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Exhibit
10.1
EXECUTION
COPY
TERM LOAN CREDIT
AGREEMENT
Dated as of February 13,
2008
among
CHILL INTERMEDIATE
HOLDINGS, INC.,
as Holdings
CHILL ACQUISITION,
INC.,
which on the Closing Date
shall be merged with and into
GOODMAN GLOBAL,
INC.,
(with GOODMAN GLOBAL, INC.
surviving such merger as the Borrower)
The Several
Lenders
from Time to Time Parties
Hereto,
GENERAL ELECTRIC CAPITAL
CORPORATION,
as Administrative Agent and
Collateral Agent,
BARCLAYS
CAPITAL,
and
CALYON NEW YORK
BRANCH,
as Joint Lead
Arrangers,
and
BARCLAYS
CAPITAL,
CALYON NEW YORK
BRANCH,
and
GENERAL ELECTRIC CAPITAL
CORPORATION,
as Joint
Bookrunners,
EXECUTION
COPY
TABLE OF
CONTENTS
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Page
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Section 1.
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Definitions |
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2 |
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1.1
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Defined
Terms |
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2 |
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1.2
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Other
Interpretive Provisions |
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46 |
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1.3
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Accounting Terms |
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47 |
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1.4
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Rounding |
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47 |
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1.5
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References to Agreements, Laws, Etc |
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47 |
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1.6
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Times of
Day |
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47 |
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1.7
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Timing of
Payment of Performance |
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47 |
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1.8
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Currency
Equivalents Generally |
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47 |
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Section 2.
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Amount
and Terms of Credit Facilities |
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48 |
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2.1
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Loans |
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48 |
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2.2
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Minimum
Amount of Each Borrowing; Maximum Number of
Borrowings |
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48 |
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2.3
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Notice of
Borrowing |
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48 |
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2.4
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Disbursement of Funds |
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49 |
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2.5
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Repayment
of Loans; Evidence of Debt |
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50 |
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2.6
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Conversions and Continuations |
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51 |
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2.7
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Pro Rata
Borrowings |
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52 |
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2.8
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Interest |
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52 |
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2.9
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Interest
Periods |
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53 |
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2.10
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Increased
Costs, Illegality, etc |
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54 |
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2.11
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Compensation |
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56 |
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2.12
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Change of
Lending Office |
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56 |
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2.13
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Notice of
Certain Costs |
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56 |
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Section 3.
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Fees; Commitment Terminations |
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57 |
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3.1
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Fees |
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57 |
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3.2
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Mandatory
Termination of Commitments |
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57 |
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Section 4.
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Payments |
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57 |
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4.1
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Voluntary
Prepayments |
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57 |
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4.2
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Mandatory
Prepayments |
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57 |
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4.3
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Method
and Place of Payment |
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60 |
EXECUTION
COPY
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4.4
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Net
Payments |
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60 |
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4.5
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Computations of Interest and Fees |
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63 |
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4.6
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Limit on
Rate of Interest |
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63 |
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Section 5.
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Conditions Precedent to Initial Credit Event |
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64 |
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5.1
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Credit
Documents |
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64 |
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5.2
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Collateral |
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64 |
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5.3
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Legal
Opinions |
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65 |
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5.4
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Structure
and Terms of the Transactions |
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65 |
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5.5
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Closing
Certificates |
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66 |
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5.6
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Corporate
Proceedings |
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66 |
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5.7
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Corporate
Documents |
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66 |
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5.8
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Fees and
Expenses |
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66 |
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5.9
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Solvency
Certificate |
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66 |
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5.10
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Financial
Statements |
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66 |
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5.11
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Insurance
Certificates |
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67 |
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5.12
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Company
Material Adverse Effect |
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67 |
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5.13
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Closing
EBITDA |
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67 |
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5.14
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Representations and Warranties |
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67 |
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Section 6.
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Conditions Precedent to All Credit Events |
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67 |
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6.1
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No
Default; Representations and Warranties |
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67 |
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6.2
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Notice of
Borrowing |
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68 |
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Section 7.
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Representations, Warranties and Agreements |
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68 |
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7.1
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Corporate
Status |
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68 |
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7.2
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Corporate
Power and Authority; Enforceability |
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68 |
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7.3
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No
Violation |
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69 |
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7.4
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Litigation |
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69 |
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7.5
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Margin
Regulations |
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69 |
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7.6
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Governmental Approvals |
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69 |
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7.7
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Investment Company Act |
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69 |
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7.8
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True and
Complete Disclosure |
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69 |
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7.9
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Financial
Statements |
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70 |
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7.10
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Tax
Returns and Payments, etc |
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70 |
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7.11
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Compliance with ERISA |
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70 |
ii
EXECUTION
COPY
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7.12
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Subsidiaries |
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71 |
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7.13
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Intellectual Property |
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71 |
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7.14
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Environmental Laws |
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72 |
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7.15
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Properties, Assets and Rights |
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72 |
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7.16
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Solvency |
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72 |
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7.17
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Material
Adverse Change |
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72 |
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Section 8.
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Affirmative Covenants |
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73 |
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8.1
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Information Covenants |
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73 |
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8.2
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Books,
Records and Inspections |
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77 |
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8.3
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Maintenance of Insurance |
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77 |
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8.4
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Payment
of Taxes |
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77 |
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8.5
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Consolidated Corporate Franchises |
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78 |
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8.6
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Compliance with Statutes |
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78 |
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8.7
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ERISA |
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78 |
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8.8
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Good
Repair |
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79 |
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8.9
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End of
Fiscal Years; Fiscal Quarters |
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79 |
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8.10
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Additional Guarantors and Grantors |
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79 |
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8.11
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Pledges
of Additional Stock and Evidence of Indebtedness |
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79 |
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8.12
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Use of
Proceeds |
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80 |
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8.13
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Changes
in Business |
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80 |
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8.14
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Further
Assurances |
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80 |
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8.15
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Designation of Subsidiaries |
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81 |
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8.16
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Interest
Rate Protection |
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81 |
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8.17
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Maintenance of Ratings |
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82 |
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8.18
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Senior
Indebtedness |
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82 |
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8.19
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Post-Closing Covenants |
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82 |
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Section 9.
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Negative
Covenants |
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82 |
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9.1
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Limitation on Indebtedness |
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82 |
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9.2
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Limitation on Liens |
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86 |
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9.3
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Limitation on Fundamental Changes |
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89 |
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9.4
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Limitation on Sale of Assets |
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91 |
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9.5
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Limitation on Investments |
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94 |
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9.6
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Limitation on Dividends |
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96 |
iii
EXECUTION
COPY
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9.7
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Limitations on Debt Payments and Amendments |
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99 |
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9.8
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Limitations on Sale Leasebacks |
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99 |
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9.9
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Negative
Pledge Clauses |
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99 |
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9.10
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Passive
Holding Company |
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100 |
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9.11
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Financial
Covenants |
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101 |
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9.12
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Transactions with Affiliates |
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104 |
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Section 10.
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Events of
Default |
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105 |
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10.1
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Payments |
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105 |
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10.2
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Representations, etc |
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105 |
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10.3
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Covenants |
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105 |
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10.4
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Default
Under Other Agreements |
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106 |
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10.5
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Bankruptcy, etc |
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106 |
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10.6
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ERISA |
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106 |
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10.7
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Guarantee |
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107 |
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10.8
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Security
Documents |
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107 |
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10.9
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Subordination |
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107 |
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10.10
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Judgments |
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107 |
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10.11
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Change of
Control |
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107 |
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10.12
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Borrower’s Right to Cure |
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108 |
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Section 11.
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The
Administrative Agent and Collateral Agent |
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108 |
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11.1
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Appointment |
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108 |
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11.2
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Limited
Duties |
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109 |
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11.3
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Binding
Effect |
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109 |
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11.4
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Delegation of Duties |
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109 |
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11.5
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Exculpatory Provisions |
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109 |
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11.6
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Reliance
by Administrative Agent |
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110 |
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11.7
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Notice of
Default |
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110 |
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11.8
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Non-Reliance on Administrative Agent and Other
Lenders |
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110 |
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11.9
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Indemnification |
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111 |
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11.10
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GECC in
its Individual Capacity |
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111 |
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11.11
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Successor
Agent |
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112 |
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11.12
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Withholding Tax |
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112 |
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11.13
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Duties as
Collateral Agent and as paying agent |
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113 |
iv
EXECUTION
COPY
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11.14
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Authorization to Release Liens and Guarantees |
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113 |
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Section 12.
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Miscellaneous |
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113 |
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12.1
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Amendments and Waivers |
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113 |
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12.2
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Notices
and Other Communications; Facsimile Copies |
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115 |
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12.3
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No
Waiver; Cumulative Remedies |
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116 |
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12.4
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Survival
of Representations and Warranties |
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116 |
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12.5
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Payment
of Expenses and Taxes; Indemnification |
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116 |
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12.6
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Successors and Assigns; Participations and
Assignments |
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117 |
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12.7
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Replacements of Lenders under Certain Circumstances |
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122 |
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12.8
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Adjustments; Set-off |
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122 |
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12.9
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Counterparts |
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123 |
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12.10
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Severability |
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123 |
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12.11
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Integration |
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123 |
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12.12
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GOVERNING
LAW |
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123 |
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12.13
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Submission to Jurisdiction; Waivers |
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123 |
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12.14
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Acknowledgments |
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124 |
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12.15
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WAIVERS
OF JURY TRIAL |
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124 |
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12.16
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Confidentiality |
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125 |
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12.17
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Release
of Collateral and Guarantee Obligations; Subordination of
Liens |
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125 |
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12.18
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USA
PATRIOT ACT |
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126 |
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12.19
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Legend |
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126 |
v
EXECUTION
COPY
SCHEDULES
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| Schedule 1.1(a) |
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Commitments
and Addresses of Lenders |
| Schedule 1.1(b) |
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Mortgaged
Property |
| Schedule 5.4(d) |
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Indebtedness
to be refinanced on the Closing Date |
| Schedule 7.12 |
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Subsidiaries |
| Schedule 7.15 |
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Owned Real
Property |
| Schedule 8.19 |
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Post-Closing
Covenants |
| Schedule 9.1 |
|
Indebtedness |
| Schedule 9.2 |
|
Liens |
| Schedule 9.4 |
|
Dispositions |
| Schedule 9.5 |
|
Investments |
| Schedule 9.9 |
|
Negative
Pledge Clauses |
| Schedule 9.12 |
|
Transactions
with Affiliates |
| Schedule 12.2 |
|
Addresses
for Notices |
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| EXHIBITS |
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| Exhibit A |
|
Form of
Assignment and Acceptance |
| Exhibit B |
|
Form of
Guarantee |
| Exhibit C |
|
Form of
Mortgage |
| Exhibit D |
|
Form of
Perfection Certificate |
| Exhibit E-1 |
|
Form of
Security Agreement |
| Exhibit E-2 |
|
Form of
Pledge Agreement |
| Exhibit F |
|
Form of
Notice of Borrowing |
| Exhibit G-1 |
|
Form of
Legal Opinion of Simpson Thacher & Bartlett LLP |
| Exhibit G-2 |
|
Form of
Legal Opinion of Akerman Senterfitt |
| Exhibit G-3 |
|
Form of
Legal Opinion of Andrews Kurth LLP |
| Exhibit H |
|
Form of
Closing Certificate |
| Exhibit I |
|
Form of
Promissory Note |
| Exhibit J |
|
Form of
Intercompany Note |
vi
EXECUTION
COPY
CREDIT AGREEMENT ,
dated as of February 13, 2008, among CHILL
INTERMEDIATE HOLDINGS, INC. , a Delaware corporation (“
Holdings ”), CHILL ACQUISITION, INC. , a
Delaware corporation (“ Merger Sub ”, which on
the Closing Date shall be merged with and into GOODMAN GLOBAL,
INC, a Delaware corporation (the “ Company
”), with the Company surviving such merger as the borrower)
(the “ Borrower ”), the lending institutions
from time to time parties hereto (each a “ Lender
” and, collectively, the “ Lenders ”),
BARCLAYS CAPITAL , the investment banking division of
BARCLAYS BANK PLC and CALYON NEW YORK BRANCH , as
Joint Lead Arrangers, BARCLAYS CAPITAL , the investment
banking division of BARCLAYS BANK PLC , CALYON NEW YORK
BRANCH and GENERAL ELECTRIC CAPITAL CORPORATION , as
joint bookrunners (the “ Joint Bookrunners ”),
and GENERAL ELECTRIC CAPITAL CORPORATION (“
GECC ”), as the Administrative and Collateral
Agent.
RECITALS:
WHEREAS , capitalized
terms used and not defined in the preamble and these recitals shall
have the respective meanings set forth for such terms in
Section 1.1 hereof;
WHEREAS , pursuant to
the Acquisition Agreement, Merger Sub will be merged with and into
the Company, in accordance with the terms thereof, with the Company
surviving such merger (the “ Merger
”);
WHEREAS , in order to
fund, in part, the Merger Funds (as defined below), the Investors
will directly or indirectly make cash equity contributions (the
“ Equity Contribution ”) to Merger Sub (through
Holdings) in an aggregate amount equal to, when combined with the
fair market value of the equity of management and existing
shareholders of the Company rolled over or invested in connection
with the Transactions, at least 40% of the total sources required
to consummate the Merger (the “ Merger Consideration
”), to refinance, repurchase, redeem and/or repay the
Existing Notes and certain other existing indebtedness of the
Company and its Subsidiaries (the “ Refinancing
”), and to pay fees and expenses incurred in connection with
the Transactions (such fees and expenses, together with the Merger
Consideration and the Refinancing payment, the “ Merger
Funds ”), excluding cash-on-hand at the Company used to
fund a portion of the Merger Funds;
WHEREAS , in order to
fund, in part, the Merger Funds, the Borrower will (x) borrow
up to $105,000,000 in aggregate principal amount (plus any Existing
Notes Additional Redemption Amount (as such term is defined in the
Revolving Credit Agreement) of Revolving Credit Loans pursuant to
the Revolving Credit Agreement and (y) issue up to
$500,000,000 in aggregate principal amount of Senior Subordinated
Notes pursuant to the Senior Subordinated Notes
Indenture;
WHEREAS , in
connection with the foregoing, the Borrower and Holdings have
requested that the Lenders make available on the Closing Date to
the Borrower the Term Loans for the purposes specified in this
Agreement in the maximum aggregate principal amount of $800,000,000
(the “ Credit Facility ”);
EXECUTION
COPY
WHEREAS , in
connection with the foregoing and as an inducement for the Lenders
to extend the credit contemplated hereunder, the Borrower has
agreed to secure all of its Obligations by granting to the
Collateral Agent, for the benefit of Secured Parties, a first
priority lien on its assets (except for Liens permitted pursuant to
Section 9.2 and as otherwise set forth in the Intercreditor
Agreement), including a pledge of all of the Capital Stock (other
than Excluded Capital Stock) of each of its
Subsidiaries; and
WHEREAS , in
connection with the foregoing and as an inducement for the Lenders
to extend the credit contemplated hereunder, the Guarantors have
agreed to guarantee the Obligations and to secure their respective
guarantees by granting to the Collateral Agent, for the benefit of
Secured Parties, a first priority lien on their respective assets
(except for Liens permitted pursuant to Section 9.2 and as
otherwise set forth in the Intercreditor Agreement), including a
pledge of all of the Capital Stock (other than Excluded Capital
Stock) of each of their respective Subsidiaries.
AGREEMENT:
NOW, THEREFORE , in
consideration of the premises and the agreements, provisions and
covenants herein contained, the parties hereto agree as
follows:
SECTION 1.
Definitions
1.1 Defined Terms (a)
As used herein, the following terms shall have the meanings
specified in this Section 1.1 unless the context otherwise
requires:
“ ABR ”
shall mean, for any day, a rate per annum equal to the greater of
(a) the Prime Rate in effect on such day and (b) the
Federal Funds Effective Rate in effect on such day plus 1 / 2 of 1%. If the
Administrative Agent is unable to ascertain the Federal Funds
Effective Rate due to its inability to obtain sufficient quotations
in accordance with the definition thereof, after notice is provided
to the Borrower, the ABR shall be determined without regard to
clause (b) of the preceding sentence until the circumstances
giving rise to such inability no longer exist. Any change in the
ABR due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective as of the opening of business on
the effective day of such change in the Prime Rate or the Federal
Funds Effective Rate, respectively.
“ ABR Loan
” shall mean each Loan bearing interest at the rate provided
in Section 2.8(a).
“ Acceptable
Reinvestment Commitment ” shall mean a binding commitment
of the Borrower or any Restricted Subsidiary entered into at any
time prior to the end of the Reinvestment Period to reinvest the
proceeds of an Asset Sale Prepayment Event, Permitted Sale
Leaseback or Recovery Prepayment Event.
“ Acquired
EBITDA ” shall mean, with respect to any Pro Forma Entity
for any period, the amount for such period of Consolidated EBITDA
of such Pro Forma Entity (determined as if references to the
Borrower and the Restricted Subsidiaries in the definition of the
term “ Consolidated EBITDA ” were references to
such Pro Forma Entity and its subsidiaries which will become
Restricted Subsidiaries), all as determined on a consolidated basis
for such Pro Forma Entity.
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“ Acquired Entity or
Business ” shall have the meaning provided in the
definition of the term “ Consolidated EBITDA
”.
“ Acquisition
Agreement ” shall mean the Agreement and Plan of Merger,
dated as of October 21, 2007, among, inter alia the Company,
Chill Holdings, Inc. and Merger Sub, together with all exhibits and
schedules thereto.
“ Administrative
Agent ” shall mean GECC, or any successor to GECC
appointed in accordance with the provisions of Section 11.11,
together with its affiliates, as the administrative agent for the
Lenders under this Agreement and the other Credit
Documents.
“ Administrative
Agent’s Office ” shall mean the office of the
Administrative Agent located at 299 Park Avenue, Fifth Floor, New
York NY, 10171 or such other office as the Administrative Agent may
hereafter designate in writing as such to the other parties
hereto.
“ Affiliate
” shall mean, with respect to any Person, another Person that
directly, or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the
Person specified. The term “ Control ” means the
possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether
through the ability to exercise voting power, by contract or
otherwise. The terms “ Controlling ” and “
Controlled ” have meanings correlative
thereto.
“ Agents ”
shall mean the Joint Lead Arrangers, the Administrative Agent and
the Collateral Agent.
“ Agreement
” shall mean this Credit Agreement.
“ Applicable
Laws ” shall mean, as to any Person, any law (including
common law), statute, regulation, ordinance, rule, order, decree,
judgment, consent decree, writ, injunction, settlement agreement or
governmental requirement enacted, promulgated or imposed or entered
into or agreed by any Governmental Authority, in each case
applicable to or binding on such Person or any of its property or
assets or to which such Person or any of its property or assets is
subject.
“ Applicable
Margin ” shall mean, a percentage per annum equal to
(i) during the period from the Closing Date to but excluding
the Initial Financial Statement Delivery Date, (A) for
Eurodollar Term Loans, 4.25% and (B) for ABR Loans, 3.25% and
(ii) thereafter, the following percentages per annum, based
upon the Consolidated Total Debt to Consolidated EBITDA Ratio as
set forth in the most recent certificate received by the
Administrative Agent pursuant to Section 8.1(d):
|
|
|
|
|
|
|
|
Pricing
Level
|
|
Consolidated
Total
Debt to
Consolidated
EBITDA
Ratio
|
|
Applicable Margin
for
Eurodollar
Term
Loans
|
|
Applicable
Margin
for ABR
Loans
|
|
1
|
|
Greater than or equal to 4:1.0 |
|
4.25% |
|
3.25% |
|
2
|
|
Less than 4:1.0 |
|
4.00% |
|
3.00% |
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Any increase or decrease in
the Applicable Margin resulting from a change in the Consolidated
Total Debt to Consolidated EBITDA Ratio shall become effective as
of the first Business Day immediately following the date
Section 8.1 Financials are delivered to the Administrative
Agent pursuant to Sections 8.1(a) and 8.1(b);
provided that at the option of the Required Lenders, the
highest Pricing Level (as set forth in the tables above) shall
apply (i) as of the first Business Day after the date on which
Section 8.1 Financials were required to have been delivered
but have not been delivered pursuant to Section 8.1 and shall
continue to so apply to and including the date on which such
Financials Section 8.1 Financials are so delivered (and
thereafter the Pricing Level otherwise determined in accordance
with this definition shall apply), and (ii) as of the first
Business Day after an Event of Default under Section 10 shall
have occurred and be continuing and the Administrative Agent has
notified that the highest Pricing Level applies, and shall continue
to so apply to but excluding the date on which such Event of
Default shall cease to be continuing (and thereafter the Pricing
Level otherwise determined in accordance with this definition shall
apply).
In the event that the
Administrative Agent and the Borrower determine that any
Section 8.1 Financials previously delivered were incorrect or
inaccurate (regardless of whether this Agreement or the Commitments
are in effect when such inaccuracy is discovered), and such
inaccuracy, if corrected, would have led to the application of a
higher Applicable Margin for any period (an “ Applicable
Period ”) than the Applicable Margin applied for such
Applicable Period, then (i) the Borrower shall as soon as
practicable deliver to the Administrative Agent the correct
Section 8.1 Financials for such Applicable Period,
(ii) the Applicable Margin shall be determined as if the
Pricing Level for such higher Applicable Margin were applicable for
such Applicable Period, and (iii) the Borrower shall within 3
Business Days of demand thereof by the Administrative Agent pay to
the Administrative Agent the accrued additional interest owing as a
result of such increased Applicable Margin for such Applicable
Period, which payment shall be promptly applied by the
Administrative Agent in accordance with this Agreement. This
paragraph shall not limit the rights of the Administrative Agent
and Lenders with respect to Section 2.8(c) and
Section 10.
“ Approved Fund
” shall have the meaning provided in
Section 12.6(b).
“ Asset Sale
Prepayment Event ” shall mean any sale, transfer or other
disposition (or series of related sales, transfers or dispositions)
of any business unit, asset or property of the Borrower or any
Restricted Subsidiary (including any sale, transfer or other
disposition of any Capital Stock of any Subsidiary of the Borrower
owned by the Borrower or any Restricted Subsidiary);
provided that the term “ Asset Sale Prepayment
Event ” shall not include (a) any Recovery Event or
any Permitted Sale Leaseback or (b) any sale, transfer or
other disposition permitted under clauses (a), (b), (d)(i),
(e), (f), (i), (l) and (m) of
Section 9.4.
“ Assignment and
Acceptance ” shall mean an assignment and acceptance
entered into by a Lender and an assignee substantially in the form
of Exhibit A.
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“ Attributable
Indebtedness ” shall mean, on any date, in respect of any
Capitalized Lease of any Person, the capitalized amount thereof
that would appear on a balance sheet of such Person prepared as of
such date in accordance with GAAP.
“ Authorized
Officer ” shall mean the Chairman of the Board, the
President, the Chief Executive Officer, the Chief Financial
Officer, the Chief Operating Officer, the Treasurer, the Assistant
Treasurer, with respect to certain limited liability companies or
partnerships that do not have officers, any manager, managing
member or general partner thereof, any other senior officer of
Holdings, the Borrower or any other Credit Party designated as such
in writing to the Administrative Agent by Holdings, the Borrower or
any other Credit Party, as applicable, and, with respect to any
document (other than the solvency certificate) delivered on the
Closing Date, the Secretary or the Assistant Secretary of any
Credit Party. Any document delivered hereunder that is signed by an
Authorized Officer shall be conclusively presumed to have been
authorized by all necessary corporate, limited liability company,
partnership and/or other action on the part of Holdings, the
Borrower or any other Credit Party and such Authorized Officer
shall be conclusively presumed to have acted on behalf of such
Person.
“ Available
Amount ” shall mean, at any time (the “
Available Amount Reference Time ”), an amount equal at
such time to the sum of, without duplication:
(a) the amount (which amount
shall not be less than zero) equal to 50% of the Cumulative
Consolidated Net Income of the Borrower and the Restricted
Subsidiaries;
(b) to the extent not already
included in the calculation of Consolidated Net Income, the
aggregate amount of all cash dividends and other cash distributions
received by the Borrower or any Restricted Subsidiary from any
Minority Investments or Unrestricted Subsidiaries after the Closing
Date through and including the Available Amount Reference Time
(other than the portion of any such dividends and other
distributions that is used by the Borrower or any Restricted
Subsidiary to pay taxes);
(c) to the extent not already
included in the calculation of Consolidated Net Income, the
aggregate amount of all cash repayments of principal received by
the Borrower or any Restricted Subsidiary from any Minority
Investments or Unrestricted Subsidiaries after the Closing Date
through and including the Available Amount Reference Time in
respect of loans made by the Borrower or any Restricted Subsidiary
to such Minority Investments or Unrestricted
Subsidiaries; and
(d) to the extent not already
included in the calculation of Consolidated Net Income or applied
to prepay the Term Loans in accordance with Section 4.2(a)(i),
the aggregate amount of all net cash proceeds received by the
Borrower or any Restricted Subsidiary in connection with the sale,
transfer or other disposition of its ownership interest in any
Minority Investment or Unrestricted Subsidiary after the Closing
Date through and including the Available Amount Reference
Time; and
(e) to the extent not already
included in the calculation of Consolidated Net Income, the
aggregate amount of any Final Refused Proceeds retained by the
Borrower during the period from and including the Business Day
immediately following the Closing Date through and including the
Available Amount Reference Time,
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minus the sum of,
without duplication and without taking into account the actual
usage of the Available Amount being made at the applicable
Available Amount Reference Time:
(i) the aggregate amount of
any Investments made by Holdings, the Borrower or any Restricted
Subsidiary pursuant to clause (iii) of the proviso to
Section 9.5(q) and clause (iii) of the proviso to
Section 9.5(r) after the Closing Date and prior to the
Available Amount Reference Time;
(ii) the aggregate amount of
any Dividends made by Holdings pursuant to clause (ii)(B) of
Section 9.6(f) after the Closing Date and prior to the
Available Amount Reference Time; and
(iii) the aggregate amount of
prepayments, repurchases, redemptions and defeasances made by
Holdings, the Borrower or any Restricted Subsidiary pursuant to
clause (B)(y) of the proviso to Section 9.7(a)(ii) after
the Closing Date and prior to the Available Amount Reference
Time; and
(iv) the aggregate amount of
Capital Expenditures made by the Borrower or any Restricted
Subsidiary pursuant to Section 9.11(c)(i)(z) after the Closing
Date and prior to the Available Amount Reference Time.
“ Available Amount
Reference Time ” shall have the meaning provided in the
definition of the term “ Available Amount
”.
“ Available Equity
Amount ” shall mean, at any time (the “
Available Equity Amount Reference Time ”), an amount
equal to, without duplication, (a) the amount of any capital
contributions or other equity issuances (other than the Equity
Contribution, issuances of Permitted Cure Securities or any other
capital contribution or equity issuance to the extent utilized in
connection with other transactions permitted pursuant to
Section 9.5 or Section 9.6) received as cash equity by
the Borrower (through Holdings) during the period from and
including the Business Day immediately following the Closing Date
through and including the Available Equity Amount Reference Time,
but excluding all proceeds from the issuance of Disqualified
Capital Stock, minus (b) the sum, without duplication,
of:
(i) the aggregate amount of
any Investments made by Holdings, the Borrower or any Restricted
Subsidiary pursuant to clause (ii) of the proviso to
Section 9.5(q) and clause (ii) of the proviso to
Section 9.5(r) after the Closing Date and prior to the
Available Equity Amount Reference Time;
(ii) the aggregate amount of
any Dividends made by Holdings pursuant to clause (i) of
Section 9.6(f) after the Closing Date and prior to the
Available Equity Amount Reference Time;
(iii) the aggregate amount of
prepayments, repurchases, redemptions and defeasances made by
Holdings, the Borrower or any Restricted Subsidiary pursuant to
clause (A) of the proviso to Section 9.7(a)(ii) after the
Closing Date and prior to the Available Equity Amount Reference
Time; and
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(iv) the aggregate amount of
Capital Expenditures made by the Borrower or any Restricted
Subsidiary pursuant to Section 9.11(c)(i)(y) after the Closing
Date and prior to the Available Equity Amount Reference
Time.
“ Available Equity
Amount Reference Time ” shall have the meaning provided
in the definition of the term “ Available Equity
Amount ”.
“ Bankruptcy
Code ” shall mean Title 11 of the United States Code, as
amended, or any similar federal or state law for the relief of
debtors.
“ Board ”
shall mean the Board of Governors of the Federal Reserve System of
the United States (or any successor).
“ Borrower
” shall have the meaning provided in the preamble to this
Agreement.
“ Borrowing
” shall mean and include the incurrence of one Type of Term
Loan on the Closing Date (or resulting from conversions on a given
date after the Closing Date) having, in the case of Eurodollar Term
Loans, the same Interest Period ( provided that ABR Loans
incurred pursuant to Section 2.10(b) shall be considered part
of any related Borrowing of Eurodollar Term Loans).
“ Business Day
” shall mean (a) any day excluding Saturday, Sunday and
any day that shall be in The City of New York a legal holiday or a
day on which banking institutions are authorized by law or other
governmental actions to close and (b) if the applicable
Business Day relates to any Eurodollar Term Loans, any day on which
dealings in deposits in Dollars are carried on in the London
interbank eurodollar market.
“ Capital
Expenditures ” shall mean, for any period, the aggregate
of, without duplication, (a) all expenditures (whether paid in
cash or accrued as liabilities) by the Borrower and the Restricted
Subsidiaries during such period that, in conformity with GAAP, are
or are required to be included as additions during such period to
property, plant or equipment reflected in the consolidated balance
sheet of the Borrower and the Restricted Subsidiaries, (b) all
Capitalized Software Expenditures during such period, and
(c) all fixed asset additions financed through Capital Lease
Obligations incurred by the Borrower and the Restricted
Subsidiaries and recorded on the balance sheet in accordance with
GAAP during such period; provided that the term
“ Capital Expenditures ” shall not include
(i) expenditures made in connection with the replacement,
substitution, restoration or repair of assets to the extent
financed from insurance proceeds or compensation awards paid on
account of a Recovery Event, (ii) the purchase price of
equipment that is purchased simultaneously with the trade-in of
existing equipment to the extent that the gross amount of such
purchase price is reduced by the credit granted by the seller of
such equipment for the equipment being traded in at such time,
(iii) the purchase of plant, property or equipment to the
extent financed with the proceeds of sales, transfers or other
dispositions that are not required to be applied to prepay Term
Loans pursuant to Section 4.2(a)(i), (iv) expenditures
that constitute any part of Consolidated Lease Expense,
(v) expenditures that are accounted for as capital
expenditures by the Borrower or any Restricted Subsidiary and
that
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actually are paid for by a Person other
than the Borrower or any Restricted Subsidiary and for which
neither the Borrower nor any Restricted Subsidiary has provided or
is required to provide or incur, directly or indirectly, any
consideration or obligation to such Person or any other Person
(whether before, during or after such period, it being understood,
however, that only the amount of expenditures actually provided or
incurred by the Borrower or any Restricted Subsidiary in such
period and not the amount required to be provided or incurred in
any future period shall constitute “Capital
Expenditures” in the applicable period), (vi) the book
value of any asset owned by the Borrower or any Restricted
Subsidiary prior to or during such period to the extent that such
book value is included as a capital expenditure during such period
as a result of such Person reusing or beginning to reuse such asset
during such period without a corresponding expenditure actually
having been made in such period; provided that (x) any
expenditure necessary in order to permit such asset to be reused
shall be included as a Capital Expenditure during the period in
which such expenditure actually is made and (y) such book
value shall have been included in Capital Expenditures when such
asset was originally acquired, (vii) any expenditures that
constitute Permitted Acquisitions and expenditures made in
connection with the Transactions or (viii) any capitalized
interest expense reflected as additions to property, plant or
equipment in the consolidated balance sheet of the Borrower and the
Restricted Subsidiaries or capitalized as Capitalized Software
Expenditures for such period.
“ Capital Stock
” shall mean 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.
“ Capitalized Lease
Obligations ” shall mean, as applied to any Person, all
obligations under Capitalized Leases of such Person or any of its
Subsidiaries, in each case taken at the amount thereof accounted
for as liabilities in accordance with GAAP.
“ Capitalized
Leases ” shall mean, as applied to any Person, all leases
of property that have been or should be, in accordance with GAAP,
recorded as capitalized leases of such Person.
“ Capitalized
Software Expenditures ” shall mean, for any period, the
aggregate of all expenditures (whether paid in cash or accrued as
liabilities) by the Borrower and the Restricted Subsidiaries during
such period in respect of purchased software or internally
developed software and software enhancements that, in conformity
with GAAP, are or are required to be reflected as capitalized costs
on the consolidated balance sheet of the Borrower and the
Restricted Subsidiaries.
“ Cash Management
Bank ” shall mean any Person that is a Lender or an
Affiliate of a Lender at the time it provides any Cash Management
Services or that is a Lender or an Affiliate of a Lender at any
time after it has provided any Cash Management Services, including
each Person deemed to be “Cash Management Bank”
pursuant to the definition of the term “ Cash Management
Bank ” in the Revolving Credit Agreement or in the
documentation governing any Permitted Refinancing Indebtedness
incurred to Refinance such Indebtedness.
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“ Cash Management
Obligations ” shall mean obligations owed by Holdings,
the Company or any Restricted Subsidiary to any Cash Management
Bank in connection with, or in respect of, any Cash Management
Services.
“ Cash Management
Services ” shall mean treasury, depository, overdraft,
credit or debit card, including non-card e-payables services,
purchase card, electronic funds transfer, automated clearing house
fund transfer services and other cash management
services.
“ Change of
Control ” shall mean and be deemed to have occurred if
(a) (i) at any time prior to a Qualifying IPO, the
Sponsor and the Management Investors shall at any time not own, in
the aggregate, directly or indirectly, beneficially and of record,
at least 35% of the outstanding Voting Stock of Holdings and/or
(ii) at any time after a Qualifying IPO, any person, entity or
“ group ” (within the meaning of
Section 13(d) or 14(d) of the Exchange Act, but excluding any
employee benefit plan of such person, entity or “
group ” and its Subsidiaries and any person or entity
acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan), other than the Sponsor and the
Management Investors, shall at any time have acquired direct or
indirect beneficial ownership (as defined in Rules 13(d)-3 and
13(d)-5 under the Exchange Act) of the greater of (A) 35% of
the outstanding Voting Stock of Holdings and (B) the
percentage of the outstanding Voting Stock of Holdings owned in the
aggregate, directly or indirectly, beneficially and of record, by
the Sponsor and the Management Investors, unless in the case of
either clause (i) or (ii) above, the Sponsor and the
Management Investors have, at such time, the right or the ability
by voting power, contract or otherwise to elect or designate for
election at least a majority of the Board of Directors of Holdings;
provided that, for the purpose of this clause (a), the
direct or indirect beneficial ownership of the Management Investors
shall be deemed not to exceed 10% of the outstanding Voting Stock
of Holdings; and/or (b) at any time Continuing Managers shall
not constitute at least majority of the Board of Directors of
Holdings; and/or (c) any Person other than Holdings shall
acquire direct ownership, beneficially or of record, of any Voting
Stock of the Borrower; and/or (d) a “Change of
Control” (as defined in the Revolving Credit Agreement or in
the Senior Subordinated Notes Indenture or however defined in the
documentation governing any Permitted Refinancing Indebtedness
incurred to Refinance any of such Indebtedness) shall have
occurred.
“ Closing Date
” shall mean the date of the initial Credit Event
hereunder.
“ Closing Date
Indebtedness ” shall mean Indebtedness described on
Schedule 9.1.
“ Closing EBITDA
” shall mean “ EBITDA ” as defined in the
indenture governing the notes identified in clause (i) of the
definition of “ Existing Notes ” modified as
follows: (a) business optimization expenses and other
restructuring charges under clause (4) of such definition
shall only be permitted to be added back up to an aggregate amount
of $5,000,000 for the twelve-month period ended December 31,
2007 and (b) EBITDA for each of the three-month periods ended
March 31, 2007 and June 30, 2007, respectively, shall be
deemed to be $32,700,000 and $88,300,000, respectively.
“ Code ”
shall mean the Internal Revenue Code of 1986, as amended from time
to time, and the regulations promulgated and rulings issued
thereunder. Section references to the Code are to the Code, as
in effect at the date of this Agreement, and any subsequent
provisions of the Code, amendatory thereof, supplemental thereto or
substituted therefor.
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“ Collateral
” shall have the meaning provided to such term in each of the
Security Documents.
“ Collateral
Agent ” shall mean GECC, or any successor thereto
appointed in accordance with the provisions of Section 11.11,
together with its affiliates, as the collateral agent for the
Secured Parties.
“ Commitment
” shall mean, with respect to each Lender, such
Lender’s Term Loan Commitment.
“ Commitment
Parties ” shall mean the Joint Bookrunners and GSO
Capital Partner LP.
“ Company
” shall have the meaning provided in the preamble to this
Agreement.
“ Confidential
Information ” shall have the meaning provided in
Section 12.16.
“ Confidential
Information Memorandum ” shall mean the Confidential
Information Memorandum of the Borrower dated January 2008,
delivered to prospective lenders in connection with this
Agreement.
“ Consolidated
EBITDA ” shall mean, for any period, the Consolidated Net
Income for such period, plus:
(a) without duplication and
to the extent already deducted (and not added back) in arriving at
such Consolidated Net Income, the sum of the following amounts for
such period:
(i) total interest expense
and, to the extent not reflected in such total interest expense,
any losses on Hedging Obligations or other derivative instruments
entered into for the purpose of hedging interest rate risk, net of
interest income and gains on such Hedging Obligations or such
derivative instruments, and bank and letter of credit fees and
costs of surety bonds in connection with financing
activities,
(ii) provision for taxes
based on income, profits or capital, including federal, foreign,
state, franchise, excise, and similar taxes paid or accrued during
such period,
(iii) depreciation and
amortization (including amortization of intangible assets
established through purchase accounting and amortization of
deferred financing fees or costs),
(iv) Non-Cash
Charges,
(v) net after tax
extraordinary losses in accordance with GAAP,
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(vi) net after tax
non-recurring charges (including any unusual or non-recurring
operating expenses directly attributable to the implementation of
cost savings initiatives), severance, relocation costs, integration
and facilities’ opening costs, signing costs, retention or
completion bonuses, transition costs and costs related to
closure/consolidation of facilities,
(vii) restructuring charges,
accruals or reserves (including restructuring costs related to
acquisitions after the Closing Date); provided that such
restructuring charges, accruals and reserves shall not exceed an
aggregate amount of $5,000,000 for any Test Period,
(viii) the amount of any
minority interest expense consisting of Subsidiary income
attributable to minority equity interests of third parties in any
non-wholly owned Subsidiary deducted (and not added back in such
period to Consolidated Net Income),
(ix) (A) the amount of
management, monitoring, consulting and advisory fees, indemnities
and related expenses paid or accrued in such period to (or on
behalf of) the Sponsor and (B) the amount of expenses relating
to payments made to option holders of the Borrower or any of its
direct or indirect parent companies in connection with, or as a
result of, any distribution being made to shareholders of such
Person or its direct or indirect parent companies, which payments
are being made to compensate such option holders as though they
were shareholders at the time of, and entitled to share in, such
distribution, in each case to the extent permitted in this
Agreement,
(x) losses on asset sales,
disposals or abandonments (other than asset sales, disposals or
abandonments in the ordinary course of business),
(xi) the amount of “
run rate ” cost savings projected by the Borrower in
good faith to be realized as a result of specified actions taken
within 18 months after the Closing Date (which cost savings shall
be added to Consolidated EBITDA until fully realized (but in any
event for no longer than 30 months following the Closing Date if
such cost savings have not be realized by that time) and calculated
on a Pro Forma Basis as though such cost savings had been realized
on the first day of the relevant period), net of the amount of
actual benefits realized from such actions; provided
that (A) such cost savings are reasonably identifiable and
factually supportable, (B) no cost savings shall be added
pursuant to this clause (xi) to the extent duplicative of any
expenses or charges relating to such cost savings that are included
in clauses (vi) and (vii) above or in the definition
of the term “ Pro Forma Adjustment ” and
(C) the aggregate amount of cost savings added pursuant to
this clause (xi) shall not exceed $10,000,000 for any Test
Period (it being understood and agreed that “ run rate
” shall mean the full recurring benefit that is associated
with any action taken),
(xii) the amount of any net
losses from discontinued operations in accordance with
GAAP,
(xiii) any non-cash loss
attributable to the mark to market movement in the valuation of
Hedging Obligations (including Hedging Obligations entered into for
the purpose of hedging against fluctuations in the price or
availability of any commodity) (to the extent the cash impact
resulting from such loss has not been realized) or other derivative
instruments pursuant to Financial Accounting Standards Board
Statement No. 133-“ Accounting for Derivative
Instruments and Hedging Activities ”,
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(xiv) any loss relating to
amounts paid in cash prior to the stated settlement date of any
Hedging Obligation (including Hedging Obligations entered into for
the purpose of hedging against fluctuations in the price or
availability of any commodity) that has been reflected in
Consolidated Net Income for such period, and
(xv) any gain relating to
Hedging Obligations (including Hedging Obligations entered into for
the purpose of hedging against fluctuations in the price or
availability of any commodity) associated with transactions
realized in the current period that has been reflected in
Consolidated Net Income in prior periods and excluded from
Consolidated EBITDA pursuant to clauses (b)(v) and
(b)(vi) below;
less
(b) without duplication and
to the extent included in arriving at such Consolidated Net Income,
the sum of the following amounts for such period:
(i) extraordinary gains and
unusual or non-recurring gains,
(ii) non-cash gains
(excluding any non-cash gain to the extent it represents the
reversal of an accrual or reserve for a potential cash item that
reduced Consolidated Net Income or Consolidated EBITDA in any prior
period),
(iii) gains on asset sales,
disposals or abandonments (other than asset sales, disposals or
abandonments in the ordinary course of business),
(iv) the amount of any net
income from discontinued operations in accordance with
GAAP,
(v) any non-cash gain
attributable to the mark to market movement in the valuation of
Hedging Obligations (including Hedging Obligations entered into for
the purpose of hedging against fluctuations in the price or
availability of any commodity) (to the extent the cash impact
resulting from such gain has not been realized) or other derivative
instruments pursuant to Financial Accounting Standards Board
Statement No. 133-“ Accounting for Derivative
Instruments and Hedging Activities ”,
(vi) any gain relating to
amounts received in cash prior to the stated settlement date of any
Hedging Obligation (including Hedging Obligations entered into for
the purpose of hedging against fluctuations in the price or
availability of any commodity) that has been reflected in
Consolidated Net Income in the such period,
(vii) any loss relating to
Hedging Obligations (including Hedging Obligations entered into for
the purpose of hedging against fluctuations in the price or
availability of any commodity) associated with transactions
realized in the current period that has been reflected in
Consolidated Net Income in prior periods and excluded from
Consolidated EBITDA pursuant to clauses (a)(xiii) and (a)(xiv)
above; and
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(viii) the amount of any
minority interest income consisting of Subsidiary loss attributable
to minority equity interests of third parties in any non-wholly
owned Subsidiary added (and not deducted in such period to
Consolidated Net Income),
in each case, as determined on a
consolidated basis for the Borrower and the Restricted Subsidiaries
in accordance with GAAP; provided that, to the extent included
in Consolidated Net Income,
(i) there shall be excluded
in determining Consolidated EBITDA currency translation gains and
losses related to currency remeasurements of Indebtedness
(including the net loss or gain resulting from Hedging Agreements
for currency exchange risk),
(ii) there shall be included
in determining Consolidated EBITDA for any period, without
duplication, (A) the Acquired EBITDA of any Person, property,
business or asset acquired by the Borrower or any Restricted
Subsidiary during such period (other than any Unrestricted
Subsidiary) to the extent not subsequently sold, transferred or
otherwise disposed of (but not including the Acquired EBITDA of any
related Person, property, business or assets to the extent not so
acquired) (each such Person, property, business or asset acquired,
including pursuant to the Transactions, and not subsequently so
disposed of, an “ Acquired Entity or Business
”), and the Acquired EBITDA of any Unrestricted Subsidiary
that is converted into a Restricted Subsidiary during such period
(each, a “ Converted Restricted Subsidiary ”),
in each case based on the Acquired EBITDA of such Pro Forma Entity
for such period (including the portion thereof occurring prior to
such acquisition or conversion) determined on a historical Pro
Forma Basis and (B) an adjustment in respect of each Pro Forma
Entity equal to the amount of the Pro Forma Adjustment with respect
to such Pro Forma Entity for such period (including the portion
thereof occurring prior to such acquisition or conversion) as
specified in the Pro Forma Adjustment Certificate delivered to the
Administrative Agent (for further delivery to the
Lenders); and
(iii) there shall be excluded
in determining Consolidated EBITDA for any period the Disposed
EBITDA of any Person, property, business or asset (other than any
Unrestricted Subsidiary) sold, transferred or otherwise disposed
of, closed or classified as discontinued operations by the Borrower
or any Restricted Subsidiary during such period (each such Person,
property, business or asset so sold, transferred or otherwise
disposed of, closed or classified, a “ Sold Entity or
Business ”), and the Disposed EBITDA of any Restricted
Subsidiary that is converted into an Unrestricted Subsidiary during
such period (each, a “ Converted Unrestricted
Subsidiary ”), in each case based on the Disposed EBITDA
of such Sold Entity or Business or Converted Unrestricted
Subsidiary for such period (including the portion thereof occurring
prior to such sale, transfer, disposition, closure, classification
or conversion) determined on a historical Pro Forma
Basis.
Notwithstanding anything to the contrary
contained herein and subject to adjustment as provided in
clauses (ii) and (iii) of the immediately
preceding proviso with respect to acquisitions and dispositions
occurring following the Closing Date and adjustments as provided
under clause (a)(xi) above, Consolidated EBITDA shall be deemed to
be $32,200,000, $87,500,000 and $95,000,000, respectively, for the
fiscal quarters ended March 31, 2007, June 30, 2007 and
September 30, 2007.
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“ Consolidated
EBITDA to Consolidated Interest Expense Ratio ” shall
mean, as of any date of determination, the ratio of
(a) Consolidated EBITDA for the most recent Test Period ended
on or prior to such date of determination to (b) Consolidated
Interest Expense for such period; provided that, for
purposes of calculating the Consolidated EBITDA to Consolidated
Interest Expense Ratio for any period ending prior to the first
anniversary of the Closing Date, Consolidated Interest Expense
shall be (A) with respect to all amounts of Consolidated
Interest Expense, other than amounts relating to the Revolving
Credit Documents, an amount equal to actual Consolidated Interest
Expense from the Closing Date through the date of determination
multiplied by a fraction the numerator of which is 365 and the
denominator of which is the number of days from the Closing Date
through the date of determination and (B) with respect to all
amounts of Consolidated Interest Expense relating to the Revolving
Credit Documents, calculated as if the average amount utilized and
accruing Consolidated Interest Expense thereunder during any fiscal
quarter prior to the first anniversary of the Closing Date, is
$105,000,000 in respect of Revolving Loans and $33,000,000 in
respect of Letters of Credit Outstanding (as defined in the
Revolving Credit Documents). In the event that the Borrower or any
Restricted Subsidiary incurs, assumes, guarantees, repays, redeems,
retires or extinguishes any Indebtedness (other than Indebtedness
incurred under any revolving credit facility that has not been
permanently repaid) subsequent to the commencement of the period
for which the Consolidated EBITDA to Consolidated Interest Expense
Ratio is being calculated, but prior to or simultaneously with the
event for which the calculation of the Consolidated EBITDA to
Consolidated Interest Expense Ratio is made (the “
Calculation Date ”), then the Consolidated EBITDA to
Consolidated Interest Expense Ratio shall be calculated giving Pro
Forma Effect to such incurrence, assumption, guarantee, repayment,
redemption, retirement or extinguishing of Indebtedness as if the
same had occurred at the beginning of the applicable Test
Period.
“ Consolidated
Interest Expense ” shall mean, for any period, the cash
interest expense (including that attributable to Capitalized
Leases), net of cash interest income, of the Borrower and the
Restricted Subsidiaries, determined on a consolidated basis in
accordance with GAAP, with respect to all outstanding Indebtedness
of the Borrower and the Restricted Subsidiaries, including all
commissions, discounts and other fees and charges owed with respect
to letters of credit and bankers’ acceptance financing and
net costs under Hedging Agreements, but excluding, for the
avoidance of doubt, (i) amortization of deferred financing
costs, debt issuance costs, commissions, fees and expenses,
pay-in-kind interest expense and any other amounts of non-cash
interest (including as a result of the effects of purchase
accounting), (ii) the accretion or accrual of discounted
liabilities during such period, (iii) any interest in respect
of items excluded from Indebtedness in the proviso to the
definition thereof, (iv) non-cash interest expense
attributable to the movement of the mark-to-market valuation of
obligations under Hedging Agreements or other derivative
instruments pursuant to Statement of Financial Accounting Standards
No. 133, (v) any one-time cash costs associated with
breakage in respect of Hedging Agreements for interest rates, and
(vi) all non-recurring cash interest expense consisting of
liquidated damages for failure to timely comply with registration
rights obligations and financing fees, all as calculated on a
consolidated basis in accordance with GAAP.
“ Consolidated Lease
Expense ” shall mean, for any period, all rental expenses
of the Borrower and the Restricted Subsidiaries during such period
under operating leases for real or personal property (including in
connection with Permitted Sale Leasebacks), but excluding real
estate taxes, insurance costs and common area maintenance charges
and net of sublease
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income; provided that
Consolidated Lease Expense shall not include (a) obligations
under vehicle leases entered into in the ordinary course of
business, (b) all such rental expenses associated with assets
acquired pursuant to the Transactions and pursuant to a Permitted
Acquisition to the extent that such rental expenses relate to
operating leases (i) in effect at the time of (and immediately
prior to) such acquisition and (ii) related to periods prior
to such acquisition, (c) Capitalized Lease Obligations, all as
determined on a consolidated basis in accordance with GAAP and
(d) the effects from applying purchase accounting.
“ Consolidated Net
Income ” shall mean, for any period, the net income
(loss) of the Borrower and the Restricted Subsidiaries for
such period determined on a consolidated basis in accordance with
GAAP, excluding, without duplication, (a) extraordinary items
for such period (including expenditures incurred to settle
environmental liabilities), (b) the cumulative effect of a
change in accounting principles during such period to the extent
included in Consolidated Net Income, (c) in the case of any
period that includes a period ending prior to or during the fiscal
quarter ending December 31, 2008, Transaction Expenses,
(d) any fees and expenses incurred during such period, or any
amortization thereof for such period, in connection with any
acquisition, investment, asset disposition, issuance or repayment
of debt, issuance of equity securities, refinancing transaction or
amendment or other modification of any debt instrument (in each
case, including any such transaction consummated prior to the
Closing Date and any such transaction undertaken but not completed)
and any charges or non-recurring merger costs incurred during such
period as a result of any such transaction, (e) any income
(loss) for such period attributable to the early
extinguishment of Indebtedness, Hedging Agreements or other
derivative instruments (other than commodity Hedging Agreements),
(f) accruals and reserves that are established or adjusted as
a result of the Transactions in accordance with GAAP or changes as
a result of the adoption or modification of accounting policies
during such period, (g) stock-based award compensation
expenses and (h) any income (loss) from investments recorded
using the equity method. There shall be included in Consolidated
Net Income, without duplication, the amount of any cash tax
benefits related to the tax amortization of intangible assets in
such period. There shall be excluded from Consolidated Net Income
for any period the effects from applying purchase accounting,
including applying purchase accounting to inventory, property and
equipment, software and other intangible assets and deferred
revenue required or permitted by GAAP and related authoritative
pronouncements (including the effects of such adjustments pushed
down to the Borrower and the Restricted Subsidiaries), as a result
of the Transactions, any acquisition consummated prior to the
Closing Date and any permitted acquisitions or the amortization or
write-off of any amounts thereof.
“ Consolidated Total
Assets ” shall mean, as of any date of determination, the
total amount of all assets of the Borrower and the Restricted
Subsidiaries, determined on a consolidated basis in accordance with
GAAP as of such date.
“ Consolidated Total
Debt ” shall mean, as of any date of determination,
(a) the aggregate principal amount of (i) indebtedness of
the Borrower and the Restricted Subsidiaries outstanding on such
date, determined on a consolidated basis in accordance with GAAP
(but excluding the effects of any discounting of indebtedness
resulting from the application of purchase accounting in connection
with the Transactions or any Permitted Acquisition), consisting of
indebtedness for borrowed money, Capitalized Lease Obligations and
debt obligations evidenced by promissory notes or similar
instruments, minus (b) (i) the
aggregate
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amount of cash and Permitted Investments
(in each case, free and clear of all Liens, other than Permitted
Liens and other non-consensual Liens permitted by Section 9.2,
Liens permitted under Sections 9.2(a), 9.2(h), 9.2(j), 9.2(m)
and Liens permitted under clauses (i) and (ii) of
Section 9.2(n)), excluding cash and Permitted Investments
which are listed as “restricted”, on the consolidated
balance sheet of the Borrower and the Restricted Subsidiaries as of
such date less (ii) the aggregate amount of
Reinvestment Deferred Amounts in excess of $50,000,000 at the date
of determination.
“ Consolidated Total
Debt to Consolidated EBITDA Ratio ” shall mean, as of any
date of determination, the ratio of (a) Consolidated Total
Debt as of the last day of the relevant Test Period to
(b) Consolidated EBITDA for such Test Period.
“ Consolidated
Working Capital ” shall mean, at any date, the excess of
(a) the sum of all amounts (other than cash and Permitted
Investments) 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 the
Borrower and the Restricted Subsidiaries at such date less
(b) the sum of 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 the Borrower and the Restricted Subsidiaries on
such date, including deferred revenue but excluding, without
duplication, (i) the current portion of any Funded Debt,
(ii) all Indebtedness (including Letters of Credit Outstanding
as defined in the Revolving Credit Agreement) under the Revolving
Credit Documents, to the extent otherwise included therein,
(iii) the current portion of interest, (iv) the current
portion of current and deferred income taxes, (v) Non-Cash
Compensation Liabilities, (vi) any other liabilities that are
not Indebtedness and will not be settled in cash or Permitted
Investments during the next succeeding twelve month period after
such date and (vii) the effects from applying purchase
accounting.
“ Continuing
Manager ” shall mean, at any date, an individual
(a) who is a member of the Board of Directors of Holdings on
the Closing Date, (b) who, as at such date, has been a member
of such Board of Directors for at least the 12 preceding months,
(c) who has been nominated or designated to be a member of
such Board of Directors, directly or indirectly, by the Sponsor or
Persons nominated or designated by the Sponsor or (d) who has
been nominated to be a member of such Board of Directors by a
majority of the other Continuing Managers then in
office.
“ Contract
Consideration ” shall have the meaning provided in the
definition of the term “ Excess Cash Flow
”.
“ Contractual
Obligation ” shall mean, as 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 other than the
Obligations.
“ Converted
Restricted Subsidiary ” shall have the meaning provided
in the definition of the term “ Consolidated EBITDA
”.
“ Converted
Unrestricted Subsidiary ” shall have the meaning provided
in the definition of the term “ Consolidated EBITDA
”.
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“ Credit
Documents ” shall mean this Agreement, the Security
Documents, the Guarantee, the Intercreditor Agreement, the Fee
Letter and any promissory notes issued by the Borrower
hereunder.
“ Credit Event
” shall mean and include the making (but not the conversion
or continuation) of a Loan.
“ Credit
Facility ” shall have the meaning provided in the
recitals to this Agreement.
“ Credit Party
” shall mean each of Holdings, the Borrower, the Guarantors
and each other Subsidiary of the Borrower that is a party to a
Credit Document.
“ Cumulative
Consolidated Net Income ” shall mean, as at any date of
determination, Consolidated Net Income for the period (taken as one
accounting period) commencing on January 1, 2008 and ending on
the last day of the most recent fiscal quarter for which
Section 8.1 Financials have been delivered.
“ Cure Amount
” shall have the meaning provided in
Section 10.12(a).
“ Cure Right
” shall have the meaning provided in
Section 10.12(a).
“ Debt Incurrence
Prepayment Event ” shall mean any issuance or incurrence
by the Borrower or any of the Restricted Subsidiaries of any
Indebtedness, excluding any Indebtedness permitted to be issued or
incurred under Section 9.1 (other than Section 9.1(w)
thereof).
“ Default
” shall mean any event, act or condition that with notice or
lapse of time, or both, would constitute an Event of
Default.
“ Defaulting
Lender ” shall mean any Lender that (a) has failed
to fund any portion of the Term Loans required to be funded by it
hereunder within one Business Day of the date required to be funded
by it hereunder, unless the subject of a good faith dispute or
subsequently cured, (b) has otherwise failed to pay over to
the Administrative Agent or any other Lender any other amount
required to be paid by it hereunder within one Business Day of the
date when due, unless the subject of a good faith dispute or
subsequently cured, (c) has been deemed insolvent or become
the subject of a bankruptcy or insolvency proceeding or
(d) has notified the Borrower and/or the Administrative Agent
in writing of any of the foregoing (including any written
notification of its intent not to comply with its obligations under
Section 2).
“ Disposed
EBITDA ” shall mean, with respect to any Sold Entity or
Business or Converted Unrestricted Subsidiary for any period, the
amount for such period of Consolidated EBITDA of such Sold Entity
or Business or Converted Unrestricted Subsidiary (determined as if
references to the Borrower and the Restricted Subsidiaries in the
definition of the term “ Consolidated EBITDA ”
(and in the component financial definitions used therein) were
references to such Sold Entity or Business and its Subsidiaries or
to Converted Unrestricted Subsidiary and its Subsidiaries), all as
determined on a consolidated basis for such Sold Entity or
Business.
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“ Disposition
” shall have the meaning provided in
Section 9.4(c).
“ Disqualified
Capital Stock ” shall mean any Capital Stock that, by its
terms (or by the terms of any security or other Capital Stock into
which it is convertible or for which it is putable or exchangeable)
or upon the happening of any event or condition, (a) matures
or is mandatorily redeemable (other than solely for Qualified
Capital Stock), other than as a result of a change of control or
asset sale so long as any rights of the holders thereof upon the
occurrence of a change of control or asset sale event shall be
subject to the prior repayment in full of the Loans and all other
Obligations (other than Hedging Obligations under Secured Hedging
Agreements, Cash Management Obligations under Secured Cash
Management Agreements or contingent indemnification obligations),
pursuant to a sinking fund obligation or otherwise, or (b) is
redeemable or exchangeable at the option of the holder thereof
(other than solely for Qualified Capital Stock), other than as a
result of a change of control or asset sale so long as any rights
of the holders thereof upon the occurrence of a change of control
or asset sale event shall be subject to the prior repayment in full
of the Loans and all other Obligations (other than Hedging
Obligations under Secured Hedging Agreements, Cash Management
Obligations under Secured Cash Management Agreements or contingent
indemnification obligations), in whole or in part, or
(c) provides for the scheduled payment of dividends in cash,
in each case prior to the date that is ninety-one (91) days
after the latest Maturity Date of any Credit Facility
hereunder; provided that if such Capital Stock is
issued pursuant to any plan for the benefit of employees of
Holdings (or any direct or indirect parent thereof), the Borrower
or any of its Subsidiaries or by any such plan to such employees,
such Capital Stock shall not constitute Disqualified Capital Stock
solely because it may be required to be repurchased by Holdings (or
any direct or indirect parent company thereof), the Borrower or any
of its Subsidiaries in order to satisfy applicable statutory or
regulatory obligations.
“ Dividends
” shall have the meaning provided in
Section 9.6.
“ Dollars
” and “ $ ” shall mean dollars in lawful
currency of the United States of America.
“ Domestic
Subsidiary ” shall mean each Subsidiary of the Borrower
that is organized under the Applicable Laws of the United States,
any state or territory thereof, or the District of
Columbia.
“ E-Fax ”
shall mean any system used to receive or transmit faxes
electronically.
“ Environmental
Claims ” shall mean any and all administrative,
regulatory or judicial actions, suits, demands, demand letters,
claims, liens, notices of noncompliance or violation,
investigations (other than internal reports prepared by the
Borrower or any of its Subsidiaries (a) in the ordinary course
of such Person’s business or (b) as required in
connection with a financing transaction or an acquisition or
disposition of real estate) or proceedings relating in any way to
any Environmental Law or any permit issued, or any approval given,
under any such Environmental Law (hereinafter, “
Claims ”), including (i) any and all Claims by
governmental or regulatory authorities for enforcement, cleanup,
removal, response, remedial or other actions or damages pursuant to
any applicable Environmental Law and (ii) any and all Claims
by any third party seeking damages, contribution, indemnification,
cost recovery, compensation or injunctive relief resulting from the
release or threatened release of Hazardous Materials or arising
from alleged injury or threat of injury to health, safety or the
environment.
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“ Environmental
Law ” shall mean any applicable Federal, state, foreign
or local statute, law, rule, regulation, ordinance, code and rule
of common law now or hereafter in effect and in each case as
amended, and any binding judicial or administrative interpretation
thereof, including any binding judicial or administrative order,
consent decree or judgment, in each case relating to the protection
of the environment or, to the extent relating to exposure to
substances that are harmful or deleterious to the environment, of
human health or safety.
“ Equity
Contribution ” shall have the meaning provided in the
recitals to this Agreement.
“ ERISA ”
shall mean the Employee Retirement Income Security Act of 1974, as
amended from time to time. Section references to ERISA are to
ERISA as in effect at the date of this Agreement and any subsequent
provisions of ERISA amendatory thereof, supplemental thereto or
substituted therefor.
“ ERISA
Affiliate ” shall mean each person (as defined in
Section 3(9) of ERISA) that together with Holdings, the
Borrower or a Subsidiary thereof would be deemed to be a “
single employer ” within the meaning of
Section 414(b) or (c) of the Code or, solely for purposes
of Section 302 of ERISA and Section 412 of the Code, is
treated as a single employer under Section 414 of the
Code.
“ Eurodollar Base
Rate ” shall mean, with respect to any Interest Period
for any Eurodollar Term Loan, the greater of ((i) the rate
per annum for deposits in Dollars for the applicable
Interest Period appearing on the Reuters Screen LIBOR01 page as of
11:00 a.m. (London time) two Business Days prior to the first day
in such Interest Period and (ii) 3.25% per annum . In
the event that the rate referred to in clause (i) above does
not appear on the Reuters Screen LIBOR01 page at such time, the
“ Eurodollar Base Rate ” shall be determined by
reference to such other comparable publicly available service for
displaying the offered rate for deposit in Dollars in the London
interbank market as may be agreed upon by the Administrative Agent
and the Borrower or, in the absence of such agreement, the “
Eurodollar Base Rate ” for the purposes of this
paragraph shall instead be the rate per annum notified to the
Administrative Agent by the Reference Lender as the rate at which
the Reference Lender is offered Dollar deposits at or about 11:00
a.m. (London time) two Business Days prior to the beginning of such
Interest Period in the interbank Eurodollar market where the
Eurodollar and foreign currency and exchange operations in respect
of its Eurodollar Loans are then being conducted for delivery on
the first day of such Interest Period for the number of days
comprised therein and in an amount comparable to the amount of its
Eurodollar Loan to be outstanding during such Interest Period
availability, such other method to determine such offered rate as
may be selected by the Administrative Agent in its sole
discretion.
“ Eurodollar
Rate ” shall mean, with respect to any Interest Period
and for any Eurodollar Term Loan, an interest rate per annum
determined as the ratio of (a) the Eurodollar Base Rate with
respect to such Interest Period for such Eurodollar Term Loan to
(b) the Statutory Reserve Requirements with respect to such
Interest Period and for such Eurodollar Term Loan.
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“ Eurodollar Term
Loan ” shall mean any Term Loan bearing interest at a
rate determined by reference to the Eurodollar Rate.
“ E-System
” shall mean any electronic system, including Intralinks
® and
any other Internet or extranet-based site, whether such electronic
system is owned, operated or hosted by the Administrative Agent,
any of its Related Parties, or any of such Person’s
respective officers, directors, employees, attorneys, agents and
representatives or any other Person, providing for access to data
protected by passcodes or other security system.
“ Event of
Default ” shall have the meaning provided in
Section 10.
“ Excess Cash
Flow ” shall mean, for any period, an amount equal to the
excess of
(a) the sum, without
duplication, of:
(i) Consolidated Net Income
for such period;
(ii) an amount equal to the
amount of all Non-Cash Charges to the extent deducted in arriving
at such Consolidated Net Income;
(iii) decreases in
Consolidated Working Capital, decreases in long-term accounts
receivable and increases in the long-term portion of deferred
revenue for such period (other than any such decreases or
increases, as applicable, arising from acquisitions or sales,
transfers or other dispositions of property by the Borrower or any
of its Restricted Subsidiaries completed during such
period);
(iv) an amount equal to the
aggregate net non-cash loss on the sale, transfer or other
disposition of property by the Borrower and the Restricted
Subsidiaries during such period (other than sales, transfers or
other dispositions in the ordinary course of business) to the
extent deducted in arriving at such Consolidated Net
Income; and
(v) cash payments received in
respect of Hedging Agreements during such period to the extent not
included in arriving at such Consolidated Net Income;
(vi) income tax expense to
the extent deducted in arriving at such Consolidated Net
Income;
over
(b) the sum, without
duplication, of:
(i) an amount equal to the
amount of all non-cash credits included in arriving at such
Consolidated Net Income and cash charges included in
clauses (a) through (h) of the definition of the term
“ Consolidated Net Income ”;
(ii) without duplication of
amounts deducted pursuant to clause (xi) below in prior fiscal
years, the amount of Capital Expenditures made in cash or accrued
during such period, except to the extent that such Capital
Expenditures were financed by the issuance of Indebtedness or
Capital Stock by the Borrower or any of the Restricted
Subsidiaries;
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(iii) the aggregate amount of
all principal payments of Indebtedness of the Borrower and the
Restricted Subsidiaries (including (A) the principal component
of payments in respect of Capitalized Lease Obligations and
(B) the amount of any mandatory prepayment of Term Loans
actually made pursuant to Section 4.2(a)(i) that resulted in
an increase to Consolidated Net Income and not in excess of the
amount of such increase but excluding (1) all other
prepayments of Term Loans and (2) all prepayments of Revolving
Credit Loans and Swing Line Loans (as defined in the Revolving
Credit Agreement) made during such period (other than in respect of
any revolving credit facility to the extent there is not an
equivalent permanent reduction in commitments thereunder), except
to the extent financed by the issuance of Indebtedness or Capital
Stock by the Borrower or any of the Restricted
Subsidiaries;
(iv) an amount equal to the
aggregate net non-cash gain on the sale, transfer or other
dispositions of property by the Borrower and the Restricted
Subsidiaries during such period (other than the sale, transfer or
other disposition of property in the ordinary course of business)
to the extent included in arriving at such Consolidated Net
Income;
(v) increases in Consolidated
Working Capital, increases in long term accounts receivable and
decreases in the long-term portion of deferred revenue for such
period (other than any such increases or decreases, as applicable,
arising from acquisitions or sales, transfers or other dispositions
of property by the Borrower and the Restricted Subsidiaries during
such period);
(vi) cash payments by the
Borrower and the Restricted Subsidiaries during such period in
respect of long-term liabilities of the Borrower and the Restricted
Subsidiaries other than Indebtedness, except to the extent that
such payments were financed by the issuance of Indebtedness or
Capital Stock by the Borrower or any of the Restricted
Subsidiaries;
(vii) without duplication of
amounts deducted pursuant to clause (xi) below in prior fiscal
years, the amount of Investments (other than Investments made
pursuant to Section 9.5(b)) and acquisitions made during such
period, except to the extent that such Investments and acquisitions
were financed by the issuance of Indebtedness or Capital Stock by
the Borrower or any of the Restricted Subsidiaries;
(viii) the amount of
Dividends paid in cash during such period (other than pursuant to
Section 9.6(f)), except to the extent that such Dividends were
financed by the issuance of Indebtedness or Capital Stock by the
Borrower or any of the Restricted Subsidiaries;
(ix) the aggregate amount of
expenditures actually made by the Borrower and the Restricted
Subsidiaries in cash during such period (including expenditures for
the payment of financing fees) to the extent that such expenditures
are not expensed during such period, except to the extent that such
expenditures were financed by the issuance of Indebtedness or
Capital Stock by the Borrower or any of the Restricted
Subsidiaries;
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(x) the aggregate amount of
any premium, make-whole or penalty payments actually paid in cash
by the Borrower and the Restricted Subsidiaries during such period
that are required to be made in connection with any prepayment of
Indebtedness, except to the extent financed by the issuance of
Indebtedness or Capital Stock by the Borrower or any of the
Restricted Subsidiaries;
(xi) without duplication of
amounts deducted from Excess Cash Flow in other periods, the
aggregate consideration required to be paid in cash by the Borrower
or any of the Restricted Subsidiaries pursuant to binding contracts
(the “ Contract Consideration ”) entered into
prior to or during such period relating to Permitted Acquisitions
or Capital Expenditures to be consummated or made during the period
of four consecutive fiscal quarters of the Borrower following the
end of such period; provided that to the extent that
the aggregate amount of cash actually utilized to finance such
Permitted Acquisitions or Capital Expenditures during such period
of four consecutive fiscal quarters is less than the Contract
Consideration, the amount of such shortfall shall be added to the
calculation of Excess Cash Flow, at the end of such period of four
consecutive fiscal quarters;
(xii) income taxes, including
penalties and interest, paid in cash in such
period; and
(xiii) cash expenditures made
in respect of Hedging Agreements during such period to the extent
not deducted in arriving at such Consolidated Net
Income.
“ Exchange Act
” shall mean the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder.
“ Exchange Rate
” shall mean on any day with respect to any currency (other
than Dollars), the rate at which such currency may be exchanged
into any other currency (including Dollars), as set forth at
approximately 11:00 a.m. (London time) on such day on the Reuters
World Currency Page for such currency. In the event that such rate
does not appear on any Reuters World Currency Page, the Exchange
Rate shall be determined by reference to such other publicly
available service for displaying exchange rates as may be agreed by
the Administrative Agent and the Borrower, or, in the absence of
such agreement, such Exchange Rate shall instead be the arithmetic
average of the spot rates of exchange of the Administrative Agent
in the market where its foreign currency exchange operations in
respect of such currency are then being conducted, at or about
11:00 a.m., local time, on such date for the purchase of the
relevant currency for delivery two Business Days later.
“ Excluded Capital
Stock ” shall mean (a) any Capital Stock with
respect to which, in the reasonable judgment of the Administrative
Agent (confirmed in writing by notice to the Borrower and the
Collateral Agent), the cost or other consequences (including any
adverse tax consequences) of pledging such Capital Stock shall be
excessive in view of the benefits to be obtained by the Secured
Parties therefrom, (b) solely in the case of any pledge of
Capital Stock of any Foreign Subsidiary to secure the Obligations,
any Capital Stock that is Voting Stock of
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such Foreign Subsidiary in excess of 65%
of the outstanding Capital Stock of such class, (c) any
Capital Stock to the extent the pledge thereof would be prohibited
by any Applicable Law or Contractual Obligation, (d) the
Capital Stock of any Subsidiary that is not wholly owned by the
Borrower and its Subsidiaries at the time such Subsidiary becomes a
Subsidiary (for so long as such Subsidiary remains a non-wholly
owned Subsidiary), (e) the Capital Stock of any Immaterial
Subsidiary or any Unrestricted Subsidiary, (f) the Capital
Stock of any Subsidiary of a Foreign Subsidiary, (g) any
Capital Stock of any Subsidiary to the extent that the pledge of
such Capital Stock would result in adverse tax consequences to
Holdings, the Borrower or any Subsidiary as reasonably determined
by the Borrower and (h) such Capital Stock as has been
identified on or prior to the Closing Date in writing to the
Administrative Agent by an Authorized Officer of the Borrower and
agreed to by the Administrative Agent.
“ Excluded
Subsidiary ” shall mean (a) any Subsidiary that is
not a wholly owned Subsidiary on any date such Subsidiary would
otherwise be required to become a Guarantor pursuant to the
requirements of Section 8.10 (for so long as such Subsidiary
remains a non-wholly owned Subsidiary), (b) any Subsidiary
that is prohibited by Applicable Law or Contractual Obligation
existing on the Closing Date from guaranteeing the Obligations at
the time such Subsidiary becomes a Restricted Subsidiary (and for
so long as such restrictions or any replacement or renewal thereof
is in effect), (c) any Domestic Subsidiary that is a direct or
indirect Subsidiary of a Foreign Subsidiary, (d) any
Immaterial Subsidiary ( provided that the Borrower shall not
be permitted to exclude Immaterial Subsidiaries from guaranteeing
the Obligations to the extent that (i) the aggregate amount of
gross revenue for all Immaterial Subsidiaries (other than
Unrestricted Subsidiaries) excluded by clause this clause
(d) exceeds 2% of the consolidated gross revenues of the
Borrower and its Restricted Subsidiaries for the most recent Test
Period ended prior to the date of determination or (ii) the
aggregate amount of total assets for all Immaterial Subsidiaries
(other than Unrestricted Subsidiaries) excluded by this clause
(d) exceeds 2% of the Consolidated Total Assets of the
Borrower and its Restricted Subsidiaries as at the end of the most
recent Test Period ended prior to the date of determination),
(e) any other Subsidiary with respect to which, in the
reasonable judgment of the Administrative Agent (confirmed in
writing by notice to the Borrower and the Collateral Agent), the
cost or other consequences (including any adverse tax consequences)
of providing a guarantee shall be excessive in view of the benefits
to be obtained by the Secured Parties therefrom, (f) each
Foreign Subsidiary and Unrestricted Subsidiary, (g) each other
Domestic Subsidiary acquired pursuant to a Permitted Acquisition
and financed with secured Indebtedness incurred pursuant to
Section 9.1(k) or 9.1(l) and permitted by the proviso to
subclause (z) or (y), respectively, of either of such Sections
and each Restricted Subsidiary that guarantees such Indebtedness to
the extent that, and for so long as, the financing documentation
relating to such Permitted Acquisition to which such Restricted
Subsidiary is a party prohibits such Restricted Subsidiary from
guaranteeing the Obligations, (h) any Subsidiary to the extent
that the guarantee of the Obligations would result in adverse tax
consequences to Holdings, the Borrower or any Subsidiary as
reasonably determined by the Borrower and (i) AsureCare Corp.,
a Florida corporation.
“ Existing Notes
” shall mean collectively, (i) the existing fixed rate
notes 7 7 / 8 % Senior Subordinated Notes of Goodman Global Holdings,
Inc. and (ii) the outstanding Senior Floating Rate Notes of
Goodman Global Holdings, Inc.
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“ Fair Market
Value ” shall mean with respect to any asset or group of
assets on any date of determination, the value of the consideration
obtainable in a sale of such asset at such date of determination
assuming a sale by a willing seller to a willing purchaser dealing
at arm’s length and arranged in an orderly manner over a
reasonable period of time having regard to the nature and
characteristics of such asset, as reasonably determined by the
Borrower.
“ Federal Funds
Effective Rate ” shall mean, for any day, the weighted
average of the per annum 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 that 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.
“ Fee Letter
” shall mean the letter dated the date hereof addressed to
Borrower from the Administrative Agent and accepted by Borrower on
the date hereof, with respect to certain fees to be paid from time
to time to the Administrative Agent.
“ Fees ”
shall have the meaning provided in Section 3.1.
“ Final Refused
Proceeds ” shall have the meaning provided in
Section 4.2(b).
“ Financial
Performance Covenants ” shall mean the covenants of the
Borrower set forth in Section 9.11.
“ First Refused
Proceeds ” shall have the meaning provided in
Section 4.2(b).
“ Foreign Asset
Sale ” shall have the meaning provided in
Section 4.2(f).
“ Foreign Recovery
Event ” shall have the meaning provided in
Section 4.2(f).
“ Foreign
Subsidiary ” shall mean each Subsidiary of the Borrower
that is not a Domestic Subsidiary.
“ Funded Debt
” shall mean all indebtedness of the Borrower and the
Restricted Subsidiaries for borrowed money that matures more than
one year from the date of its creation or matures within one year
from such date that is renewable or extendable, 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, including Indebtedness in respect of the
Loans.
“ GAAP ”
shall mean generally accepted accounting principles in the United
States of America, as in effect from time to time;
provided , however , that if the Borrower notifies
the Administrative Agent that the Borrower requests an amendment to
any provision hereof to eliminate the effect of any change
occurring after the Closing Date in GAAP or in the application
thereof on the operation of such provision (or if the
Administrative Agent notifies the Borrower that the Required
Lenders request an amendment to any provision hereof for such
purpose), regardless of whether any such notice is given before or
after such change in GAAP or in the
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application thereof, then such provision
shall be interpreted on the basis of GAAP as in effect and applied
immediately before such change shall have become effective until
such notice shall have been withdrawn or such provision amended in
accordance herewith.
“ Governmental
Authority ” shall mean the government of the United
States, any foreign country or any multinational authority, or any
state or political subdivision thereof, and any entity, body or
authority exercising executive, legislative, judicial, regulatory
or administrative functions of or pertaining to government,
including the PBGC and other quasi-governmental entities
established to perform such functions.
“ Guarantee
” shall mean the Term Loan Guarantee, made by each Guarantor
in favor of the Collateral Agent for the benefit of the Secured
Parties, substantially in the form of Exhibit B.
“ Guarantee
Obligations ” shall mean, as to any Person, any
obligation of such Person guaranteeing or intended to guarantee any
Indebtedness of any other Person (the “ primary
obligor ”) in any manner, whether directly or indirectly,
including any obligation of such Person, whether or not contingent,
(a) to purchase any such Indebtedness or any property
constituting direct or indirect security therefor, (b) to
advance or supply funds (i) for the purchase or payment of any
such Indebtedness or (ii) to maintain working capital or
equity capital of the primary obligor or otherwise to maintain the
net worth or solvency of the primary obligor, (c) to purchase
property, securities or services primarily for the purpose of
assuring the owner of any such Indebtedness of the ability of the
primary obligor to make payment of such Indebtedness or
(d) otherwise to assure or hold harmless the owner of such
Indebtedness against loss in respect thereof; provided
, however , that the term “ Guarantee
Obligations ” shall not include endorsements of
instruments for deposit or collection in the ordinary course of
business or customary and reasonable indemnity obligations in
effect on the Closing Date or entered into in connection with any
acquisition or disposition of assets permitted under this Agreement
(other than with respect to Indebtedness). The amount of any
Guarantee Obligation shall be deemed to be an amount equal to the
stated or determinable amount of the Indebtedness in respect of
which such Guarantee Obligation is made or, if not stated or
determinable, the maximum reasonably anticipated liability in
respect thereof (assuming such Person is required to perform
thereunder) as determined by such Person in good faith.
“ Guarantors
” shall mean (a) Holdings (b) each Domestic
Subsidiary (other than an Excluded Subsidiary) on the Closing Date
and (c) each Domestic Subsidiary (other than an Excluded
Subsidiary) that becomes a party to the Guarantee after the Closing
Date pursuant to Section 8.10.
“ Hazardous
Materials ” shall mean (a) any petroleum or
petroleum products, radioactive materials, friable asbestos, urea
formaldehyde foam insulation, transformers or other equipment that
contain dielectric fluid containing regulated levels of
polychlorinated biphenyls, and radon gas; (b) any chemicals,
materials or substances defined as or included in the definition of
“ hazardous substances ”, “ hazardous
waste ”, “ hazardous materials ”,
“ extremely hazardous waste ”, “
restricted hazardous waste ”, “ toxic
substances ”, “ toxic pollutants ”,
“ contaminants ”, or “ pollutants
”, or words of similar import, under any applicable
Environmental Law; and (c) any other chemical, material
or substance, which is prohibited, limited or regulated by any
Environmental Law.
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“ Hedge Bank
” shall mean any Person that is a Lender or an Affiliate of a
Lender at the time it enters into a Secured Hedging Agreement or
that is a Lender or an Affiliate of a Lender at any time after it
has entered into a Secured Hedging Agreement, in its capacity as a
party thereto.
“ Hedging
Agreement ” shall mean(a) any and all rate swap
transactions, basis swaps, credit derivative transactions, forward
rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond
or bond price or bond index swaps or options or forward bond or
forward bond price or forward bond index transactions, interest
rate options, forward foreign exchange transactions, cap
transactions, floor transactions, collar transactions, currency
swap transactions, cross-currency rate swap transactions, currency
options, spot contracts, or any other similar transactions or any
combination of any of the foregoing (including any options to enter
into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any
and all transactions of any kind, and the related confirmations,
which are subject to the terms and conditions of, or governed by,
any form of master agreement published by the International Swaps
and Derivatives Association, Inc., any International Foreign
Exchange Master Agreement or any other master agreement (any such
master agreement, together with any related schedules, a “
Master Agreement ”), including any such obligations or
liabilities under any Master Agreement.
“ Hedging
Obligations ” shall mean, with respect to any Person, the
obligations of such Person under Hedging Agreements.
“ Historical
Financial Statements ” shall mean (a) the audited
consolidated balance sheets and related statements of income,
stockholders’ equity and cash flows of the Company for the
three most recently completed fiscal years ended December 31,
2006, (b) unaudited consolidated balance sheets and related
statements of income, stockholders’ equity and cash flows of
the Company for the fiscal quarter ended September 30, 2007
and each subsequent fiscal quarter (other than the fourth fiscal
quarter of 2007) ended at least 45 days before the Closing Date and
(c) unaudited consolidated balance sheets and related
statements of income and cash flows of the Company for each fiscal
month after September 30, 2007 (other than any month with
respect to which quarterly financial statements are delivered
pursuant to the foregoing) ended at least 45 days before the
Closing Date, which financial statements described in
clauses (a) through (c) shall have been prepared in
accordance with GAAP.
“ Holdings
” shall mean CHILL INTERMEDIATE HOLDINGS, INC, a Delaware
Corporation or, after the Closing Date, any other Person (the
“ New Holdings ”) that is a Subsidiary of CHILL
INTERMEDIATE HOLDINGS, INC, (or the previous New Holdings as the
case may be) (the “ Previous Holdings ”);
provided that (a) such New Holdings owns 100% of Voting
Stock of the Borrower, (b) the New Holdings shall expressly
assume all the obligations of the Previous Holdings under this
Agreement and the other Credit Documents pursuant to a supplement
hereto or thereto in form reasonably satisfactory to the
Administrative Agent, (c) such substitution concurrently
occurs under the Revolving Credit Documents, (d) the
New
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Holdings shall have delivered to the
Administrative Agent an officer’s certificate stating that
such substitution and any supplements to the Credit Documents
preserve the enforceability of the Guarantee and the perfection and
priority of the Liens under the Security Documents, (e) if
reasonably requested by the Administrative Agent, an opinion of
counsel to the effect that such substitution does not violate this
Agreement or any other Credit Document, (f) all assets of the
Previous Holdings are contributed or otherwise transferred to such
New Holdings and (g) no Default or Event of Default has
occurred and is continuing at the time of such substitution and
such substitution does not result in any Default or Event of
Default or material tax liability; provided , further
, that if the foregoing are satisfied, the Previous Holdings shall
be automatically released of all its obligations under the Credit
Documents and any reference to “Holdings” in the Credit
Documents shall be meant to refer to the “New
Holdings”.
“ Immaterial
Subsidiary ” shall mean, at any date of determination,
any Restricted Subsidiary of the Borrower (a) whose total
assets (when combined with the assets of such Restricted
Subsidiary’s Subsidiaries, after eliminating intercompany
obligations) at the last day of the most recent Test Period ended
on or prior to such determination date were less than 1% of the
Consolidated Total Assets of the Borrower and its Restricted
Subsidiaries at such date, and (b) whose gross revenues (when
combined with the revenues of such Restricted Subsidiary’s
Subsidiaries, after eliminating intercompany obligations) for such
Test Period were less than 1% of the consolidated gross revenues of
the Borrower and its Restricted Subsidiaries for such period, in
each case determined in accordance with GAAP.
“ Indebtedness
” shall mean, as to any Person at a particular time, without
duplication, all of the following, whether or not included as
indebtedness or liabilities in accordance with GAAP:
(a) all indebtedness of such
Person for borrowed money and all indebtedness of such Person
evidenced by bonds, debentures, notes, loan agreements or other
similar instruments;
(b) the maximum amount (after
giving effect to any prior drawings or reductions which may have
been reimbursed) of all letters of credit (including standby and
commercial), bankers’ acceptances, bank guaranties, surety
bonds, performance bonds and similar instruments issued or created
by or for the account of such Person;
(c) net Hedging Obligations
of such Person;
(d) all obligations of such
Person to pay the deferred purchase price of property or services
(other than (i) current trade liabilities (but not any
refinancings, extensions, renewals, or replacements thereof)
incurred in the ordinary course of business and maturing within 365
days after the incurrence thereof except if such trade liabilities
bear interest and (ii) any earn-out obligation until such
obligation becomes a liability on the balance sheet of such Person
in accordance with GAAP);
(e) indebtedness (excluding
prepaid interest thereon) secured by a Lien on property owned or
being purchased by such Person (including indebtedness arising
under conditional sales or other title retention agreements and
mortgage, industrial revenue bond, industrial development bond and
similar financings), whether or not such indebtedness shall have
been assumed by such Person or is limited in recourse;
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(f) all Attributable
Indebtedness; and
(g) all Guarantee Obligations
of such Person in respect of any of the foregoing;
provided that Indebtedness shall
not include (i) prepaid or deferred revenue arising in the
ordinary course of business and (ii) purchase price holdbacks
arising in the ordinary course of business in respect of a portion
of the purchase price of an asset to satisfy warrants or other
unperformed obligations of the seller of such asset.
For all purposes hereof, the
Indebtedness of any Person shall (A) include the Indebtedness
of any partnership or joint venture (other than a joint venture
that is itself a corporation or limited liability company) in which
such Person is a general partner or a joint venturer, except to the
extent such Person’s liability for such Indebtedness is
otherwise limited and only to the extent such Indebtedness would be
included in the calculation of Consolidated Total Debt and
(B) in the case of Holdings, the Borrower and their
Subsidiaries, exclude all intercompany Indebtedness having a term
not exceeding 364 days (inclusive of any roll-over or extensions of
terms) and made in the ordinary course of business consistent with
past practice. The amount of any net Hedging Obligations on any
date shall be deemed to be the Swap Termination Value thereof as of
such date. The amount of Indebtedness of any Person for purposes of
clause (e) above shall be deemed to be equal to the lesser of
(i) the aggregate unpaid amount of such Indebtedness and
(ii) the Fair Market Value of the property encumbered thereby
as determined by such Person in good faith.
“ Indemnified
Parties ” shall have the meaning provided in
Section 12.5(a).
“ Initial Financial
Statement Delivery Date ” shall mean the date on which
Section 8.1 Financials are delivered to the Administrative
Agent under Section 8.1 for the first full fiscal quarter
commencing after the Closing Date.
“ Intercreditor
Agreement ” shall mean the Intercreditor Agreement dated
as of the Closing Date by and between the Collateral Agent and
GECC, as collateral agent under the Revolving Credit Agreement, and
acknowledged by Holdings, the Borrower and the other
Guarantors.
“ Interest
Period ” shall mean, with respect to any Term Loan, the
interest period applicable thereto, as determined pursuant to
Section 2.9.
“ Investment
” shall have the meaning provided in
Section 9.5.
“ Investors
” shall mean the Sponsor, certain other investors arranged by
and/or designated by the Sponsor and identified to the Joint
Bookrunners prior to the Closing Date and the Management
Investors.
“ Joint Lead
Arrangers ” shall mean Barclays Capital, the investment
banking division of Barclays Bank PLC and Calyon New York
Branch.
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“ Joint
Bookrunners ” shall have the meaning provided in the
preamble to this Agreement.
“ Lender ”
shall have the meaning provided in the preamble to this
Agreement.
“ Lien ”
shall mean any mortgage, pledge, security interest, hypothecation,
assignment, lien (statutory or other) or similar encumbrance, and
any easement, right-of-way, license, restriction (including zoning
restrictions), defect, exception or irregularity in title or
similar change or encumbrance (including any agreement to give any
of the foregoing, any conditional sale or other title retention
agreement or any lease in the nature thereof);
provided that in no event shall an operating lease be deemed
to be a Lien.
“ Loan ”
shall mean any Term Loan made by any Lender hereunder.
“ Management
Investors ” shall mean the management officers, directors
and employees of Holdings, the Borrower and the Restricted
Subsidiaries who become investors in Holdings, any of its direct or
indirect parent entities or in the Borrower.
“ Master
Agreement ” shall have the meaning provided in the
definition of the term “ Hedging Agreement.
”
“ Material Adverse
Effect ” shall mean an effect that results in or causes,
or could reasonably be expected to result in or cause, a material
adverse effect on (a) the business, operations, results of
operations, assets, liabilities or condition (financial or
otherwise) of the Borrower and the Restricted Subsidiaries taken as
a whole, (b) the legality, validity or enforceability of any
Credit Document, (c) the ability of the Credit Parties (taken
as a whole) to perform their respective obligations under the
Credit Documents or (d) the rights and remedies of the
Administrative Agent, the Collateral Agent or the Lenders under the
Credit Documents.
“ Maturity Date
” shall mean the date that is six years after the Closing
Date; provided that if such date is not a Business
Day, the “Maturity Date” will be the next succeeding
Business Day.
“ Merger ”
shall have the meaning provided in the recitals to this
Agreement.
“ Merger
Consideration ” shall have the meaning provided in the
recitals to this Agreement.
“ Merger Funds
” shall have the meaning provided in the recitals to this
Agreement.
“ Merger Sub
” shall have the meaning provided in the recitals to this
Agreement.
“ Minimum Borrowing
Amount ” shall mean $5,000,000.
“ Minority
Investment ” shall mean any Person (other than a
Subsidiary) in which the Borrower or any Restricted Subsidiary owns
Capital Stock.
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“ Moody’s
” shall mean Moody’s Investors Service, Inc. or any
successor by merger or consolidation to its business.
“ Mortgage
” shall mean a mortgage or a deed of trust, deed to secure
debt, trust deed or other security document entered into by the
owner of a Mortgaged Property and the Collateral Agent for the
benefit of the Secured Parties in respect of that Mortgaged
Property, substantially in the form of Exhibit C (with such changes
thereto as may be necessary to account for local law matters) or
otherwise in such form as agreed between the Borrower and the
Collateral Agent or, in the case of any Mortgaged Property located
outside the United States of America, in such form as agreed
between the Borrower and the Collateral Agent.
“ Mortgage
Supporting Documents ” shall mean the documents which are
to be delivered under Section 8.14(c) with respect to any
Mortgage for any Mortgaged Property.
“ Mortgaged
Property ” shall mean, initially, each parcel of real
estate and improvements thereto owned by a Credit Party and
identified on Schedule 1.1(b), and each other parcel of real
property and improvements thereto with respect to which a Mortgage
is required to be granted pursuant to
Section 8.14(b).
“ Net Cash
Proceeds ” shall mean, with respect to any Prepayment
Event, (a) the gross cash proceeds (including payments from
time to time in respect of installment obligations, if applicable)
received by or on behalf of Holdings, the Borrower or any of the
Restricted Subsidiaries in respect of such Prepayment Event,
less (b) the sum of:
(i) in the case of any
Prepayment Event, the amount, if any, of all taxes paid or
estimated to be payable by Holdings, the Borrower or any of the
Restricted Subsidiaries in connection with such Prepayment Event
(including withholding taxes imposed on the repatriation of any
such Net Cash Proceeds),
(ii) in the case of any
Prepayment Event, the amount of any reasonable reserve established
in accordance with GAAP against any liabilities (other than any
taxes deducted pursuant to clause (i) above)
(x) associated with the assets that are the subject of such
Prepayment Event and (y) retained by the Borrower or any of
the Restricted Subsidiaries including any pension and other
post-employment benefit liabilities and liabilities related to
environmental matters or against any indemnification obligations
associated with such transaction; provided that the
amount of any subsequent reduction of such reserve (other than in
connection with a payment in respect of any such liability) shall
be deemed to be Net Cash Proceeds of such Prepayment Event
occurring on the date of such reduction,
(iii) in the case of any
Prepayment Event, the amount of any principal amount, premium or
penalty, if any, interest or other amounts on any Indebtedness
secured by a Lien on the assets that are the subject of such
Prepayment Event to the extent that the instrument creating or
evidencing such Indebtedness requires that such Indebtedness be
repaid upon consummation of such Prepayment Event and such
Indebtedness is actually so repaid,
(iv) in the case of any Asset
Sale Prepayment Event or Permitted Sale Leaseback (other than
transactions under Section 9.4(c) and 9.4(g) yielding net cash
proceeds in excess of $150,000,000 in the aggregate for all such
transactions consummated after the Closing
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Date and transactions under
Section 9.4(d)(ii)), the amount of any proceeds of such Asset
Sale Prepayment Event or such Permitted Sale Leaseback that the
Borrower or the applicable Restricted Subsidiary has reinvested (or
intends to reinvest), or has entered into an Acceptable
Reinvestment Commitment to reinvest, within the Reinvestment
Period, in the business of the Borrower or any of the Restricted
Subsidiaries (subject to Section 8.13); provided
that:
(A) the Borrower or the
applicable Restricted Subsidiary shall comply with
Sections 8.10, 8.11 and 8.14(b) with respect to such
reinvestment;
(B) any portion of such
proceeds that has not been so reinvested or made subject to an
Acceptable Reinvestment Commitment within the Reinvestment Period
shall (x) be deemed to be Net Cash Proceeds of an Asset Sale
Prepayment Event or a Permitted Sale Leaseback occurring on the
later of (1) the last day of the Reinvestment Period and
(2) 180 days after the date that the Borrower or such
Restricted Subsidiary shall have entered into an Acceptable
Reinvestment Commitment or provided a Restoration Certification and
(y) be applied to the repayment of Term Loans in accordance
with Section 4.2(a)(i); and
(C) any proceeds subject to
an Acceptable Reinvestment Commitment that is later canceled or
terminated for any reason before such proceeds are applied in
accordance therewith shall be applied to the repayment of Term
Loans in accordance with Section 4.2(a)(i), unless the
Borrower or the applicable Restricted Subsidiary enters into
another Acceptable Reinvestment Commitment with respect to such
proceeds prior to the end of the Reinvestment Period,
(v) in the case of any
Recovery Prepayment Event, the amount of any proceeds of such
Recovery Prepayment Event (x) that the Borrower or the
applicable Restricted Subsidiary has reinvested (or intends to
reinvest), or has entered into an Acceptable Reinvestment
Commitment to reinvest, within the Reinvestment Period, in the
business of the Borrower or any of the Restricted Subsidiaries
(subject to Section 8.13), including for the repair,
restoration or replacement of the asset or assets subject to such
Recovery Prepayment Event, or (y) for which the Borrower or
the applicable Restricted Subsidiary has provided a Restoration
Certification prior to the end of the Reinvestment Period;
provided that:
(A) the Borrower or the
applicable Restricted Subsidiary shall comply with
Sections 8.10, 8.11 and 8.14(b) with respect to such
reinvestment;
(B) any portion of such
proceeds that has not been so reinvested or made subject to an
Acceptable Reinvestment Commitment or Restoration Certification
within the Reinvestment Period shall (x) be deemed to be Net
Cash Proceeds of a Recovery Prepayment Event occurring on the later
of (1) the last day of the Reinvestment Period and
(2) 180 days after the date that the Borrower or such
Restricted Subsidiary shall have entered into an Acceptable
Reinvestment Commitment or provided a Restoration Certification and
(y) be applied to the repayment of Term Loans in accordance
with Section 4.2(a)(i); and
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(C) any proceeds subject to
an Acceptable Reinvestment Commitment or a Restoration
Certification that is later canceled or terminated for any reason
before such proceeds are applied in accordance therewith shall be
applied to the repayment of Term Loans in accordance with
Section 4.2(a)(i), unless the Borrower or the applicable
Restricted Subsidiary enters into another Acceptable Reinvestment
Commitment or provides another Restoration Certification with
respect to such proceeds prior to the end of the Reinvestment
Period,
(vi) in the case of any Asset
Sale Prepayment Event, Recovery Prepayment Event or Permitted Sale
Leaseback by any non-wholly owned Restricted Subsidiary, the pro
rata portion of the net cash proceeds thereof (calculated without
regard to this clause (vi)) attributable to minority interests and
not available for distribution to or for the account of the
Borrower or a wholly owned Restricted Subsidiary as a result
thereof, and
(vii) in the case of any
Prepayment Event, reasonable and customary fees, commissions,
expenses (including attorney’s fees, investment banking fees,
survey costs, title insurance premiums and recording charges,
transfer taxes, deed or mortgage recording taxes and other
customary expenses and brokerage, consultant and other customary
fees), issuance costs, discounts and other costs paid by Holdings,
the Borrower or any of the Restricted Subsidiaries, as applicable,
in connection with such Prepayment Event (other than those payable
to Holdings, the Borrower or any Subsidiary of the Borrower), in
each case only to the extent not already deducted in arriving at
the amount referred to in clause (a) above.
“ Non-Cash
Charges ” shall mean (a) any impairment charge or
asset write-off or write-down related to intangible assets
(including goodwill), long-lived assets, and investments in debt
and equity securities pursuant to GAAP, (b) all losses from
investments recorded using the equity method, (c) all Non-Cash
Compensation Expenses, (d) the non-cash impact of purchase
accounting, and (e) other non-cash charges (provided, in each
case, that if any non-cash charges represent an accrual or reserve
for potential cash items in any future period, the cash payment in
respect thereof in such future period shall be subtracted from
Consolidated EBITDA to such extent, and excluding amortization of a
prepaid cash item that was paid in a prior period).
“ Non-Cash
Compensation Expense ” shall mean any non-cash expenses
and costs that result from the issuance of stock-based awards,
partnership interest-based awards and similar incentive based
compensation awards or arrangements.
“ Non-Cash
Compensation Liabilities ” shall mean any liabilities
recorded in connection with stock-based awards, partnership
interest-based awards and similar incentive based compensation
awards or arrangements.
“ Non-Consenting
Lender ” shall have the meaning provided in
Section 12.7(b).
“ Non-Defaulting
Lender ” shall mean and include each Lender other than a
Defaulting Lender.
“ Non-Excluded
Taxes ” shall have the meaning provided in
Section 4.4(a).
“ Non-U.S.
Lender ” shall have the meaning provided in
Section 4.4(e).
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“ Notice of
Borrowing ” shall mean a request of the Borrower in
accordance with the terms of Section 2.3 and substantially in
the form of Exhibit F or such other form as shall be approved by
the Administrative Agent (acting reasonably).
“ Notice of
Conversion or Continuation ” shall have the meaning
provided in Section 2.6.
“ Obligations
” shall mean the collective reference to (a) the due and
punctual payment of (i) the principal of and premium, if any,
and interest at the applicable rate provided in this Agreement
(including interest accruing during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding) on the Loans, when
and as due, whether at maturity, by acceleration, upon one or more
dates set for prepayment or otherwise, and (ii) all other
monetary obligations, including fees, costs, expenses and
indemnities, whether primary, secondary, direct, contingent, fixed
or otherwise (including monetary obligations incurred during the
pendency of any bankruptcy, insolvency, receivership or other
similar proceeding, regardless of whether allowed or allowable in
such proceeding), of the Borrower or any other Credit Party to any
of the Secured Parties under this Agreement and the other Credit
Documents, (b) the due and punctual performance of all
covenants, agreements, obligations and liabilities of the Borrower
under or pursuant to this Agreement and the other Credit Documents,
(c) the due and punctual payment and performance of all the
covenants, agreements, and liabilities of each other Credit Party
under or pursuant to this Agreement or the other Credit Documents,
(d) the due and punctual payment and performance of all
obligations under each Secured Hedging Agreement and (e) the
due and punctual payment and performance of all Cash Management
Obligations under each Secured Cash Management Agreement.
Notwithstanding the foregoing, (i) the obligations of
Holdings, the Borrower or any Subsidiary under any Secured Hedging
Agreement and under any Secured Cash Management Agreement shall be
secured and guaranteed pursuant to the Security Documents and the
Guarantee only to the extent that, and for so long as, the other
Obligations are so secured and guaranteed and (ii) any release
of Collateral or Guarantors effected in the manner permitted by
this Agreement and the other Credit Document shall not require the
consent of the holders of Hedging Obligations under Secured Hedging
Agreements or of the holders of Cash Management Obligations under
Secured Cash Management Agreements.
“ Organizational
Documents ” shall mean, (a) with respect to any
corporation, the certificate or articles of incorporation and the
bylaws (or equivalent or comparable constitutive documents with
respect to any non-U.S. jurisdiction); (b) with respect to any
limited liability company, the certificate or articles of formation
or organization and operating agreement; and (c) with
respect to any partnership, joint venture, trust or other form of
business entity, the partnership, joint venture or other applicable
agreement of formation or organization and, if applicable, any
agreement, instrument, filing or notice with respect thereto filed
in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its
formation or organization and, if applicable, any certificate or
articles of formation or organization of such entity.
“ Other Taxes
” shall have the meaning provided in
Section 4.4(b).
“ Participant
” shall have the meaning provided in
Section 12.6(c)(i).
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“ PATRIOT ACT
” shall have the meaning provided in
Section 12.18.
“ PBGC ”
shall mean the Pension Benefit Guaranty Corporation established
pursuant to Section 4002 of ERISA, or any successor
thereto.
“ Perfection
Certificate ” shall mean a certificate of the Borrower in
the form of Exhibit D or any other form approved by the
Administrative Agent.
“ Permitted
Acquisition ” shall mean any acquisition, by merger or
otherwise, by the Borrower or any of the Restricted Subsidiaries of
assets (including any assets constituting a business unit, line of
business or division) or Capital Stock, so long as (a) such
acquisition and all transactions related thereto shall be
consummated in accordance with all Applicable Laws; (b) if
such acquisition involves the acquisition of a Subsidiary, such
acquisition shall result in the issuer of such Capital Stock
becoming a Restricted Subsidiary and a Guarantor, to the extent
required by Section 8.10; (c) such acquisition shall
result in the Collateral Agent, for the benefit of the Secured
Parties, being granted a security interest in any Capital Stock or
any assets so acquired to the extent required by
Sections 8.10, 8.11 and/or 8.14(b); (d) after giving
effect to such acquisition, no Event of Default shall have occurred
and be continuing; (e) after giving effect to such
acquisition, the Borrower and its Restricted Subsidiaries shall be
in compliance with Section 8.13; (f) the Borrower shall
be in compliance, on a Pro Forma Basis after giving effect to such
acquisition (including any Indebtedness assumed or permitted to
exist or incurred pursuant to Sections 9.1(k) and 9.1(l),
respectively, and any related Pro Forma Adjustment), with the
covenants set forth in Section 9.11, as such covenants are
recomputed as at the last day of the most recently ended Test
Period as if such acquisition had occurred on the first day of such
Test Period and (g) the Permitted Acquisition Consideration
paid in connection with such Permitted Acquisition when combined
with the Permitted Acquisition Consideration of the prior Permitted
Acquisitions consummated after the Closing Date shall not exceed
the sum of (i) 10% of Consolidated Total Assets (determined as
at the last day of the most recently ended Test Period prior to
such Permitted Acquisition), plus (ii) the Reinvestment
Deferred Amount.
“ Permitted
Acquisition Consideration ” shall mean in connection with
any Permitted Acquisition, the aggregate amount (as valued at the
Fair Market Value of such Permitted Acquisition at the time such
Permitted Acquisition is made) of, without duplication:
(i) the purchase consideration paid or payable in cash for
such Permitted Acquisition, whether payable at or prior to the
consummation of such Permitted Acquisition or deferred for payment
at any future time, whether or not any such future payment is
subject to the occurrence of any contingency, and including any and
all payments representing the purchase price and any assumptions of
Indebtedness and/or Guarantee Obligations, “earn-outs”
and other agreements to make any payment the amount of which is, or
the terms of payment of which are, in any respect subject to or
contingent upon the revenues, income, cash flow or profits (or the
like) of any person or business; (ii) the aggregate
amount of Indebtedness incurred or assumed in connection with such
Permitted Acquisition; provided in each case, that any
such future payment that is subject to a contingency shall be
considered Permitted Acquisition Consideration only to the extent
of the reserve, if any, required under GAAP (as determined at the
time of the consummation of such Permitted Acquisition) to be
established in respect thereof by Holdings, the Borrower or its
Restricted Subsidiaries.
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“ Permitted
Additional Notes ” shall mean unsecured senior, senior
subordinated or subordinated notes issued by the Borrower;
provided that (a) the terms of such notes do not
provide for any scheduled repayment, mandatory redemption or
sinking fund obligation prior to the date that is 91 days after the
latest Maturity Date of any Credit Facility hereunder, other than,
subject to the prior repayment of or the prior offer to repay the
Obligations hereunder, customary offers to purchase upon a change
of control, asset sale or casualty or condemnation event and
customary acceleration rights upon an event of default,
(b) the covenants, events of default, Subsidiary guarantees
and other terms for such notes ( provided that such notes
shall have interest rates and redemption premiums determined by
Holdings or the Borrower, as the case may be, to be market rates
and premiums at the time of issuance of such notes), taken as a
whole, are determined by Holdings or the Borrower, as the case may
be, to be market terms on the date of issuance and in any event are
not more restrictive on Holdings, the Borrower and its Restricted
Subsidiaries, or materially less favorable to the Lenders, than the
terms of this Agreement (as in effect on the Closing Date) and do
not require the maintenance or achievement of any financial
performance standards other than as a condition to taking specified
actions; provided that a certificate of an Authorized
Officer of Holdings or the Borrower, as the case may be, delivered
to the Administrative Agent at least five Business Days prior to
the incurrence of such Indebtedness, together with a reasonably
detailed description of the material terms and conditions of such
Indebtedness or drafts of the documentation relating thereto,
stating that Holdings or the Borrower, as the case may be, has
determined in good faith that such terms and conditions satisfy the
foregoing requirement shall be conclusive evidence that such terms
and conditions satisfy the foregoing requirement unless the
Administrative Agent notifies Holdings and the Borrower within such
five Business Day period that it disagrees with such determination
(including a reasonable description of the basis upon which it
disagrees), (c) if such notes are senior subordinated or
subordinated notes, the terms of such notes provide for customary
subordination of such notes to the Obligations and (d) no
Subsidiary of the Borrower (other than a Guarantor) is an obligor
under such notes.
“ Permitted Cure
Security ” shall mean an equity security of Holdings or
the Borrower (or any direct or indirect parent thereof) having no
mandatory redemption, repurchase or similar requirements prior to
91 days after the latest Maturity Date of any Credit Facility
hereunder, and upon which all dividends or distributions (if any)
shall be, prior to 91 days after the latest Maturity Date
hereunder, payable solely in additional shares of such equity
security; provided that all equity securities of
Holdings issued in connection with the Equity Contributions shall
not be deemed to be Permitted Cure Securities.
“ Permitted
Investments ” shall mean (a) Dollars and, with
respect to any Foreign Subsidiaries, local currencies held by such
Foreign Subsidiary, in each case in the ordinary course of
business; (b) securities issued or unconditionally guaranteed
or insured by the United States government or any agency or
instrumentality thereof, in each case having maturities of not more
than 24 months from the date of acquisition thereof; (c)
securities issued by any state, commonwealth or territory of the
United States of America or any political subdivision or taxing
authority of any such state, commonwealth or territory or any
public instrumentality thereof or any political subdivision or
taxing authority of any such state, commonwealth or territory or
any public instrumentality thereof having maturities of not more
than 24 months from the date of acquisition thereof and, at the
time of acquisition, having an investment grade rating generally
obtainable from either S&P or Moody’s (or, if at any time
neither S&P nor Moody’s shall be
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rating such obligations, then from
another nationally recognized rating service); (d) commercial
paper or variable or fixed rate notes issued by or guaranteed by
any Lender or any bank holding company owning any Lender; (e)
commercial paper or variable or fixed rate notes maturing no more
than 12 months after the date of creation thereof and, at the time
of acquisition, having a rating of at least A-2 or P-2 from either
S&P or Moody’s (or, if at any time neither S&P nor
Moody’s shall be rating such obligations, an equivalent
rating from another nationally recognized rating service); (f)
time deposits with, or domestic and Eurodollar certificates of
deposit or bankers’ acceptances maturing no more than two
years after the date of acquisition thereof issued by, any Lender
or any other bank having combined capital and surplus of not less
than $250,000,000 in the case of domestic banks and $100,000,000
(or the dollar equivalent thereof) in the case of foreign
banks; (g) repurchase agreements with a term of not more than
30 days for underlying securities of the type described in
clauses (b), (c) and (f) above entered into with any
bank meeting the qualifications specified in clause (f) above
or securities dealers of recognized national standing; (h)
marketable short-term money market and similar securities having a
rating of at least A-2 or P-2 from either S&P or Moody’s
(or, if at any time neither S&P nor Moody’s shall be
rating such obligations, an equivalent rating from another
nationally recognized rating service); (i) shares of
investment companies that are registered under the Investment
Company Act of 1940 and invest solely in one or more of the types
of securities described in clauses (a) through
(h) above; and (j) in the case of investments by any
Restricted Foreign Subsidiary or investments made in a country
outside the United States of America, other customarily utilized
high-quality investments in the country where such Restricted
Foreign Subsidiary is located or in which such investment is
made.
“ Permitted
Liens ” shall mean (a) Liens for taxes, assessments
or other governmental charges or claims that are either
(i) not yet due and payable and not subject to penalties for
nonpayment or (ii) being diligently contested in good faith by
appropriate proceedings for which appropriate reserves have been
established in accordance with GAAP, (b) Liens in respect of
property or assets of Holdings, the Borrower or any of its
Subsidiaries imposed by law, such as landlord’s,
carriers’, warehousemen’s, repairmen’s,
construction contractors’ and mechanics’ Liens and
other similar Liens, in each case so long as such Liens arise in
the ordinary course of business and do not individually or in the
aggregate have a Material Adverse Effect, (c) Liens arising
from judgments or decrees for the payment of money in circumstances
not constituting an Event of Default under Section 10.10,
(d) Liens incurred or pledges or deposits made in connection
with workers’ compensation, unemployment insurance and other
types of social security or similar legislation and deposits
securing liabilities to insurance carriers under insurance or
self-insurance arrangements in respect of such obligations, or to
secure the performance of tenders, statutory obligations, surety,
stay, customs and appeal bonds, bids, leases (other than
Capitalized Leases), government contracts, trade contracts (other
than for Indebtedness), performance and return-of-money bonds and
other similar obligations (including letters of credit issued in
lieu of any such bonds or to support the issuance thereof and
including those to secure health, safety and environmental
obligations) incurred in the ordinary course of business,
(e) ground leases or subleases, licenses or sublicenses in
respect of real property on which facilities owned or leased by
Holdings, the Borrower or any of its Subsidiaries are located,
(f) easements, rights-of-way, licenses, restrictions
(including zoning restrictions), minor defects, exceptions or
irregularities in title, encroachments, protrusions and other
similar charges or encumbrances, in each case do not, in the
aggregate, materially detract from the value of the Real Estate of
the Borrower and its Subsidiaries, taken as a whole, or interfere
in any
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material respect with the business of
the Borrower and its Subsidiaries, taken as a whole, and that were
not incurred in connection with and do not secure any Indebtedness,
and to the extent reasonably agreed by the Administrative Agent,
any exception on the title policies issued in connection with any
Mortgaged Property, (g) any interest or title of a lessor,
sublessor, licensor or sublicensor or secured by a lessor’s,
sublessor’s, licensor’s or sublicensor’s interest
under any lease permitted by this Agreement, (h) Liens in
favor of customs and revenue authorities arising as a matter of law
to secure payment of customs duties in connection with the
importation of goods, (i) Liens on goods or inventory the
purchase, shipment or storage price of which is financed by a
documentary letter of credit or bankers’ acceptance issued or
created for the account of the Borrower or any of its
Subsidiaries; provided that such Lien secures only the
obligations of the Borrower or such Subsidiaries in respect of such
letter of credit to the extent permitted under Section 9.1,
(j) licenses of intellectual property granted in a manner
consistent with past practice, (k) Liens arising from
precautionary Uniform Commercial Code financing statement or
similar filings made in respect of operating leases entered into by
the Borrower or any of its Subsidiaries and (l) any zoning or
similar law or right reserved to, or vested in, any Governmental
Authority to control or regulate the use of any real property that
does not materially interfere with the ordinary course of conduct
of the business of the Borrower and its Restricted Subsidiaries,
taken as a whole.
“ Permitted
Refinancing Indebtedness ” shall mean, with respect to
any Indebtedness (the “ Refinanced Indebtedness”
) any Indebtedness issued in exchange for, or the net proceeds of
which are used to modify, extend, refinance, renew, replace or
refund (collectively to “ Refinance ” or a
“ Refinancing ” or “ Refinanced
”) such Refinanced Indebtedness (or previous refinancing
thereof constituting Permitted Refinancing
Indebtedness); provided that (A) the principal amount (or
accreted value, if applicable) of any such Permitted Refinancing
Indebtedness does not exceed the principal amount (or accreted
value, if applicable) of the Refinanced Indebtedness outstanding
immediately prior to such Refinance except by an amount equal to
the unpaid accrued interest and premium thereon plus other
reasonable amounts paid and fees and expenses incurred in
connection with such Refinancing plus an amount equal to any
existing commitment unutilized and letters of credit undrawn
thereunder and (B) if the Indebtedness being Refinanced is
Indebtedness permitted by Section 9.1(a), 9.1(h), 9.1(j) or
9.1(w), the direct and contingent obligors with respect to such
Permitted Refinancing Indebtedness are not changed, (C) other
than with respect to a Refinancing in respect of Indebtedness
permitted pursuant to Section 9.1(c), such Permitted
Refinancing Indebtedness shall have a final maturity date equal to
or later than the final maturity date of, and has a Weighted
Average Life to Maturity equal to or greater than the Weighted
Average Life to Maturity of, the Refinanced Indebtedness, and
(D) if the Indebtedness being Refinanced is Indebtedness
permitted by Section 9.1(a)(ii), 9.1(h), 9.1(j) or 9.1(w), the
terms and conditions of any such Permitted Refinancing
Indebtedness, taken as a whole, are not materially less favorable
to the Lenders than the terms and conditions of the Refinanced
Indebtedness being Refinanced (including, if applicable, as to
collateral and subordination, but excluding as to interest rates
and redemption premiums); provided that a certificate
of an Authorized Officer of Holdings or the Borrower delivered to
the Administrative Agent at least 10 Business Days prior to the
incurrence of such Indebtedness, together with a reasonably
detailed description of the material terms and conditions of such
Indebtedness or drafts of the documentation relating thereto,
stating that Holdings or the Borrower, as the case may be, has
determined in good faith that such terms and conditions satisfy the
foregoing requirement shall be conclusive evidence that such terms
and
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conditions satisfy the foregoing
requirement unless the Administrative Agent notifies Holdings and
the Borrower within such 10 Business Day period that it disagrees
with such determination (including a reasonable description of the
basis upon which it disagrees).
“ Permitted Sale
Leaseback ” shall mean any Sale Leaseback consummated by
the Borrower or any of the Restricted Subsidiaries pursuant to
Section 9.4(g).
“ Person ”
shall mean any individual, partnership, joint venture, firm,
corporation, limited liability company, association, trust or other
enterprise or any Governmental Authority.
“ PIK Interest
Amount ” shall mean the aggregate principal amount of all
increases in the outstanding principal amount of the Senior
Subordinated Notes (or any Permitted Refinancing Indebtedness
incurred to Refinance such Indebtedness) including any issuances of
PIK Notes (as defined in the Senior Subordinated Notes Indenture or
any similar document) in connection with the payment by the
Borrower to pay interest on the Senior Subordinated Notes (or any
Permitted Refinancing Indebtedness incurred to Refinance such
Indebtedness) in kind.
“ Plan ”
shall mean (a) any multiemployer, as defined in
Section 4001 of ERISA and subject to Title IV of ERISA, that
(i) is maintained or contributed to by the Borrower, a
Subsidiary or an ERISA Affiliate, (ii) was so maintained or
contributed to and in respect of which the Borrower, any Restricted
Subsidiary or any ERISA Affiliate could have liability under
Section 4212 (c) of ERISA in the event such plan has been
or were to be terminated or (b) any single employer plan, as
defined in Section 4001(a)(15) of ERISA that (i) is
maintained for employees of the Borrower, any Restricted Subsidiary
or any ERISA Affiliate or (ii) was so maintained and in
respect of which the Borrower, any Restricted Subsidiary or ERISA
Affiliate could have liability under Section 4069 of ERISA in
the event such plan has been or were to be terminated.
“ Pledge
Agreement ” shall mean the Term Loan Pledge Agreement,
entered into by Holdings, the Borrower, the other pledgors party
thereto and the Collateral Agent for the benefit of the Secured
Parties, substantially in the form of Exhibit E-2.
“ Post-Acquisition
Period ” shall mean, with respect to any Specified
Transaction, the period beginning on the date such Specified
Transaction is consummated and ending on the last day of the fourth
full consecutive fiscal quarter immediately following the date on
which such Specified Transaction is consummated.
“ Prepayment
Event ” shall mean any Asset Sale Prepayment Event,
Recovery Prepayment Event, Debt Incurrence Prepayment Event or
Permitted Sale Leaseback.
“ Prime Rate
” shall mean the rate of interest per annum published by the
Wall Street Journal from time to time, as the prime lending
rate.
“ Pro Forma
Adjustment ” shall mean, for any Test Period that
includes all or any part of a fiscal quarter included in any
Post-Acquisition Period with respect to the Acquired EBITDA of the
applicable Pro Forma Entity or the Consolidated EBITDA of the
Borrower, the pro forma increase or decrease in such Acquired
EBITDA or such Consolidated EBITDA, as the case may be, projected
by the Borrower in good faith as a result of (a) actions
taken, prior to or
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during such Post-Acquisition Period, for
the purposes of realizing reasonably identifiable and factually
supportable cost savings, or (b) any additional costs incurred
prior to or during such Post-Acquisition Period in connection with
the combination of the operations of such Pro Forma Entity with the
operations of the Borrower and the Restricted Subsidiaries;
provided that (A) so long as such actions are taken
prior to or during such Post-Acquisition Period or such costs are
incurred prior to or during such Post-Acquisition Period it may be
assumed, for purposes of projecting such pro forma increase or
decrease to such Acquired EBITDA or such Consolidated EBITDA, as
the case may be, that such cost savings will be realizable during
the entirety of such Test Period, or such additional costs will be
incurred during the entirety of such Test Period, and (B) any
such pro forma increase or decrease to such Acquired EBITDA or such
Consolidated EBITDA, as the case may be, shall be without
duplication for cost savings or additional costs already included
in such Acquired EBITDA or such Consolidated EBITDA, as the case
may be, for such Test Period.
“ Pro Forma
Adjustment Certificate ” shall mean any certificate of an
Authorized Officer of the Borrower delivered pursuant to
Section 8.1(i) or setting forth the information described in
clause (iv) to Section 8.1(d).
“ Pro Forma
Basis ”, “ Pro Forma Compliance ” and
“ Pro Forma Effect ” shall mean, with respect to
compliance with any test or covenant hereunder, that (A) to
the extent applicable, the Pro Forma Adjustment shall have been
made and (B) all Specified Transactions and the following
transactions in connection therewith shall be deemed to have
occurred as of the first day of the applicable period of
measurement in such test or covenant: (a) income statement
items (whether positive or negative) attributable to the property
or Person subject to such Specified Transaction, (i) in the
case of a sale, transfer or other disposition of all or
substantially all Capital Stock in any Subsidiary of the Borrower
or any division, product line, or facility used for operations of
the Borrower or any of its Subsidiaries, shall be excluded, and
(ii) in the case of a Permitted Acquisition or Investment
described in the definition of the term “ Specified
Transaction ”, shall be included, (b) any retirement
or repayment of Indebtedness and (c) any Indebtedness incurred
or assumed by the Borrower or any of the Restricted Subsidiaries in
connection therewith and if such Indebtedness has a floating or
formula rate, shall have an implied rate of interest for the
applicable period for purposes of this definition determined by
utilizing the rate that is or would be in effect with respect to
such Indebtedness as at the relevant date of determination;
provided that, without limiting the application of the Pro
Forma Adjustment pursuant to (A) above (but without
duplication thereof), the foregoing pro forma adjustments may be
applied to any such test or covenant solely to the extent that such
adjustments are consistent with the definition of Consolidated
EBITDA and give effect to events (including operating expense
reductions) that are (i) (x) directly attributable to such
transaction, (y) expected to have a continuing impact on the
Borrower and the Restricted Subsidiaries and (z) factually
supportable or (ii) otherwise consistent with the definition
of the term “ Pro Forma Adjustment ”.
“ Pro Forma
Entity ” shall mean any Acquired Entity or Business or
any Converted Restricted Subsidiary.
“ Qualified Capital
Stock ” shall mean any Capital Stock that is not
Disqualified Capital Stock.
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“ Qualifying IPO
” shall mean the issuance by Holdings (or any direct or
indirect parent of Holdings) of its common Capital Stock generating
(individually or in the aggregate together with any prior initial
public offering) gross proceeds exceeding $100,000,000, in an
underwritten primary public offering (other than a public offering
pursuant to a registration statement on Form S-8) pursuant to an
effective registration statement filed with the SEC in accordance
with the Securities Act (whether alone or in connection with a
secondary public offering).
“ Real Estate
” shall have the meaning provided in
Section 8.1(g).
“ Recovery Event
” shall mean (a) any damage to, destruction of or other
casualty or loss involving any property or asset or (b) any
seizure, condemnation, confiscation or taking under the power of
eminent domain of, or any requisition of title or use of or
relating to, or any similar event in respect of, any property or
asset.
“ Recovery
Prepayment Event ” shall mean the receipt of cash
proceeds with respect to any settlement or payment in connection
with any Recovery Event in respect of any property or asset of the
Borrower or any Restricted Subsidiary; provided that
the term “ Recovery Prepayment Event ” shall not
include any Asset Sale Prepayment Event or any Permitted Sale
Leaseback.
“ Reference
Lender ” shall mean Barclays Bank PLC.
“ Refinanced Term
Loans ” shall have the meaning provided in
Section 12.1.
“ Refinance
” shall have the meaning provided in the definition of the
term “ Permitted Refinancing Indebtedness
.”
“ Refinancing
” shall have the meaning provided in the recitals to this
Agreement.
“ Register
” shall have the meaning provided in
Section 12.6(b)(v).
“ Regulation D
” shall mean Regulation D of the Board as from time to time
in effect and any successor to all or a portion thereof
establishing reserve requirements.
“ Regulation T
” shall mean Regulation T of the Board as from time to time
in effect and any successor to all or a portion thereof
establishing margin requirements.
“ Regulation U
” shall mean Regulation U of the Board as from time to time
in effect and any successor to all or a portion thereof
establishing margin requirements.
“ Regulation X
” shall mean Regulation X of the Board as from time to time
in effect and any successor to all or a portion thereof
establishing margin requirements.
“ Reinvestment
Period ” shall mean, with respect to any Asset Sale
Prepayment Event, Permitted Sale Leaseback or Recovery Prepayment
Event, the day which is twelve months after the receipt of cash
proceeds from such Asset Sale Prepayment Event, Permitted Sale
Leaseback or Recovery Prepayment Event.
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“ Reinvestment
Deferred Amount ” shall mean, with respect to any
Prepayment Event (other than a Debt Incurrence Prepayment Event),
the aggregate net cash proceeds received by the Borrower or any of
the Restricted Subsidiaries in connection therewith and that the
Borrower has neither reinvested (including by way of Permitted
Acquisition, as the case may be) nor applied to prepay the Term
Loans in accordance with the provisions of
Section 4.2(a)(i).
“ Related
Parties ” shall mean, with respect to any specified
Person, such Person’s Affiliates and the directors, officers,
employees, agents, trustees, advisors of such Person or such
Person’s Affiliates and any Person that possesses, directly
or indirectly, the power to direct or cause the direction of the
management or policies of such Person, whether through the ability
to exercise voting power, by contract or otherwise.
“ Repayment
Amount ” “shall have the meaning provided in
Section 2.5(b).
“ Repayment Date
” shall have the meaning provided in
Section 2.5(b).
“ Replacement Term
Loans ” shall have the meaning provided in
Section 12.1.
“ Reportable
Event ” shall mean an event described in
Section 4043 of ERISA and the regulations
thereunder.
“ Required
Lenders ” shall mean at any time, Lenders holding at such
time more than fifty percent (50%) of the aggregate principal
amount of all Term Loans then outstanding.
“ Restoration
Certification ” shall mean, with respect to any Recovery
Prepayment Event, a certification made by an Authorized Officer of
the Borrower or a Restricted Subsidiary, as applicable, to the
Administrative Agent prior to the end of the Reinvestment Period
certifying (a) that the Borrower or such Restricted Subsidiary
intends to use the proceeds received in connection with such
Recovery Prepayment Event to repair, restore or replace the
property or assets in respect of which such Recovery Prepayment
Event occurred, (b) the approximate costs of completion of
such repair, restoration or replacement and (c) that such
repair, restoration or replacement will be completed within the
later of (x) twelve months after the date on which cash
proceeds with respect to such Recovery Prepayment Event were
received and (y) 180 days after delivery of such Restoration
Certification.
“ Restricted Foreign
Subsidiary ” shall mean each Restricted Subsidiary that
is also a Foreign Subsidiary.
“ Restricted
Subsidiary ” shall mean any Subsidiary of the Borrower
other than an Unrestricted Subsidiary.
“ Revolving Credit
Agent ” shall mean GECC (or any successor thereto) in its
capacity as administrative agent under the Revolving Credit
Agreement.
“ Revolving Credit
Agreement ” shall mean that certain Credit Agreement,
dated as of the Closing Date, among Holdings, the Borrower, the
institutions party thereto as lenders, the Revolving Credit Agent,
GECC and Barclays Capital the investment banking division of
Barclays Bank PLC, as the joint lead arrangers, Barclays Bank PLC,
Calyon New York Branch and GECC, as joint bookrunners.
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“ Revolving Credit
Loans ” shall mean the “ Revolving Credit
Loans ” as such term is defined in the Revolving Credit
Agreement.
“ Revolving Credit
Documents ” shall mean, collectively, the Revolving
Credit Agreement and the other credit documents referred to in the
Revolving Credit Agreement (other than the Intercreditor
Agreement).
“ Revolving Credit
Obligations ” shall mean the “ Obligations
” under and as defined in the Revolving Credit
Agreement.
“ S&P
” shall mean Standard & Poor’s Ratings
Services or any successor by merger or consolidation to its
business.
“ Sale Leaseback
” shall mean any transaction or series of related
transactions pursuant to which the Borrower or any of the
Restricted Subsidiaries (a) sells, transfers or otherwise
disposes of any property, real or personal, whether now owned or
hereafter acquired, and (b) as part of such transaction,
thereafter rents or leases such property or other property that it
intends to use for substantially the same purpose or purposes as
the property being sold, transferred or disposed of.
“ SEC ”
shall mean the Securities and Exchange Commission or any successor
thereto.
“ Section 8.1
Financials ” shall mean the financial statements
delivered, or required to be delivered, pursuant to
Section 8.1(a) or 8.1(b) together with the accompanying
officer’s certificate delivered, or required to be delivered,
pursuant to Section 8.1(d).
“ Secured Cash
Management Agreement ” shall mean any agreement relating
to Cash Management Services that is entered into by and between
Holdings, the Borrower or any Restricted Subsidiary and a Cash
Management Bank.
“ Secured Hedging
Agreement ” shall mean any Hedging Agreement that is
entered into by and between any Credit Party or any Restricted
Subsidiary and any Hedge Bank.
“ Secured
Parties ” shall mean, collectively, (a) the Lenders,
(b) the Administrative Agent, (c) the Collateral Agent,
(d) each Hedge Bank, (e) each Cash Management Bank,
(f) the beneficiaries of each indemnification obligation
undertaken by any Credit Party under the Credit Documents and
(g) any successors, endorsees, transferees and assigns of each
of the foregoing.
“ Securities Act
” shall mean the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder.
“ Security
Agreement ” shall mean the Term Loan Security Agreement,
entered into by the Borrower, the other grantors party thereto and
the Collateral Agent for the benefit of the Secured Parties,
substantially in the form of Exhibit E-1.
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“ Security
Documents ” shall mean, collectively, the Security
Agreement, the Pledge Agreement, the Mortgages and each other
security agreement or other instrument or document executed and
delivered pursuant to Sections 8.10, 8.11 or 8.14 or
pursuant to any of the Security Documents to secure any of the
Obligations.
“ Senior
Subordinated Notes ” shall mean those 13.5/14% senior
subordinated notes due 2016 issued by the Borrower under the Senior
Subordinated Notes Indenture in an initial aggregate principal
amount of $500,000,000, including any “Exchange Note”
issued in an “Exchange Offer” therefore (as such term
is defined in the Senior Subordinated Notes Indenture).
“ Senior
Subordinated Notes Indenture ” shall mean the indenture
for the Senior Subordinated Notes, dated February 13, 2008
among the Borrower and Wells Fargo Bank, National Association, as
trustee.
“ Senior
Subordinated Notes Documents ” shall mean the Senior
Subordinated Notes Indenture and the other credit documents
referred to therein (including the related guarantee, the notes,
the notes purchase agreement and the registration rights
agreements).
“ Sold Entity or
Business ” shall have the meaning provided in the
definition of the term “ Consolidated EBITDA
”.
“ Solvent
” shall mean, with respect to any Person, at any date, that
(a) the sum of such Person’s debt (including contingent
liabilities) does not exceed the present fair saleable value of
such Person’s present assets, (b) such Person’s
capital is not unreasonably small in relation to its business as
contemplated on such date, (c) such Person has not incurred
and does not intend to incur, or believe that it will incur, debts
including current obligations beyond its ability to pay such debts
as they become due (whether at maturity or otherwise), and
(d) such Person is “ solvent ” within the
meaning given that term and similar terms under applicable laws
relating to fraudulent transfers and conveyances. For purposes of
this definition, the amount of any contingent liability at any time
shall be computed as the amount that, in light of all of the facts
and circumstances existing at such time, represents the amount that
can reasonably be expected to become an actual or matured liability
(irrespective of whether such contingent liabilities meet the
criteria for accrual under Statement of Financial Accounting
Standard No. 5).
“ Specified
Obligations ” shall mean Obligations consisting of the
principal of and interest on Loans.
“ Specified
Subsidiary ” shall mean, at any date of determination,
(a) any Restricted Subsidiary whose total assets (when
combined with the assets of such Restricted Subsidiary’s
Subsidiaries after eliminating intercompany obligations) at the
last day of the most recent Test Period ended on or prior to such
date of determination were equal to or greater than 5% of the
Consolidated Total Assets of the Borrower and the Restricted
Subsidiaries at such date, (b) any Restricted Subsidiary whose
gross revenues (when combined with the revenues of such Restricted
Subsidiary’s Subsidiaries after eliminating intercompany
obligations) for such Test Period were equal to or greater than 5%
of the consolidated gross revenues of the Borrower and the
Restricted Subsidiaries for such period, in each case determined in
accordance with
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GAAP or (c) each other Restricted
Subsidiary that, when such Restricted Subsidiary’s total
assets or gross revenues (when combined with the total assets or
revenues of such Restricted Subsidiary’s Subsidiaries after
eliminating intercompany obligations) are aggregated with each
other Restricted Subsidiary (when combined with the total assets or
revenues of such Restricted Subsidiary’s Subsidiaries after
eliminating intercompany obligations) that is the subject of an
Event of Default described in Section 10.5 would constitute a
“Specified Subsidiary” under clause (a) or
(b) above.
“ Specified
Transaction ” shall mean, with respect to any period, any
Investment, sale, transfer or other disposition of assets,
incurrence or repayment of Indebtedness, Dividend, Subsidiary
designation or other event that by the terms of the Credit
Documents requires “ Pro Forma Compliance ” with
a test or covenant hereunder or requires such test or covenant to
be calculated on a “ Pro Forma Basis
”.
“ Sponsor
” shall mean Hellman & Friedman LLC and/or its
Affiliates.
“ Statutory Reserve
Rate ” shall mean for any day as applied to any
Eurodollar Term Loan, a fraction (expressed as a decimal), the
numerator of which is the number one and the denominator of which
is the number one minus the aggregate of the maximum reserve
percentages that are in effect on that day (including any marginal,
special, emergency or supplemental reserves), expressed as a
decimal, as prescribed by the Board and to which the Administrative
Agent is subject, for Eurocurrency funding (currently referred to
as “ Eurocurrency Liabilities ” in Regulation D
of the Board). Such reserve percentages shall include those imposed
pursuant to such Regulation D. Eurodollar Term Loans shall be
deemed to constitute Eurocurrency funding and to be subject to such
reserve requirements without benefit of or credit for proration,
exemptions or offsets that may be available from time to time to
any Lender under such Regulation D or any comparable regulation.
The Statutory Reserve Rate shall be adjusted automatically on and
as of the effective date of any change in any reserve
percentage.
“ Subsidiary
” of any Person shall mean and include (a) any
corporation more than 50% of whose stock of any class or classes
having by the terms thereof ordinary voting power to elect a
majority of the directors of such corporation (irrespective of
whether or not at the time stock of any class or classes of such
corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by such Person
directly or indirectly through Subsidiaries and (b) any
limited liability company, partnership, association, joint venture
or other entity in which such Person directly or indirectly through
Subsidiaries has more than a 50% equity interest at the time.
Unless otherwise expressly provided, all references herein to a
“ Subsidiary ” shall mean a Subsidiary of
Holdings or the Borrower, as applicable.
“ Subsidiary
Guarantor ” shall mean each Guarantor that is a
Subsidiary of the Borrower.
“ Successor
Borrower ” shall have the meaning provided in
Section 9.3(a).
“ Swap Termination
Value ” shall mean, in respect of any one or more Hedging
Agreements, after taking into account the effect of any legally
enforceable netting agreement
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relating to such Hedging Agreements,
(a) for any date on or after the date such Hedging Agreements
have been closed out and termination value(s) determined in
accordance therewith, such termination value(s), and (b) for
any date prior to the date referenced in clause (a), the
amount(s) determined as the mark-to-market value(s) for such
Hedging Agreements, as determined based upon one or more mid-market
or other readily available quotations provided by any recognized
dealer in such Hedging Agreements (which may include a Lender or
any Affiliate of a Lender).
“ Term Loan
” shall have the meaning provided in
Section 2.1(a).
“ Term Loan
Commitment ” shall mean, (a) in the case of each
Lender that is a Lender on the Closing Date, the amount set forth
opposite such Lender’s name on Schedule 1.1(a) as such
Lender’s “ Term Loan Commitment ” and
(b) in the case of any Lender that becomes a Lender after the
Closing Date, the amount specified as such Lender’s “
Term Loan Commitment ” in the Assignment and
Acceptance pursuant to which such Lender assumed a portion of the
Total Commitment, in each case as the same may be changed from time
to time pursuant to the terms hereof. The aggregate amount of the
Term Loan Commitments as of the Closing Date is
$800,000,000.
“ Test Period
” shall mean, for any determination under this Agreement, the
four consecutive fiscal quarters of the Borrower then last ended
and for which Section 8.1 Financials have been delivered to
the Administrative Agent.
“ Total
Commitment ” shall mean the sum of the Term Loan
Commitments of all the Lenders.
“ Transaction
Expenses ” shall mean any fees or expenses incurred or
paid by Holdings, the Borrower or any of their Subsidiaries in
connection with the Transactions and the transactions contemplated
hereby and thereby.
“ Transactions
” shall mean, collectively, (a) the Merger, (b) the
Equity Contribution, (c) the Refinancing, (d) the
entering into the Credit Documents and the funding of the Term
Loans, (e) the entering into the Revolving Credit Documents
and the funding of the Revolving Credit Loans on the Closing Date,
(f) the entering into the Senior Subordinated Notes Documents
and the issuance of the Senior Subordinated Notes pursuant to the
Senior Subordinated Notes Indenture on the Closing Date and, as
applicable, the exchange offer required to be consummated by the
Senior Subordinated Notes Documents, (g) the consummation of
any other transactions connected with the foregoing and
(h) the payment of fees and expenses in connection with any of
the foregoing.
“ Transferee
” shall have the meaning provided in
Section 12.6(e).
“ Type ”
shall mean as to any Term Loan, its nature as an ABR Loan or a
Eurodollar Term Loan.
“ Unfunded Current
Liability ” of any Plan shall mean the amount, if any, by
which the present value of the accrued benefits under the Plan as
of the close of its most recent plan year, determined in accordance
with Statement of Financial Accounting Standards No. 87 as
in
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effect on the Closing Date, based upon
the actuarial assumptions that would be used by the Plan’s
actuary in a termination of the Plan, exceeds the Fair Market Value
of the assets allocable thereto.
“ Unrestricted
Subsidiary ” shall mean (a) any Subsidiary of the
Borrower that is formed or acquired after the Closing Date and is
designated as an Unrestricted Subsidiary by the Borrower pursuant
to Section 8.15 subsequent to the Closing Date, (b) any
existing Restricted Subsidiary of the Borrower that is designated
as an Unrestricted Subsidiary by the Borrower pursuant to
Section 8.15 subsequent to the Closing Date and (c) any
Subsidiary of an Unrestricted Subsidiary.
“ Voting Stock
” shall mean, with respect to any Person, shares of such
Person’s Capital Stock having the right to vote for the
election of directors of such Person under ordinary
circumstances.
“ Weighted Average
Life to Maturity ” shall mean, when applied to any
Indebtedness at any date, the number of years obtained by dividing:
(a) the sum of the products obtained by multiplying
(i) 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
(ii) the number of years (calculated to the nearest
one-twelfth) that will elapse between such date and the making of
such payment; by (b) the then outstanding principal
amount of such Indebtedness.
1.2 Other Interpretive
Provisions . With reference to this Agreement and each other
Credit Document, unless otherwise specified herein or in such other
Credit Document:
(a) The meanings of defined
terms are equally applicable to the singular and plural forms of
the defined terms.
(b) The words “
herein ”, “ hereto ”, “
hereof ” and “ hereunder ” and
words of similar import when used in any Credit Document shall
refer to such Credit Document as a whole and not to any particular
provision thereof.
(c) Section, Exhibit and
Schedule references are to the Credit Document in which such
reference appears.
(d) The term “
including ” is by way of example and not
limitation.
(e) The term “
documents ” includes any and all instruments,
documents, agreements, certificates, notices, reports, financial
statements and other writings, however evidenced, whether in
physical or electronic form.
(f) In the computation of
periods of time from a specified date to a later specified date,
the word “ from ” means “ from and
including ”; the words “ to ” and
“ until ” each mean “ to but
excluding ”; and the word “ through
” means “ to and including ”.
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(g) Section headings
herein and in the other Credit Documents are included for
convenience of reference only and shall not affect the
interpretation of this Agreement or any other Credit
Document.
1.3 Accounting Terms .
(a) All accounting terms not specifically or completely
defined herein shall be construed in conformity with, and all
financial data (including financial ratios and other financial
calculations) required to be submitted pursuant to this Agreement
shall be prepared in conformity with GAAP, applied in a manner
consistent with that used in preparing the Historical Financial
Statements, except as otherwise specifically prescribed
herein.
(b) Notwithstanding anything
to the contrary herein, for purposes of determining compliance with
any test or covenant contained in this Agreement with respect to
any period during which any Specified Transaction occurs, the
Consolidated Total Debt to Consolidated EBITDA Ratio and the
Consolidated EBITDA to Consolidated Interest Expense Ratio shall be
calculated with respect to such period and such Specified
Transaction on a Pro Forma Basis.
1.4 Rounding . Any
financial ratios required to be maintained or complied with by the
Borrower pursuant to this Agreement (or required to be satisfied in
order for a specific action to be permitted under this Agreement)
shall be calculated by dividing the appropriate component by the
other component, carrying the result to one place more than the
number of places by which such ratio is expressed herein and
rounding the result up or down to the nearest number (with a
rounding-up if there is no nearest number).
1.5 References to
Agreements, Laws, Etc . Unless otherwise expressly provided
herein, (a) references to Organizational Documents, agreements
(including the Credit Documents) and other Contractual Obligations
shall be deemed to include all subsequent amendments, restatements,
amendment and restatements, extensions, supplements and other
modifications thereto, but only to the extent that such amendments,
restatements, amendment and restatements, extensions, supplements
and other modifications are permitted by any Credit
Document; and (b) references to any Applicable Law shall
include all statutory and regulatory provisions consolidating,
amending, replacing, supplementing or interpreting such Applicable
Law.
1.6 Times of Day .
Unless otherwise specified, all references herein to times of day
shall be references to Eastern time (daylight or standard, as
applicable).
1.7 Timing of Payment of
Performance . When the payment of any obligation or the
performance of any covenant, duty or obligation is stated to be due
or performance required on a day which is not a Business Day, the
date of such payment (other than as described in Section 2.9)
or performance shall extend to the immediately succeeding Business
Day.
1.8 Currency Equivalents
Generally . For purposes of determining compliance under
Sections 9.4, 9.5, 9.6 and 9.11 with respect to any amount
denominated in any currency other than Dollars (other than with
respect to (a) any amount derived from the
financial
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statements of the Borrower and the
Subsidiaries of the Borrower and (b) any Indebtedness), such
amount shall be deemed to equal the Dollar equivalent thereof based
on the average Exchange Rate for such other currency for the most
recent twelve-month period immediately prior to the date of
determination determined in a manner consistent with that used in
calculating Consolidated EBITDA for the related period. For
purposes of determining compliance with Sections 9.1, 9.2 and
9.5 with respect to any amount of Indebtedness in a currency other
than Dollars, compliance will be determined at the date of
incurrence thereof using the Dollar equivalent thereof at the
Exchange Rate in effect at the date of such incurrence.
SECTION 2. Amount and
Terms of Credit Facilities
2.1 Loans .
(a) Subject to and upon the terms and conditions herein set
forth, each Lender having a Term Loan Commitment severally agrees
to make a loan or loans (each, a “ Term Loan ”)
to the Borrower, which Term Loans (i) shall not exceed, for
any such Lender, the Term Loan Commitment of such Lender,
(ii) shall not exceed, in the aggregate, the Total Commitment,
(iii) shall be made on the Closing Date, (iv) may at the
option of the Borrower be incurred and maintained as, and/or
converted into, ABR Loans or Eurodollar Term Loans;
provided that all such Term Loans made by each of the
Lenders pursuant to the same Borrowing shall, unless otherwise
specifically provided herein, consist entirely of Term Loans of the
same Type and (v) may be repaid or prepaid in accordance with
the provisions hereof, but once repaid or prepaid may not be
reborrowed. On the Maturity Date, all outstanding Term Loans shall
be repaid in full. The obligations of each Lender hereunder shall
be several and not joint.
(b) Each Lender may at its
option make any Eurodollar Term Loan by causing any domestic or
foreign branch or Affiliate of such Lender to make such Loan;
provided that (i) any exercise of such option shall not
affect the obligation of the Borrower to repay such Loan and
(ii) in exercising such option, such Lender shall use its
reasonable efforts to minimize any increased costs to the Borrower
resulting therefrom (which obligation of the Lender shall not
require it to take, or refrain from taking, actions that it
determines would result in increased costs for which it will not be
compensated hereunder or that it determines would be otherwise
disadvantageous to it and in the event of such request for costs
for which compensation is provided under this Agreement, the
provisions of Section 2.10 shall apply).
2.2 Minimum Amount of Each
Borrowing; Maximum Number of Borrowings . The aggregate
principal amount of each Borrowing of Term Loans shall be in a
multiple of $1,000,000 and shall not be less than the Minimum
Borrowing Amount with respect thereto. More than one Borrowing may
be incurred on any date; provided that at no time
shall there be outstanding more than 5 Borrowings of Eurodollar
Term Loans under this Agreement.
2.3 Notice of
Borrowing . (a) The Borrower shall give the Administrative
Agent at the Administrative Agent’s Office (i) prior to
1:00 p.m. (New York time) at least three Business Days’ prior
written notice (or telephonic notice promptly confirmed in writing)
of each Borrowing of Term Loans if all or any of such Term Loans
are to be initially Eurodollar Term Loans, and (ii) prior
written notice (or telephonic notice promptly confirmed in writing)
prior to 10:00 a.m. (New York time) on the date of each Borrowing
of Term Loans if all such Term Loans are to be ABR Loans. Such
notice (a “ Notice of Borrowing ”) shall
specify
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(i) the aggregate principal amount
of the Term Loans to be made, (ii) the date of the Borrowing
(which shall be the Closing Date) and (iii) whether the Term
Loans shall consist of ABR Loans and/or Eurodollar Term Loans and,
if the Term Loans are to include Eurodollar Term Loans, the
Interest Period to be initially applicable thereto. The
Administrative Agent shall promptly give each Lender written notice
(or telephonic notice promptly confirmed in writing) of each
proposed Borrowing of Term Loans, of such Lender’s
proportionate share thereof and of the other matters covered by the
related Notice of Borrowing.
(b) Without in any way
limiting the obligation of the Borrower to confirm in writing any
notice it may give hereunder by telephone, the Administrative Agent
may act prior to receipt of written confirmation without liability
upon the basis of such telephonic notice believed by the
Administrative Agent in good faith to be from an Authorized Officer
of the Borrower. In each such case, the Borrower hereby waives the
right to dispute the Administrative Agent’s record of the
terms of any such telephonic notice.
2.4 Disbursement of
Funds . (a) No later than 2:00 p.m. (New York time) on the
date specified in each Notice of Borrowing, each Lender will make
available its pro rata portion, if any, of each Borrowing requested
to be made on such date in the manner provided below.
(b) Each Lender shall make
available all amounts it is to fund to the Borrower under any
Borrowing in immediately available funds to the Administrative
Agent at the Administrative Agent’s Office and the
Administrative Agent will make available to the Borrower, by
depositing to an account designated by the Borrower to the
Administrative Agent in writing, the aggregate of the amounts so
made available in Dollars. Unless the Administrative Agent shall
have been notified by any Lender prior to the date of any such
Borrowing that such Lender does not intend to make available to the
Administrative Agent its portion of the Borrowing or Borrowings to
be made on such date, the Administrative Agent may assume that such
Lender has made such amount available to the Administrative Agent
on such date of Borrowing, and the Administrative Agent, in
reliance upon such assumption, may (in its sole discretion and
without any obligation to do so) make available to the Borrower a
corresponding amount. If such corresponding amount is not in fact
made available to the Administrative Agent by such Lender and the
Administrative Agent has made available same to the Borrower, the
Administrative Agent shall be entitled to recover such
corresponding amount from such Lender. If such Lender does not pay
such corresponding amount forthwith upon the Administrative
Agent’s demand therefor, the Ad
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