Exhibit 99.14
Execution Version
JUNIOR LIENS INTERCREDITOR AGREEMENT
This
JUNIOR LIENS INTERCREDITOR AGREEMENT (this “
Agreement ”), dated as of October 1, 2007 and
effective as of the Effective Date (as defined below), is made by
and between Harbinger Capital Partners Master Fund I, LTD., a
Cayman Islands corporation, as agent under and pursuant to the
Senior Secured Credit Agreement (as herein defined) (in such
capacity together with its successors and assigns the “
Senior Lien Agent ”), on the one hand, and THE BANK OF
NEW YORK, a national banking association, as agent under and
pursuant to the Junior Lien Credit Agreement (as hereinafter
defined) (in such capacity, together with its successors and
assigns, the “ Junior Lien Agent ”), on the
other hand, and is acknowledged by Salton, Inc., a Delaware
corporation (“ Parent ”), each of Parent’s
Subsidiaries identified on the signature pages of the Senior
Secured Credit Agreement or otherwise made a party thereto, as
Borrowers (collectively with Parent, the “ Borrowers
”) and each of Parent’s Subsidiaries identified on the
signature pages of the Senior Secured Credit Agreement, or
otherwise made a party thereto, as Guarantors (collectively, the
“ Guarantors ”):
WHEREAS , the Borrowers, Guarantors, the Senior Lien Agent,
and the lenders party thereto (such lenders, and as further defined
in Section 1 , below, the “ Senior Lien
Lenders ”) have entered into a Reimbursement and Senior
Secured Credit Agreement dated as of October 1, 2007 (such
agreement as in effect on such date, and as further defined in
Section 1 , below, the “ Senior Secured Credit
Agreement ”) pursuant to which such lenders have agreed,
upon the terms and conditions stated therein, to provide a letter
of credit to secure certain obligations of the Borrowers and to
make certain loans to the Borrowers. The repayment of the
Obligations (as that term is defined in the Senior Secured Credit
Agreement) is secured by security interests in and liens on
substantially all of the assets of the Borrowers and the Guarantors
pursuant to certain collateral documents in favor of the Senior
Lien Agent, (such documents, and as further defined in
Section 1 , below, the “ Senior Lien Loan
Documents ”).
WHEREAS , Parent, the Borrowers, the Guarantors, the Junior
Lien Agent, and the lenders party thereto (the “ Junior
Lien Lenders ”) have entered into a Credit Agreement
dated as of August 26, 2005 (such agreement as in effect on the
date hereof, the “ Junior Lien Credit Agreement
”) pursuant to which such lenders have agreed, upon the terms
and conditions stated therein, to make loans and advances to the
Borrowers up to the principal amount of $110,000,000 at any time
outstanding. The repayment of the Obligations (as that term is
defined in the Junior Lien Credit Agreement) is secured by security
interests in and liens on substantially all of the assets of the
Borrowers and the Guarantors pursuant to certain collateral
documents in favor of the Junior Lien Agent, which documents,
together with the other collateral and loan documents executed and
delivered in connection with the Junior Lien Credit Agreement, each
as in effect on the date hereof, are referred to herein as the
“ Junior Lien Loan Documents ”; and
WHEREAS , the Senior Lien Agent and the Junior Lien Agent
hereby acknowledge that, pursuant to that certain Amended and
Restated Intercreditor Agreement of even date herewith (the “
Intercreditor Agreement ”) among the Senior Lien
Agent, the Junior Lien Agent, Silver Point Financial, LLC, a
Delaware limited liability company, as the co-agent, syndication
agent, and documentation agent under and pursuant to the First Lien
Credit Agreement (as hereinafter defined) (in such capacity,
together with its successors and assigns, the “ First Lien
Co-Agent ”), and Wells Fargo Foothill, Inc., a California
corporation, as administrative agent and collateral agent under and
pursuant to the First Lien Credit Agreement (in such capacity,
together with its successors and assigns the “ First Lien
Agent ”), that any security interest in or lien on any
assets of the Borrowers and the Guarantors held by the Senior Lien
Agent, any Senior Lien Lender, the Junior Lien Agent and any Junior
Lien Lender is expressly subject to the rights the First Lien Agent
and the First Lien Co-Agent, for and on behalf of themselves and
the First Lien Lenders (as defined in the Intercreditor
Agreement);
WHEREAS , the Senior Lien Agent, for and on behalf of itself
and the Senior Lien Lenders, and the Junior Lien Agent, for and on
behalf of itself and the Junior Lien Lenders, wish to enter into
this Agreement to establish their respective rights and priorities
in the Collateral.
NOW, THEREFORE, for valuable consideration, the receipt and
adequacy of which is hereby acknowledged, the Senior Lien Agent and
the Junior Lien Agent hereby agree, effective as of and only from
and after the Effective Date, as follows:
1.
Definitions; Rules of Construction .
a. Other Definitions .
As used in this Agreement, the following terms shall have the
following meanings:
“
Adequate Protection Lien ” has the meaning set forth
in Section 5.d .
“
Agreement ” means this Agreement as it may be amended,
modified or supplemented from time to time.
“
Application of Proceeds Blockage Event ” has the
meaning set forth in Section 4.a .
“
Application of Proceeds Blockage Period ” has the
meaning set forth in Section 4.a .
“
Bankruptcy Code ” shall mean title 11 of the United
States Code, as in effect from time to time.
“
Capital Stock ” means (a) in the case of a
corporation, corporate stock, (b) in the case of an
association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of
corporate stock, (c) in the case of a partnership or limited
liability company, partnership or membership interests (whether
general or limited) and (d) any other interest or
participation that confers on a Person the right to receive a share
of the profits and losses of, or distributions of property of, the
issuing Person.
“
Cash Collateral ” means any Collateral consisting of
money or cash equivalents, any security entitlement (as defined in
the UCC) and any financial assets (as defined in the UCC).
“
Collateral ” means all assets and properties upon
which either First Lien Agent or First Lien Co-Agent, on the one
hand, or the Senior Lien Agent of the Junior Lien Agent, on the
other hand, now has or hereafter acquires a Lien, whether now owned
or hereafter acquired by the Borrowers, any Guarantor or any other
Person, together with all rents, issues, profits, products, and
Proceeds thereof..
“
Control Collateral ” means any Collateral consisting
of a certificated security (as defined in the UCC), investment
property (as defined in the UCC), any other equity interests,
partnership interests, or membership interests in any entity,
company, or partnership, a deposit account (as defined in the UCC)
and any other Collateral as to which a Lien may be perfected
through physical possession or control by the secured party or any
agent therefor.
“
DIP Financing ” has the meaning set forth in
Section 5.d .
“
Discharge of Senior Lien Indebtedness ” means payment
in full in cash (or in the case of letters of credit, the cash
collateralization as required by the Senior Lien Loan Documents) of
the Senior
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Lien
Loan Documents) of the Senior Lien Indebtedness (other than Senior
Lien Indebtedness consisting solely of contingent indemnification
obligations under the Senior Lien Loan Documents for which no claim
has been asserted in writing) after or concurrently with
termination of all commitments to extend credit under any Senior
Secured Credit Agreement.
“
Discharge of Junior Lien Indebtedness ” means payment
in full in cash of the Junior Lien Indebtedness (other than Junior
Lien Indebtedness consisting solely of contingent indemnification
obligations under the Junior Lien Loan Documents for which no claim
has been asserted in writing) after or concurrently with
termination of all commitments to extend credit under any Junior
Lien Credit Agreement.
“
Effective Date ” means the date on which the initial
purchase of all or any portion of the Stretch Loan (as defined in
the Loan Purchase Agreement dated as of the date hereof among the
Senior Lien Lenders and certain of the lenders party to the First
Lien Credit Agreement) is consummated pursuant to the
“Stretch Loan Put Notice” as defined in such
agreement.
“
Equity Interests ” means Capital Stock and all
warrants, options, or other rights to acquire Capital Stock (but
excluding any debt security that is convertible into, or
exchangeable for, Capital Stock).
“
Event of Default ” means “Event of
Default” as defined in the Senior Secured Credit Agreement
and/or “Event of Default” as defined in the Junior Lien
Credit Agreement.
“
Exercise Any Secured Creditor Remedies ” or “
Exercise of Secured Creditor Remedies ” means
(a) the taking of any action to enforce or realize upon any
Lien, including the institution of any foreclosure proceedings or
the noticing of any public or private sale or other disposition
pursuant to Article 9 of the UCC, (b) the exercise of any
right or remedy provided to a secured creditor or otherwise on
account of a Lien under the Senior Lien Loan Documents, the Junior
Lien Loan Documents, applicable law, in an Insolvency Proceeding or
otherwise, including the election to retain Collateral in
satisfaction of a Lien, (c) the taking of any action or the
exercise of any right or remedy in respect of the collection on,
set off against, marshaling of, or foreclosure on the Collateral or
the Proceeds of Collateral, (d) the sale, lease, license, or
other disposition of all or any portion of the Collateral, by
private or public sale, other disposition or any other means
permissible under applicable law, (e) the solicitation of bids
from third parties to conduct the liquidation of all or a material
portion of Collateral to the extent undertaken and being diligently
pursued in good faith to consummate the sale of such Collateral
within a commercially reasonable time, (f) the engagement or
retention of sales brokers, marketing agents, investment bankers,
accountants, appraisers, auctioneers or other third parties for the
purposes of valuing, marketing, promoting and selling the
Collateral to the extent undertaken and being diligently pursued in
good faith to consummate the sale of such Collateral within a
commercially reasonable time, and (g) the exercise of any
other enforcement right relating to the Collateral (including the
exercise of any voting rights relating to any Capital Stock and
including any right of recoupment or set-off) whether under the
Senior Lien Loan Documents, the Junior Lien Loan Documents,
applicable law, in an Insolvency Proceeding or otherwise.
“
First Lien Credit Agreement ” means that certain
Amended and Restated Credit Agreement, originally dated as of
May 9, 2003, as amended and restated and further amended,
currently by and among the Parent, each of the Parent’s
subsidiaries identified on the signature pages thereof as
Borrowers, the First Lien Agent, the First Lien Co-Agent, and the
lenders thereto.
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“
First Lien Loans ” means, collectively, all loans and
advances provided for in the First Lien Credit Agreement.
“
Forced Obligor Sale ” has the meaning set forth in
Section 2.c(2) .
“
Insolvency Proceeding ” means any proceeding commenced
by or against any Person under any provision of the Bankruptcy Code
or under any other state, federal or foreign bankruptcy or
insolvency law, assignments for the benefit of creditors, formal or
informal moratoria, compositions, extensions generally with
creditors, or proceedings seeking reorganization, arrangement, or
other similar relief.
“
Junior Lien Agent ” means the Junior Lien Agent,
together with its successors, assigns and transferees under any
Junior Lien Credit Agreement.
“
Junior Lien Credit Agreement ” means the Junior Lien
Credit Agreement as amended, restated, modified, renewed, refunded,
replaced, or refinanced in whole or in part from time to time, and
any other agreement extending the maturity of, consolidating,
otherwise restructuring (including adding Subsidiaries or
affiliates of any Obligor or any other Persons as parties thereto),
renewing, replacing or refinancing all or any portion of the
Obligations or Commitments as those terms are defined in the Junior
Lien Credit Agreement or all or any portion of the amounts owed
under any other agreement that itself is a Junior Lien Credit
Agreement hereunder and whether by the same or any other agent,
lender, or group of lenders and whether or not increasing the
amount of Junior Lien Indebtedness that may be incurred thereunder,
in each case, to the extent that any such amendment, restatement,
modification, renewal, refunding, replacement, or refinancing is
permitted under this Agreement.
“
Junior Lien Indebtedness ” means all obligations and
all other amounts owing, due or secured under the terms of the
Junior Lien Credit Agreement or any other Junior Lien Loan
Document, including any and all amounts payable to Junior Lien
Agent or to any Junior Lien Lender, all principal, premium,
interest, fees, attorneys fees, costs, charges, expenses,
reimbursement obligations, any obligation to post cash collateral
in respect of letters of credit or indemnities in respect thereof,
indemnities, guarantees, any prepayment or early termination
premium, and all other amounts payable under any Junior Lien Loan
Document or in respect thereof (including, in each case, all
amounts accruing on or after the commencement of any Insolvency
Proceeding relating to any Obligor, or that would have accrued or
become due under the terms of the Junior Lien Loan Documents but
for the effect of the Insolvency Proceeding or other applicable
law, and irrespective of whether a claim for all or any portion of
such amounts is allowable or allowed in such Insolvency
Proceeding).
“
Junior Lien Lenders ” means the Junior Lien Lenders,
together with the lenders under any Junior Lien Credit Agreement or
Junior Lien Loan Documents.
“
Junior Lien Loan Documents ” means the Junior Lien
Credit Agreement and the other Loan Documents (as such term is
defined in the Junior Lien Credit Agreement), or any other
security, collateral, ancillary or other document entered into in
connection with or related to any agreement that is a Junior Lien
Credit Agreement, as such documents may be amended, restated,
modified, renewed, refunded, replaced, or refinanced in whole or in
part from time to time in accordance with this Agreement.
“
Lender ” means a Senior Lien Lender and/or a Junior
Lien Lender, as the context may require.
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“
Lien ” means any interest in an asset securing an
obligation owed to, or a claim by, any Person other than the owner
of the asset, irrespective of whether (a) such interest is
based on the common law, statute, or contract, (b) such
interest is recorded or perfected, and (c) such interest is
contingent upon the occurrence of some future event or events or
the existence of some future circumstance or circumstances. Without
limiting the generality of the foregoing, the term
“Lien” includes the lien or security interest arising
from a mortgage, deed of trust, encumbrance, pledge, hypothecation,
assignment, deposit arrangement, security agreement, conditional
sale or trust receipt, or from a lease, consignment, or bailment
for security purposes and also includes reservations, exceptions,
encroachments, easements, rights-of-way, covenants, conditions,
restrictions, leases, and other title exceptions and encumbrances
affecting real property.
“
Notice of Intent to Exercise ” means a written notice
from or on behalf of Junior Lien Agent to Senior Lien Agent
(a) stating that Junior Lien Agent intends to Exercise Secured
Creditor Remedies, (b) stating that it is a “Notice of
Intent to Exercise Secured Creditor Remedies” and (c)
describing the Event(s) of Default under the Junior Lien Credit
Agreement that is(are) the basis for delivering such notice.
“
Obligor ” means the Borrowers, each Guarantor and any
other Person that now or hereafter is, or whose assets now or
hereafter are, liable for all or any portion of the Senior Lien
Indebtedness or the Junior Lien Indebtedness, as applicable.
“
Payment Collateral ” means all accounts, instruments,
chattel paper, letters of credit, deposit accounts, securities
accounts, and payment intangibles, together with all supporting
obligations (as those terms are defined in the UCC), in each case
composing a portion of the Collateral.
“
Permitted Application of Proceeds of Collateral ” has
the meaning set forth in Section 3 .
“
Permitted Replacement Lien ” has the meaning set forth
in Section 5.i .
“
Person ” means any natural person, corporation,
limited liability company, limited partnership, general
partnership, limited liability partnership, joint venture, trust,
land trust, business trust, or other organization, irrespective of
whether such organization is a legal entity, and shall include a
government and any agency or political subdivision thereof.
“
Proceeds ” means (a) all “proceeds”
as defined in Article 9 of the UCC with respect to the
Collateral, and (b) whatever is recoverable or recovered when
Collateral is sold, exchanged, collected, or disposed of, whether
voluntarily or involuntarily.
“
Purchase Notice ” has the meaning set forth in
Section 10.a .
“
Recovery ” has the meaning set forth in
Section 5.c .
“
Reorganization Debt Securities ” has the meaning set
forth in Section 5.a .
“
Senior Lien Agent ” means the Senior Lien Agent,
together with its successors, assigns and transferees under any
Senior Secured Credit Agreement.
“
Senior Lien Amount ” means $125,000,000.
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“
Senior Lien Default ” means any Event of Default under
the Senior Secured Credit Agreement.
“
Senior Lien Indebtedness ” means all obligations and
all other amounts owing, due or secured under the terms of the
Senior Secured Credit Agreement or any other Senior Lien Loan
Document, including any and all amounts payable to any Senior Lien
Lender, all principal, premium, interest, fees, attorneys fees,
costs, charges, expenses, reimbursement obligations, any obligation
to post cash collateral in respect of letters of credit or
indemnities in respect thereof, indemnities, guarantees, the
Make-Whole Amount and all other amounts payable under any Senior
Lien Loan Document or in respect thereof (including, in each case,
all amounts accruing on or after the commencement of any Insolvency
Proceeding relating to any Obligor, or that would have accrued or
become due under the terms of the Senior Lien Loan Documents but
for the effect of the Insolvency Proceeding or other applicable
law, and irrespective of whether a claim for all or any portion of
such amounts is allowable or allowed in such Insolvency
Proceeding).
“
Senior Lien Lender Sale ” has the meaning set forth in
Section 2.c(1) .
“
Senior Lien Lenders ” means the Senior Lien Lenders,
together with the lenders under any Senior Secured Credit Agreement
or Senior Lien Loan Documents.
“
Senior Lien Loan Documents ” means the Senior Secured
Credit Agreement and the other Loan Documents (as such term is
defined in the Senior Secured Credit Agreement), or any other
security, collateral, ancillary or other document entered into in
connection with or related to any agreement that is a Senior
Secured Credit Agreement, as such documents may be amended,
restated, modified, renewed, refunded, replaced, or refinanced in
whole or in part from time to time, in accordance with this
Agreement.
“
Senior Lien Modification ” has the meaning set forth
in Section 6.a .
“
Senior Secured Credit Agreement ” means the Senior
Secured Credit Agreement as amended, restated, modified, renewed,
refunded, replaced, or refinanced in whole or in part from time to
time, and any other agreement extending the maturity of,
consolidating, otherwise restructuring (including adding
Subsidiaries or affiliates of any Obligor or any other Persons as
parties thereto), renewing, replacing or refinancing all or any
portion of the Obligations or Commitments as those terms are
defined in the Senior Secured Credit Agreement or all or any
portion of the amounts owed under any other agreement that itself
is a Senior Secured Credit Agreement hereunder and whether by the
same or any other agent, lender, or group of lenders and whether or
not increasing the amount of Senior Lien Indebtedness that may be
incurred thereunder, in each case, to the extent that any such
amendment, restatement, modification, renewal, refunding,
replacement, or refinancing is permitted under this
Agreement.
“
Standstill Notice ” means a written notice from Senior
Lien Agent to Junior Lien Agent stating that a Senior Lien Default
has occurred and is continuing and stating that it is a
“Standstill Notice”.
“
Standstill Period ” means the period beginning on the
date that a Standstill Notice is received by Junior Lien Agent
through and including the first to occur of (a) the date upon
which the Discharge of Senior Lien Indebtedness shall have
occurred, (b) the date upon which Senior Lien Agent shall have
waived or acknowledged in writing the termination of the Senior
Lien Default that gave rise to
6
such
Standstill Period, or (c) the date that is 270 days after
the receipt of such Standstill Notice by Junior Lien Agent.
“
Trigger Event ” has the meaning set forth in
Section 10.a .
“
Trigger Notice ” has the meaning set forth in
Section 10.a .
“
UCC ” means the Uniform Commercial Code as enacted and
in effect from time to time in the State of New York; provided,
however, that in the event that, by reason of mandatory provisions
of law, any or all of the attachment, perfection, priority, or
remedies with respect to Agent’s Lien on any Collateral is
governed by the Uniform Commercial Code as enacted and in effect in
a jurisdiction other than the State of New York, the term
“UCC” shall mean the Uniform Commercial Code as enacted
and in effect in such other jurisdiction solely for purposes of the
provisions thereof relating to such attachment, perfection,
priority, or remedies.
b. Terms Defined in the
Senior Secured Credit Agreement . Unless otherwise defined in
this Agreement, any and all initially capitalized terms set forth
in this Agreement shall have the meaning ascribed thereto in the
Senior Secured Credit Agreement.
c. Rules of Construction
. Unless the context of this Agreement clearly requires otherwise,
references to the plural include the singular, references to the
singular include the plural, the term “including” is
not limiting, and the term “or” has, except where
otherwise indicated, the inclusive meaning represented by the
phrase “and/or.” The words “hereof,”
“herein,” “hereby,”
“hereunder,” and similar terms in this Agreement refer
to this Agreement as a whole and not to any particular provision of
this Agreement. Article, section, subsection, clause, schedule, and
exhibit references herein are to this Agreement unless otherwise
specified. Any reference herein to any Person shall be construed to
include such Person’s successors and assigns.
2.
Subordination and Standstill .
a. Lien Subordination .
Notwithstanding (i) the date, time, method, manner or order of
grant, attachment, or perfection of any Liens granted to Senior
Lien Agent (or any Senior Lien Lender) or Junior Lien Agent (or any
Junior Lien Lender) in respect of all or any portion of the
Collateral, (ii) the order or time of filing or recordation of
any document or instrument for perfecting the Liens in favor of
Senior Lien Agent (or any Senior Lien Lender) or Junior Lien Agent
(or any Junior Lien Lender) in any Collateral, (iii) any
provision of the UCC, any other applicable law, any of the Senior
Lien Loan Documents or the Junior Lien Loan Documents,
(iv) irrespective of whether the Liens securing the Senior
Lien Loan Documents are valid, perfected, enforceable, void,
avoidable, subordinated, disputed or allowed, or (v) any other
circumstance whatsoever, the Senior Lien Agent , on behalf of
itself and the Senior Lien Lenders, and Junior Lien Agent, on
behalf of itself and the Junior Lien Lenders, hereby agree
that:
(1) any
Lien in respect of all or any portion of the Collateral now or
hereafter held by or on behalf of Junior Lien Agent or any Junior
Lien Lender that secures all or any portion of the Junior Lien
Indebtedness, shall in all respects be junior and subordinate to
all Liens granted to Senior Lien Agent and the Senior Lien Lenders
in the Collateral to secure all or any portion of the Senior Lien
Indebtedness, and
(2) any
Lien in respect of all or any portion of the Collateral now or
hereafter held by or on behalf of Senior Lien Agent or any Senior
Lien Lender that secures all or any portion of the Senior
7
Lien
Indebtedness shall in all respects be senior and prior to all Liens
granted to Junior Lien Agent and the Junior Lien Lenders in the
Collateral to secure all or any portion of the Junior Lien
Indebtedness.
b. Remedies Standstill.
At any time that a Standstill Period is in effect, Junior Lien
Agent and Junior Lien Lenders shall not, without the prior written
consent of the Senior Lien Agent (acting upon the direction of the
requisite Senior Lien Lenders),
(1) commence,
prosecute, or participate in any lawsuit, action, or proceeding,
whether private, judicial, equitable, administrative or otherwise
(including any Insolvency Proceeding against any Obligor or any
Obligor’s assets) to the extent that any such action could
reasonably be expected, in any material respect, to restrain,
hinder, limit, delay for any material period or otherwise interfere
with the Exercise of Secured Creditor Remedies by Senior Lien Agent
or Senior Lien Lenders; provided that (A) to the extent
that commencing, prosecuting, or participating in any such lawsuit,
action, or proceeding could not reasonably be expected, in any
material respect, to restrain, hinder, limit, delay for any
material period or otherwise interfere with the Exercise of Secured
Creditor Remedies by Senior Lien Agent or Senior Lien Lenders and
Junior Lien Agent does, in fact, commence, prosecute, or
participate in any such lawsuit, action, or proceeding, then Junior
Lien Agent shall give Senior Lien Agent prompt written notice of
any such action, and (B) as more fully set forth in
Section 5 , Junior Lien Agent and the Junior Lien
Lenders may file, prosecute and defend a proof of claim (such proof
of claim to indicate the subordination set forth herein) in any
Insolvency Proceeding involving any Obligor,
(2) Exercise
Any Secured Creditor Remedies,
(3) send
any notice to or otherwise seek to obtain payment directly from any
account debtor of any Obligor, sue for an attachment, an injunction
to enjoin any Exercise of Secured Creditor Remedies by Senior Lien
Agent or Senior Lien Lenders, a keeper, a receiver or any other
similar legal or equitable remedy, exercise any rights of set off
or recoupment as against any Obligor, or
(4) commence
or cause to be commenced or join with any creditor in commencing
any Insolvency Proceeding against any Obligor or any
Obligor’s assets.
Notwithstanding
any other provision hereof, (i) Junior Lien Agent and Junior
Lien Lenders may not Exercise Any Secured Creditor Remedies with
respect to any Payment Collateral at any time unless and until the
Discharge of Senior Lien Indebtedness shall have occurred;
(ii) Junior Lien Agent may not exercise any of the remedies
described in clauses (1) through (4) above (other than
filing, prosecuting or defending a proof of claim permitted under
such clause (4)) so long as (A) Senior Lien Agent at such time has
commenced and diligently is pursuing in good faith any Exercise of
Secured Creditor Remedies with respect to all or a material portion
of the Collateral or (B) Senior Lien Agent and Junior Lien Agent
are enjoined from the Exercise of Secured Creditor Remedies, in
each case, unless and until the Discharge of Senior Lien
Indebtedness shall have occurred; and (iii) Junior Lien Agent
may not exercise any of the remedies described in clauses (1)
through (4) above without first providing Senior Lien Agent at
least 10 days prior written notice in the form of a Notice of
Intent to Exercise (it being understood that
(x) notwithstanding anything to the contrary contained herein,
such Notice of Intent to Exercise may only be delivered by Junior
Lien Agent if there is an Event of Default under
Section 9.1(a) , Section 9.1(c) (solely with
respect to a default under Section 7.23 of the Junior
Lien Credit Agreement), or Section 9.1(d) (solely with
respect to a default in the payment when due of interest or
principal on the Senior Notes under the Indentures) of the Junior
Lien Credit Agreement; and (y) if Senior Lien Agent does not
deliver a Standstill Notice to Junior Lien Agent by the end of such
10 day period, Junior Lien Agent may proceed with the exercise
of such remedies, and if Junior Lien Agent elects to exercise such
remedies, Senior Lien Agent may not exercise any of the remedies of
the type described in clauses (1)
8
through
(4) above so long as Junior Lien Agent at such time has
commenced and diligently is pursuing in good faith any Exercise of
Secured Creditor Remedies with respect to all or a material portion
of the Collateral, unless and until the Discharge of Junior Lien
Indebtedness shall have occurred); provided , that Junior
Lien Agent shall not be required to provide a Notice of Intent to
Exercise to Senior Lien Agent in connection with a permitted
Exercise of Secured Creditor Remedies upon the termination of any
Standstill Period.
c. Limitation on Standstill
Periods . Subject to clause (ii) in the last paragraph of
Section 2.b , in no event shall a Standstill Period
extend beyond 270 days from the date of receipt by Junior Lien
Agent from Senior Lien Agent of a Standstill Notice initiating such
Standstill Period. Any number of notices of a Senior Lien Default
may be given during a Standstill Period, but no such notice shall
extend such Standstill Period. Only 2 Standstill Periods may
be commenced within any 360 day period, and no subsequent
Standstill Period may be commenced within 60 days after the
termination of the immediately preceding Standstill Period. No
Senior Lien Default that existed or was continuing on the date of
the commencement of any Standstill Period and that was known to
Senior Lien Agent or any Senior Lien Lender will be, or can be,
made the basis for the commencement of a second Standstill Period,
whether or not within a period of 360 consecutive days, unless such
Senior Lien Default has been cured or waived for a period of not
less than 60 consecutive days.
d. Release of Liens
.
(1) In
the event of any private or public sale or other disposition of all
or any portion of the Collateral by Senior Lien Agent after the
occurrence and during the continuance of a Senior Lien Default (and
prior to the date upon which the Discharge of Senior Lien
Indebtedness shall have occurred) in connection with the
liquidation by Senior Lien Agent of all or any material portion of
the Collateral and the collection by Senior Lien Agent of the
Senior Lien Indebtedness through the sale or other disposition of
such Collateral (whether prior to or after the occurrence of an
Insolvency Proceeding) (any such sale or other disposition, a
“ Senior Lien Lender Sale ”), then Junior Lien
Agent, on behalf of itself and the Junior Lien Lenders, agrees that
such Senior Lien Lender Sale will be free and clear of the Liens
securing the Junior Lien Indebtedness (and, if the Senior Lien
Lender Sale includes Equity Interests in any Obligor, Junior Lien
Agent, on behalf of itself and the Junior Lien Lenders, further
agrees to release the entities whose Equity Interests are sold from
all Junior Lien Indebtedness); provided that (x) Senior
Lien Agent and the Senior Lien Lenders also release their Liens on
such Collateral (and, if the Senior Lien Lender Sale includes
Equity Interests in any Obligor, the entities whose Equity
Interests are sold from all Senior Lien Indebtedness), (y) the
Proceeds of any such Senior Lien Lender Sale are applied in
accordance with Section 9 , and (z) Senior Lien
Agent shall have conducted such Senior Lien Lender Sale in a
commercially reasonable manner and in accordance with the
UCC.
(2) In
the event of any private or public sale or other disposition of all
or substantially all of the Collateral by any Obligor with the
consent of Senior Lien Agent after the occurrence and during the
continuance of a Senior Lien Default (and prior to the date upon
which the Discharge of Senior Lien Indebtedness shall have
occurred), which sale or other disposition is conducted by such
Obligor with the consent of Senior Lien Agent (any such sale or
other disposition, a “Forced Obligor Sale”), then
Junior Lien Agent, on behalf of itself and the Junior Lien Lenders,
agrees that such Forced Obligor Sale will be free and clear of the
Liens securing the Junior Lien Indebtedness (and, if the Forced
Obligor Sale includes Equity Interests in any Obligor, Junior Lien
Agent, on behalf of itself and the Junior Lien Lenders, further
agrees to release the entities whose Equity Interests are sold from
all Junior Lien Indebtedness); provided that (x) Senior Lien
Agent and the Senior Lien Lenders also release their Liens on such
Collateral (and, if the Forced Obligor Sale includes Equity
Interests in any Obligor, the entities whose Equity Interests are
sold from all Senior Lien Indebtedness), (y) the Proceeds of
any such Forced Obligor Sale are applied in
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accordance with Section 9 (as if it were Proceeds received in
connection with any Exercise of Secured Creditor Remedies), and
(z) the Obligor conducting such Forced Obligor Sale shall have
conducted such Forced Obligor Sale in a commercially reasonable
manner as if such Forced Obligor Sale were being conducted by a
secured creditor in accordance with the UCC.
(3) Junior
Lien Agent agrees that, in connection with any Senior Lien Lender
Sale or Forced Obligor Sale, upon the prior written request of
Senior Lien Agent (which request shall specify the proposed terms
of the sale and the type and amount of consideration to be received
in connection therewith), it will execute and/or file any and all
Lien releases or other documents reasonably requested by Senior
Lien Agent in connection therewith (copies of which are provided to
Junior Lien Agent) without recourse, representation or warranty and
at the sole expense of the Obligors; provided, that (w) in the
case of a Senior Lien Lender Sale, no such release documents shall
be delivered to any Obligor, (x) in the case of a Forced
Obligor Sale, no such release documents shall be delivered to any
Obligor unless Senior Lien Agent has delivered its release
documents to such Obligor, (y) no such release documents shall
be delivered to Junior Lien Agent for execution more than
5 days prior to the anticipated closing date of such sale or
disposition, and (z) the effectiveness of any such release or
termination by Junior Lien Agent shall be subject to the sale or
other disposition of the Collateral described in such request and
on the terms described in such request or on substantially similar
terms and shall lapse in the event such sale or other disposition
does not occur within 10 days of the anticipated closing date
(at which time Senior Lien Agent or the Obligors, as the case may
be, shall promptly return all release documents to Junior Lien
Agent). Subject to the proviso in the immediately preceding
sentence, in the event that Junior Lien Agent fails to so execute
or file any such Lien releases or other documents within 5 Business
Days after receipt of written request from Senior Lien Agent, the
Senior Lien Agent is hereby irrevocably authorized to execute
and/or file such Lien releases and other documents (provided that
such Lien releases and other documents shall not be filed or
recorded except substantially contemporaneous with such sale or
disposition or until such sale or disposition has been
consummated).
e. Waiver of Right to
Contest Senior Lien Indebtedness. Junior Lien Agent agrees that
it and the Junior Lien Lenders shall not, and hereby waives any
right to, take any action to contest or challenge (or assist or
support any other Person in contesting or challenging), directly or
indirectly, whether or not in any proceeding (including in any
Insolvency Proceeding), the validity, priority, enforceability, or
perfection of the Liens of Senior Lien Agent (on behalf of itself
and the Senior Lien Lenders) in any Collateral, the validity,
priority, enforceability or allowance of any of the claims of
Senior Lien Agent or any holder of Senior Lien Indebtedness against
any Obligor or the validity or enforceability of this Agreement or
any of the provisions hereof. Junior Lien Agent agrees that neither
it nor the Junior Lien Lenders will take any action that would
interfere with any Exercise of Secured Creditor Remedies undertaken
by Senior Lien Agent under the Senior Lien Loan Documents,
including any public or private sale, lease, exchange, transfer, or
other disposition of any Collateral, whether by foreclosure or
otherwise, in any case so long as Senior Lien Agent does not act in
contravention of this Agreement or applicable law. Junior Lien
Agent hereby waives any and all rights it and the Junior Lien
Lenders may have as a junior lien creditor or otherwise to contest,
protest, object to, interfere with the manner in which Senior Lien
Agent seeks to enforce the Liens in any Collateral so long as
Senior Lien Agent does not act in contravention of this Agreement
or applicable law.
f. Waiver of Right to
Contest Junior Lien Indebtedness. Senior Lien Agent agrees that
it and the Senior Lien Lenders shall not, and hereby waives any
right to, take any action to contest or challenge (or assist or
support any other Person in contesting or challenging), directly or
indirectly, whether or not in any proceeding (including in any
Insolvency Proceeding), the validity, priority (except to the
extent expressly provided by this Agreement), enforceability, or
perfection of the Liens of Junior Lien Agent (on behalf of itself
and the Junior Lien Lenders) in any Collateral, the validity,
priority (except to the extent
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expressly provided by this Agreement), enforceability or allowance
of any of the claims of Junior Lien Agent or any holder of Junior
Lien Indebtedness against any Obligor or the validity or
enforceability of this Agreement or any of the provisions hereof.
Solely to the extent that Junior Lien Agent is permitted to
Exercise Secured Creditor Remedies under this Agreement, Senior
Lien Agent agrees that neither it nor the Senior Lien Lenders will
take any action that would interfere with any Exercise of Secured
Creditor Remedies undertaken by Junior Lien Agent under the Junior
Lien Loan Documents, including any public or private sale, lease,
exchange, transfer, or other disposition of any Collateral, whether
by foreclosure or otherwise, in any case so long as Junior Lien
Agent does not act
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