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Exhibit
10.1
$525,000,000
CREDIT AGREEMENT
Dated as of December 23,
2004,
Among
GOODMAN GLOBAL,
INC.
GOODMAN GLOBAL HOLDINGS,
INC.
as Borrower,
THE LENDERS PARTY
HERETO,
JPMORGAN CHASE BANK,
N.A.,
as Administrative
Agent,
UBS SECURITIES
LLC,
as Syndication
Agent,
CREDIT SUISSE FIRST
BOSTON,
acting through its Cayman
Islands branch,
as Documentation
Agent
J.P. MORGAN SECURITIES
INC.
and
UBS SECURITIES
LLC,
as Joint Lead Arrangers and
Joint Bookrunners
TABLE OF CONTENTS
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| ARTICLE I |
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| Definitions |
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SECTION 1.01.
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Defined
Terms |
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1 |
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SECTION 1.02.
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Terms
Generally |
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34 |
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SECTION 1.03.
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Effectuation of Transfers |
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34 |
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| ARTICLE II |
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| The Credits |
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SECTION 2.01.
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Commitments |
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34 |
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SECTION 2.02.
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Loans and
Borrowings |
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35 |
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SECTION 2.03.
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Requests
for Borrowings |
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35 |
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SECTION 2.04.
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Swingline
Loans |
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36 |
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SECTION 2.05.
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Letters
of Credit |
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37 |
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SECTION 2.06.
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Funding
of Borrowings |
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41 |
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SECTION 2.07.
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Interest
Elections |
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41 |
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SECTION 2.08.
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Termination and Reduction of Commitments |
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43 |
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SECTION 2.09.
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Repayment
of Loans; Evidence of Debt |
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43 |
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SECTION 2.10.
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Repayment
of Term Loans and Revolving Facility Loans |
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44 |
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SECTION 2.11.
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Prepayment of Loans |
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45 |
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SECTION 2.12.
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Fees |
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45 |
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SECTION 2.13.
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Interest |
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46 |
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SECTION 2.14.
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Alternate
Rate of Interest |
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47 |
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SECTION 2.15.
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Increased
Costs |
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47 |
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SECTION 2.16.
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Break
Funding Payments |
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48 |
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SECTION 2.17.
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Taxes |
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49 |
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SECTION 2.18.
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Payments
Generally; Pro Rata Treatment; Sharing of Set-offs |
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50 |
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SECTION 2.19.
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Mitigation Obligations; Replacement of Lenders |
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52 |
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SECTION 2.20.
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Illegality |
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53 |
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| ARTICLE III |
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| Representations and
Warranties |
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SECTION 3.01.
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Organization; Powers |
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53 |
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SECTION 3.02.
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Authorization |
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53 |
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SECTION 3.03.
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Enforceability |
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54 |
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SECTION 3.04.
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Governmental Approvals |
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54 |
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SECTION 3.05.
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Financial
Statements |
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54 |
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SECTION 3.06.
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No
Material Adverse Change or Material Adverse Effect |
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55 |
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SECTION 3.07.
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Title to
Properties; Possession Under Leases |
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55 |
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SECTION 3.08.
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Subsidiaries |
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56 |
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SECTION 3.09.
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Litigation; Compliance with Laws |
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56 |
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SECTION 3.10.
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Federal
Reserve Regulations |
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56 |
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SECTION 3.11.
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Investment Company Act: Public Utility Holding Company
Act |
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56 |
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SECTION 3.12.
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Use of
Proceeds |
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57 |
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SECTION 3.13.
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Tax
Returns |
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57 |
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SECTION 3.14.
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No
Material Misstatements |
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57 |
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SECTION 3.15.
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Employee
Benefit Plans |
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57 |
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SECTION 3.16.
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Environmental Matters |
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58 |
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SECTION 3.17.
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Security
Documents |
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58 |
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SECTION 3.18.
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Location
of Real Property and Leased Premises |
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59 |
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SECTION 3.19.
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Solvency |
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59 |
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SECTION 3.20.
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Labor
Matters |
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60 |
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SECTION 3.21.
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Insurance |
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60 |
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| ARTICLE IV |
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| Conditions of Lending |
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SECTION 4.01.
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All
Credit Events |
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61 |
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SECTION 4.02.
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First
Credit Event |
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61 |
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| ARTICLE V |
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| Affirmative Covenants |
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SECTION 5.01.
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Existence; Businesses and Properties |
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64 |
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SECTION 5.02.
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Insurance |
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65 |
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SECTION 5.03.
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Taxes |
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65 |
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SECTION 5.04.
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Financial
Statements, Reports, etc. |
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65 |
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SECTION 5.05.
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Litigation and Other Notices |
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67 |
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SECTION 5.06.
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Compliance with Laws |
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67 |
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SECTION 5.07.
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Maintaining Records; Access to Properties and
Inspections |
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67 |
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SECTION 5.08.
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Use of
Proceeds |
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68 |
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SECTION 5.09.
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Compliance with Environmental Laws |
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68 |
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SECTION 5.10.
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Further
Assurances; Additional Mortgages |
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68 |
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SECTION 5.11.
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Fiscal
Year; Accounting |
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69 |
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SECTION 5.12.
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Proceeds
of Certain Dispositions |
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69 |
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| ARTICLE VI |
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| Negative Covenants |
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SECTION 6.01.
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Indebtedness |
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70 |
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SECTION 6.02.
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Liens |
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72 |
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SECTION 6.03.
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Sale and
Lease-Back Transactions |
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75 |
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SECTION 6.04.
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Investments, Loans and Advances |
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76 |
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SECTION 6.05.
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Mergers,
Consolidations, Sales of Assets and Acquisitions |
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77 |
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SECTION 6.06.
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Dividends
and Distributions |
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79 |
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SECTION 6.07.
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Transactions with Affiliates |
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80 |
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SECTION 6.08.
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Business
of the Borrower and the Subsidiaries |
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82 |
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SECTION 6.09.
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Limitation on Modifications of Indebtedness; Modifications of
Certificate of Incorporation, By-Laws and Certain Other Agreements;
etc |
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82 |
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SECTION 6.10.
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RESERVED |
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83 |
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SECTION 6.11.
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Interest
Coverage Ratio |
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83 |
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SECTION 6.12.
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Consolidated Leverage Ratio |
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84 |
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SECTION 6.13.
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Swap
Agreements |
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84 |
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SECTION 6.14.
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No Other
“Designated Senior Indebtedness” |
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84 |
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| ARTICLE VIA |
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| Holdings Negative Covenants |
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SECTION 6A.01.
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Business
of Holdings |
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85 |
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| ARTICLE VII |
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| Events of Default |
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SECTION 7.01.
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Events of
Default |
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85 |
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SECTION 7.02.
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Exclusion
of Immaterial Subsidiaries |
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88 |
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SECTION 7.03.
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Holdings’ Right to Cure |
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88 |
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| ARTICLE VIII |
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| The Agents |
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SECTION 8.01.
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Appointment |
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88 |
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SECTION 8.02.
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Delegation of Duties |
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89 |
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SECTION 8.03.
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Exculpatory Provisions |
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89 |
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SECTION 8.04.
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Reliance
by Administrative Agent |
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89 |
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SECTION 8.05.
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Notice of
Default |
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89 |
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SECTION 8.06.
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Non-Reliance on Agents and Other Lenders |
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90 |
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SECTION 8.07.
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Indemnification |
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90 |
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SECTION 8.08.
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Agent in
Its Individual Capacity |
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90 |
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SECTION 8.09.
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Successor
Administrative Agent |
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91 |
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SECTION 8.10.
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Syndication Agent and Documentation Agent. |
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91 |
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| ARTICLE IX |
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| Miscellaneous |
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SECTION 9.01.
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Notices |
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91 |
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SECTION 9.02.
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Survival
of Agreement |
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92 |
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SECTION 9.03.
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Binding
Effect |
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92 |
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SECTION 9.04.
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Successors and Assigns |
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92 |
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SECTION 9.05.
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Expenses;
Indemnity |
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95 |
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SECTION 9.06.
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Right of
Set-off |
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97 |
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SECTION 9.07.
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Applicable Law |
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97 |
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SECTION 9.08.
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Waivers;
Amendment |
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97 |
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SECTION 9.09.
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Interest
Rate Limitation |
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99 |
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SECTION 9.10.
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Entire
Agreement |
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99 |
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SECTION 9.11.
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WAIVER OF
JURY TRIAL |
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99 |
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SECTION 9.12.
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Severability |
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100 |
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SECTION 9.13.
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Counterparts |
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100 |
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SECTION 9.14.
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Headings |
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100 |
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SECTION 9.15.
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Jurisdiction; Consent to Service of Process |
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100 |
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SECTION 9.16.
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Confidentiality |
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100 |
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SECTION 9.17.
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JPMorgan
Chase Bank, N.A. Direct Website Communications |
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101 |
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SECTION 9.18.
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Release
of Liens and Guarantees |
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102 |
Exhibits and
Schedules
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Exhibit A
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Form of Assignment and
Acceptance
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Exhibit B
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Form of Administrative
Questionnaire
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Exhibit C-1
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Form of Borrowing Request
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Exhibit C-2
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Form of Swingline Borrowing
Request
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Exhibit D
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Form of Mortgage
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Exhibit E
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Form of Collateral Agreement
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Exhibit F
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Form of Solvency Certificate
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Schedule 1.01(a)
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Certain U.S. Subsidiaries
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Schedule 1.01(b)
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Pro Forma EBITDA
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Schedule 1.01(c)
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Mortgaged Properties
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Schedule 1.01(d)
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Assets Targeted for Sale
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Schedule 1.01(e)
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Family Investors
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Schedule 2.01
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Commitments
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Schedule 2.05(a)
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Existing Letters of Credit
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Schedule 3.01
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Organization and Good
Standing
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Schedule 3.04
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Governmental Approvals
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Schedule 3.07(b)
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Possession under Leases
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Schedule 3.07(c)
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Intellectual Property
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Schedule 3.08(a)
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Subsidiaries
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Schedule 3.08(b)
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Subscriptions
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Schedule 3.09
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Litigation
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Schedule 3.13
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Taxes
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Schedule 3.16
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Environmental Matters
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Schedule 3.20
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Labor Matters
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Schedule 3.21
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Insurance
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Schedule 4.02(b)
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Local U.S. Counsel
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Schedule 6.01
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Indebtedness
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Schedule 6.02(a)
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Liens
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Schedule 6.04
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Investments
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Schedule 6.07
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Transactions with Affiliates
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CREDIT AGREEMENT dated as of
December 23, 2004 (this “ Agreement ”), among
GOODMAN GLOBAL, INC., a Delaware corporation (“
Holdings ”), GOODMAN GLOBAL HOLDINGS, INC., a Delaware
corporation (the “ Borrower ”), the LENDERS
party hereto from time to time, JPMORGAN CHASE BANK, N.A., as
administrative agent (in such capacity, the “
Administrative Agent ”) for the Lenders, UBS
SECURITIES LLC, as syndication agent (in such capacity, the “
Syndication Agent ”), CREDIT SUISSE FIRST BOSTON,
acting through its Cayman Islands branch, as documentation agent
(in such capacity, the “ Documentation Agent ”),
and J.P. MORGAN SECURITIES INC. and UBS SECURITIES LLC as joint
lead arrangers and joint book managers (in such capacity, the
“ Joint Lead Arrangers ”).
WHEREAS, Apollo Investment
Fund V, L.P., Apollo Overseas Partners Fund V, L.P. and other
affiliated co-investment partnerships (collectively, the “
Fund ”) have indirectly formed Holdings and the
Borrower for the purpose of entering into that certain Asset
Purchase Agreement (the “ Acquisition Agreement
”) dated as of November 18, 2004 with Goodman Global
Holdings, Inc., a Texas corporation (the “ Seller
”), pursuant to which the Borrower will acquire (the “
Acquisition ”) the Seller’s assets and the
outstanding interests in the Seller’s subsidiaries
(collectively, the “ Acquired Business ”);
and
WHEREAS, in connection with
the consummation of the Acquisition, the Borrower has requested the
Lenders to extend credit in the form of (a) Term Loans on the
Closing Date, in an aggregate principal amount not in excess of
$350 million, and (b) Revolving Facility Loans and Letters of
Credit at any time and from time to time prior to the Revolving
Facility Maturity Date, in an aggregate principal amount at any
time outstanding not in excess of $175 million;
NOW, THEREFORE, the Lenders
are willing to extend such credit to the Borrower on the terms and
subject to the conditions set forth herein. Accordingly, the
parties hereto agree as follows:
ARTICLE I
Definitions
SECTION 1.01. Defined
Terms . As used in this Agreement, the following terms shall
have the meanings specified below:
“ ABR ”
shall mean for any day, a rate per annum equal to the greater of
(a) the Prime Rate in effect on such day and (b) the Federal Funds
Effective Rate in effect on such day plus ½ of 1%. For
purposes hereof: “ Prime Rate ” shall mean the
rate of interest per annum publicly announced from time to time by
JPMorgan Chase Bank, N.A. as its prime rate in effect at its
principal office in New York City (the Prime Rate not being
intended to be the lowest rate of interest charged by JPMorgan
Chase Bank, N.A. in connection with extensions of credit to
debtors). Any change in the ABR due to a change in the Prime Rate
or the Federal Funds Effective Rate shall be effective as of the
opening of business on the effective day of such change in the
Prime Rate or the Federal Funds Effective Rate,
respectively.
“ ABR Borrowing
” shall mean a Borrowing comprised of ABR Loans.
“ ABR Loan
” shall mean any ABR Term Loan, ABR Revolving Loan or
Swingline Loan.
“ ABR Revolving
Borrowing ” shall mean a Borrowing comprised of ABR
Revolving Loans.
“ ABR Revolving
Loan ” shall mean any Revolving Facility Loan bearing
interest at a rate determined by reference to the ABR in accordance
with the provisions of Article II.
“ ABR Term Loan
” shall mean any Term Loan bearing interest at a rate
determined by reference to the ABR in accordance with the
provisions of Article II.
“ Acquired
Business ” shall have the meaning assigned to such term
in the first recital hereto.
“ Acquisition
” shall have the meaning assigned to such term in the first
recital hereto.
“ Acquisition
Agreement ” shall have the meaning assigned to such term
in the first recital hereto.
“ Acquisition
Documents ” shall mean the collective reference to the
Acquisition Agreement, all material exhibits and schedules thereto
and all agreements expressly contemplated thereby.
“ Additional
Mortgage ” shall have the meaning assigned to such term
in Section 5.10(c).
“ Adjusted LIBO
Rate ” shall mean, with respect to any Eurocurrency
Borrowing for any Interest Period, an interest rate per annum
(rounded upwards, if necessary, to the next 1/16 of 1%) equal to
(a) the LIBO Rate in effect for such Interest Period divided by (b)
one minus the Statutory Reserves applicable to such Eurocurrency
Borrowing, if any.
“ Adjustment
Date ” shall have the meaning assigned to such term in
the definition of “Pricing Grid.”
“ Administrative
Agent ” shall have the meaning assigned to such term in
the introductory paragraph of this Agreement.
“ Administrative
Agent Fees ” shall have the meaning assigned to such term
in Section 2.12(c).
“ Administrative
Questionnaire ” shall mean an Administrative
Questionnaire in the form of Exhibit B .
“ Affiliate
” shall mean, when used with respect to a specified person,
another person that directly, or indirectly through one or more
intermediaries, Controls or is Controlled by or is under common
Control with the person specified.
“ Agent Parties
” shall have the meaning assigned to such term in Section
9.17(c).
“ Agents ”
shall mean the Administrative Agent and the Syndication Agent and
the Documentation Agent.
“ Agreement
” shall have the meaning assigned to such term in the
introductory paragraph of this Agreement.
“ AIBA Prepayment
Amount ” shall mean the sum of the amounts calculated for
each Excess Cash Flow Period ending after the Closing Date which is
equal to (a) the aggregate amount of the voluntary prepayments and
reductions referred to in clauses (b)(i) and (b)(ii) of the
definition of “Excess
2
Cash Flow” for such Excess Cash
Flow Period, with such aggregate amount divided by the Required
Percentage for such Excess Cash Flow Period, minus (b) such
aggregate amount of the voluntary prepayments and reductions for
such Excess Cash Flow Period.
“ Applicable
Margin ” shall mean for any day (i) with respect to any
Term Loan, 2.25% per annum in the case of any Eurocurrency Loan and
1.25% per annum in the case of any ABR Loan and (ii) with respect
to any Revolving Facility Loan, 2.50% per annum in the case of any
Eurocurrency Loan and 1.50% per annum in the case of any ABR Loan,
provided that on and after the first Adjustment Date
occurring after the completion of one full fiscal quarter of the
Borrower after the Closing Date, the Applicable Margin with respect
to Term Loans, Revolving Facility Loans and Swingline Loans will be
determined pursuant to the Pricing Grid.
“ Approved Fund
” shall have the meaning assigned to such term in Section
9.04(b).
“ Assets Targeted
for Sale ” means those assets set forth on Schedule
1.01(d) , provided that following the first anniversary
of the Closing Date any of such assets which have not been sold or
are not subject to a definitive agreement to sell shall no longer
be deemed “Assets Targeted for Sale.”
“ Assignee
” shall have them meaning assigned to such term in Section
9.04(b).
“ Assignment and
Acceptance ” shall mean an assignment and acceptance
entered into by a Lender and an assignee, and accepted by the
Administrative Agent and the Borrower (if required by such
assignment and acceptance), in the form of Exhibit A or such
other form as shall be approved by the Administrative
Agent.
“ Availability
Period ” shall mean the period from and including the
Closing Date to but excluding the earlier of the Revolving Facility
Maturity Date and in the case of each of the Revolving Facility
Loans, Revolving Facility Borrowings, Swingline Loans, Swingline
Borrowings and Letters of Credit, the date of termination of the
Revolving Facility Commitments.
“ Available
Investment Basket Amount ” shall mean, on any date of
determination, an amount equal to (a) the Cumulative Retained
Excess Cash Flow Amount on such date plus (b) the aggregate amount
of proceeds received after the Closing Date and prior to such date
that would have constituted Net Proceeds pursuant to clause (a) of
the definition thereof except for the operation of clause (x) or
(y) of the second proviso thereof (the “ Below-Threshold
Asset Sale Proceeds ”), plus (c) the AIBA Prepayment
Amount on such date plus (d) the cumulative amount of cash proceeds
from the sale of Equity Interests of Holdings after the Closing
Date (which proceeds have been contributed as common equity to the
capital of the Borrower), minus (e) any amounts thereof used to
make Investments pursuant to Section 6.04(b)(y) after the Closing
Date and on or prior to such date, minus (f) any amounts thereof
used to make Investments pursuant to Section 6.04(j)(ii) after the
Closing Date and on or prior to such date, minus (g) the cumulative
amount of dividends paid and distributions made pursuant to Section
6.06(e)(ii); provided , however , for purposes of
Section 6.06(e)(ii), the calculation of the Available Investment
Basket Amount shall not include any Below-Threshold Asset Sale
Proceeds except to the extent they are used as contemplated in
clauses (e) and (f) above.
“ Available Unused
Commitment ” shall mean, with respect to a Revolving
Facility Lender at any time, an amount equal to the amount by which
(a) the Revolving Facility Commitment of such Revolving Facility
Lender at such time exceeds (b) the Revolving Facility Credit
Exposure of such Revolving Facility Lender at such time.
3
“ Board ”
shall mean the Board of Governors of the Federal Reserve System of
the United States of America.
“ Borrower
” shall have the meaning assigned to such term in the
introductory paragraph of this Agreement.
“ Borrowing
” shall mean a group of Loans of a single Type under a single
Facility and made on a single date and, in the case of Eurocurrency
Loans, as to which a single Interest Period is in
effect.
“ Borrowing
Minimum ” shall mean $500,000.
“ Borrowing
Multiple ” shall mean $100,000.
“ Borrowing
Request ” shall mean a request by a Borrower in
accordance with the terms of Section 2.03 and substantially in the
form of Exhibit C-1 .
“ Budget ”
shall have the meaning assigned to such term in Section
5.04(e).
“ Business Day
” shall mean any day that is not a Saturday, Sunday or other
day on which commercial banks in New York City are authorized or
required by law to remain closed; provided that when used in
connection with a Eurocurrency Loan, the term “Business
Day” shall also exclude any day on which banks are not open
for dealings in deposits in the applicable currency in the London
interbank market.
“ Capital
Expenditures ” shall mean, for any person in respect of
any period, the aggregate of all expenditures incurred by such
person during such period that, in accordance with GAAP, are or
should be included in “additions to property, plant or
equipment” or similar items reflected in the statement of
cash flows of such person, provided , however , that
Capital Expenditures for Holdings, the Borrower and the
Subsidiaries shall not include:
(a) expenditures to the
extent they are made with proceeds of the issuance of Equity
Interests of Holdings after the Closing Date to the Fund or any
Fund Affiliate or with funds that would have constituted Net
Proceeds under clause (a) of the definition of the term “Net
Proceeds” (but that will not constitute Net Proceeds as a
result of the first proviso to such clause (a)),
(b) expenditures of proceeds
of insurance settlements, condemnation awards and other settlements
in respect of lost, destroyed, damaged or condemned assets,
equipment or other property to the extent such expenditures are
made to replace or repair such lost, destroyed, damaged or
condemned assets, equipment or other property or otherwise to
acquire, maintain, develop, construct, improve, upgrade or repair
assets or properties useful in the business of the Borrower and the
Subsidiaries within 12 months of receipt of such
proceeds,
(c) interest capitalized
during such period,
(d) expenditures that are
accounted for as capital expenditures of such person and that
actually are paid for by a third party (excluding Holdings, the
Borrower or any Subsidiary thereof) and for which neither Holdings,
the Borrower nor any Subsidiary has provided or is required to
provide or incur, directly or indirectly, any consideration or
obligation to such third party or any other person (whether before,
during or after such period),
4
(e) the book value of any
asset owned by such person prior to or during such period to the
extent that such book value is included as a capital expenditure
during such period as a result of such person reusing or beginning
to reuse such asset during such period without a corresponding
expenditure actually having been made in such period,
provided that (i) any expenditure necessary in order to
permit such asset to be reused shall be included as a Capital
Expenditure during the period that such expenditure actually is
made and (ii) such book value shall have been included in Capital
Expenditures when such asset was originally acquired,
(f) the purchase price of
equipment purchased during such period to the extent the
consideration therefor consists of any combination of (i) used or
surplus equipment traded in at the time of such purchase and (ii)
the proceeds of a concurrent sale of used or surplus equipment, in
each case, in the ordinary course of business,
(g) Investments in respect of
a Permitted Business Acquisition, or
(h) the
Acquisition.
“ Capital Lease
Obligations ” of any person shall mean the obligations of
such person to pay rent or other amounts under any lease of (or
other arrangement conveying the right to use) real or personal
property, or a combination thereof, which obligations are required
to be classified and accounted for as capital leases on a balance
sheet of such person under GAAP and, for purposes hereof, the
amount of such obligations at any time shall be the capitalized
amount thereof at such time determined in accordance with
GAAP.
“ Cash Interest
Expense ” shall mean, with respect to the Borrower and
the Subsidiaries on a consolidated basis for any period, Interest
Expense for such period, less the sum of (a) pay-in-kind Interest
Expense or other noncash Interest Expense (including as a result of
the effects of purchase accounting), (b) to the extent included in
Interest Expense, the amortization of any financing fees paid by,
or on behalf of, Borrower or any Subsidiary, including such fees
paid in connection with the Transactions or upon entering into a
Permitted Receivables Financing, (c) the amortization of debt
discounts, if any, or fees in respect of Swap Agreements and (d)
cash interest income of Borrower and its Subsidiaries for such
period; provided that Cash Interest Expense shall exclude
any one-time financing fees, including those paid in connection
with the Transactions, or upon entering into a Permitted
Receivables Financing or any amendment of this
Agreement.
For purposes of determining
Cash Interest Expense under this Agreement for any period that
includes any of the fiscal quarters ended September 30, 2004 and
December 31, 2004, Cash Interest Expense for such fiscal quarters
shall be $15.099 million and $15.746 million,
respectively.
A “ Change in
Control ” shall be deemed to occur if:
(a) at any time, (i) Holdings
shall fail to own, directly or indirectly, beneficially and of
record, 100% of the issued and outstanding Equity Interests of the
Borrower, (ii) a majority of the seats (other than vacant seats) on
the board of directors of Holdings shall at any time be occupied by
persons who were neither (A) nominated by the board of directors of
Holdings or a Permitted Holder, (B) appointed by directors so
nominated nor (C) appointed by a Permitted Holder or (iii) a
“Change in Control” shall occur under the Senior Note
Indenture, the Senior Subordinated Note Indenture, any Permitted
Debt Securities or any Permitted Refinancing Indebtedness in
respect thereof;
(b) at any time prior to a
Qualified IPO, any combination of Permitted Holders shall fail to
own beneficially (within the meaning of Rule 13d-5 of the Exchange
Act as in effect on the
5
Closing Date), directly or indirectly,
in the aggregate Equity Interests representing at least 51% of the
aggregate ordinary voting power represented by the issued and
outstanding Equity Interests of Holdings; or
(c) at any time after a
Qualified IPO, any Person or “group” (within the
meaning of Rules 13d-3 and 13d-5 under the Securities Exchange Act
of 1934 as in effect on the Closing Date), other than any
combination of the Permitted Holders or any “group”
including any Permitted Holders, shall have acquired beneficial
ownership of 35% or more on a fully diluted basis of the voting
interest in Holdings’ capital stock and the Permitted Holders
shall own, directly or indirectly, less than such Person or
“group” on a fully diluted basis of the voting interest
in Holdings’ capital stock.
“ Change in Law
” shall mean (a) the adoption of any law, rule or regulation
after the Closing Date, (b) any change in law, rule or regulation
or in the interpretation or application thereof by any Governmental
Authority after the Closing Date or (c) compliance by any Lender or
Issuing Bank (or, for purposes of Section 2.15(b), by any lending
office of such Lender or by such Lender’s or Issuing
Bank’s holding company, if any) with any written request,
guideline or directive (whether or not having the force of law) of
any Governmental Authority made or issued after the Closing
Date.
“ Charges
” shall have the meaning assigned to such term in Section
9.09.
“ Closing Date
” shall mean December 23, 2004.
“ Code ”
shall mean the Internal Revenue Code of 1986, as amended from time
to time.
“ Collateral
” shall mean all the “Collateral” as defined in
any Security Document and shall also include the Mortgaged
Properties, provided that “Collateral” shall not
include the Assets Targeted for Sale.
“ Collateral
Agreement ” shall mean the Guarantee and Collateral
Agreement, as amended, supplemented or otherwise modified from time
to time, in the form of Exhibit E , among Holdings, the
Borrower, each Subsidiary Loan Party and the Administrative
Agent.
“ Collateral and
Guarantee Requirement ” shall mean the requirement
that:
(a) on the Closing Date, the
Administrative Agent shall have received (I) from Holdings, the
Borrower and each Subsidiary Loan Party, a counterpart of the
Collateral Agreement duly executed and delivered on behalf of such
person and (II) an Acknowledgment and Consent in the form attached
to the Collateral Agreement, executed and delivered by each issuer
of Pledged Collateral (as defined in the Collateral Agreement), if
any, that is not a Loan Party;
(b) on the Closing Date, the
Administrative Agent shall have received (I) a pledge of all the
issued and outstanding Equity Interests of (A) the Borrower and (B)
each Domestic Subsidiary (other than Subsidiaries listed on
Schedule 1.01(a) ) owned on the Closing Date directly by or
on behalf of the Borrower or any Subsidiary Loan Party and (II) a
pledge of 65% of the outstanding Equity Interests of each
“first tier” Foreign Subsidiary directly owned by
Holdings, the Borrower or a Subsidiary Loan Party; and the
Administrative Agent shall have received all certificates or other
instruments (if any) representing such Equity Interests, together
with stock powers or other instruments of transfer with respect
thereto endorsed in blank;
(c) on the Closing Date, all
Indebtedness of Holdings, the Borrower and each Subsidiary having,
in the case of each instance of Indebtedness, an aggregate
principal amount in excess of $3.0 million (other than (i)
intercompany current liabilities incurred in the ordinary course of
business
6
in connection with the cash management
operations of Holdings and its Subsidiaries or (ii) to the extent
that a pledge of such promissory note or instrument would violate
applicable law) that is owing to any Loan Party shall be evidenced
by a promissory note or an instrument and shall have been pledged
pursuant to the Collateral Agreement, and the Administrative Agent
shall have received all such promissory notes or instruments,
together with note powers or other instruments of transfer with
respect thereto endorsed in blank;
(d) in the case of any person
that becomes a Subsidiary Loan Party after the Closing Date, the
Administrative Agent shall have received a supplement to the
Collateral Agreement, in the form specified therein, duly executed
and delivered on behalf of such Subsidiary Loan Party;
(e) in the case of any person
that becomes a “first tier” Foreign Subsidiary directly
owned by Holdings, the Borrower or a Subsidiary Loan Party after
the Closing Date, the Administrative Agent shall have received, as
promptly as practicable following a request by the Administrative
Agent, a Foreign Pledge Agreement, duly executed and delivered on
behalf of such Foreign Subsidiary and the direct parent company of
such Foreign Subsidiary;
(f) after the Closing Date,
all the outstanding Equity Interests of (A) any person that becomes
a Subsidiary Loan Party after the Closing Date and (B) subject to
Section 5.10(g), all the Equity Interests that are acquired by a
Loan Party after the Closing Date (including, without limitation,
the Equity Interests of any Special Purpose Receivables Subsidiary
established after the Closing Date), shall have been pledged
pursuant to the Collateral Agreement ( provided that in no
event shall more than 65% of the issued and outstanding Equity
Interests of any “first tier” Foreign Subsidiary
directly owned by such Loan Party be pledged to secure Obligations
of the Borrower, and in no event shall any of the issued and
outstanding Equity Interests of any Foreign Subsidiary that is not
a “first tier” Foreign Subsidiary be pledged to secure
Obligations of the Borrower), and the Administrative Agent shall
have received all certificates or other instruments (if any)
representing such Equity Interests, together with stock powers or
other instruments of transfer with respect thereto endorsed in
blank;
(g) except as disclosed on
Schedule 3.04 or as otherwise contemplated by any Security
Document, all documents and instruments, including Uniform
Commercial Code financing statements, required by law or reasonably
requested by the Administrative Agent to be filed, registered or
recorded to create the Liens intended to be created by the Security
Documents (in each case, including any supplements thereto) and
perfect such Liens to the extent required by, and with the priority
required by, the Security Documents, shall have been filed,
registered or recorded or delivered to the Administrative Agent for
filing, registration or the recording concurrently with, or
promptly following, the execution and delivery of each such
Security Document;
(h) on the Closing Date, the
Administrative Agent shall have received (i) counterparts of each
Mortgage to be entered into with respect to each Mortgaged Property
set forth on Schedule 1.01(c) duly executed and delivered by
the record owner of such Mortgaged Property and (ii) such other
documents as the Administrative Agent may reasonably request with
respect to any such Mortgage or Mortgaged Property;
(i) on the Closing Date, or
as soon as is practicable not to exceed 60 days from the Closing
Date, the Administrative Agent shall have received (i) a policy or
policies or marked-up unconditional binder of title insurance or
foreign equivalent thereof, as applicable, paid for by the
Borrower, issued by a nationally recognized title insurance company
insuring the Lien of each Mortgage to be entered into on the
Closing Date as a valid first Lien on the Mortgaged Property
described therein, free of any other Liens except as permitted by
Section 6.02 and Liens arising by operation of law, together with
such endorsements, coinsurance and reinsurance as the
Administrative Agent may
7
reasonably request, (ii) a survey of any
Mortgaged Property (and all improvements thereon), or foreign
equivalent thereof, as applicable, which is (1) dated (or redated)
not earlier than six months prior to the date of delivery thereof
unless there shall have occurred within six months prior to such
date of delivery any exterior construction on the site of such
Mortgaged Property, in which event such survey shall be dated (or
redated) after the completion of such construction or if such
construction shall not have been completed as of such date of
delivery, not earlier than 20 days prior to such date of delivery,
(2) certified by the surveyor (in a manner reasonably acceptable to
the Administrative Agent) to the Administrative Agent and the title
insurance company insuring the Mortgage, (3) complying in all
respects with the minimum detail requirements of the American Land
Title Association as such requirements are in effect on the date of
preparation of such survey and (4) sufficient for such title
insurance company to remove all standard survey exceptions from the
title insurance policy relating to such Mortgaged Property or
otherwise reasonably acceptable to the Administrative Agent;
and
(j) except as disclosed on
Schedule 3.04 or as otherwise contemplated by any Security
Document, each Loan Party shall have obtained all consents and
approvals required to be obtained by it in connection with (i) the
execution and delivery of all Security Documents (or supplements
thereto) to which it is a party and the granting by it of the Liens
thereunder and (ii) the performance of its obligations
thereunder.
“ Commitment Fee
” shall have the meaning assigned to such term in Section
2.12(a).
“ Commitments
” shall mean (a) with respect to any Lender, such
Lender’s Revolving Facility Commitment and Term Loan
Commitment and (b) with respect to any Swingline Lender, its
Swingline Commitment.
“ Communications
” shall have the meaning assigned to such term in Section
9.17(a).
“ Conduit Lender
” shall mean any special purpose corporation organized and
administered by any Lender for the purpose of making Loans
otherwise required to be made by such Lender and designated by such
Lender in a written instrument; provided , that the
designation by any Lender of a Conduit Lender shall not relieve the
designating Lender of any of its obligations to fund a Loan under
this Agreement if, for any reason, its Conduit Lender fails to fund
any such Loan, and the designating Lender (and not the Conduit
Lender) shall have the sole right and responsibility to deliver all
consents and waivers required or requested under this Agreement
with respect to its Conduit Lender, and provided ,
further , that no Conduit Lender shall (a) be entitled to
receive any greater amount pursuant to Section 2.15, 2.16, 2.17 or
9.05 than the designating Lender would have been entitled to
receive in respect of the extensions of credit made by such Conduit
Lender or (b) be deemed to have any Commitment.
“ Consolidated
Debt ” at any date shall mean the sum of (without
duplication) (i) all Indebtedness consisting of Capital Lease
Obligations, Indebtedness for borrowed money (other than letters of
credit to the extent undrawn) and Indebtedness in respect of the
deferred purchase price of property or services of the Borrower and
its Subsidiaries determined on a consolidated basis on such date
plus (ii) any Receivables Net Investment.
“ Consolidated
Leverage Ratio ” shall mean, on any date, the ratio of
(a) Consolidated Total Debt as of such date to (b) EBITDA for the
period of four consecutive fiscal quarters of the Borrower most
recently ended as of such date, all determined on a consolidated
basis in accordance with GAAP; provided that EBITDA shall be
determined for the relevant Test Period on a Pro Forma
Basis.
8
“ Consolidated Net
Income ” shall mean, with respect to any person for any
period, the aggregate of the Net Income of such person and its
subsidiaries for such period, on a consolidated basis;
provided , however , that, without
duplication,
(i) any net after-tax (A)
extraordinary, (B) nonrecurring non-cash, (C) nonrecurring or (D)
unusual gains or losses or income or expenses (less all fees and
expenses relating thereto) including, without limitation, any
severance expenses, and fees, expenses or charges related to any
offering of Equity Interests of Holdings, any Investment,
acquisition or Indebtedness permitted to be incurred hereunder (in
each case, whether or not successful), including any such fees,
expenses, charges or change in control payments related to the
Transactions, in each case, shall be excluded,
(ii) any net after-tax income
or loss from discontinued operations and any net after-tax gain or
loss on disposal of discontinued operations shall be
excluded,
(iii) any net after-tax gain
or loss (less all fees and expenses or charges relating thereto)
attributable to business dispositions or asset dispositions other
than in the ordinary course of business (as determined in good
faith by the Board of Directors of the Borrower) shall be
excluded,
(iv) any net after-tax income
or loss (less all fees and expenses or charges relating thereto)
attributable to the early extinguishment of indebtedness shall be
excluded,
(v) (A) the Net Income for
such period of any person that is not a subsidiary of such person,
or is an Unrestricted Subsidiary, or that is accounted for by the
equity method of accounting, shall be included only to the extent
of the amount of dividends or distributions or other payments paid
in cash (or to the extent converted into cash) to the referent
person or a subsidiary thereof in respect of such period and (B)
the Net Income for such period shall include any ordinary course
dividend distribution or other payment in cash received from any
person in excess of the amounts included in clause (A),
(vi) Consolidated Net Income
for such period shall not include the cumulative effect of a change
in accounting principles during such period,
(vii) any increase in
amortization or depreciation or any one-time non-cash charges
resulting from purchase accounting in connection with the
Transactions or any acquisition that is consummated after the
Closing Date shall be excluded,
(viii) any non-cash
impairment charges resulting from the application of Statement of
Financial Accounting Standards No. 142 and 144, and the
amortization of intangibles arising pursuant to No. 141, shall be
excluded,
(ix) any non-cash
compensation expenses realized from grants of stock appreciation or
similar rights, stock options or other rights to officers,
directors and employees of such person or any of its subsidiaries
shall be excluded, and
(x) accruals and reserves
that are established within twelve months after the Closing Date
and that are so required to be established in accordance with GAAP
shall be excluded.
“ Consolidated
Senior Debt ” shall mean all Consolidated Debt that is
not subordinated in right of payment to any other Consolidated
Debt.
9
“ Consolidated Total
Assets ” shall mean, as of any date, the total assets of
the Borrower and the consolidated Subsidiaries, determined in
accordance with GAAP, as set forth on the consolidated balance
sheet of the Borrower as of such date.
“ Consolidated Total
Debt ” at any date shall mean Consolidated Debt on such
date less the unrestricted cash and marketable securities
(determined in accordance with GAAP) of the Borrower and its
Subsidiaries on such date in excess of the aggregate principal
amount of the outstanding Revolving Facility Loans on such
date.
“ Control
” shall mean the possession, directly or indirectly, of the
power to direct or cause the direction of the management or
policies of a person, whether through the ownership of voting
securities, by contract or otherwise, and “
Controlling ” and “ Controlled ”
shall have meanings correlative thereto.
“ Credit Event
” shall have the meaning assigned to such term in Article
IV.
“ Cumulative
Retained Excess Cash Flow Amount ” shall mean, at any
date, an amount, not less than zero in the aggregate, determined on
a cumulative basis equal to the amount of Excess Cash Flow for all
Excess Cash Flow Periods ending after the Closing Date that is not
(and, in the case of any Excess Cash Flow Period where the
respective required date of prepayment has not yet occurred
pursuant to Section 2.11(c), will not on such date of required
prepayment be) required to be applied in accordance with Section
2.11(c).
“ Cure Amount
” shall have the meaning assigned to such term in Section
7.03(a).
“ Cure Right
” shall have the meaning assigned to such term in Section
7.03(a).
“ Current Assets
” shall mean, with respect to the Borrower and the
Subsidiaries on a consolidated basis at any date of determination,
the sum of (a) all assets (other than cash and Permitted
Investments or other cash equivalents) that would, in accordance
with GAAP, be classified on a consolidated balance sheet of the
Borrower and the Subsidiaries as current assets at such date of
determination, other than amounts related to current or deferred
Taxes based on income or profits, and (b) in the event that a
Permitted Receivables Financing is accounted for off-balance sheet,
(x) gross accounts receivable comprising part of the Receivables
Assets subject to such Permitted Receivables Financing less (y)
collections against the amounts sold pursuant to clause
(x).
“ Current
Liabilities ” shall mean, with respect to the Borrower
and the Subsidiaries on a consolidated basis at any date of
determination, all liabilities that would, in accordance with GAAP,
be classified on a consolidated balance sheet of the Borrower and
the Subsidiaries as current liabilities at such date of
determination, other than (a) the current portion of any
Indebtedness, (b) accruals of Interest Expense (excluding Interest
Expense that is due and unpaid), (c) accruals for current or
deferred Taxes based on income or profits, (d) accruals, if any, of
transaction costs resulting from the Transactions, and (e) accruals
of any costs or expenses related to (i) severance or termination of
employees prior to the Closing Date or (ii) bonuses, pension and
other post-retirement benefit obligations, and (f) accruals for
add-backs to EBITDA included in clauses (a)(iv) through (a)(vi) of
the definition of such term.
“ Debt Service
” shall mean, with respect to the Borrower and the
Subsidiaries on a consolidated basis for any period, Cash Interest
Expense for such period plus scheduled principal amortization of
Consolidated Debt for such period.
10
“ Default
” shall mean any event or condition that upon notice, lapse
of time or both would constitute an Event of Default.
“ Defaulting
Lender ” shall mean any Lender with respect to which a
Lender Default is in effect.
“ Documentation
Agent ” shall have the meaning assigned to such term in
the introductory paragraph of this Agreement.
“ Dollars
” or “ $ ” shall mean lawful money of the
United States of America.
“ Domestic
Subsidiary ” shall mean any Subsidiary that is not a
Foreign Subsidiary.
“ EBITDA ”
shall mean, with respect to Borrower and the Subsidiaries on a
consolidated basis for any period, the Consolidated Net Income of
Borrower and the Subsidiaries for such period plus (a) the
sum of (in each case without duplication and to the extent the
respective amounts described in subclauses (i) through (vi) of this
clause (a) reduced such Consolidated Net Income for the respective
period for which EBITDA is being determined):
(i) provision for Taxes based
on income, profits or capital of the Borrower and the Subsidiaries
for such period, including, without limitation, state, franchise
and similar taxes,
(ii) Interest Expense of the
Borrower and the Subsidiaries for such period (net of interest
income of the Borrower and its Subsidiaries for such
period),
(iii) depreciation and
amortization expenses of the Borrower and the Subsidiaries for such
period,
(iv) business optimization
expenses and other restructuring charges; provided that with
respect to each business optimization expense or other
restructuring charge, the Borrower shall have delivered to the
Administrative Agent an officers’ certificate specifying and
quantifying such expense or charge and stating that such expense or
charge is a business optimization expense or other restructuring
charge, as the case may be,
(v) any other non-cash
charges; provided that, for purposes of this subclause (v)
of this clause (a), any non-cash charges or losses shall be treated
as cash charges or losses in any subsequent period during which
cash disbursements attributable thereto are made, and
(vi) the amount of
management, consulting, monitoring, transaction and advisory fees
and related expenses paid to the Fund or any Fund Affiliate (or any
accruals related to such fees and related expenses) during such
period; provided that such amount shall not exceed in any
four quarter period the sum of (i) the greater of $2 million and 1%
of Consolidated EBITDA, plus (ii) the amount of deferred
fees (to the extent such fees were within such amount in clause (i)
above originally), plus (iii) 1.5% of the value of
transactions with respect to which the Fund or any Fund Affiliate
provides any of the aforementioned types of services,
minus (b) the sum of (without
duplication and to the extent the amounts described in this clause
(b) increased such Consolidated Net Income for the respective
period for which EBITDA is being determined) non-cash items
increasing Consolidated Net Income of the Borrower and the
Subsidiaries for such period (but excluding any such items (i) in
respect of which cash was received in a prior period or
11
will be received in a future period or
(ii) which represent the reversal of any accrual of, or cash
reserve for, anticipated cash charges in any prior
period).
For purposes of determining
EBITDA under this Agreement for any period that includes any of the
fiscal quarters ended June 30, 2004, September 30, 2004 and
December 31, 2004, EBITDA for such fiscal quarter shall be deemed
to be $54.291 million, $58.743 million and $25.474 million,
respectively. Such amounts reflect adjustments used in connection
with the calculation of “Pro Forma EBITDA” as set forth
on Schedule 1.01(b) .
“ environment
” shall mean ambient and indoor air, surface water and
groundwater (including potable water, navigable water and
wetlands), the land surface or subsurface strata, natural resources
such as flora and fauna, the workplace or as otherwise defined in
any Environmental Law.
“ Environmental
Laws ” shall mean all applicable laws (including common
law), rules, regulations, codes, ordinances, orders, decrees or
judgments, promulgated or entered into by any Governmental
Authority, relating in any way to the environment, preservation or
reclamation of natural resources, the generation, management,
Release or threatened Release of, or exposure to, any Hazardous
Material or to occupational health and safety matters (to the
extent relating to the environment or Hazardous
Materials).
“ Equity Commitment
Letter ” shall mean that certain Letter Agreement dated
November 18, 2004 from Apollo Management V, L.P. to
Holdings.
“ Equity
Financing ” shall mean, in connection with the
consummation of the Acquisition, the purchase or contribution by
the Fund and its Affiliates through a holding company, and by the
Family Investors and the Management Group, of cash equity to
Holdings in an aggregate amount of not less than $477.5 million,
which amount shall be contributed by Holdings to the Borrower as
cash common equity, on terms and conditions reasonably satisfactory
to the Administrative Agent.
“ Equity
Interests ” of any person shall mean any and all shares,
interests, rights to purchase, warrants, options, participation or
other equivalents of or interests in (however designated) equity of
such person, including any preferred stock, any limited or general
partnership interest and any limited liability company membership
interest.
“ ERISA ”
shall mean the Employee Retirement Income Security Act of 1974, as
the same may be amended from time to time.
“ ERISA
Affiliate ” shall mean any trade or business (whether or
not incorporated) that, together with Holdings, the Borrower or a
Subsidiary, is treated as a single employer under Section 414(b) or
(c) of the Code, or, solely for purposes of Section 302 of ERISA
and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.
“ ERISA Event
” shall mean (a) any Reportable Event; (b) the existence with
respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section
302 of ERISA), whether or not waived; (c) the filing pursuant to
Section 412(d) of the Code or Section 303(d) of ERISA of an
application for a waiver of the minimum funding standard with
respect to any Plan, the failure to make by its due date a required
installment under Section 412(m) of the Code with respect to any
Plan or the failure to make any required contribution to a
Multiemployer Plan; (d) the incurrence by Holdings, the Borrower, a
Subsidiary or any ERISA Affiliate of any liability under Title IV
of ERISA with respect to the termination of any Plan; (e) the
receipt by Holdings, the Borrower, a Subsidiary or any ERISA
Affiliate from the PBGC or a plan administrator of any notice
relating to an intention to terminate
12
any Plan or to appoint a trustee to
administer any Plan under Section 4042 of ERISA; (f) the incurrence
by Holdings, the Borrower, a Subsidiary or any ERISA Affiliate of
any liability with respect to the withdrawal or partial withdrawal
from any Plan or Multiemployer Plan; or (g) the receipt by
Holdings, the Borrower, a Subsidiary or any ERISA Affiliate of any
notice, or the receipt by any Multiemployer Plan from Holdings, the
Borrower, a Subsidiary or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a
determination that a Multiemployer Plan is, or is expected to be,
insolvent or in reorganization, within the meaning of Title IV of
ERISA.
“ Eurocurrency
Borrowing ” shall mean a Borrowing comprised of
Eurocurrency Loans.
“ Eurocurrency
Loan ” shall mean any Eurocurrency Term Loan or
Eurocurrency Revolving Loan.
“ Eurocurrency
Revolving Borrowing ” shall mean a Borrowing comprised of
Eurocurrency Revolving Loans.
“ Eurocurrency
Revolving Loan ” shall mean any Revolving Facility Loan
bearing interest at a rate determined by reference to the Adjusted
LIBO Rate in accordance with the provisions of Article
II.
“ Eurocurrency Term
Loan ” shall mean any Term Loan bearing interest at a
rate determined by reference to the Adjusted LIBO Rate in
accordance with the provisions of Article II.
“ Event of
Default ” shall have the meaning assigned to such term in
Section 7.01.
“ Excess Cash
Flow ” shall mean, with respect to the Borrower and its
Subsidiaries on a consolidated basis for any Excess Cash Flow
Period, EBITDA of the Borrower and its Subsidiaries on a
consolidated basis for such Excess Cash Flow Period, minus ,
without duplication,
(a) Debt Service for such
Excess Cash Flow Period,
(b) (i) the amount of any
voluntary prepayments of Term Loans during such Excess Cash Flow
Period, with such amount to be divided by the Required Percentage,
(ii) the amount of any permanent voluntary reductions during such
Excess Cash Flow Period of Revolving Facility Commitments to the
extent that an equal amount of Revolving Facility Loans was
simultaneously repaid, with such amount to be divided by the
Required Percentage and (iii) the amount of any voluntary
prepayment permitted hereunder of term Indebtedness during such
Excess Cash Flow Period to the extent not financed, or intended to
be financed, using the proceeds of the incurrence of Indebtedness,
so long as the amount of such prepayment is not already reflected
in Debt Service,
(c) (i) Capital Expenditures
by the Borrower and the Subsidiaries on a consolidated basis during
such Excess Cash Flow Period that are paid in cash and (ii) the
aggregate consideration paid in cash during the Excess Cash Flow
period in respect of Permitted Business Acquisitions and other
Investments permitted hereunder to the extent not financed with the
proceeds of Indebtedness other than Loans (less any amounts
received in respect thereof as a return of capital),
(d) Capital Expenditures that
the Borrower or any Subsidiary shall, during such Excess Cash Flow
Period, become obligated to make but that are not made during such
Excess Cash Flow Period, provided that Holdings shall deliver a
certificate to the Administrative Agent not later than 90 days
after the end of such Excess Cash Flow Period, signed by a
Responsible Officer of the Borrower and
13
certifying that such Capital
Expenditures and the delivery of the related equipment will be made
in the following Excess Cash Flow Period,
(e) Taxes paid in cash by
Holdings and its Subsidiaries on a consolidated basis during such
Excess Cash Flow Period or that will be paid within six months
after the close of such Excess Cash Flow Period ( provided
that any amount so deducted that will be paid after the close of
such Excess Cash Flow Period shall not be deducted again in a
subsequent Excess Cash Flow Period) and for which reserves have
been established, including income tax expense and withholding tax
expense incurred in connection with cross-border transactions
involving the Foreign Subsidiaries,
(f) an amount equal to any
increase in Working Capital of the Borrower and its Subsidiaries
for such Excess Cash Flow Period,
(g) cash expenditures made in
respect of Swap Agreements during such Excess Cash Flow Period, to
the extent not reflected in the computation of EBITDA or Interest
Expense,
(h) permitted dividends or
distributions or repurchases of its Equity Interests paid in cash
by the Borrower during such Excess Cash Flow Period and permitted
dividends paid by any Subsidiary to any person other than Holdings,
the Borrower or any of the Subsidiaries during such Excess Cash
Flow Period, in each case in accordance with Section 6.06 (other
than Section 6.06(e)(ii)),
(i) amounts paid in cash
during such Excess Cash Flow Period on account of (x) items that
were accounted for as noncash reductions of Net Income in
determining Consolidated Net Income or as noncash reductions of
Consolidated Net Income in determining EBITDA of the Borrower and
its Subsidiaries in a prior Excess Cash Flow Period and (y)
reserves or accruals established in purchase accounting,
(j) to the extent not
deducted in the computation of Net Proceeds in respect of any asset
disposition or condemnation giving rise thereto, the amount of any
mandatory prepayment of Indebtedness (other than Indebtedness
created hereunder or under any other Loan Document), together with
any interest, premium or penalties required to be paid (and
actually paid) in connection therewith, and
(k) the amount related to
items that were added to or not deducted from Net Income in
calculating Consolidated Net Income or were added to or not
deducted from Consolidated Net Income in calculating EBITDA to the
extent such items represented a cash payment (which had not reduced
Excess Cash Flow upon the accrual thereof in a prior Excess Cash
Flow Period), or an accrual for a cash payment, by the Borrower and
its Subsidiaries or did not represent cash received by the Borrower
and its Subsidiaries, in each case on a consolidated basis during
such Excess Cash Flow Period.
plus , without
duplication,
(a) an amount equal to any
decrease in Working Capital for such Excess Cash Flow
Period,
(b) all proceeds received
during such Excess Cash Flow Period of Capital Lease Obligations,
purchase money Indebtedness, Sale and Lease-Back Transactions
pursuant to Section 6.03 and any other Indebtedness, in each case
to the extent used to finance any Capital Expenditure (other than
Indebtedness under this Agreement to the extent there is no
corresponding deduction to Excess Cash Flow above in respect of the
use of such Borrowings),
14
(c) all amounts referred to
in clause (c) above to the extent funded with the proceeds of the
issuance of Equity Interests of, or capital contributions to,
Holdings after the Closing Date (to the extent not previously used
to prepay Indebtedness (other than Revolving Facility Loans or
Swingline Loans), make any investment or capital expenditure or
otherwise for any purpose resulting in a deduction to Excess Cash
Flow in any prior Excess Cash Flow Period) or any amount that would
have constituted Net Proceeds under clause (a) of the definition of
the term “Net Proceeds” if not so spent, in each case
to the extent there is a corresponding deduction from Excess Cash
Flow above,
(d) to the extent any
permitted Capital Expenditures referred to in clause (d) above and
the delivery of the related equipment do not occur in the following
Excess Cash Flow Period of the Borrower specified in the
certificate of the Borrower provided pursuant to clause (d) above,
the amount of such Capital Expenditures that were not so made in
such following Excess Cash Flow Period,
(e) cash payments received in
respect of Swap Agreements during such Excess Cash Flow Period to
the extent (i) not included in the computation of EBITDA or (ii)
such payments do not reduce Cash Interest Expense,
(f) any extraordinary or
nonrecurring gain realized in cash during such Excess Cash Flow
Period (except to the extent such gain consists of Net Proceeds
subject to Section 2.11(b)),
(g) to the extent deducted in
the computation of EBITDA, cash interest income, and
(h) the amount related to
items that were deducted from or not added to Net Income in
connection with calculating Consolidated Net Income or were
deducted from or not added to Consolidated Net Income in
calculating EBITDA to the extent either (x) such items represented
cash received by the Borrower or any Subsidiary or (y) such items
do not represent cash paid by the Borrower or any Subsidiary, in
each case on a consolidated basis during such Excess Cash Flow
Period.
“ Excess Cash Flow
Period ” shall mean (i) the period taken as one
accounting period beginning on January 1, 2006 and ending on
December 31, 2006 and (ii) each fiscal year of the Borrower ended
thereafter.
“ Exchange Act
” means the Securities Exchange Act of 1934, as
amended.
“ Excluded
Indebtedness ” shall mean all Indebtedness permitted to
be incurred under Section 6.01 (other than Section
6.01(u)).
“ Excluded Taxes
” shall mean, with respect to the Administrative Agent, any
Lender, any Issuing Bank or any other recipient of any payment to
be made by or on account of any obligation of the Borrower
hereunder, (a) income taxes imposed on (or measured by) its net
income (or franchise taxes imposed in lieu of net income taxes) by
the United States of America (or any state thereof) or the
jurisdiction under the laws of which such recipient is organized or
in which its principal office is located or, in the case of any
Lender, in which its applicable lending office is located or any
other jurisdiction as a result of such recipient engaging in a
trade or business in such jurisdiction for tax purposes, (b) any
branch profits tax or any similar tax that is imposed by any
jurisdiction described in clause (a) above and (c) in the case of a
Lender making a Loan to the Borrower, any withholding tax imposed
by the United States that (x) is in effect and would apply to
amounts payable hereunder to such Lender at the time such Lender
becomes a party to such Loan to the Borrower (or designates a new
lending office) except to the extent that such Lender (or its
assignor, if any) was entitled, at the time of designation of a new
lending office (or assignment), to receive additional amounts from
a Loan Party with respect to any withholding
15
tax pursuant to Section 2.17(a) or
Section 2.17(c) or (y) is attributable to such Lender’s
failure to comply with Section 2.17(e) or (f) with respect to such
Loan.
“ Existing Letter of
Credit ” shall mean each letter of credit previously
issued for the account of the Borrower or any Subsidiary by a
Lender or an Affiliate that is (a) outstanding on the Closing Date
and (b) listed on Schedule 2.05(a) .
“ Facility
” shall mean the respective facility and commitments utilized
in making Loans and credit extensions hereunder, it being
understood that as of the date of this Agreement there are two
Facilities, i.e. , the Term Facility and the Revolving
Facility.
“ Family
Investors ” shall mean the members of the Goodman family
and related trusts identified on Schedule 1.01(e)
.
“ Federal Funds
Effective Rate ” shall mean, for any day, the weighted
average (rounded upward, if necessary, to the next 1/100 of 1%) of
the rates on overnight Federal funds transactions with members of
the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal
Reserve Bank of New York, or, if such rate is not so published for
any day which is a Business Day, the average (rounded upward, if
necessary, to the next 1/100 of 1%) of the quotations for the day
of such transactions received by the Administrative Agent from
three Federal funds brokers of recognized standing selected by
it.
“ Fee Letter
” shall mean that certain Bank and Bridge Facilities Fee
Letter dated November 18, 2004 by and among Holdings, the Borrower,
the Agents and the Joint Lead Arrangers.
“ Fees ”
shall mean the Commitment Fees, the L/C Participation Fees, the
Issuing Bank Fees and the Administrative Agent Fees.
“ Financial
Officer ” of any person shall mean the Chief Financial
Officer, principal accounting officer, Treasurer, Assistant
Treasurer or Controller of such person.
“ Financial
Performance Covenants ” shall mean the covenants of the
Borrower set forth in Sections 6.11 and 6.12.
“ Foreign Lender
” shall mean any Lender that is organized under the laws of a
jurisdiction other than the United States of America. For purposes
of this definition, the United States of America, each State
thereof and the District of Columbia shall be deemed to constitute
a single jurisdiction.
“ Foreign Pledge
Agreement ” shall mean a pledge agreement with respect to
the Pledged Collateral that constitutes Equity Interests of a
“first tier” Foreign Subsidiary, in form and substance
reasonably satisfactory to the Administrative Agent;
provided that in no event shall more than 65% of the issued
and outstanding Equity Interests of such Foreign Subsidiary be
pledged to secure Obligations of the Borrower.
“ Foreign
Subsidiary ” shall mean any Subsidiary that is
incorporated or organized under the laws of any jurisdiction other
than the United States of America, any State thereof or the
District of Columbia.
“ Fund Affiliate
” shall mean (i) each Affiliate of the Fund that is neither a
“portfolio company” (which means a company actively
engaged in providing goods or services to unaffiliated
16
customers) nor a company controlled by a
“portfolio company” and (ii) any individual who is a
partner or employee of Apollo Management, L.P., Apollo Management
IV, L.P. or Apollo Management V, L.P.
“ Fund ”
shall have the meaning assigned to such term in the first recital
hereto.
“ GAAP ”
shall mean generally accepted accounting principles in effect from
time to time in the United States, applied on a consistent basis,
subject to the provisions of Section 1.02.
“ Governmental
Authority ” shall mean any federal, state, local or
foreign court or governmental agency, authority, instrumentality or
regulatory or legislative body.
“ Guarantee
” of or by any person (the “ guarantor ”)
shall mean (a) any obligation, contingent or otherwise, of the
guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any other
person (the “ primary obligor ”) in any manner,
whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (i) to purchase or pay (or advance
or supply funds for the purchase or payment of) such Indebtedness
or other obligation (whether arising by virtue of partnership
arrangements, by agreement to keep well, to purchase assets, goods,
securities or services, to take-or-pay or otherwise) or to purchase
(or to advance or supply funds for the purchase of) any security
for the payment of such Indebtedness or other obligation, (ii) to
purchase or lease property, securities or services for the purpose
of assuring the owner of such Indebtedness or other obligation of
the payment thereof, (iii) to maintain working capital, equity
capital or any other financial statement condition or liquidity of
the primary obligor so as to enable the primary obligor to pay such
Indebtedness or other obligation, (iv) entered into for the purpose
of assuring in any other manner the holders of such Indebtedness or
other obligation of the payment thereof or to protect such holders
against loss in respect thereof (in whole or in part) or (v) as an
account party in respect of any letter of credit or letter of
guaranty issued to support such Indebtedness or other obligation,
or (b) any Lien on any assets of the guarantor securing any
Indebtedness (or any existing right, contingent or otherwise, of
the holder of Indebtedness to be secured by such a Lien) of any
other person, whether or not such Indebtedness or other obligation
is assumed by the guarantor; provided , however ,
that the term “Guarantee” shall not include
endorsements for collection or deposit, in either case in the
ordinary course of business, or customary and reasonable indemnity
obligations in effect on the Closing Date or entered into in
connection with any acquisition or disposition of assets permitted
under this Agreement.
“ guarantor
” shall have the meaning assigned to such term in the
definition of the term “Guarantee.”
“ Hazardous
Materials ” shall mean all pollutants, contaminants,
wastes, chemicals, materials, substances and constituents,
including, without limitation, explosive or radioactive substances
or petroleum or petroleum distillates, asbestos or asbestos
containing materials, polychlorinated biphenyls or radon gas, of
any nature subject to regulation or which can give rise to
liability under any Environmental Law.
“ Holdings
” shall have the meaning assigned to such term in the
introductory paragraph of this Agreement.
“ Indebtedness
” of any person shall mean, without duplication, (a) all
obligations of such person for borrowed money, (b) all obligations
of such person evidenced by bonds, debentures, notes or similar
instruments, (c) all obligations of such person under conditional
sale or other title retention agreements relating to property or
assets purchased by such person, (d) all obligations of such person
issued or assumed as the deferred purchase price of property or
services (other than current trade liabilities and current
intercompany liabilities (but not any refinancings, extensions,
renewals or
17
replacements thereof) incurred in the
ordinary course of business and maturing within 365 days after the
incurrence thereof), to the extent that the same would be required
to be shown as a long term liability on a balance sheet prepared in
accordance with GAAP, (e) all Guarantees by such person of
Indebtedness of others, (f) all Capital Lease Obligations of such
person, (g) all payments that such person would have to make in the
event of an early termination, on the date Indebtedness of such
person is being determined, in respect of outstanding Swap
Agreements, (h) the principal component of all obligations,
contingent or otherwise, of such person as an account party in
respect of letters of credit and (i) the principal component of all
obligations of such person in respect of bankers’
acceptances. The Indebtedness of any person shall include the
Indebtedness of any partnership in which such person is a general
partner, other than to the extent that the instrument or agreement
evidencing such Indebtedness expressly limits the liability of such
person in respect thereof. To the extent not otherwise included,
Indebtedness shall include the amount of any Receivables Net
Investment.
“ Indemnified
Taxes ” shall mean all Taxes other than Excluded
Taxes.
“ Indemnitee
” shall have the meaning assigned to such term in Section
9.05(b).
“ Information
” shall have the meaning assigned to such term in Section
3.14(a).
“ Information
Memorandum ” shall mean the Confidential Information
Memorandum dated December, 2004, as modified or supplemented prior
to the Closing Date.
“ Interest Coverage
Ratio ” shall have the meaning assigned to such term in
Section 6.11.
“ Interest Election
Request ” shall mean a request by the Borrower to convert
or continue a Term Borrowing or Revolving Borrowing in accordance
with Section 2.07.
“ Interest
Expense ” shall mean, with respect to any person for any
period, the sum of (a) gross interest expense of such person for
such period on a consolidated basis, including (i) the amortization
of debt discounts, (ii) the amortization of all fees (including
fees with respect to Swap Agreements) payable in connection with
the incurrence of Indebtedness to the extent included in interest
expense and (iii) the portion of any payments or accruals with
respect to Capital Lease Obligations allocable to interest expense,
(b) capitalized interest of such person and (c) commissions,
discounts, yield and other fees and charges incurred in connection
with any Permitted Receivables Financing which are payable to any
person other than the Borrower or a Subsidiary Loan Party. For
purposes of the foregoing, gross interest expense shall be
determined after giving effect to any net payments made or received
and costs incurred by the Borrower and the Subsidiaries with
respect to Swap Agreements.
“ Interest Payment
Date ” shall mean, (a) with respect to any Eurocurrency
Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the case of a
Eurocurrency Borrowing with an Interest Period of more than three
months’ duration, each day that would have been an Interest
Payment Date had successive Interest Periods of three months’
duration been applicable to such Borrowing and, in addition, the
date of any refinancing or conversion of such Borrowing with or to
a Borrowing of a different Type, (b) with respect to any ABR Loan,
the last day of each calendar quarter and (c) with respect to any
Swingline Loan, the day that such Swingline Loan is required to be
repaid pursuant to Section 2.09(a).
“ Interest
Period ” shall mean, as to any Eurocurrency Borrowing,
the period commencing on the date of such Borrowing or on the last
day of the immediately preceding Interest Period applicable to such
Borrowing, as applicable, and ending on the numerically
corresponding day (or, if there is no numerically corresponding
day, on the last day) in the calendar month that is 1, 2, 3 or 6
months thereafter
18
(or 9 or 12 months, if at the time of
the relevant Borrowing, all Lenders make interest periods of such
length available), as the Borrower may elect, or the date any
Eurocurrency Borrowing is converted to an ABR Borrowing in
accordance with Section 2.07 or repaid or prepaid in accordance
with Section 2.09, 2.10 or 2.11; provided , unless the
Administrative Agent shall otherwise agree, that with respect to
periods commencing prior to the 31st day after the Closing Date,
the Borrower shall only be permitted to request Interest Periods of
seven days; provided , however , that if any Interest
Period would end on a day other than a Business Day, such Interest
Period shall be extended to the next succeeding Business Day unless
such next succeeding Business Day would fall in the next calendar
month, in which case such Interest Period shall end on the next
preceding Business Day. Interest shall accrue from and including
the first day of an Interest Period to but excluding the last day
of such Interest Period.
“ Investment
” shall have the meaning assigned to such term in Section
6.04.
“ Issuing Bank
” shall mean JPMorgan Chase Bank, N.A. and each other Issuing
Bank designated pursuant to Section 2.05(k), in each case in its
capacity as an issuer of Letters of Credit hereunder, and its
successors in such capacity as provided in Section 2.05(i) and,
solely with respect to an Existing Letter of Credit (and any
amendment, renewal or extension thereof in accordance with this
Agreement), the Lender that issued such Existing Letter of Credit.
An Issuing Bank may, in its discretion, arrange for one or more
Letters of Credit to be issued by Affiliates of such Issuing Bank,
in which case the term “Issuing Bank” shall include any
such Affiliate with respect to Letters of Credit issued by such
Affiliate.
“ Issuing Bank
Fees ” shall have the meaning assigned to such term in
Section 2.12(b).
“ Joint Lead
Arrangers ” shall have the meaning assigned to such term
in the introductory paragraph of this Agreement.
“ L/C
Disbursement ” shall mean a payment or disbursement made
by an Issuing Bank pursuant to a Letter of Credit.
“ L/C Participation
Fee ” shall have the meaning assigned such term in
Section 2.12(b).
“ Lender ”
shall mean each financial institution listed on Schedule
2.01 , as well as any person that becomes a
“Lender” hereunder pursuant to Section 9.04.
“ Lender Default
” shall mean (i) the refusal (which has not been retracted)
of a Lender to make available its portion of any Borrowing, to
acquire participations in a Swingline Loan pursuant to Section 2.04
or to fund its portion of any unreimbursed payment under Section
2.05(e), or (ii) a Lender having notified in writing the Borrower
and/or the Administrative Agent that it does not intend to comply
with its obligations under Section 2.04, 2.05 or 2.06.
“ Lending Office
” shall mean, as to any Lender, the applicable branch, office
or Affiliate of such Lender designated by such Lender to make
Loans.
“ Letter of
Credit ” shall mean any letter of credit (including each
Existing Letter of Credit) issued pursuant to Section
2.05.
“ LIBO Rate
” shall mean, with respect to any Eurocurrency Borrowing for
any Interest Period, the rate per annum determined by the
Administrative Agent at approximately 11:00 a.m., London time, on
the Quotation Day for such Interest Period by reference to the
British Bankers’ Association Interest Settlement Rates for
deposits in the currency of such Borrowing (as reflected on the
applicable
19
Telerate screen page), for a period
equal to such Interest Period; provided that, to the extent
that an interest rate is not ascertainable pursuant to the
foregoing provisions of this definition, the “LIBO
Rate” shall be the average (rounded upward, if necessary, to
the next 1/100 of 1%) of the respective interest rates per annum at
which deposits in the currency of such Borrowing are offered for
such Interest Period to major banks in the London interbank market
by JPMorgan Chase Bank, N.A. at approximately 11:00 a.m., London
time, on the Quotation Day for such Interest Period.
“ Lien ”
shall mean, with respect to any asset, (a) any mortgage, deed of
trust, lien, hypothecation, pledge, encumbrance, charge or security
interest in or on such asset, (b) the interest of a vendor or a
lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially
the same economic effect as any of the foregoing) relating to such
asset and (c) in the case of securities (other than securities
representing an interest in a joint venture that is not a
Subsidiary), any purchase option, call or similar right of a third
party with respect to such securities to the extent that any such
right is intended to have an effect equivalent to that of a
security interest in such securities.
“ Loan Documents
” shall mean this Agreement, the Letters of Credit, the
Security Documents and any Note issued under Section 2.09(e), and
solely for the purposes of Sections 4.02(m) and 7.01(c) hereof, the
Fee Letter.
“ Loan Parties
” shall mean Holdings, the Borrower and the Subsidiary Loan
Parties.
“ Loans ”
shall mean the Term Loans, the Revolving Facility Loans and the
Swingline Loans.
“ Local Time
” shall mean New York City time.
“ Majority
Lenders ” of any Facility shall mean, at any time,
Lenders under such Facility having Loans and unused Commitments
representing more than 50% of the sum of all Loans outstanding
under such Facility and unused Commitments under such Facility at
such time.
“ Management
Group ” means the group consisting of the directors,
executive officers and other management personnel of the Borrower
and Holdings, as the case may be, on the Closing Date together with
(a) any new directors whose election by such boards of directors or
whose nomination for election by the shareholders of the Borrower
or Holdings, as the case may be, was approved by a vote of a
majority of the directors of the Borrower or Holdings, as the case
may be, then still in office who were either directors on the
Closing Date or whose election or nomination was previously so
approved and (b) executive officers and other management personnel
of the Borrower or Holdings, as the case may be, hired at a time
when the directors on the Closing Date together with the directors
so approved constituted a majority of the directors of the Borrower
or Holdings, as the case may be.
“ Margin Stock
” shall have the meaning assigned to such term in Regulation
U.
“ Material Adverse
Effect ” shall mean a material adverse effect on the
business, property, operations or condition of the Borrower and its
Subsidiaries, taken as a whole.
“ Material
Indebtedness ” shall mean Indebtedness (other than Loans
and Letters of Credit) of any one or more of Holdings, the Borrower
or any Subsidiary in an aggregate principal amount exceeding $15
million.
“ Maximum Rate
” shall have the meaning assigned to such term in Section
9.09.
20
“ Moody’s
” shall mean Moody’s Investors Service, Inc.
“ Mortgaged
Properties ” shall mean the owned real properties of the
Loan Parties set forth on Schedule 1.01(c) and each
additional real property encumbered by a Mortgage pursuant to
Section 5.10 (other than Assets Targeted for Sale).
“ Mortgages
” shall mean the mortgages, deeds of trust, deeds to secure
debt, assignments of leases and rents, and other security documents
delivered pursuant to Section 5.10, as amended, supplemented or
otherwise modified from time to time, with respect to Mortgaged
Properties, each substantially in the form of Exhibit D ,
with such changes as consented to by the Administrative Agent as
evidenced by its execution of any Mortgage containing any such
change.
“ Multiemployer
Plan ” shall mean a multiemployer plan as defined in
Section 4001(a)(3) of ERISA to which the Borrower, Holdings or any
Subsidiary or any ERISA Affiliate (other than one considered an
ERISA Affiliate only pursuant to subsection (m) or (o) of Code
Section 414) is making or accruing an obligation to make
contributions, or has within any of the preceding six plan years
made or accrued an obligation to make contributions.
“ Net Income
” shall mean, with respect to any person, the net income
(loss) of such person, determined in accordance with GAAP and
before any reduction in respect of preferred stock
dividends.
“ Net Proceeds
” shall mean:
(a) 100% of the cash proceeds
actually received by Holdings, the Borrower or any of their
Subsidiaries (including any cash payments received by way of
deferred payment of principal pursuant to a note or installment
receivable or purchase price adjustment receivable or otherwise and
including casualty insurance settlements and condemnation awards,
but only as and when received) from any loss, damage, destruction
or condemnation of, or any sale, transfer or other disposition
(including any sale and leaseback of assets and any mortgage or
lease of real property) to any person of any asset or assets of
Holdings, the Borrower or any Subsidiary (other than those pursuant
to Section 6.05(a), (b), (c), (d) (except as contemplated by
Section 6.03(ii)(b)), (e), (f), (h), (i), (j) or (l)), net of (i)
attorneys’ fees, accountants’ fees, investment banking
fees, survey costs, title insurance premiums, and related search
and recording charges, transfer taxes, deed or mortgage recording
taxes, required debt payments and required payments of other
obligations relating to the applicable asset (other than pursuant
hereto or pursuant to any Senior Notes, Senior Subordinated Notes
or Permitted Debt Securities or any Permitted Refinancing
Indebtedness in respect thereof), other customary expenses and
brokerage, consultant and other customary fees actually incurred in
connection therewith and (ii) Taxes paid or payable as a result
thereof, provided that, except in the case of the sale,
transfer or other disposition of an asset or group of related
assets resulting in Net Proceeds in excess of $15 million, if no
Event of Default exists and Holdings or the Borrower shall deliver
a certificate of a Responsible Officer of Holdings or the Borrower
to the Administrative Agent promptly following receipt of any such
proceeds setting forth Holdings’ or the Borrower’s
intention to use any portion of such proceeds, to acquire,
maintain, develop, construct, improve, upgrade or repair assets
useful in the business of Holdings, the Borrower and the
Subsidiaries or to make investments in Permitted Business
Acquisitions, in each case within 12 months of such receipt, such
portion of such proceeds shall not constitute Net Proceeds except
to the extent not so used or not contractually committed to be so
used within such 12-month period (it being understood that if any
portion of such proceeds are not so used within such 12-month
period because such amount is contractually committed to be used
and subsequent to such date such contract is terminated or expires
without such portion being so used, such remaining portion shall
constitute Net Proceeds as of the date of such termination or
expiration without giving effect to this proviso), and
provided , further , that (x) no
21
proceeds realized in a single
transaction or series of related transactions shall constitute Net
Proceeds unless such proceeds shall exceed $2.5 million and (y) no
proceeds shall constitute Net Proceeds in any fiscal year until the
aggregate amount of all such proceeds in such fiscal year shall
exceed $10 million (excluding for purposes of such calculation, Net
Proceeds from the sale of any Assets Targeted for Sale),
and
(b) 100% of the cash proceeds
from the incurrence, issuance or sale by Holdings, the Borrower or
any Subsidiary of any Indebtedness (other than Excluded
Indebtedness), net of all taxes and fees (including investment
banking fees), commissions, costs and other expenses, in each case
incurred in connection with such issuance or sale.
For purposes of calculating the amount
of Net Proceeds, fees, commissions and other costs and expenses
payable to Holdings or the Borrower or any Affiliate of either of
them shall be disregarded, except for financial advisory fees
customary in type and amount paid to Affiliates of the
Fund.
“ Non-Consenting
Lender ” shall have the meaning assigned to such term in
Section 2.19(c).
“ Note ”
shall have the meaning assigned to such term in Section
2.09(e).
“ Obligations
” shall mean all amounts owing to the Administrative Agent or
any Lender pursuant to the terms of this Agreement or any other
Loan Document.
“ Offering
Memorandum ” shall mean the Offering Memorandum, dated
December 15, 2004, in respect of the Senior Subordinated Notes and
the Senior Notes.
“ Other Taxes
” shall mean any and all present or future stamp or
documentary taxes or any other excise or property taxes, charges or
similar levies arising from any payment made hereunder or from the
execution, delivery or enforcement of, or otherwise with respect
to, the Loan Documents, and any and all interest and penalties
related thereto.
“ Participant
” shall have the meaning assigned to such term in Section
9.04(c).
“ PBGC ”
shall mean the Pension Benefit Guaranty Corporation referred to and
defined in ERISA.
“ Perfection
Certificate ” shall mean a certificate in the form of
Exhibit II to the Collateral Agreement or any other form
approved by the Administrative Agent.
“ Permitted Business
Acquisition ” shall mean any acquisition of all or
substantially all the assets of, or all the Equity Interests (other
than directors’ qualifying shares) in, a person or division
or line of business of a person (or any subsequent investment made
in a person, division or line of business previously acquired in a
Permitted Business Acquisition) if (a) such acquisition was not
preceded by, or effected pursuant to, an unsolicited or hostile
offer by the acquirer or an Affiliate of the acquirer and (b)
immediately after giving effect thereto: (i) no Event of Default
shall have occurred and be continuing or would result therefrom;
(ii) all transactions related thereto shall be consummated in
accordance with applicable laws; (iii) (A) the Borrower and its
Subsidiaries shall be in compliance, on a Pro Forma Basis after
giving effect to such acquisition or formation, with the Financial
Performance Covenants recomputed as at the last day of the most
recently ended fiscal quarter of the Borrower and its Subsidiaries,
and the Borrower shall have delivered to the Administrative Agent a
certificate of a Responsible Officer of the Borrower to such
effect, together with all relevant financial information
for
22
such Subsidiary or assets, and (B) any
acquired or newly formed Subsidiary shall not be liable for any
Indebtedness (except for Indebtedness permitted by Section 6.01);
and (iv) the Available Unused Commitments shall be no less than $25
million.
“ Permitted Cure
Security ” shall mean an equity security of Holdings
having no mandatory redemption, repurchase or similar requirements
prior to 91 days after the Term Facility Maturity Date, and upon
which all dividends or distributions (if any) shall, prior to 91
days after the Term Facility Maturity Date, be payable solely in
additional shares of such equity security.
“ Permitted Debt
Securities ” shall mean (a) unsecured senior subordinated
notes issued by the Borrower and (b) unsecured senior notes, (i)
the terms of which (1) do not provide for any scheduled repayment,
mandatory redemption or sinking fund obligation prior to the date
that is six months after the Term Facility Maturity Date and (2) in
the case of unsecured senior subordinated notes, provide for
subordination of payments in respect of such notes to the
Obligations and guarantees thereof under the Loan Documents to
substantially the same extent as the Senior Subordinated Note
Indenture, (ii) the covenants, events of default, Subsidiary
guarantees and other terms of which (other than interest rate and
redemption premiums), taken as a whole, are not more restrictive to
the Borrower and its Subsidiaries than those in the Senior
Subordinated Notes and the Senior Notes, respectively, (iii) in
respect of which no Subsidiary of the Borrower that is not an
obligor under the Loan Documents is an obligor and (iv) the
proceeds of which are used to finance a Permitted Business
Acquisition or to pay or prepay Term Loans or to reduce the
Revolving Facility Commitments hereunder; provided that no
unsecured senior notes shall be issued by the Borrower in order to
finance a Permitted Business Acquisition if, after giving effect to
such Permitted Business Acquisition, the Total Senior Leverage
Ratio is greater than 4:25 to 1:00.
“ Permitted
Holder ” shall mean each of (i) the Fund and the Fund
Affiliates, (ii) the Management Group and (iii) the Family
Investors.
“ Permitted
Investments ” shall mean:
(a) direct obligations of the
United States of America or any member of the European Union or any
agency thereof or obligations guaranteed by the United States of
America or any member of the European Union or any agency thereof,
in each case with maturities not exceeding two years;
(b) time deposit accounts,
certificates of deposit and money market deposits maturing within
180 days of the date of acquisition thereof issued by a bank or
trust company that is organized under the laws of the United States
of America, any state thereof or any foreign country recognized by
the United States of America having capital, surplus and undivided
profits in excess of $250 million and whose long-term debt, or
whose parent holding company’s long-term debt, is rated A (or
such similar equivalent rating or higher by at least one nationally
recognized statistical rating organization (as defined in Rule 436
under the Securities Act);
(c) repurchase obligations
with a term of not more than 180 days for underlying securities of
the types described in clause (a) above entered into with a bank
meeting the qualifications described in clause (b)
above;
(d) commercial paper,
maturing not more than one year after the date of acquisition,
issued by a corporation (other than an Affiliate of any Borrower)
organized and in existence under the laws of the United States of
America or any foreign country recognized by the United States of
America with a rating at the time as of which any investment
therein is made of P-1 (or higher) according to Moody’s, or
A-1 (or higher) according to S&P;
23
(e) securities with
maturities of two years or less from the date of acquisition issued
or fully guaranteed by any State, commonwealth or territory of the
United States of America, or by any political subdivision or taxing
authority thereof, and rated at least A by S&P or A by
Moody’s;
(f) shares of mutual funds
whose investment guidelines restrict 95% of such funds’
investments to those satisfying the provisions of clauses (a)
through (e) above;
(g) money market funds that
(i) comply with the criteria set forth in Rule 2a-7 under the
Investment Company Act of 1940, (ii) are rated AAA by S&P and
Aaa by Moody’s and (iii) have portfolio assets of at least
$5,000.0 million; and
(h) time deposit accounts,
certificates of deposit and money market deposits in an aggregate
face amount not in excess of 1/2 of 1% of the total assets of the
Borrower and the Subsidiaries, on a consolidated basis, as of the
end of the Borrower’s most recently completed fiscal
year.
“ Permitted
Receivables Documents ” shall mean all documents and
agreements evidencing, relating to or otherwise governing a
Permitted Receivables Financing.
“ Permitted
Receivables Financing ” shall mean one or more
transactions pursuant to which (i) Receivables Assets or interests
therein are sold to or financed by one or more Special Purpose
Receivables Subsidiaries, and (ii) such Special Purpose Receivables
Subsidiaries finance their acquisition of such Receivables Assets
or interests therein, or the financing thereof, by selling or
borrowing against such Receivables Assets; provided that (A)
recourse to the Borrower or any Subsidiary (other than the Special
Purpose Receivables Subsidiaries) and any obligations or agreements
of the Borrower or any Subsidiary (other than the Special Purpose
Receivables Subsidiaries) in connection with such transactions
shall be limited to the extent customary for similar transactions
in the applicable jurisdictions (including, to the extent
applicable, in a manner consistent with the delivery of a
“true sale”/”absolute transfer” opinion
with respect to any transfer by the Borrower or any Subsidiary
(other than a Special Purpose Receivables Subsidiary), and (B) the
aggregate Receivables Net Investment since the Closing Date shall
not exceed $100 million at any time.
“ Permitted
Refinancing Indebtedness ” shall mean any Indebtedness
issued in exchange for, or the net proceeds of which are used to
extend, refinance, renew, replace, defease or refund (collectively,
to “ Refinance ”), the Indebtedness being
Refinanced (or previous refinancings thereof constituting Permitted
Refinancing Indebtedness); provided that (a) the principal
amount (or accreted value, if applicable) of such Permitted
Refinancing Indebtedness does not exceed the principal amount (or
accreted value, if applicable) of the Indebtedness so Refinanced
(plus unpaid accrued interest and premium thereon and underwriting
discounts, fees, commissions and expenses), (b) the average life to
maturity of such Permitted Refinancing Indebtedness is greater than
or equal to that of the Indebtedness being Refinanced, (c) if the
Indebtedness being Refinanced is subordinated in right of payment
to the Obligations under this Agreement, such Permitted Refinancing
Indebtedness shall be subordinated in right of payment to such
Obligations on terms at least as favorable to the Lenders as those
contained in the documentation governing the Indebtedness being
Refinanced, (d) no Permitted Refinancing Indebtedness shall have
different obligors, or greater guarantees or security, than the
Indebtedness being Refinanced and (e) if the Indebtedness being
Refinanced is secured by any collateral (whether equally and
ratably with, or junior to, the Secured Parties or otherwise), such
Permitted Refinancing Indebtedness may be secured by such
collateral (including in respect of working capital facilities of
Foreign Subsidiaries otherwise permitted under this Agreement only,
any collateral pursuant to after-acquired property clauses to the
extent any such collateral secured the Indebtedness being
Refinanced) on terms no less favorable to the Secured Parties than
those contained in the documentation governing the Indebtedness
being Refinanced; and provided further , that with
respect to a Refinancing of (x) the Senior
24
Subordinated Notes or Permitted Debt
Securities that are subordinated, such Permitted Refinancing
Indebtedness shall (i) be subordinated to the guarantee by Holdings
and the Subsidiary Loan Parties of the Facilities and (ii) be
otherwise on terms not materially less favorable to the Lenders
than those contained in the documentation governing the
Indebtedness being refinanced and (y) Permitted Debt Securities,
such Permitted Refinancing Indebtedness shall meet the requirements
of clauses (i), (ii) and (iii) of the definition of
“Permitted Debt Securities.”
“ person ”
shall mean any natural person, corporation, business trust, joint
venture, association, company, partnership, limited liability
company or government, individual or family trusts, or any agency
or political subdivision thereof.
“ Plan ”
shall mean any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA
or Section 412 of the Code and in respect of which Holdings, the
Borrower, any Subsidiary or any ERISA Affiliate is (or, if such
plan were terminated, would under Section 4069 of ERISA be deemed
to be) an “employer” as defined in Section 3(5) of
ERISA.
“ Platform
” shall have the meaning assigned to such term in Section
9.17(b).
“ Pledged
Collateral ” shall have the meaning assigned to such term
in the Collateral Agreement.
“ Pricing Grid
” shall mean, (a) with respect to the Revolving Facility
Loans, the table set forth below:
|
|
|
|
|
|
|
|
Consolidated Leverage
Ratio
|
|
Applicable Margin for
ABR Loans
|
|
|
Applicable Margin for
Eurocurrency Loans
|
|
|
Greater than or equal to 5.50 to
1.0
|
|
1.50 |
% |
|
2.50 |
% |
|
Less than 5.50 to 1.0, but greater than
or equal to 4.75 to 1.00
|
|
1.25 |
% |
|
2.25 |
% |
|
Less than 4.75 to 1.0
|
|
1.00 |
% |
|
2.00 |
% |
and (b) with respect to the
Term Loans, the table set forth below:
|
|
|
|
|
|
|
|
Consolidated Leverage
Ratio
|
|
Applicable Margin for
ABR Loans
|
|
|
Applicable Margin for
Eurocurrency Loans
|
|
|
Greater than or equal to 4.75 to
1.0
|
|
1.25 |
% |
|
2.25 |
% |
|
Less than 4.75 to 1.0
|
|
1.00 |
% |
|
2.00 |
% |
For the purposes of the
Pricing Grid, changes in the Applicable Margin resulting from
changes in the Consolidated Leverage Ratio shall become effective
on the date (the “ Adjustment Date ”) that is
three Business Days after the date on which financial statements
are delivered to the Lenders pursuant to Section 5.04 and shall
remain in effect until the next change to be effected pursuant to
this paragraph. If any financial statements referred to above are
not delivered within the time periods specified
25
in Section 5.04, then, until the date
that is three Business Days after the date on which such financial
statements are delivered, the highest rate set forth in each column
of the Pricing Grid shall apply. In addition, at all times while an
Event of Default shall have occurred and be continuing, the highest
rate set forth in each column of the Pricing Grid shall apply. Each
determination of the Consolidated Leverage Ratio pursuant to the
Pricing Grid shall be made in a manner consistent with the
determination thereof pursuant to Section 6.12.
“ primary
obligor ” shall have the meaning given such term in the
definition of the term “Guarantee.”
“ Pro Forma
Basis ” shall mean, as to any person, for any events as
described below that occur subsequent to the commencement of a
period for which the financial effect of such events is being
calculated, and giving effect to the events for which such
calculation is being made, such calculation as will give pro
forma effect to such events as if such events occurred on
the first day of the four consecutive fiscal quarter period ended
on or before the occurrence of such event (the “ Reference
Period ”): (i) in making any determination of EBITDA,
pro forma effect shall be given to any asset
disposition and to any asset acquisition (or any similar
transaction or transactions that require a waiver or consent of the
Required Lenders pursuant to Section 6.04 or 6.05), in each case
that occurred during the Reference Period (or, in the case of
determinations made pursuant to the definition of the term
“Permitted Business Acquisition,” occurring during the
Reference Period or thereafter and through and including the date
upon which the respective Permitted Business Acquisition is
consummated), (ii) in making any determination on a Pro Forma
Basis, (x) all Indebtedness (including Indebtedness incurred or
assumed and for which the financial effect is being calculated,
whether incurred under this Agreement or otherwise, but excluding
normal fluctuations in revolving Indebtedness incurred for working
capital purposes and amounts outstanding under any Permitted
Receivables Financing, in each case not to finance any acquisition)
incurred or permanently repaid during the Reference Period (or, in
the case of determinations made pursuant to the definition of the
term “Permitted Business Acquisition,” occurring during
the Reference Period or thereafter and through and including the
date upon which the respective Permitted Business Acquisition is
consummated) shall be deemed to have been incurred or repaid at the
beginning of such period and (y) Interest Expense of such person
attributable to interest on any Indebtedness, for which pro forma
effect is being given as provided in preceding clause (x), bearing
floating interest rates shall be computed on a pro forma basis as
if the rates that would have been in effect during the period for
which pro forma effect is being given had been actually in effect
during such periods and (iii) the Subsidiary Redesignation, if any,
then being designated as well as any other Subsidiary Redesignation
after the first day of the relevant Reference Period and on or
prior to the date of the respective Subsidiary Redesignation then
being designated.
Pro forma
calculations made pursuant to the definition of the term “Pro
Forma Basis” shall be determined in good faith by a
Responsible Officer of the Borrower and, for any fiscal period
ending on or prior to the first anniversary of an asset acquisition
or asset disposition (or any similar transaction or transactions
that require a waiver or consent of the Required Lenders pursuant
to Section 6.04 or 6.05), may include adjustments to reflect
operating expense reductions and other operating improvements or
synergies reasonably expected to result from such asset
acquisition, asset disposition or other similar transaction, as
follows: (x) for purposes of determining the Applicable Margin,
such adjustments shall reflect demonstrable operating expense
reductions and other demonstrable operating improvements or
synergies that would be includable in pro forma
financial statements prepared in accordance with Regulation S-X
under the Securities Act; and (y) for purposes of determining
compliance with the Financial Performance Covenants and achievement
of other financial measures provided for herein, such adjustments
may reflect additional operating expense reductions and other
additional operating improvements and synergies that would not be
includable in pro forma financial statements prepared
in accordance with Regulation S-X but that are reasonably
anticipated by the Borrower to be
26
realizable in connection with such asset
acquisition or asset disposition (or any similar transaction or
transactions that require a waiver or consent of the Required
Lenders pursuant to Section 6.04 or 6.05) in the 12-month period
following the consummation of such asset acquisition or asset
disposition (or such other similar transaction), are estimated on a
good faith basis by the Borrower, and are reasonably satisfactory
to the Administrative Agent. The Borrower shall deliver to the
Administrative Agent a certificate of a Financial Officer of the
Borrower setting forth such demonstrable or additional operating
expense reductions and other operating improvements or synergies
and information and calculations supporting them in reasonable
detail.
“ Pro Forma
EBITDA ” shall have the meaning assigned to such term in
Section 3.05(a).
“ Pro Forma
Financial Statements ” shall have the meaning assigned to
such term in Section 3.05(a).
“ Projections
” shall mean the projections of Holdings, the Borrower and
the Subsidiaries included in the Information Memorandum and any
other projections and any forward-looking statements (including
statements with respect to booked business) of such entities
furnished to the Lenders or the Administrative Agent by or on
behalf of Holdings, the Borrower or any of the Subsidiaries prior
to the Closing Date.
“ Qualified IPO
” shall mean an underwritten public offering of the Equity
Interests of Holdings which generates cash proceeds to Holdings of
at least $100.0 million.
“ Quotation Day
” shall mean, with respect to any Eurocurrency Borrowing and
any Interest Period, the day on which it is market practice in the
relevant interbank market for prime banks to give quotations for
deposits in the currency of such Borrowing for delivery on the
first day of such Interest Period. If such quotations would
normally be given by prime banks on more than one day, the
Quotation Day will be the last of such days.
“ Receivables
Assets ” shall mean accounts receivable (including any
bills of exchange) and related assets and property from time to
time originated, acquired or otherwise owned by the Borrower or any
Subsidiary.
“ Receivables Net
Investment ” shall mean the aggregate cash amount paid by
the lenders or purchasers under any Permitted Receivables Financing
in connection with their purchase of, or the making of loans
secured by, Receivables Assets or interests therein, as the same
may be reduced from time to time by collections with respect to
such Receivables Assets or otherwise in accordance with the terms
of the Permitted Receivables Documents (but excluding any such
collections used to make payments of items included in clause (c)
of the definition of Interest Expense); provided ,
however , that if all or any part of such Receivables Net
Investment shall have been reduced by application of any
distribution and thereafter such distribution is rescinded or must
otherwise be returned for any reason, such Receivables Net
Investment shall be increased by the amount of such distribution,
all as though such distribution had not been made.
“ Reference
Period ” shall have the meaning assigned to such term in
the definition of the term “Pro Forma
Basis.”
“ Refinance
” shall have the meaning assigned to such term in the
definition of the term “Permitted Refinancing
Indebtedness,” and “ Refinanced ” shall
have a meaning correlative thereto.
“ Register
” shall have the meaning assigned to such term in Section
9.04(b).
27
“ Regulation U
” shall mean Regulation U of the Board as from time to time
in effect and all official rulings and interpretations thereunder
or thereof.
“ Regulation X
” shall mean Regulation X of the Board as from time to time
in effect and all official rulings and interpretations thereunder
or thereof.
“ Related
Parties ” shall mean, with respect to any specified
person, such person’s Affiliates and the respective
directors, trustees, officers, employees, agents and advisors of
such person and such person’s Affiliates.
“ Release
” shall mean any spilling, leaking, seepage, pumping,
pouring, emitting, emptying, discharging, injecting, escaping,
leaching, dumping, disposing, depositing, emanating or migrating
in, into, onto or through the environment.
“ Remaining Present
Value ” shall mean, as of any date with respect to any
lease, the present value as of such date of the scheduled future
lease payments with respect to such lease, determined with a
discount rate equal to a market rate of interest for such lease
reasonably determined at the time such lease was entered
into.
“ Reportable
Event ” shall mean any reportable event as defined in
Section 4043(c) of ERISA or the regulations issued thereunder,
other than those events as to which the 30-day notice period
referred to in Section 4043(c) of ERISA has been waived, with
respect to a Plan (other than a Plan maintained by an ERISA
Affiliate that is considered an ERISA Affiliate only pursuant to
subsection (m) or (o) of Section 414 of the Code).
“ Required
Lenders ” shall mean, at any time, Lenders having (a)
Loans (other than Swingline Loans) outstanding, (b) Revolving L/C
Exposures, (c) Swingline Exposures, and (d) Available Unused
Commitments, that taken together, represent more than 50% of the
sum of (w) all Loans (other than Swingline Loans) outstanding, (x)
Revolving L/C Exposures, (y) Swingline Exposures, and (z) the total
Available Unused Commitments at such time. The Loans, Revolving L/C
Exposures, Swingline Exposures and Available Unused Commitment of
any Defaulting Lender shall be disregarded in determining Required
Lenders at any time.
“ Required
Percentage ” shall mean, with respect to an Excess Cash
Flow Period, 50%, provided that, commencing with the fiscal
year 2006, (a) if the Senior Secured Leverage Ratio at the end of
such Excess Cash Flow Period is greater than 1.50:1.00 but less
than or equal to 2.00:1.00, such percentage shall be 25%, and (b)
if the Senior Secured Leverage Ratio is at the end of such Excess
Cash Flow Period is less than or equal to 1.50:1.00, such
percentage shall be 0%.
“ Responsible
Officer ” of any person shall mean any executive officer
or Financial Officer of such person and any other officer or
similar official thereof responsible for the administration of the
obligations of such person in respect of this Agreement.
“ Revolving
Facility ” shall mean the Revolving Facility Commitments
and the extensions of credit made hereunder by the Revolving
Facility Lenders.
“ Revolving Facility
Borrowing ” shall mean a Borrowing comprised of Revolving
Facility Loans.
“ Revolving Facility
Commitment ” shall mean, with respect to each Revolving
Facility Lender, the commitment of such Revolving Facility Lender
to make Revolving Facility Loans pursuant to
28
Section 2.01, expressed as an amount
representing the maximum aggregate permitted amount of such
Revolving Facility Lender’s Revolving Facility Credit
Exposure hereunder, as such commitment may be (a) reduced from time
to time pursuant to Section 2.08 and (b) reduced or increased from
time to time pursuant to assignments by or to such Lender under
Section 9.04. The initial amount of each Revolving Facility
Lender’s Revolving Facility Commitment is set forth on
Schedule 2.01 , or in the Assignment and Acceptance pursuant
to which such Revolving Facility Lender shall have assumed its
Revolving Facility Commitment, as applicable. The aggregate amount
of the Revolving Facility Commitments is $175 million.
“ Revolving Facility
Credit Exposure ” shall mean, at any time, the sum of (a)
the aggregate principal amount of the Revolving Facility Loans
outstanding at such time, (b) the Swingline Exposure at such time
and (c) the Revolving L/C Exposure at such time. The Revolving
Facility Credit Exposure of any Revolving Facility Lender at any
time shall be the sum of (x) the aggregate principal amount of such
Revolving Facility Lender’s Revolving Facility Loans
outstanding at such time and (y) such Revolving Facility
Lender’s (i) Swingline Exposure and (ii) Revolving L/C
Exposure at such time.
“ Revolving Facility
Lender ” shall mean a Lender with a Revolving Facility
Commitment or with outstanding Revolving Facility Loans.
“ Revolving Facility
Loan ” shall mean a Loan made by a Revolving Facility
Lender pursuant to Section 2.01.
“ Revolving Facility
Maturity Date ” shall mean December 23, 2010.
“ Revolving Facility
Percentage ” shall mean, with respect to any Revolving
Facility Lender, the percentage of the total Revolving Facility
Commitments represented by such Lender’s Revolving Facility
Commitment. If the Revolving Facility Commitments have terminated
or expired, the Revolving Facility Percentages shall be determined
based upon the Revolving Facility Commitments most recently in
effect, giving effect to any assignments pursuant to Section
9.04.
“ Revolving L/C
Exposure ” shall mean at any time the sum of (a) the
aggregate undrawn amount of all Letters of Credit outstanding at
such time and (b) the aggregate principal amount of all L/C
Disbursements that have not yet been reimbursed at such time. The
Revolving L/C Exposure of any Revolving Facility Lender at any time
shall mean its Revolving Facility Percentage of the aggregate
Revolving L/C Exposure at such time.
“ Rollover
Equity ” shall mean the portion of the Equity Financing
to be contributed by the Family Investors and certain members of
the Management Group substantially on the terms set forth in
Exhibits A and B to the Acquisition Agreement.
“ S&P
” shall mean Standard & Poor’s Ratings Group,
Inc.
“ Sale and
Lease-Back Transaction ” shall have the meaning assigned
to such term in Section 6.03.
“ SEC ”
shall mean the Securities and Exchange Commission or any successor
thereto.
“ Secured
Parties ” shall mean the “Secured Parties” as
defined in the Collateral Agreement.
“ Securities Act
” shall mean the Securities Act of 1933, as
amended.
29
“ Security
Documents ” shall mean the Mortgages, the Collateral
Agreement, the Foreign Pledge Agreements and each of the security
agreements, mortgages and other instruments and documents executed
and delivered pursuant to any of the foregoing or pursuant to
Section 5.10.
“ Seller ”
shall have the meaning assigned to such term in the first recital
hereto.
“ Senior Note
Documents ” shall mean the Senior Notes and the Senior
Note Indenture.
“ Senior Note
Indenture ” shall mean the Indenture dated as of December
23, 2004 under which the Senior Notes were issued, among the
Borrower and certain of the Subsidiaries party thereto and the
trustee named therein from time to time, as in effect on the
Closing Date and as amended, restated, supplemented or otherwise
modified from time to time in accordance with the requirements
thereof and of this Agreement.
“ Senior Notes
” shall mean the Borrower’s Senior Floating Rate Notes
due 2012, issued pursuant to the Senior Note Indenture and any
notes issued by the Borrower in exchange for, and as contemplated
by, the Senior Notes and the related registration rights agreement
with substantially identical terms as the Senior Notes.
“ Senior Secured
Debt ” at any date shall mean the sum of (a) the
aggregate principal amount of the Obligations outstanding under
this Agreement plus (b) the aggregate principal amount of
all other Indebtedness of the Borrower and its Subsidiaries that is
secured by any Lien on any asset of the Borrower or any of its
Subsidiaries, is outstanding at such time and is otherwise included
in Consolidated Debt.
“ Senior Secured
Leverage Ratio ” shall mean, on any date, the ratio of
(a) Senior Secured Debt as of such date to (b) EBITDA for the
period of four consecutive fiscal quarters of the Borrower most
recently ended as of such date, all determined on a consolidated
basis in accordance with GAAP; provided that EBITDA shall be
determined for the respective Test Period on a Pro Forma
Basis.
“ Senior
Subordinated Note Documents ” shall mean the Senior
Subordinated Notes and the Senior Subordinated Note
Indenture.
“ Senior
Subordinated Note Indenture ” shall mean the Indenture
dated as of December 23, 2004 under which the Senior Subordinated
Notes were issued, among the Borrower and certain of the
Subsidiaries party thereto and the trustee named therein from time
to time, as in effect on the Closing Date and as amended, restated,
supplemented or otherwise modified from time to time in accordance
with the requirements thereof and of this Agreement.
“ Senior
Subordinated Notes ” shall mean the Borrower’s 7
7/8% Senior Subordinated Notes due 2012, issued pursuant to the
Senior Subordinated Note Indenture and any notes issued by the
Borrower in exchange for, and as contemplated by, the Senior
Subordinated Notes and the related registration rights agreement
with substantially identical terms as the Senior Subordinated
Notes.
“ Special Purpose
Receivables Subsidiary ” shall mean a direct or indirect
Subsidiary of the Borrower established in connection with a
Permitted Receivables Financing for the acquisition of Receivables
Assets or interests therein, and which is organized in a manner
intended to reduce the likelihood that it would be substantively
consolidated with Holdings, the Borrower or any of the Subsidiaries
(other than Special Purpose Receivables Subsidiaries) in the event
Holdings, the Borrower or any such Subsidiary becomes subject to a
proceeding under the U.S. Bankruptcy Code (or other insolvency
law).
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“ Statutory
Reserves ” shall mean, with respect to any currency, any
reserve, liquid asset or similar requirements established by any
Governmental Authority of the United States of America or of the
jurisdiction of such currency or any jurisdiction in which Loans in
such currency are made to which banks in such jurisdiction are
subject for any category of deposits or liabilities customarily
used to fund loans in such currency or by reference to which
interest rates applicable to Loans in such currency are
determined.
“ Subordinated
Intercompany Debt ” shall have the meaning assigned to
such term in Section 6.01(e).
“ subsidiary
” shall mean, with respect to any person (herein referred to
as the “ parent ”), any corporation,
partnership, association or other business entity (a) of which
securities or other ownership interests representing more than 50%
of the equity or more than 50% of the ordinary voting power or more
than 50% of the general partnership interests are, at the time any
determination is being made, directly or indirectly, owned,
Controlled or held, or (b) that is, at the time any determination
is made, otherwise Controlled, by the parent or one or more
subsidiaries of the parent or by the parent and one or more
subsidiaries of the parent.
“ Subsidiary
” shall mean, unless the context otherwise requires, a
subsidiary of the Borrower. Notwithstanding the foregoing (and
except for purposes of Sections 3.09, 3.13, 3.15, 3.16, 5.03, 5.09
and 7.01(k), and the definition of Unrestricted Subsidiary
contained herein), an Unrestricted Subsidiary shall be deemed not
to be a Subsidiary of the Borrower or any of its Subsidiaries for
purposes of this Agreement.
“ Subsidiary Loan
Party ” shall mean (A) each Wholly Owned Subsidiary of
the Borrower that is not (a) a Foreign Subsidiary or (b) listed on
Schedule 1.01(a) and (B) each Domestic Subsidiary of the
Borrower or the Subsidiaries that guarantees any Indebtedness of
the Borrower or any of the Subsidiaries.
“ Subsidiary
Redesignation ” shall have the meaning provided in the
definition of “Unrestricted Subsidiary” contained in
this Section 1.01.
“ Swap Agreement
” shall mean any agreement with respect to any swap, forward,
future or derivative transaction or option or similar agreement
involving, or settled by reference to, one or more rates,
currencies, commodities, equity or debt instruments or securities,
or economic, financial or pricing indices or measures of economic,
financial or pricing risk or value or any similar transaction or
any combination of these transactions, provided that no
phantom stock or similar plan providing for payments only on
account of services provided by current or former directors,
officers, employees or consultants of Holdings, the Borrower or any
of the Subsidiaries shall be a Swap Agreement.
“ Swingline
Borrowing Request ” shall mean a request by a Borrower
substantially in the form of Exhibit C-2 .
“ Swingline
Borrowing ” shall mean a Borrowing comprised of Swingline
Loans.
“ Swingline
Commitment ” shall mean, with respect to each Swingline
Lender, the commitment of such Swingline Lender to make Swingline
Loans pursuant to Section 2.04. The aggregate amount of the
Swingline Commitments on the Closing Date is $30
million.
“ Swingline
Exposure ” shall mean at any time the aggregate principal
amount of all outstanding Swingline Borrowings at such time. The
Swingline Exposure of any Revolving Facility
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Lender at any time shall mean its
Revolving Facility Percentage of the aggregate Swingline Exposure
at such time.
“ Swingline
Lender ” shall mean JPMorgan Chase Bank, N.A. in its
capacity as a lender of Swingline Loans.
“ Swingline
Loans ” shall mean the swingline loans made to the
Borrower pursuant to Section 2.04.
“ Syndication
Agent ” shall have the meaning assigned to such term in
the introductory paragraph of this Agreement.
“ Taxes ”
shall mean any and all present or future taxes, levies, imposts,
duties (including stamp duties), deductions, charges (including
ad valorem charges) or withholdings imposed by any
Governmental Authority and any and all interest and penalties
related thereto.
“ Term Borrowing
” shall mean a Borrowing comprised of Term Loans.
“ Term Facility
” shall mean the Term Loan Commitments and the Term Loans
made hereunder.
“ Term Facility
Maturity Date ” shall mean December 23, 2011.
“ Term Loan
Commitment ” shall mean with respect to each Lender, the
commitment of such Lender to make Term Loans as set forth in
Section 2.01. The aggregate amount of the Term Loan Commitments on
the Closing Date is $350 million.
“ Term Loan
Installment Date ” shall have the meaning assigned to
such term in Section 2.10(a).
“ Term Loans
” shall mean the term loans made by the Lenders to the
Borrower pursuant to Section 2.01.
“ Test Period
” shall mean, on any date of determination, the period of
four consecutive fiscal quarters of the Borrower then most recently
ended (taken as one accounting period).
“ Total Senior
Leverage Ratio ” shall mean, on any date, the ratio of
(a) Consolidated Senior Debt as of such date to (b) EBITDA for the
period of four consecutive fiscal quarters of the Borrower most
recently ended as of such date, all determined on a consolidated
basis in accordance with GAAP; provided that EBITDA shall be
determined for the respective Test Period on a Pro Forma
Basis.
“ Transaction
Documents ” shall mean the Acquisition Documents, the
Senior Subordinated Note Documents, the Senior Note Documents and
the Loan Documents.
“ Transactions
” shall mean, collectively, the transactions to occur
pursuant to the Transaction Documents, including (a) the
consummation of the Acquisition; (b) the execution and delivery of
the Loan Documents and the initial borrowings hereunder; (c) the
Equity Financing; (d) the issuance of the Senior Subordinated Notes
and the Senior Notes; and (e) the payment of all fees and expenses
to be paid on or prior to the Closing Date and owing in connection
with the foregoing.
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“ Type ”,
when used in respect of any Loan or Borrowing, shall refer to the
Rate by reference to which interest on such Loan or on the Loans
comprising such Borrowing is determined. For purposes hereof, the
term “ Rate ” shall include the Adjusted LIBO
Rate and the ABR.
“ U.S. Bankruptcy
Code ” shall mean Title 11 of the United States Code, as
amended, or any similar federal or state law for the relief of
debtors.
“ Unrestricted
Subsidiary ” shall mean any Subsidiary of the Borrower
that is acquired or created after the Closing Date and designated
by the Borrower as an Unrestricted Subsidiary hereunder by written
notice to the Administrative Agent; provided that the
Borrower shall only be permitted to so designate a new Unrestricted
Subsidiary after the Closing Date and so long as (a) no Default or
Event of Default exists or would result therefrom and (b) such
Unrestricted Subsidiary shall be capitalized (to the extent
capitalized by the Borrower or any of its Subsidiaries) through
Investments as permitted by, and in compliance with, Section
6.04(j), with any assets owned by such Unrestricted Subsidiary at
the time of the initial designation thereof to be treated as
Investments pursuant to Section 6.04(j); provided that at
the time of the initial Investment by the Borrower or any of its
Subsidiaries in such Subsidiary, the Borrower shall designate such
entity as an Unrestricted Subsidiary in a written notice to the
Administrative Agent. The Borrower may designate any Unrestricted
Subsidiary to be a Subsidiary for purposes of this Agreement (each,
a “ Subsidiary Redesignation ”); provided
that (i) such Unrestricted Subsidiary, both before and after giving
effect to such designation, shall be a Wholly Owned Subsidiary of
the Borrower, (ii) no Default or Event of Default then exists or
would occur as a consequence of any such Subsidiary Redesignation
(including, but not limited to, under Sections 6.01 and 6.02),
(iii) calculations are made by the Borrower of compliance with the
Financial Performance Covenants for the relevant Reference Period,
on a Pro Forma Basis as if the respective Subsidiary Redesignation
(as well as all other Subsidiary Redesignations theretofore
consummated after the first day of such Reference Period) had
occurred on the first day of such Reference Period, and such
calculations shall show that such financial covenants would have
been complied with if the Subsidiary Redesignation had occurred on
the first day of such Reference Period (for this purpose, (A) if
the first day of the respective Reference Period occurs prior to
the Closing Date, calculated as if the Financial Performance
Covenants had been applicable from the first day of the Reference
Period and (B) using the covenant levels contained in such
Financial Performance Covenants for the Test Period ending June 30,
2005 in connection with any Subsidiary Redesignation made prior to
June 30, 2005), (iv) based on good faith projections prepared by
the Borrower for the period from the date of the respective
Subsidiary Redesignation to the date that is one year thereafter,
the level of financial performance measured by the Financial
Performance Covenants shall be better than or equal to such level
as would be required to provide that no Default or Event of Default
would exist under the Financial Performance Covenants (using the
covenant levels contained in such Financial Performance Covenants
for the Test Period ending June 30, 2005 for any portion of such
period prior to June 30, 2005) through the date that is one year
from the date of the respective Subsidiary Redesignation, (v) all
representations and warranties contained herein and in the other
Loan Documents shall be true and correct in all material respects
with the same effect as though such representations and warranties
had been made on and as of the date of such Subsidiary
Redesignation (both before and after giving effect thereto), unless
stated to relate to a specific earlier date, in which case such
representations and warranties shall be true and correct in all
material respects as of such earlier date, (vi) the Borrower shall
have delivered to the Administrative Agent an officer’s
certificate executed by a Responsible Officer of the Borrower,
certifying to the best of such officer’s knowledge,
compliance with the requirements of preceding clauses (i) through
(v), inclusive, and containing the calculations required by the
preceding clauses (iii) and (iv).
“ Wholly Owned
Subsidiary ” of any person shall mean a subsidiary of
such person, all of the Equity Interests of which (other than
directors’ qualifying shares or nominee or other similar
shares required pursuant to applicable law) are owned by such
person or another Wholly Owned Subsidiary of such
person.
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“ Withdrawal
Liability ” shall mean liability to a Multiemployer Plan
as a result of a complete or partial withdrawal from such
Multiemployer Plan, as such terms are defined in Part I of Subtitle
E of Title IV of ERISA.
“ Working
Capital ” shall mean, with respect to the Borrower and
the Subsidiaries on a consolidated basis at any date of
determination, Current Assets at such date of determination
minus Current Liabilities at such date of determination;
provided that, for purposes of calculating Excess Cash Flow,
increases or decreases in Working Capital shall be calculated
without regard to any changes in Current Assets or Current
Liabilities as a result of (a) any reclassification in accordance
with GAAP of assets or liabilities, as applicable, between current
and noncurrent or (b) the effects of purchase
accounting.
SECTION 1.02. Terms
Generally . The definitions set forth or referred to in Section
1.01 shall apply equally to both the singular and plural forms of
the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter
forms. The words “include,” “includes” and
“including” shall be deemed to be followed by the
phrase “without limitation.” All references herein to
Articles, Sections, Exhibits and Schedules shall be deemed
references to Articles and Sections of, and Exhibits and Schedules
to, this Agreement unless the context shall otherwise require.
Except as otherwise expressly provided herein, any reference in
this Agreement to any Loan Document shall mean such document as
amended, restated, supplemented or otherwise modified from time to
time. Except as otherwise expressly provided herein, all terms of
an accounting or financial nature shall be construed in accordance
with GAAP, as in effect from time to time; provided that, if
the Borrower notifies the Administrative Agent that the Borrower
requests an amendment to any provision hereof to eliminate the
effect of any change occurring after the Closing Date in GAAP or in
the application thereof on the operation of such provision (or if
the Administrative Agent notifies the Borrower that the Required
Lenders request an amendment to any provision hereof for such
purpose), regardless of whether any such notice is given before or
after such change in GAAP or in the application thereof, then such
provision shall be interpreted on the basis of GAAP as in effect
and applied immediately before such change shall have become
effective until such notice shall have been withdrawn or such
provision amended in accordance herewith.
SECTION 1.03. Effectuation
of Transfers . Each of the representations and warranties of
Holdings and the Borrower contained in this Agreement (and all
corresponding definitions) are made after giving effect to the
Transactions, unless the context otherwise requires.
ARTICLE II
The Credits
SECTION 2.01.
Commitments . Subject to the terms and conditions set forth
herein:
(a) each Lender agrees to
make Term Loans to the Borrower on the Closing Date in a principal
amount not to exceed its Term Loan Commitment; and
(b) each Lender agrees to
make Revolving Facility Loans to the Borrower from time to time
during the Availability Period in an aggregate principal amount
that will not result in (i) such Lender’s Revolving Facility
Credit Exposure exceeding such Lender’s Revolving Facility
Commitment or (ii) the Revolving Facility Credit Exposure exceeding
the total Revolving Facility Commitments; provided that the
aggregate principal amount of Revolving Facility Loans made on the
Closing Date shall not exceed $35.0 million. Within the foregoing
limits and subject to the terms and conditions set forth herein,
the Borrower may borrow, prepay and reborrow Revolving Facility
Loans.
34
SECTION 2.02. Loans and
Borrowings . (a) Each Loan shall be made as part of a Borrowing
consisting of Loans under the same Facility and of the same Type
made by the Lenders ratably in accordance with their respective
Commitments under the applicable Facility (or, in the case of
Swingline Loans, in accordance with their respective Swingline
Commitments); provided , however , that Revolving
Facility Loans shall be made by the Revolving Facility Lenders
ratably in accordance with their respective Revolving Facility
Percentages on the date such Loans are made hereunder. The failure
of any Lender to make any Loan required to be made by it shall not
relieve any other Lender of its obligations hereunder;
provided that the Commitments of the Lenders are several and
no Lender shall be responsible for any other Lender’s failure
to make Loans as required.
(b) Subject to Section 2.14,
each Borrowing (other than a Swingline Borrowing) shall be
comprised entirely of ABR Loans or Eurocurrency Loans as the
Borrower may request in accordance herewith. Each Swingline
Borrowing shall be an ABR Borrowing. Each Lender at its option may
make any ABR Loan or Eurocurrency Loan by causing any domestic or
foreign branch or Affiliate of such Lender to make such Loan;
provided that any exercise of such option shall not affect
the obligation of the Borrower to repay such Loan in accordance
with the terms of this Agreement and such Lender shall not be
entitled to any amounts payable under Section 2.15 or 2.17 solely
in respect of increased costs resulting from such exercise and
existing at the time of such exercise.
(c) At the commencement of
each Interest Period for any Eurocurrency Revolving Borrowing, such
Borrowing shall be in an aggregate amount that is an integral
multiple of the Borrowing Multiple and not less than the Borrowing
Minimum. At the time that each ABR Revolving Borrowing is made,
such Borrowing shall be in an aggregate amount that is an integral
multiple of the Borrowing Multiple and not less than the Borrowing
Minimum; provided that an ABR Revolving Borrowing may be in
an aggregate amount that is equal to the entire unused balance of
the Revolving Facility Commitments or that is required to finance
the reimbursement of an L/C Disbursement as contemplated by Section
2.05(e). Each Swingline Borrowing shall be in an amount that is an
integral multiple of the Borrowing Multiple and not less than the
Borrowing Minimum. Borrowings of more than one Type and under more
than one Facility may be outstanding at the same time;
provided that there shall not at any time be more than a
total of (i) 5 Eurocurrency Borrowings outstanding under the Term
Facility and (ii) 10 Eurocurrency Borrowings outstanding under the
Revolving Facility.
(d) Notwithstanding any other
provision of this Agreement, no Borrower shall be entitled to
request, or to elect to convert or continue, any Borrowing if the
Interest Period requested with respect thereto would end after the
Revolving Facility Maturity Date or the Term Facility Maturity
Date, as applicable.
SECTION 2.03. Requests for
Borrowings . To request a Revolving Borrowing and/or a Term
Borrowing, the Borrower shall notify the Administrative Agent of
such request by telephone (a) in the case of a Eurocurrency
Borrowing, not later than 11:00 a.m., Local Time, three Business
Days before the date of the proposed Borrowing or (b) in the case
of an ABR Borrowing, not later than 12:00 noon, Local Time, one
Business Day before the date of the proposed Borrowing;
provided that any such notice of an ABR Revolving Borrowing
to finance the reimbursement of an L/C Disbursement as contemplated
by Section 2.05(e) may be given not later than 10:00 a.m., Local
Time, on the date of the proposed Borrowing. Each such telephonic
Borrowing Request shall be irrevocable and shall be confirmed
promptly by hand delivery or telecopy to the Administrative Agent
of a written Borrowing Request in a form approved by the
Administrative Agent and signed by the Borrower. Each such
telephonic and written Borrowing Request shall specify the
following information in compliance with Section 2.02:
(i) the aggregate amount of
the requested Borrowing;
35
(ii) the date of such
Borrowing, which shall be a Business Day;
(iii) whether such Borrowing
is to be an ABR Borrowing or a Eurocurrency Borrowing;
(iv) in the case of a
Eurocurrency Borrowing, the initial Interest Period to be
applicable thereto, which shall be a period contemplated by the
definition of the term “Interest Period”;
and
(v) the location and number
of the Borrower’s account to which funds are to be
disbursed.
If no election as to the Type of
Revolving Borrowing is specified, then the requested Revolving
Borrowing shall be an ABR Borrowing. If no Interest Period is
specified with respect to any requested Eurocurrency Borrowing,
then the applicable Borrower shall be deemed to have selected an
Interest Period of one month’s duration. Promptly following
receipt of a Borrowing Request in accordance with this Section, the
Administrative Agent shall advise each Lender of the details
thereof and of the amount of such Lender’s Loan to be made as
part of the requested Borrowing.
SECTION 2.04. Swingline
Loans . (a) Subject to the terms and conditions set forth
herein, the Swingline Lender agrees to make Swingline Loans to the
Borrower from time to time during the Availability Period, in an
aggregate principal amount at any time outstanding that will not
result in (i) the aggregate principal amount of outstanding
Swingline Loans exceeding the Swingline Commitment or (ii) the
Revolving Facility Credit Exposure exceeding the total Revolving
Facility Commitments; provided that the Swingline Lender shall not
be required to make a Swingline Loan to refinance an outstanding
Swingline Borrowing. Within the foregoing limits and subject to the
terms and conditions set forth herein, the Borrower may borrow,
prepay and reborrow Swingline Loans.
(b) To request a Swingline
Borrowing, the Borrower shall notify the Administrative Agent and
the Swingline Lender of such request by telephone (confirmed by a
Swingline Borrowing Request by telecopy), not later than 11:00
a.m., Local Time, on the day of a proposed Swingline Borrowing.
Each such notice and Swingline Borrowing Request shall be
irrevocable and shall specify (i) the requested date (which shall
be a Business Day) and (ii) the amount of the requested Swingline
Borrowing. The Swingline Lender shall consult with the
Administrative Agent as to whether the making of the Swingline Loan
is in accordance with the terms of this Agreement prior to the
Swingline Lender funding such Swingline Loan. The Swingline Lender
shall make each Swingline Loan in accordance with Section 2.02(a)
on the proposed date thereof by wire transfer of immediately
available funds by 3:00 p.m., Local Time, to the account of the
Borrower (or, in the case of a Swingline Borrowing made to finance
the reimbursement of an L/C Disbursement as provided in Section
2.05(e), by remittance to the applicable Issuing Bank).
(c) The Swingline Lender may
by written notice given to the Administrative Agent not later than
10:00 a.m., Local Time, on any Business Day require the Revolving
Facility Lenders to acquire participations on such Business Day in
all or a portion of the outstanding Swingline Loans made by it.
Such notice shall specify the aggregate amount of such Swingline
Loans in which the Revolving Facility Lenders will participate.
Promptly upon receipt of such notice, the Administrative Agent will
give notice thereof to each such Lender, specifying in such notice
such Lender’s Revolving Facility Lender’s Revolving
Facility Percentage of such Swingline Loan or Loans. Each Revolving
Facility Lender hereby absolutely and unconditionally agrees, upon
receipt of notice as provided above, to pay to the Administrative
Agent for the account of the Swingline Lender, such Revolving
Facility Lender’s Revolving Facility Percentage of such
Swingline Loan or Loans. Each Revolving Facility Lender
36
acknowledges and agrees that its
respective obligation to acquire participations in Swingline Loans
pursuant to this paragraph is absolute and unconditional and shall
not be affected by any circumstance whatsoever, including the
occurrence and continuance of a Default or reduction or termination
of the Commitments, and that each such payment shall be made
without any offset, abatement, withholding or reduction whatsoever.
Each Revolving Facility Lender shall comply with its obligation
under this paragraph by wire transfer of immediately available
funds, in the same manner as provided in Section 2.06 with respect
to Loans made by such Revolving Facility Lender (and Section 2.06
shall apply, mutatis mutandis , to the payment
obligations of the Lenders), and the Administrative Agent shall
promptly pay to the Swingline Lender the amounts so received by it
from the Revolving Facility Lenders. The Administrative Agent shall
notify the Borrower of any participations in any Swingline Loan
acquired pursuant to this paragraph (c), and thereafter payments in
respect of such Swingline Loan shall be made to the Administrative
Agent and not to the Swingline Lender. Any amounts received by the
Swingline Lender from the Borrower (or other party on behalf of
such Borrower) in respect of a Swingline Loan after receipt by the
Swingline Lender of the proceeds of a sale of participations
therein shall be promptly remitted to the Administrative Agent; any
such amounts received by the Administrative Agent shall be promptly
remitted by the Administrative Agent to the Revolving Facility
Lenders that shall have made their payments pursuant to this
paragraph and to the Swingline Lender, as their interests may
appear; provided that any such payment so remitted shall be
repaid to the Swingline Lender or to the Administrative Agent, as
applicable, if and to the extent such payment is required to be
refunded to the applicable Borrower for any reason. The purchase of
participations in a Swingline Loan pursuant to this paragraph shall
not relieve the Borrower of any default in the payment
thereof.
SECTION 2.05. Letters of
Credit . (a) General. Each Existing Letter of Credit is
deemed to be a letter of credit issued hereunder for all purposes
of this Agreement and the other Loan Documents. In addition,
subject to the terms and conditions set forth herein, the Borrower
may request the issuance of Letters of Credit for its own account
in a form reasonably acceptable to the applicable Issuing Bank, at
any time and from time to time during the Availability Period and
prior to the date that is five Business Days prior to the Revolving
Facility Maturity Date. In the event of any inconsistency between
the terms and conditions of this Agreement and the terms and
conditions of any form of letter of credit application or other
agreement submitted by the Borrower to, or entered into by the
Borrower with, an Issuing Bank relating to any Letter of Credit,
the terms and conditions of this Agreement shall
control.
(b) Notice of Issuance,
Amendment, Renewal, Extension: Certain Conditions . To request
the issuance of a Letter of Credit (or the amendment, renewal
(other than an automatic renewal in accordance with paragraph (c)
of this Section) or extension of an outstanding Letter of Credit),
the Borrower shall hand deliver or telecopy (or transmit by
electronic communication, if arrangements for doing so have been
approved by the applicable Issuing Bank) to the applicable Issuing
Bank and the Administrative Agent (three Business Days in advance
of the requested date of issuance, amendment, renewal or extension)
a notice requesting the issuance of a Letter of Credit, or
identifying the Letter of Credit to be amended, renewed or
extended, and specifying the date of issuance, amendment, renewal
or extension (which shall be a Business Day), the date on which
such Letter of Credit is to expire (which shall comply with
paragraph (c) of this Section), the amount of such Letter of
Credit, the name and address of the beneficiary thereof and such
other information as shall be necessary to issue, amend, renew or
extend such Letter of Credit. If requested by the applicable
Issuing Bank, the Borrower also shall submit a letter of credit
application on such Issuing Bank’s standard form in
connection with any request for a Letter of Credit. A Letter of
Credit shall be issued, amended, renewed or extended only if (and
upon issuance, amendment, renewal or extension of each Letter of
Credit the Borrower shall be deemed to represent and warrant that),
after giving effect to such issuance, amendment, renewal or
extension (i) the Revolving L/C Exposure shall not exceed $50
million and (ii) the Revolving Facility Credit Exposure shall not
exceed the total Revolving Facility Commitments.
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(c) Expiration Date .
Each Letter of Credit shall expire at or prior to the close of
business on the earlier of (i) the date one year after the date of
the issuance of such Letter of Credit (or, in the case of any
renewal or extension thereof, one year after such renewal or
extension) and (ii) the date that is five Business Days prior to
the Revolving Facility Maturity Date; provided that any
Letter of Credit with a one-year tenor may provide for the
automatic renewal thereof for additional one-year periods (which,
in no event, shall extend beyond the date referred to in clause
(ii) of this paragraph (c)).
(d) Participations .
By the issuance of a Letter of Credit (or an amendment to a Letter
of Credit increasing the amount thereof) and without any further
action on the part of the applicable Issuing Bank or the Revolving
Facility Lenders, such Issuing Bank hereby grants to each Revolving
Facility Lender, and each Revolving Facility Lender hereby acquires
from such Issuing Bank, a participation in such Letter of Credit
equal to such Revolving Facility Lender’s Revolving Facility
Percentage of the aggregate amount available to be drawn under such
Letter of Credit. In consideration and in furtherance of the
foregoing, each Revolving Facility Lender hereby absolutely and
unconditionally agrees to pay to the Administrative Agent, for the
account of the applicable Issuing Bank, such Revolving Facility
Lender’s Revolving Facility Percentage of each L/C
Disbursement made by such Issuing Bank and not reimbursed by the
Borrower on the date due as provided in paragraph (e) of this
Section, or of any reimbursement payment required to be refunded to
the Borrower for any reason. Each Revolving Facility Lender
acknowledges and agrees that its obligation to acquire
participations pursuant to this paragraph in respect of Letters of
Credit is absolute and unconditional and shall not be affected by
any circumstance whatsoever, including any amendment, renewal or
extension of any Letter of Credit or the occurrence and continuance
of a Default or reduction or termination of the Commitments, and
that each such payment shall be made without any offset, abatement,
withholding or reduction whatsoever.
(e) Reimbursement . If
the applicable Issuing Bank shall make any L/C Disbursement in
respect of a Letter of Credit, the Borrower shall reimburse such
L/C Disbursement by paying to the Administrative Agent an amount
equal to such L/C Disbursement not later than 2:00 p.m., Local
Time, on (i) the Business Day that the Borrower receives notice
under paragraph (g) of this Section of such L/C Disbursement, if
such notice is received on such day prior to 10:00 a.m., Local
Time, or (ii) if clause (i) does not apply, the Business Day
immediately following the date the Borrower receives such notice,
provided that the Borrower may, subject to the conditions to
borrowing set forth herein, request in accordance with Section 2.03
or 2.04 that such payment be financed with an ABR Revolving
Borrowing or a Swingline Borrowing, as applicable, in an equivalent
amount and, to the extent so financed, the Borrower’s
obligation to make such payment shall be discharged and replaced by
the resulting ABR Revolving Borrowing or Swingline Borrowing. If
the Borrower fails to reimburse any L/C Disbursement when due, then
the Administrative Agent shall promptly notify the applicable
Issuing Bank and each other Revolving Facility Lender of the
applicable L/C Disbursement, the payment then due from the Borrower
in respect thereof and, in the case of a Revolving Facility Lender,
such Lender’s Revolving Facility Percentage thereof. Promptly
following receipt of such notice, each Revolving Facility Lender
shall pay to the Administrative Agent its Revolving Facility
Percentage of the payment then due from the Borrower in the same
manner as provided in Section 2.06 with respect to Loans made by
such Lender (and Section 2.06 shall apply, mutatis
mutandis , to the payment obligations of the Revolving
Facility Lenders), and the Administrative Agent shall promptly pay
to the applicable Issuing Bank the amounts so received by it from
the Revolving Facility Lenders. Promptly following receipt by the
Administrative Agent of any payment from the Borrower pursuant to
this paragraph, the Administrative Agent shall distribute such
payment to the applicable Issuing Bank or, to the extent that
Revolving Facility Lenders have made payments pursuant to this
paragraph to reimburse such Issuing Bank, then to such Lenders and
such Issuing Bank as their interests may appear. Any payment made
by a Revolving Facility Lender pursuant to this paragraph to
reimburse an Issuing Bank for any L/C Disbursement (other than the
funding of an ABR Revolving Loan or a Swingline Borrowing as
contemplated above) shall not
38
constitute a Loan and shall not relieve
the Borrower of its obligation to reimburse such L/C
Disbursement.
(f) Obligations
Absolute . The obligation of the Borrower to reimburse L/C
Disbursements as provided in paragraph (e) of this Section shall be
absolute, unconditional and irrevocable, and shall be performed
strictly in accordance with the terms of this Agreement under any
and all circumstances whatsoever and irrespective of (i) any lack
of validity or enforceability of any Letter of Credit or this
Agreement, or any term or provision therein, (ii) any draft or
other document presented under a Letter of Credit proving to be
forged, fraudulent or invalid in any respect or any statement
therein being untrue or inaccurate in any respect, (iii) payment by
the applicable Issuing Bank under a Letter of Credit against
presentation of a draft or other document that does not comply with
the terms of such Letter of Credit or (iv) any other event or
circumstance whatsoever, whether or not similar to any of the
foregoing, that might, but for the provisions of this Section,
constitute a legal or equitable discharge of, or provide a right of
setoff against, the Borrower’s obligations hereunder. Neither
the Administrative Agent, the Lenders nor any Issuing Bank, nor any
of their Related Parties, shall have any liability or
responsibility by reason of or in connection with the issuance or
transfer of any Letter of Credit or any payment or failure to make
any payment thereunder (irrespective of any of the circumstances
referred to in the preceding sentence), or any error, omission,
interruption, loss or delay in transmission or delivery of any
draft, notice or other communication under or relating to any
Letter of Credit (including any document required to make a drawing
thereunder), any error in interpretation of technical terms or any
consequence arising from causes beyond the control of such Issuing
Bank, or any of the circumstances referred to in clauses (i), (ii)
or (iii) of the first sentence; provided that the foregoing
shall not be construed to excuse the applicable Issuing Bank from
liability to the Borrower to the extent of any direct damages (as
opposed to consequential damages, claims in respect of which are
hereby waived by the Borrower to the extent permitted by applicable
law) suffered by the Borrower that are determined by a court of
competent jurisdiction to have been caused by (i) such Issuing
Bank’s failure to exercise care when determining whether
drafts and other documents presented under a Letter of Credit
comply with the terms thereof or (ii) such Issuing Bank’s
refusal to issue a Letter of Credit in accordance with the terms of
this Agreement. The parties hereto expressly agree that, in the
absence of gross negligence or willful misconduct on the part of
the applicable Issuing Bank, such Issuing Bank shall be deemed to
have exercised care in each such determination and each refusal to
issue a Letter of Credit. In furtherance of the foregoing and
without limiting the generality thereof, the parties agree that,
with respect to documents presented which appear on their face to
be in substantial compliance with the terms of a Letter of Credit,
the applicable Issuing Bank may, in its sole discretion, either
accept and make payment upon such documents without responsibility
for further investigation, regardless of any notice or information
to the contrary, or refuse to accept and make payment upon such
documents if such documents are not in strict compliance with the
terms of such Letter of Credit.
(g) Disbursement
Procedures . The applicable Issuing Bank shall, promptly
following its receipt thereof, examine all documents purporting to
represent a demand for payment under a Letter of Credit. Such
Issuing Bank shall promptly notify the Administrative Agent and the
Borrower by telephone (confirmed by telecopy) of such demand for
payment and whether such Issuing Bank has made or will make a L/C
Disbursement thereunder; provided that any failure to give
or delay in giving such notice shall not relieve the Borrower of
its obligation to reimburse such Issuing Bank and the Revolving
Facility Lenders with respect to any such L/C
Disbursement.
(h) Interim Interest .
If an Issuing Bank shall make any L/C Disbursement, then, unless
the Borrower shall reimburse such L/C Disbursement in full on the
date such L/C Disbursement is made, the unpaid amount thereof shall
bear interest, for each day from and including the date such L/C
Disbursement is made to but excluding the date that the Borrower
reimburses such L/C Disbursement, at the rate per annum then
applicable to ABR Revolving Loans; provided that, if such
L/C Disbursement is
39
not reimbursed by the Borrower when due
pursuant to paragraph (e) of this Section, then Section 2.13(c)
shall apply. Interest accrued pursuant to this paragraph shall be
for the account of the applicable Issuing Bank, except that
interest accrued on and after the date of payment by any Revolving
Facility Lender pursuant to paragraph (e) of this Section to
reimburse such Issuing Bank shall be for the account of such
Revolving Facility Lender to the extent of such payment.
(i) Replacement of an
Issuing Bank . An Issuing Bank may be replaced at any time by
written agreement among the Borrower, the Administrative Agent, the
replaced Issuing Bank and the successor Issuing Bank. The
Administrative Agent shall notify the Lenders of any such
replacement of an Issuing Bank. At the time any such replacement
shall become effective, the Borrower shall pay all unpaid fees
accrued for the account of the replaced Issuing Bank pursuant to
Section 2.12. From and after the effective date of any such
replacement, (i) the successor Issuing Bank shall have all the
rights and obligations of the replaced Issuing Bank under this
Agreement with respect to Letters of Credit to be issued thereafter
and (ii) references herein to the term “Issuing Bank”
shall be deemed to refer to such successor or to any previous
Issuing Bank, or to such successor and all previous Issuing Banks,
as the context shall require. After the replacement of an Issuing
Bank hereunder, the replaced Issuing Bank shall remain a party
hereto and shall continue to have all the rights and obligations of
such Issuing Bank under this Agreement with respect to Letters of
Credit issued by it prior to such replacement but shall not be
required to issue additional Letters of Credit.
(j) Cash
Collateralization . If any Event of Default shall occur and be
continuing, (i) in the case of an Event of Default described in
Section 7.01(h) or (i), on the Business Day or (ii) in the case of
any other Event of Default, on the third Business Day, in each
case, following the date on which the Borrower receives notice from
the Administrative Agent (or, if the maturity of the Loans has been
accelerated, Revolving Facility Lenders with Revolving L/C Exposure
representing greater than 50% of the total Revolving L/C Exposure)
demanding the deposit of cash collateral pursuant to this
paragraph, the Borrower shall deposit in an account with the
Administrative Agent, in the name of the Administrative Agent and
for the benefit of the Lenders, an amount in cash equal to the
Revolving L/C Exposure as of such date plus any accrued and unpaid
interest thereon; provided that upon the occurrence of any
Event of Default with respect to the Borrower described in clause
(h) or (i) of Section 7.01, the obligation to deposit such cash
collateral shall become effective immediately, and such deposit
shall become immediately due and payable, without demand or other
notice of any kind. Each such deposit pursuant to this paragraph
shall be held by the Administrative Agent as collateral for the
payment and performance of the obligations of the Borrower under
this Agreement. The Administrative Agent shall have exclusive
dominion and control, including the exclusive right of withdrawal,
over such account. Other than any interest earned on the investment
of such deposits, which investments shall be made at the option and
sole discretion of (i) for so long as an Event of Default shall be
continuing, the Administrative Agent and (ii) at any other time,
the Borrower, in each case, in Permitted Investments and at the
risk and expense of the Borrower, such deposits shall not bear
interest. Interest or profits, if any, on such investments shall
accumulate in such account. Moneys in such account shall be applied
by the Administrative Agent to reimburse each Issuing Bank for L/C
Disbursements for which such Issuing Bank has not been reimbursed
and, to the extent not so applied, shall be held for the
satisfaction of the reimbursement obligations of the Borrower for
the Revolving L/C Exposure at such time or, if the maturity of the
Loans has been accelerated (but subject to the consent of Revolving
Facility Lenders with Revolving L/C Exposure representing greater
than 50% of the total Revolving L/C Exposure), be applied to
satisfy other obligations of the Borrower under this Agreement. If
the Borrower is required to provide an amount of cash collateral
hereunder as a result of the occurrence of an Event of Default,
such amount (to the extent not applied as aforesaid) shall be
returned to the Borrower within three Business Days after all
Events of Default have been cured or waived.
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(k) Additional Issuing
Banks . From time to time, the Borrower may by notice to the
Administrative Agent designate up to three Lenders (in addition to
JPMorgan Chase Bank, N.A.) each of which agrees (in its sole
discretion) to act in such capacity and is reasonably satisfactory
to the Administrative Agent as an Issuing Bank. Each such
additional Issuing Bank shall execute a counterpart of this
Agreement upon the approval of the Administrative Agent (which
approval shall not be unreasonably withheld) and shall thereafter
be an Issuing Bank hereunder for all purposes.
(l) Reporting . Unless
otherwise requested by the Administrative Agent, each Issuing Bank
shall (i) provide to the Administrative Agent copies of any notice
received from the Borrower pursuant to Section 2.05(b) no later
than the next Business Day after receipt thereof and (ii) report in
writing to the Administrative Agent (A) on or prior to each
Business Day on which such Issuing Bank expects to issue, amend,
renew or extend any Letter of Credit, the date of such issuance,
amendment, renewal or extension, and the aggregate face amount of
the Letters of Credit to be issued, amended, renewed or extended by
it and outstanding after giving effect to such issuance, amendment,
renewal or extension occurred (and whether the amount thereof
changed), and the Issuing Bank shall be permitted to issue, amend,
renew or extend such Letter of Credit if the Administrative Agent
shall not have advised the Issuing Bank that such issuance,
amendment renewal or extension would not be in conformity with the
requirements of this Agreement, (B) on each Business Day on which
such Issuing Bank makes any L/C Disbursement, the date of such L/C
Disbursement and the amount of such L/C Disbursement and (C) on any
other Business Day, such other information as the Administrative
Agent shall reasonably request, including but not
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