CREDIT AGREEMENT
among
INTERCO INCORPORATED,
BROYHILL FURNITURE INDUSTRIES, INC.,
THE LANE COMPANY, INCORPORATED,
THOMASVILLE FURNITURE INDUSTRIES, INC.,
VARIOUS BANKS,
CREDIT LYONNAIS NEW YORK BRANCH,
as DOCUMENTATION AGENT,
NATIONSBANK, N.A.,
as SYNDICATION AGENT,
and
BANKERS TRUST COMPANY,
as ADMINISTRATIVE AGENT
Dated as of November 17 , 1994
and
Amended and Restated as of December 29, 1995
TABLE OF CONTENTS
Page
SECTION 1. Amount and Terms of Credit . . . . . . . . . . . 1
1.01 The Commitments . . . . . . . . . . . . . . . . . 1
1.02 Minimum Amount of Each Borrowing . . . . . . . . 6
1.03 Notice of Borrowing . . . . . . . . . . . . . . 6
1.04 Disbursement of Funds . . . . . . . . . . . . . 7
1.05 Notes . . . . . . . . . . . . . . . . . . . . . 8
1.06 Conversions . . . . . . . . . . . . . . . . . . 10
1.07 Pro Rata Borrowings . . . . . . . . . . . . . . 11
1.08 Interest . . . . . . . . . . . . . . . . . . . . 11
1.09 Interest Periods . . . . . . . . . . . . . . . . 12
1.10 Increased Costs, Illegality, etc. . . . . . . . 13
1.11 Compensation . . . . . . . . . . . . . . . . . . 16
1.12 Change of Lending Office . . . . . . . . . . . . 16
1.13 Replacement of Banks . . . . . . . . . . . . . . 16
SECTION 2. Letters of Credit . . . . . . . . . . . . . . . 18
2.01 Letters of Credit . . . . . . . . . . . . . . . 18
2.02 Minimum Stated Amount . . . . . . . . . . . . . 20
2.03 Letter of Credit Requests . . . . . . . . . . . 20
2.04 Letter of Credit Participations . . . . . . . . 21
2.05 Agreement to Repay Letter of Credit Drawings and
Acceptance Payments . . . . . . . . . . . . . . . . . . 23
2.06 Increased Costs . . . . . . . . . . . . . . . . 24
SECTION 3. Commitment Commission; Fees; Reductions of Commit-
ment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
3.01 Fees . . . . . . . . . . . . . . . . . . . . . . 25
3.02 Voluntary Termination of Unutilized Commitments 26
3.03 Mandatory Reduction of Commitments . . . . . . . 27
SECTION 4. Prepayments; Payments; Taxes . . . . . . . . . . 28
4.01 Voluntary Prepayments . . . . . . . . . . . . . 28
4.02 Mandatory Repayments, Cash Collateralizations and
Commitment Reductions . . . . . . . . . . . . . . . . . 30
4.03 Method and Place of Payment . . . . . . . . . . 39
4.04 Net Payments . . . . . . . . . . . . . . . . . . 39
SECTION 5. Conditions Precedent to Initial Credit Events . 41
5.01 Execution of Agreement; Notes . . . . . . . . . 42
5.02 Fees, etc. . . . . . . . . . . . . . . . . . . . 42
5.03 Opinions of Counsel . . . . . . . . . . . . . . 42
5.04 Corporate Documents; Proceedings; etc. . . . . . 42
5.05 Shareholders' Agreements; Collective Bargaining
Agree ments; Permitted Debt Agreements; Tax Sharing
Agreements . . . . . . . . . . . . . . . . . . . . . . . 43
5.06 Solvency; Environmental Analyses; Insurance
Matters . . . . . . . . . . . . . . . . . . . . 44
5.07 Receivables Facility . . . . . . . . . . . . . . 44
5.08 Subsidiary Guaranty . . . . . . . . . . . . . . 44
5.09 Pledge Agreement . . . . . . . . . . . . . . . . 44
5.10 Security Agreement . . . . . . . . . . . . . . . 45
5.11 Mortgages; Title Insurance; Surveys; etc. . . . 46
5.12 Consent Letter . . . . . . . . . . . . . . . . . 47
5.13 Adverse Change; Governmental Approvals; etc. . . 47
5.14 Litigation . . . . . . . . . . . . . . . . . . . 48
5.15 Pro Forma Balance Sheet; Financial Statements;
Projections . . . . . . . . . . . . . . . . . . . . 48
5.16 Acquisition; etc. . . . . . . . . . . . . . . . 49
5.17 Original Credit Agreement; etc. . . . . . . . . 49
SECTION 6. Conditions Precedent to All Credit Events . . . 50
6.01 No Default; Representations and Warranties . . . 50
6.02 Notice of Borrowing; Letter of Credit Request . 50
SECTION 7. Representations, Warranties and Agreements . . . 51
7.01 Corporate Status . . . . . . . . . . . . . . . . 51
7.02 Corporate Power and Authority . . . . . . . . . 51
7.03 No Violation . . . . . . . . . . . . . . . . . . 52
7.04 Governmental Approvals . . . . . . . . . . . . . 52
7.05 Financial Statements; Financial Condition;
Undisclosed Liabilities; Projections; etc. . . . . . . . 52
7.06 Litigation . . . . . . . . . . . . . . . . . . . 54
7.07 True and Complete Disclosure . . . . . . . . . . 55
7.08 Use of Proceeds; Margin Regulations . . . . . . 55
7.09 Tax Returns and Payments . . . . . . . . . . . . 56
7.10 Compliance with ERISA . . . . . . . . . . . . . 57
7.11 The Security Documents . . . . . . . . . . . . . 58
7.12 Representations and Warranties in Other Documents 59
7.13 Properties . . . . . . . . . . . . . . . . . . . 59
7.14 Capitalization . . . . . . . . . . . . . . . . . 60
7.15 Subsidiaries . . . . . . . . . . . . . . . . . . 61
7.16 Compliance with Statutes, etc. . . . . . . . . . 61
7.17 Investment Company Act . . . . . . . . . . . . . 61
7.18 Public Utility Holding Company Act . . . . . . . 61
7.19 Environmental Matters . . . . . . . . . . . . . 61
7.20 Labor Relations . . . . . . . . . . . . . . . . 62
7.21 Patents, Licenses, Franchises and Formulas . . . 63
7.22 Indebtedness . . . . . . . . . . . . . . . . . . 63
7.23 Transaction . . . . . . . . . . . . . . . . . . 63
7.24 Special Purpose Corporation . . . . . . . . . . 63
SECTION 8. Affirmative Covenants . . . . . . . . . . . . . 64
8.01 Information Covenants . . . . . . . . . . . . . 64
8.02 Books, Records and Inspections . . . . . . . . . 68
8.03 Maintenance of Property; Insurance . . . . . . . 68
8.04 Corporate Franchises . . . . . . . . . . . . . . 69
8.05 Compliance with Statutes, etc. . . . . . . . . . 70
8.06 Compliance with Environmental Laws . . . . . . . 70
8.07 ERISA . . . . . . . . . . . . . . . . . . . . . 71
8.08 End of Fiscal Years; Fiscal Quarters . . . . . . 72
8.09 Performance of Obligations . . . . . . . . . . . 73
8.10 Payment of Taxes . . . . . . . . . . . . . . . . 73
8.11 Additional Security; Further Assurances; Required
Appraisals . . . . . . . . . . . . . . . . . . . . . . . 73
8.12 Interest Rate Protection . . . . . . . . . . . . 75
8.13 Ownership of Subsidiaries . . . . . . . . . . . 76
8.14 Permitted Acquisitions . . . . . . . . . . . . . 76
8.15 Maintenance of Corporate Separateness . . . . . 77
8.16 Cash Management System . . . . . . . . . . . . . 77
SECTION 9. Negative Covenants . . . . . . . . . . . . . . 78
9.01 Liens . . . . . . . . . . . . . . . . . . . . . 78
9.02 Consolidation, Merger, Purchase or Sale of Assets,
etc. . . . . . . . . . . . . . . . . . . . . . 81
9.03 Dividends . . . . . . . . . . . . . . . . . . . 83
9.04 Indebtedness . . . . . . . . . . . . . . . . . . 84
9.05 Investments; etc. . . . . . . . . . . . . . . . 87
9.06 Transactions with Affiliates and Unrestricted
Subsidiaries . . . . . . . . . . . . . . . . . 89
9.07 Capital Expenditures . . . . . . . . . . . . . . 90
9.08 Consolidated Net Interest Coverage Ratio . . . . 91
9.09 Consolidated EBITDA; Cumulative Consolidated
EBITDA . . . . . . . . . . . . . . . . . . . . 92
9.10 Maximum Leverage Ratio . . . . . . . . . . . . . 94
9.11 Limitation on Modifications of and Payments on
Indebtedness and Qualified Preferred Stock;
Modifications of Certificate of Incorporation,
By-Laws and Certain Other Agreements; Surviving
Guaranty Payments, etc. . . . . . . . . . . . . 95
9.12 Limitation on Creation or Acquisition of Sub-
sidiaries and Restricted Subsidiaries . . . 97
9.13 Limitation on Issuance of Capital Stock . . . . 97
9.14 Business . . . . . . . . . . . . . . . . . . . . 99
9.15 Limitation on Certain Restrictions on
Subsidiaries . . . . . . . . . . . . . . . . . . 99
9.16 Limitation on Receivables and Receivables
Facility . . . . . . . . . . . . . . . .. . . .100
SECTION 10. Events of Default . . . . . . . . . . . . . . . 100
10.01 Payments . . . . . . . . . . . . . . . . . . . 100
10.02 Representations, etc. . . . . . . . . . . . . . 100
10.03 Covenants . . . . . . . . . . . . . . . . . . . 101
10.04 Default Under Other Agreements . . . . . . . . 101
10.05 Bankruptcy, etc. . . . . . . . . . . . . . . . 101
10.06 ERISA . . . . . . . . . . . . . . . . . . . . . 102
10.07 Security Documents . . . . . . . . . . . . . . 102
10.08 Subsidiary Guaranty . . . . . . . . . . . . . . 103
10.09 Judgments . . . . . . . . . . . . . . . . . . . 103
10.10 Change of Control . . . . . . . . . . . . . . . 103
10.11 Tax Sharing Agreement . . . . . . . . . . . . . 103
10.12 Receivables Repurchases . . . . . . . . . . . . 103
SECTION 11. Definitions and Accounting Terms . . . . . . . 104
11.01 Defined Terms . . . . . . . . . . . . . . . . . 104
SECTION 12. The Agents . . . . . . . . . . . . . . . . . . 150
12.01 Appointment . . . . . . . . . . . . . . . . . . 150
12.02 Nature of Duties . . . . . . . . . . . . . . . 150
12.03 Lack of Reliance on the Administrative Agent, the
Documentation Agent and the Syndication
Agent . . . . . . . . . . . . . . . . . . . 151
12.04 Certain Rights of the Administrative Agent, the
Documentation Agent and the Syndication
Agent . . . . . . . . . . . . . . . . . . . 151
12.05 Reliance . . . . . . . . . . . . . . . . . . . 152
12.06 Indemnification . . . . . . . . . . . . . . . . 152
12.07 The Administrative Agent, the Documentation Agent
and the Syndication Agent in its Individual Capacity . 152
12.08 Holders . . . . . . . . . . . . . . . . . . . . 153
12.09 Resignation by the Agents . . . . . . . . . . . 153
SECTION 13. Miscellaneous . . . . . . . . . . . . . . . . 154
13.01 Payment of Expenses, etc. . . . . . . . . . . . 154
13.02 Right of Setoff . . . . . . . . . . . . . . . . 155
13.03 Notices . . . . . . . . . . . . . . . . . . . . 155
13.04 Benefit of Agreement . . . . . . . . . . . . . 156
13.05 No Waiver; Remedies Cumulative . . . . . . . . 158
13.06 Payments Pro Rata . . . . . . . . . . . . . . . 158
13.07 Calculations; Computations . . . . . . . . . . 159
13.08 GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE;
WAIVER OF JURY TRIAL . . . . . . . . . . . . 160
13.09 Counterparts . . . . . . . . . . . . . . . . . 161
13.10 Effectiveness . . . . . . . . . . . . . . . . . 161
13.11 Headings Descriptive . . . . . . . . . . . . . 162
13.12 Amendment or Waiver; etc. . . . . . . . . . . . 162
13.13 Survival . . . . . . . . . . . . . . . . . . . 164
13.14 Domicile of Loans . . . . . . . . . . . . . . . 164
13.15 Limitation on Additional Amounts, etc. . . . . 165
13.16 Confidentiality . . . . . . . . . . . . . . . . 165
13.17 Register . . . . . . . . . . . . . . . . . . . 166
13.18 Addition of New Banks; Conversion of Original Loans
of Continuing Banks; Termination of Commitments
of Non-Continuing Banks . . . . . . . . . . 166
13.19 Post Closing Actions . . . . . . . . . . . . . 168
CREDIT AGREEMENT, dated as of November 17, 1994 and amended
and restated as of December 29, 1995, among INTERCO INCORPORATED,
a Delaware corporation ("INTERCO"), BROYHILL FURNITURE
INDUSTRIES, INC., a North Carolina corporation ("Broyhill"), THE
LANE COMPANY, INCORPORATED, a Virginia corporation ("Lane"),
THOMASVILLE FURNITURE INDUSTRIES, INC., a Pennsylvania
corporation ("Thomasville" and together with INTERCO, Broyhill
and Lane, each a "Borrower," and, collectively, the "Borrowers"),
the Banks party hereto from time to time, CREDIT LYONNAIS NEW
YORK BRANCH ("Credit Lyonnais"), as Documentation Agent,
NATIONSBANK, N.A. ("NationsBank"), as Syndication Agent, and
BANKERS TRUST COMPANY, as Administrative Agent (all capitalized
terms used herein and defined in Section 11 are used herein as
therein defined).
W I T N E S S E T H :
WHEREAS, the Borrowers (other than Thomasville), the
Original Banks and the Administrative Agent are party to a Credit
Agreement, dated as of November 17, 1994 (as in effect
immediately prior to the Restatement Effective Date, the
"Original Credit Agreement");
WHEREAS, as part of the Acquisition, INTERCO is acquiring
Thomasville and its Subsidiaries pursuant to the Stock Purchase
Agreement;
WHEREAS, the Borrowers, the Banks, the Documentation Agent,
the Syndication Agent and the Administrative Agent desire to
amend and restate the Original Credit Agreement in the form of
this Agreement to, inter alia, permit the Acquisition and the
financing therefor on the terms and subject to the conditions
provided herein and make available to the Borrowers, on a joint
and several basis, the respective credit facilities provided for
herein;
NOW, THEREFORE, the parties hereto agree that the Original
Credit Agreement shall be and hereby is amended and restated in
its entirety as follows:
SECTION 1. Amount and Terms of Credit.
1.01 The Commitments. (a) Subject to and upon
the terms and conditions set forth herein, each Bank with an A
Term Loan Commitment severally agrees, (A) in the case of each
Continuing Bank, to convert into A Term Loans (as hereinafter
defined), on the Restatement Effective Date, Original Term Loans
made by such Continuing Bank pursuant to the Original Credit
Agreement and outstanding on the Restatement Effective Date in an
aggregate principal amount equal to the lesser of (x) the
aggregate principal amount of such Original Term Loans made by
such Continuing Bank and so outstanding or (y) such Continuing
Bank's A Percentage (immediately after giving effect to the
occurrence of the Restatement Effective Date) of the aggregate
principal amount of Original Term Loans made by all Original
Banks and outstanding on the Restatement Effective Date and/or
(B) to make on the Restatement Effective Date a term loan (each,
an "A Term Loan" and, collectively, the "A Term Loans") to the
Borrowers, which A Term Loans (i) shall, at the option of the
Borrowers, be Base Rate Loans or Eurodollar Loans, provided that
(A) except as otherwise specifically provided in Section 1.10(b),
all Term Loans comprising the same Borrowing shall at all times
be of the same Type and (B) no more than two Borrowings of A Term
Loans to be maintained as Eurodollar Loans may be incurred or
maintained prior to the 60th day after the Restatement Effective
Date or, if later, the last day of the Interest Period applicable
to the second Borrowing of Eurodollar Loans referred to in the
succeeding parenthetical (each of which Borrowings of Eurodollar
Loans may only have an Interest Period of one month, and the
first of which Borrowings may only be made on a single date, on
or after the Restatement Effective Date and on or prior to the
fourth Business Day following the Restatement Effective Date and
the second of which Borrowings may only be made on the last day
of the Interest Period of the first such Borrowing), (ii) shall
equal for each Bank, in initial aggregate principal amount, an
amount (which, in the case of each Continuing Bank, shall include
the principal amount of Loans converted pursuant to clause (A)
above) which equals the A Term Loan Commitment of such Bank on
the Restatement Effective Date (before giving effect to any
reductions thereto on such date pursuant to Section 3.03(b)(i)
but after giving effect to any reductions thereto on or prior to
such date pursuant to Section 3.03(b)(ii)) and (iii) shall be
joint and several obligations of each of the Borrowers. Once
repaid, A Term Loans incurred hereunder may not be reborrowed.
(b) Subject to and upon the terms and
conditions set forth herein, each Bank with a B Term Loan
Commitment severally agrees to make on the Restatement Effective
Date a term loan (each, a "B Term Loan" and, collectively, the "B
Term Loans") to the Borrowers, which B Term Loans (i) shall, at
the option of the Borrowers, be Base Rate Loans or Eurodollar
Loans, provided that (A) except as otherwise specifically
provided in Section 1.10(b), all Term Loans comprising the same
Borrowing shall at all times be of the same Type and (B) no more
than two Borrowings of B Term Loans to be maintained as
Eurodollar Loans may be incurred prior to the 60th day after the
Restatement Effective Date or, if later, the last day of the
Interest Period applicable to the second Borrowing of Eurodollar
Loans referred to in the succeeding parenthetical (each of which
Borrowings of Eurodollar Loans may only have an Interest Period
of one month, and the first of which Borrowings may only be made
on the same date as the initial Borrowing of A Term Loans that
are maintained as Eurodollar Loans and the second of which
Borrowings may only be made on the last day of the Interest
Period of the first such Borrowing), (ii) shall equal for each
Bank, in initial aggregate principal amount, that amount which
equals the B Term Loan Commitment of such Bank on the Restatement
Effective Date (before giving effect to any reductions thereto on
such date pursuant to Section 3.03(c)(i) but after giving effect
to any reductions thereto on or prior to such date pursuant to
Section 3.03(c)(ii)) and (iii) shall be joint and several
obligations of each of the Borrowers. Once repaid, B Term Loans
incurred hereunder may not be reborrowed.
(c) Subject to and upon the terms and
conditions set forth herein, each Bank with a C Term Loan
Commitment severally agrees to make on the Restatement Effective
Date a term loan (each, a "C Term Loan" and, collectively, the "C
Term Loans") to the Borrowers, which C Term Loans (i) shall, at
the option of the Borrowers, be Base Rate Loans or Eurodollar
Loans, provided that (A) except as otherwise specifically
provided in Section 1.10(b), all Term Loans comprising the same
Borrowing shall at all times be of the same Type and (B) no more
than two Borrowings of C Term Loans to be maintained as
Eurodollar Loans may be incurred prior to the 60th day after the
Restatement Effective Date or, if later, the last day of the
Interest Period applicable to the second Borrowing of Eurodollar
Loans referred to in the succeeding parenthetical (each of which
Borrowings of Eurodollar Loans may only have an Interest Period
of one month, and the first of which Borrowings may only be made
on the same date as the initial Borrowing of A Term Loans
incurred on or after the Restatement Effective Date that are
maintained as Eurodollar Loans and the second of which Borrowings
may only be made on the last day of the Interest Period of the
first such Borrowing), (ii) shall equal for each Bank, in initial
aggregate principal amount, that amount which equals the C Term
Loan Commitment of such Bank on the Restatement Effective Date
(before giving effect to any reductions thereto on such date
pursuant to Section 3.03(d)(i) but after giving effect to any
reductions thereto on or prior to such date pursuant to Section
3.03(d)(ii)) and (iii) shall be joint and several obligations of
each of the Borrowers. Once repaid, C Term Loans incurred
hereunder may not be reborrowed.
(d) Subject to and upon the terms and
conditions set forth herein, each Bank with a Revolving Loan
Commitment severally agrees, at any time and from time to time on
and after the Restatement Effective Date and prior to the
Revolving Loan Maturity Date, to make a revolving loan or
revolving loans (each, a "Revolving Loan" and, collectively, the
"Revolving Loans") to the Borrowers, which Revolving Loans (i)
shall, at the option of the Borrowers, be Base Rate Loans or
Eurodollar Loans, provided that (A) except as otherwise
specifically provided in Section 1.10(b), all Revolving Loans
comprising the same Borrowing shall at all times be of the same
Type and (B) no more than two Borrowings of Revolving Loans to be
maintained as Eurodollar Loans may be incurred prior to the 60th
day after the Restatement Effective Date or, if later, the last
day of the Interest Period applicable to the second Borrowing of
Eurodollar Loans referred to in the succeeding parenthetical
(each of which Borrowings of Eurodollar Loans may only have an
Interest Period of one month, and the first of which Borrowings
may only be made on the same date as the initial Borrowing of A
Term Loans incurred on or after the Restatement Effective Date
that are maintained as Eurodollar Loans and the second of which
Borrowings may only be made on the last day of the Interest
Period of the first such Borrowing), (ii) may be repaid and
reborrowed in accordance with the provisions hereof, (iii) shall
not exceed for any Bank at any time outstanding that aggregate
principal amount which, when added to the product of (x) such
Bank's Adjusted Percentage and (y) the sum of (I) the aggregate
amount of all Letter of Credit Outstandings (exclusive of Unpaid
Drawings which are repaid with the proceeds of, and simultan-
eously with the incurrence of, the respective incurrence of
Revolving Loans) at such time and (II) the aggregate principal
amount of all Swingline Loans (exclusive of Swingline Loans which
are repaid with the proceeds of, and simultaneously with the
incurrence of, the respective incurrence of Revolving Loans) then
outstanding, equals the Revolving Loan Commitment of such Bank at
such time, (iv) shall not exceed for all Banks at any time out-
standing that aggregate principal amount which, when added to (x)
the aggregate amount of all Letter of Credit Outstandings
(exclusive of Unpaid Drawings which are repaid with the proceeds
of, and simultaneously with the incurrence of, the respective
incurrence of Revolving Loans) at such time and (y) the aggregate
principal amount of all Swingline Loans (exclusive of Swingline
Loans which are repaid with the proceeds of, and simultaneously
with the incurrence of, the respective incurrence of Revolving
Loans) then outstanding, equals the Total Revolving Loan
Commitment at such time, (v) shall not exceed in aggregate
principal amount on the Restatement Effective Date, when added to
the aggregate principal amount of Swingline Loans incurred on
such date, an amount equal to $75,000,000 and (vi) shall be the
joint and several obligations of each of the Borrowers.
(e) Subject to and upon the terms and
conditions herein set forth, BTCo in its individual capacity
agrees to make at any time and from time to time on and after the
Restatement Effective Date and prior to the Swingline Expiry
Date, a revolving loan or revolving loans (each, a "Swingline
Loan" and, collectively, the "Swingline Loans") to the Borrowers,
which Swingline Loans (i) shall be made and maintained as Base
Rate Loans, (ii) may be repaid and reborrowed in accordance with
the provisions hereof, (iii) shall not exceed in aggregate prin-
cipal amount at any time outstanding, when combined with the
aggregate principal amount of all Revolving Loans made by Non-
Defaulting Banks then outstanding and the Letter of Credit
Outstandings at such time, an amount equal to the Adjusted Total
Revolving Loan Commitment at such time (after giving effect to
any reductions to the Adjusted Total Revolving Loan Commitment on
such date), (iv) shall not exceed at any time outstanding the
Maximum Swingline Amount, (v) shall not exceed in aggregate
principal amount on the Restatement Effective Date, when added to
the aggregate principal amount of Revolving Loans incurred on
such date, an amount equal to $75,000,000, and (vi) shall be the
joint and several obligations of each of the Borrowers.
(f) On any Business Day, BTCo may, in its sole
discretion, give notice to the Banks that its outstanding
Swingline Loans shall be funded with a Borrowing of Revolving
Loans (provided that such notice shall be deemed to have been
automatically given upon the occurrence of a Default or an Event
of Default under Section 10.05 or upon the exercise of any of the
remedies provided in the last paragraph of Section 10), in which
case a Borrowing of Revolving Loans constituting Base Rate Loans
(each such Borrowing, a "Mandatory Borrowing") shall be made on
the immediately succeeding Business Day by all Banks with a
Revolving Loan Commitment (without giving effect to any
reductions thereto pursuant to the last paragraph of Section 10)
pro rata based on each Bank's Adjusted Percentage (determined
before giving effect to any termination of the Revolving Loan
Commitments pursuant to the last paragraph of Section 10) and the
proceeds thereof shall be applied directly to BTCo to repay BTCo
for such outstanding Swingline Loans. Each such Bank hereby
irrevocably agrees to make Revolving Loans upon one Business
Day's notice pursuant to each Mandatory Borrowing in the amount
and in the manner specified in the preceding sentence and on the
date specified in writing by BTCo notwithstanding that (i) the
amount of the Mandatory Borrowing may not comply with the minimum
amount for Borrowings otherwise required hereunder, (ii) whether
any conditions specified in Section 6 are then satisfied, (iii)
whether a Default or an Event of Default then exists, (iv) the
date of such Mandatory Borrowing and (v) the amount of the Total
Revolving Loan Commitment or the Adjusted Total Revolving Loan
Commitment at such time; provided that, in no event shall such
Bank be required to make Revolving Loans in excess of such Bank's
Revolving Loan Commitment. In the event that any Mandatory
Borrowing cannot for any reason be made on the date otherwise
required above (including, without limitation, as a result of the
commencement of a proceeding under the Bankruptcy Code with
respect to any of the Borrowers), then each such Bank hereby
agrees that it shall forthwith purchase (as of the date the
Mandatory Borrowing would otherwise have occurred, but adjusted
for any payments received from the Borrowers on or after such
date and prior to such purchase) from BTCo such participations in
the outstanding Swingline Loans as shall be necessary to cause
such Banks to share in such Swingline Loans ratably based upon
their respective Adjusted Percentages (determined before giving
effect to any termination of the Revolving Loan Commitments
pursuant to the last paragraph of Section 10), provided that (x)
all interest payable on the Swingline Loans shall be for the
account of BTCo until the date as of which the respective
participation is required to be purchased and, to the extent
attributable to the purchased participation, shall be payable to
the participant from and after such date and (y) at the time any
purchase of participations pursuant to this sentence is actually
made, the purchasing Bank shall be required to pay BTCo interest
on the principal amount of participation purchased for each day
from and including the day upon which the Mandatory Borrowing
would otherwise have occurred to but excluding the date of
payment for such participation, at the overnight Federal Funds
Rate for the first three days and at the rate otherwise
applicable to Revolving Loans maintained as Base Rate Loans here-
under for each day thereafter.
1.02 Minimum Amount of Each Borrowing. The aggregate
principal amount of each Borrowing of any Term Loans shall not be
less than $5,000,000 and, if greater, shall be in an integral
multiple of $1,000,000. The aggregate principal amount of each
Borrowing of Revolving Loans shall be not less than $1,000,000
and, if greater, shall be in an integral multiple of $500,000,
provided that Mandatory Borrowings shall be made in the amounts
required by Section 1.01(f). The aggregate principal amount of
each Borrowing of Swingline Loans shall not be less than $500,000
and, if greater, shall be in an integral multiple of $100,000.
More than one Borrowing may occur on the same date, but at no
time shall there be outstanding more than twelve Borrowings of
Eurodollar Loans.
1.03 Notice of Borrowing. (a) Whenever the Borrowers
desire to make a Borrowing hereunder (excluding Borrowings of
Swingline Loans and Mandatory Borrowings), an Authorized
Representative of the Borrowers shall give the Administrative
Agent at its Notice Office at least one Business Day's prior
written (or telephonic notice promptly confirmed in writing)
notice of each Base Rate Loan and at least three Business Days'
prior written (or telephonic notice promptly confirmed in writ-
ing) notice of each Eurodollar Loan to be made hereunder,
provided that any such notice shall be deemed to have been given
on a certain day only if given before 11:00 A.M. (New York
time) (12:00 Noon (New York time) in the case of a Borrowing of
Base Rate Loans) on such day. Each such written notice or
written confirmation of telephonic notice (each a "Notice of
Borrowing"), except as otherwise expressly provided in Section
1.10, shall be irrevocable and shall be given by the Borrowers in
the form of Exhibit A, appropriately completed to specify the
aggregate principal amount of the Loans to be made pursuant to
such Borrowing, the date of such Borrowing (which shall be a
Business Day), whether the Loans being made pursuant to such
Borrowing shall constitute A Term Loans, B Term Loans, C Term
Loans or Revolving Loans and whether the Loans being made
pursuant to such Borrowing are to be initially maintained as Base
Rate Loans or Eurodollar Loans and, if Eurodollar Loans, the
initial Interest Period to be applicable thereto. The
Administrative Agent shall promptly give each Bank which is re-
quired to make Loans of the Tranche specified in the respective
Notice of Borrowing, notice of such proposed Borrowing, of such
Bank's proportionate share thereof and of the other matters re-
quired by the immediately preceding sentence to be specified in
the Notice of Borrowing.
(b) (i) Whenever the Borrowers desire to make a
Borrowing of Swingline Loans hereunder, an Authorized
Representative of the Borrowers shall give BTCo not later than
12:00 Noon (New York time) on the date that a Swingline Loan is
to be made, written notice or telephonic notice promptly
confirmed in writing of each Swingline Loan to be made hereunder.
Each such notice shall be irrevocable and specify in each case
(A) the date of Borrowing (which shall be a Business Day) and (B)
the aggregate principal amount of the Swingline Loans to be made
pursuant to such Borrowing.
(ii) Mandatory Borrowings shall be made upon the notice
specified in Section 1.01(f), with each Borrower irrevocably
agreeing, by its incurrence of any Swingline Loan, to the making
of the Mandatory Borrowings as set forth in Section 1.01(f).
(c) Without in any way limiting the obligation of the
Borrowers to confirm in writing any telephonic notice of any
Borrowing of Loans, the Administrative Agent may act without
liability upon the basis of telephonic notice of such Borrowing,
believed by the Administrative Agent in good faith to be from an
Authorized Representative of any Borrower prior to receipt of
written confirmation. In each such case, each Borrower hereby
waives the right to dispute the Administrative Agent's record of
the terms of such telephonic notice of such Borrowing of Loans.
1.04 Disbursement of Funds. Except as otherwise
specifically provided in the immediately succeeding sentence, no
later than 12:00 Noon (New York time) on the date specified in
each Notice of Borrowing (or (x) in the case of Swingline Loans,
not later than 2:00 P.M. (New York time) on the date specified
pursuant to Section 1.03(b)(i) or (y) in the case of Mandatory
Borrowings, not later than 12:00 Noon (New York time) on the date
specified in Section 1.01(f)), each Bank with a Commitment of the
respective Tranche will make available its pro rata portion of
each such Borrowing requested to be made on such date (or in the
case of Swingline Loans, BTCo shall make available the full
amount thereof). All such amounts shall be made available in
Dollars and in immediately available funds at the Payment Office
of the Administrative Agent, and the Administrative Agent will
make available to the Borrowers at the Payment Office the
aggregate of the amounts so made available by the Banks (prior to
1:00 P.M. (New York time)) on such day, to the extent of funds
actually received by the Administrative Agent prior to 12:00 Noon
(New York time) on such day). Unless the Administrative Agent
shall have been notified by any Bank prior to the date of
Borrowing that such Bank does not intend to make available to the
Administrative Agent such Bank's portion of any Borrowing to be
made on such date, the Administrative Agent may assume that such
Bank has made such amount available to the Administrative Agent
on such date of Borrowing and the Administrative Agent may, in
reliance upon such assumption, make available to the Borrowers a
corresponding amount. If such corresponding amount is not in
fact made available to the Administrative Agent by such Bank, the
Administrative Agent shall be entitled to recover such corre-
sponding amount on demand from such Bank. If such Bank does not
pay such corresponding amount forthwith upon the Administrative
Agent's demand therefor, the Administrative Agent shall promptly
notify the Borrowers to immediately pay such corresponding amount
to the Administrative Agent. The Administrative Agent shall also
be entitled to recover on demand from such Bank or the Borrowers,
as the case may be, interest on such corresponding amount in
respect of each day from the date such corresponding amount was
made available by the Administrative Agent to the Borrowers until
the date such corresponding amount is recovered by the
Administrative Agent, at a rate per annum equal to (i) if
recovered from such Bank, the overnight Federal Funds Rate and
(ii) if recovered from the Borrowers, the rate of interest appli-
cable to the respective Borrowing, as determined pursuant to Sec-
tion 1.08. Nothing in this Section 1.04 shall be deemed to
relieve any Bank from its obligation to make Loans hereunder or
to prejudice any rights which the Borrowers may have against any
Bank as a result of any failure by such Bank to make Loans here-
under.
1.05 Notes. (a) The Borrowers' obligation to pay the
principal of, and interest on, the Loans made by each Bank shall
be evidenced (i) if A Term Loans, by a promissory note duly
executed and delivered by the Borrowers substantially in the form
of Exhibit B-1 with blanks appropriately completed in conformity
herewith (each, an "A Term Note" and, collectively, the "A Term
Notes"), (ii) if B Term Loans, by a promissory note duly executed
and delivered by the Borrowers substantially in the form of Exhi-
bit B-2 with blanks appropriately completed in conformity
herewith (each, a "B Term Note" and, collectively, the "B Term
Notes"), (iii) if C Term Loans, by a promissory note duly
executed and delivered by the Borrowers substantially in the form
of Exhibit B-3 with blanks appropriately completed in conformity
herewith (each, a "C Term Note" and, collectively, the "C Term
Notes"), (iv) if Revolving Loans, by a promissory note duly
executed and delivered by the Borrowers substantially in the form
of Exhibit B-4, with blanks appropriately completed in conformity
herewith (each, a "Revolving Note" and, collectively, the
"Revolving Notes") and (v) if Swingline Loans, by a promissory
note duly executed and delivered by the Borrowers substantially
in the form of Exhibit B-5, with blanks appropriately completed
in conformity herewith (the "Swingline Note").
(b) The A Term Note issued to each Bank shall (i) be
executed by the Borrowers, (ii) be payable to the order of such
Bank or its registered assigns and be dated the Restatement
Effective Date, (iii) be in a stated principal amount equal to
the aggregate principal amount of A Term Loans made by such Bank
on the Restatement Effective Date and be payable in the principal
amount of A Term Loans evidenced thereby, (iv) mature on the A
Term Loan Maturity Date, (v) bear interest as provided in the
appropriate clause of Section 1.08 in respect of the Base Rate
Loans and Eurodollar Loans, as the case may be, evidenced
thereby, (vi) be subject to mandatory repayment as provided in
Section 4.02 and (vii) be entitled to the benefits of this
Agreement and the other Credit Documents.
(c) The B Term Note issued to each Bank shall (i) be
executed by the Borrowers, (ii) be payable to the order of such
Bank or its registered assigns and be dated the Restatement
Effective Date, (iii) be in a stated principal amount equal to
the aggregate principal amount of B Term Loans made by such Bank
on the Restatement Effective Date and be payable in the principal
amount of B Term Loans evidenced thereby, (iv) mature on the B
Term Loan Maturity Date, (v) bear interest as provided in the
appropriate clause of Section 1.08 in respect of the Base Rate
Loans and Eurodollar Loans, as the case may be, evidenced
thereby, (vi) be subject to mandatory repayment as provided in
Section 4.02 and (vii) be entitled to the benefits of this
Agreement and the other Credit Documents.
(d) The C Term Note issued to each Bank shall (i) be
executed by the Borrowers, (ii) be payable to the order of such
Bank or its registered assigns and be dated the Restatement
Effective Date, (iii) be in a stated principal amount equal to
the aggregate principal amount of C Term Loans made by such Bank
on the Restatement Effective Date and be payable in the principal
amount of C Term Loans evidenced thereby, (iv) mature on the C
Term Loan Maturity Date, (v) bear interest as provided in the
appropriate clause of Section 1.08 in respect of the Base Rate
Loans and Eurodollar Loans, as the case may be, evidenced
thereby, (vi) be subject to mandatory repayment as provided in
Section 4.02 and (vii) be entitled to the benefits of this
Agreement and the other Credit Documents.
(e) The Revolving Note issued to each Bank shall (i)
be executed by the Borrowers, (ii) be payable to the order of
such Bank or its registered assigns and be dated the Restatement
Effective Date, (iii) be in a stated principal amount equal to
the Revolving Loan Commitment of such Bank and be payable in the
principal amount of the Revolving Loans evidenced thereby, (iv)
mature on the Revolving Loan Maturity Date, (v) bear interest as
provided in the appropriate clause of Section 1.08 in respect of
the Base Rate Loans and Eurodollar Loans, as the case may be,
evidenced thereby, (vi) be subject to mandatory repayment as pro-
vided in Section 4.02 and (vii) be entitled to the benefits of
this Agreement and the other Credit Documents.
(f) The Swingline Note issued to BTCo shall (i) be
executed by the Borrowers, (ii) be payable to the order of BTCo
or its registered assigns and be dated the Restatement Effective
Date, (iii) be in a stated principal amount equal to the Maximum
Swingline Amount and be payable in the principal amount of the
outstanding Swingline Loans evidenced thereby from time to time,
(iv) mature on the Swingline Expiry Date, (v) bear interest as
provided in the appropriate clause of Section 1.08 in respect of
the Base Rate Loans evidenced thereby and (vi) be entitled to the
benefits of this Agreement and the other Credit Documents.
(g) Each Bank will note on its internal records the
amount of each Loan made by it and each payment in respect
thereof and will prior to any transfer of any of its Notes
endorse on the reverse side thereof the outstanding principal
amount of Loans evidenced thereby. Failure to make any such
notation or any error in any such notation or endorsement shall
not affect the Borrowers' obligations in respect of such Loans.
1.06 Conversions. The Borrowers shall have the option to
convert, on any Business Day occurring after the Restatement
Effective Date, all or a portion equal to at least (1) in the
case of a conversion of Term Loans, $5,000,000 (and, if greater,
in an integral multiple of $1,000,000) and (2) in the case of a
conversion of Revolving Loans, $1,000,000 (and, if greater, in an
integral multiple of $500,000), of the outstanding principal
amount of Loans made pursuant to one or more Borrowings (so long
as of the same Tranche) of one or more Types of Loans into a
Borrowing (of the same Tranche) of another Type of Loan, provided
that (i) except as otherwise provided in Section 1.10(b), Euro-
dollar Loans may be converted into Base Rate Loans only on the
last day of an Interest Period applicable to the Loans being
converted and no such partial conversion of Eurodollar Loans
shall reduce the outstanding principal amount of such Eurodollar
Loans made pursuant to a single Borrowing to less than (x) in the
case of Term Loans, $5,000,000 and (y) in the case of Revolving
Loans, $1,000,000, (ii) Base Rate Loans may only be converted
into Eurodollar Loans if no Default or Event of Default is in
existence on the date of the conversion, (iii) prior to the 60th
day after the Restatement Effective Date, conversions of Base
Rate Loans into Eurodollar Loans may only be made if the
conversion is effective on the first day of an Interest Period
referred to in clause (B) of the respective provisos to Sections
1.01(a)(i), 1.01(b)(i), 1.01(c)(i) and 1.01(d)(i) and so long as
such conversion does not result in a greater number of Borrowings
of Eurodollar Loans prior to the 60th day after the Restatement
Effective Date or, if later, the last day of the Interest Period
applicable to the second Borrowing of Eurodollar Loans referred
to in said clauses, as are permitted under Sections 1.01(a)
through (d), (iv) no conversion pursuant to this Section 1.06
shall result in a greater number of Borrowings of Eurodollar
Loans than is permitted under Section 1.02 and (v) Swingline
Loans may not be converted pursuant to this Section 1.06. Each
such conversion shall be effected by the Borrowers by giving the
Administrative Agent at its Notice Office prior to 12:00 Noon
(New York time) at least three Business Days' prior notice (each
a "Notice of Conversion") specifying the Loans to be so con-
verted, the Borrowing or Borrowings pursuant to which such Loans
were made and, if to be converted into Eurodollar Loans, the
Interest Period to be initially applicable thereto. The
Administrative Agent shall give each Bank prompt notice of any
such proposed conversion affecting any of its Loans.
1.07 Pro Rata Borrowings. All Borrowings of Term Loans and
Revolving Loans under this Agreement shall be incurred from the
Banks pro rata on the basis of their A Term Loan Commitments, B
Term Loan Commitments, C Term Loan Commitments or Revolving Loan
Commitments, as the case may be, provided that all Borrowings of
Revolving Loans made pursuant to a Mandatory Borrowing shall be
incurred from the Banks pro rata on the basis of their Adjusted
Percentages. It is understood that no Bank shall be responsible
for any default by any other Bank of its obligation to make Loans
hereunder and that each Bank shall be obligated to make the Loans
provided to be made by it hereunder, regardless of the failure of
any other Bank to make its Loans hereunder.
1.08 Interest. (a) The Borrowers jointly and severally
agree to pay interest in respect of the unpaid principal amount
of each Base Rate Loan from the date the proceeds thereof are
made available to the Borrowers until the earlier of (i) the
maturity (whether by acceleration or otherwise) of such Base Rate
Loan and (ii) the conversion of such Base Rate Loan to a
Eurodollar Loan pursuant to Section 1.06, at a rate per annum
which shall be equal to the sum of the Applicable Margin plus the
Base Rate in effect from time to time.
(b) The Borrowers jointly and severally agree to pay
interest in respect of the unpaid principal amount of each
Eurodollar Loan from the date the proceeds thereof are made
available to the Borrowers until the earlier of (i) the maturity
(whether by acceleration or otherwise) of such Eurodollar Loan
and (ii) the conversion of such Eurodollar Loan to a Base Rate
Loan pursuant to Section 1.06 or 1.10, as applicable, at a rate
per annum which shall, during each Interest Period applicable
thereto, be equal to the sum of the Applicable Margin plus the
Eurodollar Rate for such Interest Period.
(c) Overdue principal and, to the extent permitted by
law, overdue interest in respect of each Loan and any other
overdue amount payable hereunder shall, in each case, bear
interest at a rate per annum equal to the greater of (x) 2% per
annum in excess of the rate otherwise applicable to Base Rate
Loans from time to time and (y) the rate which is 2% in excess of
the rate then borne by such Loans, in each case with such
interest to be payable on a joint and several basis by the
Borrowers on demand.
(d) Accrued (and theretofore unpaid) interest shall be
payable (i) in respect of each Base Rate Loan, quarterly in
arrears on each Quarterly Payment Date, (ii) in respect of each
Eurodollar Loan, on the last day of each Interest Period
applicable thereto and, in the case of an Interest Period in
excess of three months, on each date occurring at three month
intervals after the first day of such Interest Period and (iii)
in respect of each Loan other than Swingline Loans and Revolving
Loans which are Base Rate Loans, on any repayment or prepayment
(on the amount repaid or prepaid), and in respect of each Loan,
at maturity (whether by acceleration or otherwise) and, after
such maturity, on demand.
(e) Upon each Interest Determination Date, the
Administrative Agent shall determine the Eurodollar Rate for the
respective Interest Period or Interest Periods and shall promptly
notify the Borrowers and the Banks thereof. Each such deter-
mination shall, absent manifest error, be final and conclusive
and binding on all parties hereto.
1.09 Interest Periods. At the time the Borrowers give any
Notice of Borrowing or Notice of Conversion in respect of the
making of, or conversion into, any Eurodollar Loan (in the case
of the initial Interest Period applicable thereto) or on the
third Business Day prior to the expiration of an Interest Period
applicable to such Eurodollar Loan (in the case of any subsequent
Interest Period), the Borrowers shall have the right to elect, by
having an Authorized Representative of the Borrowers give the
Administrative Agent notice thereof, the interest period (each an
"Interest Period") applicable to such Eurodollar Loan, which
Interest Period shall, at the option of the Borrowers, be a one,
two, three or six-month period, provided that:
(i) all Eurodollar Loans comprising a Borrowing shall
at all times have the same Interest Period;
(ii) the initial Interest Period for any Eurodollar Loan
shall commence on the date of Borrowing of such Eurodollar
Loan (including the date of any conversion thereto from a
Loan of a different Type) and each Interest Period occurring
thereafter in respect of such Eurodollar Loan shall commence
on the day on which the next preceding Interest Period
applicable thereto expires;
(iii) if any Interest Period relating to a Eurodollar
Loan begins on a day for which there is no numerically
corresponding day in the calendar month at the end of such
Interest Period, such Interest Period shall end on the last
Business Day of such calendar month;
(iv) if any Interest Period would otherwise expire on a
day which is not a Business Day, such Interest Period shall
expire on the next succeeding Business Day; provided,
however, that if any Interest Period for a Eurodollar Loan
would otherwise expire on a day which is not a Business Day
but is a day of the month after which no further Business
Day occurs in such month, such Interest Period shall expire
on the next preceding Business Day;
(v) no Interest Period may be selected at any time when
a Default or an Event of Default is then in existence;
(vi) no Interest Period in respect of any Borrowing
shall be selected which extends beyond (w) the A Term Loan
Maturity Date, in the case of A Term Loans, (x) the B Term
Loan Maturity Date, in the case of B Term Loans, (y) the C
Term Loan Maturity Date, in the case of C Term Loans or (z)
the Revolving Loan Maturity Date, in the case of Revolving
Loans; and
(vii) no Interest Period in respect of any Borrowing of A
Term Loans, B Term Loans or C Term Loans shall be selected
which extends beyond any date upon which a mandatory
repayment of A Term Loans, B Term Loans or C Term Loans, as
the case may be, will be required to be made under Sections
4.02(b), (c) or (d) if the aggregate principal amount of A
Term Loans, B Term Loans or C Term Loans, as the case may
be, which have Interest Periods which will expire after such
date will be in excess of the aggregate principal amount of
such Tranche of Term Loans then outstanding less the aggre-
gate amount of such required prepayment.
If upon the expiration of any Interest Period applic-
able to a Borrowing of Eurodollar Loans, the Borrowers have
failed to elect, or are not permitted to elect, a new Interest
Period to be applicable to such Eurodollar Loans as provided
above, the Borrowers shall be deemed to have elected to convert
such Eurodollar Loans into Base Rate Loans effective as of the
expiration date of such current Interest Period.
1.10 Increased Costs, Illegality, etc. (a) In the event
that any Bank shall have determined (which determination shall,
absent manifest error, be final and conclusive and binding upon
all parties hereto but, with respect to clause (i) below, may be
made only by the Administrative Agent):
(i) on any Interest Determination Date that, by reason
of any changes arising after the date of this Agreement
affecting the interbank Eurodollar market, adequate and fair
means do not exist for ascertaining the applicable interest
rate on the basis provided for in the definition of
Eurodollar Rate; or
(ii) at any time, that such Bank shall incur increased
costs or reductions in the amounts received or receivable
hereunder with respect to any Eurodollar Loan because of (x)
any change since the date of this Agreement in any
applicable law or governmental rule, regulation, order,
guideline or request (whether or not having the force of
law) or in the interpretation or administration thereof and
including the introduction of any new law or governmental
rule, regulation, order, guideline or request, such as, for
example, but not limited to: (A) a change in the basis of
taxation of payment to any Bank of the principal of or
interest on such Eurodollar Loan or any other amounts
payable hereunder (except for changes in the rate of tax on,
or determined by reference to, the net income or net profits
of such Bank, or any franchise tax based on the net income
or net profits of such Bank, in either case pursuant to the
laws of the United States of America, the jurisdiction in
which it is organized or in which its principal office or
applicable lending office is located or any subdivision
thereof or therein), but without duplication of any amounts
payable in respect of Taxes pursuant to Section 4.04(a), or
(B) a change in official reserve requirements, but, in all
events, excluding reserves required under Regulation D to
the extent included in the computation of the Eurodollar
Rate and/or (y) other circumstances since the date of this
Agreement affecting such Bank or the interbank Eurodollar
market or the position of such Bank in such market (except
as a result of a deterioration in the creditworthiness of
such Bank subsequent to the date hereof); or
(iii) at any time, that the making or continuance of any
Eurodollar Loan has been made (x) unlawful by any law or
governmental rule, regulation or order, (y) impossible by
compliance by any Bank in good faith with any governmental
request (whether or not having force of law) or (z)
impracticable as a result of a contingency occurring after
the date of this Agreement which materially and adversely
affects the interbank Eurodollar market;
then, and in any such event, such Bank (or the Administrative
Agent, in the case of clause (i) above) shall promptly give
notice (by telephone confirmed in writing) to the Borrowers and,
except in the case of clause (i) above, to the Administrative
Agent of such determination (which notice the Administrative
Agent shall promptly transmit to each of the other Banks).
Thereafter (x) in the case of clause (i) above, Eurodollar Loans
shall no longer be available until such time as the
Administrative Agent notifies the Borrowers and the Banks that
the circumstances giving rise to such notice by the
Administrative Agent no longer exist, and any Notice of Borrowing
or Notice of Conversion given by the Borrowers with respect to
Eurodollar Loans which have not yet been incurred (including by
way of conversion) shall be deemed rescinded by the Borrowers,
(y) in the case of clause (ii) above, the Borrowers jointly and
severally agree to, subject to the provisions of Section 13.15
(to the extent applicable), pay to such Bank, upon written demand
therefor, such additional amounts (in the form of an increased
rate of, or a different method of calculating, interest or
otherwise as such Bank in its sole discretion shall determine) as
shall be required to compensate such Bank for such increased
costs or reductions in amounts received or receivable hereunder
(a written notice as to the additional amounts owed to such Bank,
showing the basis for the calculation thereof, submitted to the
Borrowers by such Bank in good faith shall, absent manifest
error, be final and conclusive and binding on all the parties
hereto) and (z) in the case of clause (iii) above, the Borrowers
shall take one of the actions specified in Section 1.10(b) as
promptly as possible and, in any event, within the time period
required by law. Each of the Administrative Agent and each Bank
agrees that if it gives notice to the Borrowers of any of the
events described in clause (i) or (iii) above, it shall promptly
notify the Borrowers and, in the case of any such Bank, the
Administrative Agent, if such event ceases to exist. If any such
event described in clause (iii) above ceases to exist as to a
Bank, the obligations of such Bank to make Eurodollar Loans and
to convert Base Rate Loans into Eurodollar Loans on the terms and
conditions contained herein shall be reinstated.
(b) At any time that any Eurodollar Loan is affected
by the circumstances described in Section 1.10(a)(ii) or (iii),
the Borrowers may (and in the case of a Eurodollar Loan affected
by the circumstances described in Section 1.10(a)(iii) shall)
either (x) if the affected Eurodollar Loan is then being made
initially or pursuant to a conversion, cancel the respective
Borrowing by giving the Administrative Agent telephonic notice
(confirmed in writing) on the same date that the Borrowers were
notified by the affected Bank or the Administrative Agent
pursuant to Section 1.10(a)(ii) or (iii) or (y) if the affected
Eurodollar Loan is then outstanding, upon at least three Business
Days' written notice to the Administrative Agent, require the
affected Bank to convert such Eurodollar Loan into a Base Rate
Loan, provided that, if more than one Bank is affected at any
time, then all affected Banks must be treated the same pursuant
to this Section 1.10(b).
(c) If at any time after the date of this Agreement
any Bank determines that the introduction of or any change in any
applicable law or governmental rule, regulation, order,
guideline, directive or request (whether or not having the force
of law) concerning capital adequacy, or any change in
interpretation or administration thereof by any governmental
authority, central bank or comparable agency, will have the
effect of increasing the amount of capital required or expected
to be maintained by such Bank or any corporation controlling such
Bank based on the existence of such Bank's Commitments hereunder
or its obligations hereunder, then the Borrowers jointly and
severally agree, subject to the provisions of Section 13.15 (to
the extent applicable), to pay to such Bank, upon its written
demand therefor, such additional amounts as shall be required to
compensate such Bank or such other corporation for the increased
cost to such Bank or such other corporation or the reduction in
the rate of return to such Bank or such other corporation as a
result of such increase of capital. In determining such
additional amounts, each Bank will act reasonably and in good
faith and will use averaging and attribution methods which are
reasonable, provided that such Bank's reasonable good faith
determination of compensation owing under this Section 1.10(c)
shall, absent manifest error, be final and conclusive and binding
on all the parties hereto. Each Bank, upon determining that any
additional amounts will be payable pursuant to this Section
1.10(c), will give written notice thereof to the Borrowers, which
notice shall show the basis for calculation of such additional
amounts.
1.11 Compensation. The Borrowers jointly and severally
agree, subject to the provisions of Section 13.15 (to the extent
applicable), to compensate each Bank, upon its written request
(which request shall set forth the basis for requesting such com-
pensation), for all reasonable losses, expenses and liabilities
(including, without limitation, any loss, expense or liability
incurred by reason of the liquidation or reemployment of deposits
or other funds required by such Bank to fund its Eurodollar Loans
but excluding any loss of anticipated profit) which such Bank may
sustain: (i) if for any reason (other than a default by such
Bank or the Administrative Agent) a Borrowing of, or conversion
from or into, Eurodollar Loans does not occur on a date specified
therefor in a Notice of Borrowing or Notice of Conversion
(whether or not withdrawn by the Borrowers or deemed withdrawn
pursuant to Section 1.10(a)); (ii) if any repayment (including
any repayment made pursuant to Section 4.02 or as a result of an
acceleration of the Loans pursuant to Section 10) or conversion
of any of its Eurodollar Loans occurs on a date which is not the
last day of an Interest Period with respect thereto; (iii) if any
prepayment of any of its Eurodollar Loans is not made on any date
specified in a notice of prepayment given by the Borrowers; or
(iv) as a consequence of (x) any other default by the Borrowers
to repay its Loans when required by the terms of this Agreement
or any Note held by such Bank or (y) any election made pursuant
to Section 1.10(b).
1.12 Change of Lending Office. Each Bank agrees that upon
the occurrence of any event giving rise to the operation of
Section 1.10(a)(ii) or (iii), Section 1.10(c), Section 2.06 or
Section 4.04 with respect to such Bank, it will, if requested by
the Borrowers, use reasonable efforts (subject to overall policy
considerations of such Bank) to designate another lending office
for any Loans or Letters of Credit affected by such event,
provided that such designation is made on such terms that such
Bank and its lending office suffer no economic, legal or
regulatory disadvantage, with the object of avoiding the
consequence of the event giving rise to the operation of such
Section. Nothing in this Section 1.12 shall affect or postpone
any of the obligations of the Borrowers or the rights of any Bank
provided in Sections 1.10, 2.06 and 4.04.
1.13 Replacement of Banks. (x) If any Bank becomes a
Defaulting Bank or otherwise defaults in its obligations to make
Loans or fund Unpaid Drawings, (y) upon the occurrence of any
event giving rise to the operation of Section 1.10(a)(ii) or
(iii), Section 1.10(c), Section 2.06 or Section 4.04 with respect
to any Bank which results in such Bank charging to the Borrowers
increased costs in excess of those being generally charged by the
other Banks or (z) as provided in Section 13.12(b) in the case of
certain refusals by a Bank to consent to certain proposed
changes, waivers, discharges or terminations with respect to this
Agreement which have been approved by the Required Banks, the
Borrowers shall have the right, if no Default or Event of Default
will exist immediately after giving effect to the respective re-
placement, to either replace such Bank (the "Replaced Bank") with
one or more other Eligible Transferee or Transferees, none of
whom shall constitute a Defaulting Bank at the time of such
replacement (collectively, the "Replacement Bank") reasonably
acceptable to the Administrative Agent or, at the option of the
Borrowers, to replace only (a) the Revolving Loan Commitment (and
outstandings pursuant thereto) of the Replaced Bank with an
identical Revolving Loan Commitment provided by the Replacement
Bank or (b) in the case of a replacement as provided in Section
13.12(b) where the consent of the respective Bank is required
with respect to less than all Tranches of its Loans or
Commitments, the Commitments and/or outstanding Term Loans of
such Bank in respect of each Tranche where the consent of such
Bank would otherwise be individually required, with identical
Commitments and/or Loans of the respective Tranche provided by
the Replacement Bank, provided that (i) at the time of any
replacement pursuant to this Section 1.13, the Replacement Bank
shall enter into one or more Assignment and Assumption Agreements
pursuant to Section 13.04(b) (and with all fees payable pursuant
to said Section 13.04(b) to be paid by the Replacement Bank) pur-
suant to which the Replacement Bank shall acquire all of the
Commitments and outstanding Loans of, and participations in
Letters of Credit by (or, in the case of the replacement of only
(a) the Revolving Loan Commitment, the Revolving Loan Commitment
and outstanding Revolving Loans and participations in Letters of
Credit or (b) any Tranche of Term Loans, the outstanding Term
Loans of such Tranche), the Replaced Bank and, in connection
therewith, shall pay to (x) the Replaced Bank in respect thereof
an amount equal to the sum of (A) an amount equal to the
principal of, and all accrued interest on, all outstanding Loans
(or, in the case of the replacement of only (I) the Revolving
Loan Commitment, the outstanding Revolving Loans or (II) any
Tranche of the Term Loans, the outstanding Term Loans of such
Tranche) of the Replaced Bank, (B) except in the case of the
replacement of only outstanding Term Loans of a Replaced Bank, an
amount equal to all Unpaid Drawings that have been funded by (and
not reimbursed to) such Replaced Bank, together with all then
unpaid interest with respect thereto at such time and (C) an
amount equal to all accrued, but theretofore unpaid, Fees owing
to the Replaced Bank (but only with respect to the relevant
Tranche or Tranches, in the case of the replacement of less than
all Tranches of Loans then held by the respective Replaced Bank)
pursuant to Section 3.01 and (y) except in the case of the
replacement of only outstanding Term Loans of a Replaced Bank,
BTCo an amount equal to such Replaced Bank's Adjusted Percentage
(for this purpose, determined as if the adjustment described in
clause (y) of the immediately succeeding sentence had been made
with respect to such Replaced Bank) of (1) any Unpaid Drawing
(which at such time remains an Unpaid Drawing) and (2) any
portion of any Swingline Loan for which BTCo has given a notice
of a Mandatory Borrowing pursuant to Section 1.01(f) and such
Replaced Bank has not provided a Revolving Loan which it was
obligated to provide to the extent such amount was not
theretofore funded by such Replaced Bank, and (ii) all obli-
gations of the Borrowers owing to the Replaced Bank (other than
those (a) specifically described in clause (i) above in respect
of which the assignment purchase price has been, or is concur-
rently being, paid or (b) relating to any Tranche of Loans and/or
Commitments of the respective Replaced Bank which will remain
outstanding after giving effect to the respective replacement)
shall be paid in full to such Replaced Bank concurrently with
such replacement. Upon the execution of the respective
Assignment and Assumption Agreements, the payment of amounts
referred to in clauses (i) and (ii) above and, if so requested by
the Replacement Bank, delivery to the Replacement Bank of the
appropriate Note or Notes executed by the Borrowers, (x) the
Replacement Bank shall become a Bank hereunder and, unless the
respective Replaced Bank continues to have outstanding Term Loans
or a Revolving Loan Commitment hereunder, the Replaced Bank shall
cease to constitute a Bank hereunder, except with respect to
indemnification provisions under this Agreement (including,
without limitation, Sections 1.10, 1.11, 2.06, 4.04, 13.01 and
13.06), which shall survive as to such Replaced Bank and (y) in
the case of a replacement of a Defaulting Bank with a Non-
Defaulting Bank, the Adjusted Percentages of the Banks shall be
automatically adjusted at such time to give effect to such
replacement (and to give effect to the replacement of a
Defaulting Bank with one or more Non-Defaulting Banks).
SECTION 2. Letters of Credit.
2.01 Letters of Credit. (a) Subject to and upon the terms
and conditions herein set forth, the Borrowers may request that
any Issuing Bank issue, at any time and from time to time on and
after the Restatement Effective Date and prior to the Revolving
Loan Maturity Date, for the joint and several account of the
Borrowers, one or more irrevocable letters of credit denominated
in Dollars or, in the case of Trade Letters of Credit, through
the creation thereunder by the respective Issuing Bank of accept-
ances or any other customary agreement or method for providing
for deferred payment under letters of credit ("Acceptances"), and
otherwise in a form customarily used by such Issuing Bank or in
such other form as has been approved by such Issuing Bank (each
such letter of credit, a "Letter of Credit") in support of
obligations described in the definitions of Standby Letter of
Credit or Trade Letter of Credit and any other obligations of the
Borrowers or any of their Restricted Subsidiaries that are
reasonably acceptable to the Administrative Agent and otherwise
permitted to exist pursuant to this Agreement. On the
Restatement Effective Date, all Existing Letters of Credit shall
be deemed to have been issued under this Agreement and shall for
all purposes constitute "Letters of Credit" hereunder.
(b) Each Issuing Bank may agree, in its sole dis-
cretion, and BTCo hereby agrees that in the event a requested
Letter of Credit is not issued by one of the other Issuing Banks,
it will (subject to the terms and conditions contained herein),
at any time and from time to time on or after the Restatement
Effective Date and prior to the Revolving Maturity Date,
following its receipt of the respective Letter of Credit Request,
issue for the account of the Borrowers one or more Letters of
Credit in support of such obligations described in the
definitions of Standby Letter of Credit and Trade Letter of
Credit of the Borrowers or any of their Restricted Subsidiaries
as is permitted to exist pursuant to this Agreement without giv-
ing rise to a Default or Event of Default hereunder, provided
that the respective Issuing Bank shall be under no obligation to
issue any Letter of Credit of the types described above if at the
time of such issuance:
(i) any order, judgment or decree of any governmental
authority or arbitrator shall purport by its terms 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 or reserve
or capital requirement (for which such Issuing Bank is not
otherwise compensated) not in effect on the date hereof, or
any unreimbursed loss, cost or expense which was not applic-
able, in effect or known to such Issuing Bank as of the date
hereof and which such Issuing Bank in good xxxxx xxxxx
material to it; or
(ii) such Issuing Bank shall have received notice from
any Bank prior to the issuance of such Letter of Credit of
the type described in the penultimate sentence of Section
2.03(b).
(c) Notwithstanding the foregoing, (i) no Letter of
Credit shall be issued the Stated Amount of which, when added to
the Letter of Credit Outstandings (exclusive of Unpaid Drawings
which are repaid on the date of, and prior to the issuance of,
the respective Letter of Credit) at such time would exceed either
(x) $60,000,000 or (y) when added to the aggregate principal
amount of all Revolving Loans made by Non-Defaulting Banks and
then outstanding and Swingline Loans then outstanding, an amount
equal to the Adjusted Total Revolving Loan Commitment at such
time, (ii) no Acceptance shall be created the Stated Amount of
which, when added to the amount of all Acceptances outstanding at
such time, would exceed $15,000,000 and (iii) each Letter of
Credit shall by its terms terminate or be terminable by the
Issuing Bank on such date that would result in all drawings
thereunder, or any Acceptances created thereunder, being funded
pursuant to the terms thereof prior to (x) (A) in the case of
Standby Letters of Credit, the date which occurs 12 months after
the date of the issuance thereof (although any such Letter of
Credit may be extendable for successive periods of up to 12
months, but not beyond the Revolving Loan Maturity Date, on terms
acceptable to the Issuing Bank thereof) and (B) in the case of
Trade Letters of Credit, the date which occurs six months (or up
to one year with the consent of the respective Issuing Bank)
after the date of the issuance thereof or (y) (A) in the case of
Standby Letters of Credit, the date which is five Business Days
prior to the Revolving Loan Maturity Date and (B) in the case of
Trade Letters of Credit, the date which is thirty Business Days
prior to the Revolving Loan Maturity Date.
2.02 Minimum Stated Amount. The Stated Amount of each
Letter of Credit shall be not less than $10,000 or such lesser
amount as is acceptable to the respective Issuing Bank.
2.03 Letter of Credit Requests. (a) Whenever any Borrower
desires that a Letter of Credit be issued by the Administrative
Agent as Issuing Bank for its account, it shall have (i) executed
and delivered the Letter of Credit Service Agreement in the form
of Exhibit C-1 attached hereto (as amended, modified or
supplemented from time to time, the "Letter of Credit Service
Agreement"), which Letter of Credit Service Agreement shall be in
full force and effect and (ii) made a request for the issuance of
such Letter of Credit in accordance with the terms of the Letter
of Credit Service Agreement. Whenever any Borrower desires that
a Trade Letter of Credit be issued by an Issuing Bank other than
the Administrative Agent for its account, it shall have (x)
executed and delivered to the respective Issuing Bank (with
copies having been sent to the Administrative Agent) at least
five Business Days prior to the issuance thereof, a Trade Letter
of Credit Request in the form of Exhibit C-2 attached hereto
(each a "Trade Letter of Credit Request") and (y) completed and
executed a letter of credit application in the form customarily
used by such Issuing Bank for Trade Letters of Credit or in such
other form as the Administrative Agent and the Issuing Bank shall
request. Whenever any Borrower desires that a Standby Letter of
Credit be issued by an Issuing Bank other than the Administrative
Agent for its account it shall have executed and delivered to the
respective Issuing Bank (with copies having been sent to the
Administrative Agent) at least five Business Days prior to the
issuance thereof, a Standby Letter of Credit Request in the form
of Exhibit C-3 attached hereto (each a "Standby Letter of Credit
Request"). Letter of Credit Requests shall be given in writing,
or in the case of requests of Trade Letters of Credit, by
telephone, if promptly confirmed in writing, or, if the
Administrative Agent is the Issuing Bank, as otherwise provided
in the Letter of Credit Service Agreement, provided that (I) if
the express provisions of any letter of credit application
conflict with the express provisions of this Agreement, the
provisions of this Agreement shall control to the extent of such
conflict and (II) no event (other than the failure to reimburse
Letter of Credit Drawings as provided for in Section 2.05) which
constitutes a default under any application shall constitute an
Event of Default hereunder solely by reason of any default
provisions contained in such application.
(b) The making of each Letter of Credit Request shall be
deemed to be a representation and warranty by the Borrowers that
such Letter of Credit may be issued in accordance with, and will
not violate the requirements of, Section 2.01(c). Unless the
respective Issuing Bank has received notice from any Bank before
it issues a Letter of Credit that one or more of the conditions
specified in Section 6 are not then satisfied, or that the
issuance of such Letter of Credit would violate Section 2.01(c),
then such Issuing Bank may issue the requested Letter of Credit
for the account of the Borrowers in accordance with such Issuing
Bank's usual and customary practices. Upon its issuance of any
Letter of Credit, such Issuing Bank shall promptly notify each
Bank of such issuance.
2.04 Letter of Credit Participations. (a) Immediately upon
the issuance by any Issuing Bank of any Letter of Credit, such
Issuing Bank shall be deemed to have sold and transferred to each
Bank with a Revolving Loan Commitment, other than such Issuing
Bank (each such Bank, in its capacity under this Section 2.04, a
"Participant"), and each such Participant shall be deemed irrevo-
cably and unconditionally to have purchased and received from
such Issuing Bank, without recourse or warranty, an undivided
interest and participation, to the extent of such Participant's
Adjusted Percentage in such Letter of Credit, each drawing made
thereunder and Acceptances created thereunder and the obligations
of the Borrowers under this Agreement with respect thereto, and
any security therefor or guaranty pertaining thereto. Upon any
change in the Revolving Loan Commitments or Adjusted Percentages
of the Banks pursuant to Section 1.13 or 13.04 or as a result of
a Bank Default, it is hereby agreed that, with respect to all
outstanding Letters of Credit, Acceptances and Unpaid Drawings,
there shall be an automatic adjustment to the participations
pursuant to this Section 2.04 to reflect the new Adjusted
Percentages of the assignor and assignee Bank or of all Banks
with Revolving Loan Commitments, as the case may be.
(b) In determining whether to pay or create an
Acceptance under any Letter of Credit, such Issuing Bank shall
have no obligation relative to the other Banks other than to
confirm that any documents required to be delivered under such
Letter of Credit appear to have been delivered and that they
appear to substantially comply on their face with the
requirements of such Letter of Credit. Any action taken or
omitted to be taken by any Issuing Bank under or in connection
with any Letter of Credit if taken or omitted in the absence of
gross negligence or willful misconduct, shall not create for such
Issuing Bank any resulting liability to the Borrowers or any
Bank.
(c) In the event that any Issuing Bank makes any payment
under any Letter of Credit issued by it or any Acceptance created
thereunder and the Borrowers shall not have reimbursed such
amount in full to such Issuing Bank pursuant to Section 2.05(a),
such Issuing Bank shall promptly notify the Administrative Agent,
which shall promptly notify each Participant of such failure, and
each Participant shall promptly and unconditionally pay to such
Issuing Bank the amount of such Participant's Adjusted Percentage
of such unreimbursed payment in Dollars and in same day funds.
If the Administrative Agent so notifies, prior to 11:00 A.M. (New
York time) on any Business Day, any Participant required to fund
a payment under a Letter of Credit, such Participant shall make
available to such Issuing Bank in Dollars such Participant's
Adjusted Percentage of the amount of such payment on such
Business Day in same day funds. If and to the extent such
Participant shall not have so made its Adjusted Percentage of the
amount of such payment available to such Issuing Bank, such
Participant agrees to pay to such Issuing Bank, forthwith on
demand, such amount, together with interest thereon, for each day
from such date until the date such amount is paid to such Issuing
Bank at the overnight Federal Funds Rate. The failure of any
Participant to make available to such Issuing Bank its Adjusted
Percentage of any payment under any Letter of Credit shall not
relieve any other Participant of its obligation hereunder to make
available to such Issuing Bank its Adjusted Percentage of any
Letter of Credit or Acceptance created thereunder on the date
required, as specified above, but no Participant shall be
responsible for the failure of any other Participant to make
available to such Issuing Bank such other Participant's Adjusted
Percentage of any such payment.
(d) Whenever any Issuing Bank receives a payment of a
reimbursement obligation as to which it has received any payments
from the Participants pursuant to clause (c) above, such Issuing
Bank shall pay to each Participant which has paid its Adjusted
Percentage thereof, in Dollars and in same day funds, an amount
equal to such Participant's share (based upon the proportionate
aggregate amount originally funded by such Participant to the
aggregate amount funded by all Participants) of the principal
amount of such reimbursement obligation and interest thereon
accruing after the purchase of the respective participations.
(e) Upon the request of any Participant, each Issuing
Bank shall furnish to such Participant copies of any Letter of
Credit issued by it and such other documentation as may
reasonably be requested by such Participant.
(f) The obligations of the Participants to make payments
to each Issuing Bank with respect to Letters of Credit and
Acceptances issued thereunder shall be irrevocable and not
subject to any qualification or exception whatsoever and shall be
made in accordance with the terms and conditions of this
Agreement under all circumstances, including, without limitation,
any of the following circumstances:
(i) any lack of validity or enforceability of this
Agreement or any of the other Credit Documents;
(ii) the existence of any claim, setoff, defense or
other right which the Borrowers or any of their Subsidiaries
may have at any time against a beneficiary named in a Letter
of Credit, any transferee of any Letter of Credit (or any
Person for whom any such transferee may be acting), any holder
of an Acceptance, the Administrative Agent, any Participant,
or any other Person, whether in connection with this
Agreement, any Letter of Credit, any Acceptance, the transac-
tions contemplated herein or any unrelated transactions
(including any underlying transaction between any Borrower and
the beneficiary named in any such Letter of Credit);
(iii) any draft, certificate or any other document
presented under any Letter of Credit proving to be forged,
fraudulent, invalid or insufficient in any respect or any
statement therein being untrue or inaccurate in any respect;
(iv) the surrender or impairment of any security for the
performance or observance of any of the terms of any of the
Credit Documents; or
(v) the occurrence of any Default or Event of Default.
2.05 Agreement to Repay Letter of Credit Drawings and
Acceptance Payments. (a) The Borrowers hereby jointly and
severally agree to reimburse the respective Issuing Bank, by
making payment to the Administrative Agent in immediately
available funds at the Payment Office, for any payment or
disbursement made by such Issuing Bank under any Letter of Credit
or Acceptance created thereunder (each such amount, so paid until
reimbursed, an "Unpaid Drawing"), immediately after, and in any
event on the date of such payment or disbursement, with interest
on the amount so paid or disbursed by such Issuing Bank, to the
extent not reimbursed prior to 12:00 Noon (New York time) on the
date of such payment or disbursement, from and including the date
paid or disbursed to but excluding the date such Issuing Bank was
reimbursed by the Borrowers therefor at a rate per annum which
shall be the Base Rate in effect from time to time plus the
Applicable Margin for Base Rate Loans, provided, however, to the
extent such amounts are not reimbursed prior to 12:00 Noon (New
York time) on the second Business Day following such payment or
disbursement, interest shall thereafter accrue on the amounts so
paid or disbursed by such Issuing Bank (and until reimbursed by
the Borrowers) at a rate per annum which shall be the Base Rate
in effect from time to time plus the Applicable Margin for Base
Rate Loans plus 2%, in each such case, with interest to be
payable by the Borrowers on demand. The respective Issuing Bank
shall give the Borrowers prompt notice of each Drawing under any
Letter of Credit or payment under any Acceptance created
thereunder, provided that the failure to give any such notice
shall in no way affect, impair or diminish the Borrowers'
obligations hereunder.
(b) The obligations of the Borrowers under this Section
2.05 to reimburse the respective Issuing Bank with respect to
drawings on Letters of Credit and payments under any Acceptance
created thereunder (each, a "Drawing") (including interest
thereon) shall be joint and several and shall be absolute and
unconditional under any and all circumstances and irrespective of
any setoff, counterclaim or defense to payment which any Borrower
may have or have had against any Bank (including in its capacity
as issuer of the Letter of Credit or as Participant), or any
nonapplication or misapplication by the beneficiary of the
proceeds of such Drawing, the respective Issuing Bank's only
obligation to the Borrowers being to confirm that any documents
required to be delivered under such Letter of Credit appear to
have been delivered and that they appear to substantially comply
on their face with the requirements of such Letter of Credit.
Any action taken or omitted to be taken by any Issuing Bank under
or in connection with any Letter of Credit or any Acceptance
created thereunder if taken or omitted in the absence of gross
negligence or willful misconduct, shall not create for such
Issuing Bank any resulting liability to the Borrowers.
2.06 Increased Costs. If at any time after the date of
this Agreement, the introduction of or any change in any
applicable law, rule, regulation, order, guideline or request or
in the interpretation or administration thereof by any
governmental authority charged with the interpretation or
administration thereof, or compliance by any Issuing Bank or any
Participant with any request or directive by any such authority
(whether or not having the force of law), or any change in
generally acceptable accounting principles, shall either (i)
impose, modify or make applicable any reserve, deposit, capital
adequacy or similar requirement against Letters of Credit issued,
or Acceptances created, by any Issuing Bank or participated in by
any Participant, or (ii) impose on any Issuing Bank or any
Participant any other conditions relating, directly or
indirectly, to this Agreement, any Letter of Credit or any
Acceptance created thereunder; and the result of any of the
foregoing is to increase the cost to any Issuing Bank or any
Participant of issuing, maintaining or participating in any
Letter of Credit or any Acceptance created thereunder, or reduce
the amount of any sum received or receivable by any Issuing Bank
or any Participant hereunder or reduce the rate of return on its
capital with respect to Letters of Credit and Acceptances created
thereunder (except for changes in the rate of tax on, or
determined by reference to, the net income or net profits of such
Issuing Bank or such Participant, or any franchise tax based on
the net income or net profits of such Bank or Participant, in
either case pursuant to the laws of the United States of America,
the jurisdiction in which it is organized or in which its
principal office or applicable lending office is located or any
subdivision thereof or therein), but without duplication of any
amounts payable in respect of Taxes pursuant to Section 4.04(a),
then, upon demand to the Borrowers by such Issuing Bank or any
Participant (a copy of which demand shall be sent by such Issuing
Bank or such Participant to the Administrative Agent) and subject
to the provisions of Section 13.15 (to the extent applicable),
the Borrowers jointly and severally agree to pay to such Issuing
Bank or such Participant such additional amount or amounts as
will compensate such Bank for such increased cost or reduction in
the amount receivable or reduction on the rate of return on its
capital. Any Issuing Bank or any Participant, upon determining
that any additional amounts will be payable pursuant to this
Section 2.06, will give prompt written notice thereof to the Bor-
rowers, which notice shall include a certificate submitted to the
Borrowers by such Issuing Bank or such Participant (a copy of
which certificate shall be sent by such Issuing Bank or such
Participant to the Administrative Agent), setting forth in
reasonable detail the basis for the calculation of such
additional amount or amounts necessary to compensate such Issuing
Bank or such Participant. The certificate required to be
delivered pursuant to this Section 2.06 shall, if delivered in
good faith and absent manifest error, be final and conclusive and
binding on the Borrowers.
SECTION 3. Commitment Commission; Fees; Reductions of
Commitment.
3.01 Fees. (a) The Borrowers jointly and severally
agree to pay to the Administrative Agent for distribution to each
Non-Defaulting Bank with a Revolving Loan Commitment a commitment
commission (the "Commitment Commission") for the period from the
Restatement Effective Date to but excluding the Revolving Loan
Maturity Date (or such earlier date as the Total Revolving Loan
Commitment shall have been terminated), computed at a rate for
each day equal to 1/2 of 1% (3/8 of 1% at any time that the
Reduction Percentage equals an amount other than zero) per annum
on the daily average Unutilized Revolving Loan Commitment of such
Non-Defaulting Bank. Accrued Commitment Commission shall be due
and payable quarterly in arrears on each Quarterly Payment Date
and on the Revolving Loan Maturity Date or such earlier date upon
which the Total Revolving Loan Commitment is terminated.
(b) The Borrowers jointly and severally agree to pay to
the Administrative Agent for pro rata distribution to each Non--
Defaulting Bank with a Revolving Loan Commitment (based on their
respective Adjusted Percentages) a fee in respect of (x) each
Letter of Credit issued hereunder (the "Letter of Credit Fee"),
for the period from and including the date of issuance of such
Letter of Credit to the termination of such Letter of Credit,
computed at a rate per annum equal to the Applicable Margin for
Revolving Loans maintained as Eurodollar Loans as in effect from
time to time on the daily average Stated Amount of such Letter of
Credit and (y) each Acceptance (the "Acceptance Fee") for the
period from and including the date of creation of such Acceptance
to and including the maturity of such Acceptance, computed at a
rate per annum equal to the Applicable Margin for Revolving Loans
maintained as Eurodollar Loans as in effect from time to time on
the daily average Stated Amount of such Acceptance. Accrued
Letter of Credit Fees and Acceptance Fees shall be due and
payable quarterly in arrears on each Quarterly Payment Date and
upon the first day on or after the termination of the Total
Revolving Loan Commitment upon which no Letters of Credit or
Acceptances remain outstanding.
(c) The Borrowers jointly and severally agree to pay to
the respective Issuing Bank, for its own account, a facing fee in
respect of (x) each Standby Letter of Credit issued for its
account hereunder (the "Letter of Credit Facing Fee") for the
period from and including the date of issuance of such Standby
Letter of Credit to and including the termination of such Standby
Letter of Credit, computed at a rate equal to 1/4 of 1% per annum
of the daily average Stated Amount of such Standby Letter of
Credit, provided that in any event the minimum amount of the
Letter of Credit Facing Fee payable in any 12 month period for
any Standby Letter of Credit shall be $500 (it being agreed that,
on each anniversary of the issuance of any Standby Letter of
Credit or upon any earlier termination or expiration of a Standby
Letter of Credit, if $500 exceeds the amount of Letter of Credit
Facing Fees theretofore paid or then accrued with respect to such
Standby Letter of Credit, in either case after the date of the
issuance thereof or, if later, after the date of the last
anniversary of the issuance thereof (but excluding any amounts
paid after such anniversary with respect to periods ending on or
prior to such anniversary, including, without limitation, as a
result of the operation of this parenthetical), the amount of
such excess shall be payable on the next date upon which accrued
Letter of Credit Facing Fees are otherwise payable with respect
to Standby Letters of Credit as provided in the following
sentence) and (y) each Acceptance created by it (the "Acceptance
Facing Fee", and together with the Letter of Credit Facing Fees,
the "Facing Fees") for the period from and including the date of
creation of such Acceptance to and including the maturity of such
Acceptance, computed at a rate equal to 1/4 of 1% per annum of
the daily average Stated Amount of such Acceptance. Accrued
Facing Fees shall be due and payable quarterly in arrears on each
Quarterly Payment Date and on the date upon which the Total
Revolving Loan Commitment has been terminated and all Letters of
Credit and Acceptances have been terminated in accordance with
their terms.
(d) The Borrowers jointly and severally agree to pay,
upon each drawing under, issuance of, or amendment to any Letter
of Credit, such amount as shall at the time of such event be the
administrative charge and out-of-pocket expenses which the
respective Issuing Bank is generally imposing in connection with
such occurrence with respect to letters of credit.
(e) The Borrowers jointly and severally agree to pay to
the Agents, for their own account, such other fees as have been
agreed to in writing by the Borrowers and the Agents.
3.02 Voluntary Termination of Unutilized Commitments.
(a) Upon at least two Business Days' prior notice from an
Authorized Representative of the Borrowers to the Administrative
Agent at its Notice Office (which notice the Administrative Agent
shall promptly transmit to each of the Banks), the Borrowers
shall have the right, at any time or from time to time, without
premium or penalty, to terminate the Total Unutilized Revolving
Loan Commitment, in whole or in part, in integral multiples of
$1,000,000, provided that (i) each such reduction shall apply
proportionately to permanently reduce the Revolving Loan
Commitment of each Bank with such a Commitment and (ii) the
reduction to the Total Unutilized Revolving Loan Commitment shall
in no case be in an amount which would cause the Revolving Loan
Commitment of any Bank to be reduced (as required by preceding
clause (i)) by an amount which exceeds the remainder of (x) the
Unutilized Revolving Loan Commitment of such Bank as in effect
immediately before giving effect to such reduction minus (y) such
Bank's Adjusted Percentage of the aggregate principal amount of
Swingline Loans then outstanding.
(b) In the event of certain refusals by a Bank as
provided in Section 13.12(b) to consent to certain proposed
changes, waivers, discharges or terminations with respect to this
Agreement which have been approved by the Required Banks, the
Borrowers may, subject to their compliance with the requirements
of said Section 13.12(b), upon five Business Days' written notice
to the Administrative Agent at its Notice Office (which notice
the Administrative Agent shall promptly transmit to each of the
Banks) terminate all of the Revolving Loan Commitment of such
Bank so long as all Revolving Loans, together with accrued and
unpaid interest, Fees and all other amounts, owing to such Bank
(other than amounts owing in respect of the Tranche of Term Loans
maintained by such Bank, if such Term Loans are not being repaid
pursuant to Section 13.12(b)) are repaid concurrently with the
effectiveness of such termination (at which time Schedule I shall
be deemed modified to reflect such changed amounts), and at such
time, unless the respective Bank continues to have outstanding
Term Loans hereunder, such Bank shall no longer constitute a
"Bank" for purposes of this Agreement, except with respect to
indemnifications under this Agreement (including, without
limitation, Sections 1.10, 1.11, 2.06, 4.04, 13.01 and 13.06),
which shall survive as to such repaid Bank.
3.03 Mandatory Reduction of Commitments. (a) The Total
Commitment (and the Term Loan Commitment and the Revolving Loan
Commitment of each Bank) shall terminate in its entirety on
February 15, 1996 unless the Restatement Effective Date shall
have occurred on or prior to such date.
(b) In addition to any other mandatory commitment
reductions pursuant to this Section 3.03, the Total A Term Loan
Commitment (and the A Term Loan Commitment of each Bank) shall
(i) terminate in its entirety on the Restatement Effective Date
(after giving effect to the making of the A Term Loans on such
date) and (ii) prior to the termination of the A Term Loan
Commitment as provided in clause (i) above, be reduced from time
to time to the extent required by Section 4.02.
(c) In addition to any other mandatory commitment
reductions pursuant to this Section 3.03, the Total B Term Loan
Commitment (and the B Term Loan Commitment of each Bank) shall
(i) terminate in its entirety on the Restatement Effective Date
(after giving effect to the making of the B Term Loans on such
date) and (ii) prior to the termination of the B Term Loan
Commitment as provided in clause (i) above, be reduced from time
to time to the extent required by Section 4.02.
(d) In addition to any other mandatory commitment
reductions pursuant to this Section 3.03, the Total C Term Loan
Commitment (and the C Term Loan Commitment of each Bank) shall
(i) terminate in its entirety on the Restatement Effective Date
(after giving effect to the making of the C Term Loans on such
date) and (ii) prior to the termination of the C Term Loan
Commitment as provided in clause (i) above, be reduced from time
to time to the extent required by Section 4.02.
(e) In addition to any other mandatory commitment
reductions pursuant to this Section 3.03, the Total Revolving
Loan Commitment (and the Revolving Loan Commitment of each Bank)
shall terminate in its entirety on the Revolving Loan Maturity
Date.
(f) In addition to any other mandatory commitment
reductions pursuant to this Section 3.03, on each date after the
Restatement Effective Date upon which a mandatory prepayment of
Term Loans pursuant to any of Sections 4.02(e), (f), (g), (h),
(i) and (j) is required (and exceeds in amount the aggregate
principal amount of Term Loans then outstanding) or would be
required if Term Loans were then outstanding, the Total Revolving
Loan Commitment shall be permanently reduced by the amount, if
any, by which the amount required to be applied pursuant to said
Section (determined as if an unlimited amount of Term Loans were
actually outstanding) exceeds the aggregate principal amount of
Term Loans then outstanding.
(g) Each reduction to the Total A Term Loan Commitment,
the Total B Term Loan Commitment, the Total C Term Loan
Commitment and the Total Revolving Loan Commitment pursuant to
this Section 3.03 (or pursuant to Section 4.02) shall be applied
proportionately to reduce the A Term Loan Commitment, the B Term
Loan Commitment, the C Term Loan Commitment or the Revolving Loan
Commitment, as the case may be, of each Bank with such a Com-
mitment.
SECTION 4. Prepayments; Payments; Taxes.
4.01 Voluntary Prepayments. (a) The Borrowers shall
have the right to prepay the Loans, and the right to allocate
such prepayments to Revolving Loans and/or Term Loans as the
Borrowers elect, without premium or penalty, in whole or in part
at any time and from time to time on the following terms and
conditions: (i) an Authorized Representative of the Borrowers
shall give the Administrative Agent prior to 12:00 Noon (New York
time) at its Notice Office (x) at least one Business Day's prior
written notice (or telephonic notice promptly confirmed in
writing) of the Borrowers' intent to prepay Base Rate Loans (or
same day notice in the case of Swingline Loans provided such
notice is given prior to 11:00 A.M. (New York time)) and (y) at
least three Business Days' prior written notice (or telephonic
notice promptly confirmed in writing) of their intent to prepay
Eurodollar Loans, whether A Term Loans, B Term Loans, C Term
Loans, Revolving Loans or Swingline Loans shall be prepaid, the
amount of such prepayment and the Types of Loans to be prepaid
and, in the case of Eurodollar Loans, the specific Borrowing or
Borrowings pursuant to which made, which notice the
Administrative Agent shall promptly transmit to each of the
Banks; (ii) each prepayment shall be in an aggregate principal
amount of at least $1,000,000 (or $500,000 in the case of
Swingline Loans), provided that if any partial prepayment of
Eurodollar Loans made pursuant to any Borrowing shall reduce the
outstanding Eurodollar Loans made pursuant to such Borrowing to
an amount less than (1) in the case of Term Loans, $5,000,000 and
(2) in the case of Revolving Loans, $1,000,000, then such
Borrowing may not be continued as a Borrowing of Eurodollar Loans
and any election of an Interest Period with respect thereto given
by the Borrowers shall have no force or effect; (iii) at the time
of any prepayment of Eurodollar Loans pursuant to this Section
4.01 on any date other than the last day of the Interest Period
applicable thereto, the Borrowers shall pay the amounts required
pursuant to Section 1.11; (iv) except as otherwise provided in
clause (vi) below of this Section 4.01(a) and in Section 4.01(b),
each prepayment in respect of any Term Loans made pursuant to
this Section 4.01(a) shall be allocated among the A Term Loans,
the B Term Loans and the C Term Loans on a pro rata basis (based
upon the then relative aggregate outstanding principal amounts of
A Term Loans, B Term Loans and C Term Loans after giving effect
to all prior reductions thereto), provided that, at the option of
the Borrowers, any voluntary prepayments of Term Loans pursuant
to this Section 4.01(a) shall be applied (A) first, to reduce in
direct order of maturity the A Term Loan Scheduled Repayments, B
Term Loan Scheduled Repayments and C Term Loan Scheduled
Repayments which will be due and payable within six months after
the date of such prepayment (and, if the amount to be applied
pursuant to this clause (A) to the Scheduled Repayments which
will be due and payable on any Scheduled Repayment Date is
insufficient to repay in full all such Scheduled Repayments which
will be due and payable on such Scheduled Repayment Date, then
such amount shall be applied to the Scheduled Repayments which
will be due on such Scheduled Repayment Date on a pro rata basis,
based upon the relative amounts of the Scheduled Repayments of
the various Tranches which will be due on such Scheduled
Repayment Date) and (B) second, to the extent in excess thereof,
as provided above in this clause (iv) without regard to this
proviso; provided further, that at the option of the Borrowers,
if a public offering of INTERCO Common Stock is consummated
within nine months after the Restatement Effective Date, the
balance of the Net Cash Proceeds thereof in an aggregate amount
not to exceed $100 million which shall not be applied as
mandatory prepayments of Term Loans pursuant to the second
proviso to Section 4.02(k) below (it being understood and agreed
that the aggregate amount applied pursuant to this proviso and
the second proviso to Section 4.02(k) shall in no event exceed
$100 million), may be applied (A) first, to any combination of
the Scheduled Repayments of (x) the A Term Loans due within 12
months after the date of the receipt of such Net Cash Proceeds in
direct order of maturity, (y) the B Term Loans (with such
repayments to be applied to such Scheduled Repayments as elected
by the Borrowers) or (z) the C Term Loans (with such repayments
to be applied to such Scheduled Repayments as elected by the
Borrowers) and (B) second, to the extent in excess thereof, as
provided above in this clause (iv) without regard to this
proviso; (v) except as otherwise expressly provided in clauses
(A) to the first and second provisos to clause (iv) above, each
prepayment of any Tranche of Term Loans pursuant to this Section
4.01(a) shall be applied to reduce the then remaining Scheduled
Repayments of the respective Tranche of Term Loans on a pro rata
basis (based upon the then remaining principal amounts of
Scheduled Repayments of the respective Tranche of Term Loans
after giving effect to all prior reductions thereto); and (vi) at
the Borrowers' election in connection with any prepayment of
Revolving Loans, such prepayment shall not be applied to the
prepayment of Revolving Loans of a Defaulting Bank.
(b) In the event of certain refusals by a Bank as
provided in Section 13.12(b) to consent to certain proposed
changes, waivers, discharges or terminations with respect to this
Agreement which have been approved by the Required Banks, the
Borrowers may, upon five Business Days' written notice by an
Authorized Representative of the Borrowers to the Administrative
Agent at its Notice Office (which notice the Administrative Agent
shall promptly transmit to each of the Banks) repay all Loans,
together with accrued and unpaid interest, Fees, and other
amounts owing to such Bank (or owing to such Bank with respect to
each Tranche which gave rise to the need to obtain such Bank's
individual consent) in accordance with, and subject to the re-
quirements of, said Section 13.12(b) so long as (A) in the case
of the repayment of Revolving Loans of any Bank pursuant to this
clause (b) the Revolving Loan Commitment of such Bank is
terminated concurrently with such repayment (at which time
Schedule I shall be deemed modified to reflect the changed
Revolving Loan Commitments) and (B) the consents required by Sec-
tion 13.12(b) in connection with the repayment pursuant to this
clause (b) have been obtained.
4.02 Mandatory Repayments, Cash Collateralizations and
Commitment Reductions. (a)(i) On any day on which the sum of
the aggregate outstanding principal amount of the Revolving Loans
made by Non-Defaulting Banks, Swingline Loans and the Letter of
Credit Outstandings exceeds the Adjusted Total Revolving Loan
Commitment as then in effect, the Borrowers jointly and severally
agree to prepay principal of Swingline Loans and, after the
Swingline Loans have been repaid in full, Revolving Loans of Non-
Defaulting Banks in an amount equal to such excess. If, after
giving effect to the prepayment of all outstanding Swingline
Loans and Revolving Loans of Non-Defaulting Banks, the aggregate
amount of the Letter of Credit Outstandings exceeds the Adjusted
Total Revolving Loan Commitment as then in effect, the Borrowers
jointly and severally agree to pay to the Administrative Agent at
the Payment Office on such date an amount of cash or Cash
Equivalents equal to the amount of such excess (up to a maximum
amount equal to the Letter of Credit Outstandings at such time),
such cash or Cash Equivalents to be held as security for all
obligations of the Borrowers to Non-Defaulting Banks hereunder in
a cash collateral account to be established by the Administrative
Agent.
(ii) On any day on which the aggregate outstanding
principal amount of the Revolving Loans made by any Defaulting
Bank exceeds the Revolving Loan Commitment of such Defaulting
Bank, the Borrowers jointly and severally shall prepay prin-
cipal of Revolving Loans of such Defaulting Bank in an amount
equal to such excess.
(b) In addition to any other mandatory repayments or
commitment reductions pursuant to this Section 4.02, on each date
set forth below, the Borrowers jointly and severally shall be
required to repay that principal amount of A Term Loans, to the
extent then outstanding, as is set forth opposite such date (each
such repayment, as the same may be reduced as provided in
Sections 4.01 and 4.02(k) and (l), an "A Term Loan Scheduled
Repayment"):
Scheduled Repayment Date Amount
------------------------ -----------
Last Business Day in June, 1996 $ 7,500,000
Last Business Day in December, 1996 $ 7,500,000
Last Business Day in June, 1997 $10,000,000
Last Business Day in December, 1997 $10,000,000
Last Business Day in June, 1998 $12,500,000
Last Business Day in December, 1998 $12,500,000
Last Business Day in June, 1999 $25,000,000
Last Business Day in December, 1999 $25,000,000
Last Business Day in June, 2000 $32,500,000
Last Business Day in December, 2000 $32,500,000
Last Business Day in June, 2001 $37,500,000
A Term Loan Maturity Date $37,500,000
(c) In addition to any other mandatory repayments or
commitment reductions pursuant to this Section 4.02, on each date
set forth below, the Borrowers jointly and severally shall be
required to repay that principal amount of B Term Loans, to the
extent then outstanding, as is set forth opposite such date (each
such repayment, as the same may be reduced as provided in
Sections 4.01 and 4.02(k) and (l), a "B Term Loan Scheduled
Repayment"):
Scheduled Repayment Date Amount
------------------------ ------
Last Business Day in June, 1996 $ 500,000
Last Business Day in December, 1996 $ 500,000
Last Business Day in June, 1997 $ 500,000
Last Business Day in December, 1997 $ 500,000
Last Business Day in June, 1998 $ 500,000
Last Business Day in December, 1998 $ 500,000
Last Business Day in June, 1999 $ 500,000
Last Business Day in December, 1999 $ 500,000
Last Business Day in June, 2000 $ 500,000
Last Business Day in December, 2000 $ 500,000
Last Business Day in June, 2001 $ 500,000
Last Business Day in December, 2001 $ 500,000
Last Business Day in March, 2002 $18,800,000
Last Business Day in June, 2002 $18,800,000
Last Business Day in September, 2002 $18,800,000
Last Business Day in December, 2002 $18,800,000
B Term Loan Maturity Date $18,800,000
(d) In addition to any other mandatory repayments or
commitment reductions pursuant to this Section 4.02, on each date
set forth below, the Borrowers jointly and severally shall be
required to repay that principal amount of C Term Loans, to the
extent then outstanding, as is set forth opposite such date (each
such repayment, as the same may be reduced as provided in
Sections 4.01 and 4.02(k) and (l), a "C Term Loan Scheduled
Repayment"):
Scheduled Repayment Date Amount
------------------------ ------
Last Business Day in June, 1996 $ 500,000
Last Business Day in December, 1996 $ 500,000
Last Business Day in June, 1997 $ 500,000
Last Business Day in December, 1997 $ 500,000
Last Business Day in June, 1998 $ 500,000
Last Business Day in December, 1998 $ 500,000
Last Business Day in June, 1999 $ 500,000
Last Business Day in December, 1999 $ 500,000
Last Business Day in June, 2000 $ 500,000
Last Business Day in December, 2000 $ 500,000
Last Business Day in June, 2001 $ 500,000
Last Business Day in December, 2001 $ 500,000
Last Business Day in June, 2002 $ 500,000
Last Business Day in December, 2002 $ 500,000
Last Business Day in June, 2003 $23,250,000
Last Business Day in September, 2003 $23,250,000
Last Business Day in December, 2003 $23,250,000
C Term Loan Maturity Date $23,250,000
(e) In addition to any other mandatory repayments or
commitment reductions pursuant to this Section 4.02, on each date
after the Restatement Effective Date upon which INTERCO or any of
its Restricted Subsidiaries receives any cash proceeds from any
sale or issuance of its equity (including, without limitation,
proceeds received from Preferred Stock but excluding (i) up to
$1,000,000 of proceeds received during any Fiscal Year from the
issuance of shares of INTERCO Common Stock as a result of the
exercise of options issued pursuant to the Employee Stock Option
Plan, (ii) proceeds received during any Fiscal Year from any
exercise of INTERCO Warrants, (iii) proceeds received from the
issuance of shares of INTERCO Common Stock or Qualified Preferred
Stock as payment of consideration pursuant to a Permitted
Acquisition or as consideration in connection with the creation,
acquisition or Investment in an Unrestricted Subsidiary (to the
extent INTERCO does not receive any cash proceeds from the
issuance thereof), (iv) any amount of equity proceeds actually
used, at the time of the receipt thereof, to make Guaranty
Payments pursuant to Section 9.11(b)(ii)(y)(C), and (v) so long
as no Default or Event of Default then exists (x) proceeds of
Disqualified Preferred Stock issued pursuant to Section
9.13(b)(iii) which are used to repay or otherwise replace the
Receivables Facility in accordance with the terms hereof, (y)
subject to compliance with the proviso to Section 9.13(b) on the
date of the respective issuance of Disqualified Preferred Stock,
up to $50,000,000 of proceeds received from the issuance of
Disqualified Preferred Stock pursuant to Section 9.13(b)(i),
minus the sum of the aggregate liquidation preference or amount
of Disqualified Preferred Stock directly issued after the
Restatement Effective Date as consideration in connection with
Permitted Acquisitions and the aggregate principal amount of
Permitted Subordinated Indebtedness incurred on or prior to the
date of the issuance of such Disqualified Preferred Stock
pursuant to Section 9.04(ii)(x) and issued as consideration in
connection with one or more Permitted Acquisitions or otherwise
not required to be used to repay Term Loans as a result of clause
(w)(ii) of the first parenthetical of Section 4.02(g), to the
extent all such proceeds from the issuance of Disqualified
Preferred Stock are or were used to effect Permitted Acquisitions
so long as an Authorized Representative of the Borrowers has
delivered a certificate to the Administrative Agent on or prior
to such date stating that such proceeds shall be committed to be
used to make Permitted Acquisitions within six months following
the date of such issuance of Disqualified Preferred Stock, and so
long as such proceeds are so used in such time frame, it being
understood and agreed that any amount of proceeds not so used
within such time frame shall at the end of such six month period
be required to be applied as otherwise provided in this clause
(e) and (z) subject to compliance with the proviso to Section
9.13(b) on the date of the respective issuance of Disqualified
Preferred Stock, up to $25,000,000 of proceeds of Disqualified
Preferred Stock issued pursuant to Section 9.13(b)(ii), minus the
aggregate principal amount of Permitted Unsecured Indebtedness
incurred on or prior to such date of issuance pursuant to Section
9.04(iii)), an amount equal to 50% (or 100% with respect to
proceeds of Disqualified Preferred Stock not otherwise excluded
above) of the Net Cash Proceeds of the respective sale or
issuance shall be applied as a mandatory repayment of principal
of outstanding Term Loans (or, if the Restatement Effective Date
has not yet occurred, such amounts shall be applied as a
mandatory reduction to the Total Term Loan Commitment) in
accordance with the requirements of Section 4.02(k) and (l).
(f) In addition to any other mandatory repayments or
commitment reductions pursuant to this Section 4.02, on each date
after the Restatement Effective Date upon which INTERCO receives
any proceeds from the exercise of the INTERCO Warrants, an amount
equal to 25% of the Net Cash Proceeds of such exercise shall be
applied as a mandatory repayment of principal of outstanding Term
Loans (or, if the Restatement Effective Date has not yet
occurred, such amount shall be applied as a mandatory reduction
to the Total Term Loan Commitment) in accordance with the
requirements of Section 4.02(k) and (l).
(g) In addition to any other mandatory repayments or
commitment reductions pursuant to this Section 4.02, on each date
after the Restatement Effective Date upon which INTERCO or any of
its Restricted Subsidiaries receives any cash proceeds from any
incurrence by INTERCO or any of its Restricted Subsidiaries of
Indebtedness for borrowed money ((w) including Permitted
Subordinated Indebtedness, but excluding, so long as no Default
or Event of Default then exists (i) an amount of Permitted
Subordinated Indebtedness incurred and simultaneously used to
repay, refinance or otherwise replace the Receivables Facility in
accordance with the terms hereof and (ii) subject to compliance
with the proviso to Section 9.04(ii) on the date of the
incurrence of such Indebtedness, up to $50,000,000 of Permitted
Subordinated Indebtedness issued pursuant to Section 9.04(ii)(x),
less the sum of the aggregate principal amount of Permitted
Subordinate Indebtedness issued after the Restatement Effective
Date as consideration in connection with Permitted Acquisitions
and the aggregate amount of Disqualified Preferred Stock issued
on or prior to the date of the incurrence of such Permitted
Subordinated Indebtedness pursuant to Section 9.13(b)(i) and
issued as consideration in connection with one or more Permitted
Acquisitions or otherwise not required to repay Term Loans as a
result of clause (v)(y) of Section 4.02(e), to the extent such
proceeds of the incurrence of Permitted Subordinated Indebtedness
are or were used to effect Permitted Acquisitions so long as an
Authorized Representative of the Borrowers has delivered a
certificate to the Administrative Agent on or prior to such date
stating that such proceeds shall be committed to be used to make
such Permitted Acquisitions within six months following the date
of such incurrence of Permitted Subordinated Indebtedness, and so
long as such proceeds are so used within such time frame, it
being understood and agreed that any amount of proceeds not so
used within such time frame shall at the end of such six month
period be required to be applied as otherwise provided in this
clause (g), (x) subject to compliance with the proviso to Section
9.04(iii) on the date of the incurrence of such Indebtedness,
excluding up to $25,000,000 of proceeds of Permitted Unsecured
Indebtedness incurred pursuant to Section 9.04(iii), minus the
aggregate amount of Disqualified Preferred Stock issued on or
prior to the date of the incurrence of such Permitted Unsecured
Indebtedness pursuant to Section 9.13(b)(ii) and not required to
repay Term Loans as a result of clause (v)(z) of Section 4.02(e),
(y) including Attributed Receivables Facility Indebtedness
incurred pursuant to the Receivables Facility which in aggregate
principal amount exceeds $240,000,000 outstanding at any time
(but excluding other Attributed Receivables Facility
Indebtedness) and (z) excluding any other Indebtedness for
borrowed money permitted to be incurred pursuant to Section 9.04
(excluding, however, clauses (ii), (iii) and (xi) thereof) as
such Section is in effect on the Restatement Effective Date), an
amount equal to 100% of the Net Cash Proceeds of the respective
incurrence of Indebtedness shall be applied as a mandatory
repayment of principal of outstanding Term Loans (or, if the
Restatement Effective Date has not yet occurred, such amounts
shall be applied as a mandatory reduction to the Total Term Loan
Commitment) in accordance with the requirements of Section
4.02(k) and (l).
(h) In addition to any other mandatory repayments or
commitment reductions pursuant to this Section 4.02, on each date
after the Restatement Effective Date upon which INTERCO or any of
its Restricted Subsidiaries (other than the Receivables
Subsidiary) receives proceeds from any sale or other disposition
of assets (including capital stock and securities held thereby,
but excluding (i) sales or transfers of inventory in the ordinary
course of business, (ii) sales or transfers of assets with a fair
market value less than (A) $100,000 per such sale or disposition
(or in a series of related sales or dispositions) and (B) with
respect to any sale or transfer in an amount in excess of the
amount referred to in clause (A) above, $1,000,000 in the
aggregate for all such transfers in any Fiscal Year, (iii) sales
or transfers of assets permitted pursuant to Sections 9.02 (v)
and (vi), and (iv) sales of Excluded Assets, the Net Sales
Proceeds of which do not exceed $7,000,000), an amount equal to
100% (or 80% if no Default or Event of Default is then in
existence or will exist immediately after giving effect to the
respective sale and so long as the Leverage Ratio on the date of
the respective sale is less than 3.50:1.0) of the Net Sale
Proceeds therefrom shall be applied as a mandatory repayment of
principal of outstanding Term Loans (or, if the Restatement
Effective Date has not yet occurred, such amounts shall be
applied as a mandatory reduction to the Total Term Loan
Commitment) in accordance with the requirements of Sections
4.02(k) and (l).
(i) In addition to any other mandatory repayments
pursuant to this Section 4.02, on each Excess Cash Flow Payment
Date, an amount equal to 75% (or 50% if no Default or Event of
Default exists on the respective Excess Cash Flow Payment Date
and if the Leverage Ratio on such date is less than 3.50:1.0) of
the Excess Cash Flow for the relevant Excess Cash Flow Payment
Period shall be applied as a mandatory repayment of principal of
outstanding Term Loans in accordance with the requirements of
Sections 4.02(k) and (l).
(j) In addition to any other mandatory repayments or
commitment reductions pursuant to this Section 4.02, within 10
days following each date after the Restatement Effective Date on
which INTERCO or any of its Restricted Subsidiaries receives any
proceeds from any Recovery Event (other than proceeds from
Recovery Events in an amount less than (A) $100,000 per each
Recovery Event and (B) with respect to any Recovery Event with
proceeds in excess of the amount referred to in clause (A) above,
$1,000,000 in the aggregate for all such Recovery Events in any
Fiscal Year), an amount equal to 100% of the proceeds of such
Recovery Event (net of reasonable costs including, without
limitation, legal costs and expenses, and taxes incurred in
connection with such Recovery Event) shall be applied as a
mandatory repayment of principal of outstanding Term Loans (or,
if the Restatement Effective Date has not yet occurred, such
amounts shall be applied as a mandatory reduction to the Total
Term Loan Commitment in accordance with the requirements of
Sections 4.02(k) and (l)), provided that (x) so long as no
Default or Event of Default then exists and such proceeds do not
exceed $5,000,000, such proceeds shall not be required to be so
applied on such date to the extent that an Authorized Representa-
tive of the Borrowers has delivered a certificate to the
Administrative Agent on or prior to such date stating that such
proceeds shall be used or shall be committed to be used to
replace or restore any properties or assets in respect of which
such proceeds were paid within one year following the date of
such Recovery Event (which certificate shall set forth the esti-
mates of the proceeds to be so expended) and (y) so long as no
Default or Event of Default then exists and to the extent that
(a) the amount of such proceeds exceeds $5,000,000, (b) the
amount of such proceeds, together with other cash available to
the Borrowers and permitted to be spent by them or their Re-
stricted Subsidiaries on Capital Expenditures during the relevant
period pursuant to Section 9.07, equals at least 100% of the cost
of replacement or restoration of the properties or assets in
respect of which such proceeds were paid as determined by the
Borrowers and as supported by such estimates or bids from
contractors or subcontractors or such other supporting
information as the Administrative Agent may reasonably request,
(c) an Authorized Representative of the Borrower has delivered to
the Administrative Agent a certificate on or prior to the date
the application would otherwise be required pursuant to this
Section 4.02(j) in the form described in clause (x) above and
also certifying its determination as required by preceding clause
(b) and certifying the sufficiency of business interruption
insurance as required by succeeding clause (d), and (d) an
Authorized Representative of the Borrower has delivered to the
Administrative Agent such evidence as the Administrative Agent
may reasonably request in form and substance reasonably satisfac-
tory to the Administrative Agent establishing that the Borrowers
have sufficient business interruption insurance and that the
Borrowers will receive payment thereunder in such amounts and at
such times as are necessary to satisfy all obligations and
expenses of the Borrowers (including, without limitation, all
debt service requirements, including pursuant to this Agreement)
without any delay or extension thereof, for the period from the
date of the respective casualty, condemnation or other event
giving rise to the Recovery Event and continuing through the
completion of the replacement or restoration of respective
properties or assets, then the entire amount of the proceeds of
such Recovery Event and not just the portion in excess of
$5,000,000 shall be deposited with the Administrative Agent
pursuant to a cash collateral arrangement reasonably satisfactory
to the Administrative Agent whereby such proceeds shall be
disbursed to the Borrowers from time to time as needed to pay
actual costs incurred by them in connection with the replacement
or restoration of the respective properties or assets (pursuant
to such certification requirements as may be established by the
Administrative Agent), provided further, that at any time while
an Event of Default has occurred and is continuing, the Required
Banks may direct the Administrative Agent (in which case the
Administrative Agent shall, and is hereby authorized by the Bor-
rowers to, follow said directions) to apply any or all proceeds
then on deposit in such collateral account to the repayment of
Obligations hereunder in the same manner as proceeds would be
applied pursuant to the Security Agreement, and provided further,
that if all or any portion of such proceeds not required to be
applied to the repayment of Term Loans pursuant to the second
preceding proviso (whether pursuant to clause (x) or (y) thereof)
are either (A) not so used or committed to be so used within one
year after the date of the respective Recovery Event or (B) if
committed to be used within one year after the date of receipt of
such Net Sale Proceeds and not so used within 18 months after the
date of respective Recovery Event then, in either such case, such
remaining portion not used or committed to be used in the case of
preceding clause (A) and not used in the case of preceding clause
(B) shall be applied on the date which is the first anniversary
of the date of the respective Recovery Event in the case of
clause (A) above or the date occurring 18 months after the date
of the respective Recovery Event in the case of clause (B) above
as a mandatory repayment of principal of outstanding Term Loans
in accordance with the requirements of Sections 4.02(k) and (l).
(k) Any amount required to be applied to Term Loans
pursuant to this Section 4.02 (other than Scheduled Repayments
pursuant to Sections 4.02(b), (c) and (d)) shall, except as
provided below, be allocated among the A Term Loans, the B Term
Loans and the C Term Loans on a pro rata basis (based upon the
relative aggregate outstanding principal amounts of A Term Loans,
B Term Loans and C Term Loans after giving effect to all prior
repayments thereof); provided that, at the option of the
Borrowers, any mandatory repayments pursuant to Sections 4.02(e)
and (i) above may be applied (x) first, in direct order of
maturity to the A Term Loan Scheduled Repayments, B Term Loan
Scheduled Repayments and C Term Loan Scheduled Repayments which
will be due and payable within six months after the date of such
repayment (and, if the amount to be applied pursuant to this
clause (x) to the Scheduled Repayments which will be due and
payable on any Scheduled Repayment Date is insufficient to repay
in full all such Scheduled Repayments which will be due and pay-
able on such Scheduled Repayment Date, then such amount shall be
applied to the Scheduled Repayments which will be due on such
Scheduled Repayment Date on a pro rata basis, based upon the
relative amounts of the Scheduled Repayments of the various
Tranches which will be due on such Scheduled Repayment Date) (y)
second, to the extent in excess thereof, as provided above in
this paragraph (k) without regard to this proviso; provided
further, that, at the option of the Borrowers, if a public
offering of INTERCO Common Stock is consummated within nine
months after the Restatement Effective Date, Net Cash Proceeds
thereof applied as required by Section 4.02(e) in an aggregate
amount not to exceed $100 million (less any amount applied
pursuant to the second proviso to Section 4.01(a)(iv)) may be
applied to any combination of the Scheduled Repayments of (x) the
A Term Loans due within 12 months after the date of the receipt
of such Net Cash Proceeds in direct order of maturity, (y) the B
Term Loans (with such repayments to be applied to such Scheduled
Repayments as elected by the Borrowers) or (z) the C Term Loans
(with such repayments to be applied to such Scheduled Repayments
as elected by the Borrowers). All amounts to be applied to any
Tranche of Term Loans as provided above shall be applied (except
as otherwise expressly provided in clause (x) of the first
proviso and clauses (x), (y) and (z) of the second proviso to the
immediately preceding sentence) to reduce the then remaining
Scheduled Repayments of the respective Tranche of Term Loans on a
pro rata basis (based upon the then remaining principal amounts
of Scheduled Repayments of the respective Tranche of Term Loans
after giving effect to all prior reductions thereto).
(l) With respect to each repayment of Loans required
by this Section 4.02, the Borrowers may designate the Types of
Loans of the respective Tranche which are to be repaid and, in
the case of Eurodollar Loans, the specific Borrowing or
Borrowings of the respective Tranche pursuant to which made,
provided that: (i) repayments of Eurodollar Loans pursuant to
this Section 4.02 may only be made on the last day of an Interest
Period applicable thereto unless all Eurodollar Loans of the
respective Tranche with Interest Periods ending on such date of
required repayment and all Base Rate Loans of the respective
Tranche have been paid in full; (ii) if any repayment of
Eurodollar Loans made pursuant to a single Borrowing shall reduce
the outstanding Eurodollar Loans made pursuant to such Borrowing
to an amount less than (x) in the case of Term Loans, $5,000,000
and (y) in the case of Revolving Loans, $1,000,000, such
Borrowing shall be converted at the end of the then current
Interest Period into a Borrowing of Base Rate Loans; and (iii)
each repayment of Loans required by this Section 4.02 shall,
except as otherwise expressly set forth in Sections 4.02(a),
4.02(b), 4.02(c), 4.02(d) and 4.02(k), be applied pro rata among
such Loans. In the absence of a designation by the Borrowers as
described in the preceding sentence, the Administrative Agent
shall, subject to the above, make such designation in its sole
discretion with a view, but no obligation, to minimize breakage
costs owing under Section 1.11.
(m) Notwithstanding anything to the contrary contained
elsewhere in this Agreement, (i) all then outstanding A Term
Loans shall be repaid in full on the A Term Loan Maturity Date,
(ii) all then outstanding B Term Loans shall be repaid in full on
the B Term Loan Maturity Date, (iii) all then outstanding C Term
Loans shall be repaid in full on the C Term Loan Maturity Date,
(iv) all then outstanding Revolving Loans shall be repaid in full
on the Revolving Loan Maturity Date and (v) all Swingline Loans
shall be repaid on the Swingline Expiry Date.
4.03 Method and Place of Payment. Except as otherwise
specifically provided herein, all payments under this Agreement
or any Note shall be made to the Administrative Agent for the
account of the Bank or Banks entitled thereto not later than
12:00 Noon (New York time) on the date when due and shall be made
in Dollars in immediately available funds at the Payment Office
of the Administrative Agent. Any payments received by the
Administrative Agent after such time shall be deemed to have been
received on the next Business Day. Whenever any payment to be
made hereunder or under any Note shall be stated to be due on a
day which is not a Business Day, the due date thereof shall be
extended to the next succeeding Business Day and, with respect to
payments of principal, interest shall be payable at the
applicable rate during such extension.
4.04 Net Payments. (a) All payments made by the
Borrowers hereunder or under any Note will be made without
setoff, counterclaim or other defense. Except as provided in
Section 4.04(b), all such payments will be made free and clear
of, and without deduction or withholding for, any present or
future taxes, levies, imposts, duties, fees, assessments or other
charges of whatever nature now or hereafter imposed by any
jurisdiction or by any political subdivision or taxing authority
thereof or therein with respect to such payments (but excluding,
except as provided in the second succeeding sentence, any tax
imposed on or measured by the net income or net profits of a Bank
pursuant to the laws of the jurisdiction in which it is organized
or the jurisdiction in which the principal office or applicable
lending office of such Bank is located or any subdivision thereof
or therein) and all interest, penalties or similar liabilities
with respect thereto (all such non-excluded taxes, levies,
imports, duties, fees, assessments or other charges being
referred to collectively as "Taxes"). If any Taxes are so levied
or imposed, the Borrowers jointly and severally agree to pay the
full amount of such Taxes, and such additional amounts as may be
necessary so that every payment of all amounts due under this
Agreement or under any Note, after withholding or deduction for
or on account of any Taxes, will not be less than the amount
provided for herein or in such Note. If any amounts are payable
in respect of Taxes pursuant to the preceding sentence, the
Borrowers agree to reimburse each Bank, upon the written request
of such Bank, for taxes imposed on or measured by the net income
or net profits of such Bank pursuant to the laws of the
jurisdiction in which the principal office or applicable lending
office of such Bank is located or under the laws of any political
subdivision or taxing authority of any such jurisdiction in which
the principal office or applicable lending office of such Bank is
located and for any withholding of income or similar taxes
imposed by the United States of America as such Bank shall deter-
mine are payable by, or withheld from, such Bank in respect of
such amounts so paid to or on behalf of such Bank pursuant to the
preceding sentence and in respect of any amounts paid to or on
behalf of such Bank pursuant to this sentence. The Borrowers
will furnish to the Administrative Agent within 45 days after the
date the payment of any Taxes is due pursuant to applicable law
certified copies of tax receipts evidencing such payment by the
Borrowers. The Borrowers jointly and severally agree to
indemnify and hold harmless each Bank, and reimburse such Bank
upon its written request, for the amount of any Taxes so levied
or imposed and paid by such Bank.
(b) Each Bank that is not a United States person (as
such term is defined in Section 7701(a)(30) of the Code) agrees
to deliver to the Borrowers and the Administrative Agent on or
prior to the Restatement Effective Date, or in the case of a Bank
that is an assignee or transferee of an interest under this
Agreement pursuant to Section 1.13 or 13.04 (unless the
respective Bank was already a Bank hereunder immediately prior to
such assignment or transfer), on the date of such assignment or
transfer to such Bank, (i) two accurate and complete original
signed copies of Internal Revenue Service Form 4224 or 1001 (or
successor forms) certifying to such Bank's entitlement to a
complete exemption from United States withholding tax with
respect to payments to be made under this Agreement and under any
Note, or (ii) if the Bank is not a "bank" within the meaning of
Section 881(c)(3)(A) of the Code and cannot deliver either
Internal Revenue Service Form 1001 or 4224 pursuant to clause (i)
above, (x) a certificate substantially in the form of Exhibit D
(any such certificate, a "Section 4.04(b)(ii) Certificate") and
(y) two accurate and complete original signed copies of Internal
Revenue Service Form W-8 (or successor form) certifying to such
Bank's entitlement to a complete exemption from United States
withholding tax with respect to payments of interest to be made
under this Agreement and under any Note. In addition, each Bank
agrees that from time to time after the Restatement Effective
Date, when a lapse in time or change in circumstances renders the
previous certification obsolete or inaccurate in any material
respect, it will deliver to the Borrowers and the Administrative
Agent two new accurate and complete original signed copies of
Internal Revenue Service Form 4224 or 1001, or Form W-8 and a
Section 4.04(b)(ii) Certificate, as the case may be, and such
other forms as may be required in order to confirm or establish
the entitlement of such Bank to a continued exemption from or
reduction in United States withholding tax with respect to
payments under this Agreement and any Note, or it shall
immediately notify the Borrowers and the Administrative Agent of
its inability to deliver any such Form or Certificate. Notwith-
standing anything to the contrary contained in Section 4.04(a),
but subject to Section 13.04(b) and the immediately succeeding
sentence, (x) the Borrowers shall be entitled, to the extent they
are required to do so by law, to deduct or withhold income or
similar taxes imposed by the United States (or any political sub-
division or taxing authority thereof or therein) from interest,
fees or other amounts payable hereunder for the account of any
Bank which is not a United States person (as such term is defined
in Section 7701(a)(30) of the Code) for U.S. Federal income tax
purposes to the extent that such Bank has not provided to the
Borrowers U.S. Internal Revenue Service Forms that establish a
complete exemption from such deduction or withholding and (y) the
Borrowers shall not be obligated pursuant to Section 4.04(a)
hereof to gross-up payments to be made to a Bank in respect of
income or similar taxes imposed by the United States if (I) such
Bank has not provided to the Borrowers the Internal Revenue
Service Forms required to be provided to the Borrowers pursuant
to this Section 4.04(b) or (II) in the case of a payment, other
than interest, to a Bank described in clause (ii) above, to the
extent that such forms do not establish a complete exemption from
withholding of such taxes. Notwithstanding anything to the
contrary contained in the preceding sentence or elsewhere in this
Section 4.04 and except as set forth in Section 13.04(b), the
Borrowers agree to pay additional amounts and to indemnify each
Bank in the manner set forth in Section 4.04(a) (without regard
to the identity of the jurisdiction requiring the deduction or
withholding) in respect of any amounts deducted or withheld by it
as described in the immediately preceding sentence as a result of
any changes after the Effective Date in any applicable law,
treaty, governmental rule, regulation, guideline or order, or in
the interpretation thereof, relating to the deducting or with-
holding of income or similar Taxes.
(c) The provisions of this Section 4.04 are subject to
the provisions of Section 13.15 (to the extent applicable).
SECTION 5. Conditions Precedent to Initial Credit
Events. The obligation of each Bank to make Loans, and the
obligation of each Issuing Bank to issue Letters of Credit, on
the Restatement Effective Date, is subject at the time of the
making of such Loans or the issuance of such Letters of Credit to
the satisfaction of the following conditions:
5.01 Execution of Agreement; Notes. On or prior to
the Restatement Effective Date (i) this Agreement shall have been
executed and delivered as provided in Section 13.10 and (ii)
there shall have been delivered to the Administrative Agent for
the account of each of the Banks the appropriate A Term Note, B
Term Note, C Term Note and/or Revolving Note executed by the
Borrowers, and to BTCo the Swingline Note executed by the Bor-
rowers, in each case in the amount, maturity and as otherwise
provided herein.
5.02 Fees, etc. On the Restatement Effective Date,
all costs, fees and expenses (including, without limitation,
legal fees and expenses) payable to the Agents and the Banks
shall have been paid to the extent then due.
5.03 Opinions of Counsel. On the Restatement Ef-
fective Date, the Administrative Agent shall have received (i)
from the General Counsel to INTERCO and its Restricted
Subsidiaries, an opinion addressed to the Agents and each of the
Banks and dated the Restatement Effective Date covering the
matters set forth in Exhibit E-1, (ii) from Xxxxx Xxxx, special
counsel to INTERCO and its Restricted Subsidiaries, an opinion
addressed to the Agents and each of the Banks and dated the
Restatement Effective Date covering the matters set forth in
Exhibit E-2 and (iii) from local counsel satisfactory to the
Administrative Agent, opinions each of which shall be in form and
substance reasonably satisfactory to the Administrative Agent and
the Required Banks and shall cover the perfection of the security
interests granted pursuant to the Security Agreement and the
Mortgages and such other matters incident to the transactions
contemplated herein as the Administrative Agent may reasonably
request.
5.04 Corporate Documents; Proceedings; etc. (a) On
the Restatement Effective Date, the Administrative Agent shall
have received a certificate, dated the Restatement Effective
Date, signed by the President, any Executive Vice President or
any Vice President of Thomasville and each Subsidiary of
Thomasville that is a Subsidiary Guarantor and attested to by the
Secretary or any Assistant Secretary of Thomasville or the
respective such Subsidiary, in the form of Exhibit F with
appropriate insertions, together with copies of the Certificate
of Incorporation and By-Laws of Thomasville or the respective
such Subsidiary and the resolutions of Thomasville or the
respective such Subsidiary referred to in such certificate, and
the foregoing shall be acceptable to the Administrative Agent in
its reasonable discretion.
(b) On the Restatement Effective Date, the
Administrative Agent shall have received bring-down certificates
of all Credit Parties (other than Thomasville and its
Subsidiaries) (x) certifying that there were no changes, or
providing the text of any changes, to the Certificate of
Incorporation and By-Laws of such Credit Parties as delivered
pursuant to Section 5.04 of the Original Credit Agreement and (y)
to the effect that each such Credit Party is in good standing in
its respective state of incorporation and in those states where
each such Credit Party conducts business.
(c) All corporate and legal proceedings and all
instruments and agreements in connection with the transactions
contemplated by this Agreement and the other Documents shall be
reasonably satisfactory in form and substance to the
Administrative Agent and the Administrative Agent shall have
received all information and copies of all documents and papers,
including records of corporate proceedings, governmental appro-
vals, good standing certificates and bring-down telegrams, if
any, which the Administrative Agent reasonably may have requested
in connection therewith, such documents and papers where appro-
priate to be certified by proper corporate or governmental
authorities.
5.05 Shareholders' Agreements; Collective Bargaining
Agreements; Permitted Debt Agreements; Tax Sharing Agreements.
(a) On the Restatement Effective Date, there shall have been
delivered to the Administrative Agent true and correct copies,
certified as true and complete by an appropriate officer of
INTERCO or Thomasville of (i) all agreements entered into by
Thomasville or any of its Subsidiaries governing the terms and
relative rights of its capital stock and any agreements entered
into by shareholders relating to any such entity with respect to
its capital stock (collectively, together with any agreements
referred to in Section 5.05(a)(i) of the Original Credit
Agreement, and any amendments thereto referred in succeeding
Section 5.05(b), the "Shareholders' Agreements"), (ii) all
collective bargaining agreements applying or relating to any
employee of Thomasville or any of its Restricted Subsidiaries
(collectively, together with any agreements referred to in
Section 5.05(a)(ii) of the Original Credit Agreement, and any
amendments thereto referred in succeeding Section 5.05(b), the
"Collective Bargaining Agreements"), (iii) all agreements
evidencing or relating to Existing Indebtedness of Thomasville or
any of its Subsidiaries (collectively, together with any
agreements referred to in Section 5.05(a)(iii) of the Original
Credit Agreement, and any amendments thereto referred in
succeeding Section 5.05(b), the "Permitted Debt Agreements"), and
(iv) all information requested by the Administrative Agent with
respect to the Surviving Guaranties and the Tax Sharing
Agreements; all of which Shareholders' Agreements, Collective
Bargaining Agreements and Permitted Debt Agreements shall, except
to the extent such agreements are of no force or effect on the
Restatement Effective Date, be in form and substance reasonably
satisfactory to the Administrative Agent and the Required Banks.
(b) On or prior to the Restatement Effective Date, the
Administrative Agent shall have received (i) a certification from
an Authorized Representative of INTERCO that all agreements and
plans referenced in Section 5.05(a) of the Original Credit
Agreement, previously delivered to the Administrative Agent by
each Credit Party (other than Thomasville and its Subsidiaries),
remain in full force and effect (or specifying which of such
agreements and plans do not remain in full force and effect) and
(ii) any amendments thereto or additional such agreements.
5.06 Solvency; Environmental Analyses; Insurance
Matters. On or prior to the Restatement Effective Date, the
Borrowers shall cause to be delivered to the Administrative Agent
(i) a solvency letter in form and substance satisfactory to the
Administrative Agent from Xxxxxxxx Xxxxx Xxxxxx & Xxxxx, setting
forth its conclusions that, after giving effect to the
Transaction and the incurrence of all the financings contemplated
herein, INTERCO and its Subsidiaries (on a consolidated basis),
is not insolvent, and has not been rendered insolvent by the
Indebtedness in connection therewith, will not be left with
unreasonably small capital with which to engage in its and/or
their businesses and will not have incurred debts beyond its
and/or their ability to pay such debts as they mature, (ii)
environmental review and reports prepared by Xxxxxx Xxxxx &
Goulding, Inc., the results of which will be in scope, form and
substance acceptable to the Agents, and (iii) evidence of
insurance complying with the requirements of Section 8.03 for the
business and properties of INTERCO and its Restricted
Subsidiaries, in scope, form and substance reasonably
satisfactory to the Agents and naming the Collateral Agent as an
additional insured and/or loss payee, and stating that such
insurance shall not be cancelled or revised without 30 days'
prior written notice by the insurer to the Administrative Agent.
5.07 Receivables Facility. On or prior to the
Restatement Effective Date, (i) the Borrowers shall have entered
into amendments to the Original Receivables Facility which will
(x) extend the maturity thereof to five years from the
Restatement Effective Date and (y) increase the commitments
thereunder to $225 million, (ii) a sale of receivables (including
receivables originated by Thomasville) shall have been effected
pursuant to the Receivables Facility, as so amended, which sale
shall have generated net cash proceeds of at least $55,000,000
and (iii) there shall have been delivered to the Administrative
Agent true and correct copies of all Receivables Documents
(including, without limitation, the amendments executed pursuant
to clause (i) above) which shall be in full force and effect and
shall be in form and substance satisfactory to the Administrative
Agent and the Required Banks, and all conditions set forth in the
Receivables Documents shall have been satisfied and not waived
(unless waived with the consent of the Administrative Agent).
5.08 Subsidiary Guaranty. On the Restatement Ef-
fective Date, each Subsidiary Guarantor shall have duly autho-
rized, executed and delivered the Amended and Restated Subsidiary
Guaranty in the form of Exhibit G hereto (as modified, supple-
mented or amended from time to time, the "Subsidiary Guaranty").
5.09 Pledge Agreement. On the Restatement Effective
Date, each Credit Party shall have duly authorized, executed and
delivered an Amended and Restated Pledge Agreement in the form of
Exhibit H (as modified, supplemented or amended from time to
time, the "Pledge Agreement") and shall have delivered to the
Collateral Agent, as Pledgee, all the Pledged Securities referred
to therein then owned by such Credit Party, (x) endorsed in blank
in the case of promissory notes constituting Pledged Securities
and (y) together with executed and undated stock powers, in the
case of capital stock constituting Pledged Securities.
5.10 Security Agreement. On the Restatement Effective
Date, each Credit Party shall have duly authorized, executed and
delivered an Amended and Restated Security Agreement in the form
of Exhibit I (as modified, supplemented or amended from time to
time, the "Security Agreement") covering all of such Credit
Party's present and future Security Agreement Collateral,
together with:
(a) proper Financing Statements (Form UCC-1) fully
executed for filing under the UCC or other appropriate
filing offices of each jurisdiction as may be necessary or,
in the reasonable opinion of the Collateral Agent, desirable
to perfect the security interests purported to be created by
the Security Agreement and evidence satisfactory to the
Collateral Agent that such Financing Statements shall be
filed prior to any Financing Statements filed pursuant to
the Receivables Facility;
(b) certified copies of Requests for Information or
Copies (Form UCC-11), or equivalent reports, listing all
effective financing statements that name any Credit Party as
debtor and that are filed in the jurisdictions referred to
in clause (a) above, together with copies of such other
financing statements (none of which shall cover the
Collateral except to the extent evidencing Permitted Liens
or in respect of which the Collateral Agent shall have re-
ceived termination statements (Form UCC-3) or such other
termination statements as shall be required by local law)
fully executed for filing;
(c) evidence of the completion of all other recordings
and filings of, or with respect to, the Security Agreement
as may be necessary or, in the reasonable opinion of the
Collateral Agent, desirable to perfect the security
interests intended to be created by the Security Agreement;
(d) lockbox agreements and other agreements from
deposit banks utilized pursuant to the Cash Management
System, recognizing the security interests granted pursuant
thereto and directing payments from deposit accounts to be
made to the Concentration Account; and
(e) evidence that all other actions necessary or, in
the reasonable opinion of the Collateral Agent, desirable to
perfect and protect the security interests purported to be
created by the Security Agreement have been taken.
5.11 Mortgages; Title Insurance; Surveys; etc. On the
Restatement Effective Date, the Collateral Agent shall have
received:
(i) fully executed counterparts of amendments (the
"Mortgage Amendments"), in form and substance satisfactory
to the Administrative Agent and the Required Banks, to each
of the Existing Mortgages, together with evidence that
counterparts of each of the Mortgage Amendments have been
delivered to the title company insuring the Lien of the
Existing Mortgages for recording in all places to the extent
necessary or desirable, in the judgment of the Collateral
Agent, effectively to maintain a valid and enforceable first
priority mortgage lien (subject to Permitted Encumbrances
relating thereto) on the Existing Mortgaged Properties in
favor of the Collateral Agent (or such other trustee as may
be required or desired under local law) for the benefit of
the Secured Creditors;
(ii) endorsements of the authorized issuing agent for
title insurers reasonably satisfactory to the Collateral
Agent to each Existing Mortgage Policy assuring the
Collateral Agent that each Existing Mortgage is a valid and
enforceable first priority mortgage lien on the respective
Existing Mortgaged Properties, free and clear of all defects
and encumbrances except Permitted Encumbrances;
(iii) fully executed counterparts of New Mortgages, in
form and substance reasonably satisfactory to the
Administrative Agent, covering such of the Real Property
owned or leased by the Borrowers, Thomasville or any of
their Subsidiaries as shall be designated as a New Mortgaged
Property on Schedule III (each a "New Mortgaged Property"
and, collectively, the "New Mortgaged Properties"), together
with evidence that counterparts of the New Mortgages have
been delivered to the title insurance company insuring the
Lien of the New Mortgages for recording in all places to the
extent necessary or desirable, in the judgment of the
Collateral Agent, effectively to create a valid and enforce-
able first priority mortgage lien (subject to Permitted
Encumbrances relating thereto) on each New Mortgaged
Property in favor of the Collateral Agent (or such other
trustee as may be required or desired under local law) for
the benefit of the Secured Creditors;
(iv) New Mortgage Policies on each New Mortgaged
Property issued by title insurers reasonably satisfactory to
the Collateral Agent and assuring the Collateral Agent that
the New Mortgages are valid and enforceable first priority
mortgage Liens on the respective New Mortgaged Properties,
free and clear of all defects and encumbrances except
Permitted Encumbrances and such New Mortgage Policies shall
otherwise be in form and substance reasonably satisfactory
to the Collateral Agent and shall include, as appropriate,
an endorsement for future advances under this Agreement and
the Notes and for any other matter that the Collateral Agent
in its discretion may reasonably request, shall not include
an exception for mechanics' liens, and shall provide for
affirmative insurance and such reinsurance as the Collateral
Agent in its discretion may request; and
(v) a perimeter survey (including, without limitation,
notations identifying any encroachments or overlaps) in form
and substance reasonably satisfactory to the Collateral
Agent, of each owned New Mortgaged Property, certified by a
licensed professional surveyor satisfactory to the
Collateral Agent, provided that in the event such perimeter
surveys shall not be available as of the Restatement
Effective Date, the requirement that the same be delivered
as a condition precedent under this Article 5 shall be
waived if the Borrowers shall agree in writing to provide
the same within 60 days after the Restatement Effective
Date.
5.12 Consent Letter. On the Restatement Effective
Date, the Administrative Agent shall have received a letter from
CT Corporation System, presently located at 0000 Xxxxxxxx, Xxx
Xxxx, Xxx Xxxx 00000, substantially in the form of Exhibit J,
indicating its consent to its appointment by each Credit Party as
its agent to receive service of process as specified in Section
13.08 or in the respective Security Document.
5.13 Adverse Change; Governmental Approvals; etc. (a)
On the Restatement Effective Date, nothing shall have occurred
(and the Banks shall have become aware of no facts, conditions or
other information not previously known) which the Administrative
Agent or the Required Banks reasonably believe could have a
material adverse effect on the rights or remedies of the
Administrative Agent or the Banks, or on the ability of the
Credit Parties to perform their respective obligations to the
Administrative Agent and the Banks or which the Administrative
Agent or the Required Banks reasonably believe would have a
material adverse effect on the operations, property, assets,
liabilities, condition (financial or otherwise) or prospects of
the Borrowers taken as a whole or the Borrowers and their
Restricted Subsidiaries taken as a whole.
(b) On the Restatement Effective Date, there shall not
have occurred and be continuing material adverse change to the
syndication market for credit facilities similar in nature to
this Agreement and there shall not have occurred and be
continuing a material disruption of or a material adverse change
in financial, banking or capital markets that would have a
material adverse effect on the syndication, in each case as
determined by the Administrative Agent in its sole discretion.
(c) On or prior to the Restatement Effective Date, all
necessary and material governmental (domestic and foreign) and
third party approvals in connection with the Transaction shall
have been obtained and remain in effect, and all applicable
waiting periods shall have expired without any action being taken
by any competent authority which restrains, prevents or imposes
materially adverse conditions upon the consummation of the
Transaction. Additionally, there shall not exist any judgment,
order, injunction or other restraint issued or filed or a hearing
seeking injunctive relief or other restraint pending or notified
prohibiting or imposing materially adverse conditions upon the
making of any Loan, issuance of any Letter of Credit or the
consummation of the Transaction.
5.14 Litigation. On the Restatement Effective Date,
no litigation by any entity (private or governmental) shall be
pending or threatened with respect to the Transaction or any
documentation executed in connection therewith (including any
Credit Document), or which the Administrative Agent or the
Required Banks shall reasonably believe could have a materially
adverse effect on the Transaction or the business, property,
assets, nature of assets, liabilities, condition (financial or
otherwise) or prospects of the Borrowers taken as a whole or the
Borrowers and their Restricted Subsidiaries taken as a whole.
5.15 Pro Forma Balance Sheet; Financial Statements;
Projections. (a) On or prior to the Restatement Effective Date,
there shall have been delivered to the Administrative Agent an
unaudited pro forma consolidated and consolidating balance sheet
of INTERCO and its Subsidiaries as of September 30, 1995 and
after giving effect to the Transaction and prepared in accordance
with generally accepted accounting principles, together with (w)
historical consolidated and consolidating financial statements of
INTERCO and its Subsidiaries, in each case, for the nine-month
period ended September 30, 1995, (x) historical consolidated and
consolidating financial statements of INTERCO and its
Subsidiaries for the five Fiscal Years ended December 31, 1994,
which historical statements shall (i) be audited, in the case of
the income and cash flow statements for the three most recent
Fiscal Years and in the case of the balance sheets for the two
most recent Fiscal Years and (ii) be certified by an officer of
either INTERCO or the other Borrowers, as the case may be, in the
case of the five most recent Fiscal Years and (y) historical
consolidated financial statements of Thomasville and its
Subsidiaries for the three Fiscal Years ended December 31, 1994,
the balance sheets of Thomasville and its Subsidiaries as of
December 31, 1993 and December 31, 1994, the income and cash flow
statement of Thomasville and its Subsidiaries for the ten-month
period ended October 31, 1995, and the balance sheet of
Thomasville and its Subsidiaries as of October 31, 1995.
(b) On or prior to the Restatement Effective Date
there shall have been delivered to the Administrative Agent
"management case" projected financial statements of INTERCO and
its Restricted Subsidiaries after giving effect to the
Transaction, as set forth in the Confidential Memorandum dated
November, 1995, for the period from January 1, 1996 to December
31, 2003 (the "Projections"), which Projections (x) shall reflect
the forecasted financial conditions and income and expenses of
INTERCO and its Restricted Subsidiaries after giving effect to
the Transaction and the related financing thereof and the other
transactions contemplated hereby and (y) shall be satisfactory in
form and substance to the Administrative Agent.
5.16 Acquisition; etc. (a) On or prior to the
Restatement Effective Date, (i) INTERCO shall have acquired 100%
of the capital stock of Thomasville and its Subsidiaries (the
"Acquisition") pursuant to the Stock Purchase Agreement and (ii)
the Banks shall have received true and correct copies of all
agreements and other documents relating to such acquisition (the
"Acquisition Documents"), all of which Acquisition Documents
shall be in form and substance reasonably satisfactory to the
Administrative Agent and the Required Banks (it being understood
that the Stock Purchase Agreement delivered to the Administrative
Agent and the Banks prior to the Restatement Effective Date is in
form and substance reasonably satisfactory to the Administrative
Agent and the Required Banks). All conditions precedent to
INTERCO's obligations in respect of the consummation of the
Acquisition as set forth in the Stock Purchase Agreement and the
other Acquisition Documents shall have been satisfied and not
waived (unless waived with the consent of the Administrative
Agent and except that the landlord consent with respect to the
leased property in Appomattox, Virginia need not be obtained) and
the Acquisition shall have been consummated in accordance with
all applicable law and the Acquisition Documents.
(b) On the Restatement Effective Date and concurrently
with the consummation of the Acquisition, all existing
Indebtedness of Thomasville and its Subsidiaries shall have been
repaid in full (other than the Existing IRBs), and all security
interests and Liens on the capital stock of, and assets owned by,
Thomasville and its Subsidiaries shall have been terminated and
released, other than Permitted Liens, and the Administrative
Agent shall have received evidence in form, scope and substance
satisfactory to it that the matter set forth in this clause (b)
have been satisfied on such date.
5.17 Original Credit Agreement; etc. On the
Restatement Effective Date, (i) unless otherwise agreed by the
Administrative Agent and INTERCO, each Original Bank shall have
surrendered to the Administrative Agent for cancellation the
promissory notes issued to it pursuant to the Original Credit
Agreement in respect of its Original Term Loans, Original
Revolving Loans and Original Swingline Loans, (ii) each
Continuing Bank shall have converted its Original Term Loan as
contemplated by Section 1.01(a), (iii) all Original Term Loans
being converted as described in preceding clause (ii) which were
outstanding as Eurodollar Loans shall, at the time of such con-
version, be converted into Base Rate Loans or borrowed as
Eurodollar Loans in accordance with Section 1.01(a) and the
Borrowers shall pay all breakage costs in accordance with the
provisions of Section 1.11 of the Original Credit Agreement in
connection therewith, (iv) all Original Revolving Loans shall be
repaid in full on the Restatement Effective Date (although
Revolving Loans may be incurred hereunder on the Restatement
Effective Date in accordance with the provisions hereof) and, if
any such Original Revolving Loans were at such time maintained as
Eurodollar Loans, all breakage costs owing in connection
therewith shall have been paid as contemplated by Section 1.11 of
the Original Credit Agreement, (v) each Original Bank shall have
received payment in full of all amounts then due and owing to it
under the Original Credit Agreement, (vi) the Borrowers shall
have paid all accrued and unpaid interest and fees owing under
the Original Credit Agreement through the Restatement Effective
Date, and (vii) the Administrative Agent shall have received
evidence in form, scope and substance satisfactory to it that the
matters set forth in this Section 5.17 have been satisfied on
such date.
SECTION 6. Conditions Precedent to All Credit Events.
The obligation of each Bank to make Loans (including Loans made
on the Restatement Effective Date but excluding Mandatory
Borrowings made thereafter, which shall be made as provided in
Section 1.01(f)), and the obligation of an Issuing Bank to issue
any Letter of Credit, is subject, at the time of each such Credit
Event (except as hereinafter indicated), to the satisfaction of
the following conditions:
6.01 No Default; Representations and Warranties. At
the time of each such Credit Event and also after giving effect
thereto (i) there shall exist no Default or Event of Default and
(ii) all representations and warranties contained herein or in
any other Credit Document shall be true and correct in all
material respects with the same effect as though such
representations and warranties had been made on the date of the
making of such Credit Event (it being understood and agreed that
any representation or warranty which by its terms is made as of a
specified date shall be required to be true and correct in all
material respects only as of such specified date).
6.02 Notice of Borrowing; Letter of Credit Request.
(a) Prior to the making of each Loan (excluding Swingline
Loans), the Administrative Agent shall have received the notice
required by Section 1.03(a). Prior to the making of any
Swingline Loan, BTCo shall have received the notice required by
Section 1.03(b)(i).
(b) Prior to the issuance of each Letter of Credit,
the Administrative Agent and the respective Issuing Bank shall
have received a Letter of Credit Request meeting the requirements
of Section 2.03.
The acceptance of the benefit of each Credit Event
shall constitute a representation and warranty by the Borrowers
to the Agents and each of the Banks that all the conditions spec-
ified in Section 5 and in this Section 6 and applicable to such
Credit Event exist as of that time (except to the extent that any
of the conditions specified in Section 5 are required to be
satisfactory to or determined by any Bank, the Required Banks
and/or the Administrative Agent). All of the Notes, certifi-
xxxxx, legal opinions and other documents and papers referred to
in Section 5 and in this Section 6, unless otherwise specified,
shall be delivered to the Administrative Agent at the Notice
Office for the account of each of the Banks and, except for the
Notes, in sufficient counterparts or copies for each of the Banks
and shall be in form and substance reasonably satisfactory to the
Banks.
SECTION 7. Representations, Warranties and Agreements.
In order to induce the Banks to enter into this Agreement and to
make the Loans, and issue (or participate in) the Letters of
Credit as provided herein, each of the Borrowers makes the
following representations, warranties and agreements, in each
case after giving effect to the Transaction consummated on the
Restatement Effective Date, all of which shall survive the
execution and delivery of this Agreement and the Notes and the
making of the Loans and issuance of the Letters of Credit, with
the occurrence of each Credit Event on or after the Restatement
Effective Date being deemed to constitute a representation and
warranty that the matters specified in this Section 7 are true
and correct in all material respects on and as of the Restatement
Effective Date and on the date of each such Credit Event (it
being understood and agreed that any representation or warranty
which by its terms is made as of a specified date shall be
required to be true and correct in all material respects only as
of such specified date).
7.01 Corporate Status. INTERCO and each of its
Restricted Subsidiaries (i) is a duly organized and validly
existing corporation in good standing under the laws of the
jurisdiction of its incorporation, (ii) has the corporate power
and authority to own its property and assets and to transact the
business in which it is engaged and presently proposes to engage
and (iii) is duly qualified and is authorized to do business and
is in good standing in each jurisdiction where the conduct of its
business requires such qualifications, except for failures to be
so qualified which, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.
7.02 Corporate Power and Authority. Each Credit Party
has the corporate power and authority to execute, deliver and
perform the terms and provisions of each of the Documents to
which it is party and has taken all necessary corporate action to
authorize the execution, delivery and performance by it of each
of such Documents. Each Credit Party has duly executed and
delivered each of the Documents to which it is party, and each of
such Documents constitutes the legal, valid and binding obli-
gation of such Credit Party enforceable in accordance with its
terms, except to the extent that the enforceability thereof may
be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws generally affecting creditors'
rights and by equitable principles (regardless of whether
enforcement is sought in equity or at law).
7.03 No Violation. Neither the execution, delivery or
performance by any Credit Party of the Documents to which it is a
party, nor compliance by it with the terms and provisions
thereof, (i) will contravene any provision of any applicable law,
statute, rule or regulation or any applicable order, writ,
injunction or decree of any court or governmental instrumental-
ity, (ii) will conflict with or result in any breach of any of
the terms, covenants, conditions or provisions of, or constitute
a default under, or result in the creation or imposition of (or
the obligation to create or impose) any Lien (except pursuant to
the Security Documents) upon any of the material properties or
assets of INTERCO or any of its Restricted Subsidiaries pursuant
to the terms of any indenture, mortgage, deed of trust, credit
agreement or loan agreement, or any other material agreement,
contract or instrument, to which INTERCO or any of its Restricted
Subsidiaries is a party or by which it or any of its property or
assets is bound or to which it may be subject or (iii) will
violate any provision of the Certificate of Incorporation or By-
Laws of INTERCO or any of its Restricted Subsidiaries.
7.04 Governmental Approvals. No order, consent,
approval, license, authorization or validation of, or filing,
recording or registration with (except (i) as have been obtained
or made prior to the Restatement Effective Date and (ii) other
than UCC-1 filings and recordings of Assignments of Security
Interests in U.S. Patents and Trademarks, in each case, performed
pursuant to Section 5.10, which filings and/or recordings, as the
case may be, if this representation is being made on a date which
is more than ten days after the Restatement Effective Date, have
been made), or exemption by, any governmental or public body or
authority, or any subdivision thereof, is required to authorize,
or is required in connection with, (i) the execution, delivery
and performance of any Document or (ii) the legality, validity,
binding effect or enforceability of any such Document except,
with respect to the Transaction Documents, where the failure to
so obtain would not have a Material Adverse Effect.
7.05 Financial Statements; Financial Condition;
Undisclosed Liabilities; Projections; etc. (a) (i) The
consolidated and consolidating statements of financial condition
of INTERCO and its Subsidiaries at December 31, 1994 and the
related consolidated and consolidating statements of income and
cash flow and changes in shareholders' equity of INTERCO and its
Subsidiaries for the Fiscal Year ended on such date, and furn-
ished to the Banks prior to the Restatement Effective Date and
(ii) the consolidated and consolidating statements of financial
condition of INTERCO and its Subsidiaries as of the end of each
fiscal quarter of INTERCO ended after December 31, 1994, and the
related consolidated and consolidating statements of income and
cash flow of INTERCO and its Subsidiaries for such quarterly
periods, and furnished to the Banks prior to the Restatement
Effective Date, in each case, present fairly the financial condi-
tion of INTERCO and its Subsidiaries (or INTERCO and its
Restricted Subsidiaries, as the case may be) at the date of such
statements of financial condition and the results of the
operations of INTERCO and its Subsidiaries (or INTERCO and its
Restricted Subsidiaries as the case may be) for the respective
Fiscal Year or fiscal quarter, as the case may be (subject, in
the case of unaudited financial statements, to normal year-end
adjustments). All such financial statements have been prepared
in accordance with generally accepted accounting principles and
practices consistently applied, except, in the case of the
quarterly financial statements, for the omission of footnotes,
and certain reclassifications and ordinary end of period adjust-
ments and accruals (all of which are of a recurring nature and
none of which individually, or in the aggregate, would be
material).
(b) Each of (i) (x) the audited statements of income
and cash flow of Thomasville and its Subsidiaries for the years
ended December 31, 1992, December 31, 1993 and December 31, 1994,
and (y) the audited consolidated balance sheet of Thomasville and
its Subsidiaries as of December 31, 1993, and December 31, 1994,
together with the notes thereto and the reports thereon of KMPG
Peat Marwick, and (ii) the unaudited consolidated balance sheet
of Thomasville and its Subsidiaries as of October 31, 1995 and
the related statement of income and cash flow for the ten-month
period then ended (including in all cases the notes thereto, if
any), fairly presents the financial position of and the results
of operations for the entities reported on and is consistent with
the books and records of Thomasville and its Subsidiaries and has
been prepared in accordance with generally accepted accounting
principles, consistently applied, subject in the case of the
financial statements referred to in (ii) above to changes
resulting from normal year-end adjustments. The books and
records upon which the foregoing financial statements are based
are true and complete, to the best knowledge of the Borrowers.
(c) Since December 31, 1994, there has been no
material adverse change in the business, operations, property,
assets, liabilities, condition (financial or otherwise) or
prospects of the Borrowers taken as a whole or of the Borrowers
and their Restricted Subsidiaries taken as a whole, it being
understood that any determination of whether such material
adverse change has occurred shall take into account, inter alia,
(x) any available indemnities and (y) the timing and likelihood
of payment thereunder.
(d) (i) On and as of the Restatement Effective Date,
after giving effect to the Transaction and to all Indebtedness
(including the Loans) being incurred or assumed and Liens created
by the Credit Parties in connection therewith (assuming the full
utilization of all Commitments on the Restatement Effective
Date), (a) the sum of the assets, at a fair valuation, of each
Borrower, individually, each Borrower and its Subsidiaries,
(each of the foregoing, as to itself or as to itself and its
Subsidiaries, a "Solvent Entity") will exceed its or their debts;
(b) each Solvent Entity has not incurred and does not intend to
incur, and does not believe that it will incur, debts beyond its
ability to pay such debts as such debts mature; and (c) each
Solvent Entity will have sufficient capital with which to conduct
its businesses. For purposes of this Section 7.05(d), "debt"
means any liability on a claim, and "claim" means (i) right to
payment, whether or not such a right is reduced to judgment,
liquidated, unliquidated, fixed, contingent, matured, unmatured,
disputed, undisputed, legal, equitable, secured, or unsecured or
(ii) right to an equitable remedy for breach of performance if
such breach gives rise to a right to payment, whether or not such
right to an equitable remedy is reduced to judgment, fixed,
contingent, matured, unmatured, disputed, undisputed, secured or
unsecured.
(e) Except as fully disclosed in the financial
statements delivered pursuant to Section 7.05(a) or (b) or in
Schedule IV, there were as of the Restatement Effective Date no
liabilities or obligations with respect to INTERCO or any of its
Subsidiaries (including without limitation Thomasville and its
Subsidiaries) of any nature whatsoever (whether absolute,
accrued, contingent or otherwise and whether or not due) which,
either individually or in aggregate, is reasonably likely to have
a Material Adverse Effect. As of the Restatement Effective Date,
none of the Borrowers knows of any basis for the assertion
against it of any liability or obligation of any nature whatso-
ever that is not fully disclosed in the financial statements
delivered pursuant to Section 7.05(a) or (b) or as disclosed in
Schedule IV hereto which, either individually or in the aggre-
gate, could reasonably be expected to have a Material Adverse
Effect.
(f) On and as of the Restatement Effective Date, the
Projections previously delivered to the Administrative Agent and
the Banks have been prepared on a basis consistent with the
financial statements referred to in Section 7.05(a) (other than
as set forth or presented in such Projections), and there are no
statements or conclusions in any of the Projections which are
based upon or include information known to the Borrowers to be
misleading in any material respect or which fail to take into
account material information regarding the matters reported
therein. On the Restatement Effective Date, the Borrowers be-
lieved that the Projections were reasonable and attainable.
7.06 Litigation. There are no actions, suits or
proceedings pending or, to the best knowledge of the Borrowers,
threatened (i) on the Restatement Effective Date, in respect of
any material Transaction Document (other than any Credit
Document), (ii) with respect to any Credit Document or (iii) that
could reasonably be expected to have a Material Adverse Effect.
7.07 True and Complete Disclosure. Except as provided
in the immediately succeeding sentence with respect to
Thomasville and its Subsidiaries, all factual information (taken
as a whole) furnished by or on behalf of INTERCO or any of its
Subsidiaries in writing to the Administrative Agent or any Bank
(including, without limitation, all factual information contained
in the Documents) for purposes of or in connection with this
Agreement, the other Credit Documents or any transaction contem-
plated herein or therein is, and all other such factual informa-
tion (taken as a whole) hereafter furnished by or on behalf of
INTERCO or any of its Subsidiaries in writing to the
Administrative Agent or any Bank will be, true and accurate in
all material respects on the date as of which such information is
dated or certified and not incomplete by omitting to state any
fact necessary to make such information (taken as a whole) not
misleading in any material respect at such time in light of the
circumstances under which such information was provided. No
representation or warranty of the Borrowers in this Agreement or
in the other Credit Documents with respect to Thomasville and its
Subsidiaries, to the best knowledge of the Borrowers, contains as
of the Restatement Effective Date any untrue statements of a
material fact or omits to state a material fact necessary in
order to make the statements contained herein or therein not
misleading.
7.08 Use of Proceeds; Margin Regulations. (a) All
proceeds of the A Term Loans (other than the portion thereof
converted from Original Term Loans under Section 1.01(a) or used
to repay obligations to the Original Banks under the Original
Credit Agreement) shall be used by the Borrowers to (x)
consummate the Transaction and (y) pay fees and expenses related
thereto.
(b) All proceeds of the B Term Loans shall be used by
the Borrower to (x) consummate the Transaction and (y) pay fees
and expenses related thereto.
(c) All proceeds of the C Term Loans shall be used by
the Borrower to (x) consummate the Transaction and (y) pay fees
and expenses related thereto.
(d) All proceeds of the Revolving Loans and Swingline
Loans shall be used for the Borrowers' and their Subsidiaries'
ongoing general corporate purposes; provided that not more than
$75,000,000 in aggregate principal amount of Revolving Loans and
Swingline Loans shall be outstanding on the Restatement Effective
Date.
(e) No part of the proceeds of any Loan will be used
to purchase or carry any Margin Stock or to extend credit for the
purpose of purchasing or carrying any Margin Stock. Neither the
making of any Loan nor the use of the proceeds thereof nor the
occurrence of any other Credit Event will violate or be
inconsistent with the provisions of Regulation G, T, U or X of
the Board of Governors of the Federal Reserve System.
7.09 Tax Returns and Payments. (a) Each of INTERCO
and its Restricted Subsidiaries (including, without limitation,
but subject to the last sentence of this Section 7.09(a),
Thomasville and its Subsidiaries) have timely filed or caused to
be timely filed, on the due dates thereof or within applicable
grace periods (inclusive of any permitted extensions), with the
appropriate taxing authority, all Federal, state and other
material returns, statements, forms and reports for taxes (the
"Returns") required to be filed by or with respect to the income,
properties or operations of INTERCO and its Restricted
Subsidiaries. The Returns accurately reflect in all material
respects all liability for taxes of INTERCO and its Restricted
Subsidiaries for the periods covered thereby other than Taxes for
which adequate reserves have been established in accordance with
generally accepted accounting principles. Each of INTERCO and
its Restricted Subsidiaries have paid all material taxes payable
by them other than taxes which are not delinquent, and other than
those contested in good faith and for which adequate reserves
have been established in accordance with generally accepted
accounting principles. Except as disclosed in the financial
statements referred to in Section 7.05(a) or (b) and except as
disclosed on Schedule V, there is, as of the Restatement Ef-
fective Date, no material action, suit, proceeding, investiga-
tion, audit, or claim now pending or, to the best knowledge of
the Borrowers, threatened by any authority regarding any taxes
relating to INTERCO or its Restricted Subsidiaries. As of the
Restatement Effective Date, except as set forth on Schedule V,
none of INTERCO or its Restricted Subsidiaries has entered into
an agreement or waiver or been requested to enter into an
agreement or waiver extending any statute of limitations relating
to the payment or collection of taxes of INTERCO or its
Restricted Subsidiaries, or is aware of any circumstances that
would cause the taxable years or other taxable periods of INTERCO
or its Restricted Subsidiaries not to be subject to the normally
applicable statute of limitations. As of the Restatement
Effective Date, none of INTERCO or its Restricted Subsidiaries
has provided, with respect to themselves or property held by
them, any consent under Section 341 of the Code. Except for
amounts specifically set forth in Schedule V, none of INTERCO or
its Restricted Subsidiaries has incurred, or will incur, any
material tax liability in connection with the Transaction and the
other transactions contemplated hereby. Additionally, all of the
foregoing representations are true and correct as to all
Unrestricted Subsidiaries of INTERCO (to the same extent they
were Restricted Subsidiaries) except to the extent any and all
failures to be true and correct could not reasonably be expected
to have a Material Adverse Effect. Notwithstanding anything to
the contrary contained above, to the extent the foregoing
representations contained in this Section 7.09 relate to
Thomasville and its Subsidiaries for periods prior to the
Restatement Effective Date, such representations shall be deemed
untrue only if the aggregate effect of all such failures and
noncompliances of the types described above with respect to
Thomasville and its Subsidiaries for periods prior to the
Restatement Effective Date would reasonably be expected to have a
Material Adverse Effect.
(b) INTERCO'S tax basis in the shares of capital stock
of (x) Converse spun-off in connection with the Converse
Disposition was an amount not less than $165,000,000 at the time
of the consummation thereof and (y) Florsheim spun-off in con-
nection with the Florsheim Disposition was an amount not less
than $50,000,000.
7.10 Compliance with ERISA. (a) Each Plan is in sub-
stantial compliance with ERISA and the Code; no Reportable Event
has occurred with respect to a Plan; to the best knowledge of the
Borrowers, no Multiemployer Plan is insolvent or in
reorganization; no Plan has an Unfunded Current Liability; no
Plan, and to the best knowledge of the Borrowers, no Spunoff
Plan, has an accumulated or waived funding deficiency, or has
applied for an extension of any amortization period within the
meaning of Section 412 of the Code; all contributions required to
be made by the Borrowers, any of their respective Restricted
Subsidiaries or any ERISA Affiliate with respect to a Plan, a
Spunoff Plan, a Multiemployer Plan, and/or a Foreign Pension Plan
have been timely made; none of the Borrowers or any of their
respective Restricted Subsidiaries nor any ERISA Affiliate has
incurred any liability to or on account of a Plan, a Spunoff
Plan, and/or a Multiemployer Plan pursuant to Section 409,
502(i), 502(1), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212
of ERISA or Section 401(a)(29), 4971, 4975 or 4980 of the Code or
reasonably expects to incur any liability (including any
indirect, contingent or secondary liability) under any of the
foregoing Sections with respect to any Plan, a Spunoff Plan,
and/or a Multiemployer Plan; no proceedings have been instituted
to terminate or appoint a trustee to administer any Plan and, to
the best knowledge of the Borrowers, any Spunoff Plan; no
condition exists which presents a risk to the Borrowers or any of
their respective Restricted Subsidiaries or any ERISA Affiliate
of incurring a liability to or on account of a Plan, or to the
best knowledge of the Borrowers a Spunoff Plan, and/or a
Multiemployer Plan pursuant to the foregoing provisions of ERISA
and the Code; using actuarial assumptions and computation methods
consistent with Part 1 of subtitle E of Title IV of ERISA, the
aggregate liabilities of the Borrowers, their respective
Restricted Subsidiaries and their ERISA Affiliates to all
Multiemployer Plans in the event of a complete withdrawal there-
from, as of the close of the most recent fiscal year of each such
Multiemployer Plan ended prior to the date of the most recent
Credit Event, would not exceed $50,000; no lien imposed under the
Code or ERISA on the assets of the Borrowers or any of their
respective Restricted Subsidiaries or any ERISA Affiliate exists
on account of any Plan, a Spunoff Plan, and/or a Multiemployer
Plan or is likely to arise on account of any Plan, or to the best
knowledge of the Borrowers, is likely to arise on account of any
Spunoff Plan and/or Multiemployer Plan; and the Borrowers and
their respective Restricted Subsidiaries do not maintain or con-
tribute to any employee welfare benefit plan (as defined in
Section 3(1) of ERISA) which provides benefits to retired
employees or other former employees (other than as required by
Section 601 of ERISA) or any employee pension benefit plan (as
defined in Section 3(2) of ERISA) the obligations with respect to
which could reasonably be expected to have a Material Adverse
Effect. For purposes of this Section 7.10(a) "to the best
knowledge of the Borrowers" with respect to any Spunoff Plan
means (x) actual knowledge or (y) knowledge acquired through
written or oral notice provided directly to a Borrower by any
governmental agency, court, or Spunoff Plan administrator.
(b) Each Foreign Pension Plan has been maintained in
substantial compliance with its terms and with the requirements
of any and all applicable laws, statutes, rules, regulations and
orders and has been maintained, where required, in good standing
with applicable regulatory authorities. None of the Borrowers
nor any of their respective Restricted Subsidiaries has incurred
any obligation in connection with the termination of or
withdrawal from any Foreign Pension Plan. The present value of
the accrued benefit liabilities (whether or not vested) under
each Foreign Pension Plan, determined as of the end of each Bor-
rower's most recently ended fiscal year on the basis of actuar-
ial assumptions, each of which is reasonable, did not exceed the
current value of the assets of such Foreign Pension Plan
allocable to such benefit liabilities.
(c) Notwithstanding anything to the contrary in this
Section 7.10, the representations made in this Section 7.10 shall
only be untrue if the aggregate effect of all failures and
noncompliances of the types described above could reasonably be
expected to have a Material Adverse Effect.
7.11 The Security Documents. (a) The provisions of
the Security Agreement are effective to create in favor of the
Collateral Agent for the benefit of the Secured Creditors a
legal, valid and enforceable security interest in all right,
title and interest of the Credit Parties in the Security Agree-
ment Collateral described therein, and the Security Agreement,
upon the filing of Form UCC-1 financing statements or the appro-
priate equivalent (which filings, if this representation is being
made more than 10 days after the Restatement Effective Date, have
been made), create a fully perfected first lien on, and security
interest in, all right, title and interest in all of the Security
Agreement Collateral described therein, to the extent that a
security interest may be perfected therein by filing a financing
statement under the UCC, subject to no other Liens other than
Permitted Liens. The recordation of the Assignment of Security
Interest in U.S. Patents and Trademarks in the form attached to
the Security Agreement in the United States Patent and Trademark
Office together with filings on Form UCC-1 made pursuant to the
Security Agreement will be effective, under applicable law, to
perfect the security interest granted to the Collateral Agent in
the trademarks and patents covered by the Security Agreement.
Each of the Credit Parties party to the Security Agreement has
good and valid title to all Security Agreement Collateral owned
by such Credit Party described therein, free and clear of all
Liens except those described above in this clause (a).
(b) The security interests created in favor of the
Collateral Agent, as Pledgee, for the benefit of the Secured
Creditors under the Pledge Agreement constitute first priority
perfected security interests in the Pledged Securities described
in the Pledge Agreement, subject to no security interests of any
other Person. No filings or recordings are required in order to
perfect (or maintain the perfection or priority of) the security
interests created in the Pledged Securities and the proceeds
thereof under the Pledge Agreement.
(c) The Mortgages create, as security for the obli-
gations purported to be secured thereby, a valid and enforceable
perfected security interest in and mortgage lien on all of the
Mortgaged Properties in favor of the Collateral Agent (or such
other trustee as may be required or desired under local law) for
the benefit of the Secured Creditors, superior to and prior to
the rights of all third persons (except that the security inter-
est and mortgage lien created in the Mortgaged Properties may be
subject to the Permitted Encumbrances related thereto) and
subject to no other Liens (other than Permitted Liens). Schedule
III contains a true and complete list of each parcel of Real
Property owned or leased by INTERCO and its Restricted
Subsidiaries on the Effective Date, and the type of interest
therein held by INTERCO or such Restricted Subsidiary. INTERCO
and each of its Restricted Subsidiaries have good and
indefeasible title to all fee-owned Mortgaged Properties and
valid leasehold title to all Leaseholds material to its business,
in each case free and clear of all Liens except those described
in the first sentence of this subsection (c).
7.12 Representations and Warranties in Other
Documents. All representations and warranties set forth in the
Documents other than this Agreement were true and correct in all
material respects at the time as of which such representations
and warranties were made (or deemed made) and shall be true and
correct in all material respects as of the Restatement Effective
Date as if such representations and warranties were made on and
as of such date, unless stated to relate to a specific earlier
date, in which case such representations and warranties shall be
true and correct in all material respects as of such earlier
date. Notwithstanding anything to the contrary contained above,
to the extent that the representations and warranties set forth
in the Documents other than this Agreement were made by parties
other than INTERCO and its Subsidiaries, such representations and
warranties shall be deemed untrue only if the aggregate effect of
all inaccuracies in such representations and warranties would
reasonably be expected to have a Material Adverse Effect.
7.13 Properties. INTERCO and each of its Restricted
Subsidiaries have good and valid title to all material properties
owned by them, including all property reflected in the balance
sheets referred to in Sections 7.05(a) and (b) and in the pro
forma balance sheet referred to in Section 5.15 (except as sold
or otherwise disposed of since the date of such balance sheet in
the ordinary course of business or otherwise as permitted
hereunder), free and clear of all Liens, other than (i) as
referred to in the balance sheet or in the notes thereto or in
the pro forma balance sheet or (ii) Permitted Liens otherwise
permitted by Section 9.01.
7.14 Capitalization. (a) On the Restatement Ef-
fective Date and after giving effect to the Transaction, the
authorized capital stock of INTERCO consisted of 100,000,000
shares of INTERCO Common Stock, $1.00 stated value per share, of
which 50,119,816 shares were issued and outstanding as of
September 30, 1995, and at least 60% of such outstanding shares
are owned by the Apollo Group or a Controlled Account. As of the
Restatement Effective Date, INTERCO does not have outstanding any
securities convertible into or exchangeable for its capital stock
or outstanding any rights to subscribe for or to purchase, or any
options for the purchase of, or any agreement providing for the
issuance (contingent or otherwise) of, or any calls, commitments
or claims of any character relating to, its capital stock, in
each case other than the options outstanding pursuant to the
Employee Stock Option Plan and the INTERCO Warrants.
(b) On the Restatement Effective Date and after giving
effect to the Transaction, the authorized capital stock of
Broyhill shall consist of 5,296,178 shares of common stock, no
par value per share, 100 shares of which shall be issued and
outstanding and delivered for pledge pursuant to the Pledge
Agreement. All such outstanding shares of common stock have been
duly and validly issued, are fully paid and nonassessable. As of
the Restatement Effective Date, Broyhill does not have outstand-
ing any securities convertible into or exchangeable for its
capital stock or outstanding any rights to subscribe for or to
purchase, or any options for the purchase of, or any agreements
providing for the issuance (contingent or otherwise) of, or any
calls, commitments or claims of any character relating to, its
capital stock.
(c) On the Restatement Effective Date and after giving
effect to the Transaction, the authorized capital stock of Lane
shall consist of 1,000 shares of common stock, no par value per
share, all of which shall be issued and outstanding and delivered
for pledge pursuant to the Pledge Agreement. All such outstand-
ing shares of common stock have been duly and validly issued, are
fully paid and nonassessable. As of the Restatement Effective
Date, Lane does not have outstanding any securities convertible
into or exchangeable for its capital stock or outstanding any
rights to subscribe for or to purchase, or any options for the
purchase of, or any agreements providing for the issuance
(contingent or otherwise) of, or any calls, commitments or claims
of any character relating to, its capital stock.
(d) On the Restatement Effective Date and after giving
effect to the Transaction, the authorized capital stock of
Thomasville shall consist of 50,000,000 shares of common stock,
$1.00 par value per share, 7,500,000 of which shall be issued and
outstanding and delivered for pledge pursuant to the Pledge
Agreement. All such outstanding shares of common stock have been
duly and validly issued, are fully paid and nonassessable. As of
the Restatement Effective Date, Thomasville does not have out-
standing any securities convertible into or exchangeable for its
capital stock or outstanding any rights to subscribe for or to
purchase, or any options for the purchase of, or any agreements
providing for the issuance (contingent or otherwise) of, or any
calls, commitments or claims of any character relating to, its
capital stock.
7.15 Subsidiaries. (a) On the Restatement Effective
Date and after giving effect to the Transaction, INTERCO has no
Subsidiaries other than the other Borrowers, their respective
Subsidiaries, Interfashions Industries, S.A. and its
Subsidiaries, and the Receivables Subsidiary (which is owned by
Broyhill, Lane, Action and Thomasville).
(b) After giving effect to the Transaction, INTERCO
will have no Subsidiaries other than (i) those Subsidiaries
listed on Schedule VI and (ii) new Subsidiaries created in
compliance with this Agreement.
7.16 Compliance with Statutes, etc. INTERCO and each
of its Subsidiaries are in compliance with all applicable
statutes, regulations and orders of, and all applicable
restrictions imposed by, all governmental bodies, domestic or
foreign, in respect of the conduct of their business and the
ownership of their property (including applicable statutes,
regulations, orders and restrictions relating to environmental
standards and controls), except such noncompliances as could not,
individually or in the aggregate, reasonably be expected to have
a Material Adverse Effect.
7.17 Investment Company Act. None of INTERCO nor any
of its Subsidiaries is an "investment company" or a company
"controlled" by an "investment company," within the meaning of
the Investment Company Act of 1940, as amended.
7.18 Public Utility Holding Company Act. None of
INTERCO nor any of its Subsidiaries is a "holding company," or a
"subsidiary company" of a "holding company," or an "affiliate" of
a "holding company" or of a "subsidiary company" of a "holding
company" within the meaning of the Public Utility Holding Company
Act of 1935, as amended.
7.19 Environmental Matters. (a) INTERCO and each of
its Subsidiaries have complied with all applicable Environmental
Laws and the requirements of any permits issued under such
Environmental Laws. There are no pending or, to the best
knowledge of the Borrowers after due inquiry, threatened Environ-
mental Claims against INTERCO, or any of its Subsidiaries or any
Real Property owned or operated by INTERCO or any of its
Subsidiaries. There are no facts, circumstances, conditions or
occurrences on any Real Property owned or operated by INTERCO or
any of its Subsidiaries or, to the best knowledge of INTERCO or
the Borrowers after due inquiry, on any property adjoining or in
the vicinity of any such Real Property that, to the best knowl-
edge of the Borrowers after due inquiry, could reasonably be
expected (i) to form the basis of an Environmental Claim against
INTERCO or any of its Subsidiaries or any such Real Property, or
(ii) to cause any such Real Property to be subject to any
restrictions on the ownership, occupancy, use or transferability
of such Real Property by INTERCO or any of its Subsidiaries under
any applicable Environmental Law.
(b) Hazardous Materials have not at any time been
generated, used, treated or stored on, or transported to or from,
any Real Property owned or operated by INTERCO or any of its
Subsidiaries except in compliance with all applicable
Environmental Laws and so as not to give rise to an Environmental
Claim. Hazardous Materials have not at any time been Released on
or from any Real Property owned or operated by INTERCO or any of
its Subsidiaries except in compliance with all applicable
Environmental Laws and so as not to give rise to an Environmental
Claim.
(c) Notwithstanding anything to the contrary in this
Section 7.19, the representations made in this Section 7.19 shall
only be untrue if the aggregate effect of all failures and
noncompliances of the types described above could reasonably be
expected to have a Material Adverse Effect.
7.20 Labor Relations. None of INTERCO nor any of its
Subsidiaries is engaged in any unfair labor practice that could
reasonably be expected to have a material adverse effect on the
Borrowers taken as a whole or the Borrowers and their Restricted
Subsidiaries taken as a whole. There is (i) no unfair labor
practice complaint pending against INTERCO or any of its Subsidi-
aries or, to the best knowledge of the Borrowers, threatened
against any of them, before the National Labor Relations Board,
and no material grievance or material arbitration proceeding
arising out of or under any collective bargaining agreement is so
pending against INTERCO or any of its Subsidiaries or, to the
best knowledge of the Borrowers, threatened against any of them,
(ii) no strike, labor dispute, slowdown or stoppage pending
against INTERCO or any of its Subsidiaries or, to the best
knowledge of the Borrowers, threatened against INTERCO or any of
its Subsidiaries and (iii) to the best knowledge of the
Borrowers, no union representation proceeding pending with
respect to the employees of INTERCO or any of its Subsidiaries,
except (with respect to any matter specified in clause (i), (ii)
or (iii) above, either individually or in the aggregate) such as
could not reasonably be expected to have a Material Adverse
Effect.
7.21 Patents, Licenses, Franchises and Formulas.
INTERCO and its Subsidiaries own all material patents,
trademarks, permits, service marks, trade names, copyrights,
licenses, franchises and formulas, or rights with respect to the
foregoing, and have obtained assignments of all leases and other
rights of whatever nature, reasonably necessary for the present
conduct of their business, without any known conflict with the
rights of others which, or the failure to obtain which, as the
case may be, could reasonably be expected to result in a Material
Adverse Effect.
7.22 Indebtedness. Schedule VII sets forth a true and
complete list of all Indebtedness for borrowed money of INTERCO
and its Restricted Subsidiaries as of the Restatement Effective
Date and which is to remain outstanding after giving effect to
the Transaction (excluding the Loans and the Letters of Credit
and the Attributed Receivables Facility Indebtedness, the
"Existing Indebtedness"), in each case showing the aggregate
principal amount thereof and the name of the respective borrower
and any other entity which directly or indirectly guaranteed such
debt all of which Existing Indebtedness is or shall be evidenced
by the Permitted Debt Agreements.
7.23 Transaction. At the time of consummation
thereof, the Transaction shall have been consummated in all
respects in accordance with the terms of the Transaction
Documents and all applicable laws. At the time of consummation
of the Transaction, all consents and approvals of, and filings
and registrations with, and all other actions in respect of, all
governmental agencies, authorities or instrumentalities required
in order to make or consummate the Transaction will have been
obtained, given, filed or taken and are or will be in full force
and effect (or effective judicial relief with respect thereto has
been obtained), except where the failure to so obtain, give, file
or take would not have a material adverse effect on the business,
operations, property, assets, liabilities, condition (financial
or otherwise) or prospects of the Borrowers taken as a whole or
of the Borrowers and their Restricted Subsidiaries taken as a
whole. All applicable waiting periods with respect thereto have
or, prior to the time when required, will have, expired without,
in all such cases, any action being taken by any competent
authority which restrains, prevents, or imposes material adverse
conditions upon the Transaction. Additionally, there does not
exist any judgment, order or injunction prohibiting or imposing
material adverse conditions upon the Transaction or the
occurrence of any Credit Event or the performance by the Credit
Parties of their obligations under the respective Documents. All
actions taken by the Credit Parties pursuant to or in furtherance
of the Transaction have been taken in material compliance with
the respective Documents and all applicable laws.
7.24 Special Purpose Corporation. The Receivables
Subsidiary was formed for the purpose of purchasing, and
receiving contributions of, receivables from each of the
Borrowers (other than INTERCO) and their respective Restricted
Subsidiaries, and selling such receivables to, or obtaining
secured loans from, the Receivables Purchasers, pursuant to the
Receivables Facility and except in connection with the foregoing
(and activities reasonably incidental thereto), the Receivables
Subsidiary engages in no business activities and has no
significant assets or liabilities and shall in no event purchase
receivables from any Unrestricted Subsidiary.
SECTION 8. Affirmative Covenants. Each of the
Borrowers hereby covenants and agrees that on and after the
Restatement Effective Date and until the Total Commitment and all
Letters of Credit and Acceptances have terminated and the Loans,
Notes and Unpaid Drawings, together with interest, Fees and all
other Obligations incurred hereunder and thereunder, are paid in
full:
8.01 Information Covenants. The Borrowers will
furnish to the Administrative Agent, and the Administrative Agent
will promptly forward to each Bank:
(a) Monthly Reports. Within 30 days after the end of
each calendar month of INTERCO (within 45 days after the end
of the last month of each Fiscal Year), the consolidated and
consolidating balance sheets of INTERCO and its
Subsidiaries, in each case, as at the end of such month, and
the related consolidated and consolidating statements of
income and the consolidated statement of cash flow for such
month and for the elapsed portion of the calendar year ended
with the last day of such month, in each case setting forth
comparative figures for the corresponding month in the prior
calendar year and the budgeted figures for such month as set
forth in the respective budget delivered pursuant to Section
8.01(e).
(b) Quarterly Financial Statements. As soon as
available and in any event within 45 days after the close of
each of the first three quarterly accounting periods in each
Fiscal Year, (i) the consolidated and consolidating balance
sheets of INTERCO and its Subsidiaries, in each case, as at
the end of such quarterly period and the related
consolidated and consolidating statements of income and the
consolidated statement of cash flow for such quarterly
period and for the elapsed portion of the Fiscal Year ended
with the last day of such quarterly period and (ii)
management's discussion and analysis of the important opera-
tional and financial developments during such quarterly
period.
(c) Annual Financial Statements. Within 95 days after
the close of each Fiscal Year, (i) the consolidated and
consolidating balance sheets of INTERCO and its
Subsidiaries, in each case, as at the end of such Fiscal
Year and the related consolidated and consolidating
statements of income and consolidated statements of
shareholders' equity and cash flow for such Fiscal Year
setting forth comparative figures for the preceding Fiscal
Year and (A) certified, in the case of such consolidated
financial statements and (B) confirmed by a letter, in the
case of the consolidating statements, delivered in
substantially the form of the auditor's letter delivered to
INTERCO on January 31, 1995, in each case by Peat Marwick or
such other independent certified public accountants of
recognized national standing reasonably acceptable to the
Administrative Agent, together with a report of such
accounting firm stating that in the course of its regular
audit of the financial statements of INTERCO and its
Subsidiaries, which audit was conducted in accordance with
generally accepted auditing standards, such accounting firm
obtained no knowledge of any Default or Event of Default
which has occurred and is continuing or, if in the opinion
of such accounting firm such a Default or Event of Default
with respect to the covenants set forth in Sections 9.02
through 9.16, inclusive, has occurred and is continuing, a
statement as to the nature thereof and (ii) management's
discussion and analysis of the important operational and
financial developments during such Fiscal Year.
(d) Management Letters. Promptly after the receipt
thereof by INTERCO or any of its Restricted Subsidiaries, a
copy of any "management letter" received by such Person from
their certified public accountants and the management's
responses thereto.
(e) Budgets. No later than 30 days following the
commencement of the first day of each Fiscal Year, a budget
in form satisfactory to the Administrative Agent (including
budgeted statements of income and sources and uses of cash
and balance sheets) prepared by INTERCO for (x) each of the
twelve months of such Fiscal Year prepared in detail and (y)
each of the four Fiscal Years immediately following such
Fiscal Year prepared in summary form, in each case, of
INTERCO and its Restricted Subsidiaries, accompanied by the
statement of an Authorized Representative of INTERCO to the
effect that, to the best of his knowledge, the budget is a
reasonable estimate for the period covered thereby.
(f) Officer's Certificates. At the time of the
delivery of the financial statements provided for in Section
8.01(a), (b) and (c), a certificate of an Authorized
Representative of INTERCO to the effect that, to the best of
such Authorized Representative's knowledge, no Default or
Event of Default has occurred and is continuing or, if any
Default or Event of Default has occurred and is continuing,
specifying the nature and extent thereof, which certificate
shall, in the case of any such financial statements
delivered in respect of a period ending on the last day of a
fiscal quarter or year of INTERCO, (x) set forth the
calculations required to establish whether the Borrowers
were in compliance with the provisions of Section 4.02
(excluding Section 4.02(i)), 9.02, 9.03, 9.04, 9.05 and 9.07
through 9.10, inclusive, and 9.16 at the end of such fiscal
quarter or year, as the case may be, (y) if delivered with
the financial statements required by Section 8.01(c), set
forth the amount of Excess Cash Flow for the respective
Excess Cash Flow Payment Period and (z) set forth the
calculation of the Leverage Ratio and Senior Debt Leverage
Ratio and the amount of the Available $10 Million Dividend
Basket Amount, Available $10 Million Acquisition/Investment
Basket Amount, Available Retained Excess Cash Flow Amount,
Available Debt Proceeds Amount, Available Unrestricted
Proceeds Amount, Available Dividend Unrestricted Proceeds
Amount, Available Net Income Amount, Consolidated Cumulative
Net Income Amount, Consolidated Cumulative Excess Net Income
Amount, Consolidated Cumulative 25% Net Income Amount,
Available Permitted Acquisition Amount, Returned Investment
Amount and Available Returned Investment Amount at the end
of the period covered by such financial statements, and all
sources and uses of proceeds relating to the calculation
thereof changing during the period covered by such
statements.
(g) Notice of Default or Litigation. Promptly, and in
any event within three Business Days after an executive
officer of any Borrower obtains knowledge thereof, notice of
(i) the occurrence of any event which constitutes a Default
or Event of Default and (ii) any litigation or governmental
investigation or proceeding pending (x) against INTERCO or
any of its Subsidiaries which could reasonably be expected
to materially and adversely affect the business, operations,
property, assets, liabilities, condition (financial or
otherwise) or prospects of the Borrowers taken as a whole or
the Borrowers and their Restricted Subsidiaries taken as a
whole, (y) with respect to any material Indebtedness of
INTERCO and its Restricted Subsidiaries taken as a whole or
(z) with respect to any Document.
(h) Other Reports and Filings. Promptly, copies of
all financial information, proxy materials and other
information and reports, if any, which INTERCO or any of its
Restricted Subsidiaries shall file with the Securities and
Exchange Commission or any successor thereto (the "SEC") or
deliver to holders of its Indebtedness pursuant to the terms
of the documentation governing such Indebtedness (or any
trustee, agent or other representative therefor).
(i) Environmental Matters. Promptly upon, and in any
event within ten Business Days after, an executive officer
of INTERCO or any of its Restricted Subsidiaries obtains
knowledge thereof, notice of one or more of the following
environmental matters, unless such environmental matters
could not, individually or when aggregated with all other
such environmental matters, be reasonably expected to
materially and adversely affect the business, operations,
property, assets, liabilities, condition (financial or
otherwise) or prospects of the Borrowers taken as a whole or
of the Borrowers and their Restricted Subsidiaries taken as
a whole:
(i) any pending or threatened Environmental Claim
against INTERCO or any of its Subsidiaries or any Real
Property owned or operated by INTERCO or any of its
Subsidiaries;
(ii) any condition or occurrence on or arising from
any Real Property owned or operated by INTERCO or any
of its Subsidiaries that (a) results in noncompliance
by INTERCO or any of its Subsidiaries with any
applicable Environmental Law or (b) could reasonably be
expected to form the basis of an Environmental Claim
against INTERCO or any of its Subsidiaries or any such
Real Property;
(iii) any condition or occurrence on any Real
Property owned or operated by INTERCO or any of its
Subsidiaries that could reasonably be expected to cause
such Real Property to be subject to any restrictions on
the ownership, occupancy, use or transferability by
INTERCO or any of its Subsidiaries of such Real
Property under any Environmental Law; and
(iv) the taking of any removal or remedial action
in response to the actual or alleged presence of any
Hazardous Material on any Real Property owned or
operated by INTERCO or any of its Subsidiaries as
required by any Environmental Law or any governmental
or other administrative agency; provided that in any
event the Borrowers shall deliver to each Bank all
notices received by them or any of their respective
Subsidiaries from any government or governmental agency
under, or pursuant to, CERCLA.
All such notices shall describe in reasonable detail the
nature of the claim, investigation, condition, occurrence or
removal or remedial action, and the Borrowers' or such
Subsidiary's response thereto. In addition, the Borrowers
will provide the Banks with copies of all material communi-
cations with any government or governmental agency relating
to Environmental Laws, all communications with any Person
(other than its attorneys) relating to any Environmental
Claim of which notice is required to be given pursuant to
this Section 8.01(i), and such detailed reports of any such
Environmental Claim as may reasonably be requested by the
Banks.
(j) Annual Meetings with Banks. At the request of the
Administrative Agent, INTERCO shall within 120 days after
the close of each Fiscal Year hold a meeting at a time and
place selected by INTERCO and reasonably acceptable to the
Administrative Agent with all of the Banks at which meeting
shall be reviewed the financial results of the previous
Fiscal Year and the financial condition of INTERCO and the
budgets presented for the current Fiscal Year.
(k) Other Information. From time to time, such other
information or documents (financial or otherwise) with
respect to INTERCO or any of its Subsidiaries as any Bank
may reasonably request in writing.
8.02 Books, Records and Inspections. The Borrowers
will, and will cause each of their respective Restricted Subsidi-
aries to, keep proper books of record and account in which full,
true and correct entries in conformity with generally accepted
accounting principles and all requirements of law shall be made
of all dealings and transactions in relation to its business and
activities. The Borrowers will, and will cause each of their
respective Restricted Subsidiaries to, permit officers and
designated representatives of the Agents or the Required Banks to
visit and inspect, after reasonable notice during regular
business hours and under guidance of officers of the Borrowers or
such Restricted Subsidiary, any of the properties of the
Borrowers or such Restricted Subsidiary, and to examine the books
of account of the Borrowers or such Restricted Subsidiary and
discuss the affairs, finances and accounts of the Borrowers or
such Restricted Subsidiary with, and be advised as to the same
by, its and their officers and independent accountants, all at
such reasonable times and intervals and to such reasonable extent
as such Agent or such Bank may request.
8.03 Maintenance of Property; Insurance. (a) Sched-
ule VIII sets forth a true and complete listing of all insurance
(including self-insurance programs) maintained by INTERCO and its
Restricted Subsidiaries as of the Restatement Effective Date.
The Borrowers will, and will cause each of their respective
Restricted Subsidiaries to, (i) keep all property necessary in
its business in good working order and condition (ordinary wear
and tear excepted), (ii) maintain insurance on all its property
in at least such amounts and against at least such risks as is
consistent and in accordance with industry practice and (iii)
furnish to the Administrative Agent, upon written request, full
information as to the insurance carried. In addition to the
requirements of the immediately preceding sentence, the Borrowers
will at all times cause insurance of the types described in
Schedule VIII to be maintained (with the same scope of coverage
as that described in Schedule VIII) at levels which are at least
as great as the respective amount described opposite the
respective type of insurance on Schedule VIII under the column
headed "Minimum Amount Required to be Maintained."
(b) Except with respect to self-insurance programs
listed on Schedule VIII, the Borrowers will, and will cause their
respective Restricted Subsidiaries to, at all times keep their
respective property insured in favor of the Collateral Agent, and
all policies (including Mortgage Policies) or certificates (or
certified copies thereof) with respect to such insurance (and any
other insurance maintained by the Borrowers or any of their
respective Restricted Subsidiaries) (i) shall be endorsed to the
Collateral Agent's satisfaction for the benefit of the Collateral
Agent (including, without limitation, by naming the Collateral
Agent as loss payee or as an additional insured (provided that
INTERCO and its Restricted Subsidiaries shall be permitted to
settle claims in an amount less than $10,000,000 per claim, so
long as the proceeds from such claims are applied in accordance
with Section 4.02(j))), (ii) shall state that such insurance
policies shall not be cancelled without 30 days' prior written
notice thereof by the respective insurer to the Collateral Agent,
(iii) shall provide that the respective insurers irrevocably
waive any and all rights of subrogation with respect to the
Collateral Agent and the Secured Creditors, (iv) shall contain
the standard non-contributory mortgagee clause endorsement in
favor of the Collateral Agent with respect to hazard insurance
coverage, (v) shall, except in the case of public liability
insurance and workers' compensation insurance, provide that any
losses shall be payable notwithstanding (A) any act or neglect of
the Borrowers or any of their respective Restricted Subsidiaries,
(B) the occupation or use of the properties for purposes more
hazardous than those permitted by the terms of the respective
policy if such coverage is obtainable at commercially reasonable
rates and is of the kind from time to time customarily insured
against by Persons owning or using similar property and in such
amounts as are customary, (C) any foreclosure or other proceeding
relating to the insured properties if such coverage is available
at commercially reasonable rates or (D) any change in the title
to or ownership or possession of the insured properties and (vi)
shall be deposited with the Collateral Agent if such coverage is
available at commercially reasonable rates.
(c) If the Borrowers or any of their respective
Restricted Subsidiaries shall fail to maintain all insurance in
accordance with this Section 8.03, or if the Borrowers or any of
their respective Restricted Subsidiaries shall fail to so endorse
and deposit all policies or certificates with respect thereto,
the Administrative Agent and/or the Collateral Agent shall have
the right (but shall be under no obligation) after giving notice
to INTERCO (but not requiring any consent from INTERCO) to
procure such insurance and the Borrowers agree to jointly and
severally reimburse the Administrative Agent or the Collateral
Agent, as the case may be, for all costs and expenses of pro-
curing such insurance.
8.04 Corporate Franchises. The Borrowers will, and
will cause each of their respective Restricted Subsidiaries
(other than Interfashions Industries, S.A. and its Subsidiaries)
to, do or cause to be done, all things necessary to preserve and
keep in full force and effect its existence and its material
rights, franchises, licenses and patents; provided, however, that
nothing in this Section 8.04 shall prevent (i) sales of assets,
mergers or other transactions by or among INTERCO or any of its
Restricted Subsidiaries in accordance with Section 9.02 or (ii)
(x) the withdrawal by INTERCO or any of the Restricted Sub-
sidiaries of its qualification as a foreign corporation or the
failure to qualify as a foreign corporation in any jurisdiction
or (y) the amendment of the Certificate of Incorporation or By-
Laws of INTERCO or any of its Subsidiaries which would not in any
way materially and adversely affect the Banks, and where such
withdrawal or failure or amendment, as the case may be, could not
reasonably be expected to have a Material Adverse Effect. In the
event INTERCO shall elect to change its corporate name, the
Borrowers will afford the Administrative Agent ten Business Days'
prior written notice of such change and the Borrowers will
execute in advance of such change and cause to be filed and/or
delivered to the Administrative Agent any financing statements or
other documents reasonably requested by the Administrative Agent
in order to continue perfected liens and security interests in
the Collateral, all in form and substance satisfactory to the
Administrative Agent.
8.05 Compliance with Statutes, etc. The Borrowers
will, and will cause each of their respective Subsidiaries to,
comply with all applicable statutes, regulations and orders of,
and all applicable restrictions imposed by, all governmental
bodies, domestic or foreign, in respect of the conduct of its
business and the ownership of its property, except such noncom-
pliances as could not, individually or in the aggregate, rea-
sonably be expected to have a material adverse effect on the
business, operations, property, assets, liabilities, condition
(financial or otherwise) or prospects of the Borrowers taken as a
whole or of the Borrowers and their Restricted Subsidiaries taken
as a whole.
8.06 Compliance with Environmental Laws. (a) The
Borrowers will comply, and will cause each of their respective
Subsidiaries to comply, in all material respects with all
Environmental Laws applicable to the ownership or use of its Real
Property now or hereafter owned or operated by INTERCO or any of
its Subsidiaries, will within a reasonable time period pay or
cause to be paid all costs and expenses incurred in connection
with such compliance, and will keep or cause to be kept all such
Real Property free and clear of any Liens on such Real Property
imposed pursuant to such Environmental Laws; provided that, none
of INTERCO nor any of its Subsidiaries shall be required to
remove any such Liens, so long as the aggregate amount of obliga-
tions purported to be secured by such Liens does not exceed
$1,000,000, and such Liens are being contested in good faith and
by proper proceedings if it has maintained adequate reserves with
respect thereto in accordance with generally accepted accounting
principles. None of INTERCO nor any of its Subsidiaries will
generate, use, treat, store, release or dispose of, or permit the
generation, use, treatment, storage, release or disposal of
Hazardous Materials on any Real Property now or hereafter owned
or operated by INTERCO or any of its Subsidiaries, or transport
or permit the transportation of Hazardous Materials to or from
any such Real Property except for Hazardous Materials used or
stored at any such Real Properties in material compliance with
all applicable Environmental Laws and reasonably required in
connection with the operation, use and maintenance of any such
Real Property.
(b) At the written request of the Administrative Agent
or the Required Banks, which request shall specify in reasonable
detail the basis therefor, at any time and from time to time, the
Borrowers will provide, at the Borrowers' joint and several cost
and expense, an environmental site assessment report concerning
any Real Property now or hereafter owned or operated by INTERCO
or any of its Subsidiaries, prepared by an environmental
consulting firm approved by the Administrative Agent, indicating
the presence or absence of Hazardous Materials and the potential
cost of any removal or remedial action in connection with any
Hazardous Materials on such Real Property; provided, that such
request may be made only if (i) there has occurred and is
continuing an Event of Default, (ii) the Administrative Agent
reasonably believes that INTERCO, any of its Subsidiaries or any
such Real Property is not in material compliance with
Environmental Law, or (iii) circumstances exist that reasonably
could be expected to form the basis of a material Environmental
Claim against INTERCO, any of its Subsidiaries or any such Real
Property. If the Borrowers fail to provide the same within 90
days after such request was made, the Administrative Agent may
order the same, and the Borrowers shall grant and hereby grant to
the Administrative Agent and the Banks and their agents access to
such Real Property and specifically grant the Administrative
Agent and the Banks an irrevocable non-exclusive license, subject
to the rights of tenants, to undertake such an assessment, all at
the Borrowers' joint and several expense.
8.07 ERISA. As soon as possible and, in any event,
within 20 days after the Borrowers or any of their respective
Restricted Subsidiaries or any ERISA Affiliate knows or has
reason to know of the occurrence of any of the following, the
Borrowers will deliver to the Administrative Agent, and the
Administrative Agent shall promptly forward to each Bank a
certificate of an Authorized Representative of the Borrowers
setting forth details as to such occurrence and the action, if
any, that the Borrowers, such Restricted Subsidiary or such ERISA
Affiliate is required or proposes to take, together with any
notices required or proposed to be given to or filed with or by
the Borrowers, such Restricted Subsidiary, the ERISA Affiliate,
the PBGC, or a Plan participant or the Plan administrator with
respect thereto: that a Reportable Event has occurred; that an
accumulated funding deficiency has been incurred or an applica-
tion is likely to be or has been made to the Secretary of the
Treasury for a waiver or modification of the minimum funding
standard (including any required installment payments) or an
extension of any amortization period under Section 412 of the
Code with respect to a Plan, Multiemployer Plan and/or a Spunoff
Plan; that a contribution required to be made to a Plan,
Multiemployer Plan and/or Foreign Pension Plan has not been
timely made; that a Plan, Multiemployer Plan and/or a Spunoff
Plan has been or is reasonably expected to be terminated,
reorganized, partitioned or declared insolvent under Title IV of
ERISA; that a Plan, Multiemployer Plan and/or a Spunoff Plan has
an Unfunded Current Liability giving rise to a lien under ERISA
or the Code; that proceedings are likely to be or have been
instituted or notice has been given to terminate or appoint a
trustee to administer a Plan, Multiemployer Plan and/or a Spunoff
Plan; that a proceeding has been instituted pursuant to Section
515 of ERISA to collect a delinquent contribution to a
Multiemployer Plan if material in amount; that the Borrowers, any
of their respective Restricted Subsidiaries or any ERISA
Affiliate will or is reasonably expected to incur any material
liability (including any indirect, contingent or secondary
liability) to or on account of the termination of or withdrawal
from a Plan, Multiemployer Plan and/or a Spunoff Plan under
Section 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or
with respect to a Plan, Multiemployer Plan and/or a Spunoff Plan
under Section 401(a)(29), 4971, 4975 or 4980 of the Code or
Section 409 or 502(i) or 502(l) of ERISA; or except as disclosed
on Schedule XVII, that the Borrowers or any Restricted Subsidiary
is reasonably expected to incur any liability pursuant to any
employee welfare benefit plan (as defined in Section 3(1) of
ERISA) that provides benefits to retired employees or other
former employees (other than as required by Section 601 of ERISA)
or any employee pension benefit plan (as defined in Section 3(2)
of ERISA) which liability, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.
Upon request, the Borrowers will deliver to each of the Banks a
complete copy of the annual report (Form 5500) of each Plan
(including, to the extent required to be filed with the Internal
Revenue Service in connection with such annual report, the
related financial and actuarial statements and opinions and other
supporting statements, certifications, schedules and information)
required to be filed with the Internal Revenue Service. In
addition to any certificates or notices delivered to the Banks
pursuant to the first sentence hereof, copies of such annual
reports and any material notices received by the Borrowers or any
of their respective Restricted Subsidiaries or any ERISA
Affiliate with respect to any Plan, Multiemployer Plan, Spunoff
Plan and/or Foreign Pension Plan shall be delivered to the Banks
no later than 20 days after the date such report has been
requested or such notice has been received by the Borrowers, the
Restricted Subsidiary or the ERISA Affiliate, as applicable. For
purposes of this Section 8.07 "knows or has reason to know" with
respect to any Spunoff Plan means knowledge acquired through
written or oral notice provided directly to a Borrower by any
governmental agency, court, or Spunoff Plan administrator.
8.08 End of Fiscal Years; Fiscal Quarters. INTERCO
shall cause (i) each of its Fiscal Years to end on December 31,
and each of its fiscal quarters to end on the last day of each
March, June, September and December and (ii) each of its
Restricted Subsidiaries' (x) fiscal years to end on the closest
Saturday to December 31 and (y) fiscal quarters to end on the
closest Saturday to the last day of each March, June, September
and December.
8.09 Performance of Obligations. Each of the
Borrowers will, and will cause each of its Subsidiaries to,
perform all of its obligations under the terms of each mortgage,
indenture, security agreement and other debt instrument by which
it is bound, except such non-performances as could not,
individually or in the aggregate, reasonably be expected to have
a material adverse effect on the business, operations, property,
assets, liabilities, condition (financial or otherwise) or
prospects of the Borrowers taken as a whole or of the Borrowers
and the Restricted Subsidiaries taken as a whole.
8.10 Payment of Taxes. Each of the Borrowers will pay
and discharge or cause to be paid and discharged, and will cause
each of their respective Subsidiaries to pay and discharge, all
material taxes, assessments and governmental charges or levies
imposed upon it or upon its income or profits, or upon any
material properties belonging to it, in each case on a timely
basis, and all lawful claims which, if unpaid, might become a
lien or charge upon any properties of INTERCO or any of its
Restricted Subsidiaries; provided that none of INTERCO nor any of
its Subsidiaries shall be required to pay any such tax,
assessment, charge, levy or claim which is being contested in
good faith and by proper proceedings if it has maintained xxx-
xxxxx reserves with respect thereto in accordance with generally
accepted accounting principles.
8.11 Additional Security; Further Assurances; Required
Appraisals. (a) The Borrowers will, and will cause each of
their respective Restricted Subsidiaries to, grant to the Col-
lateral Agent security interests and mortgages (an "Additional
Mortgage") in such Real Property (other than Real Property
encumbered by (i) liens incurred by a Restricted Subsidiary at a
time when it was an Unrestricted Subsidiary, to the extent such
Liens are otherwise permitted by this Agreement and (ii) Liens
securing Indebtedness permitted pursuant to Section 9.04 (vii),
but only until such time as such Indebtedness is repaid) of the
Borrowers or any of their respective Restricted Subsidiaries as
are not covered by the original Mortgages, to the extent such
Real Property is acquired after the Effective Date and either (x)
the cost (including assumed Indebtedness) of such Real Property
is in excess of $2,500,000 or (y) the respective Additional Xxxx-
xxxx has been requested by the Required Banks (each such Real
Property, an "Additional Mortgaged Property"), provided that
subject to Section 9.02(xi), if the Real Property located at
Xxxxx Xxxxxxxxxx Xxxxxx, Xxxx Xxxxx, Xxxxx Xxxxxxxx is not sold
by March 31, 1996, then the Borrowers will, and will cause their
respective Restricted Subsidiaries to, grant to the Collateral
Agent an Additional Mortgage in such Real Property. All such
Additional Mortgages shall be granted pursuant to documentation
substantially in the form of the Mortgages delivered to the
Administrative Agent on the Effective Date or in such other form
as is reasonably satisfactory to the Administrative Agent and
shall constitute valid and enforceable perfected Liens superior
to and prior to the rights of all third Persons and subject to no
other Liens except as are permitted by Section 9.01 at the time
of perfection thereof. The Additional Mortgages or instruments
related thereto shall have been duly recorded or filed in such
manner and in such places as are required by law to establish,
perfect, preserve and protect the Liens in favor of the
Collateral Agent required to be granted pursuant to the
Additional Mortgages and all taxes, fees and other charges pay-
able in connection therewith shall have been paid in full.
(b) The Borrowers will, and will cause each of their
respective Restricted Subsidiaries to, at the joint and several
expense of the Borrowers, make, execute, endorse, acknowledge,
file and/or deliver to the Collateral Agent from time to time
such vouchers, invoices, schedules, confirmatory assignments,
conveyances, financing statements, transfer endorsements, powers
of attorney, certificates, real property surveys, reports and
other assurances or instruments and take such further steps
relating to the Collateral covered by any of the Security
Documents as the Collateral Agent may reasonably require pursuant
to this Section 8.11. Furthermore, the Borrowers shall cause to
be delivered to the Collateral Agent such opinions of counsel,
title insurance and other related documents as may be requested
by the Collateral Agent to assure itself that this Section 8.11
has been complied with.
(c) Each Borrower agrees to cause each Restricted
Subsidiary established or created in accordance with Section 9.12
to execute and deliver a guaranty of all Obligations and all
obligations under Interest Rate Protection Agreements in substan-
tially the form of the Subsidiary Guaranty, or by becoming a
party to the Subsidiary Guaranty.
(d) Each Borrower agrees to pledge all of the capital
stock of each new Subsidiary (other than any Subsidiary of an
Unrestricted Subsidiary) created in accordance with Section 9.12
to the Collateral Agent for the benefit of the Secured Creditors
pursuant to the Pledge Agreement.
(e) Each Borrower will cause each Restricted
Subsidiary established or created in accordance with Section 9.12
to grant to the Collateral Agent a first priority Lien on all
property (tangible and intangible) of such Subsidiary upon terms
similar to those set forth in the Security Documents as
appropriate, and satisfactory in form and substance to the
Administrative Agent and Required Banks. Each Borrower shall
cause each of its respective Restricted Subsidiaries, at its own
expense, to execute, acknowledge and deliver, or cause the
execution, acknowledgement and delivery of, and thereafter
register, file or record in any appropriate governmental office,
any document or instrument reasonably deemed by the Collateral
Agent to be necessary or desirable for the creation and
perfection of the foregoing Liens. Each Borrower will cause each
of its respective Restricted Subsidiaries to take all actions
requested by the Administrative Agent (including, without
limitation, the filing of UCC-1's) in connection with the
granting of such security interests.
(f) The security interests required to be granted
pursuant to this Section 8.11 shall be granted pursuant to
security documentation (which shall be substantially similar to
the Security Documents already executed and delivered by INTERCO
and its Restricted Subsidiaries, as applicable) or otherwise
satisfactory in form and substance to the Administrative Agent
and shall constitute valid and enforceable perfected security
interests prior to the rights of all third Persons and subject to
no other Liens except such Liens as are permitted by Section
9.01. The Additional Security Documents and other instruments
related thereto shall be duly recorded or filed in such manner
and in such places and at such times as are required by law to
establish, perfect, preserve and protect the Liens, in favor of
the Collateral Agent for the benefit of the respective Secured
Creditors, required to be granted pursuant to the Additional
Security Documents and all taxes, fees and other charges payable
in connection therewith shall be paid, jointly and severally, in
full by the Borrowers. At the time of the execution and delivery
of the Additional Security Documents, the Borrowers shall cause
to be delivered to the Collateral Agent such opinions of counsel,
Mortgage Policies, title surveys, real estate appraisals and
other related documents as may be reasonably requested by the
Administrative Agent or the Required Banks to assure themselves
that this Section 8.11 has been complied with.
(g) In the event that the Administrative Agent or the
Required Banks at any time after the Effective Date determine in
its or their good faith discretion that real estate appraisals
satisfying the requirements of FIRREA (any such appraisal a
"Required Appraisal") are or were required to be obtained, or
should be obtained, in connection with any Mortgaged Property or
Mortgaged Properties, then, within 120 days after receiving
written notice thereof from the Administrative Agent or the
Required Banks, as the case may be, such Required Appraisal shall
be delivered, at the expense of the Borrowers, to the
Administrative Agent which Required Appraisal, and the respective
appraiser, shall be satisfactory to the Administrative Agent.
(h) Each of the Borrowers agrees that each action
required above by Section 8.11 (a) or (b) shall be completed as
soon as possible, but in no event later than 60 days after such
action is requested to be taken by the Administrative Agent or
the Required Banks. Each of the Borrowers further agrees that
each action required by Section 8.11(c), (d), (e) and (f) with
respect to the Additional Collateral shall be completed
contemporaneously with the creation of such new Subsidiary.
8.12 Interest Rate Protection. The Borrowers shall
maintain, for the remaining scheduled term thereof (which ends on
December 31, 1997), the Interest Rate Protection Agreement which
is in effect on the Restatement Effective Date, and which
established a fixed or maximum interest rate in respect of
$170,000,000 notional principal amount of Indebtedness. In
addition to the Interest Rate Protection Agreement maintained
pursuant to the immediately preceding sentence, not later than
March 31, 1996, INTERCO and/or the other Borrowers shall enter
into, and at all times thereafter for a period of at least three
years from the entering into thereof maintain, interest rate
protection pursuant to one or more Interest Rate Protection
Agreements which establish a fixed or maximum interest rate
(whether through swaps, caps, collars or otherwise) acceptable to
the Administrative Agent in respect of at least $180,000,000 (in
addition to the $170,000,000 referenced in the immediately
preceding sentence) notional principal amount of Indebtedness.
8.13 Ownership of Subsidiaries. INTERCO shall at all
times own 100% of the outstanding capital stock of the other
Borrowers. Except to the extent otherwise expressly consented in
writing by the Required Banks and except as set forth in Schedule
VI, the Borrowers shall directly or indirectly own 100% of the
capital stock of each of their Subsidiaries (other than as
permitted pursuant to the definition of Permitted Acquisition).
8.14 Permitted Acquisitions. Subject to the provi-
sions of this Section 8.14, Section 9.02(vii) and the require-
ments contained in the definition of Permitted Acquisition, the
Borrowers and their Restricted Subsidiaries may from time to time
after the Restatement Effective Date effect Permitted
Acquisitions, so long as (i) the Borrowers shall have given the
Administrative Agent and the Banks at least 10 Business Days'
prior written notice of any Permitted Acquisition, (ii) based on
calculations made by the Borrowers on a Pro Forma Basis after
giving effect to the respective Permitted Acquisition and any
Indebtedness (including without limitation Permitted Acquired
Debt) or Disqualified Preferred Stock incurred, issued or assumed
in connection with the respective Permitted Acquisition or to
finance same, (x) no Default or Event of Default will exist
under, or would have existed during the periods covered by, the
financial covenants contained in Sections 9.08 through 9.10,
inclusive, of this Agreement and (y) if any Indebtedness or
Disqualified Preferred Stock is being incurred, issued or assumed
in connection with the respective Permitted Acquisition or to
finance same (excluding, however, Permitted Acquired Debt in
connection with any Permitted Acquisition where the only
Indebtedness or Disqualified Preferred Stock being incurred,
issued or assumed in connection therewith or to finance same is
Permitted Acquired Debt), the Senior Debt Leverage Ratio shall
not exceed 3.5:1.0, (iii) based on good faith projections
prepared by the Borrowers for the period from the date of the
consummation of the Permitted Acquisition to the date which is
one year thereafter, the level of financial performance measured
by the covenants set forth in Sections 9.08 through 9.10
inclusive shall be better than or equal to such level as would be
required to provide that no Default or Event of Default would
exist under the financial covenants contained in Sections 9.08
through 9.10, inclusive, of this Agreement as compliance with
such covenants would be required through the date which is one
year from the date of the consummation of the respective
Permitted Acquisition, (iv) the Administrative Agent shall have
been satisfied in its reasonable discretion that the proposed
Permitted Acquisition could not reasonably be expected to result
in materially increased tax, ERISA or environmental liabilities
with respect to INTERCO or any of its Restricted Subsidiaries, it
being understood that any determination of whether the proposed
Permitted Acquisition could reasonably be expected to result in
such materially increased tax, ERISA or environmental liabilities
shall take into account, inter alia, (x) any available
indemnities and (y) the timing and likelihood of payment
thereunder and (v) the Borrowers shall have delivered to the
Administrative Agent an officer's certificate executed by an
Authorized Representative of the Borrowers, certifying (A) to the
best of his knowledge, compliance with the requirements of
preceding clauses (i), (ii) and (iii) and containing the calcula-
tions required by the preceding clauses (ii) and (iii) and (B)
compliance with the requirements of Section 9.02(vii).
8.15 Maintenance of Corporate Separateness. INTERCO
will, and will cause each of its Subsidiaries to, satisfy
customary corporate formalities, including the holding of regular
board of directors' and shareholders' meetings or action by
directors or shareholders without a meeting and the maintenance
of corporate offices and records. None of the Borrowers nor any
of their respective Restricted Subsidiaries shall make any pay-
ment to a creditor of any Unrestricted Subsidiaries in respect of
any liability of any Unrestricted Subsidiaries, and no bank
account of any Unrestricted Subsidiary shall be commingled with
any bank account of any of the Borrowers or any of their respec-
tive Restricted Subsidiaries. Any financial statements
distributed to any creditors of any Unrestricted Subsidiaries
shall clearly establish or indicate the corporate separateness of
such Unrestricted Subsidiary from the Borrowers and their respec-
tive Restricted Subsidiaries. Finally, neither INTERCO nor any
of its Subsidiaries shall take any action, or conduct its affairs
in a manner, which is likely to result in the corporate existence
of INTERCO or any of its Subsidiaries being ignored, or in the
assets and liabilities of the Borrowers or any of their
respective Restricted Subsidiaries being substantively xxxxxxx-
dated with those of any Unrestricted Subsidiaries in a bank-
ruptcy, reorganization or other insolvency proceeding.
8.16 Cash Management System. The Borrowers will, and
will cause each of their respective Restricted Subsidiaries to,
utilize and maintain the Cash Management System for all deposits
made by any of them (including the concentration of all such
deposits in the Concentration Account). The Cash Management
System shall be operated solely for the business of the Borrowers
and their respective Restricted Subsidiaries.
SECTION 9. Negative Covenants. The Borrowers covenant
and agree that on and after the Restatement Effective Date and
until the Total Commitments and all Letters of Credit and
Acceptances have terminated and the Loans, Notes and Unpaid Draw-
ings, together with interest, Fees and all other Obligations
incurred hereunder and thereunder, are paid in full:
9.01 Liens. The Borrowers will not, and will not
permit any of their respective Restricted Subsidiaries to,
create, incur, assume or suffer to exist any Lien upon or with
respect to any property or assets (real or personal, tangible or
intangible) of INTERCO or any of its Restricted Subsidiaries,
whether now owned or hereafter acquired, or sell any such prop-
erty or assets subject to an understanding or agreement, contin-
gent or otherwise, to repurchase such property or assets (includ-
ing sales of accounts receivable with recourse to INTERCO or any
of its Restricted Subsidiaries), or assign any right to receive
income or permit the filing of any financing statement under the
UCC or any other similar notice of Lien under any similar record-
ing or notice statute; provided that the provisions of this
Section 9.01 shall not prevent the creation, incurrence, filing,
assumption or existence of the following (Liens described below
are herein referred to as "Permitted Liens"):
(i) incipient Liens for taxes, assessments or govern-
mental charges or levies not yet due and payable or Liens
for taxes, assessments or governmental charges or levies
being contested in good faith and by appropriate proceedings
for which adequate reserves have been established in
accordance with generally accepted accounting principles in
the United States (or the equivalent thereof in any country
in which a Foreign Sales Corporation or a Foreign Subsidiary
is doing business, as applicable);
(ii) Liens in respect of property or assets of the
Borrowers or any of their Restricted Subsidiaries imposed by
law, which were incurred in the ordinary course of business
and do not secure Indebtedness for borrowed money, such as
carriers', warehousemen's, materialmen's and mechanics'
liens and other similar Liens arising in the ordinary course
of business, and (x) which do not in the aggregate
materially detract from the value of the Borrowers' or such
Restricted Subsidiary's property or assets or materially
impair the use thereof in the operation of the business of
the Borrowers or such Restricted Subsidiary or (y) which are
being contested in good faith by appropriate proceedings,
which proceedings have the effect of preventing the forfei-
ture or sale of the property or assets subject to any such
Lien;
(iii) Liens in existence on the Restatement Effective
Date which are listed, and the property subject thereto
described, in Schedule IX, but only to the respective date,
if any, set forth in such Schedule IX for the removal and
termination of any such Liens, plus renewals and extensions
of such Liens to the extent set forth on Schedule IX,
provided that (x) the aggregate principal amount of the
Indebtedness, if any, secured by such Liens does not
increase from that amount outstanding at the time of any
such renewal or extension and (y) any such renewal or
extension does not encumber any additional assets or
properties of INTERCO or any of its Restricted Subsidiaries;
(iv) Permitted Encumbrances;
(v) Liens created pursuant to the Security Documents;
(vi) licenses, leases or subleases granted to other
Persons in the ordinary course of business not materially
interfering with the conduct of the business of INTERCO and
its Restricted Subsidiaries taken as a whole;
(vii) Liens upon assets subject to Capitalized Lease
Obligations of the Borrowers and their Restricted Sub-
sidiaries to the extent permitted by Section 9.04(vii),
provided that (x) such Liens only serve to secure the
payment of Indebtedness arising under such Capitalized Lease
Obligation and (y) the Lien encumbering the asset giving
rise to the Capitalized Lease Obligation does not encumber
any other asset of the Borrowers or any Restricted Subsidi-
ary of the Borrowers;
(viii) Liens placed upon assets used in the ordinary
course of business of the Borrowers or any of their
Restricted Subsidiaries at the time of acquisition or new
construction thereof by the Borrowers or any such Restricted
Subsidiary or within 180 days thereafter to secure Indebted-
ness incurred to pay all or a portion of the purchase price
and/or construction costs thereof, or Liens securing
Permitted Acquired Debt, provided that (x) the aggregate
outstanding principal amount of all Indebtedness secured by
Liens permitted by this clause (viii) shall not at any time
exceed the amount permitted by Section 9.04(vii) and (y) in
all events, the Lien encumbering the assets so acquired or
newly constructed does not encumber any other asset of the
Borrowers or such Restricted Subsidiary;
(ix) easements, rights-of-way, restrictions (including
zoning restrictions), encroachments, protrusions and other
similar charges or encumbrances, and minor title
deficiencies, in each case whether now or hereafter in
existence, not securing Indebtedness and not materially
interfering with the conduct of the business of the
Borrowers or any of their respective Restricted Sub-
sidiaries;
(x) Liens arising from precautionary UCC financing
statement filings regarding operating leases entered into by
the Borrowers or any of their Restricted Subsidiaries in the
ordinary course of business;
(xi) Liens arising out of the existence of judgments or
awards not constituting an Event of Default under Section
10.09, provided that no cash or property is deposited or
delivered to secure the respective judgment or award (or any
appeal bond in respect thereof, except as permitted by
following clause (xiv));
(xii) Liens, and the filing of financing statements in
connection therewith, created by, and as set forth in, the
Receivables Documents;
(xiii) statutory and contractual landlords' liens under
leases to which the Borrowers or any of their Restricted
Subsidiaries are a party;
(xiv) Liens (other than any Lien imposed by ERISA) (x)
incurred or deposits made in the ordinary course of business
of the Borrowers and their respective Restricted
Subsidiaries in connection with workers' compensation,
unemployment insurance and other types of social security,
(y) to secure the performance by the Borrowers and their
respective Restricted Subsidiaries of tenders, statutory
obligations (other than excise taxes), surety, stay, customs
and appeal bonds, statutory bonds, bids, leases, government
contracts, trade contracts, performance and return of money
bonds and other similar obligations (exclusive of
obligations for the payment of borrowed money) or (z) to
secure the performance by the Borrowers and their respective
Restricted Subsidiaries of leases of Real Property, to the
extent incurred or made in the ordinary course of business
consistent with past practices, provided that the aggregate
amount of deposits at any time pursuant to sub-clause (y)
and sub-clause (z) shall not exceed $5,000,000 in the
aggregate;
(xv) any interest or title of a lessor, sublessor,
licensee or licensor under any lease or license agreement
permitted by this Agreement;
(xvi) Liens (x) in favor of customs and revenue authori-
ties arising as a matter of law to secure the payment of
customs duties in connection with the importation of goods
and deposits made to secure statutory obligations in the
form of excise taxes or (y) in respect of property or assets
of Thomasville or any of its Subsidiaries imposed by law or
governmental action which arise out of actual or potential
claims under any Environmental Law disclosed in the
environmental report furnished to the Administrative Agent
prior to the Restatement Effective Date, in each case so
long as the Liens described in this clause (y) are being
contested in good faith (or INTERCO or its respective
Subsidiaries are in good faith pursuing indemnities in
respect thereof pursuant to the Stock Purchase Agreement)
pursuant to appropriate proceedings, which proceedings have
the effect of preventing the forfeiture or sale of the
property subject to any such Lien and so long as adequate
reserves (if necessary) have been established in accordance
with generally accepted accounting principles with respect
to the liability or liabilities secured by such Liens;
(xvii) Liens arising out of conditional sale, title
retention, consignment or similar arrangements for the sale
of goods entered into by the Borrowers or any of their
Restricted Subsidiaries in the ordinary course of business
in accordance with the past practices of the Borrowers and
their Restricted Subsidiaries prior to the Effective Date;
and
(xviii) Liens not otherwise permitted by the foregoing
clauses (i) through (xvii) to the extent attaching to
properties and assets with an aggregate fair value not in
excess of, and securing liabilities not in excess of,
$10,000,000 in the aggregate at any time outstanding.
9.02 Consolidation, Merger, Purchase or Sale of
Assets, etc. The Borrowers will not, and will not permit any of
their respective Restricted Subsidiaries to, wind up, liquidate
or dissolve its affairs (other than with respect to Interfashions
Industries, S.A. and its Subsidiaries) or enter into any trans-
action of merger or consolidation, or convey, sell, lease or
otherwise dispose of (or agree to do any of the foregoing at any
future time) all or any part of its property or assets (other
than the liquidation of Cash Equivalents in the ordinary course
of business), or enter into any sale-leaseback transactions, or
purchase or otherwise acquire (in one or a series of related
transactions) any part of the property or assets (other than pur-
chases or other acquisitions of inventory, materials, equipment,
furniture, fixtures, and intangible assets in the ordinary course
of business) of any Person, except that:
(i) Capital Expenditures by the Borrowers and their
Restricted Subsidiaries shall be permitted to the extent not
in violation of Section 9.07;
(ii) each of the Borrowers and their Restricted
Subsidiaries may (x) in the ordinary course of business,
sell, lease or otherwise dispose of any assets which, in the
reasonable judgment of such Person, are obsolete, worn out
or otherwise no longer useful in the conduct of such
Person's business, (y) sell, lease or otherwise dispose of
any other assets, provided that each such sale, lease or
disposition shall be for fair market value (other than with
respect to sales, leases or dispositions in an aggregate
amount not to exceed $100,000 per calendar year) and at
least 75% of the consideration therefor shall be in the form
of cash, and provided further, that (A) except as provided
in following clause (B), the aggregate Net Sale Proceeds of
all assets subject to sales or other dispositions pursuant
to clauses (x) and (y) shall not exceed $15,000,000 in the
aggregate in any Fiscal Year and (B) in addition to sales
effected pursuant to preceding clause (A), additional assets
may be sold pursuant to this Section 9.02(ii) so long as at
least 90% of the aggregate consideration for any such asset
sale shall be in the form of cash and so long as the
aggregate Net Sale Proceeds of all assets sold pursuant to
this clause (B) after the Restatement Effective Date do not
exceed $75,000,000, and (z) enter into transactions
permitted under Section 9.01(vi);
(iii) Investments may be made to the extent permitted by
Section 9.05;
(iv) each of the Borrowers and their Restricted Subsidi-
aries may lease (as lessee) real or personal property (so
long as any such lease does not create a Capitalized Lease
Obligation except to the extent permitted by Section 9.04);
(v) each of the Borrowers and their Restricted
Subsidiaries may make sales or transfers of inventory (x) in
the ordinary course of business or (y) to any other Borrower
or any Domestic Wholly-Owned Subsidiary of INTERCO which is
a Subsidiary Guarantor;
(vi) sales and contributions of accounts receivable to
the Receivables Subsidiary and sales of accounts receivable
by the Receivables Subsidiary to the Receivables Purchasers,
and purchases and acquisitions of accounts receivable by the
Receivables Subsidiary, in each case pursuant to the
Receivables Facility shall be permitted;
(vii) the Borrowers and their respective Restricted
Subsidiaries shall be permitted to make Permitted
Acquisitions so long as (A) such Permitted Acquisitions are
effected in accordance with the requirements of Section
8.14, (B) after giving effect to any Permitted Acquisition,
the aggregate amount paid (including for the purpose of this
clause (vii) all cash consideration paid, the amount of all
Indebtedness and/or Disqualified Preferred Stock directly
issued as consideration, the face amount of all Permitted
Acquired Debt incurred or assumed and the fair market value
of any merger consideration, but excluding the fair market
value of all INTERCO Common Stock and/or Qualified Preferred
Stock issued as consideration therefor, in each case in con-
nection with such Permitted Acquisition) by the Borrowers
and their Restricted Subsidiaries in connection with such
Permitted Acquisition shall not exceed the Available
Permitted Acquisition Amount at such time (after giving
effect to all prior and contemporaneous adjustments thereto,
except as a result of such Permitted Acquisition); provided
that in no event shall such aggregate amount paid in
connection with Permitted Acquisitions effected after the
Restatement Effective Date (calculated in accordance with
the first parenthetical contained in preceding clause (B)),
when added to the amount of Investments made after the
Restatement Effective Date pursuant to Section 9.05(vii),
exceed $75,000,000 plus the Returned Investment Amount as
calculated on the date any determination is being made
pursuant to this proviso, and (C) with respect to each
Permitted Acquisition, no Default or Event of Default is in
existence at the time of the consummation of such Permitted
Acquisition or would exist after giving effect thereto;
(viii) INTERCO may sell or otherwise dispose of any shares
of capital stock of any Unrestricted Subsidiaries owned by
it;
(ix) so long as no Default or Event of Default then
exists or would result therefrom, the Borrowers or any
Domestic Wholly-Owned Subsidiary which is a Restricted
Subsidiary (other than the Receivables Subsidiary) of
INTERCO may be merged into or consolidated with any Borrower
(so long as such Borrower is the surviving corporation of
such merger) or any other Domestic Wholly-Owned Subsidiary
which is a Restricted Subsidiary (other than the Receivables
Subsidiary) of the Borrowers;
(x) the Borrowers and their respective Restricted
Subsidiaries (other than the Receivables Subsidiary) shall
be permitted to merge with another Person (so long as such
Borrower or Restricted Subsidiary is the surviving corpora-
tion), so long as such merger is used to effect a Permitted
Acquisition in compliance with Section 9.02(vii); and
(xi) the Borrowers may sell or otherwise dispose of
Excluded Assets.
To the extent the Required Banks waive the provisions of this
Section 9.02 with respect to the sale of any Collateral, or any
Collateral is sold as permitted by this Section 9.02, such
Collateral (unless sold to INTERCO or a Subsidiary of INTERCO)
shall be sold free and clear of the Liens created by the Security
Documents, and the Administrative Agent and Collateral Agent
shall be authorized to take any actions deemed appropriate in
order to effect the foregoing.
9.03 Dividends. INTERCO shall not, and shall not
permit any of its Restricted Subsidiaries to, authorize, declare
or pay any Dividends with respect to INTERCO or any of its
Restricted Subsidiaries, except that:
(i) any Restricted Subsidiary of any Borrower may pay
Dividends to such Borrower or any Wholly-Owned Subsidiary
which is a Restricted Subsidiary of the Borrowers;
(ii) so long as no Default or Event of Default exists
or would result therefrom, INTERCO shall be permitted to pay
Dividends (including, without limitation, Dividends on
Qualified Preferred Stock) in an amount not to exceed (A)
the Available $10 Million Dividend Basket Amount on such
date (after giving effect to all prior and contemporaneous
reductions thereto, except as a result of such Dividend),
plus (B) the Available Net Income Amount on such date (after
giving effect to all prior and contemporaneous adjustments
thereto, except as a result of such Dividend) plus (C) $0
or, if the Dividend Threshold Date has theretofore occurred,
the then Available Dividend Unrestricted Proceeds Amount
(after giving effect to all prior and contemporaneous
adjustments thereto, except as a result of such Dividend),
minus (D) all Guaranty Payments made by INTERCO pursuant to
Section 9.11(b)(ii)(y)(A) and (B); and
(iii) so long as no Default or Event of Default exists
or would result therefrom, INTERCO may pay regularly
accruing cash Dividends on Disqualified Preferred Stock in
accordance with the terms of the certificate of designation
therefor.
9.04 Indebtedness. INTERCO will not, and will not
permit any of its Restricted Subsidiaries to, contract, create,
incur, assume or suffer to exist any Indebtedness, except:
(i) Indebtedness incurred pursuant to this Agreement
and the other Credit Documents;
(ii) Permitted Subordinated Indebtedness not to exceed
(x) in aggregate principal amount $150,000,000, minus the
aggregate liquidation preference or amount of all
Disqualified Preferred Stock issued on or prior to the date
of the incurrence of such Permitted Subordinated
Indebtedness pursuant to Section 9.13(b)(i), provided that
to the extent Permitted Subordinated Indebtedness is
incurred under this clause (ii)(x) and (1) any portion of
such Permitted Subordinated Indebtedness is being issued as
consideration in connection with a Permitted Acquisition or
(2) 100% of the Net Cash Proceeds thereof are not
immediately used to repay Term Loans pursuant to Section
4.02(g), such incurrence shall only be permitted if the
Administrative Agent has received a certificate from, and
signed by an Authorized Representative of, INTERCO showing
that immediately after the incurrence of such Permitted
Subordinated Indebtedness, the Senior Debt Leverage Ratio,
calculated on a Pro Forma Basis after giving effect to the
incurrence of such Indebtedness, shall not exceed 3.5:1.0,
plus (y) an amount of Permitted Subordinated Indebtedness
incurred and simultaneously used to repay, refinance or
otherwise replace the Receivables Facility in accordance
with the terms hereof, in each case shall be permitted on
terms and conditions set forth in the definition of
Permitted Subordinated Indebtedness and on other terms and
conditions reasonably satisfactory to the Administrative
Agent and the Required Banks (provided that such other terms
and conditions shall be deemed satisfactory to the Required
Banks unless objected to by the Required Banks in writing on
or prior to the date which is twenty Business Days after the
documentation therefor is delivered to the Banks);
(iii) Permitted Unsecured Indebtedness not to exceed in
aggregate principal amount $25,000,000 minus the aggregate
liquidation preference or amount of all Disqualified
Preferred Stock issued on or prior to the date of the
incurrence of such Permitted Unsecured Indebtedness pursuant
to Section 9.13(b)(ii), shall be permitted on terms and
conditions set forth in the definition of Permitted
Unsecured Indebtedness and on other terms and conditions
reasonably satisfactory to the Administrative Agent;
provided that to the extent Permitted Unsecured Indebtedness
is incurred under this clause (iii) and (1) any portion of
such Permitted Unsecured Indebtedness is being issued as
consideration in connection with a Permitted Acquisition or
(2) 100% of the Net Cash Proceeds thereof are not
immediately used to repay Term Loans pursuant to Section
4.02(g), such incurrence shall only be permitted if the
Administrative Agent has received a certificate from, and
signed by an Authorized Representative of, INTERCO showing
that immediately after the incurrence of such Permitted
Unsecured Indebtedness, the Senior Debt Leverage Ratio, cal-
culated on a Pro Forma Basis after giving effect to the
incurrence of such Indebtedness, shall not exceed 3.5:1.0.
(iv) Existing Indebtedness shall be permitted to the
extent the same is listed on Schedule VII, but no refinanc-
ings or renewals thereof, except as expressly permitted on
such Schedule VII;
(v) accrued expenses and current trade accounts pay-
able incurred in the ordinary course of business;
(vi) Indebtedness under Interest Rate Protection
Agreements entered into in compliance with Section 8.12;
(vii) Indebtedness of the Borrowers and their Restricted
Subsidiaries evidenced by Capitalized Lease Obligations to
the extent permitted pursuant to Section 9.01(vii), and
Indebtedness secured by Liens permitted under Section
9.01(viii) and Permitted Acquired Debt; provided that in no
event shall the aggregate principal amount of Capitalized
Lease Obligations and Indebtedness permitted by this clause
(vii) exceed $20,000,000;
(viii) Indebtedness under Currency Hedging Agreements
entered into in compliance with Section 9.05(ix);
(ix) Contingent Obligations (a) of the Borrowers or any
Restricted Subsidiary as a guarantor of the lessee under any
lease pursuant to which the Borrowers or a Restricted
Subsidiary is the lessee so long as such lease is otherwise
permitted hereunder, (b) of INTERCO constituting guarantees
by INTERCO of trade payables owing in the ordinary course of
business by its Restricted Subsidiaries and (c) of INTERCO
and/or Thomasville consisting of guarantees (with the
maximum amount guaranteed at any time pursuant to this
clause (c) not to exceed $7,500,000 in the aggregate) of
actual or potential claims under Environmental Laws as
referenced in Section 9.01(xvi)(y);
(x) Contingent Obligations of INTERCO pursuant to (x)
the Surviving Guaranties; provided that the making of any
payments thereunder, and any renewals or extensions of such
Surviving Guaranties, shall be subject to restrictions set
forth in Section 9.11(b) and (y) the Tax Sharing Agreements;
(xi) Indebtedness (a) consisting of Attributed
Receivables Facility Indebtedness of the Receivables
Subsidiary so long as the Net Cash Proceeds of Attributed
Receivables Facility Indebtedness in excess of $240,000,000
shall be applied to repay Term Loans in accordance with
Section 4.02(g) and (b) consisting of the Contingent
Obligations of INTERCO in respect of certain of its
Restricted Subsidiaries (other than the Receivables
Subsidiary) with respect to certain limited obligations
under the Receivables Facility as set forth in the
Receivables Documents;
(xii) Indebtedness among the Borrowers and their
Restricted Subsidiaries to the extent permitted pursuant to
Section 9.05(v); and
(xiii) unless and until replaced by a Letter of Credit
issued hereunder, the Existing Fluvanna Letter of Credit may
remain outstanding.
In furtherance of the foregoing and in no way in
limitation thereof, INTERCO shall not permit any Unrestricted
Subsidiary to incur any Indebtedness having any element of
recourse to INTERCO or its Restricted Subsidiaries or to any of
their assets or property.
9.05 Investments; etc. The Borrowers will not, and
will not permit any of their respective Restricted Subsidiaries
to, directly or indirectly, lend money or credit or make advances
to any Person, or purchase or acquire any stock, obligations or
securities of, or any other interest in, or make any capital
contribution to, any other Person, or purchase or own a futures
contract or otherwise become liable for the purchase or sale of
currency or other commodities at a future date in the nature of a
futures contract, or hold any cash or Cash Equivalents (any of
the foregoing, an "Investment"), except that the following shall
be permitted:
(i) the Borrowers and their Restricted Subsidiaries
may acquire and hold accounts receivables owing to any of
them, if created or acquired in the ordinary course of bus-
iness and payable or dischargeable in accordance with cus-
tomary terms;
(ii) the Borrowers and their Restricted Subsidiaries
may acquire and hold cash and Cash Equivalents (including
cash and Cash Equivalents held by INTERCO on behalf of its
Restricted Subsidiaries pursuant to the Cash Management
System); provided that during any time that Revolving Loans
of Non-Defaulting Banks or Swingline Loans are outstanding,
the aggregate amount of cash and Cash Equivalents permitted
to be held by the Borrowers and their Restricted
Subsidiaries (including cash and Cash Equivalents held by
INTERCO on behalf of its Restricted Subsidiaries pursuant to
the Cash Management System) shall not exceed $20,000,000 for
any period of five consecutive days;
(iii) INTERCO and its Restricted Subsidiaries may make
loans and advances in the ordinary course of business to
their respective employees so long as the aggregate
principal amount thereof at any time outstanding (determined
without regard to any write-downs or write-offs of such
loans and advances) shall not exceed $1,000,000;
(iv) the Borrowers may enter into Interest Rate Protec-
tion Agreements to the extent permitted in Section 9.04(vi);
(v) any Credit Party or the Receivables Subsidiary
may make intercompany loans and advances to any other Credit
Party;
(vi) the Borrowers may (x) establish Subsidiaries in
compliance with Section 9.12 and (y) make Investments
therein as otherwise provided in this Section 9.05;
(vii) so long as no Default or Event of Default exists,
or would result therefrom, the Borrowers and their
Restricted Subsidiaries may make Investments at any time in
an amount not to exceed the sum of (A) the Available $10
Million Acquisition/Investment Basket Amount at such time
(after giving effect to all prior and contemporaneous
reductions thereto, except as a result of such Investment),
plus (B) the then Available Unrestricted Proceeds Amount at
such time (after giving effect to all prior and
contemporaneous adjustments thereto, except as a result of
such Investment), plus (C) the Available Net Income Amount
(after giving effect to all prior and contemporaneous
adjustments thereto, except as a result of such Investment),
plus (D) the Available Returned Investment Amount (after
giving effect to all prior and contemporaneous adjustments
thereto, except as a result of such Investment); provided
that in no event shall the aggregate amount of Investments
made pursuant to this clause (vii) after the Restatement
Effective Date, when added to the aggregate amount paid in
connection with Permitted Acquisitions effected after the
Restatement Effective Date (calculated in accordance with
the first parenthetical contained in Section 9.02(vii)(B)),
exceed $75,000,000 plus the Returned Investment Amount as
calculated on the date any determination is being made
pursuant to this clause (vii);
(viii) the Borrowers and their Restricted Subsidiaries
may retain cash consideration plus purchase money notes
derived from asset sales permitted pursuant to Section
9.02(ii);
(ix) the Borrowers may enter into and perform their
obligations under Currency Hedging Agreements entered into
in the ordinary course of business and consistent with past
practices so long as (i) any such Currency Hedging Agreement
is related to income derived from foreign operations of the
Borrowers or any Restricted Subsidiary (or any Foreign Sales
Corporation which is a Restricted Subsidiary) or otherwise
related to purchases permitted hereunder from foreign
suppliers and (ii) such Currency Hedging Agreements do not
exceed a notional amount equal to $15,000,000 in the
aggregate at any one time;
(x) the Borrowers and their Restricted Subsidiaries
may acquire and own investments (including notes or other
debt obligations or securities) received in connection with
the bankruptcy or reorganization of their suppliers and
customers and in settlement of delinquent obligations of, or
disputes with, their customers or suppliers in the ordinary
course of business;
(xi) existing Investments by the Borrowers and their
Restricted Subsidiaries shall be permitted to the extent
listed on Schedule X;
(xii) the Restricted Subsidiaries of INTERCO may
contribute accounts receivable to the Receivables Subsidiary
in accordance with the provisions of the Receivables
Documents;
(xiii) INTERCO shall be permitted to make capital
contributions to Foreign Sales Corporations in an amount not
to exceed $100,000 in the aggregate; and
(xiv) Permitted Acquisitions shall be permitted in
compliance with Sections 8.14 and 9.02(vii).
9.06 Transactions with Affiliates and Unrestricted
Subsidiaries. The Borrowers will not, and will not permit any of
their respective Restricted Subsidiaries to, enter into any
transaction or series of related transactions with any Affiliate
of INTERCO or any of its Subsidiaries or any of its Unrestricted
Subsidiaries, other than in the ordinary course of business and
on terms and conditions substantially as favorable to the
Borrowers or such Restricted Subsidiary as would reasonably be
obtained by the Borrowers or such Restricted Subsidiary at that
time in a comparable arm's-length transaction with a Person other
than an Affiliate, except that:
(i) Dividends may be paid to the extent provided in
Section 9.03;
(ii) Investments may be made to the extent permitted by
Section 9.05;
(iii) the transactions entered into between the
Borrowers and their Subsidiaries shall be permitted to the
extent expressly permitted by Section 9.02;
(iv) customary fees may be paid to non-officer
directors of the Borrowers and their Restricted Subsi-
diaries;
(v) INTERCO and its Restricted Subsidiaries may enter
into employment arrangements with respect to the procurement
of services with their respective officers and employees in
the ordinary course of business;
(vi) the Borrowers and their respective Restricted
Subsidiaries may make (x) capital contributions to any of
their respective Restricted Subsidiaries which is a Credit
Party or (y) capital contributions of accounts receivable to
the Receivables Subsidiary in accordance with the
Receivables Documents;
(vii) so long as no Default or Event of Default exists,
or would result therefrom, INTERCO shall be permitted to pay
management fees to Apollo Advisors, L.P. pursuant to the
Apollo Management Agreement, provided, that, such fees shall
not exceed $650,000 in any Fiscal Year and no amendment
adverse to the interests of the Banks shall be made to the
Apollo Management Agreement without the consent of the
Administrative Agent;
(viii) existing transactions between INTERCO and its
Subsidiaries and their Affiliates shall be permitted to the
extent listed on Schedule XI;
(ix) INTERCO may sell or issue INTERCO Common Stock and
Qualified Preferred Stock to its Affiliates (other than its
Subsidiaries); and
(x) INTERCO may modify the Tax Sharing Agreement as
provided in Section 9.11(c).
Except as specifically provided above, no management or
similar fees shall be paid or payable by INTERCO or any of its
Restricted Subsidiaries to any Affiliate (other than INTERCO).
Notwithstanding anything contained in the foregoing to
the contrary, any transactions between and among INTERCO and/or
Restricted Subsidiaries on the one hand and any of their
respective Affiliates (excluding INTERCO and its Restricted
Subsidiaries) on the other hand, shall be arm's length
transactions and on terms and conditions at least as favorable to
INTERCO and/or such Restricted Subsidiaries as the terms and
conditions which would apply to a similar transaction on an arm's
length basis with a Person that is not an Affiliate; provided,
that, any transaction (other than as described in clauses (i),
(ii), (iii) and (vi) above) between and among the aforementioned
parties with a value in excess of $1,000,000 shall only be
permitted if a majority of the disinterested directors of INTERCO
approve the transaction.
9.07 Capital Expenditures. (a) The Borrowers will
not, and will not permit any of their respective Restricted
Subsidiaries to, make any Capital Expenditures, except that
during any Fiscal Year set forth below (taken as one accounting
period) the Borrowers and their Restricted Subsidiaries may make
Capital Expenditures so long as the aggregate amount of such
Capital Expenditures made pursuant to this clause (a) does not
exceed $50,000,000 in any Fiscal Year (beginning with the Fiscal
Year ended in 1996).
(b) Notwithstanding anything to the contrary contained
above, to the extent that $50,000,000 exceeds the aggregate
amount of Capital Expenditures made by the Borrowers, and their
Restricted Subsidiaries pursuant to Section 9.07(a) during any
Fiscal Year (beginning with the Fiscal Year ended in 1996), such
excess may be carried forward and used by the Borrowers and their
respective Restricted Subsidiaries to make additional Capital
Expenditures during subsequent Fiscal Years; provided that the
maximum amount carried forward pursuant to this clause (b) into
(x) Fiscal Year 1997 shall be $10 million and (y) any Fiscal Year
thereafter shall be $20 million, with any amounts otherwise
permitted to be carried forward to lapse and terminate at such
time, if any, as they are not permitted to be carried forward
into a subsequent Fiscal Year by virtue of this proviso.
(c) In addition to the Capital Expenditures permitted
pursuant to preceding clauses (a) and (b), the Borrowers and
their respective Restricted Subsidiaries shall be permitted to
make additional Capital Expenditures to the extent consisting of
the reinvestment of proceeds of Recovery Events not required to
be applied to prepay Loans pursuant to the provisions of Section
4.02(j).
9.08 Consolidated Net Interest Coverage Ratio. The
Borrowers will not permit the Consolidated Net Interest Coverage
Ratio for any period of four consecutive fiscal quarters (or, if
shorter, the period beginning on January 1, 1996 and ended on the
last day of a fiscal quarter ended after the Restatement
Effective Date), in each case taken as one accounting period,
ended on the last day of a fiscal quarter set forth below to be
less than the amount set forth opposite such period below:
Fiscal Quarter
Ended Closest to Ratio
---------------- -----
March 31, 1996 1.75:1.0
June 30, 1996 1.90:1.0
September 30, 1996 2.10:1.0
December 31, 1996 2.25:1.0
March 31, 1997 2.35:1.0
June 30, 1997 2.35:1.0
September 30, 1997 2.35:1.0
December 31, 1997 2.65:1.0
March 31, 1998 2.70:1.0
June 30, 1998 2.80:1.0
September 30, 1998 2.90:1.0
December 31, 1998 3.00:1.0
March 31, 1999 3.05:1.0
June 30, 1999 3.10:1.0
September 30, 1999 3.15:1.0
December 31, 1999 3.25:1.0
March 31, 2000 3.30:1.0
June 30, 2000 3.35:1.0
September 30, 2000 3.40:1.0
December 31, 2000 3.50:1.0
March 31, 2001 3.55:1.0
June 30, 2001 3.60:1.0
September 30, 2001 3.65:1.0
December 31, 2001 3.75:1.0
March 31, 2002 3.80:1.0
June 30, 2002 3.85:1.0
September 30, 2002 3.90:1.0
December 31, 2002
and the last day of
each fiscal quarter
thereafter 4.00:1.0.
9.09 Consolidated EBITDA; Cumulative Consolidated
EBITDA. (a) The Borrowers will not permit Consolidated EBITDA
for any period of four consecutive fiscal quarters (or, if
shorter, the period beginning on January 1, 1996 and ended on the
last day of a fiscal quarter ended after the Restatement
Effective Date), in each case taken as one accounting period,
ended on the last day of a fiscal quarter set forth below to be
less than the amount set forth opposite such period below:
Fiscal Quarter
Ended Closest to Amount
---------------- -------
March 31, 1996 $ 25,000,000
June 30, 1996 55,000,000
September 30, 1996 90,000,000
December 31, 1996 130,000,000
March 31, 1997 132,500,000
June 30, 1997 135,000,000
September 30, 1997 137,500,000
December 31, 1997 140,000,000
March 31, 1998 143,000,000
June 30, 1998 147,000,000
September 30, 1998 151,000,000
December 31, 1998 155,000,000
March 31, 1999 157,500,000
June 30, 1999 160,000,000
September 30, 1999 162,500,000
December 31, 1999 165,000,000
March 31, 2000 167,500,000
June 30, 2000 170,000,000
September 30, 2000 172,500,000
December 31, 2000 175,000,000
March 31, 2001 177,500,000
June 30, 2001 180,000,000
September 30, 2001 182,500,000
December 31, 2001 185,000,000
March 31, 2002 187,500,000
June 30, 2002 190,000,000
September 30, 2002 192,500,000
December 31, 2002 195,000,000
March 31, 2003 197,500,000
June 30, 2003 200,000,000
September 30, 2003 202,500,000
December 31, 2003 205,000,000
(b) In addition to the covenant contained in preceding
clause (a), the Borrowers will not permit Consolidated EBITDA for
any period beginning on January 1, 1996 and ended on the last day
of a Fiscal Year (beginning with Fiscal Year 1997) ended
thereafter, in each case taken as one accounting period (with
Consolidated EBITDA for any such period being herein called
"Cumulative Consolidated EBITDA") to be less than the amount set
forth opposite such Fiscal Year below:
Fiscal Year Ended Amount
----------------- ------
1997 $ 300,000,000
1998 475,000,000
1999 650,000,000
2000 875,000,000
2001 1,100,000,000
2002 1,325,000,000
2003 1,550,000,000
provided that, from and after the first date upon which the
Borrowers shall have used more than $50,000,000 of Net Cash
Proceeds from sales or issuances of equity of INTERCO (including
pursuant to any exercise of the INTERCO Warrants, any exercise of
any stock options and the issuance of any Preferred Stock) to
repay Term Loans after the Restatement Effective Date pursuant to
Sections 4.01, 4.02(e) and/or 4.02(f), and shall have furnished a
certificate to the Administrative Agent showing in reasonable
detail the amount of such applications pursuant to the respective
such Sections, then each of the amounts set forth in the table
appearing in this Section 9.09(b) shall be reduced (i) by
$15,000,000 if the principal amount of Term Loans so repaid with
such Net Cash Proceeds from equity issuances is greater than
$50,000,000 but less than or equal to $75,000,000 or (ii) by
$20,000,000 if the aggregate principal amount of Term Loans so
repaid with such Net Cash Proceeds from equity issuances is
greater than $75,000,000.
9.10 Maximum Leverage Ratio. The Borrowers will not
permit the Leverage Ratio at any time on or after December 31,
1996 to be greater than the ratio set forth opposite the fiscal
quarter most recently ended as set forth below:
Fiscal Quarter
Ended Closest to Ratio
---------------- -----
December 31, 1996 5.00:1.0
March 31, 1997 5.00:1.0
June 30, 1997 4.75:1.0
September 30, 1997 4.75:1.0
December 31, 1997 4.50:1.0
March 31, 1998 4.50:1.0
June 30, 1998 4.25:1.0
September 30, 1998 4.25:1.0
December 31, 1998 4.00:1.0
March 31, 1999 4.00:1.0
June 30, 1999 4.00:1.0
September 30, 1999 4.00:1.0
December 31, 1999 3.75:1.0
March 31, 2000 3.75:1.0
June 30, 2000 3.50:1.0
September 30, 2000 3.25:1.0
December 31, 2000 3.25:1.0
March 31, 2001 3.25:1.0
June 30, 2001 3.25:1.0
September 30, 2001 3.25:1.0
December 31, 2001
and the last day of
each fiscal quarter
thereafter 3.00:1.0.
9.11 Limitation on Modifications of and Payments on
Indebtedness and Qualified Preferred Stock; Modifications of
Certificate of Incorporation, By-Laws and Certain Other
Agreements; Surviving Guaranty Payments, etc. (a) The Borrowers
will not, and will not permit any of their respective Restricted
Subsidiaries to, (i) make (or give any notice in respect of) any
voluntary or optional payment or prepayment on or redemption,
repurchase or acquisition for value of any of the Existing
Indebtedness, or after the incurrence thereof, any Permitted
Unsecured Indebtedness, Permitted Subordinated Indebtedness or
Disqualified Preferred Stock (any such payment, prepayment,
redemption or acquisition, a "Restricted Junior Payment"), if at
such time (x) a Default or Event of Default then exists or arises
therefrom and (y) such Restricted Junior Payment shall exceed an
amount equal to the sum of (A) the then Available Unrestricted
Proceeds Amount (after giving effect to all prior or
contemporaneous adjustments thereto, except as a result of such
Restricted Junior Payment) and (B) the then Available Net Income
Amount (after giving effect to all prior and contemporaneous
adjustments thereto, except as a result of such Restricted Junior
Payment), (ii) amend or modify, or permit the amendment or
modification of, any provision of the Existing Indebtedness or
the Receivables Documents or, after the incurrence or issuance
thereof, any Permitted Unsecured Indebtedness, Permitted
Subordinated Indebtedness, Qualified Preferred Stock or Dis-
qualified Preferred Stock or of any agreement (including, without
limitation, any purchase agreement, indenture, loan agreement,
security agreement or certificate of designation) relating
thereto, other than any amendments or modifications to the
Existing Indebtedness, the Receivables Documents, any Permitted
Unsecured Indebtedness, any Permitted Subordinated Indebtedness,
any Qualified Preferred Stock and any Disqualified Preferred
Stock which (A) do not make any term or condition thereof more
restrictive than the previously existing terms and conditions
with respect thereto, (B) do not in any way materially adversely
affect the interests of the Banks and (C) do not increase the
interest or dividend rates applicable thereunder, reduce the
maturity date thereunder or change any pay-in-kind mechanics or
requirements or any subordination provision thereof or (iii)
amend or modify its Certificate of Incorporation (including,
without limitation, by the filing or modification of any certifi-
cate of designation, other than any certificate of designation
relating to Qualified Preferred Stock or Disqualified Preferred
Stock) or By-Laws, or any agreement entered into by it, with
respect to its capital stock (including any Shareholders'
Agreement), or enter into any new agreement with respect to its
capital stock if the foregoing would in any way materially and
adversely affect the Banks, provided that (x) INTERCO may amend
its Certificate of Incorporation to reflect a change in corporate
name if INTERCO shall have complied with the requirements of
Section 8.04 hereof and (y) INTERCO or any of the other Borrowers
may amend its respective Certificate of Incorporation to reflect
an increase in the number of authorized shares of capital stock.
(b) INTERCO will not (i) amend, extend, renew or
modify, or permit the amendment, extension, renewal or
modification of, any provision of the Surviving Guaranties (or
any lease obligation guarantied thereby) or any agreement
relating thereto, other than any renewal or extension of a lease
obligation guarantied by any Surviving Guaranty pursuant to the
renewal and/or extension provisions contained therein as in
effect on the Effective Date which (a) creates a continuing
guaranty obligation with respect to such existing lease (without
any amendments thereto which would increase the lessee's
obligations thereunder), (b) is exercised (x) not more than 30
days prior to the last day on which such extension or renewal may
be exercised in accordance with the terms of the lease relating
thereto and (y) at a time when no Default or Event of Default
then exists or arises therefrom and (c) creates future fixed
payment obligations with respect thereto which, when combined
with all future fixed payment obligations under renewals and/or
extensions made in compliance with this Section 9.11(b)(i), would
not exceed $10,000,000 or (ii) make any payment whatsoever,
whether voluntary, mandatory or otherwise, in respect of the
Surviving Guaranties (any such payment, a "Guaranty Payment") if
at such time (x) a Default or Event of Default then exists or
arises therefrom or (y) such payment shall exceed an amount equal
to the sum of (A) $5,000,000 less the amount of all Guaranty
Payments theretofore made after the Restatement Effective Date
pursuant to this clause (A), plus (B) at any time, the aggregate
amount of Dividends which could be made pursuant to (1) Section
9.03(ii)(A), (2) Section 9.03(ii)(B) and (3) Section 9.03(ii)(C),
in each case at such time (without including the amount of such
Guaranty Payment contemplated to be included in the calculation
pursuant to Section 9.03(ii)(D) at such time), plus (C) the
amount of any such Guaranty Payment made with the cash proceeds
of issuances of equity by INTERCO permitted to be so used for
such purposes pursuant to clause (iv) of the first parenthetical
of Section 4.02(e).
(c) The Borrowers will not, and will not permit any of
their respective Restricted Subsidiaries to, amend, modify or
change any provision of any Tax Sharing Agreement other than any
amendment, modification or change deemed immaterial by the
Administrative Agent or as otherwise consented to by the Required
Banks, except only that without such consent INTERCO may amend
the provisions of Section 3(a) of the Tax Sharing Agreement dated
as of November 17, 1994 among INTERCO, Converse and Converse's
domestic Subsidiaries that are signatories thereto with respect
to the allocation of the benefit described in such Section 3(a)
as INTERCO's Board of Directors may deem appropriate.
9.12 Limitation on Creation or Acquisition of Sub-
sidiaries and Restricted Subsidiaries. The Borrowers will not,
and will not permit any of their respective Restricted
Subsidiaries to, establish, create or acquire after the Effective
Date any Subsidiary, unless (x) if such Subsidiary is an
Unrestricted Subsidiary (other than a Foreign Sales Corporation),
(i) it is established, created or acquired by INTERCO or another
Unrestricted Subsidiary, (ii) if owned by INTERCO, 100% of the
capital stock of such new Unrestricted Subsidiary owned by
INTERCO shall be pledged pursuant to the Pledge Agreement and the
certificates representing such stock, together with stock powers
duly executed in blank, shall be delivered to the Collateral
Agent and (iii) such Unrestricted Subsidiary shall, at the
request of the Administrative Agent, become a party to a Tax
Sharing Agreement, (y) if such Subsidiary is a Restricted Subsi-
diary (other than a Foreign Sales Corporation), (i) at least 10
Business Days' prior written notice thereof is given to the
Administrative Agent and the Banks, (ii) 100% of the capital
stock of such new Subsidiary is pledged pursuant to the Pledge
Agreement and the certificates representing such stock, together
with stock powers duly executed in blank, are delivered to the
Collateral Agent and (iii) such new Restricted Subsidiary exe-
cutes a counterpart of the Subsidiary Guaranty, the Security
Agreement and the Pledge Agreement or (z) if such Subsidiary is a
Foreign Sales Corporation, any Investment therein is made in
accordance with Section 9.05(xiii). In addition, each new
Restricted Subsidiary shall execute and deliver, or cause to be
executed and delivered, all other relevant documentation of the
type described in Section 5 as such new Restricted Subsidiary
would have had to deliver if such new Restricted Subsidiary were
a Restricted Subsidiary and/or a Subsidiary Guarantor on the
Restatement Effective Date.
9.13 Limitation on Issuance of Capital Stock. (a)
INTERCO shall not issue (i) any Preferred Stock (other than
Qualified Preferred Stock and Disqualified Preferred Stock issued
pursuant to clause (b) below, the proceeds of which are applied
as required pursuant to Section 4.02(e)) or (ii) any redeemable
common stock unless, in either case, all terms thereof are
satisfactory to the Required Banks in their sole discretion.
(b) INTERCO may issue Disqualified Preferred Stock not
to exceed in aggregate liquidation preference or amount (i)
$150,000,000 minus the aggregate principal amount of all
Permitted Subordinated Indebtedness issued pursuant to Section
9.04(ii)(x), plus (ii) $25,000,000 minus the aggregate principal
amount of all Permitted Unsecured Indebtedness issued pursuant to
Section 9.04(iii), plus (iii) any amount of Disqualified
Preferred Stock the proceeds of which are used to repay,
refinance or otherwise replace the Receivables Facility in
accordance with the terms hereof, on terms and conditions set
forth in the definition of Disqualified Preferred Stock and on
other terms and conditions reasonably satisfactory to the
Administrative Agent; provided that to the extent Disqualified
Preferred Stock is issued pursuant to preceding clauses (i)
and/or (ii) and (1) any portion of such Disqualified Preferred
Stock is being issued as consideration in connection with a
Permitted Acquisition or (2) 100% of the Net Cash Proceeds
therefrom are not immediately used to repay Term Loans pursuant
to Section 4.02(e), such issuance shall only be permitted if the
Administrative Agent has received a certificate from, and signed
by an Authorized Representative of, INTERCO showing that
immediately after the issuance of such Disqualified Preferred
Stock, the Senior Debt Leverage Ratio, calculated on a Pro Forma
Basis after giving effect to such issuance, shall not exceed
3.5:1.0. Notwithstanding anything to the contrary contained
above, all Disqualified Preferred Stock issued pursuant to
Section 9.13(b) shall be issued only where 100% of the
consideration received for the issuance of such Disqualified
Preferred Stock is cash, except that Disqualified Preferred Stock
may be issued in accordance with Section 9.13(b)(i) and (ii)
directly as consideration in connection with Permitted
Acquisitions; provided that to the extent Disqualified Preferred
Stock is issued pursuant to Section 9.13(b)(i) directly as
consideration in connection with a Permitted Acquisition, the
aggregate liquidation preference or amount of all Disqualified
Preferred Stock issued after the Restatement Effective Date
pursuant to said Section 9.13(b)(i) as consideration in
connection with Permitted Acquisitions, when added to the sum of
(x) the aggregate principal amount of all Permitted Subordinated
Indebtedness so issued after the Restatement Effective Date as
consideration in connection with Permitted Acquisitions pursuant
to Section 9.04(ii), (y) the aggregate principal amount of all
Permitted Subordinated Indebtedness issued or incurred after the
Restatement Effective Date but not issued as consideration in
connection with Permitted Acquisitions to the extent the Net Cash
Proceeds therefrom have not been required to be used to repay
Term Loans as a result of clause (w)(ii) of the parenthetical of
Section 4.02(g), and (z) the aggregate liquidation preference or
amount of all Disqualified Preferred Stock issued after the
Restatement Effective Date pursuant to Section 9.13(b)(i) but not
issued in consideration with Permitted Acquisitions, to the
extent the Net Cash Proceeds therefrom have not been required to
be used to repay Term Loans as a result of clause (v)(y) of the
first parenthetical of Section 4.02(e), shall not exceed
$50,000,000.
(c) No Restricted Subsidiary of INTERCO shall issue,
or permit any of their Restricted Subsidiaries to issue, any
capital stock (including by way of sales of treasury stock) or
any options or warrants to purchase, or securities convertible
into, capital stock, except (i) for transfers and replacements of
then outstanding shares of capital stock, (ii) for stock splits,
stock dividends and additional issuances which do not decrease
the percentage ownership of INTERCO or any of its Restricted
Subsidiaries in any class of the capital stock of such Restricted
Subsidiaries, (iii) to qualify directors to the extent required
by applicable law, and (iv) Restricted Subsidiaries formed after
the Effective Date pursuant to Section 9.12 may issue capital
stock to the Borrowers or the respective Restricted Subsidiary of
the Borrowers which is to own such stock in accordance with the
requirements of Section 9.12. All capital stock issued in
accordance with this Section 9.13(c) shall, to the extent
required by the Pledge Agreement, be delivered to the Collateral
Agent for pledge pursuant to the Pledge Agreement.
9.14 Business. The Borrowers will not, and will not
permit any of their Restricted Subsidiaries to, engage (directly
or indirectly) in any business other than substantially the same
lines of business in which they are engaged on the Restatement
Effective Date and reasonable extensions thereof. No Restricted
Subsidiary of INTERCO will, or will permit any of their
Restricted Subsidiaries to, create or own any Unrestricted
Subsidiaries. The Foreign Sales Corporation will not engage in
any business other than the sale of goods and/or services outside
of the United States and any business reasonably incidental to
the foregoing.
9.15 Limitation on Certain Restrictions on Sub-
sidiaries. (a) The Borrowers will not, and will not permit any
of their respective Restricted Subsidiaries to, directly or
indirectly, create or otherwise cause or suffer to exist or
become effective, except as set forth on Schedule XIII, any
encumbrance or restriction on the ability of any such Restricted
Subsidiary to (x) pay dividends or make any other distributions
on its capital stock or any other interest or participation in
its profits owned by INTERCO or any Restricted Subsidiary of
INTERCO, or pay any Indebtedness owed to INTERCO or a Restricted
Subsidiary of INTERCO, (y) make loans or advances to INTERCO or
any of INTERCO's Restricted Subsidiaries or (z) transfer any of
its properties or assets to INTERCO, except for such encumbrances
or restrictions existing under or by reason of (i) applicable
law, (ii) this Agreement and the other Credit Documents, (iii)
customary provisions restricting subletting or assignment of any
lease governing a leasehold interest of the Borrowers or a Re-
stricted Subsidiary of the Borrowers, (iv) customary provisions
restricting assignment of any licensing agreement entered into by
the Borrowers or any Restricted Subsidiary of the Borrowers in
the ordinary course of business and (v) restrictions on the
Receivables Subsidiary set forth in the Receivables Documents.
(b) INTERCO will not permit any of its Unrestricted
Subsidiaries to, directly or indirectly, create or otherwise
cause or suffer to exist or become effective any restriction
whatsoever on the operations of INTERCO and/or its Restricted
Subsidiaries.
9.16 Limitation on Receivables and Receivables
Facility. (a) The Receivables Subsidiary shall engage in no
business activities other than the purchase, acquisition, sale
and pledge of receivables (or interests therein) pursuant to the
Receivables Facility and borrowings thereunder and any business
activities reasonably incidental thereto, all in accordance with
the Receivables Facility, and shall have no assets or liabili-
ties, other than receivables purchased from each of the Borrowers
and their Restricted Subsidiaries, cash collections therefrom,
any investments of such cash collections and other assets and
liabilities reasonably incidental to the foregoing activities,
and shall in no event purchase any receivables from an
Unrestricted Subsidiary.
(b) INTERCO and its Restricted Subsidiaries shall not
cause, permit, or suffer to exist (including as a result of
actions taken by the Receivables Purchasers) (i) unless the
Receivables Facility has been terminated, refinanced or replaced
as otherwise permitted under the provisions of this Agreement,
the Receivables Subsidiary to cease selling receivables pursuant
to the Receivables Facility for a period in excess of five
consecutive Business Days (excluding any Business Day on which
(x) none of Broyhill, Lane, Thomasville or Action generate any
receivables or (y) no Swingline Loans and no Revolving Loans of
Non-Defaulting Banks are outstanding), (ii) the Receivables
Facility to be terminated on any date prior to the date which is
five years after the Restatement Effective Date except, in the
event the Receivables Facility is repaid, refinanced or otherwise
replaced in accordance with the terms hereof by Permitted
Subordinated Indebtedness and/or Disqualified Preferred Stock
and/or a replacement facility, (iii) an Event of Termination (as
defined in either Receivables Purchase Agreement) to have
occurred and be continuing and which shall not have been cured or
waived for a period in excess of five consecutive Business Days
or (iv) the sum of the Yield Reserve, the Loss Reserve, the
Service Fee Reserve and the Dilution Reserve (each as defined in
the Receivables Documents) to exceed 30% at any time.
SECTION 10. Events of Default. Upon the occurrence of
any of the following specified events (each an "Event of
Default"):
10.01 Payments. The Borrowers shall (i) default in
the payment when due of any principal of any Loan or any Note or
(ii) default, and such default shall continue unremedied for
three or more Business Days, in the payment when due of any
Unpaid Drawings or interest on any Loan or Note, or any Fees or
any other amounts owing hereunder or thereunder; or
10.02 Representations, etc. Any representation,
warranty or statement made by any Credit Party herein or in any
other Credit Document or in any certificate (including, without
limitation, the certificates delivered pursuant to Section 5.21
of the Original Credit Agreement) delivered pursuant hereto or
thereto shall prove to be untrue in any material respect on the
date as of which made or deemed made; or
10.03 Covenants. The Borrowers shall (i) default in
the due performance or observance by it of any term, covenant or
agreement contained in Section 8.01(g)(i), 8.08, 8.11, 8.15, 8.16
or Section 9 or (ii) default in the due performance or observance
by it of any other term, covenant or agreement contained in this
Agreement and such default shall continue unremedied for a period
of 30 days after written notice to the Borrowers by the
Administrative Agent or any Bank; or
10.04 Default Under Other Agreements. The Borrowers
or any of their respective Restricted Subsidiaries shall (i)
default in any payment of any Indebtedness (other than the
Obligations) beyond the period of grace, if any, provided in the
instrument or agreement under which such Indebtedness was created
or (ii) default in the observance or performance of any agreement
or condition relating to any Indebtedness (other than the
Obligations) or contained in any instrument or agreement evidenc-
ing, securing or relating thereto, or any other event shall occur
or condition exist, the effect of which default or other event or
condition is to cause, or to permit the holder or holders of such
Indebtedness (or a trustee or agent on behalf of such holder or
holders) to cause (determined without regard to whether any
notice is required), any such Indebtedness to become due prior to
its stated maturity, or (iii) any Indebtedness (other than the
Obligations) of the Borrowers or any of their respective
Restricted Subsidiaries shall be declared to be due and payable,
or required to be prepaid other than by a regularly scheduled
required prepayment, prior to the stated maturity thereof,
provided that (x) it shall not be a Default or Event of Default
under this Section 10.04 unless the aggregate principal amount of
all Indebtedness as described in preceding clauses (i) through
(iii), inclusive, is at least $5,000,000; or
10.05 Bankruptcy, etc. The Borrowers or any of their
respective Subsidiaries shall commence a voluntary case
concerning itself under Title 11 of the United States Code
entitled "Bankruptcy," as now or hereafter in effect, or any
successor thereto (the "Bankruptcy Code"); or an involuntary case
is commenced against the Borrowers or any of their respective
Subsidiaries and the petition is not controverted within 30 days,
or is not dismissed within 60 days, after commencement of the
case; or a custodian (as defined in the Bankruptcy Code) is
appointed for, or takes charge of, all or substantially all of
the property of the Borrowers or any of their respective Subsidi-
aries, or the Borrowers or any of their respective Subsidiaries
commences any other proceeding under any reorganization,
arrangement, adjustment of debt, relief of debtors, dissolution,
insolvency or liquidation or similar law of any jurisdiction
whether now or hereafter in effect relating to the Borrowers or
any of their respective Subsidiaries, or there is commenced
against the Borrowers or any of their respective Subsidiaries any
such proceeding which remains undismissed for a period of 60
days, or the Borrowers or any of their respective Subsidiaries is
adjudicated insolvent or bankrupt; or any order of relief or
other order approving any such case or proceeding is entered; or
the Borrowers or any of their respective Subsidiaries suffers any
appointment of any custodian or the like for it or any
substantial part of its property to continue undischarged or
unstayed for a period of 60 days; or the Borrowers or any of
their respective Subsidiaries makes a general assignment for the
benefit of creditors; or any corporate action is taken by the
Borrowers or any of their respective Subsidiaries for the purpose
of effecting any of the foregoing; or
10.06 ERISA. (a) Any Plan, Multiemployer Plan,
and/or Spunoff Plan shall fail to satisfy the minimum funding
standard required for any plan year or part thereof or a waiver
of such standard or extension of any amortization period is
sought or granted under Section 412 of the Code, any Plan,
Multiemployer Plan and/or Spunoff Plan shall have had or is
likely to have a trustee appointed to administer such Plan,
Multiemployer Plan and/or Spunoff Plan pursuant to Section 4042
of ERISA, any Plan, Multiemployer Plan and/or Spunoff Plan shall
have been or is reasonably expected to be terminated or to be the
subject of termination proceedings under Section 4042 of ERISA,
any Plan, Multiemployer Plan and/or Spunoff Plan shall have an
Unfunded Current Liability, a contribution required to be made to
a Plan, Multiemployer Plan, Spunoff Plan and/or Foreign Pension
Plan has not been timely made, the Borrowers or any their
respective Restricted Subsidiaries or any ERISA Affiliate has
incurred or is reasonably expected to incur a liability to or on
account of a Plan, Multiemployer Plan and/or Spunoff Plan under
Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201,
4204 or 4212 of ERISA or Section 401(a)(29), 4971, 4975 or 4980
of the Code, the Borrowers or any of their respective Restricted
Subsidiaries has incurred or is reasonably expected to incur
liabilities pursuant to one or more employee welfare benefit
plans (as defined in Section 3(1) of ERISA) which provide
benefits to retired employees or other former employees (other
than as required by Section 601 of ERISA) or employee pension
benefit plans (as defined in Section 3(2) of ERISA) or Foreign
Pension Plans, (b) there shall result from any such event or
events the imposition of a lien, the granting of a security
interest, or a liability or a material risk of incurring a
liability; (c) and in each case in clauses (a) and (b) above,
such lien, security interest or liability, individually, and/or
in the aggregate, in the opinion of the Required Banks, will have
a Material Adverse Effect; or
10.07 Security Documents. At any time after the
execution and delivery thereof, any of the Security Documents
shall cease to be in full force and effect, or shall cease in any
material respect to give the Collateral Agent for the benefit of
the Secured Creditors the Liens, rights, powers and privileges
purported to be created thereby (including, without limitation, a
perfected security interest in, and Lien on, all of the Collat-
eral), in favor of the Collateral Agent, superior to and prior to
the rights of all third Persons (except as permitted by Section
9.01), and subject to no other Liens (except as permitted by
Section 9.01), or any Credit Party shall default in the due per-
formance or observance of any term, covenant or agreement on its
part to be performed or observed pursuant to any of the Security
Documents and such default shall continue beyond any grace period
specifically applicable thereto pursuant to the terms of such
Security Document; or
10.08 Subsidiary Guaranty. The Subsidiary Guaranty or
any provision thereof shall cease to be in full force or effect
as to any Subsidiary Guarantor, or any Subsidiary Guarantor or
Person acting by or on behalf of such Subsidiary Guarantor shall
deny or disaffirm such Subsidiary Guarantor's obligations under
the Subsidiary Guaranty, or any Subsidiary Guarantor shall
default in the due performance or observance of any term,
covenant or agreement on its part to be performed or observed
pursuant to the Subsidiary Guaranty; or
10.09 Judgments. One or more judgments or decrees
shall be entered against the Borrowers or any of their respective
Restricted Subsidiaries involving in the aggregate for the Bor-
rowers and their respective Restricted Subsidiaries a liability
(not paid or fully covered by a reputable and solvent insurance
company) and such judgments and decrees either shall be final and
non-appealable or shall not be vacated, discharged or stayed or
bonded pending appeal for any period of 60 consecutive days, and
the aggregate amount of all such judgments exceeds $5,000,000; or
10.10 Change of Control. A Change of Control shall
occur; or
10.11 Tax Sharing Agreement. One or more parties to a
Tax Sharing Agreement (other than Borrowers or any of their
respective Restricted Subsidiaries) shall have defaulted in its
or their payment obligations (other than reimbursement
obligations in respect of payments made under the Surviving
Guaranties) in an aggregate amount equal to or greater than
$2,500,000 thereunder and such default or defaults shall remain
unremedied for a period in excess of ten consecutive Business
Days; or
10.12 Receivables Repurchases. The Borrowers and/or
their respective Restricted Subsidiaries shall have repurchased
accounts receivables (pursuant to indemnity provisions or
otherwise) from the Receivables Subsidiary and/or the Receivables
Purchasers in an aggregate amount exceeding $20,000,000 in any
Fiscal Year;
then, and in any such event, and at any time thereafter, if any
Event of Default shall then be continuing, the Administrative
Agent, upon the written request of the Required Banks, shall by
written notice to the Borrowers, take any or all of the following
actions, without prejudice to the rights of any Agent, any Bank
or the holder of any Note to enforce its claims against any
Credit Party (provided that, if an Event of Default specified in
Section 10.05 shall occur with respect to the Borrowers, the
result of which would occur upon the giving of written notice by
the Administrative Agent to the Borrowers as specified in clauses
(i) and (ii) below shall occur automatically without the giving
of any such notice): (i) declare the Total Commitment termin-
ated, whereupon all Commitments of each Bank shall forthwith
terminate immediately and any Commitment Commission and other
Fees shall forthwith become due and payable without any other
notice of any kind; (ii) declare the principal of and any accrued
interest in respect of all Loans and the Notes and all
Obligations owing hereunder and thereunder to be, whereupon the
same shall become, forthwith due and payable without presentment,
demand, protest or other notice of any kind, all of which are
hereby waived by each Credit Party; (iii) terminate any Letter of
Credit which may be terminated in accordance with its terms; (iv)
direct the Borrowers to pay (and the Borrowers agree that upon
receipt of such notice, or upon the occurrence of an Event of
Default specified in Section 10.05 with respect to the Borrowers,
they will pay) to the Collateral Agent at the Payment Office such
additional amount of cash, to be held as security by the Collat-
eral Agent, as is equal to the aggregate Stated Amount of all
Letters of Credit issued for the account of the Borrowers and all
Acceptances then outstanding; (v) enforce, as Collateral Agent,
all of the Liens and security interests created pursuant to the
Security Documents; and (vi) apply any cash collateral held for
the benefit of the Banks pursuant to Section 4.02 to repay
outstanding Obligations.
SECTION 11. Definitions and Accounting Terms.
11.01 Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings
to be equally applicable to both the singular and plural forms of
the terms defined):
"A Percentage" of any Bank at any time shall mean a
fraction (expressed as a percentage) the numerator of which is
the A Term Loan Commitment of such Bank at such time and the
denominator of which is the Total A Term Loan Commitment at such
time.
"A Term Loan" shall have the meaning provided in
Section 1.01(a).
"A Term Loan Commitment" shall mean, for each Bank, the
amount set forth opposite such Bank's name in Schedule I directly
below the column entitled "A Term Loan Commitment", as same may
be (x) reduced from time to time pursuant to Sections 3.03, 4.02
and/or 10 or (y) adjusted from time to time as a result of
assignments to or from such Bank pursuant to Sections 1.13 and/or
13.04(b).
"A Term Loan Maturity Date" shall mean December 29,
2001.
"A Term Loan Scheduled Repayment" shall have the
meaning provided in Section 4.02(b).
"A Term Note" shall have the meaning provided in Sec-
tion 1.05(a).
"Acceptance" shall have the meaning provided in Section
2.01(a).
"Acceptance Facing Fee" shall having the meaning
provided in Section 3.01(c)(y).
"Acceptance Fee" shall have the meaning provided in
Section 3.01(b).
"Acquisition" shall have the meaning provided in
Section 5.16.
"Acquisition Documents" shall have the meaning provided
in Section 5.16.
"Action" shall mean Action Industries, Inc., a Virginia
corporation.
"Additional Collateral" shall mean all property
(whether real or personal) in which security interests are
granted (or have been purported to be granted) (and continue to
be in effect at the time of determination) pursuant to Section
8.11.
"Additional Mortgage" shall have the meaning provided
in Section 8.11(a).
"Additional Mortgaged Property" shall have the meaning
provided in Section 8.11(a).
"Additional Security Documents" shall mean all
mortgages, pledge agreements, security agreements and other
security documents entered into pursuant to Section 8.11 with
respect to Additional Collateral.
"Adjusted Certificate of Deposit Rate" shall mean, on
any day, the sum (rounded to the nearest 1/100 of 1%) of (1) the
rate obtained by dividing (x) the most recent weekly average
dealer offering rate for negotiable certificates of deposit with
a three-month maturity in the secondary market as published in
the most recent Federal Reserve System publication entitled
"Select Interest Rates," published weekly on Form H.15 as of the
date hereof, or if such publication or a substitute containing
the foregoing rate information shall not be published by the
Federal Reserve System for any week, the weekly average offering
rate determined by the Administrative Agent on the basis of
quotations for such certificates received by it from three
certificate of deposit dealers in New York of recognized standing
or, if such quotations are unavailable, then on the basis of
other sources reasonably selected by the Administrative Agent, by
(y) a percentage equal to 100% minus the stated maximum rate of
all reserve requirements as specified in Regulation D applicable
on such day to a three-month certificate of deposit of a member
bank of the Federal Reserve System in excess of $100,000 (in-
cluding, without limitation, any marginal, emergency, sup-
plemental, special or other reserves), plus (2) the then daily
net annual assessment rate as estimated by the Administrative
Agent for determining the current annual assessment payable by
the Administrative Agent to the Federal Deposit Insurance
Corporation for insuring three-month certificates of deposit.
"Adjusted Consolidated Working Capital" at any time
shall mean Consolidated Current Assets (but excluding therefrom
all cash and Cash Equivalents) less Consolidated Current
Liabilities.
"Adjusted Percentage" shall mean (x) at a time when no
Bank Default exists, for each Bank, such Bank's Percentage and
(y) at a time when a Bank Default exists (i) for each Bank that
is a Defaulting Bank, zero and (ii) for each Bank that is a Non-
Defaulting Bank, the percentage determined by dividing such
Bank's Revolving Loan Commitment at such time by the Adjusted
Total Revolving Loan Commitment at such time, it being understood
that all references herein to Revolving Loan Commitments and the
Adjusted Total Revolving Loan Commitment at a time when the Total
Revolving Loan Commitment or Adjusted Total Revolving Loan
Commitment, as the case may be, has been terminated shall be
references to the Revolving Loan Commitments or Adjusted Total
Revolving Loan Commitment, as the case may be, in effect
immediately prior to such termination, provided that (A) no
Bank's Adjusted Percentage shall change upon the occurrence of a
Bank Default from that in effect immediately prior to such Bank
Default, to the extent such change after giving effect to such
Bank Default, and any repayment of Revolving Loans and Swingline
Loans at such time pursuant to Section 4.02(a) or otherwise,
would cause the sum of (i) the aggregate outstanding principal
amount of Revolving Loans of all Non-Defaulting Banks plus (ii)
the aggregate outstanding principal amount of Swingline Loans
plus (iii) the Letter of Credit Outstandings, to exceed the
Adjusted Total Revolving Loan Commitment; (B) any changes to the
Adjusted Percentage that would have become effective upon the
occurrence of a Bank Default but that did not become effective as
a result of the preceding clause (A) shall become effective on
the first date after the occurrence of the relevant Bank Default
on which the sum of (i) the aggregate outstanding principal
amount of the Revolving Loans of all Non-Defaulting Banks plus
(ii) the aggregate outstanding principal amount of Swingline
Loans plus (iii) the Letter of Credit Outstandings is equal to or
less than the Adjusted Total Revolving Loan Commitment; and (C)
if (i) a Non-Defaulting Bank's Adjusted Percentage is changed
pursuant to the preceding clause (B) and (ii) any repayment of
such Bank's Revolving Loans, or of Unpaid Drawings with respect
to Letters of Credit or of Swingline Loans, that were made during
the period commencing after the date of the relevant Bank Default
and ending on the date of such change to its Adjusted Percentage
must be returned to the Borrowers as a preferential or similar
payment in any bankruptcy or similar proceeding of the Borrowers,
then the change to such Non-Defaulting Bank's Adjusted Percentage
effected pursuant to said clause (B) shall be reduced to that
positive change, if any, as would have been made to its Adjusted
Percentage if (x) such repayments had not been made and (y) the
maximum change to its Adjusted Percentage would have resulted in
the sum of the outstanding principal of Revolving Loans made by
such Bank plus such Bank's new Adjusted Percentage of the
outstanding principal amount of Swingline Loans and of Letter of
Credit Outstandings equalling such Bank's Revolving Loan
Commitment at such time.
"Adjusted Total Revolving Loan Commitment" shall mean
at any time the Total Revolving Loan Commitment less the
aggregate Revolving Loan Commitments of all Defaulting Banks.
"Administrative Agent" shall mean Bankers Trust
Company, in its capacity as Administrative Agent for the Banks
hereunder, and shall include any successor to the Administrative
Agent appointed pursuant to Section 12.09.
"Affiliate" shall mean, with respect to any Person, any
other Person (including, for purposes of Section 9.06 only, all
directors, officers and partners of such Person) directly or in-
directly controlling, controlled by, or under direct or indirect
common control with, such Person; provided, however, that for
purposes of Section 9.06, an Affiliate of INTERCO shall include
any Person that directly or indirectly owns more than 5% of any
class of the capital stock of INTERCO and any officer or director
of INTERCO or any such Person. A Person shall be deemed to
control another Person if such Person possesses, directly or
indirectly, the power to direct or cause the direction of the
management and policies of such other Person, whether through the
ownership of voting securities, by contract or otherwise.
"Agents" shall mean any of the Administrative Agent,
the Collateral Agent, the Documentation Agent and the Syndication
Agent.
"Agreement" shall mean this Credit Agreement, as
modified, supplemented, amended, restated, extended, renewed or
replaced from time to time.
"Alternate Receivables Purchase Agreement" shall mean
that Receivables Purchase Agreement, dated as of November 15,
1994, among the Receivables Subsidiary, as Seller, and Credit
Lyonnais, as Purchaser and Agent, as amended and restated as of
December 29, 1995, as same may be further amended, modified or
supplemented from time to time in compliance with Section 9.11,
or as replaced in compliance with the definition of Receivables
Facility.
"Apollo Group" shall mean Apollo Advisors, L.P., Lion
Advisors, L.P., Apollo Investment Fund, L.P. and Apollo Advisors
II, L.P., all Delaware limited partnerships.
"Apollo Management Agreement" shall mean the consulting
agreement, dated September 23, 1992, between Apollo Advisors,
L.P. and INTERCO.
"Applicable Margin" shall mean a percentage per annum
equal to (x) in the case of A Term Loans and Revolving Loans
which are maintained as (i) Base Rate Loans, 1.125% and (ii)
Eurodollar Loans, 2.125%, in each case of this clause (x) reduced
(but not below zero) by the then applicable Reduction Percentage,
if any, (y) in the case of B Term Loans which are maintained as
(i) Base Rate Loans, 1.625% and (ii) Eurodollar Loans, 2.625%,
(z) in the case of C Term Loans which are maintained as (i) Base
Rate Loans, 2.125% and (ii) Eurodollar Loans, 3.125%; provided
that, in the case of clause (x) above, after giving effect to any
reductions to the Applicable Margin due to the Reduction
Percentage, if a public offering of INTERCO Common Stock is
consummated within nine months after the Restatement Effective
Date and so long as prepayments of Term Loans have been made with
Net Cash Proceeds from sales or issuances of equity of INTERCO
(including, pursuant to any exercise of the INTERCO Warrants, any
exercise of stock options and the issuance of any INTERCO Common
Stock or Qualified Preferred Stock of INTERCO, but excluding Net
Cash Proceeds from any issuance of Disqualified Preferred Stock)
within nine months after the Restatement Effective Date pursuant
to Sections 4.01(a), 4.02(e) and/or 4.02(f) (but in each case,
only to the extent made with Net Cash Proceeds of equity
issuances as described above) in an aggregate amount of at least
$71 million, and so long as no Default or Event of Default
exists, the highest Applicable Margin for A Term Loans and
Revolving Loans shall thereafter be (i) in the case of Base Rate
Loans, 1.00% and (ii) in the case of Eurodollar Loans, 2.00% (it
being understood that the Reduction Percentage shall be deducted,
when appropriate, from the respective amounts contained in clause
(x) above and not the amounts contained in clauses (i) and (ii)
of this proviso).
"Assignment and Assumption Agreement" shall mean the
Assignment and Assumption Agreement substantially in the form of
Exhibit K (appropriately completed).
"Atlantic" shall mean Atlantic Asset Securitization
Corp., a Delaware corporation.
"Atlantic Receivables Purchase Agreement" shall mean
the Receivables Purchase Agreement, dated as of November 15,
1994, among the Receivables Subsidiary, Atlantic, as Purchaser,
and Credit Lyonnais, as Agent, as amended and restated as of
December 29, 1995 as same may be further amended, modified or
supplemented from time to time in compliance with Section 9.11,
or as replaced in compliance with the definition of Receivables
Facility.
"Attributed Receivables Facility Indebtedness" at any
time shall mean the sum of (i) the aggregate Invested Amount of
Receivables Interests (as defined in the Receivables Documents)
under the Receivables Purchase Agreements (it being the intent of
the parties that the amount of Attributed Receivables Facility
Indebtedness at any time outstanding approximate as closely as
possible the principal amount of indebtedness which would be
outstanding at such time under the Receivables Facility if same
were structured as a secured lending agreement rather than a
purchase agreement) plus (ii) the outstanding principal amount of
Indebtedness under the Subordinated Loan Agreement.
"Authorized Representative" shall mean, with respect to
(i) delivering Notices of Borrowing, Notices of Conversion,
Letter of Credit Requests and similar notices, any person or
persons that has or have been authorized by the respective boards
of the Borrowers to deliver such notices pursuant to this Agree-
ment and that has or have appropriate signature cards on file
with the Administrative Agent, BTCo and each Issuing Bank; (ii)
delivering financial information and officer's certificates
pursuant to this Agreement, any financial officer of INTERCO and
(iii) any other matter in connection with this Agreement or any
other Credit Document, any officer (or a person or persons so
designated by any two officers) of INTERCO.
"Available Debt Proceeds Amount" shall mean, on any
date of determination, an amount equal to zero, plus (i) all Net
Cash Proceeds received by the Borrowers after the Restatement
Effective Date from the issuance of Permitted Subordinated
Indebtedness pursuant to Section 9.04(ii)(x) and/or Permitted
Unsecured Indebtedness pursuant to Section 9.04(iii) retained by
any of the Borrowers on or prior to such date and not required to
be used to repay Term Loans on or prior to such date pursuant to
Section 4.02(g), minus (ii) any amounts used to effect Permitted
Acquisitions pursuant to clause (C) of the definition of
Available Permitted Acquisition Amount on or prior to such date;
provided that, at the time of the consummation of any Permitted
Acquisition, the Available Debt Proceeds Amount shall be
increased by the face amount of Permitted Acquired Debt (not
being issued in return for Net Cash Proceeds) being incurred
pursuant thereto and by the aggregate principal amount of
Permitted Subordinated Indebtedness and/or Permitted Unsecured
Indebtedness being directly issued as consideration in respect of
such Permitted Acquisition (so long as no Net Cash Proceeds are
received in connection therewith) (with the resultant increase in
the Available Permitted Acquisition Amount, as provided in clause
(C) of the definition thereof, for purposes of the consummation
of the respective Permitted Acquisition), which increase in the
Available Debt Proceeds Amount (and resultant increase in the
Available Permitted Acquisition Amount) shall be reduced to zero
immediately upon the consummation of the respective Permitted
Acquisition.
"Available Dividend Unrestricted Proceeds Amount" shall
mean, on any date of determination, the amount which would be
calculated as the Available Unrestricted Proceeds Amount in
accordance with the definition thereof contained in this
Agreement if the phrase "after the Restatement Effective Date" in
each place it appears in such definition were deleted and the
phrase "on or after the Dividend Threshold Date" were inserted in
lieu thereof; provided that, notwithstanding anything to the
contrary contained above or in the definition of Available
Unrestricted Proceeds Amount, if the Dividend Threshold Date
occurs on or before the Leverage Reduction Threshold Date, the
Net Cash Proceeds received by INTERCO on or after the Dividend
Threshold Date from issuances of equity by INTERCO (including
pursuant to any exercise of the INTERCO Warrants, any exercise of
stock options and the issuance of any INTERCO Common Stock or
Qualified Preferred Stock) which caused the Dividend Threshold
Date to occur shall be included in the Available Dividend
Unrestricted Proceeds Amount to the extent otherwise provided in
clause (i) of the definition of Available Unrestricted Proceeds
Amount as modified pursuant to this definition, except that any
portion of such Net Cash Proceeds which was required to be
applied on a pro forma basis to the reduction of Indebtedness to
establish the occurrence of the Dividend Threshold Date as
provided in the definition thereof contained herein shall not be
included for purposes of determining the Available Dividend
Unrestricted Proceeds Amount.
"Available Net Income Amount" shall mean on any date of
determination an amount equal to zero, plus or minus (i) an
amount equal to the Consolidated Cumulative Net Income Amount on
such date, minus (ii) any Dividend payments made by INTERCO
pursuant to Section 9.03(ii)(B) on or prior to such date, minus
(iii) any Investments made by the Borrowers or their Restricted
Subsidiaries pursuant to Section 9.05(vii)(C), minus (iv) any
Restricted Junior Payments made by INTERCO or its Restricted
Subsidiaries pursuant to Section 9.11(a)(i)(y)(B), minus (v) any
amount paid in connection with a Permitted Acquisition pursuant
to clause (D) of the definition of Available Permitted
Acquisition Amount, minus (vi) any Guaranty Payment made by
INTERCO pursuant to Section 9.11(b)(ii)(y)(B)(2) on or prior to
such date; provided that in any event, the amount of the
Available Net Income Amount shall never exceed the then Available
Retained Excess Cash Flow Amount (after giving effect to all
prior and contemporaneous reductions thereto).
"Available Permitted Acquisition Amount" shall mean, at
the time of determination thereof, an amount equal to the sum of
(A) the Available $10 Million Acquisition/Investment Basket
Amount on such date (after giving effect to all prior and
contemporaneous reductions thereto), plus (B) the Available Unre-
stricted Proceeds Amount on such date (after giving effect to all
prior and contemporaneous reductions thereto), plus (C) the
Available Debt Proceeds Amount on such date (after giving effect
to all prior and contemporaneous reductions thereto), plus (D)
the Available Net Income Amount on such date (after giving effect
to all prior and contemporaneous reductions thereto).
"Available Retained Excess Cash Flow Amount" shall be
on any date of determination an amount equal to zero, (i) plus or
minus an amount equal to the amount of Excess Cash Flow permitted
to be retained by the Borrowers after the Restatement Effective
Date and on or prior to such date with respect to any prior
Excess Cash Flow Payment Period (which shall be determined on a
cumulative basis, but including at the time of any determination
of the Available Retained Excess Cash Flow Amount, only those
Excess Cash Flow Payment Periods for which the respective Excess
Cash Flow Payment Date has occurred and any required repayment
pursuant to Section 4.02(i) has been made; provided, that, if
Excess Cash Flow is negative for any Excess Cash Flow Payment
Period, 100% of such negative amount shall be included in
determining the Borrowers' cumulative retained share of all
Excess Cash Flow and not required to be utilized to repay Term
Loans pursuant to Section 4.02(i)), minus (ii) all deductions to
the Available Net Income Amount made pursuant to clauses (ii),
(iii), (iv), (v) and (vi) of, and the first proviso to, the
definition thereof.
"Available Returned Investment Amount" shall mean on
any date of determination an amount equal to (i) the Returned
Investment Amount as calculated on such date, minus (ii) any
amounts used to make Investments pursuant to Section 9.05(vii)(D)
after the Restatement Effective Date and on or prior to such
date.
"Available $10 Million Acquisition/Investment Basket
Amount" shall mean on any date of determination an amount equal
to (i) $10,000,000, minus (ii) any amounts used to make
Investments pursuant to Section 9.05(vii)(A) after the
Restatement Effective Date and on or prior to such date, minus
(iii) any amounts used to make Permitted Acquisitions pursuant to
clause (A) of the definition of Available Permitted Acquisition
Amount after the Restatement Effective Date and on or prior to
such date.
"Available $10 Million Dividend Basket Amount" shall
mean on any date of determination an amount equal to (i)
$10,000,000, minus (ii) any amounts used to pay Dividends
pursuant to Section 9.03(ii)(A) after the Restatement Effective
Date and on or prior to such date.
"Available Unrestricted Proceeds Amount" shall mean, on
any date of determination, an amount equal to zero, plus (i) all
Net Cash Proceeds received by INTERCO from issuances of equity by
INTERCO (including pursuant to any exercise of the INTERCO
Warrants, any exercise of stock options and the issuance of any
Qualified Preferred Stock or Disqualified Preferred Stock of
INTERCO) after the Restatement Effective Date and on or prior to
such date, and not (x) used to repay Term Loans pursuant to the
second proviso to clause (iv) of Section 4.01(a) (or otherwise
pursuant to Section 4.01 if such repayment is included in any
certification delivered pursuant to the proviso to Section
9.09(b)) or pursuant to Section 4.02(e) and/or Section 4.02(f),
or (y) excluded from the requirements of Section 4.02(e) by
virtue of clauses (iv) and/or (v)(x) of the first parenthetical
to Section 4.02(e)) minus (ii) any amounts used to effect
Permitted Acquisitions pursuant to clause (B) of the definition
of Available Permitted Acquisition Amount after the Restatement
Effective Date and on or prior to such date, minus (iii) any
Dividend payments made by INTERCO pursuant to Section 9.03(ii)(C)
after the Restatement Effective Date and on or prior to such
date, minus (iv) any Investments by the Borrowers or their
Restricted Subsidiaries pursuant to Section 9.05(vii)(B) after
the Restatement Effective Date and on or prior to such date,
minus (v) any Restricted Junior Payments made by INTERCO or its
Restricted Subsidiaries after the Restatement Effective Date and
on or prior to such date pursuant to Section 9.11(a)(i)(y)(A),
minus (vii) Guaranty Payments made by the Borrowers or their
Restricted Subsidiaries after the Restatement Effective Date and
on or prior to such date pursuant to Section
9.11(b)(ii)(y)(B)(3); provided that, at the time of the
consummation of any Permitted Acquisition, the Available
Unrestricted Proceeds Amount shall be increased by the aggregate
liquidation preference or amount of Disqualified Preferred Stock
being directly issued as consideration in connection with such
Permitted Acquisition (where no Net Cash Proceeds are received in
connection therewith) (with the resultant increase in the
Available Permitted Acquisition Amount, as provided in clause (B)
of the definition thereof, for purposes of a consummation of the
respective Permitted Acquisition), which increase in the
Available Unrestricted Proceeds Amount (and resultant increase in
the Available Permitted Acquisition Amount) shall be reduced to
zero immediately upon the consummation of the respective
Permitted Acquisition.
"B Term Loan" shall have the meaning provided in
Section 1.01(b).
"B Term Loan Commitment" shall mean, for each Bank, the
amount set forth opposite such Bank's name in Schedule I directly
below the column entitled "B Term Loan Commitment," as same may
be (x) reduced from time to time pursuant to Sections 3.03, 4.02
and/or 10 or (y) adjusted from time to time as a result of
assignments to or from such Bank pursuant to Sections 1.13 and/or
13.04(b).
"B Term Loan Maturity Date" shall mean March 29, 2003.
"B Term Loan Scheduled Repayment" shall have the
meaning provided in Section 4.02(c).
"B Term Note" shall have the meaning provided in
Section 1.05(a).
"Bank" shall mean each financial institution listed on
Schedule I, as well as any Person which becomes a "Bank"
hereunder pursuant to 13.04(b).
"Bank Default" shall mean (i) the refusal (which has
not been retracted) of a Bank, in violation of this Agreement, to
make available its portion of any Borrowing (including any
Mandatory Borrowing) or to fund its portion of any unreimbursed
payment under Section 2.03(c) or (ii) a Bank having notified in
writing the Borrowers and/or the Administrative Agent that it
does not intend to comply with its obligations under Section
1.01(f) or Section 2 in the case of either clause (i) or (ii), as
a result of any takeover of such bank by any regulatory authority
or agency.
"Bankruptcy Code" shall have the meaning provided in
Section 10.05.
"Base Case Consolidated Cumulative Net Income Amount"
shall mean, at any date, the amount shown on Schedule XVI
corresponding to the fiscal quarter most recently ended or, if
the Leverage Reduction Threshold Date has theretofore occurred,
corresponding to the Leverage Reduction Fiscal Quarter.
"Base Rate" at any time shall mean the higher of (i)
1/2 of 1% in excess of the Adjusted Certificate of Deposit Rate
and (ii) the Prime Lending Rate.
"Base Rate Loan" shall mean (i) each Swingline Loan and
(ii) each Loan designated or deemed designated as such by the
Borrowers at the time of the incurrence thereof or conversion
thereto.
"Borrowers" shall have the meaning provided in the
first paragraph of this Agreement.
"Borrowing" shall mean the borrowing of one Type of
Loan of a single Tranche from all the Banks having Commitments of
the respective Tranche (or from BTCo in the case of Swingline
Loans) on a given date (or resulting from a conversion or
conversions on such date) having in the case of Eurodollar Loans
the same Interest Period, provided that Base Rate Loans incurred
pursuant to Section 1.10(b) shall be considered part of the re-
lated Borrowing of Eurodollar Loans.
"Broyhill" shall have the meaning provided in the first
paragraph of this Agreement.
"BTCo" shall mean Bankers Trust Company in its
individual capacity.
"Business Day" shall mean (i) for all purposes other
than as covered by clause (ii) below, any day except Saturday,
Sunday and any day which shall be in New York City a legal
holiday or a day on which banking institutions are authorized or
required by law or other government action to close and (ii) with
respect to all notices and determinations in connection with, and
payments of principal and interest on, Eurodollar Loans, any day
which is a Business Day described in clause (i) above and which
is also a day for trading by and between banks in the New York
interbank Eurodollar market.
"C Term Loan" shall have the meaning provided in
Section 1.01(c).
"C Term Loan Commitment" shall mean, for each Bank, the
amount set forth opposite such Bank's name in Schedule I directly
below the column entitled "C Term Loan Commitment," as same may
be (x) reduced from time to time pursuant to Sections 3.03, 4.02
and/or 10 or (y) adjusted from time to time as a result of
assignments to or from such Bank pursuant to Sections 1.13 and/or
13.04(b).
"C Term Loan Maturity Date" shall mean March 29, 2004.
"C Term Loan Scheduled Repayment" shall have the
meaning provided in Section 4.02(d).
"C Term Note" shall have the meaning provided in
Section 1.05(a).
"Capital Expenditures" shall mean, with respect to any
Person, all expenditures by such Person which should be
capitalized in accordance with generally accepted accounting
principles, including all such expenditures with respect to fixed
or capital assets (including, without limitation, expenditures
for maintenance and repairs which should be capitalized in
accordance with generally accepted accounting principles) and the
amount of Capitalized Lease Obligations incurred by such Person.
"Capitalized Lease Obligations" of any Person shall
mean all rental obligations which, under generally accepted
accounting principles, are or will be required to be capitalized
on the books of such Person, in each case taken at the amount
thereof accounted for as indebtedness in accordance with such
principles.
"Cash Equivalents" shall mean, as to any Person, (i)
securities issued or directly and fully guaranteed or insured by
the United States or any agency or instrumentality thereof
(provided that the full faith and credit of the United States is
pledged in support thereof) having maturities of not more than
one year from the date of acquisition, (ii) time deposits and
certificates of deposit of any commercial bank having, or which
is the principal banking subsidiary of a bank holding company
organized under the laws of the United States, any State thereof,
the District of Columbia or any foreign jurisdiction having
capital, surplus and undivided profits aggregating in excess of
$200,000,000, with maturities of not more than one year from the
date of acquisition by such Person, (iii) repurchase obligations
with a term of not more than 90 days for underlying securities of
the types described in clause (i) above entered into with any
bank meeting the qualifications specified in clause (ii) above,
(iv) commercial paper issued by any Person incorporated in the
United States rated at least A-1 or the equivalent thereof by
Standard & Poor's Corporation or at least P-1 or the equivalent
thereof by Xxxxx'x Investors Service, Inc. and in each case
maturing not more than one year after the date of acquisition by
such Person, (v) investments in money market funds substantially
all of whose assets are comprised of securities of the types
described in clauses (i) through (iv) above and (vi) demand
deposit accounts maintained in the ordinary course of business
not in excess of $100,000 in the aggregate.
"Cash Management System" shall mean the "Cash
Management System" as defined in the Original Credit Agreement.
"CERCLA" shall mean the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as the same
may be amended from time to time, 42 U.S.C. Section 9601 et seq.
"Change of Control" shall mean (i) INTERCO shall at any
time cease to own 100% of the capital stock of any of Broyhill,
Lane or Thomasville, (ii) the board of directors of INTERCO shall
cease to consist of a majority of Continuing Directors and (iii)
any Person, entity or "group" (as such term is defined in Section
13(d)(3) of the Securities Exchange Act of 1934, as amended)
(other than the Apollo Group or a Controlled Account) is or
becomes the beneficial owner of an amount of outstanding Voting
Stock of INTERCO in excess of 25%, and the Apollo Group and/or
one or more Controlled Accounts own less than such Person, entity
or group (as defined above), of the total amount of fully diluted
shares of outstanding Voting Stock of INTERCO.
"Code" shall mean the Internal Revenue Code of 1986, as
amended from time to time, and the regulations promulgated and
the rulings issued thereunder. Section references to the Code
are to the Code, as in effect at the date of this Agreement, and
to any subsequent provision of the Code, amendatory thereof,
supplemental thereto or substituted therefor.
"Collateral" shall mean all property (whether real or
personal) with respect to which any security interests have been
granted (or purported to be granted) pursuant to any Security
Document, including, without limitation, all Pledge Agreement
Collateral (which shall include all capital stock of, and
promissory notes issued by, the Receivables Subsidiary, to the
extent held by any Credit Party), all Security Agreement Collat-
eral (which shall exclude all assets of the Receivables
Subsidiary), all Mortgaged Properties, all cash and Cash Equiva-
xxxxx delivered as collateral pursuant to Section 4.02 or 10
hereof and all Additional Collateral, if any.
"Collateral Agent" shall mean the Administrative Agent
acting as collateral agent for the Secured Creditors pursuant to
the Security Documents.
"Collective Bargaining Agreements" shall have the
meaning provided in Section 5.05.
"Commitment" shall mean any of the commitments of any
Bank, i.e., whether the A Term Loan Commitment, B Term Loan
Commitment, C Term Loan Commitment or Revolving Loan Commitment.
"Commitment Commission" shall have the meaning provided
in Section 3.01(a).
"Concentration Account" shall have the meaning provided
in the Security Agreement.
"Consolidated Cumulative Excess Net Income Amount"
shall mean, on any date, an amount determined on a cumulative
basis equal to (i) the sum of 100% of Consolidated Net Income for
all Consolidated Cumulative Net Income Periods ended prior to
such date of determination or, if the Leverage Reduction
Threshold Date has theretofore occurred, for all Consolidated
Cumulative Excess Net Income Periods ending on or prior to the
last day of the Leverage Reduction Fiscal Quarter, minus (ii)
100% of the Base Case Consolidated Cumulative Net Income Amount
as same is listed on Schedule XVI for the last fiscal quarter
included in the determination pursuant to preceding clause (i).
"Consolidated Cumulative Net Income Amount" shall mean,
at any date (A) if the Leverage Reduction Threshold Date has not
theretofore occurred, the Consolidated Cumulative Excess Net
Income Amount as determined on such date or (B) if the Leverage
Reduction Threshold Date has theretofore occurred, the sum of (x)
the Consolidated Cumulative Excess Net Income Amount as
determined on the Leverage Reduction Threshold Date plus (y) the
Consolidated Cumulative 25% Net Income Amount as determined on
the date on which the Consolidated Cumulative Net Income Amount
is being determined.
"Consolidated Cumulative Net Income Period" shall mean
each period consisting of a fiscal quarter of INTERCO ending
after January 1, 1996 and for which the related financial
statements required to be delivered pursuant to Section 8.01(b)
or (c), as the case may be, have theretofore been delivered.
"Consolidated Cumulative 25% Net Income Amount" shall
mean, at any date an amount determined on a cumulative basis
equal to (i) the sum of 25% of Consolidated Net Income for all
Consolidated Cumulative Net Income Periods ending after the last
day of the Leverage Reduction Fiscal Quarter and prior to such
date of determination for which Consolidated Net Income was a
positive number, minus (ii) 100% of Consolidated Net Income for
all Consolidated Cumulative Net Income Periods ending after the
last day of the Leverage Reduction Fiscal Quarter and prior to
such date of determination for which Consolidated Net Income was
a negative number.
"Consolidated Current Assets" shall mean, at any time,
the current assets of INTERCO and its Restricted Subsidiaries
determined on a consolidated basis.
"Consolidated Current Liabilities" shall mean, at any
time, the current liabilities of INTERCO and its Restricted Sub-
sidiaries determined on a consolidated basis at such time, but
excluding (i) the current portion of any Indebtedness under this
Agreement, any Attributed Receivables Facility Indebtedness of
the Receivables Subsidiary and any other long-term Indebtedness
which would otherwise be included therein, (ii) accrued but
unpaid interest with respect to the Indebtedness described in
clause (i) and with respect to Capitalized Lease Obligations,
(iii) the current portion of Indebtedness constituting Capital-
ized Lease Obligations and (iv) any current portion of tax
liabilities of such Persons.
"Consolidated Debt" shall mean all Indebtedness of
INTERCO and its Restricted Subsidiaries (including, without
limitation, the amount of Attributed Receivables Facility
Indebtedness) determined on a combined basis with respect to
borrowed money or other obligations of such Persons which would
appear on the balance sheet of such Persons as indebtedness
(including unreimbursed drawings under Letters of Credit and
unreimbursed payments under Acceptances, but excluding
Consolidated Current Liabilities and deferred tax and pension
liabilities) provided that for any date of determination, the
amount of Revolving Loans and Swingline Loans included in the
foregoing calculation shall be the daily average utilization of
Revolving Loans and Swingline Loans for the period of (A) three
months, if such calculation is made within the first three months
following the Restatement Effective Date, (B) six months, if such
calculation is made within the first six months following the
Restatement Effective Date, (C) nine months, if such calculation
is made within the first nine months following the Restatement
Effective Date and (D) twelve months thereafter, in each case,
prior to such calculation, plus (i) all Contingent Obligations of
such Persons incurred after the Restatement Effective Date
(excluding obligations resulting from extensions or renewals of
the leases guaranteed by the Surviving Guarantees made in
compliance with this Agreement), plus (ii) all Contingent Obliga-
tions with respect to any Surviving Guaranty on and after the
date on which INTERCO made any payment in respect of such Surviv-
ing Guaranty, plus (iii) an amount equal to the greater of the
liquidation preference and the maximum fixed repurchase price
(excluding accrued Dividends) of any outstanding Disqualified
Preferred Stock, minus (iv) (x) if on the date of determination
of Consolidated Debt any amount of Revolving Loans or Swingline
Loans is then outstanding, the cash in excess of $10,000,000 as
shown on the consolidated balance sheet of INTERCO and its
Restricted Subsidiaries as of the date of determination, provided
that not more than $10,000,000 shall be deducted pursuant to this
subclause (x) on any date of determination of Consolidated Debt
or (y) if on the date of determination no Revolving Loans or
Swingline Loans are then outstanding, the amount of cash as shown
on the consolidated balance sheet of INTERCO and its Restricted
Subsidiaries as of the date of determination of Consolidated
Debt.
"Consolidated EBIT" shall mean, for any period, the
Consolidated Net Income of INTERCO and its Restricted Subsidi-
aries, determined on a consolidated basis, before Consolidated
Net Interest Expense (to the extent deducted in arriving at
Consolidated Net Income) and provision for taxes or gains or
losses from sales of assets other than inventory sold in the
ordinary course of business, in each case that were included in
arriving at Consolidated Net Income.
"Consolidated EBITDA" shall mean, for any period,
Consolidated EBIT, adjusted by adding thereto the amount of all
amortization of intangibles and depreciation, in each case that
were deducted in arriving at Consolidated EBIT for such period.
"Consolidated Net Income" shall mean, for any period,
the net after tax income of INTERCO and its Restricted
Subsidiaries determined on a consolidated basis, minus cash
Dividends paid in respect of Disqualified Preferred Stock,
without giving effect to any extraordinary gains or losses.
"Consolidated Net Interest Coverage Ratio" for any
period shall mean the ratio of Consolidated EBITDA to Xxxxxxx-
dated Net Interest Expense for such period.
"Consolidated Net Interest Expense" shall mean, for any
period, the total consolidated interest expense of INTERCO and
its Restricted Subsidiaries for such period (calculated without
regard to any limitations on the payment thereof) plus, without
duplication, that portion of Capitalized Lease Obligations of
INTERCO and its Restricted Subsidiaries representing the interest
factor for such period, and capitalized interest expense, plus,
(i) all cash fees, service charges and other costs, as well as
all collections or other amounts retained by the Receivables
Purchasers which are in excess of amounts paid to INTERCO and its
Restricted Subsidiaries under the Receivables Facility by it for
the purchase of receivables pursuant to the Receivables Facility
and (ii) the product of (x) the amount of all cash Dividend
requirements (whether or not declared or paid) on Disqualified
Preferred Stock paid, accrued or scheduled to be paid or accrued
during such period times (y) a fraction, the numerator of which
is one and the denominator of which is one minus the then current
effective consolidated Federal, state, local and foreign tax rate
(expressed as a decimal number between one and zero) of INTERCO
as reflected in the audited consolidated financial statements of
INTERCO for its most recently completed Fiscal Year, which
amounts described in the preceding clauses (i) and (ii) shall be
treated as interest expense of INTERCO and its Restricted
Subsidiaries for purposes of this definition regardless of the
treatment of such amounts under generally accepted accounting
principles, in each case net of the total consolidated cash
interest income of INTERCO and its Restricted Subsidiaries for
such period, but excluding the amortization of any deferred
financing costs and all amounts in respect of the Interest Rate
Protection Agreements, all determined on a consolidated basis.
"Consolidated Senior Debt" at any time shall mean
Consolidated Debt on such date, adjusted by excluding therefrom
the amount of Permitted Subordinated Indebtedness and
Disqualified Preferred Stock reflected in Consolidated Debt on
such date.
"Contingent Obligation" shall mean, as to any Person,
any obligation of such Person guaranteeing or intended to
guarantee any Indebtedness, leases, dividends or other
obligations ("primary obligations") of any other Person (the
"primary obligor") in any manner, whether directly or indirectly,
including, without limitation, any obligation of such Person,
whether or not contingent, (i) to purchase any such primary obli-
gation or any property constituting direct or indirect security
therefor, (ii) to advance or supply funds (x) for the purchase or
payment of any such primary obligation or (y) to maintain working
capital or equity capital of the primary obligor or otherwise to
maintain the net worth or solvency 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 such primary obligation against loss in respect
thereof; provided, however, that the term Contingent Obligation
shall not include endorsements of instruments for deposit or
collection in the ordinary course of business. The amount of any
Contingent Obligation shall be deemed to be an amount equal to
the stated or determinable amount of the primary obligation in
respect of which such Contingent Obligation is made (or, if less,
the maximum amount of such primary obligation for which such
Person may be liable pursuant to the terms of the instrument
evidencing such Contingent Obligation) or, if not stated or
determinable, the maximum reasonably anticipated liability in
respect thereof (assuming such Person is required to perform
thereunder) as determined by such Person in good faith.
"Continuing Bank" shall mean each Original Bank with a
Commitment under this Agreement (immediately upon giving effect
to the Restatement Effective Date).
"Continuing Directors" shall mean the Directors of
INTERCO on the Restatement Effective Date and each other Director
if such Director's nomination for election to the Board of
Directors of INTERCO is recommended by a majority of the then
Continuing Directors.
"Controlled Account" shall mean any account managed by
the Apollo Group for so long as the Apollo Group exercises sole
power of disposition and voting with respect thereto.
"Converse" shall mean Converse Inc., a Delaware
corporation.
"Converse Disposition" shall mean the "Converse
Disposition" as such term is defined in the Original Credit
Agreement.
"Credit Documents" shall mean this Agreement and, after
the execution and delivery thereof pursuant to the terms of this
Agreement, each Note, each Security Document and the Subsidiary
Guaranty and, after the execution and delivery thereof, each
additional guaranty or security document executed pursuant to
Section 8.11.
"Credit Event" shall mean the making of any Loan or the
issuance of any Letter of Credit.
"Credit Lyonnais" shall have the meaning provided in
the preamble hereto.
"Credit Party" shall mean the Borrowers and each
Subsidiary Guarantor.
"Cumulative Consolidated EBITDA" shall have the meaning
provided in Section 9.09(b).
"Currency Hedging Agreements" shall mean any foreign
exchange contracts, currency swap agreements or other similar
agreements or arrangements designed to protect against the
fluctuations in currency values.
"Default" shall mean any event, act or condition which
with notice or lapse of time, or both, would constitute an Event
of Default.
"Defaulting Bank" shall mean any Bank with respect to
which a Bank Default is in effect.
"Disqualified Preferred Stock" means any Preferred
Stock of INTERCO which would be Qualified Preferred Stock except
that regular accruing dividends thereon are required to be paid
in cash, and so long as, (i) based on calculations made by
INTERCO on a Pro Forma Basis after giving effect to the issuance
of such Disqualified Preferred Stock, no Default or Event of
Default will exist under, or would have existed under the periods
covered by, the financial covenants contained in Sections 9.08
through 9.10, inclusive, of this Agreement, (ii) based on good
faith projections prepared by INTERCO for the period from the
date of the issuance of such Disqualified Preferred Stock to the
date which is one year thereafter, the level of financial per-
formance measured by the covenants set forth in Sections 9.08
through 9.10 inclusive shall be better than or equal to such
level as would be required to provide that no Default or Event of
Default would exist under the financial covenants contained in
Sections 9.08 through 9.10, inclusive, of this Agreement as com-
pliance with such covenants would be required through the date
which is one year from the date of the issuance of such
Disqualified Preferred Stock, (iii) INTERCO shall furnish to the
Administrative Agent for distribution to each of the Banks an
officer's certificate by the chief financial officer or treasurer
of INTERCO certifying to the best of his knowledge as to compli-
ance with the requirements of the preceding clauses (i) and (ii)
and containing the pro forma calculations and projections
required by the preceding clauses (i) and (ii), and (iv) such
Disqualified Preferred Stock shall not contain any provision in
the documents governing or evidencing the same which, in the opi-
nion of the Administrative Agent, are more restrictive than the
provisions in the Credit Documents.
"Dividend" with respect to any Person shall mean that
such Person has declared or paid a dividend or returned any
equity capital to its stockholders or authorized or made any
other distribution, payment or delivery of property (other than
common stock of such Person or Qualified Preferred Stock of
INTERCO paid as a pay-in-kind Dividend on any Qualified Preferred
Stock of INTERCO) or cash to its stockholders as such, or
redeemed, retired, purchased or otherwise acquired, directly or
indirectly, for a consideration any shares of any class of its
capital stock outstanding on or after the Effective Date (or any
options or warrants issued by such Person with respect to its
capital stock), or set aside any funds for any of the foregoing
purposes, or shall have permitted any of its Subsidiaries to
purchase or otherwise acquire for a consideration any shares of
any class of the capital stock of such Person outstanding on or
after the Effective Date (or any options or warrants issued by
such Person with respect to its capital stock). Without limiting
the foregoing, "Dividends" with respect to any Person shall also
include all payments made or required to be made during any
period by such Person with respect to any stock appreciation
rights, plans, equity incentive or achievement plans or any
similar plans or setting aside of any funds for the foregoing
purposes, except to the extent such payments have reduced
Consolidated EBITDA during the respective period.
"Dividend Threshold Date" shall mean the Leverage
Reduction Threshold Date; provided that if INTERCO establishes to
the reasonable satisfaction of the Administrative Agent, by
delivering a certificate of an Authorized Officer showing in
reasonable detail the necessary calculations to substantiate
same, that an issuance of equity by INTERCO (including pursuant
to any exercise of the INTERCO Warrants, any exercise of stock
options and the issuance of any INTERCO Common Stock or Qualified
Preferred Stock) and the concurrent application of the proceeds
thereof to any outstanding Indebtedness would cause a reduction
to Consolidated Debt in such amount so that the Leverage Ratio as
determined on the last day of the fiscal quarter last ended on or
prior to the date of the respective equity issuance, after giving
effect to the pro forma application of the proceeds of such
equity issuance to the repayment of Indebtedness, would have been
less than or equal to 3.5:1.0 if such application to outstanding
Indebtedness had been made as of the last day of such fiscal
quarter, then the Dividend Threshold Date shall instead occur on
the date of such equity issuance and concurrent application of
the proceeds to repay such Indebtedness.
"Documentation Agent" shall mean Credit Lyonnais, in
its capacity as Documentation Agent for the Banks hereunder.
"Documents" shall mean the Credit Documents, the
Receivables Documents and the Acquisition Documents.
"Dollars" and the sign "$" shall each mean freely
transferable lawful money of the United States.
"Domestic Subsidiary" with respect to any Person shall
mean a Subsidiary thereof other than a Foreign Subsidiary
thereof.
"Domestic Wholly-Owned Subsidiary" of any Person shall
mean each Wholly-Owned Subsidiary of such Person which is also a
Domestic Subsidiary.
"Drawing" shall have the meaning provided in Section
2.05(b).
"Effective Date" shall mean the Effective Date of, and
is defined in, the Original Credit Agreement.
"Eligible Transferee" shall mean and include a com-
mercial bank, mutual fund, financial institution or other
"accredited investor" (as defined in Regulation D of the
Securities Act).
"Employee Stock Option Plan" shall mean the INTERCO
Incorporated 1992 Stock Option Plan.
"Environmental Claims" means any and all adminis-
trative, regulatory or judicial actions, suits, demands, demand
letters, directives, claims, liens, notices of noncompliance or
violation, investigations or proceedings relating in any way to
any Environmental Law or any permit issued, or any approval
given, under any such Environmental Law (hereafter, "Claims"),
including, without limitation, (a) any and all Claims by
governmental or regulatory authorities for enforcement, cleanup,
removal, response, remedial or other actions or damages pursuant
to any applicable Environmental Law, and (b) any and all Claims
by any third party seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief
in connection with alleged injury or threat of injury to health,
safety or the environment due to the presence of Hazardous
Materials.
"Environmental Law" means any applicable Federal,
state, foreign or local statute, law, rule, regulation,
ordinance, code, binding and enforceable guideline, binding and
enforceable written policy and rule of common law now or
hereafter in effect and in each case as amended, and any judicial
or administrative interpretation thereof, including any judicial
or administrative order, consent decree or judgment, to the
extent binding on the Borrowers or any of their respective
Subsidiaries, relating to the environment, employee health and
safety or Hazardous Materials, including, without limitation,
CERCLA; RCRA; the Federal Water Pollution Control Act, 33 U.S.C.
Section 1251 et seq.; the Toxic Substances Control Act, 15 U.S.C.
Section 2601 et seq.; the Clean Air Act, 42 U.S.C. Section 7401
et seq.; the Safe Drinking Water Act, 42 U.S.C. Section 3803 et
seq.; the Oil Pollution Act of 1990, 33 U.S.C. Section 2701
et seq.; the Emergency Planning and the Community Right-to-Know
Act of 1986, 42 U.S.C. Section 11001 et seq., the Hazardous
Material Transportation Act, 49 U.S.C. Section 1801 et seq. and
the Occupational Safety and Health Act, 29 U.S.C. Section 651 et
seq. (to the extent it regulates occupational exposure to
Hazardous Materials); and any state and local or foreign
counterparts or equivalents, in each case as amended from
time to time.
"ERISA" shall mean the Employee Retirement Income
Security Act of 1974, as amended from time to time, and the
regulations promulgated and rulings issued thereunder. Section
references to ERISA are to ERISA, as in effect at the date of
this Agreement and any subsequent provisions of ERISA, amendatory
thereof, supplemental thereto or substituted therefor.
"ERISA Affiliate" shall mean each person (as defined in
Section 3(9) of ERISA) which together with the Borrowers or any
Subsidiary of the Borrowers would be deemed to be a "single
employer" (i) within the meaning of Section 414(b), (c), (m) or
(o) of the Code or (ii) as a result of the Borrowers or any
Subsidiary of the Borrowers being or having been a general
partner of such person.
"Eurodollar Loan" shall mean each Loan (excluding
Swingline Loans) designated as such by the Borrowers at the time
of the incurrence thereof or conversion thereto.
"Eurodollar Rate" shall mean (a) the offered quotation
to first-class banks in the New York interbank Eurodollar market
by BTCo for Dollar deposits of amounts in immediately available
funds comparable to the outstanding principal amount of the
Eurodollar Loan of BTCo with maturities comparable to the
Interest Period applicable to such Eurodollar Loan commencing two
Business Days thereafter as of 10:00 A.M. (New York time) on the
date which is two Business Days prior to the commencement of such
Interest Period, divided (and rounded off to the nearest 1/16 of
1%) by (b) a percentage equal to 100% minus the then stated
maximum rate of all reserve requirements (including, without
limitation, any marginal, emergency, supplemental, special or
other reserves required by applicable law) applicable to any
member bank of the Federal Reserve System in respect of
Eurocurrency funding or liabilities as defined in Regulation D
(or any successor category of liabilities under Regulation D).
"Event of Default" shall have the meaning provided in
Section 10.
"Excess Cash Flow" shall mean, for any period, the
remainder of (a) the sum of (i) Consolidated Net Income for such
period plus, without duplication, the sum of the amount of all
net non-cash charges (including, without limitation,
depreciation, amortization, deferred tax expense and non-cash
interest expense, but excluding any net non-cash charges
reflected in Adjusted Consolidated Working Capital) and net non-
cash losses which were included in arriving at Consolidated Net
Income for such period less the sum of the amount of all net non-
cash income or gains (exclusive of items reflected in Adjusted
Consolidated Working Capital) included in arriving at
Consolidated Net Income for such period, (ii) the decrease, if
any, in Adjusted Consolidated Working Capital from the first day
to the last day of such period and (iii) any net increases (or
minus any net decreases) in items classified as "Other Liabili-
ties" (excluding long term Indebtedness) during such period as
shown on the consolidated balance sheet of INTERCO and its
Restricted Subsidiaries covering such period, minus (b) the sum
of (i) the amount of Capital Expenditures made by the Borrowers
and its Restricted Subsidiaries on a consolidated basis during
such period pursuant to and in accordance with Section 9.07(a)
and (b) except to the extent financed with the proceeds of
Indebtedness or pursuant to Capitalized Lease Obligations, (ii)
the aggregate amount of permanent principal payments of Indebt-
edness for borrowed money of the Borrowers and their Restricted
Subsidiaries and the permanent repayment of the principal com-
ponent of Capitalized Lease Obligations of the Borrowers and its
Subsidiaries (excluding (1) payments with proceeds of asset
sales, (2) payments pursuant to the Refinancing or with the
proceeds of other Indebtedness or equity and (3) payments of
Loans or other Obligations, provided that repayments of Loans
shall be deducted in determining Excess Cash Flow if such repay-
ments were (x) required as a result of a Scheduled Repayment of A
Term Loans, B Term Loans or C Term Loans under Section 4.02(b),
(c) or (d), respectively or (y) made as a voluntary prepayment
pursuant to Section 4.01 with internally generated funds (but in
the case of a voluntary prepayment of Revolving Loans, only to
the extent accompanied by a voluntary reduction to the Total
Revolving Loan Commitment)) during such period, (iii) the
increase, if any, in Adjusted Consolidated Working Capital from
the first day to the last day of such period and (iv) any net
increases (or minus any net decreases) in items classified as
"Other Assets" (excluding (i) any goodwill created in connection
with a Permitted Acquisition and (ii) debt issuance costs created
in connection with any incurrence of Indebtedness permitted
hereunder to the extent paid with the proceeds thereof) during
such period as shown on the consolidated balance sheet of INTERCO
and its Restricted Subsidiaries covering such period.
"Excess Cash Flow Payment Date" shall mean (i) with
respect to any Excess Cash Flow Payment Period less than a full
Fiscal Year selected by INTERCO pursuant to the proviso to the
definition thereof, the date occurring 45 days (or such shorter
number of days as may be elected by INTERCO) after the last day
of such Excess Cash Flow Payment Period, and otherwise (ii) the
date occurring 95 days (or such shorter period as may be elected
by INTERCO) after the last day of each Fiscal Year (beginning
with the Fiscal Year ended closest to December 31, 1996).
"Excess Cash Flow Payment Period" shall mean (i) with
respect to the repayment required on the first Excess Cash Flow
Payment Date, the period beginning on January 1, 1996 and ending
on December 31, 1996 and (ii) on each Excess Cash Flow Payment
Date thereafter, the immediately preceding Fiscal Year; provided
that INTERCO may, at its option, elect from time to time to have
Excess Cash Flow Payment Periods which end on the last day of any
fiscal quarter of INTERCO, in which event such period shall
consist of a period beginning on the later of (x) the Restatement
Effective Date and (y) the end of any prior Excess Cash Flow
Payment Period, and ending on such last day of such fiscal
quarter.
"Exchange Act" shall mean the Securities Exchange Act
of 1934, as amended.
"Excluded Assets" shall mean each of the assets listed
on Schedule XIV.
"Existing Fluvanna Letter of Credit" shall mean the
letter of credit issued by Union Bank of Switzerland in support
of the Existing IRBs.
"Existing Indebtedness" shall have the meaning provided
in Section 7.22.
"Existing IRBs" shall mean $8,000,000 Industrial
Development Authority of Fluvanna County, Virginia Floating Rate
Demand Industrial Development Revenue Bonds (Thomasville
Furniture Industries, Inc. Project) Series 1986.
"Existing Letters of Credit" shall mean the letters of
credit listed on Schedule XII and previously issued under the
Original Credit Agreement.
"Existing Mortgage Policies" shall mean each mortgage
insurance policy issued with respect to an Existing Mortgage
under the Original Credit Agreement.
"Existing Mortgages" shall mean all Mortgages granted
by the Borrowers pursuant to the Original Credit Agreement and
which have not been released by the lenders thereunder prior to
the Restatement Effective Date.
"Facing Fee" shall have the meaning provided in Section
3.01(c).
"Federal Funds Rate" shall mean for any period, a
fluctuating interest rate equal for each day during such period
to the weighted average of the rates on overnight Federal Funds
transactions with members of the Federal Reserve System arranged
by Federal Funds brokers, as published for such day (or, if such
day is not a Business Day, for the next preceding Business Day)
by the Federal Reserve Bank of New York, or, if such rate is not
so published for any day which is a Business Day, the average of
the quotations for such day on such transactions received by the
Administrative Agent from three Federal Funds brokers of
recognized standing selected by the Administrative Agent.
"Fees" shall mean all amounts payable pursuant to or
referred to in Section 3.01.
"FIRREA" shall mean Financial Institution Reform,
Recovery and Enforcement Act of 1989.
"Fiscal Year" shall mean each fiscal year of INTERCO
ending on December 31 of each calendar year.
"Florsheim" shall mean The Florsheim Shoe Company, a
Delaware corporation.
"Florsheim Disposition" shall mean the "Florsheim
Disposition" as such term is defined in the Original Credit
Agreement.
"Foreign Pension Plan" means any plan, fund (including,
without limitation, any superannuation fund) or other similar
program established or maintained outside the United States of
America by any Borrower or any one or more of their respective
Subsidiaries primarily for the benefit of employees of such
Borrower or such Subsidiary residing outside the United States of
America, which plan, fund or other similar program provides, or
results in, retirement income, a deferral of income in
contemplation of retirement or payments to be made upon
termination of employment, and which plan is not subject to ERISA
or the Code.
"Foreign Sales Corporation" shall mean a Wholly-Owned
Foreign Subsidiary of INTERCO and/or its Restricted Subsidiaries
created for the purpose of effecting sales of goods and/or
services in foreign countries.
"Foreign Subsidiary" with respect to any Person shall
mean each Subsidiary thereof that is incorporated under the laws
of any jurisdiction other than the United States of America, any
State thereof, the United States Virgin Islands or Puerto Rico.
"Guaranty Payments" shall have the meaning provided in
Section 9.11(b)(ii).
"Hazardous Materials" means (a) any petroleum or
petroleum products, radioactive materials, asbestos in any form
that is or could become friable, urea formaldehyde foam
insulation, transformers or other equipment that contain
dielectric fluid containing any level of polychlorinated
biphenyls, and radon gas; (b) any chemicals, materials or
substances defined as or included in the definition of "hazardous
substances," "hazardous waste," "hazardous materials," "extremely
hazardous substances," "restricted hazardous waste," "toxic
substances," "toxic pollutants," "contaminants," or "pollutants,"
or words of similar import, under any applicable Environmental
Law; and (c) any other chemical, material or substance, exposure
to which is prohibited, limited or regulated by any governmental
authority under Environmental Laws.
"Indebtedness" shall mean, as to any Person, without
duplication, (i) all indebtedness (including principal, interest,
fees and charges) of such Person for borrowed money or for the
deferred purchase price of property or services, (ii) the maximum
amount available to be drawn under all letters of credit issued
for the account of such Person and all unpaid drawings in respect
of such letters of credit, (iii) all Indebtedness of the types
described in clause (i), (ii), (iv), (v), (vi) or (vii) of this
definition secured by any Lien on any property owned by such
Person, whether or not such Indebtedness has been assumed by such
Person (to the extent of the value of the respective property),
(iv) the aggregate amount required to be capitalized under leases
under which such Person is the lessee, (v) all obligations of
such person to pay a specified purchase price for goods or
services, whether or not delivered or accepted, i.e., take-or-pay
and similar obligations, (vi) all Contingent Obligations of such
Person and (vii) all obligations under any Interest Rate
Protection Agreement or under any similar type of agreement. In
addition to the foregoing, all Attributed Receivables Facility
Indebtedness shall constitute Indebtedness.
"INTERCO" shall have the meaning provided in the first
paragraph of this Agreement.
"INTERCO Common Stock" shall mean the common stock of
INTERCO.
"INTERCO Warrants" shall mean warrants to purchase
shares of INTERCO Common Stock pursuant to the Warrant Agreement,
dated August 3, 1992, between INTERCO and Society National Bank,
as Warrant Agent.
"Interest Determination Date" shall mean, with respect
to any Eurodollar Loan, the second Business Day prior to the
commencement of any Interest Period relating to such Eurodollar
Loan.
"Interest Period" shall have the meaning provided in
Section 1.09.
"Interest Rate Protection Agreement" shall mean any
interest rate swap agreement, interest rate cap agreement,
interest collar agreement, interest rate hedging agreement,
interest rate floor agreement or other similar agreement or
arrangement.
"Investments" shall have the meaning provided in
Section 9.05.
"Issuing Bank" shall mean BTCo and any Bank which at
the request of the Borrowers and with the consent of the
Administrative Agent (which shall not be unreasonably withheld or
delayed) agrees, in such Bank's sole discretion, to become an
Issuing Bank for the purpose of issuing Letters of Credit
pursuant to Section 2. On the Restatement Effective Date the
sole Issuing Banks are (x) BTCo and (y) if the New Fluvanna
Letter of Credit has been issued, NationsBank with respect
thereto.
"Lane" shall have the meaning provided in the first
paragraph of this Agreement.
"L/C Supportable Obligations" shall mean obligations of
INTERCO or its Restricted Subsidiaries incurred in the ordinary
course of business with respect to insurance obligations and
workers' compensation, surety bonds and other similar statutory
obligations, and all obligations customarily supported by Standby
Letters of Credit and satisfactory to the Administrative Agent.
"Leaseholds" of any Person means all the right, title
and interest of such Person as lessee or licensee in, to and
under leases or licenses of land, improvements and/or fixtures.
"Letter of Credit" shall have the meaning provided in
Section 2.01(a) and shall include Trade Letters of Credit and
Standby Letters of Credit.
"Letter of Credit Facing Fee" shall have the meaning
provided in Section 3.01(c)(x).
"Letter of Credit Fee" shall have the meaning provided
in Section 3.01(b).
"Letter of Credit Outstandings" shall mean, at any
time, the sum of (i) the aggregate Stated Amount of all out-
standing Letters of Credit which have not terminated and
Acceptances which have not matured or been prepaid and (ii) the
amount of all Unpaid Drawings.
"Letter of Credit Request" shall mean any request for
the issuance of a Letter of Credit made by the Borrowers pursuant
to Section 2.03(a), including Trade Letter of Credit Requests and
Standby Letter of Credit Requests.
"Letter of Credit Service Agreement" shall have the
meaning provided in Section 2.03(a).
"Leverage Ratio" shall mean on any date the ratio of
(i) Consolidated Debt on such date to (ii) Consolidated EBITDA
for the period of four consecutive fiscal quarters most recently
ended on or prior to such date (or, if shorter, the period
beginning on January 1, 1996 and ended on the last day of a
fiscal quarter ended after the Restatement Effective Date,
provided that for purposes of calculating the Leverage Ratio for
(i) the period ending on March 31, 1996, Consolidated EBITDA
shall be multiplied by 4, (ii) for the period ending on June 30,
1996, Consolidated EBITDA shall be multiplied by 2 and (iii) for
the period ending September 30, 1996, consolidated EBITDA shall
be multiplied by 4/3), in each case taken as one accounting
period.
"Leverage Reduction Fiscal Quarter" shall have the
meaning assigned that term in the definition of "Leverage
Reduction Threshold Date".
"Leverage Reduction Threshold Date" shall mean the
first date following the end of a fiscal quarter ended after
January 1, 1996 upon which (x) no Default or Event of Default is
in existence and (y) the financial statements required by Section
8.01(b) or (c), as the case may be, with respect to such fiscal
quarter (or Fiscal Year in the case of the last fiscal quarter in
any Fiscal Year) have been delivered, together with the officer's
certificate required by Section 8.01(f), establishing that the
Leverage Ratio as determined on the last day of such fiscal
quarter (the "Leverage Reduction Fiscal Quarter") is less than or
equal to 3.5:1.0.
"Lien" shall mean any mortgage, pledge, hypothecation,
assignment, deposit arrangement, encumbrance, lien (statutory or
other), preference, priority or other security agreement of any
kind or nature whatsoever (including, without limitation, any
conditional sale or other title retention agreement, any
financing or similar statement or notice filed under the UCC or
any other similar recording or notice statute, and any lease
having substantially the same effect as any of the foregoing).
"Loan" shall mean each Term Loan, each Revolving Loan
and each Swingline Loan.
"Majority B and C Banks" shall mean those Non-
Defaulting Banks which would constitute the Required Banks under,
and as defined in, this Agreement if all outstanding Obligations,
other than the B Term Loans and C Term Loans, were repaid in full
and the Total Revolving Loan Commitment were terminated.
"Majority Banks" of any Tranche shall mean those Non-
Defaulting Banks which would constitute the Required Banks under,
and as defined in, this Agreement if all outstanding Obligations
of the other Tranches under this Agreement were repaid in full
and all Commitments with respect thereto were terminated.
"Mandatory Borrowing" shall have the meaning provided
in Section 1.01(f).
"Margin Stock" shall have the meaning provided in
Regulation U.
"Material Adverse Effect" shall mean a material adverse
effect on the business, operations, property, assets,
liabilities, condition (financial or otherwise) or prospects of
the Borrowers taken as a whole or the Borrowers and their
Restricted Subsidiaries taken as a whole, it being understood
that any determination of whether a Material Adverse Effect has
occurred shall take into account, inter alia, (x) any available
indemnities and (y) the timing and likelihood of payments
thereunder.
"Maximum Swingline Amount" shall mean $15,000,000.
"Mortgage" shall mean and include each Existing
Mortgage, as amended pursuant to the respective Mortgage
Amendment, each New Mortgage and, after the execution and
delivery thereof, each Additional Mortgage, in each case as same
may be amended, modified or supplemented from time to time.
"Mortgage Amendments" shall have the meaning provided
in Section 5.11.
"Mortgage Policies" shall have the meaning provided in
Section 5.11.
"Mortgaged Property" shall have the meaning provided in
Section 5.11 and, after the execution and delivery of any
Additional Mortgage, shall include the respective Additional
Mortgaged Property.
"Multiemployer Plan" shall mean a multiemployer plan as
defined in Section 4001(a)(3) of ERISA, which is maintained or
contributed to by (or to which there is an obligation to
contribute of) the Borrowers or a Subsidiary of the Borrowers or
an ERISA Affiliate and, except for a Spunoff Plan, each such plan
for the five year period immediately following the latest date on
which the Borrowers, any Subsidiaries of the Borrowers or any
ERISA Affiliates maintained, contributed to or had an obligation
to contribute to such plan.
"NationsBank" shall have the meaning provided in the
preamble hereto.
"Net Cash Proceeds" shall mean for any event requiring
a repayment pursuant to Section 4.02, the gross cash proceeds
(including any cash received by way of deferred payment pursuant
to a promissory note, receivable or otherwise, but only as and
when received) received from such event, net of reasonable
transaction costs (including, as applicable, any underwriting,
brokerage or other customary commissions and reasonable legal,
advisory and other fees and expenses associated therewith)
received from any such event.
"Net Sale Proceeds" shall mean for any sale of assets,
the gross cash proceeds (including any cash received by way of
deferred payment pursuant to a promissory note, receivable or
otherwise, but only as and when received) received from any sale
of assets, net of reasonable transaction costs (including,
without limitation, any underwriting, brokerage or other
customary selling commissions and reasonable legal, advisory and
other fees and expenses, including title and recording expenses,
associated therewith) and payments of unassumed liabilities
relating to the assets sold at the time of, or within 30 days
after, the date of such sale, the amount of such gross cash pro-
ceeds required to be used to repay any Indebtedness (other than
Indebtedness of the Banks pursuant to this Agreement) which is
secured by the respective assets which were sold, and the
estimated marginal increase in income taxes which will be payable
by INTERCO's consolidated group with respect to the fiscal year
in which the sale occurs as a result of such sale; but excluding
any portion of any such gross cash proceeds which INTERCO deter-
mines in good faith should be reserved for post-closing adjust-
ments (to the extent INTERCO delivers to the Banks a certificate
signed by its chief financial officer, controller or chief
accounting officer as to such determination), it being understood
and agreed that on the day that all such post-closing adjustments
have been determined, (which shall not be later than six months
following the date of the respective asset sale), the amount (if
any) by which the reserved amount in respect of such sale or
disposition exceeds the actual post-closing adjustments payable
by INTERCO or any of its Restricted Subsidiaries shall constitute
Net Sale Proceeds on such date received by INTERCO and/or any of
its Restricted Subsidiaries from such sale, lease, transfer or
other disposition.
"New Banks" shall mean each of the Persons listed on
Schedule I which is not a Continuing Bank.
"New Fluvanna Letter of Credit" shall mean a letter of
credit issued by NationsBank pursuant to this Agreement on or
after the Restatement Effective Date in support of (x) the
Existing IRBs or (y) the Existing Fluvanna Letter of Credit.
"New Mortgage Policies" shall mean the mortgage title
insurance policies issued in respect of each New Mortgaged
Property.
"New Mortgaged Property" shall have the meaning
provided in Section 5.11(iii).
"New Mortgages" shall mean those Mortgages that have
been granted with respect to the New Mortgaged Properties.
"Non-Continuing Bank" shall have the meaning provided
in Section 13.18.
"Non-Defaulting Bank" shall mean and include each Bank
other than a Defaulting Bank.
"Note" shall mean each Term Note, each Revolving Note
and the Swingline Note.
"Notice of Borrowing" shall have the meaning provided
in Section 1.03.
"Notice of Conversion" shall have the meaning provided
in Section 1.06.
"Notice Office" shall mean the office of the
Administrative Agent located at 000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx
Xxxx 00000, Attention: Xxxx Xxx Xxxxx or such other office as
the Administrative Agent may hereafter designate in writing as
such to the other parties hereto.
"Obligations" shall mean all amounts owing to the
Administrative Agent, the Collateral Agent, any Issuing Bank or
any Bank pursuant to the terms of this Agreement or any other
Credit Document.
"Original Banks" shall mean each Person which was a
Bank under, and as defined in, the Original Credit Agreement.
"Original Credit Agreement" shall have the meaning
provided in the recitals to this Agreement.
"Original Receivables Facility" shall mean the
Receivables Facility as defined in the Original Credit Agreement.
"Original Revolving Loans" shall mean the "Revolving
Loans" under, and as defined in, the Original Credit Agreement.
"Original Swingline Loans" shall mean the "Swingline
Loans" under, and as defined in, the Original Credit Agreement.
"Original Term Loans" shall mean the "Term Loans"
under, and as defined in, the Original Credit Agreement.
"Participant" shall have the meaning provided in
Section 2.04(a).
"Pay-In-Kind Preferred Stock" means any Preferred Stock
where all dividends with respect thereto may, at the option of
the issuer thereof, be paid through the issuance of additional
shares of preferred stock of the same series.
"Payment Office" shall mean the office of the
Administrative Agent located at Xxx Xxxxxxx Xxxxx Xxxxx, Xxx
Xxxx, Xxx Xxxx 00000, or such other office as the Administrative
Agent may hereafter designate in writing as such to the other
parties hereto.
"PBGC" shall mean the Pension Benefit Guaranty
Corporation established pursuant to Section 4002 of ERISA, or any
successor thereto.
"Percentage" of any Bank at any time shall mean a
fraction (expressed as a percentage) the numerator of which is
the Revolving Loan Commitment of such Bank at such time and the
denominator of which is the Total Revolving Loan Commitment at
such time, provided that if the Percentage of any Bank is to be
determined after the Total Revolving Loan Commitment has been
terminated, then the Percentages of the Banks shall be determined
immediately prior (and without giving effect) to such
termination.
"Permitted Acquired Debt" shall mean Indebtedness
(other than Permitted Subordinated Indebtedness and Permitted
Unsecured Indebtedness incurred pursuant to Sections 9.04(ii) and
(iii)) assumed or acquired in connection with a Permitted
Acquisition as permitted under this Agreement.
"Permitted Acquisition" shall mean the acquisition by
the Borrowers or any of their Restricted Subsidiaries of assets
constituting part of or an entire business or division of any
Person not already a Subsidiary of the Borrowers or of 100% of
the capital stock of any such Person which Person shall, as a
result of such acquisition, become a Restricted Subsidiary,
provided that (A) the consideration paid by the Borrowers and/or
their Restricted Subsidiaries consists solely of cash or common
stock or Qualified Preferred Stock or Disqualified Preferred
Stock permitted pursuant to Section 9.13(b) of INTERCO, the
issuance of Indebtedness otherwise permitted in Section 9.04 and
the assumption/acquisition of any Permitted Acquired Debt
(calculated at face value) relating to such business, division or
Person, (B) the assets acquired, or the business of the Person
whose stock is acquired, shall be in the same line of business in
which the Borrowers and their Restricted Subsidiaries are already
engaged, and (C) in the case of the acquisition of 100% of the
capital stock of any Person, such Person shall own no capital
stock of any other Person unless either (x) such Person owns 100%
of the capital stock of such other Person or (y) (1) such Person
and/or its Wholly-Owned Subsidiaries own 80% of the consolidated
assets or capital stock of such Person and its Subsidiaries and
(2) any non-Wholly Owned Subsidiary of such Person was non-Wholly
Owned prior to the date of such Permitted Acquisition of such
Person (it being understood and agreed that investments by
Subsidiaries shall be permitted in accordance with the provisions
of Section 9.05). Notwithstanding anything to the contrary con-
tained in the immediately preceding sentence, any acquisition
shall be a Permitted Acquisition only if all requirements of
Sections 8.14 and 9.02(vii) applicable to Permitted Acquisitions
are met with respect thereto.
"Permitted Debt Agreements" shall have the meaning
provided in Section 5.05.
"Permitted Encumbrance" shall mean, with respect to any
Mortgaged Property, such exceptions to title as are set forth in
the title insurance policy or title commitment delivered with
respect thereto, all of which exceptions must be acceptable to
the Administrative Agent in its reasonable discretion.
"Permitted Liens" shall have the meaning provided in
Section 9.01.
"Permitted Subordinated Indebtedness" shall mean any
Indebtedness (including, without limitation, any Permitted
Subordinated Indebtedness incurred in connection with the
creation of a replacement Receivables Facility) which is
subordinated on terms reasonably satisfactory to the
Administrative Agent and the Required Banks to all Obligations
hereunder and any other obligations secured pursuant to the
Security Documents and incurred by the Borrowers, so long as (i)
based on calculations made by the Borrowers on a Pro Forma Basis
after giving effect to the incurrence of such Indebtedness, no
Default or Event of Default will exist under, or would have
existed under the periods covered by, the financial covenants
contained in Sections 9.08 through 9.10, inclusive, of this
Agreement, (ii) based on good faith projections prepared by the
Borrowers for the period from the date of the incurrence of such
Indebtedness to the date which is one year thereafter, the level
of financial performance measured by the covenants set forth in
Sections 9.08 through 9.10 inclusive shall be better than or
equal to such level as would be required to provide that no
Default or Event of Default would exist under the financial
covenants contained in Sections 9.08 through 9.10, inclusive, of
this Agreement as compliance with such covenants would be
required through the date which is one year from the date of the
incurrence of such Indebtedness, (iii) INTERCO shall furnish to
the Administrative Agent for distribution to each of the Banks an
officer's certificate by the chief financial officer or treasurer
of INTERCO certifying to the best of his knowledge as to
compliance with the requirements of the preceding clauses (i) and
(ii) and containing the pro forma calculations and projections
required by the preceding clauses (i) and (ii), (iv) such
Indebtedness shall require no amortization, sinking fund payment
or any other scheduled maturity of the principal amount thereof
on any date which is earlier than the date occurring one year
after the C Term Loan Maturity Date and (v) all other provisions
of such Indebtedness (including, without limitation, covenants,
defaults and remedies) in the documents governing or evidencing
the same are reasonably satisfactory to the Administrative Agent
and the Required Banks. To the extent the preceding sentence
requires terms of Permitted Subordinated Indebtedness to be
satisfactory to the Required Banks, such terms shall be deemed
satisfactory to the Required Banks unless objected to by the
Required Banks in writing on or prior to the date which is 20
Business Days after the documentation therefor is delivered to
the Banks. Notwithstanding anything to the contrary contained
above in the definition of "Permitted Subordinated Indebtedness",
all Permitted Subordinated Indebtedness shall be required to
constitute Indebtedness for borrowed money (where 100% of the
consideration received for the issuance of such Indebtedness is
cash), except that Permitted Subordinated Indebtedness may be
issued directly as consideration in connection with a Permitted
Acquisition so long as (i) the proviso to Section 9.04(ii)(x) has
been complied with and (ii) the aggregate principal amount of all
Permitted Subordinated Indebtedness issued after the Restatement
Effective Date as consideration in connection with Permitted
Acquisitions, when added to the sum of (x) the aggregate
liquidation preference or amount of all Disqualified Preferred
Stock so issued after the Restatement Effective Date as
consideration in connection with Permitted Acquisitions pursuant
to Section 9.13(b)(i), (y) the aggregate principal amount of all
Permitted Subordinated Indebtedness issued or incurred after the
Restatement Effective Date but not issued as consideration in
connection with Permitted Acquisitions to the extent the Net Cash
Proceeds therefrom have not been required to be used to repay
Term Loans as a result of clause (w)(ii) of the first
parenthetical of Section 4.02(g), and (z) the aggregate
liquidation preference or amount of all Disqualified Preferred
Stock issued after the Restatement Effective Date pursuant to
Section 9.13(b)(i) but not issued as consideration in connection
with Permitted Acquisitions, to the extent the Net Cash Proceeds
therefrom have not been required to be used to repay Term Loans
as a result of clause (v)(y) of the first parenthetical of
Section 4.02(e), does not exceed $50,000,000.
"Permitted Unsecured Indebtedness" shall mean any
general unsecured Indebtedness incurred by the Borrowers, so long
as (i) based on calculations made by the Borrowers on a Pro Forma
Basis after giving effect to the incurrence of such Indebtedness,
no Default or Event of Default will exist under, or would have
existed under the periods covered by, the financial covenants
contained in Sections 9.08 through 9.10, inclusive, of this
Agreement, (ii) based on good faith projections prepared by the
Borrowers for the period from the date of the incurrence of such
Indebtedness to the date which is one year thereafter, the level
of financial performance measured by the covenants set forth in
Sections 9.08 through 9.10 inclusive shall be better than or
equal to such level as would be required to provide that no
Default or Event of Default would exist under the financial
covenants contained in Sections 9.08 through 9.10, inclusive, of
this Agreement as compliance with such covenants would be
required through the date which is one year from the date of the
incurrence of such Indebtedness, (iii) INTERCO shall furnish to
the Administrative Agent for distribution to each of the Banks an
officer's certificate by the chief financial officer or treasurer
of INTERCO certifying to the best of his knowledge as to
compliance with the requirements of the preceding clauses (i) and
(ii) and containing the pro forma calculations required by the
preceding clauses (i) and (ii), (iv) the average life of such
Indebtedness at the time of the incurrence thereof shall be at
least one year beyond the average life of the Term Loans then
outstanding and the Total Revolving Commitments (assuming maximum
utilization thereof) and (v) such Indebtedness shall not contain
any provision (including, without limitation, covenants, defaults
and remedies) in the documents governing or evidencing the same
which, in the opinion of the Administrative Agent, are more
restrictive than the provisions in the Credit Documents.
Notwithstanding anything to the contrary contained above in the
definition of "Permitted Unsecured Indebtedness", all Permitted
Unsecured Indebtedness shall be required to constitute
indebtedness for borrowed money where 100% of the consideration
received for the issuance for such Indebtedness is cash, except
that Permitted Unsecured Indebtedness may be issued directly as
consideration in connection with Permitted Acquisitions so long
as the proviso to Section 9.04(iii) has been complied with.
"Person" shall mean any individual, partnership, joint
venture, firm, corporation, association, trust or other
enterprise or any government or political subdivision or any
agency, department or instrumentality thereof.
"Plan" shall mean any single-employer plan, as defined
in Section 4001 of ERISA, which is maintained or contributed to
by (or to which there is an obligation to contribute of), the
Borrowers or a Subsidiary of the Borrowers or an ERISA Affiliate,
and except for a Spunoff Plan, each such plan for the five year
period immediately following the latest date on which the
Borrowers, a Subsidiary of the Borrowers or an ERISA Affiliate
maintained, contributed or had an obligation to contribute to
such plan.
"Pledge Agreement" shall have the meaning provided in
Section 5.09.
"Pledge Agreement Collateral" shall mean all
"Collateral" as defined in the Pledge Agreement.
"Pledged Securities" shall mean "Pledged Securities" as
defined in the Pledge Agreement.
"Preferred Stock," as applied to the capital stock of
any Person, means capital stock of such Person (other than common
stock of such Person) of any class or classes (however designed)
that ranks prior, as to the payment of dividends or as to the
distribution of assets upon any voluntary or involuntary
liquidation, dissolution or winding up of such Person, to shares
of capital stock of any other class of such Person, and shall
include any Qualified Preferred Stock and Disqualified Preferred
Stock.
"Prime Lending Rate" shall mean the rate which BTCo
announces from time to time as its prime lending rate, the Prime
Lending Rate to change when and as such prime lending rate
changes. The Prime Lending Rate is a reference rate and does not
necessarily represent the lowest or best rate actually charged to
any customer. BTCo may make commercial loans or other loans at
rates of interest at, above or below the Prime Lending Rate.
"Pro Forma Basis" shall mean, as to any Person, for any
of the following events which occur subsequent to the
commencement of a period for which the financial effect of such
event is being calculated, and giving effect to the event for
which such calculation is being made, such calculation as will
give pro forma effect to such event as if same had occurred at
the beginning of such period of calculation, and
(i) for purposes of the foregoing calculation, the
transaction giving rise to the need to calculate the pro
forma effect to any of the following events shall be assumed
to have occurred on the first day of the four fiscal quarter
period last ended before the occurrence of the respective
event for which such pro forma effect is being determined
(the "Reference Period"), and
(ii) in making any determination with respect to the
incurrence or assumption of any Indebtedness or issuance of
any Disqualified Preferred Stock during the Reference Period
or subsequent to the Reference Period and on or prior to the
date of the transaction referenced in clause (i) above (the
"Transaction Date"), (w) all Indebtedness or Disqualified
Preferred Stock (including the Indebtedness or Disqualified
Preferred Stock incurred or assumed and for which the
financial effect is being calculated) incurred or
permanently repaid during the Reference Period shall be
deemed to have been incurred or repaid at the beginning of
such period, (x) Consolidated Net Interest Expense of such
Person attributable to interest or dividends on any
Indebtedness or Disqualified Preferred Stock, as the case
may be, bearing floating interest rates should be computed
on a pro forma basis as if the rate in effect on the
Transaction Date had been the applicable rate for the entire
period, (y) Consolidated Net Interest Expense of such Person
attributable to interest on any Indebtedness under any
revolving credit facility which was in effect during the
respective Reference Period shall be computed on a pro forma
basis based upon the average daily balance of such
Indebtedness outstanding during the applicable period (or,
if shorter, the portion of the period during which the
revolving credit facility was in effect) and (z)
Consolidated Net Interest Expense will be increased or
reduced by the net cost (including amortization of discount)
or benefit (after giving effect to amortization of discount)
associated with the Interest Rate Protection Agreements,
which will remain in effect for the twelve-month period
after the Transaction Date and which shall have the effect
of fixing the interest rate on the date of computation, and
(iii) in making any determination of Consolidated
EBITDA, pro forma effect shall be given to any Permitted
Acquisition or Significant Divestiture which occurred during
the Reference Period or subsequent to the Reference Period
and prior to the Transaction Date, Consolidated EBITDA shall
be determined as if such Permitted Acquisition or
Significant Divestiture occurred on the first day of the
Reference Period, taking into account cost savings and
expenses which would otherwise be accounted for as an
adjustment pursuant to Article 11 of Regulation S-X under
the Securities Act, as if such cost savings or expenses were
realized on the first day of the Reference Period.
"Projections" shall have the meaning provided in
Section 5.15(b).
"Purchase and Contribution Agreement" shall mean the
Purchase and Contribution Agreement, dated as of November 15,
1994 as amended and restated as of December 29, 1995, among
Broyhill, Lane, Action and Thomasville and the Receivables
Subsidiary, as same may be further amended, modified or
supplemented from time to time in compliance with Section 9.11,
or as replaced in compliance with the definition of Receivables
Facility.
"Qualified Preferred Stock" means any Pay-In-Kind
Preferred Stock of INTERCO, or any other Preferred Stock of
INTERCO, the express terms of which shall provide that Dividends
thereon shall not be required to be paid in cash at any time that
such cash payment would be prohibited by the terms of this
Agreement (and any refinancings, replacements or extensions
hereof) and in either case which, by its terms (or by the terms
of any security into which it is convertible or for which it is
exchangeable), or upon the happening of any event (including an
event which would constitute a Change of Control), cannot mature
(excluding any maturity as the result of an optional redemption
by the issuer thereof) and is not mandatorily redeemable,
pursuant to a sinking fund obligation or otherwise, and is not
redeemable, or required to be repurchased, at the sole option of
the holder thereof (including, without limitation, upon the
occurrence of an event which would constitute a Change of
Control), in whole or in part, on or prior to the first
anniversary of the C Term Loan Maturity Date.
"Quarterly Payment Date" shall mean the last Business
Day of each June, September, December and March, occurring after
the Restatement Effective Date.
"RCRA" shall mean the Resource Conservation and
Recovery Act, as the same may be amended from time to time, 42
U.S.C. Section 6901 et seq.
"Real Property" of any Person shall mean all the right,
title and interest of such Person in and to land, improvements
and fixtures, including Leaseholds.
"Receivables Documents" shall mean the Receivables
Purchase Agreements, the Purchase and Contribution Agreement and
any related documentation entered into by the Borrowers and their
Restricted Subsidiaries, the Receivables Subsidiary and/or the
Receivables Purchasers in connection with the Receivables
Facility.
"Receivables Facility" shall mean the arrangement
pursuant to which (x) each of Broyhill, Lane, Action and
Thomasville and its respective Subsidiaries will from time to
time sell accounts receivable to the Receivables Subsidiary and
(y) the Receivables Subsidiary shall sell interests in the
receivables to the Receivables Purchasers, or obtain subordinated
loans secured by the receivables from the Receivables Purchasers,
as more fully set forth in the Receivables Documents; provided,
that the Receivables Facility may be replaced after the date
hereof so long as the Administrative Agent is reasonably
satisfied that the terms and conditions of any replacement
facility are as favorable or more favorable to INTERCO and its
Restricted Subsidiaries and to the Banks (and in any event
contains no greater degree of recourse to INTERCO and its
Restricted Subsidiaries (other than the Receivables Subsidiary))
than the terms and conditions of the current Receivables Facility
(in which event such replacement facility shall be deemed to be
the Receivables Facility hereunder).
"Receivables Purchase Agreements" shall mean and
include the Atlantic Receivables Purchase Agreement, the
Alternate Receivables Purchase Agreement and the Subordinated
Loan Agreement.
"Receivables Purchaser" shall mean and include (i) with
respect to the Alternate Receivables Purchase Agreement, Credit
Lyonnais and (ii) with respect to the Atlantic Receivables
Purchase Agreement, Atlantic and Credit Lyonnais and (iii) with
respect to the Subordinated Loan Agreement, Credit Lyonnais and
their respective successors and assigns (in the event that the
Receivables Facility is replaced, any replacement receivables
purchasers shall be deemed to be the Receivables Purchasers
hereunder).
"Receivables Subsidiary" shall mean INTERCO Receivables
Corp., the special purpose subsidiary formed by Broyhill, Lane
and Action and owned by Broyhill, Lane, Action and Thomasville to
purchase and receive contributions of receivables from each of
Broyhill, Lane, Action and Thomasville and their respective other
Restricted Subsidiaries pursuant to the Receivables Facility.
"Recovery Event" shall mean the receipt by INTERCO or
any of its Restricted Subsidiaries of any cash insurance proceeds
or condemnation award payable (i) by reason of theft, loss,
physical destruction or damage or any other similar event with
respect to any property or assets of the Borrowers or any of its
Subsidiaries and (ii) under any policy of insurance required to
be maintained under Section 8.03.
"Reduction Percentage" shall mean (i) initially zero
and (ii) from and after each day of delivery of any certificate
delivered in accordance with the following sentence indicating an
entitlement to a Reduction Percentage other than zero (each, a
"Start Date") to and including the applicable End Date described
below, the percentage set forth below opposite the Leverage Ratio
indicated to have been achieved in any certificate delivered in
accordance with the following sentence:
Leverage Interest
Ratio Reduction Discount
-------- ------------------
Equal to or .375%
greater than
3.25:1 but less
than 3.50:1
Equal to or .500%
greater than
3.00:1 but less
than 3.25:1
Equal to or .625%
greater than
2.75:1 but less
than 3.00:1
Equal to or .750%
greater than
2.50:1 but less
than 2.75:1
Equal to or .875%
greater than
2.25:1 but less
than 2.50:1
Equal to or 1.00%
greater than 2.00:1
but less than 2.25:1
Less than 2.0:1 1.125%
The Leverage Ratio shall be determined based on the delivery of a
certificate of the Borrowers by an Authorized Representative of
the Borrowers to the Administrative Agent (with a copy to be sent
by the Borrowers to each Bank), within 30 days of the last day of
any fiscal quarter of INTERCO (beginning after the first such
fiscal quarter ended in 1996), which certificate shall set forth
the calculation of the Leverage Ratio for the fiscal quarter
ended immediately prior to the relevant Start Date and the
Reduction Percentage which shall be thereafter applicable (until
same is changed or ceases to apply in accordance with the
following sentences). The Reduction Percentage so determined
shall apply, except as set forth in the succeeding sentence, from
the Start Date to the earlier of (x) the date on which the next
certificate is delivered to the Administrative Agent and (y) the
date which is 30 days following the last day of the fiscal
quarter in which the previous Start Date occurred (the "End
Date"), at which time, if no certificate has been delivered to
the Administrative Agent indicating an entitlement to a Reduction
Percentage other than zero (and thus commencing a new Start
Date), the Reduction Percentage shall be reduced to zero. Not-
withstanding anything to the contrary contained above in this
definition, the Reduction Percentage shall be reduced to zero at
all times during which there shall exist a Default or an Event of
Default.
"Refinancing" shall mean all repayments and
refinancings of Indebtedness in connection with the Transaction.
"Register" shall have the meaning provided in Section
13.17.
"Regulation D" shall mean Regulation D of the Board of
Governors of the Federal Reserve System as from time to time in
effect and any successor to all or a portion thereof establishing
reserve requirements.
"Regulation G" shall mean Regulation G of the Board of
Governors of the Federal Reserve System as from time to time in
effect and any successor to all or a portion thereof.
"Regulation T" shall mean Regulation T of the Board of
Governors of the Federal Reserve System as from time to time in
effect and any successor to all or a portion thereof.
"Regulation U" shall mean Regulation U of the Board of
Governors of the Federal Reserve System as from time to time in
effect and any successor to all or a portion thereof.
"Regulation X" shall mean Regulation X of the Board of
Governors of the Federal Reserve System as from time to time in
effect and any successor to all or a portion thereof.
"Release" means any spilling, leaking, pumping, pour-
ing, emitting, emptying, discharging, injecting, escaping,
leaching, dumping, disposing or migration into the environment.
"Replaced Bank" shall have the meaning provided in
Section 1.13.
"Replacement Bank" shall have the meaning provided in
Section 1.13.
"Reportable Event" shall mean an event described in
Section 4043(c) of ERISA with respect to a Plan other than those
events as to which the 30-day notice period is waived under
subsection .13, .14, .16, .18, .19 or .20 of PBGC Regulation
Section 2615.
"Required Appraisal" shall have the meaning provided in
Section 8.11(g).
"Required Banks" shall mean Non-Defaulting Banks, the
sum of whose outstanding Term Loans (or, if prior to the
Restatement Effective Date, Term Loan Commitments) and Revolving
Loan Commitments (or after the termination thereof, outstanding
Revolving Loans and Adjusted Percentage of Swingline Loans and
Letter of Credit Outstandings) represent greater than 50% of the
sum of all outstanding Term Loans (or, if prior to the
Restatement Effective Date, Term Loan Commitments) of Non-
Defaulting Banks and the Adjusted Total Revolving Loan Commitment
(or after the termination thereof, the sum of the then total
outstanding Revolving Loans of Non-Defaulting Banks and the
aggregate Adjusted Percentages of all Non-Defaulting Banks of the
total outstanding Swingline Loans and Letter of Credit
Outstandings at such time).
"Required Supermajority Banks" at any time shall mean
those Banks which would constitute the Required Banks under, and
as defined in, this Agreement if the term "50%" contained therein
were changed to "66-2/3%."
"Restatement Effective Date" shall have the meaning
provided in Section 13.10.
"Restricted Junior Payment" shall have the meaning
provided in Section 9.11(a)(i).
"Restricted Subsidiaries" shall mean, (x) all of the
Subsidiaries of the Borrowers and their respective Subsidiaries
in existence on the Restatement Effective Date and (y) any
Subsidiary (other than an Unrestricted Subsidiary) that is
created, established or acquired after the Restatement Effective
Date.
"Returned Investment Amount" shall mean, with respect
to all Investments made pursuant to Section 9.05(vii) after the
Restatement Effective Date in Persons which are Unrestricted
Subsidiaries or are not Restricted Subsidiaries, the aggregate
amount of cash received by INTERCO and its Restricted
Subsidiaries which are Wholly-Owned Subsidiaries of INTERCO
representing a return of capital of such Investment, in each case
to the extent the amount of capital so returned is not, and will
not be, included in Consolidated Net Income.
"Returns" shall have the meaning provided in Section
7.09.
"Revolving Loan" shall have the meaning provided in
Section 1.01(d).
"Revolving Loan Commitment" shall mean, for each Bank,
the amount set forth opposite such Bank's name in Schedule I
hereto directly below the column entitled "Revolving Loan
Commitment," as same may be (x) reduced from time to time
pursuant to Sections 3.02, 3.03, 4.02 and/or 10 or (y) adjusted
from time to time as a result of assignments to or from such Bank
pursuant to Section 1.13 or 13.04(b).
"Revolving Loan Maturity Date" shall mean December 29,
2001.
"Revolving Note" shall have the meaning provided in
Section 1.05(a).
"Scheduled Repayment Date" shall mean each date upon
which any Scheduled Repayment is due and payable.
"Scheduled Repayments" shall mean the A Term Loan
Scheduled Repayments, the B Term Loan Scheduled Repayments and
the C Term Loan Scheduled Repayments.
"SEC" shall have the meaning provided in Section
8.01(h).
"Section 4.04(b)(ii) Certificate" shall have the
meaning provided in Section 4.04(b)(ii).
"Secured Creditors" shall have the meaning assigned
that term in the Security Documents.
"Securities Act" shall mean the Securities Act of 1933,
as amended.
"Security Agreement" shall have the meaning provided in
Section 5.10.
"Security Agreement Collateral" shall mean all
"Collateral" as defined in the Security Agreement (which shall
exclude all assets of the Receivables Subsidiary).
"Security Document" shall mean the Pledge Agreement,
the Security Agreement, each Mortgage and, after the execution
and delivery thereof, each Additional Mortgage and each
Additional Security Document.
"Senior Debt Leverage Ratio" shall mean on any date a
ratio calculated as provided in the definition of Leverage Ratio
contained herein; provided that the term "Consolidated Senior
Debt" shall be deemed inserted in lieu of the term "Consolidated
Debt" in clause (i) of the definition of Leverage Ratio.
"Shareholders' Agreements" shall have the meaning
provided in Section 5.05.
"Significant Divestiture" shall mean any sale or other
disposition of assets by INTERCO and/or its Restricted
Subsidiaries, the fair market value of which exceeds $500,000 for
any transaction (or series of related transactions).
"Solvent Entity" shall have the meaning provided in
Section 7.05(d).
"Spunoff Plan" shall mean any employee benefit plan as
defined in Section 3(3) of ERISA which INTERCO ceased to maintain
or contribute to pursuant to the Distribution and Services
Agreement dated as of November 17, 1994.
"Standby Letter of Credit" shall mean any Standby
Letter of Credit or similar instrument issued or deemed issued
for the account of any Borrower pursuant to Section 2.01 for the
purpose of supporting L/C Supportable Obligations.
"Standby Letter of Credit Request" shall have the
meaning provided in Section 2.03(a).
"Start Date" shall have the meaning provided in the
definition of `Reduction Percentage.'
"Stated Amount" of (x) each Letter of Credit shall, at
any time, mean the maximum amount available to be drawn there-
under (in each case determined without regard to whether any con-
ditions to drawing could then be met) and (y) each Acceptance
shall mean the amount of each such Acceptance.
"Stock Purchase Agreement" shall mean the Stock
Purchase Agreement, dated as of November 18, 1995, by and among
Xxxxxxxxx World Industries, Inc., Xxxxxxxxx Enterprises, Inc. and
INTERCO.
"Subordinated Loan Agreement" shall mean the
Subordinated Loan Agreement in the form annexed to the Atlantic
Receivables Purchase Agreement on the Restatement Effective Date.
"Subsidiary" shall mean, as to any Person, (i) any
corporation more than 50% of whose stock of any class or classes
having by the terms thereof ordinary voting power to elect a
majority of the directors of such corporation (irrespective of
whether or not at the time stock of any class or classes of such
corporation shall have or might have voting power by reason of
the happening of any contingency) is at the time owned by such
Person and/or one or more Subsidiaries of such Person and (ii)
any partnership, association, joint venture or other entity in
which such Person and/or one or more Subsidiaries of such Person
has more than a 50% equity interest at the time. As used in this
Agreement, the term "Subsidiary" shall include or apply to any
Restricted Subsidiary and any Unrestricted Subsidiary.
"Subsidiary Guarantor" shall mean Broyhill Transport,
Inc., a North Carolina corporation, Lane Advertising, Inc., a
Virginia corporation, Action Industries, Inc., a Virginia
corporation, Action Transport, Inc., a Delaware corporation,
Thomasville Enterprises, Inc., a Vermont corporation, Fayette
Enterprises, Inc., a Mississippi corporation, Xxxxxx'x, Inc., a
Delaware corporation, Thomasville Chair Company, a North Carolina
corporation, Thomasville Home Furnishings, Inc., a Delaware
corporation, and Thomasville Upholstery, Inc., a Delaware
corporation and any Restricted Subsidiary of any Borrower which
executes a guarantee after the Restatement Effective Date
pursuant to Section 8.11, but shall in any event exclude the
Receivables Subsidiary, Thomasville Furniture Latin America, S.A.
and Interfashions Industries, S.A. and its Subsidiaries.
"Subsidiary Guaranty" shall have the meaning provided
in Section 5.08.
"Supermajority Banks" of any Tranche shall mean those
Non-Defaulting Banks which would constitute the Required Banks
under, and as defined in, this Agreement if (x) all outstanding
Obligations of the other Tranches under this Agreement were
repaid in full and all Commitments with respect thereto were
terminated and (y) the term "50%" contained therein were changed
to "66-2/3%."
"Surviving Guaranties" shall mean the guarantee
obligations of INTERCO with respect to the leases described in
Schedule XV hereto.
"Swingline Expiry Date" shall mean the date which is
two Business Days prior to the Revolving Loan Maturity Date.
"Swingline Loan" shall have the meaning provided in
Section 1.01(e).
"Swingline Note" shall have the meaning provided in
Section 1.05(a).
"Syndication Agent" shall mean NationsBank, in its
capacity as Syndication Agent for the Banks hereunder.
"Tax Sharing Agreement" shall mean any tax sharing,
disaffiliation or tax allocation agreement entered into among the
Borrowers, Converse and Florsheim.
"Taxes" shall have the meaning provided in Section
4.04(a).
"Term Loan Commitments" shall mean the A Term Loan
Commitments, B Term Loan Commitments and C Term Loan Commitments.
"Term Loans" shall mean each of the A Term Loans, B
Term Loans and C Term Loans.
"Term Notes" shall mean the A Term Notes, B Term Notes
and C Term Notes.
"Thomasville" shall have the meaning provided in the
first paragraph of this Agreement.
"Total A Term Loan Commitment" shall mean, at any time,
the sum of the A Term Loan Commitments of each of the Banks.
"Total B Term Loan Commitment" shall mean, at any time,
the sum of the B Term Loan Commitments of each of the Banks.
"Total C Term Loan Commitment" shall mean, at any time,
the sum of the C Term Loan Commitments of each of the Banks.
"Total Commitment" shall mean, at any time, the sum of
the Commitments of each of the Banks.
"Total Revolving Loan Commitment" shall mean, at any
time, the sum of the Revolving Loan Commitments of each of the
Banks.
"Total Term Loan Commitment" shall mean, at any time,
the sum of the A Term Loan Commitments, the B Term Loan
Commitments and the C Term Loan Commitments of each of the Banks.
"Total Unutilized Revolving Loan Commitment" shall
mean, at any time, an amount equal to the remainder of (x) the
then Total Revolving Loan Commitment, less (y) the sum of the
aggregate principal amount of Revolving Loans and Swingline Loans
outstanding plus the then aggregate amount of Letter of Credit
Outstandings.
"Trade Letter of Credit" shall mean any Letter of
Credit or similar instrument issued for the account of any
Borrower pursuant to Section 2.01 for the purpose of providing
the primary payment mechanism in connection with the purchase of
any materials, goods or services by the Borrowers or their
Restricted Subsidiaries in the ordinary course of business of the
Borrowers or their Restricted Subsidiaries.
"Trade Letter of Credit Request" shall have the meaning
provided in Section 2.03(a).
"Tranche" shall mean the respective facility and
commitment utilized in making Loans, with there being five
separate Tranches, i.e., A Term Loans, B Term Loans, C Term
Loans, Revolving Loans and Swingline Loans.
"Transaction" shall mean (i) the consummation of the
Acquisition, (ii) the amendment and restatement of the Original
Credit Agreement in the form of this Agreement as provided
herein, (iii) the incurrence of the Loans hereunder on the
Restatement Effective Date and (iv) the consummation of the
Refinancing.
"Transaction Documents" shall mean all Documents (other
than the Credit Documents) and agreements and instruments entered
into in connection with the Transaction.
"Type" shall mean the type of Loan determined with
regard to the interest option applicable thereto, i.e., whether a
Base Rate Loan or a Eurodollar Loan.
"UCC" shall mean the Uniform Commercial Code as from
time to time in effect in the relevant jurisdiction.
"Unfunded Current Liability" of any Plan means the
amount, if any, by which the actuarial present value of the
accumulated benefits under the Plan as of the close of its most
recent plan year each exceeds the fair market value of the assets
allocable thereto, each determined in accordance with Statement
of Financial Accounting Standards No. 87, based upon the
actuarial assumptions used by the Plan's actuary in the most
recent annual valuation of the Plan.
"United States" and "U.S." shall each mean the United
States of America.
"Unpaid Drawing" shall have the meaning provided for in
Section 2.05(a).
"Unrestricted Subsidiary" shall mean any Wholly-Owned
Subsidiary of INTERCO that is acquired or created after the
Restatement Effective Date and designated by INTERCO as an
Unrestricted Subsidiary hereunder by written notice to the
Administrative Agent; provided that INTERCO shall only be
permitted to so designate a new Unrestricted Subsidiary after the
Restatement Effective Date and so long as (i) no Default or Event
of Default exists or would result therefrom and (ii) 100% of the
capital stock of such newly-designated Unrestricted Subsidiary is
owned by INTERCO or another Unrestricted Subsidiary and all of
the provisions of Section 9.12 shall have been complied with in
respect of such newly-designated Unrestricted Subsidiary and such
Unrestricted Subsidiary is capitalized (to the extent capitalized
by INTERCO or any of its Restricted Subsidiaries) through
Investments as permitted by, and in compliance with, Section
9.05(vii), with any assets owned by such Unrestricted Subsidiary
at the time of the initial designation thereof to be treated as
Investments made pursuant to Section 9.05(vii), provided that at
the time of the initial Investments by INTERCO in such Subsidiary
(x) INTERCO shall designate such entity as an Unrestricted
Subsidiary in a written notice to the Administrative Agent and
(y) such entity and the Borrowers shall have entered into tax
sharing and management services agreements on a basis reasonably
satisfactory to the Administrative Agent. Additionally, INTERCO
may not designate any Credit Party, the Receivables Subsidiary or
any Subsidiary created or acquired pursuant to a Permitted
Acquisition as an Unrestricted Subsidiary.
"Unutilized Revolving Loan Commitment" with respect to
any Bank, at any time, shall mean such Bank's Revolving Loan
Commitment at such time less the sum of (i) the aggregate
outstanding principal amount of Revolving Loans made by such Bank
and (ii) such Bank's Adjusted Percentage of the Letter of Credit
Outstandings at such time.
"Voting Stock" shall mean, as to any Person, any class
or classes of capital stock of such Person pursuant to which the
holders thereof have the general voting power under ordinary
circumstances to elect at least a majority of the Board of
Directors of such Person.
"Wholly-Owned Subsidiary" shall mean, as to any Person,
(i) any corporation 100% of whose capital stock (other than
director's qualifying shares) is at the time owned by such Person
and/or one or more Wholly-Owned Subsidiaries of such Person and
(ii) any partnership, association, joint venture or other entity
in which such Person and/or one or more Wholly-Owned Subsidiaries
of such Person has a 100% equity interest at such time.
SECTION 12. The Agents.
12.01 Appointment. The Banks hereby designate BTCo as
Administrative Agent (for purposes of this Section 12, the term
"Administrative Agent" shall include BTCo in its capacity as
Collateral Agent pursuant to the Security Documents), Credit
Lyonnais as Documentation Agent and NationsBank as Syndication
Agent, in each case to act as specified herein and in the other
Credit Documents. Each Bank hereby irrevocably authorizes, and
each holder of any Note by the acceptance of such Note shall be
deemed irrevocably to authorize, the Administrative Agent, the
Documentation Agent and the Syndication Agent to take such action
on its behalf under the provisions of this Agreement, the other
Credit Documents and any other instruments and agreements
referred to herein or therein and to exercise such powers and to
perform such duties hereunder and thereunder as are specifically
delegated to or required of the Administrative Agent, the
Documentation Agent or the Syndication Agent by the terms hereof
and thereof and such other powers as are reasonably incidental
thereto. Each of the Administrative Agent, the Documentation
Agent and the Syndication Agent may perform any of its duties
hereunder by or through its respective officers, directors,
agents, employees or affiliates.
12.02 Nature of Duties. The Administrative Agent
shall not have any duties or responsibilities except those
expressly set forth in this Agreement and the Security Documents.
The Documentation Agent and the Syndication Agent, as such, shall
not have any duties or responsibilities under this Agreement or
any Security Document or any other document or matter related
thereto. None of the Administrative Agent, the Documentation
Agent or the Syndication Agent nor any of its respective
officers, directors, agents, employees or affiliates shall be
liable for any action taken or omitted by it or them hereunder or
under any other Credit Document or in connection herewith or
therewith, unless caused by its or their gross negligence or
willful misconduct. The duties of the Administrative Agent, the
Documentation Agent and the Syndication Agent shall be mechanical
and administrative in nature; the Administrative Agent, the
Documentation Agent and the Syndication Agent shall not have by
reason of this Agreement or any other Credit Document a fiduciary
relationship in respect of any Bank or the holder of any Note;
and nothing in this Agreement or any other Credit Document,
expressed or implied, is intended to or shall be so construed as
to impose upon the Administrative Agent, the Documentation Agent
and the Syndication Agent any obligations in respect of this
Agreement or any other Credit Document except as expressly set
forth herein or therein.
12.03 Lack of Reliance on the Administrative Agent,
the Documentation Agent and the Syndication Agent. Independently
and without reliance upon the Administrative Agent, the
Documentation Agent and the Syndication Agent, each Bank and the
holder of each Note, to the extent it deems appropriate, has made
and shall continue to make (i) its own independent investigation
of the financial condition and affairs of INTERCO and its
Subsidiaries in connection with the making and the continuance of
the Loans and the taking or not taking of any action in con-
nection herewith and (ii) its own appraisal of the credit-
worthiness of INTERCO and its Subsidiaries and, except as ex-
pressly provided in this Agreement, the Administrative Agent, the
Documentation Agent and the Syndication Agent shall not have any
duty or responsibility, either initially or on a continuing
basis, to provide any Bank or the holder of any Note with any
credit or other information with respect thereto, whether coming
into its possession before the making of the Loans or at any time
or times thereafter. None of the Administrative Agent, the
Documentation Agent or the Syndication Agent or any of their
respective affiliates nor any of their respective officers,
directors, agents, or employees shall be responsible to any Bank
or the holder of any Note for any recitals, statements, informa-
tion, representations or warranties herein or in any document,
certificate or other writing delivered in connection herewith or
for the execution, effectiveness, genuineness, validity, enforce-
ability, perfection, collectibility, priority or sufficiency of
this Agreement or any other Credit Document or the financial
condition of INTERCO and its Subsidiaries or be required to make
any inquiry concerning either the performance or observance of
any of the terms, provisions or conditions of this Agreement or
any other Credit Document, or the financial condition of INTERCO
and its Subsidiaries or the existence or possible existence of
any Default or Event of Default.
12.04 Certain Rights of the Administrative Agent, the
Documentation Agent and the Syndication Agent. If the
Administrative Agent, the Documentation Agent or the Syndication
Agent shall request instructions from the Required Banks with
respect to any act or action (including failure to act) in
connection with this Agreement or any other Credit Document, such
Administrative Agent, Documentation Agent or Syndication Agent
shall be entitled to refrain from such act or taking such action
unless and until the Administrative Agent shall have received
instructions from the Required Banks; and such Administrative
Agent, Documentation Agent or Syndication Agent shall not incur
liability to any Person by reason of so refraining. Without
limiting the foregoing, no Bank or holder of any Note shall have
any right of action whatsoever against the Administrative Agent,
the Documentation Agent or the Syndication Agent as a result of
the Administrative Agent acting or refraining from acting
hereunder or under any other Credit Document in accordance with
the instructions of the Required Banks.
12.05 Reliance. The Administrative Agent, the
Documentation Agent and the Syndication Agent shall be entitled
to rely, and shall be fully protected in relying, upon any note,
writing, resolution, notice, statement, certificate, telex,
teletype or telecopier message, cablegram, radiogram, order or
other document or telephone message signed, sent or made by any
Person that such Administrative Agent, Documentation Agent or
Syndication Agent believed to be the proper Person, and, with
respect to all legal matters pertaining to this Agreement and any
other Credit Document and its duties hereunder and thereunder,
upon advice of counsel selected by such Administrative Agent,
Documentation Agent or Syndication Agent (which may be counsel
for the Credit Parties).
12.06 Indemnification. To the extent each of the
Administrative Agent, the Documentation Agent or the Syndication
Agent is not reimbursed and indemnified by the Borrowers, the
Banks will reimburse and indemnify such Administrative Agent,
Documentation Agent or Syndication Agent, in proportion to their
respective "percentages" as used in determining the Required
Banks (determined as if there were no Defaulting Banks), for and
against any and all liabilities, obligations, losses, damages,
penalties, claims, actions, judgments, costs, expenses or dis-
bursements of whatsoever kind or nature which may be imposed on,
asserted against or incurred by such Administrative Agent,
Documentation Agent or Syndication Agent in performing its
respective duties hereunder or under any other Credit Document,
in any way relating to or arising out of this Agreement or any
other Credit Document; provided that no Bank shall be liable for
any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from such Administrative Agent's,
Documentation Agent's or Syndication Agent's gross negligence or
willful misconduct.
12.07 The Administrative Agent, the Documentation
Agent and the Syndication Agent in its Individual Capacity. With
respect to its obligation to make Loans and participate in
Letters of Credit under this Agreement, each of the
Administrative Agent, the Documentation Agent and the Syndication
Agent shall have the rights and powers specified herein for a
"Bank" and may exercise the same rights and powers as though it
were not performing the duties specified herein; and the term
"Banks," "Required Banks," "holders of Notes" or any similar
terms shall, unless the context clearly otherwise indicates, in-
clude the Administrative Agent, the Documentation Agent and the
Syndication Agent in their individual capacity. Each of the
Administrative Agent, the Documentation Agent and the Syndication
Agent may accept deposits from, lend money to, and generally
engage in any kind of banking, trust or other business with any
Credit Party or any Affiliate of any Credit Party as if they were
not performing the duties specified herein, and may accept fees
and other consideration from the Borrowers or any other Credit
Party for services in connection with this Agreement and
otherwise without having to account for the same to the Banks.
12.08 Holders. The Administrative Agent may deem and
treat the payee of any Note as the owner thereof for all purposes
hereof unless and until a written notice of the assignment,
transfer or endorsement thereof, as the case may be, shall have
been filed with the Administrative Agent. Any request, authority
or consent of any Person who, at the time of making such request
or giving such authority or consent, is the holder of any Note
shall be conclusive and binding on any subsequent holder,
transferee, assignee or indorsee, as the case may be, of such
Note or of any Note or Notes issued in exchange therefor.
12.09 Resignation by the Agents. (a) The
Administrative Agent may resign from the performance of all its
functions and duties hereunder and/or under the other Credit
Documents at any time by giving 15 Business Days' prior written
notice to the Borrowers and the Banks. Such resignation shall
take effect upon the appointment of a successor Administrative
Agent pursuant to clauses (b) and (c) below or as otherwise
provided below.
(b) Upon any such notice of resignation, the Required
Banks shall appoint a successor Administrative Agent hereunder or
thereunder who shall be a commercial bank or trust company rea-
sonably acceptable to the Borrowers.
(c) If a successor Administrative Agent shall not have
been so appointed within such 15 Business Day period, the
Administrative Agent, with the consent of the Borrowers, shall
then appoint a commercial bank or trust company with capital and
surplus of not less than $500 million as successor Administrative
Agent who shall serve as Administrative Agent hereunder or there-
under until such time, if any, as the Required Banks appoint a
successor Administrative Agent as provided above.
(d) If no successor Administrative Agent has been
appointed pursuant to clause (b) or (c) above by the 20th
Business Day after the date such notice of resignation was given
by the Administrative Agent, the Administrative Agent's
resignation shall become effective and the Banks shall thereafter
perform all the duties of the Administrative Agent hereunder
and/or under any other Credit Document until such time, if any,
as the Required Banks appoint a successor Administrative Agent as
provided above.
(e) The Documentation Agent, as such, may resign at
any time by giving 5 Business Days' prior written notice to the
Banks. Such resignation shall take effect at the end of such
five Business Day period.
(f) The Syndication Agent, as such, may resign at any
time by giving 5 Business Days' prior written notice to the
Banks. Such resignation shall take effect at the end of such
five Business Day period.
SECTION 13. Miscellaneous.
13.01 Payment of Expenses, etc. The Borrowers jointly
and severally shall: (i) whether or not the transactions herein
contemplated are consummated, pay all reasonable out-of-pocket
costs and expenses of the Administrative Agent (including,
without limitation, the reasonable fees and disbursements of
White & Case and local counsel) in connection with the
preparation, execution and delivery of this Agreement and the
other Credit Documents and the documents and instruments referred
to herein and therein and any amendment, waiver or consent relat-
ing hereto or thereto, of the Agents in connection with their
respective syndication efforts with respect to this Agreement and
of the Administrative Agent and, following and during the
continuation of an Event of Default, each of the Banks in
connection with the enforcement of this Agreement and the other
Credit Documents and the documents and instruments referred to
herein and therein (including, without limitation, the reasonable
fees and disbursements of counsel for the Administrative Agent
and, following and during the continuation of an Event of
Default, for each of the Banks); (ii) pay and hold each of the
Banks harmless from and against any and all present and future
stamp, excise and other similar taxes with respect to the
foregoing matters and hold each of the Banks harmless from and
against any and all liabilities with respect to or resulting from
any delay or omission (other than to the extent attributable to
such Bank) to pay such taxes; and (iii) indemnify the Agents and
each Bank (including in its capacity as an Issuing Bank), and
each of their respective officers, directors, employees,
representatives, affiliates and agents from and hold each of them
harmless against any and all liabilities, obligations (including
removal or remedial actions), losses, damages, penalties, claims,
actions, judgments, suits, costs, expenses and disbursements
(including reasonable attorneys' and consultants' fees and
disbursements) incurred by, imposed on or assessed against any of
them as a result of, or arising out of, or in any way related to,
or by reason of, (a) any investigation, litigation or other pro-
ceeding (whether or not any Agent or any Bank is a party thereto)
related to the entering into and/or performance of this Agreement
or any other Credit Document or the use of any Letter of Credit
or the proceeds of any Loans hereunder or the consummation of any
transactions contemplated herein (including, without limitation,
the Transaction) or in any other Credit Document or the exercise
of any of their rights or remedies provided herein or in the
other Credit Documents, or (b) the actual or alleged presence of
Hazardous Materials in the air, surface water or groundwater or
on the surface or subsurface of any Real Property owned or at any
time operated by INTERCO or any of its Subsidiaries, the genera-
tion, storage, transportation, handling or disposal of Hazardous
Materials at any location, whether or not owned or operated by
INTERCO or any of its Subsidiaries, the non-compliance of any
Real Property with foreign, federal, state and local laws,
regulations, and ordinances (including applicable permits
thereunder) applicable to any Real Property, or any Environmental
Claim asserted against INTERCO, any of its Subsidiaries, or any
Real Property owned or at any time operated by INTERCO or any of
its Subsidiaries, including, in each case, without limitation,
the reasonable fees and disbursements of counsel and other
consultants incurred in connection with any such investigation,
litigation or other proceeding (but excluding any losses,
liabilities, claims, damages or expenses to the extent incurred
by reason of the gross negligence or willful misconduct of the
Person to be indemnified). To the extent that the undertaking to
indemnify, pay or hold harmless any Agent or any Bank set forth
in the preceding sentence may be unenforceable because it is
violative of any law or public policy, the Borrowers shall make
the maximum contribution to the payment and satisfaction of each
of the indemnified liabilities which is permissible under
applicable law.
13.02 Right of Setoff. In addition to any rights now
or hereafter granted under applicable law or otherwise, and not
by way of limitation of any such rights, upon the occurrence of
an Event of Default, each Bank is hereby authorized at any time
or from time to time, without presentment, demand, protest or
other notice of any kind to the Borrowers or to any other Person,
any such notice being hereby expressly waived, to set off and to
appropriate and apply any and all deposits (general or special)
and any other Indebtedness at any time held or owing by such Bank
(including, without limitation, by branches and agencies of such
Bank wherever located) to or for the credit or the account of any
Credit Party against and on account of the Obligations and
liabilities of all Credit Parties to such Bank under this
Agreement or under any of the other Credit Documents, including,
without limitation, all interests in Obligations purchased by
such Bank pursuant to Section 13.06(b), and all other claims of
any nature or description arising out of or connected with this
Agreement or any other Credit Document, irrespective of whether
or not such Bank shall have made any demand hereunder and
although said Obligations, liabilities or claims, or any of them,
shall be contingent or unmatured.
13.03 Notices. Except as otherwise expressly provided
herein, all notices and other communications provided for
hereunder shall be in writing (including telegraphic, telex,
telecopier or cable communication) and mailed, telegraphed,
telexed, telecopied, cabled or delivered: if to the Borrowers,
at the Borrowers' address specified opposite its signature below;
if to any other Credit Party, at such Credit Party's address set
forth in any Credit Document; if to any Bank, at its address
specified opposite its name on Schedule II below; and if to the
Administrative Agent, at its Notice Office; or, as to any Credit
Party or the Administrative Agent, at such other address as shall
be designated by such party in a written notice to the other
parties hereto and, as to each Bank, at such other address as
shall be designated by such Bank in a written notice to the
Borrowers and the Administrative Agent. All such notices and
communications shall, when mailed, telegraphed, telexed, tele-
copied, or cabled or sent by overnight courier, be effective when
deposited in the mails, delivered to the telegraph company, cable
company or overnight courier, as the case may be, or sent by
telex or telecopier, except that notices and communications to
the Administrative Agent and the Borrowers shall not be effective
until received by the Administrative Agent or the Borrowers, as
the case may be.
13.04 Benefit of Agreement. (a) This Agreement shall
be binding upon and inure to the benefit of and be enforceable by
the respective successors and assigns of the parties hereto;
provided, however, no Borrower may assign or transfer any of its
rights, obligations or interest hereunder or under any other
Credit Document without the prior written consent of all of the
Banks and, provided further, that although any Bank may transfer,
assign or grant participations in its rights hereunder, such Bank
shall remain a "Bank" for all purposes hereunder (and may not
transfer or assign all or any portion of its Commitments
hereunder except as provided in Section 13.04(b)) and the
transferee, assignee or participant, as the case may be, shall
not constitute a "Bank" hereunder and, provided further, that no
Bank shall transfer or grant any participation under which the
participant shall have rights to approve any amendment to or
waiver of this Agreement or any other Credit Document except to
the extent such amendment or waiver would (i) extend the final
scheduled maturity of any Loan or Note or extend the expiry date
of any Letter of Credit in which such participant is partici-
pating beyond the Final Maturity Date, or reduce the rate or
extend the time of payment of interest or Fees thereon (except in
connection with a waiver of applicability of any post-default in-
crease in interest rates) or reduce the principal amount thereof,
or increase the amount of the participant's participation over
the amount thereof then in effect (it being understood that
waivers or modifications of conditions precedent, covenants,
Defaults or Events of Default or of a mandatory reduction in any
Commitments shall not constitute a change in the terms of such
participation, and that an increase in any Commitment or Loan
shall be permitted without the consent of any participant if the
participant's participation is not increased as a result
thereof), (ii) consent to the assignment or transfer by the
Borrowers of any of their rights and obligations under this
Agreement or (iii) release all or substantially all of the
Collateral under all of the Security Documents (except as
expressly provided in the Credit Documents) supporting the Loans
and/or Letters of Credit hereunder in which such participant is
participating. In the case of any such participation, the
participant shall not have any rights under this Agreement or any
of the other Credit Documents (the participant's rights against
such Bank in respect of such participation to be those set forth
in the agreement executed by such Bank in favor of the
participant relating thereto) and all amounts payable by the
Borrowers hereunder shall be determined as if such Bank had not
sold such participation.
(b) Notwithstanding the foregoing, any Bank (or any
Bank together with one or more other Banks) may (x) assign all or
a portion of its Revolving Loan Commitment (and related out-
standing Obligations hereunder) and/or its outstanding Term Loans
(or, if prior to the Restatement Effective Date, Term Loan
Commitments) to its parent company and/or any affiliate of such
Bank which is at least 50% owned by such Bank or its parent
company or to one or more Banks or (y) after providing at least
two Business Days prior notice to (but without requiring the
consent of) INTERCO, assign all, or if less than all, a portion
equal to at least $10,000,000 in the aggregate for the assigning
Bank or assigning Banks, of such Revolving Loan Commitments and
outstanding principal amount of Term Loans (or, if prior to the
Restatement Effective Date, Term Loan Commitments) hereunder to
one or more Eligible Transferees, each of which assignees shall
become a party to this Agreement as a Bank by execution of an
Assignment and Assumption Agreement, provided that, (i) at such
time Schedule I shall be deemed modified to reflect the
Commitments (and/or outstanding Term Loans, as the case may be)
of such new Bank and of the existing Banks, (ii) upon surrender
of the old Notes, new Notes will be issued, at the Borrowers'
expense, to such new Bank and to the assigning Bank, such new
Notes to be in conformity with the requirements of Section 1.05
(with appropriate modifications) to the extent needed to reflect
the revised Commitments (and/or outstanding Term Loans, as the
case may be), (iii) the consent of the Administrative Agent and
any Issuing Bank shall be required in connection with any such
assignment of a Bank's Revolving Loan Commitment (which consent
shall not be unreasonably withheld or delayed) and (iv) the
Administrative Agent shall receive at the time of each such
assignment (other than in connection with an assignment by a Bank
to an affiliate of such Bank), from the assigning or assignee
Bank, the payment of a non-refundable fee of $1,500 or in the
case of an assignment to an assignee which is not a Bank, the
payment of a non-refundable assignment fee of $3,500 and, pro-
vided further, that such transfer or assignment will not be
effective until recorded by the Administrative Agent on the
Register pursuant to Section 13.17 hereof. To the extent of any
assignment pursuant to this Section 13.04(b), the assigning Bank
shall be relieved of its obligations hereunder with respect to
its assigned Commitments. At the time of each assignment pursu-
ant to this Section 13.04(b) to a Person which is not already a
Bank hereunder and which is not a United States person (as such
term is defined in Section 7701(a)(30) of the Code) for Federal
income tax purposes, the respective assignee Bank shall provide
to the Borrowers and the Administrative Agent the appropriate
Internal Revenue Service Forms (and, if applicable a Section
4.04(b)(ii) Certificate) described in Section 4.04(b). To the
extent that an assignment of all or any portion of a Bank's
Commitments and related outstanding Obligations pursuant to
Section 1.13 or this Section 13.04(b) would, at the time of such
assignment, result in increased costs under Section 1.10 or 1.11
greater than those being charged by the respective assigning Bank
prior to such assignment, then the Borrowers shall not be
obligated to pay such greater increased costs (although the
Borrowers shall be obligated to pay any other increased costs of
the type described above resulting from changes after the date of
the respective assignment).
(c) Nothing in this Agreement shall prevent or
prohibit any Bank from pledging its Loans and Notes hereunder to
a Federal Reserve Bank in support of borrowings made by such Bank
from such Federal Reserve Bank.
13.05 No Waiver; Remedies Cumulative. No failure or
delay on the part of the Administrative Agent or any Bank or any
holder of any Note in exercising any right, power or privilege
hereunder or under any other Credit Document and no course of
dealing between the Borrowers or any other Credit Party and the
Administrative Agent or any Bank or the holder of any Note shall
operate as a waiver thereof; nor shall any single or partial
exercise of any right, power or privilege hereunder or under any
other Credit Document preclude any other or further exercise
thereof or the exercise of any other right, power or privilege
hereunder or thereunder. The rights, powers and remedies herein
or in any other Credit Document expressly provided are cumulative
and not exclusive of any rights, powers or remedies which the
Administrative Agent or any Bank or the holder of any Note would
otherwise have. No notice to or demand on any Credit Party in
any case shall entitle any Credit Party to any other or further
notice or demand in similar or other circumstances or constitute
a waiver of the rights of the Administrative Agent or any Bank or
the holder of any Note to any other or further action in any
circumstances without notice or demand.
13.06 Payments Pro Rata. (a) Except as otherwise
provided in this Agreement, the Administrative Agent agrees that
promptly after its receipt of each payment from or on behalf of
the Borrowers in respect of any Obligations hereunder, it shall
distribute such payment to the Banks (other than any Bank that
has consented in writing to waive its pro rata share of any such
payment) pro rata based upon their respective shares, if any, of
the Obligations with respect to which such payment was received.
(b) Each of the Banks agrees that, if it should
receive any amount hereunder (whether by voluntary payment, by
realization upon security, by the exercise of the right of setoff
or banker's lien, by counterclaim or cross action, by the
enforcement of any right under the Credit Documents, or
otherwise), which is applicable to the payment of the principal
of, or interest on, the Loans, Unpaid Drawings, Commitment Com-
mission or other Fees, of a sum which with respect to the related
sum or sums received by other Banks is in a greater proportion
than the total of such Obligation then owed and due to such Bank
bears to the total of such Obligation then owed and due to all of
the Banks immediately prior to such receipt, then such Bank
receiving such excess payment shall purchase for cash without
recourse or warranty from the other Banks an interest in the
Obligations of the respective Credit Party to such Banks in such
amount as shall result in a proportional participation by all the
Banks in such amount; provided that if all or any portion of such
excess amount is thereafter recovered from such Bank, such
purchase shall be rescinded and the purchase price restored to
the extent of such recovery, but without interest.
(c) Notwithstanding anything to the contrary contained
herein, the provisions of the preceding Sections 13.06(a) and (b)
shall be subject to the express provisions of this Agreement
which require, or permit, differing payments to be made to Non-
Defaulting Banks as opposed to Defaulting Banks.
13.07 Calculations; Computations. (a) The financial
statements to be furnished to the Banks pursuant hereto shall be
made and prepared in accordance with generally accepted
accounting principles in the United States (or the equivalent
thereof in any country in which a Foreign Sales Corporation is
doing business, as applicable) consistently applied throughout
the periods involved, provided that, (i) except as otherwise
specifically provided herein, all computations of Excess Cash
Flow, Available $10 Million Dividend Basket Amount, Available $10
Million Acquisition/Investment Basket Amount, Available Retained
Excess Cash Flow Amount, Available Debt Proceeds Amount,
Available Unrestricted Proceeds Amount, Available Dividend
Unrestricted Proceeds Amount, Available Net Income Amount,
Consolidated Cumulative Net Income Amount, Consolidated
Cumulative Excess Net Income Amount, Consolidated Cumulative 25%
Net Income Amount, Returned Investment Amount and Available
Returned Investment Amount and all computations determining com-
pliance with Sections 9.02 through 9.10, inclusive, shall utilize
accounting principles and policies in conformity with those used
to prepare the historical financial statements delivered to the
Banks pursuant to Sections 7.05(a), (ii) for all purposes of this
Agreement, all Attributed Receivables Facility Indebtedness of
the Receivables Subsidiary shall be included in the consolidated
financial statements of INTERCO and its Restricted Subsidiaries,
and shall be considered Indebtedness of a Restricted Subsidiary
of INTERCO hereunder, regardless of any differing treatment
pursuant to generally acceptable accounting principles and (iii)
for purposes of calculating financial terms, all covenants and
related definitions, all such calculations based on the
operations of INTERCO and its Restricted Subsidiaries on a
consolidated basis shall be made without giving effect to the
operations of any Unrestricted Subsidiaries.
(b) All computations of interest, Commitment Com-
mission and other Fees hereunder shall be made on the basis of a
year of 360 days for the actual number of days (including the
first day but excluding the last day) occurring in the period for
which such interest, Commitment Commission or other Fees are
payable.
13.08 GOVERNING LAW; SUBMISSION TO JURISDICTION;
VENUE; WAIVER OF JURY TRIAL. (a) THIS AGREEMENT AND THE OTHER
CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER AND THEREUNDER SHALL, EXCEPT AS OTHERWISE PROVIDED IN
CERTAIN OF THE MORTGAGES, BE CONSTRUED IN ACCORDANCE WITH AND BE
GOVERNED BY THE LAW OF THE STATE OF NEW YORK. ANY LEGAL ACTION
OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT
DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR
OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND,
BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE
BORROWERS HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF
ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF
THE AFORESAID COURTS. EACH OF THE BORROWERS HEREBY IRREVOCABLY
DESIGNATES, APPOINTS AND EMPOWERS CT CORPORATION SYSTEM, WITH
OFFICES ON THE DATE HEREOF AT 0000 XXXXXXXX, XXX XXXX, XXX XXXX
00000 AS ITS DESIGNEE, APPOINTEE AND AGENT TO RECEIVE AND ACCEPT
FOR AND ON ITS BEHALF, AND IN RESPECT OF ITS PROPERTY, SERVICE OF
ANY AND ALL LEGAL PROCESS, SUMMONS, NOTICES AND DOCUMENTS WHICH
MAY BE SERVED IN ANY SUCH ACTION OR PROCEEDING. IF FOR ANY
REASON SUCH DESIGNEE, APPOINTEE AND AGENT SHALL CEASE TO BE
AVAILABLE TO ACT AS SUCH, EACH CREDIT PARTY AGREES TO DESIGNATE A
NEW DESIGNEE, APPOINTEE AND AGENT IN NEW YORK CITY ON THE TERMS
AND FOR THE PURPOSES OF THIS PROVISION SATISFACTORY TO THE
ADMINISTRATIVE AGENT UNDER THIS AGREEMENT. EACH OF THE BORROWERS
FURTHER IRREVOCABLY CONSENT TO THE SERVICE OF PROCESS OUT OF ANY
OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY
THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL,
POSTAGE PREPAID, TO ANY CREDIT PARTY AT ITS ADDRESS SET FORTH
OPPOSITE ITS SIGNATURE BELOW, SUCH SERVICE TO BECOME EFFECTIVE 30
DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE RIGHT
OF THE ADMINISTRATIVE AGENT UNDER THIS AGREEMENT, ANY BANK OR THE
HOLDER OF ANY NOTE TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED
BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED
AGAINST ANY CREDIT PARTY IN ANY OTHER JURISDICTION.
(b) EACH OF THE BORROWERS HEREBY IRREVOCABLY WAIVES
ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF
VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT
OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER CREDIT
DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE
AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR
CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING
BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM.
(c) EACH OF THE PARTIES TO THIS AGREEMENT HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS
AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY.
13.09 Counterparts. This Agreement may be executed in
any number of counterparts and by the different parties hereto on
separate counterparts, each of which when so executed and
delivered shall be an original, but all of which shall together
constitute one and the same instrument. A set of counterparts
executed by all the parties hereto shall be lodged with the
Borrowers and the Administrative Agent.
13.10 Effectiveness. (a) This Agreement shall become
effective on the date (the "Restatement Effective Date") on which
(i) each Borrower, each of the Banks (including each Continuing
Bank and each New Bank), the Required Banks (determined
immediately before the occurrence of the Restatement Effective
Date) and each Agent shall have signed a counterpart hereof
(whether the same or different counterparts) and shall have
delivered (including by way of facsimile device) the same to the
Administrative Agent at its Notice Office and (ii) the conditions
contained in Sections 5, 6 and 13.10(b) are met to the
satisfaction of the Administrative Agent and the Required Banks
(determined immediately after the occurrence of the Restatement
Effective Date). Unless the Administrative Agent has received
actual notice from any Bank that the conditions contained in
Sections 5 and 6 have not been met to its satisfaction, upon the
satisfaction of the condition described in clause (i) of the
immediately preceding sentence and upon the Administrative
Agent's good faith determination that the conditions described in
clause (ii) of the immediately preceding sentence have been met,
then the Restatement Effective Date shall have been deemed to
have occurred, regardless of any subsequent determination that
one or more of the conditions thereto had not been met (although
the occurrence of the Restatement Effective Date shall not
release the Borrowers from any liability for failure to satisfy
one or more of the applicable conditions contained in Section 5
or 6). The Administrative Agent will give the Borrowers and each
Bank prompt written notice of the occurrence of the Restatement
Effective Date.
(b) On the Restatement Effective Date, each New Bank
and Continuing Bank shall have delivered to the Administrative
Agent for the account of the Borrowers an amount equal to (i) in
the case of each New Bank, the Term Loans and Revolving Loans to
be made by such New Bank on the Restatement Effective Date and
(ii) in the case of each Continuing Bank, the amount by which the
principal amount of Loans to be made and/or converted by such
Continuing Bank on the Restatement Effective Date exceed the
amount of the Original Loans of such Continuing Bank outstanding
on the Restatement Effective Date. Notwithstanding anything to
the contrary contained in this Section 13.10(b), in satisfying
the foregoing condition, unless the Administrative Agent shall
have been notified by any Bank prior to the occurrence of the
Restatement Effective Date that such Bank does not intend to make
available to the Administrative Agent such Bank's Term Loans and
Revolving Loans required to be made by it on such date, then the
Administrative Agent may, in reliance on such assumption, make
available to the Borrower the corresponding amounts in accordance
with the provisions of Section 1.04 of this Agreement, and the
making available by the Administrative Agent of such amounts
shall satisfy the condition contained in this Section 13.10(b).
13.11 Headings Descriptive. The headings of the
several sections and subsections of this Agreement are inserted
for convenience only and shall not in any way affect the meaning
or construction of any provision of this Agreement.
13.12 Amendment or Waiver; etc. (a) Neither this
Agreement nor any other Credit Document nor any terms hereof or
thereof may be changed, waived, discharged or terminated unless
such change, waiver, discharge or termination is in writing
signed by the respective Credit Parties party thereto and the Re-
quired Banks, provided that no such change, waiver, discharge or
termination shall, without the consent of each Bank (other than a
Defaulting Bank) (with Obligations being directly affected
thereby in the case of following clause (i)), (i) extend the
final scheduled maturity of any Loan or Note, or extend the
stated maturity of any Letter of Credit beyond the Revolving Loan
Maturity Date, or reduce the rate or extend the time of payment
of interest or Fees thereon, or reduce the principal amount
thereof (except to the extent repaid in cash), (ii) release all
or substantially all of the Collateral under all the Security
Documents (except as expressly provided in the Credit Documents),
(iii) amend, modify or waive any provision of this Section 13.12,
(iv) reduce the percentage specified in the definition of
Required Banks (it being understood that, with the consent of the
Required Banks, additional extensions of credit pursuant to this
Agreement may be included in the determination of the Required
Banks on substantially the same basis as the extensions of Term
Loans and Revolving Loan Commitments are included on the
Restatement Effective Date) or (v) consent to the assignment or
transfer by the Borrowers of any of their rights and obligations
under this Agreement; provided further, that no such change,
waiver, discharge or termination shall (r) increase the
Commitments of any Bank over the amount thereof then in effect
without the consent of such Bank (it being understood that
waivers or modifications of conditions precedent, covenants,
Defaults or Events of Default or of a mandatory reduction in any
Commitments shall not constitute an increase of the Commitment of
any Bank, and that an increase in the available portion of any
Commitment of any Bank shall not constitute an increase in the
Commitment of such Bank), (s) without the consent of the
respective Issuing Bank or Issuing Banks, amend, modify or waive
any provision of Section 2 with respect to Letters of Credit
issued by it or alter its rights or obligations with respect to
Letters of Credit or Acceptances, (t) without the consent of
BTCo, amend, modify or waive any provision of Sections 1.01(e)
and (f) or alter its rights and obligations with respect to
Swingline Loans, (u) without the consent of each Agent affected
thereby, amend, modify or waive any provision of Section 12 as
same applies to such Agent or any other provision as same relates
to the rights or obligations of such Agent, (v) without the
consent of the Collateral Agent, amend, modify or waive any
provision relating to the rights or obligations of the Collateral
Agent, (w) without the consent of the Majority Banks of each
Tranche which is being allocated a lesser prepayment, repayment
or commitment reduction as a result of the actions described
below (or without the consent of the Majority Banks of each
Tranche in the case of an amendment to the definition of Majority
Banks), amend the definition of Majority Banks or alter the re-
quired application of any prepayments or repayments (or commit-
ment reductions), as between the various Tranches, pursuant to
Section 4.01 or 4.02 (excluding Sections 4.02(b), (c) and (d))
(although the Required Banks may, with the consent of the
Majority B and C Banks as provided in the following clause (x),
waive, in whole or in part, any such prepayment, repayment or
commitment reduction, so long as the application, as amongst the
various Tranches, of any such prepayment, repayment or commitment
reduction which is still required to be made is not altered), (x)
without the consent of the Majority B and C Banks, amend, modify
or waive any provision of Section 4.02 (excluding Sections
4.02(a), (b), (c) and (d)) or the definition of Majority B and C
Banks, or waive any repayment or prepayment required pursuant to
Section 4.02 (excluding pursuant to Sections 4.02(a), (b), (c)
and (d)), (y) without the consent of the Supermajority Banks of
the respective Tranche (1) amend, modify or waive any Scheduled
Repayment with respect to such Tranche or (2) reduce the
percentage specified in the definition of Supermajority Banks
with respect to such Tranche, and (z) without the consent of the
Required Supermajority Banks, (1) release any significant portion
of the Collateral under the Security Documents (except as
expressly provided in the Credit Documents) or release any
significant Subsidiary Guarantor from its obligations under the
Subsidiary Guaranty (other than in connection with a transaction
permitted pursuant to Section 9.02); provided that no Collateral
shall constitute a significant portion of the Collateral and no
Subsidiary Guarantor shall constitute a significant Subsidiary
Guarantor if the fair market value of the Collateral to be
released plus the fair market value of the assets owned or held
by such Subsidiary Guarantor is $20 million or less in the
aggregate (based on a certificate of the chief financial officer
of INTERCO taking into account all prior releases) or (2) reduce
the percentage specified in the definition of Required
Supermajority Banks.
(b) If, in connection with any proposed change,
waiver, discharge or termination to any of the provisions of this
Agreement as contemplated by clauses (i) through (v), inclusive,
of the first proviso to Section 13.12(a), the consent of the
Required Banks is obtained but the consent of one or more of such
other Banks whose consent is required is not obtained, then the
Borrowers shall have the right, so long as all non-consenting
Banks whose individual consent is required are treated as
described in either clauses (A) or (B) below, to either (A)
replace each such non-consenting Bank or Banks (or, at the option
of the Borrowers if the respective Bank's consent is required
with respect to less than all Tranches of Loans (or related
Commitments), to replace only the respective Tranche or Tranches
of Commitments and/or Loans of the respective non-consenting
Bank which gave rise to the need to obtain such Bank's individual
consent) with one or more Replacement Banks pursuant to Section
1.13 so long as at the time of such replacement, each such
Replacement Bank consents to the proposed change, waiver,
discharge or termination or (B) terminate such non-consenting
Bank's Revolving Loan Commitment (if such Bank's consent is
required as a result of its Revolving Loan Commitment) and/or
repay outstanding Term Loans of such Bank which gave rise to the
need to obtain such Bank's consent, in accordance with Sections
3.02(b) and/or 4.01(b), provided that, unless the Commitments are
terminated, and Loans repaid, pursuant to the preceding clause
(B) are immediately replaced in full at such time through the
addition of new Banks or the increase of the Commitments and/or
outstanding Loans of existing Banks (who in each case must
specifically consent thereto), then in the case of any action
pursuant to preceding clause (B) the Required Banks (determined
before giving effect to the proposed action) shall specifically
consent thereto, provided further, that in any event the Bor-
rowers shall not have the right to replace a Bank, terminate its
Revolving Loan Commitment or repay its Loans solely as a result
of the exercise of such Bank's rights (and the withholding of any
required consent by such Bank) pursuant to the second proviso to
Section 13.12(a).
13.13 Survival. All indemnities set forth herein
including, without limitation, in Sections 1.10, 1.11, 2.06,
4.04, 13.01 and 13.06 shall, subject to Section 13.15 (to the
extent applicable), survive the execution, delivery and
termination of this Agreement and the Notes and the making and
repayment of the Loans.
13.14 Domicile of Loans. Each Bank may transfer and
carry its Loans at, to or for the account of any office,
Subsidiary or Affiliate of such Bank. Notwithstanding anything
to the contrary contained herein, to the extent that a transfer
of Loans pursuant to this Section 13.14 would, at the time of
such transfer, result in increased costs under Section 1.10,
1.11, 2.06 or 4.04 from those being charged by the respective
Bank prior to such transfer, then the Borrowers shall not be
obligated to pay such increased costs (although the Borrowers
shall be obligated to pay any other increased costs of the type
described above resulting from changes after the date of the
respective transfer).
13.15 Limitation on Additional Amounts, etc. Not-
withstanding anything to the contrary contained in Sections 1.10,
1.11, 2.06 or 4.04 of this Agreement, unless a Bank gives notice
to the Borrowers that it is obligated to pay an amount under any
such Section within one year after the later of (x) the date the
Bank incurs the respective increased costs, Taxes, loss, expense
or liability, reduction in amounts received or receivable or
reduction in return on capital or (y) the date such Bank has
actual knowledge of its incurrence of the respective increased
costs, Taxes, loss, expense or liability, reductions in amounts
received or receivable or reduction in return on capital, then
such Bank shall only be entitled to be compensated for such
amount jointly and severally by the Borrowers pursuant to said
Section 1.10, 1.11, 2.06 or 4.04, as the case may be, to the
extent the costs, Taxes, loss, expense or liability, reduction in
amounts received or receivable or reduction in return on capital
are incurred or suffered on or after the date which occurs one
year prior to such Bank giving notice to the Borrowers that it is
obligated to pay the respective amounts pursuant to said Section
1.10, 1.11, 2.06 or 4.04, as the case may be. This Section 13.15
shall have no applicability to any Section of this Agreement
other than said Sections 1.10, 1.11, 2.06 and 4.04.
13.16 Confidentiality. (a) Subject to the provisions
of clause (b) of this Section 13.16, each Bank agrees that it
will use its best efforts not to disclose without the prior
consent of the Borrowers (other than to its employees, auditors,
advisors or counsel or to another Bank if the Bank or such Bank's
holding or parent company in its sole discretion determines that
any such party should have access to such information, provided
such Persons shall be subject to the provisions of this Section
13.16 to the same extent as such Bank) any information with
respect to INTERCO or any of its Subsidiaries which is now or in
the future furnished pursuant to this Agreement or any other
Credit Document and which is designated by INTERCO to the Banks
in writing as confidential, provided that any Bank may disclose
any such information (a) as has become generally available to the
public, (b) as may be required or appropriate in any report,
statement or testimony submitted to any municipal, state or
Federal regulatory body having or claiming to have jurisdiction
over such Bank or to the Federal Reserve Board or the Federal
Deposit Insurance Corporation or similar organizations (whether
in the United States or elsewhere) or their successors, (c) as
may be required or appropriate in respect to any summons or
subpoena or in connection with any litigation, (d) in order to
comply with any law, order, regulation or ruling applicable to
such Bank, (e) to any Agent or the Collateral Agent and (f) to
any prospective or actual transferee or participant in connection
with any contemplated transfer or participation of any of the
Notes or Commitments or any interest therein by such Bank,
provided, that such prospective transferee agrees to maintain the
confidentiality contained in this Section.
(b) Each of the Borrowers hereby acknowledges and
agrees that each Bank may share with any of its affiliates any
information related to INTERCO or any of its Subsidiaries (in-
cluding, without limitation, any nonpublic customer information
regarding the creditworthiness of INTERCO and its Subsidiaries),
provided such Persons shall be subject to the provisions of this
Section 13.16 to the same extent as such Bank.
13.17 Register. The Borrowers hereby designate the
Administrative Agent to serve as the Borrowers' agent, solely for
purposes of this Section 13.17, to maintain a register (the
"Register") on which it will record the Commitments from time to
time of each of the Banks, the Loans made by each of the Banks
and each repayment in respect of the principal amount of the
Loans of each Bank. Failure to make any such recordation, or any
error in such recordation shall not affect the Borrowers'
obligations in respect of such Loans. With respect to any Bank,
the transfer of the Commitments of such Bank and the rights to
the principal of, and interest on, any Loan made pursuant to such
Commitments shall not be effective until such transfer is
recorded on the Register maintained by the Administrative Agent
with respect to ownership of such Commitments and Loans and prior
to such recordation all amounts owing to the transferor with
respect to such Commitments and Loans shall remain owing to the
transferor. The registration of assignment or transfer of all or
part of any Commitments and Loans shall be recorded by the
Administrative Agent on the Register only upon the acceptance by
the Administrative Agent of a properly executed and delivered
Assignment and Assumption Agreement pursuant to Section 13.04(b).
Coincident with the delivery of such an Assignment and Assumption
Agreement to the Administrative Agent for acceptance and regis-
tration of assignment or transfer of all or part of a Loan, or as
soon thereafter as practicable, the assigning or transferor Bank
shall surrender the Note evidencing such Loan, and thereupon one
or more new Notes in the same aggregate principal amount shall be
issued to the assigning or transferor Bank and/or the new Bank.
The Borrowers jointly and severally agree to indemnify the
Administrative Agent from and against any and all losses, claims,
damages and liabilities of whatsoever nature which may be imposed
on, asserted against or incurred by the Administrative Agent in
performing its duties under this Section 13.17, provided that the
Borrowers shall have no obligation to indemnify the
Administrative Agent for any loss, claim, damage, liability or
expense which resulted primarily from the gross negligence or
wilful misconduct of the Administrative Agent.
13.18 Addition of New Banks; Conversion of Original
Loans of Continuing Banks; Termination of Commitments of Non-
Continuing Banks.
(a) On and as of the occurrence of the Restatement
Effective Date in accordance with Section 13.10, each New Bank
shall become a "Bank" under, and for all purposes of, this
Agreement and the other Credit Documents.
(b) The parties hereto acknowledge that each Original
Bank has been offered the opportunity to participate in this
Agreement, after the occurrence of the Restatement Effective
Date, as a Continuing Bank hereunder, but that no Original Bank
is obligated to be a Continuing Bank. By their execution and
delivery hereof, the Borrower and the Required Banks (determined
immediately before the occurrence of the Restatement Effective
Date) consent to the voluntary repayment by the Borrower of all
outstanding Original Loans and other Obligations owing to each
Original Bank which has not elected to become a Continuing Bank
(each such Bank, a "Non-Continuing Bank") and to the voluntary
termination by the Borrower of the Revolving Loan Commitment
(under, and as defined in, the Original Credit Agreement) of each
Non-Continuing Bank, in each case to be effective on, and contem-
poraneously with the occurrence of, the Restatement Effective
Date, in each case in accordance with the provisions of Section
13.18(c).
(c) Notwithstanding anything to the contrary contained
in the Original Credit Agreement or any Credit Document, the
Borrower and each of the Banks hereby agrees that on the
Restatement Effective Date, (i) each Bank with a Commitment as
set forth on Schedule I (after giving effect to the Restatement
Effective Date) shall make or maintain (including by way of
conversion) that principal amount of Term Loans and/or Revolving
Loans to the Borrower as is required by Section 1.01, provided
that if the Original Loans of any Continuing Bank outstanding on
the Restatement Effective Date (immediately before giving effect
thereto) exceed the aggregate principal amount of Loans required
to be made available by such Bank on such date (after giving
effect to the Restatement Effective Date), then Original Loans of
such Continuing Bank in an amount equal to such excess shall be
repaid on the Restatement Effective Date to such Continuing Bank
and (ii) in the case of each Non-Continuing Bank, all of such
Non-Continuing Bank's Original Loans outstanding on the
Restatement Effective Date shall be repaid in full on such date,
together with interest thereon and all accrued Fees (and any
other amounts) owing to such Non-Continuing Bank, and the Term
Loan Commitment and/or Revolving Loan Commitment (under, and as
defined in, the Original Credit Agreement) of such Non-Continuing
Bank, if any, shall be terminated, effective upon the occurrence
of the Restatement Effective Date. Notwithstanding anything to
the contrary contained in the Original Credit Agreement, this
Agreement or any other Credit Document, the parties hereto hereby
consent to the repayments and reductions required above, and
agree that in the event that any Original Bank shall fail to exe-
cute a counterpart of this Agreement prior to the occurrence of
the Restatement Effective Date, such Original Bank shall be
deemed to be a Non-Continuing Bank and, concurrently with the
occurrence of the Restatement Effective Date, the Revolving Loan
Commitment (under, and as defined in, the Original Credit
Agreement) of such Original Bank, if any, shall be terminated,
all Original Loans of such Original Bank outstanding on the
Restatement Effective Date shall be repaid in full, together with
interest thereon and all accrued Fees (and any other amounts)
owing to such Original Bank, and concurrently with the occurrence
of the Restatement Effective Date, such Original Bank shall no
longer constitute a "Bank" under this Agreement and the other
Credit Documents, provided that all indemnities of the Credit
Parties under the Original Credit Agreement and the other Credit
Documents (as in effect prior to the Restatement Effective Date)
for the benefit of such Original Bank shall survive in accordance
with the terms thereof.
13.19 Post Closing Actions. Notwithstanding anything
to the contrary contained in this Agreement or the other Credit
Documents, the parties hereto acknowledge and agree that:
(a) Revised Mortgage Policies. The Borrowers will
take any further action, including, without limitation
amending any UCC-1 Financing Statements or the relevant
Mortgage or deleting the title commitment exceptions to the
Davidson County, N.C. title commitment consisting of liens
or any adverse encumbrances as same may be revised or
amended, to assure that the mortgage policy with respect to
the Real Property located in Davidson County, N.C. is issued
within sixty (60) Business Days after the Restatement
Effective Date, in form and substance satisfactory to the
Administrative Agent.
(b) Stock Certificate. Thomasville will deliver, or
cause to be delivered, within sixty (60) Business Days after
the Restatement Effective Date to the Collateral Agent a
stock certificate evidencing the ownership by Thomasville of
the three shares of capital stock of Xxx Publications, Inc.
(currently titled in the name of Xxxxxxxx Furniture Company,
provided the current certificate for such shares which is
pledged to the Collateral Agent shall be exchanged for such
new stock certificate), together with executed and undated
stock powers, in each case as required by the Pledge
Agreement.
All conditions precedent and representations contained
in this Agreement and the other Credit Documents shall be deemed
modified to the extent necessary to effect the foregoing (and to
permit the taking of the actions described above within the time
periods required above, rather than as elsewhere provided in the
Credit Documents); provided, that (x) to the extent any
representation and warranty would not be true because the
foregoing actions were not taken on the Restatement Effective
Date, the respective representation and warranty shall be
required to be true and correct in all material respects at the
time the respective action is taken (or was required to be taken)
in accordance with the foregoing provisions of Section 13.19 and
(y) all representations and warranties relating to the Security
Documents shall be required to be true immediately after the
actions required to be taken by Section 13.19 have been taken (or
were required to be taken). The acceptance of the benefits of
each Credit Event shall constitute a representation, warranty and
covenant by the Borrowers to each of the Banks that the actions
required pursuant to this Section 13.19 will be taken within the
relevant time periods referred to in this Section 13.19 and that,
at such time, all representations and warranties contained in
this Agreement and the other Credit Documents shall then be true
and correct without any modification pursuant to this Section
13.19.
IN WITNESS WHEREOF, the parties hereto have caused
their duly authorized officers to execute and deliver this
Agreement as of the date first above written.
Address:
--------
000 Xxxxx Xxxxxx Xxxx INTERCO INCORPORATED
Xx. Xxxxx, XX 00000
Tel: (000) 000-0000
Fax: (000) 000-0000
Attention: Xxxxx X. Xxxxxx By Xxxxx X. Xxxxxx
---------------------------
Title: Vice-President
c/o INTERCO INCORPORATED BROYHILL FURNITURE
000 Xxxxx Xxxxxx Xxxx INDUSTRIES, INC.
Xx. Xxxxx, XX 00000
Tel: (000) 000-0000
Fax: (000) 000-0000
Attention: Xxxxx X. Xxxxxx By Xxxxx X. Xxxxxx
---------------------------
Title: Vice-President
c/o INTERCO INCORPORATED THE LANE COMPANY,
000 Xxxxx Xxxxxx Xxxx XXXXXXXXXXXX
Xx. Xxxxx, XX 00000
Tel: (000) 000-0000
Fax: (000) 000-0000
Attention: Xxxxx X. Xxxxxx By Xxxxx X. Xxxxxx
---------------------------
Title: Vice-President
c/o INTERCO INCORPORATED THOMASVILLE FURNITURE
000 Xxxxx Xxxxxx Xxxx INDUSTRIES, INC.
Xx. Xxxxx, XX 00000
Tel: (000) 000-0000
Fax: (000) 000-0000
Attention: Xxxxx X. Xxxxxx By Xxxxx X. Xxxxxx
---------------------------
Title: Vice-President
One Bankers Trust Plaza BANKERS TRUST COMPANY,
000 Xxxxxxx Xxxxxx Individually and as Administrative
Xxx Xxxx, XX 00000 Agent
Tel: (000) 000-0000
Fax: (000) 000-0000
Attention: Xxxx X. Xxxxx By Xxxx X. Xxxxxxxx
---------------------------
Title: Vice President
NATIONSBANK, N.A.,
Individually and as Syndication
Agent
By Xxxxxxxxxxx X. Xxxxx
----------------------------
Title: Senior Vice President
CREDIT LYONNAIS NEW YORK BRANCH,
as Documentation Agent
By Xxxxxxx Xxxxxxxx
---------------------------
Title: Vice President
CREDIT LYONNAIS CAYMAN ISLAND
BRANCH, Individually
By Xxxxxx X. Xxxx
---------------------------
Title: Authorized Signature
CREDIT LYONNAIS CHICAGO BRANCH,
Individually
By Xxxx Xxx Xxxxx
---------------------------
Title: Vice President
Group Head
ARAB BANKING CORPORATION
By Xxxxxxx Xxxxxx
-----------------------------
Title: Deputy General Manager
BANK OF AMERICA ILLINOIS
By Xxxxxxxx Kitej
---------------------------
Title: Managing Director
BANK OF MONTREAL
By Xxxxxxx X. Xxxxxx
---------------------------
Title: Managing Director
BANK OF SCOTLAND
By X.X. Xxxxxx
----------------------------
Title: Senior Vice President
THE BANK OF NEW YORK
By Xxxx X. Xxxxxxx
---------------------------
Title: Vice President
THE BANK OF NOVA SCOTIA
By F.C.H. Xxxxx
---------------------------
Title: Senior Manager Loan
Operations
THE BOATMEN'S NATIONAL BANK
OF ST. LOUIS
By Xxxxxxx Xxxxxxxxx
---------------------------
Title: Vice President
CAISSE NATIONALE DE CREDIT
AGRICOLE
By Xxxxx Xxxxx F.V.P.
---------------------------
Title: Head of Corporate
Banking, Chicago
CIBC, INC
By Xxxx X. Xxxx
---------------------------
Title: Director
CONTINENTAL CASUALTY COMPANY
By Xxxxxxx X. Xxxxxxxx
---------------------------
Title: Vice President
THE DAI-ICHI KANGYO BANK, LTD.,
CHICAGO BRANCH
By Xxxxx Xxxxxxxx
-------------------------------
Title: Assistant Vice President
DRESDNER BANK AG
Chicago Branch and Grand Cayman
Branch
By Xxxxxxxxx X. Xxxxxx
------------------------------
Title: Senior Vice President
and Manager
By Xxxxxxxxx X. Xxxxxx
---------------------------
Title: Vice President
FIRST AMERICAN NATIONAL BANK
By Xxxxx X. Xxxxx
---------------------------
Title: Corporate Bank Officer
THE FUJI BANK LIMITED
By Xxxxx X. Xxxxxxxx
---------------------------
Title: Joint General Manager
THE INDUSTRIAL BANK OF JAPAN,
LIMITED
By Xxxxxx Xxxxxx
---------------------------
Title: General Manager
THE LONG TERM CREDIT BANK OF
JAPAN, LTD
By Xxxxxxx Xxxxx
---------------------------
Title: Senior Vice President
and Joint General
Manager
MASSACHUSETTS MUTUAL LIFE
INSURANCE COMPANY
By Xxxx X. Xxxxx
---------------------------
Title: Vice President
MERCANTILE BANK OF ST. LOUIS
NATIONAL ASSOCIATION
By Xxxxxxx X. Xxxxx
---------------------------
Title: Vice President
MIDLAND BANK PLC, NEW YORK
BRANCH
By Xxxxxx Xxxxx
---------------------------
Title: Director
THE MITSUBISHI TRUST AND BANKING
CORPORATION
By Xxxxxxx Xxxxxxxxx
---------------------------
Title: Chief Manager
NATIONAL CITY BANK
By Xxx X. Xxxxxx
---------------------------
Title: Vice President
THE NIPPON CREDIT BANK, LTD
By Xxxxx Xxxxxxx
----------------------------
Title: Assistant Vice President
PILGRIM PRIME RATE TRUST
By Xxxxxx Tiffen
---------------------------
Title: Senior Vice President
THE SANWA BANK, LIMITED
By X. Xxxxx
---------------------------
Title: Assistant General Manager
THE SUMITOMO BANK, LIMITED,
CHICAGO BRANCH
By Xxxxxxxx Xxxxx
---------------------------
Title: Joint General Manager
UNITED STATES NATIONAL BANK OF
OREGON
By Xxxx Xxxxxxxx
---------------------------
Title: Assistant Vice President
XXX XXXXXX AMERICAN CAPITAL
PRIME RATE INCOME TRUST
By Xxxxxxx X. Xxxxxxx
---------------------------
Title: Sr. Vice Pres. -
Portfolio Manager
THE YASUDA TRUST AND BANKING
CO., LTD., CHICAGO BRANCH
By Xxxxxxx X. Xxxx
---------------------------
Title: First Vice President
& Manager
