CREDIT AGREEMENT
dated as of
July 14, 1999
among
LYDALL, INC.
LYDALL DEUTSCHLAND HOLDING, GMBH
The LENDERS Party Hereto
THE CHASE MANHATTAN BANK,
as Administrative Agent
and
FLEET NATIONAL BANK,
as Documentation Agent
---------------------------
CHASE SECURITIES, INC.,
as Arranger and Book Manager
TABLE OF CONTENTS
Page
----
ARTICLE I Definitions..........................................................1
Section 1.01. Defined Terms............................................1
Section 1.02. Classification of Loans and Borrowings..................21
Section 1.03. Terms Generally.........................................21
Section 1.04. Accounting Terms; GAAP..................................22
Section 1.05. Exchange Rates..........................................22
ARTICLE II The Credits........................................................22
Section 2.01. Commitments.............................................22
Section 2.02. Loans and Borrowings....................................23
Section 2.03. Requests for Revolving or Term Borrowings...............23
Section 2.04. Swingline Loans.........................................24
Section 2.05. Letters of Credit.......................................26
Section 2.06. Funding of Borrowings...................................30
Section 2.07. Interest Elections......................................31
Section 2.08. Termination and Reduction of Commitments................32
Section 2.09. Repayment of Loans; Evidence of Debt....................33
Section 2.10. Voluntary Prepayment of Loans...........................34
Section 2.11. Mandatory Prepayment of Loans...........................35
Section 2.12. Fees....................................................36
Section 2.13. Interest................................................37
Section 2.14. Alternate Rate of Interest..............................38
Section 2.15. Increased Costs; Illegality.............................39
Section 2.16. Break Funding Payments..................................41
Section 2.17. Taxes...................................................42
Section 2.18. Payments Generally; Pro Rata Treatment; Sharing
of Set-offs.............................................43
Section 2.19. Mitigation Obligations; Replacement of Lenders..........46
ARTICLE III Representations and Warranties....................................47
Section 3.01. Organization; Powers....................................47
Section 3.02. Authorization; Enforceability...........................48
Section 3.03. Governmental Approvals; No Conflicts....................48
Section 3.04. Financial Condition; No Material Adverse Change.........48
Section 3.05. Properties..............................................49
Section 3.06. Litigation and Environmental Matters....................49
Section 3.07. Compliance with Laws and Agreements.....................50
Section 3.08. Investment and Holding Company Status...................50
Section 3.09. Taxes...................................................50
Section 3.10. ERISA...................................................50
Section 3.11. Disclosure..............................................50
Section 3.12. Federal Reserve Regulations.............................51
Section 3.13. Solvency................................................51
Section 3.14. Year 2000...............................................51
ARTICLE IV Conditions.........................................................52
Section 4.01. Effective Date..........................................52
Section 4.02. Each Credit Event.......................................53
ARTICLE V Affirmative Covenants...............................................54
Section 5.01. Financial Statements and Other Information..............54
Section 5.02. Notices of Material Events..............................55
Section 5.03. Existence; Conduct of Business..........................56
Section 5.04. Payment of Obligations..................................56
Section 5.05. Maintenance of Properties; Insurance....................56
Section 5.06. Books and Records; Inspection Rights....................56
Section 5.07. Compliance with Laws....................................57
Section 5.08. Use of Proceeds and Letters of Credit...................57
Section 5.09. Additional Guarantors...................................57
ARTICLE VI Negative Covenants.................................................58
Section 6.01. Indebtedness............................................58
Section 6.02. Liens...................................................58
Section 6.03. Fundamental Changes.....................................59
Section 6.04. Investments, Loans, Advances, Guarantees and
Acquisitions............................................60
Section 6.05. Hedging Agreements......................................61
Section 6.06. Restricted Payments; Certain Payments of
Indebtedness............................................61
Section 6.07. Disposition of Assets...................................62
Section 6.08. Transactions with Affiliates............................62
Section 6.09. Restrictive Agreements..................................63
Section 6.10. Issuances of Capital Stock by Subsidiaries..............63
Section 6.11. Subsidiary Borrower.....................................63
Section 6.12. Fixed Charge Coverage Ratio.............................63
Section 6.13. Leverage Ratio..........................................63
Section 6.14. Consolidated Tangible Net Worth.........................64
ARTICLE VII Events of Default.................................................64
ARTICLE VIII The Administrative Agent.........................................67
ARTICLE IX Guarantee..........................................................69
ARTICLE X Miscellaneous.......................................................71
Section 10.01. Notices.................................................71
Section 10.02. Waivers; Amendments.....................................72
Section 10.03. Expenses; Indemnity; Damage Waiver......................73
Section 10.04. Successors and Assigns..................................75
Section 10.05. Survival................................................78
Section 10.06. Counterparts; Integration; Effectiveness................78
Section 10.07. Severability............................................79
Section 10.08. Right of Setoff.........................................79
Section 10.09. Governing Law; Jurisdiction; Consent to
Service of Process......................................79
Section 10.10. WAIVER OF JURY TRIAL....................................80
Section 10.11. Headings................................................80
Section 10.12. Confidentiality.........................................80
Section 10.13. Interest Rate Limitation................................81
Section 10.14. Conversion of Currencies................................81
iv
v
SCHEDULES:
Schedule 2.01 -- Commitments
Schedule 3.01 -- List of Subsidiaries
Schedule 3.06 -- Disclosed Matters
Schedule 4.01(f) -- Existing Refinanced Indebtedness
Schedule 6.01 -- Existing Retained Indebtedness
Schedule 6.02 -- Existing Liens
Schedule 6.04 -- Existing Investments
Schedule 6.08 -- Existing Affiliate Transactions
Schedule 6.09 -- Existing Restrictions
EXHIBITS:
Exhibit A -- Form of Assignment and Acceptance
Exhibit B-1 -- Form of Opinion of Loan Parties' Counsel
Exhibit B-2 -- Form of Opinion of Xxxx X. Xxxxxxxx
Exhibit B-3 -- Form of Opinion of German Local Counsel
Exhibit B-4 -- Form of Opinion of Connecticut Local Counsel
Exhibit B-5 -- Form of Opinion of Indiana Local Counsel
Exhibit C -- Form of Guarantee Agreement
Exhibit D -- Form of Pledge Agreement
vi
CREDIT AGREEMENT, dated as of July 14, 1999, among LYDALL, INC., LYDALL
DEUTSCHLAND HOLDING, GMBH, the LENDERS party hereto, THE CHASE MANHATTAN BANK,
as Administrative Agent, and FLEET NATIONAL BANK, as Documentation Agent.
The parties hereto agree as follows:
ARTICLE I
Definitions
Section I.1. Defined Terms. As used in this Agreement, the following terms
have the meanings specified below:
"ABR", when used in reference to any Loan or Borrowing, refers to whether
such Loan, or the Loans comprising such Borrowing, are bearing interest at a
rate determined by reference to the Alternate Base Rate.
"Adjusted LIBO Rate" means, with respect to any Eurocurrency Borrowing in
any Committed Currency for any Interest Period, an interest rate per annum
(rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the LIBO
Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.
"Administrative Agent" means The Chase Manhattan Bank, in its capacity as
administrative agent for the Lenders hereunder.
"Administrative Questionnaire" means an Administrative Questionnaire in
a form supplied by the Administrative Agent.
"Affiliate" means, with respect to a specified Person, another Person that
directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the Person specified.
"Agreement Currency" has the meaning assigned to such term in Section
10.14(b).
"Alternate Base Rate" means, for any day, a rate per annum equal to the
greatest of (a) the Prime Rate in effect on such day, (b) the Base CD Rate in
effect on such day plus 1% and (c) the Federal Funds Effective Rate in effect on
such day plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change
in the Prime Rate, the Base CD Rate or the Federal Funds Effective Rate shall be
effective from and including the effective date of such change in the Prime
Rate, the Base CD Rate or the Federal Funds Effective Rate, respectively.
"Alternative Currency" means (a) euros and (b) any other Eligible Currency
that shall be designated by the Borrower or the Subsidiary Borrower, as
applicable, in a notice delivered to the
Administrative Agent and approved by the Administrative Agent and all the
Lenders as an Alternative Currency.
"Alternative Currency Equivalent" means, on any date of determination,
with respect to any amount in dollars, the equivalent in the relevant
Alternative Currency of such amount, determined by the Administrative Agent
using the Exchange Rate with respect to such Alternative Currency then in effect
as determined pursuant to Section 1.05(a).
"Applicable Creditor" has the meaning assigned to such term in Section
10.14(b).
"Applicable RC Percentage" means, with respect to any Lender, the
percentage of the total Revolving Credit Commitments represented by such
Lender's Revolving Credit Commitment. If the Revolving Credit Commitments have
terminated or expired, the Applicable RC Percentages shall be determined based
upon the Revolving Credit Commitments most recently in effect, giving effect to
any assignments.
"Applicable Rate" means, for any day, with respect to any Eurocurrency
Loan or ABR Loan, or with respect to the commitment fees payable hereunder, as
the case may be, the applicable rate per annum set forth below under the caption
"Eurocurrency Spread", "ABR Spread" or "Commitment Fee Rate", as the case may
be, based upon the Leverage Ratio applicable on such date:
================================================================================
Eurocurrency Commitment Fee
Leverage Ratio Spread ABR Spread Rate
--------------------------------------------------------------------------------
Category 1 Greater than or equal to 1.750% 0.000% 0.375%
2.50 to 1
--------------------------------------------------------------------------------
Category 2 Greater than or equal to 1.500% 0.000% 0.375%
2.00 to 1 but less than
2.50 to 1
--------------------------------------------------------------------------------
Category 3 Greater than or equal to 1.250% 0.000% 0.375%
1.50 to 1 but less than
2.00 to 1
--------------------------------------------------------------------------------
Category 4 Greater than or equal to 1.000% 0.000% 0.375%
1.00 to 1 but less than
1.50 to 1
--------------------------------------------------------------------------------
Category 5 Less than 1.00 to 1 0.750% 0.000% 0.250%
================================================================================
For purposes of the foregoing, (a) the Leverage Ratio shall be determined
as of the end of each fiscal quarter of the Borrower based upon the Borrower's
consolidated financial statements
2
delivered pursuant to Section 5.01(a) or (b); and (b) each change in the
Applicable Rate resulting from a change in the Leverage Ratio shall be effective
during the period commencing on and including the date of delivery to the
Administrative Agent of such consolidated financial statements indicating such
change and ending on the date immediately preceding the effective date of the
next change in the Applicable Rate; provided that the Leverage Ratio shall be
deemed to be in Category 1 (i) at any time that an Event of Default has occurred
and is continuing and has not been waived or (ii) if the Borrower fails to
deliver the consolidated financial statements required to be delivered by it
pursuant to Section 5.01(a) or (b), during the period from the expiration of the
time for delivery thereof until such consolidated financial statements are
delivered. Assuming no Event of Default has occurred and is continuing, the
initial Applicable Rate shall be determined by reference to Category 3.
"Assessment Rate" means, for any day, the annual assessment rate in effect
on such day that is payable by a member of the Bank Insurance Fund classified as
"well-capitalized" and within supervisory subgroup "B" (or a comparable
successor risk classification) within the meaning of 12 C.F.R. Part 327 (or any
successor provision) to the Federal Deposit Insurance Corporation for insurance
by such Corporation of time deposits made in dollars at the offices of such
member in the United States; provided that if, as a result of any change in any
law, rule or regulation, it is no longer possible to determine the Assessment
Rate as aforesaid, then the Assessment Rate shall be such annual rate as shall
be determined by the Administrative Agent to be representative of the cost of
such insurance to the Lenders.
"Assignment and Acceptance" means an assignment and acceptance entered
into by a Lender and an assignee (with the consent of any party whose consent is
required by Section 10.04), and accepted by the Administrative Agent, in the
form of Exhibit A or any other form approved by the Administrative Agent.
"Availability Period" means the period from and including the Effective
Date to but excluding the earlier of the Revolving Credit Maturity Date and the
date of termination of the Revolving Credit Commitments.
"Base CD Rate" means the sum of (a) the Three-Month Secondary CD Rate
multiplied by the Statutory Reserve Rate plus (b) the Assessment Rate.
"Board" means the Board of Governors of the Federal Reserve System of
the United States of America.
"Borrower" means Lydall, Inc., a Delaware corporation.
"Borrowing" means Loans of the same Type, Class and currency made,
converted or continued on the same date and, in the case of Eurocurrency Loans,
as to which a single Interest Period is in effect.
3
"Borrowing Date" means any Business Day specified in a notice pursuant to
Section 2.03 or 2.04 as a date on which the Borrower or the Subsidiary Borrower,
as applicable, requests Loans to be made hereunder.
"Borrowing Request" means a request by the Borrower or the Subsidiary
Borrower, as applicable, for a Borrowing in accordance with Section 2.03.
"Business Day" means (a) when such term is used in respect of any amount
denominated in any Committed Currency, a day other than a Saturday or Sunday on
which banks are open for general banking business in (w) London, (x) the city
which is the principal financial center of the country of issuance of such
Committed Currency, (y) in the case of the euro only, Frankfurt am Main, Germany
(or such other principal financial center as the Administrative Agent may from
time to time nominate for this purpose) and (z) New York City and (b) when such
term is used for the purpose of determining the date on which the LIBO Rate is
determined under this Agreement for any Loan denominated in euro for any
Interest Period therefor and for purposes of determining the first and last day
of any Interest Period therefor, Target Operating Days.
"Calculation Date" means (a) the last Business Day of each calendar month
and (b) at any time when the Dollar Equivalent of the total Revolving Credit
Exposures exceeds 75% of the total Revolving Credit Commitments, the last
Business Day of each calendar week.
"Capital Expenditures" means, for any period, the dollar amount of gross
expenditures (including Capital Lease Obligations) made for the acquisition of
any fixed assets, real property, plant and equipment, and all renewals,
improvements and replacements thereto (but not repairs thereof) incurred during
such period in each case which are required to be capitalized for financial
reporting purposes in accordance with GAAP.
"Capital Lease Obligations" of any Person means the obligations of such
Person to pay rent or other amounts under any lease of (or other arrangement
conveying the right to use) real or personal property, or a combination thereof,
which obligations are required to be classified and accounted for as capital
leases on a balance sheet of such Person under GAAP, and the amount of such
obligations shall be the capitalized amount thereof determined in accordance
with GAAP.
"Capital Stock" means any and all shares, interests, participations or
other equivalents (however designated) of capital stock of a corporation, any
and all equivalent ownership interests in a Person (other than a corporation)
and any and all warrants, rights or options to purchase any of the foregoing.
"Change in Control" means (a) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person or group (within the
meaning of the Securities Exchange Act of 1934, as amended, and the rules of the
Securities and Exchange Commission thereunder as in effect on the date hereof)
of shares representing more than 25% of the aggregate ordinary voting power
represented by the issued and outstanding capital stock of the Borrower, (b) the
occupation of a majority of the seats (other than vacant seats) on the board of
directors of the Borrower by
4
Persons who were neither (i) nominated by the board of directors of the Borrower
nor (ii) appointed by directors so nominated, (c) the acquisition of direct or
indirect Control of the Borrower by any Person or group (as so defined) or (d)
the occurrence of a "change in control" (or similar event, howsoever
denominated) under and as defined in any indenture or other agreement in respect
of Material Indebtedness to which any Loan Party is a party.
"Change in Law" means (a) the adoption of any law, rule or regulation
after the date of this Agreement, (b) any change in any law, rule or regulation
or in the interpretation or application thereof by any Governmental Authority
after the date of this Agreement or (c) compliance by any Lender or the Issuing
Bank (or, for purposes of Section 2.15(b), by any lending office of such Lender
or by such Lender's or the Issuing Bank's holding company, if any) with any
request, guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement.
"Charges" has the meaning assigned to such term in Section 10.13.
"Charter Medical" means Charter Medical, Ltd., a Delaware corporation,
and its subsidiaries.
"Class", when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans,
Term Loans or Swingline Loans.
"Closing Date" means the date upon which the initial borrowing or initial
issuance of a Letter of Credit hereunder occurs.
"Code" means the Internal Revenue Code of 1986, as amended from time to
time.
"Collateral" means all of the right, title and interest of the Borrower or
any Subsidiary in and to the property in which such Person has granted a Lien to
the Administrative Agent for its benefit and the ratable benefit of the Lenders
under any Loan Document.
"Committed Currency" means dollars or any Alternative Currency.
"Commitment" means any Revolving Credit Commitment or any Term Loan
Commitment.
"Consolidated Capital Expenditures" means, for any period, the aggregate
amount of Capital Expenditures of the Consolidated Entities for such period as
determined on a consolidated basis in accordance with GAAP.
"Consolidated EBITDA" means, for any period, Consolidated Net Income for
such period, minus the aggregate amount of extraordinary or nonrecurring gains
for such period and the aggregate amount of severance costs paid in cash during
such period to the extent a non-cash charge was taken with respect to such costs
during the fiscal quarter of the Consolidated Entities ended on December 31,
1998, plus, without duplication and to the extent deducted from revenues in
determining
5
Consolidated Net Income for such period, the sum of (a) the aggregate amount of
Consolidated Interest Expense for such period, plus (b) the aggregate amount of
income tax expense for such period, plus (c) the aggregate amount of
depreciation and amortization for such period, plus (d) the aggregate amount of
non-cash charges during the fiscal quarter of the Consolidated Entities ended on
December 31, 1998 for the impairment of assets, severance costs and writedowns
of inventory not to exceed $12,500,000 in the aggregate, all as determined on a
consolidated basis with respect to the Consolidated Entities in accordance with
GAAP.
"Consolidated Entity" means the Borrower or any Subsidiary whose accounts
are or are required to be consolidated or included with the accounts of the
Borrower in accordance with GAAP.
"Consolidated Indebtedness" means, as of any date of determination, the
aggregate principal amount of Indebtedness of the Consolidated Entities
outstanding as of such date, as determined on a consolidated basis in accordance
with GAAP.
"Consolidated Interest Expense" means, for any period, the interest
expense, both expensed and capitalized (including the interest component in
respect of Capital Lease Obligations), accrued or paid by the Consolidated
Entities during such period, as determined on a consolidated basis in accordance
with GAAP.
"Consolidated Net Income" means, for any period, net income or loss of the
Consolidated Entities for such period, as determined on a consolidated basis in
accordance with GAAP.
"Consolidated Tangible Net Worth" means, at any date of determination
thereof, the result of (a) all assets of the Consolidated Entities except assets
of the Consolidated Entities which would be classified as intangibles under GAAP
including, without limitation, patents, copyrights, trademarks, trade names,
franchises, goodwill and other similar intangible assets, minus (b) all
liabilities of the Consolidated Entities, as determined on a consolidated basis
in accordance with GAAP.
"Control" means the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of a Person, whether
through the ability to exercise voting power, by contract or otherwise.
"Controlling" and "Controlled" have meanings correlative thereto.
"Credit Exposure" means, with respect to any Lender at any time, the sum
of the outstanding principal amount of such Lender's Term Loans and its
Revolving Credit Exposure.
"Default" means any event or condition which constitutes an Event of
Default or which upon notice, lapse of time or both would, unless cured or
waived, become an Event of Default.
"Documentation Agent" means Fleet National Bank, in its capacity as
documentation agent for the Lenders hereunder.
6
"Dollar Equivalent" means, on any date of determination, (a) with respect
to any amount in dollars, such amount, and (b) with respect to any amount in any
Alternative Currency, the equivalent in dollars of such amount, determined by
the Administrative Agent pursuant to Section 1.05(a) using the Exchange Rate
with respect to such Alternative Currency then in effect.
"dollars" or "$" refers to lawful money of the United States of America.
"Domestic Plan" means any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or
any ERISA Affiliate is (or, if such plan were terminated, would under Section
4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of
ERISA.
"Domestic Subsidiary" means any Subsidiary that is organized under the
laws of any jurisdiction in the United States.
"Effective Date" means the date on which the conditions specified in
Section 4.01 are satisfied (or waived in accordance with Section 10.02).
"Eligible Currency" means, on any date of determination, any currency
(other than dollars) that is freely tradeable and exchangeable into dollars in
the London market and for which an Exchange Rate can be determined by reference
to the Reuters World Currency Page or another publicly available service for
displaying exchange rates.
"EMU" means the Economic and Monetary Union as contemplated in the Treaty
on European Union.
"EMU Legislation" means legislative measures of the European Union for the
introduction of, changeover to or operation of the euro in one or more member
states.
"Environmental Laws" means all laws, rules, regulations, codes,
ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any Governmental Authority,
relating in any way to the environment, preservation or reclamation of natural
resources, the management, release or threatened release of any Hazardous
Material or to health and safety matters.
"Environmental Liability" means any liability, contingent or otherwise
(including any liability for damages, costs of environmental remediation, fines,
penalties or indemnities), of the Borrower or any Subsidiary directly or
indirectly resulting from or based upon (a) violation of any Environmental Law,
(b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials,
(d) the release or threatened release of any Hazardous Materials into the
environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.
7
"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time.
"ERISA Affiliate" means any trade or business (whether or not
incorporated) that, together with the Borrower, is treated as a single employer
under Section 414(b) or (c) of the Code or, solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.
"ERISA Event" means (a) any "reportable event", as defined in Section 4043
of ERISA or the regulations issued thereunder with respect to a Domestic Plan
(other than an event for which the 30-day notice period is waived); (b) the
existence with respect to any Plan of an "accumulated funding deficiency" (as
defined in Section 412 of the Code or Section 302 of ERISA), whether or not
waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d)
of ERISA of an application for a waiver of the minimum funding standard with
respect to any Plan; (d) the incurrence by the Borrower or any of its ERISA
Affiliates of any liability under Title IV of ERISA with respect to the
termination of any Domestic Plan; (e) the receipt by the Borrower or any ERISA
Affiliate from the PBGC or any other Governmental Authority or a plan
administrator of any notice relating to an intention to terminate any Plan or
Plans or to appoint a trustee to administer any Plan or Plans; (f) the
incurrence by the Borrower or any of its ERISA Affiliates of any liability with
respect to the withdrawal or partial withdrawal from any Plan or Multiemployer
Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice,
or the receipt by any Multiemployer Plan from the Borrower or any ERISA
Affiliate of any notice, concerning the imposition of Withdrawal Liability or a
determination that a Multiemployer Plan is, or is expected to be, insolvent or
in reorganization, within the meaning of Title IV of ERISA.
"euro" means the single currency of the European Union as constituted by
the Treaty on European Union and as referred to in EMU Legislation.
"euro unit" means the currency unit of the euro as defined in the EMU
Legislation.
"Eurocurrency", when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are bearing interest
at a rate determined by reference to the Adjusted LIBO Rate.
"Event of Default" has the meaning assigned to such term in Article VII.
"Exchange Rate" means, on any day, with respect to any Alternative
Currency, the rate at which such Alternative Currency may be currently exchanged
into dollars (and, for purposes of the definition of "Alternative Currency
Equivalent" and Section 2.07(e), 2.14(i) or 2.15(e)(ii), the rate at which
dollars may be exchanged into such Alternative Currency), as set forth at
approximately 11:00 a.m., London time, on such date on the Reuters World
Currency Page for such Alternative Currency. In the event that such rate does
not appear on any Reuters World Currency Page, the
8
Exchange Rate shall be determined by reference to such other publicly available
service for displaying exchange rates as may be agreed upon by the
Administrative Agent and the Borrower, or, in the absence of such agreement,
such Exchange Rate shall instead be the arithmetic average of the spot rates of
exchange of the Administrative Agent in the market where its foreign currency
exchange operations in respect of such Alternative Currency are then being
conducted, at or about 10:00 a.m., local time, on such date for the purchase of
dollars (or such Alternative Currency, as the case may be) for delivery two
Business Days later; provided that if at the time of any such determination, for
any reason, no such spot rate is being quoted, the Administrative Agent may use
any reasonable method it deems appropriate to determine such rate, and such
determination shall be presumed correct absent manifest error.
"Excluded Subsidiary" means any Subsidiary that is not a Guarantor (other
than Sopatex, S.A. and Axohm Industries, S.A. so long as 65% of the voting
Capital Stock of Sopatex, S.A. is pledged to the Administrative Agent for the
ratable benefit of the Lenders).
"Excluded Taxes" means, with respect to the Administrative Agent, any
Lender, the Issuing Bank or any other recipient of any payment to be made by or
on account of any obligation of the Borrower or the Subsidiary Borrower
hereunder, (a) income or franchise taxes imposed on (or measured by) such
recipient's net income (including branch profits or similar taxes) imposed by a
Governmental Authority of the jurisdiction in which such Lender or the
applicable lending office designated by such Lender and (b) in the case of a
Foreign Lender (other than an assignee pursuant to a request by the Borrower
under Section 2.19(b)), any withholding tax that is imposed on amounts payable
to such Foreign Lender (i) to the extent it is in effect and would apply as of
the date such Foreign Lender becomes a party to this Agreement or (ii) to the
extent it relates to payments received by a new lending office designated by
such Foreign Lender and is in effect and would apply at the time such lending
office is designated, except to the extent that such Foreign Lender (or its
assignor, if any) was entitled, at the time of designation of a new lending
office (or assignment), to receive additional amounts from the applicable
Borrower with respect to such withholding tax pursuant to Section 2.17(a) (other
than, in the case of (b)(i) or (b)(ii) above, any withholding tax imposed on
payments by the Borrower or the Subsidiary Borrower from a payment location
other than one specifically identified in this Agreement or any schedule hereto
as of the date such Foreign Lender becomes a party to this Agreement or
designates a new lending office), or (iii) that is attributable to such Foreign
Lender's failure to comply with Section 2.17(e).
"Existing Refinanced Indebtedness" means all Indebtedness of the Borrower
or the Subsidiary Borrower to be refinanced by the Indebtedness incurred
hereunder, as further described on Schedule 4.01(f).
"Federal Funds Effective Rate" means, for any day, the weighted average
(rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next
9
1/100 of 1%) of the quotations for such day for such transactions received by
the Administrative Agent from three Federal funds brokers of recognized standing
selected by it.
"Financial Officer" means the chief financial officer, principal
accounting officer, treasurer or controller of the Borrower.
"Fiscal Year Net Worth Increase Amounts" means, with respect to each
fiscal year of the Borrower, (a) the greater of (i) Zero Dollars ($0) and (ii)
50% of Consolidated Net Income for such fiscal year plus (b) 75% of the proceeds
(net of underwriting commissions and discounts and reasonable fees and expenses)
from the issuance of Capital Stock of the Borrower during such fiscal year.
"Fixed Charge Coverage Ratio" means, on any date, the ratio of (a) the
result of (i) Consolidated EBITDA for the period of four consecutive fiscal
quarters of the Consolidated Entities ended on or most recently ended as of such
date, minus (ii) Consolidated Capital Expenditures made during such four fiscal
quarters (other than (x) if such period ends on or prior to December 31, 1999,
100% of Capital Expenditures made by Gerhardi & Xxx.XxxX & Co. KG during such
period not to exceed $7,500,000 in the aggregate or (y) if such period ends on
March 31, 2000, 75% of Capital Expenditures made by Gerhardi & Xxx.XxxX & Co. KG
during such period not to exceed $5,625,000 in the aggregate) to (b) the sum of
(i) all principal payments due on, and with respect to, Consolidated
Indebtedness during the period of four consecutive fiscal quarters of the
Consolidated Entities ended on or most recently ended as of such date, plus (ii)
Consolidated Interest Expense for such four fiscal quarters, plus (iii) all
taxes due during such four fiscal quarters, plus (iv) all Restricted Payments
made during such four fiscal quarters.
"Foreign Lender" means any Lender that is organized under the laws of a
jurisdiction other than that in which the Relevant Jurisdiction is located.
"Foreign Plan" means any pension plan or other deferred compensation plan,
program or arrangement maintained by any Foreign Subsidiary which may or may
not, under applicable local law, be required to be funded through a trust or
other funding vehicle.
"Foreign Subsidiary" means any Subsidiary that is not organized under the
laws of any jurisdiction in the United States.
"GAAP" means generally accepted accounting principles in the United States
of America.
"Governmental Authority" means the government of the United States of
America, any other nation or any political subdivision thereof, whether state or
local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.
"Granting Lender" has the meaning assigned to such term in Section
10.04(h).
10
"Guarantee" of or by any Person (the "guarantor") means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic
effect of guaranteeing any Indebtedness or other obligation of any other Person
(the "primary obligor") in any manner, whether directly or indirectly, and
including any obligation of the guarantor, direct or indirect, (a) to purchase
or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness or other obligation or to purchase (or to advance or supply funds
for the purchase of) any security for the payment thereof, (b) to purchase or
lease property, securities or services for the purpose of assuring the owner of
such Indebtedness or other obligation of the payment thereof, (c) to maintain
working capital, equity capital or any other financial statement condition or
liquidity of the primary obligor so as to enable the primary obligor to pay such
Indebtedness or other obligation or (d) as an account party or applicant in
respect of any letter of credit or letter of guaranty issued to support such
Indebtedness or obligation; provided, that the term Guarantee shall not include
endorsements for collection or deposit in the ordinary course of business.
"Guarantee Agreement" means each Guarantee delivered by the applicable
Subsidiary to the Administrative Agent whereby such Subsidiary shall guarantee
the obligations under the Loan Documents, which Guarantee shall be substantially
in the form of Exhibit C.
"Guarantors" means the Subsidiaries that are or become parties to a
Guarantee Agreement.
"Hazardous Materials" means all explosive or radioactive substances or
wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos containing
materials, polychlorinated biphenyls, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.
"Hedging Agreement" means any interest rate protection agreement, foreign
currency exchange agreement, commodity price protection agreement or other
interest or currency exchange rate or commodity price hedging arrangement.
"Indebtedness" of any Person means, without duplication, (a) all
obligations of such Person for borrowed money or with respect to deposits or
advances of any kind, (b) all obligations of such Person evidenced by bonds,
debentures, notes or similar instruments, (c) all obligations of such Person
upon which interest charges are customarily paid, (d) all obligations of such
Person under conditional sale or other title retention agreements relating to
property acquired by such Person, (e) all obligations of such Person in respect
of the deferred purchase price of property or services (excluding current
accounts payable incurred in the ordinary course of business), (f) all
Indebtedness of others secured by (or for which the holder of such Indebtedness
has an existing right, contingent or otherwise, to be secured by) any Lien on
property owned or acquired by such Person, whether or not the Indebtedness
secured thereby has been assumed, (g) all Guarantees by such Person of
Indebtedness of others, (h) all Capital Lease Obligations of such Person and all
obligations of such Person under Synthetic Leases, (i) all obligations,
contingent or otherwise, of such Person as an
11
account party or applicant in respect of letters of credit and letters of
guaranty, (j) all obligations of such Person in respect of Hedging Agreements,
(k) all obligations, contingent or otherwise, of such Person in respect of
bankers' acceptances, and (l) all obligations of such Person arising with
respect to Capital Stock that is mandatorily redeemable by such Person. The
Indebtedness of any Person shall include the Indebtedness of any other entity
(including any partnership in which such Person is a general partner) to the
extent such Person is liable therefor as a result of such Person's ownership
interest in or other relationship with such entity, except to the extent the
terms of such Indebtedness provide that such Person is not liable therefor.
"Indemnified Taxes" means Taxes other than Excluded Taxes.
"Indemnitee" has the meaning assigned to such term in Section 10.03(b).
"Information Memorandum" means the Confidential Information Memorandum
dated May 27, 1999 relating to the Borrower and the Transactions.
"Interest Election Request" means a request by a Borrower to convert or
continue a Borrowing in accordance with Section 2.07.
"Interest Payment Date" means (a) with respect to any ABR Loan (other than
a Swingline Loan), the last day of each calendar month, (b) with respect to any
Eurocurrency Loan with an Interest Period of one, two or three months, the last
day of the Interest Period applicable to the Borrowing of which such Loan is a
part and, in the case of a Eurocurrency Loan with an Interest Period of more
than three months' duration, each day at intervals of three months after the
first day of such Interest Period and the last day of such Interest Period and
(c) with respect to any Swingline Loan, the Swingline Loan Maturity Date
applicable to such Swingline Loan.
"Interest Period" means, with respect to any Eurocurrency Borrowing, the
period commencing on the date of such Borrowing and ending on the numerically
corresponding day in the calendar month that is one, two, three, six, nine or
twelve months thereafter, as the Borrower or the Subsidiary Borrower may elect;
provided, that (i) if any Interest Period would end on a day other than a
Business Day, such Interest Period shall be extended to the next succeeding
Business Day unless, in the case of a Eurocurrency Borrowing only, such next
succeeding Business Day would fall in the next calendar month, in which case
such Interest Period shall end on the next preceding Business Day and (ii) any
Interest Period that commences on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the last
calendar month of such Interest Period) shall end on the last Business Day of
the last calendar month of such Interest Period. For purposes hereof, the date
of a Borrowing initially shall be the date on which such Borrowing is made and,
in the case of a Revolving Borrowing, thereafter shall be the effective date of
the most recent conversion or continuation of such Borrowing.
"Issuing Bank" means The Chase Manhattan Bank, in its capacity as the
issuer of Letters of Credit hereunder, and its successors in such capacity as
provided in Section 2.05(i). The Issuing
12
Bank may, in its discretion, arrange for one or more Letters of Credit to be
issued by Affiliates of the Issuing Bank, in which case the term "Issuing Bank"
shall include any such Affiliate with respect to Letters of Credit issued by
such Affiliate.
"Judgment Currency" has the meaning assigned to such term in Section
10.14(b).
"LC Disbursement" means a payment made by the Issuing Bank pursuant to a
Letter of Credit.
"LC Exposure" means, at any time, the sum of (a) the aggregate undrawn
amount of all outstanding Letters of Credit at such time plus (b) the aggregate
amount of all LC Disbursements that have not yet been reimbursed by or on behalf
of the Borrower at such time. The LC Exposure of any Lender at any time shall be
its Applicable RC Percentage of the total LC Exposure at such time.
"Lenders" means the Persons listed on Schedule 2.01 and any other Person
that shall have become a party hereto pursuant to an Assignment and Acceptance,
other than any such Person that ceases to be a party hereto pursuant to an
Assignment and Acceptance. Unless the context otherwise requires, the term
"Lenders" includes the Swingline Lender.
"Letter of Credit" means any letter of credit issued pursuant to this
Agreement.
"Leverage Ratio" means, on any date, the ratio of (a) Consolidated
Indebtedness as of such date to (b) Consolidated EBITDA for the period of four
consecutive fiscal quarters of the Consolidated Entities ended on or most
recently ended as of such date.
"LIBO Rate" means, with respect to any Eurocurrency Borrowing in any
Committed Currency for any Interest Period, the rate appearing on the page for
such Committed Currency of the Telerate Service (or on any successor or
substitute page of such service, or any successor to or substitute for such
service, providing rate quotations comparable to those currently provided on
such page of such service, as determined by the Administrative Agent from time
to time for purposes of providing quotations of interest rates applicable to
deposits in such Committed Currency in the London interbank market) at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, as the rate for deposits in such Committed
Currency with a maturity comparable to such Interest Period. In the event that
such rate is not available at such time for any reason, then the "LIBO Rate"
with respect to such Eurocurrency Borrowing for such Interest Period shall be
the rate at which deposits in such Committed Currency of $5,000,000 (or the
Dollar Equivalent of which is approximately equal to $5,000,000) and for a
maturity comparable to such Interest Period are offered by the principal London
office of the Person then serving as the Administrative Agent in immediately
available funds in the London interbank market at approximately 11:00 a.m.,
London time, two Business Days prior to the commencement of such Interest
Period.
13
"Lien" means, with respect to any asset, (a) any mortgage, deed of trust,
lien, pledge, hypothecation, encumbrance, charge or security interest in, on or
of such asset, (b) the interest of a vendor or a lessor under any conditional
sale agreement, capital lease or title retention agreement (or any financing
lease having substantially the same economic effect as any of the foregoing)
relating to such asset and (c) in the case of securities, any purchase option,
call or similar right of a third party with respect to such securities.
"Loan Documents" means this Agreement, each Guarantee Agreement, each
Security Document, each promissory note issued pursuant to Section 2.09(e) and
each Hedging Agreement between a Loan Party and a Lender, as each may be amended
or supplemented from time to time.
"Loan Parties" means the Borrower, the Subsidiary Borrower and the
Guarantors.
"Loans" means the loans made by the Lenders to the Borrower and the
Subsidiary Borrower pursuant to this Agreement.
"Material Adverse Effect" means a material adverse effect on (a) the
business, assets, operations or condition, financial or otherwise, of the
Borrower and the Subsidiaries, taken as a whole, (b) the ability of any Loan
Party to perform, or the enforceability against any Loan Party of, any of its
obligations under any Loan Document or (c) the rights of or benefits available
to the Lenders under any Loan Document. For purposes of clause (a) of this
definition, a "Material Adverse Effect" shall be deemed to arise from any action
or omission or the occurrence of any event or the existence of any fact or
condition involving, individually or in the aggregate, more than $5,000,000.
"Material Indebtedness" means Indebtedness (other than the Loans and
Letters of Credit), or obligations in respect of one or more Hedging Agreements,
of any one or more of the Borrower and its Subsidiaries in an aggregate
principal amount exceeding $1,000,000 in the aggregate. For purposes of
determining Material Indebtedness, the "principal amount" of the obligations of
the Borrower or any Subsidiary in respect of any Hedging Agreement at any time
shall be the maximum aggregate amount (giving effect to any netting agreements)
that the Borrower or such Subsidiary would be required to pay if such Hedging
Agreement were terminated at such time.
"Maturity Date" means, with respect to any Revolving Loan, the Revolving
Credit Maturity Date, and, with respect to any Term Loan, the Term Loan Maturity
Date.
"Maximum Rate" has the meaning assigned to such term in Section 10.13.
"Money Market", when used in reference to any Loan or Borrowing, refers to
whether such Loan or the Loans comprising such Borrowing are bearing interest at
a rate determined by reference to the Money Market Rate.
"Money Market Rate" means the quoted rate per annum offered by the
applicable Swingline Lender to the Borrower no later than three hours after the
quote is requested by the Borrower, which
14
quote shall be requested by the Borrower, in no event later than 11:00 a.m., New
York City time, one Business Day before the date of the proposed Borrowing.
"Moody's" means Xxxxx'x Investors Service, Inc.
"Multiemployer Plan" means a multiemployer plan as defined in Section
4001(a)(3) of ERISA.
"Obligations" means the obligations of the Subsidiary Borrower under this
Agreement and the other Loan Documents, whether for principal, interest,
guaranties, reimbursement obligations, fees, indemnities, costs, expenses
(including, without limitation, all reasonable fees and disbursements of counsel
to the Administrative Agent or any Lender) or otherwise. Without limiting the
generality of the foregoing, the definition of "Obligations" includes all
amounts that would be owed by the Subsidiary Borrower to the Lenders and the
Administrative Agent under this Agreement and the other Loan Documents but for
the fact that they are unenforceable or not allowable due to the existence of a
bankruptcy, reorganization or similar proceeding involving the Subsidiary
Borrower.
"Other Taxes" means any and all present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies arising
from any payment made hereunder or from the execution, delivery or enforcement
of, or otherwise with respect to, this Agreement.
"Participant" has the meaning assigned such term in Section 10.04(e).
"Participating Member State" means each state so described in any EMU
Legislation.
"PBGC" means the Pension Benefit Guaranty Corporation referred to and
defined in ERISA and any successor entity performing similar functions.
"Permitted Business Acquisition" means any acquisition if immediately
after giving effect thereto: (a) such acquisition is of all or substantially all
the assets of, or shares or other equity interests in, a Person or division or
line of business of a Person (or any subsequent investment made in a previous
Permitted Business Acquisition) and at least a significant portion thereof
relates to business incidental, similar or complementary to existing businesses
of any Consolidated Entity or to the design and manufacture of engineered
specialty products for thermal/acoustical/insulation and filtration/separation
applications, (b) no Default shall have occurred and be continuing or would
result therefrom, (c) all transactions related thereto shall be consummated in
accordance with applicable laws, (d) any acquired or newly formed corporation,
partnership or limited liability company shall be a Wholly-Owned Subsidiary and
all actions required to be taken, if any, with respect to such acquired or newly
formed Subsidiary under Section 5.09 shall have been taken and (e) the Borrower
shall be in compliance, on a pro forma basis after giving effect to such
acquisition or formation, with the covenants contained in Sections 6.12, 6.13
and 6.14 recomputed as at the last day of the most recently ended fiscal quarter
of the Borrower as if, for the purposes of calculating
15
Consolidated Interest Expense, principal due on Consolidated Indebtedness and
Consolidated Capital Expenditures but not for the purposes of calculating
Consolidated Net Income and Consolidated EBITDA, such acquisition and related
financings or other transactions had occurred on the first day of the period for
testing such compliance, and, if the amount of such investment or series of
related investments exceeds $5,000,000, then the Borrower shall have delivered
to the Administrative Agent and the Lenders an officers' certificate to such
effect, together with all relevant financial information for such Subsidiary or
assets.
"Permitted Encumbrances" means:
(a) Liens imposed by law for taxes that are not yet due or are being
contested in compliance with Section 5.04;
(b) carriers', warehousemen's, mechanics', materialmen's,
repairmen's and other like Liens imposed by law, arising in the ordinary
course of business and securing obligations that (i) are not overdue by
more than 30 days or (ii) are being contested in compliance with Section
5.04;
(c) pledges and deposits made in the ordinary course of business in
compliance with workers' compensation, unemployment insurance and other
social security laws or regulations;
(d) deposits to secure the performance of bids, trade contracts,
leases, statutory obligations, surety and appeal bonds, performance bonds
and other obligations of a like nature, in each case in the ordinary
course of business;
(e) judgment liens in respect of judgments that do not constitute an
Event of Default under clause (k) of Article VII;
(f) easements, zoning restrictions, rights-of-way and similar
encumbrances on real property imposed by law or arising in the ordinary
course of business that do not secure any monetary obligations and do not
materially detract from the value of the affected property or interfere
with the ordinary conduct of business of the Borrower or any Subsidiary;
and
(g) where the context otherwise requires and without duplication,
Liens permitted under clauses (b) through (d) of Section 6.02.
"Permitted Investments" means:
(a) direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United States of
America (or by any agency thereof to
16
the extent such obligations are backed by the full faith and credit of the
United States of America), in each case maturing within one year from the
date of acquisition thereof;
(b) investments in commercial paper maturing within 270 days from
the date of acquisition thereof and having, at such date of acquisition,
the highest credit rating obtainable from S&P or from Moody's;
(c) investments in certificates of deposit, banker's acceptances and
time deposits maturing within 180 days from the date of acquisition
thereof issued or guaranteed by or placed with, and money market deposit
accounts issued or offered by, any domestic office of any bank organized
under the laws of the United States of America or any State thereof which
has a combined capital and surplus and undivided profits of not less than
$500,000,000 or, so long as such investments do not exceed $250,000 in the
aggregate, of any other bank;
(d) fully collateralized repurchase agreements with a term of not
more than 30 days for securities described in clause (a) above and entered
into with a financial institution satisfying the criteria described in
clause (c) above; and
(e) investments in auction rate preferred stock maturing within 180
days of the date of acquisition thereof and which is rated "AAA" by S&P,
not exceeding $5,000,000 in the aggregate.
"Person" means any natural person, corporation, limited liability company,
trust, joint venture, association, company, partnership, Governmental Authority
or other entity.
"Plan" means any Domestic Plan or Foreign Plan.
"Pledge Agreement" means each pledge agreement delivered by the Borrower
or any Subsidiary to the Administrative Agent, which pledge agreement shall be
substantially in the form of Exhibit D.
"Prime Rate" means the rate of interest per annum publicly announced from
time to time by The Chase Manhattan Bank as its prime rate in effect at its
principal office in New York City; each change in the Prime Rate shall be
effective from and including the date such change is publicly announced as being
effective.
"Register" has the meaning assigned to such term in Section 10.04(c).
"Regulation D" means Regulation D of the Board as from time to time in
effect and all official rulings and interpretations thereunder or thereof.
17
"Regulation T" means Regulation T of the Board as from time to time in
effect and all official rulings and interpretations thereunder or thereof.
"Regulation U" means Regulation U of the Board as from time to time in
effect and all official rulings and interpretations thereunder or thereof.
"Regulation X" means Regulation X of the Board as from time to time in
effect and all official rulings and interpretations thereunder or thereof.
"Related Parties" means, with respect to any specified Person, such
Person's Affiliates and the respective directors, officers, employees, agents
and advisors of such Person and such Person's Affiliates.
"Relevant Jurisdiction" means (a) in the case of any Loan to the Borrower,
the United States of America or any state thereof and (b) in the case of any
Loan to the Subsidiary Borrower, the Federal Republic of Germany.
"Required Lenders" means, at any time while any Loan or Letter of Credit
is outstanding, Lenders having Credit Exposures representing more than 50% of
the sum of the total Credit Exposures at such time and, at any time while no
Loan or Letter of Credit is outstanding, Lenders having more than 50% of the sum
of the Commitments.
"Reset Date" has the meaning assigned to such term in Section 1.05.
"Restricted Payment" means any dividend or other distribution (whether in
cash, securities or other property) or setting aside of property for any
dividend or other distribution with respect to any shares of any class of
Capital Stock of the Borrower or any Subsidiary, or any payment (whether in
cash, securities or other property) or setting aside of property, including any
sinking fund or similar deposit, on account of the purchase, redemption,
retirement, acquisition, cancellation or termination of any such shares of
Capital Stock of the Borrower or any Subsidiary or any option, warrant or other
right to acquire any such shares of Capital Stock of the Borrower or any
Subsidiary.
"Revolving Credit Commitment" means, with respect to each Lender, the
commitment of such Lender to make Revolving Loans and to acquire participations
in Letters of Credit and Swingline Loans hereunder, expressed as an amount
representing the maximum aggregate amount of such Lender's Revolving Credit
Exposure hereunder, as such commitment may be (a) reduced from time to time
pursuant to Section 2.08 and (b) reduced or increased from time to time pursuant
to assignments by or to such Lender pursuant to Section 10.04. The initial
amount of each Lender's Revolving Credit Commitment is set forth on Schedule
2.01, or in the Assignment and Acceptance pursuant to which such Lender shall
have assumed its Revolving Credit Commitment, as applicable. The initial
aggregate amount of the Lenders' Revolving Credit Commitments is $50,000,000.
18
"Revolving Credit Exposure" means, with respect to any Lender at any time,
the sum of the outstanding principal amount of such Lender's Revolving Loans and
its LC Exposure and Swingline Exposure at such time.
"Revolving Credit Maturity Date" means June 30, 2002.
"Revolving Loan" means a Loan made pursuant to Section 2.01(a).
"S&P" means Standard & Poor's.
"Security Documents" means each Pledge Agreement and each other security
document from time to time delivered to the Administrative Agent (including all
financing statements, assignments, stock certificates and stock powers).
"Significant Subsidiary" means (a) (i) each Subsidiary, including its
subsidiaries, and (ii) the combined Excluded Subsidiaries, if such Subsidiary or
the combined Excluded Subsidiaries, as applicable, meet either of the following
conditions: (A) for the period of four consecutive fiscal quarters of the
Borrower most recently ended, the gross revenues of such Subsidiary or of the
combined Excluded Subsidiaries exceed $15,000,000, as determined on a
consolidated basis in accordance with GAAP, or (B) as of the end of the most
recently ended fiscal quarter of the Borrower, the gross assets of such
Subsidiary or of the combined Excluded Subsidiaries exceed $5,000,000, as
determined on a consolidated basis in accordance with GAAP, (b) each Loan Party
(other than the Borrower) and (c) Sopatex, S.A. and Axohm Industries, S.A.
"SPC" has the meaning assigned to such term in Section 10.04(h).
"Statutory Reserve Rate" means a fraction (expressed as a decimal), the
numerator of which is the number one and the denominator of which is the number
one minus the aggregate of the maximum reserve percentages (including any
marginal, special, emergency or supplemental reserves) expressed as a decimal
established by any Governmental Authority with jurisdiction over the
Administrative Agent or any Lender (including any branch, affiliate or other
funding office thereof making or holding a Loan) for any category of liabilities
which includes deposits by reference to which the Base CD Rate or the Adjusted
LIBO Rate in respect of any Borrowing is determined. Such reserve percentages
shall include those imposed pursuant to Regulation D. Eurocurrency Loans shall
be deemed to constitute eurocurrency funding and to be subject to such reserve
requirements without benefit of or credit for proration, exemptions or offsets
that may be available from time to time to any Lender under Regulation D or any
comparable regulation. The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in any reserve
percentage.
"subsidiary" means, with respect to any Person (the "parent") at any date,
any corporation, limited liability company, partnership, association or other
entity the accounts of which would be consolidated with those of the parent in
the parent's consolidated financial statements if such
19
financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership,
association or other entity (a) of which securities or other ownership interests
representing more than 50% of the equity or more than 50% of the ordinary voting
power or, in the case of a partnership, more than 50% of the general partnership
interests are, as of such date, owned, controlled or held, or (b) that is, as of
such date, otherwise Controlled, by the parent or one or more subsidiaries of
the parent or by the parent and one or more subsidiaries of the parent.
Notwithstanding the foregoing, for purposes of this Agreement, Charter Medical
shall not be considered a "subsidiary" of the Borrower or any of its
subsidiaries.
"Subsidiary" means any subsidiary of the Borrower including any subsidiary
of the Borrower created or acquired by the Borrower after the date hereof.
"Subsidiary Borrower" means Lydall Deutschland Holding, GmbH, a German
corporation.
"Swingline Exposure" means, at any time, the aggregate principal amount of
all Swingline Loans outstanding at such time. The Swingline Exposure of any
Lender at any time shall be its Applicable RC Percentage of the total Swingline
Exposure at such time.
"Swingline Lender" means The Chase Manhattan Bank or Fleet National Bank,
as the case may be, in its capacity as lender of Swingline Loans hereunder.
"Swingline Loan" means a Loan made pursuant to Section 2.04.
"Swingline Loan Maturity Date" means the maturity date requested by the
Borrower in connection with a Swingline Loan (which date shall in no event be
later than the earlier of (a) 10 Business Days after the date of Borrowing
thereof and (b) the Revolving Credit Maturity Date).
"Synthetic Lease" means any synthetic lease, tax retention operating
lease, off-balance sheet loan or similar off-balance sheet financing product
where such transaction is considered borrowed money indebtedness for tax
purposes but is classified as an operating lease in accordance with GAAP.
"Target Operating Day" means any day that is not (a) a Saturday or Sunday,
(b) Christmas Day or New Year's Day or (c) any other day on which the
Trans-European Real-time Gross Settlement Operating System (or any successor
settlement system) is not operating (as determined by the Administrative Agent).
"Taxes" means any and all present or future taxes, levies, imposts,
duties, deductions, charges or withholdings imposed by any Governmental
Authority.
"Term Loan" means a Loan pursuant to Section 2.01(b).
20
"Term Loan Commitment" means, with respect to each Lender, the commitment
of such Lender to make Term Loans as set forth on Schedule 2.01. The initial
aggregate amount of the Lenders' Term Loan Commitments is 18,500,000 euros.
"Term Loan Maturity Date" means June 30, 2004.
"Three-Month Secondary CD Rate" means, for any day, the secondary market
rate for three-month certificates of deposit reported as being in effect on such
day (or, if such day is not a Business Day, the next preceding Business Day) by
the Board through the public information telephone line of the Federal Reserve
Bank of New York (which rate will, under the current practices of the Board, be
published in Federal Reserve Statistical Release H.15(519) during the week
following such day) or, if such rate is not so reported on such day or such next
preceding Business Day, the average of the secondary market quotations for
three-month certificates of deposit of major money center banks in New York City
received at approximately 10:00 a.m., New York City time, on such day (or, if
such day is not a Business Day, on the next preceding Business Day) by the
Administrative Agent from three negotiable certificate of deposit dealers of
recognized standing selected by it.
"Transactions" means the execution, delivery and performance by each of
the Borrower and the Subsidiaries of each of the Loan Documents to which it is a
party, the borrowing of Loans, the use of the proceeds thereof and the issuance
of Letters of Credit hereunder.
"Treaty on European Union" means the Treaty of Rome of March 25, 1957, as
amended by the Single Xxxxxxxx Xxx 0000 and the Maastricht Treaty (which was
signed at Maastricht on February 7, 1992, and came into force on November 1,
1993), as amended from time to time.
"Type", when used in reference to any Loan or Borrowing, refers to whether
the rate of interest on such Loan, or on the Loans comprising such Borrowing, is
determined by reference to the Adjusted LIBO Rate or the Alternate Base Rate.
"Wholly-Owned Subsidiary" means a Subsidiary all the Capital Stock of
which (other than directors' qualifying shares) is owned by the Borrower and/or
one or more other Wholly-Owned Subsidiaries.
"Withdrawal Liability" means liability to a Multiemployer Plan as a result
of a complete or partial withdrawal from such Multiemployer Plan, as such terms
are defined in Part I of Subtitle E of Title IV of ERISA.
Section I.2. Classification of Loans and Borrowings. For purposes of this
Agreement, Loans may be classified and referred to by Class (e.g., a "Revolving
Loan") or by Type (e.g., a "Eurocurrency Loan") or by Class and Type (e.g., a
"Eurocurrency Revolving Loan"). Borrowings also may be classified and referred
to by Class (e.g., a "Revolving Borrowing") or by Type (e.g., a "Eurocurrency
Borrowing") or by Class and Type (e.g., a "Eurocurrency Revolving Borrowing").
21
Section I.3. Terms Generally. The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words "include", "includes" and "including" shall
be deemed to be followed by the phrase "without limitation". The word "will"
shall be construed to have the same meaning and effect as the word "shall".
Unless the context requires otherwise (a) any definition of or reference to any
agreement, instrument or other document herein shall be construed as referring
to such agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference
herein to any Person shall be construed to include such Person's successors and
assigns, (c) the words "herein", "hereof" and "hereunder", and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to
any particular provision hereof, (d) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement and (e) the words
"asset" and "property" shall be construed to have the same meaning and effect
and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights.
Section I.4. Accounting Terms; GAAP. Except as otherwise expressly
provided herein, all terms of an accounting or financial nature shall be
construed in accordance with GAAP, as in effect from time to time; provided
that, if the Borrower notifies the Administrative Agent that the Borrower
requests an amendment to any provision hereof to eliminate the effect of any
change occurring after the date hereof in GAAP or in the application thereof on
the operation of such provision (or if the Administrative Agent notifies the
Borrower that the Required Lenders request an amendment to any provision hereof
for such purpose), regardless of whether any such notice is given before or
after such change in GAAP or in the application thereof, then such provision
shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective until such notice shall have been
withdrawn or such provision amended in accordance herewith.
Section I.5. Exchange Rates. (a) Not later than 1:00 p.m., New York City
time, on each Calculation Date, the Administrative Agent shall (i) determine the
Exchange Rate as of such Calculation Date with respect to each Alternative
Currency and (ii) give notice thereof to the Lenders and the Borrower. The
Exchange Rates so determined shall become effective on the first Business Day
immediately following the relevant Calculation Date (a "Reset Date"), shall
remain effective until the next succeeding Reset Date, and shall for all
purposes of this Agreement (other than Section 2.07, Section 2.14(i), Section
2.15(e)(ii), Section 10.14, or any other provision expressly requiring the use
of a current Exchange Rate) be the Exchange Rates employed in converting any
amounts between dollars and Alternative Currencies; and (b) not later than 5:00
p.m., New York City time, on each Reset Date and each Borrowing Date with
respect to Loans denominated in an Alternative Currency, the Administrative
Agent shall (i) determine the Dollar Equivalent of the Credit Exposure at such
time (after giving effect to any Loans made or repaid on such date) and (ii)
notify the Lenders and the Borrower of the results of such determination.
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ARTICLE II
The Credits
Section II.1. Commitments. (a) Subject to the terms and conditions set
forth herein, each Lender agrees to make Revolving Loans to the Borrower from
time to time during the Availability Period in an aggregate principal amount
that will not result in the Dollar Equivalent of such Lender's Revolving Credit
Exposure exceeding such Lender's Revolving Credit Commitment. Within the
foregoing limits and subject to the terms and conditions set forth herein, the
Borrower may borrow, prepay and reborrow Revolving Loans.
(b) Subject to the terms and conditions set forth herein, each
Lender agrees to make a Term Loan in euros to the Subsidiary Borrower on the
Closing Date in an aggregate principal amount equal to such Lender's Term Loan
Commitment.
Section II.2. Loans and Borrowings. (a) Each Revolving Loan shall be made
as part of a Borrowing consisting of Revolving Loans made by the Lenders ratably
in accordance with their respective Revolving Credit Commitments. Each Term Loan
shall be made as part of a Borrowing consisting of Term Loans made by the
Lenders ratably in accordance with their respective Term Loan Commitments. The
failure of any Lender to make any Loan required to be made by it shall not
relieve any other Lender of its obligations hereunder; provided that the
Commitments of the Lenders are several and no Lender shall be responsible for
any other Lender's failure to make Loans as required.
(b) Subject to Section 2.14 and Section 2.15(e), each Revolving
Borrowing and Term Borrowing shall be comprised of ABR Loans (if denominated in
dollars) or Eurocurrency Loans, as the Borrower or the Subsidiary Borrower, as
applicable, may request in accordance herewith. Each Swingline Borrowing shall
be denominated in dollars and shall be an ABR Loan or Money Market Loan, as the
Borrower may request in accordance herewith. Each Lender at its option may make
any Loan by causing any domestic or foreign branch or Affiliate of such Lender
to make such Loan; provided that any exercise of such option shall not affect
the obligation of the Borrower or the Subsidiary Borrower, as applicable, to
repay such Loan in accordance with the terms of this Agreement.
(c) At the commencement of each Interest Period for any Eurocurrency
Borrowing, such Borrowing shall be in an aggregate amount that is not less than
$1,000,000 (or the Alternative Currency Equivalent thereof) and, in the case of
a Borrowing denominated in dollars, an integral multiple of $100,000. At the
time that each ABR Borrowing is made, such Borrowing shall be in an aggregate
amount that is not less than $500,000 and an integral multiple of $100,000;
provided that an ABR Borrowing may be in an aggregate amount that is equal to
the entire unused balance of the total Commitments or that is required to
finance the reimbursement of an LC Disbursement as contemplated by Section
2.05(e). Each Swingline Borrowing shall be in an amount
23
that is not less than $100,000. Borrowings of more than one Type and Class may
be outstanding at the same time; provided that there shall not at any time be
more than a total of ten Eurocurrency Borrowings outstanding.
(d) Notwithstanding any other provision of this Agreement, no
Borrower shall be entitled to request, or to elect to convert or continue, any
Borrowing if the Interest Period requested with respect thereto would end after
the Maturity Date.
Section II.3. Requests for Revolving or Term Borrowings. To request a
Revolving Borrowing or Term Borrowing, the Borrower or the Subsidiary Borrower,
as applicable, shall notify the Administrative Agent of such request by
telephone (a) in the case of a Eurocurrency Borrowing denominated in dollars,
not later than 11:00 a.m., New York City time, three Business Days before the
date of the proposed Borrowing, (b) in the case of an ABR Borrowing, not later
than 11:00 a.m., New York City time, one Business Day before the date of the
proposed Borrowing, and (c) in the case of a Eurocurrency Borrowing denominated
in an Alternative Currency, not later than 11:00 a.m., London time, three
Business Days before the date of the proposed Borrowing. Each such telephonic
Borrowing Request shall be confirmed promptly by hand delivery or telecopy to
the Administrative Agent of a written Borrowing Request in a form approved by
the Administrative Agent and signed by the Borrower or the Subsidiary Borrower,
as applicable. Each such telephonic and written Borrowing Request shall specify
the following information in compliance with Section 2.02:
(i) the aggregate amount of the requested Borrowing;
(ii) the date of such Borrowing, which shall be a Business Day;
(iii) whether such Borrowing is to be an ABR Borrowing or a
Eurocurrency Borrowing;
(iv) in the case of a Eurocurrency Borrowing, the currency thereof,
which shall be a Committed Currency (and which, in the case of a Term
Borrowing, shall be in euros);
(v) in the case of a Eurocurrency Borrowing, the initial Interest
Period to be applicable thereto, which shall be a period contemplated by
the definition of the term "Interest Period"; and
(vi) the location and number of the Borrower's or the Subsidiary
Borrower's account, as applicable, to which funds are to be disbursed,
which shall comply with the requirements of Section 2.06.
If no election as to the Type of Revolving Borrowing or Term Borrowing is
specified, then the requested Borrowing shall be an ABR Borrowing if denominated
in dollars or a Eurocurrency Borrowing if denominated in an Alternative
Currency. If no election as to the currency of
24
Borrowing is specified, then the requested Borrowing shall be denominated in
dollars. If no Interest Period is specified with respect to any requested
Eurocurrency Borrowing, then the Borrower or the Subsidiary Borrower, as
applicable, shall be deemed to have selected an Interest Period of one month's
duration. Promptly following receipt of a Borrowing Request in accordance with
this Section 2.03, the Administrative Agent shall advise each Lender of the
details thereof and of the amount of such Lender's Loan to be made as part of
the requested Borrowing. If the Borrower or the Subsidiary Borrower, as
applicable, shall revoke a Borrowing Request, it shall be liable for all costs
under Section 2.16 as if such revocation was treated as a prepayment.
Section II.4. Swingline Loans. (a) Subject to the terms and conditions set
forth herein, each Swingline Lender agrees to make Swingline Loans to the
Borrower from time to time during the Availability Period, in an aggregate
principal amount at any time outstanding that will not result in (i) the
aggregate principal amount of outstanding Swingline Loans exceeding $5,000,000
or (ii) the Dollar Equivalent of the total Revolving Credit Exposures exceeding
the total Revolving Credit Commitments; provided that no Swingline Lender shall
be required to make a Swingline Loan to refinance an outstanding Swingline Loan.
If a Swingline Lender shall have received written notice that a Default has
occurred and is continuing or that the Revolving Credit Commitments have been
terminated, such Swingline Lender shall not make additional Swingline Loans
without the consent of each Lender. Within the foregoing limits and subject to
the terms and conditions set forth herein, the Borrower may borrow, prepay and
reborrow Swingline Loans. Upon request, the Administrative Agent shall provide
notice to any Swingline Lender of the aggregate principal amount of outstanding
Swingline Loans and the Dollar Equivalent of the total Revolving Credit
Exposures.
(b To request a Swingline Borrowing, the Borrower shall notify the
Administrative Agent of such request by telephone (confirmed by telecopy), not
later than 11:00 a.m., New York City time, on the day of a proposed Swingline
Borrowing. Each such notice shall be irrevocable and shall specify (i) the
requested date (which shall be a Business Day), (ii) the amount of the requested
Swingline Loan, and (iii) the applicable Swingline Lender. The Administrative
Agent will promptly advise the applicable Swingline Lender of any such notice
received from the Borrower. The applicable Swingline Lender shall make each
Swingline Loan available to the Borrower by means of a credit to the general
deposit account of the Borrower with such Swingline Lender (or, in the case of a
Swingline Loan made to finance the reimbursement of an LC Disbursement as
provided in Section 2.05(e), by remittance to the Issuing Bank) on the requested
date of such Swingline Loan by 3:00 p.m., New York City time.
(c A Swingline Lender may by written notice given to the
Administrative Agent not later than 10:00 a.m., New York City time, on the
Business Day of the proposed acquisition of participations, require the Lenders
to acquire participations on such Business Day in all or a portion of the
Swingline Loans outstanding. Such notice shall specify the aggregate amount of
Swingline Loans in which Lenders will participate. Promptly upon receipt of such
notice, the Administrative Agent will give notice thereof to each Lender,
specifying in such notice such Lender's Applicable RC Percentage of such
Swingline Loan or Loans. Each Lender hereby absolutely and
25
unconditionally agrees, upon the date of the proposed acquisition of
participations as provided above, to pay to the Administrative Agent, for the
account of the applicable Swingline Lender, such Lender's Applicable RC
Percentage of such Swingline Loan or Loans. Each Lender acknowledges and agrees
that its obligation to acquire participations in Swingline Loans pursuant to
this paragraph is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including the occurrence and continuance of a Default
or reduction or termination of the Commitments but excluding Swingline Loans
made in contravention of the second sentence of Section 2.04(a), and that each
such payment shall be made without any offset, abatement, withholding or
reduction whatsoever. Each Lender shall comply with its obligation under this
paragraph by wire transfer of immediately available funds, in the same manner as
provided in Section 2.06 with respect to Revolving Loans made by such Lender
(and Section 2.06 shall apply, mutatis mutandis, to the payment obligations of
the Lenders), and the Administrative Agent shall promptly pay to the applicable
Swingline Lender the amounts so received by it from the Lenders. The
Administrative Agent shall notify the Borrower of any participations in any
Swingline Loan acquired pursuant to this paragraph, and thereafter payments in
respect of such Swingline Loan shall be made to the Administrative Agent and not
to the applicable Swingline Lender. Any amounts received by a Swingline Lender
from the Borrower (or other party on behalf of the Borrower) in respect of a
Swingline Loan after receipt by such Swingline Lender of the proceeds of a sale
of participations therein shall be promptly remitted to the Administrative
Agent; any such amounts received by the Administrative Agent shall be promptly
remitted by the Administrative Agent to the Lenders that shall have made their
payments pursuant to this paragraph and to such Swingline Lender, as their
interests may appear. The purchase of participations in a Swingline Loan
pursuant to this paragraph shall not relieve the Borrower of any default in the
payment thereof.
Section II.5. Letters of Credit. (a) General. Subject to the terms and
conditions set forth herein, the Borrower may request the issuance of Letters of
Credit for its own account, in a form reasonably acceptable to the
Administrative Agent and the Issuing Bank, at any time and from time to time
during the Availability Period. If the Issuing Bank shall have received written
notice that a Default has occurred and is continuing or that the Revolving
Credit Commitments have been terminated, the Issuing Bank shall not issue
Letters of Credit without the consent of each Lender. In the event of any
inconsistency between the terms and conditions of this Agreement and the terms
and conditions of any form of letter of credit application or other agreement
submitted by the Borrower to, or entered into by the Borrower with, the Issuing
Bank relating to any Letter of Credit, the terms and conditions of this
Agreement shall control.
(b Notice of Issuance, Amendment, Renewal, Extension; Certain
Conditions. To request the issuance of a Letter of Credit (or the amendment,
renewal or extension of an outstanding Letter of Credit), the Borrower shall
hand deliver or telecopy (or transmit by electronic communication, if
arrangements for doing so have been approved by the Issuing Bank) to the Issuing
Bank and the Administrative Agent (reasonably in advance of the requested date
of issuance, amendment, renewal or extension) a notice requesting the issuance
of a Letter of Credit, or identifying the Letter of Credit to be amended,
renewed or extended, and specifying the date of issuance, amendment, renewal or
extension (which shall be a Business Day), the date on which such
26
Letter of Credit is to expire (which shall comply with paragraph (c) of this
Section), the amount of such Letter of Credit, the name and address of the
beneficiary thereof and such other information as shall be necessary to prepare,
amend, renew or extend such Letter of Credit. If requested by the Issuing Bank,
the Borrower also shall submit a letter of credit application on the Issuing
Bank's standard form in connection with any request for a Letter of Credit. A
Letter of Credit shall be issued, amended, renewed or extended only if (and upon
issuance, amendment, renewal or extension of each Letter of Credit the Borrower
shall be deemed to represent and warrant that), after giving effect to such
issuance, amendment, renewal or extension (i) the Dollar Equivalent of the LC
Exposure shall not exceed $5,000,000 and (ii) the Dollar Equivalent of the total
Revolving Credit Exposures shall not exceed the total Revolving Credit
Commitments.
(c Expiration Date. Each Letter of Credit shall expire at or prior
to the close of business on the earlier of (i) the date not later than one year
after the date of the issuance of such Letter of Credit (or, in the case of any
renewal or extension thereof, one year after such renewal or extension) and (ii)
the date that is five Business Days prior to the Maturity Date.
(d Participations. By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) and without any
further action on the part of the Issuing Bank or the Lenders, the Issuing Bank
hereby grants to each Lender, and each Lender hereby acquires from the Issuing
Bank, a participation in such Letter of Credit equal to such Lender's Applicable
RC Percentage of the aggregate amount available to be drawn under such Letter of
Credit. In consideration and in furtherance of the foregoing, each Lender hereby
absolutely and unconditionally agrees to pay to the Administrative Agent, for
the account of the Issuing Bank, such Lender's Applicable RC Percentage of each
LC Disbursement made by the Issuing Bank and not reimbursed by the Borrower on
the date due as provided in paragraph (e) of this Section, or of any
reimbursement payment required to be refunded to the Borrower for any reason.
Each Lender acknowledges and agrees that its obligation to acquire
participations pursuant to this paragraph in respect of Letters of Credit is
absolute and unconditional and shall not be affected by any circumstance
whatsoever, including any amendment, renewal or extension of any Letter of
Credit or the occurrence and continuance of a Default or reduction or
termination of the Commitments but excluding Letters of Credit issued in
contravention of the penultimate sentence of Section 2.05(a), and that each such
payment shall be made without any offset, abatement, withholding or reduction
whatsoever.
(e Reimbursement. If the Issuing Bank shall make any LC Disbursement
in respect of a Letter of Credit, the Borrower shall reimburse such LC
Disbursement by paying to the Administrative Agent an amount equal to such LC
Disbursement not later than 12:00 noon, New York City time, on the date that
such LC Disbursement is made, if the Borrower shall have received notice of such
LC Disbursement prior to 10:00 a.m., New York City time, on such date, or, if
such notice has not been received by the Borrower prior to such time on such
date, then not later than 12:00 noon, New York City time, on the Business Day
immediately following the day that the Borrower receives such notice; provided
that, the Borrower may, subject to the conditions to borrowing set forth herein,
request in accordance with Section 2.03 or 2.04 that such payment be
27
financed with an ABR Revolving Borrowing or a Swingline Borrowing in an
equivalent amount and, to the extent so financed, the Borrower's obligation to
make such payment shall be discharged and replaced by the resulting ABR
Revolving Borrowing or Swingline Borrowing. If the Borrower fails to make such
payment when due, the Administrative Agent shall notify each Lender of the
applicable LC Disbursement, the payment then due from the Borrower in respect
thereof and such Lender's Applicable RC Percentage thereof. Promptly following
receipt of such notice, each Lender shall pay to the Administrative Agent its
Applicable RC Percentage of the payment then due from the Borrower, in the same
manner as Revolving Loans made by such Lender (and Section 2.06 shall apply,
mutatis mutandis, to the payment obligations of the Lenders), and the
Administrative Agent shall promptly pay to the Issuing Bank the amounts so
received by it from the Lenders. Promptly following receipt by the
Administrative Agent of any payment from the Borrower pursuant to this
paragraph, the Administrative Agent shall distribute such payment to the Issuing
Bank or, to the extent that Lenders have made payments pursuant to this
paragraph to reimburse the Issuing Bank, then to such Lenders and the Issuing
Bank as their interests may appear. Any payment made by a Lender pursuant to
this paragraph to reimburse the Issuing Bank for any LC Disbursement (other than
the funding of ABR Revolving Loans or a Swingline Loan as contemplated above)
shall not constitute a Loan and shall not relieve the Borrower of its obligation
to reimburse such LC Disbursement. Notwithstanding anything to the contrary
contained herein, the obligation of a Lender to provide a Loan (or a
participation in a Loan) or to reimburse the Issuing Bank with respect to an LC
Disbursement shall not exceed such Lender's Applicable RC Percentage of such LC
Disbursement.
(f Obligations Absolute. The Borrower's obligation to reimburse LC
Disbursements as provided in paragraph (e) of this Section shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement under any and all circumstances whatsoever and
irrespective of (i) any lack of validity or enforceability of any Letter of
Credit or this Agreement, or any term or provision therein, (ii) any draft or
other document presented under a Letter of Credit proving to be forged,
fraudulent or invalid in any respect or any statement therein being untrue or
inaccurate in any respect, (iii) payment by the Issuing Bank under a Letter of
Credit against presentation of a draft or other document that does not comply
with the terms of such Letter of Credit, or (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for
the provisions of this Section, constitute a legal or equitable discharge of, or
provide a right of setoff against, the Borrower's obligations hereunder. Neither
the Administrative Agent, the Lenders nor the Issuing Bank, nor any of their
Related Parties, shall have any liability or responsibility by reason of or in
connection with the issuance or transfer of any Letter of Credit or any payment
or failure to make any payment thereunder (irrespective of any of the
circumstances referred to in the preceding sentence), or any error, omission,
interruption, loss or delay in transmission or delivery of any draft, notice or
other communication under or relating to any Letter of Credit (including any
document required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from causes beyond the control of the
Issuing Bank; provided that the foregoing shall not be construed to excuse the
Issuing Bank from liability to the Borrower to the extent of any direct damages
(as opposed to consequential damages, claims in respect of which are hereby
waived by the Borrower
28
to the extent permitted by applicable law) suffered by the Borrower that are
caused by the Issuing Bank's failure to exercise care when determining whether
drafts and other documents presented under a Letter of Credit comply with the
terms thereof. The parties hereto expressly agree that, in the absence of gross
negligence or willful misconduct on the part of the Issuing Bank (as finally
determined by a court of competent jurisdiction), the Issuing Bank shall be
deemed to have exercised care in each such determination. In furtherance of the
foregoing and without limiting the generality thereof, the parties agree that,
with respect to documents presented which appear on their face to be in
substantial compliance with the terms of a Letter of Credit, the Issuing Bank
may, in its sole discretion, either accept and make payment upon such documents
without responsibility for further investigation, regardless of any notice or
information to the contrary except in the case of notice by the Borrower as to
the noncompliance of such documents, or refuse to accept and make payment upon
such documents if such documents are not in strict compliance with the terms of
such Letter of Credit.
(g Disbursement Procedures. The Issuing Bank shall, promptly
following its receipt thereof, examine all documents purporting to represent a
demand for payment under a Letter of Credit. The Issuing Bank shall promptly
notify the Administrative Agent and the Borrower by telephone (confirmed by
telecopy) of such demand for payment and whether the Issuing Bank has made or
will make an LC Disbursement thereunder; provided that any failure to give or
delay in giving such notice shall not relieve the Borrower of its obligation to
reimburse the Issuing Bank and the Lenders with respect to any such LC
Disbursement.
(h Interim Interest. If the Issuing Bank shall make any LC
Disbursement, then, unless the Borrower shall reimburse such LC Disbursement in
full on the date such LC Disbursement is made, the unpaid amount thereof shall
bear interest, for each day from and including the date such LC Disbursement is
made to but excluding the date that the Borrower reimburses such LC
Disbursement, at the rate per annum then applicable to ABR Revolving Loans;
provided that, if the Borrower fails to reimburse such LC Disbursement when due
pursuant to paragraph (c) of this Section, then Section 2.13(e) shall apply.
Interest accrued pursuant to this paragraph shall be for the account of the
Issuing Bank, except that interest accrued on and after the date of payment by
any Lender pursuant to paragraph (e) of this Section to reimburse the Issuing
Bank shall be for the account of such Lender to the extent of such payment.
(i Replacement of the Issuing Bank. The Issuing Bank may be replaced
at any time by written agreement among the Borrower, the Administrative Agent,
the replaced Issuing Bank and the successor Issuing Bank. The Administrative
Agent shall notify the Lenders of any such replacement of the Issuing Bank. At
the time any such replacement shall become effective, the Borrower shall pay all
unpaid fees accrued for the account of the replaced Issuing Bank pursuant to
Section 2.12(b). From and after the effective date of any such replacement, (i)
the successor Issuing Bank shall have all the rights and obligations of the
Issuing Bank under this Agreement with respect to Letters of Credit to be issued
thereafter and (ii) references herein to the term "Issuing Bank" shall be deemed
to refer to such successor or to any previous Issuing Bank, or to such successor
and all previous Issuing Banks, as the context shall require. After the
replacement of an Issuing Bank
29
hereunder, the replaced Issuing Bank shall remain a party hereto and shall
continue to have all the rights and obligations of an Issuing Bank under this
Agreement with respect to Letters of Credit issued by it prior to such
replacement, but shall not be required to issue additional Letters of Credit.
(j Cash Collateralization. If any Event of Default shall occur and
be continuing, on the Business Day that the Borrower receives notice from the
Administrative Agent or the Required Lenders (or, if the maturity of the Loans
has been accelerated, Lenders with LC Exposure representing greater than 50% of
the total LC Exposure) demanding the deposit of cash collateral pursuant to this
paragraph, the Borrower shall deposit in an account with the Administrative
Agent, in the name of the Administrative Agent and for the benefit of the
Lenders, an amount in cash equal to the LC Exposure as of such date plus any
accrued and unpaid interest thereon; provided that the obligation to deposit
such cash collateral shall become effective immediately, and such deposit shall
become immediately due and payable, without demand or other notice of any kind,
upon the occurrence of any Event of Default with respect to the Borrower
described in clause (h) or (i) of Article VII. Such deposit shall be held by the
Administrative Agent as collateral for the payment and performance of the
obligations of the Borrower under this Agreement. The Administrative Agent shall
have exclusive dominion and control, including the exclusive right of
withdrawal, over such account. Other than any interest earned on the investment
of such deposits, which investments shall be made at the option and sole
discretion of the Administrative Agent and at the Borrower's risk and expense,
such deposits shall not bear interest. Interest or profits, if any, on such
investments shall accumulate in such account. Moneys in such account shall be
applied by the Administrative Agent to reimburse the Issuing Bank for LC
Disbursements for which it has not been reimbursed and, to the extent not so
applied, shall be held for the satisfaction of the reimbursement obligations of
the Borrower for the LC Exposure at such time or, if the maturity of the Loans
has been accelerated (but subject to the consent of Lenders with LC Exposure
representing greater than 50% of the total LC Exposure), be applied to satisfy
other obligations of the Borrower under this Agreement. If the Borrower is
required to provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default, such amount (to the extent not applied as
aforesaid) shall be returned to the Borrower within three Business Days after
all Events of Default have been cured or waived.
Section II.6. Funding of Borrowings. (a) Each Lender shall make each Loan
to be made by it hereunder on the proposed date thereof by wire transfer of
immediately available funds by (i) 12:00 noon, New York City time, in the case
of a Loan denominated in dollars, and (ii) 11:00 a.m., London time, in the case
of a Loan denominated in an Alternative Currency, to the account of the
Administrative Agent most recently designated by it for such purpose by notice
to the Lenders; provided that Swingline Loans shall be made as provided in
Section 2.04. The Administrative Agent will make such Loans available to the
Borrower or the Subsidiary Borrower, as applicable, by promptly crediting the
amounts so received, in like funds, to an account of the Borrower or the
Subsidiary Borrower, as applicable, maintained with the Administrative Agent (i)
in the case of a Loan denominated in dollars, in New York City, and (ii) in the
case of a Loan denominated in an Alternative Currency, in London, England, in
each case as designated by the Borrower or the Subsidiary Borrower, as
applicable, in the applicable Borrowing Request; provided that ABR
30
Revolving Loans made to finance the reimbursement of an LC Disbursement as
provided in Section 2.05(e) shall be remitted by the Administrative Agent to the
Issuing Bank.
(b Unless the Administrative Agent shall have received notice from a
Lender prior to the proposed date of any Borrowing that such Lender will not
make available to the Administrative Agent such Lender's share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with paragraph (a) of this Section
and may, in reliance upon such assumption, make available to the Borrower or the
Subsidiary Borrower, as applicable, a corresponding amount. In such event, if a
Lender has not in fact made its share of the applicable Borrowing available to
the Administrative Agent, then the applicable Lender and the Borrower or the
Subsidiary Borrower, as applicable, severally agree to pay (without duplication)
to the Administrative Agent forthwith on demand such corresponding amount with
interest thereon, for each day from and including the date such amount is made
available to the Borrower or the Subsidiary Borrower, as applicable, to but
excluding the date of payment to the Administrative Agent, at (i) in the case of
such Lender, (x) the Federal Funds Effective Rate (in the case of a Borrowing in
dollars) and (y) the rate reasonably determined by the Administrative Agent to
be the cost to it of funding such amount (in the case of a Borrowing in an
Alternative Currency) or (ii) in the case of the Borrower or the Subsidiary
Borrower, the interest rate applicable to the subject Loan. If a Lender pays its
share of such Borrowing with interest thereon to the Administrative Agent, then
such amount shall constitute such Lender's Loan included in such Borrowing as of
the date of such Borrowing.
Section II.7. Interest Elections. (a) Each Revolving and Term Borrowing
initially shall be of the Type specified in the applicable Borrowing Request
and, in the case of a Eurocurrency Revolving Borrowing, shall have an initial
Interest Period as specified in such Borrowing Request. Thereafter, the Borrower
or the Subsidiary Borrower, as applicable, may elect to convert such Borrowing
to a different Type or to continue such Borrowing and, in the case of a
Eurocurrency Borrowing, may elect Interest Periods therefor, all as provided in
this Section. The Borrower or the Subsidiary Borrower, as applicable, may elect
different options with respect to different portions of the affected Borrowing,
in which case each such portion shall be allocated ratably among the Lenders
holding the Loans comprising such Borrowing, and the Loans comprising each such
portion shall be considered a separate Borrowing. Notwithstanding any contrary
provision herein, this Section shall not be construed to permit the Borrower or
the Subsidiary Borrower, as applicable, to change the currency or Class of any
Borrowing.
(b To make an election pursuant to this Section, the Borrower or the
Subsidiary Borrower, as applicable, shall notify the Administrative Agent of
such election by telephone by the time that a Borrowing Request would be
required under Section 2.03 if such Borrower were requesting a Revolving or Term
Borrowing of the Type resulting from such election to be made on the effective
date of such election. Each such telephonic Interest Election Request shall be
irrevocable and shall be confirmed promptly by hand delivery or telecopy to the
Administrative Agent of a written Interest Election Request in a form approved
by the Administrative Agent and signed by the Borrower or the Subsidiary
Borrower, as applicable.
31
(c Each telephonic and written Interest Election Request shall
specify the following information in compliance with Section 2.02:
(i) the Borrowing to which such Interest Election Request
applies and, if different options are being elected with respect to
different portions thereof, the portions thereof to be allocated to each
resulting Borrowing (in which case the information to be specified
pursuant to clauses (iii) and (iv) below shall be specified for each
resulting Borrowing);
(ii) the effective date of the election made pursuant to such
Interest Election Request, which shall be a Business Day;
(iii) if the Borrowing to which such Interest Election Request
applies is denominated in dollars, whether the resulting Borrowing is to
be an ABR Borrowing or a Eurocurrency Borrowing; and
(iv) if the resulting Borrowing is a Eurocurrency Borrowing,
the Interest Period to be applicable thereto after giving effect to such
election, which shall be a period contemplated by the definition of the
term "Interest Period".
If any such Interest Election Request requests a Eurocurrency Borrowing but does
not specify an Interest Period, then the Borrower or the Subsidiary Borrower, as
applicable, shall be deemed to have selected an Interest Period of one month's
duration.
(d Promptly following receipt of an Interest Election Request, the
Administrative Agent shall advise each Lender of the details thereof and of such
Lender's portion of each resulting Borrowing.
(e If the Borrower or the Subsidiary Borrower, as applicable, fails
to deliver a timely Interest Election Request with respect to a Eurocurrency
Revolving Borrowing prior to the end of the Interest Period applicable thereto,
then, unless such Borrowing is repaid as provided herein, at the end of such
Interest Period such Borrowing shall be converted to an ABR Borrowing (unless
such Borrowing is denominated in an Alternative Currency, in which case such
Borrowing shall become due and payable on the last day of such Interest Period).
Notwithstanding any contrary provision hereof, if an Event of Default has
occurred and is continuing and the Administrative Agent, at the request of the
Required Lenders, so notifies the Borrower or the Subsidiary Borrower, as
applicable, then, so long as an Event of Default is continuing (i) no
outstanding Borrowing may be converted to or continued as a Eurocurrency
Borrowing and (ii) unless repaid, each Eurocurrency Borrowing shall be converted
to an ABR Borrowing at the end of the Interest Period applicable thereto (and,
in the case of a Eurocurrency Borrowing denominated in an Alternative Currency,
such Borrowing shall be converted into dollars at the Exchange Rate determined
by the Administrative Agent on the last day of the Interest Period applicable
thereto).
32
Section II.8. Termination and Reduction of Commitments. (a) Immediately
following the making of the Term Loans, the Term Loan Commitments shall be
terminated on the Closing Date and shall not be reinstated. Unless previously
terminated, the Revolving Credit Commitments shall terminate on the Maturity
Date.
(b The Borrower may at any time terminate, or from time to time
reduce, the Revolving Credit Commitments; provided that (i) each reduction of
the Revolving Credit Commitments shall be in an amount that is an integral
multiple of $100,000 and not less than $500,000 and (ii) the Borrower shall not
terminate or reduce the Revolving Credit Commitments if, after giving effect to
any concurrent prepayment of the Loans in accordance with Section 2.10, the
Dollar Equivalent of the total Revolving Credit Exposures would exceed the total
Revolving Credit Commitments.
(c The Borrower shall notify the Administrative Agent of any
election to terminate or reduce the Revolving Credit Commitments under paragraph
(b) of this Section at least three Business Days prior to the effective date of
such termination or reduction, specifying such election and the effective date
thereof. Promptly following receipt of any notice, the Administrative Agent
shall advise the Lenders of the contents thereof. Each notice delivered by the
Borrower pursuant to this Section shall be irrevocable; provided that a notice
of termination of the Revolving Credit Commitments delivered by the Borrower may
state that such notice is conditioned upon the effectiveness of other credit
facilities, in which case such notice may be revoked by the Borrower (by notice
to the Administrative Agent on or prior to the specified effective date) if such
condition is not satisfied. Any termination or reduction of the Revolving Credit
Commitments shall be permanent. Each reduction of the Revolving Credit
Commitments shall be made ratably among the Lenders in accordance with their
respective Revolving Credit Commitments.
Section II.9. Repayment of Loans; Evidence of Debt. (a) The Borrower and
the Subsidiary Borrower, as applicable, hereby unconditionally promises to pay
on the Maturity Date to the Administrative Agent for the account of each Lender
the then unpaid principal amount of each Loan provided by such Lender to such
Borrower. The Borrower hereby unconditionally promises to pay to the Swingline
Lender the then unpaid principal amount of each Swingline Loan on the Swingline
Loan Maturity Date applicable to such Swingline Loan; provided that on each date
that a Revolving Borrowing in dollars is made, the Borrower shall repay all
Swingline Loans then outstanding.
(b Amortization of Term Loans. The Term Loans shall be repaid in
twenty quarterly installments, each such installment to be payable on the last
day of each March, June, September and December beginning on September 30, 1999
and ending on the Term Loan Termination Date and to be in the aggregate amounts
set forth below, such that on each such payment date, each Lender shall be paid
an amount equal to such Lender's pro rata share of the Term Loans (calculated
based on the outstanding principal amount of the Term Loans of such Lender as a
percentage of the outstanding Terms Loans of all Lenders) of the amount set
forth below:
33
Aggregate
Payment Date Amount of Installments
--------------------------------------------------------
September 30, 1999 462,500 euros
December 31, 1999 462,500 euros
March 31, 2000 462,500 euros
June 30, 2000 462,500 euros
September 30, 2000 925,000 euros
December 31, 2000 925,000 euros
March 31, 2001 925,000 euros
June 30, 2001 925,000 euros
September 30, 2001 925,000 euros
December 31, 2001 925,000 euros
March 31, 2002 925,000 euros
June 30, 2002 925,000 euros
September 30, 2002 1,156,250 euros
December 31, 2002 1,156,250 euros
March 31, 2003 1,156,250 euros
June 30, 2003 1,156,250 euros
September 30, 2003 1,156,250 euros
December 31, 2003 1,156,250 euros
March 31, 2004 1,156,250 euros
June 30, 2004 1,156,250 euros
================
TOTAL 18,500,000 euros
(c Each Lender shall maintain in accordance with its usual practice
an account or accounts evidencing the indebtedness of the Borrower and the
Subsidiary Borrower, as applicable, to such Lender resulting from each Loan made
by such Lender, including the amounts of principal and interest payable and paid
to such Lender from time to time hereunder.
(d The Administrative Agent shall maintain accounts in which it
shall record (i) the amount of each Loan made hereunder, the Class, Type and
currency thereof and the Interest Period (if any) applicable thereto, (ii) the
amount of any principal or interest due and payable or to become due and payable
from the Borrower and the Subsidiary Borrower, as applicable, to each Lender
hereunder and (iii) the amount of any sum received by the Administrative Agent
hereunder for the account of the Lenders and each Lender's share thereof.
(e The entries made in the accounts maintained pursuant to paragraph
(c) or (d) of this Section shall be prima facie evidence of the existence and
amounts of the obligations recorded therein; provided that the failure of any
Lender or the Administrative Agent to maintain such
34
accounts or any error therein shall not in any manner affect the obligation of
any Borrower to repay the Loans in accordance with the terms of this Agreement.
(f Any Lender may request that Loans made by it be evidenced by a
promissory note. In such event, the Borrower and the Subsidiary Borrower, as
applicable, shall prepare, execute and deliver to such Lender a promissory note
payable to the order of such Lender (or, if requested by such Lender, to such
Lender and its registered assigns) and in a form approved by the Administrative
Agent. After the delivery of any such promissory note, the Loans evidenced by
such promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 10.04) be represented by one or more promissory
notes in such form payable to the order of the payee named therein (or, if such
promissory note is a registered note, to such payee and its registered assigns).
Section II.10. Voluntary Prepayment of Loans. (a) Subject to Section 2.16,
the Borrower or the Subsidiary Borrower, as applicable, shall have the right at
any time and from time to time to prepay any Borrowing of the Borrower or the
Subsidiary Borrower, as applicable, in whole or in part, subject to prior notice
in accordance with paragraph (b) of this Section. In the case of the Term Loans,
all prepayments shall be applied to the principal installments of the Term Loans
in the inverse order of their maturities.
(b The Borrower or the Subsidiary Borrower, as applicable, shall
notify the Administrative Agent (and, in the case of prepayment of a Swingline
Loan, the Swingline Lender) by telephone (confirmed by telecopy) of any
prepayment hereunder (i) in the case of prepayment of a Eurocurrency Revolving
Borrowing or Eurocurrency Term Borrowing denominated in dollars, not later than
9:00 a.m., New York City time, three Business Days before the date of
prepayment, (ii) in the case of prepayment of a Eurocurrency Revolving Borrowing
or Eurocurrency Term Borrowing denominated in an Alternative Currency, not later
than 9:00 a.m., London time, three Business Days prior to the date of prepayment
and (iii) in the case of prepayment of an ABR Revolving Borrowing or ABR Term
Borrowing, not later than 9:00 a.m., New York City time, on the date of
prepayment. Each such notice shall be irrevocable and shall specify the
prepayment date and the principal amount of each Borrowing or portion thereof to
be prepaid; provided that, if a notice of prepayment is given in connection with
a conditional notice of termination of the Commitments as contemplated by
Section 2.08, then such notice of prepayment may be revoked if such notice of
termination is revoked in accordance with Section 2.08. Promptly following
receipt of any such notice relating to a Revolving Borrowing or Term Borrowing,
the Administrative Agent shall advise the Lenders of the contents thereof. Each
partial prepayment of any Revolving Borrowing or Term Borrowing shall be in an
amount that would be permitted in the case of an advance of a Borrowing of the
same Type as provided in Section 2.02. Each prepayment of a Revolving Borrowing
or Term Borrowing shall be applied ratably to the Loans included in the prepaid
Borrowing. Prepayments shall be accompanied by accrued interest to the extent
required by Section 2.13.
Section II.11. Mandatory Prepayment of Loans
35
(a Sale of Assets. On the date on which the Borrower or any
Subsidiary shall receive consideration from the sale, lease, assignment,
transfer or other disposition of any property in excess of $2,500,000 in the
aggregate during any fiscal year of the Borrower, the Borrower or the Subsidiary
Borrower, as applicable, shall prepay (without premium or penalty but subject to
Section 2.16) the principal of, at its option, the Term Loans (to be applied to
the principal installments of the Term Loans in inverse order of their
maturities) and/or the Revolving Loans, in an aggregate amount equal to 100% of
the consideration received (net of taxes and transaction expenses, including
commissions).
(b Proceeds of Insurance and Condemnation. On the date on which the
Borrower or any Subsidiary shall receive insurance proceeds upon the occurrence
of any casualty or shall receive proceeds upon the occurrence of any
condemnation in excess of $2,500,000 in the aggregate during any fiscal year of
the Borrower, any of which proceeds have not been applied or committed to be
applied toward repair or replacement of the damaged or condemned property within
270 days of receipt thereof, the Borrower shall prepay (without premium or
penalty but subject to Section 2.16) the principal of, at its option, the Term
Loans (to be applied to the principal installments of the Term Loans in inverse
order of their maturities) and/or the Revolving Loans, in an aggregate amount
equal to 100% of the proceeds received and not so applied or committed to be
applied (net of taxes and transaction expenses, including commissions).
(c Commitments Exceeded. If, on any Reset Date, the Dollar
Equivalent of the aggregate Revolving Credit Exposures exceeds the aggregate
Revolving Credit Commitments, the Borrower shall immediately prepay on such
Reset Date outstanding Revolving Loans in an amount so that, after giving effect
to any such prepayment, the Dollar Equivalent of the aggregate Revolving Credit
Exposures does not exceed the aggregate Revolving Credit Commitments (and if the
Revolving Loans cannot be repaid to eliminate such excess due to the amount of
LC Exposure that exists at such time, the Borrower shall deposit with the
Administrative Agent sufficient cash collateral to cover such excess).
Section II.12. Fees. (a) The Borrower agrees to pay to the Administrative
Agent for the account of each Lender a commitment fee, which shall accrue at the
Applicable Rate on the daily unused amount of the Revolving Credit Commitment of
such Lender during the period from and including the date hereof to but
excluding the date on which such Revolving Credit Commitment terminates;
provided that, if such Lender continues to have any Revolving Credit Exposure
after its Revolving Credit Commitment terminates, then such commitment fee shall
continue to accrue on the daily amount of such Lender's Revolving Credit
Exposure from and including the date on which its Commitment terminates to but
excluding the date on which such Lender ceases to have any Revolving Credit
Exposure. Accrued commitment fees shall be payable in arrears on the last day of
March, June, September and December of each year and on the date on which the
Revolving Credit Commitments terminate, commencing on the first such date to
occur after the date hereof. All commitment fees shall be computed on the basis
of a year of 360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day). For purposes of this
Section 2.12(a), the unused amount of the Revolving Credit Commitment of such
Lender
36
shall be deemed to be the excess of (i) the aggregate Revolving Credit
Commitment of such Lender over (ii) the aggregate Revolving Credit Exposure of
such Lender (exclusive of Swingline Exposure).
(b The Borrower agrees to pay (i) to the Administrative Agent for
the account of each Lender a participation fee with respect to its
participations in Letters of Credit, which shall accrue at the same Applicable
Rate as interest on Eurocurrency Revolving Loans on the average daily amount of
such Lender's LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the
Effective Date to but excluding the later of the date on which such Lender's
Commitment terminates and the date on which such Lender ceases to have any LC
Exposure, and (ii) to the Issuing Bank a fronting fee, which shall accrue at the
rate or rates per annum separately agreed upon between the Borrower and the
Issuing Bank on the average daily amount of the LC Exposure (excluding any
portion thereof attributable to unreimbursed LC Disbursements) during the period
from and including the Effective Date to but excluding the later of the date of
termination of the Commitments and the date on which there ceases to be any LC
Exposure, as well as the Issuing Bank's standard fees with respect to the
issuance, amendment, renewal or extension of any Letter of Credit or processing
of drawings thereunder. Participation fees and fronting fees accrued through and
including the last day of March, June, September and December of each year shall
be payable on the third Business Day following such last day, commencing on the
first such date to occur after the Effective Date; provided that all such fees
shall be payable on the date on which the Revolving Credit Commitments terminate
and any such fees accruing after the date on which the Revolving Credit
Commitments terminate shall be payable on demand. Any other fees payable to the
Issuing Bank pursuant to this paragraph shall be payable within 10 days after
demand. All participation fees and fronting fees shall be computed on the basis
of a year of 360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day).
(c The Borrower agrees to pay to the Administrative Agent, for its
own account, fees payable in the amounts and at the times separately agreed upon
between the Borrower and the Administrative Agent.
(d The Borrower agrees to pay on the Effective Date to the
Administrative Agent, for the account of each Lender, an upfront fee equal to
.250% of such Lender's Commitments.
(e All fees payable hereunder shall be paid on the dates due, in
immediately available funds, to the Administrative Agent (or to the Issuing
Bank, in the case of fees payable to it) for distribution, in the case of
upfront fees, commitment fees and participation fees, to the Lenders. Fees paid
shall not be refundable under any circumstances.
Section II.13. Interest. (a) The Loans comprising each ABR Borrowing shall
bear interest at the Alternate Base Rate plus the Applicable Rate.
37
(b The Loans comprising each Eurocurrency Borrowing shall bear
interest at the Adjusted LIBO Rate for the Interest Period in effect for such
Borrowing plus the Applicable Rate.
(c The Loans comprising each Money Market Borrowing shall bear
interest at the Money Market Rate for the Interest Period in effect for such
Borrowing.
(d Notwithstanding the foregoing, if an Event of Default shall
exist, interest shall accrue on any principal of or interest on any Loan or any
fee or other amount payable by the Borrower hereunder, from and including the
date of such Event of Default until such Event of Default is cured or waived, at
a rate per annum equal to (i) in the case of principal of any Loan, 2% plus the
rate otherwise applicable to such Loan as provided in the preceding paragraphs
of this Section and (ii) in the case of any other amount, 2% plus the rate
applicable to ABR Loans as provided in paragraph (a) of this Section.
(e Accrued interest on each Loan shall be payable in arrears on each
Interest Payment Date for such Loan and upon termination of the Commitments;
provided that (i) interest accrued pursuant to paragraph (d) of this Section
shall be payable on demand, (ii) in the event of any repayment or prepayment of
any Loan (other than a prepayment of an ABR Revolving Loan prior to the end of
the Availability Period), accrued interest on the principal amount repaid or
prepaid shall be payable on the date of such repayment or prepayment, (iii) in
the event of any conversion of any Eurocurrency Loan prior to the end of the
current Interest Period therefor, accrued interest on such Loan shall be payable
on the effective date of such conversion and (iv) all accrued interest shall be
payable upon termination of the Commitments.
(f All interest hereunder shall be computed on the basis of a year
of 360 days shall be payable for the actual number of days elapsed (including
the first day but excluding the last day). The applicable Alternate Base Rate,
Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative Agent,
and such determination shall be conclusive absent manifest error.
Section II.14. Alternate Rate of Interest. If prior to the commencement of
any Interest Period for a Eurocurrency Borrowing:
(a the Administrative Agent determines (which determination shall be
conclusive absent manifest error) that adequate and reasonable means do not
exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable,
for such Interest Period; or
(b the Administrative Agent is advised by the Required Lenders that
in their reasonable determination the Adjusted LIBO Rate or the LIBO Rate, as
applicable, for such Interest Period will not adequately and fairly reflect the
cost to such Lenders of making or maintaining their Loans included in such
Borrowing for such Interest Period; or
(c the Administrative Agent determines (which determination shall be
conclusive absent manifest error) that deposits in the applicable Committed
Currency are not
38
generally available, or cannot be obtained by the Lenders, in the London
interbank market, as applicable;
then the Administrative Agent shall give notice thereof to the Borrower or the
Subsidiary Borrower, as applicable, and the Lenders by telephone or telecopy as
promptly as practicable thereafter and, until the Administrative Agent notifies
the Borrower or the Subsidiary Borrower, as applicable, and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurocurrency Borrowing shall be ineffective,
and any Eurocurrency Borrowing so requested to be continued shall, at the option
of the Borrower or the Subsidiary Borrower, as applicable, be repaid on the last
day of the then current Interest Period with respect thereto or shall be
converted to an ABR Borrowing denominated in dollars at the Exchange Rate
determined by the Administrative Agent in accordance with this Agreement on the
last day of the then current Interest Period with respect thereto, (ii) if any
Borrowing Request requests a Eurocurrency Revolving Borrowing in dollars, such
Borrowing shall be made as an ABR Borrowing and (iii) any request by the
Borrower or the Subsidiary Borrower, as applicable, for any other Eurocurrency
Borrowing in the affected Committed Currency shall be ineffective; provided that
(A) if the circumstances giving rise to such notice affect only one Type of
Borrowings, then the other Type of Borrowings shall be permitted and (B) if the
circumstances giving rise to such notice do not affect all applicable
currencies, then requests for Eurocurrency Borrowings may be made in the
currencies that are not affected thereby.
Section II.15. Increased Costs; Illegality.
(a) If any Change in Law shall:
(i) impose, modify or deem applicable any reserve, special
deposit or similar requirement against assets of, deposits with or
for the account of, or credit extended by, any Lender (except any
such reserve requirement reflected in the Adjusted LIBO Rate) or the
Issuing Bank; or
(ii) impose on any Lender or the Issuing Bank or the London
interbank market (or any other market in which the funding
operations of such Lender shall be conducted with respect to any
Committed Currency) any other condition affecting this Agreement or
Loans made by such Lender or any Letter of Credit or participation
therein;
and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Loan (or of maintaining its obligation to
make any Loan) or to increase the cost to such Lender or the Issuing Bank of
participating in, issuing or maintaining any Letter of Credit or to reduce the
amount of any sum received or receivable by such Lender or the Issuing Bank
hereunder (whether of principal, interest or otherwise), then the Borrower or
the Subsidiary Borrower, as applicable, will pay to such Lender or the Issuing
Bank, as the case may be, such additional amount
39
or amounts as will compensate such Lender or the Issuing Bank, as the case may
be, for such additional costs incurred or reduction suffered.
(b) If any Lender or the Issuing Bank determines that any Change in
Law regarding capital requirements has or would have the effect of reducing the
rate of return on such Lender's or the Issuing Bank's capital or on the capital
of such Lender's or the Issuing Bank's holding company, if any, as a consequence
of this Agreement or the Loans made by, or participations in Letters of Credit
held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a
level below that which such Lender or the Issuing Bank or such Lender's or the
Issuing Bank's holding company could have achieved but for such Change in Law
(taking into consideration such Lender's or the Issuing Bank's policies and the
policies of such Lender's or the Issuing Bank's holding company with respect to
capital adequacy), then from time to time the Borrower or the Subsidiary
Borrower, as applicable, will pay to such Lender or the Issuing Bank, as the
case may be, such additional amount or amounts as will compensate such Lender or
the Issuing Bank or such Lender's or the Issuing Bank's holding company for any
such reduction suffered.
(c) A certificate of a Lender or the Issuing Bank setting forth the
amount or amounts necessary to compensate such Lender or the Issuing Bank or
such Lender's or the Issuing Bank's holding company, as the case may be, as
specified in paragraph (a) or (b) of this Section 2.15 and in reasonable detail
the basis for such amount and the allocation to the Borrower or the Subsidiary
Borrower, as applicable, of such amount shall be delivered to the Borrower or
the Subsidiary Borrower, as applicable, and shall be conclusive absent manifest
error. The Borrower or the Subsidiary Borrower, as applicable, shall pay such
Lender or the Issuing Bank, as the case may be, the amount shown as due on any
such certificate within 10 days after receipt thereof.
(d) Failure or delay on the part of any Lender or the Issuing Bank
to demand compensation pursuant to this Section 2.15 shall not constitute a
waiver of such Lender's or the Issuing Bank's right to demand such compensation;
provided that the Borrower or the Subsidiary Borrower, as applicable, shall not
be required to compensate a Lender or the Issuing Bank pursuant to this Section
2.15 for any increased costs or reductions incurred more than 270 days prior to
the date that such Lender or the Issuing Bank notifies the Borrower or the
Subsidiary Borrower, as applicable, of the Change in Law giving rise to such
increased costs or reductions and of such Lender's or the Issuing Bank's
intention to claim compensation therefor; provided further that, if the Change
in Law giving rise to such increased costs or reductions is retroactive, then
the 270-day period referred to above shall be extended to include the period of
retroactive effect thereof.
(e) Notwithstanding any other provision of this Agreement, if, after
the date hereof, (i) any Change in Law shall make it unlawful for any Lender to
make or maintain any Loan or to give effect to its obligations as contemplated
hereby with respect to any Loan, or (ii) there shall have occurred any change in
national or international financial, political or economic conditions (including
the imposition of or any change in exchange controls or the introduction of
different types of currency to replace the currency in which such Loan was made)
or currency exchange rates which would make it impracticable in such Lender's
reasonable determination for any Lender to make or
40
maintain Loans denominated in a particular Committed Currency to, or for the
account of, the Borrower or the Subsidiary Borrower, as applicable, then, by
written notice to the Borrower or the Subsidiary Borrower, as applicable, and to
the Administrative Agent:
(i) such Lender may declare that Loans (in the affected currency or
currencies) will not thereafter (for the duration of such unlawfulness) be
made by such Lender hereunder (or be continued for additional Interest
Periods), whereupon any request for a Borrowing (in the affected currency
or currencies) (or to continue a Borrowing (in the affected currency or
currencies) for an additional Interest Period) shall, as to such Lender
only, be deemed a request for a Loan denominated in dollars (or a request
to convert a Eurocurrency Loan (in the affected currency or currencies)
into a Eurocurrency Loan denominated in dollars on the last day of the
then current Interest Period with respect thereto), unless such
declaration shall be subsequently withdrawn; and
(ii) such Lender may require that all outstanding Loans (in the
affected currency or currencies) made by it be converted to Loans
denominated in dollars, in which event all such Loans (in the affected
currency or currencies) shall be converted to Loans denominated in dollars
as of the effective date of such notice as provided in paragraph (f) below
and at the Exchange Rate on the date of such conversion; provided the
Borrower or the Subsidiary Borrower, as applicable, shall retain the
option to prepay such Loans under Section 2.10 (so long as the Loans of
the other Lenders of the same Type, Class, currency and Interest Period
are prepaid at the same time) in each affected currency if such affected
currency in an Eligible Currency at the time of such prepayment.
In the event any Lender shall exercise its rights under this Section 2.15(e),
all payments and prepayments of principal that would otherwise have been applied
to repay the Loans that would have been made by such Lender or the converted
Loans of such Lender shall instead be applied to repay the Loans denominated in
dollars, as the case may be, made by such Lender in lieu of, or resulting from
the conversion of, such Loans.
(f) In addition to any other indemnification or other "gross-up"
provisions contained herein, if any law, or any governmental or
quasi-governmental rule, regulation, policy, guideline, or directive of any
jurisdiction outside of the United States, imposes or deems applicable any
reserve, assessment or other charge or cost on any Lender domiciled in the
United States and the result of any of the foregoing is to increase the cost to
such Lender of making or maintaining any Loan to the Borrower or the Subsidiary
Borrower, as applicable, or to reduce the return received by such Lender in
connection with any such Loan, then, to the extent that such Lender is not
otherwise indemnified (whether pursuant to the definition of the term Statutory
Reserve Rate or otherwise) hereunder for same, the Borrower or Subsidiary
Borrower, as applicable, shall pay such Lender such additional amount or amounts
as will compensate such Lender for such increased costs or reduction in the
amount received. A certificate of a Lender setting forth the amount or amounts
necessary to compensate such Lender setting forth in reasonable detail the basis
for such amount and the
41
allocation to the Borrower or the Subsidiary Borrower, as applicable, shall be
delivered to the Borrower or the Subsidiary Borrower, as applicable, which shall
be conclusive absent manifest error.
(g) For purposes of this Section 2.15, a notice to the Borrower or
the Subsidiary Borrower, as applicable, by any Lender shall be effective as to
each Loan made by such Lender, if lawful, on the last day of the Interest Period
currently applicable to such Eurocurrency Loan; in all other cases such notice
shall be effective on the date of receipt thereof by the Borrower or the
Subsidiary Borrower, as applicable.
Section II.16. Break Funding Payments. In the event of (a) the payment of
any principal of any Eurocurrency Loan other than on the last day of an Interest
Period applicable thereto (including as a result of an Event of Default), (b)
the conversion of any Eurocurrency Loan other than on the last day of the
Interest Period applicable thereto, (c) the conversion of an Alternative
Currency Loan to a dollar denominated Loan pursuant to Section 2.14(i) or
Section 2.15(e)(ii), (d) the failure to borrow, convert, continue or prepay any
Loan on the date specified in any notice delivered pursuant hereto (regardless
of whether such notice may be revoked under Section 2.10(b) and is revoked in
accordance therewith), or (e) the assignment of any Eurocurrency Loan other than
on the last day of the Interest Period applicable thereto as a result of a
request by the Borrower or the Subsidiary Borrower, as applicable, pursuant to
Section 2.19, then, in any such event, the Borrower or the Subsidiary Borrower,
as applicable, shall compensate each Lender for the reasonable, documented loss,
cost and expense attributable to such event. In the case of a Eurocurrency Loan,
such loss, cost or expense to any Lender shall be deemed to include an amount
determined by such Lender to be the excess, if any, of (i) the amount of
interest which would have accrued on the principal amount of such Loan, had such
event not occurred, at the Adjusted LIBO Rate that would have been applicable to
such Loan, for the period from the date of such event to the last day of the
then current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period for
such Loan), over (ii) the amount of interest which would accrue on such
principal amount for such period at the interest rate which such Lender would
bid were it to bid, at the commencement of such period, for deposits of a
comparable amount, in the same currency and for the same period from other banks
in the Eurocurrency market. A certificate of any Lender setting forth any amount
or amounts that such Lender is entitled to receive pursuant to this Section
shall be delivered to the Borrower or the Subsidiary Borrower, as applicable,
shall set forth in reasonable detail the basis for such amount and shall be
conclusive absent manifest error. The Borrower or the Subsidiary Borrower, as
applicable, shall pay such Lender the amount shown as due on any such
certificate within 10 days after receipt thereof.
Section II.17. Taxes. (a) Any and all payments by or on account of any
obligation of the Borrower or the Subsidiary Borrower, as applicable, hereunder
or under any other Loan Document shall be made free and clear of and without
deduction for any Indemnified Taxes or Other Taxes; provided that if the
Borrower or the Subsidiary Borrower, as applicable, shall be required to deduct
any Indemnified Taxes or Other Taxes from such payments, then (i) the sum
payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section 2.17) the Administrative Agent, a Lender or the
42
Issuing Bank (as the case may be) receives an amount equal to the sum it would
have received had no such deductions been made, (ii) the Borrower or the
Subsidiary Borrower, as applicable, shall make such deductions and (iii) the
Borrower or the Subsidiary Borrower, as applicable, shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable
law.
(b) In addition, the Borrower or the Subsidiary Borrower, as
applicable, shall pay any Other Taxes to the relevant Governmental Authority in
accordance with applicable law.
(c) The Borrower or the Subsidiary Borrower, as applicable, shall
indemnify the Administrative Agent, each Lender and the Issuing Bank, within 10
days after written demand therefor, for the full amount of any Indemnified Taxes
or Other Taxes paid by the Administrative Agent, such Lender or the Issuing
Bank, as the case may be, on or with respect to any payment by or on account of
any obligation of such Borrower hereunder (including Indemnified Taxes or Other
Taxes imposed or asserted on or attributable to amounts payable under this
Section 2.17) and any penalties, interest and reasonable expenses arising
therefrom or with respect thereto, whether or not such Indemnified Taxes or
Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or
liability delivered to the Borrower by a Lender or the Issuing Bank, or by the
Administrative Agent on its own behalf or on behalf of a Lender or the Issuing
Bank, shall set forth in reasonable detail the basis for such amount, shall be
accompanied by applicable documentation and shall be conclusive absent manifest
error.
(d) As soon as practicable after any payment of Indemnified Taxes or
Other Taxes by the Borrower or the Subsidiary Borrower, as applicable, to a
Governmental Authority, the Borrower or the Subsidiary Borrower, as applicable,
shall deliver to the Administrative Agent the original or a certified copy of a
receipt issued by such Governmental Authority evidencing such payment, a copy of
the return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.
(e) Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the law of the Relevant Jurisdiction or any
treaty to which such Relevant Jurisdiction is a party, with respect to payments
under this Agreement shall, assuming reasonable prior written notification by
the Borrower or the Subsidiary Borrower, as applicable, to such Foreign Lender
of the existence of such law or treaty, deliver to the Borrower or the
Subsidiary Borrower, as applicable, (with a copy to the Administrative Agent),
at the time or times prescribed by applicable law, such properly completed and
executed documentation prescribed by applicable law or reasonably requested by
the Borrower or the Subsidiary Borrower, as applicable, as will permit such
payments to be made without withholding or at a reduced rate of withholding.
(f) If a Lender, the Issuing Bank or the Administrative Agent
receives a refund from a taxing authority in respect of any Indemnified Taxes or
Other Taxes for which it has been indemnified by the Borrower or the Subsidiary
Borrower, as applicable, or with respect to which the
43
Borrower or the Subsidiary Borrower, as applicable, has paid additional amounts
pursuant to this Section 2.17, it shall within 10 days from the date of such
receipt pay over the amount of such refund to the Borrower or the Subsidiary
Borrower, as applicable (but only to the extent of indemnity payments made, or
additional amounts paid, by the Borrower or the Subsidiary Borrower, as
applicable, under this Section 2.17 with respect to the Indemnified Taxes or
Other Taxes giving rise to such refund), without interest (other than interest
paid by the relevant taxing authority with respect to such refund); provided,
however, that the Borrower or the Subsidiary Borrower, as applicable, upon the
request of such Lender, the Issuing Bank or the Administrative Agent agrees to
repay the amount paid over to the Borrower or the Subsidiary Borrower, as
applicable (plus penalties, interest or other charges), to such Lender, the
Issuing Bank or the Administrative Agent in the event such Lender, the Issuing
Bank or the Administrative Agent is required to repay such refund to such taxing
authority.
(g) Nothing contained in this Section 2.17 shall require any Lender,
the Issuing Bank or the Administrative Agent to make available its tax returns
or any other information relating to Taxes or Other Taxes that such Lender, the
Issuing Bank or the Administrative Agent deems to be confidential; provided,
however, that any Taxes or Other Taxes shall, to the extent resulting from such
Lender's, the Issuing Bank's or the Administrative Agent's failure to make
available any such tax returns, be deemed to be Excluded Taxes.
Section II.18. Payments Generally; Pro Rata Treatment; Sharing of
Set-offs. (a) The Borrower and the Subsidiary Borrower, as applicable, shall
make each payment required to be made by it hereunder (whether of principal,
interest, fees or reimbursement of LC Disbursements, or of amounts payable under
Section 2.15, 2.16 or 2.17, or otherwise) from (i) in the case of a Loan
denominated in dollars, a payment location in New York City and (ii) in the case
of a Loan denominated in an Alternative Currency, a payment location in London,
England, in each case as designated by the Borrower or the Subsidiary Borrower
(or such other payment location hereafter specified by the Borrower or the
Subsidiary Borrower, as applicable) prior to 12:00 noon, New York City time (or
12:00 noon, London time, in respect of principal of or interest on any Loan
denominated in an Alternative Currency), on the date when due, in immediately
available funds, without set-off or counterclaim. Any amounts received after
such time on any date may, in the discretion of the Administrative Agent, be
deemed to have been received on the next succeeding Business Day for purposes of
calculating interest thereon. All such payments shall be made to the
Administrative Agent at its offices at 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx (or
(i) in the case of amounts due in an Alternative Currency, to the Administrative
Agent at its offices in London, England or (ii) such other office as shall be
specified for such Alternative Currency by the Administrative Agent), except
payments to be made directly to the Issuing Bank or Swingline Lender as
expressly provided herein and except that payments pursuant to Sections 2.15,
2.16, 2.17 and 10.03 shall be made directly to the Persons entitled thereto. The
Administrative Agent shall distribute any such payments received by it for the
account of any other Person to the appropriate recipient promptly following
receipt thereof. If any payment hereunder shall be due on a day that is not a
Business Day, the date for payment shall be extended to the next succeeding
Business Day, and, in the case of any payment accruing interest, interest
thereon shall be payable for the period of
44
such extension at the same rate then in effect with respect thereto. All
payments of principal and interest (but not fees, which shall be payable in
dollars) hereunder shall be made in the applicable Committed Currency, except as
otherwise expressly provided herein.
(b) In relation to the payment of any amount denominated in the
euro, the Administrative Agent shall not be liable to the Borrower or the
Subsidiary Borrower or any of the Lenders in any way whatsoever for any delay,
or the consequences of any delay, in the crediting to any account of any amount
required by this Agreement to be paid by the Administrative Agent if the
Administrative Agent shall have taken all relevant steps to achieve, on the date
required by this Agreement, the payment of such amount in immediately available,
freely transferable, cleared funds (in the euro unit) to the account of any
Lender in the principal financial center in the Participating Member State which
the Borrower, the Subsidiary Borrower or, as the case may be, any Lender shall
have specified for such purpose. In this paragraph (b), "all relevant steps"
means all such steps as may be prescribed from time to time by the regulations
or operating procedures of such clearing or settlement system as the
Administrative Agent may from time to time determine for the purpose of clearing
or settling payments of the euro.
(c) If the basis of accrual of interest or fees expressed in this
Agreement with respect to the currency of any state that becomes a Participating
Member State shall be inconsistent with any convention or practice in the London
interbank market for the basis of accrual of interest or fees in respect of the
euro, such convention or practice shall replace such expressed basis effective
as of and from the date on which such state becomes a Participating Member
State; provided, that if any Loan in the currency of such state is outstanding
on such date, such replacement shall take effect, with respect to such Loan, at
the end of the then current Interest Period.
(d) If at any time insufficient funds are received by and available
to the Administrative Agent to pay fully all amounts of principal, unreimbursed
LC Disbursements, interest and fees then due hereunder, such funds shall be
applied (i) first, towards payment of interest and fees then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
interest and fees then due to such parties, and (ii) second, towards payment of
principal and unreimbursed LC Disbursements then due hereunder, ratably among
the parties entitled thereto in accordance with the amounts of principal and
unreimbursed LC Disbursements then due to such parties.
(e) If any Lender shall, by exercising any right of set-off or
counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of its Revolving Loans or participations in LC Disbursements or
Swingline Loans resulting in such Lender receiving payment of a greater
proportion (based on the Revolving Credit Exposures of such Lender as a
percentage of the aggregate Revolving Credit Exposures of all Lenders) of the
aggregate amount of its Revolving Loans and participations in LC Disbursements
and Swingline Loans and accrued interest thereon than the proportion (based on
the Revolving Credit Exposures of such Lender as a percentage of the aggregate
Revolving Credit Exposures of all Lenders) received by any other Lender, then
the Lender receiving such greater proportion shall purchase (for cash at face
value)
45
participations in the Revolving Loans and participations in LC Disbursements and
Swingline Loans of other Lenders to the extent necessary so that the benefit of
all such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective
Revolving Loans and participations in LC Disbursements and Swingline Loans;
provided that (i) if any such participations are purchased and all or any
portion of the payment giving rise thereto is recovered, such participations
shall be rescinded and the purchase price restored to the extent of such
recovery, without interest, and (ii) the provisions of this paragraph shall not
be construed to apply to any payment made by the Borrower pursuant to and in
accordance with the express terms of this Agreement or any payment obtained by a
Lender as consideration for the assignment of or sale of a participation in any
of its Revolving Loans or participations in LC Disbursements to any assignee or
participant, other than to the Borrower or any Subsidiary or Affiliate thereof
(as to which the provisions of this paragraph shall apply). The Borrower
consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the
foregoing arrangements may exercise against the Borrower rights of set-off and
counterclaim with respect to such participation as fully as if such Lender were
a direct creditor of the Borrower in the amount of such participation.
(f) If any Lender shall, by exercising any right of set-off or
counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of its Term Loans resulting in such Lender receiving payment of
a greater proportion (based on the outstanding principal amount of the Term
Loans of such Lender as a percentage of the outstanding Terms Loans of all
Lenders) of the aggregate amount of its Term Loans than the proportion
(calculated based on the outstanding principal amount of the Term Loans of such
Lender as a percentage of the outstanding Terms Loans of all Lenders) received
by any other Lender, then the Lender receiving such greater proportion shall
purchase (for cash at face value) participations in the Term Loans of other
Lenders to the extent necessary so that the benefit of all such payments shall
be shared by the Lenders ratably in accordance with the aggregate amount of
principal of and accrued interest on their respective Term Loans; provided that
(i) if any such participations are purchased and all or any portion of the
payment giving rise thereto is recovered, such participations shall be rescinded
and the purchase price restored to the extent of such recovery, without
interest, and (ii) the provisions of this paragraph shall not be construed to
apply to any payment made by the Subsidiary Borrower pursuant to and in
accordance with the express terms of this Agreement or any payment obtained by a
Lender as consideration for the assignment of or sale of a participation in any
of its Term Loans to any assignee or participant, other than to the Subsidiary
Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of
this paragraph shall apply). The Subsidiary Borrower consents to the foregoing
and agrees, to the extent it may effectively do so under applicable law, that
any Lender acquiring a participation pursuant to the foregoing arrangements may
exercise against the Subsidiary Borrower rights of set-off and counterclaim with
respect to such participation as fully as if such Lender were a direct creditor
of the Subsidiary Borrower in the amount of such participation.
(g) Unless the Administrative Agent shall have received notice from
the Borrower or the Subsidiary Borrower, as applicable, prior to the date on
which any payment is due to the Administrative Agent for the account of the
Lenders or the Issuing Bank hereunder that the
46
Borrower or the Subsidiary Borrower, as applicable, will not make such payment,
the Administrative Agent may assume that the Borrower or the Subsidiary
Borrower, as applicable, has made such payment on such date in accordance
herewith and may, in reliance upon such assumption, distribute to the Lenders or
the Issuing Bank, as the case may be, the amount due. In such event, if the
Borrower or the Subsidiary Borrower, as applicable, has not in fact made such
payment, then each of the Lenders or the Issuing Bank, as the case may be,
severally agrees to repay to the Administrative Agent forthwith on demand the
amount so distributed to such Lender or the Issuing Bank with interest thereon,
for each day from and including the date such amount is distributed to it to but
excluding the date of payment to the Administrative Agent, (i) in the case of a
Borrowing or an LC Disbursement in dollars, at the Federal Funds Effective Rate
and (ii) in the case of a Borrowing in an Alternative Currency, at the rate
reasonably determined by the Administrative Agent to be the cost to it of
funding such amount.
(h) If any Lender shall fail to make any payment required to be made
by it pursuant to Section 2.04(c), 2.05(d) or (e), 2.06(b) or 2.18(e), then the
Administrative Agent may, in its discretion (notwithstanding any contrary
provision hereof), apply any amounts thereafter received by the Administrative
Agent for the account of such Lender to satisfy such Lender's obligations under
such Sections until all such unsatisfied obligations are fully paid.
Section II.19. Mitigation Obligations; Replacement of Lenders. (a) If any
Lender requests compensation under Section 2.15, or if the Borrower or the
Subsidiary Borrower, as applicable, is required to pay any additional amount to
any Lender or any Governmental Authority for the account of any Lender pursuant
to Section 2.17, then such Lender shall use reasonable efforts to designate a
different lending office for funding or booking its Loans hereunder or to assign
its rights and obligations hereunder to another of its offices, branches or
affiliates, if, in the judgment of such Lender, such designation or assignment
(i) would eliminate or reduce amounts payable pursuant to Section 2.15 or 2.17,
as the case may be, in the future and (ii) would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such
Lender.
(b) If any Lender requests compensation under Section 2.15, or if
the Borrower or the Subsidiary Borrower, as applicable, is required to pay any
additional amount to any Lender or any Governmental Authority for the account of
any Lender pursuant to Section 2.17, or if any Lender defaults in its obligation
to fund Loans hereunder, or if any Lender does not approve any Currency as an
Alternative Currency, then the Borrower or the Subsidiary Borrower, as
applicable, may, at its sole expense and effort (except in the case of a
defaulting Lender in which case it shall be at the expense and effort of such
defaulting Lender), upon notice to such Lender and the Administrative Agent,
require such Lender to assign and delegate, without recourse (in accordance with
and subject to the restrictions contained in Section 10.04), all its interests,
rights and obligations under this Agreement to an assignee that shall assume
such obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (i) the Borrower or the Subsidiary Borrower, as
applicable, shall have received the prior written consent of the Administrative
Agent (and, if a Revolving Credit Commitment is being assigned, the Issuing Bank
and Swingline Lender), which consent shall not unreasonably be withheld, (ii)
such Lender shall
47
have received payment of an amount equal to the outstanding principal of its
Loans and participations in LC Disbursements and Swingline Loans, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder,
from the assignee (to the extent of such outstanding principal and accrued
interest and fees) or the Borrower or the Subsidiary Borrower, as applicable,
(in the case of all other amounts) and (iii) in the case of any such assignment
resulting from a claim for compensation under Section 2.15 or payments required
to be made pursuant to Section 2.17, such assignment will result in a reduction
in such compensation or payments. A Lender shall not be required to make any
such assignment and delegation if, prior thereto, as a result of a waiver by
such Lender or otherwise, the circumstances entitling the Borrower or the
Subsidiary Borrower, as applicable, to require such assignment and delegation
cease to apply.
ARTICLE III
Representations and Warranties
The Borrower represents and warrants to the Lenders that:
Section III.1. Organization; Powers. Each of the Borrower and the
Significant Subsidiaries is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization, has all
requisite power and authority to own or lease its property and to carry on its
business as now conducted and, except where the failure to do so, individually
or in the aggregate, could not reasonably be expected to result in a Material
Adverse Effect, is qualified to do business in, and is in good standing in,
every jurisdiction where such qualification is required. Schedule 3.01 sets
forth the correct and complete list of each Subsidiary indicating (a) its
jurisdiction of organization, (b) its ownership (by holder and percentage
interest) and (c) its business and primary geographic scope of operation.
Section III.2. Authorization; Enforceability. The Transactions to be
entered into by each Loan Party are within such Loan Party's corporate,
partnership or limited liability company powers and have been duly authorized by
all necessary corporate, partnership or limited liability company and, if
required, stockholder, partner or member action. Each Loan Document to which any
Loan Party is a party has been duly executed and delivered by such Loan Party
and constitutes a legal, valid and binding obligation of such Loan Party,
enforceable in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors' rights
generally and subject to general principles of equity, regardless of whether
considered in a proceeding in equity or at law.
Section III.3. Governmental Approvals; No Conflicts. (a)The Transactions
(i) do not require the Borrower or any Subsidiary to obtain or make any consent
or approval of, registration or filing with, or other action by, any
Governmental Authority, except such as have been obtained or made and are in
full force and effect or that, if not obtained or made, could not reasonably be
expected, individually or in the aggregate, to result in a Material Adverse
Effect, (ii) will not violate any applicable law or regulation or the charter,
by-laws or other organizational documents of any
48
Loan Party, or any order of any Governmental Authority, except as to any law,
regulation or order the violation of which could not reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect, (iii)
will not violate or result in a default under any indenture, agreement or other
instrument binding upon the Borrower or any Significant Subsidiary or their
respective assets, or give rise to a right thereunder to require any payment to
be made by the Borrower or any Significant Subsidiary, except for any such
violations, defaults or rights to require payment that could not reasonably be
expected, individually or in the aggregate, to result in a Material Adverse
Effect and (iv) will not result in the creation or imposition of any Lien (other
than a Permitted Encumbrance) on any asset of the Borrower or any Subsidiary.
(b) No exchange control law or regulation materially restricts the
Borrower or the Subsidiary Borrower, as applicable, from complying with its
obligations in respect of any Loan or Letter of Credit denominated in a
Committed Currency. Neither the Borrower, the Subsidiary Borrower nor any of
their respective assets are entitled to immunity from suit, execution,
attachment or other legal process. To ensure the enforceability or admissibility
in evidence of any Loan Document, it is not necessary that such Loan Document be
filed or recorded with any Governmental Authority or that any stamp or similar
tax be paid thereon or in respect thereof. No withholding tax or documentary
stamp tax or intangible tax or any other tax is or will be due in connection
with the Transactions or in relation to any enforcement proceedings in respect
of the Loan Documents.
Section III.4. Financial Condition; No Material Adverse Change. (a) The
Borrower has heretofore furnished to the Lenders the consolidated and
consolidating balance sheets of the Borrower and its consolidated Subsidiaries
and the related statements of income, stockholders equity and cash flows (i) as
of and for the fiscal years ended December 31, 1996, December 31, 1997 and
December 31, 1998, such consolidated financial statements being reported on by
Pricewaterhouse Coopers, LLP, independent public accountants, and (ii) as of and
for the fiscal quarter and the portion of the fiscal year ended March 31, 1999,
certified by its chief financial officer. Such financial statements present
fairly, in all material respects, the financial condition and results of
operations and cash flows of the Borrower and its consolidated Subsidiaries as
of such dates and for such periods in accordance with GAAP, subject to year-end
audit adjustments and the absence of footnotes in the case of the statements
referred to in clause (ii) above.
(b) Since March 31, 1999, there has been no change that could
reasonably be expected to have a Material Adverse Effect.
Section III.5. Properties. (a) Each of the Borrower and the Subsidiaries
has good title to, or valid leasehold interests in, all its real and personal
property material to its business reflected in the financial statements
described in Section 3.04, except for minor defects in title that do not
interfere with its ability to conduct its business as currently conducted or to
utilize such properties for their intended purposes.
(b) Each of the Borrower and/or the Significant Subsidiaries owns,
or is licensed to use, all trademarks, tradenames, service marks, copyrights,
patents and other intellectual property
49
material to its business, the use thereof, to the knowledge of the Borrower, by
the Borrower and the Subsidiaries does not infringe upon the rights of any other
Person, except any such infringements that could not reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect, and,
to the knowledge of the Borrower, no other Person has materially infringed upon
the rights of the Borrower and the Significant Subsidiaries thereto.
Section III.6. Litigation and Environmental Matters. (a) There are no
actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of the Borrower, threatened
against or affecting the Borrower or any Subsidiary (i) as to which there is a
reasonable possibility of an adverse determination and that, if adversely
determined, could reasonably be expected, individually or in the aggregate, to
result in a Material Adverse Effect (other than as set forth on Schedule 3.06)
or (ii) that involve this Agreement, any other Loan Document or the
Transactions.
(b) Except as set forth on Schedule 3.06 and except with respect to
any other matters that, individually or in the aggregate, could not reasonably
be expected to result in a Material Adverse Effect, neither the Borrower nor any
Subsidiary (i) has failed to comply with any Environmental Law or to obtain,
maintain or comply with any permit, license or other approval required under any
Environmental Law, (ii) has become subject to any Environmental Liability, (iii)
has received notice of any claim with respect to any Environmental Liability or
(iv) knows of any basis for any Environmental Liability.
(c) Since the date of this Agreement, there has been no change in
the status of the matters set forth on Schedule 3.06 that, individually or in
the aggregate, has resulted in, or materially increased the likelihood of, a
Material Adverse Effect.
Section III.7. Compliance with Laws and Agreements. Each of the Borrower
and the Significant Subsidiaries is in compliance with all laws, regulations and
orders of any Governmental Authority applicable to it or its property and all
indentures, agreements and other instruments binding upon it or its property,
except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect. Neither the
Borrower nor any Subsidiary is in default with respect to any such law,
regulation, order, indenture, agreement or other instrument, except for any such
default that individually or in the aggregate could not reasonably be expected
to have a Material Adverse Effect.
Section III.8. Investment and Holding Company Status. Neither the Borrower
nor any Subsidiary is (a) an "investment company" as defined in, or subject to
regulation under, the Investment Company Act of 1940 or (b) a "holding company"
as defined in, or subject to regulation under, the Public Utility Holding
Company Act of 1935.
Section III.9. Taxes. Each of the Borrower and the Subsidiaries has filed
or caused to be filed all Tax returns and reports required to have been filed
and has paid or caused to be paid all Taxes required to have been paid by it,
except (a) Taxes that are being contested in good faith by
50
appropriate proceedings and for which the Borrower or such Subsidiary, as
applicable, has set aside on its books adequate reserves in conformity with GAAP
or (b) to the extent that the failure to do so could not reasonably be expected
to result in a Material Adverse Effect.
Section III.10. ERISA. No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other ERISA Events for
which liability is reasonably expected to occur, could reasonably be expected to
result in a Material Adverse Effect. The present value of all accumulated
benefit obligations under each Plan (based on the assumptions used for purposes
of Statement of Financial Accounting Standards No. 87) did not, as of the date
of the most recent financial statements reflecting such amounts, exceed by more
than $2,500,000, the fair market value of the assets of such Plan, and the
present value of all accumulated benefit obligations of all underfunded Plans
(based on the assumptions used for purposes of Statement of Financial Accounting
Standards No. 87) did not, as of the date of the most recent financial
statements reflecting such amounts, exceed by more than $2,500,000, the fair
market value of the assets of all such underfunded Plans.
Section III.11. Disclosure. The Borrower has disclosed to the Lenders all
agreements, instruments and corporate or other restrictions to which it or any
of its Significant Subsidiaries is subject, and all other matters known to it,
that, individually or in the aggregate, could reasonably be expected to result
in a Material Adverse Effect. Neither, to the knowledge of the Borrower, the
Information Memorandum nor any of the other reports, financial statements,
certificates or other information furnished by or on behalf of the Borrower to
the Administrative Agent or any Lender in connection with the negotiation of the
Loan Documents or delivered thereunder (as modified or supplemented by other
information so furnished) contains any material misstatement of fact or omits to
state any material fact necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading; provided that,
with respect to projected financial information, the Borrower represents only
that such information was prepared in good faith based upon assumptions believed
to be reasonable at the time.
Section III.12. Federal Reserve Regulations. (a) Neither the Borrower nor
any Subsidiary is engaged principally, or as one of its important activities, in
the business of extending credit for the purposes of buying or carrying Margin
Stock (as defined under Regulation U).
(b) No part of the proceeds of any Loan, and no Letter of Credit,
will be used, whether directly or indirectly, and whether immediately,
incidentally or ultimately, for any purpose that entails a violation of, or that
is inconsistent with, the provisions of the Regulations of the Board, including
Regulation T, U or X.
Section III.13. Solvency. Immediately after the consummation of the
Transactions (a) the fair value of the assets of each Loan Party at a fair
valuation will exceed its debts and liabilities, subordinated, contingent or
otherwise; (b) the present fair saleable value of the property of each Loan
Party will be greater than the amount that will be required to pay the probable
liability of its debts and other liabilities, subordinated, contingent or
otherwise, as such debts and other liabilities become
51
absolute and matured, considering all financing alternatives and potential asset
sales reasonably available to such Loan Party; (c) each Loan Party will be able
to pay its debts and liabilities, subordinated, contingent or otherwise, as such
debts and liabilities become absolute and matured, considering all financing
alternatives and potential asset sales reasonably available to such Loan Party;
and (d) each Loan Party will not have unreasonably small capital with which to
conduct the business in which it is engaged as such business is now conducted
and is proposed to be conducted following the Effective Date.
Section III.14. Year 2000. Any reprogramming required to permit the proper
functioning, in and following the year 2000, of (a) computer systems of the
Borrower and the Subsidiaries and (b) equipment containing embedded microchips
(including systems and equipment supplied by others or with which the Borrower's
and the Subsidiaries' systems interface) and the testing of all such systems and
equipment, as so reprogrammed, will be completed by October 31, 1999, and all
such systems and equipment are year 2000 compliant. The cost to the Borrower and
the Subsidiaries of such reprogramming and testing and of the reasonably
foreseeable consequences of year 2000 to the Borrower and the Subsidiaries
(including, without limitation, reprogramming errors and the failure of others'
systems or equipment) will not result in a Default or a Material Adverse Effect.
The computer and management information systems of the Borrower and the
Subsidiaries are and, with ordinary course upgrading and maintenance, will
continue for the term of this Agreement to be, sufficient to permit each of the
Borrower and the Subsidiaries to conduct its business without the occurrence of
a Material Adverse Effect.
ARTICLE IV
Conditions
Section IV.1. Effective Date. The obligations of the Lenders to make Loans
and of the Issuing Bank to issue Letters of Credit hereunder shall not become
effective until the date on which each of the following conditions is satisfied
(or waived in accordance with Section 10.02):
(a) The Administrative Agent (or its counsel) shall have received
from each party hereto either (i) a counterpart of this Agreement signed on
behalf of such party or (ii) written evidence reasonably satisfactory to the
Administrative Agent (which may include telecopy transmission of a signed
signature page of this Agreement) that such party has signed a counterpart of
this Agreement.
(b) The Administrative Agent (or its counsel) shall have received
from each of the Guarantors either (i) a counterpart of the Guarantee Agreement
signed on behalf of such party or (ii) written evidence reasonably satisfactory
to the Administrative Agent (which may include telecopy transmission of a signed
signature page of the Guarantee Agreement) that such party has signed a
counterpart of the Guarantee Agreement.
52
(c) The Administrative Agent (or its counsel) shall have received
from each of the Borrower and the Subsidiaries, as applicable, either (i) a
counterpart of each Security Document signed on behalf of such party or (ii)
written evidence reasonably satisfactory to the Administrative Agent (which may
include telecopy transmission of a signed signature page of such Security
Document) that such party has signed a counterpart of such Security Document.
The Administrative Agent shall have received stock certificates representing 65%
of the outstanding voting Capital Stock of each of the Foreign Subsidiaries
subject to a Pledge Agreement together with undated stock powers executed in
blank. The delivery of stock certificates shall not be required to the extent
that the shares in a Foreign Subsidiary cannot be evidenced by stock
certificates according to applicable foreign law. The Administrative Agent for
its benefit and the ratable benefit of the Lenders shall have a legal, valid and
enforceable perfected first-priority Lien on the Collateral.
(d) The Administrative Agent shall have received favorable written
opinions (addressed to the Administrative Agent and the Lenders and dated the
Effective Date) of Xxxxxx, Xxxxxx & Xxxxxxx, Xxxx X. Xxxxxxxx, Oppenhoff &
Radler, Murtha, Xxxxxxx, Xxxxxxx & Xxxxxx and Xxxxxx & Xxxxxxxxx, substantially
in the form of Exhibit X-0, Xxxxxxx X-0, Xxxxxxx X-0, Exhibit B-4 and Exhibit
B-5, respectively, and covering such other matters relating to the Loan Parties,
this Agreement or the Transactions as the parties shall agree. The Borrower and
the Subsidiary Borrower hereby request such counsel to deliver such opinions.
(e) The Administrative Agent shall have received such documents and
certificates as the Administrative Agent or its counsel may reasonably request
relating to the organization, existence and good standing of the Loan Parties,
the authorization of the Transactions and any other legal matters relating to
the Loan Parties, the Loan Documents or the Transactions.
(f) Concurrently with the first Borrowing, the Borrower shall have
repaid, or made adequate provision to repay, in full the principal of all loans
outstanding, interest thereon and other amounts due and payable under the
Existing Refinanced Indebtedness and the Administrative Agent shall have
received duly executed documentation in form and substance reasonably
satisfactory thereto either evidencing or necessary for (i) the termination of
the Existing Refinanced Indebtedness, (ii) the cancellation of all commitments
thereunder and (iii) the release of all Liens granted by the Borrower or any
Significant Subsidiary in connection therewith.
(g) The Administrative Agent shall have received a certificate,
dated the Effective Date and signed by the President, a Vice President, General
Counsel and Secretary or a Financial Officer of the Borrower, confirming
compliance with the conditions set forth in paragraphs (a) and (b) of Section
4.02.
(h) The Administrative Agent shall have received all fees and other
amounts due and payable on or prior to the Effective Date, including, to the
extent invoiced, reimbursement or payment of all out-of-pocket expenses required
to be reimbursed or paid by the Borrower hereunder.
53
(i) All consents and approvals necessary to be obtained from any
Governmental Authority or other Person in connection with the financing
contemplated hereby and the continuing operation of the Borrower and the
Significant Subsidiaries shall have been obtained and be in full force and
effect, and all applicable waiting periods and appeal periods shall have
expired, in each case without the imposition of any burdensome conditions.
The Administrative Agent shall notify the Borrower and the Lenders of the
Effective Date, and such notice shall be conclusive and binding. Notwithstanding
the foregoing, the obligations of the Lenders to make Loans and of the Issuing
Bank to issue Letters of Credit hereunder shall not become effective unless each
of the foregoing conditions is satisfied (or waived pursuant to Section 10.02)
at or prior to 3:00 p.m., New York City time, on July 16, 1999 (and, in the
event such conditions are not so satisfied or waived, the Commitments shall
terminate at such time).
Section IV.2. Each Credit Event. The obligation of each Lender to make a
Loan on the occasion of any Borrowing, and of the Issuing Bank to issue, amend,
renew or extend any Letter of Credit, is subject to the satisfaction of the
following conditions:
(a) The representations and warranties set forth in this Agreement
and the other Loan Documents shall be true and correct on and as of the date of
such Borrowing or the date of issuance, amendment, renewal or extension of such
Letter of Credit, as applicable, except that any representation or warranty
limited by its terms to a specific date shall be true and correct as of such
specific date.
(b) At the time of and immediately after giving effect to such
Borrowing or the issuance, amendment, renewal or extension of such Letter of
Credit, as applicable, no Default shall have occurred and be continuing and
there shall be no laws, rules, regulations or orders that would cause the making
or maintaining of such Loan or such Letter of Credit to be unlawful or otherwise
unenforceable.
Each Borrowing and each issuance, amendment, renewal or extension of a Letter of
Credit shall be deemed to constitute a representation and warranty by the
Borrower on the date thereof as to the matters specified in paragraphs (a) and
(b) of this Section 4.02.
ARTICLE V
Affirmative Covenants
Until the Commitments have expired or been terminated and the principal of
and interest on each Loan and all fees payable hereunder shall have been paid in
full and all Letters of Credit shall have expired or terminated and all LC
Disbursements shall have been reimbursed, the Borrower covenants and agrees with
the Lenders that:
54
Section V.1. Financial Statements and Other Information. The Borrower will
furnish to the Administrative Agent and each Lender:
(a) within 90 days after the end of each fiscal year of the
Borrower, the audited consolidated and unaudited consolidating balance sheets of
the Borrower and its consolidated Subsidiaries and related statements of
operations, stockholders' equity and cash flows as of the end of and for such
year, setting forth in each case in comparative form the figures as of the end
of and for the previous fiscal year, such consolidated financial statements
being reported on by PricewaterhouseCoopers LLP or other independent public
accountants of recognized national standing (without a "going concern" or like
qualification or exception and without any qualification or exception as to the
scope of such audit) to the effect that such consolidated financial statements
present fairly in all material respects the financial condition and results of
operations of the Borrower and its consolidated Subsidiaries on a consolidated
basis in accordance with GAAP consistently applied;
(b) within 45 days after the end of each of the first three fiscal
quarters of each fiscal year of the Borrower, the unaudited consolidated and
consolidating balance sheets of the Borrower and its consolidated Subsidiaries
and related statements of operations and cash flows as of the end of and for
such fiscal quarter and the then elapsed portion of such fiscal year, setting
forth in each case in comparative form the figures for the corresponding date or
period or periods of (or, in the case of the balance sheet, as of the end of)
the previous fiscal year, all certified by one of its Financial Officers as
presenting fairly in all material respects the financial condition and results
of operations of the Borrower and its consolidated Subsidiaries in accordance
with GAAP consistently applied, subject to normal year-end audit adjustments and
the absence of footnotes;
(c) concurrently with any delivery of financial statements under
clause (a) or (b) above, a certificate of a Financial Officer of the Borrower
(i) certifying as to whether a Default has occurred and, if a Default has
occurred, specifying the details thereof and any action taken or proposed to be
taken with respect thereto, (ii) setting forth reasonably detailed calculations
demonstrating compliance with Sections 6.12, 6.13 and 6.14 and (iii) stating
whether any change in GAAP or in the application thereof has occurred since the
date of the audited financial statements referred to in Section 3.04 and, if any
such change has occurred, specifying the effect of such change on the financial
statements accompanying such certificate;
(d) concurrently with any delivery of financial statements under
clause (a) above, a certificate of the accounting firm that reported on such
financial statements stating whether they obtained knowledge during the course
of their examination of such financial statements of any Default (which
certificate may be limited to the extent required by accounting rules or
guidelines);
(e) concurrently with any delivery of financial statements under
clause (a), a narrative explanation signed by a Financial Officer of the
Borrower of any material variance from the Borrower's budget for the fiscal year
that is reflected in such financial statements;
55
(f) within 30 days of the commencement of each fiscal year of the
Borrower, (i) projected consolidated and consolidating balance sheets of the
Borrower and its consolidated Subsidiaries for such fiscal year and (ii) an
operating plan for the Borrower and its consolidated Subsidiaries for such
fiscal year, including budget, personnel, facilities, capital expenditure and
research and development projections and projected consolidated and
consolidating income and cash flow statements for such fiscal year,
incorporating the items detailed in such operating plan for such fiscal year,
and accompanied by a description of the material assumptions used in making such
operating plan;
(g) promptly after the same become publicly available, copies of all
periodic and other reports, proxy statements, registration statements and other
materials filed by the Borrower with the Securities and Exchange Commission, or
any Governmental Authority succeeding to any or all of the functions of said
Commission, or with any national securities exchange, or distributed by the
Borrower to its shareholders generally, as the case may be; and
(h) promptly following any request therefor, such other information
in a form normally kept by the Borrower regarding the operations, business,
affairs and financial condition of the Borrower or any Subsidiary, or compliance
with the terms of this Agreement, as the Administrative Agent or any Lender may
reasonably request.
Section V.2. Notices of Material Events. The Borrower will furnish to the
Administrative Agent and each Lender written notice of the following:
(a) immediately upon knowledge of or otherwise promptly upon the
occurrence of any Default;
(b) promptly upon the filing or commencement of any action, suit or
proceeding by or before any arbitrator or Governmental Authority against or
affecting the Borrower or any Affiliate thereof that, if adversely determined,
could reasonably be expected to result in a Material Adverse Effect;
(c) promptly upon the occurrence of any ERISA Event that, alone or
together with any other ERISA Events that have occurred, could reasonably be
expected to result in liability of the Borrower and the Subsidiaries in an
aggregate amount exceeding $3,000,000; and
(d) promptly upon any other development that results in, or could
reasonably be expected to result in, a Material Adverse Effect.
Each notice delivered under this Section shall be accompanied by a statement of
a Financial Officer or other executive officer of the Borrower setting forth the
details of the event or development requiring such notice and any action taken
or proposed to be taken with respect thereto.
Section V.3. Existence; Conduct of Business. The Borrower will, and will
cause each of the Significant Subsidiaries to, do or cause to be done all things
necessary to preserve, renew and
56
keep in full force and effect its legal existence and the rights, licenses,
permits, privileges and franchises material to the conduct of its business;
provided that the foregoing shall not prohibit any merger, consolidation,
liquidation, dissolution or corporate reorganization permitted under Section
6.03.
Section V.4. Payment of Obligations. The Borrower will, and will cause
each of the Subsidiaries to, pay its obligations, including Tax liabilities,
that, if not paid, could result in a Material Adverse Effect before the same
shall become delinquent or in default, except where (a) the validity or amount
thereof is being contested in good faith by appropriate proceedings, (b) the
Borrower or such Subsidiary has set aside on its books adequate reserves with
respect thereto in accordance with GAAP and (c) the failure to make payment
pending such contest could not reasonably be expected to result in a Material
Adverse Effect.
Section V.5. Maintenance of Properties; Insurance. The Borrower will, and
will cause each of the Significant Subsidiaries to, (a) keep and maintain all
property material to the conduct of its business in good working order and
condition, ordinary wear and tear excepted, and (b) maintain, with financially
sound and reputable insurance companies, insurance in such amounts and against
such risks as are customarily maintained by companies engaged in the same or
similar businesses operating in the same or similar locations.
Section V.6. Books and Records; Inspection Rights. The Borrower will, and
will cause each of the Subsidiaries to, keep proper books of record and account
in which full, true and correct entries are made of all dealings and
transactions in relation to its business and activities; provided that, with
respect to each of the Foreign Subsidiaries, such entries going forward may be
made in accordance with generally accepted accounting principles in effect in
its jurisdiction of organization until such time that such entries are
consolidated with the entries of the Borrower and the Domestic Subsidiaries. The
Borrower will, and will cause each of the Significant Subsidiaries to, permit
any representatives designated by the Administrative Agent or any Lender, upon
reasonable prior notice, to visit and inspect its properties, to examine and
make extracts from its books and records, and to discuss its affairs, finances
and condition with its officers and independent accountants, all at such
reasonable times and as often as reasonably requested.
Section V.7. Compliance with Laws. The Borrower will, and will cause each
of the Significant Subsidiaries to, comply with all laws, rules, regulations and
orders of any Governmental Authority applicable to it or its property
(including, without limitation, all Environmental Laws), except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.
Section V.8. Use of Proceeds and Letters of Credit. The proceeds of the
Loans will be used only for general corporate purposes of the Consolidated
Entities (including working capital, capital expenditures and acquisitions). No
part of the proceeds of any Loan, and no Letter of Credit, will be used, whether
directly or indirectly, for any purpose that entails a violation of any of the
57
Regulations of the Board, including Regulations T, U and X. Letters of Credit
will be issued only to support obligations of the Borrower incurred in the
ordinary course of business.
Section V.9. Additional Guarantors. (a) Promptly upon any Domestic
Subsidiary becoming a Significant Subsidiary, the Borrower will (i) cause such
Domestic Subsidiary to guarantee the obligations of the Borrower and the
Subsidiary Borrower under the Loan Documents, pursuant to a Guarantee
substantially in the form of the Guarantee Agreement and (ii) deliver such proof
of corporate, partnership or limited liability company action, incumbency of
officers, opinions of counsel and other documents as is consistent with those
delivered by a Guarantor pursuant to Article IV or as the Administrative Agent
shall have reasonably requested.
(b) Promptly upon any Foreign Subsidiary becoming a Significant
Subsidiary, the Borrower will (i) cause such Foreign Subsidiary to guarantee the
obligations of the Subsidiary Borrower under the Loan Documents, pursuant to a
Guarantee substantially in the form of the Guarantee Agreement, (ii) cause 65%
of the voting Capital Stock of such Foreign Subsidiary to be pledged and
delivered to the Administrative Agent for its benefit and the ratable benefit of
the Lenders, pursuant to the Pledge Agreement and (iii) deliver such proof of
corporate, partnership or limited liability company action, incumbency of
officers, opinions of counsel and other documents as is consistent with those
delivered by a Guarantor pursuant to Article IV or as the Administrative Agent
shall have reasonably requested.
ARTICLE VI
Negative Covenants
Until the Commitments have expired or terminated and the principal of and
interest on each Loan and all fees payable hereunder have been paid in full and
all Letters of Credit have expired or terminated and all LC Disbursements shall
have been reimbursed, the Borrower covenants and agrees with the Lenders that:
Section VI.1. Indebtedness. The Borrower will not, and will not permit any
Subsidiary to, create, incur, assume or permit to exist any Indebtedness,
except:
(a) Indebtedness of any Loan Party pursuant to any Loan Document;
(b) Indebtedness existing on the date hereof and set forth in
Schedule 6.01, and any extensions, renewals or replacements of any such
Indebtedness, provided that the principal amount does not increase;
(c) Indebtedness of the Borrower to any Wholly-Owned Subsidiary or
of any Wholly-Owned Subsidiary to the Borrower or any other Wholly-Owned
Subsidiary, in each case incurred in the ordinary course of business and either
consistent with past practices or for cash management purposes; provided that,
upon request of the Required Lenders, such Indebtedness shall
58
be evidenced by a promissory note in form and substance reasonably acceptable to
the Required Lenders;
(d) Indebtedness of the Borrower or any Subsidiary incurred to
finance the acquisition, construction or improvement of any fixed or capital
assets, including Capital Lease Obligations and obligations under Synthetic
Leases, and any Indebtedness assumed in connection with the acquisition of any
such assets or secured by a Lien on any such assets prior to the acquisition
thereof, and extensions, renewals and replacements of any such Indebtedness that
do not increase the outstanding principal amount thereof; provided that (i) such
Indebtedness is incurred prior to or within 90 days after such acquisition or
the completion of such construction or improvement and (ii) the aggregate
principal amount of Indebtedness permitted by this clause (d) shall not exceed
$3,000,000 at any time outstanding; and
(e) Indebtedness of the Borrower or any Subsidiary as an account
party in respect of trade letters of credit.
Section VI.2. Liens. The Borrower will not, and will not permit any
Subsidiary to, create, incur, assume or permit to exist any Lien on any property
or asset now owned or hereafter acquired by it, or assign or sell any income or
revenues (including accounts receivable) or rights in respect of any thereof,
except:
(a) Permitted Encumbrances;
(b) any Lien on any property or asset of the Borrower or any
Subsidiary existing on the date hereof and set forth in Schedule 6.02; provided
that (i) such Lien(s) shall not apply to any other property or asset of the
Borrower or any Subsidiary and (ii) such Lien shall secure only those
obligations which it secures on the date hereof;
(c) any Lien existing on any property or asset prior to the
acquisition thereof by the Borrower or any Subsidiary or existing on any
property or asset of any Person that becomes a Subsidiary after the date hereof
prior to the time such Person becomes a Subsidiary; provided that (i) such Lien
secures Indebtedness permitted by clause (d) of Section 6.01, (ii) such Lien is
not created in contemplation of or in connection with such acquisition or such
Person becoming a Subsidiary, as the case may be, (iii) such Lien shall not
apply to any other property or assets of the Borrower or any Subsidiary, and
(iv) such Lien shall secure only those obligations which it secures on the date
of such acquisition or the date such Person becomes a Subsidiary, as the case
may be;
(d) any Lien on fixed or capital assets acquired, constructed or
improved by the Borrower or any Subsidiary; provided that (i) such Lien secures
Indebtedness permitted by clause (d) of Section 6.01, (ii) such Lien and the
Indebtedness secured thereby are incurred prior to or within 90 days after such
acquisition or the completion of such construction or improvement, (iii) the
Indebtedness secured thereby does not exceed 100% of the costs of acquiring,
constructing or
59
improving such fixed or capital assets and (iv) such Lien shall not apply to any
other property or assets of the Borrower or any Subsidiary; and
(e) any Lien (regardless of whether such Lien has been granted
before, on or after the date hereof) on any property or asset of Lydall Gerhardi
GmbH & Co. KG securing obligations to Deutsche Bank existing on the date hereof
as set forth in Schedule 6.01.
Section VI.3. Fundamental Changes. (a) Except as otherwise consented to by
the Required Lenders, the Borrower will not, and will not permit any Subsidiary
to, merge into or consolidate with any other Person, or permit any other Person
to merge into or consolidate with it, or sell, transfer, lease or otherwise
dispose of (in one transaction or in a series of transactions) all or any
substantial part of its assets, or (whether now owned or hereafter acquired)
sell, transfer, lease or otherwise dispose of any Capital Stock of any
Subsidiary, or liquidate or dissolve, except that, if at the time thereof and
immediately after giving effect thereto no Default shall have occurred and be
continuing (i) any Person may merge into the Borrower in a transaction in which
the Borrower is the surviving corporation, (ii) any Person may merge into any
Wholly-Owned Subsidiary in a transaction in which the surviving entity is a
Wholly-Owned Subsidiary, (iii) any Subsidiary may sell, transfer, lease or
otherwise dispose of its assets to the Borrower or to a Wholly-Owned Subsidiary;
provided that, upon request of the Required Lenders, any deferred purchase price
shall be evidenced by a promissory note in form and substance reasonably
acceptable to the Required Lenders, (iv) the Borrower or any Subsidiary may
sell, transfer, lease or otherwise dispose of its assets to the extent permitted
by Section 6.07(c) and (v) any Subsidiary other than the Subsidiary Borrower may
liquidate or dissolve if the Borrower determines in good faith that such
liquidation or dissolution is in the best interests of the Borrower and is not
materially disadvantageous to the Lenders; provided that any such merger
involving a Person that is not a Wholly-Owned Subsidiary immediately prior to
such merger shall not be permitted unless also permitted by Section 6.04.
(b) The Borrower will not, and will not permit any Subsidiary to,
engage to any material extent in any business other than businesses of the type
conducted by the Borrower and the Subsidiaries on the date of execution of this
Agreement and businesses at least a significant portion of which relates to
businesses incidental, similar or complementary to existing businesses of any
Consolidated Entity or to the design and manufacture of engineered specialty
products for thermal/electrical/insulation and filtration/separation
applications.
Section VI.4. Investments, Loans, Advances, Guarantees and Acquisitions.
The Borrower will not, and will not permit any Subsidiary to, purchase, hold or
acquire (including pursuant to any merger with any Person that was not a
Wholly-Owned Subsidiary prior to such merger) any Capital Stock, evidences of
indebtedness or other securities (including any option, warrant or other right
to acquire any of the foregoing) of, make or permit to exist any loans or
advances to, Guarantee any obligations of, or make or permit to exist any
investment or any other interest in, any other Person, or purchase or otherwise
acquire (in one transaction or a series of transactions) any assets of any other
Person constituting a business unit (or material portion thereof), except:
60
(a) Permitted Investments;
(b) with respect to any Foreign Subsidiary, direct obligations of,
or obligations the principal of and interest on which are unconditionally
guaranteed by, the government of the country in which such Foreign Subsidiary is
organized or has its principal place of business, in each case maturing within
one year from the date of acquisition thereof, so long as the aggregate amount
of all such obligations for all Foreign Subsidiaries does not exceed $5,000,000
in the aggregate at any time outstanding;
(c) loans, advances or investments existing on the date hereof by
the Borrower and the Subsidiaries to or in their respective subsidiaries;
(d) loans or advances made after the Effective Date by the Borrower
to any Wholly-Owned Subsidiary or by any Wholly-Owned Subsidiary to the Borrower
or any other Wholly-Owned Subsidiary; provided that, upon request of the
Required Lenders, such loans or advances shall be evidenced by a promissory note
in form and substance reasonably acceptable to the Required Lenders;
(e) Guarantees constituting Indebtedness permitted by Section 6.01;
(f) investments received in connection with the bankruptcy or
reorganization of, or settlement of delinquent accounts and disputes with,
customers and suppliers, in each case in the ordinary course of business;
(g) Permitted Business Acquisitions by any Consolidated Entity so
long as (i) the aggregate cash and non-cash consideration (including the
concurrent repayment or assumption of any Indebtedness) paid by the Borrower and
the Subsidiaries in respect of any such Permitted Business Acquisition does not
exceed $15,000,000 and (ii) the aggregate cash and non-cash consideration
(including the concurrent repayment or assumption of any indebtedness) paid by
the Borrower and the Subsidiaries in respect of such Permitted Business
Acquisition and all prior Permitted Business Acquisitions during the same fiscal
quarter of the Borrower and the prior three fiscal quarters of the Borrower does
not exceed $25,000,000;
(h) investments by the Borrower or any Subsidiary existing on the
date hereof and set forth in Schedule 6.04;
(i) investments that do not exceed $500,000 in the aggregate at any
time outstanding made in connection with a sale of assets permitted by Section
6.07 to the extent of the non-cash consideration received by the Borrower or any
Subsidiary;
(j) investments by the Borrower or any Subsidiary after the
Effective Date in Subsidiaries (other than Wholly-Owned Subsidiaries) that do
not exceed $750,000 in the aggregate at any time outstanding;
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(k) loans incurred in the ordinary course of business or advances to
employees by the Borrower or any Subsidiary after the Effective Date that do not
exceed $500,000 in the aggregate at any time outstanding; and
(l) investments in addition to those permitted by (a) through (k) by
the Borrower or any Subsidiary (including investments made to meet minimum
capital requirements of foreign jurisdictions) that do not exceed $500,000 in
the aggregate for the Borrower and all Subsidiaries at any time outstanding.
Section VI.5. Hedging Agreements. The Borrower will not, and will not
permit any Subsidiary to, enter into any Hedging Agreement, other than Hedging
Agreements entered into in the ordinary course of business to hedge or mitigate
risks to which the Borrower or any Subsidiary is exposed in the conduct of its
business or the management of its liabilities.
Section VI.6. Restricted Payments; Certain Payments of Indebtedness. (a)
The Borrower will not, and will not permit any Subsidiary to, declare or make,
or agree to pay or make, directly or indirectly, any Restricted Payment, except
(i) the Borrower may declare and pay dividends with respect to its Capital Stock
payable solely in additional shares of its Capital Stock, (ii) Subsidiaries may
declare and pay cash dividends to the Borrower or any Wholly-Owned Subsidiary
with respect to its Capital Stock, and (iii) so long as at the time thereof and
immediately after giving effect thereto no Default shall have occurred and be
continuing, the Borrower or any Subsidiary may make Restricted Payments in an
aggregate amount not to exceed $1,000,000 for the Borrower and the Subsidiaries
during any fiscal year of the Borrower.
(b) The Borrower will not, and will not permit any Subsidiary to,
make or agree to pay or make, directly or indirectly, any payment or other
distribution (whether in cash, securities or other property) of or in respect of
principal of or interest on any Indebtedness, or any payment or other
distribution (whether in cash, securities or other property), including any
sinking fund or similar deposit, on account of the purchase, redemption,
retirement, acquisition, cancellation or termination of any Indebtedness, except
(i) payment of Indebtedness created under the Loan Documents; (ii) payment of
regularly scheduled interest and principal payments as and when due in respect
of any Indebtedness (subject to any subordination provisions thereof); (iii)
prepayment at the consummation of a Permitted Business Acquisition of
Indebtedness assumed in connection with such Permitted Business Acquisition; and
(iv) payment of secured Indebtedness that becomes due as a result of the
voluntary sale or transfer of the property or assets securing such Indebtedness.
Section VI.7. Disposition of Assets. Except as otherwise consented to by
the Required Lenders, the Borrower will not, and will not permit any Subsidiary
to, sell, transfer, lease or otherwise dispose of any asset, including any
Capital Stock, except:
(a) sales of inventory and used or surplus equipment in the ordinary
course of business;
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(b) sales, transfers and dispositions permitted by Section 6.03; and
(c) sales, transfers and dispositions of assets (other than Capital
Stock of a Subsidiary) that are not permitted by any other clause of this
Section 6.07 so long as the Borrower demonstrates to the Lenders that its
performance on a pro forma basis, after giving effect to such sale, transfer or
disposition, of the covenants contained in Sections 6.12, 6.13 and 6.14 (as of
the last day of the most recently ended fiscal quarter of the Borrower) shall
improve; provided that the aggregate fair market value of all assets sold,
transferred or otherwise disposed of in reliance upon this clause (c) shall not
exceed (i) $6,000,000 in any single transaction (which limit shall be waived,
subject to the fulfillment of the other requirements of this clause (c), in the
reasonable discretion of the Required Lenders) or (ii) $15,000,000 in the
aggregate from the Effective Date to the Maturity Date;
provided that all sales, transfers, leases and other dispositions permitted
hereby shall be made for fair value as agreed to in an arm's length transaction.
Section VI.8. Transactions with Affiliates. The Borrower will not, and
will not permit any Subsidiary to, sell, lease or otherwise transfer any
property or assets to, or purchase, lease or otherwise acquire any property or
assets from, or otherwise engage in any other transactions with, any of its
Affiliates, except (a) transactions in the ordinary course of business and at
prices and on terms and conditions not less favorable to the Borrower or such
Subsidiary than could be obtained on an arm's-length basis from unrelated third
parties, (b) Indebtedness permitted by Sections 6.01(b) and 6.01(c), investments
permitted by Section 6.04 and fundamental changes permitted by Section 6.03 so
long as each such transaction is at a price and on terms and conditions not less
favorable to the Borrower or such Subsidiary than could be obtained on an
arm's-length basis from unrelated third parties, (c) any Restricted Payment
permitted by Section 6.06, (d) any merger, consolidation, liquidation,
dissolution or corporate reorganization permitted under Section 6.03, (e)
transactions existing on the date hereof and set forth in Schedule 6.08, and (f)
any Affiliate who is an individual may serve as a director, officer or employee
of the Borrower or such Subsidiary and receive compensation for his or her
services in such capacity.
Section VI.9. Restrictive Agreements. The Borrower will not, and will not
permit any Subsidiary to, directly or indirectly, enter into, incur or permit to
exist any agreement or other arrangement (other than this Agreement) that
prohibits, restricts or imposes any condition upon (a) the ability of the
Borrower or any Subsidiary to create, incur or permit to exist any Lien upon any
of its property or assets, or (b) the ability of any Subsidiary to pay dividends
or other distributions with respect to any shares of its Capital Stock or to
make or repay loans or advances to the Borrower or any other Subsidiary or to
Guarantee Indebtedness of the Borrower or any other Subsidiary; provided that
(i) the foregoing shall not apply to restrictions and conditions imposed by law
or by this Agreement, (ii) the foregoing shall not apply to restrictions and
conditions existing on the date hereof identified on Schedule 6.09 (but shall
apply to any extension or renewal of, or any amendment or modification expanding
the scope of, any such restriction or condition), (iii) the
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foregoing shall not apply to restrictions or conditions imposed by any agreement
relating to secured Indebtedness permitted by Section 6.01(d) if such
restrictions or conditions apply only to the property or assets securing such
Indebtedness or the Subsidiary owning such property or assets.
Section VI.10. Issuances of Capital Stock by Subsidiaries. The Borrower
will not permit any Subsidiary to issue any additional shares of its Capital
Stock or interest other than (a) to the Borrower or a Wholly-Owned Subsidiary,
(b) any such issuance that does not change the Borrower's direct or indirect
percentage ownership interest in such Subsidiary and (c) any such issuance that
is permitted pursuant to Section 6.03 or 6.04.
Section VI.11. Subsidiary Borrower. The Borrower will not cease to own,
directly or indirectly, and Control 100% (other than directors' qualifying
shares) of the ordinary voting power of the Subsidiary Borrower.
Section VI.12. Fixed Charge Coverage Ratio. The Borrower will not permit
the Fixed Charge Coverage Ratio as determined as of the end of each fiscal
quarter of the Borrower to be less than 1.50 to 1.00.
Section VI.13. Leverage Ratio. The Borrower will not permit the Leverage
Ratio as determined as of the end of each fiscal quarter of the Borrower to be
greater than 3.00 to 1.00.
Section VI.14. Consolidated Tangible Net Worth. The Borrower will not
permit Consolidated Tangible Net Worth at any time to be less than the sum of
(a) $73,000,000 plus (b) the aggregate sum of the Fiscal Year Net Worth Increase
Amounts calculated for each fiscal year of the Borrower.
ARTICLE VII
Events of Default
If any of the following events ("Events of Default") shall occur:
(a) the Borrower or the Subsidiary Borrower shall fail to pay any
principal of any Loan or any reimbursement obligation in respect of any LC
Disbursement when and as the same shall become due and payable, whether at the
due date thereof or at a date fixed for prepayment thereof or otherwise;
(b) the Borrower or the Subsidiary Borrower shall fail to pay any
interest on any Loan or any fee or any other amount (other than an amount
referred to in clause (a) of this Article) payable under this Agreement, when
and as the same shall become due and payable;
(c) any representation or warranty made or deemed made by or on
behalf of the Borrower or any Subsidiary in or in connection with this Agreement
or any amendment or
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modification hereof or waiver hereunder, or in any report, certificate,
financial statement or other document furnished pursuant to or in connection
with this Agreement or any amendment or modification hereof or waiver hereunder,
shall prove to have been incorrect when made or deemed made or furnished;
(d) the Borrower shall fail to observe or perform any covenant,
condition or agreement contained in Section 5.02, 5.03 (with respect to the
Borrower's or the Subsidiary Borrower's existence) or 5.08 or in Article VI;
(e) the Borrower or any Subsidiary shall fail to observe or perform
any covenant, condition or agreement contained in any Loan Document (other than
those specified in clause (a), (b) or (d) of this Article), and such failure
shall continue unremedied for a period of 30 days after notice thereof from the
Administrative Agent to the Borrower (which notice will be given at the request
of any Lender);
(f) the Borrower or any Subsidiary shall fail to make any payment
(whether of principal or interest and regardless of amount) in respect of any
Material Indebtedness, when and as the same shall become due and payable, and
such failure shall continue unremedied for a period of 30 days after notice
thereof from the Administrative Agent to the Borrower (which notice will be
given at the request of any Lender);
(g) any event or condition occurs that results in any Material
Indebtedness becoming due prior to its scheduled maturity or that enables or
permits (with or without the giving of notice, the lapse of time or both) the
holder or holders of any Material Indebtedness or any trustee or agent on its or
their behalf to cause any Material Indebtedness to become due, or to require the
prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled
maturity; provided that this clause (g) shall not apply to secured Indebtedness
that becomes due as a result of the voluntary sale or transfer of the property
or assets securing such Indebtedness;
(h) an involuntary proceeding shall be commenced or an involuntary
petition shall be filed seeking (i) liquidation, reorganization or other relief
in respect of the Borrower or any Subsidiary or its debts, or of a substantial
part of its assets, under any Federal, state or foreign bankruptcy, insolvency,
receivership or similar law now or hereafter in effect or (ii) the appointment
of a receiver, trustee, custodian, sequestrator, conservator or similar official
for the Borrower or any Subsidiary or for a substantial part of its assets, and,
in any such case, such proceeding or petition shall continue undismissed for 60
days or an order or decree approving or ordering any of the foregoing shall be
entered;
(i) the Borrower or any Subsidiary shall (i) voluntarily commence
any proceeding or file any petition seeking liquidation, reorganization or other
relief under any Federal, state or foreign bankruptcy, insolvency, receivership
or similar law now or hereafter in effect, (ii) consent to the institution of,
or fail to contest in a timely and appropriate manner, any proceeding or
petition described in clause (h) of this Article, (iii) apply for or consent to
the appointment of a
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receiver, trustee, custodian, sequestrator, conservator or similar official for
the Borrower or any Subsidiary or for a substantial part of its assets, (iv)
file an answer admitting the material allegations of a petition filed against it
in any such proceeding, (v) make a general assignment for the benefit of
creditors or (vi) take any action for the purpose of effecting any of the
foregoing;
(j) the Borrower or any Subsidiary shall admit in writing its
inability or fail generally to pay its debts as they become due;
(k) one or more judgments for the payment of money in an aggregate
amount in excess of $2,000,000 in the aggregate shall be rendered against the
Borrower, any Subsidiary or any combination thereof and the same shall remain
undischarged for a period of 30 consecutive days during which execution shall
not be effectively stayed, or any action shall be legally taken by a judgment
creditor to attach or levy upon any assets of the Borrower or any Subsidiary to
enforce any such judgment;
(l) an ERISA Event shall have occurred that, in the opinion of the
Required Lenders, when taken together with all other ERISA Events that have
occurred, could reasonably be expected to result in liability of the Borrower
and the Subsidiaries in an aggregate amount exceeding $3,000,000;
(m) (i) any Security Document shall for any reason cease to create
in favor of the Administrative Agent for its benefit and the ratable benefit of
the Lenders a legal, valid and enforceable perfected first-priority Lien on the
Collateral as security for the obligations of the Loan Parties under the Loan
Documents; or (ii) any Loan Document executed by the Borrower or any Subsidiary
shall at any time after its execution and delivery and for any reason cease to
be in full force and effect or shall be declared null and void, or the validity
or enforceability thereof shall be contested by any party thereto or any party
thereto shall deny in writing it has any further liability or obligation
thereunder or shall fail to perform its obligations thereunder;
(n) the Required Lenders shall have determined in good faith that a
change that could reasonably be expected to have a Material Adverse Effect has
occurred in the business, assets, operations, or condition (financial or
otherwise) of the enterprise comprised of the Borrower and the Subsidiaries
taken as a whole; or
(o) a Change in Control shall occur;
then, and in every such event (other than an event with respect to the Borrower
or the Subsidiary Borrower described in clause (h) or (i) of this Article), and
at any time thereafter during the continuance of such event, the Administrative
Agent may, with the consent of the Required Lenders, and shall, at the request
of the Required Lenders, by notice to the Borrower and the Subsidiary Borrower,
take any or all of the following actions, at the same or different times: (i)
terminate the Commitments, and thereupon the Commitments shall terminate
immediately, (ii) declare the Loans then outstanding to be due and payable in
whole (or in part, in which case any principal not so
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declared to be due and payable may thereafter be declared to be due and payable)
and thereupon the principal of the Loans so declared to be due and payable,
together with accrued interest thereon and all fees and other obligations of the
Borrower and the Subsidiary Borrower accrued hereunder, shall become due and
payable immediately, without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by the Borrower and the Subsidiary
Borrower, and (iii) enforce its rights under each Guarantee Agreement and each
Security Document on behalf of the Lenders and the Issuing Bank; and in case of
any event with respect to the Borrower or the Subsidiary Borrower described in
clause (h) or (i) of this Article, the Commitments shall automatically terminate
and the principal of the Loans then outstanding, together with accrued interest
thereon and all fees and other obligations of the Borrower and the Subsidiary
Borrower accrued hereunder, shall automatically become due and payable, without
presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrower and the Subsidiary Borrower.
ARTICLE VIII
The Administrative Agent
Each of the Lenders and the Issuing Bank hereby irrevocably appoints the
Administrative Agent as its agent and authorizes the Administrative Agent to
take such actions on its behalf and to exercise such powers as are delegated to
the Administrative Agent by the terms hereof, together with such actions and
powers as are reasonably incidental thereto.
The bank serving as the Administrative Agent hereunder shall have the same
rights and powers in its capacity as a Lender as any other Lender and may
exercise the same as though it were not the Administrative Agent, and such bank
and its Affiliates may accept deposits from, lend money to and generally engage
in any kind of business with the Borrower or any Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder.
The Administrative Agent shall not have any duties or obligations except
those expressly set forth in the Loan Documents. Without limiting the generality
of the foregoing, (a) the Administrative Agent shall not be subject to any
fiduciary or other implied duties, regardless of whether a Default has occurred
and is continuing, (b) the Administrative Agent shall not have any duty to take
any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated by the Loan Documents
that the Administrative Agent is required to exercise in writing by the Required
Lenders (or such other number or percentage of the Lenders as shall be necessary
under the circumstances as provided in Section 10.02), and (c) except as
expressly set forth in the Loan Documents, the Administrative Agent shall not
have any duty to disclose, and shall not be liable for the failure to disclose,
any information relating to the Borrower or any of its Subsidiaries that is
communicated to or obtained by the bank serving as Administrative Agent or any
of its Affiliates in any capacity. The Administrative Agent shall not be liable
for any action taken or not taken by it with the consent or at the request of
the Required Lenders (or such other number or percentage of the Lenders as shall
be necessary under the circumstances as provided in Section 10.02) or in the
absence of its own gross negligence or willful misconduct. The
67
Administrative Agent shall be deemed not to have knowledge of any Default unless
and until written notice thereof is given to the Administrative Agent by a Loan
Party or a Lender, and the Administrative Agent shall not be responsible for or
have any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with any Loan Document, (ii) the
contents of any certificate, report or other document delivered thereunder or in
connection therewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth in any Loan
Document, (iv) the validity, enforceability, effectiveness or genuineness of any
Loan Document or any other agreement, instrument or document, or (v) the
satisfaction of any condition set forth in Article IV or elsewhere in any Loan
Document, other than to confirm receipt of items expressly required to be
delivered to the Administrative Agent.
The Administrative Agent shall be entitled to rely upon, and shall not
incur any liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine
and to have been signed or sent by the proper Person. The Administrative Agent
also may rely upon any statement made to it orally or by telephone and believed
by it to be made by the proper Person, and shall not incur any liability for
relying thereon. The Administrative Agent may consult with legal counsel (who
may be counsel for any Loan Party), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it
in accordance with the advice of any such counsel, accountants or experts.
The Administrative Agent may perform any and all its duties and exercise
its rights and powers by or through any one or more sub-agents appointed by the
Administrative Agent. The Administrative Agent and any such sub-agent may
perform any and all its duties and exercise its rights and powers through their
respective Related Parties. The exculpatory provisions of the preceding
paragraphs shall apply to any such sub-agent and to the Related Parties of the
Administrative Agent and any such sub-agent, and shall apply to their respective
activities in connection with the syndication of the credit facilities provided
for herein as well as activities as Administrative Agent.
Subject to the appointment and acceptance of a successor Administrative
Agent as provided in this paragraph, the Administrative Agent may resign at any
time by notifying the Lenders, the Issuing Bank and the Borrower and the
Administrative Agent may be removed at any time with or without cause by the
Required Lenders; provided that the other Lenders, the Issuing Bank and the
Borrower shall be promptly notified thereof. Upon any such resignation or
removal, the Required Lenders shall have the right, in consultation with the
Borrower so long as no Default has occurred and is continuing, to appoint a
successor. If no successor shall have been so appointed by the Required Lenders
and shall have accepted such appointment within 30 days after the retiring
Administrative Agent gives notice of its resignation or the Required Lenders'
removal of the Administrative Agent, then the retiring Administrative Agent may,
on behalf of the Lenders and the Issuing Bank, appoint a successor
Administrative Agent which shall be a bank with an office in New York, New York,
or an Affiliate of any such bank. Upon the acceptance of its appointment as
Administrative Agent hereunder by a successor, such successor shall succeed to
and become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent, and the retiring
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Administrative Agent shall be discharged from its duties and obligations
hereunder. The fees payable by the Borrower to a successor Administrative Agent
shall be the same as those payable to its predecessor unless otherwise agreed
between the Borrower and such successor. After the Administrative Agent's
resignation hereunder, the provisions of this Article and Section 10.03 shall
continue in effect for the benefit of such retiring Administrative Agent, its
sub-agents and their respective Related Parties in respect of any actions taken
or omitted to be taken by any of them while it was acting as Administrative
Agent.
Each Lender acknowledges that it has, independently and without reliance
upon the Administrative Agent or any other Lender and based on such documents
and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender also acknowledges that it
will, independently and without reliance upon the Administrative Agent or any
other Lender and based on such documents and information as it shall from time
to time deem appropriate, continue to make its own decisions in taking or not
taking action under or based upon this Agreement, any other Loan Document or
related agreement or any document furnished hereunder or thereunder.
Subject to the foregoing provisions of this Article VIII, the
Administrative Agent shall, on behalf of the Lenders, (i) execute each Loan
Document on behalf of the Lenders, (ii) hold and apply the Collateral, and the
proceeds thereof, at any time received by it in accordance with the provisions
of the Loan Documents, (iii) exercise any and all rights, powers and remedies of
the Lenders under the Loan Documents, including the giving of any consent or
waiver or the entering into of any amendment, subject to the provisions of
Section 10.02, (iv) execute, deliver and file financing statements, assignments
and other such agreements, and possess instruments on behalf of the Lenders and
(v) in the event of acceleration of the obligations of the Borrower and the
Subsidiary Borrower hereunder, exercise the rights of the Lenders under the Loan
Documents upon and at the direction of the Required Lenders.
Each party hereto agrees and acknowledges that the Documentation Agent,
the arranger and the book manager do not have any duties or responsibilities in
their capacities as Documentation Agent, arranger and book manager,
respectively, hereunder and shall not have, or become subject to, any liability
hereunder in such capacities.
ARTICLE IX
Guarantee
In order to induce the Lenders to extend credit hereunder, the Borrower
hereby absolutely, irrevocably and unconditionally guarantees, as a primary
obligor and not merely as a surety, the timely payment of any and all of the
Obligations. The Borrower further agrees that the due and punctual payment of
the Obligations may be extended or renewed, in whole or in part, without notice
to or further assent from it, and that it will remain bound upon its Guarantee
hereunder notwithstanding any such extension or renewal of any Obligation.
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The Borrower waives presentment to, demand of payment from and protest to
the Subsidiary Borrower of any of the Obligations, and also waives notice of
acceptance of its obligations and notice of protest for nonpayment. The
obligations of the Borrower hereunder shall not be affected by (a) the failure
of any Lender or the Administrative Agent to assert any claim or demand or to
enforce or exercise any right or remedy against any Loan Party under the
provisions of this Agreement, of any other Loan Document or otherwise or (b) any
rescission, waiver, amendment or modification of any of the terms or provisions
of this Agreement, any other Loan Document or any other agreement or the release
or other impairment of any Collateral or the release of the Subsidiary Borrower.
The Borrower shall be obligated to keep informed of the financial condition of
the Subsidiary Borrower; provided that the failure of the Borrower to keep so
informed shall not affect its obligations hereunder.
The Borrower further agrees that its agreement under this Article IX
constitutes a promise of payment when due (whether or not any bankruptcy or
similar proceeding shall have stayed the accrual or collection of any of the
Obligations or operated as a discharge thereof) and not merely of collection,
and waives any right to require that any resort be had by any Lender to any
balance of any deposit account or credit on the books of any Lender in favor of
any Loan Party or any other Person or to any other remedy against any Loan
Party.
The Administrative Agent and any Lender may at any time and from time to
time without the consent of, or notice to, the Borrower, without incurring
responsibility to the Borrower, without impairing or releasing the obligations
of the Borrower hereunder or under any security provided by the Borrower for
performance of its obligations hereunder, upon or without any terms or
conditions and in whole or in part: (a) subject to Section 10.02(b), change the
manner, place or terms of payment (including the currency thereof) of and/or
change or extend the time of payment of, renew or alter any of the Obligations,
any security therefor, or any liability incurred directly or indirectly in
respect thereof, and the guarantee herein made shall apply to the Obligations as
so changed, extended, renewed or altered; (b) sell, exchange, release,
surrender, realize upon or otherwise deal with in any manner and in any order
any property by whomsoever at any time pledged or mortgaged to secure, or
howsoever securing, the Obligations or any liabilities (including any of those
hereunder) incurred directly or indirectly in respect thereof or hereof, and/or
any offset thereagainst; (c) fail to assert any claims or demand or exercise or
refrain from exercising any rights or remedies against or release the Subsidiary
Borrower or others or otherwise act or refrain from acting; (d) subject to
Section 10.02(b), settle or compromise any of the Obligations, any security
therefor or any liability (including any of those hereunder) incurred directly
or indirectly in respect thereof or hereof, and subordinate the payment of all
or any part thereof to the payment of any liability (whether due or not) of the
Subsidiary Borrower; (e) apply any sum by whomsoever paid or howsoever realized
to any liability or liabilities of the Subsidiary Borrower or any other
guarantor of any Obligations to the Lenders regardless of what liability or
liabilities of the Subsidiary Borrower remain unpaid; and/or (f) consent to or
waive any breach of, or any act, omission or default under, this Agreement or
any other Loan Documents or otherwise amend, modify or supplement this
Agreement, any other Loan Documents or any of such other instruments or
agreements.
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The obligations of the Borrower under this Article IX shall not be subject
to any reduction, limitation, impairment or termination for any reason, and
shall not be subject to any defense or setoff, counterclaim, recoupment or
termination whatsoever, by reason of the invalidity, illegality or
unenforceability of any of the Obligations, any impossibility in the performance
of the Obligations or otherwise. Without limiting the generality of the
foregoing, the obligations of the Borrower under this Article IX shall not be
discharged or impaired or otherwise affected by the failure of the
Administrative Agent or any Lender to assert any claim or demand or to enforce
any remedy under this Agreement or any other agreement, by any waiver or
modification in respect of any thereof, by any default, failure or delay,
willful or otherwise, in the performance of the Obligations, or by any other act
or omission which may or might in any manner or to any extent vary the risk of
the Borrower or otherwise operate as a discharge of the Borrower or any other
Loan Party as a matter of law or equity.
The Borrower further agrees that its obligations under this Article IX
shall continue to be effective or be reinstated, as the case may be, if at any
time payment, or any part thereof, of any Obligation is rescinded or must
otherwise be restored by the Administrative Agent or any Lender upon the
bankruptcy or reorganization of any Loan Party or otherwise.
In furtherance of the foregoing and not in limitation of any other right
which the Administrative Agent or any Lender may have at law or in equity
against the Borrower by virtue of this Article IX, upon the failure of the
Subsidiary Borrower to pay any Obligation when and as the same shall become due,
whether at maturity, by acceleration, after notice of prepayment or otherwise,
the Borrower hereby promises to and will, upon receipt of written demand by the
Administrative Agent, forthwith pay, or cause to be paid, in cash the amount of
such unpaid Obligation. The Borrower further agrees that if payment in respect
of any Obligation shall be due in a currency other than dollars and/or at a
place of payment other than New York and if, by reason of any Change in Law,
disruption of currency or foreign exchange markets, war or civil disturbance or
similar event, payment of such Obligation in such currency or at such place of
payment shall be impossible or, in the reasonable judgment of any applicable
Lender, not consistent with the protection of its rights or interests, then, at
the election of any applicable Lender, the Borrower shall make payment of such
Obligation in dollars (based upon the applicable Exchange Rate in effect on the
date of payment) and/or in New York, and shall indemnify such Lender against any
losses or expenses that it shall sustain as a result of such alternative
payment.
Upon payment by the Borrower of any sums as provided above, all rights of
the Borrower against the Subsidiary Borrower arising as a result thereof by way
of right of subrogation, contribution, indemnity or otherwise shall in all
respects by subordinated and junior in right of payment to the prior
indefeasible payment in full in cash of all the Obligations owed by the
Subsidiary Borrower to the Lenders and the Borrower shall not exercise any such
rights until such payment in full and the Commitments are terminated.
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The Guarantee of the Borrower under this Article IX is a continuing
guarantee and all liabilities to which it applies or may apply under the terms
hereof shall be conclusively presumed to have been created in reliance hereon.
ARTICLE X
Miscellaneous
Section X.1. Notices. Except in the case of notices and other
communications expressly permitted to be given by telephone, all notices and
other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:
(a) if to the Borrower, to it at Lydall, Inc., Xxx Xxxxxxxx Xxxx,
Xxxxxxxxxx, Xxxxxxxxxxx 00000, Attention of Xxxx X. Xxxxxx (Telecopy No. (860)
646-4917), with a copy to Xxxx X. Xxxxxxxx;
(b) if to the Subsidiary Borrower, to it at Lydall Deutschland
Holding GmbH, c/o Lydall, Inc., Xxx Xxxxxxxx Xxxx, Xxxxxxxxxx, Xxxxxxxxxxx
00000, Attention of Xxxxxxxxxxx X. Xxxxxxxxxxx (Telecopy No. (000) 000-0000)
with a copy to Xxxx X. Xxxxxx and Xxxx X. Xxxxxxxx;
(c) if to the Administrative Agent, to it at The Chase Manhattan
Bank, Loan and Agency Services Group, One Chase Xxxxxxxxx Xxxxx, 0xx Xxxxx, Xxx
Xxxx, Xxx Xxxx 00000, Attention of Xxxxx Xxxx (Telecopy No. (000) 000-0000) with
a copy to The Chase Manhattan Bank, 000 Xxxxxx Xxxxxx, Xxx Xxxxx, Xxxxxxxxxxx
00000, Attention of Xxxx X. Xxxxxxx (Telecopy No. (000) 000-0000) and, in the
case of notices with respect to any Loan denominated in an Alternative Currency,
to The Chase Manhattan Bank, 9 Xxxxxx Xxxxx Xxxxxx, Xxxxxx, X00XX, Xxxxxx,
Xxxxxx Xxxxxxx, Attention of Xxxxx Xxxxxx (Telecopy No. 00-000-000-0000);
(d) if to the Issuing Bank or to the Swingline Lender (if The Chase
Manhattan Bank), to it at The Chase Manhattan Bank, Loan and Agency Services
Group, One Chase Xxxxxxxxx Xxxxx, 0xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention
of Xxxxx Xxxx (Telecopy No. (000) 000-0000) with a copy to The Chase Manhattan
Bank, 000 Xxxxxx Xxxxxx, Xxx Xxxxx, Xxxxxxxxxxx 00000, Attention of Xxxx X.
Xxxxxxx (Telecopy No. (000) 000-0000);
(e) if to the Swingline Lender (if Fleet National Bank), to it at
Fleet National Bank, Xxx Xxxxxxx Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx 00000, Attention
of Xxxxxx Xxxxxxx, MAFDO7K (Telecopy No. (000) 000-0000); and
(f) if to any other Lender, to it at its address (or telecopy
number) set forth in its Administrative Questionnaire.
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Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and
other communications given to any party hereto in accordance with the provisions
of this Agreement shall be deemed to have been given on the date of receipt.
Section X.2. Waivers; Amendments. (a) No failure or delay by the
Administrative Agent, the Issuing Bank or any Lender in exercising any right or
power hereunder or under any other Loan Document shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or
any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Administrative Agent, the Issuing
Bank and the Lenders hereunder and under the other Loan Documents are cumulative
and are not exclusive of any rights or remedies that they would otherwise have.
No waiver of any provision of any Loan Document or consent to any departure by
any Loan Party therefrom shall in any event be effective unless the same shall
be permitted by paragraph (b) of this Section, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which
given. Without limiting the generality of the foregoing, the making of a Loan or
issuance of a Letter of Credit shall not be construed as a waiver of any
Default, regardless of whether the Administrative Agent, any Lender or the
Issuing Bank may have had notice or knowledge of such Default at the time.
(b) Neither this Agreement nor any other Loan Document nor any
provision hereof or thereof may be waived, amended or modified except pursuant
to an agreement or agreements in writing entered into by the Borrower and the
Subsidiaries that are parties thereto and the Required Lenders or by the
Borrower and the Subsidiaries that are parties thereto and the Administrative
Agent with the consent of the Required Lenders; provided that no such agreement
shall (i) increase any Commitment of any Lender without the written consent of
such Lender, (ii) reduce the principal amount of any Loan or obligation to
reimburse any LC Disbursement or reduce the rate of interest on any Loan or LC
Disbursement, or reduce any fees payable hereunder, without the written consent
of each Lender affected thereby, (iii) postpone the date fixed for the payment
or prepayment of the principal amount of any Loan or the reimbursement of any LC
Disbursement, or any interest thereon, or any fees payable hereunder, or reduce
the amount of, waive or excuse any such payment, or postpone the scheduled date
of expiration of any Commitment, or amend or waive the application of Section
2.19(b), without the written consent of each Lender affected thereby, (iv)
release the Borrower from its Guarantee under Article IX, or limit its liability
in respect of such Guarantee, without the written consent of each Lender, (v)
release any Subsidiary from its Guarantee under a Guarantee Agreement or limit
its liability in respect of such Guarantee or such Guarantee Agreement or its
obligation to enter into and provide a Guarantee pursuant to a Guarantee
Agreement, without the written consent of each Lender, (vi) release all or any
part of the Collateral or permit the creation of any Lien on the Collateral,
without the written consent of each Lender, (vii) change Section 2.18(b), (c) or
(d) in a manner that would alter the pro rata sharing of payments required
thereby, without the written consent of each Lender, (viii) change any of the
provisions of this Section or the definition of "Required Lenders" or any other
provision hereof specifying the number or percentage of Lenders required to
waive, amend or modify any rights
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hereunder or make any determination or grant any consent hereunder, without the
written consent of each Lender, (ix) modify or amend Section 2.17, without the
written consent of each Lender, (x) consent to the assignment or transfer by any
Loan Party of its rights or obligations hereunder or under any other Loan
Document, without the written consent of each Lender, or (xi) waive any of the
conditions precedent set forth in Article IV, without the written consent of
each Lender; provided further that no such agreement shall amend, modify or
otherwise affect the rights or duties of the Administrative Agent, the Issuing
Bank or the Swingline Lender hereunder without the prior written consent of the
Administrative Agent, the Issuing Bank or the Swingline Lender, as the case may
be.
Section X.3. Expenses; Indemnity; Damage Waiver. (a) The Borrower
(including, insofar as it is responsible for such expenses, the Subsidiary
Borrower) shall pay (i) all reasonable, documented out-of-pocket expenses
incurred by the Administrative Agent, including the reasonable fees, charges and
disbursements of counsel for the Administrative Agent, in connection with the
syndication of the credit facilities provided for herein, the preparation and
administration of the Loan Documents or any amendments, modifications or waivers
of the provisions hereof or thereof (whether or not the transactions
contemplated hereby or thereby shall be consummated), and (ii) all reasonable
out-of-pocket expenses incurred by the Administrative Agent, the Issuing Bank or
any Lender, including the fees, charges and disbursements of any counsel for the
Administrative Agent, the Issuing Bank or any Lender, in connection with the
enforcement or protection of its rights with respect to any Loan Party in
connection with the Loan Documents, including its rights under this Section, or
in connection with the Loans made or Letters of Credit issued hereunder,
including all such out-of-pocket expenses incurred during any workout,
restructuring or negotiations in respect of such Loans or Letters of Credit.
(b) The Borrower (including, insofar as it is responsible for such
expenses, the Subsidiary Borrower) shall indemnify the Administrative Agent, the
Issuing Bank and each Lender, and each Related Party of any of the foregoing
Persons (each such Person being called an "Indemnitee") against, and hold each
Indemnitee harmless from any third party claims resulting in, any and all
losses, claims, damages, liabilities and related expenses (without duplication),
including the reasonable fees, charges and disbursements of one counsel for all
Indemnitees, incurred by or asserted against any Indemnitee arising out of, in
connection with, or as a result of (i) the execution or delivery of any Loan
Document or any agreement or instrument contemplated hereby, the performance by
the parties to the Loan Documents of their respective obligations thereunder or
the consummation of the Transactions or any other transactions contemplated
hereby, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom
(including any refusal by the Issuing Bank to honor a demand for payment under a
Letter of Credit if the documents presented in connection with such demand do
not strictly comply with the terms of such Letter of Credit), (iii) any actual
or alleged presence or release of Hazardous Materials on or from any property
owned or operated by the Borrower or any of its Subsidiaries, or any
Environmental Liability related in any way to the Borrower or any of its
Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation
or proceeding relating to any of the foregoing, whether based on contract, tort
or any other theory and regardless of whether any Indemnitee is a party thereto;
provided that such indemnity shall not, as to any Indemnitee, be available to
the extent that such losses, claims, damages, liabilities or
74
related expenses are determined by a court of competent jurisdiction by final
and nonappealable judgment to have resulted from the gross negligence or willful
misconduct of such Indemnitee.
(c) To the extent that the Borrower or the Subsidiary Borrower fails
to pay any amount required to be paid by it to the Administrative Agent, the
Issuing Bank or a Swingline Lender under paragraph (a) or (b) of this Section,
each Lender severally agrees to pay to the Administrative Agent, the Issuing
Bank or such Swingline Lender, as the case may be, such Lender's Applicable RC
Percentage (determined as of the time that the applicable unreimbursed expense
or indemnity payment is sought) of such unpaid amount; provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against the
Administrative Agent, the Issuing Bank or such Swingline Lender in its capacity
as such. To the extent that the Administrative Agent, the Issuing Bank or a
Swingline Lender subsequently receives reimbursement of such unpaid amount from
the Borrower, the Administrative Agent, the Issuing Bank or such Swingline
Lender will distribute the amount of such reimbursement to the Lenders who paid
the Administrative Agent, the Issuing Bank or such Swingline Lender.
(d) To the extent permitted by applicable law and except in the case
of willful misconduct by such Indemnitee (as determined by a court of competent
jurisdiction by a final and nonappealable judgment), neither the Borrower nor
the Subsidiary Borrower shall assert, and each of the Borrower and the
Subsidiary Borrower hereby waives, any claim against any Indemnitee, on any
theory of liability, for special, indirect, consequential or punitive damages
(as opposed to direct or actual damages) arising out of, in connection with, or
as a result of, this Agreement or any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the Transactions, any Loan or Letter
of Credit or the use of the proceeds thereof.
(e) All amounts due under this Section 10.03 shall be payable
promptly after written demand therefor (subject to reimbursement, together with
interest thereon from the date of payment, if there is a determination that such
Indemnitee was not entitled in whole or in part to such amount).
Section X.4. Successors and Assigns. (a) The provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby (including any Affiliate of
the Issuing Bank that issues any Letter of Credit), except that neither the
Borrower nor the Subsidiary Borrower may assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of each Lender
(and any attempted assignment or transfer by the Borrower or the Subsidiary
Borrower without such consent shall be null and void). Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns
permitted hereby (including any Affiliate of the Issuing Bank that issues any
Letter of Credit) and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent, the Issuing Bank and the Lenders)
any legal or equitable right, remedy or claim under or by reason of this
Agreement.
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(b) Any Lender may assign to one or more assignees all or a portion
of its rights and obligations under this Agreement (including all or a portion
of its Commitment and the Loans at the time owing to it); provided that (i) each
of the Borrower and the Administrative Agent (and, in the case of an assignment
of all or a portion of a Revolving Credit Commitment or any Lender's obligations
in respect of its LC Exposure or Swingline Exposure, the Issuing Bank and the
Swingline Lenders) must give their prior written consent to such assignment
(which consent, in each case, shall not be unreasonably withheld), except in the
case of an assignment to a Lender or an Affiliate of a Lender, (ii) except in
the case of an assignment to a Lender or an Affiliate of a Lender or an
assignment of the entire remaining amount of the assigning Lender's Commitments,
the amount of the Commitments of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Acceptance with respect
to such assignment is delivered to the Administrative Agent) shall not be less
than $10,000,000 unless each of the Borrower and the Administrative Agent
otherwise consent, (iii) each partial assignment shall be made as an assignment
of a proportionate part of all the assigning Lender's rights and obligations
under this Agreement, (iv) the Lender and assignee to each assignment shall
execute and deliver to the Administrative Agent an Assignment and Acceptance,
together with a processing and recordation fee of $2,500, and (v) the assignee,
if it shall not be a Lender, shall deliver to the Administrative Agent an
Administrative Questionnaire; and provided further that any consent of the
Borrower otherwise required under this paragraph shall not be required if an
Event of Default under clause (h) or (i) of Article VII has occurred and is
continuing. Subject to acceptance and recording thereof pursuant to paragraph
(d) of this Section, from and after the effective date specified in each
Assignment and Acceptance the assignee thereunder shall be a party hereto and,
to the extent of the interest assigned by such Assignment and Acceptance, have
the rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Acceptance, be released from its obligations under this Agreement
(and, in the case of an Assignment and Acceptance covering all of the assigning
Lender's rights and obligations under this Agreement, such Lender shall cease to
be a party hereto but shall continue to be entitled to the benefits of Sections
2.15, 2.16, 2.17, 10.03 and 10.14). Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
paragraph shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with
paragraph (e) of this Section.
(c) The Administrative Agent, acting for this purpose as an agent of
the Borrower and the Subsidiary Borrower, shall maintain at one of its offices
in The City of New York a copy of each Assignment and Acceptance delivered to it
and a register for the recordation of the names and addresses of the Lenders,
and the Commitments of, and principal amount of the Loans and LC Disbursements
owing to, each Lender pursuant to the terms hereof from time to time (the
"Register"). The entries in the Register shall be conclusive, and the Borrower,
the Subsidiary Borrower, the Administrative Agent, the Issuing Bank and the
Lenders may treat each Person whose name is recorded in the Register pursuant to
the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. The Register shall be available for
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inspection by the Borrower, the Subsidiary Borrower, the Issuing Bank and any
Lender, at any reasonable time and from time to time upon reasonable prior
notice.
(d) Upon its receipt of a duly completed Assignment and Acceptance
executed by an assigning Lender and an assignee, the assignee's completed
Administrative Questionnaire (unless the assignee shall already be a Lender
hereunder), the processing and recordation fee referred to in paragraph (b) of
this Section 10.04 and any written consent to such assignment required by
paragraph (b) of this Section 10.04, the Administrative Agent shall accept such
Assignment and Acceptance and record the information contained therein in the
Register. No assignment shall be effective for purposes of this Agreement unless
it has been recorded in the Register as provided in this paragraph.
(e) Any Lender may, without the consent of the Borrower or the
Subsidiary Borrower (subject to paragraph (f) of this Section), the
Administrative Agent, the Issuing Bank or the Swingline Lenders, sell
participations to one or more banks or other entities (a "Participant") in all
or a portion of such Lender's rights and obligations under this Agreement
(including all or a portion of its Commitments and the Loans owing to it);
provided that (i) such Lender's obligations under this Agreement shall remain
unchanged, (ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations and (iii) the Borrower, the
Subsidiary Borrower, the Administrative Agent, the Issuing Bank and the other
Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender's rights and obligations under this Agreement. Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision
of this Agreement; provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any
amendment, modification or waiver described in the first proviso to Section
10.02(b) that affects such Participant. Subject to paragraph (f) of this
Section, the Borrower and the Subsidiary Borrower agree that each Participant
shall be entitled to the benefits of Sections 2.15, 2.16 and 2.17 to the same
extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (b) of this Section 10.04. To the extent permitted by law,
each Participant also shall be entitled to the benefits of Section 10.08 as
though it were a Lender, provided such Participant agrees to be subject to
Section 2.17(c) as though it were a Lender.
(f) A Participant shall not be entitled to receive any greater
payment under Section 2.15, 2.16 or 2.17 than the applicable Lender would have
been entitled to receive with respect to the participation sold to such
Participant, unless the sale of the participation to such Participant is made
with the Borrower's prior written consent. A Participant that would be a Foreign
Lender if it were a Lender shall not be entitled to the benefits of Section 2.17
unless the Borrower is notified of the participation sold to such Participant
and such Participant agrees, for the benefit of the Borrower and the Subsidiary
Borrower, to comply with Sections 2.17(e) and (f) as though it were a Lender.
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(g) Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement to secure obligations
of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank, and this Section 10.04 shall not apply to any such pledge
or assignment of a security interest (provided that, other than in connection
with a pledge to a Federal Reserve Bank, this Section 10.04 shall apply to any
transferee (including the pledgee or assignee) upon the exercise of rights under
such pledge or assignment); provided that no such pledge or assignment of a
security interest shall release a Lender from any of its obligations hereunder
or substitute any such pledgee or assignee for such Lender as a party hereto.
(h) Notwithstanding anything to the contrary contained herein, any
Lender (a "Granting Lender") may grant to a special purpose funding vehicle (an
"SPC") of such Granting Lender, identified as such in writing from time to time
by such Granting Lender to the Administrative Agent, the Borrower and the
Subsidiary Borrower, the option to provide to the Borrower or the Subsidiary
Borrower all or any part of any Loan that such Granting Lender would otherwise
be obligated to make to the Borrower or the Subsidiary Borrower pursuant to
Section 2.01, provided that (i) nothing herein shall constitute a commitment to
make any Loan by any SPC, (ii) if an SPC elects not to exercise such option or
otherwise fails to provide all or any part of such Loan, such Granting Lender
shall be obligated to make such Loan pursuant to the terms hereof and (iii) all
credit decisions (including without limitation any decisions with respect to
amendments and waivers) will continue to be made by such Granting Lender. The
making of a Loan by an SPC hereunder shall utilize the Commitments of the
applicable Granting Lender to the same extent, and as if, such Loan were made by
such Granting Lender. Each party hereto hereby agrees that no SPC shall be
liable for any payment under this Agreement for which a Lender would otherwise
be liable, for so long as, and to the extent, the related Granting Lender makes
such payment. In furtherance of the foregoing, each party hereto hereby agrees
that, prior to the date that is one year and one day after the payment in full
of all outstanding senior indebtedness of any SPC, it will not institute
against, or join any other person in instituting against, such SPC any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
or similar proceedings under the laws of the United States or any State thereof.
In addition, notwithstanding anything to the contrary contained in this Section,
any SPC may (i) with notice to, but without the prior written consent of, the
Borrower, the Subsidiary Borrower or the Administrative Agent and without paying
any processing fee therefor, assign all or a portion of its interests in any
Loans to its Granting Lender in connection with liquidity and/or credit
facilities to or for the account of such SPC to fund such Loans and (ii) subject
to the provisions of Section 10.12, disclose on a confidential basis any
non-public information relating to its Loans to any rating agency, commercial
paper dealer or provider of a surety, guarantee or credit or liquidity
enhancement to such SPC.
Section X.5. Survival. All covenants, agreements, representations and
warranties made by the Loan Parties in the Loan Documents and in the
certificates or other instruments delivered in connection with or pursuant to
this Agreement or any other Loan Document shall be considered to have been
relied upon by the other parties hereto and shall survive the execution and
delivery of the Loan Documents and the making of any Loans and issuance of any
Letters of Credit, regardless of any investigation made by any such other party
or on its behalf and notwithstanding that the
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Administrative Agent, the Issuing Bank or any Lender may have had notice or
knowledge of any Default or incorrect representation or warranty at the time any
credit is extended hereunder, and shall continue in full force and effect as
long as the principal of or any accrued interest on any Loan or any fee or any
other amount payable under this Agreement is outstanding and unpaid or any
Letter of Credit is outstanding and so long as the Commitments have not expired
or terminated. The provisions of Sections 2.15, 2.16, 2.17, 10.03, and 10.14 and
Article VIII and the seventh paragraph of Article IX shall survive and remain in
full force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Loans, the expiration or termination
of the Letters of Credit and the Commitments or the termination of this
Agreement or any provision hereof.
Section X.6. Counterparts; Integration; Effectiveness. This Agreement may
be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which when
taken together shall constitute a single contract. The Loan Documents and any
separate letter agreements with respect to fees payable to the Administrative
Agent constitute the entire contract among the parties relating to the subject
matter thereof and supersede any and all previous agreements and understandings,
oral or written, relating to the subject matter hereof and thereof. Except as
provided in Section 4.01, this Agreement shall become effective when it shall
have been executed by the Administrative Agent and when the Administrative Agent
shall have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns. Delivery of an executed counterpart of a signature page
of this Agreement by telecopy shall be effective as delivery of a manually
executed counterpart of this Agreement.
Section X.7. Severability. Any provision of this Agreement held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.
Section X.8. Right of Setoff. If an Event of Default shall have occurred
and be continuing, each Lender and each of its Affiliates is hereby authorized
at any time and from time to time, to the fullest extent permitted by law, to
set off and apply any and all deposits (general or special, time or demand,
provisional or final), in any currency, at any time held and other obligations
at any time owing by such Lender or Affiliate, in any currency, to or for the
credit or the account of the Borrower or the Subsidiary Borrower against any of
and all the obligations of the Borrower or the Subsidiary Borrower, in any
currency, now or hereafter existing under this Agreement held by such Lender,
irrespective of whether or not such Lender shall have made any demand under this
Agreement and although such obligations may be unmatured or denominated in a
different currency. The amount of any setoff involving obligations denominated
in different currencies shall be determined by the Administrative Agent
utilizing the Exchange Rate in effect on the date of such setoff. The rights of
each Lender under this Section 10.08 are in addition to other rights and
remedies (including other rights of setoff) which such Lender may have.
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Section X.9. Governing Law; Jurisdiction; Consent to Service of Process.
(a) This Agreement shall be construed in accordance with and governed by the law
of the State of New York.
(b) Each of the Borrower and the Subsidiary Borrower hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of the Supreme Court of the State of New York sitting
in New York County and of the United States District Court for the Southern
District of New York, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Agreement or any other Loan
Document, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding may be heard and determined in such New
York State or, to the extent permitted by law, in such Federal court. Each of
the parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement or
any other Loan Document shall affect any right that the Administrative Agent,
the Issuing Bank or any Lender may otherwise have to bring any action or
proceeding relating to this Agreement or any other Loan Document against the
Borrower, the Subsidiary Borrower, or their respective properties in the courts
of any jurisdiction.
(c) Each of the Borrower and the Subsidiary Borrower hereby
irrevocably and unconditionally waives, to the fullest extent it may legally and
effectively do so, any objection which it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Agreement in any court referred to in paragraph (b) of this Section 10.09.
Each of the parties hereto hereby irrevocably waives, to the fullest extent
permitted by law, the defense of an inconvenient forum to the maintenance of
such action or proceeding in any such court.
(d) Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 10.01. The Subsidiary
Borrower hereby appoints the Borrower as its agent to receive on its behalf
service of proceedings arising out of or relating to this Agreement or any other
Loan Document in any court, such service being hereby acknowledged by the
Subsidiary Borrower to be effective and binding service in every respect.
Nothing in this Agreement will affect the right of any party to this Agreement
to serve process in any other manner permitted by law.
(e) To the extent that the Subsidiary Borrower has or hereafter
acquires any immunity from suit, execution, attachment or other legal process
under German law, the Subsidiary Borrower hereby waives such immunity in respect
of its obligations under the Loan Documents.
Section X.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL
BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY
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(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 10.10.
Section X.11. Headings. Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of this
Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.
Section X.12. Confidentiality. Each of the Administrative Agent, the
Issuing Bank and the Lenders agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to
its and its Affiliates' directors, officers, employees and agents, including
accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority, (c) to
the extent required by applicable laws or regulations or by any subpoena or
similar legal process, (d) to any other party to this Agreement, (e) in
connection with the exercise of any remedies under any Loan Document or any
suit, action or proceeding relating to this Agreement or any other Loan Document
or the enforcement of rights hereunder or thereunder or to which the
Administrative Agent, the Issuing Bank or such Lender is a party, (f) subject to
an agreement containing provisions substantially the same as those of this
Section 10.12, to any assignee of or Participant in, or any prospective assignee
of or Participant in, any of its rights or obligations under this Agreement, (g)
with the consent of the Borrower or (h) to the extent such Information (i)
becomes publicly available other than as a result of a breach of this Section
10.12 or (ii) becomes available to the Administrative Agent, the Issuing Bank or
any Lender on a nonconfidential basis from a source other than a Loan Party. For
the purposes of this Section 10.12, "Information" means all information received
from a Loan Party relating to a Loan Party or its business, other than any such
information that is available to the Administrative Agent, the Issuing Bank or
any Lender on a nonconfidential basis prior to disclosure by a Loan Party. Any
Person required to maintain the confidentiality of Information as provided in
this Section 10.12 shall be considered to have complied with its obligation to
do so if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information.
Section X.13. Interest Rate Limitation. Notwithstanding anything herein to
the contrary, if at any time the interest rate applicable to any Loan, together
with all fees, charges and other amounts which are treated as interest on such
Loan under applicable law (collectively the "Charges"), shall exceed the maximum
lawful rate (the "Maximum Rate") which may be contracted for, charged, taken,
received or reserved by the Lender holding such Loan in accordance with
applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all
81
Charges payable in respect thereof, shall be limited to the Maximum Rate and, to
the extent lawful, the interest and Charges that would have been payable in
respect of such Loan but were not payable as a result of the operation of this
Section shall be cumulated and the interest and Charges payable to such Lender
in respect of other Loans or periods shall be increased (but not above the
Maximum Rate therefor) until such cumulated amount, together with interest
thereon to the date of repayment, shall have been received by such Lender.
Section X.14. Conversion of Currencies. (a) If, for the purpose of
obtaining judgment in any court, it is necessary to convert a sum owing
hereunder in one currency into another currency, each party hereto agrees, to
the fullest extent that it may effectively do so, that the rate of exchange used
shall be that at which in accordance with normal banking procedures in the
relevant jurisdiction the first currency could be purchased with such other
currency on the Business Day immediately preceding the day on which such
judgment is given.
(b) The obligations of the Borrower and the Subsidiary Borrower in
respect of any sum due to any party hereto or any holder of the obligations
owing hereunder (the "Applicable Creditor") shall, notwithstanding any judgment
in a currency (the "Judgment Currency") other than the currency in which such
sum is stated to be due hereunder (the "Agreement Currency"), be discharged only
to the extent that, on the Business Day following receipt by the Applicable
Creditor of any sum adjudged to be so due in the Judgment Currency, the
Applicable Creditor may in accordance with normal banking procedures in the
relevant jurisdiction purchase the Agreement Currency with the Judgment
Currency; if the amount of the Agreement Currency so purchased is less than the
sum originally due to the Applicable Creditor in the Agreement Currency, the
Borrower or the Subsidiary Borrower, as applicable, agrees, as a separate
obligation and notwithstanding any such judgment, to indemnify the Applicable
Creditor against such loss. The obligations of the Borrower and the Subsidiary
Borrower contained in this Section 10.14 shall survive the termination of this
Agreement and the payment of all other amounts owing hereunder.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of the day and year
first above written.
LYDALL, INC., a Delaware corporation
By __________________________________
Name:
Title:
LYDALL DEUTSCHLAND HOLDING GMBH
a German limited liability company
By __________________________________
Name:
Title:
THE CHASE MANHATTAN BANK, individually
and as Administrative Agent,
By _________________________________
Name:
Title:
FLEET NATIONAL BANK, individually and as
Documentation Agent
By _________________________________
Name:
Title:
[SIGNATURE PAGE TO CREDIT AGREEMENT]
FIRST UNION NATIONAL BANK
By _________________________________
Name:
Title:
WACHOVIA BANK, N.A.
By _________________________________
Name:
Title:
THE BANK OF NEW YORK
By _________________________________
Name:
Title:
[SIGNATURE PAGE TO CREDIT AGREEMENT]
