BRIDGE CREDIT AGREEMENT
Dated as of November 10, 2006
SNAP-ON
INCORPORATED, a Delaware corporation (the “ Borrower
”), the banks, financial institutions and other institutional
lenders (the “ Initial Lenders ”) listed on the
signature pages hereof, CITIGROUP GLOBAL MARKETS INC., as sole lead
arranger and book manager, and CITIBANK, N.A. (“
Citibank ”), as administrative agent (the “
Agent ”) for the Lenders (as hereinafter defined),
agree as follows:
ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
SECTION
1.01. Certain Defined Terms .
As
used in this Agreement, the following terms shall have the
following meanings (such meanings to be equally applicable to both
the singular and plural forms of the terms defined):
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“
Acquisition ” means the consummation of the
transactions contemplated by that certain Stock and Asset Purchase
Agreement dated as of October 20, 2006 between ProQuest Company, a
Delaware corporation, and the Borrower.
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“
Advance ” means an advance by a Lender to the Borrower
as part of a Borrowing and refers to a Base Rate Advance or a
Eurodollar Rate Advance (each of which shall be a “
Type ” of Advance).
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“
Affiliate ” means, as to any Person, any other Person
that, directly or indirectly, controls, is controlled by or is
under common control with such Person or is a director or officer
of such Person. For purposes of this definition, the term
“control” (including the terms
“controlling”, “controlled by” and
“under common control with”) of a Person means the
possession, direct or indirect, of the power to vote 5% or more of
the Voting Stock of such Person or to direct or cause the direction
of the management and policies of such Person, whether through the
ownership of Voting Stock, by contract or otherwise.
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“
Agent’s Account ” means the account of the Agent
maintained by the Agent at Citibank at its office at 388 Greenwich
Street, New York, New York 10013, Account No. 36852248,
Attention: Bank Loan Syndications or such other account of the
Agent as is designated in writing from time to time by the Agent to
the Borrower and the Lenders for such purpose.
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“
Applicable Lending Office ” means, with respect to
each Lender, such Lender’s Domestic Lending Office in the
case of a Base Rate Advance and such Lender’s Eurodollar
Lending Office in the case of a Eurodollar Rate Advance.
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“
Applicable Margin ” means (a) for Base Rate Advances,
0% per annum and (b) for Eurodollar Rate Advances, as of any date,
a percentage per annum determined by reference to the Public Debt
Rating in effect on such date as set forth below:
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Public Debt Rating
S&P/Moody’s
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Applicable Margin for
Eurodollar Rate Advances
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Level
1
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AA- or Aa2 or
above
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0.150%
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Level
2
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A+ or
A1
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0.140%
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Level
3
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A or
A2
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0.180%
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Level
4
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A- or
A3
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0.215%
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Level
5
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BBB+ or
Baa1
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0.375%
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Level
6
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Lower than
Level 5
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0.550%
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“
Applicable Percentage ” means, as of any date, a
percentage per annum determined by reference to the Public Debt
Rating in effect on such date as set forth below:
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Public Debt Rating
S&P/Moody’s
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Applicable
Percentage
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Level
1
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AA- or Aa2 or
above
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0.050%
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Level
2
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A+ or
A1
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0.060%
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Level
3
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A or
A2
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0.070%
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Level
4
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A- or
A3
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0.085%
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Level
5
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BBB+ or
Baa1
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0.125%
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Level
6
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Lower than
Level 5
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0.150%
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“
Applicable Utilization Fee ” means, as of any date
that the aggregate Advances exceed 33% of the aggregate
Commitments, a percentage per annum determined by reference to the
Public Debt Rating in effect on such date as set forth
below:
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Public Debt Rating
S&P/Moody’s
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Applicable
Utilization Fee
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Level
1
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AA- or Aa2 or
above
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0.050%
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Level
2
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A+ or
A1
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0.100%
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Level
3
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A or
A2
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0.100%
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Level
4
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A- or
A3
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0.100%
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Level
5
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BBB+ or
Baa1
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0.125%
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Level
6
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Lower than
Level 5
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0.150%
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“
Assignment and Acceptance ” means an assignment and
acceptance entered into by a Lender and an Eligible Assignee, and
accepted by the Agent, in substantially the form of Exhibit C
hereto.
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“
Base Rate ” means a fluctuating interest rate per
annum in effect from time to time, which rate per annum shall at
all times be equal to the highest of:
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(a)
the rate of interest announced publicly by Citibank in
New York, New York, from time to time, as
Citibank’s base rate;
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(b)
the sum (adjusted to the nearest 1/4 of 1% or, if there is no
nearest 1/4 of 1%, to the next higher 1/4 of 1%) of (i) ½
of 1% per annum, plus (ii) the rate obtained by
dividing (A) the latest three-week moving average of secondary
market morning offering rates in the United States for three-month
certificates of deposit of major United States money market banks,
such three-week moving average (adjusted to the basis of a year of
360 days) being determined weekly on each Monday (or, if such day
is not a Business Day, on the next succeeding Business Day) for the
three-week period ending on the previous Friday by Citibank on the
basis of such rates reported by certificate of deposit dealers to
and published by the Federal Reserve Bank of New York or, if
such publication shall be suspended or terminated, on the basis of
quotations for such rates received by Citibank from three
New York certificate of deposit dealers of recognized standing
selected by Citibank, by (B) a percentage equal to 100% minus
the average of the daily percentages specified during such
three-week period by the Board of Governors of the Federal Reserve
System (or any successor) for determining the maximum reserve
requirement (including, but not limited to, any emergency,
supplemental or other marginal reserve requirement) for Citibank
with respect to liabilities consisting of or including (among other
liabilities) three-month U.S. dollar non-personal time deposits in
the United States, plus (iii) the average during such
three-week period of the annual assessment rates estimated by
Citibank for determining the then current annual assessment payable
by Citibank to the Federal Deposit Insurance Corporation (or any
successor) for insuring U.S. dollar deposits of Citibank in the
United States; and
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(c)
½ of one percent per annum above the Federal Funds
Rate.
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“
Base Rate Advance ” means an Advance that bears
interest as provided in Section 2.07(a)(i).
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“
Borrowing ” means a borrowing consisting of
simultaneous Advances of the same Type made by each of the Lenders
pursuant to Section 2.01.
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Business Day ” means a day of the year on which banks
are not required or authorized by law to close in New York
City and, if the applicable Business Day relates to any Eurodollar
Rate Advances, on which dealings are carried on in the London
interbank market.
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“
Commitment ” means as to any Lender (a) the
amount set forth opposite such Lender’s name on Schedule I
hereto or (b) if such Lender has entered into any Assignment
and Acceptance, the amount set forth for such Lender in the
Register maintained by the Agent pursuant to Section 8.07(d),
as such amount may be reduced pursuant to
Section 2.05.
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Confidential Information ” means information that the
Borrower furnishes (or is furnished on behalf of the Borrower) to
the Agent or any Lender, but does not include any such information
that is or becomes generally available to the public or that is or
becomes available to the Agent or such Lender from a source other
than the Borrower (or a Person furnishing information on behalf of
the Borrower) that is not, to the knowledge of the Agent or such
Lender, acting in violation of a confidentiality agreement with the
Borrower.
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Consolidated ”refers to the consolidation of accounts
in accordance with GAAP.
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“
Convert ”, “ Conversion ” and
“ Converted ” each refers to a conversion of
Advances of one Type into Advances of the other Type pursuant to
Section 2.08 or 2.09.
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Debt ”of any Person means, without duplication (other
than, for purposes of Section 6.01(d), any of the following owed to
the Borrower or any of its wholly-owned Subsidiaries), (a) all
indebtedness of such Person for borrowed money, (b) all
obligations of such Person for the deferred purchase price of
property or services (other than (i) trade and similar accounts
payables that (x) are not overdue by more than 120 days incurred in
the ordinary course of such Person’s business or (y) are
being contested in good faith by appropriate proceedings and as to
which appropriate reserves are being maintained, (ii) accrued
expenses arising in the ordinary course of business, employee
compensation and pension obligations and other obligations arising
from employee benefit agreements and programs, (iii) earn-outs and
holdbacks and (iv) customer advances), (c) all obligations of
such Person evidenced by notes, bonds, debentures or other similar
instruments, (d) all obligations of such Person created or
arising under any conditional sale or other title retention
agreement with respect to property acquired by such Person (even
though the rights and remedies of the seller or lender under such
agreement in the event of default are limited to repossession or
sale of such property), (e) all obligations of such Person as
lessee under leases that have been or should be, in accordance with
GAAP, recorded as capital leases, (f) all obligations,
contingent or otherwise, of such Person in respect of acceptances,
letters of credit or similar extensions of credit, (g) all net
obligations of such Person in respect of Hedge Agreements,
(h) all Debt of others referred to in clauses (a) through
(g) above or clause (i) below guaranteed directly or
indirectly in any manner by such Person, or in effect guaranteed
directly or indirectly by such Person through an agreement
(1) to pay or purchase such Debt or to advance or supply funds
for the payment or purchase of such Debt, (2) to purchase,
sell or lease (as lessee or lessor) property, or to purchase or
sell services, primarily for the purpose of enabling the debtor to
make payment of such Debt or to assure the holder of such Debt
against loss, (3) to supply funds to or in any other manner
invest in the debtor (including any agreement to pay for property
or services irrespective of whether such property is received or
such services are rendered) or (4) otherwise to assure a
creditor against loss, provided that, if the guaranty or
other agreement provides for limited recourse to such Person for
such Debt, it shall be taken into account only to the extent of
such recourse, and (i) all Debt referred to in
clauses (a) through (h) above secured by (or for which
the holder of such Debt has an existing right, contingent or
otherwise, to be secured by) any Lien on property (including,
without limitation, accounts and contract rights) owned by such
Person, even though such Person has not assumed or become liable
for the payment of such Debt, provided that, if such Person
has not assumed or become liable for the payment of such Debt, it
shall be taken into account only to the extent of the book value or
fair market value, whichever is greater, of the property subject to
such Lien; provided , further , however , that
the term “Debt”shall not include obligations incurred
in connection with a Permitted Receivables Financing.
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Default ” means any Event of Default or any event that
would constitute an Event of Default but for the requirement that
notice be given or time elapse or both.
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Disclosed Litigation ” has the meaning specified in
Section 3.01(b).
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Domestic Lending Office ” means, with respect to any
Lender, the office of such Lender specified as its “Domestic
Lending Office” opposite its name on Schedule I hereto
or in the Assignment and Acceptance pursuant to which it became a
Lender, or such other office of such Lender as such Lender may from
time to time specify to the Borrower and the Agent.
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“
Effective Date ” has the meaning specified in
Section 3.01.
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Eligible Assignee ” means (i) a Lender;
(ii) an Affiliate of a Lender; and (iii) any other Person
approved by the Agent and, unless an Event of Default has occurred
and is continuing at the time any assignment is effected in
accordance with Section 8.07, the Borrower, such approval not to be
unreasonably withheld or delayed; provided , however
, that neither the Borrower nor an Affiliate of the Borrower shall
qualify as an Eligible Assignee.
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Environmental Action ” means any action, suit, demand,
demand letter, claim, notice of non-compliance or violation, notice
of liability or potential liability, investigation, proceeding,
consent order or consent agreement relating in any way to any
Environmental Law, Environmental Permit or Hazardous Materials or
arising from alleged injury or threat of injury to health, safety
or the environment, including, without limitation, (a) by any
governmental or regulatory authority for enforcement, cleanup,
removal, response, remedial or other actions or damages and
(b) by any governmental or regulatory authority or any third
party for damages, contribution, indemnification, cost recovery,
compensation or injunctive relief.
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Environmental Law ” means any federal, state, local or
foreign statute, law, ordinance, rule, regulation, code, order,
judgment, decree or judicial or agency interpretation, policy or
guidance relating to pollution or protection of the environment,
health, safety or natural resources, including, without limitation,
those relating to the use, handling, transportation, treatment,
storage, disposal, release or discharge of Hazardous
Materials.
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Environmental Permit ” means any permit, approval,
identification number, license or other authorization required
under any Environmental Law.
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ERISA ” means the Employee Retirement Income Security
Act of 1974, as amended from time to time, and the regulations
promulgated and rulings issued thereunder.
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ERISA Affiliate ” means any Person that for purposes
of Title IV of ERISA is a member of the Borrower’s
controlled group, or under common control with the Borrower, within
the meaning of Section 414 of the Internal Revenue
Code.
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ERISA Event ” means (a) (i) the occurrence of a
reportable event, within the meaning of Section 4043 of ERISA,
with respect to any Plan unless the 30-day notice requirement with
respect to such event has been waived by the PBGC, or (ii) the
requirements of subsection (1) of Section 4043(b) of ERISA (without
regard to subsection (2) of such Section) are met with a
contributing sponsor, as defined in Section 4001(a)(13) of ERISA,
of a Plan, and an event described in paragraph (9), (10),
(11), (12) or (13) of Section 4043(c) of ERISA is reasonably
expected to occur with respect to such Plan within the following 30
days; (b) the application for a minimum funding waiver with
respect to a Plan; (c) the provision by the administrator of
any Plan of a notice of intent to terminate such Plan pursuant to
Section 4041(a)(2) of ERISA (including any such notice with
respect to a plan amendment referred to in Section 4041(e) of
ERISA); (d) the cessation of operations at a facility of the
Borrower or any ERISA Affiliate in the circumstances described in
Section 4062(e) of ERISA; (e) the withdrawal by the
Borrower or any ERISA Affiliate from a Multiple Employer Plan
during a plan year for which it was a substantial employer, as
defined in Section 4001(a)(2) of ERISA; (f) the
conditions for the imposition of a lien under Section 302(f)
of ERISA shall have been met with respect to any Plan; (g) the
adoption of an amendment to a Plan requiring the provision of
security to such Plan pursuant to Section 307 of ERISA; or
(h) the institution by the PBGC of proceedings to terminate a
Plan pursuant to Section 4042 of ERISA, or the occurrence of
any event or condition described in Section 4042 of ERISA that
constitutes grounds for the termination of, or the appointment of a
trustee to administer, a Plan.
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Eurocurrency Liabilities ” has the meaning assigned to
that term in Regulation D of the Board of Governors of the
Federal Reserve System, as in effect from time to time.
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Eurodollar Lending Office ” means, with respect to any
Lender, the office of such Lender specified as its
“Eurodollar Lending Office” opposite its name on
Schedule I hereto or in the Assignment and Acceptance pursuant
to which it became a Lender (or, if no such office is specified,
its Domestic Lending Office), or such other office of such Lender
as such Lender may from time to time specify to the Borrower and
the Agent.
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Eurodollar Rate ” means, for any Interest Period for
each Eurodollar Rate Advance comprising part of the same Borrowing,
an interest rate per annum equal to the rate per annum obtained by
dividing (a) the rate per annum (rounded upward to the nearest
whole multiple of 1/100 of 1% per annum) appearing on Moneyline
Telerate Service Page 3750 (or any successor page) as the London
interbank offered rate for deposits in U.S. dollars at
approximately 11:00 A.M. (London time) two Business Days prior to
the first day of such Interest Period for a term comparable to such
Interest Period or, if for any reason such rate is not
available, the average (rounded upward to the nearest whole
multiple of 1/100 of 1% per annum, if such average is not such a
multiple) of the rate per annum at which deposits in U.S. dollars
is offered by the principal office of each of the Reference Banks
in London, England to prime banks in the London interbank market at
11:00 A.M. (London time) two Business Days before the first
day of such Interest Period in an amount substantially equal to
such Reference Bank’s Eurodollar Rate Advance comprising part
of such Borrowing to be outstanding during such Interest Period and
for a period equal to such Interest Period by (b) a percentage
equal to 100% minus the Eurodollar Rate Reserve Percentage for such
Interest Period. If the Moneyline Telerate Service Page 3750 (or
any successor page) is unavailable, the Eurodollar Rate for any
Interest Period for each Eurodollar Rate Advance comprising part of
the same Borrowing shall be determined by the Agent on the basis of
applicable rates furnished to and received by the Agent from the
Reference Banks two Business Days before the first day of such
Interest Period, subject , however , to the
provisions of Section 2.08.
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Eurodollar Rate Advance ” means an Advance that bears
interest as provided in Section 2.07(a)(ii).
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Eurodollar Rate Reserve Percentage ” for any Interest
Period for all Eurodollar Rate Advances comprising part of the same
Borrowing means the reserve percentage applicable two Business Days
before the first day of such Interest Period under regulations
issued from time to time by the Board of Governors of the Federal
Reserve System (or any successor) for determining the maximum
reserve requirement (including, without limitation, any emergency,
supplemental or other marginal reserve requirement) for a member
bank of the Federal Reserve System in New York City with
respect to liabilities or assets consisting of or including
Eurocurrency Liabilities (or with respect to any other category of
liabilities that includes deposits by reference to which the
interest rate on Eurodollar Rate Advances is determined) having a
term equal to such Interest Period.
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Events of Default ” has the meaning specified in
Section 6.01.
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Federal Funds Rate ” means, for any period, a
fluctuating interest rate per annum equal for each day during such
period to the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published for such day (or,
if such day is not a Business Day, for the next preceding Business
Day) by the Federal Reserve Bank of New York, or, if such rate
is not so published for any day that is a Business Day, the average
of the quotations for such day on such transactions received by the
Agent from three Federal funds brokers of recognized standing
selected by it.
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GAAP ”has the meaning specified in
Section 1.03.
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Hazardous Materials ” means (a) petroleum and
petroleum products, byproducts or breakdown products, radioactive
materials, asbestos-containing materials, polychlorinated biphenyls
and radon gas and (b) any other chemicals, materials or substances
designated, classified or regulated as hazardous or toxic or as a
pollutant or contaminant under any Environmental Law.
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Hedge Agreements ” means interest rate swap, cap or
collar agreements, interest rate future or option contracts,
currency swap agreements, currency future or option contracts and
other similar agreements.
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Interest Period ” means, for each Eurodollar Rate
Advance comprising part of the same Borrowing, the period
commencing on the date of such Eurodollar Rate Advance or the date
of the Conversion of any Base Rate Advance into such Eurodollar
Rate Advance and ending on the last day of the period selected by
the Borrower pursuant to the provisions below and, thereafter, each
subsequent period commencing on the last day of the immediately
preceding Interest Period and ending on the last day of the period
selected by the Borrower pursuant to the provisions below. The
duration of each such Interest Period shall be one, two, three or
six months as the Borrower may, upon notice received by the Agent
not later than 11:00 A.M. (New York City time) on the
third Business Day prior to the first day of such Interest Period,
select; provided , however , that:
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(a)
the Borrower may not select any Interest Period that ends after the
Termination Date;
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(b)
Interest Periods commencing on the same date for Eurodollar Rate
Advances comprising part of the same Borrowing shall be of the same
duration;
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(c)
whenever the last day of any Interest Period would otherwise occur
on a day other than a Business Day, the last day of such Interest
Period shall be extended to occur on the next succeeding Business
Day, provided , however , that, if such extension
would cause the last day of such Interest Period to occur in the
next following calendar month, the last day of such Interest Period
shall occur on the next preceding Business Day; and
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(d)
whenever the first day of any Interest Period occurs on a day of an
initial calendar month for which there is no numerically
corresponding day in the calendar month that succeeds such initial
calendar month by the number of months equal to the number of
months in such Interest Period, such Interest Period shall end on
the last Business Day of such succeeding calendar month.
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Internal Revenue Code ” means the Internal Revenue
Code of 1986, as amended from time to time, and the regulations
promulgated and rulings issued thereunder.
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“
Lenders ”means the Initial Lenders and each Person
that shall become a party hereto pursuant to
Section 8.07.
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Lien ” means any lien, security interest or other
charge or encumbrance of any kind, or any other type of
preferential arrangement, including, without limitation, the lien
or retained security title of a conditional vendor (excluding
operating leases) and any easement, right of way or other
encumbrance on title to real property.
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“
Material Adverse Change ” means any material adverse
change in the business, condition (financial or otherwise),
operations, performance or properties of the Borrower or the
Borrower and its Subsidiaries taken as a whole.
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Material Adverse Effect ” means a material adverse
effect on (a) the business, condition (financial or
otherwise), operations, performance or properties of the Borrower
or the Borrower and its Subsidiaries taken as a whole, (b) the
rights and remedies of the Agent or any Lender under this Agreement
or any Note or (c) the ability of the Borrower to perform its
obligations under this Agreement or any Note.
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Material Subsidiary ” means any Subsidiary of the
Borrower having, as of the end of the Borrower’s most
recently completed fiscal year, (a) assets with a value of not less
than 5% of the total value of the assets of the Borrower and its
Subsidiaries, taken as a whole, or (b) gross revenue of not less
than 5% of the total (gross) revenue of the Borrower and its
Subsidiaries, taken as a whole.
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Multiemployer Plan ” means a multiemployer plan, as
defined in Section 4001(a)(3) of ERISA, to which the Borrower
or any ERISA Affiliate is making or accruing an obligation to make
contributions, or has within any of the preceding five plan years
made or accrued an obligation to make contributions.
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Multiple Employer Plan ” means a single employer plan,
as defined in Section 4001(a)(15) of ERISA, that (a) is
maintained for employees of the Borrower or any ERISA Affiliate and
at least one Person other than the Borrower and the ERISA
Affiliates or (b) was so maintained and in respect of which
the Borrower or any ERISA Affiliate could have liability under
Section 4064 or 4069 of ERISA in the event such plan has been
or were to be terminated.
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Net Cash Proceeds ” means, with respect to the
incurrence or issuance of any debt or the sale or issuance of any
equity interests by the Borrower or any of its Subsidiaries, the
aggregate amount of cash received from time to time (whether as
initial consideration or through payment or disposition of deferred
consideration but only as and when received) by or on behalf of
such Person in connection with such transaction after deducting
therefrom only (without duplication) (a) reasonable and
customary brokerage commissions, underwriting fees and discounts,
legal and accounting fees, filing fees, finder’s fees and
other similar fees and commissions and expenses and (b) the
amount of taxes payable in connection with or as a result of such
transaction.
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“
Note ” means a promissory note of the Borrower payable
to the order of any Lender, delivered pursuant to a request made
under Section 2.16 in substantially the form of Exhibit A
hereto, evidencing the aggregate indebtedness of the Borrower to
such Lender resulting from the Advances made by such
Lender.
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“
Notice of Borrowing ” has the meaning specified in
Section 2.02(a).
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“
PBGC ”means the Pension Benefit Guaranty Corporation
(or any successor).
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“
Permitted Liens ” means such of the following as to
which no enforcement, collection, execution, levy or foreclosure
proceeding shall have been commenced: (a) Liens for taxes,
assessments and governmental charges or levies to the extent not
required to be paid under Section 5.01(b) hereof;
(b) Liens imposed by law, such as materialmen’s,
mechanics’, carriers’, workmen’s and
repairmen’s Liens and other similar Liens arising in the
ordinary course of business securing obligations that are either
(i) not overdue for a period of more than 45 days or (ii) are being
contested in good faith and by proper proceedings and as to which
appropriate reserves are being maintained; (c) pledges or
deposits to secure obligations under workers’ compensation
laws or similar legislation or to secure public or statutory
obligations; and (d) easements, rights of way and other
encumbrances on title to real property that do not render title to
the property encumbered thereby unmarketable or materially
adversely affect the use of such property for its present
purposes.
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“
Permitted Receivables Financing ” means any financing
pursuant to which the Borrower or any Subsidiary or Subsidiaries of
the Borrower may sell, convey or otherwise transfer to a
Receivables Subsidiary or any other Person, or grant a security
interest in, any accounts receivable, general intangibles, chattel
paper or other financial assets (and related rights and assets) of
the Borrower or such Subsidiary or Subsidiaries, provided
that such financing shall be with limited or no recourse to the
Borrower and its Subsidiaries (other than the Receivables
Subsidiary) except to the extent customary (in the reasonable
judgment of the Borrower) for such transactions.
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“
Person ” means an individual, partnership, corporation
(including a business trust), joint stock company, trust,
unincorporated association, joint venture, limited liability
company or other entity, or a government or any political
subdivision or agency thereof.
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“
Plan ”means a Single Employer Plan or a Multiple
Employer Plan.
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“
Receivables Subsidiary ” means a bankruptcy remote,
special purpose wholly owned Subsidiary of the Borrower (or another
wholly-owned Subsidiary of the Borrower) formed in connection with
a Permitted Receivables Financing.
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“
Reference Banks ” means Citibank and JPMorgan Chase
Bank, N.A.
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“
Register ”has the meaning specified in
Section 8.07(d).
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“
Related Person ” means each of the following: (a) the
Borrower, (b) any Subsidiary of the Borrower or (c) any employee
benefit plan of the Borrower or of any Subsidiary of the Borrower
or any Person organized, appointed or established by the Borrower
for or pursuant to the terms of any such plan.
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“
Required Lenders ” means at any time Lenders owed at
least a majority in interest of the then aggregate unpaid principal
amount of the Advances owing to Lenders, or, if no such principal
amount is then outstanding, Lenders having at least a majority in
interest of the Commitments.
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“
Single Employer Plan ” means a single employer plan,
as defined in Section 4001(a)(15) of ERISA, that (a) is
maintained for employees of the Borrower or any ERISA Affiliate and
no Person other than the Borrower and the ERISA Affiliates or
(b) was so maintained and in respect of which the Borrower or
any ERISA Affiliate could have liability under Section 4069 of
ERISA in the event such plan has been or were to be
terminated.
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“
Subsidiary ” of any Person means any corporation,
partnership, joint venture, limited liability company, trust or
estate of which (or in which) more than 50% of (a) the issued
and outstanding capital stock having ordinary voting power to elect
a majority of the Board of Directors of such corporation
(irrespective of whether at the time capital stock of any other
class or classes of such corporation shall or might have voting
power upon the occurrence of any contingency), (b) the
interest in the capital or profits of such limited liability
company, partnership or joint venture or (c) the beneficial
interest in such trust or estate is at the time directly or
indirectly owned or controlled by such Person, by such Person and
one or more of its other Subsidiaries or by one or more of such
Person’s other Subsidiaries; it being understood that Snap-On
Credit LLC, which is 50% owned by the Borrower, shall not be deemed
to be a “Subsidiary” of the Borrower for purposes of
this Agreement.
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“
Termination Date ” means the earlier of (a) May 9,
2007 and (b) the date of termination in whole of the Commitments
pursuant to Section 2.05 or 6.01.
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“
Voting Stock ” means capital stock issued by a
corporation, or equivalent interests in any other Person, the
holders of which are ordinarily, in the absence of contingencies,
entitled to vote for the election of directors (or persons
performing similar functions) of such Person, even if the right so
to vote has been suspended by the happening of such a
contingency.
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SECTION
1.02. Computation of Time Periods . In this Agreement in the
computation of periods of time from a specified date to a later
specified date, the word “from” means “from and
including” and the words “to” and
“until” each mean “to but
excluding”.
SECTION
1.03. Accounting Terms . All accounting terms not
specifically defined herein shall be construed in accordance with
generally accepted accounting principles consistent with those
applied in the preparation of the financial statements referred to
in Section 4.01(e) (“ GAAP ”).
ARTICLE II
AMOUNTS AND TERMS OF THE ADVANCES
SECTION
2.01. The Advances . Each Lender severally agrees, on the
terms and conditions hereinafter set forth, to make Advances to the
Borrower from time to time on any Business Day during the period
from the Effective Date until the Termination Date in an aggregate
amount not to exceed at any time outstanding such Lender’s
Commitment. Each Borrowing shall be in an aggregate amount of
$10,000,000 or an integral multiple of $1,000,000 in excess thereof
and shall consist of Advances of the same Type made on the same day
by the Lenders ratably according to their respective Commitments.
Within the limits of each Lender’s Commitment, the Borrower
may borrow under this Section 2.01, prepay pursuant to
Section 2.10 and reborrow under this
Section 2.01.
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SECTION
2.02. Making the Advances . (a) Each Borrowing shall be made
on notice, given not later than (x) 11:00 A.M.
(New York City time) on the third Business Day prior to the
date of the proposed Borrowing in the case of a Borrowing
consisting of Eurodollar Rate Advances or (y) 11:00 A.M. (New York
City time) on the date of the proposed Borrowing in the case of a
Borrowing consisting of Base Rate Advances, by the Borrower to the
Agent, which shall give to each Lender prompt notice thereof by
telecopier. Each such notice of a Borrowing (a “ Notice of
Borrowing ”) shall be by telephone, confirmed immediately
in writing, or telecopier in substantially the form of
Exhibit B hereto, specifying therein the requested
(i) date of such Borrowing, (ii) Type of Advances
comprising such Borrowing, (iii) aggregate amount of such
Borrowing, and (iv) in the case of a Borrowing consisting of
Eurodollar Rate Advances, initial Interest Period for each such
Advance. Each Lender shall, before 12:00 noon (New York
City time) on the date of such Borrowing make available for the
account of its Applicable Lending Office to the Agent at the
applicable Agent’s Account, in same day funds, such
Lender’s ratable portion of such Borrowing. After the
Agent’s receipt of such funds and upon fulfillment of the
applicable conditions set forth in Article III, the Agent will
make such funds available to the Borrower at the Agent’s
address referred to in Section 8.02(a).
(b)
Anything in subsection (a) above to the contrary
notwithstanding, (i) the Borrower may not select Eurodollar
Rate Advances for any Borrowing if the aggregate amount of such
Borrowing is less than $10,000,000 or if the obligation of the
Lenders to make Eurodollar Rate Advances shall then be suspended
pursuant to Section 2.08 or 2.12 and (ii) the Eurodollar
Rate Advances may not be outstanding as part of more than six
separate Borrowings.
(c)
Each Notice of Borrowing shall be irrevocable and binding on the
Borrower. In the case of any Borrowing that the related Notice of
Borrowing specifies is to be comprised of Eurodollar Rate Advances,
the Borrower shall indemnify each Lender against any loss, cost or
expense incurred by such Lender as a result of any failure to
fulfill on or before the date specified in such Notice of Borrowing
for such Borrowing the applicable conditions set forth in
Article III, including, without limitation, any loss
(including loss of anticipated profits), cost or expense incurred
by reason of the liquidation or reemployment of deposits or other
funds acquired by such Lender to fund the Advance to be made by
such Lender as part of such Borrowing when such Advance, as a
result of such failure, is not made on such date.
(d)
Unless the Agent shall have received notice from a Lender prior to
the time of any Borrowing that such Lender will not make available
to the Agent such Lender’s ratable portion of such Borrowing,
the Agent may assume that such Lender has made such portion
available to the Agent on the date of such Borrowing in accordance
with subsection (a) of this Section 2.02 and the Agent
may, in reliance upon such assumption, make available to the
Borrower on such date a corresponding amount. If and to the extent
that such Lender shall not have so made such ratable portion
available to the Agent, such Lender and the Borrower severally
agree to repay to the Agent forthwith on demand such corresponding
amount together with interest thereon, for each day from the date
such amount is made available to the Borrower until the date such
amount is repaid to the Agent, at (i) in the case of the
Borrower, the interest rate applicable at the time to Advances
comprising such Borrowing and (ii) in the case of such Lender,
the Federal Funds Rate. If such Lender shall repay to the Agent
such corresponding amount, such amount so repaid shall constitute
such Lender’s Advance as part of such Borrowing for purposes
of this Agreement.
(e)
The failure of any Lender to make the Advance to be made by it as
part of any Borrowing shall not relieve any other Lender of its
obligation, if any, hereunder to make its Advance on the date of
such Borrowing, but no Lender shall be responsible for the failure
of any other Lender to make the Advance to be made by such other
Lender on the date of any Borrowing.
SECTION
2.03. [Intentionally Omitted] .
SECTION
2.04. Fees . (a) Facility Fee . The Borrower agrees
to pay to the Agent for the account of each Lender a facility fee
on the aggregate amount of such Lender’s Commitment from the
Effective Date in the case of each Initial Lender and from the
later of the Effective Date and the effective date specified in the
Assignment and Acceptance pursuant to which it became a Lender in
the case of each other Lender until the Termination Date at a rate
per annum equal to the Applicable Percentage in effect from time to
time, payable in arrears quarterly on the last day of each March,
June, September and December, commencing December 31, 2006, and on
the Termination Date.
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(b)
Agent’s Fees . The Borrower shall pay to the Agent for
its own account such fees as may from time to time be agreed
between the Borrower and the Agent.
SECTION
2.05. Termination or Reduction of the Commitments . (a)
Optional . The Borrower shall have the right, upon at least
three Business Days’ notice to the Agent, to terminate in
whole or reduce ratably in part the unused portions of the
respective Commitments of the Lenders, provided that each
partial reduction shall be in the aggregate amount of $10,000,000
or an integral multiple of $1,000,000 in excess thereof.
(b)
Mandatory . The aggregate Commitments of the Lenders shall
be automatically and permanently ratably reduced on the date and by
the amount of the receipt by the Borrower or any of its
Subsidiaries of Net Cash Proceeds from (i) from issuance of equity
interests in a private placement or an underwritten public offering
or (ii) the incurrence or issuance of debt for borrowed money
having a maturity of more than 270 days in the capital
markets.
SECTION
2.06. Repayment of Advances . The Borrower shall repay to
the Agent for the ratable account of the Lenders on the Termination
Date the aggregate principal amount of the Advances then
outstanding.
SECTION
2.07. Interest on Advances . (a) Scheduled Interest .
The Borrower shall pay interest on the unpaid principal amount of
each Advance owing to each Lender from the date of such Advance
until such principal amount shall be paid in full, at the following
rates per annum:
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(i)
Base Rate Advances . During such periods as such Advance is
a Base Rate Advance, a rate per annum equal at all times to the sum
of (x) the Base Rate in effect from time to time plus
(y) the Applicable Margin in effect from time to time
plus (z) the Applicable Utilization Fee in effect from time
to time, payable in arrears quarterly on the last day of each
March, June, September and December during such periods and on the
date such Base Rate Advance shall be Converted or paid in
full.
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(ii)
Eurodollar Rate Advances . During such periods as such
Advance is a Eurodollar Rate Advance, a rate per annum equal at all
times during each Interest Period for such Advance to the sum of
(x) the Eurodollar Rate for such Interest Period for such
Advance plus (y) the Applicable Margin in effect from
time to time plus (z) the Applicable Utilization Fee in
effect from time to time, payable in arrears on the last day of
such Interest Period and, if such Interest Period has a duration of
more than three months, on each day that occurs during such
Interest Period every three months from the first day of such
Interest Period and on the date such Eurodollar Rate Advance shall
be Converted or paid in full.
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(b)
Default Interest . Upon the occurrence and during the
continuance of an Event of Default, the Borrower shall pay interest
on (i) the unpaid principal amount of each Advance owing to
each Lender, payable in arrears on the dates referred to in
clause (a)(i) or (a)(ii) above, at a rate per annum equal at
all times to 2% per annum above the rate per annum required to be
paid on such Advance pursuant to clause (a)(i) or (a)(ii)
above and (ii) to the fullest extent permitted by law, the
amount of any interest, fee or other amount payable hereunder that
is not paid when due, from the date such amount shall be due until
such amount shall be paid in full, payable in arrears on the date
such amount shall be paid in full and on demand, at a rate per
annum equal at all times to 2% per annum above the rate per annum
required to be paid on Base Rate Advances pursuant to
clause (a)(i) above.
SECTION
2.08. Interest Rate Determination . (a) The Agent shall give
prompt notice to the Borrower and the Lenders of the applicable
interest rate determined by the Agent for purposes of
Section 2.07(a)(i) or (ii), and the rate, if any, furnished by
each Reference Bank for the purpose of determining the interest
rate under Section 2.07(a)(ii).
(b)
If, with respect to any Eurodollar Rate Advances, the Required
Lenders notify the Agent that (i) they are unable to obtain
matching deposits in the London inter-bank market at or about 11:00
A.M. (London time) on the second Business Day before the making of
a Borrowing in sufficient amounts to fund their respective Advances
as a part of such Borrowing during its Interest Period or
(ii) the Eurodollar Rate for any Interest Period for such
Advances will not adequately reflect the cost to such Required
Lenders of making, funding or maintaining their respective
Eurodollar Rate Advances for such Interest Period, the Agent shall
forthwith so notify the Borrower and the Lenders, whereupon
(A) the Borrower will, on the last day of the then existing
Interest Period therefor, either (x) prepay such Advances or (y)
Convert such Advances into Base Rate Advances and (B) the
obligation of the Lenders to make, or to Convert Advances into,
Eurodollar Rate Advances shall be suspended until the Agent shall
notify the Borrower and the Lenders that the circumstances causing
such suspension no longer exist.
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(c)
If the Borrower shall fail to select the duration of any Interest
Period for any Eurodollar Rate Advances in accordance with the
provisions contained in the definition of “Interest
Period” in Section 1.01, the Agent will forthwith so
notify the Borrower and the Lenders and such Advances will
automatically, on the last day of the then existing Interest Period
therefor, be continued as Eurodollar Rate Advances having an
interest period of one month.
(d)
On the date on which the aggregate unpaid principal amount of
Eurodollar Rate Advances comprising any Borrowing shall be reduced,
by payment or prepayment or otherwise, to less than $10,000,000,
such Advances shall automatically Convert into Base Rate
Advances.
(e)
Upon the occurrence and during the continuance of any Event of
Default, (i) each Eurodollar Rate Advance will automatically,
on the last day of the then existing Interest Period therefor be
Converted into Base Rate Advances and (ii) the obligation of
the Lenders to make, or to Convert Advances into, Eurodollar Rate
Advances shall be suspended.
(f)
If Moneyline Telerate Service Page 3750 is unavailable and fewer
than two Reference Banks furnish timely information to the Agent
for determining the Eurodollar Rate for any Eurodollar Rate
Advances,
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(i)
the Agent shall forthwith notify the Borrower and the Lenders that
the interest rate cannot be determined for such Eurodollar Rate
Advances,
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(ii)
each such Advance will automatically, on the last day of the then
existing Interest Period therefor, be prepaid by the Borrower or be
automatically Converted into a Base Rate Advance (or if such
Advance is then a Base Rate Advance, will continue as a Base Rate
Advance), and
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(iii)
the obligation of the Lenders to make Eurodollar Rate Advances or
to Convert Advances into Eurodollar Rate Advances shall be
suspended until the Agent shall notify the Borrower and the Lenders
that the circumstances causing such suspension no longer
exist.
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SECTION
2.09. Optional Conversion of Advances . The Borrower may on
any Business Day, upon notice given to the Agent not later than
11:00 A.M. (New York City time) on the third Business Day
prior to the date of the proposed Conversion and subject to the
provisions of Sections 2.08 and 2.12, Convert all or a portion
of Advances of one Type comprising the same Borrowing into Advances
of the other Type; provided , however , that any
Conversion of Eurodollar Rate Advances into Base Rate Advances
shall be made only on the last day of an Interest Period for such
Eurodollar Rate Advances, any Conversion of Base Rate Advances into
Eurodollar Rate Advances shall be in an amount not less than the
minimum amount specified in Section 2.02(b) and no Conversion
of any Advances shall result in more separate Borrowings than
permitted under Section 2.02(b). Each such notice of a
Conversion shall, within the restrictions specified above, specify
(i) the date of such Conversion, (ii) the Advances to be
Converted, and (iii) if such Conversion is into Eurodollar
Rate Advances, the duration of the initial Interest Period for each
such Advance. Each notice of Conversion shall be irrevocable and
binding on the Borrower.
SECTION
2.10. Prepayments of Advances . (a) Optional .
The Borrower may, upon notice at least two Business Days’
prior to the date of such prepayment, in the case of Eurodollar
Rate Advances, and not later than 11:00 A.M. (New York City time)
on the date of such prepayment, in the case of Base Rate Advances,
to the Agent stating the proposed date and aggregate principal
amount of the prepayment, and if such notice is given the Borrower
shall, prepay the outstanding principal amount of the Advances
comprising part of the same Borrowing in whole or ratably in part
without premium or penalty, together with accrued interest to the
date of such prepayment on the principal amount prepaid;
provided , however , that (x) each partial prepayment
shall be in an aggregate principal amount of $10,000,000 or an
integral multiple of $1,000,000 in excess thereof and (y) in
the event of any such prepayment of a Eurodollar Rate Advance, the
Borrower shall be obligated to reimburse the Lenders in respect
thereof pursuant to Section 8.04(c).
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(b)
Mandatory Prepayments . (i) The Borrower shall, within two
(2) Business Days after the receipt thereof, and in the amount of
the receipt by the Borrower or any of its Subsidiaries of Net Cash
Proceeds from (A) the issuance of equity interests in a private
placement or an underwritten public offering or (B) the incurrence
or issuance of debt for borrowed money having a maturity of more
than 270 days in the capital markets, repay the Advances comprising
part of the same Borrowing ratably in an aggregate amount equal to
the amount of such Net Cash Proceeds.
(ii)
Each prepayment made pursuant to this Section 2.10(b) shall be made
together with any interest accrued to the date of such prepayment
on the principal amounts prepaid and, in the case of any prepayment
of a Eurodollar Rate Advance on a date other than the last day of
an Interest Period or at its maturity, any additional amounts which
the Borrower shall be obligated to reimburse to the Lenders in
respect thereof pursuant to Section 8.04(c). The Agent shall give
prompt notice of any prepayment required under this Section 2.10(b)
to the Borrower and the Lenders.
SECTION
2.11. Increased Costs . (a) If, due to either (i) the
introduction of or any change in or in the interpretation of any
law or regulation or (ii) the compliance with any guideline or
request issued by any central bank or other governmental authority
including, without limitation, any agency of the European Union or
similar monetary or multinational authority after the date hereof
(whether or not having the force of law), there shall be any
increase in the cost to any Lender of agreeing to make or making,
funding or maintaining Eurodollar Rate Advances (excluding for
purposes of this Section 2.11 any such increased costs resulting
from (i) Taxes or Other Taxes (as to which Section 2.14 shall
govern) and (ii) changes in the basis of taxation of overall net
income or overall gross income by the United States or by the
foreign jurisdiction or state under the laws of which such Lender
is organized or is otherwise subject to tax), then the Borrower
shall from time to time, upon demand by such Lender (with a copy of
such demand to the Agent), pay to the Agent for the account of such
Lender additional amounts sufficient to compensate such Lender for
such increased cost, provided that the Borrower shall not be
required to pay any such additional amounts to the extent such
additional amounts accrued prior to the date that is six months
prior to the date of such notice. A certificate in reasonable
detail as to the amount of such increased cost, submitted to the
Borrower and the Agent by such Lender contemporaneously with the
demand for payment, shall be conclusive and binding for all
purposes, absent manifest error.
(b)
If any Lender determines that compliance with any law or regulation
or any guideline or request from any central bank or other
governmental authority (whether or not having the force of law)
affects or would affect the amount of capital required or expected
to be maintained by such Lender or any corporation controlling such
Lender and that the amount of such capital is increased by or based
upon the existence of such Lender’s commitment to lend
hereunder and other commitments of this type, then, upon demand by
such Lender (with a copy of such demand to the Agent), the Borrower
shall pay to the Agent for the account of such Lender, from time to
time as specified by such Lender, additional amounts sufficient to
compensate such Lender or such corporation in the light of such
circumstances, to the extent that such Lender reasonably determines
such increase in capital to be allocable to the existence of such
Lender’s commitment to lend hereunder. A certificate in
reasonable detail as to such amounts submitted to the Borrower and
the Agent by such Lender contemporaneously with the demand for
payment shall be conclusive and binding for all purposes, absent
manifest error.
SECTION
2.12. Illegality . Notwithstanding any other provision of
this Agreement, if any Lender shall notify the Agent that the
introduction of or any change in or in the interpretation of any
law or regulation makes it unlawful, or any central bank or other
governmental authority asserts that it is unlawful, for any Lender
or its Eurodollar Lending Office to perform its obligations
hereunder to make Eurodollar Rate Advances or to fund or maintain
Eurodollar Rate Advances hereunder, (a) each Eurodollar Rate
Advance will automatically, upon such demand, be Converted into a
Base Rate Advance and (b) the obligation of the Lenders to
make Eurodollar Rate Advances or to Convert Advances into
Eurodollar Rate Advances shall be suspended until the Agent shall
notify the Borrower and the Lenders that the circumstances causing
such suspension no longer exist.
SECTION
2.13. Payments and Computations . (a) The Borrower shall
make each payment hereunder, without set-off or counterclaim, not
later than 11:00 A.M. (New York City time) on the day
when due in U.S. dollars to the Agent at the applicable
Agent’s Account in same day funds. The Agent will promptly
thereafter cause to be distributed like funds relating to the
payment of principal or interest or facility fees ratably (other
than amounts payable pursuant to Section 2.03, 2.11, 2.14 or
8.04(c)) to the Lenders for the account of their respective
Applicable Lending Offices, and like funds relating to the payment
of any other amount payable to any Lender to such Lender for the
account of its Applicable Lending Office, in each case to be
applied in accordance with the terms of this Agreement. Upon its
acceptance of an Assignment and Acceptance and recording of the
information contained therein in the Register pursuant to
Section 8.07(c), from and after the effective date specified
in such Assignment and Acceptance, the Agent shall make all
payments hereunder and under the Notes in respect of the interest
assigned thereby to the Lender assignee thereunder, and the parties
to such Assignment and Acceptance shall make all appropriate
adjustments in such payments for periods prior to such effective
date directly between themselves.
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(b)
The Borrower hereby authorizes each Lender, if and to the extent
payment owed to such Lender is not made when due hereunder or under
the Note held by such Lender, to charge from time to time against
any or all of the Borrower’s accounts with such Lender any
amount so due. Each Lender that charges an account of the Borrower
in accordance with this Section agrees to promptly so notify the
Borrower, provided that the failure to give such notice
shall not affect the validity of such charge.
(c)
All computations of interest based on the Base Rate shall be made
by the Agent on the basis of a year of 365 or 366 days, as the case
may be, all computations of interest based on the Eurodollar Rate
or the Federal Funds Rate and of facility fees shall be made by the
Agent on the basis of a year of 360 days, in each case for the
actual number of days (including the first day but excluding the
last day) occurring in the period for which such interest or
facility fees are payable. Each determination by the Agent of an
interest rate hereunder shall be conclusive and binding for all
purposes, absent manifest error.
(d)
Whenever any payment hereunder or under the Notes shall be stated
to be due on a day other than a Business Day, such payment shall be
made on the next succeeding Business Day, and such extension of
time shall in such case be included in the computation of payment
of interest or facility fee, as the case may be; provided ,
however , that, if such extension would cause payment of
interest on or principal of Eurodollar Rate Advances to be made in
the next following calendar month, such payment shall be made on
the next preceding Business Day.
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