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EXHIBIT 10.1
CONFIDENTIAL
$300,000,000
SENIOR UNSECURED
BRIDGE LOAN AGREEMENT
Dated as of December 18, 2006
among
ALLIS-CHALMERS ENERGY INC.
as the Borrower,
THE GUARANTORS NAMED HEREIN
as the Guarantors,
THE LENDERS NAMED HEREIN
as the Lenders,
ROYAL BANK OF CANADA
as Administrative Agent,
and
RBC CAPITAL MARKETS CORPORATION
as Sole Lead Arranger and Sole Bookrunner
Table of Contents
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Page
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ARTICLE I Definitions
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1
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SECTION 1.01.
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Defined Terms
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1
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SECTION 1.03.
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Classification of Loans
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17
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SECTION 1.04.
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References to Agreements and Laws
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17
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SECTION 1.05.
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Times of Day
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17
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SECTION 1.06.
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Timing of Payment or Performance
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17
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ARTICLE II Loans
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17
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SECTION 2.01.
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Commitments
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17
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SECTION 2.02.
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Loans
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17
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SECTION 2.03.
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Use of Proceeds
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18
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SECTION 2.04.
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Borrowing Procedure
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18
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SECTION 2.05.
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Evidence of Debt; Repayment of Loans
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18
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SECTION 2.06.
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Fees
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19
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SECTION 2.07.
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Interest on Loans
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19
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SECTION 2.08.
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Default Interest
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20
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SECTION 2.09.
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Alternate Rate of Interest
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20
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SECTION 2.10.
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Repayment
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20
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SECTION 2.11.
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Conversion and Continuation of
Borrowings
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20
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SECTION 2.12.
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Termination of Commitments
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21
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SECTION 2.13.
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Optional Prepayment
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21
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SECTION 2.14.
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Mandatory Prepayments
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21
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SECTION 2.15.
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Reserve Requirements; Change in
Circumstances
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22
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SECTION 2.16.
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Change in Legality
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23
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SECTION 2.17.
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Indemnity
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24
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SECTION 2.18.
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Pro Rata Treatment
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24
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SECTION 2.19.
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Sharing of Setoffs
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24
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SECTION 2.20.
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Payments
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24
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SECTION 2.21.
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Taxes
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25
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SECTION 2.22.
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Assignment of Commitments Under Certain
Circumstances; Duty to Mitigate
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27
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ARTICLE III Representations and
Warranties
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28
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SECTION 3.01.
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Organization; Powers
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28
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SECTION 3.02.
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Authorization
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28
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SECTION 3.03.
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Enforceability
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28
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SECTION 3.04.
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Governmental Approvals
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28
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SECTION 3.05.
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Financial Statements
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29
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SECTION 3.06.
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No Material Adverse Change
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29
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SECTION 3.07.
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Title to Properties; Possession Under
Leases
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29
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SECTION 3.08.
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Subsidiaries
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29
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ALY Bridge Loan Agreement
i
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SECTION 3.09.
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Litigation; Compliance with Laws
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30
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SECTION 3.10.
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Agreements
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30
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SECTION 3.11.
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Federal Reserve Regulations
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30
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SECTION 3.12.
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Investment Company Act
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30
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SECTION 3.13.
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Tax Returns
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30
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SECTION 3.14.
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No Material Misstatements
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30
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SECTION 3.15.
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Employee Benefit Plans
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30
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SECTION 3.16.
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Environmental Matters
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31
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SECTION 3.17.
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Labor Matters
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31
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SECTION 3.18.
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Solvency
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31
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ARTICLE IV Conditions of Lending
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32
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ARTICLE V Affirmative Covenants
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35
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SECTION 5.01.
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Existence; Compliance with Laws and Contractual
Obligations; Businesses and Properties
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35
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SECTION 5.02.
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Insurance
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35
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SECTION 5.03.
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Taxes
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36
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SECTION 5.04.
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Financial Statements, Reports, etc.
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36
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SECTION 5.05.
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Litigation and Other Notices
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37
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SECTION 5.06.
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Maintaining Records; Access to Properties and
Inspections; Maintenance of Ratings
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38
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SECTION 5.07.
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Additional Guarantors
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38
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SECTION 5.08.
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Use of Proceeds
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38
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ARTICLE VI Negative Covenants
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38
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SECTION 6.01.
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Indebtedness
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38
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SECTION 6.02.
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Liens
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39
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SECTION 6.03.
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Sale and Lease-Back Transactions
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41
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SECTION 6.04.
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Investments, Loans and Advances
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41
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SECTION 6.05.
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Mergers, Consolidations, and Sales of
Assets
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42
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SECTION 6.06.
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Restricted Payments; Restrictive
Agreements
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42
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SECTION 6.07.
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Transactions with Affiliates
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43
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SECTION 6.08.
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Change in Nature of Business
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44
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SECTION 6.09.
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Other Indebtedness and Agreements
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44
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SECTION 6.10.
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Partnership, etc.
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44
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SECTION 6.11.
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Accounting Changes; Fiscal Year
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44
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SECTION 6.12.
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Capital Expenditures
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44
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ARTICLE VII Events of Default
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44
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ARTICLE VIII Guarantee
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47
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SECTION 8.01.
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The Guarantee
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47
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SECTION 8.02.
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Obligations Unconditional
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47
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SECTION 8.03.
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Reinstatement
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48
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ALY Bridge Loan Agreement
ii
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Page
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SECTION 8.04.
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Subrogation; Subordination
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48
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SECTION 8.05.
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Remedies
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48
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SECTION 8.06.
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Instrument for the Payment of Money
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48
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SECTION 8.07.
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Continuing Guarantee
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49
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SECTION 8.08.
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General Limitation on Guarantee
Obligations
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49
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SECTION 8.09.
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Release of Guarantors
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49
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SECTION 8.10.
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Right of Contribution
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49
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ARTICLE IX The Administrative Agent
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49
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SECTION 9.01.
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Appointment and Authority
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49
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SECTION 9.02.
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Rights as a Lender
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49
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SECTION 9.03.
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Exculpatory Provisions
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50
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SECTION 9.04.
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Reliance by Agent
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50
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SECTION 9.05.
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Delegation of Duties
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50
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SECTION 9.06.
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Other Agents
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50
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SECTION 9.07.
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Resignation of Agent
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51
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SECTION 9.08.
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Non-reliance on Agent and Other
Lenders
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51
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SECTION 9.09.
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Indemnification
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51
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ARTICLE X Miscellaneous
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52
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SECTION 10.01.
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Notices
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52
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SECTION 10.02.
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Survival of Agreement
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52
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SECTION 10.03.
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Binding Effect
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53
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SECTION 10.04.
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Successors and Assigns
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53
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SECTION 10.05.
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Expenses; Indemnity
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55
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SECTION 10.06.
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Right of Setoff
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56
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SECTION 10.07.
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Applicable Law
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56
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SECTION 10.08.
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Waivers; Amendment
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56
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SECTION 10.09.
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Interest Rate Limitation
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57
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SECTION 10.10.
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Entire Agreement
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57
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SECTION 10.11.
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WAIVER OF JURY TRIAL
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57
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SECTION 10.12.
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Severability
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58
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SECTION 10.13.
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Counterparts
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58
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SECTION 10.14.
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Headings
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58
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SECTION 10.15.
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Jurisdiction; Consent to Service of
Process
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58
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SECTION 10.16.
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Confidentiality
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58
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SECTION 10.17.
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USA PATRIOT Act Notice
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59
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ALY Bridge Loan Agreement
iii
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SCHEDULES
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Schedule 1.01(a)
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—
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Guarantors
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Schedule 2.01
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—
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Lenders and Commitments
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Schedule 3.08
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—
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Subsidiaries
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Schedule 6.01
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—
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Existing Indebtedness
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Schedule 6.02
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—
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Existing Liens
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Schedule 6.04
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—
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Existing Investments
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EXHIBITS
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Exhibit A
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—
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Form of Assignment and Acceptance
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Exhibit B
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—
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Form of Borrowing Request
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Exhibit C
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—
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Form of Non-Bank Certificate
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Exhibit D
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—
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Form of Notice of Interest Election
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ALY Bridge Loan Agreement
iv
SENIOR UNSECURED BRIDGE LOAN
AGREEMENT dated as of December 18, 2006 (this "
Agreement "), among ALLIS-CHALMERS ENERGY INC., a
Delaware corporation (the " Borrower "), the
GUARANTORS (as hereinafter defined), the LENDERS (as hereinafter
defined), ROYAL BANK OF CANADA, as administrative agent for the
Lenders (in such capacity, the " Administrative Agent
"), and RBC CAPITAL MARKETS CORPORATION, as the exclusive lead
arranger and sole bookrunner (in such capacities, the " Lead
Arranger ").
RECITALS
A. Pursuant to the Asset
Purchase Agreement, dated October 25, 2006 (the "
Purchase Agreement ", as amended in accordance with
the terms of this Agreement), by and between the Borrower and Oil
& Gas Rental Services, Inc., a Louisiana corporation (the "
Target "), the Borrower intends to acquire from the
Target substantially all of the assets of the Target and assume
certain liabilities of the Target specified in the Purchase
Agreement (the " Acquisition ").
B. The Borrower has requested
that the Lenders make (a) a loan to the Borrower in an
aggregate principal amount not in excess of $225,000,000 and
(b) a loan to the Borrower in an aggregate principal amount
not in excess of $75,000,000, in each case on the Closing Date (as
hereinafter defined) to (a) finance a portion of the purchase
price for the Acquisition and (b) pay fees, costs and expenses
related to the Transactions (as hereinafter defined).
C. The Lenders are willing to
extend such credit to the Borrower on the terms and subject to the
conditions set forth herein.
NOW, THEREFORE, in consideration
of the premises and of the mutual covenants and agreements
contained herein, the parties hereto hereby agree as follows:
ARTICLE I
Definitions
SECTION
1.01. Defined Terms
As used in this Agreement, the
following terms shall have the meanings specified below:
" Acquired Business
" shall mean the assets of the Target and its Subsidiaries acquired
by the Borrower from the Target pursuant to the Purchase
Agreement.
" Acquisition "
shall have the meaning assigned to such term in the recitals.
" Administrative Agent
" shall have the meaning assigned to such term in the
preamble.
" Affiliate " shall
mean, when used 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; provided, however , that, (a) for
purposes of Section 6.07 , the term "Affiliate" shall
also include any Person that directly or indirectly owns 10% or
more of any class of Capital Stock of the Person specified or that
is an officer or director of the Person specified and (b) the
term "Affiliate" with respect to the Borrower shall specifically
exclude the Administrative Agent, each Lender, in its capacity as
Lender, and any of its Affiliates.
ALY Bridge Loan Agreement
" Agreement " shall
have the meaning assigned to such term in the preamble.
" Applicable Rate "
means (a) in the case of the Bridge A Loan, (i) with
respect to a Eurodollar Rate Loan, 4.75% per annum, increasing to
5.75% per annum on the first anniversary of the Closing Date, and
(ii) with respect to a Base Rate Loan, 3.75% per annum,
increasing to 4.75% on the first anniversary of the Closing Date
and (b) in the case of the Bridge B Loan, (i) with
respect to a Eurodollar Rate Loan, 6.75% per annum, increasing to
7.75% per annum on the first anniversary of the Closing Date, and
(ii) with respect to a Base Rate Loan, 5.75% per annum,
increasing to 6.75% on the first anniversary of the Closing
Date.
" Asset Sale " shall
mean the sale, transfer or other disposition (by way of merger,
casualty, condemnation or otherwise) by the Borrower or any of its
Subsidiaries to any Person other than the Borrower or any of its
Subsidiaries of (a) any Capital Stock of any of the
Subsidiaries of the Borrower or (b) any other assets of the
Borrower or any of its Subsidiaries.
" Assignment and
Acceptance " shall mean an assignment and acceptance
entered into by a Lender and an assignee, and accepted by the
Administrative Agent, in the form of Exhibit A or such
other form as shall be reasonably approved by the Administrative
Agent.
" Base Rate " shall
mean for any day a fluctuating rate per annum equal to the higher
of (a) the Federal Funds Rate plus 1 / 2
of 1% and (b) the rate of interest in effect
for such day as publicly announced from time to time by the
Administrative Agent as its " prime rate ";
provided , however , that during the period from the
date hereof to the date that is fifteen (15) days following
the Closing Date (or such earlier date as shall be specified by the
Administrative Agent on which a Eurodollar Rate Loan has become
available), "Base Rate" shall mean a rate per annum equal to the
sum of two-week LIBOR (determined by the Administrative Agent to be
the offered rate that appears on the page of the LIBOR I screen
that displays an average British Bankers Association Interest
Settlement Rate for deposits in Dollars for delivery on the Closing
Date with a two-week term, determined as of approximately
11:00 a.m. (London time) on the Closing Date) plus 1%. Such
rate is a rate set by the Administrative Agent based upon various
factors including the Administrative Agent’s costs and
desired return, general economic conditions and other factors, and
is used as a reference point for pricing some loans, which may be
priced at, above, or below such announced rate. Any changes in such
rate announced by the Administrative Agent shall take effect at the
opening of business on the day specified in the public announcement
of such change.
" Base Rate Loan "
shall mean a Loan that bears interest based on the Base Rate.
" Board " shall mean
the Board of Governors of the Federal Reserve System of the United
States of America.
" Borrower " shall
have the meaning assigned to such term in the preamble.
" Borrower
Acquisition " shall mean any transaction or series of
related transactions for the purpose of, or resulting in, directly
or indirectly: (a) the acquisition by the Borrower or any
Subsidiary of the Borrower of all or substantially all of the
assets located in the United States of a Person or of any business
or division of a Person; (b) the acquisition by the Borrower
or any Subsidiary of the Borrower of more than fifty percent (50%)
of any class of Voting Stock (or similar Capital Stock) of any
Domestic Person; or (c) a merger, consolidation or other
combination by the Borrower or any Subsidiary of the Borrower with
another Person if the Borrower or any Subsidiary of the Borrower is
the surviving entity; provided that (i) in any merger
involving the Borrower, the Borrower must be the surviving entity;
and
ALY Bridge Loan Agreement
2
(ii) in any merger involving a Subsidiary of the Borrower
which is a Loan Party and another Subsidiary of the Borrower which
is not a Loan Party, the Subsidiary which is a Loan Party shall be
the survivor.
" Borrowing Request
" shall mean a request by the Borrower in accordance with the terms
of Section 2.04 and substantially in the form of
Exhibit B , or such other form as shall be approved by
the Administrative Agent.
" Breakage Event "
shall have the meaning assigned to such term in
Section 2.17 .
" Bridge A
Commitment " shall mean, with respect to each Bridge A
Lender, the commitment of such Lender to make advances hereunder as
set forth on Schedule 2.01 , or in the Assignment and
Acceptance pursuant to which such Lender assumed its Commitment, as
applicable.
" Bridge A Lender "
means a Lender that has a Bridge A Commitment or that holds any
portion of the Bridge A Loan.
" Bridge A Loan "
means, collectively, the advances by the Bridge A Lenders pursuant
to their Bridge A Commitments.
" Bridge B
Commitment " shall mean, with respect to each Bridge B
Lender, the commitment of such Lender to make advances hereunder as
set forth on Schedule 2.01 , or in the Assignment and
Acceptance pursuant to which such Lender assumed its Commitment, as
applicable.
" Bridge B Lender "
means a Lender that has a Bridge B Commitment or that holds any
portion of the Bridge B Loan.
" Bridge B Loan "
means, collectively, the advances by the Bridge B Lenders pursuant
to their Bridge B Commitments.
" Business Day "
shall mean any day other than a Saturday, Sunday or day on which
banks in New York City are generally authorized or required by law
to close; provided , however , that when used in
connection with a Eurodollar Rate Loan (including with respect to
all notices and determinations in connection therewith and any
payments of principal, interest or other amounts thereon), the term
" Business Day " shall also exclude any day on which
banks are generally not open for dealings in dollar deposits in the
London interbank market.
" Capital
Expenditures " shall mean, for any period, (a) the
aggregate amount of additions to property, plant and equipment and
other capital expenditures of the Borrower and its Subsidiaries
that are (or should be) set forth in a Consolidated statement of
cash flows of the Borrower for such period prepared in accordance
with GAAP, and (b) Capital Lease Obligations or Synthetic
Lease Obligations incurred by the Borrower and its Consolidated
Subsidiaries during such period, but excluding in each case any
such expenditure made to restore, replace or rebuild property to
the condition of such property immediately prior to any damage,
loss, destruction or condemnation of such property, to the extent
such expenditure is made with insurance proceeds, condemnation
awards or damage recovery proceeds relating to any such damage,
loss, destruction or condemnation.
" Capital Lease
Obligations " of any Person shall mean 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.
ALY Bridge Loan Agreement
3
" Capital Stock "
shall mean:
(a) in the case of a
corporation, corporate stock;
(b) in the case of an
association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of
corporate stock:
(c) in the case of a
partnership or limited liability company, partnership or membership
interests (whether general or limited); and
(d) any other interest or
participation that confers on a Person the right to receive a share
of the profits and losses of, or distribution or assets of, the
issuing Person, but excluding from all of the foregoing any debt
securities convertible into Capital Stock, regardless of whether
such debt securities include any right of participation with
Capital Stock.
A " Change in
Control " shall be deemed to have occurred if:
(a) any "Person" or "group"
(as such terms are used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934 as in effect on the date hereof,
but excluding any employee benefit plan of such Person and its
Subsidiaries, and any Person or entity acting in its capacity as
trustee, agent or other fiduciary or administrator of any such
plan) shall become the "beneficial owner" (as defined in
Rules 13(d)-3 and 13(d)-5 under such Act), directly or
indirectly, of more than fifty percent (50)% of outstanding Capital
Stock of the Borrower having ordinary voting power;
(b) a majority of the seats
(other than vacant seats) on the board of directors of the Borrower
shall at any time be occupied by Persons who were not
(i) nominated by the board of directors of the Borrower or
(ii) appointed by directors so nominated; or
(c) any change in control (or
similar event, however denominated) shall occur in respect of
Material Indebtedness of the Borrower or any Subsidiary of the
Borrower.
" Change in Law "
shall mean (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 2.15 , 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.
" Charges " shall
have the meaning assigned to such term in Section 10.09
.
" Closing Date "
shall mean the date on which the obligation to fund the Loans under
this Agreement shall have become effective due to the satisfaction
in full or waiver of the conditions set forth in
Article IV.
" Code " shall mean
the Internal Revenue Code of 1986, as amended from time to time, or
any legislation successor thereto.
" Commitment " shall
mean a Bridge A Commitment or a Bridge B Commitment.
" Consolidated "
refers to the consolidation of accounts in accordance with
GAAP.
ALY Bridge Loan Agreement
4
" Consolidated
EBITDA " shall mean, 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
(i) Consolidated interest expense
for such period,
(ii) Consolidated income tax
expense for such period,
(iii) all amounts attributable to
depreciation and amortization for such period,
(iv) non-recurring fees and
expenses incurred in connection with the Transactions,
(v) any non-cash charges (other
than the write-down of current assets) for such period,
(vi) executive compensation
payments to the outgoing chairrman of the Target consisting of up
to $7,800,000 in cash and $11,400,000 in common stock,
minus (b) without duplication
all cash payments made during such period on account of non-cash
charges added to Consolidated Net Income pursuant to clause
(a)(v) above in a previous period.
" Consolidated Net
Income " shall mean, for any period with respect to any
Person, the net income or loss of such Person for such period
determined on a Consolidated basis in accordance with GAAP;
provided that there shall be excluded (without
duplication):
(a) the income of any
Subsidiary to the extent that the declaration or payment of
dividends or similar distributions by such Subsidiary of that
income is not at the time permitted by operation of the terms of
its charter or any agreement, instrument, judgment, decree,
statute, rule or governmental regulation applicable to such
Subsidiary,
(b) the income or loss of any
Person accrued prior to the date (i) it becomes a Subsidiary
or is merged into or consolidated with such Person or (ii) its
assets are acquired by such Person or its Subsidiaries,
(c) after-tax gains and
losses realized upon the sale or other disposition of any property
that is sold or otherwise disposed of other than in the ordinary
course of business, and
(d) extraordinary gains,
losses or charges.
" Constituent
Documents " means, with respect to any Person, (a) the
articles of incorporation, certificate of incorporation,
constitution or certificate of formation (or the equivalent
organizational documents) of such Person, (b) the by-laws or
operating agreement (or the equivalent governing documents) of such
Person and (c) any document setting forth the manner of
election or duties of the directors or managing members of such
Person (if any) and the designation, amount or relative rights,
limitations and preferences of any class or series of such
Person’s Capital Stock.
" Control " shall
mean 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 ownership of voting securities, by contract or
otherwise, and the terms " Controlling " and "
Controlled " shall have meanings correlative
thereto.
ALY Bridge Loan Agreement
5
" Default " shall
mean any event or condition which upon notice, lapse of time or
both would constitute an Event of Default.
" Disqualified Stock
" shall mean any Capital Stock that, by its terms (or by the terms
of any security or other Capital Stock into which it is convertible
or for which it is exchangeable), or upon the happening of any
event, (a) matures (excluding any maturity as the result of an
optional redemption by the issuer thereof) or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or
is redeemable at the option of the holder thereof, in whole or in
part, or requires the payment of any cash dividend or any other
scheduled payment constituting a return of capital, in each case at
any time on or prior to the date which is the first anniversary of
the Maturity Date, or (b) is convertible into or exchangeable
(unless at the sole option of the issuer thereof) for
(i) Indebtedness or (ii) any Capital Stock referred to in
clause (a) above, in each case at any time prior to the date
which is the first anniversary of the Maturity Date.
" Dollars " or "
$ " shall mean lawful money of the United States of
America.
" Domestic " shall
mean, with respect to an entity, that such entity is incorporated,
organized or formed under the laws of the United States, a state in
the United States or any subdivision thereof or the District of
Columbia.
" Environmental Laws
" shall mean all applicable Federal, state, local and foreign laws
(including common law), treaties, regulations, rules, ordinances,
codes, decrees, judgments, directives, orders (including consent
orders), and agreements having the force and effect of law in each
case, relating to protection of the environment or natural
resources, or to protection of human health and safety as it
relates to Hazardous Materials exposure, the presence or Release of
Hazardous Materials in the environment, or the generation,
manufacture, processing, distribution, use, treatment, storage,
transport, recycling or handling of, or the arrangement for such
activities with respect to, Hazardous Materials.
" Environmental
Liability " shall mean all liabilities, obligations,
damages, losses, claims, actions, suits, judgments, orders, fines,
penalties, fees, expenses and costs (including administrative
oversight costs, natural resource damages and remediation costs),
whether contingent or otherwise, arising out of or relating to
(a) compliance or non-compliance with 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 of any Hazardous
Materials 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 Issuance "
shall mean the issuance of 3.2 million shares of Capital Stock
by the Borrower to the Target, which Capital Stock shall be issued
as payment for a portion of the purchase price of the
Acquisition.
" ERISA " shall mean
the Employee Retirement Income Security Act of 1974, as the same
may be amended from time to time, or any legislation successor
thereto.
" ERISA Affiliate "
shall mean any trade or business (whether or not incorporated)
that, together with such Person, 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 (b),
(c), (m) or (o) of the Code.
" ERISA Event "
shall mean (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
ALY Bridge Loan Agreement
6
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, any of its Subsidiaries or
any of its ERISA Affiliates of any liability under Title IV of
ERISA with respect to the termination of any Plan or the withdrawal
or partial withdrawal of the Borrower, any of its Subsidiaries or
any of its ERISA Affiliates from any Plan or Multiemployer Plan;
(e) the receipt by the Borrower, any of its Subsidiaries or
any of its ERISA Affiliates from the PBGC or a plan administrator
of any notice relating to the intention to terminate any Plan or
Plans or to appoint a trustee to administer any Plan; (f) the
adoption of any amendment to a Plan that would require the
provision of security pursuant to Section 401(a)(29) of the
Code or Section 307 of ERISA; (g) the receipt by the Borrower,
any of its Subsidiaries or any of its ERISA Affiliates of any
notice, or the receipt by any Multiemployer Plan from the Borrower,
any of its Subsidiaries or any of its ERISA Affiliates 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; (h) the occurrence of a "prohibited transaction"
(within the meaning of Section 4975 of the Code) with respect
to which the Borrower or any of the Subsidiaries is a "disqualified
person" (within the meaning of Section 4975 of the Code) or
with respect to which the Borrower or any such Subsidiary could
otherwise be liable; or (i) any other extraordinary event or
condition with respect to a Plan or Multiemployer Plan (other than
liabilities arising under clauses (a) through (h)
above and any liabilities for routine plan contributions and claims
for benefits) that could reasonably be expected to result in
liability of the Borrower or any of its Subsidiaries.
" Eurodollar Rate "
shall mean for any Interest Period with respect to any Eurodollar
Rate Loan:
(a) the rate per annum equal
to the rate determined by the Administrative Agent to be the
offered rate that appears on the page of the LIBOR I screen (or any
successor thereto) that displays an average British Bankers
Association Interest Settlement Rate for deposits in Dollars for
delivery on the first day of such Interest Period with a term
equivalent to such Interest Period, determined as of approximately
11:00 a.m. (London time) two (2) Business Days prior to
the first day of such Interest Period, or
(b) if the rate referenced in
the preceding clause (a) does not appear on such page or
service or such page or service shall cease to be available, the
rate per annum equal to the rate determined by the Administrative
Agent to be the offered rate on such other page or other service
that displays an average British Bankers Association Interest
Settlement Rate for deposits in Dollars (for delivery on the first
day of such Interest Period) with a term equivalent to such
Interest Period, determined as of approximately 11:00 a.m.
(London time) two (2) Business days prior to the first day of
such Interest Period, or
(c) if the rates referenced
in the preceding clauses (a) and (b) are not available,
the rate per annum determined by the Administrative Agent as the
rate of interest (rounded upward to the next 1/100 th of 1%) at which deposits in
Dollars for delivery on the first day of such Interest Period in
same day funds in the approximate amount of the Eurodollar Rate
Loan being made, continued or converted by the Administrative Agent
and with a term equivalent to such Interest period would be offered
by the Administrative Agent’s London Branch to major banks in
the offshore Dollar market at their request at approximately
11:00 a.m. (London time) two (2) Business Days prior to
the first day of such Interest Period.
" Eurodollar Rate
Loan " shall mean a Loan that bears interest at a rate
based on the Eurodollar Rate.
" Event of Default "
shall have the meaning assigned to such term in
Article VII .
ALY Bridge Loan Agreement
7
" Excluded Taxes "
shall mean, 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 by the
United States of America or any state or political subdivision
thereof, or by the jurisdiction under the laws of which such
recipient is organized or in which its principal office is located
or, in the case of any Lender, in which its applicable lending
office is located, (b) any branch profits taxes imposed by the
United States of America or any similar tax imposed by any other
jurisdiction described in clause (a) above, (c) in the
case of a Foreign Lender (other than an assignee pursuant to a
request by the Borrower under Section 2.21(a)) , any
withholding 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 2.21(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
withholding tax pursuant to Section 2.21(a ) and which
withholding tax may not be eliminated by complying with
Section 2.21(e) , and (d) any backup withholding
tax required to be withheld or paid pursuant to Section 3406
of the Code.
" Existing Notes "
shall mean the Borrower’s existing 9.0% senior notes due
2014.
" Existing Senior Credit
Agreement " shall mean the Borrower’s Amended and
Restated Credit Agreement dated as of January 18, 2006 by and
among the Borrower, as borrower, Royal Bank, as administrative
agent and collateral agent, RBC Capital Markets, as lead arranger
and sole bookrunner, and the lenders party thereto.
" Existing Senior Credit
Documents " shall mean the Existing Senior Credit Agreement
and the credit documents contemplated under and executed by the
Borrower pursuant thereto.
" Extraordinary
Receipt " shall mean any cash received by or paid to or for
the account of any Person not in the ordinary course of business,
including, without limitation, tax refunds ( provided that,
for greater clarity and without limiting the foregoing, ordinary
tax refunds on account of cash taxes actually paid would be
considered ordinary course), pension plan reversions, proceeds of
insurance (including, without limitation, any key man life
insurance but excluding proceeds of business interruption insurance
to the extent such proceeds constitute compensation for lost
earnings), condemnation awards (and payments in lieu thereof),
indemnity payments and any purchase price adjustment received in
connection with any purchase agreement (including any purchase
price adjustment received in connection with the Purchase
Agreement); provided , however , that an
Extraordinary Receipt shall not include cash receipts received from
proceeds of insurance, condemnation awards (or payments in lieu
thereof) or indemnity payments to the extent that such proceeds,
awards or payments are received by any Person in respect of any
third party claim against such Person and applied to pay (or to
reimburse such Person for its prior payment of) such claim and the
costs and expenses of such Person with respect thereto.
" Federal Funds Rate
" shall mean, for any day, the rate per annum equal to the weighted
average of rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds
brokers on such day, as published by the Federal Reserve Bank on
the Business Day next succeeding such day; provided that
(a) if such day is not a Business Day, the Federal Funds Rate
for such day shall be such rate on such transactions on the next
preceding Business Day as so published on the next succeeding
Business Day, and (b) if no such rate is so published on such
next succeeding Business Day, the Federal Funds Rate for such day
shall be the average rate charged to the Administrative Agent on
such day on such transactions as determined by the Administrative
Agent.
ALY Bridge Loan Agreement
8
" Fee Letter " shall
mean the fee letter dated as of October 25, 2006 between the
Borrower and Royal Bank.
" Fees " shall have
the meaning assigned to such term in Section 2.06 .
" Financial Officer
" of any Person shall mean the chief financial officer, principal
accounting officer, treasurer, assistant treasurer or controller of
such Person.
" Fiscal Year "
shall mean the fiscal year of the Borrower and its Subsidiaries
ending on December 31 of each calendar year.
" Foreign Lender "
shall mean any Lender that is organized under the laws of a
jurisdiction other than that in which the Borrower is located. For
purposes of this definition, the United States of America, each
State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.
" Foreign Subsidiary
" shall mean any Subsidiary that is not a Domestic Subsidiary.
" Funded Debt " of
any Person means Indebtedness in respect of the Loans, in the case
of the Borrower, and all other Indebtedness of such Person that by
its terms matures more than one year after the date of
determination or matures within one year from such date but is
renewable or extendible, at the option of such Person, to a date
more than one year after such date or arises under a revolving
credit or similar agreement that obligates the lender or lenders to
extend credit during a period of more than one year after such
date.
" GAAP " shall mean
United States generally accepted accounting principles.
" Governmental
Authority " shall mean the government of the United States
of America or any other nation, any political subdivision thereof,
whether state or local, and any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to
government.
" Guarantee " of or
by any Person shall mean any obligation, contingent or otherwise,
of such Person guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any other
Person (the " primary obligor ") in any manner,
whether directly or indirectly, and including any obligation of
such Person, direct or indirect, (a) to purchase or pay (or
advance or supply funds for the purchase or payment of) such
Indebtedness or other obligation or to purchase (or to advance or
supply funds for the purchase of) any security for the payment of
such Indebtedness or other obligation, (b) to purchase or
lease (including pursuant to Synthetic Lease Obligations, if
applicable) property, securities or services for the purpose of
assuring the owner of such Indebtedness or other obligation of the
payment of such Indebtedness or other obligation, (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 , however , that the
term "Guarantee" shall not include endorsements for collection or
deposit in the ordinary course of business or customary and
reasonable indemnity obligations in effect on the Closing Date or
entered into in connection with any acquisition or disposition of
assets permitted under this Agreement. The amount of any Guarantee
shall be deemed to be an amount equal to the stated or determinable
amount of the primary obligation, or portion thereof, in respect of
which such Guarantee is made or, if not stated or determinable, the
maximum reasonably anticipated liability in respect thereof as
determined by the guaranteeing Person in good faith.
ALY Bridge Loan Agreement
9
" Guaranteed
Obligations " shall have the meaning assigned to such term
in Section 8.01 .
" Guarantors " shall
mean each Domestic Subsidiary of the Borrower listed on Schedule
1.01(a) and each other Subsidiary of the Borrower that is or
becomes a party to this Agreement pursuant to
Article VIII .
" Hazardous
Materials " shall mean any petroleum (including crude oil
or fraction thereof) or petroleum products or byproducts, or any
pollutant or contaminant, or any forces, noise, form of energy,
substance, material or waste characterized, defined, or regulated
as hazardous, toxic, explosive, radioactive, dangerous or words of
similar meaning and effect by, or pursuant to, any Environmental
Law, or which require removal, remediation or reporting under any
Environmental Law, including asbestos, or asbestos containing
material, radioactive material, polychlorinated biphenyls.
" Hedging Agreement
" shall mean any agreement with respect to any swap, forward,
future, cap, collar, floor or derivative transaction or option or
similar agreement involving, or settled by reference to, one or
more rates, currencies, fuel or other 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 , however , that no phantom
stock or similar plan providing for payments and on account of
services provided by current or former directors, officers, members
of management, employees or consultants of the Borrower or any
Subsidiary of the Borrower shall be a Hedging Agreement.
" Indebtedness " of
any Person shall mean, without duplication, (a) all
obligations of such Person for borrowed money or with respect to
deposits or advances of any kind, (b) all obligations of such
Person evidenced by bonds, debentures, notes or similar
instruments, (c) all obligations of such Person upon which
interest charges are customarily paid, (d) all obligations of
such Person under conditional sale or other title retention
agreements relating to property or assets purchased by such Person,
(e) all obligations of such Person issued or assumed as the
deferred purchase price of property or services (excluding trade
accounts payable and accrued obligations incurred in the ordinary
course of business), (f) all Indebtedness of others secured by
any Lien on property owned or acquired by such Person, whether or
not the obligations secured thereby have been assumed, (g) all
Guarantees by such Person of Indebtedness of others, (h) all
Capital Lease Obligations and Synthetic Lease Obligations of such
Person, (i) all obligations of such Person as an account party
in respect of letters of credit or letters of guaranty and
(j) all obligations of such Person in respect of
bankers’ acceptances. The Indebtedness of any Person shall
include the Indebtedness of any other Person (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 other Person, except to the extent the terms of such
Indebtedness provide that such Person is not liable therefor.
" Indemnified Costs
" shall have the meaning assigned to such term in
Section 9.09 .
" Indemnified Taxes
" shall mean Taxes other than Excluded Taxes and Other Taxes.
" Indemnitee "
shall have the meaning assigned to such term in
Section 10.05(b) .
" Interest Payment
Date " shall mean (a) with respect to a Base Rate
Loan, the last Business Day of each March, June, September and
December and (b) with respect to a Eurodollar Rate Loan, the
last day of the Interest Period applicable to such Loan.
" Interest Period "
shall mean, for a Eurodollar Rate Loan, the period commencing on
the date of borrowing and ending on the numerically corresponding
day (or, if there is no numerically corresponding
ALY Bridge Loan Agreement
10
day, on the last day) in the calendar month that is 1, 2, 3 or
6 months, if agreed to or available to all of the
participating Lenders, as the Borrower may elect; provided ,
however , that 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 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 provided , further , that 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 numbers of
months equal to the number of months in such Interest Period shall
end on the last Business Day of such succeeding calendar month.
Interest shall accrue from and including the first day of an
Interest Period to but excluding the last day of such Interest
Period.
" Investments "
shall have the meaning assigned to such term in
Section 6.04 .
" IRS " shall have
the meaning assigned to such term in Section 2.21(e)
.
" Lead Arranger "
shall have the meaning assigned to such term in the recital of
parties hereto.
" Lenders " shall
mean (a) the Persons listed on Schedule 2.01
(other than any such Person that has ceased to be a party hereto
pursuant to an Assignment and Acceptance) and (b) any Person
that has become a party hereto pursuant to an Assignment and
Acceptance.
" Lien " shall mean,
with respect to any asset, (a) any mortgage, deed of trust,
lien (statutory or otherwise), pledge, hypothecation, encumbrance,
collateral assignment, 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 the
Bridge A Loan or the Bridge B Loan.
" Loan Documents "
shall mean this Agreement, the Fee Letter, the promissory notes, if
any, executed and delivered pursuant to Section 2.05(e)
and each document executed by a Loan Party and delivered to the
Administrative Agent or any Lender in connection with or pursuant
to any of the foregoing or the Obligations, together with any
modification of any term of any of the foregoing.
" Loan Parties "
shall mean the Borrower and the Guarantors.
" Loan " shall mean
the senior unsecured bridge loan made collectively by the Lenders
to the Borrower pursuant to Section 2.01 .
" Margin Stock "
shall have the meaning assigned to such term in
Regulation U.
" Material Adverse
Effect " shall mean (a) a material adverse effect on
the business, revenues, operations, condition (financial or
otherwise), liabilities (financial or otherwise), properties or
prospects of the Borrower and its Subsidiaries, taken as a whole,
(b) a material impairment of the ability of any Loan Party to
perform any of its obligations under any Loan Document to which it
is or will be a party or (c) a material impairment of any
rights of or benefits available to the Lenders under any Loan
Document.
" Material
Indebtedness " shall mean Indebtedness (other than the
Loan), or obligations in respect of one or more Hedging Agreements,
of any one or more of the Borrower and its Subsidiaries in an
aggregate principal amount exceeding $2,000,000. For purposes of
determining Material Indebtedness,
ALY Bridge Loan Agreement
11
the "principal amount" of the obligations of the Borrower or any
Subsidiary in respect of any Hedging Agreement at any time shall be
the maximum aggregate amount (giving effect to any netting
agreements) that the Borrower, or such Subsidiary would be required
to pay if such Hedging Agreement were terminated at such time.
" Maturity Date "
shall mean the date that is 18 months following the Closing
Date.
" Maximum Rate "
shall have the meaning assigned to such term in
Section 10.09 .
" Moody’s "
shall mean Moody’s Investors Service, Inc., or any successor
thereto.
" Multiemployer Plan
" shall mean a multiemployer plan as defined in
Section 4001(a)(3) of ERISA to which the Borrower or any of
its ERISA Affiliates 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 and, in respect
of which the Borrower or any of its ERISA Affiliates has any
liability.
" Net Cash Proceeds
" shall mean (a) with respect to any Asset Sale, the proceeds
thereof in the form of cash and Permitted Investments (including
any such proceeds subsequently received (as and when received) in
respect of non-cash consideration initially received), net of
(i) expenses (including reasonable and customary
broker’s fees or commissions, investment banking fees,
consultant fees, legal fees, survey costs, title insurance
premiums, and related search and recording charges, transfer,
recording and similar taxes incurred by the Borrower and its
Subsidiaries in connection therewith and the Borrower’s good
faith estimate of income taxes paid or payable in connection with
such sale) incurred in connection with such Asset Sale,
(ii) amounts provided as a reserve, in accordance with GAAP,
against any liabilities under any indemnification obligations or
purchase price adjustment associated with such Asset Sale (
provided that to the extent and at the time any such amounts
are released from such reserve, such amounts shall constitute Net
Cash Proceeds), (iii) the principal amount, premium or
penalty, if any, interest and other amounts on any Indebtedness for
borrowed money which is secured by the asset sold in such Asset
Sale and which is repaid (other than any such Indebtedness assumed
or repaid by the purchaser); and (b) with respect to any
incurrence of Indebtedness or issuance of any Capital Stock, the
cash proceeds thereof, net of all taxes and customary fees,
commissions, costs and other expenses incurred by the Borrower and
its Subsidiaries in connection therewith.
" Notice of Interest
Election " shall mean a notice given by the Borrower in
accordance with the terms of Section 2.11 and
substantially in the form of Exhibit D , or such other
form as shall be approved by the Administrative Agent.
" Obligations "
shall mean (a) obligations of the Borrower and the Guarantors
from time to time arising under or in respect of the due and
punctual payment of (i) the principal of and premium, if any,
and interest (including interest accruing during the pendency of
any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such
proceeding) on the Loans, when and as due, whether at maturity, by
acceleration, upon one or more dates set for prepayment or
otherwise, and (ii) all other monetary obligations, including
fees, costs, expenses and indemnities, whether primary, secondary,
direct, contingent, fixed or otherwise (including monetary
obligations incurred during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding), of the Borrower
and the Guarantors under this Agreement and the other Loan
Documents, and (b) the due and punctual performance of all
covenants, agreements, obligations and liabilities of the Borrower
and the Guarantors under or pursuant to this Agreement and the
other Loan Documents.
ALY Bridge Loan Agreement
12
" Other Taxes "
shall mean 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 under any Loan Document or from the
execution, delivery or enforcement of, or otherwise with respect
to, any Loan Document.
" Participant
Register " shall have the meaning described to such term in
Section 10.04(f).
" PBGC " shall mean
the Pension Benefit Guaranty Corporation referred to and defined in
ERISA.
" Permitted
Acquisition " shall mean any Borrower Acquisition resulting
in ownership of assets inside the United States, or of Capital
Stock in a Domestic Person; provided , however , that
the following requirements have been satisfied:
(a) with respect to Borrower
Acquisitions involving acquisitions of any Capital Stock, such
Borrower Acquisition shall have been approved or consented by the
board of directors or similar governing entity of the Person being
acquired; and
(b) as of the closing of such
Borrower Acquisition, no Default or Event of Default shall exist or
occur as a result of, and after giving effect to, such Borrower
Acquisition.
" Permitted
Investments " shall mean:
(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 two hundred seventy (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 thirteen (13) months from the date of
acquisition thereof issued or guaranteed by or placed with, and
money market deposit accounts issued or offered by, any domestic
office of any commercial bank organized under the laws of, or is a
foreign bank that is licensed to do business in, the United States
of America or any State thereof that has a combined capital and
surplus and undivided profits of not less than $1,000,000,000;
(d) repurchase agreements
with a term of not more than thirty (30) days for securities
described in clause (a) above and entered into with a
financial institution satisfying the criteria of clause (c)
above;
(e) investments in "money
market funds" within the meaning of Rule 2a-7 of the
Investment Company Act of 1940, as amended, substantially all of
whose assets are invested in investments of the type described in
clauses (a) through (d) above; and
(f) other short-term
investments utilized by Foreign Subsidiaries in accordance with
normal investment practices for cash management in investments of a
type analogous to the foregoing.
" Permitted
Refinancing " shall mean Indebtedness of the Borrower or
any of its Subsidiaries issued or incurred (including by means of
the extension or renewal of existing Indebtedness) to refinance,
refund, extend, renew or replace existing Indebtedness ("
Refinanced Indebtedness "); provided that
ALY Bridge Loan Agreement
13
(a) the principal amount (or, if incurred with original
issue discount, the aggregate accreted value) of such refinancing,
refunding, extending, renewing or replacing Indebtedness (the "
New Indebtedness ") is not greater than the principal
amount of such Refinanced Indebtedness, (b) if such Refinanced
Indebtedness refinances the Existing Senior Credit Agreement or
other Indebtedness that is Material Indebtedness (or a Permitted
Refinancing thereof), such New Indebtedness has a final maturity
that is no sooner than the final maturity of, a weighted average
life to maturity that is not earlier than the remaining weighted
average life of, such Refinanced Indebtedness and an interest rate
that is not higher than the interest rate applicable to such
Refinanced Indebtedness, (c) if such Refinanced Indebtedness
or any Guarantees thereof are subordinated to the Obligations, such
New Indebtedness and any Guarantees thereof remain so subordinated
on terms no less favorable to the Lenders, (d) the obligors in
respect of such Refinanced Indebtedness immediately prior to such
refinancing, refunding, extending, renewing or replacing are the
only obligors on such New Indebtedness, and (e) if such
Refinanced Indebtedness refinances the Existing Senior Credit
Agreement or other Indebtedness that is Material Indebtedness or (a
Permitted Refinancing thereof), such New Indebtedness contains
mandatory redemption (or similar provisions), covenants and events
of default which, taken as a whole, are no less favorable to the
Borrower or the applicable Subsidiary of the Borrower and the
Lenders than the mandatory redemption (or similar provisions),
covenants and events of default or Guarantees, if any, in respect
of such Refinanced Indebtedness; provided, further ,
however , that Permitted Refinancing shall not include (i)
Indebtedness of a Subsidiary of the Borrower that refinances
Indebtedness of the Borrower or (ii) Indebtedness of the Borrower
or a Guarantor that refinances, refunds or replaces any other
Indebtedness of a Subsidiary of the Borrower (other than a
Guarantor).
" Person " shall
mean any natural person, corporation, business trust, joint
venture, association, company, limited liability company,
partnership, Governmental Authority or other entity.
" Plan " shall mean
any employee pension benefit plan as defined in Section 3(2)
of ERISA (other than a Multiemployer Plan) that subject to the
provisions of Title IV of ERISA or Section 412 of the Code or
Section 307 of ERISA and that is sponsored and/or maintained
for eligible individuals who perform services for the Borrower
and/or any of its Subsidiaries or ERISA Affiliates, and in respect
of which the Borrower, any of its Subsidiaries 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.
" Purchase Agreement
" shall have the meaning assigned to such term in the recitals.
" Register " shall
have the meaning assigned to such term in
Section 10.04(d) .
"
Regulation S-X " shall mean Regulation S-X
of the United States Securities and Exchange Commission pursuant to
the Securities Exchange Act of 1934 (as amended and in effect from
time to time).
" Regulation U
" shall mean Regulation U of the Board as from time to time in
effect and all official rulings and interpretations thereunder or
thereof.
" Regulation X
" shall mean Regulation X of the Board as from time to time in
effect and all official rulings and interpretations thereunder or
thereof.
" Related Documents
" means the Existing Senior Credit Documents and each other
document and instrument executed with respect thereof.
ALY Bridge Loan Agreement
14
" Related Fund "
shall mean, with respect to any Lender that is a fund or commingled
investment vehicle that invests in bank loans, any other fund that
invests in bank loans and is managed or advised by the same
investment advisor as such Lender or by an Affiliate of such
investment advisor.
" Related Parties "
shall mean, 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.
" Release " shall
mean any release, spill, emission, leaking, dumping, injection,
pouring, deposit, disposal, discharge, dispersal, leaching or
migration into or through the environment or within or upon any
building, structure, facility or fixture.
" Required Lenders "
shall mean, at any time, Lenders having Commitments or holding
outstanding advances representing more than fifty percent (50%) of
the principal amount of the Loans.
" Responsible
Officer " of any Person shall mean any executive officer or
Financial Officer of such Person and any other officer or similar
official thereof responsible for the administration of the
obligations of such Person in respect of this Agreement.
" Restricted Payment
" shall mean any dividend or other distribution (whether in cash,
securities or other property) with respect to any Capital Stock in
the Borrower or any Subsidiary of the Borrower, 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 Capital Stock in the Borrower or any Subsidiary of the Borrower
or any option, warrant or other right to acquire any such Capital
Stock in the Borrower or any of its Subsidiaries.
" Royal Bank " means
Royal Bank of Canada.
" S&P " shall
mean Standard & Poor’s Ratings Group, Inc. or any
successor thereto.
" Solvent " means,
with respect to any Person, (a) the fair value of the assets
of such Person exceed its debts and liabilities, subordinated,
contingent or otherwise; (b) the present fair saleable value
of the property of such Person is greater than the amount that is
required to pay the probable liability of its debts and other
liabilities, subordinated, contingent or otherwise, as such debts
and other liabilities become absolute and matured; (c) such
Person is able to pay its debts and liabilities, subordinated,
contingent or otherwise, as such debts and liabilities become
absolute and matured; and (d) such Person does not have
unreasonably small capital with which to conduct the business in
which it is engaged.
" Subsidiary " shall
mean, with respect to any Person (herein referred to as the "
parent "), any corporation, partnership, limited
liability company, association or other business entity of which
securities or other ownership interests representing more than
fifty percent (50%) of the ordinary voting power or more than fifty
percent (50%) of the general partnership interests are, at the time
any determination is being made, owned, Controlled or held by the
parent, one or more subsidiaries of the parent or a combination
thereof.
" Synthetic Lease
Obligations " shall mean all monetary obligations of a
Person under (a) a so-called synthetic, off-balance sheet or
tax retention lease or (b) an agreement for the use or
possession of any property (whether real, Personal or mixed)
creating obligations which do not appear on the balance sheet of
such Person, but which, upon the insolvency or bankruptcy of such
Person, would be characterized as Indebtedness of such Person
(without regard to accounting treatment).
ALY Bridge Loan Agreement
15
" Target " shall
have the meaning assigned to such term in the recitals hereto.
" Taxes " shall mean
any and all present or future taxes, levies, imposts, duties,
deductions, charges, liabilities or withholdings imposed by any
Governmental Authority.
" Transactions "
shall mean, collectively, (a) the execution, delivery and
performance by the parties thereto of the Purchase Agreement and
the consummation of the transactions contemplated thereby,
including the Acquisition, (b) the Equity Issuance,
(c) the execution, delivery and performance by the Loan
Parties of the Loan Documents to which they are a party and the
making of the Loans hereunder and the borrowings thereunder and use
of the proceeds hereof and thereof, and (d) the payment of
related fees, costs and expenses.
" Transferred
Guarantor " shall have the meaning assigned to such term in
Section 8.09 .
" Uniform Commercial
Code " or " UCC " means the Uniform
Commercial Code as in effect in any applicable jurisdiction from
time to time.
" USA PATRIOT Act "
shall mean The Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act
of 2001 (Title III of Pub. L. No. 107-56 (signed into law
October 26, 2001)).
" Voting Stock "
shall mean the Capital Stock (or equivalent) of any class or kind,
of a Person, the holders of which are entitled to vote for the
election of directors, managers, or other voting members of the
governing body of such Person.
" weighted average life to
maturity " means, when applied to any Indebtedness at any
date, the number of years obtained by dividing: (i) the sum of
the products obtained by multiplying (a) the amount of each
then remaining installment, sinking fund, serial maturity or other
required payments of principal, including payment at final
maturity, in respect thereof, by (b) the number of years
(calculated to the nearest one-twelfth) that will elapse between
such date and the making of such payment; by (ii) the then
outstanding principal amount of such Indebtedness.
" Withdrawal
Liability " shall mean 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. Terms Generally . The definitions in
Section 1.01 shall apply equally to both 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"; and the words "asset" and
"property" shall be construed as having 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. 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 of this Agreement
unless the context shall otherwise require. All references herein
to Articles, Sections, Exhibits and Schedules shall be deemed
references to Articles and Sections of, and Exhibits and Schedules
to, this Agreement unless the context shall otherwise require.
Except as otherwise expressly provided herein, (a) any
reference in this Agreement to any Loan Document or any other
agreement, instrument or document shall mean such
ALY Bridge Loan Agreement
16
document as amended, restated, amended and restated,
supplemented or otherwise modified from time to time and
(b) all terms of an accounting or financial nature shall be
construed in accordance with GAAP, as in effect from time to time;
provided , however , that if the Borrower notifies
the Administrative Agent that the Borrower wishes to amend any
covenant in Article VI or any related definition to
eliminate the effect of any change in GAAP or the application
thereof occurring after the date of this Agreement on the operation
of such covenant (or if the Administrative Agent notifies the
Borrower that the Required Lenders wish to amend Article VI
or any related definition for such purpose), then the Borrower and
the Administrative Agent shall negotiate in good faith to amend
such covenant and related definitions (subject to the approval of
the Required Lenders) to preserve the original intent thereof in
light of such changes in GAAP; provided that the
Borrower’s compliance with such covenant shall be determined
on the basis of GAAP as applied and in effect immediately before
the relevant change in GAAP or the application thereof became
effective, until such covenant is amended.
SECTION
1.03. Classification of Loans . For purposes of this
Agreement, the Loan may be classified and referred to by type
(e.g., a " Eurodollar Rate Loan ").
SECTION
1.04. References to Agreements and Laws . Unless
otherwise expressly provided herein, (a) references to
organization documents, agreements (including the Loan Documents)
and other contractual instruments shall be deemed to include all
subsequent amendments, amendments and restatements, restatements,
supplements and other modifications thereto, but only to the extent
that such amendments, amendments and restatements, restatements,
supplements and other modifications are not prohibited by any Loan
Document; and (b) references to any law, statute, rule or
regulation shall include all statutory and regulatory provisions
consolidating, amending, replacing, supplementing or interpreting
such law.
SECTION
1.05. Times of Day . Unless otherwise specified, all
references herein to times of day shall be references to Eastern
time (daylight or standard, as applicable).
SECTION
1.06. Timing of Payment or Performance . When the
payment of any obligation or the performance of any covenant, duty
or obligation is stated to be due or performance required on a day
which is not a Business Day, the date of such payment or
performance shall extend to the immediately succeeding Business Day
and such extension of time shall be reflected in computing interest
or fees, as the case may be; provided that with respect to
any payment of interest on or principal of a Eurodollar Rate Loan,
if such extension would cause any such payment to be made in the
next succeeding calendar month, such payment shall be made on the
immediately preceding Business Day.
ARTICLE II
Loans
SECTION
2.01. Commitments . Subject to the terms and
conditions herein set forth and in connection with the borrowing
request made by the Borrower pursuant to Section 2.04 ,
(a) each Bridge A Lender agrees, severally and not jointly, to make
a single advance to the Borrower on the Closing Date in a principal
amount not to exceed its Bridge A Commitment and (b) each
Bridge B Lender agrees, severally and not jointly, to make a single
advance to the Borrower on the Closing Date in a principal amount
not to exceed its Bridge B Commitment.
SECTION
2.02. Loans . (a) Each Loan shall be made as a
single borrowing consisting of advances made by the applicable
Lenders ratably in accordance with their applicable Commitments;
provided , however , that the failure of any Lender
to make any advance in respect of a
ALY Bridge Loan Agreement
17
Loan shall not in itself relieve any other Lender of its
obligation to lend hereunder in respect of its applicable
Commitment (it being understood, however, that no Lender shall be
responsible for the failure of any other Lender to make any advance
required to be made by such other Lender). Amounts paid or prepaid
in respect of the Loans may not be reborrowed.
(b) Subject to
Sections 2.09 and 2.16 , each borrowing
hereunder shall be comprised entirely of a Base Rate Loan or a
Eurodollar Rate Loan at the option of the Borrower; provided,
however , that the Borrower shall not be permitted to select
Eurodollar Rate Loans during the period from the date hereof to the
date that is fifteen (15) days following the Closing Date (or
such earlier date on which a Eurodollar Rate Loan has become
available as shall be specified by the Administrative Agent, in its
sole discretion, in a written notice to the Borrower and the
Lenders). Subject to the immediately preceding sentence, each
Lender may at its option make a Eurodollar Rate Loan by causing any
domestic or foreign branch or Affiliate of such Lender to make such
Loan; provided that any exercise of such option shall not
affect the obligation of the Borrower to repay the Loans in
accordance with the terms of this Agreement. Each Lender shall make
an advance to be made by it hereunder on the Closing Date by wire
transfer of immediately available funds to such account designated
by the Borrower in the Borrowing Request.
SECTION
2.03. Use of Proceeds . The proceeds of the Loans
shall be utilized by the Borrower solely to (a) finance a
portion of the purchase price for the Acquisition and (b) pay
fees, costs and expenses related to the Transactions.
SECTION
2.04. Borrowing Procedure . In order to request a
borrowing hereunder, the Borrower shall have notified the
Administrative Agent of such request by telephone one
(1) Business Day before the Closing Date. Such telephonic
Borrowing Request shall be irrevocable, and shall be confirmed
promptly by hand delivery or fax to the Administrative Agent of the
written Borrowing Request and shall specify the following
information: (i) that the borrowing is to be a Base Rate Loan,
(ii) the date of such borrowing (which shall be the Closing
Date); (iii) the number and location of the account to which
funds are to be disbursed; (iv) the amount of such borrowing;
and (v) whether such borrowing shall be under the Bridge A
Loan or Bridge B Loan. The Administrative Agent shall promptly
advise the applicable Lenders of the notice given pursuant to this
Section 2.04 (and the contents thereof), and of each
Lender’s portion of the request borrowing.
SECTION
2.05. Evidence of Debt; Repayment of Loans .
(a) The Borrower hereby unconditionally promises to pay the
principal amount of each Loan on the Maturity Date.
(b) Each Lender shall
maintain in accordance with its usual practice an account
evidencing the Indebtedness of the Borrower to such Lender
resulting from the advance made by such Lender, including amounts
of principal and interest payable to and received by such Lender
from time to time under this Agreement.
(c) The Administrative Agent
shall maintain accounts in which it will record (i) the amount
of the advance made by each Lender hereunder, the type of each Loan
and, if applicable, the Interest Period applicable thereto,
(ii) the corresponding 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 from the Borrower or any
Guarantor and each Lender’s share thereof.
(d) The entries made in the
account maintained pursuant to paragraph (b) and (c)
above shall be prima facie evidence of the existence and
amounts of the obligations therein recorded; provided ,
however , that the failure of any Lender or the
Administrative Agent to maintain such accounts or any
ALY Bridge Loan Agreement
18
error therein shall not in any manner affect the obligations of
the Borrower to repay the Loan in accordance with the terms of this
Agreement.
(e) Any Lender may request
that an advance made by it hereunder be evidenced by a promissory
note. In such event, the Borrower shall execute and deliver to such
Lender a promissory note payable to such Lender and its permitted
registered assigns in form and substance reasonably acceptable to
the Administrative Agent. Notwithstanding any other provision of
this Agreement, in the event any Lender shall request and receive
such a promissory note, the interests represented by such note
shall at all times (including after any assignment of all or part
of such interests pursuant to Section 10.04 ) be
represented by one or more promissory notes payable to the payee
named therein or its registered assigns.
SECTION
2.06. Fees . (a) The Borrower agrees to pay the
fees set forth below at the times and in the amounts specified
herein (the " Fees "):
(i) on the Closing Date, a
structuring fee equal to 0.75% of the Commitments under each Loan
payable to the Lenders, on a pro rata basis in accordance with
their Commitments;
(ii) on the Closing Date, a
funding fee equal to 0.50% of the funded amount of each Loan
payable to the Lenders, on a pro rata basis in accordance with
their Commitments;
(iii) on the date that is
90 days following the Closing Date, a fee equal to 0.50% of
the outstanding principal amount of each Loan payable to the
Lenders, on a pro rata basis in accordance with their ratable share
of the advances under each Loan; and
(iv) on the date that is twelve
(12) months following the Closing Date, a fee equal to 0.75%
of the outstanding principal amount of each Loan payable to the
Lenders, on a pro rata basis in accordance with their ratable share
of the advances under each Loan.
(b) The Fees shall be paid,
in immediately available funds, to the Lenders, in the case of
clause a(ii) and to Royal Bank, in the case of clause
a(i) above . Once paid, none of the Fees shall be refundable
under any circumstances.
SECTION
2.07. Interest on Loans . (a) Subject to the
provisions of Section 2.08 , a Base Rate Loan made hereunder
shall bear interest (computed on the basis of the actual number of
days elapsed over a year of 365 or 366 days, as the case may
be, and calculated from and including the date of such Borrowing to
but excluding the date of repayment thereof) at a rate per annum
equal to the Base Rate plus the Applicable Rate; provided ,
however , that in no event shall such rate be less than
(i) nine percent (9%) per annum in the case of the Bridge A
Loan and (ii) eleven percent (11%) per annum in the case of the
Bridge B Loan.
(b) Subject to the provisions
of Section 2.08 , a Eurodollar Rate Loan made hereunder
shall bear interest (computed on the basis of the actual number of
days elapsed over a year of 360 days) at a rate per annum equal to
the Eurodollar Rate for the Interest Period in effect for such Loan
plus the Applicable Rate; provided , however , that
in no event shall such rate be less than (i) nine percent (9%) per
annum in the case of the Bridge A Loan and (ii) eleven percent
(11%) per annum in the case of the Bridge B Loan.
(c) Interest on the Loan
shall be payable on the Interest Payment Dates applicable to such
Loan except as otherwise provided in this Agreement. The Eurodollar
Rate for each Interest Period or day within an Interest Period, as
the case may be, shall be determined by the Administrative Agent,
and such determination shall be conclusive absent manifest
error.
ALY Bridge Loan Agreement
19
SECTION
2.08. Default Interest . Upon the occurrence and
during the continuance of an Event of Default, to the extent
permitted by law, all Obligations under the Loan Documents shall
bear interest (including post-petition interest in any proceeding
under any bankruptcy or insolvency laws), payable on demand,
(a) in the case of principal of the Loans, at the rate
otherwise applicable to the Loans pursuant to
Section 2.07 plus the Applicable Rate plus two percent
(2%) per annum and (b) in all other cases, at a rate per annum
(computed on the basis of the actual number of days elapsed over a
year of 360 days) equal to the rate that would be applicable
to the Base Rate Loan plus the Applicable Rate plus two percent
(2%) per annum.
SECTION
2.09. Alternate Rate of Interest . In the event that
on the day that the Administrative Agent receives Borrower’s
applicable notice required by Section 2.11 for a
conversion to or continuation of a Eurodollar Rate Loan, the
Administrative Agent shall have reasonably determined that Dollar
deposits in the principal amount of the borrowing requested by the
Borrower are not generally available in the London interbank
market, or that the rates at which Dollar deposits are being
offered in the London interbank market will not adequately and
fairly reflect the cost to any participating Lender of making or
maintaining its portion of the Eurodollar Rate Loan during the
applicable Interest Period, or that reasonable means do not exist
for ascertaining the Eurodollar Rate for such Interest Period, the
Administrative Agent shall give written or fax notice of such
determination to the Borrower. In the event of any such
determination, until the Administrative Agent shall have advised
the Borrower that the circumstances giving rise to such notice no
longer exist, the request by the Borrower for a Eurodollar Rate
Loan pursuant to Section 2.11 shall be deemed to be a
request for a Base Rate Loan. The determination by the
Administrative Agent under this Section 2.09 shall be
conclusive absent manifest error.
SECTION
2.10. Repayment . The principal amount of each Loan
made hereunder shall be due and payable on the Maturity Date,
together with accrued and unpaid interest, unless accelerated
sooner pursuant to Article VII .
SECTION
2.11. Conversion and Continuation of Borrowings . At
any time after fifteen (15) days following the Closing Date
(or such earlier date as shall be specified by the Administrative
Agent, in its sole discretion, in a written notice to the Borrower
and the Lenders), the Borrower shall have the right upon hand
delivery or fax (or telephone notice promptly confirmed by hand
delivery or fax) to the Administrative Agent of the written Notice
of Interest Election (a) not later than 11:00 a.m., New York
City time, three (3) Business Day prior to conversion, to
convert a Eurodollar Rate Loan into a Base Rate Loan, (b) not
later than 11:00 a.m., New York City time, three
(3) Business Days prior to conversion or continuation, to
convert a Base Rate Loan into a Eurodollar Rate Loan or to continue
a Eurodollar Rate Loan as a Eurodollar Rate Loan for an additional
Interest Period, and (c) not later than 11:00 a.m., New
York City time, three (3) Business Days prior to conversion, to
convert the Interest Period with respect to a Eurodollar Rate Loan
to another permissible Interest Period, subject in each case to the
following:
(i) each conversion or
continuation shall be made pro rata among the applicable Lenders in
accordance with their respective share of the principal amount of
the applicable Loan converted or continued;
(ii) each conversion shall be
effected by each applicable Lender and the Administrative Agent by
recording for the account of such Lender its portion of the
applicable converted Loan; accrued interest on the Eurodollar Rate
Loan being converted shall be paid by the Borrower at the time of
conversion;
ALY Bridge Loan Agreement
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(iii) if a Eurodollar Rate Loan is
converted at a time other than the end of the Interest Period
applicable thereto, the Borrower shall pay, upon demand, any
amounts due to the applicable Lenders pursuant to
Section 2.17 ; and
(iv) after the occurrence and
during the continuance of a Default or Event of Default, no Loan
may be converted into, or continued as, a Eurodollar Rate Loan.
Each Notice of Interest Election
given pursuant to this Section 2.11 shall be
irrevocable and shall refer to this Agreement and specify not later
than 11:00 a.m., New York City time, three (3) Business
Days before the proposed conversion or continuation
(i) whether the applicable Loan is to be converted to or
continued as a Eurodollar Rate Loan or a Base Rate Loan,
(ii) if such notice requests a conversion, the date of such
conversion (which shall be a Business Day) and (iii) if the
applicable Loan is to be converted to or continued as a Eurodollar
Rate Loan, the Interest Period with respect thereto. If no Interest
Period is specified in any such notice with respect to any
conversion to or continuation as a Eurodollar Rate Loan, the
Borrower shall be deemed to have selected an Interest Period of one
month’s duration. The Administrative Agent shall advise the
applicable Lenders of any Notice of Interest Election given
pursuant to this Section 2.11 and of each Lender’s
portion of any converted or continued Loan. In the case of the
Eurodollar Rate Loan, if the Borrower shall not have given notice
in accordance with this Section 2.11 to continue such
Loan into a subsequent Interest Period (and shall not otherwise
have given notice in accordance with this Section 2.11
to convert such Loan), the Eurodollar Rate Loan shall, at the end
of the Interest Period applicable thereto (unless repaid pursuant
to the terms hereof), automatically be continued into a Eurodollar
Rate Loan with an Interest Period of one month’s
duration.
SECTION
2.12. Termination of Commitments . The Commitments
shall automatically terminate upon the making of the Loan to the
Borrower on the Closing Date. Notwithstanding the foregoing, the
Commitments shall automatically terminate at 5:00 p.m., New York
City time, (a) on the date which is one (1) day
immediately following the closing date of the Purchase Agreement,
if the funding of the Loan shall not have been made by such time,
or (b) if the Acquisition is not consummated, on the date on
which the parties terminate the Purchase Agreement or the Purchase
Agreement is terminated in accordance with its terms, whichever
occurs first.
SECTION
2.13. Optional Prepayment . (a) The Borrower
shall have the right at any time and from time to time to prepay
the Loans, in whole or in part, upon at least three (3) Business
Days’ prior written or fax notice (or telephone notice
promptly confirmed by written or fax notice) in the case of a
Eurodollar Rate Loan, or prior written or fax notice (or telephone
notice promptly confirmed by written or fax notice) at least one
(1) Business Day prior to the date of prepayment in the case
of a Base Rate Loan, to the Administrative Agent before
11:00 a.m., New York City time; provided that each
partial prepayment shall be in an amount that is an integral
multiple of $1,000,000 and not less than $1,000,000.
(b) Each notice of prepayment
shall specify the prepayment date and the principal amount of the
Loan (or portion thereof) to be prepaid, shall be irrevocable and
shall commit the Borrower to prepay such Loan by the amount stated
therein on the date stated therein. All prepayments under this
Section 2.13 shall be subject to
Section 2.17 but otherwise without premium or penalty.
All prepayments under this Section 2.13 shall be
accompanied by accrued and unpaid interest on the principal amount
to be prepaid to but excluding the date of payment.
SECTION
2.14. Mandatory Prepayments . (a) No later than
the fifth Business Day following the receipt by the Borrower or any
of its Subsidiaries of (i) Net Cash Proceeds in respect of any
Asset Sale or (ii) any Extraordinary Receipt, the Borrower
shall apply an amount equal to 100% of such proceeds received by
the Borrower or any of its Subsidiaries with respect thereto to
prepay outstanding Loan amounts in accordance with
Section 2.14(c) , excluding, so long as no Default has
occurred and is
ALY Bridge Loan Agreement
21
continuing, any such proceeds that are reinvested in the
business of the Borrower within one hundred eighty (180) days
of receipt thereof; provided that the Borrower shall not be
required to make any portion of such prepayment to the extent such
portion is required to be applied to prepay loans and/or cash
collateralize obligations under the Existing Senior Credit
Agreement.
(b) In the event that the
Borrower or any of its Subsidiaries shall receive Net Cash Proceeds
from (i) the issuance or sale of Capital Stock or
(ii) the issuance or incurrence of Indebtedness, the Borrower
shall, simultaneously with the receipt of such Net Cash Proceeds,
apply an amount equal to 100% of such Net Cash Proceeds to prepay
outstanding Loan amounts in accordance with
Section 2.14(c) ; provided that the Borrower
shall not be required to make any portion of such prepayment to the
extent that such Net Cash Proceeds are in respect of Indebtedness
issued or incurred (or permitted to be issued or incurred) under
the Existing Senior Credit Agreement.
(c) All mandatory prepayments
of outstanding Loans under this Section 2.14 shall be
allocated (i) ratably to the Lenders in respect of the
outstanding Bridge A Loan and the outstanding Bridge B Loan in the
case of proceeds described in paragraph (a) above,
(ii) first ratably to Lenders in respect of the outstanding
Bridge A Loan and, to the extent there is a balance remaining, then
ratably to Lenders in respect of the Bridge B Loan in the case of
proceeds described in clause (ii) of paragraph (b) above,
and (iii) first ratably to the Lenders in respect of the
outstanding Bridge B Loan and, to the extent there is a balance
remaining, then ratably to Lenders in respect of the Bridge A Loan
in the case of proceeds described in clause (i) of paragraph
(b) above. All prepayments under this Section 2.14
shall be subject to Section 2.20 .
(d) The Borrower shall
deliver to the Administrative Agent, at or prior to the time of
each prepayment required under this Section 2.14 ,
(i) a certificate signed by a Financial Officer of the
Borrower setting forth in reasonable detail the calculation of the
amount of such prepayment and (ii) the notice required by
Section 2.13 . Each notice of prepayment shall specify
the prepayment date and the principal amount of the Loans (or
portion thereof) to be prepaid. All prepayments of the outstanding
Loan amounts under this Section 2.14 shall be subject
to Section 2.17 , but shall otherwise be without
premium or penalty, and shall be accompanied by accrued and unpaid
interest on the principal amount to be prepaid up to but excluding
the date of payment.
SECTION
2.15. Reserve Requirements; Change in Circumstances .
(a) Notwithstanding any other provision of this Agreement, if any
Change in Law shall 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 which is reflected in the Eurodollar
Rate) or shall impose on such Lender or the London interbank market
any other condition affecting this Agreement or a Eurodollar Rate
Loan made by such Lender, if applicable, and the result of any of
the foregoing shall be to increase the cost to such Lender of
making or maintaining a Eurodollar Rate Loan or to reduce the
amount of any sum received or receivable by such Lender hereunder
(whether of principal, interest or otherwise) by an amount deemed
by such Lender to be material, then the Borrower will pay to such
Lender upon demand such additional amount or amounts as will
compensate such Lender for such additional costs incurred or
reduction suffered.
(b) If any Lender shall have
determined that any Change in Law regarding capital adequacy 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 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) by an amount deemed by such
Lender to be material,
ALY Bridge Loan Agreement
22
then from time to time the Borrower shall 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 or amounts necessary to compensate such
Lender or its holding company, as applicable, as specified in
paragraph (a) or (b) above shall be delivered to the
Borrower, shall describe the applicable Change in Law, the
resulting costs incurred or reduction suffered and shall be
conclusive absent manifest error. The Borrower shall pay such
Lender the amount shown as due on any such certificate delivered by
it within ten (10) Business Days after its receipt of the
same.
(d) Failure or delay on the
part of any Lender to demand compensation for any increased costs
or reduction in amounts received or receivable or reduction in
return on capital shall not constitute a waiver of such
Lender’s right to demand such compensation; provided
that the Borrower shall not be under any obligation to compensate
any Lender under paragraph (a) or (b) above with
respect to increased costs or reductions with respect to any period
prior to the date that is one hundred eighty (180) days prior
to such request; provided , further , that the
foregoing limitation shall not apply to any increased costs or
reductions arising out of the retroactive application of any Change
in Law within such 180-day period. The protection of this
Section 2.15 shall be available to each Lender
regardless of any possible contention of the invalidity or
inapplicability of the Change in Law that shall have occurred or
been imposed.
SECTION
2.16. Change in Legality . (a) Notwithstanding
any other provision of this Agreement, if any Change in Law shall
make it unlawful for any Lender to maintain a Eurodollar Rate Loan
or to give effect to its obligations as contemplated hereby with
respect to such Eurodollar Rate Loan, then, by written notice to
the Borrower and the Administrative Agent:
(i) such Lender may declare that
no Eurodollar Rate Loan will thereafter (for the duration of such
unlawfulness) be available hereunder (or be continued for
additional Interest Periods) and no Base Rate Loan will thereafter
(for such duration) be converted into a Eurodollar Rate Loan,
whereupon any request to convert a Base Rate Loan to a Eurodollar
Rate Loan or to continue a Eurodollar Rate Loan for an additional
Interest Period) shall, as to such Lender only, be deemed a request
to continue the Base Rate Loan as such for an additional Interest
Period or to convert a Eurodollar Rate Loan into an Base Rate Loan,
as the case may be), unless such declaration shall be subsequently
withdrawn; and
(ii) such Lender may require that
any outstanding Eurodollar Rate Loan made by it be converted to a
Base Rate Loan, in which event such Eurodollar Rate Loan shall be
automatically converted to a Base Rate Loan as of the effective
date of such notice as provided in paragraph (b) below.
In the event any Lender shall exercise its rights under
clause (i) or (ii) above, all payments and
prepayments of principal that would otherwise have been applied to
repay the Eurodollar Rate Loan that would have been made by such
Lender or the converted Eurodollar Rate Loan of such Lender shall
instead be applied to repay each Base Rate Loan made by such Lender
in lieu of, or resulting from the conversion of, such Eurodollar
Rate Loan.
(b) For purposes of this
Section 2.16 , a notice to the Borrower by any Lender
shall be effective as to any Eurodollar Rate Loan made by such
Lender, if lawful, on the last day of the Interest Period then
applicable to such Eurodollar Rate Loan; in all other cases such
notice shall be effective on the date of receipt by the
Borrower.
ALY Bridge Loan Agreement
23
SECTION
2.17. Indemnity . The Borrower shall indemnify each
Lender against any loss or expense that such Lender may sustain or
incur as a consequence of (a) any event, other than a default
by such Lender in the performance of its obligations hereunder,
which results in (i) such Lender receiving or being deemed to
receive any amount on account of the principal of any Eurodollar
Rate Loan prior to the end of the Interest Period in effect
therefor, (ii) the conversion of any Eurodollar Rate Loan to a
Base Rate Loan, or the conversion of the Interest Period with
respect to any Eurodollar Rate Loan, in each case other than on the
last day of the Interest Period in effect therefor, or
(iii) any Eurodollar Rate Loan to be made by such Lender not
being made after notice of such Loan shall have been given by the
Borrower hereunder (any of the events referred to in this clause
(a) above being called a " Breakage Event ") or
(b) any default in the making of any payment or prepayment
required to be made hereunder. In the case of any Breakage Event,
such loss shall include an amount equal to the excess, as
reasonably determined by such Lender, of (i) its cost of
obtaining funds for the Eurodollar Rate Loan that is the subject of
such Breakage Event for the period from the date of such Breakage
Event to the last day of the Interest Period in effect (or that
would have been in effect) for such Loan over (ii) the amount
of interest likely to be realized by such Lender in redeploying the
funds released or not utilized by reason of such Breakage Event for
such period. A certificate of any Lender setting forth any amount
or amounts which such Lender is entitled to receive pursuant to
this Section 2.17 shall be delivered to the Borrower
and shall be conclusive absent manifest error.
SECTION
2.18. Pro Rata Treatment . Except as required under
Section 2.14 , 2.15 , 2.21 or 2.22
, the Loans, each payment or prepayment of principal amount of each
Loan, each payment of interest on each Loan, and each conversion of
each Loan to or continuation of such Loan shall be allocated pro
rata among the applicable Lenders in accordance with the respective
portion of the principal amount of such outstanding Loan. Each
Lender agrees that in computing such Lender’s portion of a
Loan to be made hereunder, the Administrative Agent may, in its
discretion, round each Lender’s percentage of such Loan to
the next highest or lower whole dollar amount.
SECTION
2.19. Sharing of Setoffs . Each Lender agrees that if
it shall, through the exercise of a right of banker’s lien,
setoff or counterclaim against any Loan Party, or pursuant to a
secured claim under Section 506 of Title 11 of the United
States Code or other security or interest arising from, or in lieu
of, such secured claim, received by such Lender under any
applicable bankruptcy, insolvency or other similar law or
otherwise, or by any other means, obtain payment (voluntary or
involuntary) in respect of the Loans as a result of which the
unpaid principal portion of its advances made hereunder shall be
proportionately less than the unpaid principal portion of the
advances made by any other Lender, it shall be deemed
simultaneously to have purchased from such other Lender at face
value, and shall promptly pay to such other Lender the purchase
price for, a participation in the advances of such other Lender, so
that the aggregate unpaid principal amount of the Loans held by
each Lender shall be in the same proportion to the aggregate unpaid
principal amount of the Loans then outstanding as the principal
amount of its advances prior to such exercise of banker’s
lien, setoff or counterclaim or other event was to the principal
amount of the Loans outstanding prior to such exercise of
banker’s lien, setoff or counterclaim or other event;
provided , however , that if any such purchase or
purchases or adjustments shall be made pursuant to this
Section 2.19 and the payment giving rise thereto shall
thereafter be recovered, such purchase or purchases or adjustments
shall be rescinded to the extent of such recovery and the purchase
price or prices or adjustment restored without interest. The
Borrower expressly consents to the foregoing arrangements and
agrees that any Lender holding a participation in the Loan deemed
to have been so purchased may exercise any and all rights of
banker’s lien, setoff or counterclaim with respect to any and
all moneys owing by the Borrower to such Lender by reason thereof
as fully as if such Lender had made the Loan directly to the
Borrower in the amount of such participation.
SECTION
2.20. Payments . (a) The Borrower shall make
each payment (including principal of or interest on each Loan or
any Fees or other amounts) hereunder and under any other Loan
ALY Bridge Loan Agreement
24
Document not later than 11:00 a.m., New York City time, on
the date when due in immediately available Dollars, without setoff,
defense or counterclaim. Each such payment shall be made to the
ratable account of the applicable Lenders at the address for
payment specified in the signature page hereto (or such other
address as the applicable Lenders may from time to time specify in
accordance with Section 10.01 ). All payments hereunder
and under the other Loan Documents shall be made in Dollars. 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.
(b) Except as otherwise
expressly provided herein, whenever any payment (including
principal of or interest on the Loan or any Fees or other amounts)
hereunder or under any other Loan Document shall become due, or
otherwise would occur, on a day that is not a Business Day, such
payment may be made on the next succeeding Business Day, and such
extension of time shall in such case be included in the computation
of interest or Fees, if applicable.
SECTION
2.21. Taxes . (a) Any and all payments by or on
account of any obligation of any Loan Party hereunder or under any
other Loan Document shall be made free and clear of and without
deduction for any Indemnified Taxes or Other Taxes; provided
that if any Indemnified Taxes or Other Taxes are required to be
withheld or deducted from such payments, then (i) the sum
payable shall be increased as necessary so that after making all
required deductions or withholdings (including deductions or
withholdings applicable to additional sums payable under this
Section 2.21 ) the Administrative Agent or the Lender (as
the case may be) receives an amount equal to the sum it would have
received had no such deductions or withholdings been made,
(ii) such Loan Party shall make such deductions or
withholdings and (iii) such Loan Party shall pay the full
amount deducted or withheld 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 thirty
(30) 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 or any
other Loan Party hereunder or under any other Loan Document
(including Indemnified Taxes or Other Taxes imposed or asserted on
or attributable to amounts payable under this
Section 2.21 ) and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto,
whether or not such Indemnified Taxes or Other Taxes were correctly
or legally imposed or asserted by the relevant Governmental
Authority. A certificate as to the amount of such payment or
liability delivered to the Borrower by a Lender or by the
Administrative Agent on behalf of itself or a Lender shall be
conclusive absent manifest error.
(d) As soon as practicable
after any payment of Indemnified Taxes or Other Taxes by the
Borrower or any other Loan Party to a Governmental Authority, the
Borrower shall deliver to the Administrative Agent the original or
a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of the return reporting such
payment or other evidence of such payment reasonably satisfactory
to the Administrative Agent.
(e) Any Foreign Lender that
is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which the Borrower is located,
or any treaty to which such jurisdiction is a party, 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
a payment is to be made to such Lender under this Agreement or
promptly upon learning that any such documentation expired or
became obsolete, at the reasonable request of the Borrower, such
properly completed and executed documentation prescribed by
ALY Bridge Loan Agreement
25
applicable law or reasonably requested by the Borrower as will
permit such payments to be made without withholding or at a reduced
rate of withholding; provided that such Lender is legally
entitled to complete, execute and deliver such documentation. Such
completion, execution or delivery will not be required if, in such
Lender’s judgment, it would materially prejudice the legal
position of such Lender. In addition, each Foreign Lender shall
(i) furnish on or before the date it becomes a party to the
Agreement either (A) two accurate and complete originally
executed copies of U.S. Internal Revenue Service ("
IRS ") Form W-8BEN (or successor form) or
(B) two accurate and complete originally executed copies of
IRS Form W-8ECI (or successor form), certifying, in either case, to
such Foreign Lender’s legal entitlement to an exemption or
reduction from U.S. federal withholding tax with respect to all
interest payments hereunder, and (ii) provide a new Form
W-8BEN (or successor form) or Form W-8ECI (or successor form) upon
the expir
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