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Exhibit
10.1
Execution
Version
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VISHAY
INTERTECHNOLOGY, INC.
FOURTH AMENDED AND
RESTATED
CREDIT
AGREEMENT
DATED AS OF JUNE
24, 2008
COMERICA
BANK, AS LEAD
ARRANGER, BOOK RUNNING MANAGER AND
ADMINISTRATIVE AGENT
BANK OF AMERICA
N.A. AS CO-SYNDICATION AGENT
JPMORGAN CHASE
BANK, N.A AS CO-SYNDICATION AGENT
HSBC BANK USA,
NATIONAL ASSOCIATION AS DOCUMENTATION AGENT
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| TABLE OF
CONTENTS |
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Page |
| 1. |
DEFINITIONS |
1 |
| |
1.1 |
|
Certain Defined Terms |
1 |
| |
1.2 |
|
Euro |
28 |
| |
| 2. |
REVOLVING
CREDIT |
30 |
| |
2.1 |
|
Commitment |
30 |
| |
2.2 |
|
Accrual of Interest and
Maturity; Evidence of Indebtedness |
31 |
| |
2.3 |
|
Requests for and Refundings and Conversions of
Advances |
32 |
| |
2.4 |
|
Disbursement of
Advances |
34 |
| |
2.5 |
|
(a) Swing Line Advances |
36 |
| |
2.6 |
|
Prime-based Interest
Payments |
44 |
| |
2.7 |
|
Eurocurrency-based Interest Payments and Quoted
Rate Interest
Payments |
44 |
| |
2.8 |
|
Interest Payments on
Conversions |
45 |
| |
2.9 |
|
Interest on Default |
45 |
| |
2.10 |
|
Optional
Prepayment |
45 |
| |
2.11 |
|
Determination, Denomination and Redenomination of
Alternative |
|
| |
|
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Currency Advances |
46 |
| |
2.12 |
|
Prime-based Advance in Absence
of Election or Upon Default |
47 |
| |
2.13 |
|
Revolving Credit Facility
Fee |
47 |
| |
2.14 |
|
Currency Appreciation;
Mandatory Reduction of Indebtedness |
47 |
| |
2.15 |
|
Optional Reduction or Termination of Revolving
Credit Aggregate Commitment |
49 |
| |
2.16 |
|
Extensions of Revolving Credit
Maturity Date |
50 |
| |
2.17 |
|
Revolving Credit Optional
Increase |
52 |
| |
2.18 |
|
Application of Revolving Credit
Advances |
54 |
| |
2.19 |
|
Additional Mandatory
Prepayments |
54 |
| |
| 3. |
LETTERS OF
CREDIT |
55 |
| |
3.1 |
|
Letters of Credit |
55 |
| |
3.2 |
|
Conditions to
Issuance |
55 |
| |
3.3 |
|
Notice |
57 |
| |
3.4 |
|
Letter of Credit
Fees |
57 |
| |
3.5 |
|
Other Fees |
59 |
| |
3.6 |
|
Drawings and Demands for
Payment Under Letters of Credit |
59 |
| |
3.7 |
|
Obligations Irrevocable |
61 |
| |
3.8 |
|
Risk Under Letters of
Credit |
62 |
| |
3.9 |
|
Indemnification |
63 |
| |
3.10 |
|
Right of
Reimbursement |
64 |
| |
3.11 |
|
Existing Letters of
Credit |
65 |
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| 4. |
TERM
LOAN |
65 |
| |
4.1 |
|
Term Loan |
65 |
i
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4.2 |
|
Accrual of Interest and
Maturity; Evidence of Indebtedness |
65 |
| |
4.3 |
|
Repayment of Principal |
66 |
| |
4.4 |
|
Requests for Term Loan
Advances; Refundings and Conversions of |
|
| |
|
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Advances of Term
Loan |
67 |
| |
4.6 |
|
Prime-based Advance in Absence of Election or Upon
Default |
71 |
| |
4.7 |
|
Interest Payments; Default
Interest |
71 |
| |
4.8 |
|
Optional Prepayment of Term
Loan |
72 |
| |
4.9 |
|
Mandatory Prepayment of Term
Loan |
73 |
| |
4.10 |
|
Use of Proceeds |
74 |
| |
| 4A. |
MARGIN
ADJUSTMENTS |
74 |
| |
4A.1 |
|
Margin Adjustments |
74 |
| |
4A.2 |
|
Margins |
75 |
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| 5. |
CONDITIONS |
75 |
| |
5.1 |
|
Execution of this Agreement and the other Loan
Documents |
75 |
| |
5.2 |
|
Corporate
Authority |
76 |
| |
5.3 |
|
Collateral Documents and
Guaranties |
76 |
| |
5.4 |
|
Representations and Warranties
— All Parties |
76 |
| |
5.5 |
|
Compliance with Certain Documents and
Agreements |
76 |
| |
5.6 |
|
Opinion of
Counsel |
76 |
| |
5.7 |
|
Certificates |
77 |
| |
5.8 |
|
Payment of
Fees |
77 |
| |
5.9 |
|
Other Documents and
Instruments |
77 |
| |
5.10 |
|
Continuing
Conditions |
77 |
| |
| 6. |
REPRESENTATIONS AND
WARRANTIES |
77 |
| |
6.1 |
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Corporate Existence |
77 |
| |
6.2 |
|
Due Authorization
— Company |
78 |
| |
6.3 |
|
Due Authorization — Significant
Subsidiaries |
78 |
| |
6.4 |
|
Title to Material
Property |
78 |
| |
6.5 |
|
Encumbrances |
78 |
| |
6.6 |
|
Subsidiaries |
78 |
| |
6.7 |
|
Taxes |
79 |
| |
6.8 |
|
No
Defaults |
79 |
| |
6.9 |
|
Compliance with Laws |
79 |
| |
6.10 |
|
Enforceability of Agreement and
Loan Documents |
79 |
| |
6.11 |
|
Non-contravention —
Company |
80 |
| |
6.12 |
|
Non-contravention — Other
Parties |
80 |
| |
6.13 |
|
No Litigation —
Company |
80 |
| |
6.14 |
|
No Litigation — Other
Parties |
80 |
| |
6.15 |
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Consents, Approvals and Filings,
Etc. |
81 |
| |
6.16 |
|
Agreements Affecting Financial
Condition |
81 |
| |
6.17 |
|
No Investment Company; No Margin
Stock |
81 |
| |
6.18 |
|
ERISA |
82 |
| |
6.19 |
|
Environmental Matters and Safety
Matters |
82 |
| |
6.20 |
|
Accuracy of
Information |
83 |
i i
| 7. |
AFFIRMATIVE
COVENANTS |
84 |
| |
7.1 |
|
Preservation of Existence,
Etc. |
84 |
| |
7.2 |
|
Keeping of
Books |
84 |
| |
7.3 |
|
Reporting Requirements |
84 |
| |
7.4 |
|
Tangible Net
Worth |
85 |
| |
7.5 |
|
Leverage Ratio |
85 |
| |
7.6 |
|
Fixed Charge Coverage
Ratio |
86 |
| |
7.7 |
|
Inspections |
86 |
| |
7.8 |
|
Taxes |
86 |
| |
7.9 |
|
Further Assurances and
Information |
86 |
| |
7.10 |
|
Insurance |
86 |
| |
7.11 |
|
Indemnification |
87 |
| |
7.12 |
|
Governmental and Other
Approvals |
87 |
| |
7.13 |
|
Compliance with Contractual Obligations and
Laws |
87 |
| |
7.14 |
|
ERISA |
88 |
| |
7.15 |
|
Environmental Matters |
88 |
| |
7.16 |
|
Significant
Subsidiaries |
89 |
| |
7.17 |
|
Security and Defense of
Collateral |
92 |
| |
7.18 |
|
Vishay
Israel |
93 |
| |
7.19 |
|
Use of Proceeds |
93 |
| |
| 8. |
NEGATIVE
COVENANTS |
93 |
| |
8.1 |
|
Capital Structure, Business Objects or
Purpose |
93 |
| |
8.2 |
|
Limitations on Fundamental
Changes |
94 |
| |
8.3 |
|
Guaranties |
95 |
| |
8.4 |
|
Debt |
95 |
| |
8.5 |
|
Liens |
97 |
| |
8.6 |
|
Dividends |
98 |
| |
8.7 |
|
Investments |
98 |
| |
8.8 |
|
Accounts
Receivable |
100 |
| |
8.9 |
|
Transactions with
Affiliates |
100 |
| |
8.10 |
|
Intentionally
Omitted |
101 |
| |
8.11 |
|
Prohibition Against Certain
Restrictions |
101 |
| |
8.12 |
|
Intentionally
omitted |
101 |
| |
8.13 |
|
Amendment of Subordinated Debt and Other Debt
Documents and |
|
| |
|
|
Permitted Securitizations |
101 |
| |
8.14 |
|
Payment or Prepayment of Other
Debts |
101 |
| |
| 9. |
DEFAULTS |
102 |
| |
9.1 |
|
Events of Default |
102 |
| |
9.2 |
|
Exercise of
Remedies |
105 |
| |
9.3 |
|
Rights Cumulative |
105 |
| |
9.4 |
|
Waiver by Company and Permitted
Borrowers of Certain Laws |
105 |
| |
9.5 |
|
Waiver of Defaults |
106 |
| |
| 10. |
PAYMENTS, RECOVERIES
AND COLLECTIONS |
106 |
| |
10.1 |
|
Payment Procedure |
106 |
ii i
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10.2 |
|
Application of Proceeds of
Collateral |
108 |
| |
10.3 |
|
Pro-rata Recovery |
108 |
| |
10.4 |
|
Set
Off |
108 |
| |
| 11.
|
CHANGES IN LAW OR
CIRCUMSTANCES; INCREASED COSTS |
109 |
| |
11.1 |
|
Reimbursement of Prepayment
Costs |
109 |
| |
11.2 |
|
Eurocurrency Lending
Office |
110 |
| |
11.3 |
|
Availability of Alternative
Currency |
110 |
| |
11.4 |
|
Refunding Advances in Same
Currency |
110 |
| |
11.5 |
|
Circumstances Affecting Eurocurrency-based Rate
Availability |
110 |
| |
11.6 |
|
Laws Affecting
Eurocurrency-based Advance Availability |
111 |
| |
11.7 |
|
Increased Cost of Eurocurrency-based
Advances |
111 |
| |
11.8 |
|
Indemnity |
112 |
| |
11.9 |
|
Judgment Currency |
112 |
| |
11.10 |
|
Capital Adequacy and Other
Increased Costs |
113 |
| |
11.11 |
|
Substitution of Lenders |
113 |
| |
11.12 |
|
Right of Lenders to Fund
through Branches and Affiliates |
114 |
| |
| 12. |
AGENT |
115 |
| |
12.1 |
|
Appointment of Agent |
115 |
| |
12.2 |
|
Deposit Account with Agent or
any Lender |
115 |
| |
12.3 |
|
Exculpatory Provisions |
115 |
| |
12.4 |
|
Successor
Agent |
116 |
| |
12.5 |
|
Loans by Agent |
116 |
| |
12.6 |
|
Credit
Decisions |
116 |
| |
12.7 |
|
Intentionally Omitted |
117 |
| |
12.8 |
|
Agent’s
Fees |
117 |
| |
12.9 |
|
Nature of Agency |
117 |
| |
12.10 |
|
Authority of Agent to Enforce
This Agreement |
117 |
| |
12.11 |
|
Indemnification |
117 |
| |
12.12 |
|
Knowledge of
Default |
118 |
| |
12.13 |
|
Agent’s Authorization; Action by
Lenders |
118 |
| |
12.14 |
|
Enforcement Actions by
Agent |
119 |
| |
12.15 |
|
Collateral Matters |
119 |
| |
12.16 |
|
Syndication Agent and
Documentation Agents |
120 |
| |
12.17 |
|
No Reliance on Agent’s Customer
Identification Program |
121 |
| |
| 13. |
MISCELLANEOUS |
121 |
| |
13.1 |
|
Accounting
Principles |
121 |
| |
13.2 |
|
Consent to
Jurisdiction |
121 |
| |
13.3 |
|
Law of
Michigan |
122 |
| |
13.4 |
|
Interest |
122 |
| |
13.5 |
|
Closing Costs; Other
Costs |
122 |
| |
13.6 |
|
Notices |
123 |
| |
13.7 |
|
Further
Action |
124 |
| |
13.8 |
|
Successors and Assigns;
Assignments and Participations |
124 |
| |
13.9 |
|
Indulgence |
128 |
iv
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|
13.10 |
|
Counterparts |
128 |
|
13.11 |
|
Amendment and Waiver |
128 |
|
13.12 |
|
Taxes and Fees |
130 |
|
13.13 |
|
Confidentiality |
130 |
|
13.14 |
|
Withholding Taxes |
130 |
|
13.15 |
|
ERISA Restrictions |
131 |
|
13.16 |
|
Restatement Date |
133 |
|
13.17 |
|
Severability |
133 |
|
13.18 |
|
Table of Contents and Headings; Construction of
Certain Provisions |
133 |
|
13.19 |
|
Independence of Covenants |
133 |
|
13.20 |
|
Reliance on and Survival of Various
Provisions |
133 |
|
13.21 |
|
WAIVER OF JURY TRIAL |
133 |
|
13.22 |
|
Complete Agreement; Amendment and
Restatements |
134 |
|
13.23 |
|
Patriot Act Notice |
134 |
|
13.24 |
|
Advertisements |
134 |
|
13.25 |
|
Electronic Transmissions |
134 |
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| [Schedules and Exhibits will be provided to the Securities
and Exchange Commission, Supplementally, upon request.]
|
v
FOURTH AMENDED AND
RESTATED CREDIT AGREEMENT
THIS FOURTH AMENDED AND RESTATED CREDIT AGREEMENT
(“Agreement”) is made as of the 24
th day of June, 2008 by and among Lenders (as defined below),
Comerica Bank, as Lead Arranger, Book Running Manager and
Administrative Agent for Lenders (in its capacity as Administrative
Agent, “Agent”), JPMorgan Chase Bank, N.A. as
Co-Syndication Agent, Bank of America N.A. as Co-Syndication Agent,
HSBC Bank USA, National Association as Documentation Agent, Vishay
Intertechnology, Inc., a Delaware corporation
(“Company”) and the Permitted Borrowers (as defined
below and collectively with Company, the “Borrowers”)
from time to time signatory hereto.
RECITALS
A. The Borrowers have requested that Lenders amend
and restate that certain Third Amended and Restated Credit
Agreement dated as of April 20, 2007 (as amended the “Prior
Credit Agreement”).
B. Lenders are prepared to amend and restate the
Prior Credit Agreement and to continue to extend credit to the
Borrowers by amendment, restatement and renewal (but not in
novation) of the Prior Credit Agreement, but only upon the terms
and conditions set forth in this Agreement.
NOW THEREFORE, BORROWERS,
AGENT, AND LENDERS AGREE:
1. DEFINITIONS
1.1 Certain
Defined Terms . For the
purposes of this Agreement the following terms will have the
following meanings:
“Account Party(ies)” shall mean, with
respect to any Letter of Credit, the account party or parties
(which shall be any Borrower and/or any Significant Subsidiary
which is not a Permitted Borrower hereunder jointly and severally
with Company) as named in an application to Agent for the issuance
of such Letter of Credit.
“Advance(s)” shall mean, as the
context may indicate, a Revolving Credit Advance, a Term Loan
Advance or a Swing Line Advance (including without limitation any
readvance, refunding or conversion of such Revolving Credit
Advance, Term Loan Advance or Swing Line Advance pursuant to
Sections 2.3, 2.5(c) or 4.4 hereof) and any advance in respect of a
Letter of Credit under Section 3.6 hereof (including without
limitation the unreimbursed amount of any draws under Letters of
Credit) and shall include, as applicable, each Eurocurrency-based
Advance, Quoted Rate Advance and Prime-based Advance. For the
avoidance of doubt, Advances hereunder shall include all borrowings
under the Prior Credit Agreement and still outstanding as of the
Restatement Date.
“Affected
Lender” shall have the meaning set forth in Section 11.11
hereof.
“Affiliate” shall mean, with respect
to any Person, any other Person or group acting in concert in
respect of the first Person that, directly or indirectly, through
one or more intermediaries, controls, or is controlled by, or is
under common control with such first Person. For purposes of this
definition, “control” (including, with correlative
meanings, the terms “controlled by” and “under
common control with”), as used with respect to any Person or
group of Persons, shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of
management and policies of such Person, whether through the
ownership of voting securities or by contract or otherwise. Unless
otherwise indicated, or the context otherwise requires,
“Affiliates” as used herein shall mean Affiliates of
Company.
“Agent” shall mean Comerica Bank, a
Texas banking association, acting as administrative agent
hereunder, or any successor administrative agent appointed in
accordance with Section 12.4 hereof.
“Agent’s Correspondent” shall
mean for Advances in eurodollars, Agent’s Grand Cayman Branch
(or for the account of said branch office, at Agent’s main
office in Detroit, Michigan, United States); for Advances in other
Alternative Currencies, at such bank or banks as Agent may from
time to time designate by written notice to the Borrowers and
Lenders.
“Agent’s Fees” shall mean those
fees and expenses required to be paid by Company to Agent under
Section 12.8 hereof.
“Alternate Base Rate” shall mean, for
any day, an interest rate per annum equal to the Federal Funds
Effective Rate in effect on such day, plus one percent
(1%).
“Alternative Currency” shall mean
Japanese Yen (“¥”), British Pounds Sterling
(“Sterling”) and the Euro, and, subject to availability
and to the terms and conditions of this Agreement, such other
freely convertible foreign currencies, as requested by any of
Borrowers and acceptable to Agent and Lenders, in their reasonable
discretion.
“Applicable Fee Percentage” shall
mean, as of any date of determination thereof, the applicable
percentage used to calculate certain of the fees due and payable
hereunder, determined by reference to the appropriate columns in
the Pricing Matrix attached to this Agreement as Schedule
4.1.
“Applicable Interest Rate” shall mean
the Eurocurrency-based Rate, the Prime-based Rate or, with respect
to Swing Line Advances, the Quoted Rate, as selected by a Borrower
from time to time subject to the terms and conditions of this
Agreement.
“Applicable Margin” shall mean, as of
any date of determination thereof, the applicable interest rate
margin, determined by reference to the appropriate columns in the
Pricing Matrix attached to this Agreement as Schedule
4.1.
“Asset Sale” shall mean the sale,
transfer or other disposition by any Borrower or any of their
Subsidiaries of any asset to any Person (other than to a Borrower
or a Guarantor).
“Assignment Agreement” shall have the
meaning ascribed to such term in Section 13.8(c) hereof.
2
“Authorized Officer” shall mean the
Chairman, any Vice Chairman, President, Treasurer, CFO, or the
Corporate Controller of Company or any applicable Subsidiary, as
the case may be, or any person otherwise designated by Company or
such Subsidiary, as the case may be, as having the authority to act
for Company or such Subsidiary in the particular
instance.
“BCc Replacement Financing” shall mean
the debt in the aggregate amount of $105,000,000 issued by Company
to refinance certain mezzanine debt issued by BCcomponents Holdings
B.V., a Dutch private limited liability company.
“Borrowers”
is defined in the preamble.
“Business Day” shall mean any day on
which commercial banks are open for domestic and international
business (including dealings in foreign exchange) in Detroit,
London and New York, and if funds are to be paid or made available
in any Alternative Currency, on such day in the place where such
funds are to be paid or made available and, if the applicable
Business Day relates to the borrowing or payment of a
Eurocurrency-based Advance denominated in Euros, on which banks and
foreign exchange markets are open for business in the city where
disbursements of or payments on such Advance are to be made which
is a Trans-European Business Day.
“Capital Expenditures” shall mean,
without duplication, any amounts paid or accrued for a period in
respect of any purchase or other acquisition for value of fixed or
capital assets, net of the cash proceeds of any grant (but
exclusive of any related debt issuance or other borrowing) received
during such period by Company or any of its Subsidiaries from any
governmental authority, up to the aggregate amount of capital
additions in the relevant jurisdiction in which such grant was
received during such period; provided that, in no event shall
Capital Expenditures include amounts expended in respect of normal
repair and maintenance of plant facilities, machinery, fixtures and
other like capital assets utilized in the ordinary conduct of
business (to the extent such amounts would not be capitalized in
preparing a balance sheet determined in accordance with
GAAP).
“Collateral” shall mean all property
or rights in which a security interest, mortgage, Lien or other
encumbrance for the benefit of Lenders is or has been granted or
arises or has arisen, under or in connection with this Agreement,
the other Loan Documents, or otherwise.
“Collateral Documents” shall mean the
Pledge Agreements, and any related documents, including but not
limited to that certain Reaffirmation of Domestic Pledge
Agreements, in each case as may be amended, restated or otherwise
modified from time to time.
“Commodities Hedging Obligation(s)”
shall mean any precious metal commodity swap agreement, forward
purchase agreement, cap agreement or collar agreement, and any
other agreement or arrangement entered into for protection against
fluctuations in precious metal prices, and, except as used in the
definition of “Indebtedness,” not for speculative
purposes.
“Company” is
defined in the Preamble.
“Consolidated” or
“Consolidating” shall, when used with reference to any
financial information pertaining to (or when used as a part of any
defined term or statement pertaining to the financial condition of)
Company and its Subsidiaries mean the accounts of Company and
its
3
Subsidiaries
determined on a consolidated or consolidating basis, as the case
may be, all determined as to principles of consolidation and,
except as otherwise specifically required by the definition of such
term or by such statements, as to such accounts, in accordance with
GAAP, applied on a consistent basis and consistent with the
financial statements as at and for the fiscal year ended December
31, 2006.
“Consolidated EBITDA” shall mean the
EBITDA of Company and its Subsidiaries on a Consolidated
basis.
“Contractual Obligation” shall mean,
as to any Person, any provision of any security issued by such
Person or of any agreement, instrument or undertaking to which such
Person is a party or by which it or any of its property is
bound.
“Covenant Compliance Report” shall
mean the report to be furnished by Company to Agent, substantially
in the form attached hereto as Exhibit D, as such exhibit may be
amended or otherwise modified from time to time by the Required
Lenders, and certified by the chief financial officer of Company
pursuant to Section 7.3(c) hereof, for the purpose of monitoring
the Borrowers’ compliance herewith and to notify Lenders of
the acquisition or creation of new Subsidiaries.
“Current Dollar Equivalent” shall
mean, as of any applicable date of determination, with respect to
any Advance or Letter of Credit made, issued or carried in an
Alternative Currency, the amount of Dollars which is equivalent to
the then outstanding principal amount of such Advance or Letter of
Credit at the most favorable spot exchange rate determined by Agent
to be available to it for the sale of Dollars for such Alternative
Currency for delivery at approximately 11:00 A.M. (Detroit time)
two (2) Business Days after such date. Alternative Currency
equivalents of Advances in Dollars (to the extent used herein)
shall be determined by Agent in a manner consistent
herewith.
“Debt” shall mean, as of any
applicable date of determination, all items of indebtedness,
obligation or liability of a Person, whether matured or unmatured,
liquidated or unliquidated, direct or indirect, absolute or
contingent, joint or several, that should be classified as
liabilities on a balance sheet and/or in accompanying footnotes in
accordance with GAAP, including any contingent obligations
resulting from the sale or transfer of assets.
“Default” shall mean any event which,
with the giving of notice or the passage of time, or both, would
constitute an Event of Default.
“Dollar Amount” shall mean (i) with
respect to each Advance or Letter of Credit made, issued or carried
(or to be made, issued or carried) in Dollars, the principal amount
thereof and (ii) with respect to each Advance or Letter of Credit
made, issued or carried (or to be made or carried) in an
Alternative Currency, the amount of Dollars which is equivalent to
the principal amount of such Advance or Letter of Credit at the
most favorable spot exchange rate determined by Agent to be
available to it for the sale of Dollars for such Alternative
Currency at approximately 11:00 A.M. (Detroit time) two (2)
Business Days before such Advance or Letter of Credit is made or
issued (or to be made or issued), as such Dollar Amount may be
adjusted from time to time pursuant to Section 2.11 hereof. When
used with respect to any Alternative
4
Currency portion of
an Advance or Letter of Credit being repaid or remaining
outstanding at any time or with respect to any other sum expressed
in an Alternative Currency, “Dollar Amount” shall mean
the amount of Dollars which is equivalent to the principal amount
of such Advance or Letter of Credit, or the amount so expressed in
such Alternative Currency, at the most favorable spot exchange rate
determined by Agent to be available to it for the sale of Dollars
for such Alternative Currency at the relevant time. Alternative
Currency amounts of Advances made, carried or expressed in Dollars
(to the extent used herein) shall be determined by Agent in a
manner consistent herewith.
“Dollars” and
the sign “$” shall mean lawful money of the United
States of America.
“Domestic Advance” shall mean any
Advance other than a Eurocurrency-based Advance or any other
Advance denominated in an Alternative Currency.
“Domestic Guaranty” shall mean that
certain Third Amended and Restated Domestic Guaranty dated as of
the Restatement Date delivered to Agent covering all Indebtedness
outstanding of the Borrowers executed and delivered as of the date
hereof (or to be executed and delivered by joinder) by Company and
each of the Significant Domestic Subsidiaries, as amended, restated
or otherwise modified from time to time.
“Domestic Permitted Borrower” shall
mean any Permitted Borrower which is a Domestic
Subsidiary.
“Domestic Subsidiary” shall mean any
Subsidiary of Company incorporated or organized under the laws of
the United States of America, or any state or other political
subdivision thereof or which is considered to be a
“disregarded entity” for United States federal income
tax purposes and which is not a “controlled foreign
corporation” as defined under Section 957 of the Internal
Revenue Code, in each case provided such Subsidiary is owned by
Company or a Domestic Subsidiary of Company, and “Domestic
Subsidiaries” shall mean any or all of them.
“E-System” shall mean any electronic
system and any other internet or extranet-based site, whether such
electronic system is owned, operated or hosted by the Agent, any of
its Affiliates or any other Person, providing for access to data
protected by passcodes or other security system.
“EBITDA” shall mean, of any Person,
for any period, the Net Income of such Person for such period
adjusted (A) to include, if applicable, the Net Income of any
Person accrued during such period but prior to the date it became a
Subsidiary of Company or was merged into or consolidated with
Company (based on financial information reasonably satisfactory to
Agent), and (B) to exclude, without duplication, the following
items of income or expense to the extent that such items are
included in the calculation of such Net Income: (a) Interest
Expense, (b) any non-cash expenses and charges, (c) total income
tax expense, (d) depreciation expense, (e) the expense associated
with amortization of intangible and other assets, (f) non-cash
provisions for reserves for discontinued operations, (g) any
extraordinary, unusual or non-recurring gains or losses or charges
or credits, (h) any gain or loss associated with the sale or
write-down of assets, (i) any gain or loss from or attributable to
minority interests and (j) any gain or loss accounted for by the
equity method of accounting (except in the case of income to the
extent of the amount
5
of cash dividends or
cash distributions paid to such Person or any Subsidiary of such
Person by the entity accounted for by the equity method of
accounting).
“Effective
Date” shall mean April 20, 2007.
“Electronic Transmission” shall mean
each document, instruction, authorization, file, information and
any other communication transmitted, posted or otherwise made or
communicated by e-mail or e-fax or otherwise to or from an e-system
or other equivalent service.
“EMU” shall mean Economic and Monetary
Union as contemplated in the Treaty on European Union.
“EMU Legislation” shall mean
legislative measures of the European Council (including European
Council regulations) for the introduction of, changeover to or
operation of a single or unified European currency (whether known
as the Euro or otherwise), being in part the implementation of the
third stage of EMU.
“Environmental Auditors” shall mean,
when selected or retained by Company or Agent, as the case may be
hereunder, such counsel, engineering or testing firms or other
experienced, reputable environmental consultants reasonably
acceptable to the Required Lenders.
“Equity Interest” shall mean (i) in
the case of any corporation, all capital stock and any securities
exchangeable for or convertible into capital stock, (ii) in the
case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents of corporate
stock (however designated) in or to such association or entity,
(iii) in the case of a partnership or limited liability company,
partnership or membership interests (whether general or limited)
and (iv) any other interest or participation that confers on a
Person the right to receive a share of the profits and losses of,
or distribution of assets of, the issuing Person, and including, in
all of the foregoing cases described in clauses (i), (ii), (iii) or
(iv), any warrants, rights or other options to purchase or
otherwise acquire any of the interests described in any of the
foregoing cases.
“Equity Offering” shall mean the
issuance and sale for cash, on or after the date hereof, by Company
or any of its Subsidiaries of additional Equity
Interests.
“Equity Offering Adjustment” shall
mean that amount to be added to the minimum Tangible Net Worth
required to be maintained under Section 7.4 hereof consisting of an
amount equal to seventy-five percent (75%) of each Equity Offering
conducted by Company or any of its Subsidiaries, net of costs of
issuance, on and after December 31, 2006, on a cumulative basis;
provided, however, that in the case of each Equity Offering by a
Subsidiary, the amount of the Equity Offering Adjustment shall not
exceed 75% of the amount, if any, by which such Equity Offering
increases Tangible Net Worth.
“ERISA” shall mean the Employee
Retirement Income Security Act of 1974, as amended, or any
successor act or code, and the regulations in effect from time to
time thereunder.
6
“ERISA Affiliate” shall mean any trade
or business (whether or not incorporated) which is under common
control with Company within the meaning of Section 4001 of ERISA or
is part of a group which includes Company and would be treated as a
single employer under Section 414 of the Internal Revenue
Code.
“Euro” or “Euro Unit”
shall mean the currency unit of the Euro as defined in the EMU
Legislation.
“Eurocurrency Rate” shall mean with
respect to each Eurocurrency-based Advance carried in any
Alternative Currency (and each Eurocurrency-Interest Period
pertaining thereto) the per annum interest rate determined by Agent
(or, in case of Swing Line Advances, Swing Line Lender) to be the
offered rate for deposits in such currency with a term comparable
to such Interest Period that appears on the applicable Reuters
Screen Libor Page or the applicable British Bankers’
Association rate as reported by any generally recognized financial
information service, in each case as reported at approximately
11:00 a.m., London time, two Business Days (or, in the case of a
Eurocurrency-based Advance in Euros, on such other date as is
customary in the relevant offshore interbank market) prior to the
beginning of such Interest Period; provided, however, that if at
any time for any reason such offered rate for any such currency
does not appear on a Reuters Screen Libor Page or is not reported
by any generally recognized financial information service,
“Eurocurrency Rate” shall mean, with respect to each
such Advance denominated in such currency, the per annum interest
rate at which deposits in the relevant currency are offered to
Agent’s Eurocurrency Lending Office (or, in the case of Swing
Line Advances, Swing Line Lender’s Eurocurrency Lending
Office) by other prime banks in the relevant offshore interbank
market in an amount comparable to the relevant Eurocurrency-based
Advance and for a period equal to the relevant
Eurocurrency-Interest Period at approximately 11:00 a.m. Detroit
time two (2) Business Days prior to the first day of such
Eurocurrency-Interest Period.
“Eurocurrency-based Advance” shall
mean any Advance (including a Swing Line Advance) which bears
interest at the Eurocurrency-based Rate.
“Eurocurrency-based Rate” shall mean a
per annum interest rate which is equal to the sum of the Applicable
Margin (subject, if applicable, to adjustment under Section 4A.1
hereof), plus the quotient of:
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(A)
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(a) in the case of
Eurocurrency-based Advances carried in Dollars, the Eurodollar
Rate, or
(b) in the case of
Eurocurrency-based Advances carried in an Alternative Currency, the
Eurocurrency Rate,
divided
by
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(B)
a percentage equal to 100% minus the maximum rate on such
date at which Agent is required to maintain reserves on
‘Eurocurrency Liabilities’ as defined in and pursuant
to Regulation D of the Board of Governors of the Federal Reserve
System or, if such regulation or definition is modified, and as
long as Agent is required to maintain reserves against a category
of liabilities which
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7
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includes
eurocurrency deposits or includes a category of assets which
includes eurocurrency loans, the rate at which such reserves are
required to be maintained on such category,
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all as conclusively
determined by Agent (absent manifest error), such sum to be rounded
upward, if necessary, to the nearest whole multiple of 1/100th of
1%.
“Eurocurrency-Interest Period” shall
mean, (a) for Swing Line Advances carried at the Eurocurrency-based
Rate, an interest period of fourteen (14) days or one month (or any
lesser number of days agreed to in advance by a Borrower, Agent and
Swing Line Lender) and (b) for all other Eurocurrency-based
Advances, an interest period of one, two, three or six months (or
any lesser or greater number of days agreed to in advance by a
Borrower together with Agent and Lenders) as selected by such
Borrower, as applicable, for a Eurocurrency-based Advance pursuant
to Section 2.3 or 2.5 hereof, as the case may be.
“Eurocurrency Lending Office” shall
mean, (a) with respect to Agent, Agent’s office located at
its Grand Caymans Branch or such other branch of Agent, domestic or
foreign, as it may hereafter designate as its Eurocurrency Lending
Office by written notice to Company and Lenders and (b) as to each
of Lenders, its office, branch or affiliate located at its address
set forth on the signature pages hereof (or identified thereon as
its Eurocurrency Lending Office), or at such other office, branch
or affiliate of such Lender as it may hereafter designate as its
Eurocurrency Lending Office by written notice to Company and
Agent.
“Eurodollar Rate” shall mean with
respect to each Eurocurrency-based Advance carried in Dollars (and
each Eurocurrency-Interest Period pertaining thereto) the per annum
interest rate at which deposits in dollars are offered to
Agent’s Eurocurrency Lending Office (or, in the case of Swing
Line Advances, Swing Line Lender’s Eurocurrency Lending
Office) by other prime banks in the eurocurrency market in an
amount comparable to the relevant Eurocurrency-based Advance and
for a period equal to the relevant Eurocurrency-Interest Period at
approximately 11:00 a.m. Detroit time two (2) Business Days prior
to the first day of such Eurocurrency-Interest Period.
“Event of
Default” shall mean any of the events specified in Section
9.1 hereof.
“Existing Letter of Credit” shall mean
each letter of credit issued under the Prior Credit Agreement, if
any, which is outstanding on the Restatement Date, as set forth on
Schedule 1.4 hereto.
“Federal Funds Effective Rate” shall
mean, for any day, a fluctuating interest rate per annum equal to
the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by
Federal funds brokers, as published for such day (or, if such day
is not a Business Day, for the next preceding Business Day) by the
Federal Reserve Bank of New York, or, if such rate is not so
published for any day which is a Business Day, the average of the
quotations for such day on such transactions received by Agent from
three Federal funds brokers of recognized standing selected by
it.
“Fee Letter” shall mean the fee letter
dated May 16, 2008 between Company and Agent hereunder, as amended,
restated or otherwise modified from time to time.
8
“Fees” shall mean Agent’s Fees,
the Revolving Credit Facility Fee, the Letter of Credit Fees, and
the other fees and charges payable hereunder.
“Fixed Charge Coverage Ratio” shall
mean, with respect to Company and its Consolidated Subsidiaries, as
of any date of determination, a ratio, (i) the numerator of which
shall be equal to Consolidated EBITDA for the preceding four fiscal
quarters ending on the date of determination, minus Capital
Expenditures during such period and (ii) the denominator of which
shall be the sum of regularly scheduled principal payments and
Interest Expense of Company and its Consolidated Subsidiaries for
such period, in each case determined in accordance with
GAAP.
“Foreign Guaranty” shall mean that
certain Second Amended and Restated Foreign Guaranty dated August
31, 2007 covering all Indebtedness of the Foreign Permitted
Borrowers hereunder (but expressly excluding any Hedging
Obligations) executed and delivered whether by joinder or otherwise
(or to be executed and delivered by joinder) by the Significant
Foreign Subsidiaries, together with any other guaranty executed and
delivered by a Significant Foreign Subsidiary, in each case as
amended, restated or otherwise modified from time to
time.
“Foreign Permitted Borrower” shall
mean any Permitted Borrower hereunder which is a Foreign Subsidiary
of Company.
“Foreign Subsidiary” shall mean any of
Company’s Subsidiaries, other than a Domestic Subsidiary; and
“Foreign Subsidiaries” shall mean any or all of
them.
“GAAP” shall mean generally accepted
accounting principles in the United States of America, as in effect
from time to time, consistently applied.
“Governmental Obligations” means
noncallable direct general obligations of the United States of
America or obligations the payment of principal of and interest on
which is unconditionally guaranteed by the United States of
America.
“Granting Lender” shall mean a Lender
which elects to grant to an SPFV the option to fund all or any part
of any Advance that such Lender would otherwise be obligated to
fund pursuant to this Agreement, in each case in accordance with
Section 13.8(c) hereof; provided, however, that notwithstanding the
funding by an SPFV of an Advance (or a portion thereof) hereunder,
the Granting Lender shall retain all of its rights and obligations
under this Agreement with respect to such Advance or
otherwise.
“Guarantee Obligation” shall mean as
to any Person (the “guaranteeing person”) any
obligation of the guaranteeing person in respect of any obligation
of another Person (including, without limitation, any bank under
any letter of credit), the creation of which was induced by a
reimbursement agreement, guaranty agreement, keepwell agreement,
purchase agreement, or similar obligation issued by the
guaranteeing person, in either case guaranteeing or in effect
guaranteeing any Debt, leases, dividends or other obligations (the
“primary obligations”) of any other third Person (the
“primary obligor”) in any manner, whether directly or
indirectly, including, without limitation, any obligation of the
guaranteeing person, whether or not contingent, (i) to purchase any
such primary obligation or any property constituting direct or
indirect security therefor, (ii) to advance or supply funds (1) for
the purchase or payment of any
9
such primary
obligation or (2) to maintain working capital or equity capital of
the primary obligor or otherwise to maintain the net worth or
solvency of the primary obligor, (iii) to purchase property,
securities or services primarily for the purpose of assuring the
owner of any such primary obligation of the ability of the primary
obligor to make payment of such primary obligation or (iv)
otherwise to assure or hold harmless the owner of any such primary
obligation against loss in respect thereof; provided, however, that
the term Guarantee Obligation shall not include endorsements of
instruments for deposit or collection in the ordinary course of
business. The amount of any Guarantee Obligation of any
guaranteeing person shall be deemed to be the lower of (a) an
amount equal to the stated or determinable amount of the primary
obligation in respect of which such Guarantee Obligation is made
and (b) the maximum amount for which such guaranteeing person may
be liable pursuant to the terms of the instrument embodying such
Guarantee Obligation, unless such primary obligation and the
maximum amount for which such guaranteeing person may be liable are
not stated or determinable, in which case the amount of such
Guarantee Obligation shall be such guaranteeing person’s
maximum reasonably anticipated liability in respect thereof as
determined by Company or Subsidiary, as applicable, in good
faith.
“Guaranties” shall mean the Domestic
Guaranty and the Foreign Guaranty, and any other guaranty entered
into in relation to the Indebtedness or any portion thereof,
whether by joinder or otherwise, in each case as the same may be
amended, restated or otherwise modified from time to time, and
“Guaranty” shall mean any or all of them.
“Guarantor(s)” shall mean each Person
which shall have executed and delivered a Guaranty or a Joinder
Agreement thereto.
“Hazardous Material” shall mean and
include any hazardous, toxic or dangerous waste, substance or
material defined as such in (or for purposes of) the Hazardous
Material Laws.
“Hazardous Material Law(s)” shall mean
all laws, codes, ordinances, rules, regulations, orders, decrees
and directives issued by any federal, state, provincial, local,
foreign or other governmental or quasi-governmental authority or
body (or any agency, instrumentality or political subdivision
thereof) pertaining to Hazardous Material on or about any
facilities owned, leased or operated by Company or any of its
Subsidiaries, or any portion thereof including, without limitation,
those relating to soil, surface, subsurface ground water conditions
and the condition of the ambient air; and any state and local laws
and regulations pertaining to Hazardous Material and/or asbestos;
any so-called “superfund” or “superlien”
law; and any other federal, state, provincial, foreign or local
statute, law, ordinance, code, rule, regulation, order or decree
regulating, relating to, or imposing liability or standards of
conduct concerning, any hazardous, toxic or dangerous waste,
substance or material, as now or at any time prior to the payment
in full of all Indebtedness and the termination in full of any
obligations of the Lenders to extend Advances hereunder.
“Hedging Obligation(s)” shall mean
Interest Rate Protection Agreements and any foreign currency
exchange agreements (including without limitation foreign currency
hedges and swaps) or other foreign exchange transactions, or any
combination of such transactions or agreements or any option with
respect to any such transactions or agreements entered into between
Company and/or any of its Subsidiaries and a Lender or an Affiliate
of a Lender to manage existing or anticipated foreign exchange risk
and not for speculative purposes, provided, that, for
purposes
10
of the Collateral
Documents and the Foreign Guaranty, “Hedging
Obligations” shall also include the Commodities Hedging
Obligations to the extent such Commodities Hedging Obligations are
“Indebtedness” as defined in this Agreement.
“Hereof”, “hereto”,
“hereunder” and similar terms shall refer to this
Agreement in its entirety and not to any particular paragraph or
provision of this Agreement.
“Indebtedness” shall mean (a) all
indebtedness and liabilities including without limitation
principal, interest (including without limitation interest accruing
at the then-applicable rate provided in this Agreement or any other
applicable Loan Document after an applicable maturity date and
interest accruing at the then-applicable rate provided in this
Agreement or any other applicable Loan Document after the filing of
any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding relating to the Company and/or
any of its Subsidiaries, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding), fees,
expenses and other charges arising under this Agreement or any of
the other Loan Documents, whether direct or indirect, absolute or
contingent, owing by any of the Borrowers to Lenders (or any of
them) or to Agent, in any manner and at any time, under this
Agreement or the Loan Documents, due or hereafter to become due,
now owing or that may hereafter be incurred by any of the Borrowers
or any of the Subsidiaries to, or acquired by, Lenders (or any of
them) or by Agent, (b) any Special Letters of Credit, (c) net
obligations with respect to (i) Hedging Obligations and (ii)
Commodities Hedging Obligations, provided that (x) the
maximum aggregate amount which shall be available from proceeds of
the Collateral under the Collateral Documents or from any other
sums collected from the Borrowers or any of Company’s
Subsidiaries pursuant to the Loan Documents (excluding the Loan
Documents specifically governing the Commodities Hedging
Obligations) for application against Commodities Hedging
Obligations shall not exceed $10,000,000 (with the application of
such proceeds to be made by Agent on a basis consistent with
Section 10.2 hereof, such application to be made on a pro rata
basis among the eligible hedging providers under those Commodities
Hedging Obligations designated by Company pursuant to clause (y) of
this definition, but otherwise in Agent’s sole discretion),
(y) the documentation relating to such Commodities Hedging
Obligations, including a letter agreement between the hedging
provider and Company or applicable Subsidiary covering multiple
commodities hedging transactions (I) specifies that such
obligations have been designated by Company as (and, subject to the
terms hereof, shall constitute) “Indebtedness”
hereunder and (II) contains an express acknowledgment by the
eligible hedging provider (satisfactory in form and substance to
Agent) of the limitation imposed on all Commodities Hedging
Obligations under clause (x) of this definition, and (z) copies of
such documentation shall have been provided to Agent promptly
following the execution thereof, accompanied by an updated list of
all such documents having been so designated by Company (which
Agent is hereby authorized to furnish to any hedging provider
requesting such documentation), provided further that both the
Commodities Hedging Obligations and the Hedging Obligations are
entered into between Company and/or any of its Subsidiaries and a
Lender or an Affiliate of a Lender, (d) any judgments that may
hereafter be rendered on such indebtedness or any part thereof,
with interest according to the rates and terms specified, or as
provided by law, (e) solely to the extent this term is used in any
Pledge Agreement, Guaranty or other document guarantying or
pledging Collateral in support of the obligations of any of the
Borrowers hereunder and as “Indebtedness” is used in
Section 10.2 hereof, any liabilities to Agent or any Lender arising
in connection with any Lender Products, and (f) any and
all
11
consolidations,
amendments, renewals, replacements or extensions of any of the
foregoing. For the purposes of Section 9.2(b),
“Indebtedness” shall exclude any Hedging Obligations or
Commodities Hedging Obligations.
“Intercompany Loan” shall mean any
loan (or advance in the nature of a loan) by Company or any
Subsidiary of Company to Company or any Subsidiary of
Company.
“Intercompany Loans, Advances or
Investments” shall mean any Intercompany Loan, any advance,
any Investment (including, without limitation, any Guaranty
Obligations of any indebtedness or lease obligations of Company or
any Subsidiary to a third party) made by Company or any Subsidiary
to, in or for the benefit of, as applicable, Company or any
Subsidiary.
“Intercompany Notes” shall mean the
promissory notes issued or to be issued by any Subsidiary to
Company or to any Significant Domestic Subsidiary to evidence an
Intercompany Loan, substantially in the form attached hereto as
Exhibit I.
“Interest Expense” shall mean, for any
Person and with respect to any period, the sum of the amount of
interest paid or accrued in respect of such period, determined in
accordance with GAAP.
“Interest Period” shall mean (a) with
respect to a Eurocurrency-based Advance, a Eurocurrency-Interest
Period commencing on the day a Eurocurrency-based Advance is made,
or on the effective date of an election of the Eurocurrency-based
Rate made under Section 2.3 hereof, as the case may be, and (b)
with respect to a Swing Line Advance carried at the Quoted Rate, an
interest period of one month (or any lesser number of days agreed
to in advance by any Borrower, Agent and Swing Line Lender);
provided, however that (i) any Interest Period which would
otherwise end on a day which is not a Business Day shall end on the
next succeeding Business Day, except that as to a
Eurocurrency-Interest Period, if the next succeeding Business Day
falls in another calendar month, such Eurocurrency-Interest Period
shall end on the next preceding Business Day, and (ii) when a
Eurocurrency-Interest Period begins on a day which has no
numerically corresponding day in the calendar month during which
such Eurocurrency-Interest Period is to end, it shall end on the
last Business Day of such calendar month, and (iii) no Interest
Period in respect of any Advance shall extend beyond the Revolving
Credit Maturity Date or the Term Loan Maturity Date, as
applicable.
“Interest Rate Protection
Agreement(s)” shall mean any interest rate, swap, cap, floor,
collar, forward rate agreement or other rate protection
transaction, or any combination of such transactions or agreements
or any option with respect to any such transactions or agreements
now existing or hereafter entered into by Company or any of its
Subsidiaries to manage existing or anticipated interest rate risk
and not for speculative purposes.
“Internal Revenue Code” shall mean the
Internal Revenue Code of 1986, as amended from time to time, and
the regulations promulgated thereunder.
“Investment” shall mean any
investment, loan or advance by Company or any of its Subsidiaries
to, or any other loan, advance or investment (including without
limitation any Guarantee Obligation) by Company or any of its
Subsidiaries in, to or for the benefit of any
12
Person (including
without limitation, Company or any Subsidiary), without offset,
reduction or other adjustment, whether such loan, advance or
investment shall be in the nature of an investment in Equity
Interests, evidences of indebtedness, Guarantee Obligations or
otherwise.
“Israeli Subsidiary(ies)” shall mean
any Subsidiary of the Company (including Vishay Israel), whether
direct or indirect, incorporated under the laws of
Israel.
“Issuing
Lender” shall mean Comerica Bank, or any successor
thereto.
“Issuing Office” shall mean
Agent’s office located at One Detroit Center, 500 Woodward
Avenue, Detroit, Michigan 48275 or such other office as Agent shall
designate in writing as its Issuing Office.
“Joinder Agreement” shall mean a
joinder agreement in the form attached as Exhibit A to the form of
the Domestic Guaranty or to the form of the Foreign Guaranty, to be
executed and delivered by any Person required to be a Guarantor
pursuant to Section 7.16 of this Agreement.
“Joint Venture” shall mean any
corporation, partnership, association, joint stock company, limited
liability company, partnership, business trust or other combined
enterprise, other than a Subsidiary, in which (or to which) Company
or any of its Subsidiaries has made a loan, investment or advance
or has an ownership stake or interest, whether in the nature of
Share Capital or otherwise (but expressly excluding Permitted
Investments) to fund a business enterprise.
“Lender(s)” shall mean each of the
Lenders signatory to this Agreement and any assignee which becomes
a Lender pursuant to Section 13.8(c) hereof, and shall include, as
applicable, Swing Line Lender.
“Lender Products” shall mean any one
or more of the following types of services or facilities extended
to Company or any of its Subsidiaries by any Lender: (i) credit
cards, (ii) credit card processing services, (iii) debit cards,
(iv) purchase cards, (v) Automated Clearing House (ACH)
transactions, (vi) cash management, including controlled
disbursement services, and (vii) establishing and maintaining
deposit accounts.
“Letter(s) of Credit” shall mean any
standby letters of credit issued by Agent at the request of or for
the account of an Account Party or Account Parties pursuant to
Article 3 hereof, including, without limitation, any Existing
Letters of Credit.
“Letter of Credit Agreement” shall
mean, in respect of each Letter of Credit, the application and
related documentation satisfactory to Agent of an Account Party or
Account Parties requesting Agent to issue such Letter of Credit, as
amended from time to time.
“Letter of Credit Fees” shall mean the
fees payable to Agent for the accounts of Lenders in connection
with Letters of Credit pursuant to Section 3.4 hereof.
“Letter of Credit Maximum Amount”
shall mean, as of any date of determination, the lesser of: (a)
Seventy Five Million Dollars ($75,000,000) and (b) the Revolving
Credit Aggregate Commitment as of such date, minus the aggregate
principal amount of Advances
13
outstanding as of
such date under the Revolving Credit and under the Swing Line,
minus, in each case the Letter of Credit Reserve in effect on such
date.
“Letter of Credit Obligations” shall
mean at any date of determination, the sum of (a) the aggregate
undrawn amount of all Letters of Credit then outstanding, and (b)
the aggregate amount of Reimbursement Obligations which remain
unpaid as of such date.
“Letter of Credit Payment” shall mean
any amount paid or required to be paid by Agent in its capacity
hereunder as issuer of a Letter of Credit as a result of a draft or
other demand for payment under any Letter of Credit.
“Letter of Credit Reserve” shall mean
Five Million Dollars ($5,000,000), as decreased by Company with
Agent’s approval.
“Leverage Ratio” shall mean, as of any
date of determination, with respect to Company and its Consolidated
Subsidiaries, the ratio of (a) Total Debt as of such date to (b)
Consolidated EBITDA for the four consecutive fiscal quarters then
ending.
“Lien” shall mean any pledge,
assignment, hypothecation, mortgage, security interest, deposit
arrangement, option, trust receipt, conditional sale or title
retaining contract, sale and leaseback transaction, or any other
type of Lien, charge or encumbrance, whether based on common law,
statute or contract.
“Loan Documents” shall mean
collectively, this Agreement, the Letter of Credit Agreements, the
Guaranties, the Collateral Documents, agreements relating to
Hedging Obligations entered into between Company and/or any of its
Subsidiaries and a Lender or an Affiliate of a Lender, agreements
relating to Commodities Hedging Obligations (to the extent such
Commodities Hedging Obligations are “Indebtedness” as
defined in this Agreement), and any other documents, instruments or
agreements executed pursuant to or in connection with any such
document, the Indebtedness or this Agreement as such documents may
be amended or otherwise modified from time to time. For the
purposes of Section 13.11, “Loan Documents” shall
exclude any Hedging Obligations and Commodities Hedging
Obligations.
“Moody’s” means Moody’s
Investors Service, Inc., its successors and assigns, and, if such
organization shall be dissolved or liquidated or shall no longer
perform the functions of a securities rating agency,
“Moody’s” shall be deemed to refer to any other
nationally recognized securities rating agency designated by
Agent.
“Multiemployer Plan” shall mean any
multiemployer plan within the meaning of Section 4001(a)(3) of
ERISA.
“National Currency Unit” shall mean a
fraction or multiple of one Euro Unit expressed in units of the
former national currency of a Participating Member
State.
“Net Cash Proceeds” shall mean the
aggregate cash payments received by any Borrower or any of their
respective Subsidiaries from any Asset Sale, the issuance of Equity
Interests or the issuance of Subordinated Debt, as the case may be,
net of the ordinary and customary direct costs incurred in
connection with such sale or issuance, as the case may be, such as
legal,
14
accounting and
investment banking fees, sales commissions, and other third party
charges, and net of property taxes, transfer taxes and any other
taxes paid or payable by such Person in respect of any sale or
issuance.
“Net Income” shall mean the net income
(or loss) of a Person for any period determined in accordance with
GAAP.
“Net Income Adjustment” shall mean
that amount to be added to the minimum Tangible Net Worth required
to be maintained under Section 7.4 hereof consisting of fifty
percent (50%) of Company’s Consolidated Net Income for each
of Company’s fiscal quarters ending on or after March 31,
2007 (in each case, only if a positive number), on a cumulative
basis.
“New Convertible Subordinated Debt”
means that certain new convertible subordinated Debt of Company in
the amount of up to $500,000,000 issued by Company under an
Indenture dated as of August 6, 2003 between Company and Wachovia
Bank, National Association, as Trustee on substantially the terms
and conditions contained in Company’s Offering Memorandum
relating to such debt dated July 31, 2003.
“Notes” shall mean the Revolving
Credit Notes, the Swing Line Notes and the Term Loan
Notes.
“Participating Member State” shall
mean such country so described in any EMU Legislation.
“PBGC” shall mean the Pension Benefit
Guaranty Corporation under ERISA, or any successor
corporation.
“Pension Plan” shall mean each
employee pension benefit plan, as defined in Section 3(2) of ERISA,
of Company or an ERISA Affiliate but only to the extent such
Pension Plan is subject to ERISA, as provided in Section 4 of
ERISA, and is subject to Section 412 of the Internal Revenue Code
and Section 302 of ERISA other than a Multiemployer
Plan.
“Percentage” shall mean, as
applicable, the Revolving Credit Percentage, the Term Loan
Percentage or the Weighted Percentage.
“Permitted Acquisition” shall mean any
acquisition by Company or any of its Subsidiaries of assets,
businesses or business interests or Equity Interests in any Person
(whether such acquisition is consummated by purchase or merger,
provided that the Company or the applicable Subsidiary is the
survivor of such merger), conducted while no Default or Event of
Default has occurred and is continuing hereunder (both before and
after giving effect thereto) in accordance with the following
requirements:
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(a)
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Such acquisition is
of a business or Person primarily engaged in a line of business in
which Company or any Subsidiary is permitted to engage under
Section 8.1(b) hereof;
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15
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(b)
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The board of directors (or other Person(s) exercising similar
functions) of the seller of the assets or issuer of the Equity
Interests being acquired shall have approved such transaction or
recommended that such transaction be approved; |
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(c) |
in the event that the value of such proposed new acquisition,
computed on the basis of total acquisition consideration paid or
incurred, or to be paid or incurred, by Company or its Subsidiaries
with respect thereto, including all indebtedness which is assumed
or to which such assets, businesses or business or ownership
interests or shares, or any Person so acquired, is subject, but
excluding the value of any common shares of the Company transferred
as a part of such acquisition, shall be |
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(i)
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greater
than or equal to Fifty Million Dollars ($50,000,000), determined as
of the date of such acquisition, then not less than fifteen (15)
nor more than ninety (90) days prior to the date each such proposed
acquisition is scheduled to be consummated, Company provides
written notice thereof to Agent, accompanied by (A) the term sheet,
purchase agreement and, when available, drafts of all material
documents pertaining to such proposed acquisition, (B) historical
financial information (including, but not limited to, income
statements, balance sheets and cash flows) covering either the
three most recent complete fiscal years of the acquisition target
prior to the effective date of the acquisition or the entire credit
history of the acquisition target, whichever period is shorter, and
the quarterly financial statements of the acquisition target for
the most recent eight consecutive fiscal quarters (provided however
that, if the financial information referred to in this subparagraph
(B) is not available, Company shall furnish Agent with financial
information otherwise reasonably satisfactory to the Required
Lenders) and (C) Pro Forma Projected Financial Information,
or |
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(ii) |
less than
Fifty Million Dollars ($50,000,000) but greater than or equal to
Ten Million Dollars ($10,000,000), then not less than ten (10)
Business Days after date each such proposed acquisition has been
consummated, Company provides written notice thereof to Agent (with
certified copies of all material documents pertaining to such
acquisition); |
whereupon Agent
shall promptly upon its receipt thereof distribute copies of all
notices and other materials received from Company under this clause
(c) to each Lender; and
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(d)
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within
thirty (30) days after any such acquisition has been completed,
Company, its Subsidiaries and any of the other business entities
involved in such acquisition shall execute or cause to be executed,
and provide or cause to be provided to Agent, any Loan Documents
required under Section 7.16 hereof. |
“Permitted Borrower Addendum” shall
mean an addendum substantially in the form attached hereto as
Exhibit H, to be executed and delivered by each Permitted Borrower
which
16
becomes a party to
this Agreement after the date hereof, as such Exhibit may be
amended from time to time.
“Permitted Borrower Sublimit” shall
mean the maximum aggregate amount of Advances and Letters of Credit
(including Letter of Credit Obligations) available at any time to
each of the Permitted Borrowers hereunder, as set forth on Schedule
1.6 hereof.
“Permitted Borrower(s)” shall mean
Vishay Europe, Vishay Electronic, Vishay Asia, Siliconix, Siliconix
Technology and Vishay India (subject, in each case, to prior
compliance in full with the requirements of Section 2.1 hereof and
in the case of Vishay India, with appropriate changes in local law
and regulation which would make the extension of credit to Vishay
India on the terms set forth herein compliant with such local law
and regulation), and any Wholly Owned Subsidiary of Company which,
after the Restatement Date and with the prior written approval of
Lenders, becomes a party hereto pursuant to the requirements of
Section 2.1 hereof.
“Permitted
Currencies” shall mean Dollars or any Alternative
Currency.
“Permitted
Liens” shall mean, with respect to any Person:
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(a) |
Liens for taxes not
yet due and payable or which are being contested in good faith by
appropriate proceedings diligently pursued, provided that such
provision for the payment of all such taxes known to such Person
has been made on the books of such Person as may be required by
GAAP; |
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(b) |
mechanics’,
materialmen’s, bankers’, carriers’,
warehousemen’s, and similar Liens and encumbrances arising in
the ordinary course of business and securing obligations of such
Person that are not overdue for a period of more than 60 days or
are being contested in good faith by appropriate proceedings
diligently pursued, provided that in the case of any such contest
(i) any proceedings commenced for the enforcement of such Liens and
encumbrances shall have been duly suspended; and (ii) such
provision for the payment of such Liens and encumbrances has been
made on the books of such Person as may be required by
GAAP; |
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(c) |
Liens arising in
connection with worker’s compensation, unemployment
insurance, old age pensions (subject to the applicable provisions
of this Agreement) and social security benefits which are not
overdue or are being contested in good faith by appropriate
proceedings diligently pursued, provided that in the case of any
such contest (i) any proceedings commenced for the enforcement of
such Liens shall have been duly suspended; and (ii) such provision
for the payment of such Liens has been made on the books of such
Person as may be required by GAAP; |
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(d) |
(i) Liens incurred in
the ordinary course of business to secure the performance of
statutory obligations arising in connection with progress payments
or advance payments due under contracts with the United States or
any foreign government or any agency thereof entered into in the
ordinary course of business and (ii) Liens incurred or deposits
made in the ordinary course of business to secure the |
17
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performance of
statutory obligations (including obligations to customs
authorities), bids, leases, fee and expense arrangements with
trustees and fiscal agents and other similar obligations (exclusive
of obligations incurred in connection with the borrowing of money,
any lease-purchase arrangements or the payment of the deferred
purchase price of property), provided that full provision for the
payment of all such obligations set forth in clauses (i) and (ii)
has been made on the books of such Person as may be required by
GAAP; and |
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(e) |
any minor
imperfections of title, including but not limited to easements,
covenants, rights-of-way or other similar restrictions, which,
either individually or in the aggregate do not materially adversely
affect the present or future use of the property to which they
relate, which would have a material adverse effect on the sale or
lease of such property, or which would render title thereto
unmarketable. |
“Permitted
Investments” shall mean:
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(a) |
Governmental
Obligations; |
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(b) |
Obligations of a state
of the United States, the District of Columbia or any possession of
the United States, or any political subdivision thereof, which are
described in Section 103(a) of the Internal Revenue Code and are
rated in any of the highest 3 major rating categories as determined
by at least one nationally recognized Rating Agency; or secured, as
to payments of principal and interest, by a letter of credit
provided by a financial institution or insurance provided by a bond
insurance company which itself or its debt is rated in the highest
3 major rating categories as determined by at least one Rating
Agency; |
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(c) |
Banker’s
acceptances, commercial accounts, certificates of deposit, or
depository receipts issued by a bank, trust company, savings and
loan association, savings bank or other financial institution whose
deposits are insured by the Federal Deposit Insurance Corporation
and whose reported capital and surplus equal at least
$500,000,000; |
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(d) |
commercial paper with
a minimum rating of “A-1” (or better) by S&P or
“P-1” (or better) by Moody’s, full faith and
credit direct obligations of the United States of America or, with
respect to the Foreign Subsidiaries, of the central government of
the applicable jurisdiction, or any agency thereof, certificates of
deposit, and other short term investments (each of a duration of
one year or less), maintained by Company or any of its Subsidiaries
consistent with the present investment practices of such parties
(as classified in the current financial statements of such
parties); |
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(e)
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Secured repurchase
agreements against obligations itemized in paragraph (a) above, and
executed by a bank or trust company or by members of the
association of primary dealers or other recognized dealers in
United States government securities, the market value of which must
be maintained at levels at least equal to the amounts advanced and
repurchase agreements entered into with counterparties |
18
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having ratings in
either of the highest two rating categories by Moody’s or
S&P, or the highest rating category by Fitch Investor Services,
Duff & Phelps or Thompson Bank Watch and providing for
underlying securities to be held by a third party; |
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(f) |
Any fund or other
pooling arrangement which exclusively purchases and holds the
investments itemized in (a) through (e) above; and |
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(g)
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other short term
investments (excluding investments in Subsidiaries, Affiliates or
Joint Ventures) made or maintained by any Foreign Subsidiary
outside of the United States of America in the ordinary course of
its business, consistent with the present investment practices of
Company and its Subsidiaries as of the date hereof (generally, and
as to the individual and aggregate amounts and other terms
thereof). |
“Permitted Securitization” shall mean
the transfer or encumbrance of certain foreign accounts receivable
by any of the Foreign Subsidiaries to a Special Purpose Subsidiary
conducted in accordance with the following requirements:
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(a)
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The disposition of
foreign accounts receivable will not result in the aggregate
principal amount of Debt at any time issued and outstanding in
respect of Permitted Securitizations being in excess of Two Hundred
Million Dollars ($200,000,000) in aggregate while the Indebtedness
remains outstanding; |
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(b) |
The Foreign Subsidiary
disposing of foreign accounts receivable to a Special Purpose
Subsidiary pursuant to such Permitted Securitization shall itself
actually receive (substantially contemporaneously with such
disposition) cash in connection with any such Securitization
Transaction in an amount based on normal and customary advance
rates (and taking into account typical deductions for market-based,
arms-length Securitization Transactions); |
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(c) |
Each such disposition
shall be without recourse to Company or its Domestic Subsidiaries
and otherwise on normal and customary terms and conditions for
comparable asset-based Securitization Transactions; |
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(d) |
Each such
Securitization Transaction shall be structured on the basis of the
issuance of non-recourse (to Company or its Domestic Subsidiaries)
Debt or other similar securities by a Special Purpose
Subsidiary; |
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(e) |
Both immediately
before and immediately after each such disposition, no Default or
Event of Default (whether or not related to such disposition) shall
have occurred and be continuing; and |
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(f) |
Immediately prior to
and immediately after conducting each such Securitization
Transaction, Company must have on its rated Senior Debt a BB- or
better rating from S&P and a Ba3 rating or better from
Moody’s. |
19
“Permitted Transfer” shall mean (i)
any disposition of inventory or worn out or obsolete machinery,
equipment or other such personal property in the ordinary course of
business, and (ii) the transfer by Company or its Subsidiaries to
Company or any Wholly Owned Subsidiary of machinery and equipment
from and after the Restatement Date (provided that no Default or
Event of Default has occurred and is continuing at the time of any
such transfer).
“Permitted Transferee” shall mean a
“Permitted Transferee” as defined in Company’s
current Certificate of Incorporation, and any subsequent amendment
of the definition of such term approved by the Required
Lenders.
“Person” shall mean an individual,
corporation, partnership, limited liability company, trust,
incorporated or unincorporated organization, joint venture, joint
stock company, or a government or any agency or political
subdivision thereof or other entity of any kind.
“Pledge Agreement(s)” shall mean that
certain Second Amended and Restated Stock Pledge and Security
Agreement dated as of April 20, 2007, as the same may be amended,
restated or otherwise modified from time to time, together with all
other pledge agreements, including any nantissements ,
notarial deeds, pledges of financial instrument accounts, or other
local law pledges (and any of them) previously executed and
delivered, executed and delivered as of the Effective Date or to be
executed or delivered pursuant to this Agreement (as the same may
be amended, restated or otherwise modified from time to time) all,
in favor of Agent, for and on behalf of Lenders under this
Agreement (or pledged directly to the Lenders, as local law shall
require), provided, however, that with respect to those Pledge
Agreements executed by or covering the Equity Interests of a
Significant Foreign Subsidiary prior to the Restatement Date such
Pledge Agreements may exclude from the Indebtedness secured
thereunder Hedging Obligations that are deemed Indebtedness
hereunder.
“Prime Rate” shall mean the per annum
interest rate established by Agent, or in the case of Swing Line
Advances carried at the Prime-based Rate, by Swing Line Lender, as
its prime rate for its borrowers, as such rate may vary from time
to time, which rate is not necessarily the lowest rate on loans
made by Agent or Swing Line Lender at any such time.
“Prime-based Advance” shall mean an
Advance (including a Swing Line Advance) which bears interest at
the Prime-based Rate.
“Prime-based Rate” shall mean that
rate of interest which is the sum of the Applicable Margin plus the
greater of (i) the Prime Rate or (ii) the Alternate Base
Rate.
“Prior Credit
Agreement” is defined in the Preamble.
“Pro Forma Projected Financial
Information” shall mean, as to any proposed acquisition, a
statement executed by an Authorized Officer of Company (supported
by reasonable detail) setting forth the total consideration to be
paid or incurred in connection with the proposed acquisition and,
pro forma combined projected financial information for Company and
its Consolidated Subsidiaries and the acquisition target (if
applicable), consisting of projected opening balance sheets and
covenant calculations as of the proposed effective date of the
acquisition and as of the end of at least the next succeeding three
(3) fiscal years of Company following the acquisition and projected
statements of income, balance sheets and cash flow
20
statements for each
of those years based on historical financial information prepared
in accordance with GAAP, including sufficient detail to permit
calculation of the amounts and the financial covenants described in
Sections 7.4 through 7.6 hereof and evidencing projected compliance
therewith, as projected as of the effective date of the acquisition
and for those fiscal years and accompanied by (i) a statement
setting forth a calculation of the ratios and amounts so described
and (ii) a statement in reasonable detail specifying all material
assumptions underlying the projections.
“Prohibited Transaction” shall mean
any transaction involving a Pension Plan which constitutes a
“prohibited transaction” under Section 406 of ERISA or
Section 4975 of the Internal Revenue Code.
“Quoted Rate” shall mean the rate of
interest per annum offered by Swing Line Lender in its sole
discretion with respect to a Swing Line Advance.
“Quoted Rate Advance” means any Swing
Line Advance which bears interest at the Quoted Rate.
“Rating Agency” shall mean S&P, or
Moody’s, or any of their respective successors, or any other
nationally recognized rating agency, and “Rating
Agencies” shall be the collective reference to any or all of
the foregoing.
“Reaffirmation of Domestic Pledge
Agreements” shall mean that certain Reaffirmation of Domestic
Pledge Agreements dated as of the Restatement Date to the Agent for
the benefit of the Lenders as the same may be amended, restated or
otherwise modified from time to time.
“Refunded Swing
Line Advance” is defined in Section 2.5(e) hereof.
“Register” is
defined in Section 13.8(f) hereof.
“Reimbursement Obligation(s)” shall
mean the aggregate amount of all unreimbursed drawings under all
Letters of Credit (excluding for the avoidance of doubt,
reimbursement obligations that are deemed satisfied pursuant to a
deemed disbursement under this Agreement).
“Reinvest” or
“Reinvestment” shall mean, with respect to any Net Cash
Proceeds, received by any Person, the application of such monies to
(i) repair, improve or replace any tangible personal (excluding
Inventory) or real property of the Company and its Subsidiaries or
any intellectual property reasonably necessary in order to use or
benefit from any property or (ii) acquire any such property
(excluding Inventory) to be used in the business of such
Person.
“Reinvestment Period” shall mean a
180-day period during which Reinvestment must be completed under
Section 4.9(b) of this Agreement.
“Reportable Event” shall mean a
“reportable event” within the meaning of Section 4043
of ERISA and the regulations promulgated thereunder, which is
material to Company and its Subsidiaries, taken as a whole, the
reporting of which has not been waived under such
regulations.
21
“Request for Advance” shall mean a
Request for Revolving Credit Advance, a Request for Swing Line
Advance, a Request for Term Loan Advance, or any of them, as the
context may indicate or otherwise require.
“Request for Revolving Credit Advance”
shall mean a request for Revolving Credit Advance issued by Company
or by a Permitted Borrower and countersigned by Company under
Section 2.3(c) hereof, as the case may be, in the form attached
annexed hereto as Exhibit A-1, as such form may be amended or
otherwise modified from time to time.
“Request for Swing Line Advance” shall
mean a request for Swing Line Advance issued by Company or by a
Permitted Borrower and countersigned by Company under Section
2.5(c) hereof, in the form attached annexed hereto as Exhibit A-2,
as such form may be amended or otherwise modified from time to
time.
“Request for Term Loan Advance” shall
mean a request for Term Loan Advance issued by Company under
Section 4.4 hereof, in the form attached annexed hereto as Exhibit
K, as such form may be amended or otherwise modified from time to
time.
“Required Lenders” shall mean at any
time (a) so long as the Revolving Credit Aggregate Commitment has
not been terminated, Lenders holding more than 50.0% of the sum of
(i) the Revolving Credit Aggregate Commitment plus (ii) the
aggregate principal amount of Indebtedness then outstanding under
the Term Loan and (b) if the Revolving Credit Aggregate Commitment
has been terminated (whether by maturity, acceleration or
otherwise), Lenders holding more than 50.0% of the aggregate
principal amount then outstanding under the Revolving Credit and
the Term Loan; provided that, for purposes of determining Required
Lenders hereunder, the Letter of Credit Obligations and principal
amount outstanding under the Swing Line shall be allocated among
the Revolving Credit Lenders based on their respective Revolving
Credit Percentages.
“Required Revolving Credit Lenders”
shall mean at any time (a) so long as the Revolving Credit
Aggregate Commitment has not been terminated, the Revolving Credit
Lenders holding more than 50.0% of the Revolving Credit Aggregate
Commitment and (b) if the Revolving Credit Aggregate Commitment has
been terminated (whether by maturity, acceleration or otherwise),
Revolving Credit Lenders holding more than 50.0% of the aggregate
principal amount then outstanding under the Revolving Credit;
provided that, for purposes of determining Required Revolving
Credit Lenders hereunder, the Letter of Credit Obligations and
principal amount outstanding under the Swing Line shall be
allocated among the Revolving Credit Lenders based on their
respective Revolving Credit Percentages.
“Required Term Loan Lenders” shall
mean at any time with respect to the Term Loan, Term Loan Lenders
holding more than 50.0% of the aggregate principal amount then
outstanding under the Term Loan.
“Restatement Date” shall mean the date
on which all of the conditions precedent set forth in Sections 5.1
through 5.10 hereof have been satisfied, as evidenced by the
closing certificate of Company.
22
“Revolving Credit” shall mean the
revolving credit loans to be advanced to the Borrowers by Lenders
pursuant to Section 2 hereof, in an aggregate amount (subject to
the terms hereof), not to exceed, at any one time outstanding, the
Revolving Credit Aggregate Commitment.
“Revolving Credit Advance” or
“Advance of the Revolving Credit” shall mean a
borrowing requested by a Borrower and made by the Revolving Credit
Lenders under Section 2.1 of this Agreement, including without
limitation any readvance, refunding or conversion of such borrowing
pursuant to Section 2.3 hereof and any deemed disbursement of an
Advance in respect of a Letter of Credit under Section 3.6(a)
hereof, and may include, subject to the terms hereof,
Eurocurrency-based Advances and Prime-based Advances.
“Revolving Credit Aggregate
Commitment” shall mean Two Hundred Fifty Million Dollars
($250,000,000.00) subject to (i) any increases in the Revolving
Credit Aggregate Commitment from time to time pursuant to Section
2.17 of this Agreement, by an amount not to exceed the Revolving
Credit Optional Increase and (ii) reduction or termination under
Section, 2.15, 2.16 or 9.2 hereof.
“Revolving Credit Commitment Amount”
shall mean with respect to any Revolving Credit Lender, (i) if the
Revolving Credit Aggregate Commitment has not been terminated, the
amount specified opposite such Revolving Credit Lender’s name
in the column entitled “Revolving Credit Commitment
Amount” on Schedule 1.1, as adjusted from time to time in
accordance with the terms hereof; and (ii) if the Revolving Credit
Aggregate Commitment has been terminated (whether by maturity,
acceleration or otherwise), the amount equal to its Revolving
Credit Percentage of the aggregate principal amount outstanding
under the Revolving Credit (including the outstanding Letter of
Credit Obligations and any outstanding Swing Line
Advances).
“Revolving Credit Facility Fee” shall
mean the facility fee payable to Agent for distribution to Lenders
pursuant to Section 2.13 hereof.
“Revolving Credit Lenders” shall mean
the financial institutions from time to time parties hereto as
lenders of the Revolving Credit.
“Revolving Credit Maturity Date” shall
mean the earlier to occur of (i) April 20, 2012, as such date may
be extended from time to time pursuant to Section 2.16 hereof, and
(ii) the date on which the Revolving Credit Aggregate Commitment
shall be terminated pursuant to Section 2.15 or 9.2
hereof.
“Revolving Credit Notes” shall mean
the revolving credit notes which may be issued by the Borrowers at
the request of a Lender pursuant to Section 2.2(e) hereof in the
form annexed to this Agreement as Exhibit B-1 and B-2, as
applicable, as such Notes may be amended, renewed, replaced or
extended from time to time.
“Revolving Credit Optional Increase”
shall mean an amount up to Two Hundred Fifty Million Dollars
($250,000,000.00), minus the portions thereof applied from time to
time under Section 2.16 hereof to increase the Revolving Credit
Aggregate Commitment.
23
“Revolving Credit Percentage” means,
with respect to any Revolving Credit Lender, the percentage
specified opposite such Revolving Credit Lender’s name in the
column entitled “Revolving Credit Percentage” on
Schedule 1.1, as adjusted from time to time in accordance with the
terms hereof.
“Securitization Transaction(s)” shall
mean a transfer of, or grant of a Lien on, foreign accounts
receivable by any Foreign Subsidiary to a Special Purpose
Subsidiary or other special purpose or limited purpose entity and
the issuance (whether by such Special Purpose Subsidiary or other
special purpose or limited purpose entity or any other Person) of
Debt or of any securities secured directly or indirectly by
interests in, or of trust or a comparable certificates or other
securities directly or indirectly evidencing interests in, such
foreign accounts receivable.
“Senior Debt” shall mean, with respect
to Company and its Consolidated Subsidiaries, Total Debt, excluding
Subordinated Debt.
“Significant Domestic Subsidiary(ies)”
shall mean, at any time the Domestic Permitted Borrowers and all
Domestic Subsidiaries, whether existing as of the Restatement Date
or created or acquired by Company thereafter, except any
Subsidiary:
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(a) |
the total
assets of which, on an individual basis, on any date of
determination, are less than $20,000,000; and |
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(b) |
which
has, as of the most recent fiscal quarter then ending, for the four
preceding fiscal quarters, an EBITDA of less than
$5,000,000. |
“Significant Foreign Subsidiary(ies)”
shall mean, at any time, the Foreign Permitted Borrowers and all
Foreign Subsidiaries, whether existing as of the Restatement Date
or created or acquired by Company thereafter, except any
Subsidiary:
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(a) |
the total
assets of which, on an individual basis, on any date of
determination, are, excluding goodwill, less than $100,000,000;
and |
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(b) |
which
has, as of the most recent fiscal quarter then ending, for the four
preceding fiscal quarters, an EBITDA of less than
$15,000,000, |
provided however
that, notwithstanding the foregoing, none of the Israeli
Subsidiaries shall be considered a Significant Foreign Subsidiary
hereunder and none of the Subsidiaries the Equity Interests of
which are not held directly by Company or any Domestic Subsidiary
shall be considered a Significant Foreign Subsidiary
hereunder.
“Significant Subsidiary(ies)” shall
mean the Significant Domestic Subsidiaries and the Significant
Foreign Subsidiaries.
“Siliconix”
shall mean Siliconix Incorporated, a Delaware
corporation.
“Siliconix Technology” shall mean
Siliconix Technology C.V., a company formed under the laws of The
Netherlands.
24
“SPFV” shall mean a special purpose
funding vehicle utilized by a Granting Lender pursuant to Section
13.8 hereof to fund all or any part of any Advance that such Lender
would otherwise be obligated to fund under this
Agreement.
“Special Letters of Credit” shall mean
letters of credit issued by Agent from time to time as an
administrative convenience for the account of Company or its
Subsidiaries on its own behalf and not on behalf (by risk
participation or otherwise) of the other Lenders, in an aggregate
undrawn amount at any time outstanding plus the aggregate amount of
unpaid Reimbursement Obligations not to exceed the Letter of Credit
Reserve in effect at such time, each such letter of credit being in
an undrawn amount of less than $750,000.
“Special Purpose Subsidiary” shall
mean any wholly-owned direct or indirect Subsidiary of Company
established for the sole purpose of conducting a Permitted
Securitization and otherwise established and operated in accordance
with customary industry practices.
“S&P” means Standard &
Poor’s Rating Services, a division of The McGraw-Hill
Companies, Inc., its successors and assigns, and, if such
organization shall be dissolved or liquidated or shall no longer
perform the functions of a securities rating agency,
“S&P” shall be deemed to refer to any other
nationally recognized securities rating agency designated by
Agent.
“Stockholder’s Equity” shall
mean (i) legal capital (carried at the par or stated value thereof)
consisting of common or preferred stock, (ii) paid-in capital to
the extent of the excess over par or stated value paid for Equity
Interests and that created by a corporate readjustment and (iii)
retained earnings consisting of cumulative Net Income reduced by
dividends declared or paid.
“Subordinated Debt” shall mean all
Debt of Company and its Subsidiaries which has been subordinated in
right of payment and priority to the Indebtedness, in each case on
terms and conditions reasonably satisfactory to Agent and the
Required Lenders, including, without limitation, the Subordinated
Debt existing on the Restatement Date and identified (as such) on
Schedule 8.13 hereto.
“Subsidiary(ies)” shall mean any
corporation, association, joint stock company, limited liability
company, partnership or business trust of which more than fifty
percent (50%) of the outstanding voting Equity Interests are owned
either directly or indirectly by Company or one or more of its
Subsidiaries or by Company and one or more of its Subsidiaries, or
the management of which is otherwise controlled, directly, or
indirectly through one or more intermediaries, or both, by Company
and/or its Subsidiaries.
“Sweep Agreement” means any agreement
relating to the “Sweep to Loan” automated system of
Agent or any other cash management arrangement which Company and/or
any Permitted Borrower and Agent have executed for the purposes of
effecting the borrowing and repayment of Swing Line
Advances.
“Swing Line” shall mean the revolving
credit loan to be advanced to any of the a Borrowers by Swing Line
Lender pursuant to Section 2.5 hereof, in an aggregate amount
(subject to the terms hereof) not to exceed, at any one time
outstanding, the Swing Line Maximum Amount.
25
“Swing Line Advance” or “Advance
of the Swing Line” shall mean a borrowing requested by
Borrower and made by Swing Line Lender pursuant to Section 2.5
hereof and may include, subject to the terms hereof, Quoted Rate
Advances and Prime-based Advances.
“Swing Line
Lender” shall mean Comerica Bank, and its successors and
assigns.
“Swing Line Maximum
Amount” shall mean Forty Million Dollars
($40,000,000).
“Swing Line Notes” shall mean the
swing line notes which may be issued by Company or a Permitted
Borrower at the request of Swing Line Lender pursuant to Section
2.5(a) hereof in the form annexed hereto as Exhibit C-1 or C-2, as
the case may be, as such Notes may be amended or supplemented from
time to time, and any notes issued in substitution, replacement or
renewal thereof from time to time.
“Tangible Net Worth” shall mean, as of
any date of determination, the total common shareholders’
equity of Company and its Subsidiaries on a Consolidated basis,
together with the amount, if any, of preferred stock which is
classified as part of shareholders’ equity, as reflected on
the most recent regularly prepared quarterly balance sheet of
Company and such Subsidiaries, which balance sheet shall be
prepared in accordance with GAAP, minus the book amount of
intangible assets including, without limitation, such items as
goodwill, trademarks, trade names, copyrights, patents, licenses
and rights in any intangible assets, and unamortized debt discount
and expense, as of such date determined in accordance with GAAP,
but excluding the effects of the currency translation adjustment
and of the pension adjustment under the additional minimum
liability section of FASB 87.
“Term Loan” shall mean the term loan
to be made to Borrower by the Term Loan Lenders pursuant to Section
4.1 hereof, in the aggregate principal amount of not more than One
Hundred Twenty Five Million Dollars ($125,000,000).
“Term Loan Advance” or “Advance
of the Term Loan” shall mean the borrowing requested by the
Company and made by the Term Loan Lenders pursuant to Sections 4.1
and 4.4 hereof, including without limitation any refunding or
conversion of such borrowing pursuant to Section 4.4 hereof, and
may include, subject to the terms hereof, Eurocurrency-based
Advances and Prime-based Advances.
“Term Loan Amount” shall mean with
respect to any Term Loan Lender, the amount equal to its Term Loan
Percentage of the aggregate principal amount outstanding under the
Term Loan.
“Term Loan Lenders” shall mean the
financial institutions from time to time parties hereto as lenders
of the Term Loan.
“Term Loan Maturity
Date” shall mean July 1, 2011.
“Term Loan Notes” shall mean the term
notes described in Section 4.2(e) hereof, made by Borrower to each
of the Term Loan Lenders in the form attached hereto as Exhibit J,
as such notes may be amended or supplemented from time to time, and
any other notes issued in substitution, replacement or renewal
thereof from time to time.
26
“Term Loan Percentage” shall mean with
respect to any Term Loan Lender, the percentage specified opposite
such Term Loan Lender’s name in the column entitled
“Term Loan Percentage” on Schedule 1.1, as adjusted
from time to time in accordance with the terms hereof.
“Total Debt” shall mean, with respect
to Company and its Consolidated Subsidiaries, as of any date of
determination, the sum, without duplication, of (a) the aggregate
outstanding principal amounts of (i) Advances outstanding as of
such date and any Letter of Credit Obligations outstanding as of
such date, (ii) all other Debt of Company and its Subsidiaries as
of such date for borrowed money or which is evidenced by
debentures, notes or other similar instruments, (iii) all other
obligations of Company and its Subsidiaries as of such date to
reimburse the issuers of letters of credit issued for their account
for each payment made by such issuers under such letters of credit
(iv) all capitalized lease obligations of Company and its
Subsidiaries as of such date (v) all obligations of Company and its
Subsidiaries under conditional sale or other title retention
agreements relating to property or assets purchased and (vi) any
Debt or off balance sheet obligations issued pursuant to a
Securitization Transaction (whether by a Special Purpose Subsidiary
or otherwise), all determined on a Consolidated basis.
“Trans-European Business Day” shall
mean a day when the Trans-European Settlement System is open for
business.
“Trans-European Settlement System”
shall mean the Trans-European Automated Real-time Gross Settlement
Express Transfer System or any successor.
“Treaty on European Union” shall mean
the Treaty of Maastricht (which was signed at Maastricht on
February 7, 1992 and came into force on November 1, 1993), as
amended by the Treaty of Amsterdam (which was signed on October 2,
1997 and came into force on May 1, 1999) and the Treaty of Nice
(which was signed on February 26, 2001 and came into force on
February 1, 2003).
“USA Patriot
Act” shall have the meaning set forth in Section
6.9.
“Vishay Asia” shall mean Vishay
Intertechnology Asia Ltd. Pte., a company organized under the laws
of Singapore.
“Vishay Europe” shall mean Vishay
Europe GmbH, a company organized under the laws of the Federal
Republic of Germany, formerly known as Vishay Beteiligungs
GmbH.
“Vishay Electronic” shall mean Vishay
Electronic GmbH, a company organized under the laws of the Federal
Republic of Germany.
“Vishay India” shall mean Vishay
Components India Pvt Ltd., a company organized under the laws of
India.
“Vishay Israel” shall mean Vishay
Israel Limited, a corporation organized under the laws of Israel
and a Subsidiary of Company.
27
“Weighted Percentage” shall mean with
respect to any Lender, its percentage share as set forth in
Schedule 1.1, as such Schedule may be revised by the Agent from
time to time, which percentage shall be calculated as
follows:
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(a) |
as to such Lender, so long as the Revolving Credit Aggregate
Commitment has not been terminated, its weighted percentage
calculated by dividing (i) the sum of (x) its Revolving Credit
Commitment Amount plus (y) its Term Loan Amount, by (ii) the sum of
(x) the Revolving Credit Aggregate Commitment plus (y) the
aggregate principal amount of Indebtedness outstanding under the
Term Loan; and |
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(b) |
as to such Lender, if the Revolving Credit Aggregate Commitment
has been terminated (whether by maturity, acceleration or
otherwise), its weighted percentage calculated by dividing (i) the
sum of (x) its applicable Revolving Credit Commitment Amount plus
(y) its Term Loan Amount, by (ii) the sum of the aggregate
principal amount outstanding under (x) the Revolving Credit
(including any outstanding Letter of Credit Obligations and
outstanding Swing Line Advances) and (z) the Term Loan. |
“Wholly Owned Subsidiary(ies)” shall
mean any of Company’s direct or indirect Subsidiaries whose
Equity Interests (other than directors’ or qualifying shares
to the extent required under applicable law) are owned entirety by
any other Wholly Owned Subsidiary and/or Company, and for the
avoidance of doubt, shall include the Israeli
Subsidiaries.
1.2 Euro.
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(a) |
Redenomination of Eurocurrency-based Advances and other
Advances into Euro Units . |
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(i) |
Each
obligation under this Agreement of a party hereto which (A) was
originally denominated in the former national currency of a
Participating Member State, or (B) would otherwise have been
denominated in such former national currency prior to such date
shall be denominated in, or redenominated into, as applicable, the
Euro Unit in accordance with EMU Legislation and applicable state
law, provided that, if and to the extent that any EMU Legislation
provides that amounts denominated in the euro unit or the National
Currency Unit of a Participating Member State, that are payable by
crediting an account of the creditor within that country, may be
made in either Euro or National Currency Units, each party to this
Agreement shall be entitled to pay or repay any such amounts in
either the Euro Unit or such National Currency Unit. |
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(ii) |
Subject
to any EMU Legislation, references in this Agreement to a minimum
amount (or an integral multiple thereof) in a National Currency
Unit to be paid to or by a party hereto shall be deemed to be a
reference to such reasonably comparable and convenient amount (or
an integral multiple thereof) in the Euro Unit as Agent may from
time to time specify. |
28
(b) Payments .
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(i) |
All
payments by any Borrower or any Lender of amounts denominated in
the Euro or a National Currency Unit of a Participating Member
State, shall be made in immediately available, freely transferable,
cleared funds to the account of Agent in the principal financial
center in such Participating Member State, as from time to time
designated by Agent for such purpose. |
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(ii) |
All
amounts payable by Agent to any party under this Agreement in the
National Currency Unit of a Participating Member State shall
instead be paid in the Euro Unit. |
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(iii) |
Subject
in the case of any Lender to Section 12.3 hereof, Agent shall not
be liable to any party to this Agreement in any way whatsoever for
any delay, or the consequences of any delay, in the crediting to
any account of any amount denominated in the Euro or a National
Currency Unit of a Participating Member State. |
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(iv) |
All
references herein to the London interbank or other national market
with respect to any National Currency Unit of a Participating
Member State shall be deemed a reference to the applicable markets
and locations referred to in the definition of “Business
Day” in Section
1.1 . |
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(c) |
Increased Costs . The
Borrowers shall, from time to time upon demand of any Lender (with
a copy to Agent), pay to such Lender the amount of any cost or
increased cost incurred by, or of any reduction in any amount
payable to or in the effective return on its capital to, or of
interest or other return foregone by, such Lender or any holding
company of such Lender as a result of the introduction of,
changeover to or operation of the Euro in a Participating Member
State, other than any such cost or reduction or amount foregone
reflected in any interest rate hereunder. |
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(d) |
Inconsistent Practice .
If the basis of accrual of interest or fees expressed in this
Agreement with respect to the currency of any state that becomes a
Euro Member shall be inconsistent with any convention or practice
in the London interbank market for the basis of accrual of interest
or fees in respect of Euros, such convention or practice shall
replace such expressed basis effective as of and from the date on
which such state becomes a Euro Member; provided, that if any
Advance in the currency of such state is outstanding immediately
prior to such date, such replacement shall take effect, with
respect to such Advance, at the end of the then current Interest
Period. |
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(e) |
Unavailability of Euro .
If Agent at any time determines that: (i) the Euro has ceased to be
utilized as the basic accounting unit of the European Community;
(ii) for reasons affecting the market in Euros generally, Euros are
not freely traded between banks internationally; or (iii) it is
illegal, impossible or impracticable for |
29
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payments
to be made hereunder in Euro, then Agent may, in its discretion
declare (such declaration to be binding on all the parties hereto)
that any payment made or to be made thereafter which, but for this
provision, would have been payable in the Euro shall be made in a
component currency of the Euro or Dollars (as selected by Agent
(the “ Selected
Currency ”) and the
amount to be so paid shall be calculated on the basis of the
equivalent of the Euro in the Selected Currency). |
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(f) |
Additional Changes at Agent’s Discretion
. This section and other provisions of
this Agreement relating to Euros and the National Currency Units of
Participating Member States shall be subject to such further
changes (including changes in interpretation or construction) as
Agent may from time to time in its reasonable discretion notify to
the Borrowers and Lenders to be necessary or appropriate to reflect
the changeover to the Euro in Participating Member
States. |
2. REVOLVING CREDIT
2.1 Commitment . Subject to
the terms and conditions of this Agreement (including without
limitation Section 2.3 hereof), each Revolving Credit Lender
severally and for itself alone agrees to make Advances of the
Revolving Credit in any one or more of the Permitted Currencies to
any of the Borrowers from time to time on any Business Day during
the period from the Restatement Date until (but excluding) the
Revolving Credit Maturity Date in an aggregate amount, based on the
Dollar Amount of any Revolving Credit Advances outstanding in
Dollars and the Current Dollar Equivalent of any Advances
outstanding in Alternative Currencies, not to exceed at any one
time outstanding such Revolving Credit Lender’s Revolving
Credit Percentage. Except as provided in Section 2.12 hereof, for
purposes of this Agreement, Revolving Credit Advances in
Alternative Currencies shall be determined, denominated and
redenominated as set forth in Section 2.11 hereof. Subject to the
terms and conditions set forth herein, advances, repayments and
readvances may be made under the Revolving Credit. Advances of the
Revolving Credit shall be subject to the following additional
conditions and limitations:
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(a) |
No
Permitted Borrower shall be entitled to request an Advance of the
Revolving Credit or the Swing Line or the issuance of a Letter of
Credit hereunder until (i) it has become a party to this Agreement,
either by execution and delivery of this Agreement, or by execution
and delivery of a Permitted Borrower Addendum to this Agreement,
(ii) it has become a party to the applicable Guaranty either by
execution and delivery of such Guaranty or by execution and
delivery of a Joinder Agreement to such Guaranty, and (iii) in the
case of each Permitted Borrower, Company has encumbered and/or
delivered (or caused to be encumbered and/or delivered), as the
case may be, pursuant to a Pledge Agreement those Equity Interests
issued by such Permitted Borrower and owned (directly or
indirectly) by Company by authority documents, legal opinions and
other supporting documents as reasonably required by Agent and the
Required Revolving Credit Lenders hereunder; |
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(b) |
No
Subsidiary which is a Permitted Borrower as of the Restatement Date
nor any Foreign Subsidiary which becomes a Permitted Borrower after
the Restatement |
30
Date shall be entitled to request or maintain (or, in the
case of any Eurocurrency-based Advance, maintain beyond any
applicable Interest Period then in effect) an Advance of the
Revolving Credit or the Swing Line or the issuance of a Letter of
Credit hereunder if it ceases to be a Wholly Owned Subsidiary of
Company.
2.2 Accrual
of Interest and Maturity; Evidence of Indebtedness
. (a) Company hereby unconditionally
promises to pay to Agent for the account of each Revolving Credit
Lender the then unpaid principal amount of each Revolving Credit
Advance of such Revolving Credit Lender made to Company and each
Permitted Borrower, and each Permitted Borrower hereby
unconditionally promises to pay to Agent for the account of each
Revolving Credit Lender the then unpaid principal amount of each
Revolving Credit Advance of such Revolving Credit Lender made to
such Permitted Borrower, on the Revolving Credit Maturity Date and
on such other dates and in such other amounts as may be required
from time to time pursuant to this Agreement.
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(a) |
Each
Revolving Credit Lender shall maintain in accordance with its usual
practice an account or accounts evidencing indebtedness of Company
and each Permitted Borrower to the appropriate lending office of
such Revolving Credit Lender resulting from each Revolving Credit
Advance made by such lending office of such Revolving Credit Lender
from time to time, including the amounts of principal and interest
payable thereon and paid to such Revolving Credit Lender from time
to time under this Agreement. |
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(b) |
Agent
shall maintain the Register pursuant to Section 13.8(f), and a
subaccount therein for each Revolving Credit Lender, in which
Register and subaccounts (taken together) shall be recorded (i) the
amount and applicable Permitted Currency of each Revolving Credit
Advance made hereunder, the type thereof and each Interest Period
applicable to any Eurocurrency-based Advance, (ii) the amount of
any principal or interest due and payable or to become due and
payable from Company or the applicable Permitted Borrower, as the
case may be, to each Revolving Credit Lender hereunder in respect
of the Revolving Credit Advances and (iii) both the amount of any
sum received by Agent hereunder from Company or the applicable
Permitted Borrower in respect of the Revolving Credit Advances and
each Revolving Credit Lender’s share thereof. |
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(c) |
The
entries made in the Register and the accounts of each Revolving
Credit Lender maintained pursuant to paragraphs (b) and (c) of this
Section 2.1 shall absent manifest error, to the extent permitted by
applicable law, be conclusive evidence of the existence and amounts
of the obligations of Company and the Permitted Borrowers therein
recorded; provided
, however , that the
failure of any Revolving Credit Lender or Agent to maintain the
Register or any such account, as applicable, or any error therein,
shall not in any manner affect the obligation of each of Company
and each Permitted Borrower to repay the Revolving Credit Advances
(and all other amounts owing with respect thereto) made to Company
or such Permitted Borrower by such Revolving Credit Lender in
accordance with the terms of this Agreement. |
31
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(d)
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Company
agrees that, upon written request to the Agent (with a copy to
Company) by any Revolving Credit Lender, Company and each of the
Permitted Borrowers will execute and deliver, to such Revolving
Credit Lender, at Company’s (or such Permitted
Borrower’s) own expense, a Revolving Credit Note of each of
Company and each of the Permitted Borrowers evidencing the
outstanding Revolving Credit Advances owing to such Revolving
Credit Lender; provided, that the delivery of such Revolving Credit
Notes shall not be a condition precedent to the Restatement
Date. |
2.3 Requests
for and Refundings and Conversions of Advances
. Company or a Permitted Borrower (with
the countersignature of Company hereunder) may request a Revolving
Credit Advance, refund any such Revolving Credit Advance in the
same type of Revolving Credit Advance or convert any such Revolving
Credit Advance to any other type of Revolving Credit Advance only
after delivery to Agent of a Request for Revolving Credit Advance
executed by an Authorized Officer of Company or of such Permitted
Borrower (with the countersignature of an Authorized Officer of
Company), subject to the following and to the remaining provisions
hereof:
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(a) |
each such Request for Revolving Credit Advance shall set forth
the information required on the Request for Revolving Credit
Advance form annexed hereto as Exhibit A-1, including without
limitation: |
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(i) |
the
proposed date of such Revolving Credit Advance, which must be a
Business Day; |
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(ii) |
whether
such Revolving Credit Advance is a refunding or conversion of an
outstanding Revolving Credit Advance; |
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(iii) |
whether
such Revolving Credit Advance is to be a Prime-based Advance or a
Eurocurrency-based Advance, and, except in the case of a
Prime-based Advance, the first Interest Period applicable thereto;
and |
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(iv) |
in the
case of a Eurocurrency-based Advance, the Permitted Currency in
which such Revolving Credit Advance is to be made. |
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(b) |
each such Request for Revolving Credit Advance shall be
delivered to Agent by 12:00 noon (Detroit time) three (3) Business
Days prior to the proposed date of such Revolving Credit Advance,
except in the case of a Prime-based Advance to the Company or a
Domestic Permitted Borrower, for which the Request for Revolving
Credit Advance must be delivered by 12:00 noon (Detroit time) on
such proposed date; |
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(c) |
on the proposed date of such Revolving Credit Advance, the
Dollar Amount of the principal amount of such requested Revolving
Credit Advance, plus the Dollar Amount of the principal amount of
any other Revolving Credit Advances and Swing Line Advances being
requested on such date, plus the principal amount of all other
Advances of the Revolving Credit and of the Swing Line (except to
the extent being refunded by such requested Revolving Credit
Advance) then |
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outstanding hereunder, in each case whether to Company or any
of the Permitted Borrowers (using the Current Dollar Equivalent of
any such Revolving Credit Advances outstanding in any Alternative
Currency, determined pursuant to the terms hereof as of the date of
such requested Revolving Credit Advance), plus the aggregate
outstanding amount of all Letter of Credit Obligations (based on
the Dollar Amount of such Letter of Credit Obligations for any
Letters of Credit denominated in Dollars and the Current Dollar
Equivalent of any Letters of Credit denominated in any Alternative
Currency) shall not exceed the Revolving Credit Aggregate
Commitment; provided however, that, in the case of any Revolving
Credit Advance being applied to refund an outstanding Swing Line
Advance, the aggregate principal amount of Swing Line Advances to
be refunded shall not be included for purposes of calculating the
limitation under this Section 2.3(c); |
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(d) |
in the
case of a Permitted Borrower, on the proposed date of such
Revolving Credit Advance, the principal amount of the Revolving
Credit Advance being requested by such Permitted Borrower
(determined and tested as aforesaid), plus the principal amount of
any other Revolving Credit Advances and Swing Line Advances being
requested by such Permitted Borrower on such date, plus the
principal amount of any other Revolving Credit Advances and all
Swing Line Advances then outstanding to such Permitted Borrower
hereunder (determined as aforesaid), plus the Letter of Credit
Obligations relating to Letters of Credit issued for the account of
such Permitted Borrower, shall not exceed the applicable Permitted
Borrower Sublimit; |
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(e) |
in the
case of a Prime-based Advance, the principal amount of the initial
funding of such Revolving Credit Advance, as opposed to any
refunding or conversion thereof, shall be in a minimum amount of
$5,000,000; |
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(f) |
in the
case of a Eurocurrency-based Advance, the principal amount of such
Advance, plus the amount of any other outstanding Advance of the
Revolving Credit to be then combined therewith having the same
Applicable Interest Rate and Interest Period, if any, shall be in a
minimum amount of Ten Million Dollars ($10,000,000) or the
equivalent thereof in an Alternative Currency (or a whole multiple
of One Hundred Thousand Dollars ($100,000), or the equivalent
thereof in the applicable Alternative Currency) and at any one time
there shall not be in effect more than (x) for Revolving Credit
Advances to Company, ten (10) Applicable Interest Rates and
Interest Periods, and (y) for Revolving Credit Advances to each
Permitted Borrower five (5) Applicable Interest Rates and Interest
Periods for each such currency; |
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(g) |
a Request
for Revolving Credit Advance, once delivered to Agent, shall not be
revocable by Company or the Permitted Borrowers; |
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(h) |
each
Request for Revolving Credit Advance shall constitute a
certification by Company and the applicable Permitted Borrower, if
any, as of the date thereof that: |
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(i) |
both
before and after such Revolving Credit Advance, the obligations of
Company and the Permitted Borrowers set forth in this Agreement and
the other Loan Documents to which such Persons are parties are
valid, binding and enforceable obligations of Company and the
Permitted Borrowers, as the case may be; |
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(ii) |
all
conditions to Revolving Credit Advances of the Revolving Credit
have been satisfied, and shall remain satisfied to the date of such
Revolving Advance (both before and after giving effect to such
Revolving Credit Advance); |
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(iii) |
there is
no Default or Event of Default in existence, and none will exist
upon the making of such Revolving Credit Advance (both before and
after giving effect to such Revolving Credit Advance); |
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(iv) |
the
representations and warranties contained in this Agreement and the
other Loan Documents are true and correct in all material respects
and shall be true and correct in all material respects as of the
making of such Revolving Credit Advance (both before and after
giving effect to such Revolving Credit Advance); and |
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(v) |
the
execution of such Request for Revolving Credit Advance will not
violate the material terms and conditions of any material contract,
agreement or other borrowing of Company or the Permitted
Borrowers. |
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Agent,
acting on behalf of Revolving Credit Lenders, may, at its option,
lend under this Section 2 upon the telephone request of an
Authorized Officer of Company or a Permitted Borrower and, in the
event Agent, acting on behalf of Revolving Credit Lenders, makes
any such Advance upon a telephone request, the requesting officer
shall fax or email to Agent, on the same day as such telephone
request, a Request for Revolving Credit Advance. Company and
Permitted Borrowers hereby authorize Agent to disburse Revolving
Credit Advances under this Section 2.3 pursuant to the telephone
instructions of any person purporting to be a person identified by
name on a written list of persons authorized by Company and
delivered to Agent prior to the date of such request to make
Requests for Revolving Credit Advance on behalf of Company and the
Permitted Borrowers. Notwithstanding the foregoing, Company and
each Permitted Borrower acknowledge that Company and each such
Permitted Borrower shall bear all risk of loss resulting from
disbursements made upon any telephone request. Each telephone
request for a Revolving Credit Advance shall constitute a
certification of the matters set forth in the Request for Revolving
Credit Advance form as of the date of such requested
Advance. |
2.4 Disbursement of Advances.
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(a) |
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Upon
receiving any Request for Revolving Credit Advance from Company or
a Permitted Borrower under Section 2.3 hereof, Agent shall promptly
notify each |
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Revolving
Credit Lender by wire, telex, email or telephone (confirmed by
email, wire, telecopy or telex) of the amount and currency of such
Advance to be made and the date such Advance is to be made by said
Revolving Credit Lender pursuant to its Revolving Credit Percentage
of such Advance. Unless such Revolving Credit Lender’s
commitment to make Advances of the Revolving Credit hereunder shall
have been suspended or terminated in accordance with this
Agreement, each such Revolving Credit Lender shall make available
the amount of its Revolving Credit Percentage of each Advance in
immediately available funds in the currency of such Advance to
Agent, as follows: |
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(i) |
for
Domestic Advances, at the office of Agent located at One Detroit
Center, Detroit, Michigan 48226, not later than 3:00 p.m. (Detroit
time) on the date of such Advance; and |
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(ii) |
for
Eurocurrency-based Advances, at Agent’s Correspondent for the
account of the Eurocurrency Lending Office of Agent, not later than
12 noon (the time of Agent’s Correspondent) on the date of
such Advance. |
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(b) |
Subject to submission of an executed Request for Revolving
Credit Advance by Company or a Permitted Borrower (with the
countersignature of Company as aforesaid) without exceptions noted
in the compliance certification therein, Agent shall make available
to Company or to the applicable Permitted Borrower, as the case may
be, the aggregate of the amounts so received by it from Revolving
Credit Lenders in like funds and currencies: |
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(i) |
for
Domestic Advances, not later than 4:00 p.m. (Detroit time) on the
date of such Advance by credit to an account of Company or such
Permitted Borrower maintained with Agent or to such other account
or third party as Company or such Permitted Borrower may reasonably
direct; and |
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(ii) |
for
Eurocurrency-based Advances, not later than 4:00 p.m. (the time of
Agent’s Correspondent) on the date of such Advance, by credit
to an account of Company or such Permitted Borrower maintained with
Agent’s Correspondent or to such other account or third party
as Company or such Permitted Borrower may reasonably
direct. |
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(c) |
Agent shall deliver the documents and papers received by it for
the account of each Revolving Credit Lender to such Revolving
Credit Lender or upon its order. Unless Agent shall have been
notified by any Revolving Credit Lender prior to the date of any
proposed Advance that such Revolving Credit Lender does not intend
to make available to Agent such Revolving Credit Lender’s
Revolving Credit Percentage of such Advance, Agent may assume that
such Revolving Credit Lender has made such amount available to
Agent on such date and in such currency, as aforesaid and may, in
reliance upon such assumption, make available to Company or to the
applicable Permitted Borrower, as the case may be, a corresponding
amount. If such amount is not in fact made available to Agent by
such Revolving Credit Lender, as aforesaid, Agent shall be entitled
to recover |
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such
amount on demand from such Revolving Credit Lender. If such
Revolving Credit Lender does not pay such amount forthwith upon
Agent’s demand therefor, Agent shall promptly notify Company,
and Company or the applicable Permitted Borrower shall pay such
amount to Agent, if such notice is delivered to Company prior to
1:00 p.m (Detroit time) on a Business Day, on the day such notice
is received, and otherwise on the next Business Day, and such
amount paid by Company shall be applied as a prepayment of the
Revolving Credit (without any corresponding reduction in the
Revolving Credit Aggregate Commitment), reimbursing Agent for
having funded said amounts on behalf of such Revolving Credit
Lender. The Company shall retain its claim against such Revolving
Credit Lender with respect to the amounts repaid by it to Agent
and, if such Revolving Credit Lender subsequently makes such
amounts available to the Agent, Agent shall promptly make such
amounts available to the Borrower as a Revolving Credit Advance.
Agent shall also be entitled to recover from such Revolving Credit
Lender or Company or the applicable Permitted Borrower, as the case
may be, but without duplication, interest on such amount in respect
of each day from the date such amount was made available by Agent
to Company or such Permitted Borrower, as the case may be, to the
date such amount is recovered by Agent, at a rate per annum equal
to: |
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(i) |
in the
case of such Revolving Credit Lender, for the first two (2)
Business Days such amount remains unpaid, with respect to Domestic
Advances, the Federal Funds Effective Rate, and with respect to
Eurocurrency-based Advances, Agent’s aggregate marginal cost
(including the cost of maintaining any required reserves or deposit
insurance and of any fees, penalties, overdraft charges or other
costs or expenses incurred by Agent as a result of such failure to
deliver funds hereunder) of carrying such amount and thereafter, at
the rate of interest then applicable to such Revolving Credit
Advances; and |
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(ii) |
in the
case of Company or such Permitted Borrower, the rate of interest
then applicable to such Advance of the Revolving
Credit. |
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Until such
Revolving Credit Lender has paid Agent such amount, such Revolving
Credit Lender shall have no interest in or rights with respect to
such Advance for any purpose whatsoever. The obligation of any
Revolving Credit Lender to make any Advance of the Revolving Credit
hereunder shall not be affected by the failure of any other
Revolving Credit Lender to make any Advance hereunder, and no
Revolving Credit Lender shall have any liability to Company or any
of its Subsidiaries, Agent, any other Revolving Credit Lender, or
any other party for another Revolving Credit Lender’s failure
to make any loan or Advance hereunder. |
2.5 (a)
Swing Line Advances
. Swing Line Lender may, on the terms
and subject to the conditions hereinafter set forth (including
without limitation Section 2.5(c) hereof), make one or more
advances in Dollars or in any Alternative Currency (each such
advance being a “Swing Line Advance”) to any Borrower,
from time to time on any Business Day during the period
from
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the date hereof to
(but excluding) the Revolving Credit Maturity Date in an aggregate
amount, based on the Dollar Amount of any such Advances outstanding
in Dollars and the Current Dollar Equivalent of any such Advances
outstanding in Alternative Currencies, not to exceed at any time
outstanding the Swing Line Maximum Amount. Swing Line Lender shall
maintain in accordance with its usual practice an account or
accounts evidencing indebtedness of each Borrower to Swing Line
Lender resulting from each Swing Line Advance of such Lender from
time to time, including the amounts of principal and interest
payable thereon and paid to such Lender from time to time. The
entries made in such account or accounts of Swing Line Lender
shall, to the extent permitted by applicable law, be conclusive
evidence, absent manifest error, of the existence and amounts of
the obligations of such Borrower therein recorded;
provided , however , that the
failure of Swing Line Lender to maintain such account, as
applicable, or any error therein, shall not in any manner affect
the obligation of such Borrower to repay the Swing Line Advances
(and all other amounts owing with respect thereto) made to such
Borrower by Swing Line Lender in accordance with the terms of this
Agreement. Advances, repayments and readvances under the Swing Line
may be made, subject to the terms and conditions of this Agreement.
Each Swing Line Advance shall mature and the principal amount
thereof shall be due and payable by the applicable Borrower on the
last day of the Interest Period applicable thereto (if any) and in
the case of any Prime-based Advance, on the Revolving Credit
Maturity Date.
Each Borrower agrees that, upon the written
request of Swing Line Lender (with a copy concurrently delivered to
Agent) it will execute and deliver to Swing Line Lender Swing Line
Notes executed by it provided, that the delivery of such Swing Line
Notes shall not be a condition precedent to the Restatement
Date.
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(a) |
Accrual of Interest . Each Swing Line Advance shall, from time to time after the
date of such Advance, bear interest at its Applicable Interest
Rate. The amount and date of each Swing Line Advance, its
Applicable Interest Rate, its Interest Period, if any, and the
amount and date of any repayment shall be noted on Swing Line
Lender’s account maintained pursuant to Section 2.5(a), which
records will be conclusive evidence thereof, absent manifest
error; provided
, however, that any failure by Swing
Line Lender to record any such information shall not relieve such
Borrower of its obligation to repay the outstanding principal
amount of such Advance, all interest accrued thereon and any amount
payable with respect thereto in accordance with the terms of this
Agreement and the other Loan Documents. |
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(b) |
Requests for Swing Line Advances . Company or a Permitted Borrower (with the
countersignature of Company) may request a Swing Line Advance only
after delivery to Swing Line Lender (with a copy concurrently
delivered to Agent) of a Request for Swing Line Advance executed by
an Authorized Officer of Company and, if applicable such Permitted
Borrower, subject to the following and to the remaining provisions
hereof: |
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(i) |
each such
Request for Swing Line Advance shall set forth the information
required on the Request for Advance form annexed hereto as Exhibit
A–2, including without limitation: |
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(A) the proposed date of such Swing Line Advance, which must be
a Business Day; |
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(B) whether such Swing Line Advance is to be a Prime-based
Advance, a Eurocurrency-based Advance or a Quoted Rate
Advance; |
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(C) except with respect to any Prime-based Advance, the
duration of the Interest Period applicable thereto; and |
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(D) in the case of a Eurocurrency-based Advance, the Permitted
Currency in which such Advance is to be made. |
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(ii) |
the Dollar Amount of
the principal amount of such requested Swing Line Advance, plus the
aggregate principal amount of all other Swing Line Advances then
outstanding hereunder (including any other Swing Line Advances
requested to be made on such date but excluding any such Advances
being refunded by such requested Swing Line Advance) to any
Borrower (using the Current Dollar Equivalent of any such Advances
outstanding in any Alternative Currency, determined pursuant to the
terms hereof as of the date of such requested Advance) shall not
exceed the Swing Line Maximum Amount; |
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(iii) |
as of the proposed
date of such Swing Line Advance, the Dollar Amount of the principal
amount of such requested Swing Line Advance, plus the aggregate
principal amount of all other Swing Line Advances and all Advances
of the Revolving Credit then outstanding hereunder (including any
Revolving Credit Advances or other Swing Line Advances requested to
be made on such date, but excluding any such Advances being
refunded by such requested Swing Line Advance) to any Borrower
(using the Current Dollar Equivalent of any such Advances
outstanding in any Alternative Currency, determined pursuant to the
terms hereof as of the date of such requested Advance), and the
aggregate outstanding Letter of Credit Obligations (based on the
Dollar Amount of any Letters of Credit denominated in Dollars and
the Current Dollar Equivalent of the Letters of Credit denominated
in any Alternative Currency) shall not exceed the Revolving Credit
Aggregate Commitment; |
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(iv) |
in the case of any
Permitted Borrower, as of the proposed date of such Swing Line
Advance, the principal amount of the requested Swing Line Advance
to such Permitted Borrower (determined as aforesaid), plus the
aggregate principal amount of any other Swing Line Advances and all
other Advances then outstanding to such Permitted Borrower
hereunder (including, without duplication, Revolving Credit
Advances or Swing Line Advances requested to be made on such date)
determined as aforesaid, plus the aggregate amount of all
outstanding Letter of Credit Obligations relating to Letters of
Credit issued for the account of such Permitted Borrower (using the
Current Dollar Equivalent thereof for any Letters of |
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Credit denominated in
any Alternative Currency) shall not exceed the applicable Permitted
Borrower Sublimit; |
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(v) |
in the case of a
Prime-based Advance, the principal amount of the initial funding of
such Advance, as opposed to any refunding or conversion thereof,
shall be at least One Hundred Thousand Dollars ($100,000) or, in
the case of such Advances requested by any Permitted Borrowers
formed under the laws of The Netherlands, the Dollar Amount as of
such date of Euro 50,000, if such Dollar Amount is greater than
$100,000; |
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(vi) |
in the case of a
Eurocurrency-based Advance or a Quoted Rate Advance, the principal
amount of such Advance, the principal amount of such Swing Line
Advance plus the amount of any other outstanding Advance of the
Swing Line to be then combined therewith having the same Applicable
Interest Rate and Interest Period, if any, shall be, at least Two
Hundred Fifty Thousand Dollars ($250,000), or the equivalent
thereof in an Alternative Currency (or a whole multiple of One
Hundred Thousand Dollars ($100,000), or the equivalent thereof in
the applicable Alternative Currency), and at any one time there
shall not be in effect more than (x) for Advances in Dollars, Five
(5) Applicable Interest Rates and Interest Periods, and (y) for
Advances in any Alternative Currency (other than eurodollars), two
(2) Applicable Interest Rates and Interest Periods for each such
currency; |
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(vii) |
each such Request for
Swing Line Advance shall be delivered to Swing Line Lender (with a
copy concurrently delivered to Agent) (x) for each Advance in
Dollars, by 2:00 p.m. (eastern time) (or such other time as Swing
Line Lender shall specify to the applicable Borrower) on the
proposed date of the Advance and (y) for each Advance in any
Alternative Currency, by 10:00 a.m. (eastern time) two (2) Business
Days prior to the proposed date of Advance; |
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(viii) |
each Request for Swing
Line Advance, once delivered to Swing Line Lender, shall be
irrevocable by Company and any applicable Permitted Borrower, and
shall constitute and include a certification by Company and any
applicable Permitted Borrower as of the date thereof
that: |
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(A)
both before and after such Swing Line
Advance, the obligations of the Borrowers set forth in this
Agreement and the Loan Documents, are valid, binding and
enforceable obligations of the Borrowers and any of their
Subsidiaries party thereto;
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(B)
all conditions to the making of Swing
Line Advances have been satisfied (both before and after giving
effect to such Advance);
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(C)
both before and after the making of
such Swing Line Advance, there is no Default or Event of Default in
existence; and
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(D) both before and after such Swing Line Advance, the
representations and warranties contained in this Agreement and the
other Loan Documents are true and correct in all material
respects. |
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(ix) |
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At the
option of Agent, subject to revocation by Agent at any time and
from time to time and so long as Agent is Swing Line Lender,
Borrower may utilize Agent’s “Sweep to Loan”
automated system for obtaining Swing Line Advances and making
periodic repayments. At any time during which the “Sweep to
Loan” system is in effect, Swing Line Advances shall be
advanced to fund borrowing needs pursuant to the terms of the Sweep
Agreement. Each time a Swing Line Advance is made using the
“Sweep to Loan” system, Company and the applicable
Permitted Borrowers shall be deemed to have certified to Agent and
Revolving Credit Lenders each of the matters set forth in clause
(viii) of this Section 2.5(c). Principal and interest on Swing Line
Advances requested, or deemed requested, pursuant to this Section
shall be paid pursuant to the terms and conditions of the Sweep
Agreement without any deduction, setoff or counterclaim whatsoever.
Unless sooner paid pursuant to the provisions hereof or the
provisions of the Sweep Agreement, the principal amount of the
Swing Loans shall be paid in full, together with accrued interest
thereon, on the Revolving Credit Maturity Date. Agent may suspend
or revoke any Borrower’s privilege to use the “Sweep to
Loan” system at any time and from time to time for any reason
and, immediately upon any such revocation, the “Sweep to
Loan” system shall no longer be available to Borrower for the
funding of Swing Line Advances hereunder (or otherwise), and the
regular procedures set forth in this Section 2.5 for the making of
Swing Line Advances shall be deemed immediately to apply. Agent
may, at its option, also elect to make Swing Line Advances upon
Borrower’s telephone requests on the basis set forth in the
last paragraph of Section 2.3, provided that Company and the
applicable Permitted Borrowers each complies with the provisions
set forth in this Section 2.5. |
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(c) |
Disbursement of Swing Line Advances . Unless otherwise notified in writing by Agent
promptly following each receipt of a Request for Swing Line Advance
hereunder, Swing Line Lender may assume that all conditions
precedent to the disbursement of such requested Swing Line Advance
have been satisfied, including without limitation that no Default
or Event of Default has occurred and is continuing and that the
entirety of the Swing Line Maximum Amount less any outstanding
Swing Line Advances is available hereunder (provided that Agent
shall have no responsibility whatsoever to Swing Line Lender or to
any other Lender to give any notice hereunder, except as set forth
in Section 12.12 of this Agreement), and subject to the proper
submission of an executed Request for Swing Line Advance by Company
or a Permitted Borrower without exceptions noted in the compliance
certification therein and to the other terms and conditions hereof,
Swing Line Lender shall make available to Company or the
applicable |
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Permitted
Borrower the amount so requested, in like funds and currencies, not
later than: |
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(i) |
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for Prime-based
Advances or Quoted Rate Advances, not later than 5:00 p.m. (eastern
time) on the date of such Advance by credit to an account of
Company or the applicable Permitted Borrower maintained with Swing
Line Lender or with Agent or to such other account or third party
as Company or the Permitted Borrower may reasonably direct in
writing; and |
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(ii) |
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for Eurocurrency-based
Advances, not later than 4:00 p.m. (the time of the office of Swing
Line Lender funding such Advance) on the date of such Advance, by
credit to an account of Company or the Permitted Borrower
maintained with Swing Line Lender’s or Agent’s
Correspondent or to such other account or third party as Company or
the applicable Permitted Borrower may reasonably direct in
writing. |
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Swing Line
Lender shall promptly notify Agent of any Swing Line Advance by
telephone, telex or telecopier. |
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(d) |
Refunding of or Participation Interest in Swing Line
Advances . |
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(i) |
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Acting through Agent
(which shall, subject to the terms hereof, comply with Swing Line
Lender’s request), Swing Line Lender, at any time in its sole
and absolute discretion, may on behalf of Company or the applicable
Permitted Borrower (each of which hereby irrevocably directs Swing
Line Lender and Agent to act on its behalf) request each of
Revolving Credit Lenders (including Swing Line Lender in its
capacity as a Revolving Credit Lender) to make an Advance of the
Revolving Credit to each of Company and/or the applicable Permitted
Borrowers, for each Permitted Currency in which Swing Line Advances
are outstanding to such party, in an amount (in the applicable
Permitted Currency, determined in accordance with Section 2.11(b)
hereof) equal to such Revolving Credit Lender’s Revolving
Credit Percentage of the principal amount of the aggregate Swing
Line Advances outstanding in each Permitted Currency to each such
party on the date such notice is given (the “Refunded Swing
Line Advances”); provided however that Swing Line Advances
which are carried at the Quoted Rate or the Eurocurrency-based Rate
which are converted to Revolving Credit Advances at the request of
Swing Line Lender at a time when no Default or Event of Default has
occurred and is continuing, shall not be subject to Section 11.1
and no losses, costs or expenses may be assessed by Swing Line
Lender against any Borrower or other Revolving Credit Lenders as a
consequence of such conversion. In the case of each Refunded Swing
Line Advance outstanding in Dollars, the applicable Advance of the
Revolving Credit used to refund such Swing Line Advance shall be a
Prime-based Advance. In the case of each Refunded Swing Line
Advance outstanding in any Alternative Currency, the applicable
Advance of the Revolving Credit used to refund such
Swing |
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Line Advance shall be
an Advance in the applicable Alternative Currency, with an Interest
Period of one month (or any lesser number of days selected by Agent
in consultation with Revolving Credit Lenders). In connection with
the making of any such Refunded Swing Line Advances or the purchase
of a participation interest in Swing Line Advances under Section
2.5(e)(ii) hereof, Swing Line Lender shall retain its claim against
Company or the applicable Permitted Borrower for any unpaid
interest or fees in respect thereof. Unless any of the events
described in Section 9.1(j) hereof shall have occurred (in which
event the procedures of subparagraph (ii) of this Section 2.5(e)
shall apply) and regardless of whether the conditions precedent set
forth in this Agreement to the making of an Advance of the
Revolving Credit are then satisfied, but subject to Section
2.5(e)(iii), each Revolving Credit Lender shall make the proceeds
of its Advance of the Revolving Credit available to Agent for the
benefit of Swing Line Lender at the office of Agent specified in
Section 2.4(a) hereof prior to 11:00 a.m. Detroit time (for
Domestic Advances) on the Business Day next succeeding the date
such notice is given, and, in the case of any Eurocurrency-based
Advance, prior to 2:00 p.m. Detroit time on the third Business Day
following the date such notice is given, in each case in
immediately available funds in the applicable Permitted Currency.
The proceeds of such Advances of the Revolving Credit shall be
promptly delivered by Agent to Swing Line Lender for application to
repay the Refunded Swing Line Advances in accordance with the terms
and conditions of this Agreement. |
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(ii) |
If, prior to the
making of an Advance of the Revolving Credit pursuant to
subparagraph (i) of this Section 2.5(e), one of the events
described in Section 9.1(j) hereof shall have occurred, each
Revolving Credit Lender will, on the date such Advance of the
Revolving Credit was to have been made, purchase from Swing Line
Lender an undivided participating interest in each Refunded Swing
Line Advance in an amount equal to its Revolving Credit Percentage
of such Refunded Swing Line Advance. Each Revolving Credit Lender
within the time periods specified in Section 2.5(e)(i) hereof, as
applicable, shall immediately transfer to Agent for the benefit of
Swing Line Lender, in immediately available funds in the applicable
Permitted Currency of such Swing Line Advance, the amount of its
participation and upon receipt thereof Swing Line Lender will
deliver to such Revolving Credit Lender a participation certificate
evidencing such participation. |
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(iii) |
Each Revolving Credit
Lender’s obligation to make Advances of the Revolving Credit
and to purchase participation interests in accordance with clauses
(i) and (ii) of this Section 2.5(e) shall be absolute and
unconditional and shall not be affected by any circumstance,
including, without limitation, (i) any set-off, counterclaim,
recoupment, defense or other right which such Revolving Credit
Lender may have against Swing Line Lender, any Borrower or any
other Person for any reason |
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whatsoever; (ii) the
occurrence or continuance of any Default or Event of Default; (iii)
any adverse change in the condition (financial or otherwise) of
Company, any Permitted Borrower or any other Person; (iv) any
breach of this Agreement by Company, any Permitted Borrower or any
other Person; (v) any inability of Company or the Permitted
Borrowers to satisfy the conditions precedent to borrowing set
forth in this Agreement on the date upon which such Advance is to
be made or such participating interest is to be purchased; (vi) the
termination of the Revolving Credit Aggregate Commitment hereunder;
or (vii) any other circumstance, happening or event whatsoever,
whether or not similar to any of the foregoing. If any Revolving
Credit Lender does not make available to Agent or Swing Line
Lender, as applicable the amount required pursuant to clause (i) or
(ii) above, as the case may be, Agent or Swing Line Lender, as the
case may be, shall be entitled to recover such amount on demand
from such Revolving Credit Lender, together with interest thereon
for each day from the date of non-payment until such amount is paid
in full (x) for the first two (2) Business Days such amount remains
unpaid, at the Federal Funds Effective Rate for Domestic Advances
and for any other Advances, Agent’s marginal cost (including
the cost of maintaining any required reserves or deposit insurance
and of any fees, penalties, overdraft charges or other costs or
expenses incurred by Agent as a result of such failure to deliver
funds hereunder) of carrying such amount and (y) thereafter, at the
rate of interest then applicable to such Swing Line Advances. The
obligation of any Revolving Credit Lender to make available its pro
rata portion of the amounts required pursuant to clause (i) or (ii)
above shall not be affected by the failure of any other Revolving
Credit Lender to make such amounts available, and no Revolving
Credit Lender shall have any liability to Company or any Permitted
Borrower, Agent, Swing Line Lender, or any other Revolving Credit
Lender or any other Person for another Revolving Credit
Lender’s failure to make the amounts required under clause
(i) or (ii) available.
Notwithstanding the
foregoing, however, no Revolving Credit Lender shall be required to
make any Revolving Credit Advance to refund a Swing Line Advance or
to purchase a participation in a Swing Line Advance (including
without limitation any Swing Line Advance funded under the
“Sweep to Loan” system) if at least two (2) Business
Days prior to the making of such Swing Line Advance by Swing Line
Lender, the officers of Swing Line Lender immediately responsible
for matters concerning this Agreement shall have received written
notice from Agent or any Revolving Credit Lender that Swing Line
Advances should be suspended based on the occurrence and
continuance of a Default or an Event of Default and stating that
such notice is a “notice of default”; provided, however
that the obligation of Revolving Credit Lenders to make such
Revolving Credit Advances or to purchase such participations shall
be reinstated upon the date which such Default or Event of Default
has been waived by the requisite Lenders.
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2.6 Prime-based Interest Payments . Interest on the unpaid balance of all Prime-based
Advances of the Revolving Credit and all Swing Line Advances
carried at the Prime-based Rate from time to time outstanding shall
accrue from the date of such Advance to the Revolving Credit
Maturity Date (and until paid), at a per annum interest rate equal
to the Prime-based Rate, and shall be payable in immediately
available funds (a) with respect to Swing Line Advances, quarterly
commencing on the first day of the calendar quarter next succeeding
the calendar quarter during which the initial Swing Line Advance is
made and on the first day of each calendar quarter thereafter, and
(b) with respect to Advances of the Revolving Credit, quarterly
commencing on the first day of the calendar quarter next succeeding
the calendar month during which the initial Advance of the
Revolving Credit is made and on the first day of each calendar
quarter thereafter. Interest accruing at the Prime-based Rate shall
be computed on the basis of a 360 day year and assessed for the
actual number of days elapsed, and in such computation effect shall
be given to any change in the interest rate resulting from a change
in the Prime-based Rate on the date of such change in the
Prime-based Rate.
2.7 Eurocurrency-based Interest Payments and Quoted
Rate Interest Payments.
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(a) |
Interest on each
Eurocurrency-based Advance of the Revolving Credit and all Swing
Line Advances carried at the Eurocurrency-based Rate shall accrue
at its Applicable Interest Rate and shall be payable in immediately
available funds on the last day of the Interest Period applicable
thereto (and, if any Interest Period shall exceed three months,
then on the last Business Day of the third month of such Interest
Period, and at three month intervals thereafter). Interest accruing
at the Eurocurrency-based Rate shall be computed on the basis of a
360 day year (except that any such Advances made in Sterling or any
other Alternative Currency with respect to which applicable law or
market custom so requires shall be calculated based on a 365 day
year, or as otherwise required under applicable law or market
custom) and assessed for the actual number of days elapsed from the
first day of the Interest Period applicable thereto to but not
including the last day thereof. Interest due on a
Eurocurrency-based Advance made in an Alternative Currency shall be
paid in such Alternative Currency. |
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(b) |
Interest on each
Quoted Rate Advance of the Swing Line shall accrue at its Quoted
Rate and shall be payable in immediately available funds on the
last day of the Interest Period applicable thereto. Interest
accruing at the Quoted Rate shall be computed on the basis of a 360
day year (except that any such Advances made in any Alternative
Currency with respect to which applicable law or market custom so
requires shall be calculated based on a 365 day year, or as
otherwise required under applicable law or market custom) and
assessed for the actual number of days elapsed from the first day
of the Interest Period applicable thereto to, but not including the
last day thereof. |
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(c) |
If the basis of
accrual of interest or fees expressed in this Agreement with
respect to the National Currency Unit of a Participating Member
State shall be inconsistent with any convention or practice in the
London interbank market or other applicable interbank market, as
the case may be, for the basis of accrual of interest or fees with
respect to the Euro, such convention or practice shall
replace |
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such expressed
basis, effective as of and from the date on which such country
becomes a Participating Member State; provided that if any
Eurocurrency-based Advance in the currency of such country is
outstanding immediately prior to such date, such replacement shall
take effect, with respect to such Advance, at the end of the then
current Interest Period.
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2.8 Interest
Payments on Conversions .
Notwithstanding anything to the contrary in the preceding sections,
all accrued and unpaid interest on any Advance converted pursuant
to Section 2.3 hereof shall be due and payable in full on the date
such Advance is converted.
2.9 Interest
on Default . In the event
and so long as any Event of Default shall exist after giving effect
to any applicable grace or cure periods, in the case of any Event
of Default under Sections 9.1(a), 9.1(b) or 9.1(j), immediately
upon the occurrence thereof (and without the requirement of any
notice or demand), in the case of all other Events of Default, upon
written notice from the Required Revolving Credit Lenders, interest
shall be payable daily (a) on all Eurocurrency-based Advances of
the Revolving Credit, Swing Line Advances carried at the
Eurocurrency-based Rate and Quoted Rate Advances from time to time
outstanding at a per annum rate equal to the Applicable Interest
Rate plus three percent (3%) for the remainder of the then existing
Interest Period, if any, (b) with respect to Prime-based Advances
from time to time outstanding, at a per annum rate equal to the
Prime-based Rate plus three percent (3%), and (c) with respect to
Eurocurrency-based Advances thereof in any Alternative Currency
from time to time outstanding, (i) at a per annum rate calculated
by Agent, whose determination shall be conclusive absent manifest
error, on a daily basis, equal to three percent (3%) above the
interest rate per annum at which one (1) day deposits (or, if such
amount due remains unpaid for more than three (3) Business Days,
then for such other period of time as Agent may elect which shall
in no event be longer than six (6) months) in the relevant
eurocurrency in the amount of such overdue payment due to Agent are
offered by Agent’s Eurocurrency Lending Office for the
applicable period determined as provided above, or (ii) if at any
such time such deposits are not offered by the Eurocurrency Lending
Office, then at a rate per annum equal to three percent (3%) above
the rate determined by Agent to be its aggregate marginal cost
(including the cost of maintaining any required reserves or deposit
insurance) of carrying the amount of such Eurocurrency-based
Advance.
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2.10 |
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Optional
Prepayment . Company or the
Permitted Borrowers may prepay all or part of the outstanding
balance of any Prime-based Advance(s) of the Revolving Credit at
any time, provided that the amount of any partial prepayment shall
be at least One Million Dollars ($1,000,000) and, after giving
effect to any such partial prepayment, the aggregate balance of
Prime-based Advance(s) of the Revolving Credit remaining
outstanding, if any, shall be at least Five Million Dollars
($5,000,000). Subject to Section 11.1 hereof, Company or the
Permitted Borrowers may prepay all or part of any
Eurocurrency-based Advance (subject to not less than two (2)
Business Days’ notice to Agent) provided that the amount of
any such partial prepayment shall be at least One Million Dollars
($1,000,000), or the Current Dollar Equivalent thereof in an
Alternative Currency, and, after giving effect to any such partial
prepayment, the unpaid portion of such Advance which is refunded or
converted under Section 2.3 hereof shall be at least
Fifteen |
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Million Dollars
($15,000,000) or the Current Dollar Equivalent thereof in an
Alternative Currency. |
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(b) |
Company or the
Permitted Borrowers may prepay all or part of the outstanding
balance of any Swing Line Advance carried at the Prime-based Rate
at any time, provided that, unless the “Sweep to Loan”
system shall be in effect hereunder, the amount of any partial
prepayment shall be at least Twenty Five Thousand Dollars ($25,000)
and, after giving effect to any such partial prepayment, the
aggregate balance of such Swing Line Advances remaining
outstanding, if any, shall be at least One Hundred Thousand Dollars
($100,000), or, in the case of any Swing Line Advances outstanding
of any Permitted Borrowers formed under the laws of The
Netherlands, the Dollar Amount of Euro 50,000, if such Dollar
Amount is greater than $100,000. Subject to Section 11.1 hereof,
Company may prepay all or part of any Swing Line Advances carried
at the Eurocurrency-based Rate or Quoted Rate (subject to not less
than two (2) Business Days’ notice to Swing Line Lender and
Agent) only on the last day of the Interest Period therefor,
provided that the amount of any such partial payment shall be at
least Twenty Five Thousand Dollars ($25,000) and, after giving
effect to any such partial prepayment, the unpaid portion of such
Advance which is refunded or converted under Section 2.5(c) hereof
shall be at least Two Hundred Fifty Thousand Dollars
($250,000). |
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(c) |
Any prepayment made in
accordance with this Section shall be subject to Section 11.1
hereof, but otherwise without premium, penalty or prejudice to the
right to readvance under the terms of this Agreement. |
2.11 Determination, Denomination and Redenomination of Alternative
Currency Advances . Whenever,
pursuant to any provision of this Agreement:
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(a) |
an Advance of the
Revolving Credit or a Swing Line Advance is initially funded, as
opposed to any refunding or conversion thereof, in an Alternative
Currency, the amount to be advanced hereunder will be the
equivalent in such Alternative Currency of the Dollar Amount of
such Advance; |
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(b) |
an existing Advance of
the Revolving Credit or a Swing Line Advance denominated in an
Alternative Currency is to be refunded, in whole or in part, with
an Advance denominated in the same Alternative Currency, the amount
of the new Advance shall be continued in the amount of the
Alternative Currency so refunded; |
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(c) |
an existing Advance of
the Revolving Credit denominated in an Alternative Currency is to
be converted, in whole or in part, to an Advance denominated in
another Alternative Currency, the amount of the new Advance shall
be that amount of the Alternative Currency of the new Advance which
may be purchased, using the most favorable spot exchange rate
determined by Agent to be available to it for the sale of Dollars
for such other Alternative Currency at approximately 11:00 a.m.
(Detroit time) two (2) Business Days prior to the last day of
the |
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Eurocurrency Interest
Period applicable to the existing Advance, with the Dollar Amount
of the existing Advance, or portion thereof being converted;
and |
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(d) |
an existing Advance of
the Revolving Credit denominated in an Alternative Currency is to
be converted, in whole or in part, to an Advance denominated in
Dollars, the amount of the new Advance shall be the Dollar Amount
of the existing Advance, or portion thereof being converted
(determined as aforesaid). |
2.12 Prime-based Advance in Absence of Election or Upon
Default . If, (a) as to any
outstanding Eurocurrency-based Advance of the Revolving Credit, or
any Swing Line Advance carried at the Eurocurrency-based Rate,
Agent has not received payment of all outstanding principal and
accrued interest on the last day of the Interest Period applicable
thereto, or does not receive a timely Request for Advance meeting
the requirements of Section 2.3 or 2.5(c) hereof with respect to
the refunding or conversion of such Advance, or (b) if any Advance
denominated in an Alternative Currency or any deemed Advance under
Section 3.6 hereof in respect of a Letter of Credit denominated in
an Alternative Currency cannot be refunded or made, as the case may
be, in such Alternative Currency by virtue of Section 11.3 hereof,
or (c) subject to Section 2.9 hereof, if on such day a Default or
an Event of Default shall have occurred and be continuing, then the
principal amount thereof which is not then prepaid in the case of a
Eurocurrency-based Advance shall, absent a contrary election of the
Required Revolving Credit Lenders, be converted automatically to a
Prime-based Advance and Agent shall thereafter promptly notify
Company of said action. If a Eurocurrency-based Advance converted
hereunder is payable in an Alternative Currency, the Prime-based
Advance shall be in an amount equal to the Dollar Amount of such
Eurocurrency-based Advance at such time and Agent and Revolving
Credit Lenders shall use said Prime-based Advance to fund payment
of the Alternative Currency obligation, all subject to the
provisions of Section 2.14 hereof. Company and the Permitted
Borrowers, if applicable, shall reimburse Agent and Revolving
Credit Lenders on demand for any costs incurred by Agent or any of
Revolving Credit Lenders, as applicable, resulting from the
conversion pursuant to this Section 2.12 of Eurocurrency-based
Advances payable in an Alternative Currency to Prime-based
Advances.
2.13 Revolving Credit Facility Fee . From the Restatement Date to the Revolving Credit
Maturity Date, the Company and the Domestic Permitted Borrowers
shall pay to Agent, for distribution to Revolving Credit Lenders
(as set forth below), a Revolving Credit Facility Fee determined by
multiplying the Applicable Fee Percentage per annum times the
Revolving Credit Aggregate Commitment then applicable under Section
2.15 hereof (whether used or unused) then in effect computed on a
daily basis. The Revolving Credit Facility Fee shall be payable
quarterly in arrears commencing July 1, 2007 (in respect of the
prior calendar quarter or portion thereof), and on the first day of
each calendar quarter thereafter and on the Revolving Credit
Maturity Date, and shall be computed on the basis of a year of
three hundred sixty (360) days and assessed for the actual number
of days elapsed. Whenever any payment of the Revolving Credit
Facility Fee shall be due on a day which is not a Business Day, the
date for payment thereof shall be extended to the next Business
Day. Upon receipt of such payment Agent shall make prompt payment
to each Revolving Credit Lender of its share of the Revolving
Credit Facility Fee based upon its respective Revolving Credit
Percentage.
2.14
Currency Appreciation; Mandatory
Reduction of Indebtedness.
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(a) |
Revolving Credit Aggregate Commitment . If at any time and for any reason, the aggregate
principal amount of all Advances of the Revolving Credit hereunder
to Company and to the Permitted Borrowers made in Dollars and the
aggregate Current Dollar Equivalent of all Advances of the
Revolving Credit outstanding hereunder to Company and to the
Permitted Borrowers in any Alternative Currency as of such time,
plus the aggregate principal amount of Swing Line Advances
outstanding hereunder as of such time (determined as aforesaid),
plus the aggregate Letter of Credit Obligations of Company and the
Permitted Borrowers which shall be outstanding (based on the Dollar
Amount of any Letters of Credit denominated in Dollars and the
Current Dollar Equivalent of any Letters of Credit denominated in
any Alternative Currency), as of such time exceeds the Revolving
Credit Aggregate Commitment (as used in this clause (a), the
“Excess”), Company and the Permitted Borrowers
shall: |
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(i) |
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immediately repay that
portion of such Indebtedness then carried as a Prime-based Advance,
if any, by the Dollar Amount of such Excess, and/or reduce any
pending request for an Advance in Dollars on such day by the Dollar
Amount of the Excess, to the extent thereof; and |
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(ii) |
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on the last day of
each Interest Period of any Eurocurrency-based Advance outstanding
as of such time, until the necessary reductions of Indebtedness
under this Section 2.14(a) have been fully made, repay the
Indebtedness carried in such Advances and/or reduce any requests
for refunding or conversion of such Advances submitted (or to be
submitted) by Company or the applicable Permitted Borrower in
respect of such Advances, by the amount in Dollars or the
applicable Alternative Currency, as the case may be, of the Excess,
to the extent thereof. |
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Compliance
with this Section 2.14(a) shall be tested on the last day of each
Interest Period in effect from time to time hereunder and may be
tested on any other basis satisfactory to Agent in its sole
discretion, provided that, so long as no Default or Event of
Default has occurred and is continuing, at any time while the
aggregate Advances of the Revolving Credit available to be borrowed
hereunder (based on the Revolving Credit Aggregate Commitment then
in effect) equal or exceed Fifty Million Dollars ($50,000,000),
compliance with this Section 2.14(a) shall be tested as of the last
day of each calendar quarter. Notwithstanding the foregoing, upon
the occurrence and during the continuance of any Default or Event
of Default, or if any Excess remains after recalculating said
Excess based on ninety-five percent (95%) of the Current Dollar
Equivalent of any Advances or Letters of Credit denominated in
Alternative Currencies (and one hundred percent (100%) of any
Advances or Letters of Credit denominated in Dollars), Company and
the Permitted Borrowers shall be obligated immediately to reduce
the foregoing Indebtedness hereunder by an amount sufficient to
eliminate such Excess. |
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Notwithstanding the foregoing, upon the occurrence and during
the continuance of any Default or Event of Default, or if any
Excess remains after recalculating |
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said
Excess based on ninety-five percent (95%) of the Dollar Amount of
any such Advances or Letter of Credit Obligations denominated in
Alternate Currencies and one hundred percent (100%) of any such
Advances or Letter of Credit Obligations denominated in Dollars,
the Foreign Borrowers shall be obligated immediately to reduce the
foregoing Indebtedness hereunder by an amount sufficient to
eliminate such Excess. |
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(b) |
Permitted Borrower Sublimit . If at any time and for any reason with respect to any
Permitted Borrower, the aggregate principal amount (tested in the
manner set forth in clause (a) above) of all Advances of the
Revolving Credit and of the Swing Line outstanding hereunder to
such Permitted Borrower, plus the Letter of Credit Obligations
under any Letters of Credit to or for the account of such Permitted
Borrower (tested in the manner set forth in clause (a) above),
which Advances and Letters of Credit are made or issued, or to be
made or issued, in Dollars and ninety percent (90%) of the
aggregate Current Dollar Equivalent of all such Advances and Letter
of Credit Obligations for the account of such Permitted Borrower in
any Alternative Currency as of such time, exceeds the applicable
Permitted Borrower Sublimit (as used in this clause (b), the
“Excess”), then in each case, such Permitted Borrower
shall |
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(i) |
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immediately repay that
portion of the Indebtedness outstanding to such Permitted Borrower
then carried as a Prime-based Advance, if any, by the Dollar Amount
of such Excess, and/or reduce on such day any pending request for
an Advance in Dollars submitted by such Permitted Borrower by the
Dollar Amount of such Excess, to the extent thereof;
and |
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(ii) |
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on the last day of
each Interest Period of any Eurocurrency-based Advance outstanding
to such Permitted Borrower as of such time, until the necessary
reductions of Indebtedness under this Section 2.14(b) have been
fully made, repay such Indebtedness carried in such Advances and/or
reduce any requests for refunding or conversion of such Advances
submitted (or to be submitted) by such Permitted Borrower in
respect of such Advances, by the amount in Dollars or the
applicable Alternative Currency, as the case may be, of such
Excess, to the extent thereof. |
Provided that no
Default or Event of Default has occurred and is continuing, each
Permitted Borrower’s compliance with this Section 2.14(b)
shall be tested as of the last day of each calendar quarter or,
upon the written request of Company from time to time, as of the
last day of each calendar month, provided Company furnishes Agent
with current monthly financial statements complying with the
requirements set forth in subparagraphs (i) and (ii) of Section
7.3(c) hereof. Upon the occurrence and during the continuance of
any Default or Event of Default, compliance with this Section
2.14(b) shall be tested on a daily or other basis satisfactory to
Agent in its sole discretion.
2.15 Optional Reduction or Termination of Revolving Credit Aggregate
Commitment . Provided that
no Default or Event of Default has occurred and is continuing,
Company may upon at least five (5) Business Days’ prior
written notice to Agent, permanently reduce the
Revolving
49
Credit Aggregate
Commitment in whole at any time, or in part from time to time,
without premium or penalty, provided that: (i) each partial
reduction of the Revolving Credit Aggregate Commitment shall be in
an aggregate amount equal to Twenty Million Dollars ($20,000,000)
or a larger integral multiple of One Million Dollars ($1,000,000);
(ii) each reduction shall be accompanied by the payment of the
Revolving Credit Facility Fee, if any, accrued to the date of such
reduction; (iii) Company or any Permitted Borrower, as applicable,
shall prepay in accordance with the terms hereof the amount, if
any, by which the aggregate unpaid principal amount of Advances
(using the Current Dollar Equivalent of any such Advance
outstanding in any Alternative Currency) of the Revolving Credit,
plus the aggregate principal amount of Swing Line Advances
outstanding hereunder (using the Current Dollar Equivalent of any
such Advance outstanding in an Alternative Currency), plus the
aggregate undrawn amount of outstanding Letters of Credit (using
the Current Dollar Equivalent thereof for any Letters of Credit
denominated in any Alternative Currency), plus the unreimbursed
amount of any draws under any Letters of Credit (determined as
aforesaid), exceeds the amount of the Revolving Credit Aggregate
Commitment as so reduced, together with interest thereon to the
date of prepayment; (iv) if the termination or reduction of the
Revolving Credit Aggregate Commitment requires the prepayment of a
Eurocurrency-based Advance or a Quoted Rate Advance, the
termination or reduction may be made only on the last Business Day
of the then current Interest Period applicable to such
Eurocurrency-based Advance or such Quoted Rate Advance; and (v) no
reduction shall reduce the Revolving Credit Aggregate Commitment to
an amount which is less than the aggregate undrawn amount of any
Letters of Credit outstanding at such time. Reductions of the
Revolving Credit Aggregate Commitment and any accompanying
prepayments of Advances of the Revolving Credit shall be
distributed by Agent to each Revolving Credit Lender in accordance
with such Revolving Credit Lender’s Revolving Credit
Percentage thereof, and will not be available for reinstatement by
or readvance to Company or any Permitted Borrower, and any
accompanying prepayments of Advances of the Swing Line shall be
distributed by Agent to Swing Line Lender and will not be available
for reinstatement by or readvance to Company. Any reductions of the
Revolving Credit Aggregate Commitment hereunder shall reduce each
Revolving Credit Lender’s portion thereof proportionately
(based on the applicable Revolving Credit Percentages), and shall
be permanent and irrevocable. Any payments made pursuant to this
Section shall be applied first to outstanding Prime-based Advances
under the Revolving Credit, next to Swing Line Advances carried at
the Prime-based Rate, next to Eurocurrency-based Advances of the
Revolving Credit and then to Swing Line Advances carried at the
Eurocurrency-based Rate or the Quoted Rate.
2.16 Extensions of Revolving Credit Maturity Date
. (a) Provided that no Default or Event
of Default has occurred and is continuing, Company may, by written
notice to Agent and each Revolving Credit Lender (which notice
shall be irrevocable and which shall not be deemed effective unless
actually received by Agent and each Revolving Credit Lender) prior
to April 30 but not before March 31st of each year, request that
Revolving Credit Lenders extend the then applicable Revolving
Credit Maturity Date to a date that is one year later than the
Revolving Credit Maturity Date then in effect (such request, a
“Request”).
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(a) |
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Each Revolving Credit
Lender shall, within 30 days of receipt of such request, notify
Agent in writing whether such Revolving Credit Lender consents to
the extension of the Revolving Credit Maturity Date, such consent
to be in the sole discretion of such Revolving Credit Lender. If
any Revolving Credit Lender does |
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not so notify Agent of
its decision within such 30 day period, such Revolving Credit
Lender shall be deemed to have not consented to such request of the
Borrower. |
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(b) |
Agent shall promptly
notify Company whether Revolving Credit Lenders have consented to
such request. If Agent does not so notify Company within 30 days of
Agent’s receipt such Request, Agent shall be deemed to have
notified Company that Revolving Credit Lenders have not consented
to Company’s request. |
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(c) |
Each Revolving Credit
Lender which elects not to extend the Revolving Credit Maturity
Date or fails to so notify Agent of such consent (a
“Non-Consenting Lender”) hereby agrees that if any
other Revolving Credit Lender or financial institution acceptable
to Company and Agent offers to purchase such Non- Consenting
Lender’s Revolving Credit Percentage of the Revolving Credit
Aggregate Commitment within 180 days after receipt of the related
Request for a purchase price equal to the sum of all amounts then
owing with respect to the outstanding Advances (and participations
in any Swing Line Advances or any Letters of Credit) and all other
amounts accrued for the account of such Non- Consenting Lender,
such Non-Consenting Lender will promptly assign, sell and transfer
all of its right, title, interest and obligations with respect to
the foregoing to such other Revolving Credit Lender or financial
institution pursuant to and on the terms specified in the form of
Assignment Agreement attached hereto as Exhibit E. Before assigning
to a financial institution other than a Revolving Credit Lender
pursuant to this clause (d), each Revolving Credit Lender that has
elected to extend the Revolving Credit Maturity Date (a
“Consenting Lender”) shall have the right, but not any
obligation, pro rata with all other Consenting Lenders which elect
to purchase a pro rata share of such non-consenting Revolving
Credit Lender’s Revolving Credit Percentage of the Revolving
Credit Aggregate Commitment (and participations in Swing Line
Advances and Letters of Credit) to purchase each such
Non-Consenting Lender’s Revolving Credit Percentage thereof
pursuant to this clause (d). The Consenting Lenders which elect to
exercise their purchase options hereunder shall by mutual agreement
determine the amount of each Non-Consenting Lender’s
Revolving Credit Percentage of the Revolving Credit Aggregate
Commitment being purchased by each Consenting Lender, provided that
if there is any dispute among the Consenting Lenders such purchase
shall be based upon a pro rata sharing of each Non-Consenting
Lender’s Revolving Credit Percentage thereof. Only if the
Consenting Lenders have determined not to purchase all of the
Non-Consenting Lender’s Revolving Credit Aggregate Commitment
may financial institutions other than a Consenting Lender then
purchase such Non-Consenting Lender’s Revolving Credit
Aggregate Commitment. |
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(d) |
Except as set forth in
subparagraph (f) hereof, notwithstanding anything herein to the
contrary, the Revolving Credit Maturity Date will not be extended
unless all Revolving Credit Lenders have consented to the extension
or if another Lender or |
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financial institution
has purchased each such Non-Consenting Lender’s Revolving
Credit Aggregate Commitment pursuant to the terms of clause (d)
above. |
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(e) |
In the event, after
giving effect to any assignments to Consenting Lenders under
Section 2.16(d) hereof or otherwise, Revolving Credit Lenders
holding eighty percent (80%) or more of the Revolving Credit
Percentages (the “Approving Percentages”) have
consented to an extension of the Revolving Credit Maturity Date
hereunder, such extension shall become effective, notwithstanding
that all of Revolving Credit Lenders have failed to approve such
extension in accordance with this Section 2.16, so long as Company,
at least five (5) Business Days prior to the Revolving Credit
Maturity Date then in effect, reduces the Revolving Credit
Aggregate Commitment to an amount not greater than the product of
the Approving Percentages times the Revolving Credit Aggregate
Commitment then in effect and repays the Indebtedness then
outstanding hereunder (and, if necessary causes any outstanding
Letters of Credit to be terminated or discharged) to the extent
such Indebtedness exceeds the Revolving Credit Aggregate Commitment
as so reduced, such that the entire Indebtedness outstanding to the
Non-Consenting Lenders shall have been paid and discharged in full.
Reductions may be made without regard to the notice provisions set
forth in Section 2.15 hereof, but shall otherwise comply with said
Section 2.15, except that any amounts repaid by Company against the
Indebtedness pursuant to this subparagraph (f) shall be first
applied to the Indebtedness outstanding to the Non- Consenting
Lenders still holding Indebtedness hereunder at such time, with any
remaining amounts applied in accordance with Section 2.15 hereof
and the Revolving Credit Percentages held by such Non-Consenting
Lenders shall be reallocated to the Consenting Lenders (giving
effect to any assignments, as aforesaid), pro rata, based on the
Revolving Credit Percentages then in effect and Agent shall
distribute to the remaining Revolving Credit Lenders a revised
Schedule 1.1 reflecting such reallocated Revolving Credit
Percentages. |
2.17 Revolving Credit Optional Increase . Provided that no Default or Event of Default has
occurred and is continuing, and provided that the Borrowers have
not previously elected to terminate the Revolving Credit Aggregate
Commitment, Borrowers may request that the Revolving Credit
Aggregate Commitment be increased in an aggregate amount (for all
such Requests under this Section 2.17 not to exceed the Revolving
Credit Optional Increase, subject, in each case, to the other terms
and requirements of this Agreement and to the satisfaction
concurrently with or prior to the date of each such request of the
following conditions:
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(a) |
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The Borrowers shall
have delivered to Agent a written request for such increase,
specifying the amount of Revolving Credit Optional Increase thereby
requested (each such request, a “Request for
Increase”); provided, however that in the event the Borrowers
have previously delivered a Request for Increase pursuant to this
Section 2.17, Borrowers may not deliver a subsequent Request for
Increase until all the conditions to effectiveness of such first
Request for Increase have been fully satisfied hereunder (or such
Request for Increase has been withdrawn), and Borrowers may not
submit more than three (3) Requests for Increases
hereunder; |
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(b) |
a lender or lenders
meeting the requirements of Section 13.8(c) hereof and acceptable
to the Borrowers, Agent and Issuing Lender (including, for the
purposes of this Section 2.17, any existing Lender which agrees to
increase its commitment hereunder, the “New Lender(s)”)
shall have become a party to this Agreement by executing and
delivering a New Lender Addendum for a minimum amount (including
for the purposes of this Section 2.17, the existing commitment of
any existing Revolving Credit Lender) for each such New Lender of
Fifteen Million Dollars ($15,000,000) and an aggregate amount for
all such New Lenders of that portion of the then available
Revolving Credit Optional Increase covered by the applicable
Request, provided, however that each New Lender shall remit to
Agent funds in an amount equal to its Revolving Credit Percentage
(after giving effect to this Section 2.17) of all Advances of the
Revolving Credit then outstanding, such sums to be reallocated
among and paid to the existing Revolving Credit Lenders based upon
the new Revolving Credit Percentages as determined
below; |
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(c) |
Borrowers (i) shall
have paid to Agent for distribution to the existing Revolving
Credit Lenders, as applicable, all interest, fees (including the
Revolving Credit Facility Fee and the Letter of Credit Fees) and
other amounts, if any, accrued to the effective date of such
increase and any breakage fees attributable to the reduction (prior
to the last day of the applicable Interest Period) of any
outstanding Eurocurrency-based Advances, calculated on the basis
set forth in Section 11.1 hereof as though Borrower has prepaid
such Advances and (ii) shall have paid to each New Lender a special
letter of credit fee on the Letters of Credit outstanding on the
effective date of such increase, calculated on the basis of the
Letter of Credit Fees which would be applicable to such Letters of
Credit if issued on the date of such increase, for the period from
the effective date of such increase to the expiration date of such
Letters of Credit; |
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(d) |
the Borrowers shall
have executed and delivered to Agent new Revolving Credit Notes
payable to each of the New Lenders in the face amount of each such
New Lender’s Revolving Credit Percentage of the Revolving
Credit Aggregate Commitment (after giving effect to this Section
2.17) and, if applicable, renewal and replacement Revolving Credit
Notes payable to each of the existing Revolving Credit Lenders in
the face amount of each such Revolving Credit Lender’s
Revolving Credit Percentage of the Revolving Credit Aggregate
Commitment (after giving effect to this Section 2.17), each of such
Revolving Credit Notes to be substantially in the form specified by
this Agreement, and dated as of the effective date of such increase
(with appropriate insertions relevant to such Notes and acceptable
to the applicable Revolving Credit Lender, including the New
Lenders); |
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(e) |
th |
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