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Exhibit 10.2
EXECUTION COPY
U.S. $185,000,000
BRIDGE CREDIT AGREEMENT
Dated as of October 31, 2006
among
BECKMAN COULTER, INC.
as Borrower
THE INITIAL LENDERS NAMED HEREIN
as Initial Lenders
CITICORP NORTH AMERICA, INC.
as Sole Administrative
Agent
BANC OF AMERICA BRIDGE LLC
as Syndication Agent
CITIGROUP GLOBAL MARKETS INC.
and
BANC OF AMERICA SECURITIES LLC
as Lead Arrangers and
Bookrunners
Table of
Contents
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Page
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ARTICLE I DEFINITIONS AND
ACCOUNTING TERMS
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Certain Defined Terms
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1
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Computation of Time Periods
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11
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Accounting Terms
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11
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ARTICLE II AMOUNTS AND TERMS OF
THE ADVANCES
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The Advances
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12
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Making the Advances
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12
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Fees
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13
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Termination or Reduction of the
Commitments
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13
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Repayment
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13
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Interest
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13
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Interest Rate Determination
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13
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Conversion of Advances
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14
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Prepayments
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15
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Increased Costs
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15
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Illegality
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16
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Payments and Computations
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16
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Taxes
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17
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Sharing of Payments, Etc.
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19
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Use of Proceeds
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19
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Replacement of Lenders
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19
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ARTICLE III CONDITIONS TO
EFFECTIVENESS AND LENDING
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Conditions Precedent to Effectiveness of
Section 2.01
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19
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Conditions Precedent to Each Borrowing
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21
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Determinations Under Section 3.01
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21
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ARTICLE IV REPRESENTATIONS AND
WARRANTIES
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Representations and Warranties of the
Borrower
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21
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ARTICLE V COVENANTS OF THE
BORROWER
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Affirmative Covenants
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23
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Negative Covenants
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25
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Financial Covenants
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27
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ARTICLE VI EVENTS OF
DEFAULT
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Events of Default
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27
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ARTICLE VII THE AGENT
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Authorization and Action
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29
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Agent’s Reliance, Etc.
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29
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CNAI and Affiliates
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29
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Lender Credit Decision
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29
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Page
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Indemnification
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30
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Successor Agent
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30
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ARTICLE VIII
MISCELLANEOUS
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Amendments, Etc.
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30
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Notices, Etc.
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30
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No Waiver; Remedies
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31
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Costs and Expenses
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32
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Right of Set-off
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33
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Binding Effect
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33
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Assignments and Participations
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33
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Confidentiality
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35
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Governing Law
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36
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Execution in Counterparts
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36
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Jurisdiction, Etc.
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36
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Patriot Act Notice
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36
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Waiver of Jury Trial
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37
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Schedule 1 - List of Applicable Lending Offices
Exhibit A - Form of Promissory Note
Exhibit B - Form of Notice of Borrowing
Exhibit C - Form of Assignment and Acceptance
Exhibit D-1 - Form of Opinion of Assistant General Counsel of
the Borrower
Exhibit D-2 - Form of Opinion of Latham & Watkins LLP,
Counsel for the Borrower
BRIDGE CREDIT
AGREEMENT
Dated as of October 31, 2006
Among BECKMAN COULTER, INC., a Delaware corporation (the "
Borrower "), the banks, financial institutions and other
institutional lenders (the " Initial Lenders ") listed on
the signature pages hereof, CITICORP NORTH AMERICA, INC. ("
CNAI "), a Delaware corporation, as sole administrative
agent (the " Agent ") for the Lenders (as hereinafter
defined), BANC OF AMERICA BRIDGE LLC, as syndication agent, and
CITIGROUP GLOBAL MARKETS INC. and BANC OF AMERICA SECURITIES LLC,
as lead arrangers and bookrunners (the "Arrangers"):
PRELIMINARY STATEMENT:
The Borrower has requested that the Lenders make loans to it in
an aggregate principal amount not exceeding $185,000,000 at any one
time outstanding to provide funds for the Acquisition ( as
hereinafter defined), and the Initial Lenders are prepared to make
such loans upon the terms and conditions hereof. Accordingly, the
parties hereto agree as follows:
ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
SECTION 1.01. Certain Defined Terms .
As used in this Agreement, the following terms shall have the
following meanings (such meanings to be equally applicable to both
the singular and plural forms of the terms defined):
" Acquisition " has the meaning specified in
Section 2.15.
" Advance " means an advance by a Lender to the Borrower
pursuant to Article II, and refers to a Base Rate Advance or a
Eurodollar Rate Advance (each of which shall be a " Type "
of Advance).
" Affected Lender " has the meaning specified in
Section 2.16.
" Affiliate " means, as to any Person, any other Person
that, directly or indirectly, controls, is controlled by or is
under common control with such Person. For purposes of this
definition, the term "control" (including the terms "controlling",
"controlled by" and "under common control with") of a Person means
the possession, direct or indirect, of the power to direct or cause
the direction of the management and policies of such Person,
whether through the ownership of Voting Stock, by contract or
otherwise.
" Agent’s Account " means the account of the Agent
maintained by the Agent at Citibank with its office at 2 Penns Way,
Suite 200, New Castle, Delaware 19720, Account No. 36852248,
Attention: Bank Loan Syndications.
" Applicable Lending Office " means, with respect to each
Lender, such Lender’s Domestic Lending Office in the case of
a Base Rate Advance and such Lender’s Eurodollar Lending
Office in the case of a Eurodollar Rate Advance.
" Applicable Margin " means, as of any
date, a percentage per annum determined by reference to the Public
Debt Rating of S&P, Moody’s and Fitch in effect on such
date as set forth below:
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Public Debt Rating
S&P/Moody’s/Fitch
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Applicable
Margin
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0.500
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%
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0.625
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%
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0.725
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%
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0.875
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%
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1.000
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%
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1.500
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%
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" Assignment and Acceptance " means an
assignment and acceptance entered into by a Lender and an Eligible
Assignee, and accepted by the Agent, in substantially the form of
Exhibit C hereto.
" Base Rate " means a fluctuating interest rate per annum
in effect from time to time, which rate per annum shall at all
times be equal to the highest of:
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(a) the rate of interest announced publicly by Citibank in
New York, New York, from time to time, as
Citibank’s base rate;
(b) the sum (adjusted to the nearest 1/4 of 1% or, if there is
no nearest 1/4 of 1%, to the next higher 1/4 of 1%) of (i) 1/2
of 1% per annum, plus (ii) the rate obtained by
dividing (A) the latest three-week moving average of secondary
market morning offering rates in the United States for three-month
certificates of deposit of major United States money market banks,
such three-week moving average (adjusted to the basis of a year of
360 days) being determined weekly on each Monday (or, if such day
is not a Business Day, on the next succeeding Business Day) for the
three-week period ending on the previous Friday by Citibank on the
basis of such rates reported by certificate of deposit dealers to
and published by the Federal Reserve Bank of New York or, if
such publication shall be suspended or terminated, on the basis of
quotations for such rates received by Citibank from three
New York certificate of deposit dealers of recognized standing
selected by Citibank, by (B) a percentage equal to 100% minus
the average of the daily percentages specified during such
three-week period by the Board of Governors of the Federal Reserve
System (or any successor) for determining the maximum reserve
requirement (including, but not limited to, any emergency,
supplemental or other marginal reserve requirement) for Citibank
with respect to liabilities consisting of or including (among other
liabilities) three-month U.S. dollar non-personal time deposits in
the United States, plus (iii) the average during such
three-week period of the annual assessment rates estimated by
Citibank for determining the then current annual assessment payable
by Citibank to the Federal Deposit Insurance Corporation (or any
successor) for insuring U.S. dollar deposits of Citibank in the
United States; and
(c) 1/2 of one percent per annum above the Federal Funds
Rate.
" Base Rate Advance " means an Advance that bears
interest as provided in Section 2.06(a)(i).
" Borrowing " means a borrowing consisting of Advances of
the same Type made on the same day by the Lenders.
2
" Business Day " means a day of the year
(other than a Saturday or Sunday) on which banks are not required
or authorized by law to close in New York, New York and,
if the applicable Business Day relates to any Eurodollar Rate
Advances, on which dealings are carried on in the London interbank
market.
" Citibank " means Citibank, N.A., a national banking
association organized and existing under the laws of the United
States of America.
" Commitment " means, as to any Lender, (a) if such
Lender is an Initial Lender, the amount set forth opposite such
Lender’s name on the signature pages hereof or (b) if
such Lender has entered into any Assignment and Acceptance, the
amount set forth for such Lender in the Register maintained by the
Agent pursuant to Section 8.07(c), in each case as such amount
may be reduced pursuant to Section 2.04.
" Compliance Certificate " has the meaning specified in
Section 5.01(i)(i).
" Confidential Information " means information about the
Borrower and its Subsidiaries or Lumigen Inc. and their existing
and proposed operations, business plans, affairs, products and
financial condition not generally disclosed to, or known by, the
public that the Borrower furnishes to the Agent or any Lender
pursuant to this Agreement.
" Consolidated " refers to the consolidation of accounts
in accordance with GAAP.
" Convert ", " Conversion " and " Converted
" each refers to a conversion of Advances of one Type into Advances
of the other Type pursuant to Section 2.07 or 2.08.
" Debt " of any Person means, 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 (i) trade payables
that are payable on customary terms and incurred in the ordinary
course of such Person’s business, and (ii) deferred
compensation to any employee or director of the Borrower or any of
its Subsidiaries), (c) all obligations of such Person
evidenced by notes, bonds, debentures or other similar instruments,
(d) all obligations of such Person 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 obligations of such Person as lessee under
leases that have been or should be, in accordance with GAAP,
recorded as capital leases, (f) all obligations, contingent or
otherwise, of such Person in respect of acceptances, letters of
credit or similar extensions of credit, (g) all net
obligations of such Person in respect of Hedge Agreements,
(h) all Debt of others referred to in clauses (a) through
(g) above or clause (i) below and other payment
obligations (collectively, " Guaranteed Debt ") guaranteed
directly or indirectly in any manner by such Person, or in effect
guaranteed directly or indirectly by such Person through an
agreement (1) to pay or purchase such Guaranteed Debt or to
advance or supply funds for the payment or purchase of such
Guaranteed Debt, (2) to purchase, sell or lease (as lessee or
lessor) property, or to purchase or sell services, primarily for
the purpose of enabling the debtor to make payment of such
Guaranteed Debt or to assure the holder of such Guaranteed Debt
against loss, (3) to supply funds to or in any other manner
invest in the debtor (including any agreement to pay for property
or services irrespective of whether such property is received or
such services are rendered) or (4) otherwise to assure a
creditor against loss, and (i) all Debt referred to in
clauses (a) through (h) above (including Guaranteed Debt)
secured by (or for which the holder of such Debt 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, even though such Person has not
assumed or become liable for the payment of such Debt;
provided , however , that clauses (h) and
(i) shall not include up to $75,000,000 (in the aggregate) of
Debt of Persons other than the Borrower and its Subsidiaries
outstanding at any time if and to the extent that (i) such
Debt evidences a lease or purchase of goods or services by such
Person from the Borrower or any Subsidiary of the Borrower,
(ii) such Debt would not otherwise constitute Debt but for the
fact that the Borrower or any Subsidiary of the Borrower (or any
property of the Borrower or any Subsidiary of the Borrower) is
subject to recourse liability for the payment or purchase of all or
a portion thereof in connection with the sale of such Debt and
(iii) such recourse liability does not exceed 15% of the sale
price thereof.
3
" Default " means any Event of Default or
any event that would constitute an Event of Default but for the
requirement that notice be given or time elapse or both.
" Defaulting Lender " means, at any time, any Lender
that, at such time, (a) has failed to make any Advance
required to be made by such Lender to the Borrower pursuant to
Section 2.01 at or prior to such time, or (b) has failed
to pay any amount required to be paid by such Lender to the Agent
or any other Lender hereunder at or prior to such time, including,
without limitation, any amount required to be paid by such Lender
to (i) the Agent pursuant to Section 2.02(d) to reimburse
the Agent for the amount of any Advance made by the Agent for the
account of such Lender, (ii) any other Lender pursuant to
Section 2.14 to purchase any participation in Advances owing
to such other Lender, and (iii) the Agent pursuant to
Section 7.05 to reimburse the Agent for such Lender’s
ratable share of any amount required to be paid by the Lenders to
the Agent as provided therein, or (c) shall take any action or
be the subject of any action or proceeding described in
Section 6.01(e).
" Domestic Lending Office " means, with respect to any
Lender, the office of such Lender specified as its "Domestic
Lending Office" opposite its name on Schedule I hereto or in
the Assignment and Acceptance pursuant to which it became a Lender,
or such other office of such Lender as such Lender may from time to
time specify to the Borrower and the Agent.
" EBITDA " means, for any period, net income (or net
loss) for such period plus the sum of (a) Interest Expense for
such period, (b) income and franchise tax expense for such
period, (c) depreciation expense for such period,
(d) amortization expense for such period, and
(e) extraordinary charges and special, one-time charges for
such period but only to the extent not in excess of 20% of EBITDA
for such period calculated without giving effect to this clause
(e), in each case determined in accordance with GAAP.
" Effective Date " has the meaning specified in
Section 3.01.
" Eligible Assignee " means (i) a Lender,
(ii) an Affiliate of a Lender, and (iii) any other
financial institution having a combined capital and surplus of at
least $250,000,000 or other accredited investor (as defined in
Regulation D under the Securities Act), in each case, approved by
the Agent and, unless an Event of Default has occurred and is
continuing at the time any assignment is effected in accordance
with Section 8.07, the Borrower, such approval not to be
unreasonably withheld or delayed (it being understood that any
objection by the Borrower to any Person reasonably considered by
the Borrower to be a competitor, or an Affiliate of a competitor,
of the Borrower shall be deemed to be not unreasonable);
provided , however , that neither the Borrower nor an
Affiliate of the Borrower shall qualify as an Eligible
Assignee.
" Environmental Action " means any action, suit, demand,
demand letter, claim, notice of non-compliance or violation, notice
of liability or potential liability, investigation, proceeding,
consent order or consent agreement by, to or against the Borrower
or any Subsidiary of the Borrower or with respect to the business
or properties of the Borrower or any Subsidiary of the Borrower
relating in any way to any Environmental Law, Environmental Permit
or Hazardous Materials or arising from alleged injury or threat of
injury to health, safety or the environment, including, without
limitation, (a) by any governmental or regulatory authority
for enforcement, cleanup, removal, response, remedial or other
actions or damages and (b) by any governmental or regulatory
authority or any third party for damages, contribution,
indemnification, cost recovery, compensation or injunctive
relief.
" Environmental Law " means any federal, state, local or
foreign statute, law, ordinance, rule, regulation, code, order,
judgment, decree or judicial or agency interpretation, policy or
guidance relating to pollution or protection of the environment,
health, safety or natural resources, including, without limitation,
those relating to the use, handling, transportation, treatment,
storage, disposal, release or discharge of Hazardous Materials, in
each case as applicable to the Borrower or any Subsidiary of the
Borrower or with respect to the business or properties of the
Borrower or any Subsidiary of the Borrower.
4
" Environmental Permit " means any permit,
approval, identification number, license or other authorization
required to be obtained by the Borrower or any Subsidiary of the
Borrower or required in respect of any business or properties of
the Borrower or any Subsidiary of the Borrower under any
Environmental Law.
" Equipment for Resale " means any instrument systems and
related accessories and components manufactured or assembled by or
on behalf of the Borrower or any of its Subsidiaries that are owned
by the Borrower or such Subsidiary and held for placement or placed
(pursuant to leases, bailment arrangements or rental agreements) in
facilities of the Borrower’s or such Subsidiary’s
customers (including distributors, commission representatives,
agents and their customers).
" ERISA " means the Employee Retirement Income Security
Act of 1974, as amended from time to time, and the regulations
promulgated and rulings issued thereunder.
" ERISA Affiliate " means any Person that for purposes of
Title IV of ERISA is a member of the Borrower’s
controlled group, or under common control with the Borrower, within
the meaning of Section 414 of the Internal Revenue Code.
" ERISA Event " means (a) the occurrence of a
reportable event, within the meaning of Section 4043 of ERISA,
with respect to any Plan unless the 30-day notice requirement with
respect to such event has been waived by the PBGC; (b) the
application for a minimum funding waiver with respect to a Plan;
(c) the provision by the administrator of any Plan of a notice
of intent to terminate such Plan pursuant to
Section 4041(a)(2) of ERISA (including any such notice with
respect to a plan amendment referred to in Section 4041(e) of
ERISA); (d) the cessation of operations at a facility of the
Borrower or any ERISA Affiliate in the circumstances described in
Section 4062(e) of ERISA; (e) the withdrawal by the
Borrower or any ERISA Affiliate from a Multiple Employer Plan
during a plan year for which it was a substantial employer, as
defined in Section 4001(a)(2) of ERISA; (f) the
conditions for the imposition of a lien under Section 302(f)
of ERISA shall have been met with respect to any Plan; (g) the
adoption of an amendment to a Plan requiring the provision of
security to such Plan pursuant to Section 307 of ERISA; or
(h) the institution, or the written threat of institution, by
the PBGC of proceedings to terminate a Plan pursuant to
Section 4042 of ERISA.
" Eurocurrency Liabilities " has the meaning assigned to
that term in Regulation D of the Board of Governors of the
Federal Reserve System, as in effect from time to time.
" Eurodollar Lending Office " means, with respect to any
Lender, the office of such Lender specified as its "Eurodollar
Lending Office" opposite its name on Schedule I hereto or in
the Assignment and Acceptance pursuant to which it became a Lender
(or, if no such office is specified, its Domestic Lending Office),
or such other office of such Lender as such Lender may from time to
time specify to the Borrower and the Agent.
" Eurodollar Rate " means, for any Interest Period for
each Eurodollar Rate Advance comprising part of the same Borrowing,
the interest rate per annum obtained by dividing (a) the
offered rate in the London interbank market for deposits in United
States dollars for a term comparable to such Interest Period, as
shown on the Moneyline Telerate Markets page 3750 as of 11:00 a.m.,
London time, two Business Days prior to the first day of such
Interest Period, provided that (i) if more than one
offered rate as described above appears on such Moneyline Telerate
Markets page, the rate computed pursuant to this clause
(a) shall be the arithmetic average (rounded upward, if
necessary, to the next higher 1/100 of 1%) of such offered rates,
(ii) if the Agent ceases generally to use such Moneyline
Telerate Markets page for determining interest rates based on
eurodollar deposit rates, a comparable internationally recognized
interest rate reporting service selected by the Agent shall be used
by the Agent in lieu of such Moneyline Telerate Markets page, and
(iii) if no such offered rates as described above appear on
such Moneyline Telerate Markets page (or such comparable reporting
service), the rate computed pursuant to this clause (a) shall
be the average (rounded upward to the nearest whole multiple of
1/16 of 1% per annum, if such average is not such a multiple)
of the rates per annum at which deposits in U.S. dollars are
offered by the principal office of each of the Reference Banks in
London, England to prime banks in the London
5
interbank market at 11:00 A.M. (London time)
two Business Days before the first day of such Interest Period in
an amount substantially equal to such Reference Bank’s
Eurodollar Rate Advance (or, in the case of Citibank, CNAI’s
Eurodollar Rate Advance) comprising part of such Borrowing to be
outstanding during such Interest Period and for a period equal to
such Interest Period, by (b) a percentage equal to 100% minus
the Eurodollar Rate Reserve Percentage for such Interest Period. In
the case of clause (a)(iii) above, the Eurodollar Rate for any
Interest Period for each Eurodollar Rate Advance comprising part of
the same Borrowing shall be determined by the Agent on the basis of
applicable rates furnished to and received by the Agent from the
Reference Banks two Business Days before the first day of such
Interest Period, subject , however , to the
provisions of Section 2.07.
" Eurodollar Rate Advance " means an Advance that bears
interest as provided in Section 2.06(a)(ii).
" Eurodollar Rate Reserve Percentage " for any Interest
Period for all Eurodollar Rate Advances comprising part of the same
Borrowing means the reserve percentage applicable two Business Days
before the first day of such Interest Period under regulations
issued from time to time by the Board of Governors of the Federal
Reserve System (or any successor) for determining the maximum
reserve requirement (including, without limitation, any emergency,
supplemental or other marginal reserve requirement) for a member
bank of the Federal Reserve System in New York City with
respect to liabilities or assets consisting of or including
Eurocurrency Liabilities (or with respect to any other category of
liabilities that includes deposits by reference to which the
interest rate on Eurodollar Rate Advances is determined) having a
term equal to such Interest Period.
" Events of Default " has the meaning specified in
Section 6.01.
" Existing Credit Agreement " means the Amended and
Restated Credit Agreement dated as of January 31, 2005 among
the Borrower, the lenders parties thereto and Citicorp USA, Inc. as
administrative agent for such lenders, as amended, supplemented,
amended and restated or otherwise modified from time to time.
" Federal Funds Rate " means, for any period, a
fluctuating interest rate per annum equal for each day during such
period to 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 for such day (or,
if such day is not a Business Day, for the next preceding Business
Day) by the Federal Reserve Bank of New York, or, if such rate
is not so published for any day that is a Business Day, the average
of the quotations for such day on such transactions received by the
Agent from three Federal funds brokers of recognized standing
selected by it.
" Fitch " means Fitch, Inc.
" Funded Debt " of any Person means, without duplication,
(a) all indebtedness of such Person for borrowed money,
(b) all obligations of such Person evidenced by notes, bonds,
debentures or other similar instruments, (c) all obligations
of such Person 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), (d) all obligations
of such Person as lessee under leases that have been or should be,
in accordance with GAAP, recorded as capital leases, (e) all
obligations, contingent or otherwise, of such Person in respect of
acceptances, letters of credit or similar extensions of credit,
(f) all Funded Debt of others referred to in clauses (a)
through (e) above or clause (g) below and other payment
obligations (collectively, " Guaranteed Funded Debt ")
guaranteed directly or indirectly in any manner by such Person, or
in effect guaranteed directly or indirectly by such Person through
an agreement (1) to pay or purchase such Guaranteed Funded
Debt or to advance or supply funds for the payment or purchase of
such Guaranteed Funded Debt, (2) to purchase, sell or lease
(as lessee or lessor) property, or to purchase or sell services,
primarily for the purpose of enabling the debtor to make payment of
such Guaranteed Funded Debt or to assure the holder of such
Guaranteed Funded Debt against loss, (3) to supply funds to or
in any other manner invest in the debtor (including any agreement
to pay for property or services irrespective of
6
whether such property is received or such
services are rendered) or (4) otherwise to assure a creditor
against loss, and (g) all Funded Debt referred to in
clauses (a) through (f) above (including Guaranteed
Funded Debt) secured by (or for which the holder of such Funded
Debt 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, even though such Person
has not assumed or become liable for the payment of such Funded
Debt; provided , however , that clauses (f) and
(g) shall not include up to $75,000,000 (in the aggregate) of
Funded Debt of Persons other than the Borrower and its Subsidiaries
outstanding at any time if and to the extent that (i) such
Funded Debt evidences a lease or purchase of goods or services by
such Person from the Borrower or any Subsidiary of the Borrower,
(ii) such Funded Debt would not otherwise constitute Funded
Debt but for the fact that the Borrower or any Subsidiary of the
Borrower (or any property of the Borrower or any Subsidiary of the
Borrower) is subject to recourse liability for the payment or
purchase of all or a portion thereof in connection with the sale of
such Funded Debt and (iii) such recourse liability does not
exceed 15% of the sale price thereof.
" GAAP " means generally accepted accounting principles
(subject to Section 1.03, consistent with those applied in the
preparation of any financial statements referred to in
Section 4.01(e) hereof) in the United States of America as in
effect on the date of this Agreement, including those set forth in
the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants and
statements of the Financial Accounting Standards Board or in such
other statement by such other entity as approved by a significant
segment of the United States accounting profession.
" Granting Lender " has the meaning specified in
Section 8.07(h).
" Hazardous Materials " means (a) petroleum and
petroleum products, byproducts or breakdown products, radioactive
materials, asbestos-containing materials, polychlorinated biphenyls
and radon gas and (b) any other chemicals, materials or
substances designated, classified or regulated as hazardous or
toxic or as a pollutant or contaminant under any Environmental
Law.
" Hedge Agreements " means interest rate swap, cap or
collar agreements, interest rate future or option contracts,
currency swap agreements, currency or commodity future or option
contracts and other similar agreements.
" Interest Expense " means, for any period, the sum of
(i) interest expense, including, without limitation and
without duplication, (a) amortization of debt discount,
(b) amortization of fees (including, without limitation, fees
payable in respect of Hedge Agreements) payable in connection with
the incurrence of Debt to the extent included in interest expense,
and (c) the portion of any liabilities incurred in connection
with capitalized leases allocable to interest expense, in each case
of the Borrower and its Subsidiaries on a Consolidated basis,
determined in accordance with GAAP for such period, and
(ii) any dividends paid or accrued in respect of any preferred
stock of the Borrower during such period.
" Interest Period " means, for each Eurodollar Rate
Advance comprising part of the same Borrowing, the period
commencing on the date of such Eurodollar Rate Advance or the date
of the Conversion of any Base Rate Advance into such Eurodollar
Rate Advance and ending on the last day of the period selected by
the Borrower pursuant to the provisions below and, thereafter, each
subsequent period commencing on the last day of the immediately
preceding Interest Period and ending on the last day of the period
selected by the Borrower pursuant to the provisions below. The
duration of each such Interest Period shall be one, two, three or
six months, and subject to clause (c) of this definition, nine
months, as the Borrower may, upon notice received by the Agent not
later than 1:00 P.M. (New York City time) on the third
Business Day prior to the first day of such Interest Period,
select; provided , however , that:
-
(a) the Borrower may not select any Interest Period that ends
after the Termination Date;
(b) Interest Periods commencing on the same date for Eurodollar
Rate Advances comprising part of the same Borrowing shall be of the
same duration;
7
-
(c) in the case of any such Borrowing, the
Borrower shall not be entitled to select an Interest Period having
duration of nine months unless, by 4:00 P.M. (New York City time)
on the third Business Day prior to the first day of such Interest
Period, each Lender notifies the Agent that such Lender will be
providing funding for such Borrowing with such Interest Period (the
failure of any Lender to so respond by such time being deemed for
all purposes of this Agreement as an objection by such Lender to
the requested duration of such Interest Period); provided that, if
any or all of the Lenders object to the requested duration of such
Interest Period, the duration of the Interest Period for such
Borrowing shall be one, two, three or six months, as specified by
the Borrower in the applicable Notice of Borrowing as the desired
alternative to an Interest Period of nine months;
(d) whenever the last day of any Interest Period would otherwise
occur on a day other than a Business Day, the last day of such
Interest Period shall be extended to occur on the next succeeding
Business Day, provided , however , that if such
extension would cause the last day of such Interest Period to occur
in the next following calendar month, the last day of such Interest
Period shall occur on the next preceding Business Day; and
(e) whenever the first day of any Interest Period occurs on a
day of an initial calendar month for which there is no numerically
corresponding day in the calendar month that succeeds such initial
calendar month by the number of months equal to the number of
months in such Interest Period, such Interest Period shall end on
the last Business Day of such succeeding calendar month.
" Internal Revenue Code " means the Internal Revenue Code
of 1986, as amended from time to time, and the regulations
promulgated and rulings issued thereunder.
" Inventory " shall have the meaning ascribed to such
term under GAAP.
" Lenders " means the Initial Lenders and each Person
that shall become a party hereto pursuant to Section 8.07.
" Lien " means any lien, security interest or other
charge or encumbrance of any kind, or any other type of
preferential arrangement, including, without limitation, the lien
or retained security title of a conditional vendor and any
easement, right of way or other encumbrance on title to real
property.
" Material Adverse Change " means any material adverse
change (or any event or condition which, solely with the passage of
time, has a substantial likelihood of causing or resulting in a
Material Adverse Change) in the business, financial condition or
operations of the Borrower and its Subsidiaries taken as a
whole.
" Material Adverse Effect " means a material adverse
effect on (a) the business, financial condition or operations
of the Borrower and its Subsidiaries taken as a whole, (b) the
rights and remedies of the Agent or any Lender under this Agreement
or any Note or (c) the ability of the Borrower to perform its
obligations under this Agreement or any Note.
" Moody’s " means Moody’s Investors Service,
Inc.
" Multiemployer Plan " means a multiemployer plan, as
defined in Section 4001(a)(3) of ERISA, to which the Borrower
or any ERISA Affiliate 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.
" Multiple Employer Plan " means a single employer plan,
as defined in Section 4001(a)(15) of ERISA, that (a) is
maintained for employees of the Borrower or any ERISA Affiliate and
at least one Person other than the Borrower and the ERISA
Affiliates or (b) was so maintained and in respect of
which
8
the Borrower or any ERISA Affiliate could have
liability under Section 4064 or 4069 of ERISA in the event
such plan has been or were to be terminated.
" Net Cash Proceeds " means the aggregate amount of cash
and cash equivalents received in connection with any incurrence or
issuance of Debt or the sale or issuance of any equity interests or
equity-linked securities, net of the underwriting discounts and
commissions and other similar payments, and other out-of-pocket
costs, fees, commissions, premiums and expenses incurred by the
issuer thereof in connection with such incurrence, sale or
issuance.
" Note " means a promissory note of the Borrower payable
to the order of any Lender, in substantially the form of
Exhibit A hereto, evidencing the aggregate indebtedness of the
Borrower to such Lender resulting from the Advances made by such
Lender.
" Notice of Borrowing " has the meaning specified in
Section 2.02.
" Other Taxes " has the meaning specified in
Section 2.13.
" Patriot Act " means the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001, Pub. L. 107-56, signed into law
October 26, 2001.
" PBGC " means the Pension Benefit Guaranty Corporation
(or any successor).
" Permitted Liens " means: (a) Liens for taxes,
assessments and governmental charges or levies to the extent not
required to be paid under Section 5.01(b) hereof;
(b) Liens imposed by law, such as materialmen’s,
mechanics’, landlords’, bailees’,
carriers’, warehousmen’s, workmen’s and
repairmen’s Liens and other similar Liens arising in the
ordinary course of business securing obligations that are not
overdue for a period of more than 60 days or, if so overdue,
are being diligently contested in good faith by appropriate
proceedings and for which adequate reserves have been established
in accordance with GAAP; (c) pledges or deposits in the
ordinary course of business to secure non-delinquent obligations
incurred in the ordinary course of business (other than for
borrowed money) or non-delinquent obligations under workers’
compensation or unemployment laws or similar legislation or to
secure the performance of public regulatory obligations which are
not delinquent, bid, surety and appeal bonds, performance bonds or
other obligations of a like nature (other than for borrowed money),
deposits with utility companies or insurance carriers in the
ordinary course of business, and bankers’ liens or rights of
setoff with respect to bank accounts; (d) Uniform Commercial
Code financing statements (or similar statements under foreign
laws) filed for precautionary purposes in connection with any true
lease of property which is not prohibited under this Agreement and
under which the Borrower or any of its Subsidiaries is lessee,
provided that any such financing statement does not cover
any property other than the property subject to such lease and the
proceeds thereof; and Uniform Commercial Code financing statements
filed in connection with any Liens otherwise permitted under this
Agreement, provided that any such financing statements do
not cover any property other than the property subject to such
Liens and the proceeds thereof; (e) easements, rights of way
and other non-monetary encumbrances on title to real property that
do not render title to the property encumbered thereby unmarketable
or materially adversely affect the use of such property for its
present purposes; and (f) any Liens arising as a result of a
sale or discount in the ordinary course of business by the Borrower
or any Subsidiary of the Borrower of customer leases or other
receivables for cash in a amount not less than the fair market
value thereof (after taking into account customary reserves for
losses, yield protection, fees and similar matters),
provided that such Liens shall cover only the assets sold or
the equipment subject to such leases and the proceeds thereof.
" Person " means an individual, partnership, corporation
(including a business trust), joint stock company, trust,
unincorporated association, joint venture, limited liability
company or other entity, or a government or any political
subdivision or agency thereof.
" Plan " means a Single Employer Plan or a Multiple
Employer Plan.
9
" Public Debt Rating " means, as of any
date, the lowest rating that has been most recently announced by
S&P, Moody’s or Fitch, as the case may be, for any class
of non-credit enhanced long-term senior unsecured debt issued by
the Borrower. For purposes of the foregoing, (a) if only one
of S&P, Moody’s and Fitch shall have in effect a Public
Debt Rating, the Applicable Margin will be determined by reference
to the available rating; (b) if none of S&P, Moody’s
or Fitch shall have in effect a Public Debt Rating, the Applicable
Margin will be set in accordance with Level 6 under the definition
of Applicable Margin; (c) if the ratings established by
S&P, Moody’s and Fitch shall fall within different levels
and the ratings of two such agencies are at the same level, the
Applicable Margin shall be based upon such ratings; (d) if the
ratings established by S&P, Moody’s and Fitch shall fall
within three different levels, the Applicable Margin shall be based
upon the rating at the median level; (e) if any rating
established by S&P, Moody’s or Fitch shall be changed,
such change shall be effective as of the date on which such change
is first announced publicly by the rating agency making such
change; and (f) if S&P, Moody’s or Fitch shall
change the basis on which ratings are established, each reference
to the Public Debt Rating announced by S&P, Moody’s or
Fitch, as the case may be, shall refer to the then equivalent
rating by S&P, Moody’s or Fitch, as the case may
be.
" Purchase Agreement " means the Agreement and Plan of
Merger by and among Lumigen Inc., the Borrower, NLACQCO, certain
shareholders of Lumigen Inc. and A. Paul Schapp as the Shareholder
representative.
" Reference Banks " means Citibank and Banc of America
Bridge LLC
" Register " has the meaning specified in
Section 8.07(c).
" Required Lenders " means, at any time, Lenders owed at
least a majority in interest of the then aggregate unpaid principal
amount of the Advances owing to Lenders, or, if no such principal
amount is then outstanding, Lenders having at least a majority in
interest of the Commitments.
" Responsible Officer " means the Chairman, the Chief
Executive Officer, the President, the Chief Financial Officer or
the Treasurer of the Borrower.
" S&P " means Standard & Poor’s
Ratings Group, a division of The McGraw-Hill Companies, Inc.
" Significant Subsidiary " means each Subsidiary now
existing or hereafter acquired or formed, and each successor
thereto, which accounts for more than 5% of (i) the
Consolidated gross revenues of the Borrower and its Subsidiaries,
(ii) Consolidated EBITDA, or (iii) the Consolidated
assets of the Borrower and its Subsidiaries, in each case, as of
the last day of the most recently completed fiscal quarter of the
Borrower with respect to which, pursuant to clauses (i) or
(ii) of Section 5.01(i), financial statements have been,
or are required to have been, delivered by the Borrower.
" Single Employer Plan " means a single employer plan, as
defined in Section 4001(a)(15) of ERISA, that (a) is
maintained for employees of the Borrower or any ERISA Affiliate and
no Person other than the Borrower and the ERISA Affiliates or
(b) was so maintained and in respect of which the Borrower or
any ERISA Affiliate could have liability under Section 4069 of
ERISA in the event such plan has been or were to be terminated.
" Solvent " means, with respect to any Person on a
particular date, that on such date (a) the fair value of the
property of such Person is greater than the total amount of
liabilities, including contingent liabilities, of such Person,
(b) the present fair salable value of the assets of such
Person is not less than the amount that will be required to pay the
probable liability of such Person on its debts as they become
absolute and matured, (c) such Person does not intend to, and
does not believe that it will, incur debts or liabilities beyond
such Person’s ability to pay such debts and liabilities as
they mature and (d) such Person is not engaged in business or
a transaction, and is not about to engage in business or a
transaction, for which such Person’s property constitutes an
unreasonably small capital. The amount of contingent liabilities at
any time shall be computed as the amount that, in the light of all
the facts and circumstances
10
existing at such time, represents the amount that
can reasonably be expected to become an actual or matured
liability.
" SPC " has the meaning specified in
Section 8.07(h).
" Specified Officer " means any Responsible Officer, the
Secretary and General Counsel of the Borrower, and any other
executive officer identified as such in the Borrower’s annual
report on Form 10-K filed pursuant to the Securities Exchange Act
of 1934, as amended, and the rules and regulations promulgated
thereunder.
" Subsidiary " of any Person means any corporation,
partnership, joint venture, limited liability company, trust or
estate of which (or in which) more than 50% of (a) the issued
and outstanding capital stock having ordinary voting power to elect
a majority of the Board of Directors of such corporation
(irrespective of whether at the time capital stock of any other
class or classes of such corporation shall or might have voting
power upon the occurrence of any contingency), (b) the
interest in the capital or profits of such limited liability
company, partnership or joint venture or (c) the beneficial
interest in such trust or estate is at the time directly or
indirectly owned or controlled by such Person, by such Person and
one or more of its other Subsidiaries or by one or more of such
Person’s other Subsidiaries.
" Taxes " has the meaning specified in
Section 2.13.
" Termination Date " means the earliest of
(a) October 30, 2007, (b) the date the Borrower
notifies the Arrangers that the Acquisition has been abandoned,
(c) the date upon which the Borrower receives Net Cash
Proceeds equal to at least $185,000,000 from the issuance of debt
or equity or equity-linked securities, the proceeds of which shall
be used to fully fund the Acquisition and (d) the date of
termination in whole of the Commitments pursuant to
Section 2.04 or 6.01.
" Type " shall have the meaning ascribed to such term in
the definition of the term "Advance".
" Voting Stock " means capital stock issued by a
corporation, or equivalent interests in any other Person, the
holders of which are ordinarily, in the absence of contingencies,
entitled to vote for the election of directors (or persons
performing similar functions) of such Person, even if the right so
to vote has been suspended by the happening of such a
contingency.
SECTION 1.02. Computation of Time Periods . In this
Agreement in the computation of periods of time from a specified
date to a later specified date, the word "from" means "from and
including" and the words "to" and "until" each mean "to but
excluding".
SECTION 1.03. Accounting Terms . All accounting terms not
specifically defined herein shall be construed in accordance with
GAAP. In the event any "Accounting Change" (as defined below) shall
occur and such changes affect the calculation of any financial
covenant set forth in Section 5.03 of this Agreement, then the
Borrower and the Lenders agree to enter into negotiations in order
to amend such provisions of this Agreement so as to equitably
reflect such Accounting Change with the desired result that the
criteria for evaluating the financial condition of Borrower and its
Subsidiaries shall be the same after such Accounting Change as if
such Accounting Change had not been made, and until such time as
such an amendment shall have been executed and delivered by the
Borrower and Required Lenders, (A) such financial covenants,
shall be calculated as if such Accounting Change had not been made,
and (B) the Borrower shall include with each compliance
certificate and the financial statements required to be delivered
hereunder, a reconciliation that shows the differences between the
financial statements delivered (which reflect such Accounting
Change) and the basis for calculating financial covenant compliance
(without reflecting such Accounting Change). "Accounting Change"
means an accounting pronouncement issued or in effect on or after
December 31, 2005 which results in a change in accounting
principles required by generally accepted accounting principles and
implemented by the Borrower.
11
ARTICLE II
AMOUNTS AND TERMS OF THE ADVANCES
SECTION 2.01. The Advances . Each Lender severally
agrees, on the terms and conditions hereinafter set forth, to make
a single Advance to the Borrower on any Business Day during the
period from and including the Effective Date until
November 30, 2006 in an amount not to exceed such
Lender’s Commitment. Amounts borrowed under this
Section 2.01 and repaid pursuant to Section 2.05 or
prepaid pursuant to Section 2.09 may not be reborrowed.
SECTION 2.02. Making the Advances . (a) The Borrowing
shall be made on notice, given not later than 1:00 P.M.
(New York City time) on the third Business Day prior to the
date of the proposed Borrowing in the case of a Borrowing
consisting of Eurodollar Rate Advances, or on the same Business Day
of the proposed Borrowing in the case of a Borrowing consisting of
Base Rate Advances, by the Borrower to the Agent, which shall give
to each Lender prompt notice thereof by facsimile transmission or
electronic mail message. Each such notice of a Borrowing (a "
Notice of Borrowing ") shall be by telephone, confirmed
promptly in writing, or facsimile transmission or electronic mail
message, in substantially the form of Exhibit B hereto,
specifying therein the requested (i) date of such Borrowing,
(ii) Type of Advances comprising such Borrowing,
(iii) aggregate amount of such Borrowing, and (iv) in the
case of a Borrowing consisting of Eurodollar Rate Advances, initial
Interest Period for each such Advance. The Agent shall provide the
Borrower with an acknowledgment of receipt of each Notice of
Borrowing specifying a Eurodollar Rate Advance on the next Business
Day. Each Lender shall, before 2:00 P.M. (New York City time)
on the date of such Borrowing, make available for the account of
its Applicable Lending Office to the Agent at the Agent’s
Account, in same day funds, such Lender’s ratable portion of
such Borrowing. Promptly after the Agent’s receipt of such
funds and upon fulfillment of the applicable conditions set forth
in Article III, the Agent will make such funds available to
the Borrower no later than 4:00 P.M. (New York City time) at the
Agent’s address referred to in Section 8.02.
(b) Anything in Section 2.02 (a) above to the contrary
notwithstanding, (i) the Borrower may not select Eurodollar
Rate Advances for any Borrowing if the aggregate amount of such
Borrowing is less than $5,000,000 or if the obligation of the
Lenders to make Eurodollar Rate Advances shall then be suspended
pursuant to Section 2.07 or 2.11 and (ii) the Eurodollar
Rate Advances may not be outstanding as part of more than ten
separate Borrowings.
(c) Each Notice of Borrowing shall be irrevocable and binding on
the Borrower. In the case of any Borrowing that the related Notice
of Borrowing specifies is to be comprised of Eurodollar Rate
Advances, the Borrower shall indemnify each Lender against any
loss, cost or expense incurred by such Lender as a result of any
failure to fulfill on or before the date specified in such Notice
of Borrowing for such Borrowing the applicable conditions set forth
in Article III, including, without limitation, any loss
(including loss of anticipated profits), cost or expense incurred
by reason of the liquidation or reemployment of deposits or other
funds acquired by such Lender to fund the Advance to be made by
such Lender as part of such Borrowing when such Advance, as a
result of such failure, is not made on such date.
(d) Unless the Agent shall have received notice from a Lender
prior to the time of any Borrowing that such Lender will not make
available to the Agent such Lender’s ratable portion of such
Borrowing, the Agent may assume that such Lender has made such
portion available to the Agent on the date of such Borrowing in
accordance with Section 2.02(a) and the Agent may, in reliance
upon such assumption, make available to the Borrower on such date a
corresponding amount. If and to the extent that such Lender shall
not have so made such ratable portion available to the Agent, such
Lender and the Borrower severally agree to repay to the Agent
forthwith on demand such corresponding amount together with
interest thereon, for each day from the date such amount is made
available to the Borrower until the date such amount is repaid to
the Agent, at (i) in the case of the Borrower, the interest
rate applicable at the time to Advances comprising such Borrowing
and (ii) in the case of such Lender, the Federal Funds Rate.
If such Lender shall repay to the Agent such corresponding amount,
such amount so repaid shall constitute such Lender’s Advance
as part of such Borrowing for purposes of this Agreement.
(e) The failure of any Lender to make the Advance to be made by
it as part of any Borrowing shall not relieve any other Lender of
its obligation, if any, hereunder to make its Advance on the date
of such Borrowing, but
12
no Lender shall be responsible for the failure of
any other Lender to make the Advance to be made by such other
Lender on the date of any Borrowing.
SECTION 2.03. Fees . Fees of the Agent and the
Arrangers . The Borrower shall pay to the Agent and each of the
Arrangers for their respective accounts such fees as may from time
to time be agreed between the Borrower and the Agent and the
Arrangers.
SECTION 2.04. Termination or Reduction of the Commitments
. (a) Optional . The Borrower shall have the right, upon at
least three Business Days’ notice to the Agent, to terminate
in whole or permanently reduce ratably in part the unused portions
of the respective Commitments of the Lenders, provided that
each partial reduction shall be in the aggregate amount of
$5,000,000 or an integral multiple of $1,000,000 in excess
thereof.
(b) Mandatory . The Commitments shall be permanently
reduced, in whole or in part, upon the receipt by the Borrower or
its Subsidiaries of Net Cash Proceeds from (i) the incurrence
or issuance by the Borrower or any of its Subsidiaries of any Debt
for borrowed money (other than (A) intercompany Debt,
(B) Debt incurred under the Existing Credit Agreement (or any
refinancings thereof without increase of the principal amount),
(C) commercial paper facilities, (D) cash management
facilities, (E) other short term borrowings and (F) Debt
incurred by any Subsidiary of the Borrower to finance operations of
such Subsidiary) and (ii) the sale or issuance by the Borrower
or any of its Subsidiaries of any equity interests or equity-linked
securities in the capital markets, in each of case (A) and
(B) in an amount equal to the amount of such Net Cash
Proceeds. Each such reduction shall be applied ratably to the
portions of the respective Commitments of the Lenders.
SECTION 2.05. Repayment . The Borrower shall repay to the
Agent for the ratable account of the Lenders on the Termination
Date the aggregate principal amount of the Advances then
outstanding.
SECTION 2.06. Interest . (a) Scheduled Interest .
The Borrower shall pay interest on the unpaid principal amount of
each Advance owing to each Lender from the date of such Advance
until such principal amount shall be paid in full, at the following
rates per annum:
-
(i) Base Rate Advances . During such periods as such
Advance is a Base Rate Advance, a rate per annum equal at all times
to the Base Rate in effect from time to time, payable in arrears
quarterly on the last day of each March, June, September and
December during such periods and on the date such Base Rate Advance
shall be Converted or paid in full.
(ii) Eurodollar Rate Advances . During such periods as
such Advance is a Eurodollar Rate Advance, a rate per annum equal
at all times during each Interest Period for such Advance to the
sum of (x) the Eurodollar Rate for such Interest Period for
such Advance plus (y) the Applicable Margin in effect
from time to time, payable in arrears on the last day of such
Interest Period and, if such Interest Period has a duration of more
than three months, on each day that occurs during such Interest
Period every three months from the first day of such Interest
Period and on the date such Eurodollar Rate Advance shall be
Converted or paid in full.
(b) Default Interest . Upon the occurrence and during the
continuance of an Event of Default under Section 6.01(a), the
Borrower shall pay interest on (i) the unpaid principal amount
of each Advance owing to each Lender, payable in arrears on the
dates referred to in clause (a)(i) or (a)(ii) above, at a rate
per annum equal at all times to 2.00% above the interest rate
required to be paid on such Advance pursuant to clause (a)(i)
or (a)(ii) above and (ii) to the fullest extent permitted by
law, the amount of any interest, fee or other amount payable
hereunder that is not paid when due, from the date such amount
shall be due until such amount shall be paid in full, payable in
arrears on the date such amount shall be paid in full and on
demand, at a rate per annum equal at all times to 2.00% above the
interest rate required to be paid on Base Rate Advances pursuant to
clause (a)(i) above.
SECTION 2.07. Interest Rate Determination . (a) In the
event that the Eurodollar Rate is to be determined in accordance
with clause (a)(iii) of the definition thereof, each Reference Bank
shall, upon request by the Agent, furnish to the Agent timely
information for the purpose of determining such Eurodollar Rate. In
such case, if any one or more of the Reference Banks shall not
furnish such timely information to the Agent for the
13
purpose of determining any such interest rate,
the Agent shall determine such interest rate on the basis of timely
information furnished by the remaining Reference Bank. The Agent
shall give prompt notice to the Borrower and the Lenders of the
applicable interest rate determined by the Agent for purposes of
Section 2.06(a)(i) or (ii), and the rate, if any, furnished by
each Reference Bank for the purpose of determining the interest
rate under Section 2.06(a)(ii).
(b) If, with respect to any Eurodollar Rate Advances, the
Required Lenders notify the Agent that the Eurodollar Rate for any
Interest Period for such Advances will not adequately reflect the
cost to such Required Lenders of making, funding or maintaining
their respective Eurodollar Rate Advances for such Interest Period,
the Agent shall forthwith so notify the Borrower and the Lenders,
whereupon (i) each Eurodollar Rate Advance will automatically,
on the last day of the then existing Interest Period therefor,
Convert into a Base Rate Advance, and (ii) the obligation of
the Lenders to make, or to Convert Advances into, Eurodollar Rate
Advances shall be suspended until the Agent shall notify the
Borrower and the Lenders that the circumstances causing such
suspension no longer exist.
(c) If the Borrower shall fail to select the duration of any
Interest Period for any Eurodollar Rate Advances in accordance with
the provisions contained in the definition of "Interest Period" in
Section 1.01, the Agent will forthwith so notify the Borrower
and the Lenders and such Advances will automatically, on the last
day of the then existing Interest Period therefor, Convert into
Base Rate Advances.
(d) On the date on which the aggregate unpaid principal amount
of Eurodollar Rate Advances comprising any Borrowing shall be
reduced, by payment or prepayment or otherwise, to less than
$5,000,000, such Advances shall automatically Convert into Base
Rate Advances.
(e) Upon the occurrence and during the continuance of any Event
of Default, (i) each Eurodollar Rate Advance will
automatically, on the last day of the then existing Interest Period
therefor, Convert into a Base Rate Advance and (ii) the
obligation of the Lenders to make, or to Convert Advances into,
Eurodollar Rate Advances shall be suspended.
(f) If no Reference Bank shall timely furnish information to the
Agent for determining the Eurodollar Rate for any Eurodollar Rate
Advances (in the event that clause (a)(iii) of the definition of
Eurodollar Rate shall apply):
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(i) the Agent shall forthwith notify the Borrower and the
Lenders that the interest rate cannot be determined for such
Eurodollar Rate Advances,
(ii) each such Advance will automatically, on the last day of
the then existing Interest Period therefor, Convert into a Base
Rate Advance (or if such Advance is then a Base Rate Advance, will
continue as a Base Rate Advance), and
(iii) the obligation of the Lenders to make, or to Convert
Advances into, Eurodollar Rate Advances shall be suspended until
the Agent shall notify the Borrower and the Lenders that the
circumstances causing such suspension no longer exist.
SECTION 2.08. Conversion of Advances . The Borrower may
on any Business Day, upon notice given to the Agent not later than
1:00 P.M. (New York City time) on the third Business Day
prior to the date of the proposed Conversion and subject to the
provisions of Sections 2.07 and 2.11, Convert all Advances of
one Type comprising the same Borrowing into Advances of the other
Type; provided, however, that any Conversion of Eurodollar Rate
Advances into Base Rate Advances shall be made only on the last day
of an Interest Period for such Eurodollar Rate Advances, any
Conversion of Base Rate Advances into Eurodollar Rate Advances
shall be in an amount not less than the minimum amount specified in
Section 2.02(b) and no Conversion of any Advances shall result
in more separate Borrowings than permitted under
Section 2.02(b). Each such notice of a Conversion shall,
within the restrictions specified above, specify (i) the date
of such Conversion, (ii) the Advances to be Converted, and
(iii) if such Conversion is into Eurodollar Rate Advances, the
duration of the initial Interest Period for each such Advance. Each
notice of Conversion shall be irrevocable and binding on the
Borrower.
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SECTION 2.09. Prepayments . (a)
Optional . The Borrower may, upon same day notice not later
than 12:00 noon (New York City time), with respect to Base Rate
Advances or at least three Business Days’ notice with respect
to Eurodollar Rate Advances to the Agent stating the proposed date
and aggregate principal amount of the prepayment, and if such
notice is given the Borrower shall, prepay the outstanding
principal amount of the Advances comprising part of the same
Borrowing in whole or ratably in part, together with accrued
interest to the date of such prepayment on the principal amount
prepaid; provided , however , that (x) each
partial prepayment shall be in an aggregate principal amount of
$5,000,000 or an integral multiple of $1,000,000 in excess thereof
and (y) in the event of any such prepayment of a Eurodollar
Rate Advance, the Borrower shall be obligated to reimburse the
Lenders in respect thereof pursuant to
Section 8.04(c).
(b) Mandatory . (i) The Borrower shall, on the first
Business Day after the date of receipt of the Net Cash Proceeds by
the Borrower or any of its Subsidiaries from (A) the
incurrence or issuance by the Borrower or any of its Subsidiaries
of any Debt for borrowed money (other than (1) intercompany
Debt, (2) Debt incurred under the Existing Credit Agreement or
refinancings thereof (without increase in the principal amount
thereof), (3) commercial paper facilities, (4) cash
management facilities, (5) other short term borrowings and
(6) Debt incurred by any Subsidiary of the Borrower to finance
operations of such Subsidiary) and (B) the sale or issuance by
the Borrower or any of its Subsidiaries of any equity interests or
equity-linked securities in the capital markets, prepay an
aggregate principal amount of the Advances comprising part of the
same Borrowings in an amount equal to the amount of such Net Cash
Proceeds. Each such prepayment shall be applied ratably to the
Advances comprising a Borrowing.
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(ii) Each prepayment made pursuant to this Section 2.09(b)
shall be made together with any interest accrued to the date of
such prepayment on the principal amounts prepaid and, in the case
of any prepayment of a Eurodollar Rate Advance on a date other than
the last day of an Interest Period or at its maturity, any
additional amounts which the Borrower shall be obligated to
reimburse to the Lenders in respect thereof pursuant to
Section 8.04(c). The Agent shall give prompt notice of any
prepayment required under this Section 2.09(b) to the Borrower
and the Lenders.
SECTION 2.10. Increased Costs . (a) If, due to either
(i) the introduction of or any change in or in the
interpretation of any law or regulation after the date hereof or
(ii) the compliance with any guideline or request issued or
made after the date hereof by any central bank or other
governmental authority having jurisdiction over a Lender (whether
or not having the force of law), there shall be any increase in the
cost to such Lender of agreeing to make or making, funding or
maintaining Eurodollar Rate Advances (excluding for purposes of
this Section 2.10 any such increased costs resulting from
(A) Taxes or Other Taxes (as to which Section 2.13 shall
govern) and (B) changes in the basis of taxation of overall
net income or overall gross income by the United States or by the
foreign jurisdiction or state under the laws of which such Lender
is organized or has its Applicable Lending Office or any political
subdivision thereof), then the Borrower shall from time to time,
within five days after written demand by such Lender together with
a calculation of the amount demanded in reasonable detail (with a
copy of such demand to the Agent), pay to the Agent for the account
of such Lender additional amounts sufficient to compensate such
Lender for such increased cost; provided , however ,
that the Borrower shall not be liable under this
Section 2.10(a) for the payment of any such amounts incurred
or accrued more than 90 days prior to the date on which notice of
the event or occurrence giving rise to the obligation to make such
payment is given to the Borrower hereunder; provided ,
further , that if the event or occurrence giving rise to
such obligation is retroactive, then the 90-day period referred to
above shall be extended to include the period of retroactive effect
thereof; provided further that (1) if the
Borrower objects in good faith to any payment demanded under this
Section 2.10(a) on or before the date such payment is due,
then the Borrower and the Lender demanding such payment shall enter
into discussions to review the amount due and the Borrower’s
obligation to pay such amount to such Lender shall be deferred for
30 days after the original demand for payment and (2) if the
Borrower and such Lender do not otherwise reach agreement on the
amount due during such 30 day period, the Borrower shall pay to
such Lender at the end of such 30 day period the amount certified
by such Lender to be due. Subject to the last proviso in the
preceding sentence, a certificate as to such amounts submitted to
the Borrower and the Agent by any Lender shall be conclusive and
binding for all purposes, absent manifest error. If any Lender
shall request any paym
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