EXHIBIT 10.22
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FORM OF
CREDIT AGREEMENT
for the
364 DAY REVOLVING CREDIT FACILITY
dated as of
July __, 2002
among
MEDCO HEALTH SOLUTIONS, INC.,
THE LENDERS PARTY HERETO
and
JPMORGAN CHASE BANK,
as Administrative Agent
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X.X. XXXXXX SECURITIES INC.,
XXXXXXX SACHS CREDIT PARTNERS L.P.
and XXXXXXX XXXXX XXXXXX INC.
as Joint Lead Arrangers and Joint Bookrunners
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XXXXXXX SACHS CREDIT PARTNERS L.P.
and CITIBANK, N.A.
as Co-Syndication Agents
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CREDIT SUISSE FIRST BOSTON, Cayman Islands Branch
and DEUTSCHE BANK SECURITIES INC.
as Co-Documentation Agents
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TABLE OF CONTENTS
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ARTICLE I
Definitions
SECTION 1.01. Defined Terms................................................1
SECTION 1.02. Classification of Loans and Borrowings......................16
SECTION 1.03. Terms Generally.............................................16
SECTION 1.04. Accounting Terms; GAAP......................................16
ARTICLE II
The Credits
SECTION 2.01. Commitments.................................................17
SECTION 2.02. Loans and Borrowings........................................17
SECTION 2.03. Requests for Borrowings.....................................17
SECTION 2.04. Funding of Borrowings.......................................18
SECTION 2.05. Interest Elections..........................................18
SECTION 2.06. Termination and Reduction of Commitments....................20
SECTION 2.07. Repayment of Loans; Evidence of Debt........................21
SECTION 2.08. Mandatory Prepayment of Loans...............................21
SECTION 2.09. Fees........................................................22
SECTION 2.10. Interest....................................................22
SECTION 2.11. Alternate Rate of Interest..................................23
SECTION 2.12. Increased Costs.............................................24
SECTION 2.13. Break Funding Payments......................................25
SECTION 2.14. Taxes.......................................................25
SECTION 2.15. Payments Generally; Pro Rata Treatment; Sharing of
Set-offs.................................................27
SECTION 2.16. Mitigation Obligations; Replacement of Lenders..............28
ARTICLE III
Representations and Warranties
SECTION 3.01. Organization; Powers........................................29
SECTION 3.02. Authorization; Enforceability...............................29
SECTION 3.03. Governmental Approvals; No Conflicts........................29
SECTION 3.04. Financial Condition; No Material Adverse Change.............30
SECTION 3.05. Properties; Insurance.......................................31
SECTION 3.06. Litigation and Environmental Matters........................31
SECTION 3.07. Compliance with Laws and Agreements.........................31
SECTION 3.08. Investment and Holding Company Status.......................32
SECTION 3.09. Taxes.......................................................32
SECTION 3.10. ERISA.......................................................32
SECTION 3.11. Employee Matters............................................32
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SECTION 3.12. IPO and Notes Offering......................................32
SECTION 3.13. Margin Regulations..........................................33
SECTION 3.14. Certain Fees................................................33
SECTION 3.15. Solvency....................................................33
SECTION 3.16. No Burdensome Restrictions..................................33
SECTION 3.17. Disclosure..................................................33
ARTICLE IV
Conditions
SECTION 4.01. Initial Funding Date........................................34
SECTION 4.02. Each Credit Event...........................................35
ARTICLE V
Affirmative Covenants
SECTION 5.01. Financial Statements; Ratings Change and Other
Information..............................................36
SECTION 5.02. Notices of Material Events..................................37
SECTION 5.03. Existence; Conduct of Business..............................38
SECTION 5.04. Payment of Obligations......................................38
SECTION 5.05. Maintenance of Properties; Insurance........................38
SECTION 5.06. Books and Records; Inspection Rights........................38
SECTION 5.07. Compliance with Laws and Agreements.........................39
SECTION 5.08. Use of Proceeds.............................................39
SECTION 5.09. Other Agreements............................................39
ARTICLE VI
Negative Covenants and Financial Covenants
SECTION 6.01. Indebtedness................................................39
SECTION 6.02. Liens.......................................................40
SECTION 6.03. Fundamental Changes.........................................42
SECTION 6.04. Investments, Loans, Advances, Guarantees and
Acquisitions.............................................42
SECTION 6.05. Swap Agreements.............................................44
SECTION 6.06. Restricted Payments.........................................44
SECTION 6.07. Transactions with Affiliates................................44
SECTION 6.08. Restrictive Agreements......................................45
SECTION 6.09. Amendments to or Prepayments or Redemptions of
Indebtedness.............................................45
SECTION 6.10. Financial Covenants.........................................45
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ARTICLE VII
Events of Default
ARTICLE VIII
The Administrative Agent
ARTICLE IX
Miscellaneous
SECTION 9.01. Notices.....................................................52
SECTION 9.02. Waivers; Amendments.........................................52
SECTION 9.03. Expenses; Indemnity; Damage Waiver..........................53
SECTION 9.04. Successors and Assigns......................................55
SECTION 9.05. Survival....................................................58
SECTION 9.06. Counterparts; Integration; Effectiveness....................58
SECTION 9.07. Severability................................................58
SECTION 9.08. Right of Setoff.............................................58
SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of
Process..................................................58
SECTION 9.10. WAIVER OF JURY TRIAL........................................59
SECTION 9.11. Headings....................................................59
SECTION 9.12. Confidentiality.............................................59
SECTION 9.13. Interest Rate Limitation....................................60
SCHEDULES:
Schedule 2.01 - Commitments
Schedule 3.01 - Subsidiaries
Schedule 3.12 - Summary of IPO and Notes Offering
Schedule 6.01 - Existing Indebtedness
Schedule 6.02 - Existing Liens
Schedule 6.08 - Existing Restrictions
EXHIBITS:
Exhibit A -- Form of Assignment and Assumption
Exhibit B -- Form of Certificate of Non-Bank Status
Exhibit C -- Form of Borrowing Request
Exhibit D -- Form of Interest Election Request
Exhibit E -- Form of Promissory Note for Revolving Loans
Exhibit F -- Form of Opinion of Borrower's Counsel
Exhibit G -- Form of Accountant's Certificate
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CREDIT AGREEMENT, dated as of July __, 2002, among MEDCO
HEALTH SOLUTIONS, INC., as the Borrower, the LENDERS from time to time party
hereto, and JPMORGAN CHASE BANK, as Administrative Agent.
The parties hereto agree as follows:
ARTICLE I
DEFINITIONS
SECTION 1.01. 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 constituting such Borrowing, are bearing
interest at a rate determined by reference to the Alternate Base Rate.
"Accounts Receivable Financing Program" means any program
under which any of the Borrower or any of its Subsidiaries securitizes accounts
receivables or any accounts receivable financing facility of the Borrower or any
of its Subsidiaries.
"Acquired Business" means (a) any Person substantially all of
the Equity Interests of which are acquired after the date thereof by the
Borrower and/or a Subsidiary or (b) any assets constituting a separately
identifiable business or operating unit or division acquired on or after the
date hereof by the Borrower or a Subsidiary.
"Adjusted LIBO Rate" means, with respect to any Eurodollar
Borrowing for any Interest Period, an interest rate per annum (rounded upwards,
if necessary, to the next 1/100 of 1%) equal to (a) the LIBO Rate for such
Interest Period multiplied by (b) the Statutory Reserve Rate.
"Administrative Agent" means JPMorgan Chase 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.
"Affected Lender" has the meaning ascribed to such term in
Section 2.11.
"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" means this Credit Agreement, as the same may at
any time be amended, supplemented or otherwise modified in accordance with the
terms hereof and in effect.
"Alternate Base Rate" means, for any day, a rate per annum
equal to the greater of (a) the Prime Rate in effect on such day and (b) the
Federal Funds Effective Rate in effect on such day plus 1/2 of 1%. Any change in
the Alternate Base Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective from and including the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively.
"Applicable Commitment Fee Rate" means, with respect to the
Revolving Credit Commitments, for any period, the applicable percentage per
annum equal to the percentage set forth below determined by reference to the
category containing the higher of (a) the rating applicable to the Index Debt
from S&P or (b) the rating applicable to the Index Debt from Xxxxx'x, in each
case as in effect from time to time during such period:
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Index Debt Ratings Applicable
(S&P or Xxxxx'x) Commitment Fee
Rate
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Category 1
BBB+ or better, or Baa1 or better .125%
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Category 2
BBB or Baa2 .150%
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Category 3
BBB- or Baa3 .175%
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Category 4
BB+ or Ba1 .250%
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Category 5 .300%
Worse than or equal to BB and Ba2
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provided that (i) if, at any time, no rating is available from S&P or Xxxxx'x,
the Applicable Commitment Fee Rate shall be .300%, (ii) at any time there is a
ratings differential of two or more categories between S&P and Xxxxx'x, the
Applicable Commitment Fee Rate shall be based upon the category that is one
category above the category applicable to the lower rating, and (iii) if the
ratings established or deemed to have been established by S&P and Xxxxx'x for
the Index Debt shall be changed (other than as a result of a change in the
rating system of S&P's or Xxxxx'x), such change shall be effective as of the
date on which it is first announced by the applicable rating agency,
irrespective of when notice of such change shall have been furnished by the
Borrower to the Agent and the Lenders pursuant to Section 5.01 or otherwise.
Each change in the Applicable Commitment Fee Rate shall apply during the period
commencing on the effective date of such change and ending on the date
immediately preceding the effective date of the next such change. If the rating
system of S&P or Xxxxx'x shall change, or if either such rating agency
(including any successor to its rating agency business) shall cease to be in the
business of rating corporate debt obligations, the Borrower and the Lenders
shall negotiate in good faith to amend this definition to reflect such changed
rating system or the unavailability of ratings from such rating agency
(including any successor to its rating agency business) and, pending the
effectiveness of any such amendment, the Applicable Commitment Fee Rate shall be
determined using the S&P or Xxxxx'x rating, as the case may be, most recently in
effect prior to such change or cessation.
"Applicable Interest Rate Margin" means, with respect to any
ABR Loan or Eurodollar Loan, for any Interest Period, the applicable percentage
per annum equal to the percentage set forth below determined by reference to the
category containing the higher of (a) the rating applicable to the Index Debt
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from Xxxxx'x, in each case used for such ABR Loan or the Eurodollar Loan, as in
effect on the first day of such Interest Period:
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ABR Loan - Eurodollar Loan -
Index Debt Ratings ABR Interest
(S&P or Xxxxx'x) Spread Rate Margin
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Category 1
BBB+ or better, or Baa1 or better 0 .75%
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Category 2
BBB or Baa2 0 1.00%
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Category 3
BBB- or Baa3 .250% 1.25%
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Category 4
BB+ or Ba1 .500% 1.50%
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Category 5
Worse than or equal to BB and Ba2 1.25% 2.25%
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provided that if, at any time, no rating is available from S&P or Xxxxx'x, the
Applicable Interest Rate Margin for any ABR Loan or Eurodollar Loan shall be
1.25% and 2.25%, respectively; and provided further that at any time there is a
ratings differential of two or more categories between S&P and Xxxxx'x, the
Applicable Interest Rate Margin shall be based upon the category that is one
category above the category applicable to the lower rating. If the rating system
of S&P or Xxxxx'x shall change, or if either such rating agency (including any
successor to its rating agency business) shall cease to be in the business of
rating corporate debt obligations, the Borrower and the Lenders shall negotiate
in good faith to amend this definition to reflect such changed rating system or
the unavailability of ratings from such rating agency (including any successor
to its rating agency business) and, pending the effectiveness of any such
amendment, the Applicable Interest Margin Rate shall be determined using the S&P
or Xxxxx'x rating, as the case may be, most recently in effect prior to such
change or cessation.
"Applicable Percentage" means, with respect to any Lender's
Revolving Credit Commitment, the percentage of the Lenders' total Revolving
Credit Commitments, as the case may be, represented by such Lender's commitment.
If the Revolving Credit Commitment has terminated or expired, the Applicable
Percentages shall be determined based upon the Revolving Credit Commitments most
recently in effect, giving effect to any permitted assignments.
"Approved Fund" has the meaning assigned to such term in
Section 9.04.
"Asset Sale" means a sale, lease or sub-lease (as lessor or
sublessor), Sale and Leaseback, assignment, conveyance, transfer or other
disposition to, or any exchange of property with, any Person (other than the
Borrower or a Significant Subsidiary), in one transaction or a series of
transactions, of all or any part of the Borrower's or any of its Subsidiaries'
businesses, assets or properties of any kind, whether real, personal, or mixed
and whether tangible or intangible, whether now owned or hereafter acquired,
other than (i) inventory (or other assets)
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sold, transferred or leased in the ordinary course of business, (ii) any
Accounts Receivable Financing Program in accordance with Section 6.01 and (iii)
sales of other assets for aggregate consideration of less than $10,000,000 (ten
million dollars) with respect to any transaction or series of related
transactions and less than $25,000,000 (twenty-five million dollars) in the
aggregate during any fiscal year for the Borrower. For purposes of this
definition, receipt by Borrower of insurance or condemnation proceeds in excess
of $5,000,000 (five million dollars) in respect of any destroyed or condemned
asset shall be deemed to be a sale of such asset for proceeds.
"Assignment and Assumption" means (a) an assignment and
assumption entered into by a Lender and an assignee (with the consent of any
party whose consent is required by Section 9.04), and accepted by the
Administrative Agent, in the form of Exhibit A or any other form approved by the
Administrative Agent or (b) any assignment in accordance with Section 2.16.
"Availability Period" means, with respect to the Loans, from
and including the date hereof to, but excluding, the earlier of the Maturity
Date and the date of termination of the Revolving Credit Commitments pursuant to
the terms hereof.
"Board" means the Board of Governors of the Federal Reserve
System of the United States of America.
"Borrower" means Medco Health Solutions, Inc., a Delaware
corporation.
"Borrowing" means an advance of Loans of the same Type, made,
converted or continued on the same date and, in the case of Eurodollar Loans, as
to which a single Interest Period is in effect.
"Borrowing Request" means a request by the Borrower for a
Borrowing in accordance with Section 2.03.
"Bridge Facility" has the meaning assigned to such term in
Section 2.08(a).
"Business Day" means any day that is not a Saturday, Sunday or
other day on which commercial banks in New York City are authorized or required
by law to remain closed; provided that, when used in connection with a
Eurodollar Loan, the term "Business Day" shall also exclude any day on which
banks are not open for dealings in dollar deposits in the London interbank
market.
"Capital 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.
"Certificate of Non-Bank Status" means a certificate
substantially in the form of Exhibit B.
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"Change in Control" means (a) the acquisition of ownership,
directly or indirectly, beneficially or of record, by any Person or group (each
within the meaning of the Securities Exchange Act of 1934 and the rules of the
SEC thereunder as in effect on the date hereof) not an Affiliate of the Borrower
or Merck (other than any such acquisitions occurring before the date hereof, of
Equity Interests representing more than 20% (twenty percent) of the aggregate
ordinary voting power represented by the issued and outstanding Equity Interests
of the Borrower; or (b) commencing after the date hereof, during any period of
up to twelve (12) consecutive months, the occupation of a majority of the seats
(other than vacant seats) on the board of directors of the Borrower by Persons
who were neither nominated or appointed by a vote of a majority or more of the
members of the Borrower's board of directors who were either in office at the
beginning of this twelve (12) month period or were so nominated or appointed.
"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,
for purposes of Section 2.12(b), by any lending office of such Lender or by such
Lender'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.
"CLO" has the meaning assigned to such term in Section 9.04.
"Code" means the Internal Revenue Code of 1986, as amended
from time to time.
"Conduit Entity" means any entity treated as a "conduit" under
U.S. Treasury Regulation Section 1.881-3 or applicable successor provision.
"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.
"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.
"Disclosed Matters" means, with respect to a specific
representation and warranty contained in Article III, information set forth on
the disclosure schedule, if any, corresponding to the relevant Section of
Article III specified therein and attached hereto by the Borrower.
"dollars" or "$" refers to lawful money of the United States
of America.
"Environmental Laws" means all laws, rules, regulations,
codes, ordinances, orders, decrees, judgments, injunctions 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.
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"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.
"Equity Interests" means, with respect to any Person, shares
of capital stock, partnership interests, membership interests in a limited
liability company, beneficial interests in a trust or other equity ownership
interests issued by such Person, and any warrants, options or other rights
entitling the holder thereof to purchase or acquire any such equity interest.
"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
Plan (other than an event for which the 30-day notice period is waived); (b) the
existence with respect to any Plan of an "accumulated funding deficiency" (as
defined in Section 412 of the Code or Section 302 of ERISA), whether or not
waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d)
of ERISA of an application for a waiver of the minimum funding standard with
respect to any Plan; (d) the incurrence by the Borrower or any of its ERISA
Affiliates of any liability under Title IV of ERISA with respect to the
termination of any Plan; (e) the receipt by the Borrower or any ERISA Affiliate
from the PBGC 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; (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.
"Eurodollar", when used in reference to any Loan or Borrowing,
refers to whether such Loan, or the Loans constituting 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.
"Excluded Taxes" means, with respect to the Administrative
Agent, any Lender or any other recipient of any payment to be made by or on
account of any obligation of the Borrower hereunder, (a) income or franchise
taxes imposed on (or measured by) its net income or profits by reason of any
connection between, as applicable, the Administrative Agent or such
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Lender or any other party entitled to receive payment hereunder and the relevant
taxing jurisdiction, including, without limitation, a connection arising from
such other Person being or having been a citizen, domiciliary, or resident of
such jurisdiction, being organized in such jurisdiction, or having or having had
a permanent establishment, branch or other fixed place of business therein, but
excluding a connection arising solely from such Person having executed,
delivered, performed its obligations or received any payment under this
Agreement, (b) any Taxes imposed by reason of the Administrative Agent, the
Lender or such other party being a Conduit Entity, (c) any branch profits taxes
imposed by the United States of America or any similar tax imposed by any other
jurisdiction in which the Borrower is located and (d) in the case of a Foreign
Lender (other than an assignee pursuant to a request by the Borrower under
Section 2.16(b)), any Tax that is imposed on amounts payable to such Foreign
Lender at the time such Foreign Lender becomes a party to this Agreement (or
designates a new lending office) or is attributable to such Foreign Lender's
failure to comply with Section 2.14(e), except to the extent that such Foreign
Lender (or its assignor, if any) was entitled, at the time of designation of a
new lending office (or assignment), to receive additional amounts from the
Borrower with respect to such Tax pursuant to Section 2.14(a).
"Executive Officer" means the chief executive officer, the
chief financial officer, the general counsel or any other "officer" (as defined
in Rule 16a-1 of the Securities Exchange Act of 1934, as amended) of the
Borrower.
"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 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, the
principal accounting officer, the treasurer, the controller, the general counsel
or any other "officer" (as defined in Rule 16a-1 of the Securities Exchange Act
of 1934, as amended) of the Borrower.
"Five Year Facility" has the meaning assigned to such term in
Section 2.08(b).
"Five Year Revolving Credit Commitment" means the Revolving
Credit Commitment under, and as defined in, the Five Year Facility.
"Five Year Revolving Credit Exposure" means the Revolving
Credit Exposure under, and as defined in, the Five Year Facility.
"Foreign Lender" means any Lender that is not a "United States
person" (as such term is defined in Section 7701(a)(3) of the Code.
"GAAP" means generally accepted accounting principles in the
United States of America.
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"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
government.
"Guarantee" of or by any Person (the "guarantor") means any
obligation, contingent or otherwise, of the guarantor 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 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
primarily 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 in respect of any letter of credit or
letter of guaranty issued to support such Indebtedness or other obligation;
provided, that the term Guarantee shall not include endorsements for collection
or deposit in the ordinary course of business.
"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.
"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 being paid (but excluding obligations that are
trade payables), (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 and accrued expenses
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, (i) all obligations, contingent or
otherwise, of such Person as an account party in respect of the face amount of
letters of credit and letters of guaranty, (j) all obligations, contingent or
otherwise, of such Person in respect of the face amount of bankers' acceptances,
(k) Off-Balance Sheet Liabilities and (l) [net obligations (calculated on a xxxx
to market basis as of the most recent quarter end) under any Swap Agreement
permitted by Section 6.05]; provided that Indebtedness shall not include
deferred tax liabilities, employee and retiree benefit obligations or
endorsements for collection or deposit in the ordinary course of business. 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.
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"Indemnified Taxes" means Taxes other than Excluded Taxes or
Other Taxes.
"Indemnitee" has the meaning assigned to such term in Section
9.03(b).
"Index Debt" means senior, unsecured, long-term indebtedness
for borrowed money of the Borrower that is not guaranteed by any other Person or
subject to any other credit enhancement.
"Information Memorandum" means the Confidential Information
Memorandum dated May 2002 relating to the Borrower and the Transactions.
"Initial Funding Date" means the date hereof, provided that
the conditions specified in Section 4.01 are satisfied (or waived in accordance
with Section 9.02).
"Interest Election Request" means a request by the Borrower to
convert or continue a Borrowing in accordance with Section 2.05.
"Interest Payment Date" means (a) with respect to any ABR
Loan, the last day of each March, June (other than June 2002), September and
December and (b) with respect to any Eurodollar Loan, the last day of the
Interest Period applicable to the Borrowing of which such Loan is a part and, in
the case of a Eurodollar Borrowing with an Interest Period of more than three
months' duration, each day prior to the last day of such Interest Period that
occurs at intervals of three months' duration after the first day of such
Interest Period.
"Interest Period" means, with respect to any Eurodollar
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 or
six months thereafter (or nine or twelve months thereafter, unless a Lender has
notified the Administrative Agent that Eurodollar Borrowings for such period is
unavailable from such Lender) as the 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 Eurodollar 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 pertaining to a
Eurodollar Borrowing 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,
thereafter shall be the effective date of the most recent conversion or
continuation of such Borrowing.
"Investment" has the meaning assigned to such term in Section
6.04.
"IPO" means the initial public offering of the common stock of
the Borrower pursuant to the IPO Prospectus.
"IPO Prospectus" means the prospectus relating to the IPO,
dated ___, 2002 (registration statement number 333-86392), as amended.
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"Joint Lead Arrangers" means X.X. Xxxxxx Securities, Xxxxxxx
Xxxxx Credit Partners L.P. and Xxxxxxx Xxxxx Barney Inc.
"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
Assumption, other than any such Person that ceases to be a party hereto pursuant
to an Assignment and Assumption.
"LIBO Rate" means, with respect to any Eurodollar Borrowing
for any Interest Period, the rate appearing on Page 3750 of the Dow Xxxxx Market
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
reasonably determined by the Administrative Agent from time to time for purposes
of providing quotations of interest rates applicable to dollar deposits 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 dollar
deposits 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 Eurodollar Borrowing for such Interest Period shall be the
rate (rounded upwards, if necessary, to the next 1/100 of 1%) at which dollar
deposits of $5,000,000 (five million dollars) and for a maturity comparable to
such Interest Period are offered by the principal London office of 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.
"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" means any loan made by a Lender to the Borrower
pursuant to this Agreement.
"Material Adverse Effect" means a material adverse effect on
(a) the business, assets, operations, prospects or financial condition of the
Borrower and the Subsidiaries, taken as a whole, or (b) the ability of the
Borrower to perform any of its obligations under this Agreement or any
Transaction Documents subject to applicable cure and grace periods.
"Material Indebtedness" means Indebtedness (other than the
Loans), or obligations in respect of one or more Swap Agreements, of any one or
more of the Borrower and its Subsidiaries in an aggregate principal amount
exceeding $25,000,000 (twenty-five million dollars). For purposes of determining
Material Indebtedness, the "principal amount" of the obligations of the Borrower
or any Subsidiary in respect of any Swap 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 Swap Agreement were
terminated at such time.
"Maturity Date" means the earlier of (a) the 364 days
following the date hereof or (b) the optional prepayment in full of the Loans
and cancellation by the Borrower of the Lenders' total Loan Commitments.
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"Merck" means Merck & Co., Inc., a New Jersey corporation.
"Merck Dividend" means the $1,500,000,000 (1.5 billion
dollars) dividend from the Borrower to Merck, a portion of which is to be paid
from the proceeds of the Loans and a portion of which is to be paid from the
proceeds of the Notes Offering or the Bridge Facility.
"Moody's" means Xxxxx'x Investors Service, Inc or any
successor to the rating agency business thereof.
"Multiemployer Plan" means a multiemployer plan as defined in
Section 4001(a)(3) of ERISA.
"Notes Offering" means the public offering by the Borrower of
$1,000,000,000 (one billion dollars) aggregate principal amount of senior notes,
as described in the prospectus relating to such offering, dated ___, 2002
(registration statement number 333-86404), as amended.
"Off-Balance Sheet Liability" of a Person shall mean (i) any
liability under any Sale and Leaseback or any lease leaseback transaction which
is not a Capital Lease Obligation, and (ii) any liability under any so called
"synthetic lease" transaction entered into by such Person.
"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 set forth in Section 9.04.
"PBGC" means the Pension Benefit Guaranty Corporation referred
to and defined in ERISA and any successor entity performing similar functions.
"Permitted Encumbrances" means:
(a) Liens imposed by law for taxes that are not yet delinquent
or which are being contested in compliance with clauses (a) and (b) of
Section 5.04;
(b) carriers', warehousemen's, mechanics', materialmen's,
repairmen's and other like Liens arising by operation of law, arising
in the ordinary course of business and securing obligations that are
not overdue by more than 60 days or are being contested in compliance
with clauses (a) and (b) of Section 5.04;
(c) Liens arising, and deposits made, in the ordinary course
of business in compliance with workers' compensation, unemployment
insurance and other social security laws or regulations;
(d) Liens incurred or deposits made to secure the performance
of bids, tenders, trade contracts, leases, statutory obligations,
surety, indemnity, release and appeal bonds, performance bonds and
other obligations of a like nature, in each case in the ordinary course
of business;
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(e) judgment Liens in respect of judgments that do not
constitute an Event of Default under clause (l) of Article VII;
(f) Liens relating to or arising in connection with Plans or
Multiemployer Plans in an aggregate amount not to exceed $25,000,000
(twenty-five million dollars) at any time;
(g) leases or subleases granted to others of property or
assets owned or leased by the Borrower or its Subsidiaries; any
interest or title of a lessor under an operating lease entered into in
the ordinary course of business, or any statutory and common law
landlord Liens;
(h) Liens arising out of consignment or similar arrangements
for sales of goods entered into in the ordinary course of business;
(i) easements, ground leases, zoning restrictions, building
codes, rights-of-way, minor defects and irregularity in title 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;
(j) licenses of patents, trademarks or other intellectual
property rights granted by the Borrower or its Subsidiaries in the
ordinary course of business; and
(k) the replacement, extension or renewal of any Lien
permitted hereunder; provided that such replacement, extension or
renewal Lien shall not cover any property other than the property
subject thereto prior to such replacement, extension or renewal;
provided that the term "Permitted Encumbrances" shall not include any Lien
securing Indebtedness for borrowed money.
"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 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, money
market deposit accounts issued or offered by, and demand deposits made
in the ordinary course of business in any domestic office of any
commercial 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 (five hundred
million dollars);
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(d) fully collateralized repurchase agreements with a term of
not more than 60 days for securities described in clause (a) above and
entered into with a financial institution satisfying the criteria
described in clause (c) above;
(e) securities issued or fully guaranteed by any State,
Commonwealth or sovereignty of the United States of America and rated
at least "A" by S&P or "P" by Moody's;
(f) money market funds that (i) comply with the criteria set
forth in SEC Rule 2a-7 under the Investment Company Act of 1940, (ii)
are rated "AAA" by S&P and "Aaa" by Moody's and (iii) have portfolio
assets of at least $5,000,000,000 (five billion dollars); and
(g) other investment instruments with the consent of the
Administrative Agent.
"Person" means any natural person, corporation, limited
liability company, trust, joint venture, association, company, partnership,
Governmental Authority or other entity.
"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.
"Prime Rate" means the rate of interest per annum publicly
announced from time to time by JPMorgan Chase Bank as its prime rate in effect
at its principal office in New York City; each change in the Prime Rate shall be
effective from and including the date such change is publicly announced as being
effective.
"Refinancing Indebtedness" has the meaning assigned to such
term in Section 6.01(l).
"Register" has the meaning set forth in Section 9.04.
"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.
"Required Lenders" means, at any time, Lenders having more
than 51% (fifty-one percent) of the Lenders' Total Commitments at such time.
"Restricted Payment" means any dividend or other distribution
(whether in cash, securities or other property) with respect to any Equity
Interests in the Borrower or any Subsidiary, or any payment (whether in cash,
securities or other property), including any sinking fund or similar deposit, on
account of the purchase, redemption, retirement, acquisition, cancellation or
termination of any such Equity Interests in the Borrower or any option, warrant
or other right to acquire any such Equity Interests in the Borrower.
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"Revolving Credit Commitment" means, with respect to each
Lender, the commitment of such Lender to make Loans, 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 2.06 and (b) reduced or increased from time to time pursuant
to assignments by or to such Lender pursuant to Sections 2.16 or 9.04. The
initial amount of the Lender's Revolving Credit Commitment is set forth opposite
such Lender's name on Schedule 2.01 under the heading "Revolving Credit
Commitment", or in the Assignment and Assumption pursuant to which such Lender
shall have assumed its Revolving Credit Commitment, as applicable. The initial
aggregate amount of the Lenders' Revolving Credit Commitment is $250,000,000
(two hundred fifty million dollars).
"Revolving Credit Exposure" means, with respect to any Lender
at any time, the sum of the outstanding principal amount of such Lender's Loans
at such time.
"S&P" means Standard & Poor's or any successor rating agency
business thereof.
"SEC" means the Securities and Exchange Commission or any
successor thereto.
"Sale and Leaseback" means any lease of any property (whether
real, personal or mixed), whether now owned or hereafter acquired, to which the
Borrower or any of its Subsidiaries, directly or indirectly, becomes or remains
liable as lessee or as a guarantor or other surety and which the Borrower has
sold or transferred or is to sell or to transfer to any other Person (other than
any of its Subsidiaries).
"Significant Subsidiary" means a Subsidiary that satisfies the
definition of "Significant Subsidiary", as such term is defined in Regulation
S-X of the SEC, as amended from time to time; provided, however, that for
purposes of the determining whether such Subsidiary is a "Significant
Subsidiary" under Regulation S-X, the relevant threshold percentage to be used
in determining a "Significant Subsidiary" shall be 5% (five percent) (and not as
otherwise specified in Regulation S-X).
"Solvent" means, with respect to any Person, that as of the
date of determination (a) the sum of such Person's debt (including contingent
liabilities) does not exceed all of its property, at a present fair valuation on
a going concern basis; (b) the fair saleable value of the property on a going
concern basis of such Person is not less than the amount that will be required
to pay the probable liabilities on such Person's then existing debts as they
become absolute and matured; (c) such Person's capital is not unreasonably small
in relation to its business or any contemplated or undertaken transaction; and
(d) such Person does not intend to incur, or believe (nor should it reasonably
believe) that it will incur, debts beyond its ability to pay such debts as they
become due. For purposes of this definition, the amount of any contingent
liability at any time shall be computed as the amount that, in light of all of
the facts and circumstances existing at such time, represents the amount that
can reasonably be expected to become an actual or matured liability
(irrespective of whether such contingent liabilities meet the criteria for
accrual under Statement of Financial Accounting Standard No.5).
"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
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supplemental reserves) expressed as a decimal established by the Board to which
the Administrative Agent is subject, with respect to the Adjusted LIBO Rate, for
eurocurrency funding (currently referred to as "Eurocurrency Liabilities" in
Regulation D of the Board). Such reserve percentages shall include those imposed
pursuant to such Regulation D. Eurodollar 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 such 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.
"Subordinated Indebtedness" means Indebtedness subordinated on
terms reasonably satisfactory to the Lenders.
"subsidiary" means, with respect to any Person (the "parent")
at any date, any corporation, limited liability company, partnership,
association or other entity the accounts of which would be consolidated with
those of the parent in the parent's consolidated financial statements if such
financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership,
association or other entity of which securities or other ownership interests
representing more than 50% (fifty percent) of the ordinary voting power or, in
the case of a partnership, more than 50% (fifty percent) of the general
partnership interests are, as of such date, owned, controlled or held.
"Subsidiary" means any subsidiary of the Borrower.
"Swap Agreement" means any agreement with respect to any swap,
forward, future or derivative transaction or option or similar agreement
involving, or settled by reference to, one or more rates, currencies,
commodities, equity or debt instruments or securities, or economic, financial or
pricing indices or measures of economic, financial or pricing risk or value or
any similar transaction or any combination of these transactions; provided that
no phantom stock or similar plan providing for payments only on account of
services provided by current or former directors, officers, employees or
consultants of the Borrower or its Subsidiaries shall be a Swap Agreement.
"Taxes" means any and all present or future taxes, levies,
imposts, deductions, charges or withholdings imposed by any Governmental
Authority.
"Third-Party Claim" has the meaning assigned to such term in
Section 9.03(b).
"Total Commitment" means, with respect to each Lender, the sum
of such Lender's Revolving Credit Commitment.
"Transactions" means the execution, delivery and performance
by the Borrower of this Agreement, the borrowing of Loans and the use of the
proceeds thereof.
"Transaction Documents" means the commitment letter and the
fee letters and any amendments thereof and hereof among X.X. Xxxxxx Securities
Inc., JPMorgan Chase Bank, Xxxxxxx Xxxxx Credit Partners L.P., Xxxxxxx Xxxxx
Barney Inc., Citibank, N.A. and the Borrower, as the case may be, relating to
the Loan facility described hereunder.
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"Type", when used in reference to any Loan or Borrowing,
refers to whether the rate of interest on such Loan, or on the Loans
constituting such Borrowing, is determined by reference to the Adjusted LIBO
Rate or the Alternate Base Rate.
"UCC" means the Uniform Commercial Code (and any similar law)
in effect in any applicable jurisdiction.
"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 1.02. Classification of Loans and Borrowings. For
purposes of this Agreement, Loans may be classified and referred to by Type
(e.g., a "Eurodollar Loan"). Borrowings also may be classified and referred to
by Type (e.g., a "Eurodollar Borrowing").
SECTION 1.03. 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 1.04. 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.
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ARTICLE II
THE CREDITS
SECTION 2.01. Commitments. Subject to the terms and conditions
set forth herein, each Lender, severally and not jointly with the other Lenders,
agrees to make revolving Loans to the Borrower from time to time during the
Availability Period for Loans in an aggregate principal amount that will not
result in 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 Loans.
SECTION 2.02. Loans and Borrowings. (a) Each Loan shall be
made as part of a Borrowing consisting of Loans made by the Lenders ratably in
accordance with their respective Revolving Credit Commitments.
(b) Subject to Section 2.11, each Borrowing shall be comprised
of ABR Loans or Eurodollar Loans as the Borrower may request in accordance
herewith. Each Lender at its option may make any Eurodollar Loan by causing any
domestic or foreign branch or Affiliate of such Lender to make such Loan in
accordance with the terms hereof; provided that any exercise of such option
shall not affect the obligation of the Borrower to repay such Loan in accordance
with the terms of this Agreement.
(c) At the commencement of each Interest Period for any
Eurodollar Borrowing, such Borrowing shall be in an aggregate amount that is
equal to $5,000,000 (five million dollars) or an integral multiple of $1,000,000
(one million dollars) in excess thereof. At the time that each ABR Borrowing is
made, such Borrowing shall be in an aggregate amount that is equal to $1,000,000
(one million dollars) or is an integral multiple of $1,000,000 (one million
dollars) in excess thereof; provided that an ABR Borrowing may be in an
aggregate amount that is equal to the entire unused balance of the total
Revolving Credit Commitments. Borrowings of more than one Type may be
outstanding at the same time; provided that there shall not at any time be more
than a total of fifteen Eurodollar Borrowings outstanding.
(d) Notwithstanding any other provision of this Agreement, the
Borrower shall not 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 2.03. Requests for Borrowings. To request a Borrowing,
the Borrower shall notify the Administrative Agent of such request by telephone
(a) in the case of a Eurodollar Borrowing, not later than 12:00 noon, New York
City time, three Business Days before the date of the proposed Borrowing or (b)
in the case of an ABR Borrowing, not later than 12:00 noon, New York City time,
one Business Day before the date of the proposed Borrowing. Each such telephonic
Borrowing Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the Administrative Agent of a written Borrowing Request
substantially in the form attached as Exhibit C and signed by the Borrower. 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;
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(iii) whether such Borrowing is to be an ABR Borrowing or a
Eurodollar Borrowing;
(iv) in the case of a Eurodollar Borrowing, the initial
Interest Period to be applicable thereto, which shall be a
period contemplated by the definition of the term "Interest
Period"; and
(v) the location and number of the Borrower's account to which
funds are to be disbursed, which shall comply with the
requirements of Section 2.04.
If no election as to the Type of Borrowing is specified, then the requested
Borrowing shall be an ABR Borrowing. If no Interest Period is specified with
respect to any requested Eurodollar Borrowing, then the Borrower 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, 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.
SECTION 2.04. 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 12:00 noon, New York City time, to
the account of the Administrative Agent most recently designated by it for such
purpose by notice to the Lenders. The Administrative Agent will make such Loans
available to the Borrower by promptly crediting the aggregate amounts so
received from the Lenders, in immediately available funds, to an account of the
Borrower maintained with the Administrative Agent in New York City and
designated by the Borrower in the applicable Borrowing Request.
(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
2.04 and may, in reliance upon such assumption, make available to the Borrower 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, the
Administrative Agent shall be entitled to recover such corresponding amount on
demand from such Lender for each day from and including the date such amount is
made available to the Borrower to but excluding the date of payment to the
Administrative Agent at the greater of (x) the Federal Funds Effective Rate and
(y) a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation. If such Lender does not pay such
corresponding amount with interest thereon upon Administrative Agent's demand
therefor and Administrative Agent previously made such amount available to
Borrower, Administrative Agent shall promptly notify Borrower and, if so
notified, Borrower shall immediately pay such corresponding amount to
Administrative Agent at the interest rate applicable to ABR Loans for each day
from and including the date such amount is made available to the Borrower to but
excluding the date of payment to the Administrative Agent. If such Lender pays
such amount to the Administrative Agent, then such amount shall constitute such
Lender's Loan included in such Borrowing.
SECTION 2.05. Interest Elections. (a) Each Borrowing initially
shall be of the Type specified in the applicable Borrowing Request and, in the
case of a Eurodollar Borrowing, shall have an initial Interest Period as
specified in such Borrowing Request. Thereafter, the
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Borrower may elect to convert such Borrowing to a different Type or to continue
such Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest
Periods therefor, all as provided in this Section 2.05. The Borrower 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 constituting such Borrowing, and the Loans constituting each
such portion shall be considered a separate Borrowing.
(b) To make an election pursuant to this Section 2.05, the
Borrower 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 the
Borrower were requesting a 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 substantially in the form attached as Exhibit D and signed by the
Borrower.
(c) Each telephonic and written Interest Election Request
shall specify the following information in compliance with Section 2.02(c):
(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 of this Section 2.05(c) 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) whether the resulting Borrowing is to be an ABR
Borrowing or a Eurodollar Borrowing; and
(iv) if the resulting Borrowing is a Eurodollar 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 Eurodollar Borrowing but does
not specify an Interest Period, then the Borrower 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 fails to deliver a timely Interest
Election Request with respect to a Eurodollar 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. 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, then, so long
as an Event of Default is continuing (i) no outstanding Borrowing may be
converted to or continued as a Eurodollar
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Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be converted
to an ABR Borrowing at the end of the Interest Period applicable thereto.
SECTION 2.06. Termination and Reduction of Commitments. (a)
Termination. Unless previously terminated, the Revolving Credit Commitments
shall terminate on the Maturity Date.
(b) Optional Reduction. The Borrower may at any time
terminate, or from time to time reduce, the Revolving Credit Commitment;
provided that (i) each reduction of the Revolving Credit Commitment shall be in
an amount that is equal to $5,000,000 (five million dollars) or an integral
multiple of $1,000,000 (one million dollars) in excess thereof and (ii) the
Borrower shall not terminate or reduce any Revolving Credit Commitment if, after
giving effect to any concurrent prepayment of the Loans in accordance with
Section 2.08, the sum of the Revolving Credit Exposures would exceed the Total
Commitments.
(c) Mandatory Reduction. If the Borrower establishes any
Accounts Receivable Financing Program(s) during the term of this Agreement:
(i) with respect to the first $200,000,000 (two hundred
million dollars) of the Accounts Receivable Financing Programs
of the Borrower (regardless of the amount of accounts
receivables securitized thereunder), the Revolving Credit
Commitment and the Five Year Revolving Credit Commitment shall
together be reduced by an aggregate amount equal to 50% (fifty
percent) of the size of such Accounts Receivable Financing
Programs, such aggregate amount of such reduction to be
allocated between the Revolving Credit Commitment and the Five
Year Revolving Credit Commitment on a pro rata basis in
proportion to the relative size of the Revolving Credit
Commitment and the Five Year Revolving Credit Commitment; and
(ii) the Revolving Credit Commitment and the Five Year
Revolving Credit Commitment shall also be reduced by an
aggregate amount equal to 100% (one hundred percent) of the
size of such Accounts Receivable Financing Programs in excess
of such $200,000,000 (two hundred million dollars) referred to
in clause (i) above, such aggregate amount of such reduction
to be allocated between the Revolving Credit Commitment and
the Five Year Revolving Credit Commitment on a pro rata basis
in proportion to the relative size of the Revolving Credit
Commitment and the Five Year Revolving Credit Commitment;
provided, however, that to the extent the Revolving Credit Commitment is no
longer outstanding or has been terminated or the reduction described in this
paragraph (c) of Section 2.06 exceeds the outstanding Revolving Credit
Commitment, the Five Year Revolving Credit Commitment under the Five Year
Facility will be reduced accordingly. If after giving effect to the reduction of
the Revolving Credit Commitment or the Five Year Revolving Credit Commitment
described in this paragraph (c) of this Section 2.06, (x) the total Revolving
Credit Exposures would exceed the Total Commitments, or (y) the sum of the Five
Year Revolving Credit Exposures plus the aggregate principal amount of
outstanding Term Loans would exceed the Total Commitments under (and as defined
in the Five Year Facility), the Borrower shall immediately repay the Loans and
the Revolving Loans (as defined in the Five Year Facility), as appropriate, in
the amount equal to such excess.
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(d) The Borrower shall notify the Administrative Agent of any
election to terminate or reduce the Revolving Credit Commitment under paragraph
(b) of this Section 2.06 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 2.06 shall be
irrevocable; provided that a notice of termination of the Revolving Credit
Commitment described in paragraph (b) of this Section 2.08 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 Commitment shall be permanent. Each reduction of the
Revolving Credit Commitment shall be made ratably among the Lenders in
accordance with their respective Revolving Credit Commitments.
SECTION 2.07. Repayment of Loans; Evidence of Debt. (a) The
Borrower hereby unconditionally promises to pay to the Administrative Agent for
the account of each Lender the then unpaid principal amount of each Loan on the
Maturity Date.
(b) Each Lender shall maintain in accordance with its usual
practice an account or accounts evidencing the indebtedness of the Borrower to
such Lender resulting from each Loan made by such Lender, including the amounts
of principal and interest payable and paid to such Lender from time to time
hereunder.
(c) The Administrative Agent shall maintain accounts in which
it shall record (i) the amount of each Loan made hereunder, the Type thereof and
the Interest Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from the Borrower to each
Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender's share thereof.
(d) The entries made in the accounts maintained pursuant to
paragraph (b) or (c) of this Section 2.07 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 accounts or
any error therein shall not in any manner affect the obligation of the Borrower
to repay the Loans in accordance with the terms of this Agreement.
(e) Any Lender may request that Loans made by it be evidenced
by a promissory note. In such event, the Borrower 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 the form attached as Exhibit E hereto. Thereafter, the Loans evidenced by
such promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 9.04) 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 2.08. Mandatory Prepayment of Loans. (a) In accordance
with paragraph (b) below, the Borrower shall prepay Loans, without premium or
penalty, but subject to Section 2.13, with (A) 100% (one hundred percent) of the
after-tax net cash proceeds received from Asset Sales, and (B) if the Borrower's
Consolidated Total Debt to Consolidated EBITDA
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(each as defined in Section 6.10) is at or above 1.5, 100% (one hundred
percent) of the net cash proceeds received from issuances of debt obligations
of the Borrower and its Subsidiaries, provided that, in the case of clause (A)
or (B) or both, all such amounts are, to the extent any amounts remain
outstanding under the $1,000,000,000 (one billion dollars) senior unsecured
bridge loan facility provided to the Borrower (the "Bridge Facility"), if
applicable, subject to payments of any amounts required under the mandatory
prepayments obligations under the Bridge Facility.
(b) In accordance with the credit agreement, dated as of the
date hereof, relating to the $1,000,000,000 (one billion dollars) senior
unsecured five year term loan and revolving credit facilities provided to the
Borrower (the "Five Year Facility"), the mandatory prepayments shall be applied
first pro rata against future quarterly installments payable in respect of the
Term Loan (as defined in the Five Year Facility) and then to repay the
Revolving Loans (as defined in the Five Year Facility) or, at the request of
the Borrower, the Loans; provided, however, that the Borrower may elect to
commit to reinvest the proceeds described in clause (A) of the immediately
preceding paragraph in its or any of its Subsidiaries' business within twelve
months of the receipt of such proceeds, in which case such amounts shall be
applied to repay the Revolving Loans or, if the Borrower elects and if prior to
the Maturity Date of the Loans, to repay the Loans (such amounts, the
"Committed Funds"). To the extent the Borrower does not reinvest the Committed
Funds in its business within twelve months of their application to repay the
Revolving Loans or the Loans, as the case may be, if Term Loans are then
outstanding such amounts shall be drawn from the Revolving Loan facility or the
Loan facility, as applicable, and used to prepay any outstanding Term Loans
applied pro rata against future quarterly installments payable in respect of
the Term Loans under the Five Year Facility.
SECTION 2.09. Fees. (a) The Borrower agrees to pay to the
Administrative Agent for the account of each Lender a participation fee, which
shall accrue at the Applicable Commitment Fee Rate on the daily amount of the
sum of (i) the Lender's Revolving Credit Commitment and (ii) minus its
Revolving Credit Exposure during the period from and including the date hereof
to, but excluding, the date on which any such Revolving Credit Commitment
terminates. Accrued participation 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 Commitment terminates, the first payment to be made
September 30, 2002. All participation 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).
(b) 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.
(c) All fees payable hereunder shall be paid on the dates
due, in immediately available funds, to the Administrative Agent for
distribution, in the case of facility fees and participation fees, to the
Lenders. Fees paid shall not be refundable under any circumstances.
SECTION 2.10. Interest. (a) The Loans constituting each ABR
Borrowing shall bear interest at the Alternate Base Rate plus the Applicable
Interest Margin Rate.
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(b) The Loans constituting each Eurodollar Borrowing shall
bear interest in the case of a Eurodollar Loan, at the Adjusted LIBO Rate for
the Interest Period in effect for such Borrowing plus the Applicable Interest
Margin Rate.
(c) Notwithstanding the foregoing, if any principal of or
interest on any Loan or any fee or other amount payable by the Borrower
hereunder is not paid when due, whether at stated maturity, upon acceleration
or otherwise, such overdue amount shall bear interest, after as well as before
judgment, at a rate per annum equal to (i) in the case of overdue principal of
any Loan, 2.0% plus the rate otherwise applicable to such Loan as provided in
the preceding paragraphs of this Section 2.10 or (ii) in the case of any other
amount, 2.0% plus the rate applicable to ABR Loans as provided in paragraph (a)
of this Section 2.10.
(d) Accrued interest on each Loan shall be payable in arrears
on each Interest Payment Date for such Loan and upon termination of the
Revolving Credit Commitments; provided that (i) interest accrued pursuant to
paragraph (c) of this Section 2.10 shall be payable on demand, (ii) in the
event of any repayment or prepayment of any Loan (other than a prepayment of an
ABR 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 and (iii) in the event of any conversion of any
Eurodollar 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.
(e) All interest hereunder shall be computed on the basis of
a year of 360 days, except that interest computed by reference to the Alternate
Base Rate at times when the Alternate Base Rate is based on the Prime Rate
shall be computed on the basis of a year of 365 days (or 366 days in a leap
year), and in each case 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. The Administrative Agent shall, at any time and from time to
time upon request of Borrower, deliver to Borrower a statement showing the
quotations used by Administrative Agent in determining any interest rate
applicable to the Loans pursuant to this Agreement.
SECTION 2.11. Alternate Rate of Interest. If prior to the
commencement of any Interest Period for a Eurodollar Borrowing:
(a) the Administrative Agent determines in good faith (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 notified by the Required
Lenders that 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 (or Lender) of making or maintaining their Loans
(or its Loan) included in such Borrowing for such Interest Period;
then the Administrative Agent shall give notice thereof to the Borrower and the
Lenders by telephone or telecopy as promptly as practicable thereafter and,
until the Administrative Agent
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notifies the Borrower 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
Eurodollar Borrowing for such Interest Period shall be ineffective and (ii) if
any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be
made as an ABR Borrowing; provided that if the circumstances giving rise to
such notice affect only one Type of Borrowings, then the other Type of
Borrowings shall be permitted. The Administrative Agent shall notify the
Borrower as promptly as practicable of receipt of a notice from a Lender of the
Type referred to in clause (b) above of this Section 2.11 or of the Type
referred to in the definition of Interest Period. Any Lender delivering such
notice shall be deemed to be an "Affected Lender" for purposes hereof until
such Lender delivers to the Administrative Agent and the Borrower a withdrawal
of such notice.
SECTION 2.12. Increased Costs. (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
(ii) impose on any Lender or the London interbank market any
other condition affecting this Agreement or Eurodollar Loans made by
such Lender;
and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Eurodollar Loan (or of maintaining its
obligation to make any such Loan) or to increase the cost to such Lender to
reduce the amount of any sum received or receivable by such Lender hereunder
(whether of principal, interest or otherwise), then subject to paragraphs (c)
and (d) of this Section 2.12, the Borrower will pay to such Lender such
additional amount or amounts as will compensate such Lender for such additional
costs incurred or reduction suffered.
(b) If any Lender 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 capital or on the capital of such Lender's holding
company, if any, as a consequence of this Agreement or the Loans made by such
Lender to a level below that which such Lender or such Lender's holding company
could have achieved but for such Change in Law (taking into consideration such
Lender's policies and the policies of such Lender's holding company with
respect to capital adequacy), then subject to paragraphs (c) and (d) of this
Section 2.12, the Borrower will pay to such Lender such additional amount or
amounts as will compensate such Lender or such Lender's holding company for any
such reduction suffered.
(c) A certificate of a Lender setting forth the amount(s)
necessary to compensate such Lender or its holding company, as the case may be,
and the basis for the calculation thereof as specified in paragraph (a) or (b)
of this Section 2.12 shall be delivered to the Borrower and shall be conclusive
absent manifest error. The Borrower shall pay such Lender 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 to demand
compensation pursuant to this Section 2.12 shall not constitute a waiver of
such Lender's right to demand such compensation; provided that the Borrower
shall not be required to compensate a Lender pursuant to this Section 2.12 for
any increased costs or reductions incurred more than 180 days prior to the
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date that such Lender notifies the Borrower of the Change in Law giving rise to
such increased costs or reductions and of such Lender'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 180-day period
referred to above shall be extended to include the period of retroactive effect
thereof.
SECTION 2.13. Break Funding Payments. In the event of (a) the
payment of any principal of any Eurodollar 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 Eurodollar Loan other than on the last day
of the Interest Period applicable thereto, (c) the failure to borrow, convert,
continue or prepay any Eurodollar Loan on the date specified in any notice
delivered pursuant hereto (regardless of whether such notice may be revoked
under Section 2.08(b) and is revoked in accordance therewith), or (d) the
assignment of any Eurodollar Loan other than on the last day of the Interest
Period applicable thereto as a result of a request by the Borrower pursuant to
Section 2.16, then, in any such event, the Borrower shall compensate each
Lender for the loss, cost and expense attributable to such event. In the case
of a Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed
to include an amount determined in good faith 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 dollar deposits of a comparable amount and period from other banks
in the Eurodollar market. A certificate of any Lender setting forth any
amount(s) that such Lender is entitled to receive and the basis for the
calculation thereof pursuant to this Section 2.13 shall be delivered to the
Borrower and shall be conclusive absent manifest error. The Borrower shall pay
such Lender the amount shown as due on any such certificate within 10 days
after receipt thereof.
SECTION 2.14. Taxes. (a) Any and all payments by or on
account of any obligation of the Borrower hereunder shall be made free and
clear of and without deduction for any Indemnified Taxes or Other Taxes;
provided that if the Borrower 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 the Administrative
Agent or Lender (as the case may be) receives an amount equal to the sum it
would have received had no such deductions been made, (ii) the Borrower shall
make such deductions and (iii) the Borrower shall pay the full amount deducted
to the relevant Governmental Authority in accordance with applicable law.
(b) In addition, the Borrower shall pay any Other Taxes to
the relevant Governmental Authority in accordance with applicable law.
(c) The Borrower shall indemnify the Administrative Agent and
each Lender, within 10 days after written demand therefor, for the full amount
of any Indemnified Taxes or Other Taxes paid by the Administrative Agent or
such Lender, as the case may be, on or with respect to any payment by or on
account of any obligation of the Borrower hereunder (including Indemnified
Taxes or Other Taxes imposed or asserted on or attributable to amounts payable
under this Section) and any penalties, interest and reasonable expenses arising
therefrom or with
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respect thereto, whether or not such Indemnified Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental Authority.
(d) As soon as practicable after any payment of Indemnified
Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower
shall deliver to the Administrative Agent the original or a certified copy of a
receipt, if any, issued by such Governmental Authority evidencing such payment,
a copy of the return, if any, 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 with respect to any Indemnified Tax or Other
Tax (including by application of any treaty, the benefits of which such Lender
is entitled), with respect to payments under this Agreement shall deliver to
the Borrower (with a copy to the Administrative Agent), on or prior to the date
such Foreign Lender becomes a party to this Agreement (or designates a new
lending office) and at such other times as may be necessary in the reasonable
determination of the Borrower or Administrative Agent, (i) two original copies
of Internal Revenue Service Form W-8BEN or W-8ECI (or any successor forms),
properly completed and duly executed by such Lender, and such other
documentation required under the Code to establish that such Lender is not
subject to deduction or withholding of United States federal income tax with
respect to any payments to such Lender of principal, interest, fees or other
amounts payable under this Agreement, or (ii) if such Lender is not a "bank" or
other Person described in Section 881(c)(3) of the Code and cannot deliver
either Internal Revenue Service Form W-8BEN or W-8ECI pursuant to clause (i)
above of this Section 2.14(e), a Certificate of Non-Bank Status together with
two original copies of Internal Revenue Service Form W-8 (or any successor
form), properly completed and duly executed by such Lender, and such other
documentation required under the Code to establish that such Lender is not
subject to deduction or withholding of United States federal income tax with
respect to any payments to such Lender of interest payable under this
Agreement. Each Lender that is not a Foreign Lender shall deliver to the
Borrower (with a copy to the Administrative Agent) two duly completed copies of
United States Internal Revenue Form W-9 (or applicable successor form) unless
it establishes to the satisfaction of the Borrower that the Lender is otherwise
eligible for an exemption from backup withholding tax or other applicable
withholding tax. Each Lender hereby agrees, from time to time after the initial
delivery by such Lender of such forms, certificates or other evidence required
to be provided pursuant to the first two sentences of this Section 2.14(e),
whenever a lapse in time or change in circumstances renders such forms,
certificates or other evidence obsolete or inaccurate in any material respect,
that such Lender shall promptly deliver to Administrative Agent for
transmission to the Borrower two new original copies of Internal Revenue
Service Form X-0XXX, X-0XXX or W-9 or a Certificate of Non-Bank Status and two
original copies of Internal Revenue Service Form W-8, as the case may be,
properly completed and duly executed by such Lender, and such other
documentation required under the Code to confirm or establish that such Lender
is not subject to deduction or withholding of United States federal income tax
with respect to payments to such Lender under this Agreement, or notify
Administrative Agent and the Borrower of its inability to deliver any such
forms, certificates or other evidence. Notwithstanding any other provision of
this paragraph (e), a Foreign Lender shall not be required to deliver any form
pursuant to this paragraph (e) that such Foreign Lender is not legally able to
deliver.
(f) If the Administrative Agent or a Lender determines, in
its sole discretion, that it has received a refund of any Indemnified Taxes or
Other Taxes as to which it has been
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indemnified by the Borrower or with respect to which the Borrower has paid
additional amounts pursuant to this Section 2.14, it shall promptly notify the
Borrower of such refund and promptly pay over such refund to the Borrower (but
only to the extent of indemnity payments made, or additional amounts paid, by
the Borrower under this Section 2.14 with respect to the Taxes or Other Taxes
giving rise to such refund), net of all out-of-pocket expenses of the
Administrative Agent or such Lender and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such
refund); provided, that the Borrower, upon the request of the Administrative
Agent or such Lender, agrees to repay the amount paid over to the Borrower
(plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) to the Administrative Agent or such Lender in the event
the Administrative Agent or such Lender is required to repay such refund to
such Governmental Authority. This Section shall not be construed to require the
Administrative Agent or any Lender to make available its tax returns (or any
other information relating to its taxes which it deems confidential) to the
Borrower or any other Person.
SECTION 2.15. Payments Generally; Pro Rata Treatment; Sharing
of Set-offs. (a) The Borrower shall make each payment required to be made by it
hereunder (whether of principal, interest, fees, or of amounts payable under
Section 2.12, 2.13 or 2.14, or otherwise) prior to 12:00 noon, New York City
time, 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, except that payments pursuant to Sections
2.12, 2.13, 2.14 and 9.03 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 such extension. All
payments hereunder shall be made in dollars.
(b) If at any time insufficient funds are received by and
available to the Administrative Agent to pay fully all amounts of principal,
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 then
due hereunder, ratably among the parties entitled thereto in accordance with
the amounts of principal then due to such parties.
(c) 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 Loans resulting in such Lender receiving payment of a
greater proportion of the aggregate amount of its Loans accrued interest
thereon than the proportion received by any other Lender, then the Lender
receiving such greater proportion shall purchase (for cash at face value)
participations in the 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 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,
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without interest, and (ii) the provisions of this paragraph (c) of this Section
2.15 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 Loans to any assignee or participant, other than
to the Borrower or any Subsidiary or Affiliate thereof (as to which the
provisions of this paragraph (c) of this Section 2.15 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.
(d) Unless the Administrative Agent shall have received
notice from the Borrower prior to the date on which any payment is due to the
Administrative Agent for the account of the Lenders hereunder that the Borrower
will not make such payment, the Administrative Agent may assume that the
Borrower has made such payment on such date in accordance herewith and may, in
reliance upon such assumption, distribute to the Lenders the amount due. In
such event, if the Borrower has not in fact made such payment, then each of the
Lenders severally agrees to repay to the Administrative Agent forthwith on
demand the amount so distributed to such Lender 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, at the greater of
the Federal Funds Effective Rate and a rate determined by the Administrative
Agent in accordance with banking industry rules on interbank compensation.
(e) If any Lender shall fail to make any payment required to
be made by it pursuant to Section 2.04(b) or 2.15(d), 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 2.16. Mitigation Obligations; Replacement of Lenders.
(a) If any Lender requests compensation under Section 2.12, or if the Borrower
is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.14 or as a result
of any Lender's assignment to an Affiliate of such Lender or an Approved Fund
pursuant to Section 9.04(b), or if any Lender is an Affected Lender, then such
Lender shall, upon the request of the Borrower, 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, such designation or assignment (i) would be
reasonably expected to eliminate or reduce amounts payable pursuant to Sections
2.12 or 2.14 in the future or result in such Lender or its assignee, as
applicable, not being an Affected Lender; and (ii) would not subject such
Lender to any unreimbursed cost or expense and would not otherwise be
disadvantageous to such Lender. The Borrower hereby agrees to pay all
reasonable costs and expenses incurred by any Lender in connection with any
such designation or assignment.
(b) If any Lender requests compensation under Section 2.12,
or if the Borrower is required to pay any additional amount to any Lender or
any Governmental Authority for the account of any Lender pursuant to Section
2.14 or as a result of any Lender's assignment to an Affiliate of such Lender
or an Approved Fund pursuant to Section 9.04(b), or if any Lender is an
Affected Lender or defaults in its obligation to fund Loans hereunder, then the
Borrower may, at
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its sole expense and effort (other than in the case of a default by a Lender,
in which case such Lender shall be responsible for all reasonable out-of-pocket
costs of the Borrower), upon notice to such Lender and the Administrative
Agent, (x) prepay such Lender in full or (y) require such Lender to assign and
delegate, without recourse (in accordance with and subject to the restrictions
contained in Section 9.04), all its interests, rights and obligations under
this Agreement to an assignee selected by the Borrower, subject to the consent
of the Administrative Agent (such consent not be unreasonably withheld or
delayed), that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); provided that (i) the Borrower
shall have received the prior written consent of the Administrative Agent,
which consent shall not unreasonably be withheld, (ii) such Lender shall have
received payment of an amount equal to the outstanding principal amount of its
Loans, accrued interest thereon, accrued fees and all other amounts payable to
it hereunder, from the assignee (to the extent of such outstanding principal
amount and accrued interest and fees) or the Borrower (in the case of all other
amounts) and (iii) in the case of any such assignment resulting from a claim
for compensation under Section 2.12 or payments required to be made pursuant to
Section 2.14, such assignment would be reasonably expected to 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 to
require such assignment and delegation cease to apply.
ARTICLE III
REPRESENTATIONS AND WARRANTIES
Except for Disclosed Matters, the Borrower represents and
warrants to the Lenders that:
SECTION 3.01. Organization; Powers. Each of the Borrower and
its 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 carry on its business as now conducted and is qualified to do
business in, and is in good standing in, every jurisdiction where such
qualification is required except, in each case, where the failure to do so,
individually or in the aggregate, would not reasonably be expected to result in
a Material Adverse Effect. As of the date hereof, the Borrower has no
Subsidiaries other than those Persons listed on Schedule 3.01.
SECTION 3.02. Authorization; Enforceability. The Transactions
are within the Borrower's corporate powers and have been duly authorized by all
necessary corporate and, if required, stockholder action on the part of the
Borrower. Each of this Agreement and the Transaction Documents has been duly
executed and delivered by the Borrower and constitutes a legal, valid and
binding obligation of the Borrower, enforceable against the Borrower 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 3.03. Governmental Approvals; No Conflicts. (a) The
Transactions, the IPO and the Notes Offering:
(i) do not require any consent or approval of, registration or
filing with, or any other action by, any Governmental Authority,
except such as have been obtained or
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made and are in full force and effect and except as would not
reasonably be expected to have a Material Adverse Effect;
(ii) do not violate any applicable law (including ERISA and
Environmental Laws) or regulation or any order of any Governmental
Authority except as would not reasonably be expected to have a
Material Adverse Effect;
(iii)do not violate the charter, by-laws or other
organizational documents of the Borrower or any of its Subsidiaries;
(iv) will not violate any indenture, agreement or other
instrument binding upon the Borrower or any of its Subsidiaries or its
assets, or give rise to a right thereunder to require any payment to
be made by the Borrower or any of its Subsidiaries except as would not
reasonably be expected to have a Material Adverse Effect; and
(v) will not result in the creation or imposition of any Lien
(except any Lien permitted by Section 6.02 that has been disclosed as
a Disclosed Matter or after the date hereof with respect to this
Section 3.03) on any asset of the Borrower or any of its Subsidiaries.
(b) Each Loan ranks pari passu with each other Loan (except as
provided herein) and, for bankruptcy purposes, with all other senior
unsecured unsubordinated Indebtedness of the Borrower.
SECTION 3.04. Financial Condition; No Material Adverse
Change. (a) The Borrower has heretofore furnished to the Lenders its
consolidated balance sheet and statements of income, stockholders' equity and
cash flows (i) for the fiscal years ending, and at, December 25, 1999, December
30, 2000 and December 29, 2001, and (ii) as of and for the fiscal quarter and
the portion of the fiscal year ended March 31, 2002. The financial statements
described in clause (i) of this Section 3.04(a) were reported on by Xxxxxx
Xxxxxxxx for such fiscal years ending, and at, December 25, 1999 and December
30, 2000 and by PricewaterhouseCoopers LLP for such fiscal year ending, and at
December 29, 2001, and in clause (ii) of this Section 3.04(a) were certified by
the Borrower's chief financial officer. Such financial statements present
fairly, in all material respects, the financial position and results of
operations and cash flows of the Borrower and its consolidated Subsidiaries as
of such dates and for such periods in conformity 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 of this Section 3.04(a). The Borrower has
heretofore also furnished to the Lenders its unaudited pro forma condensed
consolidated statement of income, for its fiscal year ended December 29, 2001,
and for its fiscal quarter ended March 30, 2002 and its unaudited pro forma
condensed consolidated balance sheet at March 30, 2002. Such pro forma
financial statements comply, in all material respects, with the requirements of
Article XI of Regulation S-X of the SEC.
(b) The Borrower has heretofore furnished to the Lenders
projections as of and for the period between fiscal year beginning 2002 and
fiscal year ended 2007. Such projections were prepared by management of the
Borrower in good faith based on assumptions that the Executive Officers believe
are reasonable as of the date hereof.
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(c) Since December 29, 2001, there has been no material
adverse change in the business, assets, operations, prospects or financial
condition of the Borrower and its Subsidiaries, taken as a whole.
SECTION 3.05. Properties; Insurance. (a) Each of the Borrower
and its Subsidiaries has good title to, or valid leasehold interests in, all
its real and personal property material to their business, taken as a whole,
except for 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 its Subsidiaries owns, is
validly licensed or otherwise has the right to use, all trademarks, trade
names, copyrights, patents and other intellectual property and property rights
which are material to its business, and the use thereof by the Borrower and its
Subsidiaries does not and will not violate the rights of any other Person,
except for any such violations that, individually or in the aggregate, would
not reasonably be expected to result in a Material Adverse Effect. No claim is
pending and, to the knowledge of the Executive Officers, no claim has been
asserted by any person challenging or questioning the use of any such
trademark, trade name, copyright, patent or other intellectual property or
proprietary rights except as would not reasonably be expected to have a
Material Adverse Effect.
(c) The Borrower maintains, with financially sound and
reputable insurance companies, directly or through Merck, on its own behalf and
on behalf of its Subsidiaries, 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 3.06. 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 Executive
Officers, threatened against or affecting the Borrower or any of its
Subsidiaries (i) that would reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect or (ii) that involve this
Agreement or the Transactions or the transactions contemplated by the IPO or
the Notes Offering.
(b) Except with respect to matters that, individually or in
the aggregate, would not reasonably be expected to result in a Material Adverse
Effect, neither the Borrower nor any of its Subsidiaries (i) has failed to
comply with any Environmental Law or to obtain, maintain or comply with any
permit, license or other approval required under any Environmental Law, (ii)
has become subject to any Environmental Liability, or (iii) has received
written notice of any claim with respect to any Environmental Liability, and,
to the knowledge of the Executive Officers, there is no reasonable basis for
any Environmental Liability.
(c) Since the date of this Agreement, there has been no
change in the status of any Disclosed Matter with respect to this Section 3.06
that, individually or in the aggregate, has resulted in, or substantially
increased the likelihood of, a Material Adverse Effect.
SECTION 3.07. Compliance with Laws and Agreements. Each of
the Borrower and its 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,
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would not reasonably be expected to result in a Material Adverse Effect. No
Default has occurred and is continuing.
SECTION 3.08. Investment and Holding Company Status. Neither
the Borrower nor any of its Subsidiaries 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 3.09. Taxes. Each of the Borrower and its
Subsidiaries (i) has timely filed or caused to be filed all Tax returns and
reports required to have been filed and (ii) has paid or caused to be paid all
Taxes required to have been paid by it, except in the case of each of clause
(i) and (ii) of this Section 3.09, (a) Taxes that are being contested in good
faith by appropriate proceedings and for which the Borrower or such Subsidiary,
as applicable, has set aside on its books reserves to the extent required under
GAAP or (b) to the extent that the failure to do so would not reasonably be
expected to result in a Material Adverse Effect.
SECTION 3.10. ERISA. No ERISA Event has occurred or is
reasonably expected to occur that, when taken together with all other such
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 the greater of (a) 130% (one hundred thirty
percent) of the fair market value of the assets of such Plan and (b)
$25,000,000 (twenty-five million dollars), 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 the greater of (a) 130% (one hundred thirty
percent) of the fair market value of the assets of all such underfunded Plans
and (b) $25,000,000 (twenty-five million dollars).
SECTION 3.11. Employee Matters. Neither the Borrower nor its
Subsidiaries is engaged in any unfair labor practice that would reasonably be
expected to have a Material Adverse Effect. There is (a) no unfair labor
practice complaint pending against the Borrower or any of its Subsidiaries, or
to the best knowledge of the Executive Officers, threatened against any of them
before the National Labor Relations Board and no grievance or arbitration
proceeding arising out of or under any collective bargaining agreement that is
so pending against the Borrower or any of its Subsidiaries or to the best
knowledge of the Executive Officers, threatened against any of them, (b) no
strike or work stoppage is in existence involving the Borrower or any of its
Subsidiaries that would reasonably be expected to have a Material Adverse
Effect, and (c) to the best knowledge of the Executive Officers, no union
representation question is existing with respect to the employees of the
Borrower or any of its Subsidiaries and, to the best knowledge of the Executive
Officers, no union organization activity that is taking place, except (with
respect to any matters specified in clauses (a), (b) or (c) of this Section
3.11, either individually or in the aggregate) such matter as would not
reasonably be expected to result in a Material Adverse Effect.
SECTION 3.12. IPO and Notes Offering. The terms and
conditions of the IPO and the Notes Offering are or will be consistent with
Schedule 3.12. The underwriting and exchange agreements that will give effect
to the IPO are substantially in the form reviewed prior
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to the date hereof by the Joint Lead Arrangers, and none of the terms or
conditions of such agreements shall be amended, waived or otherwise modified in
a manner that would, in the reasonable judgment of the Joint Lead Arrangers, be
materially adverse to the Lenders without the consent of the Joint Lead
Arrangers.
SECTION 3.13. Margin Regulations. Neither the Borrower nor
any of its Subsidiaries is engaged principally, as one of its important
activities, in the business of extending credit for the purpose of carrying any
margin stock (as such term is defined in Regulations U of the Board as in
effect from time to time). No part of the proceeds of the Loans issued to the
Borrower will be used to purchase or carry any such margin stock or to extend
credit to others for the purpose of purchasing or carrying any such margin
stock or for any purposes that violates, or is inconsistent with, the
provisions of Regulation T , U or X (or any successor regulations) of the Board.
SECTION 3.14. Certain Fees. No broker's or finder's fee or
commission will be payable with respect hereto or any of the transactions
contemplated hereby.
SECTION 3.15. Solvency. The Borrower and each Significant
Subsidiary is Solvent.
SECTION 3.16. No Burdensome Restrictions. No laws,
regulations and orders of any Governmental Authority applicable to the Borrower
or any Subsidiary or any of their property and all indentures, agreements and
other instruments binding upon any of them have had, individually or in the
aggregate, a Material Adverse Effect.
SECTION 3.17. Disclosure. The Borrower has disclosed to the
Lenders (including in the IPO Prospectus and related registration statement of
which it is a part) all agreements (including those related to Medicare,
Medicaid or any other managed care recoupment or recoupments of any third-party
payor being sought, threatened, requested or claimed), instruments and
corporate or other restrictions to which it or any of its Subsidiaries is
subject as of the date of this Agreement, and all other matters known to the
Executive Officers as of the date of this Agreement, that, as of the date of
this Agreement, they are aware, individually or in the aggregate, would
reasonably be expected to result in a Material Adverse Effect. To the knowledge
of the Executive Officers, as of the date of this Agreement, neither the
Information Memorandum nor any of the other reports, financial statements,
projections, 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 this Agreement or delivered hereunder (as modified or
supplemented by other information so furnished), when taken as a whole,
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 or any forecast or opinion, the Borrower
represents only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time.
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ARTICLE IV
CONDITIONS
SECTION 4.01. Initial Funding Date. The obligations of the
Lenders to make Loans hereunder shall be subject to the satisfaction (or waiver
in accordance with Section 9.02) of each of the following conditions:
(a) The Administrative Agent (or its counsel) shall have
received from each party hereto either (i) a counterpart of this
Agreement and of each Transaction Document signed on behalf of the
party thereto or (ii) written evidence 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 and of each Transaction Document.
(b) The Administrative Agent shall have received a favorable
written opinion (addressed to the Administrative Agent and the Lenders
and dated the Initial Funding Date) of Fried Xxxxx Xxxxxx Xxxxxxx &
Xxxxxxxx, counsel for the Borrower, substantially in the form of
Exhibit F. The Borrower hereby requests such counsel to deliver such
opinion.
(c) 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 Borrower, the authorization of the Transactions
and any other legal matters relating to the Borrower, this Agreement
or the Transactions that the Administrative Agent shall reasonably
request, all in form and substance reasonably satisfactory to the
Administrative Agent and its counsel.
(d) The Administrative Agent shall have received a
certificate, dated the Initial Funding Date and signed by the
President, a Vice President or a Financial Officer of the Borrower
that:
(i) The Borrower is in compliance with the conditions set
forth in paragraphs (a) and (b) of Section 4.02;
(ii) Each Person that has executed this Agreement or any
Transaction Document is an elected or appointed officer of the
Borrower and is authorized to executed this Agreement and each
of the Transaction Documents, as the case may be; and
(iii) The Borrower represents and warrants to the Lenders
that:
(A) the underwriting and exchange agreements giving
effect to the IPO and the separation and transition
agreements with Merck (described in the IPO Prospectus)
have been executed and delivered substantially as
described in Schedule 3.12 and are in the form reviewed
prior to the Initial Funding Date by the Joint Lead
Arrangers and are in full force and effect without any
defaults or breaches thereunder that would cause any of
the conditions to closing of the IPO not to be satisfied,
and none of the terms or conditions of such documentation
have been amended, waived or otherwise modified in a
manner that would, in the reasonable judgment of the
Joint Lead Arrangers,
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be materially adverse to the Lenders without the Joint
Lead Arrangers' consent;
(B) the IPO has been completed on terms and conditions
substantially as described in Schedule 3.12; and
(C) the IPO and the separation and transition agreements
with Merck (described in the IPO Prospectus) are within
the Borrower's corporate powers and have been duly
authorized by all necessary corporate and, if required,
stockholder action on the part of the Borrower, and each
such agreement has been duly executed and delivered by
the Borrower and constitutes a legal, valid and binding
obligation of the Borrower, 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.
(e) The Administrative Agent shall have received a
certificate from the chief financial officer of the Borrower to the
effect that, as of the Initial Funding Date, after giving effect to
the Loans and to the payment of all estimated legal, investment
banking, accounting and other fees related thereto, the Borrower and
each Significant Subsidiary is Solvent.
(f) The Administrative Agent or the Joint Lead Arrangers, as
the case may be, shall have received all costs, fees, expenses
(including reasonable out-of-pocket legal fees and expenses and the
reasonable out-of-pocket fees and expenses of appraisers, consultants
and other advisors) and other compensation then payable to the
Administrative Agent or the Joint Lead Arrangers, including any
arrangement fees, or any fees payable to the Lenders with respect to
their respective Total Commitments.
(g) The Administrative Agent shall have received satisfactory
confirmation of the applicable public long-term ratings assigned to
the Borrower from S&P and Xxxxx'x for the Loans, which shall be no
less than "BBB+" and "Ba1", respectively, and with a stable or
positive outlook.
SECTION 4.02. Each Credit Event. The obligation of each
Lender to make a Loan on the occasion of any Borrowing (including on the
Initial Funding Date) is subject to the satisfaction of the following
conditions:
(a) The representations and warranties of the Borrower set
forth in Article III of this Agreement shall be true and correct in
all material respects (except that, to the extent any such
representation or warranty is qualified by materiality or Material
Adverse Effect, such representation or warranty shall be true and
correct in all respects) on and as of the date of such Borrowing,
except to the extent expressly referring only to an earlier date.
(b) At the time of and immediately after giving effect to such
Borrowing, no Default shall have occurred and be continuing.
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Each Borrowing 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.
ARTICLE V
AFFIRMATIVE COVENANTS
Until the Lenders' Total 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, the Borrower covenants and agrees with
the Lenders that:
SECTION 5.01. Financial Statements; Ratings Change 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, its audited consolidated balance sheet 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 for the previous fiscal year, all
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, as of such dates and for such periods, in
conformity with GAAP; provided that delivery within the time frame
specified above of copies of Borrower's Annual Report on Form 10-K
filed with the SEC shall satisfy the requirements of this paragraph
(a) of this Section 5.01;
(b) within 45 days after the end of each of the first three
fiscal quarters of each fiscal year of the Borrower, its consolidated
balance sheet and related statements of operations, stockholders'
equity and cash flows as of the end of and for such fiscal quarter
and the then elapsed portion of the fiscal year, setting forth in
each case in comparative form the figures for the corresponding
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 on a consolidated basis, as of such dates
and for such periods, in conformity with GAAP, subject to normal
year-end audit adjustments and the absence of footnotes; provided
that delivery within the time frame specified above of copies of
Borrower's Quarterly Report on Form 10-Q filed with the SEC shall
satisfy the requirements of this paragraph (b) of this Section 5.01;
(c) concurrently with any delivery of financial statements
under clauses (a) or (b) above of this Section 5.01, a certificate of
a Financial Officer of the Borrower (i) certifying as to whether the
Financial Officer is aware of a Default that has occurred and is
continuing and, if a Default has occurred and is continuing,
specifying the details thereof and any action taken or proposed to be
taken with respect thereto, (ii) demonstrating, in reasonable detail,
compliance with the financial ratios or requirements set forth in
Sections 6.01(k), 6.02(i), 6.03(c), 6.04(l), 6.10(a), 6.10(b) and, if
applicable, Section 6.06(e) and (iii) stating whether any change in
GAAP or in the
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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) of this Section 5.01, a certificate substantially in
the form attached as Exhibit G of the accounting firm that reported
on such financial statements (provided that such certificate may be
limited to the extent required by accounting rules or guidelines);
(e) promptly after the same become publicly available, copies
of all periodic and other reports, proxy statements and other
materials filed by the Borrower or any Subsidiary with the SEC, or
any Governmental Authority succeeding to any or all of the functions
of said Commission, or distributed by the Borrower to its
shareholders generally provided that such financial statements and
reports to shareholders shall be deemed delivered on the second
business day following the day on which they are filed with the SEC
unless actually delivered on an earlier date, as the case may be;
(f) as soon as practicable and in any event no later than 30
days prior to the beginning of each fiscal year for the Borrower, a
consolidated financial forecast for such fiscal year and the next
three succeeding fiscal years, including (i) a forecasted
consolidated balance sheet and forecasted consolidated statements of
income and cash flows of the Borrower and its Subsidiaries for each
such fiscal year, together with an explanation of the principal
assumptions on which such forecasts are based;
(g) promptly after Xxxxx'x or S&P shall have announced a
change in the rating established or deemed to have been established
for the Index Debt, written notice of such rating change;
(h) promptly after any material amendment of, material waiver
to or material withdrawal from the managed care agreement described
in clause (n) of Article VII, written notice of such amendment,
waiver or withdrawal; and
(i) promptly following any request therefor, such other
information 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 5.02. Notices of Material Events. The Borrower will
furnish to the Administrative Agent and each Lender prompt written notice of
the following:
(a) any Financial Officer's becoming aware of any Default
that has occurred, unless the Borrower has previously provided such
notification;
(b) any Financial Officer's becoming aware of 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 and that such action, suit or
proceeding, if adversely determined, would reasonably be expected to
result in a Material Adverse Effect;
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(c) any Financial Officer's becoming aware of the occurrence
of any ERISA Event that, alone or together with any other ERISA
Events that have occurred and are then outstanding, would reasonably
be expected to result in liability of the Borrower and its
Subsidiaries in an aggregate amount exceeding $5,000,000 (five
million dollars) and
(d) any Financial Officer's becoming aware of any other
development that the Financial Officer is aware results in, or would
reasonably be expected to result in, a Material Adverse Effect.
Each notice delivered under this Section 5.02 shall be accompanied by a
statement of a Financial Officer or other Executive Officer setting forth a
description of the event or development requiring such notice and any action
taken or proposed to be taken with respect thereto.
SECTION 5.03. Existence; Conduct of Business. The Borrower
will, and will cause each of its Subsidiaries to, do or cause to be done all
things necessary to preserve, renew and keep in full force and effect its legal
existence and the rights, licenses, permits, privileges and franchises material
to the conduct of its business (including agreements with Merck, including
those to be entered into in connection with the IPO described in the IPO
Prospectus) except for failures to do so which would, individually or
collectively, not reasonably be expected to result in a Material Adverse
Effect; provided that the foregoing shall not prohibit any transaction
permitted under Section 6.03.
SECTION 5.04. Payment of Obligations. The Borrower will, and
will cause each of its Subsidiaries to, pay its obligations, including Tax
liabilities, before the same shall become delinquent or in default, that, if
not paid, would, individually or collectively, reasonably be expected to result
in a Material Adverse Effect, except where (a) the validity or amount thereof
is being contested in good faith by appropriate proceedings and (b) the
Borrower or such Subsidiary has set aside on its books reserves with respect
thereto to the extent required under GAAP.
SECTION 5.05. Maintenance of Properties; Insurance. The
Borrower will, and will cause each of its Subsidiaries to, keep and maintain
all property material to the conduct of their businesses in good working order
and condition, ordinary wear and tear excepted, except for failures that would
not reasonably be expected to result in a Material Adverse Effect. The Borrower
will maintain, with financially sound and reputable insurance companies,
directly, or through Merck, on the Borrower's own behalf and on behalf of its
Subsidiaries, 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 5.06. Books and Records; Inspection Rights. The
Borrower will, and will cause each of its Subsidiaries to (a) keep proper books
of record and account in conformity with GAAP; and (b) permit any
representatives designated by the Administrative Agent or any Lender, upon
reasonable prior notice and without causing material disruption, and at the
expense of the Administrative Agent or such Lender, as applicable, 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 (subject to confidentiality obligations of the Borrower or
its Subsidiaries).
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SECTION 5.07. Compliance with Laws and Agreements. The
Borrower will, and will cause each of its Subsidiaries to, comply with all laws
(including ERISA and Environmental Law), rules, regulations and orders of any
Governmental Authority applicable to it or its property (including agreements
to be entered into in connection with the IPO as described in the IPO
Prospectus), except where the failure to do so, individually or in the
aggregate, would not reasonably be expected to result in a Material Adverse
Effect.
SECTION 5.08. Use of Proceeds. The proceeds of the Loans
shall be only used for the Borrower's general corporate and working capital
purposes. No part of the proceeds of any Loan will be used, whether directly or
indirectly, for any purpose that entails a violation of any of the Regulations
of the Board, including Regulations T, U and X. Letters of Credit will be
issued only to support the Borrower's general corporate and working capital
purposes.
SECTION 5.09. Other Agreements. So long as any of the Loans
are outstanding, the Borrower shall not amend or terminate the Assignment and
Assumption, dated as of June __, 2002, between the Borrower and PAID
Prescriptions, L.L.C.
ARTICLE VI
NEGATIVE COVENANTS AND FINANCIAL COVENANTS
Until the Lenders' Total Commitments have expired or
terminated and the principal of and interest on each Loan and all fees payable
hereunder have been paid in full, the Borrower covenants and agrees with the
Lenders that:
SECTION 6.01. Indebtedness. The Borrower will not, and will
not permit any Subsidiary to, create, incur, assume or permit to exist any
Indebtedness, except:
(a) the Indebtedness created hereunder and under the Five
Year Facility;
(b) the Indebtedness under the notes to be issued pursuant to
the Notes Offering or, if applicable, the Indebtedness under the
Bridge Facility;
(c) Indebtedness existing on the date hereof and set forth in
Schedule 6.01, together with any existing Guarantees of any such
Indebtedness;
(d) Indebtedness of the Borrower to any Subsidiary and of any
Subsidiary to the Borrower or any other Subsidiary;
(e) Guarantees by the Borrower of Indebtedness of any
Subsidiary and by any Subsidiary of Indebtedness of the Borrower or
any other Subsidiary;
(f) Indebtedness of the Borrower or any Subsidiary as an
account party in respect of trade letters of credit;
(g) Indebtedness to the extent the net cash proceeds of which
are utilized to permanently prepay Loans in accordance with Section
2.08 or Term Loans or Revolving Loans (each as defined in the Five
Year Facility) outstanding under the Five Year Facility;
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(h) Indebtedness which may be deemed to exist pursuant to any
surety, indemnity, appeal, performance and other obligations of like
nature and guarantees thereof, in each case securing obligations not
constituting Indebtedness for borrowed money;
(i) Indebtedness that may exist in respect of deposits or
payments made by customers or clients;
(j) one or more Accounts Receivable Financing Programs,
provided that (i) the size of such Accounts Receivable Financing
Programs shall not, in the aggregate, exceed $500,000,000 (five
hundred million dollars) (regardless of the amount of accounts
receivable securitized or collateralized thereunder) [and (ii)(A) the
aggregate face amount of accounts receivable of the Borrower and its
Subsidiaries held at any time by a trust, partnership, corporation or
other entity to which such accounts receivable have been transferred
pursuant to Accounts Receivable Financing Programs, plus (without
duplication) (B) the amount of Indebtedness outstanding at such time
pursuant to Accounts Receivable Financing Programs under which the
Borrower or any of its Subsidiaries incurs Indebtedness secured by
their accounts receivable does not exceed [50% (fifty percent)] of
the aggregate face amount of all accounts receivable of the Borrower
and its Subsidiaries at such time];
(k) Indebtedness of the Borrower or any Subsidiary not
otherwise permitted by paragraphs (a) through (j) of this Section
6.01 in an aggregate principal amount not exceeding 10% (ten percent)
of Consolidated Net Tangible Assets, as defined in Section 6.10;
(l) extensions, renewals or refinancings of Indebtedness
under paragraphs (a) through (i) of this Section 6.01 so long as (1)
such Indebtedness ("Refinancing Indebtedness") is in an aggregate
principal amount not greater than the aggregate principal amount of,
and unpaid interest on, the Indebtedness being extended, renewed or
refinanced plus the amount of any premiums required to be paid
thereon and fees and expenses associated therewith, (2) such
Refinancing Indebtedness has a later or equal final maturity and a
longer or equal weighted average life than the Indebtedness being
extended, renewed or refinanced, and (3) the interest rate applicable
to such Refinancing Indebtedness shall be at a rate no higher than
the rate applicable to the Indebtedness that is the subject of the
extension, renewal or refinancing; and
(m) all premiums (if any), interest (including post-petition
interest), fee, expenses, indemnities, charges and additional or
contingent interest on obligations described in paragraphs (a)
through (l) of this Section 6.01.
SECTION 6.02. 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;
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(b) Liens in favor of the Borrower with respect to any of its
Subsidiaries and Liens that may be deemed to exist under this
Agreement, the Five Year Facility, the Bridge Facility and the notes
to be issued pursuant to the Notes Offering;
(c) 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
and additions thereto (but not beyond the scope of the original Lien)
and proceeds and replacements thereof; provided that such Liens shall
secure only those obligations which it secures on the date hereof and
extensions, renewals and replacements thereof that do not increase
the outstanding principal amount thereof;
(d) 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
and additions thereto (but not beyond the scope of the original Lien)
and proceeds and replacements thereof; provided that (i) 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
and (ii) 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 and extensions, renewals and
replacements thereof that do not increase the outstanding principal
amount thereof;
(e) Liens on fixed or capital assets or assets of a
Subsidiary acquired, constructed, refurbished or improved by the
Borrower or any Subsidiary; provided that (i) such security interests
secure Indebtedness not prohibited by Section 6.01, (ii) such
security interests and the Indebtedness secured thereby are incurred
prior to or within 120 days after such acquisition or the completion
of such construction, refurbishment or improvement, (iii) the
Indebtedness secured thereby does not exceed 100% (one hundred
percent) of the cost of acquiring, constructing or improving such
fixed or capital assets and (iv) such security interests shall not
apply to any other property or assets of the Borrower or any
Subsidiary (other than proceeds and replacements thereof and
additions thereto (but not beyond the scope of the original Lien));
(f) Liens solely on any deposits, advances, contractual
payments, including implementation allowances, or escrows made or
paid by the Borrower or any of its Subsidiaries to or with customers
or clients in the ordinary course of business;
(g) Liens arising from sales or securitizations of accounts
receivables;
(h) deposits securing liabilities to insurance carriers under
insurance or self-insurance arrangements and regulatory restrictions
imposed on insurance Subsidiaries; and
(i) Liens of the Borrower or any Subsidiary not otherwise
permitted by paragraphs (a) through (h) of this Section 6.02 in an
aggregate amount not exceeding 10% (ten percent) of Consolidated Net
Tangible Assets (including assets held "off-balance sheet" that are
subject to Liens restricted under this Section), as defined in
Section 6.10.
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SECTION 6.03. Fundamental Changes. The Borrower will not, nor
will it permit any of its Subsidiaries to, consummate any transaction of merger
or consolidation, or liquidate, wind-up or dissolve itself (or suffer any
liquidation or dissolution), or convey, sell, lease or sub-lease (as lessor or
sublessor), transfer or otherwise dispose of, in one transaction or a series of
transactions, all or any part of its business, assets or property of any kind
whatsoever, whether real, personal or mixed and whether tangible or intangible,
whether now owned or hereafter acquired, or acquire by purchase or otherwise
(other than purchases or other acquisitions of inventory, materials and
equipment in the ordinary course of business) the business, property or fixed
assets of, or stock or other evidence of beneficial ownership of, any Person or
any division or line of business or other business unit of any Person, except:
(a) any Subsidiary may be merged with or into the Borrower or
another wholly-owned Subsidiary, or be liquidated, wound up or
dissolved, or all or any part of its business, property or assets may
be conveyed, sold, leased, transferred or otherwise disposed of, in
one transaction or a series of transactions, to the Borrower or
another wholly-owned Subsidiary; provided, in the case of any merger
with the Borrower, the Borrower will be the continuing or surviving
Person;
(b) sales, leases, subleases or securitizations of accounts
receivables or other dispositions of assets that do not constitute
Asset Sales;
(c) (x) Asset Sales required by any Governmental Authority,
(y) Asset Sales (excluding any sale of accounts receivable), the
net-after-tax proceeds of which, together, (valued at the principal
amount thereof in the case of non-cash proceeds consisting of notes
or other debt securities and valued at fair market value in the case
of other non-cash proceeds) when aggregated with the proceeds of all
other Asset Sales made within the same fiscal year, are less than
$100,000,000 (one hundred million dollars) or (z) sales of accounts
receivable that constitute an Asset Sale which, when aggregated with
all other sales of accounts receivables that constitute Asset Sales
made during the term of this Agreement, are less than $400,000,000
(four hundred million dollars); provided (1) in the case of an Asset
Sale not required by any Governmental Authority, the consideration
received for such assets shall be in an amount at least equal to the
fair market value thereof (determined in good faith by the board of
directors of the Borrower (or similar governing body)), (2) in the
case of an Asset Sale not required by any Governmental Authority, no
less than 80% (eighty percent) thereof shall be paid in cash, and (3)
the after-tax net cash proceeds received from Asset Sales (including
sales of accounts receivables) shall be applied as, and, if and to
the extent, required by Section 2.08(b);
(d) disposals of obsolete, worn out or surplus property,
payments under Indebtedness permitted by Section 6.01 and any
Restricted Payment permitted by Section 6.06; and
(e) any Investment or acquisition permitted by Section 6.04
and any Indebtedness permitted by Section 6.01.
SECTION 6.04. Investments, Loans, Advances, Guarantees and
Acquisitions. The Borrower will not, and will not permit any of its
Subsidiaries to, purchase, hold or acquire (including pursuant to any merger
with any Person that was not a wholly owned Subsidiary prior
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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 similar 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 (each an "Investment"), except:
(a) Permitted Investments;
(b) Investments by the Borrower or any of its Subsidiaries
that exist on the date hereof;
(c) Investments by the Borrower to or in any Subsidiary and by
any Subsidiary to or in the Borrower or any other wholly-owned
Subsidiary;
(d) Guarantees constituting Indebtedness permitted by Section
6.01;
(e) Investments in the capital stock or other ownership
interests of any wholly-owned Subsidiary newly organized after the date
hereof;
(f) any Investment acquired by any of Borrower or any of its
Subsidiaries (A) in exchange for any other Investment permitted under
this Section 6.04 or accounts receivable held by Borrower or any of its
Subsidiaries in connection with or as a result of a bankruptcy,
workout, reorganization or recapitalization of the issuer of such other
Investment permitted under this Section 6.04 or accounts receivable,
(B) as a result of a foreclosure by Borrower or any of its Subsidiaries
with respect to any secured Investment or other transfer of title with
respect to any secured Investment in default or (C) in connection with
the acquisition of an Acquired Business of an Investment of such
Acquired Business which existed prior to the date of such acquisition;
(g) any Investment that may be deemed to exist with respect to
any Swap Agreement permitted by Section 6.05;
(h) any acquisition, construction or lease of fixed or capital
assets, plants, facilities or equipment (including renewals,
substitutions, additions, refurbishments, replacements, capitalized
repairs and improvements during such period) that should be capitalized
under GAAP, and included in property, plant or equipment reflected on a
consolidated balance sheet of the Borrower and its Subsidiaries;
(i) acquisitions or Investments in exchange for Equity
Interests of the Borrower;
(j) loans, deposits or advances to or with customers and
clients, including extensions of trade credit by, receivables payable
to, and pre-payments of, the Borrower or any of its Subsidiaries, in
the ordinary course of business;
(k) Investments to fund deferred compensation plans and other
post-employment benefit plans in the ordinary course of business; and
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(l) Investments and other acquisitions for cash not otherwise
permitted under paragraphs (a) through (k) of this Section 6.04 or
under Section 6.03: (1) in an aggregate amount not exceeding
$250,000,000 (two hundred fifty million dollars) in any fiscal year and
(2) to the extent such Investments or acquisitions made pursuant to
clause (1) would exceed $100,000,000 (one hundred million) in any
fiscal year, the Borrower's ratio of Consolidated Total Debt to
Consolidated EBITDA would be at or less than 2.25 immediately after
giving effect to such Investments or acquisitions, on a pro forma
basis. For the avoidance of doubt, nothing contained in this paragraph
(l) of this Section 6.04 shall be interpreted as modifying or
superceding any financial requirement otherwise specified in Section
6.10.
SECTION 6.05. Swap Agreements. The Borrower will not, and will
not permit any of its Subsidiaries to, enter into any Swap Agreement, except (a)
Swap Agreements entered into to hedge or mitigate risks to which the Borrower or
any Subsidiary has actual exposure (other than those in respect of Equity
Interests of the Borrower or any of its Subsidiaries), and (b) Swap Agreements
entered into in order to effectively cap, collar or exchange interest rates
(from fixed to floating rates, from floating to fixed rates, from one floating
rate to another floating rate or otherwise) with respect to any interest-bearing
liability or investment of the Borrower or any Subsidiary.
SECTION 6.06. Restricted Payments. The Borrower will not, and
will not permit any of its Subsidiaries to, declare or make, or agree to pay or
make, directly or indirectly, any Restricted Payment, except (a) the Borrower
may declare and pay dividends with respect to its Equity Interests payable
solely in additional shares of its common stock, (b) Subsidiaries may declare
and pay dividends ratably with respect to their Equity Interests, (c) the
Borrower may declare and pay the Merck Dividend , (d) the Borrower may make
Restricted Payments pursuant to and in accordance with stock option plans or
other benefit plans for management or employees of the Borrower and its
Subsidiaries, and (e) the Borrower may declare and pay cash dividends with
respect to its Equity Interest if, at the time such dividend is declared, the
aggregate principal amount of the cash dividends does not exceed more than 25%
(twenty-five percent) of Consolidated Net Income (as defined in Section 6.10)
after June 30, 2005 (or earlier if the Borrower has a rating of at least "BBB-"
and "Baa3" from S&P and Xxxxx'x, respectively).
SECTION 6.07. Transactions with Affiliates. (a) The Borrower
will not, and will not permit any of its Subsidiaries 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 (i) on terms and conditions not
in the aggregate less favorable to the Borrower or such Subsidiary than could be
obtained on an arm's-length basis if the Affiliate were an unrelated third party
(ii) pursuant to agreements with Merck and its Subsidiaries entered into in
connection with or prior to the IPO (as described in the IPO Prospectus unless
such agreement would not be material to the Borrower and its Subsidiaries, taken
as a whole, as of the date of the IPO Prospectus), (iii) transactions between or
among the Borrower and its Subsidiaries and among Subsidiaries of the Borrower
and (iv) any Restricted Payment permitted by Section 6.06.
(b) The foregoing paragraph (a) of this Section 6.07 shall not
prohibit, to the extent otherwise permitted under this Agreement, (i) any
issuance of securities, or other payments, awards or grants in cash, securities
or otherwise pursuant to, or the funding of, employment arrangements, stock
options and other benefit plans, (ii) loans or advances to
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employees of the Borrower or any Subsidiary permitted by Section 6.04, (iii)
the payment of fees and indemnities to directors, officers and employees of the
Borrower and the Subsidiaries in the ordinary course of business, and (iv) any
agreements with employees and directors entered into by the Borrower or any of
its Subsidiaries in the ordinary course of business.
SECTION 6.08. Restrictive Agreements. The Borrower will not,
and will not permit any of its Subsidiaries to, directly or indirectly, enter
into, incur or permit to exist any agreement or other arrangement 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,
by this Agreement, the Five Year Facility, the Bridge Facility and the terms of
the notes to be issued in the Notes Offering or any Refinancing Indebtedness
with respect thereto, (ii) the foregoing shall not apply to restrictions and
conditions existing on the date hereof identified on Schedule 6.08 (but shall
apply to any extension or renewal of, or any amendment or modification
materially expanding the scope of, any such restriction or condition), (iii)
the foregoing shall not apply to customary restrictions and conditions
contained in agreements relating to the sale or disposition of any assets or
Subsidiary provided such sale or disposition is permitted hereunder, (iv)
clause (a) of the foregoing shall not apply to restrictions or conditions
imposed by any agreement relating to any Lien permitted by this Agreement if
the restrictions or conditions do not apply to any property or assets other
than the property or asset subject to such Lien, (v) clause (a) of the
foregoing shall not apply to customary provisions in leases (including
prohibitions contained therein on a Lien on the lease or the property subject
to the lease) and other contracts (including restrictions on assignment) and
(vi) the foregoing shall not apply to regulatory restrictions and conditions
imposed on insurance Subsidiaries of the Borrower.
SECTION 6.09. Amendments to or Prepayments or Redemptions of
Indebtedness. The Borrower will not, nor will it permit any of its Subsidiaries
to, amend or otherwise change the terms of the Subordinated Indebtedness, if
any, or make any payment consistent with an amendment thereof or change thereto,
if the effect of such amendment or change is to increase the interest rate on
such Subordinated Indebtedness, change (to earlier dates) any dates upon which
payments of principal or interest are due thereon, change any event of default
or condition to an event of default with respect thereto (other than to
eliminate any such event of default or increase any grace period related
thereto), change the redemption, prepayment or defeasance provisions thereof,
change the subordination provisions of such Subordinated Indebtedness (or of any
guaranty thereof), or if the effect of such amendment or change, together with
all other amendments or changes made, is to increase materially the obligations
of the obligor thereunder or to confer any additional rights on the holders of
such Subordinated Indebtedness (or a trustee or other representative on their
behalf) which would be adverse to any Lender.
SECTION 6.10. Financial Covenants. (a) Leverage Covenant. The
Borrower will not, and will not permit any of its Subsidiaries to, permit the
ratio of Consolidated Total Debt to Consolidated EBITDA at any time to be
greater than 2.5.
(b) Fixed Charge Coverage Covenant. The Borrower will not
permit the ratio of (1) Consolidated EBITDA minus Consolidated Capital
Expenditures to (2) Consolidated Fixed
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Charges at any time during any test period set forth below to be less than the
ratio set forth opposite such test period below:
============================= ===============================
Test Period Fixed Charge Coverage Ratio
----------------------------- -------------------------------
2002 1.50
----------------------------- -------------------------------
2003 1.50
----------------------------- -------------------------------
2004 1.50
----------------------------- -------------------------------
2005 1.75
----------------------------- -------------------------------
2006 1.75
----------------------------- -------------------------------
2007 1.75
============================= ===============================
(c) Definitions. For purposes of this Section 6.10, the
following definitions shall apply:
(i) "Consolidated Capital Expenditures" means, for any period,
the aggregate of all expenditures by the Borrower and its
Subsidiaries for the acquisition or leasing (pursuant to a
capital lease) of fixed or capital assets or additions to
equipment (including replacements, capitalized repairs and
improvements during such period) capitalized in conformity
with GAAP on the consolidated balance sheet of the Borrower
and its Subsidiaries.
(ii) "Consolidated Current Liabilities" means, at the date of
determination, the aggregate amount of the liabilities
classified as current liabilities in conformity with GAAP as
reflected on the consolidated balance sheet of the Borrower
and its Subsidiaries as of such date, excluding the current
portion of long-term indebtedness and notes payable reflected
on such balance sheet.
(iii) "Consolidated EBITDA" means, for any period,
Consolidated Net Income for such period plus (A) without
duplication and to the extent deducted in determining such
Consolidated Net Income, the sum of (1) the aggregate amount
of Consolidated Interest Expense for such period, (2) the
aggregate amount of consolidated income tax expense for such
period, (3) all amounts attributable to depreciation and
amortization for such period and (4) any extraordinary or
non-recurring non-cash charges for such period (provided,
however, that cash expenditures in respect of charges added
back pursuant to this clause (4) shall be deducted in
determining Consolidated EBITDA for the period during which
such expenditures are made) and minus (B) any extraordinary or
non-recurring non-cash gains for such period.
(iv) "Consolidated Fixed Charges" means, for any period, the
sum of, without duplication, (A) Consolidated Interest Expense
for such period and (B) the scheduled principal amortization
payments made on all Indebtedness (excluding payments pursuant
to a revolving credit facility or of the occurrence of the
scheduled termination date thereunder) by the Borrower and its
Subsidiaries during such period.
(v) "Consolidated Interest Expense" means, for any period, the
interest expense (including imputed interest expense in
respect of capital lease obligations, but excluding premiums,
transaction expenses, discounts and other amortized
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amounts), without deduction of interest income, reflected
on the onsolidated statement of income of the Borrower and its
Subsidiaries for such period in conformity with GAAP.
(vi) "Consolidated Net Income" means, for any period, the
amount of net income reflected on the consolidated statement
of income of the Borrower and its Subsidiaries for such period
in conformity with GAAP.
(vii) "Consolidated Net Tangible Assets" means, as of the date
of determination, the aggregate amount of all assets reflected
on the consolidated balance sheet of the Borrower and its
Subsidiaries as of such date in conformity with GAAP. less, to
the extent reflected on such balance sheet: (A) Consolidated
Current Liabilities; (B) intangibles; and (C) goodwill,
including any amounts (however designated on the balance
sheet) representing the cost of acquisitions of Subsidiaries
in excess of underlying tangible assets.
(viii) "Consolidated Total Debt" means, as of the date of
determination, the aggregate amount of indebtedness reflected
on the consolidated balance sheet of the Borrower and its
Subsidiaries as of such date in conformity with GAAP, plus,
without duplication, "synthetic leases", letters of credit (to
the extent drawn and not reimbursed) and the face amount of
the accounts receivable outstanding under any Accounts
Receivable Financing Programs unless amounts outstanding
thereunder are reflected as indebtedness on the consolidated
balance sheet of the Borrower and its Subsidiaries.
(d) In calculating the ratios set forth in Section 6.10(a) and
(b), pro forma effect shall be given to any acquisitions or dispositions that
occur during the applicable reference period, or thereafter and on or prior to
the reporting date with respect thereto, as if they had occurred on the first
day of the applicable reference period or as of the last day of the applicable
quarter, as the case may be.
ARTICLE VII
EVENTS OF DEFAULT
If any of the following events ("Events of Default") shall
occur:
(a) the Borrower shall fail to pay any principal of any Loan
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 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 or any Transaction
Documents, when and as the same shall become due and payable, and such
failure shall continue unremedied for a period of five days;
(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 modification hereof or waiver
hereunder, or in any report, certificate, financial statement or other
document furnished pursuant to or in connection with this Agreement
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or any amendment or modification hereof or waiver hereunder, shall
prove to have been incorrect in any material respect (except that, to
the extent any such representation or warranty is qualified by
materiality or Material Adverse Effect, such representation or warranty
shall prove to have been incorrect in any respect) when made or deemed
made;
(d) the Borrower shall fail to observe or perform any
covenant, condition or agreement contained in Sections 5.03 (with
respect to the Borrower's existence) or 5.06(b), 5.08 or in Article VI;
(e) the Borrower shall fail to observe or perform any
covenant, condition or agreement contained in Section 5.02, and such
failure shall continue unremedied for a period of 10 days after the
Borrower becomes aware of such failure;
(f) the Borrower shall fail to observe or perform any
covenant, condition or agreement contained in this Agreement (other
than those specified in clause (a), (b), (d) or (e) 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);
(g) 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;
(h) any event or condition occurs that results in any Material
Indebtedness becoming due prior to its scheduled maturity, other than
at the election of the Borrower or any Subsidiary, or that, subject to
any applicable grace period, 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;
(i) 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
Significant Subsidiary or the debts thereof, or a substantial part of
the assets thereof, 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 Significant
Subsidiary or for a substantial part of the assets thereof, 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;
(j) the Borrower or any Significant 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 VII, (iii) apply for or consent
to the appointment of a receiver, trustee, custodian,
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sequestrator, conservator or similar official for the Borrower or any
Significant 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;
(k) the Borrower or any Significant Subsidiary shall become
unable, admit in writing its inability or fail generally to pay its
debts as they become due;
(l) one or more judgments for the payment of money in an
aggregate amount in excess of $25,000,000 (twenty-five million dollars)
(except to the extent covered by insurance or other right of
reimbursement or indemnification) shall be rendered against the
Borrower, any Subsidiary or any combination thereof and the same shall
remain undischarged for a period of 60 consecutive days during which
execution shall not be effectively stayed;
(m) an ERISA Event shall have occurred and shall be
outstanding that, when taken together with all other ERISA Events that
have occurred and are then outstanding, would reasonably be expected to
result in liability of the Borrower and its Subsidiaries in an
aggregate amount exceeding (i) $25,000,000 (twenty-five million
dollars), individually or in the aggregate;
(n) any of the following shall occur:
(i) the managed care agreement between Merck and the
Borrower does not remain in full force and effect;
(ii) the Borrower shall have breached, on one or more
occasions, its obligations under such managed care
agreement;
(iii) such managed care agreement shall be amended; or
(iv) Merck exercises its privilege to withdraw its
products from the terms of such managed care agreement;
and any such failure to remain in full force and effect, breach,
amendment or withdrawal would, individually or in the aggregate, be
reasonably expected to result in a Material Adverse Effect; provided,
however, that, under this Agreement, in determining whether or not a
Material Adverse Effect would be reasonably expected to result from
such termination, breach, amendment or withdrawal consideration shall
be given by the parties to any attempt to mitigate the effects of such
termination, breach, amendment or withdrawal; or
(o) a Change in Control shall occur;
then, and in every such event (other than an event with respect to the Borrower
described in clause (i) or (j) of this Article VII), and at any time thereafter
during the continuance of such event, the Administrative Agent may, and at the
request of the Required Lenders shall, by notice to the Borrower, take either or
both of the following actions, at the same or different times: (i)
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terminate the Lenders' Total Commitments, and thereupon such Total Commitments
shall terminate immediately, and (ii) declare the Loans then outstanding to be
due and payable in whole (or in part, in which case any principal not so
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 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 in case of any event with
respect to the Borrower described in clause (i) or (j) of this Article VII, the
Lenders' Total 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 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.
ARTICLE VIII
THE ADMINISTRATIVE AGENT
Each of the Lenders 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 herein. 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 hereby that the
Administrative Agent is required to exercise in writing as directed by the
Required Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 9.02), and (c) except
as expressly set forth herein, 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 9.02) or in the
absence of its own gross negligence or wilful misconduct. The 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 the Borrower 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 this Agreement, (ii) the contents of any
certificate, report or other document delivered hereunder or in connection
herewith, (iii) the performance or observance of any of the covenants,
agreements or other terms
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or conditions set forth herein, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement or any other agreement,
instrument or document, or (v) the satisfaction of any condition set forth in
Article IV or elsewhere herein, 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 the Borrower), 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 and the Borrower. Upon any such
resignation, the Required Lenders shall have the right to appoint a successor,
subject to the approval of the Borrower not to be unreasonably withheld,
provided that such consent shall not be required if the Borrower is then in
Default. 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, then the retiring
Administrative Agent may, on behalf of the Lenders, appoint a successor
Administrative Agent, subject to the approval of the Borrower not to be
unreasonably withheld so long as the Borrower is not then in Default, 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 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 9.03 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
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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 related agreement or any document furnished hereunder or thereunder.
ARTICLE IX
MISCELLANEOUS
SECTION 9.01. Notices. (a) Except in the case of notices and
other communications expressly permitted to be given by telephone (and subject
to paragraph (b) below), 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:
(i) if to the Borrower, to it at 000 Xxxxxxx Xxxx Xxxxx,
Xxxxxxxx Xxxxx, Xxx Xxxxxx 00000, Attention of Chief Financial Officer
(Telecopy No. (000) 000-0000);
(ii) if to the Administrative Agent, to JPMorgan Chase Bank,
Loan and Agency Services Group, One Chase Xxxxxxxxx Xxxxx, 0xx Xxxxx,
Xxx Xxxx, Xxx Xxxx 00000, Attention of Xxxx Xxxxxx (Telecopy No. (212)
552-7500), with a copy to JPMorgan Chase Bank, 000 Xxxx Xxxxxx, Xxx
Xxxx 00000, Attention of Xxxx Xxx Xxx (Telecopy No. (000) 000-0000);
and
(iii) if to any other Lender, to it at its address (or
telecopy number) set forth in its Administrative Questionnaire.
(b) Notices and other communications to the Lenders hereunder
may be delivered or furnished by electronic communications, and not by telecopy,
pursuant to procedures approved by the Administrative Agent; provided that the
foregoing shall not apply to notices pursuant to Article II unless otherwise
agreed by the Administrative Agent and the applicable Lender. The Administrative
Agent or the Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications, and not by
telecopy, pursuant to procedures approved by it; provided that approval of such
procedures may be limited to particular notices or communications.
(c) 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 9.02. Waivers; Amendments. (a) No failure or delay by
the Administrative Agent or any Lender in exercising any right or power
hereunder 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 and the Lenders hereunder are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver of
any provision of this Agreement or consent to any departure by the Borrower
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
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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 shall not
be construed as a waiver of any Default, regardless of whether the
Administrative Agent or any Lender may have had notice or knowledge of such
Default at the time.
(b) Neither this Agreement nor any provision hereof may be
waived, amended or modified except pursuant to an agreement or agreements in
writing entered into by the Borrower and the Required Lenders or by the Borrower
and the Administrative Agent with the consent of the Required Lenders; provided
that no such agreement shall (i) increase the Revolving Credit Commitment of
any Lender without the written consent of such Lender, (ii) reduce the
principal amount of any Loan or reduce the rate of interest thereon, or reduce
any fees payable hereunder, without the written consent of each Lender affected
thereby, (iii) postpone the Maturity Date or the scheduled date of payment of
any interest on any Loan, or any fees or any other amounts payable hereunder,
or reduce the amount of, waive or excuse any such payment, or postpone the
scheduled date of expiration of any Revolving Credit Commitment, without the
written consent of each Lender affected thereby, (iv) change Section 2.14(b) or
(c) in a manner that would alter the pro rata sharing of payments required
thereby, without the written consent of each Lender affected thereby, or (v)
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 hereunder or make any
determination or grant any consent hereunder, 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 hereunder
without the prior written consent of the Administrative Agent; provided,
further, that the Administrative Agent and the Borrower may, with the consent
of the other, amend, modify or supplement this Agreement to to cure any
ambiguity, typographical error, defect or inconsistency, so long as such
amendment, modification or supplement does not adversely affect the rights of
any Lender.
SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The
Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the
Administrative Agent, the Joint Lead Arrangers and each Related Party of any of
the foregoing Persons, including the reasonable fees, charges and disbursements
of counsel, expenses incurred in connection with due diligence and travel,
courier, reproduction, printing and delivery expenses) of the Joint Lead
Arrangers in connection with the arrangement and syndication of the credit
facilities provided for herein, the preparation, execution, delivery and
administration of this Agreement or any amendments, waivers, modifications,
waivers or extensions (including amendments, waivers, modifications or
extensions proposed by the Borrower) of the provisions hereof (whether or not
the transactions contemplated hereby or thereby shall be consummated), provided
that the Borrower shall not be required to pay any fees and expenses incurred by
the Administrative Agent, the Joint Lead Arrangers, any Lender or any other
Related Parties incurred in connection with an assignment or participation of
any rights or obligations of a Lender hereunder unless initiated by the Borrower
under Section 2.16(b) other than as a result of a default by the Lender; and
(ii) all reasonable out-of-pocket expenses incurred by the Administrative Agent,
any Lender or the Joint Lead Arrangers, including the fees, charges and
disbursements of any counsel (including the reasonable allocated cost of
in-house counsel) for the Administrative Agent, any Lender or the Joint Lead
Arrangers, in connection with the enforcement of its rights under this Agreement
or the Transaction Documents, including its rights under this Section or in
connection with the Loans made hereunder, including all such out-of-pocket
expenses incurred in connection with any
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workout proceedings, enforcement costs and documentary taxes or negotiations in
respect of such Loans.
(b) The Borrower shall indemnify the Administrative Agent,
each Lender and the Joint Lead Arrangers, 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 and all reasonable out-of pocket costs,
losses, claims, damages, liabilities and related expenses, including the
reasonable fees, charges and disbursements of any counsel for any Indemnitee,
incurred by or asserted against any Indemnitee arising out of, in connection
with any actual or threatened third-party claim, litigation, investigation or
proceeding (a "Third-Party Claim"), whether based on contract, tort or any other
theory and regardless of whether any Indemnitee is a party thereto, relating to
(i) the execution or delivery of this Agreement or any agreement or instrument
contemplated hereby, the performance by the parties hereto of their respective
obligations hereunder or the consummation of the Transactions or any other
transactions contemplated hereby, (ii) any Loan or the use of the proceeds
therefrom or (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; provided that the foregoing indemnity shall
not, as to any Indemnitee, be available to the extent that such losses, claims,
damages, liabilities or related expenses are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence, willful misconduct or bad faith of such Indemnitee. Upon receipt of
notice of any Third-Party Claim, the Indemnitee shall promptly notify the
Borrower thereof. The Borrower, in its sole discretion, upon written notice of
the Indemnitee(s), may elect to defend (or may at any time assume the defense
of) and may, with the consent of the Indemnitee(s) (such consent not to be
unreasonably withheld), settle or compromise any such Third-Party Claim, using
counsel appointed by Borrower, which counsel shall be reasonably satisfactory to
the Indemnitee if such settlement or compromise would result in the full release
of Indemnitee from any liability arising thereof, or with the consent of the
Indemnitee (not to be unreasonably withheld). No Indemnitee may compromise or
settle or consent to the entry of judgment or determination of liability with
respect to a Third-Party Claim for which it is seeking indemnification hereof,
without the consent of Borrower.
(c) To the extent that the Borrower fails to pay any amount
required to be paid by it to the Administrative Agent under paragraph (a) or (b)
of this Section, each Lender severally agrees to pay to the Administrative
Agent such Lender's Applicable 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 in its capacity as such.
(d) To the extent permitted by applicable law, the Borrower
shall not assert, and hereby waives, any claim against any Indemnitee, on any
theory of liability, for special, indirect, consequential or punitive damages
(as opposed to direct or actual damages) arising out of, in connection with, or
as a result of, this Agreement or any agreement or instrument contemplated
hereby, the Transactions, any Loan or the use of the proceeds thereof.
(e) All amounts due under this Section shall be payable
promptly after written demand therefor.
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SECTION 9.04. 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, except that
(i) the Borrower may not assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of each Lender (and any
such attempted assignment or transfer by the Borrower without such consent shall
be null and void) and (ii) no Lender may assign or otherwise transfer its
rights or obligations hereunder except in accordance with this Section. 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, Participants (to the extent provided in paragraph (c) of this
Section) and, to the extent expressly contemplated hereby, the Related Parties
of each of the Administrative Agent and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement.
(b) (i) Subject to the conditions set forth in paragraph
(b)(ii) below, 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 Total Commitments and the Loans at the time owing to it) with the prior
written consent (such consent not to be unreasonably withheld) of:
(A) the Borrower, provided that no consent of the
Borrower shall be required (1) for an assignment to a Lender, an
Affiliate of a Lender, an Approved Fund (as defined below), (2) if an
Event of Default under clause (a), (b), (i) or (j) of Article VII has
occurred and is continuing, any other assignee or (3) if a breach of
Section 6.10(a) or 6.10(b) has occurred and is continuing; and
(B) the Administrative Agent, provided that no consent of
the Administrative Agent shall be required (1) for an assignment to an
assignee that is a Lender, an Affiliate of a Lender or a Federal
Reserve Bank, immediately prior to giving effect to such assignment,
(2) if an Event of Default under clause (i) or (j) of Article VII has
occurred and is continuing, any other assignee or (3) if a breach of
Section 6.10(a) or (b) has occurred and is continuing.
(ii) Assignments shall be subject to the following additional
conditions:
(A) 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 Total Commitment, the amount of the Total
Commitment of the assigning Lender subject to each such assignment
(determined as of the date the Assignment and Assumption with respect
to such assignment is delivered to the Administrative Agent) shall not
be less than $5,000,000 (five million dollars) unless each of the
Borrower and the Administrative Agent otherwise consent, provided that
no such consent of the Borrower shall be required if an Event of
Default under clause (a), (b), (i) or (j) of Article VII has occurred
and is continuing;
(B) each partial assignment shall be made as an
assignment of a proportionate part of all an assigning Lender's
rights and obligations under this Agreement;
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(C) the parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Assumption,
together with a processing and recordation fee of $3,500;
(D) the assignee, if it shall not be a Lender, shall
deliver to the Administrative Agent an Administrative Questionnaire;
and
(E) in the case of an assignment to a CLO (as defined
below), the assigning Lender shall retain the sole right to approve any
amendment, modification or waiver of any provision of this Agreement,
provided that the Assignment and Assumption between such Lender and
such CLO may provide that such Lender will not, without the consent of
such CLO, agree to any amendment, modification or waiver described in
the first proviso to Section 9.02(b) that affects such CLO.
For the purposes of this Section 9.04(b), the terms "Approved
Fund" and "CLO" have the following meanings:
"Approved Fund" means (a) a CLO and (b) with respect to any
Lender that is a fund which invests in bank loans and similar
extensions of credit, any other fund that invests in bank loans and
similar extensions of credit and is managed by the same investment
advisor as such Lender or by an Affiliate of such investment advisor.
"CLO" means any entity (whether a corporation, partnership,
trust or otherwise) that is engaged in making, purchasing, holding or
otherwise investing in bank loans and similar extensions of credit in
the ordinary course of its business and is administered or managed by
a Lender or an Affiliate of such Lender.
(iii) Subject to acceptance and recording thereof pursuant to
paragraph (b)(iv) of this Section 9.04, from and after the effective
date specified in each Assignment and Assumption the assignee
thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such
Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering
all of the assigning Lender's rights and obligations under this
Agreement, such Lender shall cease to be a party hereto but shall
continue to be entitled to the benefits of Sections 2.11, 2.12, 2.13
and 9.03). Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this Section
9.04 shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance
with paragraph (c) of this Section 9.04.
(iv) The Administrative Agent, acting for this purpose as an
agent of the Borrower, shall maintain at one of its offices a copy of
each Assignment and Assumption delivered to it and a register for the
recordation of the names and addresses of the Lenders, and principal
amount of the Loans owing to, each Lender pursuant to the terms hereof
from time to time (the "Register"). The entries in the Register shall
be conclusive, and the Borrower, the Administrative Agent 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
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to the contrary. The Register shall be available for inspection by the
Borrower and any Lender, at any reasonable time and from time to time
upon reasonable prior notice.
(v) Upon its receipt of a duly completed Assignment and
Assumption executed by an assigning Lender and an assignee, the
assignee's completed Administrative Questionnaire (unless the assignee
shall already be a Lender hereunder), the processing and recordation
fee referred to in paragraph (b)(ii)(C) of this Section 9.04 and any
written consent to such assignment required by paragraph (b)(i) of this
Section 9.04, the Administrative Agent shall accept such Assignment and
Assumption and record the information contained therein in the
Register. No assignment shall be effective for purposes of this
Agreement unless it has been recorded in the Register as provided in
this paragraph.
(c) (i) Any Lender may, without the consent of the Borrower or
the Administrative Agent, sell participations to one or more banks or other
entities (a "Participant") in all or a portion of such Lender's rights and
obligations under this Agreement (including all or a portion of its Total
Commitment and the Loans owing to it); provided that (A) such Lender's
obligations under this Agreement shall remain unchanged, (B) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations arising from such participations so sold by such Lender and
(C) the Borrower, the Administrative Agent 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 9.02(b) that affects such
Participant. Subject to paragraph (c)(ii) of this Section 9.04, the Borrower
agrees that each Participant shall be entitled to the benefits of Sections
2.12, 2.13 and 2.14 to the same extent as if it were a Lender and had acquired
its interest by assignment pursuant to paragraph (b) of this Section 9.04. To
the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 9.08 as though it were a Lender, provided that such
Participant agrees to be subject to Section 2.15(c) as though it were a Lender.
(ii) A Participant shall not be entitled to receive any
greater payment under Section 2.12, 2.13 or 2.14 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 2.14 unless the Borrower is notified of the participation sold to such
Participant and such Participant agrees, for the benefit of the Borrower, to
comply with Section 2.14(e) as though it were a Lender.
(d) Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement to secure
obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank, and this Section shall not apply to any
such pledge or assignment of a security interest; provided that no such pledge
or assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such Lender
as a party hereto.
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SECTION 9.05. Survival. All covenants, agreements,
representations and warranties made by the Borrower herein and in the
certificates or other instruments delivered in connection with or pursuant to
this Agreement shall be considered to have been relied upon by the other parties
hereto and shall survive the execution and delivery of this Agreement and the
making of any Loans, regardless of any investigation made by any such other
party or on its behalf and notwithstanding that the Administrative Agent 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 and so long as the Commitments have not
expired or terminated. The provisions of Sections 2.12, 2.13, 2.14 and 9.03 and
Article VIII 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 Commitments or the termination of
this Agreement or any provision hereof.
SECTION 9.06. 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. This Agreement 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 hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. 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 9.07. 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 9.08. 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) at any time held and other obligations at
any time owing by such Lender or Affiliate to or for the credit or the account
of the Borrower against any of and all the obligations of the Borrower 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. The rights of each Lender under this
Section 9.08 are in addition to other rights and remedies (including other
rights of setoff) which such Lender may have.
SECTION 9.09. Governing Law; Jurisdiction; Consent to Service
of Process. This Agreement shall be construed in accordance with and governed
by the law of the State of New York.
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(b) The 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 of 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 for recognition or enforcement of any judgment,
and each of the parties hereto hereby irrevocably and unconditionally agrees
that all claims in respect of any such action or proceeding may be heard and
determined in such New York State or, to the extent permitted by law, in such
Federal court. Each of the parties hereto agrees that a final judgment in any
such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement shall affect any right that the Administrative Agent
or any Lender may otherwise have to bring any action or proceeding relating to
this Agreement against the Borrower or its properties in the courts of any
jurisdiction.
(c) The Borrower hereby irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection which it may now or hereafter have to the laying of venue of any suit,
action or proceeding arising out of or relating to this Agreement in any court
referred to in paragraph (b) of this Section. 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 9.01. Nothing
in this Agreement will affect the right of any party to this Agreement to serve
process in any other manner permitted by law.
SECTION 9.10. 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 THE TRANSACTIONS CONTEMPLATED HEREBY (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.
SECTION 9.11. 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 9.12. Confidentiality. (a) Each of the Administrative
Agent 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
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subpoena or similar legal process, (d) to any other party to this Agreement,
(e) in connection with the exercise of any remedies hereunder or any suit,
action or proceeding relating to this Agreement or the enforcement of rights
hereunder, (f) subject to an agreement containing provisions substantially the
same as those of this Section, to (i) any assignee of or Participant in, any of
its rights or obligations under this Agreement or (ii) any actual or
prospective counterparty (or its advisors) to any swap or derivative
transaction relating to the Borrower and its obligations, (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 9.12 or (ii)
becomes available to the Administrative Agent or any Lender on a
nonconfidential basis from a source other than the Borrower or any of its
Affiliates. For the purposes of this paragraph, "Information" means all
information received from the Borrower or any of its Affiliates relating to the
Borrower or its business in connection with the facilities for the Loans in
connection with the performance by the Administrative Agent and the Lenders,
other than any such information that is available to the Administrative Agent
or any Lender on a nonconfidential basis prior to disclosure by the Borrower or
any of its Affiliates; provided that, in the case of information received from
the Borrower after the date hereof, such information is clearly identified at
the time of delivery as confidential. Any Person required to maintain the
confidentiality of Information as provided in this paragraph 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.
Notwithstanding the foregoing, nothing in this paragraph shall be deemed to (1)
restrict or affect the rights or ability of the Administrative Agent or the
Lenders to comply with all applicable disclosure laws, regulations and
principles in connection with the IPO, the Notes Offering or related
transactions, (2) restrict the ability of the Administrative Agent or the
Lenders to share information with underwriters participating in the IPO, the
Notes Offering or related transactions, (3) prevent the Administrative Agent or
the Lenders from retaining documents or other information in connection with
due diligence, including any documents or other information disclosed to the
Administrative Agent or the Lenders in connection with the transactions
contemplated hereby, (4) restrict or affect the rights or ability of the
Administrative Agent or the Lenders to use any such documents or other
information in investigating or defending itself against allegations or claims
made or threatened by purchasers, regulatory authorities or others in
connection with the IPO, the Notes Offering or related transactions, or (5)
prevent the Administrative Agent or the Lenders from disclosing any
confidential information required to be disclosed by an applicable statute,
rule, regulation or other legal requirement in connection with or arising out
of the IPO, the Notes Offering or related transactions.
(b) Notwithstanding the provisions of Section 9.12(a), the
letter of confidentiality, dated the date hereof, between Xxxxxxx Xxxxx Credit
Partners L.P. and the Borrower, Xxxxxxx Sachs Credit Partners L.P. shall be
bound by the limitation on use and disclosure obligations contained therein in
lieu of the provisions of Section 9.12(a).
SECTION 9.13. 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 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
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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 at the
Federal Funds Effective Rate to the date of repayment, shall have been received
by such Lender.
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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.
MEDCO HEALTH SOLUTIONS, INC.
By _________________________
Name:
Title:
JPMORGAN CHASE BANK, individually and as
Administrative Agent
By _________________________
Name:
Title:
[OTHER BANKS]
By _________________________
Name:
Title:
