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AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT

Guarantee Agreement

AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT | Document Parties: AEG PHOTOCONDUCTOR CORPORATION | BIOLUCENT, LLC | CRUISER, INC | Cytyc Corporation | CYTYC DEVELOPMENT COMPANY LLC | CYTYC INTERIM, INC | CYTYC INTERNATIONAL, INC | CYTYC PRENATAL PRODUCTS CORP | CYTYC SURGICAL PRODUCTS II, LIMITED PARTNERSHIP | CYTYC SURGICAL PRODUCTS III, INC | CYTYC SURGICAL PRODUCTS, LIMITED PARTNERSHIP | DIRECT RADIOGRAPHY CORP | GOLDMAN SACHS CREDIT PARTNERS LP | GSCP, JPMORGAN CHASE BANK, NA | HOLOGIC LIMITED PARTNERSHIP | HOLOGIC, INC | R2 TECHNOLOGY, INC | RBS CITIZENS, NATIONAL ASSOCIATION | ROYAL BANK OF CANADA | SST MERGER CORP | SUROS SURGICAL SYSTEMS, INC | THUNDER TECH CORP You are currently viewing:
This Guarantee Agreement involves

AEG PHOTOCONDUCTOR CORPORATION | BIOLUCENT, LLC | CRUISER, INC | Cytyc Corporation | CYTYC DEVELOPMENT COMPANY LLC | CYTYC INTERIM, INC | CYTYC INTERNATIONAL, INC | CYTYC PRENATAL PRODUCTS CORP | CYTYC SURGICAL PRODUCTS II, LIMITED PARTNERSHIP | CYTYC SURGICAL PRODUCTS III, INC | CYTYC SURGICAL PRODUCTS, LIMITED PARTNERSHIP | DIRECT RADIOGRAPHY CORP | GOLDMAN SACHS CREDIT PARTNERS LP | GSCP, JPMORGAN CHASE BANK, NA | HOLOGIC LIMITED PARTNERSHIP | HOLOGIC, INC | R2 TECHNOLOGY, INC | RBS CITIZENS, NATIONAL ASSOCIATION | ROYAL BANK OF CANADA | SST MERGER CORP | SUROS SURGICAL SYSTEMS, INC | THUNDER TECH CORP

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Title: AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT
Governing Law: New York     Date: 7/17/2008
Industry: Medical Equipment and Supplies     Law Firm: Richards Layton;Brown Rudnick     Sector: Healthcare

AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT, Parties: aeg photoconductor corporation , biolucent  llc , cruiser  inc , cytyc corporation , cytyc development company llc , cytyc interim  inc , cytyc international  inc , cytyc prenatal products corp , cytyc surgical products ii  limited partnership , cytyc surgical products iii  inc , cytyc surgical products  limited partnership , direct radiography corp , goldman sachs credit partners lp , gscp  jpmorgan chase bank  na , hologic limited partnership , hologic  inc , r2 technology  inc , rbs citizens  national association , royal bank of canada , sst merger corp , suros surgical systems  inc , thunder tech corp
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Exhibit 10.1

AMENDED AND RESTATED

CREDIT AND GUARANTY AGREEMENT

dated as of July 17, 2008

among

HOLOGIC, INC.,

CERTAIN SUBSIDIARIES OF HOLOGIC, INC.,

as Guarantors,

VARIOUS LENDERS,

GOLDMAN SACHS CREDIT PARTNERS L.P.,

as Sole Lead Arranger and Sole Lead Bookrunner,

GOLDMAN SACHS CREDIT PARTNERS L.P.,

JPMORGAN CHASE BANK, N.A. and

RBS CITIZENS, NATIONAL ASSOCIATION,

as Co-Syndication Agents,

GOLDMAN SACHS CREDIT PARTNERS L.P.,

as Administrative Agent and Collateral Agent,

and

ROYAL BANK OF CANADA,

as Documentation Agent

 

 

$800,000,000 Senior Secured Credit Facilities

 

 

 


TABLE OF CONTENTS

 

         Page

Section

 

1. DEFINITIONS AND INTERPRETATION

   2
  1.1. Definitions.    2
 

1.2. Accounting Terms

   43
 

1.3. Interpretation, Etc.

   43
 

1.4. Letter of Credit Amounts

   43
 

1.5. Exchange Rates

   43

Section

 

2. LOANS AND LETTERS OF CREDIT

   44
 

2.1. Term Loans

   44
 

2.2. Revolving Loans

   45
 

2.3. Swing Line Loans

   46
 

2.4. Issuance of Letters of Credit and Purchase of Participations Therein

   49
 

2.5. Pro Rata Shares; Availability of Funds

   54
 

2.6. Use of Proceeds

   54
 

2.7. Evidence of Debt; Register; Lenders’ Books and Records; Notes

   55
 

2.8. Interest on Loans

   56
 

2.9. Conversion/Continuation

   58
 

2.10. Default Interest

   58
 

2.11. Fees

   59
 

2.12. Scheduled Payments/Commitment Reductions

   60
 

2.13. Voluntary Prepayments/Commitment Reductions

   62
 

2.14. Mandatory Prepayments/Commitment Reductions

   63
 

2.15. Application of Prepayments/Reductions

   65
 

2.16. General Provisions Regarding Payments

   67
 

2.17. Ratable Sharing

   68
 

2.18. Making or Maintaining Eurodollar Rate Loans

   69
 

2.19. Increased Costs; Capital Adequacy

   71
 

2.20. Taxes; Withholding, Etc.

   72
 

2.21. Obligation to Mitigate

   75
 

2.22. Defaulting Lenders

   75
 

2.23. Removal or Replacement of a Lender

   76
 

2.24. Incremental Facilities

   77

Section

 

3. CONDITIONS PRECEDENT

   79
 

3.1. Closing Date

   79
 

3.2. Restatement Date

   79
 

3.3. Conditions to Each Credit Extension

   84

Section

 

4. REPRESENTATIONS AND WARRANTIES

   86
 

4.1. Organization; Requisite Power and Authority; Qualification

   86
 

4.2. Equity Interests and Ownership

   86
 

4.3. Due Authorization

   87
 

4.4. No Conflict

   87

 

i

 


 

4.5. Governmental Consents

   87
 

4.6. Binding Obligation

   87
 

4.7. Historical Financial Statements

   87
 

4.8. Projections

   88
 

4.9. No Material Adverse Change

   88
 

4.10. No Restricted Junior Payments

   88
 

4.11. Adverse Proceedings, Etc

   88
 

4.12. Payment of Taxes

   88
 

4.13. Properties

   89
 

4.14. Environmental Matters

   90
 

4.15. No Defaults

   90
 

4.16. Material Contracts

   90
 

4.17. Governmental Regulation

   90
 

4.18. Margin Stock

   91
 

4.19. Employee Matters

   91
 

4.20. Employee Benefit Plans

   91
 

4.21. Certain Fees

   92
 

4.22. Solvency

   92
 

4.23. Related Agreements

   92
 

4.24. Compliance with Statutes, Etc.

   92
 

4.25. Disclosure

   93
 

4.26. Senior Indebtedness

   93
 

4.27. PATRIOT Act

   93

Section

 

5. AFFIRMATIVE COVENANTS

   93
 

5.1. Financial Statements and Other Reports

   94
 

5.2. Existence

   98
 

5.3. Payment of Taxes and Claims

   99
 

5.4. Maintenance of Properties

   99
 

5.5. Insurance

   99
 

5.6. Books and Records; Inspections

   100
 

5.7. Lenders Meetings

   100
 

5.8. Compliance with Laws

   100
 

5.9. Environmental

   100
 

5.10. Subsidiaries

   102
 

5.11. Additional Material Real Estate Assets

   103
 

5.12. Interest Rate Protection

   103
 

5.13. Further Assurances

   103
 

5.14. Third Wave Merger

   105
 

5.15. Miscellaneous Covenants

   105
 

5.16. Discharge of Third Wave Obligations

   105

Section

 

6. NEGATIVE COVENANTS

   106
 

6.1. Indebtedness

   107
 

6.2. Liens

   110
 

6.3. No Further Negative Pledges

   112
 

6.4. Restricted Junior Payments

   113

 

ii

 


 

6.5. Restrictions on Subsidiary Distributions

   114
 

6.6. Investments

   114
 

6.7. Financial Covenants

   116
 

6.8. Fundamental Changes; Disposition of Assets; Acquisitions

   117
 

6.9. Disposal of Subsidiary Interests

   119
 

6.10. Sales and Lease-Backs

   119
 

6.11. Transactions with Shareholders and Affiliates

   120
 

6.12. Conduct of Business

   120
 

6.13. Amendments or Waivers of Organizational Documents and Certain Related Agreements

   121
 

6.14. Amendments or Waivers of with respect to Senior Unsecured Indebtedness and Subordinated Indebtedness

   121
 

6.15. Fiscal Year

   121
 

6.16. Massachusetts Securities Corporation

   121

Section

 

7. GUARANTY

   122
 

7.1. Guaranty of the Obligations

   122
 

7.2. Contribution by Guarantors

   122
 

7.3. Payment by Guarantors

   122
 

7.4. Liability of Guarantors Absolute

   123
 

7.5. Waivers by Guarantors

   125
 

7.6. Guarantors’ Rights of Subrogation, Contribution, Etc.

   125
 

7.7. Subordination of Other Obligations

   126
 

7.8. Continuing Guaranty

   126
 

7.9. Authority of Guarantors or Borrower

   126
 

7.10. Financial Condition of Borrower

   126
 

7.11. Bankruptcy, Etc.

   127
 

7.12. Discharge of Guaranty Upon Sale of Guarantor

   127

Section

 

8. EVENTS OF DEFAULT

   128
 

8.1. Events of Default

   128

Section

 

9. AGENTS

   131
 

9.1. Appointment of Agents

   131
 

9.2. Powers and Duties

   132
 

9.3. General Immunity

   132
 

9.4. Agents Entitled to Act as Lender

   133
 

9.5. Lenders’ Representations, Warranties and Acknowledgment

   134
 

9.6. Right to Indemnity

   134
 

9.7. Successor Administrative Agent, Collateral Agent and Swing Line Lender

   134
 

9.8. Collateral Documents and Guaranty

   136
 

9.9. Withholding Taxes

   138

Section

 

10. MISCELLANEOUS

   139
 

10.1. Notices

   139
 

10.2. Expenses

   140
 

10.3. Indemnity

   141

 

iii

 


 

10.4. Set-Off

   141
 

10.5. Amendments and Waivers

   142
 

10.6. Successors and Assigns; Participations

   144
 

10.7. Independence of Covenants

   148
 

10.8. Survival of Representations, Warranties and Agreements

   148
 

10.9. No Waiver; Remedies Cumulative

   148
 

10.10. Marshalling; Payments Set Aside

   148
 

10.11. Severability

   148
 

10.12. Obligations Several; Independent Nature of Lenders’ Rights

   148
 

10.13. Headings

   149
 

10.14. APPLICABLE LAW

   149
 

10.15. CONSENT TO JURISDICTION

   149
 

10.16. WAIVER OF JURY TRIAL

   150
 

10.17. Confidentiality

   150
 

10.18. Usury Savings Clause

   151
 

10.19. Counterparts

   151
 

10.20. Effectiveness; Entire Agreement

   151
 

10.21. PATRIOT Act

   152
 

10.22. Electronic Execution of Assignments

   152
 

10.23. No Fiduciary Duty

   152
 

10.24. Amendment and Restatement

   152
 

10.25. Reaffirmation and Grant of Security Interests

   153

 

iv

 


APPENDICES:   A-1   Tranche A Term Loan Commitments
  A-2   Tranche B Term Loan Commitments
  A-3   Revolving Commitments
  B   Notice Addresses
SCHEDULES:   1.1A   Asset Sales
  1.1B   Excluded Foreign Subsidiaries
  1.1C   Closing Date Mortgaged Properties
  1.1D   Foreign Intellectual Property Security Agreements
  1.1E   Foreign Stock Pledges
  1.1F   Immaterial Foreign Subsidiaries
  1.1G   Immaterial Domestic Subsidiaries
  4.1   Jurisdictions of Organization and Qualification, Capital Structure
  4.2   Equity Interests and Ownership
  4.11   Adverse Proceedings
  4.13(b)   Real Estate Assets
  4.13(c)   Intellectual Property
  4.16   Material Contracts
  6.1   Certain Indebtedness
  6.2   Certain Liens
  6.3   Negative Pledges
  6.4   Certain Restricted Payments
  6.5   Certain Restrictions on Subsidiary Distributions
  6.6(l)   Certain Investments
  6.6(q)   Certain Third Wave Investments
  6.10   Sale and Leasebacks
  6.11   Certain Affiliate Transactions
EXHIBITS:   A-1   Funding Notice
  A-2   Conversion/Continuation Notice
  B-1   Tranche A Term Loan Note
  B-2   Tranche B Term Loan Note
  B-3   Revolving Loan Note
  B-4   Swing Line Note
  C   Compliance Certificate
  D-1   Opinion of Brown Rudnick LLP (New York and Massachusetts)
  D-2   Opinion of Brown Rudnick LLP (Connecticut)
  D-3   Opinion of Brown Rudnick LLP (England and Wales)
  D-4   Opinion of Kemp Strang
  D-5   Opinion of Mourant du Feu & Jeune
  D-6   Opinion of Taylor Wessing
  D-7   Opinion of Holman Fenwick & Willan
  D-8   Opinion of Lexence
  D-9   Opinion of Froriep Renggli
  D-10   Opinion of Richards, Layton & Finger, P.A.
  D-11   Opinion of Dann Pecar Newman & Kleiman, P.C.
  D-12   Opinion of Backus, Meyer, Solomon & Branch, LLP

 

v

 


  E    Assignment Agreement
  F    Certificate re Non-Bank Status
  G-1    Restatement Date Certificate
  G-2    Solvency Certificate
  H    Counterpart Agreement
  I    [Reserved]
  J-1    Mortgage
  J-2    Mortgage Modification
  K    Landlord Waiver and Consent Agreement
  L    [Reserved]
  M    Joinder Agreement

 

vi

 


AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT

This AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT dated as of July 17, 2008 is entered into by and among HOLOGIC, INC. , a Delaware corporation (the “ Borrower ”), certain Subsidiaries of the Borrower, as Guarantors, the Lenders party hereto from time to time, GOLDMAN SACHS CREDIT PARTNERS L.P. (“ GSCP ”), as sole lead arranger and sole lead bookrunner (in such capacities, the “ Sole Lead Arranger ”), GSCP , JPMORGAN CHASE BANK, N.A. (“ JPM ”) and RBS CITIZENS, NATIONAL ASSOCIATION (“ Citizens ”), as Co-Syndication Agents (in such capacities, the “ Co-Syndication Agents ”), GSCP , as Administrative Agent (together with its permitted successors in such capacity, the “ Administrative Agent ”) and as Collateral Agent (together with its permitted successor in such capacity, the “ Collateral Agent ”), and ROYAL BANK OF CANADA (“ RBC ”), as Documentation Agent (in such capacity, the “ Documentation Agent ”).

RECITALS:

WHEREAS, capitalized terms used and not defined in these Recitals have the respective meanings set forth for such terms in Section 1.1 hereof;

WHEREAS, the Borrower, the Guarantors, GSCP and Banc of America Securities LLC, as joint lead arrangers, Bank of America, N.A., as syndication agent, GSCP, as administrative agent and as collateral agent, Citicorp North America, Inc., JPMorgan Chase Bank, N.A., RBS Citizens, National Association and Fifth Third Bank, an Ohio Banking Corporation, as co-documentation agents, and the lenders party thereto from time to time, are parties to that certain Credit and Guaranty Agreement dated as of October 22, 2007 (as amended, restated, amended and restated, supplemented or otherwise modified prior to the date hereof, the “ Existing Credit Agreement ”);

WHEREAS, the Borrower desires that certain of the existing lenders and other parties hereto agree to amend and restate the Existing Credit Agreement in its entirety to: (i) extend to the Borrower $400,000,000 aggregate principal amount of Tranche A Term Loans and $200,000,000 aggregate principal amount of Tranche B Term Loans, the proceeds of which will be used (together, at the Borrower’s election, with the proceeds of Revolving Loans) to fund the Third Wave Consideration and Related Expenditures; and (ii) make certain other changes as more fully set forth herein, which amendment and restatement shall become effective upon the Restatement Date;

WHEREAS, the Requisite Lenders have, on or prior to the Restatement Date, authorized the Administrative Agent to execute this Agreement on their behalf;

WHEREAS, the Borrower has agreed to secure all of its Obligations by reaffirming its grant to the Collateral Agent, for the benefit of the Secured Parties, of a First Priority Lien on substantially all of its assets, including a pledge of all of the Equity Interests of certain of its Domestic Subsidiaries and 65% of all the Equity Interests of certain of its First-Tier Foreign Subsidiaries;

WHEREAS, Guarantors have agreed to guarantee the obligations of the Borrower hereunder and to secure their respective Obligations by reaffirming their grant to the Collateral

 


Agent, for the benefit of the Secured Parties, of a First Priority Lien on substantially all of their respective assets, including a pledge of all of the Equity Interests in certain of their respective Domestic Subsidiaries and 65% of all the Equity Interests of certain of their respective First-Tier Foreign Subsidiaries;

WHEREAS, it is the intent of the parties hereto that this Agreement not constitute a novation of the obligations and liabilities of the parties under the Existing Credit Agreement and that this Agreement amend, restate and replace in its entirety the Existing Credit Agreement and re-evidence the Obligations outstanding on the Restatement Date as contemplated hereby; and

WHEREAS, it is the intent of the Credit Parties to confirm that all Obligations of the Credit Parties under the other Credit Documents, as amended hereby, shall continue in full force and effect and that, from and after the Restatement Date, all references to the “Credit Agreement” contained therein shall be deemed to refer to this Agreement;

NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, the parties hereto agree as follows:

SECTION 1. DEFINITIONS AND INTERPRETATION

1.1. Definitions. The following terms used herein, including in the preamble, recitals, exhibits and schedules hereto, shall have the following meanings:

Acquisition Condition ” means, with respect to any determination under Section 6.1(n) as to whether proceeds of the issuance of Senior Unsecured Indebtedness may be applied by the Borrower to make Permitted Acquisitions, that both of the following conditions shall have been satisfied as at such date of determination, in each case calculated on a pro forma basis after giving effect to the incurrence of such Indebtedness and the proposed application of the proceeds of such Indebtedness (including in respect of the proposed Permitted Acquisition) in accordance with the provisions of Section 6.7(c): (i) the Senior Secured Leverage Ratio shall be less than 2.00, and (ii) the Leverage Ratio shall be no greater than the level therefor otherwise applicable in accordance with Section 6.7, minus 0.25.

Adjusted Consolidated Interest Expense ” means for any period, total interest expense in accordance with GAAP (including that portion attributable to Capital Leases in accordance with GAAP and capitalized interest) of the Borrower and its Subsidiaries on a consolidated basis with respect to all outstanding Indebtedness of the Borrower and its Subsidiaries, including all commissions, discounts and other fees and charges owed with respect to letters of credit and net costs under Interest Rate Agreements, but excluding, however, any amount not payable in Cash and any amounts referred to in Section 2.11(f) payable on or before the Restatement Date and excluding imputed non-cash interest charges relating to convertible bonds now or hereafter outstanding.

Adjusted Eurodollar Rate ” means, for any Interest Rate Determination Date with respect to an Interest Period for a Eurodollar Rate Loan, the rate per annum obtained by dividing (and rounding upward to the next whole multiple of  1 / 16 of 1%) (i) (a) the rate per annum (rounded to the nearest 1/100 of 1%) equal to the rate determined by the Administrative Agent to be the offered rate which appears on the page of the Reuters Screen which displays an

 

2

 


average British Bankers Association Interest Settlement Rate (such page currently being LIBOR01 page) for deposits (for delivery on the first day of such period) with a term equivalent to such period in Dollars, determined as of approximately 11:00 a.m. (London, England time) on such Interest Rate Determination Date, or (b) in the event the rate referenced in the preceding clause (a) does not appear on such page or service or if such page or service shall cease to be available, the rate per annum (rounded to the nearest 1/100 of 1%) equal to the rate determined by the Administrative Agent to be the offered rate on such other page or other service which displays an average British Bankers Association Interest Settlement Rate for deposits (for delivery on the first day of such period) with a term equivalent to such period in Dollars, determined as of approximately 11:00 a.m. (London, England time) on such Interest Rate Determination Date, or (c) in the event the rates referenced in the preceding clauses (a) and (b) are not available, the rate per annum (rounded to the nearest 1/100 of 1%) equal to the offered quotation rate to first class banks in the London interbank market by Bank of America, N.A. for deposits (for delivery on the first day of the relevant period) in Dollars of amounts in same day funds comparable to the principal amount of the applicable Loan of the Administrative Agent, in its capacity as a Lender, for which the Adjusted Eurodollar Rate is then being determined with maturities comparable to such period as of approximately 11:00 a.m. (London, England time) on such Interest Rate Determination Date, by (ii) an amount equal to (a) one minus (b) the Applicable Reserve Requirement.

Administrative Agent ” as defined in the preamble hereto.

Adverse Proceeding ” means any action, suit, proceeding, hearing (in each case, whether administrative, judicial or otherwise), governmental investigation or arbitration (whether or not purportedly on behalf of the Borrower or any of its Subsidiaries) at law or in equity, or before or by any Governmental Authority, domestic or foreign (including any Environmental Claims), whether pending or, to the knowledge of any Authorized Officer of the Borrower or any of its Subsidiaries, threatened against or affecting the Borrower or any of its Subsidiaries or any property of the Borrower or any of its Subsidiaries.

Affected Lender ” as defined in Section 2.18(b).

Affected Loans ” as defined in Section 2.18(b).

Affiliate ” means (a) as applied to any Person that is not a Credit Party or an Affiliate (as determined under clause (b) below) of a Credit Party, any other Person directly or indirectly controlling, controlled by, or under common control with, that Person. For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power (i) to vote 5% or more of the Securities having ordinary voting power for the election of directors of such Person or (ii) to direct or cause the direction of the management and policies of that Person, whether through the ownership of voting securities or by contract or otherwise; and (b) as applied to any Person that is a Credit Party, any other Person directly or indirectly controlling, controlled by, or under common control with, that Person. For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power (i) to vote 10%

 

3

 


or more of the Securities having ordinary voting power for the election of directors of such Person or (ii) to direct or cause the direction of the management and policies of that Person, whether through the ownership of voting securities or by contract or otherwise.

Agent ” means each of the Administrative Agent, the Co-Syndication Agents, the Collateral Agent and the Documentation Agent.

Agent Affiliates ” as defined in Section 10.1(b)(iii).

Aggregate Amounts Due ” as defined in Section 2.17.

Aggregate Payments ” as defined in Section 7.2.

Agilent ” means Agilent Technologies, Inc.

Agilent Acquisition ” means the acquisition by Third Wave from Agilent of certain patents and certain other Intellectual Property related to various methods for the detection of a target nucleic acid sequence, the consideration for which is the Agilent Deferred Payment Obligations. The Agilent Deferred Payment Obligations are or shall be secured by the Liens of Agilent in the patents and other Intellectual Property so purchased by Third Wave.

Agilent Deferred Payment Obligations ” means the approximate aggregate purchase price of $3,900,000, which is or shall be payable over three (3) years, beginning on June 1, 2008.

Agreed Currency ” means Dollars, Euro, Pounds Sterling, Japanese Yen, Swiss Francs, and such other currencies as are acceptable to the Issuing Bank.

Agreement ” means this Amended and Restated Credit and Guaranty Agreement dated as of July [      ], 2008, as it may be refinanced, amended, restated, amended and restated, supplemented or otherwise modified from time to time.

Amended and Restated Collateral Questionnaire ” means that certain Amended and Restated Pre-Closing UCC Diligence Certificate dated as of July 17, 2008, executed and delivered by the Borrower and the other Credit Parties named therein which amends and restates (i) that certain Collateral Questionnaire dated as of October 19, 2007 by the Borrower and the other Credit Parties named therein and (ii) that certain Collateral Questionnaire dated as of October 17, 2007 by Cytyc Corporation and the other Credit Parties named therein that provides information with respect to the personal and mixed property of each Credit Party as of the Restatement Date.

Applicable Date ” as defined in Section 2.18(b).

Applicable Margin ” and “ Applicable Revolving Commitment Fee Percentage ” mean (i) with respect to Revolving Loans and Tranche A Term Loans that are Eurodollar Rate Loans and the Applicable Revolving Commitment Fee Percentage, (a) from the Restatement Date until the date of delivery of the Compliance Certificate and the financial statements for the first full Fiscal Quarter after the Restatement Date, a percentage, per annum,

 

4

 


determined by reference to Tier 2 in the following table; and (b) thereafter, a percentage, per annum, determined by reference to the Leverage Ratio in effect from time to time as set forth below:

 

Tier

   Leverage Ratio    Applicable Margin     Applicable Revolving
Commitment Fee
Percentage
 

Tier 1

   > 4.50:1.00    2.75 %   0.50 %

Tier 2

   £ 4.50:1.00

> 3.50:1.00

   2.50 %   0.50 %

Tier 3

   £ 3.50:1.00

> 2.00:1.00

   2.25 %   0.375 %

Tier 4

   £ 2.00:1.00

> 1.00:1.00

   2.00 %   0.375 %

Tier 5

   £ 1.00:1.00    1.75 %   0.25 %

; and (ii) with respect to Swing Line Loans, Revolving Loans and Tranche A Term Loans that are Base Rate Loans, an amount equal to (a) the Applicable Margin for Eurodollar Rate Loans as set forth in clause (i)(a) or (i)(b) above, as applicable, minus (b) 1.00% per annum. No change in the Applicable Margin or the Applicable Revolving Commitment Fee Percentage shall be effective until three (3) Business Days after the date on which Administrative Agent shall have received the applicable financial statements and a Compliance Certificate pursuant to Section 5.1(d) calculating the Leverage Ratio. At any time the Borrower has not submitted to Administrative Agent the applicable information as and when required under Section 5.1(d), the Applicable Margin and the Applicable Revolving Commitment Fee Percentage shall be determined by reference to Tier 2 in the above table. Within one (1) Business Day after receipt of the applicable information under Section 5.1(d), Administrative Agent shall give each Lender telefacsimile or telephonic notice (confirmed in writing) of the Applicable Margin and the Applicable Revolving Commitment Fee Percentage in effect from such date. In the event that any financial statement or certificate delivered pursuant to Section 5.1 is shown to be inaccurate (at a time when this Agreement is in effect and unpaid Obligations under this Agreement are outstanding (other than indemnities and other contingent obligations not yet due and payable)), and such inaccuracy, if corrected, would have led to the application of a higher Applicable Margin for any period (an “ Applicable Period ”) than the Applicable Margin applied for such Applicable Period, then (i) the Borrower shall immediately deliver to Administrative Agent a correct certificate required by Section 5.1 for such Applicable Period, (ii) the Applicable Margin shall be determined by reference to Tier 1 in the above table for such Applicable Period and (iii) the Borrower shall immediately pay to Administrative Agent the accrued additional interest owing as a result of such increased Applicable Margin for such Applicable Period. Nothing in this paragraph shall limit the right of Administrative Agent or any Lender under Section 2.10 or Section 8.

Applicable Period ” as defined in the definition of “Applicable Margin.”

Applicable Reserve Requirement ” means, at any time, for any Eurodollar Rate Loan, the maximum rate, expressed as a decimal, at which reserves (including any basic

 

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marginal, special, supplemental, emergency or other reserves) are required to be maintained with respect thereto against “Eurocurrency liabilities” (as such term is defined in Regulation D) under regulations issued from time to time by the Board of Governors or other applicable banking regulator. Without limiting the effect of the foregoing, the Applicable Reserve Requirement shall reflect any other reserves required to be maintained by member banks with respect to (i) any category of liabilities which includes deposits by reference to which the applicable Adjusted Eurodollar Rate or any other interest rate of a Loan is to be determined, or (ii) any category of extensions of credit or other assets which include Eurodollar Rate Loans. A Eurodollar Rate Loan shall be deemed to constitute Eurocurrency liabilities and as such shall be deemed subject to reserve requirements without benefits of credit for proration, exceptions or offsets that may be available from time to time to the applicable Lender. The rate of interest on Eurodollar Rate Loans shall be adjusted automatically on and as of the effective date of any change in the Applicable Reserve Requirement.

Approved Electronic Communications ” means any notice, demand, communication, information, document or other material that any Credit Party provides to Administrative Agent pursuant to any Credit Document or the transactions contemplated therein which is distributed to the Agents or the Lenders by means of electronic communications pursuant to Section 10.1(b).

Asset Sale ” means a sale, lease or sub-lease (as lessor or sublessor), sale and leaseback, assignment, conveyance, exclusive license (as licensor or sublicensor), transfer or other disposition to, or any exchange of property with, any Person (other than the Borrower or any Guarantor), in one transaction or a series of transactions, of all or any part of the Borrower’s or any of its Subsidiaries’ businesses, assets or properties of any kind, whether real, personal, or mixed and whether tangible or intangible, whether now owned or hereafter acquired, created, leased or licensed, including the Equity Interests of any of the Borrower’s Subsidiaries, other than (i) inventory (or other assets) sold, leased or licensed out in the ordinary course of business (excluding any such sales, leases or licenses out by operations or divisions discontinued or to be discontinued), (ii) sales, leases or licenses out of other assets for aggregate consideration of less than $10,000,000 with respect to any transaction or series of related transactions and less than $20,000,000 in the aggregate during any Fiscal Year, (iii) the transactions listed on Schedule 1.1A and (iv) the surrender or waiver of contract rights on the settlement, release or surrender of contract, tort or other claims of any kind or the non-exclusive cross-license of Intellectual Property (including in connection with the settlement of Adverse Proceedings listed on Schedule 4.11).

Assignment Agreement ” means an Assignment and Assumption Agreement substantially in the form of Exhibit E, with such amendments or modifications as may be approved by the Administrative Agent.

Assignment Effective Date ” as defined in Section 10.6(b).

Authorized Officer ” means, as applied to any Person, any individual holding the position of chief executive officer, or president, and such Person’s chief financial officer, chief accounting officer, corporate controller or treasurer (or, in each such case, the equivalent position however titled).

 

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Availability Period ” means the period beginning on the Business Day after the Restatement Date and ending on the Term Loan Commitment Termination Date.

Bankruptcy Code ” means Title 11 of the United States Code entitled “Bankruptcy,” as now and hereafter in effect, or any successor statute.

Base Rate ” means, for any day, a rate per annum equal to the greater of (i) the Prime Rate in effect on such day and (ii) the Federal Funds Effective Rate in effect on such day plus  1 / 2 of 1%. Any change in the Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate shall be effective on the effective day of such change in the Prime Rate or the Federal Funds Effective Rate, respectively.

Base Rate Loan ” means a Loan bearing interest at a rate determined by reference to the Base Rate.

Beneficiary ” means each Agent, the Issuing Bank, each Lender and each Lender Counterparty.

Board of Governors ” means the Board of Governors of the Federal Reserve System of the United States, or any successor thereto.

Borrower ” as defined in the preamble hereto.

Business Day ” means (i) any day excluding Saturday, Sunday and any day which is a legal holiday under the laws of the State of New York or is a day on which banking institutions located in such state are authorized or required by law or other governmental action to close and (ii) with respect to all notices, determinations, fundings and payments in connection with the Adjusted Eurodollar Rate or any Eurodollar Rate Loans, the term “ Business Day ” means any day which is a Business Day described in clause (i) and which is also a day for trading by and between banks in Dollar deposits in the London interbank market.

Business Plan ” as defined in Section 5.1(i).

Capital Lease ” means, as applied to any Person, any lease of any property (whether real, personal or mixed) by that Person as lessee that, in conformity with GAAP, is or should be accounted for as a capital lease on the balance sheet of that Person.

Cash ” means money, currency or a credit balance in any demand or Deposit Account.

Cash Equivalents ” means, as at any date of determination, any of the following: (i) marketable securities (a) issued or directly and unconditionally guaranteed as to interest and principal by the United States Government or (b) issued by any agency of the United States the obligations of which are backed by the full faith and credit of the United States, in each case maturing within one year after such date; (ii) marketable direct obligations issued by any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof, in each case maturing within one year after such date and having, at the time of the acquisition thereof, a rating of at least A-1 from S&P or at least P-1 from Moody’s;

 

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(iii) commercial paper maturing no more than one year from the date of creation thereof and having, at the time of the acquisition thereof, a rating of at least A-1 from S&P or at least P-1 from Moody’s; (iv) certificates of deposit or bankers’ acceptances maturing within one year after such date and issued or accepted by any Lender or by any commercial bank organized under the laws of the United States of America or any state thereof or the District of Columbia that (a) is at least “adequately capitalized” (as defined in the regulations of its primary federal banking regulator) and (b) has Tier 1 capital (as defined in such regulations) of not less than $100,000,000; and (v) shares of any money market mutual fund that (a) has substantially all of its assets invested continuously in the types of investments referred to in clauses (i) through (iii) above, (b) has net assets of not less than $500,000,000, and (c) has the highest rating obtainable from either S&P or Moody’s.

Cash Management Agreements ” means those agreements entered into from time to time by the Borrower or its Subsidiaries with a Cash Management Provider in connection with the obtaining of any Cash Management Services that has been designated by the Borrower and such Cash Management Provider by notice to the Administrative Agent as a Cash Management Agreement.

Cash Management Obligations ” means all obligations, liabilities, contingent reimbursement obligations, fees and expenses owing by the Borrower or any of its Subsidiaries to any Cash Management Provider pursuant to or evidenced by the Cash Management Agreements and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising.

Cash Management Provider ” means any Lender or Affiliate of a Lender which provides Cash Management Services to the Borrower or its Subsidiaries; provided that each such Affiliate shall appoint the Collateral Agent as its agent and agree to be bound by the Credit Documents as a Secured Party, subject to Section 9.8(c).

Cash Management Services ” means any cash management, including controlled disbursement, accounts or related services (including the Automated Clearing House processing of electronic funds transfers through the direct Federal Reserve Fedline system) provided to the Borrower or any of its Subsidiaries by a Cash Management Provider.

Certificate re Non-Bank Status ” means a certificate substantially in the form of Exhibit F.

Change of Control ” means, at any time, (i) any Person or “group” (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act) (a) shall have acquired beneficial ownership of 35% or more on a fully diluted basis of the voting and/or economic interest in the Equity Interests of the Borrower or (b) shall have obtained the power (whether or not exercised) to elect a majority of the members of the board of directors (or similar governing body) of the Borrower; (ii) the majority of the seats (other than vacant seats) on the board of directors (or similar governing body) of the Borrower ceases to be occupied by Persons who either (a) were members of the board of directors of the Borrower on the Closing Date or (b) were nominated for election by the board of directors of the Borrower or a nominating committee thereof, a majority of whom were directors on the Closing Date or whose election or nomination for

 

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election was previously approved by a majority of such directors or (iii) the occurrence of a “Change of Control” (or any comparable term) under, and as defined in, the documents evidencing any Indebtedness permitted under Section 6.1(l), 6.1(n) or 6.1(o).

Citizens ” as defined in the preamble hereto.

Class ” means (i) with respect to Lenders, each of the following classes of Lenders: (a) Lenders having Tranche A Term Loan Exposure, (b) Lenders having Tranche B Term Loan Exposure, (c) Lenders having Revolving Exposure (including the Swing Line Lender) and (d) Lenders having New Term Loan Exposure, and (ii) with respect to Loans, each of the following classes of Loans: (a) Tranche A Term Loans, (b) Tranche B Term Loans, (c) Revolving Loans (including Swing Line Loans) and (d) each Series of New Term Loans.

Closing Date ” means October 22 2007, the date on which the conditions precedent set forth in Section 3.1 of the Existing Credit Agreement were satisfied or waived in accordance with the terms thereof.

Closing Date Mortgaged Property ” means each Real Estate Asset listed on Schedule 1.1C.

Co-Syndication Agents ” as defined in the preamble hereto.

Collateral ” means, collectively, all of the real, personal and mixed property (including Equity Interests) in which Liens are purported to be granted pursuant to the Collateral Documents as security for the Obligations.

Collateral Agent ” as defined in the preamble hereto.

Collateral Documents ” means the Pledge and Security Agreement, the Foreign Stock Pledges, the Mortgages, the Mortgage Modifications, the Intellectual Property Security Agreements, the Foreign Intellectual Property Security Agreements, the Landlord Personal Property Collateral Access Agreements, if any, and all other instruments, documents and agreements delivered by any Credit Party pursuant to this Agreement, the Existing Credit Agreement or any of the other Credit Documents in order to grant to the Collateral Agent, for the benefit of the Secured Parties, a Lien on any real, personal or mixed property of that Credit Party as security for the Obligations.

Commitment ” means any Revolving Commitment or Term Loan Commitment.

Commitment Letter ” as defined in Section 10.20.

Compliance Certificate ” means a Compliance Certificate substantially in the form of Exhibit C.

Consolidated Adjusted EBITDA ” means, for any period, an amount determined for the Borrower and its Subsidiaries on a consolidated basis equal to (i) Consolidated Net Income, plus , to the extent reducing Consolidated Net Income, the sum, without duplication, of amounts for (a) Adjusted Consolidated Interest Expense, (b) provisions

 

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for federal, state, local and foreign taxes based on income or gains, (c)total depreciation expense, (d)total amortization expense, (e) non-cash charges related to Hedge Agreements, (f) non-cash expenses resulting from the grant, assumption or acceleration of stock options, restricted stock, SARs and other equity or phantom equity to any director, officer, employee or consultant of any Credit Party pursuant to a written plan or agreement, (g) nonrecurring losses, charges and expenses incurred in connection with (in each case, including any such transaction consummated prior to the Closing Date and any such transaction undertaken but not completed) (I) the Cytyc Acquisition and the other transactions effected pursuant to the Cytyc Merger Agreement, (II) the Third Wave Acquisition and the other transactions effected pursuant to the Third Wave Merger Agreement, (III) the Prior Acquisitions (the amount of transaction-related fees and expenses paid in connection with such Prior Acquisitions not to exceed $20,000,000), (IV) Permitted Acquisitions to the extent such losses, charges and expenses do not exceed $20,000,000 in the aggregate per annum and $75,000,000 in the aggregate during the term of this Agreement (or as approved by the Administrative Agent in the reasonable exercise of its discretion), and (V) Asset Sales, other Dispositions not in the ordinary course of business, Investments permitted by Section 6.6, issuance of or disposition of Equity Interests, issuance, incurrence or repayment of Indebtedness (including any refinancing transaction or amendment or modification of any debt instrument), or disposed or discontinued operations, not to exceed $10,000,000 per annum and $40,000,000 during the term of this Agreement, (h) any loss associated with the write-off, write-down or impairment of assets not in the ordinary course of business including, without limitation, the write-off of acquired in-process research and development and intangible assets, (i) any loss accounted for by the equity method of accounting, (j) facilities closures, severance and other restructuring expenses not to exceed $20,000,000 per annum or $75,000,000 during the term of this Agreement, (k) any losses attributable to the early extinguishment of Indebtedness, (l) unrealized losses related to mark-to-market of Indebtedness denominated in foreign currencies resulting from the application of Statement of Financial Accounting Standard No. 52, (m) losses or reserves relating to damages and other expenses arising from Adverse Proceedings listed on Schedule 4.11 or settlements thereof, (n) other non-cash charges reducing Consolidated Net Income such as non-cash interest expenses or charges relating to convertible bonds now or hereafter outstanding that may be settled in cash upon conversion, including partial cash settlement (excluding any such non-cash charge to the extent that it represents an accrual or reserve for potential cash charge in any future period or amortization of a prepaid cash charge that was paid in a prior period), (o) any losses, expenses or charges associated with earn-outs in connection with acquisitions completed prior to the Closing Date or Permitted Acquisitions, (p) any losses, expenses or charges associated with the write-down of inventory in connection with the Third Wave Acquisition (and the Third Wave Merger), the Cytyc Acquisition or Permitted Acquisitions, (q) the effect of a change in accounting principles and changes as a result of the adoption or modification of accounting principles or policies in respect of or during such period (including changes in accounting that relate to expensing earn-out payments) and (r) any changes relating to the recognition of transaction expenses as a result of changes in GAAP, minus to the extent increasing Consolidated Net Income (ii) (a) other non-cash gains increasing Consolidated Net Income for such period (excluding any such non-cash gain to the extent it represents the reversal of an accrual or reserve for potential cash gain in any prior period), (b) non-cash gains related to Hedge Agreements, to the extent taken into account in the calculation of Consolidated Net Income for such period and calculated in accordance with GAAP, (c) interest income, (d) gains

 

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arising from application of the equity method of accounting, (e) unrealized gains related to mark-to-market of Indebtedness denominated in foreign currencies resulting from the application of Statement of Financial Accounting Standard No. 52, and (f) gains resulting from the reversal of reserves previously taken in connection with Adverse Proceedings listed on Schedule 4.11; provided that for the Third Wave Acquisition (and the Third Wave Merger), the Cytyc Acquisition and if the Company or any Subsidiary has made any Prior Acquisition, Permitted Acquisition or any Asset Sale permitted by Section 6.8(c) during the relevant period for determining Consolidated Adjusted EBITDA, all adjustments in determining Consolidated Adjusted EBITDA for the relevant period (1) shall be calculated after giving pro forma effect thereto, as if the Third Wave Acquisition (and the Third Wave Merger), the Cytyc Acquisition or such Prior Acquisition, Permitted Acquisition or Asset Sale (and any related incurrence, repayment or assumption of Indebtedness, with any new Indebtedness being deemed to be amortized over the relevant period in accordance with its terms, and assuming that any Revolving Loans borrowed in connection with such Permitted Acquisition are repaid with excess cash balances when available) had occurred on the first day of such period, but in the case of a Permitted Acquisition, only so long as the results of the business being acquired are supported by financial statements or other financial data reasonably acceptable to the Administrative Agent, and (2) may include operating expense reductions for such period resulting from any Prior Acquisition or Permitted Acquisition that is being given pro forma effect to the extent that such operating expense reductions (y) would be permitted pursuant to Article XI of Regulation S-X under the Securities Act or (z) have been approved by the Administrative Agent; and provided further that, notwithstanding the foregoing provisions of this definition, the amount of operating expense reductions attributable to Cytyc and its Subsidiaries, Adiana, Inc. and its Subsidiaries, and Adeza Medical Corporation and its subsidiaries shall be (a) for the four Fiscal Quarter period ended December 29, 2007, $34,000,000; (b) for the four Fiscal Quarter period ended March 29, 2008, $25,000,000; (c) for the four Fiscal Quarter period ended June 28, 2008, $17,500,000; and (d) for the four Fiscal Quarter period ended September 27, 2008, $12,500,000.

Consolidated Capital Expenditures ” means, for any period, the aggregate of all expenditures of the Borrower and its Subsidiaries during such period determined on a consolidated basis that, in accordance with GAAP, are or should be included in “purchase of property and equipment,” “construction in-process,” “purchase of intellectual property” or similar items reflected in the consolidated statement of cash flows of the Borrower and its Subsidiaries.

Consolidated Current Assets ” means, as at any date of determination, the total assets of a Person and its Subsidiaries on a consolidated basis that may properly be classified as current assets in conformity with GAAP, excluding Cash and Cash Equivalents.

Consolidated Current Liabilities ” means, as at any date of determination, the total liabilities of a Person and its Subsidiaries on a consolidated basis that may properly be classified as current liabilities in conformity with GAAP, excluding the current portion of long term debt.

Consolidated Excess Cash Flow ” means, for any period, an amount (if positive) equal to:

(i) the sum, without duplication, of the amounts for such period of (a) Consolidated Adjusted EBITDA, plus (b) the Consolidated Working Capital Adjustment, minus

 

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(ii) the sum, without duplication, of the amounts for such period paid in cash from operating cash flow of (a) scheduled repayments of Indebtedness for borrowed money (excluding repayments of Revolving Loans or Swing Line Loans except to the extent the Revolving Commitments are permanently reduced in connection with such repayments) and scheduled repayments of obligations under Capital Leases or in respect of the Agilent Deferred Payment Obligations (excluding the interest expense portion of any thereof) and any change of controls payments payable pursuant to that certain Non-Exclusive License Agreement dated as of January 1, 2006 between Third Wave and Innogenetics N.V, (b) Consolidated Capital Expenditures (net of any proceeds of (y) any related financings with respect to such expenditures and (z) any sales of assets used to finance such expenditures), (c) Adjusted Consolidated Interest Expense, (d) payments relating to or provisions for current taxes and payable in cash with respect to such period, (e) cash consideration in respect of Permitted Acquisitions, and the amount of any earn-out payments in connection with acquisitions completed prior to the Closing Date or Permitted Acquisitions made in cash during such period to the extent determined by the Borrower in its reasonable discretion to be appropriate, (f) losses or reserves relating to damages and other expenses arising from Adverse Proceedings listed in Schedule 4.11 or settlements thereof, (g) amounts paid in cash to redeem or convert Cytyc Convertible Notes ( provided such funds are not derived from the Cytyc Escrow Account), (h) amounts paid in cash to redeem or convert Third Wave Convertible Note ( provided such funds were not derived from the Third Wave Convertible Note Escrow Account), (i) amounts paid in cash in respect of the Third Wave Put Price and (j) amounts paid in cash to redeem the Third Wave Warrants.

Consolidated Net Income ” means, for any period, (i) the net income (or loss) of the Borrower and its Subsidiaries on a consolidated basis for such period taken as a single accounting period determined in conformity with GAAP, minus or plus in the event of a loss (ii) (a) the income (or loss) of any Person (other than a Subsidiary of the Borrower) in which any other Person (other than the Borrower or any of its Subsidiaries) has a joint interest, except to the extent of the amount of dividends or other distributions actually paid to the Borrower or any of its Subsidiaries by such Person during such period, (b) the income (or loss) of any Person accrued prior to the date it becomes a Subsidiary of the Borrower or is merged into or consolidated with the Borrower or any of its Subsidiaries or that Person’s assets are acquired by the Borrower or any of its Subsidiaries, (c) the income of any Subsidiary of the Borrower to the extent that the declaration or payment of dividends or similar distributions by that Subsidiary of that income is not at the time permitted by operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Subsidiary, (d) any after-tax gains or losses attributable to Asset Sales or returned surplus assets of any Pension Plan or gains or losses associated with insurance claims or condemnation proceedings, and (e) (to the extent not included in clauses (a) through (d) above) any net extraordinary gains or net extraordinary losses.

Consolidated Senior Secured Debt ” means, as of any date of determination, Consolidated Total Debt less (a) Senior Unsecured Indebtedness and (b) other Indebtedness of

 

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the Borrower and its Subsidiaries subordinated to the Obligations on terms reasonably satisfactory to, and which Indebtedness contains other terms, tenor and covenants reasonably satisfactory to, the Administrative Agent, determined on a consolidated basis in accordance with GAAP.

Consolidated Total Debt ” means, as at any date of determination, the aggregate stated balance sheet amount of all Indebtedness of the Borrower and its Subsidiaries determined on a consolidated basis in accordance with GAAP.

Consolidated Working Capital ” means, as at any date of determination, the excess of Consolidated Current Assets of the Borrower and its Subsidiaries over Consolidated Current Liabilities of the Borrower and its Subsidiaries.

Consolidated Working Capital Adjustment ” means, for any period on a consolidated basis, the amount (which may be a negative number) by which Consolidated Working Capital as of the beginning of such period exceeds (or is less than) Consolidated Working Capital as of the end of such period. In calculating the Consolidated Working Capital Adjustment there shall be excluded the effect of reclassification during such period of current assets to long term assets and current liabilities to long term liabilities and the effect of any Permitted Acquisition during such period; provided that there shall be included with respect to any Permitted Acquisition during such period an amount (which may be a negative number) by which the Consolidated Working Capital acquired in such Permitted Acquisition as at the time of such acquisition exceeds (or is less than) Consolidated Working Capital at the end of such period.

Contractual Obligation ” means, as applied to any Person, any provision of any Security issued by that Person or of any indenture, mortgage, deed of trust, contract, undertaking, agreement or other instrument to which that Person is a party or by which it or any of its properties is bound or to which it or any of its properties is subject.

Contributing Guarantors ” as defined in Section 7.2.

Conversion/Continuation Date ” means the effective date of a continuation or conversion, as the case may be, as set forth in the applicable Conversion/Continuation Notice.

Conversion/Continuation Notice ” means a Conversion/Continuation Notice substantially in the form of Exhibit A-2.

Counterpart Agreement ” means a Counterpart Agreement substantially in the form of Exhibit H delivered by a Credit Party pursuant to Section 5.10.

Credit Date ” means the date of a Credit Extension.

Credit Document ” means any of this Agreement, the Notes, if any, the Collateral Documents, any documents or certificates executed by the Borrower in favor of the Issuing Bank relating to Letters of Credit, and all other documents, instruments or agreements executed and delivered by a Credit Party for the benefit of any Agent, the Issuing Bank or any Lender in connection with the Existing Credit Agreement on or after the Closing Date to the Restatement Date and herewith on or after the Restatement Date.

 

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Credit Extension ” means the making of a Loan or the issuing of a Letter of Credit.

Credit Party ” means each Person (other than any Agent, the Issuing Bank or any Lender or any other representative thereof) from time to time party to a Credit Document.

Currency Agreement ” means any foreign exchange contract, currency swap agreement, futures contract, option contract, synthetic cap or other similar agreement or arrangement, each of which is for the purpose of hedging the foreign currency risk associated with the Borrower’s and its Subsidiaries’ operations and not for speculative purposes.

Cytyc Acquisition ” means the acquisition on October 22, 2007 by the Borrower of Cytyc Corporation, pursuant to the Cytyc Merger Agreement and pursuant to which Cytyc Corporation was merged with and into Nor’easter Corp., a wholly-owned Subsidiary of the Borrower.

Cytyc Convertible Notes ” means the 2.25% Senior Convertible Notes due 2024 issued by Cytyc Corporation pursuant to that certain Indenture dated as of March 22, 2004 between Cytyc Corporation and U.S. Bank Trust National Association, as trustee thereunder, as amended by that certain First Supplemental Indenture dated as of October 22, 2007 by and among the Borrower, Cytyc Corporation and U.S. Bank Trust National Association, as trustee thereunder.

Cytyc Escrow Account ” means that certain deposit account of the Borrower in the name of “Cytyc Corporation” established with JPMorgan Chase Bank, National Association, to fund the redemption or conversion after the Closing Date of Cytyc Convertible Notes.

Cytyc Merger Agreement ” means that certain Merger Agreement dated as of May 20, 2007 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time), between Nor’easter Corp. and Cytyc Corporation.

Default ” means a condition or event that, after notice or lapse of time or both, would constitute an Event of Default.

Default Excess ” means, with respect to any Defaulting Lender, the excess, if any, of such Defaulting Lender’s Pro Rata Share of the aggregate outstanding principal amount of Loans of all Lenders (calculated as if all Defaulting Lenders (including such Defaulting Lender) had funded all of their respective Defaulted Loans) over the aggregate outstanding principal amount of all Loans of such Defaulting Lender.

Default Period ” means, with respect to any Defaulting Lender, the period commencing on the date of the applicable Funding Default and ending on the earliest of the following dates: (i) the date on which all Commitments are cancelled or terminated and/or the Obligations are declared or become immediately due and payable, (ii) the date on which (a) the Default Excess with respect to such Defaulting Lender shall have been reduced to zero (whether

 

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by the funding by such Defaulting Lender of any Defaulted Loans of such Defaulting Lender or by the non-pro rata application of any voluntary or mandatory prepayments of the Loans in accordance with the terms of Section 2.13 or Section 2.14 or by a combination thereof) and (b) such Defaulting Lender shall have delivered to the Borrower and the Administrative Agent a written reaffirmation of its intention to honor its obligations hereunder with respect to its Commitments, and (iii) the date on which the Borrower, Administrative Agent and the Requisite Lenders waive all Funding Defaults of such Defaulting Lender in writing.

Defaulted Loan ” as defined in Section 2.22.

Defaulting Lender ” as defined in Section 2.22.

Deposit Account ” means a demand, time, savings, passbook or like account with a bank, savings and loan association, credit union or like organization, other than an account evidenced by a negotiable certificate of deposit.

Discharge of Third Wave Obligations ” means the discharge of Third Wave Obligations in accordance with Section 5.16 hereof.

Disposition ” or “ Dispose ” means the sale, transfer, license, lease or other disposition (including any sale and leaseback transaction) of any property by any Person, including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith.

Disqualified Equity Interests ” means any Equity Interest which, by its terms (or by the terms of any security or other Equity Interests into which it is convertible or for which it is exchangeable), or upon the happening of any event or condition (i) matures or is mandatorily redeemable (other than solely for Equity Interests which are not otherwise Disqualified Equity Interests), pursuant to a sinking fund obligation or otherwise, (ii) is redeemable at the option of the holder thereof (other than solely for Equity Interests which are not otherwise Disqualified Equity Interests), in whole or in part, (iii) provides for the scheduled payments or dividends in cash, or (iv) is or becomes convertible into or exchangeable for Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests, in each case, prior to the date that is 91 days after the Term Loan Maturity Date, except, in the case of clauses (i) and (ii), if as a result of a change of control or asset sale, so long as any rights of the holders thereof upon the occurrence of such a change of control or asset sale event are subject to the prior payment in full of all Obligations, the cancellation or expiration of all Letters of Credit and the termination of the Commitments.

Documentation Agent ” as defined in the preamble hereto.

Dollar Equivalent ” means, at any time, (a) with respect to any amount denominated in Dollars, such amount, and (b) with respect to any amount denominated in any currency other than Dollars, the equivalent amount thereof in Dollars as determined by the Administrative Agent or the Issuing Bank, as the case may be, on the basis of the Spot Rate (determined in respect of the most recent Revaluation Date or other relevant date of determination) for the purchase of Dollars with such currency.

 

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Dollars ” and the sign “ $ ” mean the lawful money of the United States of America.

Domestic Subsidiary ” means any Subsidiary of the Borrower organized under the laws of the United States of America, any State thereof or the District of Columbia.

Eligible Assignee ” means (i) any Lender, any Affiliate of any Lender and any Related Fund (any two (2) or more Related Funds being treated as a single Eligible Assignee for all purposes hereof), and (ii) any commercial bank, insurance company, investment or mutual fund or other entity that is an “accredited investor” (as defined in Regulation D under the Securities Act) and which extends credit or buys loans in the ordinary course of business; provided , neither the Borrower nor any of its Affiliates shall be an Eligible Assignee.

Employee Benefit Plan ” means any “employee benefit plan” as defined in Section 3(3) of ERISA which is or was sponsored, maintained or contributed to by, or required to be contributed by, the Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates.

Environmental Claim ” means any investigation, notice, notice of violation, claim, action, suit, proceeding, demand, abatement order or other order or directive (conditional or otherwise), by any Governmental Authority or any other Person, arising (i) pursuant to or in connection with any actual or alleged violation of any Environmental Law; (ii) in connection with any Hazardous Material or any actual or alleged Hazardous Materials Activity; or (iii) in connection with any actual or alleged damage, injury, threat or harm to health, safety, natural resources or the environment.

Environmental Laws ” means any and all current or future foreign or domestic, federal or state (or any subdivision of either of them), statutes, ordinances, orders, rules, regulations, judgments, Governmental Authorizations, or any other requirements of Governmental Authorities relating to (i) environmental matters, including those relating to any Hazardous Materials Activity; (ii) the generation, use, storage, transportation or disposal of Hazardous Materials; or (iii) occupational safety and health, industrial hygiene, or the protection of human, plant or animal health or welfare, in any manner applicable to the Borrower or any of its Subsidiaries or any Facility.

Equity Interests ” means any and all shares, interests, participations or other equivalents (however designated) of capital stock of a corporation, any and all equivalent ownership interests in a Person (other than a corporation), including partnership interests and membership interests, and any and all warrants, rights or options to purchase or other arrangements or rights to acquire any of the foregoing.

ERISA ” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and any successor thereto.

ERISA Affiliate ” means, as applied to any Person, (i) any corporation which is a member of a controlled group of corporations within the meaning of Section 414(b) of the Internal Revenue Code of which that Person is a member; (ii) any trade or business (whether or not incorporated) which is a member of a group of trades or businesses under common control

 

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within the meaning of Section 414(c) of the Internal Revenue Code of which that Person is a member; and (iii) any member of an affiliated service group within the meaning of Section 414(m) or (o) of the Internal Revenue Code of which that Person, any corporation described in clause (i) above or any trade or business described in clause (ii) above is a member. Any former ERISA Affiliate of the Borrower or any of its Subsidiaries shall continue to be considered an ERISA Affiliate of the Borrower or any such Subsidiary within the meaning of this definition with respect to the period such entity was an ERISA Affiliate of the Borrower or such Subsidiary and with respect to liabilities arising after such period for which the Borrower or such Subsidiary could be liable under the Internal Revenue Code or ERISA.

ERISA Event ” means (i) a “reportable event” within the meaning of Section 4043 of ERISA and the regulations issued thereunder with respect to any Pension Plan (excluding those for which the provision for 30-day notice to the PBGC has been waived by regulation); (ii) the failure to meet the minimum funding standard of Section 412 of the Internal Revenue Code with respect to any Pension Plan (whether or not waived in accordance with Section 412(c) of the Internal Revenue Code) or the failure to make by its due date a required installment under Section 430(j) of the Internal Revenue Code with respect to any Pension Plan or the failure to make any required contribution to a Multiemployer Plan; (iii) the provision by the administrator of any Pension Plan pursuant to Section 4041(a)(2) of ERISA of a notice of intent to terminate such plan in a distress termination described in Section 4041(c) of ERISA; (iv) the withdrawal by the Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates from any Pension Plan with two (2) or more contributing sponsors or the termination of any such Pension Plan resulting in liability to the Borrower, any of its Subsidiaries or any of their respective Affiliates pursuant to Section 4063 or 4064 of ERISA; (v) the institution by the PBGC of proceedings to terminate any Pension Plan, or the occurrence of any event or condition which would reasonably be expected to constitute grounds under ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan; (vi) the imposition of liability on the Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates pursuant to Section 4062(e) or 4069 of ERISA or by reason of the application of Section 4212(c) of ERISA; (vii) the withdrawal of the Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates in a complete or partial withdrawal (within the meaning of Sections 4203 and 4205 of ERISA) from any Multiemployer Plan if there is any potential liability therefore, or the receipt by the Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates of notice from any Multiemployer Plan that it is in reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA, or that it intends to terminate or has terminated under Section 4041A or 4042 of ERISA; (viii) the occurrence of an act or omission which would reasonably be expected to give rise to the imposition on the Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates of fines, penalties, taxes or related charges under Chapter 43 of the Internal Revenue Code or under Section 409, Section 502(c), (i) or (l), or Section 4071 of ERISA in respect of any Employee Benefit Plan; (ix) the assertion of a material claim (other than routine claims for benefits) against any Employee Benefit Plan other than a Multiemployer Plan or the assets thereof, or against the Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates in connection with any Employee Benefit Plan; (x) receipt from the Internal Revenue Service of notice of the failure of any Pension Plan (or any other Employee Benefit Plan intended to be qualified under Section 401(a) of the Internal Revenue Code) to qualify under Section 401(a) of the Internal Revenue Code, or the failure of any trust forming part of any Pension Plan to qualify for exemption from taxation under Section 501(a) of the Internal Revenue Code; or (xi) the imposition of a lien pursuant to Section 430(k) of the Internal Revenue Code or ERISA or violation of Section 436 of the Internal Revenue Code.

 

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Eurodollar Rate Loan ” means a Loan bearing interest at a rate determined by reference to the Adjusted Eurodollar Rate.

Event of Default ” means each of the conditions or events set forth in Section 8.1.

Exchange Act ” means the Securities Exchange Act of 1934, as amended from time to time, and any successor statute.

Excluded Foreign Subsidiary ” means those certain Foreign Subsidiaries listed on Schedule 1.1B.

Excluded Subsidiary ” means (i) any Subsidiary of the Borrower that is a Massachusetts securities corporation, (ii) any Excluded Foreign Subsidiary, (iii) any Domestic Subsidiary of a Foreign Subsidiary, (iv) any Immaterial Domestic Subsidiary and (v) any Immaterial Foreign Subsidiary.

Existing Credit Agreement ” as defined in the recitals.

Facility ” means any real property (including all buildings, fixtures or other improvements located thereon) now, hereafter or heretofore owned, leased, operated or used by the Borrower or any of its Subsidiaries or any of their respective predecessors or Affiliates.

Fair Share Contribution Amount ” as defined in Section 7.2.

Fair Share ” as defined in Section 7.2.

Federal Funds Effective Rate ” means for any day, the rate per annum (expressed, as a decimal, rounded upwards, if necessary, to the next higher 1/100 of 1%) equal to the weighted average of the 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 of New York on the Business Day next succeeding such day; provided , (i) 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 (ii) 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, in its capacity as a Lender, on such day on such transactions as determined by the Administrative Agent.

Financial Officer Certification ” means, with respect to the financial statements for which such certification is required, the certification of the chief financial officer of the Borrower that such financial statements fairly present, in all material respects, the financial condition of the Borrower and its Subsidiaries as at the dates indicated and the results of their operations and their cash flows for the periods indicated, subject to changes resulting from audit and normal year-end adjustments, and, with respect to quarterly financial statements, absence of footnotes.

 

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First Priority ” means, with respect to any Lien purported to be created in any Collateral pursuant to any Collateral Document, that such Lien is the only Lien to which such Collateral is subject, other than any Permitted Lien.

First-Tier Foreign Subsidiary ” means a Foreign Subsidiary, the Equity Interests of which are directly owned by a Domestic Subsidiary that is not a Subsidiary of a Foreign Subsidiary.

Fiscal Quarter ” means a fiscal quarter of any Fiscal Year.

Fiscal Year ” means the fiscal year of the Borrower and its Subsidiaries ending on the last Saturday of September of each calendar year.

Flood Hazard Property ” means any Real Estate Asset subject to a mortgage in favor of the Collateral Agent, for the benefit of the Secured Parties, and located in an area designated by the Federal Emergency Management Agency as having special flood or mud slide hazards.

Foreign Intellectual Property ” has the meaning assigned to that term in the Pledge and Security Agreement.

Foreign Intellectual Property Security Agreements ” means those certain documents listed on Schedule 1.1D, and all other instruments, documents and agreements delivered by any Credit Party pursuant to any such Foreign Intellectual Property Security Agreement or to grant to the Collateral Agent, for the benefit of the Secured Parties, a Lien on any Grantor’s foreign, international or multinational issued/registered patents, registered trademarks, registered copyrights or any applications for the foregoing as security for the Obligations.

Foreign Jurisdiction ” means the laws of any jurisdiction other than the laws of the United States of America, any State thereof or the District of Columbia.

Foreign Stock Pledges ” means those certain documents listed on Schedule 1.1E, and all other instruments, documents and agreements delivered by any Credit Party pursuant to any such Foreign Stock Pledge or to grant to the Collateral Agent, for the benefit of the Secured Parties, a Lien on any Equity Interest of any Foreign Subsidiary as security for the Obligations in accordance with Section 5.10(b) hereof.

Foreign Subsidiary ” means any Subsidiary of the Borrower that is not a Domestic Subsidiary.

Funding Default ” as defined in Section 2.22.

Funding Guarantors ” as defined in Section 7.2.

 

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Funding Notice ” means a notice substantially in the form of Exhibit A-1.

GAAP ” means, subject to the limitations on the application thereof set forth in Section 1.2, United States generally accepted accounting principles in effect as of the date of determination thereof.

Governmental Acts ” means any act or omission, whether rightful or wrongful, of any present or future de jure or de facto government or Governmental Authority.

Governmental Authority ” means any federal, state, municipal, national or other government, governmental department, commission, board, bureau, court, agency or instrumentality or political subdivision thereof or any entity, officer or examiner exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to any government or any court, in each case whether associated with a state of the United States, the United States, or a foreign entity or government.

Governmental Authorization ” means any permit, license, authorization, plan, directive, consent order or consent decree of or from any Governmental Authority.

Grantor ” has the meaning assigned to that term in the Pledge and Security Agreement.

GSCP ” as defined in the preamble hereto.

Guaranteed Obligations ” as defined in Section 7.1.

Guarantor ” means each Subsidiary of the Borrower that has in effect an enforceable Guaranty made pursuant to Section 7; provided however that no Excluded Subsidiary shall be required to furnish a Guaranty and that Foreign Subsidiaries shall be required to furnish Guaranties only to the extent required by the terms of Section 5.13(c).

Guaranty ” means the guaranty of each Guarantor set forth in Section 7.

Hazardous Materials ” means any chemical, material or substance, exposure to which is prohibited, limited or regulated by any Governmental Authority or which may or could pose a hazard to the health and safety of the owners, occupants or any Persons in the vicinity of any Facility or to the indoor or outdoor environment.

Hazardous Materials Activity ” means any past, current, proposed or threatened activity, event or occurrence involving any Hazardous Materials, including the use, manufacture, possession, storage, holding, presence, existence, location, Release, threatened Release, discharge, placement, generation, transportation, processing, construction, treatment, abatement, removal, remediation, disposal, disposition or handling of any Hazardous Materials, and any corrective action or response action with respect to any of the foregoing.

Hedge Agreement ” means an Interest Rate Agreement or a Currency Agreement entered into with a Lender Counterparty and satisfactory to the Administrative Agent.

 

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Highest Lawful Rate ” means the maximum lawful interest rate, if any, that at any time or from time to time may be contracted for, charged, or received under the laws applicable to any Lender which are currently in effect or, to the extent allowed by law, under such applicable laws which may hereafter be in effect and which allow a higher maximum nonusurious interest rate than applicable laws now allow.

Historical Financial Statements ” means, as of the Restatement Date, (i) the audited financial statements of the Borrower and its Subsidiaries for the immediately preceding three Fiscal Years, consisting of balance sheets and the related consolidated statements of income, stockholders’ equity and cash flows for such Fiscal Years, and (ii) the unaudited financial statements of the Borrower and its Subsidiaries as at the most recently ended Fiscal Quarter for which financial statements have been prepared, consisting of a balance sheet and the related consolidated statements of income, stockholders’ equity and cash flows for the three-, six-or nine-month period, as applicable, ending on such date, and, in the case of clauses (i) and (ii), certified by the chief financial officer of the Borrower that they fairly present, in all material respects, the financial condition of the Borrower and its Subsidiaries as at the dates indicated and the results of their operations and their cash flows for the periods indicated, subject to changes resulting from audit and normal year-end adjustments; provided that, solely for purposes of Section 3.2(k), “Historical Financial Statements” means, as of the Restatement Date, (i) the audited financial statements of Third Wave and its Subsidiaries for the immediately preceding three fiscal years of Third Wave, consisting of balance sheets and the related consolidated statements of income, stockholders’ equity and cash flows for such fiscal years, and (ii) the unaudited financial statements of Third Wave and its Subsidiaries as at the most recently ended fiscal quarter of Third Wave for which financial statements have been prepared, consisting of a balance sheet and the related consolidated statements of income, stockholders’ equity and cash flows for the three-, six-or nine-month period, as applicable, ending on such date, and, in the case of clauses (i) and (ii) of this proviso, certified by the chief financial officer of Third Wave that they fairly present, in all material respects, the financial condition of Third Wave and its Subsidiaries as at the dates indicated and the results of their operations and their cash flows for the periods indicated, subject to changes resulting from audit and normal year-end adjustments (it being agreed Third Wave’s annual report on Form 10-K for any such fiscal year and quarterly report on Form 10-Q for any such fiscal quarter, in each case, as filed with the U.S. Securities and Exchange Commission, satisfy clauses (i) and (ii), respectively, of this proviso).

Hologic Convertible Notes ” means the 2.00% Convertible Senior Notes due 2037 issued by the Borrower pursuant to (i) that certain Indenture dated as of December 10, 2007 by and between Wilmington Trust Company, as trustee, and the Borrower and (ii) that certain First Supplemental Indenture dated as of December 10, 2007 by and between Wilmington Trust Company, as trustee, and the Borrower.

Immaterial Domestic Subsidiary ” means, at any date of determination, any Domestic Subsidiary of the Borrower that, together with all other Immaterial Domestic Subsidiaries, (i) had consolidated assets comprising in the aggregate less than 2% of Total Assets on the last day of the most recent Fiscal Quarter for which financial statements are available and (ii) contributed in the aggregate less than 2% of Consolidated Adjusted EBITDA for the period of four Fiscal Quarters most recently ended for which financial statements are available. The Immaterial Domestic Subsidiaries as of the Restatement Date are those Domestic Subsidiaries of

 

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the Borrower that the Administrative Agent agrees in the exercise of its reasonable discretion are consistent with the intent of this definition, on a pro forma basis after giving effect to the Third Wave Acquisition and the Third Wave Merger, and which as of the Restatement Date are listed on Schedule 1.1G.

Immaterial Foreign Subsidiary ” means, at any date of determination, any Foreign Subsidiary that is not a Pledged Foreign Subsidiary and which, (i) together with all other Foreign Subsidiaries that are not Pledged Foreign Subsidiaries and are organized under the laws of the same Foreign Jurisdiction as such Foreign Subsidiary, (A) had consolidated assets comprising in the aggregate less than 5% of Total Assets on the last day of the most recent Fiscal Quarter for which financial statements are available and (B) contributed in the aggregate less than 5% of Consolidated Adjusted EBITDA for the period of four Fiscal Quarters most recently ended for which financial statements are available and, (ii) together with all other Foreign Subsidiaries that are not Pledged Foreign Subsidiaries, (A) had assets comprising in the aggregate less than 15% of Total Assets on the last day of the most recent Fiscal Quarter for which financial statements are available and (B) contributed in the aggregate less than 15% of Consolidated Adjusted EBITDA for the period of four Fiscal Quarters most recently ended for which financial statements are available. The Immaterial Foreign Subsidiaries as of the Restatement Date are those Foreign Subsidiaries that the Administrative Agent agrees in the exercise of its reasonable discretion are consistent with the intent of this definition, on a pro forma basis after giving effect to the Third Wave Acquisition and the Third Wave Merger, and which as of the Restatement Date are listed on Schedule 1.1F.

Increased Amount Date ” as defined in Section 2.24.

Increased-Cost Lender ” as defined in Section 2.23.

Increased Spread ” as defined in Section 2.24.

Indebtedness ” means, as applied to any Person, without duplication, (i) all indebtedness for borrowed money; (ii) that portion of obligations with respect to Capital Leases that is properly classified as a liability on a balance sheet in conformity with GAAP; (iii) notes payable and drafts accepted representing extensions of credit whether or not representing obligations for borrowed money; (iv) any obligation owed for all or any part of the deferred purchase price of property or services, excluding earn-out obligations except for that portion of any earn-out obligations properly classified as a liability on a balance sheet in conformity with GAAP (also excluding any such obligations incurred under ERISA or related to deferred employee or director compensation), which purchase price is (a) due more than six months from the date of incurrence of the obligation in respect thereof or (b) evidenced by a note or similar written instrument; (v) all indebtedness secured by any Lien on any property or asset owned or held by that Person regardless of whether the indebtedness secured thereby shall have been assumed by that Person or is nonrecourse to the credit of that Person; (vi) the face amount of any letter of credit issued for the account of that Person or as to which that Person is otherwise liable for reimbursement of drawings; (vii) Disqualified Equity Interests, (viii) the direct or indirect guaranty, endorsement (otherwise than for collection or deposit in the ordinary course of business), co-making, discounting with recourse or sale with recourse by such Person of the obligation of another; (ix) any obligation of such Person the primary purpose or intent of which

 

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is to provide assurance to an obligee that the obligation of the obligor thereof will be paid or discharged, or any agreement relating thereto will be complied with, or the holders thereof will be protected (in whole or in part) against loss in respect thereof; (x) any liability of such Person for an obligation of another through any agreement (contingent or otherwise) (a) to purchase, repurchase or otherwise acquire such obligation or any security therefor, or to provide funds for the payment or discharge of such obligation (whether in the form of loans, advances, stock purchases, capital contributions or otherwise) or (b) to maintain the solvency or any balance sheet item, level of income or financial condition of another if, in the case of any agreement described under subclauses (a) or (b) of this clause (x), the primary purpose or intent thereof is as described in clause (ix) above; and (xi) all obligations of such Person in respect of any exchange traded or over the counter derivative transaction, including any Interest Rate Agreement and any Currency Agreement, in each case, whether entered into for hedging or speculative purposes; provided , in no event shall obligations under any derivative transaction (including, without limitation, any transaction evidenced by any Interest Rate Agreement and/or any Currency Agreement) be deemed “Indebtedness” for any purpose under Section 6.7.

Indemnified Liabilities ” means, collectively, any and all liabilities, obligations, losses, damages (including natural resource damages), penalties, claims (including Environmental Claims), actions, judgments, suits, costs (including the costs of any investigation, study, sampling, testing, abatement, cleanup, removal, remediation or other response action necessary to remove, remediate, clean up or abate any Hazardous Materials Activity), expenses and disbursements of any kind or nature whatsoever (including the reasonable fees and disbursements of counsel for Indemnitees in connection with any investigative, administrative or judicial proceeding or hearing commenced or threatened by any Person, whether or not any such Indemnitee shall be designated as a party or a potential party thereto, and any fees or expenses incurred by Indemnitees in enforcing this indemnity, but only to the extent recoverable under Section 10.2 of this Agreement), whether direct, indirect or consequential and whether based on any federal, state or foreign laws, statutes, rules or regulations (including securities and commercial laws, statutes, rules or regulations and Environmental Laws), on common law or equitable cause or on contract or otherwise, that may be imposed on, incurred by, or asserted against any such Indemnitee, in any manner relating to or arising out of (i) this Agreement or the other Credit Documents or the transactions contemplated hereby or thereby (including the Lenders’ agreement to make Credit Extensions, the syndication of the credit facilities provided for herein or the use or intended use of the proceeds thereof, or any enforcement of any of the Credit Documents (including any sale of, collection from, or other realization upon any of the Collateral or the enforcement of the Guaranty)); (ii) the Commitment Letter (and any related fee or engagement letter delivered by any Agent or any Lender to the Borrower with respect to the transactions contemplated by this Agreement); or (iii) any Environmental Claim or any Hazardous Materials Activity relating to or arising from, directly or indirectly, any past or present activity, operation, land ownership, or practice of the Borrower or any of its Subsidiaries.

Indemnitee ” as defined in Section 10.3.

Installment ” means a Tranche A Installment, a Tranche B Installment or a scheduled repayment of principal of New Term Loans, if any, pursuant to the proviso to Section 2.12(b), as the case may be.

 

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Intellectual Property ” has the meaning assigned to that term in the Pledge and Security Agreement.

Intellectual Property Asset ” means, at the time of determination, any interest (fee, license or otherwise) then owned by any Credit Party in any Intellectual Property.

Intellectual Property Security Agreements ” means the Trademark Security Agreement, the Copyright Security Agreement and the Patent Security Agreement as such terms are defined in the Pledge and Security Agreement.

Intercompany Note ” means that certain Intercompany Subordinated Demand Promissory Note, dated as October 22, 2007, by and among the Borrower and each of the Credit Parties, each as a Payor and as a Payee, as it has been or may be amended, supplemented or otherwise modified in accordance with the terms thereof from time to time.

Interest Coverage Ratio ” means the ratio as of the last day of (A) the Fiscal Quarter beginning with the Fiscal Quarter ending on the last Saturday in September 2008 of (i) Consolidated Adjusted EBITDA for the prior four Fiscal Quarters, to (ii) Adjusted Consolidated Interest Expense for such Fiscal Quarter multiplied by four (4), (B) the first full Fiscal Quarter ending after the Restatement Date of (i) Consolidated Adjusted EBITDA for the prior four-Fiscal Quarter period ending on such date, to (ii) Adjusted Consolidated Interest Expense for such two-Fiscal Quarter period multiplied by two (2), (C) the second full Fiscal Quarter ending after the Restatement Date of (i) Consolidated Adjusted EBITDA for the prior four-Fiscal Quarter period ending on such date, to (ii) Adjusted Consolidated Interest Expense for such three-Fiscal Quarter period multiplied by four thirds (  4 / 3 ), and (D) any other Fiscal Quarter of (i) Consolidated Adjusted EBITDA for the prior four-Fiscal Quarter period then ending, to (ii) Adjusted Consolidated Interest Expense for such four-Fiscal Quarter period.

Interest Payment Date ” means with respect to (i) any Loan that is a Base Rate Loan, each March 31, June 30, September 30 and December 31 of each year, commencing on the first such date to occur after the Restatement Date, and the final maturity date of such Loan; and (ii) any Loan that is a Eurodollar Rate Loan, the last day of each Interest Period applicable to such Loan; provided , in the case of each Interest Period of longer than three months, “Interest Payment Date” shall also include each date that is three months, or an integral multiple thereof, after the commencement of such Interest Period.

Interest Period ” means, in connection with (x) Tranche A Loans and the Revolving Loans which are Eurodollar Rate Loans, an interest period of one-, two-, three-, six-, nine- or twelve-months, and (y) Tranche B Term Loans which are Eurodollar Rate Loans, an interest period of one-, two-, three- or six-months (and nine- or twelve-months if available to all Lenders), in each case as selected by the Borrower in the applicable Funding Notice or Conversion/Continuation Notice, (i) initially commencing on the Credit Date or Conversion/Continuation Date thereof, as the case may be; and (ii) thereafter, commencing on the day on which the immediately preceding Interest Period expires; provided , (a) if an Interest Period would otherwise expire on a day that is not a Business Day, such Interest Period shall expire on the next succeeding Business Day unless no further Business Day occurs in such month, in which case such Interest Period shall expire on the immediately preceding Business Day; (b) any

 

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Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall, subject to clauses (c) and (d) of this definition, end on the last Business Day of a calendar month; (c) no Interest Period with respect to any portion of any Class of Term Loans shall extend beyond the applicable maturity date for such Class; and (d) no Interest Period with respect to any portion of the Revolving Loans shall extend beyond the Revolving Commitment Termination Date.

Interest Rate Agreement ” means any interest rate swap agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedging agreement or other similar agreement or arrangement, each of which is for the purpose of hedging the interest rate exposure associated with the Borrower’s and its Subsidiaries’ operations and not for speculative purposes.

Interest Rate Determination Date ” means, with respect to any Interest Period, the date that is two (2) Business Days prior to the first day of such Interest Period.

Internal Revenue Code ” means the Internal Revenue Code of 1986, as amended to the Closing Date and from time to time hereafter, and any successor statute.

Investment ” means (i) any direct or indirect purchase or other acquisition by the Borrower or any of its Subsidiaries of, or of a beneficial interest in, any of the Securities of any other Person (other than a Guarantor); (ii) any direct or indirect redemption, retirement, purchase or other acquisition for value, by any Subsidiary of the Borrower from any Person (other than the Borrower or any Guarantor), of any Equity Interests of such Person; (iii) any direct or indirect loan, advance (other than advances to employees for moving, entertainment and travel expenses, drawing accounts and similar expenditures in the ordinary course of business) or capital contributions by the Borrower or any of its Subsidiaries to any other Person (other than the Borrower or any Guarantor), including all indebtedness and accounts receivable from that other Person that are not current assets or did not arise from sales to that other Person in the ordinary course of business and (iv) all investments consisting of any exchange-traded or over the counter derivative transaction, including any Interest Rate Agreement or Currency Agreement, whether entered into for hedging or speculative purposes. The amount of any Investment shall be the original cost of such Investment of the type described in clauses (i), (ii) and (iii)  plus the cost of all additions thereto, without any adjustments for increases or decreases in value, or write-ups, write-downs or write-offs with respect to such Investment.

Issuer Documents ” means, with respect to any Letter of Credit, the Letter of Credit Application and any other document, agreement and instrument entered into by the Issuing Bank and the Borrower (or any Subsidiary) or in favor of the Issuing Bank and relating to such Letter of Credit.

Issuing Bank ” means Bank of America, N.A. as the Issuing Bank hereunder, together with its permitted successors and assigns in such capacity.

Joinder Agreement ” means an agreement substantially in the form of Exhibit M.

 

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Joint Venture ” means a joint venture, partnership or other similar arrangement, whether in corporate, partnership or other legal form; provided , in no event shall any corporate Subsidiary of any Person be considered to be a Joint Venture to which such Person is a party.

JPM ” as defined in the preamble hereto.

Landlord Personal Property Collateral Access Agreement ” means a Landlord Waiver and Consent Agreement substantially in the form of Exhibit K with such amendments or modifications as may be approved by the Collateral Agent.

Leasehold Property ” means any leasehold interest of any Credit Party as lessee under any lease of real property, other than any such leasehold interest designated from time to time by the Collateral Agent in its sole discretion as not being required to be included in the Collateral.

Lender ” means each financial institution listed on the signature pages hereto as a Lender and any other Person that becomes a party hereto pursuant to an Assignment Agreement or a Joinder Agreement.

Lender Consent Letters ” means the lender consent letters authorizing the amendment and restatement of the Existing Credit Agreement and such modifications of the other Credit Documents as may be necessary or advisable in connection therewith .

Lender Counterparty ” means each Lender, each Agent and each of their respective Affiliates counterparty to a Hedge Agreement (including any Person who is an Agent or a Lender (and any Affiliate thereof) as of the Closing Date but subsequently, whether before or after entering into a Hedge Agreement, ceases to be an Agent or a Lender, as the case may be).

Letter of Credit ” means a commercial or standby letter of credit issued or to be issued by the Issuing Bank pursuant to this Agreement.

Letter of Credit Application ” means an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by the Issuing Bank.

Letter of Credit Sublimit ” means the lesser of (i) $40,000,000 and (ii) the aggregate unused amount of the Revolving Commitments then in effect.

Letter of Credit Usage ” means, as at any date of determination, the sum of (i) the maximum aggregate Stated Amount which is, or at any time thereafter may become, available for drawing under all Letters of Credit then outstanding, and (ii) the aggregate Dollar Equivalent of the principal amount of all drawings under Letters of Credit honored by the Issuing Bank and not theretofore reimbursed by or on behalf of the Borrower.

Leverage Ratio ” means the ratio as of the last day of any Fiscal Quarter of (i) Consolidated Total Debt as of such day to (ii) Consolidated Adjusted EBITDA for the four-Fiscal Quarter period ending on such date.

 

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Licensed Intellectual Property ” means any interest of any Credit Party as licensee or sublicensee under any license of Intellectual Property, other than any such interest that has been designated from time to time by the Collateral Agent as not being required to be included in the Collateral.

Lien ” means (i) any lien, mortgage, pledge, assignment, security interest, charge or encumbrance of any kind (including any agreement to give any of the foregoing, any conditional sale or other title retention agreement, and any lease or license in the nature thereof) and any option, trust or other preferential arrangement having the practical effect of any of the foregoing and (ii) in the case of Securities, any purchase option, call or similar right of a third party with respect to such Securities.

Loan ” means (i) a Tranche A Term Loan, (ii) a Tranche B Term Loan, (iii) a Revolving Loan, (iv) a Swing Line Loan or (v) a New Term Loan, as applicable.

Margin Stock ” as defined in Regulation U of the Board of Governors as in effect from time to time.

Material Adverse Effect ” means a material adverse effect on and/or material adverse developments with respect to (i) the business, operations, properties, assets, condition (financial or otherwise) or prospects of the Borrower and its Subsidiaries taken as a whole; (ii) the ability of any Credit Party to fully and timely perform its Obligations; (iii) the legality, validity, binding effect or enforceability against a Credit Party of a Credit Document to which it is a party; or (iv) the rights, remedies and benefits available to, or conferred upon, any Agent and any Lender or any Secured Party under any Credit Document.

Material Contract ” means any contract or other arrangement to which the Borrower or any of its Subsidiaries is a party (other than the Credit Documents) for which breach, nonperformance, cancellation or failure to renew would reasonably be expected to have a Material Adverse Effect.

Material Real Estate Asset ” means (i) any fee-owned Real Estate Asset having a fair market value in excess of $2,500,000 as of the date of the acquisition thereof and (ii) all Leasehold Properties other than those with respect to which the aggregate payments under the term of the lease are less than $1,000,000 per annum; provided that the Third Wave Leasehold Facility shall be excluded from the definition of “Material Real Estate Asset.”

Minimum Liquidity ” means, as at any date of determination, the sum of (i) the Borrower’s unrestricted Cash and Cash Equivalents held in deposit and/or security accounts subject to a control agreement in favor of the Collateral Agent and (ii) the aggregate unused portion of the Revolving Commitments at such time.

Moody’s ” means Moody’s Investor Service, Inc.

Mortgage ” means (i) each of those certain mortgages dated as of October 22, 2007 in respect of each Closing Date Mortgaged Property and (ii) each mortgage (which shall be substantially in the form of Exhibit J-1), delivered subsequent to the Restatement Date pursuant to and in accordance with Section 5.11, as any such mortgage may be amended, restated, amended and restated, supplemented or otherwise modified from time to time.

 

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Mortgage Modification ” means an amendment, restatement, amendment and restatement, supplement or other modification to a Mortgage, substantially in the form of Exhibit J-2, as amended, restated, amended and restated, supplemented or otherwise modified from time to time.

Multiemployer Plan ” means any Employee Benefit Plan which is a “multiemployer plan” as defined in Section 3(37) of ERISA.

NAIC ” means The National Association of Insurance Commissioners, and any successor thereto.

Net Asset Sale Proceeds ” means, with respect to any Asset Sale or any Disposition made pursuant to Section 6.8(g), an amount equal to: (i) Cash payments (including any Cash received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received or when released from an escrow or holdback) received by the Borrower or any of its Subsidiaries from such Asset Sale, minus (ii) any bona fide direct costs incurred in connection with such Asset Sale, including (a) income or gains taxes payable by the seller as a result of any gain recognized in connection with such Asset Sale, (b) payment of the outstanding principal amount of, premium or penalty, if any, and interest on any Indebtedness (other than the Loans) that is either secured by a Lien on the stock or assets in question and that is required to be repaid under the terms thereof as a result of such Asset Sale or which arise as a result of such Asset Sale and that is required to be repaid under the terms thereof as a result of such Asset Sale, (c) any professional fees actually incurred in connection therewith, including, without limitation, advisers, brokers, investment bankers, attorneys, and accountants, (d) a reasonable reserve for any purchase price adjustment or any indemnification payments (fixed or contingent) attributable to seller’s indemnities and representations and warranties to purchaser in respect of any such Asset Sale undertaken by the Borrower or any of its Subsidiaries in connection with such Asset Sale, and (e) reasonable reserves under GAAP for any facilities closings, severance or other restructuring expenses in connection with such Asset Sale.

Net Insurance/Condemnation Proceeds ” means an amount equal to: (i) any Cash payments or proceeds received by the Borrower or any of its Subsidiaries (a) under any casualty insurance policy in respect of a covered loss thereunder or (b) as a result of the taking of any assets of the Borrower or any of its Subsidiaries by any Person pursuant to the power of eminent domain, condemnation or otherwise, or pursuant to a sale of any such assets to a purchaser with such power under threat of such a taking, minus (ii) (a) any actual and reasonable costs incurred by the Borrower or any of its Subsidiaries in connection with the adjustment or settlement of any claims of the Borrower or such Subsidiary in respect thereof, and (b) any professional fees actually incurred in connection therewith, including, without limitation, advisers, brokers, investment bankers, attorneys, and accountants, (c) any bona fide direct costs incurred in connection with any sale of such assets as referred to in clause (i)(b) of this definition, including income taxes payable as a result of any gain recognized in connection therewith, and (d) reasonable reserves under GAAP for any facilities closings, severance or other restructuring expenses in connection with any such sale or insurance claim.

 

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Net Mark-to-Market Exposure ” of a Person means, as of any date of determination, the excess (if any) of all unrealized losses over all unrealized profits of such Person arising from Hedge Agreements or other Indebtedness of the type described in clause (xi) of the definition thereof. As used in this definition, “unrealized losses” means the fair market value of the cost to such Person of replacing such Hedge Agreement or such other Indebtedness as of the date of determination (assuming the Hedge Agreement or such other Indebtedness were to be terminated as of that date), and “unrealized profits” means the fair market value of the gain to such Person of replacing such Hedge Agreement or such other Indebtedness as of the date of determination (assuming such Hedge Agreement or such other Indebtedness were to be terminated as of that date).

New Revolving Loan ” as defined in Section 2.24.

New Revolving Loan Commitments ” as defined in Section 2.24.

New Revolving Loan Lender ” as defined in Section 2.24.

New Revolving Loan Exposure ” means, with respect to any Lender, as of any date of determination, the outstanding principal amount of the New Revolving Loans of such Lender.

New Revolving Loan Maturity Date ” means the date on which New Revolving Loans of a Series shall become due and payable in full hereunder, as specified in the applicable Joinder Agreement, including by acceleration or otherwise.

New Term Loan ” as defined in Section 2.24.

New Term Loan Commitments ” as defined in Section 2.24.

New Term Loan Exposure ” means, with respect to any Lender, as of any date of determination, the outstanding principal amount of the New Term Loans of such Lender.

New Term Loan Lender ” as defined in Section 2.24.

New Term Loan Maturity Date ” means the date on which New Term Loans of a Series shall become due and payable in full hereunder, as specified in the applicable Joinder Agreement, including by acceleration or otherwise.

Non-Public Information ” means information which has not been disseminated in a manner making it available to investors generally, within the meaning of Regulation FD.

Non-Consenting Lender ” as defined in Section 2.23.

Non-Extension Notice ” as defined in Section 2.4(a).

 

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Non-US Lender ” as defined in Section 2.20(c).

Note ” means (i) a Tranche A Term Loan Note, (ii) a Tranche B Term Loan Note, (iii) a Revolving Loan Note or (iv) a Swing Line Note.

Notice ” means a Funding Notice, a Letter of Credit Application, or a Conversion/ Continuation Notice.

Obligations ” means (i) all obligations of every nature of each Credit Party, including obligations from time to time owed to any Agent (including any former Agent), Lenders or any of them and Lender Counterparties, to the extent arising under any Credit Document or Hedge Agreement, whether for principal, interest (including interest which, but for the filing of a petition in bankruptcy with respect to such Credit Party, would have accrued on any Obligation, whether or not a claim is allowed against such Credit Party for such interest in the related bankruptcy proceeding), reimbursement of amounts drawn under Letters of Credit, payments for early termination of Hedge Agreements, fees, expenses, indemnification or otherwise and (ii) all Cash Management Obligations.

Obligee Guarantor ” as defined in Section 7.7.

Obligors ” means, collectively, the Borrower and the Guarantors and “ Obligor ” means any of them.

Organizational Documents ” means (i) with respect to any corporation, its certificate or articles of incorporation or organization, as amended, and its by-laws, as amended, (ii) with respect to any limited partnership, its certificate of limited partnership, as amended, and its partnership agreement, as amended, (iii) with respect to any general partnership, its partnership agreement, as amended, (iv) with respect to any limited liability company, its articles of organization, as amended, and its operating agreement, as amended, and (v) with respect to any other Person, comparable instruments and documents. In the event any term or condition of this Agreement or any other Credit Document requires any Organizational Document to be certified by a secretary of state or similar governmental official, the reference to any such “Organizational Document” shall only be to a document of a type customarily certified by such governmental official.

Original Obligations ” as defined in Section 9.8(e)(i).

Parallel Debt Security ” as defined in Section 9.8(e)

Parallel Obligations ” as defined in Section 9.8(i).

PATRIOT Act ” as defined in Section 3.2(t).

PBGC ” means the Pension Benefit Guaranty Corporation or any successor thereto.

Pension Plan ” means any Employee Benefit Plan, other than a Multiemployer Plan, which is subject to Section 412 of the Internal Revenue Code or Section 302 of ERISA.

 

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Permitted Acquisition ” means any acquisition by the Borrower or any of its wholly-owned Subsidiaries, whether by purchase, merger or otherwise, of all or substantially all of the assets of, all of the Equity Interests of, or a business line or unit or a division of, any Person; provided ,

(i) immediately prior to, and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing or would result therefrom;

(ii) all transactions in connection therewith shall be consummated, in all material respects, in accordance with all applicable laws and in conformity with all applicable Governmental Authorizations;

(iii) in the case of the acquisition of Equity Interests, all of the Equity Interests (except for any such Securities in the nature of directors’ qualifying shares required pursuant to applicable law) acquired or otherwise issued by such Person or any newly formed Subsidiary of the Borrower in connection with such acquisition shall be owned 100% by the Borrower or a Guarantor thereof, and the Borrower shall have taken, or caused to be taken, as of the date such Person becomes a Subsidiary of the Borrower, each of the actions set forth in Sections 5.10 and/or 5.11, as applicable;

(iv) the Borrower and its Subsidiaries shall be in compliance with the financial covenants set forth in Section 6.7 on a pro forma basis after giving effect to such acquisition as of the last day of the Fiscal Quarter most recently ended;

(v) the Borrower shall have delivered to the Administrative Agent (i) a Compliance Certificate evidencing compliance with Section 6.7 as required under clause (iv) above and (ii) in the event the purchase price of such Permitted Acquisition is greater than $25,000,000, (A) all other relevant financial information with respect to such acquired assets, including the aggregate consideration for such acquisition and any other information required to demonstrate compliance with Section 6.7 and (B) promptly upon request by the Administrative Agent, (i) a copy of the purchase agreement related to the proposed Permitted Acquisition (and any related documents reasonably requested by the Administrative Agent) and (ii) quarterly and annual financial statements of the Person whose Equity Interests or assets are being acquired for the twelve (12) month period immediately prior to such proposed Permitted Acquisition, including any audited financial statements that are available;

(vi) any Person or assets or division as acquired in accordance herewith shall be in same business or lines of business in which the Borrower and/or its Subsidiaries are engaged as of the Third Wave Merger Effective Date and similar or related businesses, including, without limitation, any medical pharmaceutical, diagnostic or other health oriented business and any businesses related, ancillary or incidental thereto, or that is an adjunct thereto ( provided that the Administrative Agent consents to such adjunct if material), or a reasonable extension, development or expansion thereof; and

 

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(vii) the aggregate unused portion of the Revolving Commitments at such time (after giving effect to the consummation of the respective Permitted Acquisition and any financing thereof) shall equal or exceed $100,000,000.

For the avoidance of doubt, the Third Wave Acquisition, the Third Wave Merger and the Agilent Acquisition constitute Permitted Acquisitions for all purposes hereunder and under the other Credit Documents.

Permitted Liens ” means each of the Liens permitted pursuant to Section 6.2.

Person ” means and includes natural persons, corporations, limited partnerships, general partnerships, limited liability companies, limited liability partnerships, joint stock companies, Joint Ventures, associations, companies, trusts, banks, trust companies, land trusts, business trusts or other organizations, whether or not legal entities, and Governmental Authorities.

Platform ” as defined in Section 5.1(p).

Pledge and Security Agreement ” means that certain Amended and Restated Pledge and Security Agreement dated as of the Restatement Date by and among the Borrower and certain of its Subsidiaries, as Grantors, and the Collateral Agent, as it has been or may be amended, restated, amended and restated, supplemented or otherwise modified from time to time.

Pledged Foreign Subsidiary ” means each Foreign Subsidiary as to which a valid and perfected First Priority Lien has been granted to the Collateral Agent, for the benefit of the Secured Parties, in the Equity Interests of such Foreign Subsidiary, in accordance with Section 5.10(b).

Prepayment Date ” as defined in Section 2.15(c).

Prime Rate ” means the rate of interest quoted in The Wall Street Journal , Money Rates Section as the Prime Rate (currently defined as the base rate on corporate loans posted by at least 75% of the nation’s thirty (30) largest banks), as in effect from time to time. The Prime Rate is a reference rate and does not necessarily represent the lowest or best rate actually charged to any customer. Any Lender may make commercial loans or other loans at rates of interest at, above or below the Prime Rate.

Principal Office ” means, for each of the Administrative Agent, the Swing Line Lender and the Issuing Bank, such Person’s “Principal Office” as set forth on Appendix B, or such other office or office of a third party or sub-agent, as appropriate, as such Person may from time to time designate in writing to the Borrower, the Administrative Agent and each Lender.

Prior Acquisitions ” means the following acquisitions: merger of Admiral Acquisition Corporation with and into Adiana, Inc. effective March 16, 2007 (agreement and plan of merger dated February 26, 2007); acquisition of assets of Helica Instruments Limited by Cytyc Cayman Limited effective October 25, 2006; merger of Augusta Medical corporation with and into Adeza Medical Corporation effective April 2, 2007 (subsequent to tender offer of shares

 

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of Adeza’s stock) (agreement and plan of merger dated February 11, 2007); merger of Bravo Transition, Inc. into BioLucent, Inc. and subsequent merger of BioLucent into Bravo Acquisition I, LLC effective September 19, 2007 (agreement and plan of reorganization dated June 20, 2007); and AEG Elektrofotografie GmbH acquisition of 14.5% of AEG Photoconductor Shanghai Ltd from SIMTEK New Technology Co., Ltd, pursuant to an agreement dated April 25, 2007.

Projections ” as defined in Section 4.8.

“Pro Rata Share” means (i) with respect to all payments, computations and other matters relating to the Tranche A Term Loan of any Lender, the percentage obtained by dividing (a) the Tranche A Term Loan Exposure of that Lender by (b) the aggregate Tranche A Term Loan Exposure of all Lenders; (ii) with respect to all payments, computations and other matters relating to the Tranche B Term Loan of any Lender, the percentage obtained by dividing (a) the Tranche B Term Loan Exposure of that Lender by (b) the aggregate Tranche B Term Loan Exposure of all Lenders; (iii) with respect to all payments, computations and other matters relating to the Revolving Commitment or Revolving Loans of any Lender or any Letters of Credit issued or participations purchased therein by any Lender or any participations in any Swing Line Loans purchased by any Lender, the percentage obtained by dividing (a) the Revolving Exposure of that Lender by (b) the aggregate Revolving Exposure of all Lenders; and (iv) with respect to all payments, computations, and other matters relating to New Term Loan Commitments or New Term Loans of a particular Series, the percentage obtained by dividing (a) the New Term Loan Exposure of that Lender with respect to that Series by (b) the aggregate New Term Loan Exposure of all Lenders with respect to that Series. For all other purposes with respect to each Lender, “Pro Rata Share” means the percentage obtained by dividing (A) an amount equal to the sum of (i) the Tranche A Term Loan Exposure, (ii) the Tranche B Term Loan Exposure, (iii) the Revolving Exposure and (iv) the New Term Loan Exposure of that Lender, by (B) an amount equal to the sum of the aggregate Tranche A Term Loan Exposure, the aggregate Tranche B Term Loan Exposure, the aggregate Revolving Exposure and the aggregate New Term Loan Exposure of all Lenders.

RBC ” as defined in the preamble hereto.

Real Estate Asset ” means, at any time of determination, any interest (fee, leasehold or otherwise) then owned by any Credit Party in any real property.

Record Document ” means, with respect to (A) any Leasehold Property, (i) the lease evidencing such Leasehold Property or a memorandum thereof, executed and acknowledged by the owner of the affected real property, as lessor, or (ii) if such Leasehold Property was acquired or subleased from the holder of a Recorded Leasehold Interest, the applicable assignment or sublease document, executed and acknowledged by such holder, in each case in form sufficient to give such constructive notice upon recordation and otherwise in form reasonably satisfactory to the Collateral Agent and (B) any Licensed Intellectual Property, (i) the license evidencing such Intellectual Property or a memorandum thereof, executed and acknowledged by the licensor of the affected Intellectual Property, or (ii) if such Licensed Intellectual Property was acquired or sublicensed from the holder of licensed rights or interests in the Intellectual Property, the applicable assignment or sublicense document, executed and

 

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acknowledged by such holder, in each case in form sufficient to give constructive notice upon filing or recordation in the U.S. Patent and Trademark Office, U.S. Copyright Office, or any foreign equivalent place of filing, of the transfer or license of such holder’s rights or interests and otherwise in form reasonably satisfactory to the Collateral Agent.

Recorded Leasehold Interest ” means a Leasehold Property with respect to which a Record Document has been recorded in all places necessary or desirable, in the Collateral Agent’s reasonable judgment, to give constructive notice of such Leasehold Property to third-party purchasers and encumbrancers of the affected real property.

Recorded License Interest ” means Licensed Intellectual Property with respect to which a Record Document has been recorded in all places necessary or desirable, in the Collateral Agent’s reasonable judgment, to give constructive notice of such Licensed Intellectual Property to bona fide purchasers, mortgagees, transferees and licensees of the affected Intellectual Property.

Refunded Swing Line Loans ” as defined in Section 2.3(b)(iv).

Register ” as defined in Section 2.7(b).

Regulation D ” means Regulation D of the Board of Governors, as in effect from time to time.

Regulation FD ” means Regulation FD as promulgated by the U.S. Securities and Exchange Commission under the Securities Act and Exchange Act as in effect from time to time.

Reimbursement Date ” as defined in Section 2.4(d).

Related Agreements ” means the Cytyc Merger Agreement and the Third Wave Merger Agreement and all other documents and agreements executed and delivered in connection therewith or pursuant thereto.

Related Fund ” means, with respect to any Lender that is an investment fund, any other investment fund that invests in commercial loans and that is managed or advised by the same investment advisor as such Lender or by an Affiliate of such investment advisor.

Release ” means any release, spill, emission, leaking, pumping, pouring, injection, escaping, deposit, disposal, discharge, dispersal, dumping, leaching or migration of any Hazardous Material into the indoor or outdoor environment (including the abandonment or disposal of any barrels, containers or other closed receptacles containing any Hazardous Material), including the movement of any Hazardous Material through the air, soil, surface water or groundwater.

Replacement Lender ” as defined in Section 2.23.

Requisite Lenders ” means one or more Lenders having or holding (i) Tranche A Term Loan Exposure, (ii) Tranche B Term Loan Exposure, (iii) New Term Loan Exposure

 

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and/or (iv) Revolving Exposure and representing more than 50% of the sum of (i) the aggregate Tranche A Term Loan Exposure of all Lenders, (ii) the aggregate Tranche B Term Loan Exposure of all Lenders (iii) the aggregate Revolving Exposure of all Lenders and (iv) the aggregate New Term Loan Exposure of all Lenders.

Restatement Date ” means July 17, 2008, the date on which the conditions precedent set forth in Section 3.2 shall have been satisfied or waived in accordance with the terms hereof and the initial borrowing of Tranche A Term Loans and/or Tranche B Term Loans under this Agreement shall have been made.

Restatement Date Certificate ” means a Restatement Date Certificate substantially in the form of Exhibit G-1.

Restricted Junior Payment ” means (i) any dividend or other distribution, direct or indirect, on account of any shares of any class of stock of the Borrower now or hereafter outstanding, except a dividend payable solely in shares of that class of stock to the holders of that class; (ii) any redemption, retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of any shares of any class of stock of the Borrower now or hereafter outstanding; (iii) any payment made to retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire shares of any class of stock of the Borrower now or hereafter outstanding; and (iv) any payment or prepayment of principal of, premium, if any, or interest on, or redemption, purchase, retirement, defeasance (including in-substance or legal defeasance), sinking fund, cash settlement or similar payment with respect to the Cytyc Convertible Notes, any unsecured Indebtedness (other than unsecured Indebtedness permitted by clauses (b), (c), (d), (e), (f), (g), (i), (j), (k), (m), (p), (q), (r), (s), (t), (u), (v) and (w) of Section 6.1 and, to the extent the Indebtedness being guarantied is not subordinated to the Obligations, clause (h) of Section 6.1) or any Subordinated Indebtedness.

Revaluation Date ” means with respect to all Letters of Credit, each of the following: (i) each date of issuance of each respective Letter of Credit, (ii) each date of any amendment of any such Letter of Credit that has the effect of increasing the amount thereof and (iii) each date of any payment by the Issuing Bank under any Letter of Credit.

Revolving Commitment ” means the commitment of a Lender to make or otherwise fund any Revolving Loan and to acquire participations in Letters of Credit and Swing Line Loans hereunder and “ Revolving Commitments ” means such commitments of all Lenders in the aggregate. The amount of each Lender’s Revolving Commitment, if any, as of the Restatement Date is the amount set forth by such Lender’s name on Appendix A-3 attached to this Agreement or in the applicable Assignment Agreement or Joinder Agreement, as applicable, subject to any adjustment or reduction pursuant to the terms and conditions hereof. The aggregate amount of the Revolving Commitments as of the Restatement Date is $200,000,000.

Revolving Commitment Period ” means the period from the Closing Date to but excluding the Revolving Commitment Termination Date.

Revolving Commitment Termination Date ” means the earliest to occur of (i) December 5, 2008, if the initial Term Loans are not made on or before that date; (ii) September 30, 2012,

 

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(iii) the date the Revolving Commitments are permanently reduced to zero pursuant to Section 2.13(b) or 2.14, and (iv) the date of the termination of the Revolving Commitments pursuant to Section 8.1.

Revolving Exposure ” means, with respect to any Lender, as of any date of determination, (i) prior to the termination of the Revolving Commitments, that Lender’s Revolving Commitment; and (ii) after the termination of the Revolving Commitments, the sum of (a) the aggregate outstanding principal amount of the Revolving Loans of that Lender, (b) in the case of the Issuing Bank, the aggregate Letter of Credit Usage in respect of all Letters of Credit issued by that Lender (net of any participations by Lenders in such Letters of Credit), (c) the aggregate amount of all participations by that Lender in any outstanding Letters of Credit or any unreimbursed drawing under any Letter of Credit, (d) in the case of the Swing Line Lender, the aggregate outstanding principal amount of all Swing Line Loans (net of any participations therein by other Lenders), and (e) the aggregate amount of all participations by that Lender in any outstanding Swing Line Loans.

Revolving Loan ” means a Loan made by a Lender to the Borrower pursuant to Section 2.2(a) and/or Section 2.24.

Revolving Loan Note ” means (i) any Revolving Loan Note as defined in and issued pursuant to the Existing Credit Agreement and (ii) any promissory note in the form of Exhibit B-3, as amended, restated, amended and restated, supplemented or otherwise modified from time to time.

S&P ” means Standard & Poor’s, a Division of The McGraw-Hill Companies, Inc.

Secured Parties ” has the meaning assigned to that term in the Pledge and Security Agreement.

“Securities” means any stock, shares, partnership interests, voting trust certificates, certificates of interest or participation in any profit-sharing agreement or arrangement, options, warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments commonly known as “securities” or any certificates of interest, shares or participations in temporary or interim certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire, any of the foregoing.

Securities Act ” means the Securities Act of 1933, as amended from time to time, and any successor statute.

Senior Secured Leverage Ratio ” means the ratio as of the last day of any Fiscal Quarter of (i) Consolidated Senior Secured Debt as of such day to (ii) Consolidated Adjusted EBITDA for the four-Fiscal Quarter period ending on such date.

Senior Unsecured Indebtedness ” means (i) any senior unsecured indebtedness issued pursuant to and in accordance with Section 6.1(n) and (ii) the Hologic Convertible Notes.

 

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Series ” as defined in Section 2.24.

Sole Lead Arranger ” as defined in the preamble hereto.

Solvency Certificate ” means a Solvency Certificate of the chief financial officer of the Borrower substantially in the form of Exhibit G-2.

Solvent ” means, with respect to the Borrower and its Subsidiaries on a consolidated basis, that as of the date of determination, both (i) (a) the sum of such Person’s debt (including contingent liabilities) does not exceed the present fair saleable value of such Parties’ present assets on a consolidated basis; (b) such Person’s capital is not unreasonably small in relation to its business on a consolidated basis; and (c) such Persons have not incurred and does not intend to incur, or believe (nor should they reasonably believe) that they will incur, debts beyond their ability to pay such debts as they become due (whether at maturity or otherwise) on a consolidated basis; and (ii) such Persons on a consolidated basis are “solvent” within the meaning given that term and similar terms under the Bankruptcy Code and applicable laws relating to fraudulent transfers and conveyances. For purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that would reasonably be expected to become an actual or matured liability (irrespective of whether such contingent liabilities meet the criteria for accrual under Statement of Financial Accounting Standard No. 5).

Spot Rate ” for a currency means the rate determined by the Issuing Bank to be the rate quoted by the Issuing Bank as the spot rate for the purchase by the Issuing Bank of such currency with another currency through its principal foreign exchange trading office at approximately 11:00 a.m. on the date two (2) Business Days prior to the date as of which the foreign exchange computation is made; provided that the Issuing Bank may obtain such spot rate from another financial institution designated by the Issuing Bank if it does not have as of the date of determination a spot buying rate for any such currency.

Spread Overlay Agreements ” means one or more options or other derivative transactions entered into by the Borrower in connection with its issuance of convertible Indebtedness in December 2007.

Stated Amount ” of any Letter of Credit means the Dollar Equivalent of the maximum amount from time to time available to be drawn thereunder, determined without regard to whether any conditions to drawing could then be met.

Subject Transaction ” as defined in Section 6.7(c).

Subordinated Indebtedness ” means any subordinated indebtedness issued pursuant to and in accordance with Section 6.1(o).

Subsidiary ” means, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture or other business entity of which more than 50% of the total voting power of shares of stock or other ownership interests entitled (without regard to the occurrence of any contingency) to vote in the election of the Person or Persons (whether directors, managers, trustees or other Persons performing similar functions) having the

 

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power to direct or cause the direction of the management and policies thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof; provided , in determining the percentage of ownership interests of any Person controlled by another Person, no ownership interest in the nature of a “qualifying share” of the former Person shall be deemed to be outstanding.

Swing Line Lender ” means Bank of America, N.A., in its capacity as Swing Line Lender hereunder, together with its permitted successors and assigns in such capacity.

Swing Line Loan ” means a Loan made by the Swing Line Lender to the Borrower pursuant to Section 2.3.

Swing Line Note ” means a promissory note in the form of Exhibit B-4, as amended, restated, amended and restated, supplemented or otherwise modified from time to time.

Swing Line Sublimit ” means the lesser of (i) $10,000,000 and (ii) the aggregate unused amount of Revolving Commitments then in effect.

Tax ” means any present or future tax, levy, impost, duty, assessment, charge, fee, deduction or withholding of any nature and whatever called, by whomsoever, on whomsoever and wherever imposed, levied, collected, withheld or assessed, including any interest, additions to tax, or penalties applicable thereto; provided , “Tax on the overall net income” of a Person shall be construed as a reference to a tax imposed by the jurisdiction in which that Person is organized or in which that Person’s applicable principal office (and/or, in the case of a Lender, its lending office) is located or in which that Person (and/or, in the case of a Lender, its lending office) is deemed to be doing business (other than as a result of such Person’s having executed, delivered or performed its obligations or received payments under, or enforced, this Agreement or any other Credit Document) on the overall net income, profits or gains of that Person (and/or, in the case of a Lender, its applicable lending office).

Terminated Lender ” as defined in Section 2.23.

Term Loan ” means a Tranche A Term Loan, a Tranche B Term Loan or a New Term Loan, as applicable.

Term Loan Commitment ” means the Tranche A Term Loan Commitment, the Tranche B Term Loan Commitment or the New Term Loan Commitment, as the case may be, of a Lender, and “ Term Loan Commitments ” means such commitments of all Lenders.

Term Loan Commitment Termination Date ” means the earlier of (x) December 5, 2008 and (y) the Third Wave Merger Effective Date.

Term Loan Draw Date ” as defined in Section 2.1(a).

Term Loan Maturity Date ” means the Tranche A Term Loan Maturity Date, the Tranche B Term Loan Maturity Date or the New Term Loan Maturity Date of any Series of New Term Loans, as applicable.

 

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Third Wave ” means Third Wave Technologies, Inc., a Delaware corporation.

Third Wave Acquisition ” means the acquisition, on the Restatement Date, by the Third Wave Offer Subsidiary of all of the Third Wave Shares validly tendered and not withdrawn pursuant to that certain Offer to Purchase dated June 18, 2008 by the Third Wave Offer Subsidiary and payment to, or on behalf of, the holders of such Third Wave Shares as consideration therefor upon the satisfaction of all of the “Tender Offer Conditions” under and as defined in the Third Wave Merger Agreement and, in any event, in compliance with Rule 14e-1(c) promulgated under the Exchange Act.

Third Wave Collateral Questionnaire ” means that certain Pre-Closing UCC Diligence Certificate to be executed and delivered by Third Wave and each Subsidiary of Third Wave organized under the laws of the United States of America, any state thereof or the District of Columbia on the Restatement Date and that provides information with respect to the personal and mixed property of Third Wave and such Subsidiaries as of the Restatement Date.

Third Wave Condition ” means that (i) the Third Wave Merger has been consummated, (ii) the Third Wave Shares have been delisted from the Nasdaq Global Select Market and deregistered under the Exchange Act and (iii) Third Wave has filed a Form 15 with the U.S. Securities and Exchange Commission terminating its registration under Section 12(g) of the Exchange Act.

Third Wave Consideration and Related Expenditures ” means (i) the funding of all or a portion of the Third Wave Acquisition (including, without limitation, payments made on account of appraisal rights with respect to the Third Wave Shares held by stockholder(s) exercising such appraisal rights and/or pursuant to the Borrower’s exercise, if applicable, of the Third Wave Top Up Option) and the Third Wave Merger, (ii) the redemption of some or all of the preferred stock, warrants (or stock issued upon the exercise thereof) and options issued by Third Wave and/or its Subsidiaries, (iii) the Discharge of Third Wave Obligations (in whole or part) and/or (iv) the payment of some or all of the Transaction Costs.

Third Wave Convertible Note ” means that certain Convertible Senior Subordinated Zero-Coupon Promissory Note issued by Third Wave on December 19, 2006 to Stark Onshore Master Holding LLC, as amended on December 10, 2007.

Third Wave Convertible Note Escrow Account ” means that certain deposit account of the Borrower in the name of “Hologic, Inc.” established with JPM, containing (in accordance with the provisions relating to the requirements therefor contained in Section 5.16(b)) funds sufficient for the redemption or conversion of the Third Wave Convertible Note, pursuant to Section 5(b) of the Third Wave Convertible Note or otherwise, which account shall be subject to a First Priority Lien in favor of the Collateral Agent, for the benefit of the Secured Parties.

Third Wave Exception ” means that, until the Third Wave Condition is satisfied, (i) the Collateral shall not include a pledge of the Third Wave Shares or any assets of Third Wave or any of its Subsidiaries, and (ii) neither Third Wave nor any of its Subsidiaries shall be required to become a Guarantor hereunder or a Grantor under the Pledge and Security Agreement nor shall any of them be required to satisfy any of the obligations of a Credit Party under Sections 5.10, 5.11 or 5.13.

 

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Third Wave Facility Agreement ” means that certain Facility Agreement dated as of December 10, 2007 by and among Third Wave and the Third Wave Facility Lenders.

Third Wave Facility Lenders ” means Deerfield Private Design Fund, L.P., Deerfield Private Design International, L.P. and each of their respective successors and assigns, in their capacities as “Lenders” under the Third Wave Facility Agreement.

Third Wave Leasehold Facility ” means that certain Facility located at 500, 502 and 504 South Rosa Road, Madison, Dane County, Wisconsin in respect of which Third Wave is a lessee.

Third Wave Merger ” means the merger of Third Wave with the Third Wave Offer Subsidiary, with Third Wave being the surviving corporation in such merger.

Third Wave Merger Agreement ” means that certain Agreement and Plan of Merger dated June 8, 2008 by and among Third Wave, the Borrower and the Third Wave Offer Subsidiary, as such agreement may, subject to Section 6.13 hereof, be amended, restated, amended and restated, supplemented or otherwise modified from time to time.

Third Wave Merger Effective Date ” has the meaning assigned to the term “Closing Date” in the Third Wave Merger Agreement.

Third Wave Obligations ” means the obligations of Third Wave described in Section 5.16.

Third Wave Offer Subsidiary ” means Thunder Tech Corp., a wholly-owned subsidiary of the Borrower, formed to acquire the Third Wave Shares.

Third Wave Put Price ” has the meaning assigned to the term “Put Price” in the Third Wave Rights Agreement.

Third Wave Rights Agreement ” means that certain Investor Rights Agreement dated as of May 31, 2007 by and among Third Wave Japan, Inc., Third Wave and the Investors listed on Exhibit A thereto.

 

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Third Wave Shares ” means all of the issued and outstanding shares of common stock, par value $0.001 per share, of Third Wave.

Third Wave Top Up Option ” has the meaning assigned to the term “Top-Up Option” in the Third Wave Merger Agreement.

Third Wave Warrant Redemption Price ” has the meaning assigned to the term “Major Transaction Warrant Redemption Price” in each Third Wave Warrant.

Third Wave Warrants ” means (i) that certain Warrant No. 3 issued as of December 10, 2007 to OTA, LLC to purchase 350,000 Third Wave Shares; (ii) that certain Warrant No. 4 issued as of December 10, 2007 to Crestview Capital Master, LLC to purchase 250,000 Third Wave Shares; (iii) that certain Warrant No. 5 issued as of December 10, 2007 to Deerfield Private Design Fund, L.P. to purchase 464,564 Third Wave Shares; and (iv) that certain Warrant No. 6 issued as of December 10, 2007 to Deerfield Private Design International, L.P. to purchase 750,436 Third Wave Shares.

Title Policy ” means ALTA mortgagee title insurance policies or unconditional commitments therefor issued by one or more title companies reasonably satisfactory to the Collateral Agent with respect to each Closing Date Mortgaged Property.

Total Assets ” means the total amount of all assets of the Borrower and its Subsidiaries, determined on a consolidated basis in accordance with GAAP as shown on the most recent balance sheet of the Borrower.

Total Utilization of Revolving Commitments ” means, as at any date of determination, the sum of (i) the aggregate principal amount of all outstanding Revolving Loans (other than Revolving Loans made for the purpose of repaying any Refunded Swing Line Loans or reimbursing the Issuing Bank for any amount drawn under any Letter of Credit, but not yet so applied), (ii) the aggregate principal amount of all outstanding Swing Line Loans, and (iii) the Letter of Credit Usage.

Tranche A Installment ” as defined in Section 2.12(a).

Tranche A Term Loan ” means a Tranche A Term Loan made by a Lender to the Borrower pursuant to Section 2.1(a)(i).

Tranche A Term Loan Commitment ” means the commitment of a Lender to make or otherwise fund a Tranche A Term Loan and “ Tranche A Term Loan Commitments ” means such commitments of all Lenders in the aggregate. The amount of each Lender’s Tranche A Term Loan Commitment, if any, is set forth on Appendix A-1 or in the applicable Assignment Agreement, subject to any adjustment or reduction pursuant to the terms and conditions hereof. The aggregate amount of the Tranche A Term Loan Commitments as of the Restatement Date is $400,000,000.

Tranche A Term Loan Exposure ” means, with respect to any Lender, as of any date of determination, the outstanding principal amount of the Tranche A Term Loan of such Lender; provided , at any time prior to the making of the Tranche A Term Loans, the Tranche A Term Loan Exposure of any Lender shall be equal to such Lender’s Tranche A Term Loan Commitment.

 

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Tranche A Term Loan Maturity Date ” means the earlier of (i) September 30, 2012, and (ii) the date on which all Tranche A Term Loans shall become due and payable in full hereunder, whether by acceleration or otherwise.

Tranche A Term Loan Note ” means a promissory note in the form of Exhibit B-1, as amended, restated, amended and restated, supplemented or otherwise modified from time to time.

Tranche B Installment ” as defined in Section 2.12(b).

Tranche B Term Loan Maturity Date ” means the earlier of (i) March 31, 2013, and (ii) the date that all Tranche B Term Loans shall become due and payable in full hereunder, whether by acceleration or otherwise.

Tranche B Term Loan ” means a Tranche B Term Loan made by a Lender to the Borrower pursuant to Section 2.1(a)(ii).

Tranche B Term Loan Commitment ” means the commitment of a Lender to make or otherwise fund a Tranche B Term Loan and “ Tranche B Term Loan Commitments ” means such commitments of all Lenders in the aggregate. The amount of each Lender’s Tranche B Term Loan Commitment, if any, is set forth on Appendix A-2 or in the applicable Assignment Agreement, subject to any adjustment or reduction pursuant to the terms and conditions hereof. The aggregate amount of the Tranche B Term Loan Commitments as of the Restatement Date is $200,000,000.

Tranche B Term Loan Exposure ” means, with respect to any Lender, as of any date of determination, the outstanding principal amount of the Tranche B Term Loan of such Lender; provided , at any time prior to the making of the Tranche B Term Loans, the Tranche B Term Loan Exposure of any Lender shall be equal to such Lender’s Tranche B Term Loan Commitment.

Tranche B Term Loan Note ” means, a promissory note in the form of Exhibit B-2, as amended, restated, amended and restated, supplemented or otherwise modified from time to time.

Transaction Costs ” means the fees, commissions, costs and expenses payable by the Borrower or any of the Borrower’s Subsidiaries on or before the Third Wave Merger Effective Date in connection with the transactions contemplated by the Credit Documents and the Related Agreements, including, without limitation, any change of control payments (i) to executives of Third Wave and its Subsidiaries (including gross-up payments to Third Wave’s chief executive officer) and (ii) under certain license agreements to which Third Wave or any of its Subsidiaries is a party.

 

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Type of Loan ” means (i) with respect to either Term Loans or Revolving Loans, a Base Rate Loan or a Eurodollar Rate Loan, and (ii) with respect to Swing Line Loans, a Base Rate Loan.

UCC ” means the Uniform Commercial Code (or any similar or equivalent legislation) as in effect in any applicable jurisdiction.

U.S. Lender ” as defined in Section 2.20(c).

Waivable Prepayment ” as defined in Section 2.15(c).

1.2. Accounting Terms. Except as otherwise expressly provided herein, all accounting terms not otherwise defined herein shall have the meanings assigned to them in conformity with GAAP. Financial statements and other information required to be delivered by the Borrower to Lenders pursuant to Section 5.1(b) and 5.1(c) shall be prepared in accordance with GAAP as in effect at the time of such preparation (and delivered together with the reconciliation statements provided for in Section 5.1(e), if applicable). Subject to the foregoing, calculations in connection with the definitions, covenants and other provisions hereof shall utilize accounting principles and policies in conformity with those used to prepare the Historical Financial Statements.

1.3. Interpretation, Etc. Any of the terms defined herein may, unless the context otherwise requires, be used in the singular or the plural, depending on the reference. References herein to any Section, Appendix, Schedule or Exhibit shall be to a Section, an Appendix, a Schedule or an Exhibit, as the case may be, hereof unless otherwise specifically provided. The use herein of the word “include” or “including,” when following any general statement, term or matter, shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as “without limitation” or “but not limited to” or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that fall within the broadest possible scope of such general statement, term or matter. The terms lease and license shall include sub-lease and sub-license, as applicable.

1.4. Letter of Credit Amounts. Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in effect at such time; provided , however , that with respect to any Letter of Credit that, by its terms or the terms of any Issuer Document related thereto, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time.

1.5. Exchange Rates. For purposes of determining compliance under Sections 6.1, 6.5 and 6.6 with respect to any amount in a currency other than Dollars (other than with respect to any amount derived from the financial statements of the Borrower or its Subsidiaries), such amount shall be deemed to equal the Dollar Equivalent thereof based on the average Spot Rate for such currency for the most recent twelve-month period immediately prior to the date of determination. For purposes of determining compliance with Sections 6.1, 6.2 and 6.6, with respect to any amount of Indebtedness denominated in a currency other than Dollars, compliance will be determined at the time of incurrence or advancing thereof using the Dollar Equivalent thereof at the Spot Rate in effect at the time of such incurrence or advancement.

 

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SECTION 2. LOANS AND LETTERS OF CREDIT

2.1. Term Loans.

(a) Loan Commitments . Subject to the terms and conditions hereof,

(i) each Lender severally agrees to make, on the Restatement Date and on two (2) additional Term Loan Draw Dates at any time during the Availability Period, a Tranche A Term Loan to the Borrower in Dollars in an amount equal to such Lender’s Tranche A Term Loan Commitment; and

(ii) each Lender severally agrees to make, on the Restatement Date and on two (2) additional Term Loan Draw Dates at any time during the Availability Period, a Tranche B Term Loan to the Borrower in Dollars in an amount equal to such Lender’s Tranche B Term Loan Commitment.

If the Third Wave Merger is consummated on the Restatement Date, the Borrower may make only one borrowing under each of the Tranche A Term Loan Commitments and the Tranche B Term Loan Commitments which shall be on the Restatement Date. If the Third Wave Merger is not consummated on the Restatement Date, the Borrower may make (i) one borrowing under each of the Tranche A Term Loan Commitments and the Tranche B Term Loan Commitments on the Restatement Date and (ii) two additional borrowings during the Availability Period (each date on which such additional borrowing is made, a “ Term Loan Draw Date ”). Any amounts borrowed under this Section 2.1(a) and subsequently repaid or prepaid may not be reborrowed. Subject to Sections 2.13(a) and 2.14, all amounts owed hereunder with respect to the Tranche A Term Loans and the Tranche B Term Loans shall be paid in full no later than the Tranche A Term Loan Maturity Date and the Tranche B Term Loan Maturity Date, respectively. Each Lender’s Tranche A Term Loan Commitment and/or Tranche B Term Loan Commitment, as the case may be, shall be automatically reduced immediately and without further action on the Restatement Date and on each Term Loan Draw Date in the amount of such Lender’s Tranche A Term Loans and/or Tranche B Term Loans, as the case may be, funded on such date. The remaining amount of all unfunded Tranche A Term Loan Commitments and Tranche B Term Loan Commitments in effect on the Term Loan Commitment Termination Date shall terminate immediately and without further action on such date, after giving effect to the funding of the Tranche A Term Loans and/or Tranche B Term Loans, if any, on such date.

(b) Borrowing Mechanics for Term Loans .

(i) The Borrower shall deliver to the Administrative Agent a fully executed Funding Notice no later than 10:00 a.m. (New York City time) on the Restatement Date. Promptly upon receipt by the Administrative Agent of such Funding Notice, the Administrative Agent shall notify each Lender of the proposed borrowing.

(ii) Whenever the Borrower desires that Lenders make a Term Loan on a Term Loan Draw Date, the Borrower shall deliver to the Administrative Agent a fully

 

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executed and delivered Funding Notice no later than 10:00 a.m. (New York City time) at least three (3) Business Days in advance of the proposed Term Loan Draw Date in the case of a Term Loan that is a Eurodollar Rate Loan, and at least one (1) Business Day in advance of the proposed Term Loan Draw Date in the case of a Term Loan that is a Base Rate Loan. Each Lender shall make its Tranche A Term Loan and/or Tranche B Term Loan, as the case may be, available to the Administrative Agent not later than 12:00 noon (New York City time) on the Restatement Date or any Term Loan Draw Date, as the case may be, by wire transfer of same day funds in Dollars, at the Principal Office designated by the Administrative Agent. Upon satisfaction or waiver of the conditions precedent specified herein, the Administrative Agent shall make the proceeds of the applicable Term Loans available to the Borrower on the Restatement Date or the applicable Term Loan Draw Date, as the case may be, by causing an amount of same day funds in Dollars equal to the proceeds of all such Loans received by the Administrative Agent from the Lenders to be credited to the account of the Borrower at the Principal Office designated by the Administrative Agent or to such other account as may be designated in writing to the Administrative Agent by the Borrower.

2.2. Revolving Loans.

(a) Revolving Commitments . During the Revolving Commitment Period, subject to the terms and conditions hereof, each Lender severally agrees to make Revolving Loans to the Borrower in Dollars in an aggregate amount up to but not exceeding such Lender’s Revolving Commitment; provided , that (i) after giving effect to the making of any Revolving Loans in no event shall the Total Utilization of Revolving Commitments exceed the Revolving Commitments then in effect and (ii) at no time from the Restatement Date through (and including) the last day of the Availability Period shall any Lender be obligated to make any Revolving Loan if, after giving effect to the making of such Revolving Loan, the Total Utilization of Revolving Commitments would exceed $100,000,000. Amounts borrowed pursuant to this Section 2.2(a) may be repaid and reborrowed during the Revolving Commitment Period. Each Lender’s Revolving Commitment shall expire on the Revolving Commitment Termination Date and all Revolving Loans and all other amounts owed hereunder with respect to the Revolving Loans and the Revolving Commitments shall be paid in full no later than such date. Any Revolving Loan outstanding under the Existing Credit Agreement on the Restatement Date shall continue to be outstanding and be deemed to be a Revolving Loan made hereunder subject the terms and conditions hereof.

(b) Borrowing Mechanics for Revolving Loans .

(i) Except pursuant to Section 2.4(d), Revolving Loans that are Base Rate Loans shall be made in an aggregate minimum amount of $5,000,000 and integral multiples of $1,000,000 in excess of that amount, and Revolving Loans that are Eurodollar Rate Loans shall be in an aggregate minimum amount of $5,000,000 and integral multiples of $1,000,000 in excess of that amount.

(ii) Whenever the Borrower desires that Lenders make Revolving Loans, the Borrower shall deliver to Administrative Agent a fully executed and delivered Funding Notice no later than 10:00 a.m. (New York City time) at least three (3) Business

 

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Days in advance of the proposed Credit Date in the case of a Eurodollar Rate Loan, and at least one (1) Business Day in advance of the proposed Credit Date in the case of a Revolving Loan that is a Base Rate Loan. Except as otherwise provided herein, a Funding Notice for a Revolving Loan that is a Eurodollar Rate Loan shall be irrevocable on and after the related Interest Rate Determination Date, and the Borrower shall be bound to make a borrowing in accordance therewith.

(iii) Notice of receipt of each Funding Notice in respect of Revolving Loans, together with the amount of each Lender’s Pro Rata Share thereof, if any, together with the applicable interest rate, shall be provided by the Administrative Agent to each applicable Lender by telefacsimile with reasonable promptness, but ( provided the Administrative Agent shall have received such notice by 10:00 a.m. (New York City time)) not later than 2:00 p.m. (New York City time) on the same day as the Administrative Agent’s receipt of such Funding Notice from the Borrower.

(iv) Each Lender shall make the amount of its Revolving Loan available to the Administrative Agent not later than 12:00 noon (New York City time) on the applicable Credit Date by wire transfer of same day funds in Dollars, at the Principal Office designated by the Administrative Agent. Except as provided herein, upon satisfaction or waiver of the applicable conditions precedent specified herein, the Administrative Agent shall make the proceeds of such Revolving Loans available to the Borrower on the applicable Credit Date by causing an amount of same day funds in Dollars equal to the proceeds of all such Revolving Loans received by the Administrative Agent from Lenders to be credited to the account of the Borrower at the Principal Office designated by the Administrative Agent or such other account as may be designated in writing to the Administrative Agent by the Borrower.

2.3. Swing Line Loans.

(a) Swing Line Loans Commitments . During the Revolving Commitment Period, subject to the terms and conditions hereof, the Swing Line Lender hereby agrees to make Swing Line Loans to the Borrower in Dollars in the aggregate amount up to but not exceeding the Swing Line Sublimit; provided , that (i) after giving effect to the making of any Swing Line Loan, in no event shall the Total Utilization of Revolving Commitments exceed the Revolving Commitments then in effect and (ii) at no time from the Restatement Date through (and including) the last day of the Availability Period, shall the Swing Line Lender be obligated to make any Swing Line Loans if after giving effect to the making of such Swing Line Loan the Total Utilization of Revolving Commitments would exceed $100,000,000. Amounts borrowed pursuant to this Section 2.3 may be repaid and reborrowed during the Revolving Commitment Period. The Swing Line Lender’s Revolving Commitment shall expire on the Revolving Commitment Termination Date and all Swing Line Loans and all other amounts owed hereunder with respect to the Swing Line Loans and the Revolving Commitments shall be paid in full no later than such date.

 

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(b) Borrowing Mechanics for Swing Line Loans .

(i) Swing Line Loans shall be made in a minimum amount of $500,000 and integral multiples of $100,000 in excess of that amount.

(ii) Whenever the Borrower desires that the Swing Line Lender make a Swing Line Loan, the Borrower shall deliver to the Administrative Agent a Funding Notice no later than 12:00 noon (New York City time) on the proposed Credit Date.

(iii) The Swing Line Lender shall make the amount of its Swing Line Loan available to the Administrative Agent not later than 2:00 p.m.(New York City time) on the applicable Credit Date by wire transfer of same day funds in Dollars, at the Administrative Agent’s Principal Office. Except as provided herein, upon satisfaction or waiver of the conditions precedent specified herein, the Administrative Agent shall make the proceeds of such Swing Line Loan available to the Borrower on the applicable Credit Date by causing an amount of same day funds in Dollars equal to the proceeds of such Swing Line Loan received by the Administrative Agent from the Swing Line Lender to be credited to the account of the Borrower at the Administrative Agent’s Principal Office or to such other account as may be designated in writing to the Administrative Agent by the Borrower.

(iv) With respect to any Swing Line Loans which have not been voluntarily prepaid by the Borrower pursuant to Section 2.13, the Swing Line Lender may at any time in its sole and absolute discretion deliver to the Administrative Agent (with a copy to the Borrower), no later than 11:00 a.m. (New York City time) at least one (1) Business Day in advance of the proposed Credit Date, a notice (which shall be deemed to be a Funding Notice given by the Borrower) requesting that each Lender holding a Revolving Commitment make Revolving Loans that are Base Rate Loans to the Borrower on such Credit Date in an amount equal to the amount of such Swing Line Loans (the “ Refunded Swing Line Loans ”) outstanding on the date such notice is given which the Swing Line Lender requests Lenders to prepay. Anything contained in this Agreement to the contrary notwithstanding, (1) the proceeds of such Revolving Loans made by the Lenders other than the Swing Line Lender shall be immediately delivered by the Administrative Agent to the Swing Line Lender (and not to the Borrower) and applied to repay a corresponding portion of the Refunded Swing Line Loans and (2) on the day such Revolving Loans are made, the Swing Line Lender’s Pro Rata Share of the Refunded Swing Line Loans shall be deemed to be paid with the proceeds of a Revolving Loan made by the Swing Line Lender to the Borrower, and such portion of the Swing Line Loans deemed to be so paid shall no longer be outstanding as Swing Line Loans and shall no longer be due under the Swing Line Note of the Swing Line Lender but shall instead constitute part of the Swing Line Lender’s outstanding Revolving Loans to the Borrower and shall be due under the Revolving Loan Note issued by the Borrower to the Swing Line Lender. The Borrower hereby authorizes the Administrative Agent and the Swing Line Lender to charge the Borrower’s accounts with the Administrative Agent and the Swing Line Lender (up to the amount available in each such account) in order to immediately pay the Swing Line Lender the amount of the Refunded Swing Line Loans to the extent the proceeds of such Revolving Loans made by Lenders, including the

 

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Revolving Loans deemed to be made by the Swing Line Lender, are not sufficient to repay in full the Refunded Swing Line Loans. If any portion of any such amount paid (or deemed to be paid) to the Swing Line Lender should be recovered by or on behalf of the Borrower from the Swing Line Lender in bankruptcy, by assignment for the benefit of creditors or otherwise, the loss of the amount so recovered shall be ratably shared among all Lenders in the manner contemplated by Section 2.17.

(v) If for any reason Revolving Loans are not made pursuant to Section 2.3(b)(iv) in an amount sufficient to repay any amounts owed to the Swing Line Lender in respect of any outstanding Swing Line Loans on or before the third Business Day after demand for payment thereof by the Swing Line Lender, each Lender holding a Revolving Commitment shall be deemed to, and hereby agrees to, have purchased a participation in such outstanding Swing Line Loans in an amount equal to its Pro Rata Share of the applicable unpaid amount together with accrued interest thereon. Upon one (1) Business Day’s notice from the Swing Line Lender, each Lender holding a Revolving Commitment shall deliver to the Swing Line Lender an amount equal to its respective participation in the applicable unpaid amount in same day funds at the Principal Office of the Swing Line Lender. In order to evidence such participation each Lender holding a Revolving Commitment agrees to enter into a participation agreement at the request of the Swing Line Lender in form and substance reasonably satisfactory to the Swing Line Lender. In the event any Lender holding a Revolving Commitment fails to make available to the Swing Line Lender the amount of such Lender’s participation as provided in this paragraph, the Swing Line Lender shall be entitled to recover such amount on demand from such Lender together with interest thereon for three (3) Business Days at the rate customarily used by the Swing Line Lender for the correction of errors among banks and thereafter at the Base Rate, as applicable.

(vi) Notwithstanding anything contained herein to the contrary, (1) each Lender’s obligation to make Revolving Loans for the purpose of repaying any Refunded Swing Line Loans pursuant to the second preceding paragraph and each Lender’s obligation to purchase a participation in any unpaid Swing Line Loans pursuant to the immediately preceding paragraph shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any set-off, counterclaim, recoupment, defense or other right which such Lender may have against the Swing Line Lender, any Credit Party or any other Person for any reason whatsoever; (B) the occurrence or continuation of a Default or Event of Default; (C) any adverse change in the business, operations, properties, assets, condition (financial or otherwise) or prospects of any Credit Party; (D) any breach of this Agreement or any other Credit Document by any party thereto; or (E) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing; provided that such obligations of each Lender are subject to the condition that the Swing Line Lender had not received prior notice from the Borrower or the Requisite Lenders that any of the conditions under Section 3.3 to the making of the applicable Refunded Swing Line Loans or other unpaid Swing Line Loans were not satisfied at the time such Refunded Swing Line Loans or other unpaid Swing Line Loans were made; and (2) the Swing Line Lender shall not be obligated to make any Swing Line Loans (A) if it has elected not to do so after the occurrence and during the continuation of a Default or Event of Default, (B) it does not in good faith believe that all

 

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conditions under Section 3.3 to the making of such Swing Line Loan have been satisfied or waived by the Requisite Lenders or (C) at a time when a Funding Default exists unless the Swing Line Lender has entered into arrangements satisfactory to it and the Borrower to eliminate the Swing Line Lender’s risk with respect to the Defaulting Lender’s participation in such Swing Ling Loan, including by cash collateralizing such Defaulting Lender’s Pro Rata Share of the outstanding Swing Line Loans.

2.4. Issuance of Letters of Credit and Purchase of Participations Therein.

(a) Letters of Credit . During the Revolving Commitment Period, subject to the terms and conditions hereof, the Issuing Bank agrees to issue or amend Letters of Credit for the account of the Borrower or its Subsidiaries ( provided that the Borrower is an obligor on the Letter of Credit Application submitted to the Issuing Bank in connection with any such Letter of Credit to be issued for the account of any of the Borrower’s Subsidiaries), or to amend or extend Letters of Credit previously issued by it, in the aggregate amount up to but not exceeding the Letter of Credit Sublimit; provided , (i) each Letter of Credit shall be denominated in an Agreed Currency; (ii) the initial stated amount of each Letter of Credit shall not be less than $250,000 (or its equivalent in any other Agreed Currency) or such lesser amount as is acceptable to the Issuing Bank; (iii) after giving effect to such issuance, in no event shall the Total Utilization of Revolving Commitments exceed the Revolving Commitments then in effect; (iv) after giving effect to such issuance, in no event shall the Letter of Credit Usage exceed the Letter of Credit Sublimit then in effect; (v) in no event shall any standby Letter of Credit (x) have an expiration date later than the earlier of (1) the Revolving Commitment Termination Date and (2) the date that is one year from the date of issuance of such standby Letter of Credit; or (y) be issued if such standby Letter of Credit is otherwise unacceptable to the Issuing Bank in its reasonable discretion; (vi) in no event shall any commercial Letter of Credit (x) have an expiration date later than the earlier of (1) the Revolving Loan Commitment Termination Date and (2) the date which is 180 days from the date of issuance of such commercial Letter of Credit or (y) be issued if such commercial Letter of Credit is otherwise unacceptable to the Issuing Bank in its reasonable discretion and (vii) at no time from the Restatement Date through (and including) the last day of the Availability Period shall the Issuing Bank be obligated to issue any Letters of Credit to the Borrower if after issuing such Letter of Credit the Total Utilization of Revolving Commitments would exceed $100,000,000. Subject to the foregoing, the Issuing Bank may agree that a standby Letter of Credit will automatically be extended for one or more successive periods not to exceed one year each, unless the Issuing Bank elects not to extend for any such additional period by giving prior notice (“ Non-Extension Notice ”) to the beneficiary thereof not later than a day prior to such date of expiration; provided , the Issuing Bank shall not extend any such Letter of Credit if it has received written notice that an Event of Default has occurred and is continuing seven (7) Business Days before the Non-Extension Notice date; provided , further , in the event a Funding Default exists, the Issuing Bank shall not be required to issue any Letter of Credit unless the Issuing Bank has entered into arrangements satisfactory to it and the Borrower to eliminate the Issuing Bank’s risk with respect to the participation in Letters of Credit of the Defaulting Lender, including by cash collateralizing such Defaulting Lender’s Pro Rata Share of the Letter of Credit Usage; provided , further , the Issuing Bank shall not be under any obligation to issue any Letter of Credit if (x) any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the Issuing Bank from issuing such Letter of Credit, or any law applicable to the Issuing Bank or any request or directive (whether or

 

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not having the force of law) from any Governmental Authority with jurisdiction over the Issuing Bank shall prohibit, or request that the Issuing Bank refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon the Issuing Bank with respect to such Letter of Credit any restriction, reserve or capital requirement (for which the Issuing Bank is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon the Issuing Bank any unreimbursed loss, cost or expense which was not applicable on the Closing Date and which the Issuing Bank in good faith deems material to it or (y) the issuance of such Letter of Credit would violate one or more policies of the Issuing Bank applicable to letters of credit generally. Each Letter of Credit (as defined in the Existing Credit Agreement) issued pursuant to the Existing Credit Agreement and outstanding on the Restatement Date shall continue to be outstanding and shall be deemed to be a Letter of Credit hereunder, subject to the terms and conditions hereof.

(b) Notice of Issuance . (i) Each Letter of Credit shall be issued or amended, as the case may be, upon the request of the Borrower delivered to the Issuing Bank (with a copy to the Administrative Agent) in the form of a Letter of Credit Application, appropriately completed and signed by an Authorized Officer of the Borrower. Such Letter of Credit Application must be received by the Issuing Bank and the Administrative Agent not later than 11:00 a.m. (New York City time) at least two (2) Business Days (or such later date and time as the Administrative Agent and the Issuing Bank may agree in a particular instance in their sole discretion) prior to the proposed issuance date or date of amendment, as the case may be. In the case of a request for an initial issuance of a Letter of Credit, such Letter of Credit Application shall specify in form and detail satisfactory to the Issuing Bank: (A) the proposed issuance date of the requested Letter of Credit (which shall be a Business Day); (B) the amount thereof; (C) the expiry date thereof; (D) the name and address of the beneficiary thereof; (E) the documents to be presented by such beneficiary in case of any drawing thereunder; (F) the full text of any certificate to be presented by such beneficiary in case of any drawing thereunder; (G) the purpose and nature of the requested Letter of Credit; and (H) such other matters as the Issuing Bank may require. In the case of a request for an amendment of any outstanding Letter of Credit, such Letter of Credit Application shall specify in form and detail satisfactory to the Issuing Bank (1) the Letter of Credit to be amended; (2) the proposed date of amendment thereof (which shall be a Business Day); (3) the nature of the proposed amendment; and (4) such other matters as the Issuing Bank may require. Additionally, the Borrower shall furnish to the Issuing Bank and the Administrative Agent such other documents and information pertaining to such requested Letter of Credit issuance or amendment, including any Issuer Documents, as the Issuing Bank or the Administrative Agent may require.

(ii) Promptly after receipt of any Letter of Credit Application, the Issuing Bank will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has received a copy of such Letter of Credit Application from the Borrower and, if not, the Issuing Bank will provide the Administrative Agent with a copy thereof. Unless the Issuing Bank has received from any Lender, the Administrative Agent or any Credit Party, at least one (1) Business Day prior to the requested date of issuance or amendment of the applicable Letter of Credit, written notice that one or more applicable conditions contained in Section 3 shall not then be satisfied, then, subject to the terms and conditions hereof, the Issuing Bank shall, on the requested date, issue a Letter of Credit for the account of the Borrower or enter into the applicable amendment, as the case may be, in each case in accordance with the

 

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Issuing Bank’s usual and customary business practices. Immediately upon the issuance of each Letter of Credit, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Issuing Bank a risk participation in such Letter of Credit in an amount equal to such Lender’s Pro Rata Share of the amount of such Letter of Credit.

(iii) Promptly after its delivery of any Letter of Credit or any amendment to a Letter of Credit to an advising bank with respect thereto or to the beneficiary thereof, the Issuing Bank will also deliver to the Borrower and the Administrative Agent a true and complete copy of such Letter of Credit or amendment.

(c) Responsibility of Issuing Bank With Respect to Requests for Drawings and Payments . In determining whether to honor any drawing under any Letter of Credit by the beneficiary thereof, the Issuing Bank shall be responsible only to examine the documents delivered under such Letter of Credit with reasonable care so as to ascertain whether they appear on their face to be in accordance with the terms and conditions of such Letter of Credit. As between the Borrower and the Issuing Bank, the Borrower assumes all risks of the acts and omissions of, or misuse of the Letters of Credit issued by the Issuing Bank by, the respective beneficiaries of such Letters of Credit. In furtherance and not in limitation of the foregoing, the Issuing Bank shall not be responsible for: (i) the form, validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in connection with the application for and issuance of any such Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged; (ii) the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any such Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason; (iii) failure of the beneficiary of any such Letter of Credit to comply fully with any conditions required in order to draw upon such Letter of Credit; (iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher; (v) errors in interpretation of technical terms; (vi) any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any such Letter of Credit or of the proceeds thereof; (vii) the misapplication by the beneficiary of any such Letter of Credit of the proceeds of any drawing under such Letter of Credit; or (viii) any consequences arising from causes beyond the control of the Issuing Bank, including any Governmental Acts; none of the above shall affect or impair, or prevent the vesting of, any of the Issuing Bank’s rights or powers hereunder. Without limiting the foregoing and in furtherance thereof, any action taken or omitted by the Issuing Bank under or in connection with the Letters of Credit or any documents and certificates delivered thereunder, if taken or omitted in good faith, shall not give rise to any liability on the part of the Issuing Bank to the Borrower. Notwithstanding anything to the contrary contained in this Section 2.4(c), the Borrower shall retain any and all rights it may have against the Issuing Bank to the extent, but only to the extent, of any direct, as opposed to consequential or exemplary, damages suffered by the Borrower which the Borrower proves were caused solely out of the gross negligence or willful misconduct of the Issuing Bank.

(d) Reimbursement by the Borrower of Amounts Drawn or Paid Under Letters of Credit . In the event the Issuing Bank has determined to honor a drawing under a Letter of Credit, it shall immediately notify the Borrower and the Administrative Agent of the amount and currency of such drawing and the Dollar Equivalent thereof, and the Borrower shall reimburse

 

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the Issuing Bank through the Administrative Agent on or before the Business Day on which such drawing is honored (the “ Reimbursement Date ”) in the same currency in which such drawing was made (or the Dollar Equivalent of such amount, at the option of and as notified by the Issuing Bank) and in same day funds equal to the amount of such honored drawing; provided , anything contained herein to the contrary notwithstanding, (i) unless the Borrower shall have notified the Administrative Agent and the Issuing Bank prior to 10:00 a.m. (New York City time) on the date such drawing is honored that the Borrower intends to reimburse the Issuing Bank for the amount of such honored drawing with funds other than the proceeds of Revolving Loans, the Borrower shall be deemed to have given a timely Funding Notice to the Administrative Agent requesting Lenders with Revolving Commitments to make Revolving Loans that are Base Rate Loans on the Reimbursement Date in an amount in Dollars equal to the amount of such honored drawing, and (ii) subject to satisfaction or waiver of the conditions specified in Section 3.3, Lenders with Revolving Commitments shall, on the Reimbursement Date, make Revolving Loans that are Base Rate Loans in the amount of such honored drawing, the proceeds of which shall be applied directly by the Administrative Agent to reimburse the Issuing Bank for the amount of such honored drawing; and provided further , if for any reason proceeds of Revolving Loans are not received by the Issuing Bank on the Reimbursement Date in an amount equal to the amount of such honored drawing, the Borrower shall reimburse the Issuing Bank, on demand, in an amount in same day funds equal to the excess of the amount of such honored drawing over the aggregate amount of such Revolving Loans, if any, which are so received. Nothing in this Section 2.4(d) shall be deemed to relieve any Lender with a Revolving Commitment from its obligation to make Revolving Loans on the terms and conditions set forth herein, and the Borrower shall retain any and all rights it may have against any such Lender resulting from the failure of such Lender to make such Revolving Loans under this Section 2.4(d).

(e) Lenders’ Purchase of Participations in Letters of Credit . Immediately upon the issuance of each Letter of Credit, each Lender having a Revolving Commitment shall be deemed to have purchased, and hereby agrees to irrevocably purchase, from the Issuing Bank a participation in such Letter of Credit and any drawings honored thereunder in an amount equal to such Lender’s Pro Rata Share (with respect to the Revolving Commitments) of the maximum amount which is or at any time may become available to be drawn thereunder. In the event that the Borrower shall fail for any reason to reimburse the Issuing Bank as provided in Section 2.4(d), the Administrative Agent shall promptly notify each Lender with a Revolving Commitment of the unreimbursed amount of such honored drawing and of such Lender’s respective participation therein based on such Lender’s Pro Rata Share of the Revolving Commitments. Each Lender with a Revolving Commitment shall make available to the Issuing Bank through the Administrative Agent an amount equal to its respective participation, in Dollars and in same day funds, at the office of the Administrative Agent specified in such notice, not later than 12:00 noon (New York City time) on the first Business Day after the date notified by the Administrative Agent. In the event that any Lender with a Revolving Commitment fails to make available to the Issuing Bank on such Business Day the amount of such Lender’s participation in such Letter of Credit as provided in this Section 2.4(e), the Issuing Bank shall be entitled to recover such amount on demand from such Lender together with interest thereon for three (3) Business Days at the rate customarily used by the Issuing Bank for the correction of errors among banks and thereafter at the Base Rate. Nothing in this Section 2.4(e) shall be deemed to prejudice the right of any Lender with a Revolving Commitment to recover from the

 

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Issuing Bank any amounts made available by such Lender to the Issuing Bank pursuant to this Section in the event that the payment with respect to a Letter of Credit in respect of which payment was made by such Lender constituted gross negligence or willful misconduct on the part of the Issuing Bank. In the event the Issuing Bank shall have been reimbursed by other Lenders pursuant to this Section 2.4(e) for all or any portion of any drawing honored by the Issuing Bank under a Letter of Credit, the Administrative Agent shall distribute to each Lender which has paid all amounts payable by it under this Section 2.4(e) with respect to such honored drawing such Lender’s Pro Rata Share of all payments subsequently received by the Issuing Bank from the Borrower in reimbursement of such honored drawing when such payments are received. Any such distribution shall be made to a Lender at its primary address set forth below its name on Appendix B or at such other address as such Lender may request.

(f) Obligations Absolute . The obligation of the Borrower to reimburse the Issuing Bank for drawings honored under the Letters of Credit issued by it and to repay any Revolving Loans made by Lenders pursuant to Section 2.4(d) and the obligations of Lenders under Section 2.4(e) shall be unconditional and irrevocable and shall be paid strictly in accordance with the terms hereof under all circumstances including any of the following circumstances: (i) any lack of validity or enforceability of any Letter of Credit; (ii) the existence of any claim, set-off, defense or other right which the Borrower may have at any time against a beneficiary or any transferee of any Letter of Credit (or any Persons for whom any such transferee may be acting), the Issuing Bank, any Lender or any other Person or, in the case of a Lender, against the Borrower, whether in connection herewith, the transactions contemplated herein or any unrelated transaction (including any underlying transaction between the Borrower or one of its Subsidiaries and the beneficiary for which any Letter of Credit was procured); (iii) any draft or other document presented under any Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; (iv) payment by the Issuing Bank under any Letter of Credit against presentation of a draft or other document which does not substantially comply with the terms of such Letter of Credit; (v) any adverse change in the business, operations, properties, assets, condition (financial or otherwise) or prospects of the Borrower or any of its Subsidiaries; (vi) any breach hereof or any other Credit Document by any party thereto; (vii) any adverse change in the relevant exchange rates or in the availability of the Alternative Currency to the applicable the Borrower or in the relevant currency markets generally; (viii) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing; or (ix) the fact that an Event of Default or a Default shall have occurred and be continuing; provided , in each case, that payment by the Issuing Bank under the applicable Letter of Credit shall not have constituted gross negligence or willful misconduct of the Issuing Bank under the circumstances in question.

(g) Indemnification . Without duplication of any obligation of the Borrower under Section 10.2 or 10.3, in addition to amounts payable as provided therein, the Borrower hereby agrees to protect, indemnify, pay and save harmless the Issuing Bank from and against any and all claims, demands, liabilities, damages, losses, costs, charges and expenses (including reasonable fees, expenses and disbursements of counsel and allocated costs of internal counsel) which the Issuing Bank may incur or be subject to as a consequence, direct or indirect, of (i) the issuance of any Letter of Credit by the Issuing Bank, other than as a result of (1) the gross negligence or willful misconduct of the Issuing Bank or (2) the wrongful dishonor by the Issuing Bank of a proper demand for payment made under any Letter of Credit issued by it, or (ii) the failure of the Issuing Bank to honor a drawing under any such Letter of Credit as a result of any Governmental Act.

 

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2.5. Pro Rata Shares; Availability of Funds.

(a) Pro Rata Shares . All Loans shall be made, and all participations purchased, by Lenders simultaneously and proportionately to their respective Pro Rata Shares, it being understood that no Lender shall be responsible for any default by any other Lender in such other Lender’s obligation to make a Loan requested hereunder or purchase a participation required hereby nor shall any Term Loan Commitment or any Revolving Commitment of any Lender be increased or decreased as a result of a default by any other Lender in such other Lender’s obligation to make a Loan requested hereunder or purchase a participation required hereby.

(b) Availability of Funds . Unless the Administrative Agent shall have been notified by any Lender prior to the applicable Credit Date that such Lender does not intend to make available to the Administrative Agent the amount of such Lender’s Loan requested on such Credit Date, the Administrative Agent may assume that such Lender has made such amount available to the Administrative Agent on such Credit Date and the Administrative Agent may, in its sole discretion, but shall not be obligated to, make available to the Borrower a corresponding amount on such Credit Date. If such corresponding amount is not in fact made available to the Administrative Agent by such Lender, the Administrative Agent shall be entitled to recover such corresponding amount on demand from such Lender, together with interest thereon for each day from such Credit Date until the date such amount is paid to the Administrative Agent, at the customary rate set by the Administrative Agent for the correction of errors among banks for three (3) Business Days and thereafter at the Base Rate. If such Lender does not pay such corresponding amount forthwith upon the Administrative Agent’s demand therefor, the Administrative Agent shall promptly notify the Borrower, and the Borrower shall immediately pay such corresponding amount to the Administrative Agent, together with interest thereon for each day from such Credit Date until the date such amount is paid to the Administrative Agent at the rate payable hereunder for Base Rate Loans for such Class of Loans. Nothing in this Section 2.5(b) shall be deemed to relieve any Lender from its obligation to fulfill its Term Loan Commitments and Revolving Commitment hereunder or to prejudice any rights that the Borrower may have against any Lender as a result of any default by such Lender hereunder.

2.6. Use of Proceeds.

(a) The proceeds of the Tranche A Term Loans and/or Tranche B Term Loans shall be applied by the Borrower to fund the Third Wave Consideration and Related Expenditures.

(b) The proceeds of the Revolving Loans, Swing Line Loans and Letters of Credit made or issued on and after the Restatement Date, as applicable, shall be applied by the Borrower to the working capital and general corporate purposes of the Borrower and its Subsidiaries, including Permitted Acquisitions and permitted capital expenditures, and, solely on the Restatement Date and during the Availability Period, also to fund the Third Wave Consideration and Related Expenditures; provided that Total Utilization of Revolving Commitments shall not exceed $100,000,000 on the Restatement Date or at any time during the Availability Period.

 

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(c) No portion of the proceeds of any Credit Extension shall be used in any manner that causes or might cause such Credit Extension or the application of such proceeds to violate Regulation T, Regulation U or Regulation X of the Board of Governors or any other regulation thereof or to violate the Exchange Act.

2.7. Evidence of Debt; Register; Lenders’ Books and Records; Notes.

(a) Lenders’ Evidence of Debt . Each Lender shall maintain on its internal records an account or accounts evidencing the Obligations of the Borrower to such Lender, including the amounts of the Loans made by it and each repayment and prepayment in respect thereof. Any such recordation shall be conclusive and binding on the Borrower, absent manifest error; provided , that the failure to make any such recordation, or any error in such recordation, shall not affect any Lender’s Revolving Commitment or the Borrower’s Obligations in respect of any applicable Loans; and provided further , in the event of any inconsistency between the Register and any Lender’s records, the recordations in the Register shall govern in the absence of demonstrable error therein.

(b) Register . The Administrative Agent (or its agent or sub-agent appointed by it) shall maintain at its Principal Office a register for the recordation of the names and addresses of Lenders and the Revolving Commitment and Loans of each Lender from time to time (the “ Register ”). The Register shall be available for inspection by the Borrower or any Lender (with respect to any entry relating to such Lender’s Revolving Commitment and Loans) at any reasonable time and from time to time upon reasonable prior notice. The Administrative Agent shall record, or shall cause to be recorded, in the Register the Revolving Commitments and the Loans in accordance with the provisions of Section 10.6, and each repayment or prepayment in respect of the principal amount of the Loans, and any such recordation shall be conclusive and binding on the Borrower and each Lender, absent manifest error; provided , failure to make any such recordation, or any error in such recordation, shall not affect any Lender’s Revolving Commitment or the Borrower’s Obligations in respect of any Loan. The Borrower hereby designates GSCP to serve as the Borrower’s agent solely for purposes of maintaining the Register as provided in this Section 2.7, and the Borrower hereby agrees that, to the extent GSCP serves in such capacity, GSCP and its officers, directors, employees, agents, sub-agents and affiliates shall constitute “Indemnitees.”

(c) Notes . If so requested by any Lender by written notice to the Borrower (with a copy to the Administrative Agent) at least two (2) Business Days prior to (i) the Closing Date with respect to such Lender’s Revolving Loan or Swing Line Loan and (ii) the Restatement Date with respect to such Lender’s Tranche A Term Loan or and/or Tranche B Term Loan, as the case may be, or, in the case of clauses (i) and (ii) of this Section 2.7(c), at any time thereafter, the Borrower shall execute and deliver to such Lender (and/or, if applicable and if so specified in such notice, to any Person who is an assignee of such Lender pursuant to Section 10.6) on the Restatement Date (or, if such notice is delivered after the Restatement Date, promptly after the Borrower’s receipt of such notice) a Note or Notes to evidence such Lender’s Tranche A Term Loan, Tranche B Term Loan, New Term Loan, Revolving Loans or Swing Line Loans, as the case may be.

 

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2.8. Interest on Loans.

(a) Except as otherwise set forth herein, each Class of Loans shall bear interest on the unpaid principal amount thereof from the date made through repayment (whether by acceleration or otherwise) thereof as follows:

(i) in the case of Revolving Loans and Tranche A Term Loans, as applicable:

(1) if a Base Rate Loan, at the Base Rate plus the Applicable Margin; or

(2) if a Eurodollar Rate Loan, at the Adjusted Eurodollar Rate plus the Applicable Margin; and

(ii) in the case of Swing Line Loans, at the Base Rate plus the Applicable Margin; and

(iii) in the case of Tranche B Term Loans:

(1) if a Base Rate Loan, at the Base Rate plus 2.25%; or

(2) if a Eurodollar Rate Loan, at the Adjusted Eurodollar Rate plus 3.25%.

(b) The basis for determining the rate of interest with respect to any Loan (except a Swing Line Loan which can be made and maintained only as a Base Rate Loan), and the Interest Period with respect to any Eurodollar Rate Loan, shall be selected by the Borrower and notified to the Administrative Agent and Lenders pursuant to the applicable Funding Notice or Conversion/Continuation Notice, as the case may be; provided , until the date on which the Administrative Agent notifies the Borrower that the primary syndication of the Loans and Revolving Commitments has been completed, as determined by the Administrative Agent, the Term Loans shall be maintained as either (1) Eurodollar Rate Loans having an Interest Period of no longer than three months or (2) Base Rate Loans. If on any day a Loan is outstanding with respect to which a Funding Notice or Conversion/Continuation Notice has not been delivered to the Administrative Agent in accordance with the terms hereof specifying the applicable basis for determining the rate of interest, then for that day such Loan shall be a Base Rate Loan.

(c) In connection with Eurodollar Rate Loans there shall be no more than ten (10) Interest Periods outstanding at any time. In the event the Borrower fails to specify between a Base Rate Loan or a Eurodollar Rate Loan in the applicable Funding Notice or Conversion/Continuation Notice, such Loan will be made as a Base Rate Loan or (if outstanding as a Eurodollar Rate Loan) will be automatically converted into a Base Rate Loan on the last day of the then-current Interest Period for such Loan or (if outstanding as a Base Rate Loan) will remain as a Base Rate Loan. In the event the Borrower fails to specify an Interest Period for any

 

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Eurodollar Rate Loan in the applicable Funding Notice or Conversion/Continuation Notice, the Borrower shall be deemed to have selected an Interest Period of one month. As soon as practicable after 10:00 a.m. (New York City time) on each Interest Rate Determination Date, the Administrative Agent shall determine (which determination shall, absent manifest error, be final, conclusive and binding upon all parties) the interest rate that shall apply to the Eurodollar Rate Loans for which an interest rate is then being determined for the applicable Interest Period and shall promptly give notice thereof (in writing or by telephone confirmed in writing) to the Borrower and each Lender.

(d) Interest payable pursuant to Section 2.8(a) shall be computed (i) in the case of Base Rate Loans on the basis of a 365-day or 366-day year, as the case may be, and (ii) in the case of Eurodollar Rate Loans, on the basis of a 360-day year, in each case for the actual number of days elapsed in the period during which it accrues. In computing interest on any Loan, the date of the making of such Loan or the first day of an Interest Period applicable to such Loan or, with respect to a Term Loan, the last Interest Payment Date with respect to such Term Loan or, with respect to a Base Rate Loan being converted from a Eurodollar Rate Loan, the date of conversion of such Eurodollar Rate Loan to such Base Rate Loan, as the case may be, shall be included, and the date of payment of such Loan or the expiration date of an Interest Period applicable to such Loan or, with respect to a Base Rate Loan being converted to a Eurodollar Rate Loan, the date of conversion of such Base Rate Loan to such Eurodollar Rate Loan, as the case may be, shall be excluded; provided , if a Loan is repaid on the same day on which it is made, one (1) day’s interest shall be paid on that Loan.

(e) Except as otherwise set forth herein, interest on each Loan (i) shall accrue on a daily basis and shall be payable in arrears on each Interest Payment Date with respect to interest accrued on and to each such payment date; (ii) shall accrue on a daily basis and shall be payable in arrears upon any prepayment of that Loan, whether voluntary or mandatory, to the extent accrued on the amount being prepaid; and (iii) shall accrue on a daily basis and shall be payable in arrears at maturity of the Loans, including final maturity of the Loans; provided , however , with respect to any voluntary prepayment of a Base Rate Loan, accrued interest shall instead be payable on the applicable Interest Payment Date.

(f) the Borrower agrees to pay to the Issuing Bank, with respect to drawings honored under any Letter of Credit, interest on the amount paid by the Issuing Bank in respect of each such honored drawing from the date such drawing is honored to but excluding the date such amount is reimbursed by or on behalf of the Borrower at a rate equal to (i) for the period from the date such drawing is honored to but excluding the applicable Reimbursement Date, the rate of interest otherwise payable hereunder with respect to Revolving Loans that are Base Rate Loans, and (ii) thereafter, a rate which is 2% per annum in excess of the rate of interest otherwise payable hereunder with respect to Revolving Loans that are Base Rate Loans.

(g) Interest payable pursuant to Section 2.8(f) shall be computed on the basis of a 365/366-day year for the actual number of days elapsed in the period during which it accrues, and shall be payable on demand or, if no demand is made, on the date on which the related drawing under a Letter of Credit is reimbursed in full. Promptly upon receipt by the Issuing Bank of any payment of interest pursuant to Section 2.8(f), the Issuing Bank shall distribute to each Lender, out of the interest received by the Issuing Bank in respect of the period

 

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from the date such drawing is honored to but excluding the date on which the Issuing Bank is reimbursed for the amount of such drawing (including any such reimbursement out of the proceeds of any Revolving Loans), the amount that such Lender would have been entitled to receive in respect of the letter of credit fee that would have been payable in respect of such Letter of Credit for such period if no drawing had been honored under such Letter of Credit. In the event the Issuing Bank shall have been reimbursed by Lenders for all or any portion of such honored drawing, the Issuing Bank shall distribute to each Lender which has paid all amounts payable by it under Section 2.4(e) with respect to such honored drawing such Lender’s Pro Rata Share of any interest received by the Issuing Bank in respect of that portion of such honored drawing so reimbursed by such Lender for the period from the date on which the Issuing Bank was so reimbursed by such Lender to but excluding the date on which such portion of such honored drawing is reimbursed by the Borrower.

2.9. Conversion/Continuation.

(a) Subject to Section 2.18 and so long as no Default or Event of Default shall have occurred and then be continuing, the Borrower shall have the option:

(i) to convert at any time all or any part of any borrowing of Term Loans or Revolving Loans equal to $5,000,000 and integral multiples of $1,000,000 in excess of that amount from one Type of Loan to another Type of Loan; provided , Eurodollar Rate Loans may only be converted on the expiration of the Interest Period applicable to such Eurodollar Rate Loans unless the Borrower shall pay all amounts due under Section 2.18 in connection with any such conversion; or

(ii) upon the expiration of any Interest Period applicable to any borrowing of Eurodollar Rate Loans, to continue all or any portion of such Loans equal to $5,000,000 and integral multiples of $1,000,000 in excess of that amount as Eurodollar Rate Loans.

(b) the Borrower shall deliver a Conversion/Continuation Notice to the Administrative Agent no later than 10:00 a.m. (New York City time) at least one (1) Business Day in advance of the proposed conversion date (in the case of a conversion to Base Rate Loans) and at least three (3) Business Days in advance of the proposed conversion/continuation date (in the case of a conversion to, or a continuation of, Eurodollar Rate Loans). Except as otherwise provided herein, a Conversion/Continuation Notice for conversion to, or continuation of, any Eurodollar Rate Loans (or telephonic notice in lieu thereof) shall be irrevocable on and after the related Interest Rate Determination Date, and the Borrower shall be bound to effect a conversion or continuation in accordance therewith.

2.10. Default Interest. The principal amount of all Loans outstanding and, to the extent permitted by applicable law, any interest payments on the Loans or any fees or other amounts owed hereunder and not paid on or before the date due (or, in the case of interest on any Loan or any fee or any other amount due hereunder, not paid within five (5) days after the date due) shall thereafter bear interest (including post-petition interest in any proceeding under the Bankruptcy Code or other applicable bankruptcy laws) payable on demand at a rate that is 2% per annum in excess of the interest rate otherwise payable hereunder with respect to the applicable Loans (or,

 

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in the case of any such fees and other amounts, at a rate which is 2% per annum in excess of the interest rate otherwise payable hereunder for Base Rate Loans that are Revolving Loans); provided , in the case of Eurodollar Rate Loans, upon the expiration of the Interest Period in effect at the time any such increase in interest rate is effective such Eurodollar Rate Loans shall thereupon become Base Rate Loans and shall thereafter bear interest payable upon demand at a rate which is 2% per annum in excess of the interest rate otherwise payable hereunder for Base Rate Loans. Payment or acceptance of the increased rates of interest provided for in this Section 2.10 is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of the Administrative Agent or any Lender.

2.11. Fees.

(a) The Borrower agrees to pay to Lenders holding Tranche A Term Loan Commitments commitment fees equal to (1) the average of the daily difference during the applicable quarterly period or portion thereof, as applicable, between (a) the Tranche A Term Loan Commitments and (b) the aggregate principal amount of all outstanding Tranche A Term Loans, times (2) a per annum rate equal to one-half of the Applicable Margin applicable to Tranche A Term Loans then outstanding. All fees referred to in this Section 2.11(a) shall be paid to the Administrative Agent at its Principal Office and, upon receipt, the Administrative Agent shall promptly distribute to each applicable Lender its Pro Rata Share thereof.

(b) The Borrower agrees to pay to Lenders holding Tranche B Term Loan Commitments commitment fees equal to (1) the average of the daily difference during the applicable quarterly period or portion thereof, as applicable, between (a) the Tranche B Term Loan Commitments and (b) the aggregate principal amount of all outstanding Tranche B Term Loans, times (2) 1.625% per annum. All fees referred to in this Section 2.11(b) shall be paid to the Administrative Agent at its Principal Office and, upon receipt, the Administrative Agent shall promptly distribute to each applicable Lender its Pro Rata Share thereof.

(c) The Borrower agrees to pay to Lenders having Revolving Exposure:

(i) commitment fees equal to (1) the average of the daily difference during the applicable quarterly period or portion thereof, as applicable, between (a) the Revolving Commitments and (b) the aggregate principal amount of (x) all outstanding Revolving Loans and Swing Line Loans plus (y) the Letter of Credit Usage, times (2) the Applicable Revolving Commitment Fee Percentage; and

(ii) letter of credit fees equal to (1) the Applicable Margin for Revolving Loans that are Eurodollar Rate Loans, times (2) the average aggregate daily maximum amount available to be drawn under all outstanding Letters of Credit (regardless of whether any conditions for drawing could then be met and determined as of the close of business on any date of determination) during the applicable quarterly period or portion thereof, as applicable.

 

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All fees referred to in this Section 2.11(c) shall be paid to the Administrative Agent at its Principal Office and, upon receipt, the Administrative Agent shall promptly distribute to each applicable Lender its Pro Rata Share thereof.

(d) The Borrower agrees to pay directly to the Issuing Bank, for its own account, the following fees:

(i) a fronting fee equal to 0.125%, per annum, times the aggregate daily maximum amount available to be drawn under all Letters of Credit during the applicable quarterly period or portion thereof, as applicable (determined as of the close of business on any date of determination); and

(ii) such documentary and processing charges for any issuance, amendment, transfer or payment of a Letter of Credit as are in accordance with the Issuing Bank’s standard schedule for such charges as in effect at the time of such issuance, amendment, transfer or payment, as the case may be.

(e) (i) All fees referred to in Sections 2.11(a) and 2.11(b) shall be calculated on the basis of a 360-day year and the actual number of days elapsed and shall be payable quarterly in arrears on March 31, June 30, September 30 and December 31, commencing on the first such date to occur after the Restatement Date, and ending on the Term Loan Commitment Termination Date. (ii) All fees referred to in Sections 2.11(c) and 2.11(d)(i) shall be calculated on the basis of a 360-day year and the actual number of days elapsed and shall be payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year during the Revolving Commitment Period, commencing on the first such date to occur after the Restatement Date, and on the Revolving Commitment Termination Date.

(f) In addition to any of the foregoing fees, the Borrower agrees to pay to the Agents such other fees in the amounts and at the times separately agreed upon.

2.12. Scheduled Payments/Commitment Reductions. (a) The principal amounts of the Tranche A Term Loans shall be repaid in consecutive quarterly installments (each, a “ Tranche A Installment ”) in the aggregate amounts and, on the corresponding “Amortization Dates”, set forth in the table below, commencing September 30, 2008:

 

Amortization Date

   Tranche A Installments

September 30, 2008

   $ 10,000,000.00

December 31, 2008

   $ 10,000,000.00

March 31, 2009

   $ 10,000,000.00

June 30, 2009

   $ 10,000,000.00

September 30, 2009

   $ 10,000,000.00

December 31, 2009

   $ 10,000,000.00

March 31, 2010

   $ 10,000,000.00

June 30, 2010

   $ 10,000,000.00

 

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Amortization Date

   Tranche A Installments

September 30, 2010

   $ 15,000,000.00

December 31, 2010

   $ 15,000,000.00

March 31, 2011

   $ 15,000,000.00

June 30, 2011

   $ 15,000,000.00

September 30, 2011

   $ 15,000,000.00

December 31, 2011

   $ 15,000,000.00

March 31, 2012

   $ 15,000,000.00

June 30, 2012

   $ 15,000,000.00

September 30, 2012

   $200,000,000.00 or such lesser aggregate principal amount of Tranche A Term Loans then outstanding

(b) The principal amounts of the Tranche B Term Loans shall be repaid in consecutive quarterly installments (each, a “ Tranche B Installment ”) in the aggregate amounts and, on the corresponding “Amortization Dates”, set forth in the table below, commencing September 30, 2008:

 

Amortization Date

   Tranche B Installments

September 30, 2008

   $ 500,000.00

December 31, 2008

   $ 500,000.00

March 31, 2009

   $ 500,000.00

June 30, 2009

   $ 500,000.00

September 30, 2009

   $ 500,000.00

December 31, 2009

   $ 500,000.00

March 31, 2010

   $ 500,000.00

June 30, 2010

   $ 500,000.00

September 30, 2010

   $ 500,000.00

December 31, 2010

   $ 500,000.00

March 31, 2011

   $ 500,000.00

June 30, 2011

   $ 500,000.00

September 30, 2011

   $ 500,000.00

December 31, 2011

   $ 500,000.00

March 31, 2012

   $ 500,000.00

June 30, 2012

   $ 500,000.00

September 30, 2012

   $ 500,000.00

December 31, 2012

   $ 500,000.00

 

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Amortization Date

  

Tranche B Installments

March 31, 2013

   $191,000,000.00 or such lesser aggregate principal amount of Tranche B Term Loans then outstanding

; provided , with respect to clause (b) of this Section 2.12, in the event any New Term Loans are made, such New Term Loans shall be repaid on each date that Tranche B Installments are made on or after the applicable Increased Amount Date, in an amount equal to  1 / 4 of 1% of the original principal amount of such New Term Loans.

Notwithstanding the foregoing, (x) such Installments shall be reduced on a pro rata basis in connection with any voluntary or mandatory prepayments of the Term Loans in accordance with Sections 2.13, 2.14 and 2.15, as applicable; and (y) Term Loans, together with all other amounts owed hereunder with respect thereto, shall, in any event, be paid in full no later than the respective Term Loan Maturity Date therefor.

2.13. Voluntary Prepayments/Commitment Reductions.

(a) Voluntary Prepayments .

(i) At any time and from time to time:

(1) with respect to Base Rate Loans, the Borrower may prepay any such Loans on any Business Day in whole or in part in an aggregate minimum amount of $5,000,000 and integral multiples of $1,000,000 in excess of that amount;

(2) with respect to Eurodollar Rate Loans, the Borrower may prepay any such Loans on any Business Day in whole or in part in an aggregate minimum amount of $5,000,000 and integral multiples of $1,000,000 in excess of that amount; and

(3) with respect to Swing Line Loans, the Borrower may prepay any such Loans on any Business Day in whole or in part in an aggregate minimum amount of $500,000, and in integral multiples of $100,000 in excess of that amount.

(ii) All such prepayments shall be made:

(1) upon not less than one (1) Business Day’s prior written or telephonic notice in the case of Base Rate Loans;

(2) upon not less than three (3) Business Days’ prior written or telephonic notice in the case of Eurodollar Rate Loans; and

 

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(3) upon written or telephonic notice on the date of prepayment, in the case of Swing Line Loans;

in each case given to the Administrative Agent or the Swing Line Lender, as the case may be, by 12:00 noon (New York City time) on the date required and, if given by telephone, promptly confirmed in writing to the Administrative Agent (and the Administrative Agent will promptly transmit such telephonic or original notice for Term Loans or Revolving Loans, as the case may be, by telefacsimile or telephone to each Lender) or the Swing Line Lender, as the case may be. Upon the giving of any such notice, the principal amount of the Loans specified in such notice shall become due and payable on the prepayment date specified therein. Any such voluntary prepayment shall be applied as specified in Section 2.15(a).

(b) Voluntary Commitment Reductions .

(i) The Borrower may, upon not less than three (3) Business Days’ prior written or telephonic notice confirmed in writing to the Administrative Agent (which original written or telephonic notice the Administrative Agent will promptly transmit by telefacsimile or telephone to each applicable Lender), at any time and from time to time terminate in whole or permanently reduce in part, without premium or penalty, the Revolving Commitments in an amount up to the amount by which the Revolving Commitments exceed the Total Utilization of Revolving Commitments at the time of such proposed termination or reduction; provided , any such partial reduction of the Revolving Commitments shall be in an aggregate minimum amount of $5,000,000 and integral multiples of $1,000,000 in excess of that amount.

(ii) The Borrower’s notice to the Administrative Agent shall designate the date (which shall be a Business Day) of such termination or reduction and the amount of any partial reduction, and such termination or reduction of the Revolving Commitments shall be effective on the date specified in the Borrower’s notice and shall reduce the Revolving Commitment of each Lender proportionately to its Pro Rata Share thereof.

2.14. Mandatory Prepayments/Commitment Reductions.

(a) Asset Sales . No later than the first Business Day following the date of receipt by the Borrower or any of its Subsidiaries of any Net Asset Sale Proceeds, the Borrower shall prepay the Loans as set forth in Section 2.15(b) in an aggregate amount equal to such Net Asset Sale Proceeds; provided , (i) so long as no Default or Event of Default shall have occurred and be continuing, and (ii) to the extent that Net Asset Sale Proceeds do not exceed $25,000,000 individually or $50,000,000 in the aggregate during any Fiscal Year, the Borrower shall have the option, directly or through one or more of its Subsidiaries, to invest or commit to invest such Net Asset Sale Proceeds within one year of receipt thereof in long-term productive assets of the general type used in the business of the Borrower and its Subsidiaries; provided further , pending any such investment all such Net Asset Sale Proceeds shall be applied to prepay Revolving Loans to the extent outstanding (without a reduction in Revolving Commitments) on or within five (5) Business Days after the immediately succeeding Interest Payment Date.

 

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(b) Insurance/Condemnation Proceeds . No later than the first Business Day following the date of receipt by the Borrower or any of its Subsidiaries, or the Administrative Agent as loss payee, of any Net Insurance/Condemnation Proceeds, the Borrower shall prepay the Loans as set forth in Section 2.15(b) in an aggregate amount equal to such Net Insurance/Condemnation Proceeds in excess of $1,000,000 for any single event giving rise thereto or series of related events giving rise thereto; provided , so long as no Default or Event of Default shall have occurred and be continuing, the Borrower shall have the option, directly or through one or more of its Subsidiaries, to invest or commit to invest such Net Insurance/Condemnation Proceeds within one year of receipt thereof in long term productive assets of the general type used in the business of the Borrower and its Subsidiaries, which investment may include the repair, restoration or replacement of the applicable assets thereof; provided further , pending any such investment all such Net Insurance/Condemnation Proceeds in excess of $1,000,000 for any single event giving rise thereto or series of related events giving rise thereto, as the case may be, shall be applied to prepay Revolving Loans to the extent outstanding (without a reduction in Revolving Commitments) on or within five (5) Business Days after the immediately succeeding Interest Payment Date.

(c) Issuance of Equity Securities . On the date of receipt by the Borrower of any Cash proceeds from a capital contribution to, or the issuance of any Equity Interests of, the Borrower or any of its Subsidiaries (other than pursuant to any employee, director or consultant stock or stock option compensation plan or the Spread Overlay Agreements), the Borrower shall prepay the Loans as set forth in Section 2.15(b) in an aggregate amount equal to 50% of such proceeds, net of underwriting discounts and commissions and other reasonable costs and expenses associated therewith, including reasonable legal fees and expenses; provided , during any period in which the Leverage Ratio (determined for any such period by reference to the Compliance Certificate delivered pursuant to Section 5.1(d) calculating the Leverage Ratio as of the last day of the most recently ended Fiscal Quarter) shall be 3.00:1.00 or less, prepayments and/or reductions otherwise required pursuant to this clause (c) shall be required to be made in an amount equal to 25% of such net proceeds; provided , further , during any period in which the Leverage Ratio (determined for any such period by reference to the Compliance Certificate delivered pursuant to Section 5.1(d) calculating the Leverage Ratio as of the last day of the most recently ended Fiscal Quarter) shall be 2.00:1.00 or less, prepayments and/or reductions otherwise required pursuant to this clause (c) hereof shall not be required to be made.

(d) Issuance of Debt . On the date of receipt by the Borrower or any of its Subsidiaries of any Cash proceeds from the incurrence of any Indebtedness of the Borrower or any of its Subsidiaries, the Borrower shall prepay the Loans as set forth in Section 2.15(b) in an aggregate amount equal to 100% of such proceeds, net of underwriting discounts and c


 
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