perfect any deed, assurance, agreement,
instrument or act which may be required or may be deemed proper or necessary by
the Chargee and any Receiver under the covenants or the other provisions hereof
or for giving the Chargee and any Receiver the full benefit hereof. 9. EXCLUSION
OF LIABILITY
9.1 The Chargee shall not in any circumstances by reason of it taking
possession of the Assets or any part thereof or for any other reason
whatsoever, and whether as mortgagee in possession or on any other
basis whatsoever, be liable to account to the Company for anything
except the Chargee's own actual receipts or be liable to the Company
for any loss or damage arising from any realization of the Assets or
any part thereof or from any act, default or omission of the Chargee or
any Receiver or any of his managers, officers or agents in relation to
the Assets or any part thereof or from any exercise or non-exercise by
the Chargee of any power, authority or discretion conferred upon it in
relation to the Assets or any part thereof by or pursuant to this
Debenture or by the Acts unless such loss or damage shall be caused by
the Chargee's own fraud.
9.2 All the provisions of Clause 7.1 shall mutatis mutandis apply in
relation to the liability of any Receiver in all respects as though
every reference in Clause 7.1 to the Chargee were instead a reference
to such Receiver.
10. NOTICE OF SUBSEQUENT CHARGE
If the Chargee receives notice of any subsequent charge or other interest
affecting all or any of the Assets it may open a new account or accounts for the
Company in its books and if it does not do so then unless it gives express
written notice to the contrary to the Company as from the time of receipt of
such notice by the Chargee all payments made by the Company to the Chargee in
the absence of any express appropriation by it to the contrary shall be treated
as having been credited to a new account of the Company and not as having been
applied in reduction of the amount due, owing or incurred to the Chargee at the
time when it received the notice.
11. POWER TO CREDIT TO A SUSPENSE ACCOUNT
Until payment and discharge in full of the Indebtedness any money received
hereunder may be placed and kept for such time as the Chargee considers prudent
in a separate or suspense account in the name of such person as the Chargee
thinks appropriate without any intermediate obligation to apply the same or any
part thereof in or towards discharge of any of the Indebtedness. Notwithstanding
any such payment in the event of any proceedings in or analogous to bankruptcy,
liquidation, administration, composition or arrangement the Chargee may prove
for and agree to accept any dividend or composition or arrangement in respect of
the whole or any part of the Indebtedness in the same manner as if the security
constituted by this Debenture had not been created.
12. AVOIDANCE OF PAYMENTS
No assurance, security or payment which may be avoided or adjusted under any
applicable law, and no release, settlement or discharge given or made by the
Chargee on the faith of any such assurance, security or payment, shall prejudice
or affect the right of the Chargee to recover the Indebtedness in full from the
Company (including any moneys which it may be compelled by due process of law to
refund pursuant to the provisions of any law relating to liquidation,
bankruptcy, insolvency or creditors' rights generally) and any costs payable by
it pursuant to (or otherwise incurred in connection with such process) or to
enforce the security created by or pursuant to this Debenture or require the
Chargee to release this Debenture or any other security created by or pursuant
to it.
13. DECLARATION OF TRUST
The Chargee shall hold the Assets upon trust for the Beneficiaries from time to
time.
14. COSTS
All costs, charges and expenses incurred by the Chargee and all other moneys
paid by the Chargee or the Receiver in perfecting or otherwise in connection
with this Debenture and all costs of the Chargee or the Receiver of all
proceedings for enforcement of this Debenture shall be recoverable from the
Company as a debt, shall bear interest at the highest default rate of interest
payable on the Indebtedness pursuant to the Credit Agreement (as well before as
after judgment) and shall be charged on the Assets.
15. SEVERANCE
If at any time any provision in this Debenture is or becomes invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions of this Debenture shall not be impaired.
16. NOTICES
16.1 Any notice required under this Agreement is to be given in writing
signed by or on behalf of the party giving it. A notice shall be served
by leaving it at or sending it by facsimile, pre-paid recorded delivery
or registered post, to the respective addresses of the parties set out
in this Agreement or such other addresses as they shall from time to
time notify to the other parties for the purposes of this clause.
16.2 Any notice served is deemed to have been received:
1.1
16.2.1 in the case of personal service upon delivery;
16.2.2 in the case of facsimile at the time of dispatch;
16.2.3 in the case of recorded delivery or registered post 48 hours from
the date of posting.
16.3 If the notice is sent by post it will be sufficient in proving service
to establish the envelope containing the notice was properly addressed
and posted and for service by facsimile to produce the sender's
"answerback".
17. LAW
This Debenture shall be governed by and construed in accordance with English
law.
IN WITNESS WHEREOF this Debenture was entered into as a Deed the day and year
first above written
EXECUTED AND DELIVERED )
as a Deed on behalf of )
the Company by: )
Director
Director/Secretary
EXECUTED AND DELIVERED )
as a Deed on behalf of )
the Chargee by: )
Director
Director/Secretary
EXHIBIT L
CERTIFICATE REGARDING SUBORDINATION OF PROMISSORY NOTES
Reference is made to that certain Credit Agreement (as amended,
restated, renewed, extended, supplemented or otherwise modified from time to
time, the "Credit Agreement") dated as of January 15, 1998, by and among Law
Companies Group, Inc., a Georgia corporation ("LCGI"), certain Subsidiaries of
the Company and Bank of America, FSB, among others. Capitalized terms used
herein and not otherwise defined herein shall have the meanings ascribed to them
in the Credit Agreement.
The undersigned, being a Responsible Officer of LCGI, does hereby
certify that except for the promissory note to Xxxxxx X. Xxxxxxxxx, dated June
1, 1992, in the face principal amount of $243,500.00, and the promissory note to
Xxxxxxx X. Xxxxx, dated January 1, 1995, in the face principal amount of
$12,359.00, all promissory notes evidencing all indebtedness of LCGI and its
Subsidiaries incurred for the purchase of stock of LCGI or such Subsidiaries are
in substantially the form of Section 11.19 to the Credit Agreement or contain a
subordination provision substantially in the form of the following:
The indebtedness evidenced by this Note represents a primary
obligation of Law Companies Group, Inc. and is and shall be
subordinated as to payment of principal and interest to all
bona fide indebtedness of Law Companies Group, Inc. payable to
any bank, and the terms of all agreements with any such bank
are incorporated herein by reference.
IN WITNESS WHEREOF the undersigned in the capacity specified below, has
duly executed this Certificate on behalf of LCGI (but shall have no personal
liability for the accuracy of the contents thereof) as of the 15th day of
January, 1998.
By:______________________________
Xxxxxx X. Xxxxxxxx
Executive Vice President, General Counsel
and Secretary
EXHIBIT M
LOAN CERTIFICATE
I hereby certify that I am the duly elected and acting Secretary (or
Assistant Secretary) of _______________, a ________________________________ (the
"Obligor"), and in connection with the transactions described in that certain
Credit Agreement, dated as of even date herewith ("Credit Agreement";
capitalized terms used herein and not defined herein have the meanings assigned
to them in the Credit Agreement), among Obligor, certain of its Subsidiaries or
Affiliates, Bank of America, FSB, individually as a Lender and as Agent, and
certain other financial institutions party thereto, I hereby further certify
that:
1. Attached hereto as Exhibit A is a true, correct, and complete copy
of the Certificate or Articles of Incorporation (or foreign equivalent thereof,
if any) of the Obligor, and all amendments thereto (if any);
2. Attached hereto as Exhibit B is a true, correct, and complete copy
of the By-Laws (or foreign equivalent thereof, if any) of the Obligor, and all
amendments thereto (if any), as in effect on the date hereof;
3. Attached hereto as Exhibit C is a true, correct, and complete copy
of resolutions of Obligor authorizing Obligor's borrowing under the Credit
Agreement and/or Obligor's guaranty of the obligations of other obligors under
the Credit Agreement, as applicable, and the execution, delivery and performance
by Obligor of the "Loan Documents" (as defined in the Credit Agreement);
4. Attached hereto as Exhibit D is a certificate of good standing (or
foreign equivalent thereof, if any) from Obligor's jurisdiction of organization
and Obligor has taken no action which would cause it not to be in good standing
under the laws of such jurisdiction as of the date of this Certificate;
5. Attached hereto as Exhibit E are true, correct and complete copies
of employment contracts (if any) for key management level employees of Obligor;
6. Attached hereto as Exhibit F are true, correct and complete copies
of any shareholders' or voting trust or other similar agreements among the
shareholders of Obligor.
7. The following Persons have been duly elected to the offices of
Obligor set forth beside their names, have been duly qualified, and as of the
date of the execution of the Credit Agreement were, and on the date hereof are,
holding the offices set forth opposite their respective names below, and the
signatures set forth opposite their respective names are their respective
genuine signatures:
Name Title Signatures
------------------- ------------------------ ------------------------
------------------- ------------------------ ------------------------
------------------- ------------------------ ------------------------
8. This Certificate is given for the benefit of the Obligees, and the
Obligees are entitled to rely upon the certifications hereinabove set forth in
connection with extending the financial accommodations described in the Credit
Agreement.
IN WITNESS WHEREOF, the undersigned, in the capacity specified below,
has duly executed this Certificate on behalf of the Obligor (but shall have no
personal liability for the accuracy of the contents thereof) as of the 15th day
of January, 1998.
-----------------------------------
Name:________________________
Title: [Assistant] Secretary
EXHIBIT N
S2-423095.2
CLOSING CERTIFICATE
Reference is made to that certain Credit Agreement of even date
herewith by and among Law Companies Group, Inc., a Georgia corporation (the
"Company"), as Borrowers' Representative and as a Guarantor, Law Engineering and
Environmental Services, Inc., a Georgia corporation, as U.S. Borrower, Xxxx,
Ltd., a company organized under the laws of the United Kingdom, as International
Borrower, certain direct and indirect subsidiaries of the Company, as
Guarantors, Bank of America National Trust and Savings Association, acting
individually and through its London branch, as Issuing Bank, Overdraft Bank,
International Agent, and a Lender, Bank of America, FSB, as U.S. Agent and a
Lender, and any other financial institutions from time to time party thereto, as
Lenders (the "Credit Agreement"). Capitalized terms used herein shall have the
meanings assigned to them in the Credit Agreement.
Pursuant to Section 5.1(26) of the Credit Agreement, the undersigned
officer of the Company, being a Responsible Officer of the Company, hereby
certifies on behalf of the Company that:
(i) The representations and warranties contained in Article VI of the
Credit Agreement are true and correct in all material respects on and as of the
date hereof;
(ii) No Default or Event of Default exists or would result from the
initial Borrowing on the Agreement Date; and
(iii) There has not occurred since September 30, 1997, any event or
circumstance that has resulted or could reasonably be expected to result in a
Material Adverse Effect.
IN WITNESS WHEREOF, the undersigned, in his capacity as a Responsible
Officer of the Company, has duly executed this certificate on behalf of the
Company (but shall have no personal liability for the accuracy of the contents
hereof) as of the _____ day of ____________, 1998.
LAW COMPANIES GROUP, INC.
By:_________________________________
Name: Xxxxxx X. Xxxxxxxx
Title: Executive Vice President, General
Counsel and Secretary
EXHIBIT O
JOINDER AGREEMENT
THIS JOINDER AGREEMENT (this "Agreement"), dated as of _____________,
____, is entered into between ___________________, a ______________ (the "New
Subsidiary Guarantor") and BANK OF AMERICA, FSB, a federal savings bank
organized under the laws of the United States ("BOAFSB"), in its capacity as
U.S. Agent (the "Agent") under that certain Credit Agreement, dated as of
January 15, 1998, among Law Companies Group, Inc., a Georgia corporation,
certain of its Subsidiaries, the Agent, and certain other Obligees, as the same
may be amended, modified, extended or restated from time to time, the "Credit
Agreement"). All capitalized terms used herein and not otherwise defined shall
have the meanings set forth in the Credit Agreement.
The New Subsidiary Guarantor and the Agent, acting in such capacity for
the benefit of all Obligees, hereby agree as follows:
1. The New Subsidiary Guarantor hereby acknowledges, agrees and
confirms that, by its execution of this Agreement, the New Guarantor Subsidiary
will be deemed to be an Obligor under the Credit Agreement and a "Guarantor" for
all purposes of the Credit Agreement and shall have all of the rights and
obligations of a Guarantor thereunder as if it had executed the Credit
Agreement. The New Subsidiary Guarantor hereby ratifies, as of the date hereof,
and agrees to be bound by, without limitation (a) all of the representations and
warranties of the Obligors set forth in Article VI of the Credit Agreement, (b)
all of the affirmative and negative covenants set forth in Articles VII and VIII
of the Credit Agreement and (c) all of the guaranty obligations set forth in
Section 2.19 of the Credit Agreement. Without limiting the generality of the
foregoing terms of this paragraph 1, as provided in Section 2.19 of the Credit
Agreement, the New Subsidiary Guarantor, subject to the limitations set forth in
the last sentence of Section 2.19(a) of the Credit Agreement, the last sentence
of Section 2.19(c) of the Credit Agreement and in Section 2.19(i) of the Credit
Agreement, hereby unconditionally guarantees, jointly and severally with the
other Guarantors, to the Lenders, the Issuing Bank and the Agent and their
respective successors and assigns and the subsequent holders of the Notes,
irrespective of the validity and enforceability of the Credit Agreement, the
Notes, or the other Loan Documents or the Obligations hereunder of the Borrowers
or a Borrower, as the case may be, the value or sufficiency of any Collateral or
any other circumstance that might otherwise affect the liability of a guarantor,
that all Obligations shall be promptly paid in full when due, whether at stated
maturity, by acceleration or otherwise, in accordance with the terms of the
Credit Agreement and of the other Loan Documents. Failing payment when due of
any amount so guaranteed for whatever reason, such Guarantor will be obligated
to pay the same immediately.
2. The New Subsidiary Guarantor is, simultaneously with the execution
of this Agreement, executing and delivering such Collateral Documents (and such
other documents and instruments) as are required to be executed and delivered by
it pursuant to Section 7.15 of the Credit Agreement.
3
3. The address of the New Subsidiary Guarantor for purposes of Section
12.2 of the Credit Agreement is a follows:
=======================
=======================
4. The New Subsidiary Guarantor hereby waives acceptance by the Agent,
the Lenders and the Issuing Bank of the guaranty by the New Subsidiary Guarantor
under the Credit Agreement upon the execution of this Agreement by the New
Subsidiary Guarantor.
5. This Agreement may be executed in any number of counterparts, each
of which when so executed and delivered shall be an original, but all of which
shall constitute one and the same instrument.
6. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH
THE LAW OF THE STATE OF GEORGIA; PROVIDED THAT THE AGENT, THE ISSUING BANK AND
THE LENDERS SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.
IN WITNESS WHEREOF, the New Subsidiary Guarantor has caused this
Agreement to be duly executed by its authorized officers, under seal, as of the
day and year first above written.
[NEW SUBSIDIARY GUARANTOR]
By:_____________________________
Name:___________________________
Title:____________________________
Attest: ___________________________
Name:______________________
Title: _______________________
[SEAL]
Acknowledged and Accepted:
BANK OF AMERICA, FSB, as U.S. Agent
By:______________________________
Name:___________________________
Title:____________________________
EXHIBIT P
ASSIGNMENT AND ACCEPTANCE
Dated ________ __, _________
Reference is made to the Credit Agreement, dated as of January
15, 1998 (together with all amendments and modifications thereto, the "Credit
Agreement") among Law Companies Group, Inc., a Georgia corporation, certain of
its Subsidiaries, Bank of America, FSB, individually as a Lender and as Agent,
and certain other financial institutions party thereto. Terms defined in the
Credit Agreement are used herein with the same meaning.
________________________________________ (the "Assignor") and
________________________________________ (the "Assignee") agree
as follows:
1. The Assignor hereby sells and assigns to the Assignee, and
the Assignee hereby purchases and assumes from the Assignor, a ________%
interest in and to all of the Assignor's rights and obligations under the Credit
Agreement as of the Effective Date (as defined below) (including, without
limitation, a _____% interest (which on the Effective Date hereof is
$__________) in the Assignor's Revolving Loan Commitment, a _____% interest
(which on the Effective Date hereof is $__________) in the Revolving Loans owing
to the Assignor (which on the Effective Date hereof is $__________), a _____%
interest (which on the Effective Date hereof is $__________) in the Assignor's
CAPEX Loan Commitment, a _____% interest (which on the Effective Date hereof is
$__________) in the CAPEX Loans owing to Assignor (which on the Effective Date
hereof is $_______) and a _____% interest (which on the Effective Date hereof is
$__________) in the Assignor's participation in the L/C obligations.
-2-
2. The Assignor (i) makes no representation or warranty and
assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with the Credit Agreement or the
execution, legality, validity, enforceability, genuineness, sufficiency or value
of the Credit Agreement or any other instrument or document furnished pursuant
thereto, other than that it is the legal and beneficial owner of the interest
being assigned by it hereunder, that such interest is free and clear of any
adverse claim, that as of the date hereof its Revolving Loan Commitment and
CAPEX Loan Commitment (without giving effect to assignments thereof which have
not yet become effective) are $__________ and $__________, respectively, and the
aggregate outstanding principal amount of Revolving Loans and CAPEX Loans owing
to it (without giving effect to assignments thereof which have not yet become
effective) are $__________ and $_________, respectively; (ii) makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of the Obligors or the performance or observance by the
Obligors of any of their obligations under the Credit Agreement or any other
instrument or document furnished pursuant thereto; and (iii) attaches the
Note(s) referred to in paragraph 1 above and requests that the Agent exchange
such Note(s) for [a new Revolving Loan Note dated _______ __, ____ in the
principal amount of $_________, payable to the order of Assignee, and a new
CAPEX Loan Note dated ___________ __, ____ in the principal amount of $________,
payable to the order of Assignee] [a new Revolving Loan Note and a new CAPEX
Loan Note, each dated ______ __, ____, in the respective principal amounts of
$_______ and $_______, payable to the order of Assignor, and a new Revolving
Loan Note and a new CAPEX Loan Note, each dated ________ __, ____, in the
respective principal amounts of $_______, payable to the order of Assignee].
3. The Assignee (i) confirms that it has received a copy of
the Credit Agreement, together with copies of the financial statements referred
to in Section 6.11 thereof (or any more recent financial statements of the
Borrower delivered pursuant to Sections 7.1 thereof) and such other documents
and information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and Acceptance; (ii) agrees that it will,
independently and without reliance upon the Agent, the Assignor or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under the Credit Agreement; (iii) confirms that it is an Eligible
Assignee; (iv) appoints and authorizes the Agent to take such action as agent on
its behalf and to exercise such powers under the Credit Agreement as are
delegated to the Agent by the terms thereof, together with such powers as are
reasonably incidental thereto; (v) agrees that it will perform in accordance
with their terms all of the obligations which by the terms of the Credit
Agreement are required to be performed by it as a Lender; (vi) specifies as its
Lending Office, the office or offices specified in Rider 1 and as its address
for notices the office specified in Rider 2, (vii) represents and warrants that
the execution, delivery and performance of this Assignment and Acceptance are
within its powers and have been duly authorized by all necessary corporate
action, and (viii) attaches the forms prescribed by the Internal Revenue Service
of the United States certifying as to the Assignee's status for purposes of
determining exemption from United States withholding taxes with respect to all
payments to be made to the Assignee under the Credit Agreement and the Notes or
such other documents as are necessary to indicate that all such payments are
subject to such taxes at a rate reduced by an applicable tax treaty.
4. The Effective Date for this Assignment and Acceptance shall
be __________________________ (the "Effective Date"). Following the execution of
this Assignment and Acceptance, it will be delivered to the Agent for execution
and acceptance by the Agent and, if in accordance with the provisions of Section
12.8(a) of the Credit Agreement, the consent of the Issuing Bank to the
assignment effected hereby is required, by the Issuing Bank.
5. Upon such execution and acceptance by the Agent and, if
required, the Issuing Bank, from and after the Effective Date, (i) the Assignee
shall be a party to the Credit Agreement and, to the extent rights and
obligations have been transferred to it by this Assignment and Acceptance, have
the rights and obligations of a Lender thereunder and (ii) the Assignor shall,
to the extent its rights and obligations have been transferred to the Assignee
by this Assignment and Acceptance, relinquish its rights (other than under
Section 12.5 of the Credit Agreement) and be released from its obligations under
the Credit Agreement.
6. Upon such execution and acceptance by the Agent and, if
required, the Issuing Bank, from and after the Effective Date, the Agent shall
make all payments in respect of the interest assigned hereby to the Assignee.
The Assignor and Assignee shall make all appropriate adjustments in payments for
periods prior to such acceptance by the Agent directly between themselves.
7. This Assignment and Acceptance shall be governed by, and
construed in accordance with, the laws of the State of Georgia.
[NAME OF ASSIGNOR]
By:_________________________________
Title:_____________________________
[NAME OF ASSIGNEE]
By:_________________________________
Title:_____________________________
BANK OF AMERICA, FSB as Agent
By:________________________________
Title:____________________________
[BANK OF AMERICA NATIONAL TRUST
AND SAVINGS ASSOCIATION, as Issuing Bank
By:_________________________________
Title:_____________________________]
Rider 1
Lending Office
Rider 2
Address for Notices
