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Exhibit 10.2 Execution Version
CREDIT AGREEMENT among WASTE SERVICES, INC.,
as US Borrower, WASTE SERVICES (CA) INC.,
as Canadian Borrower The Several Lenders
from Time to Time Party Hereto, BARCLAYS CAPITAL
and BANC OF AMERICA SECURITIES LLC,
as Joint Lead Arrangers and Joint Lead Bookrunners, BANK OF
AMERICA, N.A.,
as Syndication Agent, BOSIC INC.,
SUNTRUST BANK
and THE BANK OF NOVA SCOTIA,
as Co-Documentation Agents, THE BANK OF NOVA SCOTIA,
as Canadian Agent and Canadian Collateral Agent, and
BARCLAYS BANK PLC,
as Administrative Agent Dated as of October 8, 2008
TABLE OF CONTENTS
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Page
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SECTION 1. DEFINITIONS
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1
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1.1 Defined Terms
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1
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1.2 Other Definitional Provisions
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31
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SECTION 2. AMOUNT AND TERMS OF COMMITMENTS
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31
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2.1 Term Loan Commitments
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31
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2.2 Procedure for Borrowing of Term Loans
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31
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2.3 Repayment of Term Loans
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32
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2.4 Revolving Credit Commitments
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33
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2.5 Procedure for Revolving Credit Borrowing
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34
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2.6 Swing Line Commitments
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35
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2.7 Procedure for Swing Line Borrowing; Refunding of Swing Line
Loans
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36
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2.8 Bankers’ Acceptances
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38
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2.9 Repayment of Loans; Evidence of Debt
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41
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2.10 Commitment Fees, etc.
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42
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2.11 Termination or Reduction of Revolving Credit
Commitments
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42
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2.12 Optional Prepayments
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43
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2.13 Mandatory Prepayments and Commitment Reductions
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43
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2.14 Conversion and Continuation Options
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45
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2.15 Minimum Amounts and Maximum Number of Eurodollar Tranches;
Bankers’ Acceptances
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46
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2.16 Interest Rates and Payment Dates
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46
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2.17 Computation of Interest and Fees
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48
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2.18 Inability to Determine Interest Rate
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48
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2.19 Pro Rata Treatment and Payments
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50
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2.20 Requirements of Law
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52
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2.21 Taxes
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53
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2.22 Indemnity
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56
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2.23 Illegality
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56
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2.24 Change of Lending Office
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57
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2.25 Replacement of Lenders under Certain Circumstances
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57
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2.26 Incremental Term Loan Facilities
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57
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SECTION 3. LETTERS OF CREDIT
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59
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3.1 L/C Commitment
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59
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3.2 Procedure for Issuance of Letter of Credit
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60
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3.3 Fees and Other Charges
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61
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3.4 L/C Participations
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61
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3.5 Reimbursement Obligation of the Borrowers
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63
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3.6 Obligations Absolute
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63
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i
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Page
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3.7 Letter of Credit Payments
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64
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3.8 Applications
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64
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SECTION 4. REPRESENTATIONS AND WARRANTIES
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64
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4.1 Financial Condition
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64
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4.2 No Change
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65
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4.3 Corporate Existence; Compliance with Law
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65
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4.4 Corporate Power; Authorization; Enforceable Obligations
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65
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4.5 No Legal Bar
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66
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4.6 No Material Litigation
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66
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4.7 No Default
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66
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4.8 Ownership of Property; Liens
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66
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4.9 Intellectual Property
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66
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4.10 Taxes
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67
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4.11 Federal Regulations
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67
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4.12 Labor Matters
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67
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4.13 Pensions and Benefit Plans
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67
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4.14 Investment Company Act; Other Regulations
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68
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4.15 Subsidiaries
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68
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4.16 Use of Proceeds
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69
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4.17 Environmental Matters
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69
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4.18 Accuracy of Information, etc.
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70
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4.19 Security Documents
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70
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4.20 Solvency
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71
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4.21 Senior Indebtedness
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71
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4.22 Regulation H
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71
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4.23 Insurance
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72
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4.24 Real Estate
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72
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SECTION 5. CONDITIONS PRECEDENT
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72
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5.1 Conditions to Initial Extension of Credit
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72
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5.2 Conditions to Each Extension of Credit
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78
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SECTION 6. AFFIRMATIVE COVENANTS
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78
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6.1 Financial Statements
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79
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6.2 Certificates; Other Information
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79
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6.3 Payment of Obligations
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81
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6.4 Conduct of Business and Maintenance of Existence, etc.
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81
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6.5 Maintenance of Property; Insurance
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82
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6.6 Inspection of Property; Books and Records; Discussions
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82
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6.7 Notices
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82
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6.8 Environmental Laws
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83
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6.9 Interest Rate Protection
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83
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6.10 Additional Collateral, etc.
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83
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ii
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Page
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6.11 Use of Proceeds
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86
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6.12 Pension and Benefits Plans
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86
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6.13 Further Assurances
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88
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6.14 Maintenance of Ratings
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88
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6.15 Quebec Subsidiary
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88
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6.16 Post Closing Obligations
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88
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SECTION 7. NEGATIVE COVENANTS
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89
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7.1 Financial Condition Covenants
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89
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7.2 Limitation on Indebtedness
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90
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7.3 Limitation on Liens
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92
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7.4 Limitation on Fundamental Changes
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93
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7.5 Limitation on Disposition of Property
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94
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7.6 Limitation on Restricted Payments
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94
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7.7 Limitation on Capital Expenditures
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95
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7.8 Limitation on Investments
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95
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7.9 Limitation on Optional Payments and Modifications of Debt
Instruments and Other Agreements
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97
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7.10 Limitation on Transactions with Affiliates
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98
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7.11 Limitation on Sales and Leasebacks
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98
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7.12 Limitation on Changes in Fiscal Periods
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98
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7.13 Limitation on Negative Pledge Clauses
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98
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7.14 Limitation on Restrictions on Subsidiary Distributions
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98
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7.15 Limitation on Lines of Business
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99
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7.16 Limitation on Hedge Agreements
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99
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7.17 Limitation on Performance Bonds
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99
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SECTION 8. EVENTS OF DEFAULT
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99
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SECTION 9. THE AGENTS; THE ARRANGERS
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103
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9.1 Appointment
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103
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9.2 Delegation of Duties
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104
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9.3 Exculpatory Provisions
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104
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9.4 Reliance by Agents
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104
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9.5 Notice of Default
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105
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9.6 Non-Reliance on the Arrangers, the Agents and Other
Lenders
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105
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9.7 Indemnification
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106
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9.8 Arrangers and Agents in their Individual Capacities
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106
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9.9 Successor Agents
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106
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9.10 Authorization to Release Liens and Guarantees
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107
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9.11 The Arrangers; the Syndication Agent; the Co-Documentation
Agents
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107
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9.12 Withholding Tax
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107
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iii
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Page
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SECTION 10. MISCELLANEOUS
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108
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10.1 Amendments and Waivers
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108
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10.2 Notices
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111
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10.3 No Waiver; Cumulative Remedies
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112
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10.4 Survival of Representations and Warranties
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112
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10.5 Payment of Expenses
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112
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10.6 Successors and Assigns; Participations and Assignments
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113
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10.7 Adjustments; Set-off
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117
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10.8 Counterparts
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118
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10.9 Severability
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118
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10.10 Integration
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118
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10.11 GOVERNING LAW
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118
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10.12 Submission To Jurisdiction; Waivers
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118
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10.13 Acknowledgments
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119
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10.14 Confidentiality
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119
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10.15 Release of Collateral and Guarantee Obligations
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120
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10.16 Accounting Changes
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121
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10.17 Delivery of Lender Addenda
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121
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10.18 WAIVERS OF JURY TRIAL
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121
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10.19 Subordination of Intercompany Indebtedness
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121
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10.20 Judgment Currency
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122
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iv
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ANNEX:
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A
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Pricing Grid
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B
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Existing Letters of Credit
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SCHEDULES:
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4.4
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Consents, Authorizations, Filings and Notices
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4.6
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Material Litigation
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4.10
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Taxes
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4.15(a)
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Subsidiaries
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4.15(b)
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Agreements Related to Capital Stock
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4.17
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Environmental Matters
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4.19(a)
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Filing Jurisdictions under Personal Property
Security Legislation
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4.19(b)
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UCC Financing Statements to be Terminated
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4.24
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Owned and Leased Property; Mortgaged Properties
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5.1(h)
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Environmental Assessments
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6.15
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Post Closing Obligations
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7.2(d)
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Existing Indebtedness
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7.3(f)
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Existing Liens
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7.5(e)
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Certain Dispositions
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7.10
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Transactions with Affiliates
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EXHIBITS:
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A-1
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Guarantee and US Collateral Agreement
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A-2
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Canadian Collateral Agreement
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B
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Form of Compliance Certificate
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C
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Form of Closing Date Certificate
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D-1
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Form of US Mortgage
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D-2
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Form of Canadian Mortgage
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E
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Form of Assignment and Assumption
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F-1
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Form of Legal Opinion of Akin Gump Strauss Hauer
& Feld LLP
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F-2
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Form of Legal Opinion of Blakes, Cassels &
Graydon LLP
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F-3
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Form of Legal Opinion of Stewart McKelvey
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G-1
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Form of Term Note
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G-2
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Form of Revolving Credit Note
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G-3
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Form of Swing Line Note
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G-4
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Form of Discount Note
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H
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Form of Exemption Certificate
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I
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Form of Lender Addendum
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J
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Form of Borrowing Notice
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K
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Form of Solvency Certificate
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CREDIT
AGREEMENT, dated as of October 8, 2008, among WASTE SERVICES
(CA) INC., an Ontario corporation (the " Canadian
Borrower "), WASTE SERVICES, INC., a Delaware corporation (the
" US Borrower ", and together with the Canadian Borrower,
the " Borrowers "), the several banks and other financial
institutions or entities from time to time party to this Agreement
(the " Lenders "), BARCLAYS CAPITAL, the investment banking
division of BARCLAYS BANK PLC, and BANC OF AMERICA SECURITIES LLC,
as joint lead arrangers and joint lead bookrunners, (collectively,
in such capacities, the " Arrangers "), BANK OF AMERICA,
N.A., as syndication agent (in such capacity, the " Syndication
Agent "), BOSIC INC., SUNTRUST BANK and THE BANK OF NOVA
SCOTIA, as co-documentation agents (collectively, in such
capacities, the " Co-Documentation Agents "), BARCLAYS BANK
PLC, as administrative agent (in such capacity, together with its
permitted successors and assigns in such capacity, the "
Administrative Agent "), and THE BANK OF NOVA SCOTIA, as
Canadian agent (n such capacity, together with its permitted
successors and assigns in such capacity, the " Canadian
Agent ") and Canadian collateral agent (in such capacity,
together with its permitted successors and assigns in such
capacity, the " Canadian Collateral Agent "). W I T N E S S
E T H:
WHEREAS,
the Borrowers have requested that the Lenders make credit
facilities available to the Borrowers in order to consummate the
Refinancing (as defined below) and for the other purposes set forth
herein;
WHEREAS,
the Lenders are willing to make such credit facilities available
upon and subject to the terms and conditions hereinafter set forth;
NOW,
THEREFORE, in consideration of the premises and the agreements
hereinafter set forth, the parties hereto hereby agree as follows:
SECTION 1. DEFINITIONS
1.1
Defined Terms . As used in this Agreement, the terms listed
in this Section 1.1 shall have the respective meanings set
forth in this Section 1.1.
"
Acceptance Fee ": a fee payable by the Canadian Borrower
with respect to the acceptance of a Bankers’ Acceptance by a
Lender under this Agreement, as set forth in Section 2.16(d).
"
Acquisition Agreements ": any and all asset purchase or
stock purchase agreements entered into by any Group Member in
connection with any Permitted Acquisition, as the same may be
amended, supplemented, replaced or otherwise modified from time to
time in accordance with this Agreement.
"
Acquisition Documentation ": collectively, the Acquisition
Agreements and all schedules, exhibits, annexes and amendments
thereto and all side letters and agreements affecting the terms
thereof or entered into in connection therewith, in each case, as
amended, supplemented or otherwise modified from time to time in
accordance with this Agreement.
"
Additional Lender ": as defined in Section 2.26(b).
"
Adjustment Date ": as defined in the Pricing Grid.
"
Administrative Agent ": as defined in the preamble hereto.
"
Affiliate ": as to any Person, any other Person that,
directly or indirectly, is in control of, is controlled by, or is
under common control with, such Person. For purposes of this
definition, "control" of a Person means the power, directly or
indirectly, either to (a) vote 10% or more of the securities
having ordinary voting power for the election of directors (or
persons performing similar functions) of such Person or
(b) direct or cause the direction of the management and
policies of such Person, whether by contract or otherwise.
"
Agents ": the collective reference to the Syndication Agent,
the Co-Documentation Agents, the Canadian Agent, the Canadian
Collateral Agent and the Administrative Agent.
"
Aggregate Exposure ": with respect to any Lender at any
time, an amount equal to the sum of (i) the aggregate then
unpaid principal amount of such Lender’s Term Loans and
(ii) the amount of such Lender’s Revolving Credit
Commitment then in effect or, if the Revolving Credit Commitments
have been terminated, the amount of such Lender’s Revolving
Extensions of Credit then outstanding.
"
Aggregate Exposure Percentage ": with respect to any Lender
at any time, the ratio (expressed as a percentage) of such
Lender’s Aggregate Exposure at such time to the sum of the
Aggregate Exposures of all Lenders at such time.
"
Agreement ": this Credit Agreement, as amended, restated,
supplemented, replaced or otherwise modified from time to time.
"
Applicable Margin ": for each Type of Loan under each
Facility, the rate per annum set forth opposite such Facility under
the relevant column heading below:
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Canadian Prime
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Base Rate
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Acceptance
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Eurodollar
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Rate Loans
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Loans
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Fee
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Loans
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Revolving Credit Facilities (including Swing Line Loans)
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2.50
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%
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2.50
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%
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3.50
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%
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3.50
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%
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US Term Loan Facility
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N.A.
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2.50
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%
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N.A.
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3.50
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%
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Canadian Term Loan Facility
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2.50
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%
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N.A.
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3.50
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%
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N.A.
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provided , that on and after the first Adjustment Date
occurring after the completion of two full fiscal quarters of the
US Borrower after the Closing Date, the Applicable Margin with
respect to Revolving Credit Loans, Swing Line Loans and Term Loans
will be determined pursuant to the Pricing Grid.
"
Application ": an application, in such form as the relevant
Issuing Lender may specify from time to time, requesting such
Issuing Lender to issue a Letter of Credit.
2
"
Arrangers ": as defined in the preamble hereto.
"
Asset Sale ": any Disposition of Property or series of
related Dispositions of Property (excluding any such Disposition
permitted by clause (a), (b), (c) or (f) of
Section 7.5) which yields gross proceeds to any Group Member
(valued at the initial principal amount thereof in the case of
non-cash proceeds consisting of notes or other debt securities and
valued at fair market value in the case of other non-cash proceeds)
in excess of $1,000,000.
"
Assignee ": as defined in Section 10.6(c).
"
Assignment and Assumption ": as defined in
Section 10.6(c).
"
Assignor ": as defined in Section 10.6(c).
"
Auto-Reinstatement Letter of Credit ": as defined in
Section 3.1(b).
"
Available Revolving Credit Commitment ": with respect to any
Revolving Credit Lender at any time, an amount in Dollars equal to
the excess, if any, of (a) such Lender’s Revolving
Credit Commitments then in effect over (b) the Dollar
Equivalent of such Lender’s Revolving Extensions of Credit
then outstanding; provided , that in calculating any
Lender’s Revolving Extensions of Credit for the purpose of
determining such Lender’s (other than the Swing Line
Lender’s) Available Revolving Credit Commitment for purposes
of Section 2.10(a), the aggregate principal amount of Swing
Line Loans then outstanding shall be deemed to be zero. The
Available Revolving Credit Commitment with respect to the US
Borrower shall be calculated by using only the Revolving Credit
US/CA Commitments then in effect and the Revolving US/CA Extensions
of Credit.
" BA
Equivalent Loan ": a Canadian Term Loan or a Revolving Credit
Loan denominated in Canadian Dollars made by a Non BA Lender
evidenced by a Discount Note.
"
Bankers’ Acceptance ": a bill of exchange, including a
depository bill issued in accordance with the Depository Bills and
Notes Act (Canada), denominated in Canadian Dollars and accepted by
a Lender, and includes a Discount Note.
"
Base Rate ": for any day, a rate per annum (rounded upwards,
if necessary, to the next 1/100 of 1%) 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
1 /2 of 1%. For purposes hereof: " Prime Rate "
shall mean the prime lending rate as set forth on the British
Banking Association Telerate Page 5 (or such other comparable page
as may, in the opinion of the Administrative Agent, replace such
page for the purpose of displaying such rate), as in effect from
time to time. The Prime Rate is a reference rate and does not
necessarily represent the lowest or best rate actually available.
Any change in the Base Rate 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.
"
Base Rate Loans ": Loans for which the applicable rate of
interest is based upon the Base Rate or, with respect to Canadian
Loans denominated in Dollars, the US Base Rate in Canada.
3
"
Benefited Lender ": as defined in Section 10.7.
"
Board ": the Board of Governors of the Federal Reserve
System of the United States of America (or any successor).
"
Borrowers ": as defined in the preamble hereto.
"
Borrowing Date ": any Business Day specified by the
applicable Borrower, as a date on which such Borrower requests the
relevant Lenders to make Loans hereunder.
"
Borrowing Notice ": with respect to any request for
borrowing of Loans hereunder, a notice from the applicable Borrower
substantially in the form of, and containing the information
prescribed by, Exhibit J, delivered to the Administrative
Agent or the Canadian Agent, as applicable.
"
Business Day ": (a) for all purposes other than as
covered by clause (b) below, a day other than a Saturday,
Sunday or other day on which commercial banks in New York City or
(solely with respect to all notices and determinations in
connection with, and payments of principal and interest on,
Canadian Loans) Toronto, Ontario, are authorized or required by law
to close and (b) with respect to all notices and
determinations in connection with, and payments of principal and
interest on, Eurodollar Loans, any day which is a Business Day
described in clause (a) and which is also a day for trading by
and between banks in Dollar deposits in the interbank Eurodollar
market.
"
Canadian Agent ": as defined in the preamble hereto.
"
Canadian Benefit Plans ": all material employee benefit
plans maintained or contributed to by any Group Member that are not
Canadian Pension Plans including, without limitation, all profit
sharing, savings, supplemental retirement, retiring allowance,
severance, pension, deferred compensation, welfare, bonus,
incentive compensation, phantom stock, supplementary unemployment
benefit plans or arrangements and all material life, health, dental
and disability plans and arrangements in which the employees or
former employees of any Group Member employed in Canada participate
or are eligible to participate, but excluding all stock option or
stock purchase plans.
"
Canadian Borrower ": as defined in the preamble hereto.
"
Canadian Collateral Agent ": as defined in the preamble
hereto.
"
Canadian Collateral Agreement ": the Canadian Collateral
Agreement to be executed and delivered by the Canadian Borrower and
each Canadian Subsidiary Guarantor, substantially in the form of
Exhibit A-2, as the same may be amended, restated,
supplemented, replaced or otherwise modified from time to time.
"
Canadian Dollars and Cdn. $ ": lawful currency of
Canada.
4
"
Canadian Funding Office ": the office specified from time to
time by the Canadian Agent as its funding office by notice to the
Canadian Borrower, the Administrative Agent and the applicable
Lenders.
"
Canadian Loans ": (a) the Canadian Term Loans and
(b) any Revolving Credit Loans made to the Canadian Borrower.
"
Canadian Payment Office ": the office specified from time to
time by the Canadian Agent as its payment office by notice to the
Canadian Borrower.
"
Canadian Pension Plans ": any plan which is considered to be
a pension plan for the purposes of any applicable pension benefits
standards statute and/or regulation in Canada established,
maintained or contributed to by any Group Member, their respective
employees or former employees.
"
Canadian Prime Rate ": on any day, the greater of:
(a) the annual rate of interest announced from time to time by
the Canadian Agent as being its reference rate then in effect for
determining interest rates on Canadian Dollar denominated
commercial loans made by it in Canada, and (b) the CDOR Rate
in effect from time to time plus 75 basis points per annum. Any
change in the Canadian Prime Rate shall be effective as of the
opening of business on the date the change becomes effective
generally.
"
Canadian Prime Rate Loans ": Loans for which the applicable
rate of interest is based upon the Canadian Prime Rate.
"
Canadian Subsidiaries ": Ram-Pak Compaction Systems Ltd, a
corporation organized under the laws of Canada, and each other
Subsidiary of the US Borrower, to the extent such Subsidiary is
organized under the laws of Canada or any province thereof.
"
Canadian Term Loan ": as defined in Section 2.1(a).
"
Canadian Term Loan Commitment ": as to any Lender, the
obligation of such Lender, if any, to make a Canadian Term Loan to
the Canadian Borrower hereunder in a principal amount not to exceed
the amount set forth under the heading "Canadian Term Loan
Commitment" opposite such Lender’s name on
Schedule 1 to the Lender Addendum delivered by such
Lender, or, as the case may be, in the Assignment and Assumption
pursuant to which such Lender became a party hereto, as the same
may be changed from time to time pursuant to the terms hereof. The
original aggregate amount of the Canadian Term Loan Commitments is
Cdn. $132,192,200.
"
Canadian Term Loan Facility ": as defined in the definition
of Facility.
"
Canadian Term Loan Lenders ": each Lender that has a
Canadian Term Loan Commitment or is the holder of a Canadian Term
Loan. "
Canadian Term Loan Percentages ": as to any Canadian Term
Loan Lender at any time, the percentage which such Lender’s
Canadian Term Loan Commitment then constitutes of the aggregate
Canadian Term Loan Commitments (or, at any time after the
funding
5
of the Canadian Term Loans, the percentage which the aggregate
principal amount of such Lender’s Canadian Term Loans then
outstanding constitutes of the aggregate principal amount of the
Canadian Term Loans then outstanding).
"
Capital Expenditures ": for any period, with respect to any
Person, the aggregate of all expenditures by such Person for the
acquisition or leasing (pursuant to a capital lease) of fixed or
capital assets or additions to equipment (including replacements,
capitalized repairs and improvements during such period) to the
extent required to be capitalized under GAAP on a balance sheet of
such Person.
"
Capital Holdings Company ": Capital Environmental Holdings
Company, a Nova Scotia unlimited liability company.
"
Capital Lease Obligations ": with respect to any Person, 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 the purposes of
this Agreement, the amount of such obligations at any time shall be
the capitalized amount thereof at such time determined in
accordance with GAAP.
"
Capital Stock ": any and all shares, interests,
participations or other equivalents (however designated) of capital
stock of a corporation, any and all equivalent ownership interests
in a Person (other than a corporation) and any and all warrants,
rights or options to purchase any of the foregoing.
"
Cash Equivalents ": (a) marketable direct obligations
issued by, or unconditionally guaranteed by, the United States of
America or Canada or issued by any agency thereof and backed by the
full faith and credit of the United States of America or Canada or
any agency, state, province or territory thereof, in each case
maturing within one year from the date of acquisition;
(b) certificates of deposit, time deposits or overnight bank
deposits having maturities of six months or less from the date of
acquisition issued by any Lender or by any commercial bank
organized under the laws of the United States of America or any
state thereof or is a bank listed in Schedule I of the Bank
Act (Canada) and having combined capital and surplus of not less
than $500,000,000; (c) commercial paper of an issuer rated at
least A-2 by S&P or P-2 by Moody’s or R-1 by Dominion
Bond Rating Service Limited (" DBRS ") or carrying an
equivalent rating by a nationally recognized rating agency, if all
of the three named rating agencies cease publishing ratings of
commercial paper issuers generally, and maturing within six months
from the date of acquisition; (d) repurchase obligations of
any Lender or of any commercial bank satisfying the requirements of
clause (b) of this definition, having a term of not more than
30 days with respect to securities issued or fully guaranteed
or insured by the United States of America or the Government of
Canada; (e) securities with maturities of one year or less
from the date of acquisition issued or fully guaranteed by any
state, province, commonwealth or territory of the United States of
America or Canada, by any political subdivision or taxing authority
of any such state, province, commonwealth or territory or by any
foreign government, the securities of which state, province,
commonwealth, territory, political subdivision, taxing authority or
foreign government (as the case may be) are rated at least A by
S&P, A by Moody’s, or A by DBRS; (f) securities with
maturities of six months or less from the
6
date of acquisition backed by standby letters of credit issued
by any Lender or any commercial bank satisfying the requirements of
clause (b) of this definition; and (g) shares of money
market mutual or similar funds which invest exclusively in assets
satisfying the requirements of clauses (a) through (f) of
this definition.
"
CDOR Rate ": on any day, the annual rate of interest which
is the arithmetic average of the "BA 1 month" rates applicable
to Canadian Dollar Bankers’ Acceptances issued by
Schedule I Lenders identified as such on the Reuters Screen
CDOR Page at approximately 10:00 A.M. (Toronto time) on such
day (as adjusted by the Canadian Agent after 10:00 A.M. to
reflect any error in any posted rate or in the posted average
annual rate). If the rate does not appear on the Reuters Screen
CDOR Page as contemplated above, then the CDOR Rate on any day
shall be calculated as the arithmetic average of the discount rates
applicable to one month Canadian Dollar Bankers’ Acceptances
of, and as quoted by, any two of the Schedule I Lenders,
chosen by the Canadian Agent in its discretion, as of
10:00 A.M. on the day, or if the day is not a Business Day,
then on the immediately preceding Business Day. If less than two
Lenders quote the aforementioned rate, the CDOR Rate shall be the
rate quoted by the Canadian Agent.
"
Change of Control ": the occurrence of any of the following
events: (a) any "person" or "group" (as such terms are used in
Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended (the "Exchange Act")), excluding the
Existing Investors, shall become, or obtain rights (whether by
means or warrants, options or otherwise) to become, the "beneficial
owner" (as defined in Rules 13(d)-3 and 13(d)-5 under the
Exchange Act), directly or indirectly, of more than 30% of the
outstanding common stock of the US Borrower; (b) during any
period of 12 consecutive months the board of directors of the US
Borrower shall cease to consist of a majority of Continuing
Directors; (c) the US Borrower shall cease to beneficially own
and control 100% on a fully diluted basis of the economic and
voting interest in the common stock of the Canadian Borrower; or
(d) any Specified Change of Control.
"
Closing Date ": the date on which the conditions precedent
set forth in Section 5.1 have been satisfied or waived, which
date shall be deemed to be October 8, 2008.
"
Co-Documentation Agents ": as defined in the preamble
hereto.
"
Code ": the Internal Revenue Code of 1986, as amended from
time to time.
"
Collateral ": all Property of the Loan Parties, now owned or
hereafter acquired, upon which a Lien is purported to be created by
any Security Document.
"
Commitment ": with respect to any Lender, the sum of the
Term Loan Commitment and the Revolving Credit Commitment of such
Lender.
"
Commitment Fee Rate ": 1/2 of 1% per annum.
"
Commonly Controlled Entity ": an entity, whether or not
incorporated, that is under common control with the US Borrower
within the meaning of Section 4001(b)(1) of ERISA or is part
of a group that includes the US Borrower and that is treated as a
single employer under Section 414(b) or 414(c) of
the Code or, solely for purposes of Section 412 of the Code to
the extent required by such section, Section 414(m) or
414(o) of the Code.
7
"
Compliance Certificate ": a certificate duly executed by a
Responsible Officer, substantially in the form of Exhibit B.
"
Confidential Information Memorandum ": the Confidential
Information Memorandum dated July 2008 and furnished to the
initial Lenders in connection with the syndication of the
Facilities.
"
Consolidated Current Assets ": of any Person at any date,
all amounts (other than cash and Cash Equivalents) that would, in
conformity with GAAP, be set forth opposite the caption "total
current assets" (or any like caption) on a consolidated balance
sheet of such Person and its Subsidiaries at such date.
"
Consolidated Current Liabilities ": of any Person at any
date, all amounts that would, in conformity with GAAP, be set forth
opposite the caption "total current liabilities" (or any like
caption) on a consolidated balance sheet of such Person and its
Subsidiaries at such date, but excluding, with respect to the US
Borrower, (a) the current portion of any Funded Debt of the
Group Members and (b), without duplication, all Indebtedness
consisting of Revolving Credit Loans, Letters of Credit or Swing
Line Loans, to the extent otherwise included therein.
"
Consolidated EBITDA ": of any Person for any period,
Consolidated Net Income of such Person and its Subsidiaries for
such period plus, without duplication and to the extent reflected
as a charge in the statement of such Consolidated Net Income for
such period, the sum of (a) income tax expense, (b) total
cash interest expense of such Person and its Subsidiaries,
amortization or write-off of debt discount and debt issuance costs
and commissions, discounts and other fees and charges associated
with Indebtedness, (c) depreciation and amortization expense,
(d) amortization of intangibles (including, but not limited
to, goodwill) and organization costs, (e) any extraordinary,
unusual or non-recurring expenses or losses (including, whether or
not otherwise includable as a separate item in the statement of
such Consolidated Net Income for such period, losses on sales of
assets outside of the ordinary course of business), (f) any
other non-cash charges and expenses (including any losses
attributable to fluctuations in foreign currency exchange rates),
(g) one-time severance charges and restructuring charges not
to exceed $5,000,000 over the term of this Agreement,
(h) costs incurred in connection with Permitted Acquisitions
and other acquisitions permitted hereunder, whether or not
consummated, in each case to the extent expensed and not
capitalized and (i) to the extent not constituting cash
interest expense, all expenses attributable to dividends and
accruals in respect of preferred stock, and minus, to the extent
included in the statement of such Consolidated Net Income for such
period, the sum of (a) interest income (except to the extent
deducted in determining total cash interest expense), (b) any
extraordinary, unusual or non-recurring income or gains (including,
whether or not otherwise includable as a separate item in the
statement of such Consolidated Net Income for such period, gains on
the sales of assets outside of the ordinary course of business) and
(c) any other non-cash income (including any gains
attributable to fluctuations in foreign currency exchange rates),
all as determined on a consolidated basis; provided that,
for purposes of calculating Consolidated EBITDA of the Group
Members for any period for any reason other than the calculation of
the Consolidated Interest Coverage Ratio, (i) the Consolidated
EBITDA of any business unit acquired by the Group Members during
such period shall be included on a pro forma basis (but without
giving effect to any projected synergies or cost savings resulting
from such acquisition except those adjustments in accordance with
Regulation S-X of the
8
Securities Act of 1933 or otherwise agreed to by the
Administrative Agent) for such period (assuming for purposes of the
calculation of Consolidated EBITDA the consummation of such
acquisition occurred on the first day of such period but without
duplication of the Consolidated EBITDA of such business unit after
the date of acquisition thereof) if the consolidated balance sheet
of such acquired business unit as at the end of the period
preceding the acquisition of such business unit and the related
consolidated statements of income and stockholders’ equity
and of cash flows (or, if no such balance sheet or statements of
income and stockholder’s equity and of cash flows is
available, such other financial information reasonably satisfactory
to the Administrative Agent) for the period in respect of which
Consolidated EBITDA is to be calculated (x) have been
previously provided to the Administrative Agent and (y) either
(1) have been reported on without a qualification arising out
of the scope of the audit by independent certified public
accountants of nationally recognized standing or (2) have been
found acceptable by the Administrative Agent and (ii) the
Consolidated EBITDA of any business unit Disposed of by the Group
Members during such period shall be excluded for such period
(assuming for purposes of the calculation of Consolidated EBITDA
the consummation of such Disposition occurred on the first day of
such period).
"
Consolidated Interest Coverage Ratio ": for any period, the
ratio of (a) Consolidated EBITDA of the Group Members for such
period to (b) Consolidated Interest Expense of the Group
Members for such period.
"
Consolidated Interest Expense ": of any Person for any
period, total cash interest expense (including that attributable to
Capital Lease Obligations) of such Person and its Subsidiaries for
such period with respect to all outstanding Indebtedness of such
Person and its Subsidiaries (including, without limitation, all
commissions, discounts and other fees and charges owed by such
Person with respect to letters of credit and bankers’
acceptance financing and net cash costs of such Person under Hedge
Agreements in respect of interest rates to the extent such net cash
costs are allocable to such period in accordance with GAAP).
"
Consolidated Leverage Ratio ": as at the last day of any
period of the US Borrower, the ratio of (a) Consolidated Total
Debt on such day to (b) Consolidated EBITDA of the Group
Members for such period.
"
Consolidated Net Income ": of any Person for any period, the
consolidated net income (or loss) of such Person and its
Subsidiaries for such period, determined on a consolidated basis in
accordance with GAAP; provided , that in calculating
Consolidated Net Income of the Group Members for any period, there
shall be excluded (a) the income (or deficit) of any Person
accrued prior to the date it becomes a Group Member, or is merged
into or consolidated with any Group Member, (b) the income (or
deficit) of any Person (other than a Group Member) in which any
Group Member has an ownership interest, except to the extent that
any such income is actually received by a Group Member in the form
of cash dividends or similar distributions and (c) the
undistributed earnings of any Group Member, to the extent that the
declaration or payment of dividends or similar distributions by
such Subsidiary is not at the time permitted by the terms of any
Contractual Obligation (other than under any Loan Document) or
Requirement of Law applicable to such Subsidiary.
9
"
Consolidated Senior Debt ": all Consolidated Total Debt
other than Subordinated Debt.
"
Consolidated Senior Secured Debt ": at any date, without
duplication, the sum of (i) the aggregate principal amount of
all Term Loans then outstanding, (ii) the aggregate principal
amount of Revolving Credit Loans then outstanding, (iii) the
aggregate principal amount of Swing Line Loans then outstanding and
(iv) the aggregate principal amount of any other secured
Consolidated Senior Debt then outstanding.
"
Consolidated Senior Secured Leverage Ratio ": as of the last
day of any period of the US Borrower, the ratio of
(a) Consolidated Senior Secured Debt on such day to
(b) Consolidated EBITDA of the Group Members for such period.
"
Consolidated Total Debt ": at any date, without duplication,
the aggregate principal amount of all Indebtedness of the Group
Members at such date that would be classified as a liability on the
consolidated balance sheet of the Group Members, determined on a
consolidated basis in accordance with GAAP; provided that
earnouts and other similar contingent purchase price obligations
incurred in connection with any Permitted Acquisition shall be
excluded from the determination of Consolidated Total Debt.
"
Consolidated Working Capital ": at any date, the difference
of (a) Consolidated Current Assets of the Group Members on
such date less (b) Consolidated Current Liabilities of the
Group Members on such date.
"
Continuing Directors ": the directors of the US Borrower on
the Closing Date and each other director of the US Borrower, if, in
each case, such other director’s nomination for election to
the board of directors of the US Borrower is recommended by at
least a majority of the then Continuing Directors, or such other
director receives the vote of the Existing Investors in his or her
election by the shareholders of the US Borrower.
"
Contractual Obligation ": with respect to any Person, any
provision of any security issued by such Person or of any
agreement, instrument or other undertaking to which such Person is
a party or by which it or any of its Property is bound.
"
Control Investment Affiliate ": with respect to any Person,
any other Person that (a) directly or indirectly, is in
control of, is controlled by, or is under common control with, such
Person and (b) is organized by such Person or the manager,
advisor or administrator of such Person primarily for the purpose
of making equity or debt investments in one or more companies. For
purposes of this definition, "control" of a Person means the power,
directly or indirectly, to direct or cause the direction of the
management and policies of such Person, whether by contract or
otherwise.
"
Default ": any of the events specified in Section 8,
whether or not any requirement for the giving of notice, the lapse
of time, or both, has been satisfied.
"
Derivatives Counterparty ": as defined in
Section 7.6.
10
"
Discount Note ": a non-interest bearing promissory note
denominated in Canadian Dollars, substantially in the form of
Exhibit G-4, issued to a Non BA Lender to evidence a BA
Equivalent Loan.
"
Discount Proceeds ": for any Bankers’ Acceptance
issued hereunder, an amount calculated on the applicable Borrowing
Date by multiplying (a) the face amount of the Bankers’
Acceptance by (b) the quotient obtained by dividing
(i) one by (ii) the sum of one plus the product of
(A) the Discount Rate applicable to the Bankers’
Acceptance and (B) a fraction, the numerator of which is the
applicable Interest Period and the denominator of which is 365 with
the quotient being rounded up or down to the fifth decimal place
and 0.00005 being rounded up.
"
Discount Rate ": (a) in respect of any Bankers’
Acceptance accepted by a Lender that is a Schedule I Lender,
the CDOR Rate for the applicable period; and (b) in respect of
any Bankers’ Acceptance accepted by a Lender that is a
Schedule II Lender, the CDOR Rate for the applicable period
plus 0.10%.
"
Disposition ": with respect to any Property, any sale,
lease, sale and leaseback, assignment, conveyance, transfer or
other disposition thereof (other than the granting or creation of
any Liens with respect to such property); and the terms "
Dispose " and " Disposed of " shall have correlative
meanings.
"
Dollars " and " $ ": lawful currency of the United
States of America.
"
Dollar Equivalent ": (i) as to any amount denominated
in Canadian Dollars at any time, the equivalent amount in Dollars
as determined on the basis of the Exchange Rate for the purchase of
Dollars with Canadian Dollars as of the date of the calculation and
(ii) as to any amount denominated in Dollars at any time, such
amount.
"
Domestic Subsidiary ": any Subsidiary of the US Borrower
organized under the laws of any jurisdiction within the United
States of America.
"
Environmental Laws ": any and all laws, rules, orders,
regulations, statutes, ordinances, codes, decrees, or other legally
enforceable requirements (including, without limitation, common
law) of any international authority, foreign government, the United
States of America, Canada or any state, provincial, territorial,
local, municipal or other Governmental Authority, regulating,
relating to or imposing liability or standards of conduct
concerning pollution, the protection of the environment or of human
health, or employee health and safety, or the use, manufacture,
generation, storage, treatment, disposal, handling or
transportation of, or exposure to, hazardous substances and wastes,
as has been, is now, or hereafter becomes, in effect.
"
Environmental Permits ": any and all permits, licenses,
approvals, registrations, notifications, exemptions and other
authorizations required under any applicable Environmental Law.
11
"
ERISA ": the Employee Retirement Income Security Act of
1974, as amended from time to time.
"
Eurocurrency Reserve Requirements ": for any day, the
aggregate (without duplication) of the maximum rates (expressed as
a decimal fraction) of reserve requirements in effect on such day
(including, without limitation, basic, supplemental, marginal and
emergency reserves) under any regulations of the Board or other
Governmental Authority having jurisdiction with respect thereto
dealing with reserve requirements prescribed for eurocurrency
funding (currently referred to as "Eurocurrency Liabilities" in
Regulation D of the Board) maintained by a member bank of the
Federal Reserve System.
"
Eurodollar Base Rate ": with respect to each day during each
Interest Period, the rate per annum determined on the basis of the
rate for deposits in Dollars for a period equal to such Interest
Period commencing on the first day of such Interest Period
appearing on Reuters Screen LIBOR01 Page as of 11:00 A.M.,
London time, two Business Days prior to the beginning of such
Interest Period. In the event that such rate does not appear on
Reuters Screen LIBOR01 Page (or otherwise on such screen), the "
Eurodollar Base Rate " for purposes of this definition shall
be determined by reference to such other comparable publicly
available service for displaying eurodollar rates as may be
selected by the Administrative Agent.
"
Eurodollar Loans ": Loans for which the applicable rate of
interest is based upon the Eurodollar Rate.
"
Eurodollar Rate ": with respect to each day during each
Interest Period, a rate per annum determined for such day in
accordance with the following formula (rounded upward to the
nearest 1/100th of 1%): Eurodollar Base Rate 1.00 –
Eurocurrency Reserve Requirements
"
Eurodollar Tranche ": the collective reference to Eurodollar
Loans the then current Interest Periods with respect to all of
which begin on the same date and end on the same later date
(whether or not such Loans shall originally have been made on the
same day).
"
Event of Default ": any of the events specified in
Section 8, provided that any requirement for the giving
of notice, the lapse of time, or both, has been satisfied.
"
Excess Cash Flow ": for any fiscal year of the US Borrower,
the difference, if any, of (a) the sum, without duplication,
of (i) Consolidated Net Income of the US Borrower for such
fiscal year, (ii) the amount of all non-cash charges
(including depreciation and amortization) deducted in arriving at
such Consolidated Net Income, (iii) the amount of the
decrease, if any, in Consolidated Working Capital for such fiscal
year, (iv) the aggregate net amount of non cash loss on the
Disposition of Property by the Group Members during such fiscal
year (other than sales of inventory in the ordinary course of
business), to the extent deducted in arriving at such Consolidated
Net Income and (v) the net increase during such fiscal year
(if any) in deferred tax accounts of the Group Members,
minus (b) the sum, without duplication, of (i) the
amount of all non-cash credits included in arriving at such
Consolidated Net Income,
12
(ii) the aggregate amount actually paid by the Group
Members in cash during such fiscal year on account of Capital
Expenditures (excluding (x) the amount of any Capital
Expenditure to the extent financed by Funded Debt (other than
Indebtedness under revolving credit arrangements) incurred and used
to finance such expenditures and (y) the amount of any such
Capital Expenditures financed with the proceeds of any Reinvestment
Deferred Amount in such fiscal year), (iii) to the extent
added in calculating Consolidated Net Income the aggregate amount
of Reinvestment Deferred Amounts on the last day of such fiscal
year, (iv) the aggregate amount of all optional prepayments of
Revolving Credit Loans and Swing Line Loans during such fiscal year
to the extent accompanying permanent optional reductions of the
Revolving Credit Commitments and all optional prepayments of the
Term Loans during such fiscal year, (v) the aggregate amount
of all regularly scheduled principal payments of Funded Debt
(including, without limitation, the Term Loans) of the Group
Members made during such fiscal year (other than in respect of any
revolving credit facility to the extent there is not an equivalent
permanent reduction in commitments thereunder), (vi) the
amount of the increase, if any, in Consolidated Working Capital for
such fiscal year, (vii) the aggregate net amount of non cash
gain on the Disposition of Property by the Group Members during
such fiscal year (other than sales of inventory in the ordinary
course of business), to the extent included in arriving at such
Consolidated Net Income, (viii) the net decrease during such
fiscal year (if any) in deferred tax accounts of the Group Members,
(ix) the amount of any Restricted Payments permitted under
Sections 7.6(b) and (f) made in such fiscal year and
(x) the aggregate amount of cash from operations used to
consummate any acquisition permitted under Section 7.8 in such
fiscal year.
"
Excess Cash Flow Application Date ": as defined in
Section 2.13(c).
"
Exchange Rate ": on any day, (i) with respect to
Canadian Dollars, the spot rate at which Dollars are offered on
such day by the Canadian Agent in Toronto, Canada (or such
other location selected by the Canadian Agent) for Canadian
Dollars, and (ii) with respect to Dollars, the spot rate at
which Canadian Dollars are offered on such day by the Canadian
Agent in Toronto, Canada (or such other location selected by
the Canadian Agent) for Dollars.
"
Exchangeable Shares ": equity securities issued by the
Canadian Borrower to certain of its security holders in connection
with the Migration that are exchangeable into common stock of the
US Borrower.
"
Excluded Foreign Subsidiaries ": any Foreign Subsidiary in
respect of which either (a) the pledge of all of the Capital
Stock or any of the assets of such Subsidiary as Collateral for the
Obligations or (b) the guaranteeing by such Subsidiary of the
Obligations, would, in the good faith judgment of the US Borrower,
result in adverse tax consequences to the US Borrower.
"
Excluded Proceeds ": Net Cash Proceeds received by the US
Borrower from the issuance of its Capital Stock (including
preferred stock) to the extent such proceeds are used to make
Investments permitted by Sections 7.8(g) and (i) or
Restricted Payments permitted by Section 7.6(c).
"
Excluded Taxes ": as defined in Section 2.21(a).
13
"
Existing Credit Agreement ": the Second Amended and Restated
Credit Agreement, dated as of December 28, 2006 (as amended,
restated, supplemented or otherwise modified prior to the Closing
Date), among the Borrowers, the lenders party thereto, Lehman
Brothers Inc., as exclusive advisor, sole lead arranger and sole
bookrunner, CIBC World Markets Corp., as syndication agent, Bank of
America, N.A., as documentation agent, Lehman Commercial Paper
Inc., as administrative agent, and Canadian Imperial Bank of
Commerce, as Canadian agent.
"
Existing Investors ": the collective reference to Michael
DeGroote and each manager, officer and director of the US Borrower
who owned Capital Stock of the US Borrower on the Closing Date and
their Control Investment Affiliates.
"
Existing Issuing Lender ": Bank of America, N.A., as issuer
of the Existing Letters of Credit.
"
Existing Letters of Credit" : the letters of credit
described in Annex B.
"
Facility ": each of (a) the US Term Loan Commitment and
the US Term Loans made thereunder, (the " US Term Loan
Facility "), (b) the Canadian Term Loan Commitment and the
Canadian Term Loans made thereunder, (the " Canadian Term Loan
Facility "), (c) the Revolving Credit CA Commitments and
the extensions of credit made thereunder (the " Revolving Credit
CA Facility "), (d) the Revolving Credit US/CA Commitments
and the extensions of credit made thereunder (the " Revolving
Credit US/CA Facility ") and (e) any Incremental Term Loan
Facility.
"
Federal Funds Effective Rate ": for any day, the weighted
average of the rates on overnight federal funds transactions with
members of the Federal Reserve System arranged by federal funds
brokers, as published 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 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.
"
Foreign Subsidiary ": any Subsidiary of the US Borrower that
is not a Domestic Subsidiary or a Canadian Subsidiary.
"
FQ1 ", " FQ2 ", " FQ3 ", and " FQ4 ":
when used with a numerical year designation, means the first,
second, third or fourth fiscal quarters, respectively, of such
fiscal year of the US Borrower (e.g., FQ1 2009 means the first
fiscal quarter of the US Borrower’s 2009 fiscal year, which
ends March 31, 2009).
"
Funded Debt ": means Indebtedness that matures more than one
year from the date of its creation or matures within one year from
such date but is renewable or extendible, at the option of such
Person, to a date more than one year from such date or arises under
a revolving credit or similar agreement that obligates the lender
or lenders to extend credit during a period of more than one year
from such date.
"
Funding Office ": the office specified from time to time by
the Administrative Agent as its funding office by notice to the US
Borrower and the Lenders.
14
"
GAAP ": generally accepted accounting principles in the
United States of America as in effect from time to time.
"
Governmental Authority ": any nation or government, any
state, province, territory or other political subdivision thereof
and any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to
government.
"
Group Member ": the US Borrower and each of its Subsidiaries
(including the Canadian Borrower).
"
Guarantee and US Collateral Agreement ": the Guarantee and
US Collateral Agreement to be executed and delivered by the
Borrowers and each Subsidiary Guarantor, substantially in the form
of Exhibit A-1, as the same may be amended, restated,
supplemented, replaced or otherwise modified from time to time.
"
Guarantee Obligation ": with respect to any Person (the "
guaranteeing person "), any obligation of (a) the
guaranteeing person or (b) another Person (including, without
limitation, any bank under any letter of credit), if to induce the
creation of which the guaranteeing person has issued a
reimbursement, counterindemnity or similar obligation, in either
case guaranteeing or in effect guaranteeing any Indebtedness,
leases, dividends or other obligations (the " primary
obligations ") of any other third Person (the " primary
obligor ") in any manner, whether directly or indirectly,
including, without limitation, any obligation of the guaranteeing
person, whether or not contingent, (i) to purchase any such
primary obligation or any Property constituting direct or indirect
security therefor, (ii) to advance or supply funds
(1) for the purchase or payment of any such primary obligation
or (2) to maintain working capital or equity capital of the
primary obligor or otherwise to maintain the net worth or solvency
of the primary obligor, (iii) to purchase Property, securities
or services primarily for the purpose of assuring the owner of any
such primary obligation of the ability of the primary obligor to
make payment of such primary obligation or (iv) otherwise to
assure or hold harmless the owner of any such primary obligation
against loss in respect thereof; provided , however ,
that the term Guarantee Obligation shall not include endorsements
of instruments for deposit or collection in the ordinary course of
business. The amount of any Guarantee Obligation of any
guaranteeing person shall be deemed to be the lower of (a) an
amount equal to the stated or determinable amount of the primary
obligation in respect of which such Guarantee Obligation is made
and (b) the maximum amount for which such guaranteeing person
may be liable pursuant to the terms of the instrument embodying
such Guarantee Obligation, unless such primary obligation and the
maximum amount for which such guaranteeing person may be liable are
not stated or determinable, in which case the amount of such
Guarantee Obligation shall be such guaranteeing person’s
maximum reasonably anticipated liability in respect thereof as
determined by the Borrowers in good faith.
"
Guarantors ": the collective reference to the Subsidiary
Guarantors.
"
Hedge Agreements ": all interest rate or currency swaps,
caps or collar agreements, foreign exchange agreements, commodity
contracts or similar arrangements entered into by any Group Member
providing for protection against fluctuations in interest
rates,
15
currency exchange rates, commodity prices or the exchange of
nominal interest obligations, either generally or under specific
contingencies.
"
Incremental Amendment ": as defined in Section 2.26(b).
"
Incremental Canadian Term Loans ": as defined in
Section 2.26(a).
"
Incremental Canadian Term Loan Facility ": a term loan
facility established pursuant to Section 2.26(a).
"
Incremental Term Loan Facility ": each of the Incremental
Canadian Term Loan Facility and the Incremental US Term Loan
Facility.
"
Incremental Term Loans ": as defined in
Section 2.26(a).
"
Incremental US Term Loans ": as defined in
Section 2.26(a).
"
Incremental US Term Loan Facility ": a term loan facility
established pursuant to Section 2.26(a).
"
Indebtedness ": of any Person at any date, without
duplication, (a) all indebtedness of such Person for borrowed
money, (b) all obligations of such Person for the deferred
purchase price of Property or services (other than trade payables
incurred in the ordinary course of such Person’s business),
(c) all obligations of such Person evidenced by notes,
debentures or other similar instruments, (d) all indebtedness
created or arising under any conditional sale or other title
retention agreement with respect to Property acquired by such
Person (even though the rights and remedies of the seller or lender
under such agreement in the event of default are limited to
repossession or sale of such Property), (e) all Capital Lease
Obligations or Synthetic Lease Obligations of such Person,
(f) all obligations of such Person, contingent or otherwise,
as an account party or applicant under acceptance, letter of
credit, surety bonds (except unmatured reimbursement obligations in
respect of surety bonds obtained in the ordinary course of business
to secure the performance of obligations that are not Indebtedness
pursuant to another clause of this definition) or similar
facilities, (g) the liquidation value of all redeemable
preferred Capital Stock of such Person, to the extent mandatorily
redeemable (upon the occurrence of a contingency or otherwise) in
cash on or prior to the date which is one year after the final
maturity date of the Loans (other than in connection with change of
control events and asset sales to the extent that the terms of such
Capital Stock provide that such Person may not repurchase or redeem
any such Capital Stock in connection with such change of control or
asset sale unless such repurchase or redemption complies with the
provisions of this Agreement, (h) all obligations of such
Person, contingent or otherwise, to purchase, redeem, retire or
otherwise acquire for value any Capital Stock of such Person in
cash on or prior to the date which is one year after the final
maturity date of the Loans (other than in connection with change of
control events and asset sales to the extent that the terms of such
Capital Stock provide that such Person may not repurchase or redeem
any such Capital Stock in connection with such change of control or
asset sale unless such repurchase or redemption complies with the
provisions of this Agreement), (i) all Guarantee Obligations
of such Person in respect of obligations of the kind referred to in
clauses (a) through (h) above, (j) all obligations
of the kind referred to in clauses (a) through (i) above
secured by (or for which the holder of such obligation
16
has an existing right, contingent or otherwise, to be secured
by) any Lien on Property (including, without limitation, accounts
and contract rights) owned by such Person, whether or not such
Person has assumed or become liable for the payment of such
obligation and (k) for the purposes of
Section 8(e) only, all obligations of such Person in
respect of Hedge Agreements.
"
Indemnified Liabilities ": as defined in Section 10.5.
"
Indemnitee ": as defined in Section 10.5.
"
Insolvency ": with respect to any Multiemployer Plan, the
condition that such Plan is insolvent within the meaning of
Section 4245 of ERISA.
"
Insolvent ": pertaining to a condition of Insolvency.
"
Intellectual Property ": the collective reference to all
rights, priorities and privileges relating to intellectual
property, whether arising under United States of America, Canada,
state, provincial, territorial, multinational or foreign laws or
otherwise, including, without limitation, copyrights, copyright
licenses, patents, patent licenses, trademarks, trademark licenses,
service-marks, technology, know-how and processes, recipes,
formulas, trade secrets, and all rights to sue at law or in equity
for any infringement or other impairment thereof, including the
right to receive all proceeds and damages therefrom.
"
Interest Payment Date ": (a) as to any Base Rate Loan
(other than any Loan bearing interest at the US Base Rate in
Canada) the last day of each March, June, September and December to
occur while such Loan is outstanding and the final maturity date of
such Loan, (b) as to any Canadian Prime Rate Loan and any Loan
bearing interest at the US Base Rate in Canada, the first day of
the month following the month in which such interest was accrued,
(c) as to any Eurodollar Loan having an Interest Period of
three months or shorter, the last day of such Interest Period,
(d) as to any Eurodollar Loan having an Interest Period longer
than three months, each day that is three months, or a whole
multiple thereof, after the first day of such Interest Period and
the last day of such Interest Period and (e) as to any Loan
(other than any Revolving Credit Loan that is a Base Rate Loan or a
Canadian Prime Rate Loan and any Swing Line Loan), the date of any
repayment or prepayment made in respect thereof.
"
Interest Period ": as to any Eurodollar Loan or
Bankers’ Acceptance, (a) initially, the period
commencing on the borrowing or conversion date, as the case may be,
with respect to such Eurodollar Loan or Bankers’ Acceptance
and ending one, two, three or six months thereafter, as selected by
the applicable Borrower in its notice of borrowing or notice of
conversion, as the case may be, given with respect thereto; and
(b) thereafter, each period commencing on the last day of the
next preceding Interest Period applicable to such Eurodollar Loan
or Bankers’ Acceptance and ending one, two, three or six
months thereafter, as selected by the applicable Borrower by
irrevocable notice to the Administrative Agent or the Canadian
Agent (in respect of a Bankers’ Acceptance) not less than
three Business Days prior to the last day of the then current
Interest Period with respect thereto; provided that, all of
the foregoing provisions relating to Interest Periods are subject
to the following:
(i) if
any Interest Period would otherwise end on a day that is not a
Business Day, such Interest Period shall be extended to the next
succeeding Business Day
17
unless the result of such extension would be to carry such
Interest Period into another calendar month in which event such
Interest Period shall end on the immediately preceding Business
Day;
(ii)
any Interest Period in respect of any Eurodollar Loan that would
otherwise extend beyond the Revolving Credit Termination Date (in
the case of a Eurodollar Loan which is a Revolving Loan) or beyond
the date final payment is due on the Term Loan (in the case of a
Eurodollar Loan which is a Term Loan), shall end on the Revolving
Credit Termination Date or such due date, as applicable;
(iii)
no Interest Period in respect of a Bankers’ Acceptance may
extend beyond the Revolving Credit Termination Date; and
(iv)
any Interest Period that begins on the last Business Day of a
calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Business Day of the calendar month at
the end of such Interest Period.
"
Investments ": as defined in Section 7.8.
"
IRB Transaction ": means the issuance of industrial revenue
bonds by Governmental Authorities in connection with the purchase,
construction, development or improvement of real property by any
Group Member to be used in its business or any buildings and
equipment related thereto which are guaranteed by or backed by the
credit of any Group Member.
"
Issuing Lender ": Bank of America, N.A., The Bank of Nova
Scotia and any other Revolving Credit Lender from time to time
designated by any Borrower as an Issuing Lender with the consent of
such Revolving Credit Lender and the Administrative Agent or the
Canadian Agent, as applicable.
"
Judgment Currency ": as defined in Section 10.20.
"
L/C Commitment ": $124,833,333.33.
"
L/C Fee Payment Date ": (a) as to any Letters of Credit
denominated in Dollars, the last day of each March, June, September
and December and the last day of the Revolving Credit Commitment
Period and (b) as to any Letters of Credit denominated in
Canadian Dollars, the first day of each April, July, October and
January and the last day of the Revolving Credit Commitment Period.
"
L/C Obligations ": at any time, an amount equal to the
Dollar Equivalent of the sum of (a) the aggregate then undrawn
and unexpired amount of the then outstanding Letters of Credit and
(b) the aggregate amount of drawings under Letters of Credit
that have not then been reimbursed pursuant to Section 3.5.
"
L/C Participants ": with respect to any Letter of Credit,
the collective reference to the Revolving Credit Lenders other than
the Issuing Lender that issued such Letter of Credit.
18
"
Lender Addendum ": with respect to any applicable Lender, a
Lender Addendum, substantially in the form of Exhibit I or
such other form substantially similar to Exhibit I and
reasonably acceptable to the Borrowers and the Administrative
Agent.
"
Lenders ": as defined in the preamble hereto.
"
Letters of Credit ": as defined in Section 3.1(a).
"
Lien ": any mortgage, pledge, hypothecation, assignment,
deposit arrangement, encumbrance, lien (statutory or other), charge
or other security interest or any preference, priority or other
security agreement or preferential arrangement of any kind or
nature whatsoever (including, without limitation, any conditional
sale or other title retention agreement and any capital lease
having substantially the same economic effect as any of the
foregoing).
"
Loan ": any loan made by any Lender pursuant to this
Agreement.
"
Loan Documents ": this Agreement (including any amendments,
consents or waivers with respect thereto), the Security Documents,
the Applications and the Notes.
"
Loan Parties ": the Borrowers and each Subsidiary of either
Borrower that is a party to a Loan Document.
"
Majority Revolving Credit Facility Lenders ": the holders of
more than 50% of the Revolving Credit Commitments then in effect
or, if the Revolving Credit Commitments have been terminated, the
Revolving Extensions of Credit then outstanding.
"
Material Adverse Effect ": a material adverse effect on
(a) the business, assets, financial condition, or results of
operation of the Group Members taken as a whole or (b) the
validity or enforceability of this Agreement or any of the other
Loan Documents or the rights or remedies of the Agents or the
Lenders hereunder or thereunder.
"
Material Environmental Amount ": an amount or amounts
payable by the Group Members, in the aggregate in excess of
$2,000,000 for: unbudgeted costs to comply with any Environmental
Law; costs of any investigation, and any remediation, of any
Material of Environmental Concern; and compensatory damages
(including, without limitation damages to natural resources),
punitive damages, fines, and penalties pursuant to any
Environmental Law.
"
Materials of Environmental Concern ": any gasoline,
petroleum (including crude oil or any fraction thereof), petroleum
products or by-products, polychlorinated biphenyls,
urea-formaldehyde insulation, asbestos, radioactive substances, and
any other substances, pollutants, contaminants or forces of any
kind that are defined, listed, regulated or otherwise characterized
as hazardous, dangerous or toxic (or words of similar intent or
meaning) under any Environmental Law or could give rise to
liability under any Environmental Law.
"
Migration ": the reorganization in which the Canadian
Borrower and its Canadian Subsidiaries became indirect Subsidiaries
of the US Borrower by way of a plan of arrangement under the
Business Corporations Act (Ontario) approved by the Ontario
Superior Court of Justice and certain security holders of the
Canadian Borrower.
19
"
Moody’s ": Moody’s Investors Service, Inc.
"
Mortgaged Properties ": the owned real properties listed on
Schedule 4.24 , as to which the Administrative Agent
for the benefit of the Secured Parties shall be granted a Lien
pursuant to the Mortgages.
"
Mortgages ": each of the mortgages and deeds of trust made
by any Loan Party in favor of, or for the benefit of, the
Administrative Agent for the benefit of the Secured Parties,
substantially in the form of Exhibit D-1 with respect to
property in the United States of America, and Exhibit D-2 with
respect to property in Canada (with such changes thereto as shall
be advisable under the law of the jurisdiction in which such
mortgage or deed of trust is to be recorded), as the same may be
amended, supplemented, replaced or otherwise modified from time to
time. "
Multiemployer Plan ": a Plan that is a multiemployer plan as
defined in Section 4001(a)(3) of ERISA to which the US
Borrower or a Commonly Controlled Entity is making or accruing an
obligation to make contributions, or has within any of the
preceding five plan years made or accrued an obligation to make
contributions.
"
Net Cash Proceeds ": (a) in connection with any Asset
Sale or any Recovery Event, the proceeds thereof in the form of
cash and Cash Equivalents (including any such proceeds received by
way of deferred payment of principal pursuant to a note or
installment receivable or purchase price adjustment receivable or
otherwise, but only as and when received) of such Asset Sale or
Recovery Event, net of reasonable and customary attorneys’
fees, accountants’ fees, investment banking fees, amounts
required to be applied to the repayment of Indebtedness secured by
a Lien expressly permitted hereunder on any asset which is the
subject of such Asset Sale or Recovery Event (other than any Lien
pursuant to a Security Document), and other reasonable and
customary fees and expenses actually incurred in connection
therewith and net of taxes paid or reasonably estimated to be
payable as a result thereof (after taking into account any
available tax credits or deductions and any tax sharing
arrangements) and, solely in connection with any such Asset Sale,
any reserves in accordance with GAAP with respect to any
adjustments to the sales prices of such assets or established with
respect to any liabilities (including indemnities) potentially
arising in connection with such sale; provided , that any
such reserved amount shall be Net Cash Proceeds to the extent and
at the time not required to be so reserved, (b) in connection
with any issuance or sale of equity securities or debt securities
or instruments or the incurrence of loans, the cash proceeds
received from such issuance or incurrence, net of attorneys’
fees, investment banking fees, accountants’ fees,
underwriting discounts and commissions and other customary fees and
expenses actually incurred in connection therewith and (c) in
connection with any Purchase Price Refund, the cash amount thereof,
net of any reasonable and customary expenses incurred in the
collection thereof and net of taxes paid or reasonably estimated to
be payable as a result thereof (after taking into account any
available tax credits or deductions and any tax sharing
arrangement).
"
Non BA Lender ": a Lender that cannot or does not as a
matter of policy issue Bankers’ Acceptances.
"
Non-Excluded Taxes ": as defined in
Section 2.21(a).
20
"
Non-Reinstatement Deadline ": as defined in
Section 3.1(b).
"
Non-U.S. Lender ": as defined in Section 2.21(f).
"
Note ": any promissory note evidencing any Loan.
"
Obligation Currency ": as defined in Section 10.20.
"
Obligations ": the unpaid principal of and interest on
(including, without limitation, interest accruing after the
maturity of the Loans and Reimbursement Obligations and interest
accruing after the filing of any petition in bankruptcy, or the
commencement of any insolvency, reorganization or like proceeding,
relating to any Borrower, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding) the Loans,
the Reimbursement Obligations and all other obligations and
liabilities of the Borrowers to the Administrative Agent or to any
Lender or any Qualified Counterparty, whether direct or indirect,
absolute or contingent, due or to become due, or now existing or
hereafter incurred, which may arise under, out of, or in connection
with, this Agreement, any other Loan Document, the Letters of
Credit, any Specified Hedge Agreement or any other document made,
delivered or given in connection herewith or therewith, whether on
account of principal, interest, reimbursement obligations, fees,
indemnities, costs, expenses (including, without limitation, all
fees, charges and disbursements of counsel to the Arrangers, to the
Agents or to any Lender that are required to be paid by the
Borrowers pursuant hereto) or otherwise and; provided , that
(x) obligations of any Group Member under any Specified Hedge
Agreement shall be secured and guaranteed pursuant to the Security
Documents only to the extent that, and for so long as, the other
Obligations are so secured and guaranteed and (y) any release of
Collateral or Guarantors effected in the manner permitted by this
Agreement shall not require the consent of holders of obligations
under Specified Hedge Agreements.
"
Other Taxes ": 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, this Agreement or any other Loan Document.
"
Participant ": as defined in Section 10.6(b).
"
PATRIOT Act ": as defined in Section 4.25.
"
Payment Office ": the office specified from time to time by
the Administrative Agent as its payment office by notice to the US
Borrower.
"
PBGC ": the Pension Benefit Guaranty Corporation established
pursuant to Subtitle A of Title IV of ERISA (or any successor).
"
Permits ": the collective reference to
(i) Environmental Permits, and (ii) any and all other
franchises, licenses, leases, permits, approvals, notifications,
certifications, registrations, authorizations, exemptions,
qualifications, easements, and rights of way.
"
Permitted Acquisition ": as defined in
Section 7.8(g).
21
"
Permitted Liens ": the collective reference to (i) in
the case of Collateral other than Pledged Stock, Liens permitted by
Section 7.3 and (ii) in the case of Collateral consisting
of Pledged Stock, non-consensual Liens permitted by
Section 7.3 to the extent arising by operation of law.
"
Person ": an individual, partnership, corporation, limited
liability company, business trust, joint stock company, trust,
unincorporated association, joint venture, Governmental Authority
or other entity of whatever nature.
"
Personal Property Security Legislation" : all applicable
personal property security legislation as all such legislation now
exists or may from time to time hereafter be amended, modified,
recodified, supplemented or replaced, together with all rules and
regulations thereunder or related thereto, including without
limitation, the UCC and the Personal Property Security Act
(Ontario) .
"
Plan ": at a particular time, any employee benefit plan that
is covered by ERISA and in respect of which the US Borrower or a
Commonly Controlled Entity is (or, if such plan were terminated at
such time, would under Section 4069 of ERISA be deemed to be)
an "employer" as defined in Section 3(5) of ERISA, but
excluding, for greater certainty, Canadian Benefit Plans and
Canadian Pension Plans.
"
Pledged Stock ": as defined in the Guarantee and US
Collateral Agreement or the Canadian Collateral Agreement, as
applicable.
"
Pricing Grid ": the pricing grid attached hereto as Annex A.
"
Pro Forma Balance Sheet ": as defined in
Section 4.1(a).
"
Projections ": as defined in Section 6.2(c).
"
Property ": any right or interest in or to property of any
kind whatsoever, whether real, personal or mixed and whether
tangible or intangible, including, without limitation, Capital
Stock.
"
Purchase Price Refund ": any amount received by any Group
Member as a result of a purchase price adjustment or similar event
in connection with any acquisition of Property by any Group Member.
"
Qualified Counterparty ": with respect to any Specified
Hedge Agreement, any counterparty thereto that, at the time such
Specified Hedge Agreement was entered into, was a Lender or an
affiliate of a Lender.
"
Quebec Subsidiary ": 9180-1720 Quebec Inc., a Quebec
corporation
"
Real Estate ": all Real Property held or used by the Group
Members, which the relevant Group Member owns in fee or in which it
holds a leasehold interest as a tenant.
22
"
Recovery Event ": any settlement of or payment in respect of
any property or casualty insurance claim or any condemnation
proceeding relating to any asset of any Group Member.
"
Refinancing ": the repayment in full in cash of all
Indebtedness and other obligations (other than indemnities and
other similar obligations not yet due and payable and letters of
credit which are either assumed hereunder or backed with a Letter
of Credit) outstanding under the Existing Credit Agreement and the
other "Loan Documents" as defined in the Existing Credit Agreement,
and the termination of all commitments provided thereunder and the
discharge and/or release of all guarantees and collateral provided
in connection therewith.
"
Refunded Swing Line Loans ": as defined in
Section 2.7(b).
"
Refunding Date ": as defined in Section 2.7(c).
"
Register ": as defined in Section 10.6(d).
"
Regulation H ": Regulation H of the Board as in
effect from time to time.
"
Regulation U ": Regulation U of the Board as in
effect from time to time.
"
Reimbursement Obligation ": the obligation of the Borrowers
to reimburse each Issuing Lender pursuant to Section 3.5 for
amounts drawn under Letters of Credit issued by such Issuing
Lender.
"
Reinvestment Deferred Amount ": with respect to any
Reinvestment Event, the aggregate Net Cash Proceeds received by any
Group Member in connection therewith that are not applied to prepay
the Term Loans or reduce the Revolving Credit Commitments pursuant
to Section 2.13(b) as a result of the delivery of a
Reinvestment Notice.
"
Reinvestment Event ": any Asset Sale, Purchase Price Refund
or Recovery Event in respect of which the US Borrower has delivered
a Reinvestment Notice.
"
Reinvestment Notice ": a written notice executed by a
Responsible Officer stating that no Default or Event of Default has
occurred and is continuing and that the US Borrower (directly or
indirectly through a Wholly Owned Subsidiary of the US Borrower)
intends and expects to use all or a specified portion of the Net
Cash Proceeds of an Asset Sale, Purchase Price Refund or Recovery
Event to acquire assets useful in its or such Subsidiary’s
business.
"
Reinvestment Prepayment Amount ": with respect to any
Reinvestment Event, the Reinvestment Deferred Amount relating
thereto less any amount expended on or prior to the relevant
Reinvestment Prepayment Date to acquire assets useful in the US
Borrower’s business.
"
Reinvestment Prepayment Date ": with respect to any
Reinvestment Event, the earlier of (a) the date occurring one
year after such Reinvestment Event and (b) the date on which
the US Borrower shall have determined not to, or shall have
otherwise ceased to, acquire
23
assets useful in the US Borrower’s business with all or
any portion of the relevant Reinvestment Deferred Amount.
"
Related Fund ": with respect to any Lender, any fund that
(x) invests in commercial loans and (y) is managed or
advised by the same investment advisor as such Lender, by such
Lender or an Affiliate of such Lender.
"
Release ": means any release, threatened release, spill,
emission, leaking, pumping, pouring, emitting, emptying, escape,
injection, deposit, disposal, discharge, dispersal, dumping,
leaching or migration of Hazardous Material into or through the
environment.
"
Reorganization ": with respect to any Multiemployer Plan,
the condition that such plan is in reorganization within the
meaning of Section 4241 of ERISA.
"
Reportable Event ": any of the events set forth in
Section 4043(c) of ERISA, other than those events as to
which the thirty day notice period is waived under PBGC Reg.
§ 4043.
"
Required Lenders ": at any time, the holders of more than
50% of the sum of (i) the aggregate unpaid principal amount of
the Term Loans then outstanding and (ii) the Total Revolving
Credit Commitments then in effect or, if the Revolving Credit
Commitments have been terminated, the Total Revolving Extensions of
Credit then outstanding.
"
Requirement of Law ": as to any Person, the Certificate of
Incorporation and By-Laws or other organizational or governing
documents of such Person, and any law, treaty, rule or regulation
or determination of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such Person
or any of its Property or to which such Person or any of its
Property is subject.
"
Responsible Officer ": as to any Person, the chief executive
officer, president or chief financial officer of such Person, but
in any event, with respect to financial matters, the chief
financial officer of such Person, and for purposes of
(i) Section 6.7, the chief legal officer of such Person
and (ii) Section 5.1(a), any Vice President or other
duly authorized officer of such Person. Unless otherwise qualified,
all references to a "Responsible Officer" shall refer to a
Responsible Officer of the US Borrower.
"
Restricted Debt Repayment ": as defined in
Section 7.9(b).
"
Restricted Payments ": as defined in Section 7.6.
"
Reuters Screen CDOR Page ": the display designated as page
CDOR on the Reuters Monitor Money Rates Service or other page as
may, from time to time, replace that page on that service for the
purpose of displaying bid quotations for Bankers’ Acceptances
accepted by leading Canadian banks.
"
Revolving CA Extensions of Credit ": as to any Revolving
Credit CA Lender at any time, an amount equal to the sum of
(a) the aggregate principal amount of all Revolving Credit CA
Loans made by such Lender then outstanding, (b) such
Lender’s Revolving Credit CA
24
Percentage of the L/C Obligations then outstanding and
(c) such Lender’s Revolving Credit CA Percentage of the
aggregate principal amount of Swing Line Loans then outstanding.
"
Revolving Credit CA Commitment ": as to any Lender, the
obligation of such Lender, if any, to make Revolving Credit CA
Loans and participate in Swing Line Loans to the Canadian Borrower
and Letters of Credit of the Canadian Borrower , in an aggregate
principal and/or face amount not to exceed the amount set forth
under the heading "Revolving Credit CA Commitment" opposite such
Lender’s name on Schedule 1 to the Lender
Addendum delivered by such Lender, or, as the case may be, in the
Assignment and Assumption pursuant to which such Lender became a
party hereto, as the same may be changed from time to time pursuant
to the terms hereof. The original aggregate amount of the aggregate
Revolving Credit CA Commitments is Cdn. $16,333,333.33.
"
Revolving Credit CA Facility ": as defined in the definition
of "Facility" in this Section 1.1.
"
Revolving Credit CA Facility Percentage ": the percentage
which the aggregate amount of the Commitments with respect to the
Revolving Credit CA Facility then constitutes of the aggregate
amount of the Commitments with respect to the Revolving Credit
Facilities.
"
Revolving Credit CA Lender ": each Lender that has a
Revolving Credit CA Commitment or that is the holder of Revolving
Credit CA Loans.
"
Revolving Credit CA Loans ": as defined in Section 2.4.
"
Revolving Credit CA Percentage ": as to any Revolving Credit
CA Lender at any time, the percentage which such Lender’s
Revolving Credit CA Commitment then constitutes of the Total
Revolving Credit CA Commitments (or, at any time after the
Revolving Credit CA Commitments shall have expired or terminated,
the percentage which the aggregate amount of such Lender’s
Revolving CA Extensions of Credit then outstanding constitutes of
the amount of the aggregate Revolving CA Extensions of Credit then
outstanding).
"
Revolving Credit Commitment ": as to any Lender, its
Revolving Credit CA Commitment and its Revolving Credit US/CA
Commitment.
"
Revolving Credit Commitment Period ": the period from and
including the Closing Date to the Revolving Credit Termination
Date. "
Revolving Credit Facilities ": the Revolving Credit CA
Facility and the Revolving Credit US/CA Facility.
"
Revolving Credit Lender ": each Revolving Credit CA Lender
and each Revolving Credit US/CA Lender.
"
Revolving Credit Loans ": as defined in Section 2.4.
"
Revolving Credit Note ": as defined in
Section 2.9(e).
25
"
Revolving Credit Percentage ": as to any Revolving Credit
Lender at any time, with respect to Loans to the Canadian Borrower,
the percentage which such Lender’s Revolving Credit
Commitment then constitutes of the Total Revolving Credit
Commitments (or, at any time after the Revolving Credit Commitments
shall have expired or terminated, the percentage which the
aggregate amount of such Lender’s Revolving Extensions of
Credit then outstanding constitutes of the amount of the aggregate
Revolving Extensions of Credit then outstanding) and with respect
to Loans to the US Borrower, such Revolving Credit Lender’s
Revolving Credit US/CA Percentage.
"
Revolving Credit Termination Date ": October 8, 2013.
"
Revolving Credit US/CA Commitment ": as to any Lender, the
obligation of such Lender, if any, to make Revolving Credit US/CA
Loans and participate in Swing Line Loans and Letters of Credit, in
an aggregate principal and/or face amount not to exceed the amount
set forth under the heading "Revolving Credit US/CA Commitment"
opposite such Lender’s name on Schedule 1 to the
Lender Addendum delivered by such Lender, or, as the case may be,
in the Assignment and Assumption pursuant to which such Lender
became a party hereto, as the same may be changed from time to time
pursuant to the terms hereof. The original aggregate amount of the
aggregate Revolving Credit US/CA Commitments is $124,833,333.33.
"
Revolving Credit US/CA Facility ": as defined in the
definition of "Facility" in this Section 1.1.
"
Revolving Credit US/CA Facility Percentage ": the percentage
which the aggregate amount of the Commitments with respect to the
Revolving Credit US/CA Facility then constitutes of the aggregate
amount of the Commitments with respect to the Revolving Credit
Facilities.
"
Revolving Credit US/CA Lender ": each Lender that has a
Revolving Credit US/CA Commitment or that is the holder of
Revolving Credit Loans.
"
Revolving Credit US/CA Loans ": as defined in
Section 2.4.
"
Revolving Credit US/CA Percentage ": as to any Revolving
Credit US/CA Lender at any time, the percentage which such
Lender’s Revolving Credit US/CA Commitment then constitutes
of the Total Revolving Credit US/CA Commitments (or, at any time
after the Revolving Credit US/CA Commitments shall have expired or
terminated, the percentage which the aggregate amount of such
Lender’s Revolving US/CA Extensions of Credit then
outstanding constitutes of the amount of the aggregate Revolving
US/CA Extensions of Credit then outstanding).
"
Revolving Extensions of Credit ": as to any Revolving Credit
Lender at any time, an amount equal to the sum of (a) the
aggregate principal amount of all Revolving Credit Loans made by
such Lender then outstanding, (b) such Lender’s
Revolving Credit Percentage of the L/C Obligations then outstanding
and (c) such Lender’s Revolving Credit Percentage of the
aggregate principal amount of Swing Line Loans then
outstanding.
26
"
Revolving US/CA Extensions of Credit ": as to any Revolving
Credit US/CA Lender at any time, an amount equal to the sum of
(a) the aggregate principal amount of all Revolving Credit
US/CA Loans made by such Lender then outstanding, (b) such
Lender’s Revolving Credit US/CA Percentage of the L/C
Obligations then outstanding and (c) such Lender’s
Revolving Credit US/CA Percentage of the aggregate principal amount
of Swing Line Loans then outstanding.
"
S&P ": Standard & Poor’s Ratings Services.
"
Schedule I Lender ": any Lender named on
Schedule I to the Bank Act (Canada).
"
Schedule II Lender ": any Lender named on
Schedule II or Schedule III to the Bank Act (Canada).
"
SEC ": the Securities and Exchange Commission of the United
States of America (or successors thereto or an analogous
Governmental Authority).
"
Secured Parties ": as defined in the Guarantee and US
Collateral Agreement.
"
Security Documents ": the collective reference to the
Guarantee and US Collateral Agreement, the Canadian Collateral
Agreement, the Mortgages, any intellectual property security
agreements or control agreements that may be required to be
delivered pursuant to the Guarantee and US Collateral Agreement or
any other Loan Document and all other security documents hereafter
delivered to the Administrative Agent granting a Lien on any
Property of any Person to secure the obligations and liabilities of
any Loan Party under any Loan Document.
"
Senior Subordinated Note Indenture ": the Indenture entered
into by the US Borrower and certain of its Subsidiaries in
connection with the issuance of the Senior Subordinated Notes,
together with all instruments and other agreements entered into by
the US Borrower or such Subsidiaries in connection therewith, as
the same may be amended, supplemented or otherwise modified from
time to time after the Closing Date in accordance with
Section 7.9.
"
Senior Subordinated Notes ": the subordinated notes of the
US Borrower issued from time to time pursuant to the Senior
Subordinated Note Indenture and any indenture governing any
refinancing thereof permitted by Section 7.2(h).
"
Single Employer Plan ": any Plan that is covered by Title IV
of ERISA, but which is not a Multiemployer Plan.
"
Solvent ": with respect to any Person, as of any date of
determination, (a) the amount of the "present fair saleable
value" of the assets of such Person will, as of such date, exceed
the amount of all "liabilities of such Person, contingent or
otherwise", as of such date, as such quoted terms are determined in
accordance with applicable federal and state laws governing
determinations of the insolvency of debtors, (b) the present
fair saleable value of the assets of such Person will, as of such
date, be greater than the amount that will be required to pay the
liability of such Person on its debts as such debts become absolute
and matured, (c) such Person
27
will not have, as of such date, an unreasonably small amount of
capital with which to conduct its business, (d) such Person
will be able to pay its debts as they mature and (e) such
Person is not insolvent within the meaning of any applicable
Requirements of Law relating to bankruptcy, insolvency or
creditor’s rights. For purposes of this definition,
(i) "debt" shall mean liability on a "claim", and
(ii) "claim" shall mean any (x) right to payment, whether
or not such a right is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured, unmatured, disputed,
undisputed, legal, equitable, secured or unsecured or
(y) right to an equitable remedy for breach of performance if
such breach gives rise to a right to payment, whether or not such
right to an equitable remedy is reduced to judgment, fixed,
contingent, matured or unmatured, disputed, undisputed, secured or
unsecured.
"
Specified Change of Control ": a "change of control" or
similar event (howsoever defined) as defined in the Senior
Subordinated Note Indenture.
"
Specified Hedge Agreement ": any Hedge Agreement entered
into by either Borrower or any Guarantor and any Qualified
Counterparty.
"
Subordinated Debt ": the Senior Subordinated Notes and any
other Indebtedness of any Group Member which by its terms is
expressly subordinated to the Obligations.
"
Subsidiary ": as to any Person, a corporation, partnership,
limited liability company or other entity of which shares of stock
or other ownership interests having ordinary voting power (other
than stock or such other ownership interests having such power only
by reason of the happening of a contingency) to elect a majority of
the board of directors or other managers of such corporation,
partnership or other entity are at the time owned, or the
management of which is otherwise controlled, directly or indirectly
through one or more intermediaries, or both, by such Person. Unless
otherwise qualified, all references to a "Subsidiary" or to
"Subsidiaries" in this Agreement shall refer to a Subsidiary or
Subsidiaries of either Borrower.
"
Subsidiary Guarantor ": each Subsidiary of either Borrower
other than (a) any Excluded Foreign Subsidiary and
(b) the Quebec Subsidiary.
"
Swing Line Commitment ": an aggregate principal amount at
any one time outstanding not to exceed $8,000,000.
"
Swing Line Lender ": Barclays Bank PLC and, with respect to
Swing Line Loans to the Canadian Borrower, The Bank of Nova Scotia,
and any successor or assignee of any of the foregoing consented to
by the Borrowers and who has agreed to act as Swing Line Lender
hereunder.
"
Swing Line Loans ": as defined in Section 2.6.
"
Swing Line Note ": as defined in Section 2.9(e).
"
Swing Line Participation Amount ": as defined in
Section 2.7(c).
"
Syndication Agent ": as defined in the preamble hereto.
28
"
Synthetic Lease Obligations ": all monetary obligations of a
Person under (a) a so-called synthetic, off-balance sheet or
tax retention lease, or (b) an agreement for the use or
possession of property creating obligations which do not appear on
the balance sheet of such Person but which, upon the insolvency or
bankruptcy of such Person, would be characterized as the
Indebtedness of such Person (without regard to accounting
treatment); it being understood that obligations in respect of
operating leases entered into by any Group Member in the ordinary
course of business which would not, upon the insolvency of a Group
Member be characterized as indebtedness of a Group Member, shall
not constitute "Synthetic Lease Obligations".
"
Term Loan Maturity Date ": October 8, 2013.
"
Term Loan Commitment ": as to any Canadian Term Loan Lender,
its Canadian Term Loan Commitment, and as to any US Term Loan
Lender, its US Term Loan Commitment.
"
Term Loan Facilities ": collectively, the Canadian Term Loan
Facility and the US Term Loan Facility.
"
Term Loan Lenders ": the collective reference to the
Canadian Term Loan Lenders, the US Term Loan Lenders and the
Lenders with respect to any Incremental Term Loans.
"
Term Loans ": collectively, the Canadian Term Loans, the US
Term Loans and any Incremental Term Loans.
"
Term Note ": as defined in Section 2.9(e).
"
Title Insurance Company ": as defined in
Section 5.1(m).
"
Total Revolving Credit CA Commitments ": at any time, the
aggregate amount of the Revolving Credit CA Commitments then in
effect.
"
Total Revolving Credit Commitments ": at any time, the
aggregate amount of the Revolving Credit Commitments then in
effect.
"
Total Revolving Credit US/CA Commitments ": at any time, the
aggregate amount of the Revolving Credit US/CA Commitments then in
effect.
"
Total Revolving Extensions of Credit ": at any time, the
aggregate amount of the Revolving Extensions of Credit of the
Revolving Credit Lenders outstanding at such time.
"
Transferee ": as defined in Section 10.14.
"
Type ": as to any Loan, its nature as a Base Rate Loan, a
Eurodollar Loan, a Canadian Prime Rate Loan or BA Equivalent Loan.
"
UCC ": the Uniform Commercial Code, as in effect from time
to time in any jurisdiction.
29
"
US Base Rate in Canada ": at any time, the greater of
(i) the rate of interest per annum equal to the rate at which
the principal office of the Canadian Agent in Toronto, Ontario,
announces from time to time as the reference rate of interest for
loans in Dollars to its Canadian borrowers, adjusted automatically
with each change in such rate without the necessity of any notice
to the Borrowers or any other Person, and (ii) the Federal
Funds Effective Rate (converted to a rate based on based on a 365
or 366 day period, as the case may be), in effect from time to
time, plus .50% per annum. Any change in the US Base Rate in Canada
shall be effective as of the opening of business on the day the
change becomes effective generally.
" US
Borrower ": as defined in the preamble hereto.
" US
Term Loan ": as defined in Section 2.1(a).
" US
Term Loan Commitment ": as to any Lender, the obligation of
such Lender, if any, to make a US Term Loan to the US Borrower
hereunder in a principal amount not to exceed the amount set forth
under the heading "US Term Loan Commitment" opposite such
Lender’s name on Schedule 1 to the Lender Addendum
delivered by such Lender, or, as the case may be, in the Assignment
and Assumption pursuant to which such Lender became a party hereto,
as the same may be changed from time to time pursuant to the terms
hereof. The original aggregate amount of the US Term Loan
Commitments is $39,891,423.74.
" US
Term Loan Facility ": as defined in the definition of Facility
in this document.
" US
Term Loan Lenders ": each Lender that has a US Term Loan
Commitment or is the holder of a US Term Loan.
" US
Term Loan Percentages ": as to any US Term Loan Lender at any
time, the percentage which such Lender’s US Term Loan
Commitment then constitutes of the aggregate US Term Loan
Commitments (or, at any time after the funding of the US Term
Loans, the percentage which the aggregate principal amount of such
Lender’s US Term Loans then outstanding constitutes of the
aggregate principal amount of the US Term Loans then outstanding).
"
Weighted Average Life to Maturity ": when applied to any
Indebtedness at any date, the number of years obtained by dividing:
(i) the sum of the products obtained by multiplying (a) the
amount of each then remaining installment, sinking fund, serial
maturity or other required payments of principal, including payment
at final maturity, in respect thereof, by (b) the number of
years (calculated to the nearest one-twelfth) that will elapse
between such date and the making of such payment; by (ii) the
then outstanding principal amount of such Indebtedness.
"
Wholly Owned Subsidiary ": as to any Person, any other
Person all of the Capital Stock of which (other than
directors’ qualifying shares required by law) is owned by
such Person directly and/or through other Wholly Owned
Subsidiaries.
"
Wholly Owned Subsidiary Guarantor ": any Subsidiary
Guarantor that is a Wholly Owned Subsidiary of either Borrower.
30
1.2
Other Definitional Provisions . (a) Unless otherwise
specified therein, all terms defined in this Agreement shall have
the defined meanings when used in the other Loan Documents or any
certificate or other document made or delivered pursuant hereto or
thereto.
(b) As
used herein and in the other Loan Documents, and any certificate or
other document made or delivered pursuant hereto or thereto,
accounting terms relating to any Group Member not defined in
Section 1.1 and accounting terms partly defined in
Section 1.1, to the extent not defined, shall have the
respective meanings given to them under GAAP.
(c) The
words "hereof", "herein" and "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as
a whole and not to any particular provision of this Agreement, and
Section, Schedule and Exhibit references are to this Agreement
unless otherwise specified.
(d) The
meanings given to terms defined herein shall be equally applicable
to both the singular and plural forms of such terms.
(e) All
calculations of financial ratios set forth in Section 7.1 and
the calculation of the Consolidated Leverage Ratio for purposes of
determining the Applicable Margin shall be calculated to the same
number of decimal places as the relevant ratios are expressed in
and shall be rounded upward if the number in the decimal place
immediately following the last calculated decimal place is five or
greater. For example, if the relevant ratio is to be calculated to
the hundredth decimal place and the calculation of the ratio is
5.126, the ratio will be rounded up to 5.13.
(f) The
expressions "payment in full," "paid in full" and any other similar
terms or phrases when used herein with respect to the Obligations
shall mean the payment in full, in immediately available funds, of
all of the Obligations. SECTION 2. AMOUNT AND TERMS OF COMMITMENTS
2.1
Term Loan Commitments . (a) Subject to the terms and
conditions hereof, (a) the US Term Loan Lenders severally
agree to make term loans (each, a " US Term Loan ") to the
US Borrower on the Closing Date in an aggregate principal amount
for each US Term Loan Lender not to exceed the amount of the US
Term Loan Commitment of such Lender, and (b) the Canadian Term
Loan Lenders severally agree to make term loans (each, a "
Canadian Term Loan ") to the Canadian Borrower on the
Closing Date in an aggregate principal amount for each Canadian
Term Loan Lender not to exceed the amount of the Canadian Term Loan
Commitment of such Lender.
(b)
The Term Loans may from time to time be, in the case of US Term
Loans, Eurodollar Loans or Base Rate Loans and, in the case of
Canadian Term Loans, Bankers’ Acceptances or Canadian Prime
Rate Loans, as determined in accordance with Sections 2.2 or
2.13 hereof.
2.2
Procedure for Borrowing of Term Loans . (a) The
Borrowers shall deliver to the Administrative Agent or, in the case
of Canadian Term Loans, the Canadian Agent, a Borrowing Notice
(which Borrowing Notice must be received by the Administrative
Agent or
31
the Canadian Agent, as applicable) prior to 11:00 A.M., New
York City time, (a) three Business Days prior to the Closing
Date, in the case of Eurodollar Loans, (b) two Business Days
prior to the Closing Date, in the case of Bankers’
Acceptances, or (c) one Business Day prior to the Closing
Date, in the case of Base Rate Loans and Canadian Prime Rate Loans)
requesting that the Term Loan Lenders make the Term Loans on the
Closing Date and specifying the amount to be borrowed. Upon receipt
of such Borrowing Notice, the Administrative Agent or the Canadian
Agent, as applicable, shall promptly notify each applicable Term
Loan Lender thereof. Not later than 11:00 A.M., New York City
time, on the Closing Date, each Term Loan Lender shall make
available to the Administrative Agent or the Canadian Agent, as
applicable, at the Funding Office or the Canadian Funding Office,
as applicable, an amount in immediately available funds equal to
the Term Loans to be made by such Lender on the Closing Date. The
Administrative Agent or the Canadian Agent, as applicable, shall
make available to the applicable Borrower the aggregate of the
amounts made available to the Administrative Agent or the Canadian
Agent, as applicable, by the applicable Term Loan Lenders, in like
funds as received by the Administrative Agent or the Canadian
Agent, as applicable.
2.3
Repayment of Term Loans . (a) The US Term Loan of each
US Term Loan Lender shall mature in 20 consecutive quarterly
installments commencing on December 31, 2008, each of which
shall be in an amount equal to such Lender’s US Term Loan
Percentage multiplied by the percentage of the original principal
amount of the US Term Loan outstanding as of the Closing Date, as
set forth below opposite such installment.
|
|
|
|
|
|
|
|
|
Percentage of
|
|
|
|
Original Principal
|
|
Installment
|
|
Amount
|
|
December 31, 2008
|
|
|
1.25
|
%
|
|
March 31, 2009
|
|
|
1.25
|
%
|
|
June 30, 2009
|
|
|
1.25
|
%
|
|
September 30, 2009
|
|
|
1.25
|
%
|
|
December 31, 2009
|
|
|
2.50
|
%
|
|
March 31, 2010
|
|
|
2.50
|
%
|
|
June 30, 2010
|
|
|
2.50
|
%
|
|
September 30, 2010
|
|
|
2.50
|
%
|
|
December 31, 2010
|
|
|
3.75
|
%
|
|
March 31, 2011
|
|
|
3.75
|
%
|
|
June 30, 2011
|
|
|
3.75
|
%
|
|
September 30, 2011
|
|
|
3.75
|
%
|
|
December 31, 2011
|
|
|
5.00
|
%
|
|
March 31, 2012
|
|
|
5.00
|
%
|
|
June 30, 2012
|
|
|
5.00
|
%
|
|
September 30, 2012
|
|
|
5.00
|
%
|
|
December 31, 2012
|
|
|
12.50
|
%
|
|
March 31, 2013
|
|
|
12.50
|
%
|
|
June 30, 2013
|
|
|
12.50
|
%
|
|
Term Loan Maturity Date
|
|
|
12.50
|
%
|
32
(b) The
Canadian Term Loan of each Canadian Term Loan Lender shall mature
in 20 consecutive quarterly installments commencing on
December 31, 2008, each of which shall be in an amount equal
to such Lender’s Canadian Term Loan Percentage multiplied by
the percentage of the original aggregate amount of the Canadian
Term Loan outstanding as of the Closing Date, as set forth below
opposite such installment.
|
|
|
|
|
|
|
|
|
Percentage of
|
|
|
|
Original Principal
|
|
Installment
|
|
Amount
|
|
December 31, 2008
|
|
|
1.25
|
%
|
|
March 31, 2009
|
|
|
1.25
|
%
|
|
June 30, 2009
|
|
|
1.25
|
%
|
|
September 30, 2009
|
|
|
1.25
|
%
|
|
December 31, 2009
|
|
|
2.50
|
%
|
|
March 31, 2010
|
|
|
2.50
|
%
|
|
June 30, 2010
|
|
|
2.50
|
%
|
|
September 30, 2010
|
|
|
2.50
|
%
|
|
December 31, 2010
|
|
|
3.75
|
%
|
|
March 31, 2011
|
|
|
3.75
|
%
|
|
June 30, 2011
|
|
|
3.75
|
%
|
|
September 30, 2011
|
|
|
3.75
|
%
|
|
December 31, 2011
|
|
|
5.00
|
%
|
|
March 31, 2012
|
|
|
5.00
|
%
|
|
June 30, 2012
|
|
|
5.00
|
%
|
|
September 30, 2012
|
|
|
5.00
|
%
|
|
December 31, 2012
|
|
|
12.50
|
%
|
|
March 31, 2013
|
|
|
12.50
|
%
|
|
June 30, 2013
|
|
|
12.50
|
%
|
|
Term Loan Maturity Date
|
|
|
12.50
|
%
|
2.4
Revolving Credit Commitments . (a) Subject to the terms
and conditions hereof, the Revolving Credit CA Lenders severally
agree to make revolving credit loans denominated in Canadian
Dollars or Dollars (" Revolving Credit CA Loans ") to the
Canadian Borrower from time to time during the Revolving Credit
Commitment Period in the Dollar Equivalent of an aggregate
principal amount at any one time outstanding for each Revolving
Credit CA Lender which, when added to such Lender’s Revolving
Credit CA Percentage of the sum of the Revolving Credit CA Facility
Percentage of (i) the L/C Obligations of the Canadian Borrower
then outstanding and (ii) the Dollar Equivalent of the
aggregate principal amount of the Swing Line Loans of the Canadian
Borrower then outstanding, does not exceed the amount of such
Lender’s Revolving Credit CA Commitment. Subject to the terms
and conditions hereof, the Revolving Credit US/CA Lenders severally
agree to make revolving credit loans denominated in Dollars or
Canadian Dollars (with respect to the Canadian Borrower) or Dollars
(with respect to the US Borrower) (" Revolving Credit US/CA
Loans " and together with Revolving Credit CA Loans, "
Revolving Credit Loans ") to the Borrowers from time to time
during the Revolving Credit Commitment Period in the Dollar
Equivalent of an aggregate principal amount at any one time
outstanding for each Revolving Credit US/CA Lender which,
33
when added to such Lender’s Revolving Credit US/CA
Percentage of the sum of (i) the L/C US/CA Obligations of the
US Borrower then outstanding, (ii) the Dollar Equivalent of
the aggregate principal amount of the Swing Line Loans of the US
Borrower then outstanding, (iii) the Revolving Credit US/CA
Facility Percentage of the L/C Obligations of the Canadian Borrower
and (iv) the Dollar Equivalent of the Revolving Credit US/CA
Facility Percentage of the aggregate principal amount of the Swing
Line Loans of the Canadian Borrower then outstanding, does not
exceed the amount of such Lender’s Revolving Credit US/CA
Commitment. During the Revolving Credit Commitment Period, the
Borrowers may use the Revolving Credit Commitments by borrowing,
prepaying (in whole or in part), and reborrowing, the Revolving
Credit Loans, all in accordance with the terms and conditions
hereof. The Revolving Credit Loans may from time to time be
Eurodollar Loans, Base Rate Loans, Bankers’ Acceptances or
Canadian Prime Rate Loans, as applicable, as determined by the
applicable Borrower and notified to the Administrative Agent or the
Canadian Agent, as applicable, in accordance with Sections 2.5
and 2.14, provided that no Revolving Credit Loan shall be
made as a Eurodollar Loan or a Bankers’ Acceptance after the
day that is one month prior to the Revolving Credit Termination
Date.
(b) The
Borrowers shall repay all outstanding Revolving Credit Loans on the
Revolving Credit Termination Date.
2.5
Procedure for Revolving Credit Borrowing . (a) The
Borrowers may borrow under the Revolving Credit Commitments on any
Business Day during the Revolving Credit Commitment Period,
provided that the applicable Borrower shall deliver to the
Administrative Agent and, with respect to any Canadian Loans, the
Canadian Agent, as applicable, a Borrowing Notice (which Borrowing
Notice must be received by the Administrative Agent and, if
applicable, the Canadian Agent, prior to 11:00 A.M., New York
City time, (a) three Business Days prior to the requested
Borrowing Date, in the case of Eurodollar Loans, (b) two
Business Days prior to the Closing Date, in the case of
Bankers’ Acceptances or (c) one Business Day prior to
the requested Borrowing Date, in the case of Base Rate Loans and
Canadian Prime Rate Loans). Every borrowing by the Canadian
Borrower must be made pro rata between the Revolving Credit CA
Commitments and the Revolving Credit US/CA Commitments, based upon
the Revolving Credit CA Facility Percentage and the Revolving
Credit US/CA Facility Percentage, as applicable. Any borrowing by
the Borrowers of Revolving Credit Loans made on the Closing Date
shall initially be Base Rate Loans or Canadian Prime Rate Loans, as
applicable. Each borrowing by the Borrowers of Revolving Credit
Loans under the Revolving Credit Commitments shall be in an amount
equal to (x) in the case of Base Rate Loans and Canadian Prime
Rate Loans, $1,000,000 (or Cdn. $1,000,000, as applicable) or a
whole multiple thereof (or, if the then aggregate Available
Revolving Credit Commitments are less than $1,000,000 (or Cdn.
$1,000,000), such lesser amount), and (y) in the case of
Eurodollar Loans and Bankers’ Acceptances, $5,000,000 (or
Cdn. $5,000,000, as applicable) or a whole multiple of $1,000,000
(or Cdn. $1,000,000), in excess thereof; provided , that a
Swing Line Lender may request, on behalf of the applicable
Borrower, borrowings of Base Rate Loans and Canadian Prime Rate
Loans under the Revolving Credit Commitments in other amounts
pursuant to Section 2.7. Upon receipt of any such Borrowing
Notice from the Canadian Borrower, the Canadian Agent shall
promptly notify each Revolving Credit CA Lender thereof. Upon
receipt of any such Borrowing Notice from the US Borrower, the
Administrative Agent shall promptly notify each Revolving Credit
US/CA Lender thereof. Each Revolving Credit CA
34
Lender will make its Revolving Credit CA Percentage of the
amount of each borrowing of Revolving Credit CA Loans available to
the Canadian Agent for the account of the Canadian Borrower at the
Canadian Funding Office prior to 11:00 A.M., New York City
time, on the Borrowing Date requested by the Canadian Borrower in
funds immediately available to the Canadian Agent. Each Revolving
Credit US/CA Lender will make its Revolving Credit US/CA Percentage
of the amount of each borrowing of Revolving Credit CA/US Loans
available to the Administrative Agent or the Canadian Agent, as
applicable, for the account of the applicable Borrower at the
Funding Office or the Canadian Funding Office, as applicable, prior
to 11:00 A.M., New York City time, on the Borrowing Date
requested by such Borrower in funds immediately available to the
Administrative Agent or the Canadian Agent, as applicable. Such
borrowings will then be made available to such Borrower by the
Administrative Agent or the Canadian Agent, as applicable, in like
funds as received by the Administrative Agent or the Canadian
Agent, as applicable.
(b) The
Canadian Borrower hereby designates the US Borrower as its
representative and agent on its behalf for the purposes of issuing
Borrowing Notices and notices of conversion or continuation, giving
instructions with respect to the disbursement of the proceeds of
the Loans, selecting interest rate options, giving and receiving
all other notices and consents hereunder or under any of the other
Loan Documents and taking all other actions (including in respect
of compliance with covenants) on behalf of the Canadian Borrower
under the Loan Documents. The Administrative Agent, the Canadian
Agent and each Lender may regard any notice or other communication
pursuant to any Loan Document from the US Borrower as a notice or
communication from the Canadian Borrower and the US Borrower. Each
warranty, covenant, agreement and undertaking made on its behalf by
the US Borrower shall be deemed for all purposes to have been made
by the Canadian Borrower and shall be binding upon and enforceable
against the Canadian Borrower to the same extent as it if the same
had been made directly by the Canadian Borrower.
(c) It
is agreed and understood that each Borrower shall be a Guarantor of
the other Borrower’s Obligations pursuant to the Guarantee
and Collateral Agreement, but not co-Borrowers in respect of any
Loans or other obligations under this Agreement.
2.6
Swing Line Commitments . (a) Subject to the terms and
conditions hereof, each Swing Line Lender agrees that, during the
Revolving Credit Commitment Period, it will make available to the
Borrowers in the form of swing line loans denominated in Dollars or
Canadian Dollars (with respect to the Canadian Borrower) or Dollars
(with respect to the US Borrower) (" Swing Line Loans ") a
portion of the credit otherwise available to the Borrowers under
the Revolving Credit Commitments; provided , that
(i) the Dollar Equivalent of the aggregate principal amount of
Swing Line Loans outstanding at any time shall not exceed the Swing
Line Commitment then in effect (notwithstanding that the Swing Line
Loans outstanding at any time, when aggregated with the Swing Line
Lenders’ other outstanding Revolving Credit Loans hereunder,
may exceed the Swing Line Commitment then in effect or such Swing
Line Lender’s Revolving Credit Commitment then in effect) and
(ii) the Borrowers shall not request, and no Swing Line Lender
shall make, any Swing Line Loan if, after giving effect to the
making of such Swing Line Loan, the aggregate amount of the
Available Revolving Credit Commitments with respect to the Borrower
requesting such Swing Line Loan would be less than zero. During the
Revolving Credit Commitment Period, the Borrowers may use the Swing
Line Commitment
35
by borrowing, repaying and reborrowing, all in accordance with
the terms and conditions hereof. Swing Line Loans denominated in
Dollars shall be Base Rate Loans only, and Swing Line Loans
denominated in Canadian Dollars shall be Canadian Prime Rate Loans
only. Notwithstanding the foregoing, if a Swing Line Lender has not
consented to a Revolving Credit Lender becoming a party hereto by
Lender Addendum on the Closing Date, such Swing Line Lender shall
not be required to make a Swing Line Loan hereunder unless such
Swing Line Lender has entered into arrangements satisfactory to it
and the applicable Borrower with respect to such Revolving Credit
Lender’s participation in such Swing Line Loan, including by
cash collateralizing an amount equal to such Revolving Credit
Lender’s share of the Swing Line Loans outstanding.
(b) The
Borrowers shall repay all outstanding Swing Line Loans on the
Revolving Credit Termination Date.
2.7
Procedure for Swing Line Borrowing; Refunding of Swing Line
Loans .
(a) The
Borrowers may borrow under the Swing Line Commitment on any
Business Day during the Revolving Credit Commitment Period,
provided , the applicable Borrower shall give the relevant
Swing Line Lender and the Administrative Agent irrevocable
telephonic notice confirmed promptly in writing (which telephonic
notice must be received by such Swing Line Lender and the
Administrative Agent not later than 11:00 A.M., New York City
time, on the proposed Borrowing Date), specifying (i) the
amount to be borrowed and (ii) the requested Borrowing Date.
Each borrowing under the Swing Line Commitment shall be in an
amount equal to (A) in the case of Swing Line Loans
denominated in Dollars, $500,000 or a whole multiple of $100,000 in
excess thereof, and (B) in the case of Swing Line Loans
denominated in Canadian Dollars, Cdn. $500,000 or a whole multiple
of Cdn. $100,000 in excess thereof. Not later than 3:00 P.M., New
York City time, on the Borrowing Date specified in the borrowing
notice in respect of any Swing Line Loan, the relevant Swing Line
Lender shall make available to the Administrative Agent or the
Canadian Agent, as applicable, at the Funding Office or the
Canadian Funding Office, as applicable, an amount in immediately
available funds equal to the amount of such Swing Line Loan. The
Administrative Agent or the Canadian Agent, as applicable, shall
make the proceeds of such Swing Line Loan available to the
applicable Borrower on such Borrowing Date in like funds as
received by the Administrative Agent or the Canadian Agent, as
applicable.
(b) Each
Swing Line Lender, at any time and from time to time in its sole
and absolute discretion may, on behalf of the applicable Borrower
(which hereby irrevocably directs such Swing Line Lender to act on
its behalf), on one Business Day’s notice given by such Swing
Line Lender to the Administrative Agent and, if applicable, the
Canadian Agent, no later than 11:00 A.M., New York City time),
request each Revolving Credit Lender to make, and each Revolving
Credit Lender hereby agrees to make, a Revolving Credit Loan (which
shall initially be a Base Rate Loan or a Canadian Prime Rate Loan,
as applicable), in an amount equal to such Revolving Credit
Lender’s Revolving Credit CA Percentage or Revolving Credit
US/CA Percentage, as applicable, of the aggregate amount of the
Swing Line Loans (the " Refunded Swing Line Loans ")
outstanding on the date of such notice, to repay such Swing Line
Lender and any such request with respect to Swing Line Loans owing
by the Canadian Borrower shall be made pro rata between the
Revolving Credit CA Commitments and the Revolving Credit US/CA
Commitments based upon the Revolving Credit Facility Percentages
and no Revolving Credit
36
CA Lender shall be required to make a Revolving Credit Loan to
the US Borrower. Each Revolving Credit CA Lender shall make the
amount of such Revolving Credit CA Loan available to the Canadian
Agent at the Canadian Funding Office, in immediately available
funds, not later than 11:00 A.M., New York City time, one
Business Day after the date of such notice. Each Revolving Credit
US/CA Lender shall make the amount of such Revolving Credit Loan
available to the Administrative Agent or the Canadian Agent, as
applicable, at the Funding Office or the Canadian Funding Office,
as applicable, in immediately available funds, not later than
11:00 A.M., New York City time, one Business Day after the
date of such notice. The proceeds of such Revolving Credit Loans
shall be made immediately available by the Administrative Agent or
the Canadian Agent, as applicable, to the relevant Swing Line
Lender for application by such Swing Line Lender to the repayment
of the Refunded Swing Line Loans. Each Borrower irrevocably
authorizes such Swing Line Lender to charge such Borrower’s
accounts with the Administrative Agent or the Canadian Agent, as
applicable, (up to the amount available in each such account) in
order to immediately pay the amount of such Refunded Swing Line
Loans to the extent amounts received from the Revolving Credit
Lenders are not sufficient to repay in full such Refunded Swing
Line Loans.
(c) If
prior to the time a Revolving Credit Loan would have otherwise been
made pursuant to Section 2.7(b), one of the events described
in Section 8(f) shall have occurred and be continuing
with respect to any Borrower, or if for any other reason, as
determined by the relevant Swing Line Lender in its sole
discretion, Revolving Credit Loans may not be made as contemplated
by Section 2.7(b), each Revolving Credit Lender shall, on the
date such Revolving Credit Loan was to have been made pursuant to
the notice referred to in Section 2.7(b) (the "
Refunding Date "), purchase for cash an undivided
participating interest in the then outstanding Swing Line Loans by
paying to such Swing Line Lender an amount (the " Swing Line
Participation Amount ") equal to, with respect to Swing Line
Loans owed by the Canadian Borrower (i) such Revolving Credit
Lender’s Revolving Credit CA Percentage or Revolving Credit
US/CA Percentage, as applicable times the applicable
Revolving Credit Facility Percentage of (ii) the aggregate
principal amount of Swing Line Loans then outstanding which were to
have been repaid with such Revolving Credit Loans.
(d) Whenever,
at any time after the relevant Swing Line Lender has received from
any Revolving Credit Lender such Lender’s Swing Line
Participation Amount, such Swing Line Lender receives any payment
on account of the Swing Line Loans with respect to which such
Revolving Credit Lender purchased a participating interest, such
Swing Line Lender will distribute to such Lender its Swing Line
Participation Amount (appropriately adjusted, in the case of
interest payments, to reflect the period of time during which such
Lender’s participating interest was outstanding and funded
and, in the case of principal and interest payments, to reflect
such Lender’s pro rata portion of such payment
if such payment is not sufficient to pay the principal of and
interest on all such Swing Line Loans then due); provided ,
however , that in the event that such payment received by
such Swing Line Lender is required to be returned, such Revolving
Credit Lender will return to such Swing Line Lender any portion
thereof previously distributed to it by such Swing Line Lender.
(e) Each
Revolving Credit Lender’s obligation to make the Loans
referred to in Section 2.7(b) and to purchase
participating interests pursuant to Section 2.7(c) shall
be absolute and unconditional and shall not be affected by any
circumstance, including, without limitation,
37
(i) any setoff, counterclaim, recoupment, defense or other
right which such Revolving Credit Lender or any Borrower may have
against any Swing Line Lender, the other Borrower or any other
Person for any reason whatsoever; (ii) the occurrence or
continuance of a Default or an Event of Default or the failure to
satisfy any of the other conditions specified in Section 5;
(iii) any adverse change in the condition (financial or
otherwise) of any Borrower; (iv) any breach of this Agreement
or any other Loan Document by any Borrower, any other Loan Party or
any other Revolving Credit Lender; or (v) any other
circumstance, happening or event whatsoever, whether or not similar
to any of the foregoing.
2.8
Bankers’ Acceptances.
(a)
Discount Rate . On each Borrowing Date on which
Bankers’ Acceptances are to be accepted, the Administrative
Agent or the Canadian Agent, as applicable, shall advise the
applicable Borrower as to the Administrative Agent’s or the
Canadian Agent’s, as applicable, determination of the
applicable Discount Rate for the Bankers’ Acceptances which
any of the Canadian Term Loan Lenders or any of the Revolving
Credit Lenders making Revolving Credit Loans denominated in
Canadian Dollars have agreed to purchase.
(b)
Purchase . Each Canadian Term Loan Lender and each Revolving
Credit Lender making Loans denominated in Canadian Dollars shall
purchase a Bankers’ Acceptance accepted by it, and the
applicable Borrower shall sell such Bankers’ Acceptance at
the applicable Discount Rate. Such Canadian Term Loan Lender or
Revolving Credit Lender making Revolving Credit Loans denominated
in Canadian Dollars shall provide to the Administrative Agent or
the Canadian Agent, as applicable, on the Borrowing Date the
Discount Proceeds less the Acceptance Fee payable by the applicable
Borrower with respect to the Bankers’ Acceptance.
(c)
Sale . Each Canadian Term Loan Lender and each Revolving
Credit Lender making Revolving Credit Loans denominated in Canadian
Dollars may from time to time hold, sell, rediscount or otherwise
dispose of any or all Bankers’ Acceptances accepted and
purchased by it.
(d)
Power of Attorney for the Execution of Bankers’
Acceptances . To facilitate the issuance of Bankers’
Acceptances, the Canadian Borrower hereby appoints each Canadian
Term Loan Lender and each Revolving Credit Lender making Revolving
Credit Loans denominated in Canadian Dollars as its attorney to
sign and endorse on its behalf, in handwriting or by facsimile or
mechanical signature as and when deemed necessary by such Canadian
Term Loan Lender or Revolving Credit Lender making Revolving Credit
Loans denominated in Canadian Dollars, blank forms of
Bankers’ Acceptances. In this respect, it is the
responsibility of each Canadian Term Loan Lender and each Revolving
Credit Lender making Revolving Credit Loans denominated in Canadian
Dollars to maintain an adequate supply of blank forms of
Bankers’ Acceptances for acceptance under this Agreement. The
applicable Borrower recognizes and agrees that all Bankers’
Acceptances signed and/or endorsed on its behalf by a Canadian Term
Loan Lender or a Revolving Credit Lender making Revolving Credit
Loans denominated in Canadian Dollars shall bind such Borrower as
fully and effectually as if signed in the handwriting of and duly
issued by the proper signing officers of such Borrower. Each
Canadian Term Loan Lender and each Revolving Credit Lender making
Revolving Credit Loans denominated in Canadian Dollars is hereby
authorized to issue such Bankers’ Acceptance
38
endorsed in blank in such face amounts as may be determined by
such Canadian Term Loan Lender or Revolving Credit Lender making
Revolving Credit Loans denominated in Canadian Dollars;
provided that the aggregate amount thereof is equal to the
aggregate amount of Bankers’ Acceptances required to be
accepted and purchased by such Canadian Term Loan Lender or
Revolving Credit Lender making Revolving Credit Loans denominated
in Canadian Dollars. No Canadian Term Loan Lender and no Revolving
Credit Lender making Revolving Credit Loans denominated in Canadian
Dollars shall be liable for any damage, loss or other claim arising
by reason of any loss or improper use of any such instrument except
the gross negligence or willful misconduct of such Canadian Term
Loan Lender or such Revolving Credit Lender or its respective
officers, employees, agents or representatives. Each Canadian Term
Loan Lender and each Revolving Credit Lender making Revolving
Credit Loans denominated in Canadian Dollars shall maintain a
record with respect to Bankers’ Acceptances held by it in
blank hereunder, voided by it for any reason, accepted and
purchased by it hereunder, and cancelled at their respective
maturities. Each Canadian Term Loan Lender and each Revolving
Credit Lender making Revolving Credit Loans denominated in Canadian
Dollars agrees to provide such records to the applicable Borrower
at such Borrower’s expense upon request.
(e)
Execution . Drafts drawn by any Borrower to be accepted as
Bankers’ Acceptances shall be signed by a duly authorized
officer or officers of such Borrower or by its attorneys including
attorneys appointed pursuant to this Section 2.8.
Notwithstanding that any Person whose signature appears on any
Bankers’ Acceptance may no longer be an authorized signatory
for any Borrower at the time of issuance of a Bankers’
Acceptance, that signature shall nevertheless be valid and
sufficient for all purposes as if the authority had remained in
force at the time of issuance and any Bankers’ Acceptance so
signed shall be binding on such Borrower.
(f)
Issuance . The Administrative Agent or the Canadian Agent,
as applicable, promptly following receipt of a Borrowing Notice for
Bankers’ Acceptances, shall advise the Canadian Term Loan
Lenders and the Revolving Credit Lenders making Revolving Credit
Loans denominated in Canadian Dollars of the notice and shall
advise each such Canadian Term Loan Lender and each such Revolving
Credit Lender of the face amount of Bankers’ Acceptances to
be accepted by it and the applicable Interest Period (which shall
be identical for all Canadian Term Loan Lenders and Revolving
Credit Lenders making Revolving Credit Loans denominated in
Canadian Dollars). The aggregate face amount of Bankers’
Acceptances to be accepted by a Canadian Term Loan Lender or a
Revolving Credit Lender making Revolving Credit Loans denominated
in Canadian Dollars shall be determined by the Canadian Agent by
reference to such Canadian Term Loan Lender’s Canadian Term
Loan Percentage or such Revolving Credit Lender’s Revolving
Credit Percentage of the issue of Bankers’ Acceptances,
except that, if the face amount of a Bankers’ Acceptance
which would otherwise be accepted by a Canadian Term Loan Lender or
a Revolving Credit Lender making Revolving Credit Loans denominated
in Canadian Dollars would not be Cdn. $1,000,000 or a whole
multiple thereof, the face amount shall be increased or reduced by
the Administrative Agent or the Canadian Agent, as applicable, in
its sole discretion to Cdn. $1,000,000, or the nearest whole
multiple of that amount, as appropriate; provided that after
such issuance, no Canadian Term Loan Lender shall have aggregate
outstanding Canadian Term Loans in excess of its Canadian Term Loan
Commitment and no Revolving Credit Lender making Revolving Credit
Loans denominated in Canadian Dollars shall have aggregate
outstanding Revolving Credit Loans in excess of its Revolving
Credit Commitment.
39
(g)
Waiver of Presentment and Other Conditions . The applicable
Borrower waives presentment for payment and any other defense to
payment of any amounts due to a Canadian Term Loan Lender or a
Revolving Credit Lender making Revolving Credit Loans denominated
in Canadian Dollars in respect of a Bankers’ Acceptance
accepted and purchased by it pursuant to this Agreement which might
exist solely by reason of the Bankers’ Acceptance being held,
at the maturity thereof, by the Lender in its own right and such
Borrower agrees not to claim any days of grace if the Lender as
holder sues such Borrower on the Bankers’ Acceptance for
payment of the amount payable by the such Borrower thereunder.
(h)
BA Equivalent Loans by Non BA Lenders . Whenever either
Borrower requests a Canadian Term Loan or a Revolving Credit Loan
denominated in Canadian Dollars under this Agreement by way of
Bankers’ Acceptances, each Non BA Lender shall, in lieu of
accepting a Bankers’ Acceptance, make a BA Equivalent Loan in
an amount equal to the Non BA Lender’s ratable portion of the
Canadian Term Loan or the Revolving Credit Loan denominated in
Canadian Dollars.
(i)
Terms Applicable to Discount Notes . As set out in the
definition of Bankers’ Acceptances, that term includes
Discount Notes and all terms of this Agreement applicable to
Bankers’ Acceptances shall apply equally to Discount Notes
evidencing BA Equivalent Loans with such changes as may in the
context be necessary. For greater certainty:
(i) the
term of a Discount Note shall be the same as the Interest Period
for Bankers’ Acceptances accepted and purchased on the same
Borrowing Date in respect of the same Canadian Term Loan or
Revolving Credit Loan denominated in Canadian Dollars;
(ii) an
acceptance fee will be payable in respect of a Discount Note and
shall be calculated at the same rate and in the same manner as the
Acceptance Fee in respect of a Bankers’ Acceptance;
(iii)
the Discount Rate applicable to a Discount Note shall be the
Discount Rate applicable to Bankers’ Acceptances accepted by
the Canadian Agent (as Lender) on the same Borrowing Date, as the
case may be, in respect of the same Canadian Term Loan or Revolving
Credit Loan denominated in Canadian Dollars; and
(iv) a
Non BA Lender may elect to not have its Discount Notes evidenced by
a physical promissory note, in which case, the Canadian
Agent’s loan accounts and Register shall evidence the
issuance thereof.
(j)
Depository Bills and Notes Act . At the option of either
Borrower and any Lender, Bankers’ Acceptances under this
Agreement to be accepted by that Lender may be issued in the form
of depository bills for deposit with The Canadian Depository for
Securities Limited pursuant to the Depository Bills and Notes Act
(Canada). All depository bills so issued shall be governed by the
provisions of this Section 2.8.
(k)
Prepayments and Mandatory Payments . If at any time any
Bankers’ Acceptances are to be paid prior to their maturity,
the Canadian Borrower shall be required to deposit the amount of
such prepayment in a cash collateral account with the Canadian
Agent
40
until the date of maturity of those Bankers’ Acceptances.
The cash collateral account shall be under the sole control of the
Canadian Agent. Except as contemplated by this Section 2.8,
neither any Borrower nor any Person claiming on behalf of such
Borrower shall have any right to any of the cash in the cash
collateral account. The Canadian Agent shall apply the cash held in
the cash collateral account to the face amount of those
Bankers’ Acceptances at maturity whereupon any cash remaining
in the cash collateral account shall be released by the Canadian
Agent to the applicable Borrower.
2.9
Repayment of Loans; Evidence of Debt . (a) Each
Borrower hereby unconditionally promises to pay to the
Administrative Agent or the Canadian Agent, as applicable, for the
account of the appropriate Revolving Credit Lender, (i) the
then unpaid principal amount of each Revolving Credit Loan of such
Revolving Credit Lender on the Revolving Credit Termination Date
(or on such earlier date on which the Loans become due and payable
pursuant to Section 8) and (ii) the then unpaid principal
amount of each Swing Line Loan of such Swing Line Lender on the
Revolving Credit Termination Date (or on such earlier date on which
the Loans become due and payable pursuant to Section 8). The
US Borrower hereby unconditionally promises to pay to the
Administrative Agent, for the account of the appropriate US Term
Loan Lender, (i) the principal amount of each US Term Loan of
such US Term Loan Lender in installments according to the
amortization schedule set forth in Section 2.3(a) (or on such
earlier date on which the Loans become due and payable pursuant to
Section 8) and (ii) with respect to any Incremental US
Term Loan under an Incremental US Term Loan Facility, the principal
amount of each Incremental US Term Loan of the relevant series of
Incremental US Term Loans according to the relevant repayment
schedule agreed to by the Lenders of such Incremental US Term Loan
pursuant to Section 2.26 (or such earlier date on which the
Loans become due and payable pursuant to Section 8). The
Canadian Borrower hereby unconditionally promises to pay to the
Canadian Agent, for the account of the appropriate Canadian Term
Loan Lender, (i) the principal amount of each Canadian Term
Loan of such Canadian Term Loan Lender in installments according to
the amortization schedule set forth in Section 2.3(b) (or on
such earlier date on which the Loans become due and payable
pursuant to Section 8) and (ii) with respect to any
Incremental Canadian Term Loan under an Incremental Canadian Term
Loan Facility, the principal amount of each Incremental Canadian
Term Loan of the relevant series of Incremental Canadian Term Loans
according to the relevant repayment schedule agreed to by the
Lenders of such Incremental Canadian Term Loan pursuant to
Section 2.26 (or such earlier date on which the Loans become
due and payable pursuant to Section 8). Each Borrower hereby
further agrees to pay interest on the unpaid principal amount of
the Loans borrowed by such Borrower from time to time outstanding
from the Closing Date until payment in full thereof at the rate per
annum and on the dates, set forth in Section 2.16.
(b) Each
Lender shall maintain in accordance with its usual practice an
account or accounts evidencing indebtedness of the applicable
Borrower to such Lender resulting from each Loan of such Lender
from time to time, including the amounts of principal and interest
payable and paid to such Lender from time to time under this
Agreement.
(c) The
Administrative Agent, on behalf of the US Borrower, and the
Canadian Agent, on behalf of the Canadian Borrower, shall maintain
the Register pursuant to Section 10.6(d), and a subaccount
therein for each Lender, in which shall be recorded (i) the
amount of each Loan made hereunder and any Note evidencing such
Loan, the Type of such
41
Loan and each Interest Period applicable thereto, (ii) the
amount of any principal or interest due and payable or to become
due and payable from the applicable Borrower to each Lender
hereunder and (iii) both the amount of any sum received by the
Administrative Agent hereunder from the US Borrower, or by the
Canadian Agent from the Canadian Borrower, and each Lender’s
share thereof.
(d) The
entries made in the Register and the accounts of each Lender
maintained pursuant to Section 2.9(b) shall, to the
extent permitted by applicable law, be prima facie
evidence of the existence and amounts of the obligations of the
Borrowers therein recorded; provided , however , that
the failure of any Lender, the Administrative Agent or the Canadian
Agent to maintain the Register or any such account, or any error
therein, shall not in any manner affect the obligation of either
Borrower to repay (with applicable interest) the Loans made to such
Borrower by such Lender in accordance with the terms of this
Agreement.
(e) Each
Borrower agrees that, upon the request to the Administrative Agent
or the Canadian Agent by any Lender, such Borrower will promptly
execute and deliver to such Lender a promissory note of the
applicable Borrower evidencing any US Term Loans, Canadian Term
Loans, Revolving Credit Loans or Swing Line Loans as the case may
be, of such Lender, substantially in the forms of Exhibit G-1, G-2,
G-3, respectively (a " Term Note ", " Revolving Credit
Note " or " Swing Line Note ", respectively), with
appropriate insertions as to date and principal amount;
provided , that delivery of Notes shall not be a condition
precedent to the occurrence of the Closing Date or the making of
the Loans on the Closing Date, and the obligations of the Borrowers
in respect of each Loan shall be enforceable in accordance with the
Loan Documents whether or not evidenced by any Note.
2.10
Commitment Fees, etc . (a) Each Borrower, jointly and
severally with the other Borrower, agrees to pay to the
Administrative Agent or the Canadian Agent, as applicable, for the
account of each Revolving Credit Lender, a commitment fee for the
period from and including the Closing Date to the last day of the
Revolving Credit Commitment Period computed at the Commitment Fee
Rate on the average daily amount of the Available Revolving Credit
Commitment of such Lender during the period for which payment is
made, payable quarterly in arrears on the last day of each March,
June, September and December and on the Revolving Credit
Termination Date, commencing on the first of such dates to occur
after the Closing Date.
(b) The
Borrowers, jointly and severally, agree to pay (i) to the
Administrative Agent the fees in the amounts and on the dates from
time to time agreed to in writing by the Borrowers and the
Administrative Agent and (ii) to the Canadian Agent the fees
in the amounts and on the dates from time to time agreed to in
writing by the Borrowers and the Canadian Agent.
2.11
Termination or Reduction of Revolving Credit Commitments .
Each Borrower shall have the right, upon not less than three
Business Days notice to the Administrative Agent and, if
applicable, the Canadian Agent, to terminate the Revolving Credit
Commitments, or, from time to time, to reduce the aggregate amount
of the Revolving Credit Commitments; provided , that no such
termination or reduction of the Revolving Credit CA Commitments
shall be permitted if, after giving effect thereto and to any
prepayments of the Revolving Credit Loans and Swing Line Loans made
on the effective date thereof, the Dollar
42
Equivalent of the aggregate amount of Revolving CA Extensions of
Credit would exceed the aggregate amount of Revolving Credit CA
Commitments and no such termination or reduction of the Revolving
Credit US/CA Commitments shall be permitted if, after giving effect
thereto and to any prepayments of Revolving Credit Loans and Swing
Line Loans made on the effective date thereof, the Dollar
Equivalent of the aggregate amount of Revolving US/CA Extensions of
Credit would exceed the aggregate amount of the Revolving Credit
US/CA Commitments. Any such reduction shall be in an amount equal
to $1,000,000 or a whole multiple thereof, and shall reduce
permanently the applicable Revolving Credit Commitments then in
effect.
2.12
Optional Prepayments . Each Borrower may at any time and
from time to time prepay the Loans, in whole or in part, without
premium or penalty (except as otherwise provided herein), upon
irrevocable notice delivered to the Administrative Agent (and, with
respect to Canadian Loans, the Canadian Agent), at least three
Business Days prior thereto in the case of Eurodollar Loans or
Bankers’ Acceptances and at least one Business Day prior
thereto in the case of Base Rate Loans or Canadian Prime Rate
Loans, which notice shall specify the date and amount of such
prepayment, and whether such prepayment is of US Term Loans,
Canadian Term Loans or Revolving Credit Loans, and whether such
prepayment is of Eurodollar Loans, Bankers’ Acceptances, Base
Rate Loans or Canadian Prime Rate Loans; provided , that
(i) if a Eurodollar Loan is prepaid on any day other than the
last day of the Interest Period applicable thereto, the applicable
Borrower shall also pay any amounts owing pursuant to
Section 2.22, (ii) prepayments of Bankers’
Acceptances shall be made in accordance with Section 2.8(k),
and (iii) no prior notice is required for the prepayment of
Swing Line Loans. Upon receipt of any such notice, the
Administrative Agent (or the Canadian Agent, if applicable) shall
promptly notify each relevant Lender thereof. If any such notice is
given, the amount specified in such notice shall be due and payable
on the date specified therein, together with (except in the case of
(1) Revolving Credit Loans that are Base Rate Loans,
(2) Canadian Prime Rate Loans and (3) Swing Line Loans)
accrued interest to such date on the amount prepaid. Partial
prepayments of Term Loans and Revolving Credit Loans shall be in an
aggregate principal amount of $1,000,000 or Cdn. $1,000,000, as
applicable, or a whole multiple thereof. Partial prepayments of
Swing Line Loans shall be in an aggregate principal amount of
$100,000 or Cdn. $100,000, as applicable, or a whole multiple
thereof. Amounts applied in connection with the prepayments made
pursuant to this Section 2.12 shall be applied to the relevant
Loans as provided in Section 2.19.
2.13
Mandatory Prepayments and Commitment Reductions .
(a) If any Capital Stock shall be issued by the US Borrower
(other than as set forth below with respect to Excluded Proceeds)
or (ii) if any Indebtedness shall be incurred by any Group
Member, excluding any Indebtedness incurred in accordance with
Section 7.2 as in effect on the Closing Date (except
Indebtedness incurred pursuant to Section 7.2(g)(i)(x)), then
on the date of such issuance or incurrence, the Term Loans shall be
prepaid, and/or the Revolving Credit Loans shall be repaid, by an
amount equal to, in the case of an issuance of Capital Stock, 50%
of the Net Cash Proceeds thereof, or in the case of Indebtedness,
100% of the Net Cash Proceeds, other than any Excluded Proceeds, of
such issuance or incurrence, as set forth in Section 2.13(d).
The provisions of this Section do not constitute a consent to
the issuance of any equity securities by any entity whose equity
securities are pledged pursuant to the Guarantee and US Collateral
Agreement or the Canadian Collateral Agreement, or a consent to the
incurrence of any Indebtedness by any Group Member.
43
(b) If
on any date any Group Member shall receive Net Cash Proceeds from
any Asset Sale, Purchase Price Refund or Recovery Event then,
except as provided in the following sentence, unless a Reinvestment
Notice shall be delivered in respect thereof, on the date of
receipt by such Group Member of such Net Cash Proceeds, the Term
Loans shall be prepaid, and/or the Revolving Credit Loans shall be
repaid, by an amount equal to the amount of such Net Cash Proceeds,
as set forth in Section 2.13(d); provided , that,
notwithstanding the foregoing, (i) the aggregate Net Cash
Proceeds of Asset Sales and Recovery Events that may be excluded
from the foregoing requirement pursuant to one or more Reinvestment
Notices and pending reinvestment at any given time shall not exceed
$40,000,000 and (ii) on each Reinvestment Prepayment Date the
Term Loans shall be prepaid, and/or the Revolving Credit Loans
shall be repaid, by an amount equal to the Reinvestment Prepayment
Amount with respect to the relevant Reinvestment Event, as set
forth in Section 2.13(d). Notwithstanding the foregoing, Net
Cash Proceeds received from dispositions permitted by Section
7.5(e) shall be applied on the date of receipt to repay outstanding
Revolving Loans. The provisions of this Section do not
constitute a consent to the consummation of any Disposition not
permitted by Section 7.5.
(c) If
for any fiscal year of the US Borrower commencing with the fiscal
year ending December 31, 2009 there shall be Excess Cash Flow,
then, on the relevant Excess Cash Flow Application Date, the Term
Loans shall be prepaid and/or the Revolving Credit Loans shall be
repaid, by an amount equal to 50% of such Excess Cash Flow, as set
forth in Section 2.13(d). Each such prepayment shall be made
on a date (an " Excess Cash Flow Application Date ") no
later than five days after the earlier of (i) the date on
which the financial statements of the US Borrower referred to in
Section 6.1(a), for the fiscal year with respect to which such
prepayment is made, are required to be delivered to the Lenders and
(ii) the date such financial statements are actually
delivered.
(d) Except
as otherwise provided in clause (b) above with respect to Net
Cash Proceeds received from dispositions permitted by
Section 7.5(e), amounts to be applied in connection with
prepayments and Commitment reductions made pursuant to this
Section 2.13 shall be applied, first , to the
prepayment of the Term Loans and, second , to the repayment
of the Revolving Credit Loans, as provided in Section 2.19.
Any repayment of Revolving Credit Loans pursuant to this
Section 2.13 shall not result in a reduction of the Revolving
Credit Commitments.
(e) If
at any time the Dollar Equivalent of the total aggregate amount of
the Revolving US/CA Extensions of Credit exceeds the Total
Revolving Credit US/CA Commitments, the Borrowers shall repay
Revolving Credit US/CA Loans and/or Swing Line Loans to such
extent; provided that if the aggregate principal amount of
Revolving Credit US/CA Loans and Swing Line Loans is less than such
excess (because L/C Obligations constitute a portion thereof), the
Borrowers shall, to the extent of the balance of such excess,
replace outstanding Letters of Credit and/or deposit an amount in a
cash collateral account established with the Administrative Agent
for the benefit of the Secured Parties on terms and conditions
satisfactory to the Administrative Agent. If at any time the total
aggregate amount of the Revolving CA Extensions of Credit exceeds
the Total Revolving Credit CA Commitments, the Canadian Borrower
shall repay Revolving Credit CA Loans and/or Swing Line Loans to
such extent; provided that if the aggregate principal amount
of Revolving Credit CA Loans and Swing Line Loans to the Canadian
Borrower is less than such excess (because L/C Obligations of
the
44
Canadian Borrower constitute a portion thereof), the Canadian
Borrower shall, to the extent of the balance of such excess,
replace its outstanding Letters or Credit and/or deposit an amount
in a cash collateral account established with the Canadian Agent
for the benefit of the Secured Parties on terms and conditions
satisfactory to the Canadian Agent.
(f) If
at any time the Dollar Equivalent of the aggregate amount of the
Total Extensions of Credit exceeds the Total Revolving Credit
Commitment, the Borrowers shall repay Revolving Credit Loans and/or
Swing Line Loans to such extent; provided that if the
aggregate principal amount of Revolving Credit Loans and Swing Line
Loans is less than such excess (because L/C Obligations constitute
a portion thereof), the Borrowers shall to the extent of the
balance of such excess, replace outstanding Letters of Credit
and/or deposit an amount in a cash collateral account established
with the Administrative Agent for the benefit of the Secured
Parties on terms and conditions satisfactory to the Administrative
Agent.
2.14
Conversion and Continuation Options . (a) Each
Borrower may elect from time to time to convert Eurodollar Loans to
Base Rate Loans, and each Borrower may elect to convert
Bankers’ Acceptances upon their maturity to Canadian Prime
Rate Loans by giving the Administrative Agent (and, with respect to
Canadian Loans, the Canadian Agent) at least one Business
Day’s prior irrevocable notice of such election,
provided , that, any such conversion of Eurodollar Loans may
be made only on the last day of an Interest Period with respect
thereto. Each Borrower may elect from time to time to convert Base
Rate Loans to Eurodollar Loans, and each Borrower may elect to
convert Canadian Prime Rate Loans to Bankers’ Acceptances, by
giving the Administrative Agent (and, with respect to Canadian
Loans, the Canadian Agent) at least three Business Days prior
irrevocable notice of such election (which notice shall specify the
length of the initial Interest Period therefor), provided ,
that no Base Rate Loan under a particular Facility may be converted
into a Eurodollar Loan and no Canadian Prime Rate Loan may be
converted to Bankers’ Acceptances (i) when any Event of
Default has occurred and is continuing and the Administrative Agent
has (or, with respect to any Canadian Loans, the Canadian Agent
has), or the holders of more than 50% of the Loans in respect of
such Facility (or, in the case of the Revolving Credit CA Facility
or the Revolving Credit US/CA Facility, the holders of more than
50% of the applicable Revolving Credit Commitments, or, if such
Revolving Credit Commitments have been terminated, 50% of the
applicable Revolving Extensions of Credit then outstanding) have,
determined in its or their sole discretion not to permit such
conversions or (ii) after the date that is one month prior to
the final scheduled termination or maturity date of the applicable
Facility. Upon receipt of any such notice, the Administrative Agent
or the Canadian Agent, as applicable, shall promptly notify each
relevant Lender thereof.
(b) each
Borrower may elect to continue any Eurodollar Loan as such, and
each Borrower may elect to continue Bankers’ Acceptances as
such upon the expiration of the then current Interest Period with
respect thereto by giving at least two Business Days’ prior
irrevocable notice to the Administrative Agent (and, with respect
to Canadian Loans, the Canadian Agent), in accordance with the
applicable provisions of the term "Interest Period" set forth in
Section 1.1 in respect of Eurodollar Loans, of the length of
the next Interest Period to be applicable to such Loans,
provided , that no Eurodollar Loan or Bankers’
Acceptance under a particular Facility may be continued as such
(i) when any Event of Default has occurred and is continuing
and the Administrative Agent has (or with respect to the Canadian
Term Loan Facility, the Canadian Agent has), or the holders of more
than 50% of the Loans in respect of
45
such Facility (or, in the case of the Revolving Credit CA
Facility or the Revolving Credit US/CA Facility, the holders of
more than 50% of the applicable Revolving Credit Commitments, or,
if such Revolving Credit Commitments have been terminated, 50% of
the applicable Revolving Extensions of Credit then outstanding)
have, determined in its or their sole discretion not to permit such
continuations or (ii) after the date that is one month prior
to the final scheduled termination or maturity date of such
Facility, and provided , further , that if the
applicable Borrower shall fail to give any required notice as
described above in this paragraph (i) such Eurodollar Loans
shall be continued for the same Interest Period as the then
expiring Interest Period as of the last day of such then expiring
Interest Period, except that if such continuation is not permitted
pursuant to the first proviso in this Section 2.14(b), such
Loans shall be repaid or converted automatically to Base Rate
Loans, and (ii) the face amount of such Bankers’
Acceptance shall be repaid or automatically converted to Canadian
Prime Rate Loans on the last day of such then expiring Interest
Period. Upon receipt of any such notice, the Administrative Agent
or the Canadian Agent, as applicable, shall promptly notify each
relevant Lender thereof.
2.15
Minimum Amounts and Maximum Number of Eurodollar Tranches;
Bankers’ Acceptances . (a) Notwithstanding anything
to the contrary in this Agreement, all borrowings, conversions,
continuations and optional prepayments of Eurodollar Loans and all
selections of Interest Periods shall be in such amounts and be made
pursuant to such elections so that, (i) after giving effect
thereto, the aggregate principal amount of the Eurodollar Loans
comprising each Eurodollar Tranche shall be equal to $5,000,000 or
a whole multiple of $1,000,000 in excess thereof and (ii) no
more than 10 Eurodollar Tranches shall be outstanding at any one
time.
(b)
Notwithstanding anything to the contrary in this Agreement, all
borrowings, conversions, continuations and optional prepayments of
Bankers’ Acceptances and all selections of Interest Periods
shall be in such amounts and be made pursuant to such elections so
that after giving effect thereto, the aggregate principal amount of
any Bankers’ Acceptances shall be equal to Cdn. $500,000 or a
whole multiple of Cdn. $100,000 in excess thereof.
2.16
Interest Rates and Payment Dates . (a) Each Eurodollar
Loan shall bear interest for each day during each Interest Period
with respect thereto at a rate per annum equal to the Eurodollar
Rate determined for such day plus the Applicable Margin in effect
for such day.
(b) Each
Base Rate Loan (other than a Revolving Credit Loan made to the
Canadian Borrower denominated in Dollars) shall bear interest for
each day on which it is outstanding at a rate per annum equal to
the Base Rate in effect for such day plus the Applicable Margin in
effect for such day and each Base Rate Loan which is a Revolving
Credit Loan made to the Canadian Borrower denominated in Dollars
shall bear interest for each day on which it is outstanding at a
rate per annum equal to the US Base Rate in Canada in effect for
such day plus the Applicable Margin in effect for such day.
(c) Each
Canadian Prime Rate Loan shall bear interest for each day on which
it is outstanding at a rate per annum equal to the Canadian Prime
Rate in effect for such day plus the Applicable Margin in effect
for such day.
46
(d) Upon
acceptance of a Bankers’ Acceptance by a Lender, the Canadian
Borrower shall pay to the Canadian Agent on behalf of the Lender a
fee (the " Acceptance Fee ") calculated on the face amount
of the Bankers’ Acceptances at a rate per annum equal to the
Applicable Margin on the basis of the number of days in the
Interest Period for the Bankers’ Acceptance and a year of 365
days.
(e)
(i) If all or a portion of the principal amount of any Loan or
Reimbursement Obligation shall not be paid when due (whether at the
stated maturity, by acceleration or otherwise), all outstanding
Loans and Reimbursement Obligations (whether or not overdue) (to
the extent legally permitted) shall bear interest at a rate per
annum that is equal to (x) in the case of the Loans, the rate
that would otherwise be applicable thereto pursuant to the
foregoing provisions of this Section plus 2.00%, and
(ii) if all or a portion of any interest payable on any Loan
or Reimbursement Obligation or any commitment fee or other amount
payable hereunder shall not be paid when due (whether at the stated
maturity, by acceleration or otherwise), such overdue amount shall
bear interest at a rate per annum equal to the rate then applicable
to (x) Base Rate Loans under the relevant Facility plus 2.00%
for interest due in Dollars and (y) the Canadian Prime Rate
plus 2.00% for interest due in Canadian Dollars (or, in the case of
any such other amounts that do not relate to a particular Facility,
the rate then applicable to (x) Base Rate Loans under the
Revolving Credit Facilities plus 2.00% for amounts due in Dollars
and (y) the Canadian Prime Rate plus 2.00% for amounts due in
Canadian Dollars), in each case, with respect to clauses
(i) and (ii) above, from the date of such non-payment
until such amount is paid in full (after as well as before
judgment).
(f) Interest
shall be payable quarterly in arrears on each Interest Payment
Date, provided , that interest accruing pursuant to
paragraph (e) of this Section shall be payable from time
to time on demand.
(g) If
any provision of this Agreement or any of the other Loan Documents
would obligate the Canadian Borrower to make any payment of
interest with respect to the Obligations or other amount payable to
the Canadian Agent or any Lender in an amount or calculated at a
rate which would be prohibited by law or would result in a receipt
by the Canadian Agent or such Lender of interest with respect to
the Obligations at a criminal rate (as such terms are construed
under the Criminal Code (Canada)) then, notwithstanding such
provision, such amount or rates shall be deemed to have been
adjusted with retroactive effect to the maximum amount or rate of
interest, as the case may be, as would not be so prohibited by law
or so result in a receipt by the Canadian Agent or such Lender of
interest with respect to the Obligations at a criminal rate, such
adjustment to be effected, to the extent necessary, as follows:
(1) first, by reducing the amount or rates of interest
required to be paid to the Canadian Agent or the affected Lender
under this Section 2.16(g); and (2) thereafter, by
reducing any fees, commissions, premiums and other amounts required
to be paid to the Canadian Agent or the affected Lender which would
constitute interest with respect to the Obligations for purposes of
Section 347 of the Criminal Code (Canada). Notwithstanding the
foregoing, and after giving effect to all adjustments contemplated
thereby, if the Canadian Agent or any Lender shall have received an
amount in excess of the maximum permitted by that section of the
Criminal Code (Canada), then the Canadian Borrower shall be
entitled, by notice in writing to the Canadian Agent or the
affected Lender, to obtain reimbursement from the Canadian Agent or
such Lender in an amount equal to such excess, and pending such
reimbursement, such amount shall be deemed to be an amount
47
payable by the Canadian Agent or such Lender to the Canadian
Borrower. Any amount or rate of interest under the Obligations
referred to in this Section 2.16(g) shall be determined
in accordance with generally accepted actuarial practices and
principles as an effective annual rate of interest over the term
that any Canadian Loans remain outstanding on the assumption that
any charges, fees or expenses that fall within the meaning of
"interest" (as defined in the Criminal Code (Canada)) shall, if
they relate to a specific period of time, be pro-rated over that
period of time and otherwise be pro-rated over the period from the
Closing Date to the Revolving Credit Termination Date or the Term
Loan Maturity Date, as applicable, and, in the event of a dispute,
a certificate of a Fellow of the Canadian Institute of Actuaries
appointed by the Canadian Agent shall be conclusive for the
purposes of such determination.
(h) For
purposes of disclosure pursuant to the Interest Act (Canada), the
annual rates of interest or fees to which the rates of interest or
fees provided in this Agreement and the other Loan Documents (and
stated herein or therein, as applicable, to be computed on the
basis of a 360 day year or any other period of time less than a
calendar year) are equivalent to the rates so determined multiplied
by the actual number of days in the applicable calendar year and
divided by 360 or such other period of time, respectively.
2.17
Computation of Interest and Fees . (a) Interest, fees,
commissions payable pursuant hereto shall be calculated on the
basis of a 360-day year for the actual days elapsed, except that,
with respect to (i) Base Rate Loans on which interest is
calculated on the basis of the Prime Rate and (ii) Base Rate
Loans in which interest is calculated on the US Base Rate in
Canada, Canadian Prime Rate Loans on which interest is calculated
on the basis of the Canadian Prime Rate, Bankers’ Acceptances
and Discount Notes, the interest thereon shall be calculated on the
basis of a 365- (or 366-, as the case may be) day year for the
actual days elapsed. The Administrative Agent (or, with respect to
Canadian Loans, the Canadian Agent) shall as soon as practicable
notify the applicable Borrower and the relevant Lenders of each
determination of a Eurodollar Rate. Any change in the interest rate
on a Loan resulting from a change in the Canadian Prime Rate, the
Base Rate or the Eurocurrency Reserve Requirements shall become
effective as of the opening of business on the day on which such
change becomes effective. The Administrative Agent (or, with
respect to Canadian Loans, the Canadian Agent) shall as soon as
practicable notify the applicable Borrower and the relevant Lenders
of the effective date and the amount of each such change in
interest rate.
(b) Each
determination of an interest rate by the Administrative Agent (or,
with respect to Canadian Loans, the Canadian Agent) pursuant to any
provision of this Agreement shall be conclusive and binding on the
Borrowers and the Lenders in the absence of manifest error. The
Administrative Agent or the Canadian Agent, as applicable, shall,
at the request of any Borrower, deliver to such Borrower a
statement showing the quotations used by the Administrative Agent
or the Canadian Agent, as applicable, in determining any interest
rate or Acceptance Fee pursuant to Section 2.16.
2.18
Inability to Determine Interest Rate . If prior to the first
day of any Interest Period:
(a)
(i) the Administrative Agent (or, with respect to Canadian
Loans, the Canadian Agent) shall have determined (which
determination shall be conclusive and binding upon the
48
Borrowers) that, by reason of circumstances affecting the
relevant market, adequate and reasonable means do not exist for
ascertaining the Eurodollar Rate for such Interest Period, or
(ii)
the Administrative Agent (and, with respect to Canadian Loans, the
Canadian Agent) shall have received notice from the holders of more
than 50% of the Loans in respect of the relevant Facility (or, in
the case of the Revolving Credit CA Facility or the Revolving
Credit US/CA Facility, the holders of more than 50% of the
applicable Revolving Credit Commitments, or, if such Revolving
Credit Commitments have been terminated, 50% of the applicable
Revolving Extensions of Credit then outstanding) that the
Eurodollar Rate determined or to be determined for such Interest
Period will not adequately and fairly reflect the cost to such
Lenders (as conclusively certified by such Lenders) of making or
maintaining their affected Loans during such Interest Period, the
Administrative Agent or the Canadian Agent, as applicable, shall
give telecopy or telephonic notice thereof to the applicable
Borrower and the relevant Lenders as soon as practicable
thereafter. If such notice is given (x) any Eurodollar Loans
under the relevant Facility requested to be made on the first day
of such Interest Period shall be made as Base Rate Loans,
(y) any Loans under the relevant Facility that were to have
been converted on the first day of such Interest Period to
Eurodollar Loans shall be continued as Base Rate Loans and
(z) any outstanding Eurodollar Loans under the relevant
Facility shall be converted, on the last day of the then current
Interest Period with respect thereto, to Base Rate Loans. Until
such notice has been withdrawn by the Administrative Agent and, if
applicable, the Canadian Agent, no further Eurodollar Loans under
the relevant Facility shall be made or continued as such, nor shall
the applicable Borrower have the right to convert Loans under the
relevant Facility to Eurodollar Loans.
(b)
any Lender making Loans denominated in Canadian Dollars determines
in good faith, which determination shall be final, conclusive and
binding upon the applicable Borrower, and notifies such Borrower
that, by reason of circumstances affecting the money market there
is no market for Bankers’ Acceptances or the demand for
Bankers’ Acceptances is insufficient to allow the sale or
trading of the Bankers’ Acceptances created hereunder, then:
(i)
the right of the applicable Borrower to request a Loan denominated
in Canadian Dollars by means of Bankers’ Acceptances shall be
suspended until such Lender determines that the circumstances
causing such suspension no longer exist and such Lender so notifies
the applicable Borrower; and
(ii)
any notice for the issuance of a Bankers’ Acceptance which is
outstanding shall be cancelled and the request for such issuance
shall be deemed to be a request for a Canadian Prime Rate Loan in
the face amount of the requested Bankers’ Acceptance; such
Lender shall promptly notify the applicable Borrower of the
suspension of such Borrower’s right to request a Loan
denominated in Canadian Dollars by way of a Bankers’
Acceptance and of the termination of any such suspension.
49
2.19
Pro Rata Treatment and Payments . (a) Each borrowing by
any Borrower from the Lenders hereunder, each payment by any
Borrower on account of any commitment fee or Letter of Credit fee,
and any reduction of the Commitments of the Lenders, shall be made
(i) with respect to obligations of the Canadian Borrower under
the Revolving Credit Facilities, allocated among the Revolving
Credit Facilities pro rata based on the Revolving Credit CA
Facility Percentage and the Revolving Credit US/CA Facility
Percentage, as applicable, and (ii) otherwise, pro
rata according to the respective US Term Loan Percentages,
Canadian Term Loan Percentages or Revolving Credit US/CA
Percentage, as the case may be, of the relevant Lenders. Each
payment (other than prepayments) in respect of principal in respect
of the Term Loans or interest in respect of the Loans and each
payment in respect of fees or expenses payable hereunder shall be
applied to the amounts of such obligations owing to the Lenders
pro rata according to the respective amounts then due
and owing to the Lenders (and with respect to amounts owed by the
Canadian Borrower under the Revolving Credit Facilities, allocated
among the Revolving Credit Facilities pro rata based on the
applicable Revolving Credit Facility Percentage).
(b) Each
optional and mandatory payment (including prepayments) required by
Section 2.13 to be applied to the Term Loans shall be
allocated among the Term Loan Facilities pro rata
according to the respective outstanding principal amounts of Term
Loans under such Facilities. Each payment (including each
prepayment) of the Term Loans outstanding under any Term Loan
Facility shall be allocated among the Term Loan Lenders holding
such Term Loans pro rata based on the principal
amount of such Term Loans held by such Term Loan Lenders, and shall
be applied to the remaining installments of such Term Loans ratably
in accordance with the then outstanding amounts thereof. Amounts
prepaid on account of the Term Loans may not be reborrowed.
(c) Each
payment (including each prepayment) of the Revolving Credit Loans
of the Canadian Borrower outstanding under the Revolving Credit
Facilities shall be allocated among the Revolving Credit
Facilities, pro rata, based on the Revolving Credit CA Facility
Percentage and the Revolving Credit US/CA Facility Percentage, as
applicable, and then to the Revolving Credit Lenders with respect
to such Revolving Credit Facility, pro rata according
to the respective outstanding principal amounts of the Revolving
Credit Loans of the Canadian Borrower then held by such Revolving
Credit Lenders. Each payment (including each prepayment) of the
Revolving Credit Loans of the US Borrower shall be allocated among
the Revolving Credit Lenders holding such Revolving Credit Loans,
pro rata, according to the respective outstanding principal amounts
of the Revolving Credit Loans of the US Borrower then held by such
Revolving Credit Lenders. Each payment in respect of Reimbursement
Obligations in respect of any Letter of Credit shall be made to the
Issuing Lender that issued such Letters of Credit.
(d) The
application of any payment of Loans under any Facility (including
optional and mandatory prepayments) shall be made, first ,
to Base Rate Loans (or Canadian Prime Rate Loans, if applicable),
under such Facility and, second , to Eurodollar Loans (or
Bankers’ Acceptances, if applicable), under such Facility.
Each payment of the Loans (except in the case of Swing Line Loans
and Revolving Credit Loans that are Base Rate Loans or Canadian
Prime Rate Loans) shall be accompanied by accrued interest to the
date of such payment on the amount paid.
50
(e) All
payments (including prepayments) to be made by any Borrower
hereunder, whether on account of principal, interest, fees or
otherwise, shall be made without setoff or counterclaim. All
payments (including prepayments) to be made by the US Borrower
hereunder, whether on account of principal, interest, fees or
otherwise shall be made prior to 11:00 A.M., New York City
time, on the due date thereof to the Administrative Agent, for the
account of the relevant Lenders, at the Payment Office, in Dollars
(or Canadian Dollars, as applicable) and in immediately available
funds. Any such payment made by the US Borrower after
11:00 A.M., New York City time, on any Business Day shall be
deemed to have been made on the next following Business Day. The
Administrative Agent shall distribute such payments to the relevant
Lenders promptly upon receipt in like funds as received. All
payments (including prepayments) to be made by the Canadian
Borrower hereunder, whether on account of principal, interest, fees
or otherwise, shall be made prior to 11:00 A.M., Toronto time,
on the due date thereof to the Canadian Agent, for the account of
the relevant Lenders, at the Canadian Payment Office, in Canadian
Dollars (or Dollars, as applicable) and in immediately available
funds. Any payment made by the Canadian Borrower after
11:00 A.M., Toronto time, on any Business Day shall be deemed
to have been made on the next following Business Day. The Canadian
Agent shall distribute such payments to the relevant Lenders
promptly upon receipt in like funds as received. If any payment
hereunder (other than payments on the Eurodollar Loans and
Bankers’ Acceptances) becomes due and payable on a day other
than a Business Day, such payment shall be extended to the next
succeeding Business Day. If any payment on a Eurodollar Loan or
Bankers’ Acceptance becomes due and payable on a day other
than a Business Day, the maturity thereof shall be extended to the
next succeeding Business Day unless the result of such extension
would be to extend such payment into another calendar month, in
which event such payment shall be made on the immediately preceding
Business Day. In the case of any extension of any payment of
principal pursuant to the preceding two sentences, interest thereon
shall be payable at the then applicable rate during such extension.
(f) Unless
the Administrative Agent or the Canadian Agent, as applicable,
shall have been notified in writing by any Lender prior to a
borrowing that such Lender will not make the amount that would
constitute its share of such borrowing available to the applicable
Agent, such Agent may assume that such Lender is making such amount
available to such Agent, and such Agent may, in reliance upon such
assumption, make available to the relevant Borrower a corresponding
amount. If such amount is not made available to the Administrative
Agent or the Canadian Agent, as applicable, by the required time on
the Borrowing Date therefor, such Lender shall pay to the
Administrative Agent or the Canadian Agent, as applicable, on
demand, such amount with interest thereon at a rate equal to the
daily average Federal Funds Effective Rate plus 0.50% for amounts
in Dollars and the interbank offered rate quoted by the Canadian
Agent plus 0.50% for amounts in Canadian Dollars for the period
until such Lender makes such amount immediately available to such
Agent. A certificate of the applicable Agent submitted to any
Lender with respect to any amounts owing under this paragraph shall
be conclusive in the absence of manifest error. If such
Lender’s share of such borrowing is not made available to the
applicable Agent by such Lender within three Business Days after
such Borrowing Date, the applicable Agent shall also be entitled to
recover such amount with interest thereon at the rate per annum
applicable to Base Rate Loans under the relevant Facility, on
demand, from the applicable Borrower (and such amounts shall be
applied solely to the amounts owed to the Administrative Agent,
notwithstanding the other provisions of this Section 2.19). If
the Administrative Agent shall have been notified in writing by any
Lender prior to the Closing Date
51
that such Lender will not make the amount that would constitute
its share of the borrowings on the Closing Date available to the
Administrative Agent, the Administrative Agent may, in its sole
discretion, and in reliance upon this Section 2.19(f), make
available to the relevant Borrowers a corresponding amount. If at
the request of any Lender, the Administrative Agent so agrees to
make such amount available to the relevant Borrowers, such Lender
hereby agrees that such amount shall be made available to the
Administrative Agent no later than the required time on the Second
Business Day after the original Borrowing Date therefor and such
Lender shall pay to the Administrative Agent such amount with
interest thereon at a rate equal to the daily average Federal Funds
Effective Rate plus 0.50% for amounts in Dollars and the interbank
offered rate quoted by the Canadian Agent plus 0.50% for amounts in
Canadian Dollars for the period until such Lender makes such amount
immediately available to the Administrative Agent. A certificate of
the Administrative Agent submitted to any Lender with respect to
any amounts owing under this paragraph shall be conclusive in the
absence of manifest error. If such Lender’s share of such
borrowing is not made available to the Administrative Agent by such
Lender within two Business Days after such Borrowing Date, the
Administrative Agent shall also be entitled to recover such amount
with interest thereon at the rate per annum applicable to Base Rate
Loans under the relevant Facility, on demand, from the applicable
Borrower (and such amounts shall be applied solely to the amounts
owed to the Administrative Agent, notwithstanding the other
provisions of this Section 2.19).
(g) Unless
the Administrative Agent or the Canadian Agent, as applicable,
shall have been notified in writing by the relevant Borrower prior
to the date of any payment due to be made by such Borrower
hereunder that such Borrower will not make such payment to the
applicable Agent, the applicable Agent may assume that such
Borrower is making such payment, and the applicable Agent may, but
shall not be required to, in reliance upon such assumption, make
available to the Lenders their respective pro rata
shares of a corresponding amount. If such payment is not made to
the applicable Agent by such Borrower within three Business Days
after such due date, the applicable Agent shall be entitled to
recover, on demand, from each Lender to which any amount which was
made available pursuant to the preceding sentence, such amount with
interest thereon at the rate per annum equal to the daily average
Federal Funds Effective Rate for amounts in Dollars and the
interbank offered rate quoted by the Canadian Agent for amounts in
Canadian Dollars. Nothing herein shall be deemed to limit the
rights of the Administrative Agent, the Canadian Agent or any
Lender against any Borrower.
2.20
Requirements of Law . (a) If the adoption of or any
change in any Requirement of Law or in the interpretation or
application thereof or compliance by any Lender with any request or
directive (whether or not having the force of law) from any central
bank or other Governmental Authority made subsequent to the Closing
Date (other than with respect to taxes, which shall be governed
exclusively by Section 2.21):
(i)
shall impose, modify or hold applicable any reserve, special
deposit, compulsory loan or similar requirement against assets held
by, deposits or other liabilities in or for the account of,
advances, loans or other extensions of credit by, or any other
acquisition of funds by, any office of such Lender that is not
otherwise included in the determination of the Eurodollar Rate
hereunder; or
(ii)
shall impose on such Lender any other condition;
52
and the result of any of the foregoing is to increase the cost
to such Lender, by an amount which such Lender deems to be
material, of making, converting into, continuing or maintaining
Loans or issuing or participating in Letters of Credit, or to
reduce any amount receivable hereunder in respect thereof, then, in
any such case, the relevant Borrower shall promptly pay such
Lender, upon its demand, any additional amounts necessary to
compensate such Lender for such increased cost or reduced amount
receivable. If any Lender becomes entitled to claim any additional
amounts pursuant to this Section, it shall promptly notify the
relevant Borrower (with a copy to the Administrative Agent and, if
applicable, the Canadian Agent) of the event by reason of which it
has become so entitled.
(b) If
any Lender shall have determined that the adoption of or any change
in any Requirement of Law regarding capital adequacy or in the
interpretation or application thereof or compliance by such Lender
or any corporation controlling such Lender with any request or
directive regarding capital adequacy (whether or not having the
force of law) from any Governmental Authority made subsequent to
the Closing Date shall have the effect of reducing the rate of
return on such Lender’s or such corporation’s capital
as a consequence of its obligations hereunder or under or in
respect of any Letter of Credit to a level below that which such
Lender or such corporation could have achieved but for such
adoption, change or compliance (taking into consideration such
Lender’s or such corporation’s policies with respect to
capital adequacy) by an amount deemed by such Lender to be
material, then from time to time, after submission by such Lender
to the relevant Borrower (with a copy to the Administrative Agent
and, if applicable, the Canadian Agent) of a written request
therefor, the relevant Borrower shall pay to such Lender such
additional amount or amounts as will compensate such Lender or such
corporation for such reduction on an after-tax basis.
(c) A
certificate as to any additional amounts payable pursuant to this
Section submitted by any Lender to any Borrower (with a copy
to the applicable Agent) shall be conclusive in the absence of
manifest error. The obligations of the Borrowers pursuant to this
Section shall survive the termination of this Agreement and
the payment of the Loans and all other amounts payable hereunder.
2.21
Taxes . (a) All payments made by any Borrower under
this Agreement or any other Loan Documents shall be made free and
clear of, and without deduction or withholding for or on account
of, any present or future income, stamp or other taxes, levies,
imposts, duties, charges, fees, deductions or withholdings, which
for purposes of this Section 2.21 shall include interest or
penalties thereon, now or hereafter imposed, levied, collected,
withheld or assessed by any Governmental Authority, excluding
(i) net income taxes, and gross income taxes, gross receipts
taxes, capital taxes and franchise taxes (in each case, imposed in
lieu of net income taxes) imposed on any Arranger, any Agent or any
Lender as a result of a present or former connection between such
Arranger, such Agent or such Lender and the jurisdiction of the
Governmental Authority imposing such tax or any political
subdivision or taxing authority thereof or therein (other than any
such connection arising solely from such Arranger’s, such
Agent’s or such Lender’s having executed, delivered or
performed its obligations or received a payment under, or enforced,
this Agreement or any other Loan Document in such jurisdiction) and
(ii) any branch profit taxes imposed by the United States of
America (or any similar tax imposed by any other jurisdiction
described in clause (i) above) (collectively, " Excluded
Taxes "). If any such non-excluded taxes, levies, imposts,
duties, charges, fees, deductions or
53
withholdings (" Non-Excluded Taxes ") or any Other Taxes
are required to be withheld from any amounts payable to any
Arranger, any Agent or any Lender hereunder, the amounts so payable
to such Arranger, such Agent or such Lender shall be increased to
the extent necessary to yield to such Arranger, such Agent or such
Lender (after payment of all Non-Excluded Taxes and Other Taxes)
interest or any such other amounts payable hereunder at the rates
or in the amounts specified in this Agreement; provided ,
however , that no Borrower nor any Guarantor shall be
required to increase any such amounts payable to any Arranger, any
Agent or any Lender with respect to (x) any Excluded Taxes or
(y) any Non-Excluded Taxes (i) that are attributable to
such Arranger’s, such Agent’s or such Lender’s
failure to comply with the requirements of paragraph (e) of
this Section, or (ii) in the case of any Non-U.S. Lender, that
are United States of America withholding taxes imposed on amounts
payable to such Arranger, such Agent or such Lender at the time
such Arranger, such Agent or such Lender becomes a party to this
Agreement, except to the extent that such Arranger’s, such
Agent’s or such Lender’s assignor (if any) was
entitled, at the time of assignment, to receive additional amounts
from either Borrower with respect to such Non-Excluded Taxes
pursuant to this paragraph (a). The applicable Borrower or the
applicable Guarantor shall make any required withholding and pay
the full amount withheld to the relevant tax authority or other
Governmental Authority in accordance with applicable Requirements
of Law.
(b) In
addition, the Borrowers shall pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.
(c) The
Borrowers shall indemnify each Arranger, Agent and Lender, within
ten (10) days after written demand therefor, for the full
amount of any Non-Excluded Taxes and Other Taxes paid or incurred
by such Arranger, such Agent or such Lender relating to, arising
out of, or in connection with this Agreement or any other Loan
Documents or any payment or transaction contemplated hereby or
thereby, whether or not such Non-Excluded Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant
Governmental Authority and all reasonable costs and expenses
incurred in enforcing the provisions of this Section 2.21;
provided, however, that the Borrowers shall not be required to
indemnify any Arranger, Agent or Lender for (i) any taxes that
would be excluded from a gross-up under Section 2.21(a),
(ii) in duplication of taxes paid under Sections 2.21(a)
or (b). In each case such indemnification shall be made on an
after-tax basis, such that after all required deductions and
payments of all taxes, the relevant Arranger, Agent or Lender
receives and retains an amount equal to the sum it would have
received and retained had it not paid or incurred or been subject
to such taxes or expenses and costs. A certificate from the
relevant Arranger, Agent or Lender setting forth in reasonable
detail the basis and calculation of such taxes shall be conclusive,
absent manifest error.
(d) Whenever
any Non-Excluded Taxes or Other Taxes are payable by a Borrower, as
promptly as possible thereafter it shall send to the Administrative
Agent or the Canadian Agent, as applicable, for the account of the
relevant Arranger, Agent or Lender, as the case may be, a certified
copy of an original official receipt received by such Borrower
showing payment thereof or other written proof of payment thereof
that is reasonably satisfactory to the applicable Agent. If a
Borrower fails to pay any Non-Excluded Taxes or Other Taxes when
due to the appropriate taxing authority or fails to remit to the
applicable Agent the required receipts or other required
documentary evidence, such Borrower shall indemnify the Arrangers,
the
54
Agents and the Lenders for any incremental taxes, interest or
penalties that may become payable by any Arranger, any Agent or any
Lender as a result of any such failure.
(e) The
agreements in this Section 2.21 shall survive the termination
of this Agreement and the payment of the Loans and all other
amounts payable hereunder.
(f) Any
Lender that is entitled to an exemption from or reduction of
withholding tax with respect to payments under this Agreement shall
deliver to the relevant Borrower and the Administrative Agent or
the Canadian Agent, as applicable, at the time or times reasonably
requested in writing by such Borrower such properly completed and
executed documentation prescribed by Requirements of Law or as may
be required by the applicable Agent as will permit such payments to
be made without withholding or at a reduced rate.
In
addition, and without limiting the generality of the foregoing,
each Lender (or Transferee), other than a Lender holding solely
Canadian Term Loans, that is not a citizen or resident of the
United States of America, a corporation, partnership or other
entity created or organized in or under the laws of the United
States of America (or any jurisdiction thereof), or any estate or
trust that is subject to federal income taxation regardless of the
source of its income (a " Non-U.S. Lender ") shall deliver
to the US Borrower and the Administrative Agent two copies of any
of U.S. Internal Revenue Service Form W-8BEN, Form W-8ECI, Form
W-8EXP or Form W-8IMY (together with any required attachments), or,
in the case of a Non-U.S. Lender claiming exemption from U.S.
federal withholding tax under Section 871(h) or
881(c) of the Code with respect to payments of "portfolio
interest" a statement substantially in the form of Exhibit H
to the effect that such Lender is eligible for a complete exemption
from withholding of U.S. taxes under Section 871(h) or
881(c) of the Code and a Form W-8BEN, or any subsequent
versions thereof or successors thereto properly completed and duly
executed by such Non-U.S. Lender claiming complete exemption from,
or a reduced rate of, U.S. federal withholding tax on all payments
by the US Borrower under this Agreement and the other Loan
Documents. Such forms shall be delivered by each Non-U.S. Lender on
or before the date it becomes a party to this Agreement. In
addition, each Non-U.S. Lender shall deliver such forms promptly
upon the obsolescence or invalidity of any form previously
delivered by such Non-U.S. Lender. Each Non-U.S. Lender shall
promptly notify the US Borrower at any time it determines that it
is no longer in a position to provide any previously delivered
certificate to the US Borrower (or any other form of certification
adopted by the U.S. taxing authorities for such purpose).
Notwithstanding any other provision of this paragraph, a Non-U.S.
Lender shall not be required to deliver any form pursuant to this
paragraph that such Non-U.S. Lender is not legally able to deliver.
(g) If
a Lender receives a refund in respect of any Non-Excluded Taxes or
Other Taxes as to which it has been indemnified by a Borrower or
with respect to which a Borrower has paid additional amounts
pursuant to this Section 2.21, it shall within 120 days
from the date of such receipt pay over the amount of such refund
(but only to the extent of indemnity payments made, or additional
amounts paid, by such Borrower under this Section 2.21 with
respect to the Non-Excluded Taxes or Other Taxes giving rise to
such refund) to such Borrower, net of all reasonable out-of-pocket
expenses of such Lender (including any taxes imposed with respect
to such refund) as determined by such Lender in good faith and in
its sole discretion, and without interest (other than interest paid
by the relevant taxation authority with respect to such
refund);
55
provided , however , that such Borrower upon the
request of such Lender, agrees to repay as soon as reasonably
practicable the amount paid over to such Borrower (plus applicable
interest imposed by the relevant Governmental Authority) to such
Lender in the event such Lender is required to repay such refund to
such Governmental Authority.
(h) Each
Lender that is a "United States person" within the meaning of
Section 7701(a)(30) of the Code shall deliver to the US
Borrower and the Administrative Agent, on or before the date such
Lender becomes a party to this Agreement, two copies of Internal
Revenue Service Form W-9 or any successor or other form prescribed
by the Internal Revenue Service. If any such Lender fails to
deliver Internal Revenue Service Form W-9 (or any subsequent
versions thereof or successors thereto) as required herein, then
the US Borrower may withhold from any payment to such Lender the
applicable backup withholding tax imposed by the Code and remit
such amount to the relevant tax authority or other Governmental
Authority in accordance with the applicable Requirements of Law,
without reduction, and such Lender shall not be entitled to any
additional amounts under this Section 2.21 with respect to
Non-Excluded Taxes imposed by the United States by reason of such
failure.
2.22
Indemnity . Each Borrower agrees to indemnify each Lender
for, and to hold each Lender harmless from, any loss or expense
that such Lender may sustain or incur as a consequence of
(a) default by any Borrower in making a borrowing of,
conversion into or continuation of Eurodollar Loans after the
relevant Borrower has given a notice requesting the same in
accordance with the provisions of this Agreement, (b) default
by any Borrower in making any prepayment after such Borrower has
given a notice thereof in accordance with the provisions of this
Agreement or (c) the making of a prepayment or conversion of
Eurodollar Loans on a day that is not the last day of an Interest
Period with respect thereto. Such indemnification may include an
amount equal to the excess, if any, of (i) the amount of
interest that would have accrued on the amount so prepaid, or not
so borrowed, converted or continued, for the period from the date
of such prepayment or of such failure to borrow, convert or
continue to the last day of such Interest Period (or, in the case
of a failure to borrow, convert or continue, the Interest Period
that would have commenced on the date of such failure) in each case
at the applicable rate of interest for such Loans provided for
herein (excluding, however, the Applicable Margin included therein,
if any) over (ii) the amount of interest (as reasonably
determined by such Lender) that would have accrued to such Lender
on such amount by placing such amount on deposit for a comparable
period with leading banks in the interbank Eurodollar market. A
certificate as to any amounts payable pursuant to this
Section submitted to the relevant Borrower by any Lender shall
be conclusive in the absence of manifest error. This covenant shall
survive the termination of this Agreement and the payment of the
Loans and all other amounts payable hereunder.
2.23
Illegality . Notwithstanding any other provision herein, if
the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof shall make it unlawful for
any Lender to make or maintain Eurodollar Loans as contemplated by
this Agreement, (a) the commitment of such Lender hereunder to
make Eurodollar Loans, continue Eurodollar Loans as such and
convert Base Rate Loans (or, with respect to Loans denominated in
Canadian Dollars, Canadian Prime Rate Loans) to Eurodollar Loans
shall forthwith be canceled and (b) such Lender’s Loans
then outstanding as Eurodollar Loans, if any, shall be converted
automatically to Base Rate Loans on the respective last days of the
then current Interest Periods
56
with respect to such Loans or within such earlier period as
required by law. If any such conversion of a Eurodollar Loan occurs
on a day which is not the last day of the then current Interest
Period with respect thereto, the relevant Borrower shall pay to
such Lender such amounts, if any, as may be required pursuant to
Section 2.22.
2.24
Change of Lending Office . Each Lender agrees that, upon the
occurrence of any event giving rise to the operation of
Section 2.20 or 2.21 with respect to such Lender, it will, if
requested by the relevant Borrower, use reasonable efforts (subject
to overall policy considerations of such Lender) to designate
another lending office for any Loans affected by such event with
the object of avoiding the consequences of such event;
provided , that such designation is made on terms that, in
the sole judgment of such Lender, cause such Lender and its lending
office(s) to suffer no economic, legal or regulatory disadvantage,
and provided , further , that nothing in this
Section shall affect or postpone any of the obligations of any
Borrower or the rights of any Lender pursuant to Section 2.20
or 2.21.
2.25
Replacement of Lenders under Certain Circumstances . Either
Borrower shall be permitted to replace any Lender that
(a) requests reimbursement for amounts owing pursuant to
Section 2.20 or 2.21 or gives a notice of illegality pursuant
to Section 2.23 or (b) defaults in its obligation to make
Loans hereunder, with a replacement financial institution;
provided that (i) such replacement does not conflict
with any Requirement of Law, (ii) no Event of Default shall
exist and be continuing at the time of such replacement,
(iii) prior to any such replacement, such Lender shall have
taken no action under Section 2.24 so as to eliminate the
continued need for payment of amounts owing pursuant to
Section 2.20 or 2.21 or to eliminate the illegality referred
to in such notice of illegality given pursuant to
Section 2.23, (iv) the replacement financial institution
shall purchase, at par, all Loans and other amounts owing to such
replaced Lender on or prior to the date of replacement,
(v) the Borrowers shall be liable to such replaced Lender
under Section 2.22 (as though Section 2.22 were
applicable) if any Eurodollar Loan owing to such replaced Lender
shall be purchased other than on the last day of the Interest
Period relating thereto, (vi) the replacement financial
institution, if not already a Lender, shall be reasonably
satisfactory to the Administrative Agent or the Canadian Agent, as
applicable, (vii) the replaced Lender shall be obligated to
make such replacement in accordance with the provisions of
Section 10.6 ( provided that the Borrowers shall be
obligated to pay the registration and processing fee referred to
therein), (viii) the Borrowers shall pay all additional
amounts (if any) required pursuant to Section 2.20 or 2.21, as
the case may be, in respect of any period prior to the date on
which such replacement shall be consummated, and (ix) any such
replacement shall not be deemed to be a waiver of any rights that
the Borrowers, the Administrative Agent, the Canadian Agent or any
other Lender shall have against the replaced Lender.
2.26
Incremental Term Loan Facilities . (a) The US Borrower
may at any time or from time to time after the Closing Date, by
notice to the Administrative Agent (whereupon the Administrative
Agent shall promptly deliver a copy to each of the Lenders),
request one or more additional tranches of term loans (the "
Incremental US Term Loans ") and (b) the Canadian
Borrower may at any time or from time to time after the Closing
Date, by notice to the Administrative Agent (whereupon the
Administrative Agent shall promptly deliver a copy to each of the
Lenders), request one or more additional tranches of term loans
(the " Incremental Canadian Term Loans ", and, together with
the Incremental US Term Loans, the " Incremental
57
Term Loans "); provided that (x) at the time
of any such request, upon the effectiveness of any Incremental
Amendment referred to below and pro forma for the incurrence
thereof on the date such Incremental Term Loan is extended, no
Default or Event of Default shall have occurred and be continuing,
(y) the US Borrower’s Consolidated Senior Secured
Leverage Ratio shall be less than 2.50 to 1.00 determined on a pro
forma basis as of the date such Incremental Term Loan is extended
and as of the last day of the most recent fiscal quarter for which
financial statements are available, as if such Incremental Term
Loans had been outstanding on the last day of such fiscal quarter,
and (z) such Incremental Term Loans shall not be used to repay
or refinance the Senior Subordinated Notes or any refinancing
thereof pursuant to Section 7.2(h). Each tranche of
Incremental Term Loans shall be in an aggregate principal amount
that is not less than $10,000,000 (provided that such amount may be
less than $10,000,000 if such amount represents all remaining
availability under the limit set forth in the next sentence.
Notwithstanding anything to the contrary herein, the aggregate
amount of the Incremental Term Loans, shall not exceed the Dollar
Equivalent of $50,000,000. Each tranche of Incremental Term Loans
(a) shall rank pari passu in right of payment and of security
with any existing Term Loans, (b) shall not mature earlier
than the final maturity date of any existing Term Loans,
(c) except as set forth above, shall be treated substantially
the same as the existing Term Loans (in each case, including with
respect to mandatory and voluntary prepayments) and (d) shall
have a Weighted Average Life to Maturity of no less than, with
respect to Incremental US Term Loans, the Weighted Average Life to
Maturity as then in effect for the existing US Term Loans, and with
respect to the Incremental Canadian Term Loans, the Weighted
Average Life to Maturity of the existing Canadian Term Loans;
provided , further , that (i) except as provided
in preceding clauses (a), (b), (c) and (d), the terms and
conditions applicable to Incremental Term Loans may be materially
different from those of the Term Loans to the extent such
differences are reasonably acceptable to the Administrative Agent
and (ii) the interest rates and amortization schedule
applicable to the Incremental Term Loans shall be determined by the
applicable Borrower and the lenders thereof; provided that,
notwithstanding the foregoing, the yield applicable to the
Incremental Canadian Term Loans or the Incremental US Term Loans
(after giving effect to all upfront or similar fees or original
issue discount payable with respect to the Incremental Canadian
Term Loans or Incremental US Term Loans, as applicable) shall not
be greater than the interest rate payable with respect to the
Canadian Term Loans or US Term Loans, as applicable, plus 0.25% per
annum, unless the interest rate with respect to the existing
Canadian Term Loans or existing US Term Loans, as applicable, is
increased so as to equal the yield applicable to the Incremental
Canadian Term Loans or Incremental US Term Loans (after giving
effect to all upfront or similar fees or original issue discount
payable with respect to the Incremental Canadian Term Loans or
Incremental US Term Loans, as applicable ).
(b) Each
series of Incremental Term Loans borrowed pursuant to this Section
shall be a separate Incremental Term Loan Facility. Each notice
from a Borrower pursuant to this Section shall set forth the
requested amount and the proposed terms of the relevant Incremental
Term Loans, including whether such Incremental Term Loan is a US
Term Loan or a Canadian Term Loan. Incremental Term Loans may be
made by any existing Lender or by any other bank or other financial
institution (any such other bank or other financial institution
being called an " Additional Lender "). Incremental Term
Loans shall be effected and each Additional Lender shall become a
Lender hereunder pursuant to an amendment or other document,
including, without limitation, a joinder agreement (an "
Incremental Amendment ") to this Agreement and, as
appropriate, the other Loan Documents, executed by the relevant
Borrower,
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each Lender agreeing to provide such Commitment, if any, each
Additional Lender, if any, and the Administrative Agent. Each
Incremental Amendment may, without the consent of any other
Lenders, effect such amendments to this Agreement and the other
Loan Documents as may be necessary or appropriate, in the
reasonable opinion of the Administrative Agent and the applicable
Borrower, to effect the provisions of this Section. In addition,
the applicable Borrower shall deliver or cause to be delivered any
legal opinions or other documents reasonably requested by the
Administrative Agent in connection with any such Incremental
Amendment (including opinions that the obligations of the Loan
Parties with respect to an Incremental Term Loan are secured by the
Collateral and the perfection and priority of the Administrative
Agent’s Lien in such Collateral has not been affected by an
Incremental Term Loan). The effectiveness of any Incremental
Amendment shall be subject to the satisfaction on the date thereof
of each of the conditions set forth in Section 5.2 (it being
understood that all references to "the date of such extension of
credit" or similar language in such Section 5.2 shall be
deemed to refer to the effective date of such Incremental Amendment
and the date of extension of such Incremental Term Loan) and such
other conditions as the parties thereto shall agree. No Lender
shall be obligated to provide any Incremental Term Loans, unless it
so agrees.
(c) This
Section 2.26 shall supersede any provisions in
Section 10.1 to the contrary. SECTION 3. LETTERS OF CREDIT
3.1
L/C Commitment . (a) Prior to the Closing Date, the
Existing Issuing Lender has issued the Existing Letters of Credit
which, from and after the Closing Date, shall constitute Letter of
Credit hereunder. Subject to the terms and conditions hereof, each
Issuing Lender, in reliance on the agreements of the other
Revolving Credit Lenders set forth in Section 3.4(a), agrees
to issue letters of credit denominated in Dollars or Canadian
Dollars (with respect to the Canadian Borrower) or Dollars (with
respect to the US Borrower) (the letters of credit issued on and
after the Closing Date pursuant to this Section 3, together
with the Existing Letters of Credit, collectively, the " Letters
of Credit ") for the account of the applicable Borrower or any
other Group Member on any Business Day during the Revolving Credit
Commitment Period in such form as may be approved from time to time
by such Issuing Lender; provided , that no Issuing Lender
shall have any obligation to issue any Letter of Credit if, after
giving effect to such issuance, (i) the L/C Obligations would
exceed the L/C Commitment or (ii) the aggregate amount of the
Available Revolving Credit Commitments with respect to the
applicable Borrower would be less than zero. Each Letter of Credit
shall expire no later than the earlier of (i) the first
anniversary of its date of issuance and (ii) the date which is
five Business Days prior to the Revolving Credit Termination Date;
provided that any Letter of Credit with a one-year term may
provide for the renewal thereof for additional one-year periods
(which shall in no event extend beyond the date referred to in
clause (ii) above). In addition, each Issuing Lender agrees to
issue Letters of Credit with an expiration date later than the date
specified in the two immediately preceding sentences (but no later
than one year from the date of issuance thereof) in reliance upon
the Borrowers’ agreement to cash collateralize such Letters
of Credit by the date which is 30 days prior to the Revolving
Credit Termination Date in the amount that would be required by
such Issuing Lender pursuant to Section 10.15(c) to deem
such Letter of Credit not outstanding, and the Borrowers so agree
to cash collateralize such Letters of Credit by such date, it being
understood that until the Loans, the Reimbursement Obligations and
the other
59
Obligations under the Loan Documents are paid in full, the
Commitments have been terminated and no other Letters of Credit
shall be outstanding, such cash collateral shall be subject to the
rights of each other Lender under Section 10.7.
Notwithstanding the foregoing, if an Issuing Lender has not
consented to a Revolving Credit Lender becoming a party hereto by
Lender Addendum on the Closing Date, such Issuing Lender shall not
be required to issue any Letter of Credit hereunder unless such
Issuing Lender has entered into arrangements satisfactory to it and
the applicable Borrower with respect to such Revolving Credit
Lender’s participation in such Letter of Credit, including by
cash collateralizing an amount equal to such Revolving Credit
Lender’s share (as an L/C Participant) of the L/C Obligations
outstanding.
(b) If
any Borrower so requests in any Application, the relevant Issuing
Lender may, in its sole and absolute discretion, agree to issue a
Letter of Credit that permits the automatic reinstatement of all or
a portion of the stated amount thereof after any drawing thereunder
(each, an " Auto-Reinstatement Letter of Credit "). Unless
otherwise directed by the relevant Issuing Lender, the relevant
Borrower shall not be required to make a specific request to the
relevant Issuing Lender to permit such reinstatement. Once an
Auto-Reinstatement Letter of Credit has been issued, except as
provided in the following sentence, the Revolving Credit Lenders
shall be deemed to have authorized (but may not require) the
relevant Issuing Lender to reinstate all or a portion of the stated
amount thereof in accordance with the provisions of such Letter of
Credit. Notwithstanding the foregoing, if such Auto-Reinstatement
Letter of Credit permits the relevant Issuing Lender to decline to
reinstate all or any portion of the stated amount thereof after a
drawing thereunder by giving notice of such non-reinstatement
within a specified number of days after such drawing (the "
Non-Reinstatement Deadline "), such Issuing Lender shall not
permit such reinstatement if it has received a notice (which may be
by telephone or in writing) on or before the day that is seven
Business Days before the Non-Reinstatement Deadline (A) from
the Administrative Agent that the Majority Revolving Credit
Facility Lenders have elected not to permit such reinstatement or
(B) from the Administrative Agent, any Lender or any Borrower
that one or more of the applicable conditions specified in
Section 5.2 is not then satisfied (treating such reinstatement
as an extension of credit under this Agreement for purposes of this
clause) and, in each case, directing the relevant Issuing Lender
not to permit such reinstatement.
(c) No
Issuing Lender shall at any time be obligated to issue any Letter
of Credit hereunder if such issuance would conflict with, or cause
such Issuing Lender or any L/C Participant to exceed any limits
imposed by, any applicable Requirement of Law.
3.2
Procedure for Issuance of Letter of Credit . Each Borrower
may from time to time request that an Issuing Lender issue a Letter
of Credit by delivering to such Issuing Lender, with a copy to the
Administrative Agent and, if applicable, the Canadian Agent, at
their addresses for notices specified herein an Application
therefor, completed to the satisfaction of such Issuing Lender, and
such other certificates, documents and other papers and information
as such Issuing Lender may request. Upon receipt of any such
Application, an Issuing Lender will process such Application and
the certificates, documents and other papers and information
delivered to it in connection therewith in accordance with its
customary procedures and shall promptly issue the Letter of Credit
requested thereby by issuing the original of such Letter of Credit
to the beneficiary thereof or as otherwise may be agreed to by such
Issuing Lender and the applicable Borrower (but in no event shall
any Issuing Lender be required to issue any Letter of
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Credit earlier than three Business Days after its receipt of the
Application therefor and all such other certificates, documents and
other papers and information relating thereto). Promptly after
issuance by an Issuing Lender of a Letter of Credit, such Issuing
Lender shall furnish a copy of such Letter of Credit to the
applicable Borrower and the Administrative Agent or the Canadian
Agent, as applicable. Each Issuing Lender shall promptly give
notice to the Administrative Agent and, if applicable, the Canadian
Agent, of the issuance of each Letter of Credit issued by such
Issuing Lender (including the amount thereof).
3.3
Fees and Other Charges . (a) The Borrowers will pay a
fee on the aggregate drawable amount of all outstanding Letters of
Credit at a per annum rate equal to the Applicable Margin then in
effect with respect to Eurodollar Loans under the Revolving Credit
Facilities shared ratably among the Revolving Credit Lenders in
accordance with their respective applicable Revolving Credit
Percentages and each such fee is payable quarterly in arrears on
each L/C Fee Payment Date after the issuance date of such Letter of
Credit. Such fees shall be payable in the same currency as the
Letter of Credit to which such fees relate. In addition, the
Borrowers shall pay to the relevant Issuing Lender for its own
account a fronting fee on the aggregate drawable amount of all
outstanding Letters of Credit issued by it of 1/4 of 1% per annum,
payable quarterly in arrears on each L/C Fee Payment Date after the
issuance of date of such Letter of Credit.
(b) In
addition to the foregoing fees, the Borrowers shall pay or
reimburse each Issuing Lender for such normal and customary costs
and expenses as are incurred or charged by such Issuing Lender in
issuing, negotiating, effecting payment under, amending or
otherwise administering any Letter of Credit.
3.4
L/C Participations . (a) Each Issuing Lender
irrevocably agrees to grant and hereby grants to each L/C
Participant, and, to induce each Issuing Lender to issue Letters of
Credit hereunder to the Canadian Borrower, each L/C Participant
irrevocably agrees to accept and purchase and hereby accepts and
purchases from each Issuing Lender, on the terms and conditions
hereinafter stated, for such L/C Participant’s own account
and risk, an undivided interest equal to (i) with respect to
Revolving Credit US/CA Lenders, such L/C Participant’s
Revolving Credit US/CA Percentage of the Revolving Credit US/CA
Facility Percentage of each Issuing Lender’s obligations and
rights under each Letter of Credit issued by such Issuing Lender
hereunder for the Canadian Borrower and the amount of each draft
paid by such Issuing Lender thereunder and (ii) with respect
to Revolving Credit CA Lenders, such L/C Participant’s
Revolving Credit CA Percentage of the Revolving Credit CA Facility
Percentage of each Issuing Lender’s obligations and rights
under each letter of Credit issued by such Issuing Lender hereunder
for the Canadian Borrower and the amount of each draft paid by such
Issuing Lender hereunder. Each Issuing Lender irrevocably agrees to
grant and hereby grants to each L/C Participant that is a Revolving
Credit US/CA Lender, and, to induce each Issuing Lender to issue
Letters of Credit to the US Borrower hereunder, each L/C
Participant that is a Revolving Credit US/CA Lender irrevocably
agrees to accept and purchase and hereby accepts and purchases from
each Issuing Lender, on the terms and conditions hereinafter
stated, for such L/C Participant’s own account and risk, an
undivided interest equal to such L/C Participant’s Revolving
Credit US/CA Percentage of each Issuing Lender’s obligations
and rights under each Letter of Credit issued by such Issuing
Lender hereunder for the US Borrower and the amount of each draft
paid by such Issuing Lender thereunder. Each L/C Participant that
is a Revolving Credit US/CA
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Lender unconditionally and irrevocably agrees with each Issuing
Lender that, if a draft is paid under any Letter of Credit issued
by such Issuing Lender with respect to the US Borrower and for
which such Issuing Lender is not reimbursed in full by the US
Borrower in accordance with the terms of this Agreement, such L/C
Participant shall pay to such Issuing Lender, regardless of the
occurrence or continuance of a Default or Event of Default or the
failure to satisfy any of the other conditions specified in
Section 5, upon demand at the Administrative Agent’s
address for notices specified herein (and thereafter, the
Administrative Agent shall promptly pay to the Issuing Lender) an
amount in Dollars or Canadian Dollars, as applicable, equal to such
L/C Participant’s Revolving Credit US/CA Percentage of the
amount of such draft, or any part thereof, that is not so
reimbursed. Each L/C Participant unconditionally and irrevocably
agrees with each Issuing Lender that, if a draft is paid under any
Letter of Credit issued by such Issuing Lender with respect to the
Canadian Borrower and for which such Issuing Lender is not
reimbursed in full by the Canadian Borrower in accordance with the
terms of this Agreement, such L/C Participant shall pay to such
Issuing Lender, regardless of the occurrence or continuance of a
Default or Event of Default or the failure to satisfy any of the
other conditions specified in Section 5, upon demand at the
Canadian Agent’s address for notices specified herein (and
thereafter, the Canadian Agent shall promptly pay to the Issuing
Lender) an amount in Dollars or Canadian Dollars, as applicable,
equal to (i) with respect to any such L/C Participant which is
a Revolving Credit US/CA Lender, such L/C Participant’s
Revolving Credit US/CA Percentage of the Revolving Credit US/CA
Facility Percentage of the amount of such draft, or any part
thereof, that is not so reimbursed and (ii) with respect to any
such L/C Participant which is a Revolving Credit CA Lender, such
L/C Participant’s Revolving Credit CA Percentage of the
Revolving Credit CA Facility Percentage of the amount of such
draft, or any part thereof, that is not so reimbursed.
(b) If
any amount required to be paid by any L/C Participant to an Issuing
Lender pursuant to Section 3.4(a) in respect of any
unreimbursed portion of any payment made by such Issuing Lender
under any Letter of Credit is paid to such Issuing Lender within
three Business Days after the date such payment is due, the Issuing
Lender shall so notify the Administrative Agent or the Canadian
Agent, as applicable, who shall promptly notify the applicable L/C
Participants and each such L/C Participant shall pay to the
Administrative Agent or the Canadian Agent, as applicable, for the
account of the Issuing Lender on demand (and thereafter the
Administrative Agent or the Canadian Agent, as applicable, shall
promptly pay to the Issuing Lender) an amount equal to the product
of (i) such amount, times (ii) the daily average Federal
Funds Effective Rate during the period from and including the date
such payment is required to the date on which such payment is
immediately available to such Issuing Lender, times (iii) a
fraction the numerator of which is the number of days that elapse
during such period and the denominator of which is 360. If any such
amount required to be paid by any L/C Participant pursuant to
Section 3.4(a) is not made available to the
Administrative Agent or the Canadian Agent, as applicable, for the
account of such Issuing Lender, by such L/C Participant within
three Business Days after the date such payment is due, the
Administrative Agent or the Canadian Agent, as applicable, on
behalf of such Issuing Lender shall be entitled to recover from
such L/C Participant, on demand, such amount with interest thereon
calculated from such due date at the rate per annum applicable to
Base Rate Loans. A certificate of the Administrative Agent or the
Canadian Agent, as applicable, on behalf of such Issuing Lender
submitted to any L/C Participant with respect to any such amounts
owing under this Section shall be conclusive in the absence of
manifest error.
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(c) Whenever,
at any time after any Issuing Lender has made payment under any
Letter of Credit and has received from the Administrative Agent or
the Canadian Agent, as applicable, any L/C Participant’s
pro rata share of such payment in accordance with
Section 3.4(a), such Issuing Lender receives any payment
related to such Letter of Credit (whether directly from the US
Borrower, Canadian Borrower or otherwise, including proceeds of
collateral applied thereto by such Issuing Lender), or any payment
of interest on account thereof, such Issuing Lender will distribute
to the Administrative Agent or the Canadian Agent, as applicable,
for the account of such L/C Participant (and thereafter, the
Administrative Agent or the Canadian Agent, as applicable, will
promptly distribute to such L/C Participant) its pro
rata share thereof; provided , however , that
in the event that any such payment received by such Issuing Lender
shall be required to be returned by such Issuing Lender, such L/C
Participant shall return to the Administrative Agent or the
Canadian Agent, as applicable, for the account of such Issuing
Lender the portion thereof previously distributed by such Issuing
Lender to it.
3.5
Reimbursement Obligation of the Borrowers . Each Borrower
agrees to reimburse each Issuing Lender, on each date on which such
Issuing Lender notifies the applicable Borrower of the date and
amount of a draft presented under any Letter of Credit and paid by
such Issuing Lender, for the amount of (a) such draft so paid
and (b) any taxes, fees, charges or other costs or expenses
incurred by such Issuing Lender in connection with such payment
(the amounts described in the foregoing clauses (a) and
(b) in respect of any drawing, collectively, the " Payment
Amount "). Each such payment shall be made to such Issuing
Lender at its address for notices specified herein in lawful money
of the United States of America or Canada, as applicable, and in
immediately available funds. Interest shall be payable on the
Payment Amount from the date of the applicable drawing until
payment in full at the rate set forth in (i) until the second
Business Day following the date of the applicable drawing,
Section 2.16(b) and (ii) thereafter,
Section 2.16(e). Each drawing under any Letter of Credit shall
(unless an event of the type described in clause (i) or
(ii) of Section 8(f) shall have occurred and be
continuing with respect to any Borrower, in which case the
procedures specified in Section 3.4 for funding by L/C
Participants shall apply) constitute a request by the applicable
Borrower to the Administrative Agent or the Canadian Agent, as
applicable, for a borrowing pursuant to Section 2.5(a) of Base
Rate Loans or Canadian Prime Rate Loans, as applicable (or, at the
option of the Administrative Agent or the Canadian Agent, as
applicable, and the relevant Swing Line Lender in their sole
discretion, a borrowing pursuant to Section 2.7(a) of Swing
Line Loans) in the amount of such drawing. The Borrowing Date with
respect to such borrowing shall be the first date on which a
borrowing of Revolving Credit Loans (or, if applicable, Swing Line
Loans) could be made, pursuant to Section 2.5(a) (or, if
applicable, Section 2.7(a)), if the Administrative Agent and,
if applicable, the Canadian Agent, had received a notice of such
borrowing at the time the Administrative Agent and, if applicable,
the Canadian Agent, receive notice from the relevant Issuing Lender
of such drawing under such Letter of Credit. All payments due from
the Borrowers hereunder in respect of Letters of Credit (and
Reimbursement Obligations in connection therewith) shall be made in
Dollars or Canadian Dollars, as applicable.
3.6
Obligations Absolute . Each Borrower’s obligations
under this Section 3 shall be absolute and unconditional under
any and all circumstances and irrespective of any setoff,
counterclaim or defense to payment that such Borrower may have or
have had against any Issuing Lender, any beneficiary of a Letter of
Credit or any other Person. Each Borrower also agrees with each
Issuing Lender that such Issuing Lender shall not be responsible
for, and such
63
Borrower’s Reimbursement Obligations under
Section 3.5 shall not be affected by, among other things, the
validity or genuineness of documents or of any endorsements
thereon, even though such documents shall in fact prove to be
invalid, fraudulent or forged, or any dispute between or among such
Borrower and any beneficiary of any Letter of Credit or any other
party to which such Letter of Credit may be transferred or any
claims whatsoever of such Borrower against any beneficiary of such
Letter of Credit or any such transferee. No Issuing Lender shall be
liable for any error, omission, interruption or delay in
transmission, dispatch or delivery of any message or advice,
however transmitted, in connection with any Letter of Credit,
except for errors or omissions found by a court of competent
jurisdiction to have resulted directly from the gross negligence or
willful misconduct of such Issuing Lender. Each Borrower agrees
that any action taken or omitted by an Issuing Lender under or in
connection with any Letter of Credit issued by it or the related
drafts or documents, if done in the absence of gross negligence or
willful misconduct and, with respect to Letters of Credit issued on
behalf of the U.S. Borrower and denominated in Dollars, in
accordance with the standards of care specified in the UCC of the
State of New York, shall be binding on the U.S. Borrower and shall
not result in any liability of such Issuing Lender to the U.S.
Borrower.
3.7
Letter of Credit Payments . If any draft shall be presented
for payment under any Letter of Credit, the relevant Issuing Lender
shall promptly notify the Administrative Agent, and the Canadian
Agent if such Letter of Credit is denominated in Canadian Dollars,
and the relevant Borrower of the date and the amount thereof. The
responsibility of the relevant Issuing Lender to the relevant
Borrower in connection with any draft presented for payment under
any Letter of Credit, in addition to any payment obligation
expressly provided for in such Letter of Credit issued by such
Issuing Lender, shall be limited to determining that the documents
(including each draft) delivered under such Letter of Credit in
connection with such presentment appear on their face to be in
conformity with such Letter of Credit.
3.8
Applications . To the extent that any provision of any
Application related to any Letter of Credit is inconsistent with
the provisions of this Section 3, the provisions of this
Section 3 shall apply. SECTION 4. REPRESENTATIONS AND
WARRANTIES
To
induce the Arrangers, the Agents and the Lenders to enter into this
Agreement and to make the Loans and issue or participate in the
Letters of Credit and the Borrowers hereby jointly and severally
represent and warrant to each Arranger, each Agent and each Lender
that:
4.1
Financial Condition .
(a) The
unaudited pro forma consolidated balance sheet of the
US Borrower and its consolidated Subsidiaries as at June 30,
2008 (including the notes thereto) (the " Pro Forma Balance
Sheet "), copies of which have heretofore been furnished to
each Lender, has been prepared giving effect (as if such events had
occurred on such date) to (i) the making of the Loans to be
made on the Closing Date and the use of proceeds thereof and
(ii) the payment of fees and expenses in connection with the
foregoing. The Pro Forma Balance Sheet has been
64
prepared based on the best information available to the US
Borrower as of the date of delivery thereof, and presents fairly on
a pro forma basis the estimated financial position of
the US Borrower and its consolidated Subsidiaries as at
June 30, 2008, assuming that the events specified in the
preceding sentence had actually occurred at such date.
(b) The
audited consolidated balance sheets of the US Borrower and its
Subsidiaries as at December 31, 2005, December 31, 2006
and December 31, 2007, and the related consolidated statements
of income and of cash flows for the fiscal years ended on such
dates, reported on by and accompanied by an unqualified report from
BDO Siedman LLP, present fairly the consolidated financial
condition of the US Borrower and its Subsidiaries as at such date,
and the consolidated results of its operations and its consolidated
cash flows for the respective fiscal years then ended. All such
financial statements of the US Borrower and its Subsidiaries,
including the related schedules and notes thereto, have been
prepared in accordance with GAAP applied consistently throughout
the periods involved (except as approved by the aforementioned firm
of accountants and disclosed therein). As of the Closing Date, no
Loan Party has any material Guarantee Obligations, contingent
liabilities and liabilities for taxes, or any long-term leases or
unusual forward or long-term commitments, including, without
limitation, any interest rate or foreign currency swap or exchange
transaction or other obligation in respect of derivatives, that are
not reflected in the most recent financial statements referred to
in this paragraph. During the period from December 31, 2007,
to and including the Closing Date, there has been no Disposition by
any Loan Party or its Subsidiaries of any material part of its
business or Property.
4.2
No Change . Since December 31, 2007, there has been no
development or event that has had or could reasonably be expected
to have a Material Adverse Effect.
4.3
Corporate Existence; Compliance with Law . Each Group Member
(a) is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization,
(b) has the corporate or other power and authority, and the
legal right, to own and operate its Property, to lease the Property
it operates as lessee and to conduct the business in which it is
currently engaged, (c) is duly qualified as a foreign
corporation, partnership or limited liability company and in good
standing under the laws of each jurisdiction where its ownership,
lease or operation of Property or the conduct of its business
requires such qualification and (d) is in compliance with all
Requirements of Law except with respect to clause (c) and (d),
to the extent that the failure to comply therewith could not, in
the aggregate, reasonably be expected to have a Material Adverse
Effect.
4.4
Corporate Power; Authorization; Enforceable Obligations .
Each Loan Party has the corporate or other power and authority, and
the legal right, to make, deliver and perform the Loan Documents to
which it is a party and, in the case of the Borrowers, to borrow
hereunder. Each Loan Party has taken all necessary corporate or
other organizational action to authorize the execution, delivery
and performance of the Loan Documents to which it is a party and,
in the case of the Borrowers, to authorize the borrowings on the
terms and conditions of this Agreement. No consent or authorization
of, filing with, notice to or other act by or in respect of, any
Governmental Authority or material consent or authorization of,
filing with, notice to or other act by or in respect of any other
Person is required in connection with the borrowings hereunder or
the execution, delivery, performance, validity or enforceability of
this Agreement
65
or any of the other Loan Documents except (i) consents,
authorizations, filings and notices described in
Schedule 4.4 , which consents, authorizations, filings
and notices have been obtained or made (in each case, to the extent
the related assets have been acquired by a Group Member) and are in
full force and effect and (ii) the filings referred to in
Section 4.19. Each Loan Document has been duly executed and
delivered on behalf of each Loan Party that is a party thereto.
This Agreement constitutes, and each other Loan Document upon
execution will constitute, a legal, valid and binding obligation of
each Loan Party that is a party thereto, enforceable against each
such Loan Party in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and by general
equitable principles (whether enforcement is sought by proceedings
in equity or at law).
4.5
No Legal Bar . (a) The execution, delivery and
performance of this Agreement and the other Loan Documents, the
issuance of Letters of Credit, the borrowings hereunder and the use
of the proceeds thereof will not violate any Requirement of Law or
any Contractual Obligation of any Group Member.
(b)
The execution, delivery and performance of this Agreement, the
other Loan Documentation, the issuance of the Letters of Credit,
the borrowings hereunder and the use of proceeds thereof will not
result in, or require, the creation or imposition of any Lien on
any of their respective properties or revenues pursuant to any
Requirement of Law or any such Contractual Obligation (other than
the Liens created by the Security Documents). No Requirement of Law
or Contractual Obligation applicable to any Group Member could
reasonably be expected to have a Material Adverse Effect.
4.6
No Material Litigation . No litigation, investigation or
proceeding of or before any arbitrator or Governmental Authority is
pending or, to the knowledge of either Borrower, threatened by or
against any Group Member or against any of their properties or
revenues (a) with respect to any of the Loan Documents or any
of the transactions contemplated hereby or thereby, or
(b) except as set forth on Schedule 4.6 , that
could reasonably be expected to have a Material Adverse Effect.
4.7
No Default . No Group Member is in default under or with
respect to any of its Contractual Obligations in any respect that
could reasonably be expected to have a Material Adverse Effect. No
Default or Event of Default has occurred and is continuing.
4.8
Ownership of Property; Liens . Each Group Member is the sole
owner of, legally and beneficially, and has good marketable and
insurable title in fee simple to, or a valid leasehold interest in,
all its real property, and good title to, or a valid leasehold
interest in, all its other material Property, and none of such
Property is subject to any claims, liabilities, obligations,
charges or restrictions of any kind, nature or description or to
any Lien except for Permitted Liens. None of the Pledged Stock is
subject to any Lien except for Permitted Liens.
4.9
Intellectual Property . Except as could not reasonably be
expected to have a Material Adverse Effect (a) each Group
Member owns, or is licensed to use, all Intellectual Property
necessary for the conduct of its business as currently conducted,
(b) no claim has been asserted and is pending by any Person
challenging or questioning the use of any Intellectual
66
Property or the validity or effectiveness of any Intellectual
Property, nor does either Borrower know of any valid basis for any
such claim and (c) the use of Intellectual Property by the
Group Members does not infringe on the rights of any Person in any
material respect.
4.10
Taxes . Except as set forth on Schedule 4.10 ,
each Group Member has filed or caused to be filed all Federal,
material state and provincial and other material tax returns that
are required to be filed and has paid all material taxes or on any
material assessments made against it or any of its Property and all
other material taxes, fees or other charges imposed on it or any of
its Property by any Governmental Authority (other than the amount
or validity of which is currently being contested in good faith by
appropriate proceedings and with respect to which reserves in
conformity with GAAP have been provided on the books of such Group
Member) and no tax Lien has been filed (other than a Permitted
Lien), and, to the knowledge of either Borrower, no material claim
is being asserted, with respect to any such tax, fee or other
charge.
4.11
Federal Regulations . No part of the proceeds of any Loans
will be used for "purchasing" or "carrying" any "margin stock"
within the respective meanings of each of the quoted terms under
Regulation U as now and from time to time hereafter in effect
or for any purpose that violates the provisions of the Regulations
of the Board. If requested by any Lender or the Administrative
Agent, the relevant Borrower will furnish to the Administrative
Agent and each Lender a statement to the foregoing effect in
conformity with the requirements of FR Form G-3 or FR Form U-1
referred to in Regulation U.
4.12
Labor Matters . There are no strikes, stoppages or slowdowns
or other labor disputes against any Group Member pending or, to the
knowledge of either Borrower, threatened that (individually or in
the aggregate) could reasonably be expected to have a Material
Adverse Effect. Hours worked by and payment made to employees of
any Group Member have not been in violation of the Fair Labor
Standards Act or any other applicable Requirement of Law dealing
with such matters that (individually or in the aggregate) could
reasonably be expected to have a Material Adverse Effect. All
payments due from any Group Member on account of employee health
and welfare insurance that (individually or in the aggregate) could
reasonably be expected to have a Material Adverse Effect if not
paid have been paid or accrued as a liability on the books of the
relevant Group Member.
4.13
Pensions and Benefit Plans . (a) ERISA . Except as
could not reasonably be expected to result in a Material Adverse
Effect, (i) neither a Reportable Event nor an "accumulated
funding deficiency" (within the meaning of Section 412 of the
Code or Section 302 of ERISA) has occurred during the
five-year period prior to the date on which this representation is
made or deemed made with respect to any Single Employer Plan,
(ii) each Plan (other than a Multiemployer Plan) has complied
in all material respects with the applicable provisions of ERISA
and the Code, (iii) no termination of a Single Employer Plan
has occurred, (iv) no Lien in favor of a Single Employer Plan
or in favor of the PBGC with respect to a Single Employer Plan has
arisen during the five-year period prior to the date on which this
representation is made or deemed made, (v) the present value
of all accrued benefits under each Single Employer Plan (based on
those assumptions used to fund such plans) did not, as of the last
annual valuation date prior to the date on which this
representation is made or deemed made, exceed the value of the
assets of such plan allocable to such accrued benefits by a
material
67
amount, (vi) neither the US Borrower nor any Commonly
Controlled Entity has had a complete or partial withdrawal from any
Multiemployer Plan, and (vii) no Multiemployer Plan is in
Reorganization or Insolvent.
(b)
Canadian Pension Plans and Canadian Benefit Plans. Each
Borrower will cause to be delivered to the Administrative Agent,
promptly upon the Administrative Agent’s request, a copy of
each Canadian Benefit Plan and Canadian Pension Plan (or, where any
such Canadian Benefit Plan or Canadian Pension Plan is not in
writing, a complete description of all material terms thereof) and,
if applicable, related trust agreements or other funding
instruments and all amendments thereto, and all written
interpretations thereof and written descriptions thereof that have
been distributed to employees or former employees of the Group
Members. The Canadian Pension Plans are duly registered under the
Income Tax Act (Canada) and any other Requirement of Law
which to the knowledge of either Borrower require registration and
no event has occurred which is reasonably likely to cause the loss
of such registered status. As of the Closing Date, all material, if
any, obligations of each Group Member (including fiduciary,
funding, investment and administration obligations) required to be
performed pursuant to a Requirement of Law in connection with the
Canadian Pension Plans and the funding agreements therefor have
been performed in a timely fashion. There have been no improper
withdrawals or applications of the assets of the Canadian Pension
Plans or the Canadian Benefit Plans. Except as could not reasonably
be expected to result in a Material Adverse Effect, (i) there
are no outstanding disputes concerning the assets held under the
funding agreements for the Canadian Pension Plans or the Canadian
Benefit Plans and (ii) each Canadian Pension Plan is fully
funded both on an ongoing basis and on a solvency basis (using
actuarial methods and assumptions which are consistent with the
valuations last filed with the applicable Governmental Authorities
and which are consistent with generally accepted actuarial
principles). No promises of benefit improvements under the Canadian
Pension Plans or the Canadian Benefit Plans have been made except
where such improvement could not have a Material Adverse Effect.
All contributions or premiums required to be made or paid by each
Group Member, if any, to the Canadian Pension Plans or the Canadian
Benefit Plans have been made or paid in a timely fashion in
accordance with the terms of such plans and all Requirements of
Law. All employee contributions to the Canadian Pension Plans or
the Canadian Benefit Plans by way of authorized payroll deduction
or otherwise have been properly withheld or collected and fully
paid into such plans in a timely manner. All material reports and
disclosures relating to the Canadian Pension Plans required by such
plans and any Requirement of Law to be filed or distributed have
been filed or distributed in a timely manner. Each Group Member has
withheld all employee withholdings and has made all employer
contributions to be withheld and made by it pursuant to applicable
law on account of Canadian Pension Plans employment insurance and
employee income taxes.
4.14
Investment Company Act; Other Regulations . No Loan Party is
an "investment company", or a company "controlled" by an
"investment company", within the meaning of the Investment Company
Act of 1940, as amended. No Loan Party is subject to regulation
under any Requirement of Law (other than Regulation X of the
Board) which limits its ability to incur Indebtedness.
4.15
Subsidiaries . (a) The Subsidiaries listed on
Schedule 4.15(a) constitute all the Subsidiaries of
the US Borrower as of the Closing Date.
Schedule 4.15(a) sets forth as of the Closing
Date the exact legal name as reflected on the certificate of
incorporation (or
68
formation) and jurisdiction of incorporation (or formation) of
each Subsidiary of the US Borrower and, as to each such Subsidiary,
the percentage and number of each class of Capital Stock owned by
each Group Member.
(b)
As of the Closing Date, there are no outstanding subscriptions,
options, warrants, calls, rights or other agreements or commitments
(other than stock options granted to employees or directors and
directors’ qualifying shares) of any nature relating to any
Capital Stock of the US Borrower or any Group Member, except as set
forth on Schedule 4.15(b) .
4.16
Use of Proceeds. The proceeds of the Term Loans and the
proceeds of the Revolving Credit Loans funded on the Closing Date
shall be used to consummate the Refinancing and to pay related
fees, costs and expenses. The proceeds of the Revolving Credit
Loans, Swing Line Loans and the Letters of Credit shall be used
after the Closing Date to finance the working capital needs and for
general corporate purposes of the Borrowers and its Subsidiaries in
the ordinary course of business including Permitted Acquisitions,
and to pay related fees, costs and expenses.
4.17
Environmental Matters. Except as disclosed on
Schedule 4.17 , and other than exceptions to any of the
following that could not, individually or in the aggregate,
reasonably be expected to result in the Group Members incurring any
liability or expense in excess of a Material Environmental Amount:
(a) The
Group Members: (i) are, and since September 10, 2001,
have been, in compliance with all applicable Environmental Laws;
(ii) hold all Environmental Permits (each of which is in full
force and effect) required for any of their operations or for any
property owned, leased, or otherwise operated by any of them;
(iii) are, and since September 10, 2001, have been, in
compliance with all of their Environmental Permits; and
(iv) have no knowledge that any of their Environmental Permits
will not be timely renewed and complied with; any additional
Environmental Permits that may be required of any of them will not
be timely obtained and complied with; and compliance with any
Environmental Law that is applicable to any of them will not be
maintained.
(b) Materials
of Environmental Concern (i) have not been Released, and are
not otherwise present, at, on, under, in, or about any real
property now owned, leased or operated by any Group Member in any
quantity or manner that requires investigation or remediation under
any applicable Environmental Law, (ii) were, to the best
knowledge of any Group Member, not Released at any property
formerly owned, leased or operated by any Group Member during the
period of such Group Member’s ownership, lease or operation
thereof, in any quantity or manner that requires investigation or
remediation under any applicable Environmental Law, (iii) to
the best knowledge of any Group Member, have not been sent for
re-use or recycling or for treatment, storage, or disposal at any
other location which could reasonably be expected to give rise to
liability of any Group Member under any applicable Environmental
Law (iv) are not present at, on, under, in, or about any real
property now owned, leased or operated by any Group Member such
that the Group Member is precluded from the normal conduct of its
business at any such property, or (v) are not stored, handled
or otherwise present at, on, under, in or about any real property
now owned, leased or operated by any Group Member except in
quantities
69
reasonably required for the conduct of the business or
operations of the Group Member and in compliance with Environmental
Laws.
(c) There
is no judicial, administrative, or arbitral proceeding (including
any notice of violation or alleged violation) under or relating to
any Environmental Law to which any Group Member is, or to the
knowledge of any Group Member will be, named as a party that is
pending or, to the knowledge of any Group Member, threatened.
(d) No
Group Member has received any written request for information, or
been notified in writing that it is a potentially responsible party
under or relating to the federal Comprehensive Environmental
Response, Compensation, and Liability Act or any analogous
Environmental Law with respect to any Materials of Environmental
Concern that require, or allegedly require, investigation or
remediation under applicable Environmental Law.
(e) No
Group Member has entered into or agreed to any consent decree,
order, or settlement or other agreement, or is subject to any
judgment, decree, or order or other agreement, in any judicial,
administrative or arbitral forum for dispute resolution, relating
to compliance with or liability under any Environmental Law.
(f) No
Group Member has received written notice or otherwise has knowledge
that it is responsible for liability arising under any
Environmental Law or with respect to any Material of Environmental
Concern that it has assumed under any contract to which it is a
party or by operation of law.
4.18
Accuracy of Information, etc . No statement or information
contained in the Confidential Information Memorandum, this
Agreement, any other Loan Document, or any other document,
certificate or statement furnished to the Administrative Agent, the
Arrangers, the Agents or the Lenders or any of them, by or on
behalf of any Loan Party for use in connection with the
transactions contemplated by this Agreement or the other Loan
Documents, taken as a whole, contained as of the date of such
statement, information, document or certificate was so furnished,
or, in the case of the Confidential Information Memorandum, the
Closing Date, any untrue statement of a material fact or omitted to
state a material fact necessary in order to make the statements
contained herein or therein not misleading in light of the
circumstances under which such statements were made. The
projections and pro forma financial information
contained in the materials referenced above are based upon good
faith estimates and assumptions believed by management of the
Borrowers to be reasonable at the time made, it being recognized by
the Lenders that such financial information as it relates to future
events is not to be viewed as fact and that actual results during
the period or periods covered by such financial information may
differ from the projected results set forth therein by a material
amount. There is no fact known to any Loan Party that could
reasonably be expected to have a Material Adverse Effect that has
not been expressly disclosed herein, in the other Loan Documents or
in any other documents, certificates and statements furnished to
the Arrangers, the Agents and the Lenders for use in connection
with the transactions contemplated hereby and by the other Loan
Documents.
4.19
Security Documents . The Guarantee and US Collateral
Agreement is effective to create in favor of the Administrative
Agent, for the benefit of the Secured Parties, a
70
legal, valid, binding and enforceable security interest in the
Collateral described therein and proceeds and products thereof to
secure the Obligations. The Canadian Collateral Agreement is
effective to create in favor of the Administrative Agent, for the
benefit of the Secured Parties, a legal, valid, binding and
enforceable security interest in the Collateral described therein
and proceeds and products thereof to secure the Obligations. In the
case of the Pledged Stock described in the Guarantee and US
Collateral Agreement, and the Canadian Collateral Agreement, when
any stock certificates representing such Pledged Stock are
delivered to the Administrative Agent, and in the case of the other
Collateral described in the Guarantee and US Collateral Agreement
(except Vehicles and Deposit Accounts, each as defined therein) and
other Collateral described in the Canadian Collateral Agreement
(except insurance and patents), when financing statements in
appropriate form are filed in the offices specified on
Schedule 4.19 (which financing statements may be filed
by the Administrative Agent) at any time and such other filings as
are specified on Schedule 3 to the Guarantee and US
Collateral Agreement and Schedule 3 to the Canadian
Collateral Agreement have been completed (all of which filings may
be filed by the Administrative Agent at any time), (x) the
Guarantee and US Collateral Agreement shall constitute a fully
perfected Lien on, and security interest in, all right, title and
interest of the Loan Parties in such Collateral and the proceeds
and products thereof, as security for the Obligations (as defined
in the Guarantee and US Collateral Agreement), and (y) the
Canadian Collateral Agreement shall constitute a fully perfected
Lien on, and security interest in, all right, title and interest of
the Loan Parties party thereto in such Collateral and the proceeds
and products thereof, as security for the Secured Obligations (as
defined in the Canadian Collateral Agreement) in each case prior
and superior in right to any other Person (except Permitted Liens).
Schedule 7.3(f) lists each financing statement
under all applicable Personal Property Security Legislation that
(i) names any Loan Party as debtor and (ii) will remain
on file after the Closing Date. On or prior to the Closing Date,
the relevant Borrower will have delivered to the Administrative
Agent, or caused to be filed, duly completed UCC or other
applicable termination statements under Personal Property Security
Legislation, signed by the relevant secured party, in respect of
each financing statement filed in respect of Liens other than
Permitted Liens or otherwise made arrangements satisfactory to the
Administrative Agent with respect thereto.
4.20
Solvency . Each Loan Party is, and after giving effect to
the incurrence of all Indebtedness and obligations being incurred
in connection herewith will be and will continue to be, Solvent.
4.21
Senior Indebtedness . The Obligations constitute "Senior
Indebtedness" of the Borrowers under and as defined in the Senior
Subordinated Note Indenture. The obligations of each Subsidiary
Guarantor under the Guarantee and US Collateral Agreement
constitute "Guarantor Senior Indebtedness" of such Subsidiary
Guarantor under and as defined in the Senior Subordinated Note
Indenture.
4.22
Regulation H . No Mortgage encumbers improved real
property which is located in an area that has been identified by
the Secretary of Housing and Urban Development as an area having
special flood hazards and in which flood insurance has been made
available under the National Flood Insurance Act of 1968
(except any Mortgaged Properties as to which such flood insurance
as required by Regulation H has been obtained and is in full
force and effect as required by this Agreement).
71
4.23
Insurance . Each Group Member is insured, in accordance with
Section 5.3 of the Guarantee and US Collateral Agreement and
with respect to each Canadian Subsidiary, Section 5.3 of the
Canadian Collateral Agreement, by insurers of recognized financial
responsibility against such losses and risks and in such amounts as
are prudent and customary in the businesses in which it is engaged,
and no Group Member (i) has received notice from any insurer
or agent of such insurer that substantial capital improvements or
other material expenditures will have to be made in order to
continue such insurance or (ii) has any reason to believe that
it will not be able to renew its existing insurance coverage as and
when such coverage expires or to obtain similar coverage from
similar insurers at a cost that could not reasonably be expected to
have a Material Adverse Effect.
4.24
Real Estate . As of the Closing Date,
Schedule 4.24 sets forth a true, complete and correct
list of all real property owned or leased by any Group Member and
indicates which such properties are Mortgaged Properties.
4.25
PATRIOT Act, Etc . To the extent applicable, each Loan Party
is in compliance, in all material respects, with the
(a) Trading with the Enemy Act, as amended, and each of the
foreign assets control regulations of the Untied States Treasury
Department (31 CFR, Subtitle B, Chapter V, as amended) and any
other enabling legislation or executive order relating thereto, and
(b) Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act
of 2001) (the " PATRIOT Act "). No part of the proceeds of
the Loans will be used, directly or indirectly, for any payments to
any governmental official or employee, political party, official of
a political party, candidate for political office, or anyone else
acting in an official capacity, in order to obtain, retain or
direct business or obtain any improper advantage, in violation of
the United States Foreign Corrupt Practices Act of 1977, as
amended. SECTION 5. CONDITIONS PRECEDENT
5.1
Conditions to Initial Extension of Credit . The agreement of
each Lender to make the initial extension of credit requested to be
made by it hereunder on the Closing Date is subject to the
satisfaction, prior to or concurrently with the making of such
extension of credit on the Closing Date, of the following
conditions precedent:
(a)
Loan Documents . The Administrative Agent shall have
received (i) this Agreement, executed and delivered by a duly
authorized officer of each Borrower, (ii) the Guarantee and US
Collateral Agreement, executed and delivered by a duly authorized
officer of each Borrower and each Subsidiary Guarantor,
(iii) the Canadian Collateral Agreement, executed and
delivered by a duly authorized officer of the Canadian Borrower and
each Canadian Subsidiary which is a Guarantor, (iv) to the
extent required by the Administrative Agent, a Mortgage covering
each of the Mortgaged Properties, executed and delivered by a duly
authorized officer of each party thereto, except as set forth in
Schedule 6.15, and (v) a Lender Addendum, executed and
delivered by each Lender and accepted by the Borrowers.
(b)
Pro Forma Balance Sheet; Financial Statements . The Lenders
shall have received the Pro Forma Balance Sheet, (ii) audited
consolidated financial statements of the US Borrower and its
Subsidiaries for the 2005, 2006 and 2007 fiscal years and
(iii) unaudited interim
72
consolidated financial statements of the US Borrower and its
Subsidiaries for each fiscal month and quarterly period ended
subsequent to the date of the latest applicable financial
statements delivered pursuant to clause (ii) of this paragraph
as to which such financial statements are available; and such
financial statements shall not, in the reasonable judgment of the
Lenders, reflect any material adverse change in the consolidated
financial condition of the US Borrower and its Subsidiaries, as
reflected in the financial statements or projections contained in
the Confidential Information Memorandum.
(c)
Senior Subordinated Notes . The Administrative Agent shall
have received (in a form reasonably satisfactory to the
Administrative Agent), true and correct copies, certified as to
authenticity by the Borrowers, of the consent of the existing
holders of the Senior Subordinated Notes in connection with the
transactions contemplated by this Agreement, and such consent shall
have become effective.
(d)
Refinancing . The Administrative Agent shall have received
satisfactory evidence that the Existing Credit Agreement shall be
simultaneously terminated, all amounts thereunder shall be
simultaneously paid in full, all Existing Letters of Credit shall
be simultaneously replaced as assumed hereunder or backed with
Letters of Credit, and satisfactory arrangements shall have been
made for the termination of Liens and security interests granted in
connection therewith.
(e)
Fees . The Lenders, the Arrangers and the Agents shall have
received all fees required to be paid, and all expenses for which
invoices have been presented (including reasonable fees,
disbursements and other charges of counsel to the Agents), on or
before the Closing Date. All such amounts will be paid with
proceeds of Loans made on the Closing Date and will be reflected in
the funding instructions given by the US Borrower to the
Administrative Agent on or before the Closing Date.
(f)
Projections . The Lenders shall have received satisfactory
projections for the US Borrower and its Subsidiaries for fiscal
years 2008 through 2013.
(g)
Lien Searches . The Administrative Agent shall have received
the results of a recent lien, tax lien, bankruptcy, judgment and
(other than in Canada) litigation search in each of the
jurisdictions (including the United States of America and Canada)
or offices (including, without limitation, in the United States
Patent and Trademark Office, the United States Copyright Office and
the Canadian Intellectual Property Office) in which financing
statements under the UCC or other Personal Property Security
Legislation or other filings or recordations should be made to
evidence or perfect (with the priority required under the Loan
Documents) security interests in all assets of the Loan Parties (or
would have been made at any time during the five years immediately
preceding the Closing Date to perfect Liens on any assets of the
Borrowers or their Subsidiaries), and such search shall reveal no
Liens on any of the assets of the Loan Parties, except for
Permitted Liens or Liens which will be terminated on or prior to
the Closing Date or subject to other arrangements agreed to by the
Administrative Agent.
(h)
Environmental Matters . The Administrative Agent shall have
received all existing written environmental assessments regarding
the Borrowers and their respective Subsidiaries, which
environmental assessments are listed on Schedule 5.1(h).
73
(i)
Closing Certificate . The Administrative Agent shall have
received a certificate of each Loan Party, dated the Closing Date,
substantially in the form of Exhibit C, with appropriate
insertions and attachments.
(j)
Other Certifications . The Administrative Agent shall have
received the following:
(i) a
copy of the charter of each Loan Party and each amendment thereto,
certified (as of a date reasonably near the date of the initial
extension of credit to the extent such certification is obtainable
in the relevant jurisdiction) as being a true and correct copy
thereof by the Secretary of State or other applicable Governmental
Authority (or, in the case of any Loan Party organized under the
laws of Canada or any province thereof, the corporate secretary of
such Loan Party) of the jurisdiction in which each such Loan Party
is organized;
(ii) a
copy of a certificate of the Secretary of State or other applicable
Governmental Authority, to the extent such certification is
obtainable, of the jurisdiction in which each such Loan Party is
organized, dated reasonably near the date of the initial extension
of credit, listing the charter of such Loan Party and each
amendment thereto on file in such office and certifying that
(A) such amendments are the only amendments to such Loan
Party’s charter on file in such office, (B) such Loan
Party has paid all franchise taxes to the date of such certificate
(if obtainable in such jurisdiction) and (C) such Loan Party
is duly organized and in good standing under the laws of such
jurisdiction;
(iii)
to the extent obtainable, an electronic or facsimile confirmation
from the Secretary of State or other applicable Governmental
Authority of each jurisdiction in which each Loan Party is
organized certifying that such Loan Party is duly organized and in
good standing under the laws of such jurisdiction on the date of
the initial extension of credit; together with a written
confirmatory report in respect thereof prepared by, or on behalf
of, a filing service acceptable to the Administrative Agent; and
(iv) to
the extent obtainable, a copy of a certificate of the Secretary of
State or other applicable Governmental Authority of each state or
province where any Loan Party is required to be qualified as a
foreign corporation or entity, other than any state or province
where the failure to be so qualified could not reasonably be
expected to have a Material Adverse Effect, dated reasonably near
the date of the initial extension of credit, stating that such Loan
Party is duly qualified and in good standing as a foreign
corporation or entity in each such jurisdiction and has filed all
annual reports required to be filed to the date of such
certificate; and an electronic confirmation, prepared by or on
behalf of, a filing service acceptable to the Administrative Agent,
stating that the Secretary of State or other applicable
Governmental Authority of each such jurisdiction on the date of the
initial extension of credit has confirmed the due qualification and
continued good standing of each such Person as a foreign
corporation or entity in each such jurisdiction on or about such
date.
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(k)
Pledged Stock; Stock Powers; Acknowledgment and Consent; Pledged
Notes . The Administrative Agent shall have received
(i) the certificates, if any, representing all of the shares
of Capital Stock pledged pursuant to the Guarantee and US
Collateral Agreement and the Canadian Collateral Agreement,
together with an undated stock power and irrevocable proxy for each
such certificate executed in blank by a duly authorized officer of
the pledgor thereof, (ii) an Acknowledgment and Consent,
substantially in the form of Annex II to the Guarantee and US
Collateral Agreement, duly executed by any issuer of Capital Stock
pledged pursuant to the Guarantee and US Collateral Agreement or
the Canadian Collateral Agreement that is not itself a party to the
Guarantee and US Collateral Agreement or the Canadian Collateral
Agreement, as applicable, and (iii) each promissory note
pledged pursuant to the Guarantee and US Collateral Agreement or
the Canadian Collateral Agreement endorsed (without recourse) in
blank (or accompanied by an executed transfer form in blank
satisfactory to the Administrative Agent) by the pledgor thereof.
(l)
Filings, Registrations and Recordings . Except as otherwise
agreed by the Administrative Agent, each document (including,
without limitation, any financing statement filed pursuant to the
UCC or other applicable Personal Property Security
Legislation) required by the Security Documents or under law
or reasonably requested by the Administrative Agent to be filed,
registered or recorded in order to create in favor of the
Administrative Agent, for the benefit of the Secured Parties, a
perfected Lien on the Collateral except Vehicles located in the
United States of America and Canada and insurance and patents
located in Canada described therein, prior and superior in right to
any other Person (other than with respect to Permitted Liens),
shall have been filed, registered or recorded or shall have been
delivered to the Administrative Agent in proper form for filing,
registration or recordation.
(m)
Surveys . The Administrative Agent shall have received, and
the title insurance company issuing the policies referred to in
Section 5.1(n) below (the " Title Insurance
Company ") shall have received, maps or plats of an as-built
survey of the sites of the Mortgaged Properties located in the
United States of America, except as set forth in
Schedule 6.15, certified to the Administrative Agent and the
Title Insurance Company in a manner satisfactory to them, dated not
more than 30 days prior to the Closing Date unless the Title
Insurance Company has agreed to delete its survey disclosure
exception on the basis of an earlier survey and such survey is, in
any event, dated not more than 2 years prior to the Closing
Date by an independent professional licensed land surveyor
satisfactory to the Administrative Agent and the Title Insurance
Company, which maps or plats and the surveys on which they are
based shall be made in accordance with the Minimum Standard Detail
Requirements for Land Title Surveys jointly established and adopted
by the American Land Title Association and the American Congress on
Surveying and Mapping in 1997 or 1999 (or 2005 in the case of new
surveys) and meeting the accuracy requirements as defined therein,
and, without limiting the generality of the foregoing, there shall
be surveyed and shown on such maps, plats or surveys the following:
each survey shall (a) be a current "as-built" survey showing
the location of any adjoining streets (including their widths and
any pavement or other improvements), easements (including the
recorded information with respect to all recorded instruments), the
mean high water base line or other legal boundary lines of any
adjoining bodies of water, fences, zoning or restriction setback
lines, rights-of-way, utility lines to the points of connection and
any encroachments; (b) locate all means of ingress and egress,
certifying the amount of acreage and square footage, indicate the
address of the property, contain the legal description of the
property, and also contain a location
75
sketch of the property; (c) show the location of all
improvements as constructed on the property, all of which shall be
within the boundary lines of the property and conform to all
applicable zoning ordinances, set-back lines and restrictions and
the surveyor shall certify compliance with the foregoing;
(d) indicate the location of any improvements on the property
with the dimensions in relations to the lot and building lines;
(e) show measured distances from the improvements to be set
back and specified distances from street or property lines in the
event that deed restrictions, recorded plats or zoning ordinances
require same; (f) designate all courses and distances referred
to in the legal description, and indicate the names of all
adjoining owners on all sides of the property, to the extent
available; and (g) indicate the flood zone designation, if
any, in which the property is located. The legal description of the
applicable property shall be shown on the face of each survey, and
the same shall conform to the legal description contained in the
title policy described below.
(n)
Title Insurance .
(i) The
Administrative Agent shall have received, in respect of each
Mortgaged Property located in the United States of America, except
as set forth in Schedule 6.15, a mortgagee’s title
insurance policy (or policies) or marked up unconditional binder
for such insurance. Each such policy shall (A) be in an amount
reasonably satisfactory to the Administrative Agent; (B) be
issued at ordinary rates; (C) insure that the Mortgage insured
thereby creates a valid first Lien on, and security interest in,
such Mortgaged Property free and clear of all defects and
encumbrances, except for Permitted Liens disclosed therein;
(D) name the Administrative Agent for the benefit of the
Secured Parties as the insured thereunder; (E) be in the form
of ALTA Loan Policy – 1970 form B (Amended 10/17/70 and
10/17/84) or 2006 ALTA Loan Policy to the extent available in the
particular jurisdiction of each Mortgaged Property (or equivalent
policies); (F) contain such endorsements and affirmative
coverage as the Administrative Agent may reasonably request in form
and substance acceptable to the Administrative Agent, including,
without limitation (to the extent applicable with respect to such
Mortgaged Property and available in the jurisdiction in which such
Mortgaged Property is located), the following: variable rate
endorsement; survey endorsement; comprehensive endorsement; zoning
(ALTA 3.1 with parking added) endorsement; first loss, last dollar
(if not a 2006 ALTA Loan Policy) and tie-in endorsement; access
coverage; separate tax parcel coverage; contiguity coverage; usury;
doing business; subdivision; environmental protection lien; CLTA
119.2 and CLTA 119.3 (for leased Real Estate, only); deletion of
arbitration; revolving credit/future advances; mortgage recording
tax; deletion of creditors’ rights (if not a 1970 ALTA Loan
Policy); and such other endorsements as the Administrative Agent
shall reasonably require in order to provide insurance against
specific risks identified by the Administrative Agent in connection
with such Mortgaged Property, and (G) be issued by title
companies satisfactory to the Administrative Agent (including any
such title companies acting as co-insurers or reinsurers, at the
option of the Administrative Agent). The Administrative Agent shall
have received evidence satisfactory to it that all premiums in
respect of each such policy, all charges for mortgage recording
tax, and all related expenses, if any, have been paid.
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(ii)
The Administrative Agent shall have received a copy of all recorded
documents referred to, or listed as exceptions to title in, the
title policy or policies referred to in clause (i) above
and a copy of all other material documents affecting the Mortgaged
Properties.
(o)
Flood Insurance . If requested by the Administrative Agent,
the Administrative Agent shall have received, except as set forth
in Schedule 6.15 (A) a policy of flood insurance for
Mortgaged Properties located in a flood hazard zone as designated
by the Federal Emergency Management Agency that (1) covers any
parcel of improved material real property located in the United
States of America that is encumbered by any Mortgage (2) is
written in an amount not less than the outstanding principal amount
of the indebtedness secured by such Mortgage that is reasonably
allocable to such real property or the maximum limit of coverage
made available with respect to the particular type of property
under the National Flood Insurance Act of 1968, whichever is
less, and (3) has a term ending not later than the maturity of
the indebtedness secured by such Mortgage or that may be extended
to such maturity date and (B) confirmation that the US
Borrower has received the notice required pursuant to
Section 208(e)(3) of Regulation H of the Board.
(p)
Insurance . The Administrative Agent shall have received
insurance certificates satisfying the requirements of
Section 5.3 of the Guarantee and US Collateral Agreement and
Section 5.3 of the Canadian Collateral Agreement.
(q)
PATRIOT Act . The Administrative Agent shall have received
all documentation and other information required by bank regulatory
authorities under applicable "know your customer" and Anti-Money
Laundering rules and regulations, including, without limitation,
the PATRIOT Act as it shall have reasonably requested.
(r)
Approvals . All material governmental and third party
approvals and consents necessary in connection with the continuing
operations of the Group Members and the transactions contemplated
hereby shall have been obtained and be in full force and effect,
and all applicable waiting periods shall have expired without any
action being taken or threatened by any competent authority which
would restrain, prevent or otherwise impose adverse conditions on
the financing contemplated hereby.
(s)
Solvency Certificate . On the Closing Date, the Lenders
shall have received a Solvency Certificate substantially in the
form attached hereto as Exhibit K, executed by the chief
financial officer of each Borrower.
(t)
Legal Opinions . The Administrative Agent shall have
received the following executed legal opinions:
(i) the
legal opinion of Akin Gump Strauss Hauer & Feld LLP, counsel of
the Group Members, substantially in the form of Exhibit F-1;
(ii)
the legal opinion of Blakes, Cassels & Graydon LLP, Canadian
counsel of the Group Members, substantially in the form of
Exhibit F-2;
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(iii)
the legal opinion of Stewart McKelvey, Nova Scotia counsel of the
Group Members, substantially in the form of Exhibit F-3; and
(iv)
the legal opinion of local counsel in Florida and of such other
special and local counsel as may be reasonably required by the
Administrative Agent.
Each
such legal opinion shall cover such other matters incident to the
transactions contemplated by this Agreement as the Administrative
Agent may reasonably require.
(u)
Miscellaneous . The Administrative Agent shall have received
such other documents, agreements, certificates and information as
it shall reasonably request.
Each
Lender, by delivering its signature page to this Agreement or a
Lender Addendum and funding a Loan on the Closing Date, shall be
deemed to have acknowledged receipt of, and consented to and
approved, each Loan Document and each other document required to be
approved by the Administrative Agent, Required Lenders or Lenders,
as applicable on the Closing Date.
5.2
Conditions to Each Extension of Credit . The agreement of
each Lender to make any extension of credit requested to be made by
it hereunder on any date (including, without limitation, its
initial extension of credit) is subject to the satisfaction of the
following conditions precedent:
(a)
Representations and Warranties . Each of the representations
and warranties made by any Loan Party in or pursuant to the Loan
Documents shall be true and correct in all material respects
(without duplication of any materiality qualifier contained
therein) on and as of such date as if made on and as of such date,
except for representations and warranties expressly stated to
relate to a specific earlier date, in which case such
representations and warranties shall be true and correct as of such
earlier date.
(b)
No Default . No Default or Event of Default shall have
occurred and be continuing on such date or after giving effect to
the extensions of credit requested to be made on such date.
(c)
Senior Debt . A Responsible Officer of each Borrower shall
certify in writing to the Administrative Agent that the incurrence
of Indebtedness represented by the requested extension of credit is
permitted under the Senior Subordinated Notes Indenture.
Each
borrowing by and issuance of a Letter of Credit on behalf of a
Borrower hereunder shall constitute a representation and warranty
by such Borrower as of the date of such extension of credit that
the conditions contained in this Section 5.2 have been
satisfied. SECTION 6. AFFIRMATIVE COVENANTS
The
Borrowers hereby jointly and severally agree that, so long as the
Commitments remain in effect, any Letter of Credit remains
outstanding or any Loan or other amount is owing to any Lender, any
Agent or any Arranger hereunder, each Borrower shall and shall
cause each of its Subsidiaries to:
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6.1
Financial Statements . Furnish to each Agent and each
Lender:
(a) as
soon as available, but in any event within 90 days after the
end of each fiscal year of the US Borrower, a copy of the audited
consolidated balance sheet of the US Borrower and its consolidated
Subsidiaries as at the end of such year and the related audited
consolidated statements of income and of cash flows for such year,
setting forth in each case in comparative form the figures as of
the end of and for the previous year, reported on without a "going
concern" or like qualification or exception, or qualification
arising out of the scope of the audit, by BDO Dunwoody LLP/ BDO
Seidman LLP or other independent certified public accountants of
nationally recognized standing;
(b) as
soon as available, but in any event not later than 45 days
after the end of each of the first three quarterly periods of each
fiscal year of the US Borrower, the unaudited consolidated balance
sheet of the US Borrower and its consolidated Subsidiaries as at
the end of such quarter and the related unaudited consolidated
statements of income and of cash flows for such quarter and the
portion of the fiscal year through the end of such quarter, setting
forth in each case in comparative form the figures as of the end of
and for the corresponding period in the previous year, certified by
a Responsible Officer as being fairly stated in all material
respects (subject to normal year-end audit adjustments);
(c) as
soon as available, but in any event not later than 45 days
after the end of each month occurring during each fiscal year of
the US Borrower (other than the third, sixth, ninth and twelfth
such month), the unaudited consolidated balance sheets of the US
Borrower and its consolidated Subsidiaries as at the end of such
month and the related unaudited consolidated statements of income
and of cash flows for such month and the portion of the fiscal year
through the end of such month, setting forth in each case in
comparative form the figures as of the end of and for the
corresponding period in the previous year, certified by a
Responsible Officer as being fairly stated in all material respects
(subject to normal year-end audit adjustments); and all such
financial statements to be complete and correct in all material
respects and to be prepared in reasonable detail and, except with
respect to the statement of cash flows delivered pursuant to
Section 6.1(c), in accordance with GAAP applied consistently
throughout the periods reflected therein and with prior periods
(except as approved by such accountants or officer, as the case may
be, and disclosed therein); it being understood that at the
Administrative Agent’s reasonable request, such statements of
cash flow will also be prepared in accordance with GAAP.
6.2
Certificates; Other Information . Furnish to each Agent and
each Lender, or, in the case of clause (i), to the relevant Lender:
(a) concurrently
with the delivery of the financial statements referred to in
Section 6.1(a), a certificate of the independent certified
public accountants reporting on such financial statements stating
that in making the examination necessary therefor no knowledge was
obtained of any Default or Event of Default, except as specified in
such certificate (it being understood that such certificate shall
be limited to the items that independent certified public
79
accountants are permitted to cover in such certificates pursuant
to their professional standards and customs of the profession);
(b) concurrently
with the delivery of any financial statements pursuant to
Sections 6.1(b) and (c), (i) a certificate of a
Responsible Officer stating that, to the best of such Responsible
Officer’s knowledge, each Loan Party during such period has
observed or performed all of its covenants and other agreements
contained in this Agreement and the other Loan Documents to which
it is a party to be observed, performed or satisfied by it on or
before such date, and that such Responsible Officer has obtained no
knowledge of any Default or Event of Default except as specified in
such certificate and (ii) in the case of quarterly or annual
financial statements, (x) a Compliance Certificate stating
that to the best of such Responsible Officer’s knowledge,
each Loan Party during such period has observed or performed all of
its covenants and other agreements contained in this Agreement and
the other Loan Documents to which it is a party to be observed,
performed or satisfied by it on or before such date, and containing
all information and calculations necessary for determining
compliance by the Group Members with the provisions of this
Agreement referred to therein as of the last day of the fiscal
quarter or fiscal year of the US Borrower, as the case may be,
(y) to the extent not previously disclosed to the
Administrative Agent, in writing, a listing of any county, state,
territory, province, region or any other jurisdiction, or any
political subdivision thereof within the United States of America,
Canada or otherwise where any Loan Party keeps material inventory
or equipment and of any registered Intellectual Property acquired
by any Loan Party since the date of the most recent list delivered
pursuant to this clause (y) (or, in the case of the first such list
so delivered, since the Closing Date) and (z) any financing
statements under the UCC or applicable Personal Property Security
Legislation or other filings specified in such Compliance
Certificate as being required to be delivered therewith;
(c) as
soon as available, and in any event no later than 45 days
after the end of each fiscal year of the US Borrower, a detailed
consolidated budget for the current fiscal year (including a
projected consolidated balance sheet of the US Borrower and its
Subsidiaries as of the end of the current fiscal year, and the
related consolidated statements of projected cash flow and
projected income), and, as soon as available, significant
revisions, if any, of such budget and projections with respect to
such fiscal year (collectively, the " Projections "), which
Projections shall in each case be accompanied by a certificate of a
Responsible Officer stating that such Projections are based on
reasonable estimates, information and assumptions and that such
Responsible Officer has no reason to believe that such Projections
are incorrect or misleading in any material respect;
(d) within
45 days after the end of each fiscal quarter of the US
Borrower, a narrative discussion and analysis of the financial
condition and results of operations of the US Borrower and its
Subsidiaries for such fiscal quarter and for the period from the
beginning of the then current fiscal year to the end of such fiscal
quarter, as compared to the portion of the Projections covering
such periods and to the comparable periods of the previous year;
(e) no
later than 5 Business Days, or such shorter period as the
Administrative Agent shall reasonably agree to, prior to the
effectiveness thereof, copies of substantially final drafts of any
proposed amendment, supplement, waiver or other modification with
respect to the
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Senior Subordinated Notes or any proposed material amendment,
supplement or other modification of the governing documents of
either Borrower;
(f) within
five days after the same are sent, copies of all financial
statements and reports that any Group Member sends to the holders
of any class of its debt securities or public equity securities
and, within 5 days after the same are filed, copies of all
financial statements and reports that any Group Member may make to,
or file with, the SEC;
(g) as
soon as reasonably possible and in any event within 5 Business Days
of obtaining knowledge thereof: (i) notice of any
development, event, or condition that, individually or in the
aggregate with other developments, events or conditions that,
individually or in the aggregate, could reasonably be expected to
result in the payment by any Group Member, in the aggregate, of a
Material Environmental Amount; and (ii) any notice that any
Governmental Authority will deny any application for an
Environmental Permit sought by, or revoke or refuse to renew any
Environmental Permit or any other material Permit held by a
Borrower or condition approval of any such material Permit on terms
and conditions that are materially more burdensome than the current
terms and conditions of such material Permits to the operation of
any of the Group Members’ businesses or any property owned,
leased or operated by such Person, where such denial, revocation,
refusal or condition would preclude the normal conduct of the Group
Members’ business in respect of the operation to which such
Environmental Permit or material Permit applies;
(h) to
the extent not included in clauses (a) through (g) above,
no later than the date the same are required to be delivered
thereunder, copies of all agreements, documents or other
instruments (including, without limitation, (i) audited and
unaudited, pro forma and other financial statements, reports,
forecasts, and projections, together with any required
certifications thereon by independent public auditors or officers
of any Group Member or otherwise, (ii) press releases and
(iii) statements or reports furnished to any other holder of
the securities of any Group Member);
(i) concurrently
with the delivery of the financial statements referred to in
Section 6.1(a), a report of a reputable insurance broker with
respect to the insurance required by Section 6.5, and, from
time to time, such supplemental reports thereto as the
Administrative Agent may reasonably request; and
(j) promptly,
such additional financial and other information as any Lender may
from time to time reasonably request.
6.3
Payment of Obligations . Pay, discharge or otherwise satisfy
at or before maturity or before they become delinquent, as the case
may be, all its material obligations of whatever nature, except
where the amount or validity thereof is currently being contested
in good faith by appropriate proceedings and reserves in conformity
with GAAP with respect thereto have been provided on the books of
the applicable Group Member.
6.4
Conduct of Business and Maintenance of Existence, etc.
(a) (i) Preserve, renew and keep in full force and
effect its corporate or other existence and (ii) take all
reasonable action to maintain all rights, privileges, franchises,
Permits and licenses necessary or desirable in
81
the normal conduct of its business, except, in each case, as
otherwise permitted by Section 7.4 and except, in the case of
clause (ii) above, to the extent that failure to do so could
not reasonably be expected to have a Material Adverse Effect; and
(b) to the extent not in conflict with this Agreement or the
other Loan Documents, comply with all Contractual Obligations and
Requirements of Law, except to the extent that failure to comply
therewith could not, in the aggregate, reasonably be expected to
have a Material Adverse Effect.
6.5
Maintenance of Property; Insurance . (a) Keep all
Property and systems useful and necessary in its business in
reasonably good working order and condition, ordinary wear and tear
excepted and (b) (i) maintain with financially sound and
reputable insurance companies insurance on all its Property meeting
the requirements of Section 5.3 of the Guarantee and US
Collateral Agreement and Section 5.3 of the Canadian
Collateral Agreement and in at in at least such amounts and against
at least such risks (but including in any event public liability,
product liability and business interruption) as are usually insured
against in the same general area by similarly situated companies
engaged in the same or a similar business and consistent with past
practices.
6.6
Inspection of Property; Books and Records; Discussions .
(a) Keep proper books of records and account in which full,
true and correct entries in conformity with GAAP and all
Requirements of Law shall be made of all dealings and transactions
in relation to its business and activities and (b) permit
representatives of any Lender to visit and inspect any of its
properties and examine and, at the Borrowers’ expense, make
abstracts from any of its books and records at any reasonable time
and as often as may reasonably be desired and to discuss the
business, operations, properties and financial and other condition
of the Group Members with officers and employees of the Group
Members and with their respective independent certified public
accountants.
6.7
Notices . Promptly give notice to each Agent and each Lender
of:
(a) the
occurrence of any Default or Event of Default;
(b) any
(i) default or event of default (or alleged default) under any
Contractual Obligation of any Group Member or (ii) litigation,
investigation or proceeding which may exist at any time between any
Group Member and any Governmental Authority, that in either case,
if not cured or if adversely determined, as the case may be, could
reasonably be expected to have a Material Adverse Effect;
(c) any
litigation or proceeding affecting any Group Member in which the
amount involved is $5,000,000 or more and not covered by insurance
or in which injunctive or similar relief is sought;
(d) the
following events if, individually or in the aggregate, they could
reasonably be expected to result in a Material Adverse Effect, as
soon as possible and in any event within 30 days after either
Borrower knows or has reason to know thereof: (i) the
occurrence of any Reportable Event with respect to any Single
Employer Plan, a failure to make any required contribution to a
Single Employer Plan, the creation of any Lien in favor of a Single
Employer Plan or in favor of the PBGC with respect to a Single
Employer Plan or any withdrawal from, or
82
the termination, Reorganization or Insolvency of, any
Multiemployer Plan or (ii) the institution of proceedings or
the taking of any other action by the PBGC or either Borrower or
any Commonly Controlled Entity with respect to the withdrawal from,
or the termination of, any Single Employer Plan; and
(e) any
development or event that has had or could reasonably be expected
to have a Material Adverse Effect. Each notice pursuant to this
Section shall be accompanied by a statement of a Responsible
Officer setting forth details of the occurrence referred to therein
and stating what action the relevant Borrower or the relevant
Subsidiary proposes to take with respect thereto.
6.8
Environmental Laws . (a) Comply in all material
respects with, and ensure compliance in all material respects by
all tenants and subtenants, if any, with, all applicable
Environmental Laws and Environmental Permits, and obtain, maintain
and comply in all material respects with, and ensure that all
tenants and subtenants obtain, maintain and comply in all material
respects with any and all licenses, approvals, notifications,
registrations or permits required by applicable Environmental Laws.
(b) Comply
in all material respects with all lawful orders and directives of
all Governmental Authorities regarding Environmental Laws,
including, without limitation, such orders and directives to
conduct and complete all investigations, studies, sampling and
testing, and all remedial, removal and other actions required under
Environmental Laws.
(c) Conduct
and complete, or cause to be conducted and completed, any
investigation and undertake any corrective, cleanup, removal,
response, remedial or other action necessary to identify, report,
remove and remediate all Materials of Environmental Concern
Released at, on, in, under or from any real property owned, leased
or operated by any Group Member to the extent required by and in
accordance with Environmental Laws.
6.9
Interest Rate Protection . Within 90 days after the
Closing Date, enter into Hedge Agreements to the extent necessary
to provide that at least 35% of the aggregate principal amount of
the Senior Subordinated Notes and the Term Loans is subject to
either a fixed interest rate or interest rate protection for a
period of not less than three years, which Hedge Agreements shall
have terms and conditions reasonably satisfactory to the
Administrative Agent.
6.10
Additional Collateral, etc. (a) With respect to any
Property acquired after the Closing Date by any Group Member (other
than (w) any Property acquired by any Canadian Subsidiary
(including the Canadian Borrower) (x) any Property described
in paragraph (c), paragraph (d) or paragraph (e) of this
Section, (y) any Property subject to a Lien expressly
permitted by Section 7.3(g) and (z) any Property
acquired by an Excluded Foreign Subsidiary) as to which the
Administrative Agent, for the benefit of the Secured Parties, does
not have a perfected Lien, promptly (i) execute and deliver to
the Administrative Agent such amendments to the Guarantee and US
Collateral Agreement, the Canadian Collateral Agreement or such
other documents as the Administrative Agent deems necessary or
advisable to grant to the Administrative Agent, for the benefit of
the Secured Parties, a security interest in such Property and
(ii) take all actions necessary or advisable to grant to the
Administrative Agent, for the
83
benefit of the Secured Parties, a perfected first priority
security interest in such Property (other than Vehicles located in
the United States and insurance located in Canada), including
without limitation, the filing of financing statements under the
UCC and other applicable Personal Property Security Legislation in
such jurisdictions as may be required by the Guarantee and US
Collateral Agreement, the Canadian Collateral Agreement or by law
or as may be requested by the Administrative Agent.
(b) With
respect to any Property acquired by any Canadian Subsidiary
(including the Canadian Borrower) (other than (x) any Property
described in paragraph (c), paragraph (d) or paragraph
(e) of this Section and (y) any Property subject to a
Lien expressly permitted by Section 7.3(g)) as to which the
Administrative Agent for the benefit of the Canadian Secured
Parties does not have a perfected Lien, promptly (i) execute
and deliver to the Administrative Agent such amendments to the
Canadian Collateral Agreement or such other documents as the
Administrative Agent deems necessary or advisable to grant to the
Administrative Agent for the benefit of the Secured Parties, a
security interest in such Property and (ii) take all actions
necessary or advisable to grant to the Administrative Agent or the
Secured Parties, as applicable, a perfected first priority security
interest in such Property (other than insurance located in Canada),
including without limitation, the filing of financing statements
applicable Personal Property Security Legislation in such
jurisdictions as may be required by the Canadian Collateral
Agreement or by law or as may be requested by the Administrative
Agent.
(c) With
respect to any fee interest (or leasehold interest, to the extent
such leasehold is created under a triple net ground lease or
similar transaction) in any real property having a value (together
with improvements thereof) of at least $250,000 acquired after the
Closing Date by any Group Member (other than any such real property
owned by an Excluded Foreign Subsidiary or a Canadian Subsidiary or
subject to a Lien expressly permitted by Section 7.3(g)), at
least five Business Days prior to acquisition, deliver to the
Administrative Agent a Phase I Environmental Site Assessment, in
form and substance reasonably satisfactory to the Administrative
Agent, and such other documentation relating to the environmental
condition of the Property as reasonably requested by the
Administrative Agent, and, upon acquisition, promptly
(i) execute and deliver a first priority Mortgage (except for
Permitted Liens and Liens otherwise allowed under the Mortgages) in
favor of the Administrative Agent, for the benefit of the Secured
Parties, covering such real property, (ii) if requested by the
Administrative Agent, provide the Lenders with (x) title and
extended coverage insurance, complying with the provisions of
Section 5.1(n), covering such real property in an amount at
least equal to the purchase price of such real property (or such
other amount as shall be reasonably specified by the Administrative
Agent) as well as a current ALTA survey thereof complying with the
provisions of Section 5.1(m), together with a surveyor’s
certificate and (y) any consents or estoppels reasonably
deemed necessary or advisable by the Administrative Agent in
connection with such Mortgage to the extent that such consents or
estoppels may be obtained using reasonable efforts without payment
of money and without obligation to commence litigation, each of the
foregoing in form and substance reasonably satisfactory to the
Administrative Agent and (iii) if requested by the
Administrative Agent, deliver to the Administrative Agent legal
opinions relating to the matters described above, which opinions
shall be in form and substance, and from counsel, reasonably
satisfactory to the Administrative Agent.
84
(d) With
respect to any fee interest (or leasehold interest, to the extent
such leasehold is created under a triple net ground lease or
similar transaction) in any real property having a value (together
with improvements thereof) of at least $250,000 acquired by any
Canadian Subsidiary (including the Canadian Borrower) (other than
any such real property subject to a Lien expressly permitted by
Section 7.3(g)), at least five Business Days prior to
acquisition, deliver to the Administrative Agent a Phase I
Environmental Site Assessment, in form and substance reasonably
satisfactory to the Administrative Agent, and such other
documentation relating to the environmental condition of the
Property as reasonably requested by the Administrative Agent, and,
upon acquisition, promptly (i) execute and deliver a first
priority Mortgage (except for Permitted Liens and Liens otherwise
allowed under the Mortgages) in favor of the Administrative Agent
or the Canadian Collateral Agent, as applicable,, for the benefit
of the Secured Parties, covering such real property, (ii) if
requested by the Administrative Agent, provide the Secured Parties
with a satisfactory title opinion covering such real property and
any consents or estoppels reasonably deemed necessary or advisable
by the Administrative Agent in connection with such Mortgage to the
extent that such consents or estoppels may be obtained using
reasonable efforts without payment of money and without obligation
to commence litigation, each of the foregoing in form and substance
reasonably satisfactory to the Administrative Agent and
(iii) if requested by the Administrative Agent, deliver to the
Administrative Agent legal opinions relating to the matters
described above, which opinions shall be in form and substance, and
from counsel, reasonably satisfactory to the Administrative Agent.
(e) With
respect to any new Subsidiary of the US Borrower (other than an
Excluded Foreign Subsidiary) created or acquired after the Closing
Date (which, for the purposes of this paragraph, shall include any
existing Subsidiary of the US Borrower that ceases to be an
Excluded Foreign Subsidiary), by any Group Member, promptly
(i) execute and deliver to the Administrative Agent such
amendments to the Security Documents as the Administrative Agent
deems necessary or advisable to grant to the Administrative Agent,
for the benefit of the Secured Parties, a perfected first priority
security interest in the Capital Stock of such new Subsidiary that
is owned by any Group Member, (ii) deliver to the
Administrative Agent the certificates representing such Capital
Stock, together with undated stock powers, in blank, executed and
delivered by a duly authorized officer of the applicable Group
Member, (iii) cause such new Subsidiary (A) to become a
party to the applicable Security Documents and (B) to take
such actions necessary or advisable to grant to the Administrative
Agent for the benefit of the Secured Parties a perfected first
priority security interest in the Collateral described in the
Security Documents with respect to such new Subsidiary, including,
without limitation, the recording of instruments in the United
States Patent and Trademark Office, the United States Copyright
Offices and the Canadian Intellectual Property Office, the
execution and delivery by all necessary persons of control
agreements, and the filing of financing statements under applicable
Personal Property Security Legislation in such jurisdictions as may
be required by the Security Documents or by law or as may be
requested by the Administrative Agent, (iv) if requested by
the Administrative Agent, a report in scope and substance
comparable to a Phase I Environmental Site Assessment on the
environmental condition of the Property owned, leased or operated
by such new Subsidiary and (v) if requested by the
Administrative Agent, deliver to the Administrative Agent legal
opinions relating to the matters described above, which opinions
shall be in form and substance, and from counsel, reasonably
satisfactory to the Administrative Agent.
85
(f) With
respect to any Excluded Foreign Subsidiary created or acquired
after the Closing Date by the US Borrower or any of its
Subsidiaries (other than by any Excluded Foreign Subsidiary),
promptly (i) execute and deliver to the Administrative Agent
such amendments to the Security Documents or such other documents
as the Administrative Agent deems necessary or advisable in order
to grant to the Administrative Agent, for the benefit of the
Secured Parties, a perfected first priority security interest in
all of the Capital Stock of such new Subsidiary that is owned by
any Loan Party, ( provided that in no event shall more than
65% of the total voting outstanding Capital Stock of any such
Excluded Foreign Subsidiary be required to be so pledged),
(ii) deliver to the Administrative Agent the certificates
representing such Capital Stock, together with irrevocable proxies,
undated stock powers, in blank, executed and delivered by a duly
authorized officer of the applicable Group Member, and take such
other action as may be necessary or, in the opinion of the
Administrative Agent, desirable to perfect the Lien of the
Administrative Agent thereon, and (iii) if requested by the
Administrative Agent, deliver to the Administrative Agent legal
opinions relating to the matters described above, which opinions
shall be in form and substance, and from counsel, reasonably
satisfactory to the Administrative Agent.
(g) Notwithstanding
anything to the contrary in this Section 6.10, with respect to
any leasehold interest required to be encumbered with a first
priority Mortgage pursuant to paragraphs (c) or (d) of
this Section 6.10, (i) the Borrowers shall use
commercially reasonable efforts (excluding commencing litigation)
to obtain (y) (1) a memorandum or notice of lease in
recordable (or registrable) form with respect to such leasehold
interest, executed and acknowledged by the lessor of such leasehold
interest, or (2) evidence that the applicable lease with
respect to such leasehold interest or a memorandum or notice
thereof has been recorded (or registered) in all places necessary,
in the Administrative Agent’s reasonable judgment, to give
constructive notice to third-party purchasers of such leasehold
interest, and (z) any lessor consent or approval of such
Mortgage as may be required pursuant to the terms of the applicable
lease with respect to such leasehold interest, and (ii) if the
Borrowers shall fail to obtain the documents referred to in clauses
(y) or (z) above with respect to any such leasehold
interest, after using commercially reasonable efforts to do so, the
Borrowers shall have no further obligation to comply with
paragraphs (c) or (d) of this Section 6.10 with
respect to the applicable leasehold interest. The Borrowers shall
promptly, upon request, provide the Administrative Agent with a
report in reasonable detail summarizing the commercially reasonable
efforts undertaken to obtain the items referenced in this
Section 6.10(g).
(h) Notwithstanding
anything to the contrary in this Section 6.10, paragraphs (a),
(b), (c), (d), (e) and (f) of this Section 6.10
shall not apply to any Property, new Subsidiary of the US Borrower
or new Excluded Foreign Subsidiary created or acquired after the
Closing Date, as applicable, as to which the Administrative Agent
has determined in its sole discretion that the collateral value
thereof is insufficient to justify the difficulty, time and/or
expense of obtaining a perfected security interest therein.
6.11
Use of Proceeds . Use the proceeds of the Loans only for the
purposes specified in Section 4.16.
6.12
Pension and Benefits Plans .
86
(a)
ERISA Documents . The US Borrower will cause to be delivered
to the Administrative Agent, promptly upon the Administrative
Agent’s request, any or all of the following: (i) a copy
of each Single Employer Plan; (ii) the most recent
determination letter issued by the Internal Revenue Service with
respect to each Plan (other than any Plan of a Commonly Controlled
Entity); (iii) for the most recent plan year preceding the
Administrative Agent’s request, Annual Reports on
Form 5500 Series required to be filed with any governmental
agency for each Single Employer Plan; (iv) a listing of all
Multiemployer Plans, with the aggregate amount of the most recent
annual contributions required to be made by the US Borrower or any
Commonly Controlled Entity to each such Plan and copies of the
collective bargaining agreements requiring such contributions;
(v) any information that has been provided to the US Borrower
or any Commonly Controlled Entity regarding withdrawal liability
under any Multiemployer Plan; (vi) the aggregate amount of
payments made under any employee welfare benefit plan (as defined
in Section 3(1) of ERISA) to any retired employees of the US
Borrower or any of its Subsidiaries (or any dependents thereof)
during the most recently completed fiscal year; and
(vii) documents reflecting any agreements between the PBGC and
the US Borrower or any Commonly Controlled Entity with respect to
any Plan.
(b)
Canadian Pension Plans and Canadian Benefit Plans .
(i)
Each Group Member shall use its commercially reasonable efforts to
obtain and to provide the Administrative Agent with written
confirmation from the applicable Governmental Authorities that each
Canadian Pension Plan adopted by any Group Member which is required
to be registered under the Income Tax Act (Canada) or any
other Requirement of Law has been registered. From and after the
adoption and registration of any Canadian Pension Plan and subject
to any power or right to terminate a Canadian Pension Plan in whole
or in part, each Group Member shall use commercially reasonable
efforts to ensure that the plan retains its registered status under
and is administered in all material respects in accordance with the
applicable pension plan text, funding agreement, the Income Tax
Act (Canada) and all other Requirements of Law.
(ii)
Each Group Member shall cause all reports and disclosures relating
to any Canadian Pension Plan that are required by the plan or any
Requirement of Law to be filed or distributed in a timely manner.
(iii)
Each Group Member shall perform in all material respects all
obligations (including (if applicable), funding, investment and
administration obligations) required to be performed by it in
connection with each Canadian Pension Plan and Canadian Benefit
Plan and the funding media therefor; make all contributions and pay
all premiums required to be made or paid by it in accordance with
the terms of the plan and all Requirements of Law and withhold by
way of authorized payroll deductions or otherwise collect and pay
into the plan all employee contributions required to be withheld or
collected by it in accordance with the terms of the plan and all
Requirements of Law; and ensure that, except as could not
reasonably be expected to result in a Material Adverse Effect, to
the extent that the Group Member has a Canadian Pension Plan which
is a defined benefit pension plan, that such plan is fully funded,
both on an ongoing basis and on a solvency basis (using actuarial
methods and assumptions which are consistent
87
with the valuations last filed with the applicable Governmental
Authorities and which are consistent with generally accepted
actuarial principles).
(iv)
The Canadian Borrower shall deliver to the Administrative Agent,
(A) promptly on request, copies of each annual and other
return, report or valuation with respect to each Canadian Pension
Plan filed by any Group Member with any applicable Governmental
Authority; (B) promptly on request, a copy of any material
direction, order or notice that any Group Member may receive from
any applicable Governmental Authority with respect to any Canadian
Pension Plan; and (C) notification within 30 days of any
material increases in the benefits of any existing Canadian Pension
Plan or Canadian Benefit Plan, or the establishment of any new
Canadian Pension Plan or Canadian Benefit Plan, or the commencement
of contributions to any Canadian Pension Plan or Canadian Benefit
Plan to which it was not previously contributing.
6.13
Further Assurances . (a) From time to time execute and
deliver, or cause to be executed and delivered, such additional
instruments, certificates or documents, and take all such actions,
as the Administrative Agent may reasonably request for the purposes
of implementing or effectuating the provisions of this Agreement
and the other Loan Documents, or of more fully perfecting or
renewing the rights of the Administrative Agent and the Lenders
with respect to the Collateral (or with respect to any additions
thereto or replacements or proceeds or products thereof or with
respect to any other property or assets hereafter acquired by any
Group Member which may be deemed to be part of the Collateral)
pursuant hereto or thereto. Upon the exercise by the Administrative
Agent or any Lender of any power, right, privilege or remedy
pursuant to this Agreement or the other Loan Documents which
requires any consent, approval, recording, qualification or
authorization of any Governmental Authority, the US Borrower will
execute and deliver, or will cause the execution and delivery of,
all applications, certifications, instruments and other documents
and papers that the Administrative Agent or such Lender may be
required to obtain from the US Borrower or any of its Subsidiaries
for such governmental consent, approval, recording, qualification
or authorization.
(b) Preserve
and protect the Lien status of each respective Mortgage and, if any
Lien (other than unrecorded Liens permitted under Section 7.3
that arise by operation of law and other Liens permitted under
Section 7.3(f)) is asserted against a Mortgaged Property,
promptly and at its expense, give the Administrative Agent a
detailed written notice of such Lien and pay the underlying claim
in full or take such other action so as to cause it to be released
or bonded over in a manner satisfactory to the Administrative
Agent.
6.14
Maintenance of Ratings . At all times, use commercially
reasonable efforts to maintain a corporate family rating and a
rating with respect to its senior secured debt issued by
Moody’s and a corporate rating and a rating with respect to
its senior secured debt issued by S&P.
6.15
Quebec Subsidiary . At all times, cause the Quebec
Subsidiary to (a) be maintained as an inactive Subsidiary,
(b) have no material assets and (c) generate no material
portion of Consolidated EBITDA, in each case, until the dissolution
of the Quebec Subsidiary.
6.16
Post Closing Obligations .
88
(a) Within
30 days from the acquisition of any ongoing business permitted
by Section 7.8 (g) or (i), or such later date as may
reasonably be agreed to by the Administrative Agent, file all
notices required in connection with the transfer of Permits related
to such acquisition with the applicable Governmental Authority and
send the Administrative Agent copies thereof.
(b) Within
30 days of the Closing Date, or such later date as may
reasonably be agreed to by the Administrative Agent, the Borrowers
agree to provide all such documents referenced in Schedule 6.15.
SECTION 7. NEGATIVE COVENANTS
Each
Borrower hereby jointly and severally agrees that, so long as the
Commitments remain in effect, any Letter of Credit remains
outstanding or any Loan or other amount is owing to any Lender, any
Agent or any Arranger hereunder, each Borrower shall not, and shall
not permit any of its Subsidiaries to, directly or indirectly:
7.1
Financial Condition Covenants .
(a)
Consolidated Leverage Ratio . Permit the Consolidated
Leverage Ratio as at the last day of any period of four consecutive
fiscal quarters of the US Borrower ending with the last day of any
fiscal quarter set forth below to exceed the ratio set forth below
opposite such fiscal quarter.
|
|
|
|
|
|
|
Fiscal Quarter
|
|
Consolidated Leverage Ratio
|
|
FQ3 2008
|
|
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4.50 : 1.00
|
|
|
FQ4 2008
|
|
|
4.50 : 1.00
|
|
|
FQ1 2009
|
|
|
4.50 : 1.00
|
|
|
FQ2 2009
|
|
|
4.50 : 1.00
|
|
|
FQ3 2009
|
|
|
4.25 : 1.00
|
|
|
FQ4 2009
|
|
|
4.25 : 1.00
|
|
|
FQ1 2010
|
|
|
4.25 : 1.00
|
|
|
FQ2 2010
|
|
|
4.25 : 1.00
|
|
|
FQ3 2010
|
|
|
4.00 : 1.00
|
|
|
FQ4 2010
|
|
|
4.00 : 1.00
|
|
|
FQ1 2011
|
|
|
4.00 : 1.00
|
|
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FQ2 2011
|
|
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4.00 : 1.00
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|
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FQ3 2011 and thereafter
|
|
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3.75 : 1.00
|
|
(b)
Consolidated Senior Secured Leverage Ratio . Permit the
Consolidated Senior Secured Leverage Ratio as at the last day of
any period of four consecutive fiscal quarters of the US Borrower
ending with the last day of any fiscal quarter to exceed 2.75:
1.00; provided that, if at any time the Senior Subordinated
Notes are refinanced with senior Indebtedness, the maximum
Consolidated Senior Secured Leverage Ratio with respect to each
fiscal quarter for which compliance with this Section 7.1(a)
is tested after the date of such refinancing shall be 2.50 :
1.00.
89
(c)
Consolidated Interest Coverage Ratio . Permit the
Consolidated Interest Coverage Ratio for any period of four
consecutive fiscal quarters of the US Borrower ending with the last
day of any fiscal quarter set forth below to be less than
(i) 2.50 : 1.00 as at the last day of each fiscal quarter
ending prior to FQ3 2009 and (ii) 2.75 : 1.00 as at the last
day of FQ3 2009 and each fiscal quarter thereafter.
7.2
Limitation on Indebtedness . Create, incur, assume or suffer
to exist any Indebtedness, except:
(a) Indebtedness
of any Loan Party pursuant to any Loan Document;
(b) Indebtedness
of (i) any Borrower or any Subsidiary Guarantor to any Group
Member, (ii) to the extent constituting an Investment
permitted under Section 7.8, any Subsidiary that is not a
Subsidiary Guarantor to any Borrower or any Subsidiary Guarantor,
provided that all such Indebtedness shall be subject to
Section 10.19, and (iii) any Subsidiary that is not a
Subsidiary Guarantor to any other Subsidiary that is not a
Subsidiary Guarantor;
(c) Indebtedness
(including, without limitation, Capital Lease Obligations) secured
by Liens permitted by Section 7.3(g) in an aggregate
principal amount not to exceed $25,000,000 at any one time
outstanding;
(d) Indebtedness
outstanding on the Closing Date and listed on
Schedule 7.2(d) and any refinancings, refundings,
renewals or extensions thereof (without any increase in the
principal amount thereof or any shortening of the maturity of any
principal amount thereof (other than by fees and expenses incurred
in connection with such refinancing and interest with respect
thereto being capitalized));
(e) Guarantee
Obligations made in the ordinary course of business by any Group
Member of Indebtedness of any Loan Party;
(f) Indebtedness
of any Group Member acquired pursuant to, or assumed in connection
with, any Permitted Acquisition under Section 7.8(g);
provided that such Indebtedness was not incurred (x) to
provide all or a portion of the funds utilized to consummate the
transaction or series of related transactions constituting such
Permitted Acquisition or (y) otherwise in connection with, or
in contemplation of, such Permitted Acquisition; and
provided , further , that after giving effect to the
incurrence of any such Indebtedness (and any substantially
concurrent repayment of Obligations or consummation of a Permitted
Acquisition) on a pro forma basis, as if such Indebtedness (and any
substantially concurrent repayment of Obligations or consummation
of a Permitted Acquisition) had been incurred on the first day of
the twelve-month period ending on the last day of the US
Borrower’s then most recently completed fiscal quarter for
which financial statements are available, the US Borrower and its
Subsidiaries would have been in compliance with all the financial
covenants set forth in Section 7.1 and the US Borrower shall
have delivered to the Administrative Agent a certificate of a
Responsible Officer of the US Borrower to such effect setting forth
in reasonable detail the computations necessary to determine such
compliance, and (ii) any refinancings, refundings, renewals or
extensions thereof (without any increase in the principal amount
thereof or shortening of the maturity of any principal amount
thereof (other than by fees and expenses
90
incurred and interest to be capitalized in connection with such
refinancing) and on other material terms no less favorable to the
applicable Group Member);
(g)
(i) unsecured subordinated Indebtedness of either Borrower,
the proceeds of which are used either (x) to repay the
Obligations hereunder or (y) to consummate Permitted
Acquisitions and (ii) unsecured subordinated Indebtedness of
either Borrower in an aggregate principal amount not to exceed
$5,000,000, the proceeds of which may be used for general corporate
purposes, provided that such amount may be increased to
$100,000,000 if (x) prior to and after giving effect to the
incurrence of such Indebtedness the Consolidated Leverage Ratio is
less than 4.25 to 1.00 or, if less, the then applicable maximum
Consolidated Leverage Ratio under Section 7.1(a) and
(y) the proceeds thereof are used to consummate Permitted
Acquisitions or for Capital Expenditures in respect of new
landfills; provided , further , that, in the case of
clauses (i) and (ii), (x) such Indebtedness is issued on
customary market terms and conditions (including subordination
terms) reasonably satisfactory to the Administrative Agent,
(y) no Default or Event of Default exists and is continuing at
the time of issuance thereof and (z) no part of the principal
part of such Indebtedness shall have a maturity date earlier than
the 91st day after the final maturity of the Term Loans hereunder;
(h)
(i) Indebtedness of the US Borrower in respect of the Senior
Subordinated Notes in an aggregate principal amount not to exceed
$160,000,000 and any subordinated Indebtedness of the US Borrower
that refinances the Senior Subordinated Notes (including pursuant
to a defeasance, discharge or redemption mechanism);
provided that (w) such Indebtedness does not increase
the principal amount thereof (other than by the amount of call
premiums or accrued and unpaid interest payable on the Senior
Subordinated Notes in connection with such refinancing and fees in
connection therewith), (x) such Indebtedness is issued on
customary market terms and conditions (including subordination
terms) reasonably satisfactory to the Administrative Agent,
(y) no Default or Event of Default exists and is continuing at
the time of issuance thereof and (z) no part of the principal
part of such Indebtedness shall have a maturity date earlier than
the 91st day after the final maturity of the Term Loans hereunder;
and (ii) Guarantee Obligations of any Subsidiary Guarantor in
respect of such Indebtedness, provided that such Guarantee
Obligations are subordinated to the obligations of such Subsidiary
Guarantor under the Guarantee and US Collateral Agreement to the
same extent as the obligations of the US Borrower in respect of the
Senior Subordinated Notes are subordinated to the Obligations;
(i) Indebtedness
of any Group Member consisting of unsecured guarantees or other
unsecured credit support obligations on customary market terms,
including terms reasonably acceptable to the Administrative Agent,
in respect of IRB Transactions in an aggregate amount not to exceed
$20,000,000 at any one time outstanding;
(j) Indebtedness
of any Group Member consisting of guarantees or other credit
support obligations on customary market terms in respect of IRB
Transactions; provided that such guarantees or other credit
obligations are supported by one or more Letters of Credit;
(k) Indebtedness
issued to insurance companies to finance insurance premiums payable
to such insurance companies in connection with insurance policies
purchased by a Loan
91
Party in the ordinary course of business in an aggregate amount
not to exceed $15,000,000 at any time outstanding; and
(l) additional
Indebtedness of any Group Member in an aggregate principal amount
not to exceed $7,500,000 at any one time outstanding.
7.3
Limitation on Liens . Create, incur, assume or suffer to
exist any Lien upon any of its Property, whether now owned or
hereafter acquired, except for:
(a) Liens
for taxes, assessments and governmental charges not yet due or
which are being contested in good faith by appropriate proceedings,
provided that adequate reserves with respect thereto are
maintained on the books of the applicable Group Member in
conformity with GAAP;
(b) carriers’,
warehousemen’s, mechanics’, materialmen’s,
repairmen’s or other like Liens arising in the ordinary
course of business which are not overdue for a period of more than
30 days or that are being contested in good faith by
appropriate proceedings; provided that adequate reserves
with respect thereto are maintained in the books of the applicable
Group Member, in conformity with GAAP;
(c) pledges
or deposits in connection with workers’ compensation,
unemployment insurance and other social security legislation;
(d) deposits
by or on behalf of any Group Member and subordinated security
interests on assets related to a particular performance bond
granted to the surety providing such performance bond, in each
case, to secure the performance of bids, trade contracts (other
than for borrowed money), leases, statutory obligations, surety and
appeal bonds, performance bonds and other obligations of a like
nature incurred in the ordinary course of business, so long as the
aggregate amount of deposits at any one time outstanding securing
appeal bonds does not exceed $5,000,000;
(e) easements,
rights-of-way, restrictions and other similar encumbrances incurred
in the ordinary course of business and any Liens permitted or
excepted in the Mortgages that, in the aggregate, do not in any
case materially detract from the value of the Property subject
thereto or materially interfere with the ordinary conduct of the
business of the Group Members;
(f) Liens
in existence on the Closing Date listed on
Schedule 7.3(f) ; provided that no such Lien is
spread to cover any additional Property after the Closing Date and
that the amount secured thereby is not increased;
(g) Liens
securing Indebtedness of any Group Member incurred pursuant to
Section 7.2(c) to finance the acquisition of fixed or
capital assets, provided that (i) such Liens shall be
created substantially simultaneously with the acquisition of such
fixed or capital assets, (ii) such Liens do not at any time
encumber any Property other than the Property financed by such
Indebtedness, (iii) the amount of Indebtedness secured thereby
is not increased and (iv) the amount of Indebtedness initially
secured thereby is not more than 100% of the purchase price of such
fixed or capital asset;
92
(h) Liens
created pursuant to the Security Documents;
(i) any
interest or title of a lessor under any lease entered into by any
Group Member in the ordinary course of its business and covering
only the assets so leased;
(j) advance
deposits (including extension payments) arising after the Closing
Date in connection with any Investment permitted by
Section 7.8(g);
(k) Liens
on the property or assets of a Person which becomes a Subsidiary of
a Borrower after the Closing Date, or is acquired by a Borrower or
any of its Subsidiaries after the Closing Date, securing
Indebtedness permitted by Section 7.2(f); provided that
(i) such Liens existed at the time such Person became a
Subsidiary of a Borrower, (ii) such Liens were not granted in
connection with or in contemplation of the applicable Permitted
Acquisition and (iii) the amount of Indebtedness secured
thereby is not increased (except as expressly provided in
Section 7.2(f)) and such Liens are not expanded to cover
additional Property (other than proceeds thereof);
(l) Liens
on unearned premiums in respect of insurance policies securing
insurance premium financing permitted under Section 7.2(k);
and
(m) Liens
not otherwise permitted by this Section 7.3 so long as neither
(i) the aggregate outstanding principal amount of the
obligations secured thereby nor (ii) the aggregate fair market
value (determined, in the case of each such Lien, as of the date
such Lien is incurred) of the assets subject thereto exceeds
$5,000,000 at any one time.
7.4
Limitation on Fundamental Changes . Enter into any merger,
consolidation or amalgamation, or liquidate, wind up or dissolve
itself (or suffer any liquidation or dissolution), or Dispose of
all or substantially all of its Property or business, except that:
(a) any
Solvent Subsidiary of a Borrower may be merged or consolidated with
or into such Borrower ( provided that such Borrower shall be
the continuing or surviving corporation) or with or into any Wholly
Owned Subsidiary Guarantor ( provided that (i) such
Subsidiary Guarantor shall be the continuing or surviving
corporation or (ii) simultaneously with such transaction, the
continuing or surviving corporation shall become a Subsidiary
Guarantor and the Borrowers shall comply with Section 6.10 in
connection therewith);
(b) any
Subsidiary of the Borrowers may Dispose of any or all of its assets
(upon voluntary liquidation or otherwise) to any Loan Party;
(c) any
Borrower or any Subsidiary of any Borrower may merge with any
Person in connection with an acquisition permitted by
Section 7.8(g), so long as (i) if such transaction
involves a Borrower, such Borrower is the continuing or surviving
corporation and (ii) if such transaction involves any
Subsidiary of a Borrower, the surviving corporation must be or
become a Subsidiary Guarantor; and
(d) any
Subsidiary may Dispose of its assets (by merger, consolidation,
dissolution or otherwise) in a transaction permitted, in its
entirety, by Section 7.5.
93
7.5
Limitation on Disposition of Property . Dispose of any of
its Property (including, without limitation, receivables and
leasehold interests), whether now owned or hereafter acquired, or,
in the case of any Subsidiary of the US Borrower, issue or sell any
shares of such Subsidiary’s Capital Stock to any Person,
except:
(a) the
Disposition of obsolete or worn out property in the ordinary course
of business;
(b) Dispositions
permitted by Section 7.4(b);
(c) the
sale or issuance of any Subsidiary’s Capital Stock to any
Loan Party;
(d) the
Disposition of assets not otherwise permitted to be Disposed of
pursuant to this Section 7.5 having a fair market value of
$40,000,000, in the aggregate for any fiscal year of the US
Borrower;
(e) the
Dispositions listed on Schedule 7.5(e) ;
(f) the
issuance and exchange of shares of the Capital Stock of the
Canadian Borrower and the US Borrower as part of the Migration
(including, without limitation, issuances of Capital Stock of the
US Borrower from time to time in exchange for the Exchangeable
Shares);
(g) an
exchange or "swap" of fixed, tangible assets of any Group Member
for the assets of a Person other than another Group Member in the
ordinary course of business; provided that (i) the
assets received by such Group Member will be used or useful in such
Group Member’s business and (ii) such Group Member
received reasonable equivalent value for such assets, such
equivalent value to be demonstrated to the reasonable satisfaction
of the Administrative Agent; provided further that
the fair market value of all such assets of the Group Members
exchanged or "swapped" in any fiscal year of the US Borrower does
not exceed $50,000,000; and
(h) as
a result of any Recovery Event.
7.6
Limitation on Restricted Payments . Declare or pay any
dividend on, or make any payment on account of, or set apart assets
for a sinking or other analogous fund for, the purchase,
redemption, defeasance, retirement or other acquisition of, any
Capital Stock of any Group Member, whether now or hereafter
outstanding, or make any other distribution in respect thereof,
either directly or indirectly, whether in cash or property or in
obligations of any Group Member, or enter into any derivatives or
other transaction with any financial institution, commodities or
stock exchange or clearinghouse (a " Derivatives
Counterparty ") obligating any Group Member to make payments to
such Derivatives Counterparty as a result of any change in market
value of any such Capital Stock (collectively, " Restricted
Payments "), except that:
(a) any
Subsidiary of a Borrower (including the Canadian Borrower) may make
Restricted Payments to such Borrower or any Subsidiary
Guarantor;
94
(b) so
long as no Default or Event of Default shall have occurred and be
continuing, the US Borrower may purchase its common stock or common
stock options from present or former officers or employees of any
Group Member upon the death, disability or termination of
employment of such officer or employee, provided , that the
aggregate amount of payments under this clause (d) subsequent to
the Closing Date (net of any proceeds received by the US Borrower
subsequent to the Closing Date in connection with resales of any
common stock or common stock options so purchased) shall not exceed
$100,000;
(c)
[reserved];
(d) the
shares of Capital Holdings Company held by the US Borrower may be
converted into interest bearing intercompany Indebtedness;
(e) a
Borrower may make Restricted Payments to repurchase or redeem its
common stock if no Default or Event of Default has occurred and is
continuing and the US Borrower’s Consolidated Leverage Ratio
pro forma for any repurchase or redemption pursuant to this clause
7.6(e) and any related transactions is less than 3.50:1.00,
and the aggregate amount of such Restricted Payments (i) from
the period beginning on the Closing Date until the first
anniversary of the Closing Date does not exceed $5,000,000 and
(ii) does not exceed $25,000,000 at any time; and
(f) a
Borrower may pay to holders of its common shares and warrants
issued in connection with any Permitted Acquisition up to $150,000
per month for up to four months as a penalty for the failure to
register such common shares and warrants within the time frame
agreed upon with such holders.
7.7
Limitation on Capital Expenditures . Make or commit to make
any Capital Expenditure, except (a) Capital Expenditures of
the Group Members in the ordinary course of business not exceeding
(i) $68,000,000 during fiscal year 2008 and (ii) $60,000,000 during
fiscal year 2009 and each fiscal year thereafter plus, in each
fiscal year, 10.0% of revenues for the immediately preceding fiscal
year from any Permitted Acquisitions or any exchange or "swap" as
permitted by Section 7.5(g), (b) Capital Expenditures
made with the proceeds of any Reinvestment Deferred Amount and
(c) the acquisition of capital assets pursuant to any
Acquisition Documentation.
7.8
Limitation on Investments . Make any advance, loan,
extension of credit (by way of guaranty or otherwise) or capital
contribution to, or purchase any Capital Stock, bonds, notes,
debentures or other debt securities of, or any assets constituting
an ongoing business from, or make any other investment in, any
other Person (all of the foregoing, " Investments "),
except:
(a) extensions
of trade credit in the ordinary course of business;
(b) investments
in Cash Equivalents;
(c) Investments
arising in connection with the incurrence of Indebtedness permitted
by Section 7.2(b)(i) and (iii) and 7.2(e);
95
(d) loans
and advances to employees of any Group Member in the ordinary
course of business (including, without limitation, for travel,
entertainment and relocation expenses) in an aggregate amount for
all Group Members not to exceed $100,000 at any one time
outstanding;
(e) Investments
in assets useful in a Group Member’s business made by such
Group Member with the proceeds of any Reinvestment Deferred Amount;
(f) Investments
(other than those relating to the incurrence of Indebtedness
permitted by Section 7.8(c)) by any Group Member in a Borrower
or any Person that, prior to such Investment, is a Subsidiary
Guarantor;
(g) in
addition to Investments otherwise expressly permitted by this
Section, Investments by the Canadian Borrower, the US Borrower or
any Guarantor constituting acquisitions of other Persons in the
same or similar line of business as the Group Members (a "
Permitted Acquisition "); provided that
(i)
immediately prior to and after giving effect to any such Permitted
Acquisition, (x) no Default or Event of Default has occurred
and is continuing and (y) the US Borrower shall be in pro
forma compliance with the financial covenants set forth in
Section 7.1, and, with respect to the Consolidated Leverage
Ratio and Consolidated Senior Secured Leverage Ratio, such pro
forma Consolidated Leverage Ratio and Consolidated Senior Secured
Leverage Ratio will be at least 0.25 to 1.00 less than the
Consolidated Leverage Ratio and the Consolidated Senior Secured
Leverage Ratio, respectively, otherwise required at the time, and
the US Borrower shall have certified each of the same to the
Administrative Agent in writing;
(ii) if
such Permitted Acquisition is structured as a stock acquisition, or
a merger or consolidation, then either (A) the Person so
acquired becomes a Wholly Owned Subsidiary of the US Borrower or
(B) such Person is merged with and into either the US Borrower
or a Wholly Owned Subsidiary of the US Borrower (with the US
Borrower or such Subsidiary of the US Borrower being the surviving
corporation in such merger);
(iii)
all of the provisions of Section 6.10 have been or will be
complied with in respect of such Permitted Acquisition and, if the
purchase price for such Permitted Acquisition exceeds $5,000,000,
the Acquisition Documentation with respect to any such Permitted
Acquisition shall have been delivered to the Administrative Agent;
(iv)
the aggregate purchase price for all such Permitted Acquisitions
shall not exceed (x) $60,000,000 per fiscal year or
(y) $30,000,000 for any single Permitted Acquisition;
(v)
immediately after consummation of such Permitted Acquisition, the
aggregate amount of Available Revolving Credit Commitments shall be
equal to or greater than $10,000,000.
(h) Investments
in Specified Hedge Agreements permitted by Section 7.16;
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(i) in
addition to Investments otherwise expressly permitted by this
Section, Investments by any Group Member in an aggregate amount
(valued at cost) not to exceed $3,500,000 in the aggregate, after
taking into account recoveries, returns, repayments, interest and
other payments and distributions received in cash thereon by any
Loan Party, at any time outstanding during the term of this
Agreement;
(j) Investments
consisting of asset swaps or exchanges permitted by
Section 7.5(g);
(k) Investments
consisting of promissory notes and deferred payment obligations
received in connection with a Disposition permitted by
Section 7.5(d) in an aggregate principal amount not to
exceed $5,000,000 in the aggregate, after taking into account
recoveries, returns, repayments, interest and other payments and
distributions received in cash thereon by any Loan Party, at any
time outstanding during the term of this Agreement; and
(l) Investments
consisting of deferred payment obligations in connection with the
acquisition of the Freedom Recycling landfill and transfer station
development projects.
7.9
Limitation on Optional Payments and Modifications of Debt
Instruments and Other Agreements . (a) Make or offer to
make any optional or voluntary payment, prepayment, repurchase or
redemption of, or otherwise voluntarily or optionally defease the
Senior Subordinated Notes or any refinancing thereof pursuant to
Section 7.2(h), or segregate funds for any such payment,
prepayment, repurchase, redemption or defeasance, or enter into any
derivative or other transaction with any Derivatives Counterparty
obligating any Group Member to make payments to such Derivatives
Counterparty as a result of any change in market value of the
Senior Subordinated Notes other than refinancings permitted by
Section 7.2(h).
(b) Make
or offer to make any optional or voluntary payment, prepayment,
repurchase or redemption of, or otherwise voluntarily or optionally
defease any Indebtedness incurred pursuant to
Sections 7.2(f) (except as expressly permitted thereby or
except in connection with a sale of the underlying asset which
repays such Indebtedness in full) or (g) or segregate funds
for any such payment, prepayment, repurchase, redemption or
defeasance (any such payment, prepayment, repurchase,
redemption or defeasance, collectively, a " Restricted Debt
Repayment ") unless (x) no Default or Event of Default has
occurred and is continuing and (y) the US Borrower’s
Consolidated Leverage Ratio pro forma for any Restricted Debt
Repayment pursuant to this clause 7.9(b) and any related
transaction is less than 4.00:1.00.
(c) Amend,
modify or otherwise change, or consent or agree to any amendment,
modification, waiver or other change to, any of the terms of the
Senior Subordinated Notes or any refinancing thereof pursuant to
Section 7.2(h), or any Indebtedness incurred pursuant to
Sections 7.2(f) or (g) (other than any such
amendment, modification, waiver or other change which
(i) would extend the maturity or reduce the amount of any
payment of principal thereof, reduce the rate or extend the date
for payment of interest thereon or relax any covenant or other
restriction applicable to the Group Members and (ii) does not
involve the payment of a consent fee).
(d) Designate
any Indebtedness (other than the Obligations) as "Designated
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Senior Indebtedness" for purposes of the Senior Subordinated
Note Indenture.
(e) Amend
its certificate of incorporation, by-laws or other governing
documents in any manner determined by the Administrative Agent to
be adverse to the Lenders.
7.10
Limitation on Transactions with Affiliates . Except as set
forth on Schedule 7.10 , enter into any transaction,
including, without limitation, any purchase, sale, lease or
exchange of Property, the rendering of any service or the payment
of any management, advisory or similar fees, with any Affiliate
(other than a Loan Party) unless such transaction is
(a) (i) otherwise not prohibited by this Agreement,
(ii) in the ordinary course of business of such Group Member
and (iii) upon fair and reasonable terms no less favorable to
such Group Member than it would obtain in a comparable arm’s
length transaction with a Person that is not an Affiliate, or
(c) expressly permitted by Section 7.6.
7.11
Limitation on Sales and Leasebacks . Enter into any
arrangement with any Person providing for the leasing by any Group
Member of real or personal property which has been or is to be sold
or transferred by such Group Member to such Person or to any other
Person to whom funds have been or are to be advanced by such Person
on the security of such property or rental obligations of such
Group Member, except for any arrangement with respect to which the
sale of such real or personal property was permitted by
Section 7.5 and the capitalized lease created in connection
therewith was permitted by Section 7.2.
7.12
Limitation on Changes in Fiscal Periods . Permit the fiscal
year of the US Borrower to end on a day other than December 31
or change the US Borrower’s method of determining fiscal
quarters.
7.13
Limitation on Negative Pledge Clauses . Enter into or suffer
to exist or become effective any agreement that prohibits or limits
the ability of any Group Member to create, incur, assume or suffer
to exist any Lien upon any of its Property or revenues, whether now
owned or hereafter acquired, to secure the Obligations or, in the
case of any other Loan Party, its obligations under the Guarantee
and US Collateral Agreement or the Canadian Collateral Agreement,
other than (a) this Agreement and the other Loan Documents,
(b) any agreements governing any purchase money Liens or
Capital Lease Obligations otherwise permitted hereby (in which
case, any prohibition or limitation shall only be effective against
the assets financed thereby), (c) any agreements governing
Indebtedness permitted by Sections 7.2 (c), (d) or
(f) (in which case any such prohibition shall only be
effective against the assets permitted to be subject to Liens
permitted by Sections 7.3(f), (g) or (k), as applicable),
(d) the Senior Subordinated Note Indenture and
(e) provisions in leases that restrict the transfer of such
lease by the lessee.
7.14
Limitation on Restrictions on Subsidiary Distributions .
Enter into or suffer to exist or become effective any consensual
encumbrance or restriction on the ability of any Subsidiary to
(a) make Restricted Payments in respect of any Capital Stock
of such Subsidiary held by, or pay or subordinate any Indebtedness
owed to any other Group Member, (b) make Investments in any
other Group Member or (c) transfer any of its assets to any
other Group Member, except for such encumbrances or restrictions
existing under or by reason of (i) any restrictions existing
under the Loan Documents, (ii) any restrictions with respect
to a
98
Subsidiary of the US Borrower (other than the Canadian Borrower)
imposed pursuant to an agreement that has been entered into in
connection with the Disposition of all or substantially all of the
Capital Stock or assets of such Subsidiary, (iii) customary
net worth provisions contained in real property leases entered into
by any Loan Party so long as such net worth provisions could not
reasonably be expected to impair materially the ability of the Loan
Parties to meet their ongoing obligations under this Agreement or
any of the other Loan Documents, (iv) any restrictions
existing under (A) the Senior Subordinated Notes Indenture or
(B) any agreement to be entered into in connection with the
incurrence of Indebtedness permitted by
Sections 7.2(f) or (g) solely to the extent such
agreement is no more restrictive than this Agreement, and
(v) with respect to clause (c) only, (A) agreements
described in clauses (b)-(d) of Section 7.13, to the
extent set forth in such clauses and (B) restrictions with
respect to the transfer of any asset contained in an agreement that
has been entered into in connection with a disposition of such
asset permitted hereunder.
7.15
Limitation on Lines of Business . Enter into any business,
either directly or through any Subsidiary, except for those
businesses in which the Group Members are engaged on the Closing
Date or that are reasonably related thereto.
7.16
Limitation on Hedge Agreements . Enter into any Hedge
Agreement other than Hedge Agreements entered into in the ordinary
course of business, and not for speculative purposes.
7.17
Limitation on Performance Bonds . Create, incur, assume or
suffer to exist any secured obligations in respect of performance
and surety bonds and other obligations of a like nature other than
performance and surety bonds incurred in connection with credit
support obligations related to the waste collection and disposal
business in the ordinary course of business, including, without
limitation, bonds for closure and post closure obligations relating
to any landfill and bonds relating to municipal collection
contracts. SECTION 8. EVENTS OF DEFAULT
If any
of the following events shall occur and be continuing:
(a) Any
Borrower shall fail to pay any principal of any Loan or
Reimbursement Obligation when due in accordance with the terms
hereof; or any Borrower shall fail to pay any interest on any Loan
or Reimbursement Obligation, or any Loan Party shall fail to pay
any other amount payable by it hereunder or under any other Loan
Document, within five days after any such interest or other amount
becomes due in accordance with the terms hereof or thereof; or
(b) Any
representation or warranty made or deemed made by any Loan Party
herein or in any other Loan Document or that is contained in any
certificate, document or financial or other statement furnished by
it at any time under or in connection with this Agreement or any
such other Loan Document shall prove to have been inaccurate in any
material respect on or as of the date made or deemed made or
furnished; or
(c)
(i) Any Loan Party shall default in the observance or
performance of any agreement contained in clause (i) or
(ii) of Section 6.4(a) (with respect to the Canadian
Borrower and the US Borrower only), Section 6.7(a) or
Section 7 of this Agreement, or in Sections
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5.2(a) and (d), 5.3(b)(iii) and (v), 5.5(a) and
(c), 5.6(b)(i) and (ii), 5.7 and 5.8(b) of the Guarantee
and US Collateral Agreement, or (ii) Sections 5.2(a),
5.3(b)(iii) and (v), 5.5(a) and (c), 5.6(b)(i), 5.7 and
5.8(b) of the Canadian Collateral Agreement; or
(d) Any
Loan Party shall default in the observance or performance of any
other agreement contained in this Agreement or any other Loan
Document (other than as provided in paragraphs (a) through
(c) of this Section), and such default shall continue
unremedied for a period of 30 days; or
(e) any
Group Member shall (i) default in making any payment of any
principal of any Indebtedness (including, without limitation, any
Guarantee Obligation, but excluding the Obligations) on the
scheduled or original due date with respect thereto beyond the
period of grace, if any, provided in the instrument or agreement
under which such Indebtedness was created; or (ii) default in
making any payment of any interest on any such Indebtedness beyond
the period of grace, if any, provided in the instrument or
agreement under which such Indebtedness was created; or
(iii) default in the observance or performance of any other
agreement or condition relating to any such Indebtedness or
contained in any instrument or agreement evidencing, securing or
relating thereto, or any other event shall occur or condition
exist, the effect of which default or other event or condition is
to cause, or to permit the holder or beneficiary of such
Indebtedness (or a trustee or agent on behalf of such holder or
beneficiary) to cause, with the giving of notice if required, such
Indebtedness to become due prior to its stated maturity or to
become subject to a mandatory offer to purchase by the obligor
thereunder or (in the case of any such Indebtedness constituting a
Guarantee Obligation) to become payable; provided , that a
default, event or condition described in clause (i), (ii) or
(iii) of this paragraph (e) shall not at any time
constitute an Event of Default unless, at such time, one or more
defaults, events or conditions of the type described in clauses
(i), (ii) and (iii) of this paragraph (e) shall have
occurred and be continuing with respect to Indebtedness the
outstanding principal amount of which exceeds in the aggregate
$5,000,000; or
(f)
(i) any Group Member shall commence any case, proceeding or
other action (A) under any existing or future law of any
jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization or relief of debtors, seeking to have an
order for relief entered with respect to it, or seeking to
adjudicate it a bankrupt or insolvent, or seeking reorganization,
arrangement, adjustment, winding-up, liquidation, dissolution,
composition or other relief with respect to it or its debts, or
(B) seeking appointment of a receiver, interim receiver,
receiver-manager, trustee, custodian, conservator or other similar
official for it or for all or any substantial part of its assets,
or any Group Member shall make a general assignment for the benefit
of its creditors; or (ii) there shall be commenced against any
Group Member any case, proceeding or other action of a nature
referred to in clause (i) above that (A) results in the
entry of an order for relief or any such adjudication or
appointment or (B) remains undismissed, undischarged or
unbonded for a period of 60 days; or (iii) there shall be
commenced against any Group Member any case, proceeding or other
action seeking issuance of a warrant of attachment, execution,
distraint, possession, foreclosure or similar process against all
or any substantial part of its assets that results in the entry of
an order for any such relief that shall not have been vacated,
discharged, or stayed or bonded pending appeal within 60 days
from the entry thereof; or (iv) any Group Member shall take
any action in furtherance of, or indicating its consent to,
approval of, or acquiescence in, any of the acts set forth in
clause (i), (ii), or (iii) above; or
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(v) any Group Member shall generally not, or shall be
unable to, or shall admit in writing its inability to, pay its
debts as they become due; or
(g)
(i) Any Person shall engage in any "prohibited transaction"
(as defined in Section 406 of ERISA or Section 4975 of
the Code) involving any Single Employer Plan, (ii) any
"accumulated funding deficiency" (as defined in Section 302 of
ERISA), whether or not waived, shall exist with respect to any
Single Employer Plan, or any Lien in favor of a Single Employer
Plan or in favor of the PBGC with respect to a Single Employer Plan
shall arise on the assets of the US Borrower or any Commonly
Controlled Entity, (iii) a Reportable Event shall occur with
respect to, or proceedings shall commence to have a trustee
appointed, or a trustee shall be appointed, to administer or to
terminate, any Single Employer Plan, which Reportable Event or
commencement of proceedings or appointment of a trustee is, in the
reasonable opinion of the Required Lenders, likely to result in the
termination of such Plan for purposes of Title IV of ERISA,
(iv) any Single Employer Plan shall terminate for purposes of
Title IV of ERISA, or (v) the US Borrower or any Commonly
Controlled Entity shall incur any liability in connection with a
withdrawal from, or the Insolvency or Reorganization of, a
Multiemployer Plan; and in each case in clauses (i) through
(v) above, such event or condition, together with all other
such events or conditions, if any, could, in the sole judgment of
the Required Lenders, reasonably be expected to have a Material
Adverse Effect; or
(h) One
or more judgments or decrees shall be entered against any Group
Member involving for all Group Members taken as a whole a liability
(not paid or fully covered by insurance as to which the relevant
insurance company has acknowledged coverage) of $5,000,000 or more,
and all such judgments or decrees shall not have been vacated,
discharged, stayed or bonded pending appeal within 30 days
from the entry thereof; or
(i) Any
of the Security Documents shall cease, for any reason (other than
by reason of the express release thereof pursuant to
Section 10.15), to be in full force and effect, or any Loan
Party or any Affiliate of any Loan Party shall so assert, or any
Lien created by any of the Security Documents shall cease to be
enforceable and of the same effect and priority purported to be
created thereby; or
(j) The
guarantee contained in Section 2 of the Guarantee and US
Collateral Agreement shall cease, for any reason (other than by
reason of the express release thereof pursuant to
Section 10.15), to be in full force and effect or any Loan
Party or any Affiliate of any Loan Party shall so assert; or
(k) Any
Change of Control shall occur; or
(l) The
Senior Subordinated Notes or the guarantees thereof shall cease,
for any reason, to be validly subordinated to the Obligations or
the obligations of the Subsidiary Guarantors under the Guarantee
and US Collateral Agreement, as the case may be, as provided in the
Senior Subordinated Note Indenture, or any Loan Party, any
Affiliate of any Loan Party, the trustee in respect of the Senior
Subordinated Notes or the holders of at least 25% in aggregate
principal amount of the Senior Subordinated Notes shall so
assert;
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then, and in any such event, (A) if such event is an Event
of Default specified in clause (i) or (ii) of paragraph
(f) above with respect to any Borrower automatically the
Commitments shall immediately terminate and the Loans hereunder
(with accrued interest thereon) and all other amounts owing under
this Agreement and the other Loan Documents (including, without
limitation, all amounts of Bankers’ Acceptances and L/C
Obligations, whether or not the beneficiaries of the then
outstanding Letters of Credit shall have presented the documents
required thereunder and whether or not the Bankers’
Acceptances have matured) shall immediately become due and payable,
and (B) if such event is any other Event of Default, either or
both of the following actions may be taken: (i) the
Administrative Agent may, or upon the request of the Majority
Revolving Credit Facility Lenders, the Administrative Agent shall,
by notice to the US Borrower and the Canadian Borrower declare the
Revolving Credit Commitments to be terminated forthwith, whereupon
the Revolving Credit Commitments shall immediately terminate; and
(ii) the Administrative Agent may, or upon the request of the
Required Lenders, the Administrative Agent shall, by notice to the
US Borrower and the Canadian Borrower, declare the Loans hereunder
(with accrued interest thereon) and all other amounts owing under
this Agreement and the other Loan Documents (including, without
limitation, all amounts of Bankers’ Acceptances and L/C
Obligations, whether or not the beneficiaries of the then
outstanding Letters of Credit shall have presented the documents
required thereunder) and whether or not the Bankers’
Acceptances have matured to be due and payable forthwith, whereupon
the same shall immediately become due and payable. In the case of
all Letters of Credit with resp
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